Meeting Packet - Florida House of Representatives Commerce Committee (February 13, 2020)

Summary

A meeting packet for the Commerce Committee of the Florida House of Representatives, meeting on Thursday, February 13, 2020 at 9:00 am, with Mike La Rosa as Chair. The meeting agenda lists bills for consideration, including CS/CS/HB 283 Liens and Bonds, CS/HB 867 Public Accountancy and CS/HB 969 Broadband Internet Service, and a proposed committee substitute, PCS for CS/HB 203 -- Growth Management. The packet includes the House of Representatives staff analysis of CS/CS/HB 283 Liens and Bonds. It also contains committee amendments to PCS for CS/HB 203, with Amendment No. 5 printed last.

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Commerce Committee

Thursday, February 13, 2020
9:00 AM -12:00 PM
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 13, 2020
9:00 am - 12:00 pm
Webster Hall (212 Knott)

I. Call to Order

II. Roll Call

Ill. Welcome and Opening Remarks

IV. Consideration of the following bill(s):

• CS/CS/HB 283 Liens and Bonds by Civil Justice Subcommittee, Business
& Professions Subcommittee, Toledo

• CS/HB 343 Recreational Vehicles by Business & Professions
Subcommittee, Fetterhoff

• CS/HB 755 Pub. Rec. and Meetings/911 and E911 Communication
Systems by Energy & Utilities Subcommittee, DuBose

• CS/HB 867 Public Accountancy by Business & Professions
Subcommittee, Stevenson

• CS/HB 969 Broadband Internet Service by Transportation & Tourism
Appropriations Subcommittee, Drake

• CS/HB 1077 Department of Financial Services by Insurance & Banking
Subcommittee, LaMarca

• CS/HB 1137 Consumer Protection by Insurance & Banking
Subcommittee, Clemons

303 House Office Building, 402 South Monroe Street, Tallahassee, FL 32399-1300
(850) 717-4870
• CS/HB 1169 Speciality Contracting by Business & Professions
Subcommittee, McClure

• CS/HB 1275 Amusement Rides by Agriculture & Natural Resources
Appropriations Subcommittee, Pritchett

• HB 1369 Sports Franchises and Facilities by Pigman

• CS/HB 1409 Pub. Rec./Records of Insurers/Department of Financial
Services by Oversight, Transparency & Public Management
Subcommittee, Grant, M.

• CS/HB 1439 Bank Property of Deceased Account Holders by Insurance &
Banking Subcommittee, Yarborough

• HB 7071 Contingency Risk Multipliers by Judiciary Committee, Beltran

V. Consideration of the following proposed committee substitute(s):

• PCS for CS/HB 203 -- Growth Management

VI. Closing Remarks

VII. Adjournment
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HOUSE OF REPRESENTATIVES STAFF ANALYSIS
BILL #: CS/CS/HB 283 Liens and Bonds
SPONSOR(S): Civil Justice Subcommittee, Business & Professions Subcommittee, Toledo and others
TIED BILLS: IDEN./SIM. BILLS:

REFERENCE ACTION ANALYST STAFF DIRECTOR or
BUDGET/POLICY CHIEF

1) Business & Professions Subcommittee 10 Y, 1 N, As Brackett Anstead
cs
2) Civil Justice Subcommittee 14 Y, 0 N, As Mawn Luczynski
cs
3) Commerce Committee Brackett ') ( Hamon
1

SUMMARY ANALYSIS
A construction lien protects those who provide work or materials to improve property for a property owner, and
who are not in direct contract with the owner, such as subcontractors, laborers, and material suppliers. Any
person who provides services, labor, or materials for improving, repairing, or maintaining real property (except
public property) may place a construction lien on the property if they are not paid for their services and all
notice requirements are met.

The bill:
• Provides that a person may not be required to sign a waiver or release of lien that is different from the
form provided in statute in exchange for payment, except pursuant to contractual agreement;
• Prohibits any provisions in a waiver or release of lien that are not related to the waiver or release unless
the person has agreed to those provisions in their initial contract.
• Provides that the statutory requirements for a waiver of a right to claim against a bond for public
construction projects also apply to Department of Transportation construction projects.
• Provides that licensed building and general contractors who provide construction management services
may record a construction lien.
• Clarifies that construction liens may be filed against a lease for private leaseholds on public property.
• Provides that a person may file one claim of lien for multiple contracts with the same owner.
• Provides that an owner may not record a notice of termination until each person who worked on the
property has been paid.
• Provides that an owner must provide a copy of the notice of termination to a person who timely serves
a notice to owner after the notice of termination has been recorded.
• Allows a lien to be transferred to a payment bond obtained by a subcontractor if the person who filed
the lien is working for the subcontractor.
• Increases the amount needed to obtain a security in order to transfer a lien to the security.
• Provides that a prevailing party is entitled to attorney's fees in actions to enforce liens transferred to
securities.
• Clarifies the definition of "final furnishing" related to specially fabricated materials.
• Removes the requirement that a notice of commencement must include:
o The owner or lessee's interest in the property; and
o A statement that an ownership interest is a leasehold interest if a lessee contracted for the work.

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

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

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

I. SUBSTANTIVE ANALYSIS

A EFFECT OF PROPOSED CHANGES:
Construction Liens

Florida law ensures that people who work on construction projects can obtain payment for their work.
Any person who provides services, labor, or materials for improving, repairing, or maintaining real
property (except public property) may place a construction lien on the property, provided the person
meets the procedural guidelines set forth in current law. 1

The construction lien law requires various notices, demands, and requests to be provided in writing to
the homeowner, contractor, subcontractor, lender, and building officials. Florida law requires that some
notices, demands, and requests be in the statutory form provided in statute, while others do not have to
be in the statutory form. The following notices are required by the act: Notice of Commencement, 2
Notice to Owner, 3 Claim of Lien, 4 Notice of Termination, 5 Waiver or Release of Lien, 6 Notice of Contest
of Lien, 7 Contractor's Final Payment Affidavit, 8 and Demands of Written Statement of Account. 9

Under part I of chapter 713, F.S., a person who is not in privity or direct contract with the owner, such
as subcontractors and material suppliers, who intends to secure the right to claim a lien against the
property must take several additional steps. For example, if a payment bond does not apply, a services
or materials provider must serve a notice to owner10 (in the statutory form provided) that sets forth the
person's name and address and the nature of the services or materials furnished or to be furnished to
the owner's property. 11 The notice informs the owner of who is providing services or materials on their
property, and that the person serving the notice is looking to the owner to ensure he or she receives
payment for their services or materials. 12 The notice to owner must be served no later than 45 days
after the person begins furnishing labor, services, or materials. 13

Once the owner receives a notice to owner, the owner must obtain a waiver or release of lien (not
required to be in the statutory form) from that person before paying the contractor. Otherwise, a
payment to the contractor may constitute an improper payment and the owner is liable to the person if
he or she is not paid by the contractor. 14

1
Ch. 713, F.S.
2
S. 713.13, F.S;.
2
S. 713.06(2), F.S; MHB Construction Services, LLC v. RM-NA HB Waterway Shoppes, l.l.C., 74 So. 3d 587, 589 (Fla. 4th DCA
2011) ("Though the Notice of Commencement was originally required to trigger a commencement date from which to measure time
limitations under the Mechanic's Lien Law, the information contained in the Notice of Commencement provides all the details
necessary to complete a Notice to Owner.")
3
S. 713.06(2), F.S.
4
S. 713.08, F.S.
5
S. 713.132, F.S.
6
S. 713.20, F.S.
7
S. 713.22(2), F.S.
8
S. 713.06(3), F.S.
9
S. 713.16, F.S.
10
S. 713.06(2), F.S.
11
S. 713.06(2)(a), F.S.
12
Stocking Building Supply of Florida, Inc. v. Soares Da Costa Construction Services, LLC, 76 So. 3d 313, 319 (Fla 3d DCA 2011 ).
13
Id
14
Id; S. 713.06, F.S.
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A payment bond is a type of bond that guarantees that a contractor will pay subcontractors, laborers,
and material suppliers for their work. 15 It forms a three-part contract between the owner, the contractor,
and the surety, and ensures that liens are not filed on the project. A payment bond for a construction
project exempts the owner from the construction lien law because the surety insurer providing the bond
guarantees the subcontractors, laborers, and material suppliers will receive payment for their work or
materials. Current law requires contractors to obtain a payment bond for public projects over
$100,000. 16

Waiver or Release of Lien - Current Law

Prior to making a payment to a contractor, an owner must request that a person who served a notice to
owner provide a waiver or release of lien. A waiver or release of lien is essentially a receipt provided by
the person who served a notice to owner acknowledging payment for services performed or materials
provided and a waiver of their ability to file a lien for those services or materials. 17 A waiver or release
of lien can be a partial waiver for some of the person's services or materials or it can be a final waiver
for all of the person's services or materials. 18 A person may not waive or release their right to file a lien
prior to doing work or providing materials. However, a person may waive or release their right to file a
lien prior to receiving payment for their services or materials. 19

Current law provides a statutory form for a waiver or release of lien. However, current law does not
require that the waiver or release of lien be in the statutory form. 20 Thus, a waiver or release of lien may
be substantially different from the form and it may include additional provisions that are not included in
the form. However, an owner may not require a person to sign a waiver or release of lien that is
substantially different from the form. 21

The form provides that the person who served the notice to owner waives their right to claim a lien for
services or materials provided for the job on the owner's property in exchange for a certain sum of
money. 22 The form entitled "Waiver and Release of Lien Upon Partial or Final Payment" states:

"The undersigned lienor, in consideration of the (sum of or final payment in the amount
of) $ , hereby waives and releases its lien and right to claim a lien for labor, services, or
materials furnished to (insert the name of your customer) on the job of (insert the
name of the owner) to the described property (insert description of the property)." 23

Industry biogs and news reports indicate it has become routine in the industry for the form for a waiver
or release of lien to include other miscellaneous provisions, and that subcontractors and material
suppliers should be warned about signing a waiver or release of lien without understanding the extra
provisions. They advise to carefully inspect a waiver or release to ensure someone does not
unknowingly sign a waiver or release that includes additional provisions such as a waiver or release of
all claims, damages, losses, or expenses. 24

15
See Bond, Black's Law Dictionary (l l'h ed. 2019).
16
S. 255.05, F.S.
17
S. 713.20, F.S.; Leonard Klingen, Florida's unwieldy but effective construction lien law, Florida Bar Journal (Jan./Feb.2019),
https://www.floridabar.org/the-florida-bar-journal/floridas-unwie ldy-but-effective-construction-1 ien-law/ (last visited Jan. 16, 2020).
18
S. 713.20, F.S.
19 Id.
20 Id.
21 Id.
22 Id.
23 Id.
24
Alex Benarroche, Florida's "Non-Required" Statutory Lien Waivers Can Lead to Confusion, Levelset (May 20, 2019),
https://www.levelset.com/blog/florida-statutory-lien-waivers-lead-to-confusion/ (last visited Jan. 16, 2020); Craig Distel,
Understanding waivers and releases for Florida construction contractors, (Dec. 20, 2018),
https://mcdonaldhopkins.com/lnsights/B log/I ndustry-1 nsi ghts/2018/ 12/20/U nderstanding-wai vers-and-releases-for-Florida-
construction-contractors (last visited Jan. 16, 2020).
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Right to Claim Against a Payment Bond - Current Law

Similar to a waiver or release of lien, in a situation where there is a payment bond, prior to making a
payment to a subcontractor, laborer, or material supplier, a contractor may request the person provide
a waiver of right to claim against the payment bond.

A waiver of right to claim against a bond is similar to a waiver or release of lien. Like a waiver or release
of lien, a waiver of right to claim against the bond is essentially a receipt provided by the person
acknowledging payment for services performed or materials provided and a waiver of their ability to
seek payment from the surety. 25
Current law provides a statutory form for a waiver of right to claim against a bond, which is similar to a
waiver or release of a lien. Current law provides that a contractor may not require a person to sign a
waiver of right to claim against a bond that is substantially different from the form. However, also like a
waiver or release of lien, the statutory form for the waiver of right to claim against a bond is not
required, and a waiver of right to claim against a bond may be different from the form and it may include
additional provisions that are not included in the statutory form. 26

According to industry experts, any person required to provide a claim against a bond must ensure they
carefully inspect a waiver or release to ensure they do not unknowingly sign a waiver or release that
includes additional provisions such as a waiver or release of all claims, damages, losses, or
expenses. 27

Waiver or Release of Lien and Right to Claim Against a Payment Bond - Effect of the Bill

The bill provides that a person may not be required to sign a waiver or release of lien or a right to claim
against a payment bond that is different from the statutory forms in order to receive payment, unless
the person agreed to sign a different form in his or her contract with the contractor.

The bill provides that any provision in a waiver or release of lien or a right to claim against a bond that
is not related to the waiver or release of lien or the right to claim against a bond is not enforceable,
unless the person agreed to those provisions in his or her contract with the contractor.

Payment Bonds for Department of Transportation Construction Jobs - Current Law

Current law requires the successful bidder on a construction or maintenance contact project for the
Department of Transportation (DOT) to obtain a payment bond. 28 Subcontractors, laborers, and
material suppliers are able to make a claim against the bond if they do not get paid. 29

These types of bonds work similarly to other construction payment bonds. A person cannot waive their
right to make a claim against the bond in advance, but they can waive their right to make a claim
against the bond in order to receive payment. However, current law does not require that the statutory
form for a waiver of right to claim against a bond be used for waivers related to DOT construction or
maintenance projects, so a person may be required to sign a waiver that has additional provisions in it
that are not related to the waiver. 30

Payment Bonds for Department of Transportation Construction Jobs - Effect of the Bill

The bill requires that the statutory form for waiving a right to claim against a bond be used for DOT
construction and maintenance projects.

25
Ss. 255.05(2), and 713.235, F.S.
26 Id.
27
Benarroche, supra note 23.
28
S. 337.18, F.S.
29 Id.
Jo Id
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For DOT construction or maintenance projects, the bill provides:
• A person may not be required to sign a waiver of a right to claim against a payment bond that is
different from the statutory form in order to receive payment unless the person signed a
contract, which requires the person to sign a different form; and
• Any provision in a waiver of a right to claim against a bond that is not related to the waiver or
release of lien or the right to claim against a bond is not enforceable, unless the person agreed
to those provisions in his or her contract with the contractor.

Licensed General and Building Contractors - Current Law

Licensed construction contractors are either certified by or registered with the Construction Industry
Licensing Board (GILB). The GILB is housed in the Department of Business and Professional
Regulation (DBPR) and consists of 18 members who are appointed by the Governor and confirmed by
the Senate. The GILB is responsible for licensing, regulating, and disciplining certified construction
contractors. 31

"Certified contractors" are individuals who pass the state competency examination and obtain a
certificate of competency issued by DBPR. Certified contractors are permitted to practice in any
jurisdiction in the state. 32

"Registered contractors" are individuals that have taken and passed a local competency examination
and can practice contracting only in the local jurisdiction for which the license is issued. 33

A licensed "general contractor" is a person who may contract for any type of construction service, and
may perform any type of construction service unless they are required to subcontract the work to a
licensed subcontractor. 34

A licensed "building contractor" is a person who may contract for construction services for commercial
and residential buildings that do not exceed three stories in height, or for construction for any size
building if the construction does not affect the structural frame of the building. A licensed building
contractor may perform any of the above construction services unless they are required to subcontract
the work to a licensed subcontractor. 35

Construction Management Services - Current Law

Construction managers and construction management entities or companies are responsible for the
overall management of a construction project from the predesign phase to the completion of the
project. 36 This can include providing preconstruction planning, reviewing designs, estimating costs,
determining the value of different building products, project scheduling, contract negotiation, bid
procedures, and coordination of trade contractors and safety programs. 37

Construction managers and construction management businesses are not regulated or licensed by the
DBPR.

Generally, construction managers and construction management businesses are also not required to
be licensed contractors, engineers or architects. However, if the construction manager or construction

31
See generally ch. 489, F.S.
32
S. 489.105, F.S.
33
S. 489.103, F.S.
34
Ss. 489.105(3), and 489.113, F.S.
35 fd
36
The Florida Bar, Florida Construction Law Practice, Chapter 4: Rights and Liabilities of Construction Managers (9th ed. 2018).
31 Id.
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management business is performing any activity that otherwise requires a license, they must have that
specific license or employ someone that holds such license. 38

Section 255.103, F.S., allows a local government entity to hire a construction manager for a
construction project. The construction manager is "responsible for construction project scheduling and
coordination in both preconstruction and construction phases and generally responsible for the
successful, timely, and economical completion of the construction project." 39

Section 255.103, F.S., also allows a local government to hire a program management entity. The
program management entity is "responsible for schedule control, cost control, and coordination in
°
providing or procuring planning, design, and construction services."4 Construction managers and
program management entities hired by local governments are not required to be a licensed contractor,
engineer, or architect. However, if such persons or entities are not licensed, they must hire a licensed
professional to perform any job that does require a license. 41

Section 255.32, F.S., allows the state to hire construction managers for construction projects.
Construction managers hired by the state must be licensed general or building contractors. The
construction manager "coordinates and supervises a construction project from the conceptual
development stage through final construction, including the scheduling, selection, contracting with, and
directing of specialty trade contractors, and the value engineering of a project."42

The construction lien law allows any person who provides services, labor, or materials for improving
real property (except public property) to place a construction lien on the property. 43 However, it is
unclear if construction managers may place a lien on a property because they do not necessarily
provide labor, services, or materials that improves real property. 44 Some courts have determined that
construction managers are not permitted to file such a lien. 45 The lien law also provides that a
contractor may file a lien for any money owed to him or her for labor, services, or materials. 46 The
construction lien law defines a "contractor'' as any person other than materialmen or laborer who
contracts with an owner to improve the owner's real property. The definition also includes a licensed
architect and engineer who improve real property through a design-build contract. 47 However, the
contractor definition does not include construction manager services. 48

Licensed General and Building Contractors and Construction Management Services - Effect of the Bill

The bill amends the construction lien law's definition of "contractor'' to include any licensed general or
building contractor who provides construction management or program management services. This
gives licensed general and building contractors who provide construction management or program
management services the ability to file a lien for their services.

38 Id.
39
S. 255.103(2), F.S.
40
S. 255.103(3), F.S.
41 Id.
42
S. 255.32(l)(a), F.S.
43
See generally ch. 713, F.S.
44
Scott Wolfe Jr., Can Construction Managers File Mechanics Liens? Levelset, (Jul. 19, 2019), https://www.levelset.com/blog/can-
construction-managers-file-mechanics-liens/ (last visited Jan. 16, 2020).
45
O'Kon and Company, Inc. v. Riedel, 540 So. 2d 836, 839-40 (Fla. 1st DCA 1988) ("Chapter 713 which provides for professionals
offering services to file a lien for services, does not include 'project managers."'); Medellin v. MLA Consulting, Inc., 69 So. 3d 372
(Fla. 5th DCA 2011) (A person cannot file a construction lien for home construction consulting services because it does not improve
real property.); See The Florida Bar supra note 35.
46
S. 713.05, F.S.
47
S. 713.01(8), F.S.
48 Id.
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The bill defines construction management services to mirror the definition of a construction
management entity ins. 255.103, F.S., providing that such services include: "responsibility for
scheduling and coordination in both preconstruction and construction phases and for the successful,
timely, and economical completion of the construction project."

The bill also defines program management services to mirror the definition of a program management
entity ins. 255.103, F.S., providing that such services include: "responsibility for scheduling control,
cost control, and coordination in providing or procuring planning, design, and construction."

Construction Liens for Private Leasehold Interests in Public Property - Current Law

Although construction liens generally apply to the owner of the property improved, construction liens
may also apply in situations where the property owner's tenant has contracted for the improvement. 49

However, if a tenant contracts for improvements to real property, the contractor is only able to file a lien
against the tenant's leasehold interest, instead of against the real property, unless the tenant contracts
for an improvement with the landlord's agreement. 50

Construction liens may not be filed against public property, but construction lien law does not currently
indicate whether liens may be filed against the private leasehold interests of a tenant on public
property. 51 However, according to industry experts, in some cases liens may be filed against private
leasehold interests on public property, such as when airlines and car rental agencies lease property
within public airports. 52

Construction Liens for Private Leasehold Interests in Public Property - Effect of the Bill

The bill amends the definition of "real property" to include private leaseholds on public property, which
allows a person to file a construction lien against a private leasehold interest on public property.

Final Furnishing of Specially Fabricated Materials - Current Law

In order to record a construction lien on real property, a person must record a claim of lien with the
clerk of court of the county where the property is located and serve the owner with the claim of lien. The
person must serve the owner with the claim of lien before recording the lien or within 15 days of
recording the lien. 53 If a claim of lien is not recorded, the lien is void to the extent that the failure or
delay is shown to have prejudiced any person entitled to rely on service of the claim of lien. 54

A person may file a claim of lien at any time during the progress of work. However, a person may not
file a claim of lien later than 90 days after the final furnishing of labor or materials by the person. 55

Current law provides that the final furnishing date is the last day the person furnishes labor, services, or
materials. The date may not be measured by other standards, such as the issuance of a certificate of
occupancy or the issuance of a certificate of final completion, and does not include correction of
deficiencies in the person's previously performed work or materials supplied. Further, with respect to

49
Adam B. Edgecombe, How do construction liens impact a commercial landlord in Florida?, JimersonBirr (May 7, 2019),
https://www.jimersonfirm.com/blog/2019/05/how-construction-liens-impact-commercial-landlord/ (last visited Jan. 16, 2020).
50
S. 713.10, F.S.
51
See generally ch. 713, F.S.
52
H. Wesley, Property Interests Subject to Construction Liens in Florida, (Sep. 21, 2018),
https://www.lorman.com/resources/property-interests-subject-to-construction-liens-in-tlorida-l 7322 (last visited Jan. 16, 2020); 8 Fla.
Prac., Constr. Law Manual§ 8.3 (2019-2020 ed.).
53
S. 713.08, F.S.
54
S. 713.08(4), F.S.
55
S. 713.08(5), F.S.
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rental equipment, the term means the date that the rental equipment was last on the job site and
available for use. 56

Materials must be incorporated in the jobsite in order for the materials to be considered
furnished. Current law provides that the delivery of materials to the jobsite is prima facie
evidence that the materials have been incorporated into the jobsite. 57

However, "specially fabricated materials" do not have to be incorporated into a jobsite in order
for the materials to be considered furnished. Specially fabricated materials are materials made
for a particular project and are not suited or readily adaptable for use in a different project. 58

Since specially fabricated materials cannot be used for another project, Florida courts have
determined that specially fabricated materials do not have to be delivered to a jobsite in order
for the supplier to file a lien on the real property. 59 However, current law does not provide a date
to determine the last day specially fabricated materials are furnished.

Final Furnishing of Specially Fabricated Materials - Effect of the Bill

The bill provides that the final furnishing date for specially fabricated materials is the date that the last
portion of the specially fabricated materials is delivered to the jobsite, or if any portion of the specially
fabricated materials is not delivered to the jobsite by no fault of the material supplier, the final furnishing
date is the later of:
• One year after the date the material supplier completes the fabrication;
• One year after the date the material supplier receives the last portion of the specially fabricated
materials needed to complete the order; or
• The date the notice of commencement expires.

Claim of Lien - Current Law

A person may record a single claim of lien for multiple services or materials that are provided to
different lots, parcels, or tracts of land (properties) as long as the multiple services or materials are
under the same contract, the contract is directly with the owner, and the properties have the same
owner. 60 However, a person may not record a single claim of lien for multiple services or materials if
there is more than one contract, even if the contracts for services and materials are with the same
owner. 61

Claim of Lien - Effect of the Bill

The bill provides that a person may record a single claim of lien for multiple services or materials for
multiple contracts and multiple properties as long as the contracts are directly with the owner, and the
owner is the same owner for all the contracts and properties.

Notice of Commencement - Current Law

Before construction begins, a property owner or the owner's authorized agent generally must file a
notice of commencement for recording by the clerk of court in the official records. The notice of
commencement must also be posted on the construction site, and filed with the building department

56
S. 713.01(12), F.S.
57
S. 713.01(13), F.S.
58
Surf Properties v. Markowitz Bros., 75 So. 298,302 (Fla. 1954).
59
Oolite Industries, Inc. v. Millman Construction Company, Inc., 501 So. 2d 655,656 (Fla. 3rd DCA 1987); Aquatic Plant
Management, Inc. v. Paramount Engineering, Inc., 977 So. 2d 600,603 (Fla. 4th DCA 2007).
60
S. 713.09, F.S.
61
Lee v. All Florida Construction Co., 662 So. 2d 365, 366-67 (Fla. 5th DCA 1995).
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before the first inspection. 62 The notice of commencement determines the priority of construction liens,
provides details needed to fill out a notice to owner, establishes the date on which the statute of
limitations begins to run, and protects owners from double payments. 63
Current law provides a statutory form for the notice of commencement, and the notice must be
substantially similar to the form. The notice of commencement must contain information describing: the
real property on which the improvement will be located; a general description of the improvement; the
name and address of the owner and contractor; information relating to a surety bond, if a bond applies;
the contact information for the lender for the project; contact information designated by the owner upon
whom notices may be served; the notice's expiration date; a warning in all caps stating that the notice
must be recorded and payments after the notice expires could be improper and lead to the owner
paying twice. 64

The owner's information required in the notice of commencement must include: 65
• The name and address of the owner or lessee if the lessee contracted for the work;
• The owner or lessee's interest in the property;
• A statement that the ownership interest is a leasehold interest if a lessee contracted for the
work;
• The name and address of the fee simple titleholder6 6 (if different from the owner); and
• Any person designated by the owner to receive a claim of lien.

Notice of Commencement - Effect of the Bill

The bill repeals the requirement that the notice of commencement must include:
• The owner or lessee's interest in the property; and
• A statement that the ownership interest is a leasehold interest if a lessee contracted for the
work.

Notice of Termination - Current Law

Current law allows an owner to terminate a notice of commencement before it expires. In order to
terminate a notice of commencement, an owner must record a notice of termination that includes: 67
• All the information in the notice of commencement, including the reference numbers in the
official records of the clerk of court and the date of the notice of commencement;
• The date which the notice of commencement is terminated, which may not be earlier than 30
days after the notice of termination is recorded;
• A statement that all persons who worked on the property have been paid in full; and
• A statement that the owner has served a copy of the notice of termination to every person with a
direct contract with the owner and every person who timely served a notice to owner and will
serve a copy of the notice of termination on each lienor who timely serves a notice to owner
after the notice of termination has been recorded.

62
Ss. 713.13(1)(a), and 713.135(1)(d), F.S.
63
Stocking Building Supply of Florida, Inc., 76 So. 3d at 317; The Florida Senate Committee on Regulated Industries, Review of the
Florida Construction Lien Law, November 2007,
http://archive.flsenate.gov/data/Publications/2008/Senate/reports/interim reports/pdf/2008- I49ri.pdf (last visited Jan. 16, 2020); Fred
Dudley, William A. Buzzett, & Deborah Kaveney Kearney, Construction Lien Law Reform: The Equilibrium of Change, 18 Fla. St. U.
L. Rev., 278 (1991).
64
S. 713.13(1)(a), F.S.
65
S. 713.13(1)(d), F.S.
66
The construction lien law does not define fee simple titleholder; however, Black's Law Dictionary defines fee simple title as an
interest in land that, being the broadest property interest allowed by law, endures until the current holder dies without heirs. Black's
Law Dictionary (11th ed. 2019).
67
S. 713.132(1), F.S.
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An owner may record a notice of termination after: 68
• The construction project has been completed; or
• Work stops on the project and every person who worked on the property has been paid.

If the owner serves a copy of the notice of termination on every person with a direct contract with the
owner and who served a notice to owner before the recoding of the notice of termination, a notice of
commencement will terminate 30 days after the notice of termination is recorded or on the termination
date stated in the notice, whichever is later. 69

Notice of Termination - Effect of the Bill

The bill provides that an owner must serve a copy of the notice of termination on any person who timely
serves a notice to the owner after the owner has recorded the notice of termination. The bill also
provides that a notice of termination takes effect against such person 30 days after he or she receives
the copy of the notice of termination. Further, the bill provides that the notice of termination must
include a statement that the owner will serve a copy of the notice on any person who timely serves a
notice to owner after the notice of termination has been recorded.

The bill allows an owner to record a notice of termination only after all persons who have worked on the
property have been paid, and removes the option for the owner to file a notice of termination after a
construction project has completed. The bill also removes the requirement that a person may not record
a notice of termination until work has stopped on the project, when choosing to record after every
person has been paid.

The bill clarifies that the notice of termination must include the notice of commencement's date that was
affixed by the clerk of court.

Manner of Serving Documents - Current Law

Documents permitted or required under the Construction Lien law, and notices to contractors for
payment bonds for public construction projects must be served by one of the following methods: 70
• By actual delivery to the person being served;
• By common carrier delivery service or by registered, Global Express Guaranteed, or certified
mail, to the person being served with postage or shipping paid by the sender and with evidence
of delivery; or
• By posting on the construction site if service cannot be performed by the other two methods.

Service of a document by common carrier delivery service or by registered, Global Express
Guaranteed, or certified mail is effective on the day the notice, claim, or waiver is mailed, if it is: 71
• Sent to the last address shown in the notice of commencement or, in the absence of a notice, to
the last address shown in the building permit application, or to the last known address of the
person to be served; and
• Returned as being "refused," "moved, not forwardable," or "unclaimed," or is otherwise not
delivered or deliverable through no fault of the person serving the item.

However, for construction projects where there is a payment bond, a notice to contractor is effective on
the date of mailing if: 72
• The notice is mailed by registered, Global Express Guaranteed, or certified mail, with postage
prepaid, to the person to be served at the last address show in the notice of commencement,

68
S. 713.132(3), F.S.
69
S. 713.132(4), F.S.
70
S. 713.18(1), F.S.
71
S. 713.18(3), F.S.
72
S. 713.18, F.S.
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the last address shown in the building permit application, or the last known address of the
person being served;
• The notice is mailed within 40 days after the date the person first furnishes labor, services, or
materials; and
• The person who served the notice maintains a registered or certified mail log that shows the
mail number issued by the United States Postal Service (USPS), the name and address of the
person served, and the date stamp of the USPS confirming the date of mailing; or maintains
electronic tracking records generated by the USPS containing the tracking number, the name
and address of the person served, and verification of the date of receipt by the USPS.

Manner of Serving Documents - Effect of the Bill

The bill clarifies that "actual delivery to the person being served" means "hand delivery to the person
being served."

The bill provides that, in addition to notice to contractors, any document permitted or required for
payment bonds for public construction projects must be served by one of the following methods:
• By hand delivery to the person being served;
• By common carrier delivery service or by registered, Global Express Guaranteed, or certified
mail, to the person being served with postage or shipping paid by the sender and with evidence
of delivery; or
• By posting on the construction site if service cannot be performed by the other two methods.

The bill provides that service by common carrier delivery service or by registered, Global Express
Guaranteed, or certified mail is effective on the day the notice, claim, or waiver is mailed or shipped.

The bill provides that a notice to owner for a construction project where there is no payment bond is
effective on the date of mailing if the person serving it meets the same requirements for a notice to
contractor.

Notice of Nonpayment for a Payment Bond - Current Law

Since a payment bond exempts the owner from having construction liens placed on their real property,
the surety guarantees a subcontractor, laborer, or material supplier that they will receive payment from
the general contractor. If the general contractor fails to pay, the subcontractor, laborer, or material
supplier will seek payment from the surety. In order to receive protection under a payment bond for a
public or private project, a subcontractor, laborer, or material supplier lacking a direct contract with the
contractor must provide a written notice of nonpayment to the contractor and the surety. 73

Notice of Nonpayment for a Payment Bond - Effect of the Bill

The bill provides that a subcontractor, laborer, or material supplier must provide a notice of
nonpayment to the general contractor and a copy of the notice of nonpayment to the surety.

Transfer of Liens to a Security- Current Law

If a lien is recorded against a piece of property, any person who has an interest in the property may
have the lien transferred off the property and on to a security by depositing money with the clerk of
court or filing a bond executed by a licensed surety insurer with the clerk of court. 74 The amount of
money deposited or the bond must be in an amount that includes: 75
• The amount of the lien;

73
Ss. 255.05(2), and 713.23(l)(d), F.S.
74
S. 713.24(1), F.S.
15 Id.
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• Interest for at least three years; and
• $1,000 or 25 percent of the lien amount, whichever is greater.

Any person who has an interest in the security or the liened property may file an action in the civil court
where the security is deposited to enforce a lien or to recover against the security. An action to enforce
a transferred lien must be commenced within one year of filing the lien. If a person has filed an action to
enforce a lien and the lien is transferred to a security, the person must file an action to recover against
the lien within one year of the transfer. 76

Contractors can transfer liens filed by one of their subcontractors, laborers, or material suppliers to a
security to appease an owner who is worried about their property. This allows a project to keep moving
forward while still providing a remedy for non-payment. 77

Transfer of Liens to a Security - Effect of the Bill

The bill increases the amount required to transfer a lien by providing that the amount deposited or the
amount of the bond, in addition to the amount of the lien and interest, must include $1,000 or 35
percent of the lien amount, whichever is greater.

The bill provides that a lien may also be transferred to a payment bond obtained by a subcontractor if:
• The lien is filed by a person working under the subcontractor;
• The lien is not filed by the subcontractor or the contractor; and
• The subcontractor obtained the payment bond at the time of beginning work.

Any provision in the subcontractor's payment bond is unenforceable if it:
• Restricts the classes of persons who may file a claim against the bond;
• Restricts the venue of any proceeding involving the bond;
• Limits or expands the duration of the bond; or
• Includes any additional condition required to enforce a claim for a payment against the bond
that is not required by the construction lien law.

Attorney's Fees - Current Law

The prevailing party in an action to enforce a lien or a claim against a bond is entitled to reasonable
attorney's fees.

Attorney's Fees - Effect of the Bill

The bill provides that a prevailing party in an action to enforce a lien transferred to a security is also
entitled to reasonable attorney's fees.

B. SECTION DIRECTORY:
Section 1. Amends s. 255.05, F.S., relating to bonds of contractor constructing public buildings; form;
action by claimants.

Section 2. Amends s. 337.18, F.S., relating to surety bonds for construction or maintenance contracts;
requirement with respect to contract award; bond requirements; defaults; damage
assessments.

76
S. 713.24, F.S.
77
Levelset, Primer on Mechanics Lien Bonds and Bonding a Mechanics Lien, (Aug. 29, 2019), https://www.levelset.com/blog/primer-
on-mechanic-lien-bonds-and-bonding-off-a-mechanics-lien/ (last visited Jan. 16, 2020).
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Section 3. Amends s. 713.01, F.S., relating to definitions.

Section 4. Amends s. 713.09, F.S., relating to single claim of lien.

Section 5. Amends s. 713.13, F.S., relating to notice of commencement.

Section 6. Amends s. 713.132, F.S., relating to notice of termination.

Section 7. Amends s. 713.18, F.S., relating to manner of serving notices and other instruments.

Section 8. Amends s. 713.20, F.S., relating to waiver or release of liens.

Section 9. Amends s. 713.23, F.S., relating to payment bond.

Section 10. Amends s. 713.235, F.S., relating to waivers of right to claim against payment bond;
forms.

Section 11. Amends s. 713.24, F.S., relating to transfer of liens to security.

Section 12. Amends s. 713.29, F.S., relating to attorney's fees.

Section 13. Provides an effective date of July 1, 2020.

II. FISCAL ANALYSIS & ECONOMIC IMPACT STATEMENT

A. FISCAL IMPACT ON STATE GOVERNMENT:

1. Revenues:
None.

2. Expenditures:
None.

8. FISCAL IMPACT ON LOCAL GOVERNMENTS:

1. Revenues:
None.

2. Expenditures:
None.

C. DIRECT ECONOMIC IMPACT ON PRIVATE SECTOR:
Unknown.

D. FISCAL COMMENTS:
None.
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Ill. COMMENTS

A. CONSTITUTIONAL ISSUES:

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

2. Other:
None.

B. RULE-MAKING AUTHORITY:
None.

C. DRAFTING ISSUES OR OTHER COMMENTS:
None.

IV. AMENDMENTS/ COMMITTEE SUBSTITUTE CHANGES

On December 11, 2019, the Business & Professions Subcommittee adopted a strike-all amendment and
reported the bill favorably as a committee substitute. The committee substitute:
• Provides that a subcontractor may not be required to sign a waiver or release of lien that is different
from the form provided in statute in exchange for payment;
• Prohibited any provisions in a waiver or release of lien that are not related to the waiver or release
unless the subcontractor has agreed to those provisions in their initial contract.
• Provides that the statutory requirements for waivers of right to claim against a bond for public
construction projects also apply to DOT construction projects.
• Provides that licensed building and general contractors who provide construction management
services may record a construction lien.
• Provides that construction liens may be filed against a lease when a construction project is for a
private entity leasing public property.
• Provides that a person may file one claim of lien for multiple contracts with the same owner.
• Removes the use of the term "owner of record" from the notice of commencement thereby
maintaining current law.
• Provides that an owner may not record a notice of termination until each person who worked on the
property has been paid.
• Provides that an owner must provide a copy of the notice of termination to a person who timely
serves a notice to owner after the notice of termination has been recorded.
• Allows a lien to be transferred to a payment bond obtained by a subcontractor if the person who
filed the lien is working for the subcontractor.
• Increased the amount needed to obtain a bond in order to transfer a lien to the bond.
• Provides that a prevailing party is entitled to attorney's fees in actions to enforce liens that have
been transferred to bonds.

On January 16, 2020, the Civil Justice Subcommittee adopted a strike-all amendment and reported the bill
favorably as a committee substitute. The committee substitute:
• Deletes a provision of the bill giving a construction lien priority over any subordinate liens relating
back to a lien recorded before the construction lien attached.
• Clarifies that a recorded notice of termination must contain the recording date affixed by the
recording office on the recorded notice of commencement.
• Clarifies that a notice of termination must be served on a lienor who timely and properly served a
notice to owner before the recording of the notice of termination.

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• Changes references from "property records" to "official records" and from "instruments" to
"documents" for purposes of serving documents.
• Provides the permissible manners of service for notices related to:
o Contest of claim against a payment bond;
o Intent to look to the bond for protection; and
o Performance of labor or materials delivery and nonpayment.
• Changes a permissible manner of document service from actual delivery to hand delivery for
documents required under the construction lien and related statutes.
• Clarifies that when a person serves a document required under the construction lien law and related
statutes by common carrier delivery service or other mail he or she must mail or serve the
document to the address of the person being served.
• Provides that service of a notice to contractor combined with a notice to owner is effective as of the
date of mailing.

The analysis is drafted to the committee substitute to the committee substitute as passed by the Civil
Justice Subcommittee.

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F L O R D A H O U S E 0 F REPRESENTATIVES

CS/CS/H B 283 2020

1 A bill to be entitled
2 An act relating to liens and bonds; amending s.
3 255.05, F.S.; requiring that a copy of a notice of
4 nonpayment be served on the surety; prohibiting a
5 person from requiring a claimant to furnish a certain
6 waiver in exchange for or to induce certain payments;
7 providing that specified provisions in certain waivers
8 are unenforceable; providing an exception; amending s.
9 337.18, F.S.; providing that certain waivers apply to
10 certain contracts; amending s. 713.01, F.S.; revising
11 definitions; amending s. 713.09, F.S.; authorizing a
12 lienor to record one claim of lien for multiple direct
13 contracts; amending s. 713.13, F.S.; revising
14 information to be included in a notice of
15 commencement; amending s. 713.132, F.S.; revising
16 requirements for a notice of termination; amending s.
17 713.18, F.S.; providing the manner in which documents
18 relating to certain construction bonds must be served;
19 providing that service of a document may be by hand
20 delivery; providing that service of a document is
21 effective on the date of mailing or shipping; making
22 technical changes; amending ss. 713.20 and 713.235,
23 F.S.; prohibiting a person from requiring a lienor to
24 furnish a certain waiver or release in exchange for or
25 to induce certain payments; providing that specified

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26 provisions in certain waivers or releases are
27 unenforceable; providing an exception; amending s.
28 713.23, F.S.; requiring that a copy of a notice of
29 nonpayment be served on the surety; amending s.
30 713.24, F.S.; revising the process to transfer a lien
31 to security; revising the amounts of certain deposits
32 or bonds; amending s. 713.29, F.S.; authorizing
33 attorney fees in actions to enforce a lien that has
34 been transferred to security; providing an effective
35 date.
36
37 Be It Enacted by the Legislature of the State of Florida:
38
39 Section 1. Paragraphs (a) , ( d) , and ( f) of subsection ( 2)
40 of section 255.05, Florida Statutes, are amended to read:
41 255.05 Bond of contractor constructing public buildings;
42 form; action by claimants.-
43 (2) (a) 1. If a claimant is no longer furnishing labor,
44 services, or materials on a project, a contractor or the
45 contractor's agent or attorney may elect to shorten the time
46 within which an action to enforce any claim against a payment
47 bond must be commenced by recording in the clerk's office a
48 notice in substantially the following form:
49 NOTICE OF CONTEST OF CLAIM
50 AGAINST PAYMENT BOND

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51 To: ... (Name and address of claimant) ...
52 You are notified that the undersigned contests your notice
53 of nonpayment, dated . . . . . . . . . . . . , . . . . . . . . , and served on the
54 undersigned on . . . . . . . . . . . . , . . . . . . . . , and that the time within
55 which you may file suit to enforce your claim is limited to 60
56 days after the date of service of this notice.
57 DATED on . . . . . . . . . . . . , ........ .
58 Signed: ... (Contractor or Attorney) .. .
59 The claim of a claimant upon whom such notice is served and who
60 fails to institute a suit to enforce his or her claim against
61 the payment bond within 60 days after service of such notice is
62 extinguished automatically. The contractor or the contractor's
63 attorney shall serve a copy of the notice of contest on te the
64 claimant at the address shown in the notice of nonpayment or
65 most recent amendment thereto and shall certify to such service
66 on the face of the notice and record the notice.
67 2. A claimant, except a laborer, who is not in privity
68 with the contractor shall, before commencing or not later than
69 45 days after commencing to furnish labor, services, or
70 materials for the prosecution of the work, serve the contractor
71 with a written notice that he or she intends to look to the bond
72 for protection. A claimant who is not in privity with the
73 contractor and who has not received payment for furnishing his
74 or her labor, services, or materials shall serve a written
75 notice of nonpayment on the contractor and a copy of the notice

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76 on the surety. The notice of nonpayment shall be under oath and
77 served during the progress of the work or thereafter but may not
78 be served earlier than 45 days after the first furnishing of
79 labor, services, or materials by the claimant or later than 90
80 days after the final furnishing of the labor, services, or
81 materials by the claimant or, with respect to rental equipment,
82 later than 90 days after the date that the rental equipment was
83 last on the job site available for use. Any notice of nonpayment
84 served by a claimant who is not in privity with the contractor
85 which includes sums for retainage must specify the portion of
86 the amount claimed for retainage. An action for the labor,
87 services, or materials may not be instituted against the
88 contractor or the surety unless the notice to the contractor and
89 notice of nonpayment have been served, if required by this
90 section. Notices required or permitted under this section must
91 be served in accordance withs. 713.18. A claimant may not waive
92 in advance his or her right to bring an action under the bond
93 against the surety. In any action brought to enforce a claim
94 against a payment bond under this section, the prevailing party
95 is entitled to recover a reasonable fee for the services of his
96 or her attorney for trial and appeal or for arbitration, in an
97 amount to be determined by the court, which fee must be taxed as
98 part of the prevailing party's costs, as allowed in equitable
99 actions. The time periods for service of a notice of nonpayment
100 or for bringing an action against a contractor or a surety are

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101 shall be measured from the last day of furnishing labor,
102 services, or materials by the claimant and may not be measured
103 by other standards, such as the issuance of a certificate of
104 occupancy or the issuance of a certificate of substantial
105 completion. The negligent inclusion or omission of any
106 information in the notice of nonpayment that has not prejudiced
107 the contractor or surety does not constitute a default that
108 operates to defeat an otherwise valid bond claim. A claimant who
109 serves a fraudulent notice of nonpayment forfeits his or her
110 rights under the bond. A notice of nonpayment is fraudulent if
111 the claimant has willfully exaggerated the amount unpaid,
112 willfully included a claim for work not performed or materials
113 not furnished for the subject improvement, or prepared the
114 notice with such willful and gross negligence as to amount to a
115 willful exaggeration. However, a minor mistake or error in a
116 notice of nonpayment, or a good faith dispute as to the amount
117 unpaid, does not constitute a willful exaggeration that operates
118 to defeat an otherwise valid claim against the bond. The service
119 of a fraudulent notice of nonpayment is a complete defense to
120 the claimant's claim against the bond. The notice of nonpayment
121 under this subparagraph must include the following information,
122 current as of the date of the notice, and must be in
123 substantially the following form:
124 NOTICE OF NONPAYMENT
125 To: ... (name of contractor and address)

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12 6 ... (name of surety and address) ...
127 The undersigned claimant notifies you that:
128 1. Claimant has furnished ... (describe labor, services, or
129 materials) ... for the improvement of the real property
130 identified as ... (property description) .... The corresponding
131 amount unpaid to date is$ .... , of which$ .... is unpaid
132 retainage.
133 2. Claimant has been paid to date the amount of$ .... for
134 previously furnishing ... (describe labor, services, or
135 materials) ... for this improvement.
136 3. Claimant expects to furnish ... (describe labor,
137 services, or materials) ... for this improvement in the future
138 (if known), and the corresponding amount expected to become due
139 is $ .... (if known).
140 I declare that I have read the foregoing Notice of Nonpayment
141 and that the facts stated in it are true to the best of my
142 knowledge and belief.
143 DATED on . . . . . . . . . . . . ,
144 ... (signature and address of claimant) ...
145 STATE OF FLORIDA
146 COUNTY OF ....... .
147 The foregoing instrument was sworn to (or affirmed) and
148 subscribed before me this .... day of .... , ... (year) ... , by
149 ... (name of signatory) ... .
150 ... (Signature of Notary Public - State of Florida) ...

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151 ... (Print, Type, or Stamp Commissioned Name of Notary
152 Public) ...
153 Personally Known ........ OR Produced Identification ....... .
154 Type of Identification Produced . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
155 (d) A person may not require a claimant to furnish a
156 waiver that is different from the forms in paragraphs (b) and
157 (c) in exchange for, or to induce payment of, a progress payment
158 or final payment, unless the claimant has entered into a direct
159 contract that requires the claimant to furnish a waiver that is
160 different from the forms in paragraphs (b) and (c).
161 (f) Any provisions in a waiver that are 4-s- not related to
162 the waiver of right to claim against a payment bond as provided
163 in this subsection are unenforceable, unless the claimant has
164 otherwise agreed to those provisions in the claimant's direct
165 contract substantially siffiilar to the forffis in this subsection
166 is enforceable in accordance with its terffis.
167 Section 2. Paragraph (c) of subsection (1) of section
168 337.18, Florida Statutes, is amended to read:
169 337.18 Surety bonds for construction or maintenance
170 contracts; requirement with respect to contract award; bond
171 requirements; defaults; damage assessments.-
172 ( 1)

173 (c) A claimant, except a laborer, who is not in privity
174 with the contractor shall, before commencing or not later than
175 90 days after commencing to furnish labor, materials, or

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17 6 supplies for the prosecution of the work, furnish the contractor
177 with a notice that he or she intends to look to the bond for
178 protection. A claimant who is not in privity with the contractor
179 and who has not received payment for his or her labor,
180 materials, or supplies shall deliver to the contractor and to
181 the surety written notice of the performance of the labor or
182 delivery of the materials or supplies and of the nonpayment. The
183 notice of nonpayment may be served at any time during the
184 progress of the work or thereafter but not before 45 days after
185 the first furnishing of labor, services, or materials, and not
186 later than 90 days after the final furnishing of the labor,
187 services, or materials by the claimant or, with respect to
188 rental equipment, not later than 90 days after the date that the
189 rental equipment was last on the job site available for use. An
190 action by a claimant, except a laborer, who is not in privity
191 with the contractor for the labor, materials, or supplies may
192 not be instituted against the contractor or the surety unless
193 both notices have been given. Notices required or permitted
194 under this section may be served in any manner provided ins.
195 713.18, and provisions for the waiver of claims against a
196 payment bond contained ins. 255.05(2) apply to all contracts
197 under this section.
198 Section 3. Subsections ( 8) , ( 12) , and ( 2 6) of section
199 713.01, Florida Statutes, are amended to read:
200 713.01 Definitions.-As used in this part, the term:

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201 (8) "Contractor" means a person other than a materialman
202 or laborer who enters into a contract with the owner of real
203 property for improving it, or who takes over from a contractor
204 as so defined the entire remaining work under such contract. The
205 term "contractor'' includes an architect, landscape architect, or
206 engineer who improves real property pursuant to a design-build
207 contract authorized bys. 489.103(16). The term "contractor"
208 also includes a licensed general contractor or building
209 contractor, as those terms are defined ins. 489.105(3) (a) and
210 (b), who provides construction management services, which
211 include responsibility for scheduling and coordination in both
212 preconstruction and construction phases and for the successful,
213 timely, and economical completion of the construction project,
214 or who provides program management services, which include
215 responsibility for schedule control, cost control, and
216 coordination in providing or procuring planning, design, and
217 construction.
218 ( 12) "Final furnishing" means the last date that the
219 lienor furnishes labor, services, or materials. Such date may
220 not be measured by other standards, such as the issuance of a
221 certificate of occupancy or the issuance of a certificate of
222 final completion, and does not include the correction of
223 deficiencies in the lienor's previously performed work or
224 materials supplied. With respect to rental equipment, the term
225 means the date that the rental equipment was last on the j-ee

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22 6 site of the improvement and available for use. With respect to
227 specially fabricated materials, the term means the date that the
228 last portion of the specially fabricated materials is delivered
229 to the site of the improvement, or if any portion of the
230 specially fabricated materials is not delivered to the site of
231 the improvement by no fault of the lienor, the term means 1 year
232 after the date the lienor completes the fabrication, 1 year
233 after the date the lienor receives the last portion of the
234 specially fabricated materials needed to complete the order, or
235 the date the notice of commencement expires, whichever is later.
236 (26) "Real property" means the land that is improved and
237 the improvements thereon, including fixtures, except any such
238 property owned by the state or any county, municipality, school
239 board, or governmental agency, commission, or political
240 subdivision, provided, however, that a private leasehold
241 interest in such government-owned property which is improved and
242 the leasehold improvements shall be considered real property for
243 purposes of this part.
244 Section 4. Section 713.09, Florida Statutes, is amended to
245 read:
246 713.09 Single claim of lien.-A lienor may is required to
247 record only one claim of lien covering his or her entire demand
248 against the real property when the amount demanded is for labor
249 or services or material furnished for more than one improvement
250 under the same direct contract or multiple direct contracts. The

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251 single claim of lien is sufficient even though the improvement
252 is for one or more improvements located on separate lots,
253 parcels, or tracts of land. If materials to be used on one or
254 more improvements on separate lots, parcels, or tracts of land
255 under one direct contract are delivered by a lienor to a place
256 designated by the person with whom the materialman contracted,
257 other than the site of the improvement, the delivery to the
258 place designated is prima facie evidence of delivery to the site
259 of the improvement and incorporation in the improvement. The
260 single claim of lien may be limited to a part of multiple lots,
261 parcels, or tracts of land and their improvements or may cover
262 all of the lots, parcels, or tracts of land and improvements. If
263 ~ In each claim of lien under this section is for multiple
264 direct contracts, the owner under the direct contracts contract
265 must be the same person for all lots, parcels, or tracts of land
266 against which a single claim of lien is recorded.
267 Section 5. Paragraphs (a) and (d) of subsection (1) of
268 section 713.13, Florida Statutes, are amended to read:
269 713.13 Notice of commencement.-
270 (1) (a) Except for an improvement that is exempt under
271 pursuant to s. 713.02(5), an owner or the owner's authorized
272 agent before actually commencing to improve any real property,
273 or recommencing completion of any improvement after default or
274 abandonment, whether or not a project has a payment bond
275 complying withs. 713.23, shall record a notice of commencement

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276 in the clerk's office and forthwith post either a certified copy
277 thereof or a notarized statement that the notice of commencement
278 has been filed for recording along with a copy thereof. The
279 notice of commencement shall contain the following information:
280 1. A description sufficient for identification of the real
281 property to be improved. The description should include the
282 legal description of the property and also should include the
283 street address and tax folio number of the property if available
284 or, if there is no street address available, such additional
285 information as will describe the physical location of the real
286 property to be improved.
287 2. A general description of the improvement.
288 3. The name and address of the owner, the owner's interest
289 in the site of the improvement, and the name and address of the
290 fee simple titleholder, if other than such owner.
291 4. The name and address of the lessee, if the A lessee Wfte
292 contracts for the improvements as ±-5- an owner as defined ins.
293 713.01 under s. 713.01(23) and must be listed as the owner
294 together with a statement that the ownership interest is a
295 leasehold interest.
296 5.4.- The name and address of the contractor.
297 6 . .§.- The name and address of the surety on the payment
298 bond under s. 713.23, if any, and the amount of such bond.
299 7.-fr.- The name and address of any person making a loan for
300 the construction of the improvements.

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301 8.-+-:- The name and address within the state of a person
302 other than himself or herself who may be designated by the owner
303 as the person upon whom notices or other documents may be served
304 under this part; and service upon the person so designated
305 constitutes service upon the owner.
306 (d) A notice of commencement must be in substantially the
307 following form:
308 Permit No ..... Tax Folio No .....
309 NOTICE OF COMMENCEMENT
310 State of ... .
311 County of ... .
312 The undersigned hereby gives notice that improvement will be
313 made to certain real property, and in accordance with Chapter
314 713, Florida Statutes, the following information is provided in
315 this Notice of Commencement.
316 1. Description of property: ... (legal description of the
317 property, and street address if available) ... .
318 2. General description of improvement: .... .
319 3.a. Owner: ... (name and address) ....
320 b. Owner's phone number: .....
321 c. Name and address of fee simple titleholder (if
322 different from Owner listed above): .....
323 4.a. Lessee, if the lessee contracted for the
324 improvements: ... (name and address) ....
325 b. Lessee's phone number: . . . . . mm.er infontwtion or Lessee

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326 inforffiation if the Lessee contracted for the iffiproveffient:
327 a. Naffie and address: .... .
328 b. Interest in property: .... .
329 c. Naffie and address of fee siffiple titleholder (if
330 different froffi Owner listed above): .....
331 5.a.4-:-a-. Contractor: ... (name and address) ....
332 b. Contractor's phone number: .....
333 6 . .§.. Surety (if applicable, a copy of the payment bond is
334 attached) :
335 a. Name and address: .... .
336 b. Phone number: .... .
337 c. Amount of bond: $ •••••
338 7.a.-6--.a-. Lender: ... (name and address) ....
339 b. Lender's phone number: .....
340 8 . .'.7--.- Persons within the State of Florida designated by
341 Owner upon whom notices or other documents may be served as
342 provided in ey Section 713 .13 (1) (a) 8. 713 .13 (1) (a) 7., Florida
343 Statutes:
344 a. Name and address: .....
345 b. Phone numbers of designated persons: .....
346 9.a.-&.--a-.- In addition to himself or herself, Owner
347 designates . . . . . . . . . . . . of . . . . . . . . . . . . to receive a copy of the
348 Lienor' s Notice as provided in Section 713. 13 ( 1) (b) , Florida
349 Statutes.
350 b. Phone number of person or entity designated by

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351 owner: .....
352 10.-9.- Expiration date of notice of commencement (the
353 expiration date will be 1 year after -f-reffl the date of recording
354 unless a different date is specified) .....
355 WARNING TO OWNER: ANY PAYMENTS MADE BY THE OWNER AFTER THE
356 EXPIRATION OF THE NOTICE OF COMMENCEMENT ARE CONSIDERED IMPROPER
357 PAYMENTS UNDER CHAPTER 713, PART I, SECTION 713.13, FLORIDA
358 STATUTES, AND CAN RESULT IN YOUR PAYING TWICE FOR IMPROVEMENTS
359 TO YOUR PROPERTY. A NOTICE OF COMMENCEMENT MUST BE RECORDED AND
360 POSTED ON THE JOB SITE BEFORE THE FIRST INSPECTION. IF YOU
361 INTEND TO OBTAIN FINANCING, CONSULT WITH YOUR LENDER OR AN
362 ATTORNEY BEFORE COMMENCING WORK OR RECORDING YOUR NOTICE OF
3 63 COMMENCEMENT .
364 ... (Signature of Owner or Lessee, or Owner's or Lessee's
365 Authorized Officer/Director/Partner/Manager) ...
366 ... (Signatory's Title/Office) ...
367 The foregoing instrument was acknowledged before me this ... .
368 day of .... , ... (year) ... , by ... (name of person) ... as ... (type
369 of authority, e.g. officer, trustee, attorney in
370 fact) ... for ... (name of party on behalf of whom instrument was
371 executed) ....
372 ... (Signature of Notary Public - State of Florida) ...
373 ... (Print, Type, or Stamp Commissioned Name of Notary Public) ...
374 Personally Known .... OR Produced Identification
375 Type of Identification Produced ........... .

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37 6 Section 6. Paragraphs (b) and (f) of subsection (1) and
377 subsections (3) and (4) of section 713.132, Florida Statutes,
378 are amended to read:
379 713.132 Notice of termination.-
380 (1) An owner may terminate the period of effectiveness of
381 a notice of commencement by executing, swearing to, and
382 recording a notice of termination that contains:
383 (b) The official records' recording office document book
384 and page reference numbers and recording date affixed by the
385 recording office one+ the recorded notice of commencement;
386 (f) A statement that the owner has, before recording the
387 notice of termination, served a copy of the notice of
388 termination on the contractor and on each lienor who has a
389 direct contract with the owner or who has timely served a notice
390 to owner, and a statement that the owner will serve a copy of
391 the notice of termination on each lienor who timely serves a
392 notice to owner after the notice of termination has been
393 recorded. The owner is not required to serve a copy of the
394 notice of termination on any lienor who has executed a waiver
395 and release of lien upon final payment in accordance withs.
396 713.20.
397 (3) An owner may fte-t. record a notice of termination at any
398 time after eJwept after completion of construction, or after
399 construction ceaoeo before completion and all lienors have been
400 paid in full or pro rata in accordance withs. 713.06(4).

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401 lil_ If an owner or a contractor, by fraud or collusion,
402 knowingly makes any fraudulent statement or affidavit in a
403 notice of termination or any accompanying affidavit, the owner
404 and the contractor, or either of them, as the case may be, is
405 liable to any lienor who suffers damages as a result of the
406 filing of the fraudulent notice of termination~T and any such
407 lienor has a right of action for damages occasioned thereby.
408 J2l-f-4+ A notice of termination must be served before
409 recording on each lienor who has a direct contract with the
410 owner and on each licnor who has timely and properly served a
411 notice to owner in accordance with this part before the
412 recording of the notice of termination. A notice of termination
413 must be recorded in the official records of the county in which
414 the project is located. If properly served before recording in
415 accordance with this subsection, the notice of termination
416 terminates the period of effectiveness of the notice of
417 commencement 30 days after the notice of termination is recorded
418 in the official records is effective to terminate the notice of
419 commencement at the later of 30 days after recording of the
420 notice of termination or a later -t-fie date stated in the notice
421 of termination as the date on which the notice of commencement
422 is terminated. However, if a lienor, who began work under the
423 notice of commencement before its termination, lacks a direct
424 contract with the owner, and timely serves his or her notice to
425 owner after the notice of termination has been recorded, the

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42 6 owner must serve a copy of the notice of termination upon such
427 lienor, and the termination of the notice of commencement as to
428 that lienor is effective 30 days after service of the notice of
429 termination if the notice of termination has been served
430 pursuant to paragraph (1) (f) on the contractor and on each
431 lienor who has a direct contract with the owner or who has
432 served a notice to owner.
433 Section 7. Section 713.18, Florida Statutes, is amended to
434 read:
435 713.18 Manner of serving documents notices and other
436 instruments.-
437 ( 1) Service of any document notices, claims of lien,
438 affidavits, assignments, and other instruments permitted or
439 required under this part, s. 255.05, ors. 337.18, or copies
440 thereof when so permitted or required, unless otherwise
441 specifically provided in this part, must be made by one of the
442 following methods:
443 (a) By hand actual delivery to the person to be served; if
444 a partnership, to one of the partners; if a corporation, to an
445 officer, director, managing agent, or business agent; or, if a
446 limited liability company, to a member or manager.
447 (b) By common carrier delivery service or by registered,
448 Global Express Guaranteed, or certified mail to the person to be
449 served, with postage or shipping paid by the sender and with
450 evidence of delivery, which may be in an electronic format.

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451 (c) By posting on the site of the improvement if service
452 as provided by paragraph (a) or paragraph (b) cannot be
453 accomplished.
454 (2) Notwithstanding subsection (1), Service of a notice to
455 owner or a preliminary notice to contractor under s. 255.05, s.
456 337.18, s. 713.06, ors. 713.23 is effective as of the date of
457 mailing if:
458 (a) The notice is mailed by registered, Global Express
459 Guaranteed, or certified mail, with postage prepaid, to the
460 person to be served at any of the addresses set forth in
461 subsection (3);
462 (b) The notice is mailed within 40 days after the date the
463 lienor first furnishes labor, services, or materials; and
464 (c)l. The person who served the notice maintains a
465 registered or certified mail log that shows the registered or
466 certified mail number issued by the United States Postal
467 Service, the name and address of the person served, and the date
468 stamp of the United States Postal Service confirming the date of
469 mailing; or
470 2. The person who served the notice maintains electronic
471 tracking records approved or generated by the United States
472 Postal Service containing the postal tracking number, the name
473 and address of the person served, and verification of the date
474 of receipt by the United States Postal Service.
475 (3) (a) Service of a document under an instrument pursuant

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476 4:-e this section is effective on the date of mailing or shipping
477 the instrument if it:
478 1. Is sent to the last address shown in the notice of
479 commencement or any amendment thereto or, in the absence of a
480 notice of commencement, to the last address shown in the
481 building permit application, or to the last known address of the
482 person to be served; and
483 2. Is returned as being "refused," "moved, not
484 forwardable," or "unclaimed," or is otherwise not delivered or
485 deliverable through no fault of the person serving the document
486 -i-t-effl.
487 (b) If the address shown in the notice of commencement or
488 any amendment to the notice of commencement, or, in the absence
489 of a notice of commencement, in the building permit application,
490 is incomplete for purposes of mailing or delivery, the person
491 serving the document -i-t-effl may complete the address and properly
492 format it according to United States Postal Service addressing
493 standards using information obtained from the property appraiser
494 or another public record without affecting the validity of
495 service under this section.
496 (4) A document notice served by a lienor on one owner or
497 one partner of a partnership owning the real property is deemed
498 notice to all owners and partners.
499 Section 8. Subsections (6) and (8) of section 713.20,
500 Florida Statutes, are amended to read:

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501 713.20 Waiver or release of liens.-
502 (6) A person may not require a lienor to furnish a lien
503 waiver or release of lien that is different from the forms in
504 subsection (4) or subsection (5) in exchange for, or to induce
505 payment of, a progress payment or final payment, unless the
506 lienor has entered into a direct contract that requires the
507 lienor to furnish a waiver or release that is different from the
508 forms in subsection (4) or subsection (5).
509 (8) Any provisions in a lien waiver or lien release that
510 are ±-s- not related to the waiver or release of lien rights as
511 provided in this section are unenforceable, unless the lienor
512 has otherwise agreed to those provisions in the lienor's direct
513 contract substantially similar to the forms in subsections (4)
514 and (§) is enforceable in accordance with the terms of the lien
515 waiver or lien release.
516 Section 9. Paragraph (d) of subsection (1) of section
517 713.23, Florida Statutes, is amended to read:
518 713.23 Payment bond.-
519 ( 1)

520 (d) In addition, a lienor who has not received payment for
521 furnishing his or her labor, services, or materials must, as a
522 condition precedent to recovery under the bond, serve a written
523 notice of nonpayment on -t-e the contractor and a copy of the
524 notice on the surety. The notice must be under oath and served
525 during the progress of the work or thereafter, but may not be

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526 served later than 90 days after the final furnishing of labor,
527 services, or materials by the lienor, or, with respect to rental
528 equipment, later than 90 days after the date the rental
529 equipment was on the job site and available for use. A notice of
530 nonpayment that includes sums for retainage must specify the
531 portion of the amount claimed for retainage. The required notice
532 satisfies this condition precedent with respect to the payment
533 described in the notice of nonpayment, including unpaid finance
534 charges due under the lienor's contract, and with respect to any
535 other payments which become due to the lienor after the date of
536 the notice of nonpayment. The time period for serving a notice
537 of nonpayment is shall be measured from the last day of
538 furnishing labor, services, or materials by the lienor and may
539 not be measured by other standards, such as the issuance of a
540 certificate of occupancy or the issuance of a certificate of
541 substantial completion. The failure of a lienor to receive
542 retainage sums not in excess of 10 percent of the value of
543 labor, services, or materials furnished by the lienor is not
544 considered a nonpayment requiring the service of the notice
545 provided under this paragraph. If the payment bond is not
546 recorded before commencement of construction, the time period
547 for the lienor to serve a notice of nonpayment may at the option
548 of the lienor be calculated from the date specified in this
549 section or the date the lienor is served a copy of the bond.
550 However, the limitation period for commencement of an action on

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551 the payment bond as established in paragraph (e) may not be
552 expanded. The negligent inclusion or omission of any information
553 in the notice of nonpayment that has not prejudiced the
554 contractor or surety does not constitute a default that operates
555 to defeat an otherwise valid bond claim. A lienor who serves a
556 fraudulent notice of nonpayment forfeits his or her rights under
557 the bond. A notice of nonpayment is fraudulent if the lienor has
558 willfully exaggerated the amount unpaid, willfully included a
559 claim for work not performed or materials not furnished for the
560 subject improvement, or prepared the notice with such willful
561 and gross negligence as to amount to a willful exaggeration.
562 However, a minor mistake or error in a notice of nonpayment, or
563 a good faith dispute as to the amount unpaid, does not
564 constitute a willful exaggeration that operates to defeat an
565 otherwise valid claim against the bond. The service of a
566 fraudulent notice of nonpayment is a complete defense to the
567 lienor's claim against the bond. The notice under this paragraph
568 must include the following information, current as of the date
569 of the notice, and must be in substantially the following form:
570 NOTICE OF NONPAYMENT
571 To ... (name of contractor and address)
572 ... (name of surety and address) ...
573 The undersigned lienor notifies you that:
574 1. The lienor has furnished ... (describe labor, services,
575 or materials) ... for the improvement of the real property

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576 identified as ... (property description) .... The corresponding
577 amount unpaid to date is$ .... , of which$ .... is unpaid
578 retainage.
57 9 2. The lienor has been paid to date the amount of$ ....
580 for previously furnishing ... (describe labor, services, or
581 materials) ... for this improvement.
582 3. The lienor expects to furnish ... (describe labor,
583 services, or materials) ... for this improvement in the future
584 (if known), and the corresponding amount expected to become due
585 is $ .... (if known).
586 I declare that I have read the foregoing Notice of Nonpayment
587 and that the facts stated in it are true to the best of my
588 knowledge and belief.
589 DATED on . . . . . . . . . . . . ,
590 ... (signature and address of lienor) ...
591 STATE OF FLORIDA
592 COUNTY OF ....... .
593 The foregoing instrument was sworn to (or affirmed) and
594 subscribed before me this . . . . day of .... , ... (year) ... , by
595 (name of signatory) ....
596 ... (Signature of Notary Public - State of Florida) ...
597 ... (Print, Type, or Stamp Commissioned Name of Notary
598 Public) ...
599 Personally Known ........ OR Produced Identification ....... .
600 Type of Identification Produced . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

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601 Section 10. Subsections (3) and (5) of section 713.235,
602 Florida Statutes, are amended to read:
603 713.235 Waivers of right to claim against payment bond;
604 forms.-
605 (3) A person may not require a claimant to furnish a
606 waiver that is different from the forms in subsections (1) and
607 (2) in exchange for, or to induce payment of, a progress payment
608 or final payment, unless the claimant has entered into a direct
609 contract that requires the claimant to furnish a waiver that is
610 different from the forms in subsections (1) and (2).
611 (5) Any provisions in a waiver that are ±-e not related to
612 the waiver of a claim against the payment bond as provided in
613 this section are unenforceable, unless the claimant has
614 otherwise agreed to those provisions in the claimant's direct
615 contract substantially sifflilar to the forms in this section is
616 enforceable in accordance with its terms.
617 Section 11. Subsection (1) of section 713.24, Florida
618 Statutes, is amended to read:
619 713.24 Transfer of liens to security.-
620 (1) Any lien claimed under this part may be transferred,
621 by any person having an interest in the real property upon which
622 the lien is imposed or the contract under which the lien is
623 claimed, from such real property to other security by doing one
624 of the following either:
625 (a) Depositing in the clerk's office a sum of money~,--e-r-

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62 6 (b) Recording Filing in the clerk's office a bond executed
627 as surety by a surety insurer licensed to do business in this
628 state; or
62 9 (c) Recording in the clerk's office a bond executed as
630 surety by a surety insurer licensed to do business in this
631 state, which was furnished by a subcontractor under whose
632 subcontract the lienor's claim emanates, and which must be
633 recorded and served with a notice of bond in the same manner as
634 a payment bond furnished under s. 713.23(2). For purposes of
635 this paragraph, the subcontract payment bond must have been
636 furnished at the time the subcontractor's work commenced and
637 before the claim of lien was recorded. The subcontract payment
638 bond may not be used to transfer a lien of the contractor or the
639 subcontractor that is the principal on the subcontract payment
640 bond. Any provision in the subcontract payment bond that
641 restricts the classes of persons who are protected by the
642 subcontract payment bond, restricts the venue of any proceeding
643 relating to the subcontract payment bond, limits or expands the
644 effective duration of the subcontract payment bond, or includes
645 conditions precedent to the enforcement of a claim against the
646 subcontract payment bond beyond those provided in this part is
647 unenforceable.T
648
649 Such deposit or bond must either to be in an amount at least
650 equal to the amount demanded in such claim of lien, plus

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651 interest thereon at the legal rate for 3 years, plus $1,000 or
652 35 ~ percent of the amount demanded in the claim of lien,
653 whichever is greater, to apply on any attorney attorney's fees
654 and court costs that may be taxed in any proceeding to enforce
655 said lien. Such deposit or bond shall be conditioned to pay any
656 judgment or decree which may be rendered for the satisfaction of
657 the lien for which such claim of lien was recorded. Upon making
658 such deposit or filing such bond, the clerk shall make and
659 record a certificate showing the transfer of the lien from the
660 real property to the security and shall mail a copy thereof by
661 registered or certified mail to the lienor named in the claim of
662 lien so transferred, at the address stated therein. Upon filing
663 the certificate of transfer, the real property shall thereupon
664 be released from the lien claimed, and such lien shall be
665 transferred to said security. In the absence of allegations of
666 privity between the lienor and the owner, and subject to any
667 order of the court increasing the amount required for the lien
668 transfer deposit or bond, no other judgment or decree to pay
669 money may be entered by the court against the owner. The clerk
670 shall be entitled to a service charge for making and serving the
671 certificate, in the amount of up to $20, from which the clerk
672 shall remit $5 to the Department of Revenue for deposit into the
673 General Revenue Fund. If the transaction involves the transfer
674 of multiple liens, an additional charge of up to $10 for each
675 additional lien shall be charged, from which the clerk shall

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hb0283-02-c2
F L O R D A H O U S E 0 F R E P R E S E N T A T I V E S

CS/CS/H B 283 2020

676 remit $2.50 to the Department of Revenue for deposit into the
677 General Revenue Fund. For recording the certificate and
678 approving the bond, the clerk shall receive her or his usual
679 statutory service charges as prescribed ins. 28.24. Any number
680 of liens may be transferred to one such security.
681 Section 12. Section 713.29, Florida Statutes, is amended
682 to read:
683 713.29 Attorney Attorney's fees.-In any action brought to
684 enforce a lien, including a lien that has been transferred to
685 security, or to enforce a claim against a bond under this part,
686 the prevailing party is entitled to recover a reasonable fee for
687 the services of her or his attorney for trial and appeal or for
688 arbitration, in an amount to be determined by the court, which
689 fee must be taxed as part of the prevailing party's costs, as
690 allowed in equitable actions.
691 Section 13. This act shall take effect July 1, 2020.

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hb0283-02-c2
COMMERCE COMMITTEE

HB 283 by Rep. Toledo
Liens and Bonds

AMENDMENT SUMMARY
February 13, 2020

Amendment 1 by Rep. Toledo (Strike-all amendment):
The strike-all amendment differs from the original bill in the following ways:
• Clarifies that construction lien and bond documents may be notarized by online
notarization in addition to in person notarization.
• Clarifies that provisions governing the waivers of the right to claim against a bond for
public and private contracts also apply to DOT contracts.
• Removes the bill's provision providing a final furnishing date for specifically fabricated
materials.
• Removes from current law the requirement that a contractor, subcontractor, laborer, or
material supplier post construction lien or bond related notices and documents on the
construction jobsite if they cannot serve the document by hand delivery or mail.
• Clarifies that in order to be effective on the date of mailing, construction lien and bond
documents served to a person by mail must be sent to:
o The person's address listed on the notice of commencement;
o The person's address listed on the building permit application if there is not a
notice of commencement; or
o The person's last known address if there is not a notice of commencement or
building permit application.
• Removes the bill's provision that allows a lien to be transferred to a payment bond
obtained by a subcontractor if the person who filed the lien is working for the
subcontractor.
• Removes the bill's provision that increases the amount needed to obtain a security in
order to transfer a lien to the security.
COMMITTEE/SUBCOMMITTEE AMENDMENT
Bill No. CS/CS/HB 283 (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 Toledo offered the following:
3

4 Amendment (with title amendment)
5 Remove everything after the enacting clause and insert:
6 Section 1. Subsection (12) is added to 255.05, Florida
7 Statutes, and paragraphs (a), (d), and (f) of subsection (2) of
8 that section, are amended to read:
9 255.05 Bond of contractor constructing public buildings;
10 form; action by claimants.-
11 (2) (a)l. If a claimant is no longer furnishing labor,
12 services, or materials on a project, a contractor or the
13 contractor's agent or attorney may elect to shorten the time
14 within which an action to enforce any claim against a payment
15 bond must be commenced by recording in the clerk's office a
16 notice in substantially the following form:
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COMMITTEE/SUBCOMMITTEE AMENDMENT
Bill No. CS/CS/HB 283 (2020)
Amendment No. 1.

17 NOTICE OF CONTEST OF CLAIM
18 AGAINST PAYMENT BOND

19 To: ... (Name and address of claimant) ...

20 You are notified that the undersigned contests your notice
21 of nonpayment, dated . . . . . . . . . . . . , ........ , and served on the
22 undersigned on . . . . . . . . . . . . , ........ , and that the time within
23 which you may file suit to enforce your claim is limited to 60
24 days after the date of service of this notice.

25 DATED on . . . . . . . . . . . . ,

26 Signed: ... (Contractor or Attorney) ...

27 The claim of a claimant upon whom such notice is served and who
28 fails to institute a suit to enforce his or her claim against
29 the payment bond within 60 days after service of such notice is
30 extinguished automatically. The contractor or the contractor's
31 attorney shall serve a copy of the notice of contest on t-e the
32 claimant at the address shown in the notice of nonpayment or
33 most recent amendment thereto and shall certify to such service
34 on the face of the notice and record the notice.
35 2. A claimant, except a laborer, who is not in privity
36 with the contractor shall, before commencing or not later than
37 45 days after commencing to furnish labor, services, or
38 materials for the prosecution of the work, serve the contractor

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COMMITTEE/SUBCOMMITTEE AMENDMENT
Bill No. CS/CS/HB 283 (2020)
Amendment No. 1.

39 with a written notice that he or she intends to look to the bond
40 for protection. A claimant who is not in privity with the
41 contractor and who has not received payment for furnishing his
42 or her labor, services, or materials shall serve a written
43 notice of nonpayment on the contractor and a copy of the notice
44 on the surety. The notice of nonpayment shall be under oath and
45 served during the progress of the work or thereafter but may not
46 be served earlier than 45 days after the first furnishing of
47 labor, services, or materials by the claimant or later than 90
48 days after the final furnishing of the labor, services, or
49 materials by the claimant or, with respect to rental equipment,
50 later than 90 days after the date that the rental equipment was
51 last on the job site available for use. Any notice of nonpayment
52 served by a claimant who is not in privity with the contractor
53 which includes sums for retainage must specify the portion of
54 the amount claimed for retainage. An action for the labor,
55 services, or materials may not be instituted against the
56 contractor or the surety unless the notice to the contractor and
57 notice of nonpayment have been served, if required by this
58 section. Notices required or permitted under this section must
59 be served in accordance withs. 713.18. A claimant may not waive
60 in advance his or her right to bring an action under the bond
61 against the surety. In any action brought to enforce a claim
62 against a payment bond under this section, the prevailing party
63 is entitled to recover a reasonable fee for the services of his
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COMMITTEE/SUBCOMMITTEE AMENDMENT
Bill No. CS/CS/HB 283 (2020)
Amendment No. 1.

64 or her attorney for trial and appeal or for arbitration, in an
65 amount to be determined by the court, which fee must be taxed as
66 part of the prevailing party's costs, as allowed in equitable
67 actions. The time periods for service of a notice of nonpayment
68 or for bringing an action against a contractor or a surety are
69 shall be measured from the last day of furnishing labor,
70 services, or materials by the claimant and may not be measured
71 by other standards, such as the issuance of a certificate of
72 occupancy or the issuance of a certificate of substantial
73 completion. The negligent inclusion or omission of any
74 information in the notice of nonpayment that has not prejudiced
75 the contractor or surety does not constitute a default that
76 operates to defeat an otherwise valid bond claim. A claimant who
77 serves a fraudulent notice of nonpayment forfeits his or her
78 rights under the bond. A notice of nonpayment is fraudulent if
79 the claimant has willfully exaggerated the amount unpaid,
80 willfully included a claim for work not performed or materials
81 not furnished for the subject improvement, or prepared the
82 notice with such willful and gross negligence as to amount to a
83 willful exaggeration. However, a minor mistake or error in a
84 notice of nonpayment, or a good faith dispute as to the amount
85 unpaid, does not constitute a willful exaggeration that operates
86 to defeat an otherwise valid claim against the bond. The service
87 of a fraudulent notice of nonpayment is a complete defense to
88 the claimant's claim against the bond. The notice of nonpayment

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COMMITTEE/SUBCOMMITTEE AMENDMENT
Bill No. CS/CS/HB 283 (2020)
Amendment No. 1.

89 under this subparagraph must include the following information,
90 current as of the date of the notice, and must be in
91 substantially the following form:

92 NOTICE OF NONPAYMENT

93 To: ... (name of contractor and address) ...

94 ... (name of surety and address) ...

95 The undersigned claimant notifies you that:
96 1. Claimant has furnished ... (describe labor, services, or
97 materials) ... for the improvement of the real property
98 identified as ... (property description) .... The corresponding
99 amount unpaid to date is$ .... , of which$ .... is unpaid
100 retainage.
101 2. Claimant has been paid to date the amount of$ .... for
102 previously furnishing ... (describe labor, services, or
103 materials) ... for this improvement.
104 3. Claimant expects to furnish ... (describe labor,
105 services, or materials) ... for this improvement in the future
106 (if known), and the corresponding amount expected to become due
107 is $. . . . ( if known) .

108 I declare that I have read the foregoing Notice of Nonpayment
109 and that the facts stated in it are true to the best of my
110 knowledge and belief.

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COMMITTEE/SUBCOMMITTEE AMENDMENT
Bill No. CS/CS/HB 283 (2020)
Amendment No. 1.

111 DATED on ............ ,

112 ... (signature and address of claimant) ...

113 STATE OF FLORIDA
114 COUNTY OF ....... .

115 The foregoing instrument was sworn to (or affirmed) and
116 subscribed before me by means of D physical presence or D online
117 notarization, this .... day of .... , ... (year) ... , by ... (name of
118 signatory) ....
119 ... (Signature of Notary Public - State of Florida) ...
120 ... (Print, Type, or Stamp Commissioned Name of Notary
121 Public) .. .

122 Personally Known ........ OR Produced Identification ....... .

123 Type of Identification Produced . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

124 (d) A person may not require a claimant to furnish a
125 waiver that is different from the forms in paragraphs (b) and
126 (c) in exchange for, or to induce payment of, a progress payment
127 or final payment, unless the claimant has entered into a direct
128 contract that requires the claimant to furnish a waiver that is
129 different from the forms in paragraphs (b) and (c).
130 (f) Any provisions in a waiver that are 4:-s- not related to
131 the waiver of right to claim against a payment bond as provided

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COMMITTEE/SUBCOMMITTEE AMENDMENT
Bill No. CS/CS/HB 283 (2020)
Amendment No. 1.

132 in this subsection are unenforceable, unless the claimant has
133 otherwise agreed to those provisions in the claimant's direct
134 contract substantially similar to the forms in this subsection
135 is enforceable in accordance with its terms.
136 (12) Unless otherwise provided in this section, service of
137 any document must be served in accordance withs. 713.18.
138 Section 2. Subsection (6) is added to 337.18, Florida
139 Statutes, and paragraph (c) of subsection (1) of that section,
140 is amended to read:
141 337.18 Surety bonds for construction or maintenance
142 contracts; requirement with respect to contract award; bond
143 requirements; defaults; damage assessments.-
144 ( 1)

145 (c) A claimant, except a laborer, who is not in privity
14 6 with the contractor shall, before commencing or not later than
147 90 days after commencing to furnish labor, materials, or
148 supplies for the prosecution of the work, furnish the contractor
149 with a notice that he or she intends to look to the bond for
150 protection. A claimant who is not in privity with the contractor
151 and who has not received payment for his or her labor,
152 materials, or supplies shall deliver to the contractor and to
153 the surety written notice of the performance of the labor or
154 delivery of the materials or supplies and of the nonpayment. The
155 notice of nonpayment may be served at any time during the
156 progress of the work or thereafter but not before 45 days after
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COMMITTEE/SUBCOMMITTEE AMENDMENT
Bill No. CS/CS/HB 283 (2020)
Amendment No. 1.

157 the first furnishing of labor, services, or materials, and not
158 later than 90 days after the final furnishing of the labor,
159 services, or materials by the claimant or, with respect to
160 rental equipment, not later than 90 days after the date that the
161 rental equipment was last on the job site available for use. An
162 action by a claimant, except a laborer, who is not in privity
163 with the contractor for the labor, materials, or supplies may
164 not be instituted against the contractor or the surety unless
165 both notices have been given. Notices required or permitted
166 under this section may be served in any manner provided ins.
167 713.18, and provisions for the waiver of right to claim against
168 a payment bond contained ins. 713.235 apply to all contracts
169 under this section.
170 (6) Unless otherwise provided in this section, service of
171 any document must be served in accordance withs. 713.18.
172 Section 3. Subsections (8) and (26) of section 713.01,
173 Florida Statutes, are amended to read:
174 713.01 Definitions.-As used in this part, the term:
175 (8) "Contractor" means a person other than a materialman
176 or laborer who enters into a contract with the owner of real
177 property for improving it, or who takes over from a contractor
178 as so defined the entire remaining work under such contract. The
179 term "contractor" includes an architect, landscape architect, or
180 engineer who improves real property pursuant to a design-build
181 contract authorized bys. 489.103(16). The term "contractor"
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COMMITTEE/SUBCOMMITTEE AMENDMENT
Bill No. CS/CS/HB 283 (2020)
Amendment No. 1.

182 also includes a licensed general contractor or building
183 contractor, as those terms are defined ins. 489.105(3) (a) and
184 (b), who provides construction management services, which
185 include responsibility for scheduling and coordination in both
186 preconstruction and construction phases and for the successful,
187 timely, and economical completion of the construction project,
188 or who provides program management services, which include
189 responsibility for schedule control, cost control, and
190 coordination in providing or procuring planning, design, and
191 construction.
192 (26) "Real property" means the land that is improved and
193 the improvements thereon, including fixtures, except any such
194 property owned by the state or any county, municipality, school
195 board, or governmental agency, commission, or political
196 subdivision. The term "real property" includes a private
197 leasehold interest that is improved, and the improvements
198 thereto, on land that is owned by the state or any county,
199 municipality, school board, or governmental agency, commission,
200 or political subdivision.
201 Section 4. Section 713.09, Florida Statutes, is amended to
202 read:
203 713.09 Single claim of lien.-A lienor may is required to
204 record only one claim of lien covering his or her entire demand
205 against the real property when the amount demanded is for labor
206 or services or material furnished for more than one improvement
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COMMITTEE/SUBCOMMITTEE AMENDMENT
Bill No. CS/CS/HB 283 (2020)
Amendment No. 1.

207 under the same direct contract or multiple direct contracts. The
208 single claim of lien is sufficient even though the improvement
209 is for one or more improvements located on separate lots,
210 parcels, or tracts of land. If materials to be used on one or
211 more improvements on separate lots, parcels, or tracts of land
212 under one direct contract are delivered by a lienor to a place
213 designated by the person with whom the materialman contracted,
214 other than the site of the improvement, the delivery to the
215 place designated is prima facie evidence of delivery to the site
216 of the improvement and incorporation in the improvement. The
217 single claim of lien may be limited to a part of multiple lots,
218 parcels, or tracts of land and their improvements or may cover
219 all of the lots, parcels, or tracts of land and improvements. If
220 ~ In each claim of lien under this section is for multiple
221 direct contracts, the owner under the direct contracts contract
222 must be the same person for all lots, parcels, or tracts of land
223 against which a single claim of lien is recorded.
224 Section 5. Subsection (4) is added to 713.10, Florida
225 Statutes, and paragraph (b) of subsection (2) of that section,
226 is amended to read:
227 713.10 Extent of liens.-
228 (2)

229 (b) The interest of the lessor is not subject to liens for
230 improvements made by the lessee when:

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COMMITTEE/SUBCOMMITTEE AMENDMENT
Bill No. CS/CS/HB 283 (2020)
Amendment No. 1.

231 1. The lease, or a short form or a memorandum of the lease
232 that contains the specific language in the lease prohibiting
233 such liability, is recorded in the official records of the
234 county where the premises are located before the recording of a
235 notice of commencement for improvements to the premises and the
236 terms of the lease expressly prohibit such liability; or
237 2. The terms of the lease expressly prohibit such
238 liability, and a notice advising that leases for the rental of
239 premises on a parcel of land prohibit such liability has been
240 recorded in the official records of the county in which the
241 parcel of land is located before the recording of a notice of
242 commencement for improvements to the premises, and the notice
243 includes the following:
244 a. The name of the lessor.
245 b. The legal description of the parcel of land to which
246 the notice applies.
247 c. The specific language contained in the various leases
248 prohibiting such liability.
249 d. A statement that all or a majority of the leases
250 entered into for premises on the parcel of land expressly
251 prohibit such liability.
252 3. The lessee is a mobile home owner who is leasing a
253 mobile home lot in a mobile home park from the lessor.
254

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COMMITTEE/SUBCOMMITTEE AMENDMENT
Bill No. CS/CS/HB 283 (2020)
Amendment No. 1.

255 A notice that is consistent with subparagraph 2. effectively
256 prohibits liens for improvements made by a lessee even if other
257 leases for premises on the parcel do not expressly prohibit
258 liens or if provisions of each lease restricting the application
259 of liens are not identical.
260 (4) The interest of the lessor is not subject to liens for
261 improvements made by the lessee when the lessee is a mobile home
262 owner who is leasing a mobile home lot in a mobile home park
263 from the lessor.
264 Section 6. Paragraphs (a) and (d) of subsection (1) of
265 section 713.13, Florida Statutes, are amended to read:
266 713.13 Notice of commencement.-
267 (1) (a) Except for an improvement that is exempt under
268 pursuant to s. 713.02(5), an owner or the owner's authorized
269 agent before actually commencing to improve any real property,
270 or recommencing completion of any improvement after default or
271 abandonment, whether or not a project has a payment bond
272 complying withs. 713.23, shall record a notice of commencement
273 in the clerk's office and forthwith post either a certified copy
274 thereof or a notarized statement that the notice of commencement
275 has been filed for recording along with a copy thereof. The
276 notice of commencement shall contain the following information:
277 1. A description sufficient for identification of the real
278 property to be improved. The description should include the
279 legal description of the property and also should include the
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COMMITTEE/SUBCOMMITTEE AMENDMENT
Bill No. CS/CS/HB 283 (2020)
Amendment No. 1.

280 street address and tax folio number of the property if available
281 or, if there is no street address available, such additional
282 information as will describe the physical location of the real
283 property to be improved.
284 2. A general description of the improvement.
285 3. The name and address of the owner, the owner's interest
286 in the site of the improvement, and the name and address of the
287 fee simple titleholder, if other than such owner.
288 4. The name and address of the lessee, if the A lessee Wfte
289 contracts for the improvements as ±-s- an owner as defined ins.
290 713.01 under s. 713.01(23) and must be listed as the owner
291 together with a statement that the ownership interest is a
292 leasehold interest.
293 5.4-. The name and address of the contractor.
294 6 . ..§... The name and address of the surety on the payment
295 bond under s. 713.23, if any, and the amount of such bond.
296 7.-6--. The name and address of any person making a loan for
297 the construction of the improvements.
298 8 . .'.7--.-- The name and address within the state of a person
299 other than himself or herself who may be designated by the owner
300 as the person upon whom notices or other documents may be served
301 under this part; and service upon the person so designated
302 constitutes service upon the owner.
303 (d} A notice of commencement must be in substantially the
304 following form:
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COMMITTEE/SUBCOMMITTEE AMENDMENT
Bill No. CS/CS/HB 283 (2020)
Amendment No. 1.

305 Permit No ..... Tax Folio No .....
306 NOTICE OF COMMENCEMENT
307 State of ... .
308 County of ... .
309 The undersigned hereby gives notice that improvement will be
310 made to certain real property, and in accordance with Chapter
311 713, Florida Statutes, the following information is provided in
312 this Notice of Commencement.
313 1. Description of property: ... (legal description of the
314 property, and street address if available) ... .
315 2. General description of improvement: .... .
316 3.a. Owner: ... (name and address) ....
317 b. Owner's phone number: .....
318 c. Name and address of fee simple titleholder (if
319 different from Owner listed above): .....
320 4.a. Lessee, if the lessee contracted for the
321 improvements: ... (name and address) ... .
322 b. Lessee's phone number: ..... owner information or Lessee
323 information if the Lessee contracted for the improvement:
324 a. Name and address: .... .
325 b. Interest in property: .... .
326 c. Name and address of fee simple titleholder (if
327 different from Owner listed above): .....
328 5.a.4-.a-. Contractor: ... (name and address) ....
329 b. Contractor's phone number: .....
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COMMITTEE/SUBCOMMITTEE AMENDMENT
Bill No. CS/CS/HB 283 (2020)
Amendment No. 1.

330 6 . .§-. Surety (if applicable, a copy of the payment bond is
331 attached):
332 a. Name and address: .... .
333 b. Phone number: .... .
334 c. Amount of bond: $ •••••
335 7.a.-6--.--a.-- Lender: ... (name and address) ....
336 b. Lender's phone number: .....
337 8.+. Persons within the State of Florida designated by
338 Owner upon whom notices or other documents may be served as
339 provided in by Section 713.13(1) (a)8. 713.13(1) (a)7., Florida
340 Statutes:
341 a. Name and address: .....
342 b. Phone numbers of designated persons: .....
343 9.a.-8--.--a-. In addition to himself or herself, Owner
344 designates ............ of ............ to receive a copy of the
345 Lienor' s Notice as provided in Section 713.13 (1) (b), Florida
34 6 Statutes.
347 b. Phone number of person or entity designated by
348 owner: .....
349 10.-9--:- Expiration date of notice of commencement (the
350 expiration date will be 1 year after .f-rem the date of recording
351 unless a different date is specified) .....
352 WARNING TO OWNER: ANY PAYMENTS MADE BY THE OWNER AFTER THE
353 EXPIRATION OF THE NOTICE OF COMMENCEMENT ARE CONSIDERED IMPROPER
354 PAYMENTS UNDER CHAPTER 713, PART I, SECTION 713.13, FLORIDA
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COMMITTEE/SUBCOMMITTEE AMENDMENT
Bill No. CS/CS/HB 283 (2020)
Amendment No. 1.

355 STATUTES, AND CAN RESULT IN YOUR PAYING TWICE FOR IMPROVEMENTS
356 TO YOUR PROPERTY. A NOTICE OF COMMENCEMENT MUST BE RECORDED AND
357 POSTED ON THE JOB SITE BEFORE THE FIRST INSPECTION. IF YOU
358 INTEND TO OBTAIN FINANCING, CONSULT WITH YOUR LENDER OR AN
359 ATTORNEY BEFORE COMMENCING WORK OR RECORDING YOUR NOTICE OF
360 COMMENCEMENT.
361 ... (Signature of Owner or Lessee, or Owner's or Lessee's
362 Authorized Officer/Director/Partner/Manager) ...
363 ... (Signatory's Title/Office) ...
364
365 STATE OF FLORIDA
366
367 COUNTY OF ........... .
368
369 The foregoing instrument was acknowledged before me by means of
370 D physical presence or D online notarization, this .... day of
371 .... , ... (year) ... , by ... (name of person) ... as ... (type of
372 authority, e.g. officer, trustee, attorney in fact) ...
373 for ... (name of party on behalf of whom instrument was
374 executed) ....
375 . . . (Signature of Notary Public - State of Florida) ...
376 ... (Print, Type, or Stamp Commissioned Name of Notary Public) ...
377 Personally Known .... OR Produced Identification
378 Type of Identification Produced ........... .

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COMMITTEE/SUBCOMMITTEE AMENDMENT
Bill No. CS/CS/HB 283 (2020)
Amendment No. 1.

379 Section 7. Paragraphs (b) and (f) of subsection (1) and
380 subsections (3) and (4) of section 713.132, Florida Statutes,
381 are amended to read:
382 713.132 Notice of termination.-
383 (1) An owner may terminate the period of effectiveness of
384 a notice of commencement by executing, swearing to, and
385 recording a notice of termination that contains:
386 (b) The official records' recording office document book
387 and page reference numbers and recording date affixed by the
388 recording office on e-f. the recorded notice of commencement;
389 (f) A statement that the owner has, before recording the
390 notice of termination, served a copy of the notice of
391 termination on the contractor and on each lienor who has a
392 direct contract with the owner or who has timely served a notice
393 to owner, and a statement that the owner will serve a copy of
394 the notice of termination on each lienor who timely serves a
395 notice to owner after the notice of termination has been
396 recorded. The owner is not required to serve a copy of the
397 notice of termination on any lienor who has executed a waiver
398 and release of lien upon final payment in accordance withs.
399 713.20.
400 (3) An owner may ftO-t. record a notice of termination at any
401 time after except after completion of construction, or after
402 construction ceases before completion and all lienors have been
403 paid in full or pro rata in accordance withs. 713.06(4).

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COMMITTEE/SUBCOMMITTEE AMENDMENT
Bill No. CS/CS/HB 283 (2020)
Amendment No. 1.

404 (4) If an owner or a contractor, by fraud or collusion,
405 knowingly makes any fraudulent statement or affidavit in a
406 notice of termination or any accompanying affidavit, the owner
407 and the contractor, or either of them, as the case may be, is
408 liable to any lienor who suffers damages as a result of the
409 filing of the fraudulent notice of termination~T and any such
410 lienor has a right of action for damages occasioned thereby.
411 J..21+4+ A notice of termination must be served before
412 recording on each lienor who has a direct contract with the
413 owner and on each lienor who has timely and properly served a
414 notice to owner in accordance with this part before the
415 recording of the notice of termination. A notice of termination
416 must be recorded in the official records of the county in which
417 the project is located. If properly served before recording in
418 accordance with this subsection, the notice of termination
419 terminates the period of effectiveness of the notice of
420 commencement 30 days after the notice of termination is recorded
421 in the official records is effective to terminate the notice of
422 commencement at the later of 30 days after recording of the
423 notice of termination or a later -t-h-e date stated in the notice
424 of termination as the date on which the notice of commencement
425 is terminated. However, if a lienor, who began work under the
426 notice of commencement before its termination, lacks a direct
427 contract with the owner, and timely serves his or her notice to
428 owner after the notice of termination has been recorded, the
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429 owner must serve a copy of the notice of termination upon such
430 lienor, and the termination of the notice of commencement as to
431 that lienor is effective 30 days after service of the notice of
432 termination if the notice of termination has been served
433 pursuant to paragraph (1) (f) on the contractor and on each
434 lienor who has a direct contract with the owner or who has
435 served a notice to owner.
436 Section 8. Section 713.18, Florida Statutes, is amended to
437 read:
438 713.18 Manner of serving documents notices and other
439 instruments.-
440 (1) Unless otherwise specifically provided by law, service
441 of any document notices, claims of lien, affidavits,
442 assignments, and other instruments permitted or required under
443 this part, s. 255.05, ors. 337.18, or copies thereof when so
444 permitted or required, unless otherwise specifically provided in
445 this part, must be made by one of the following methods:
446 (a) By hand actual delivery to the person to be served; if
447 a partnership, to one of the partners; if a corporation, to an
448 officer, director, managing agent, or business agent; or, if a
449 limited liability company, to a member or manager.
450 (b) By common carrier delivery service or by registered,
451 Global Express Guaranteed, or certified mail to the person to be
452 served, with postage or shipping paid by the sender and with
453 evidence of delivery, which may be in an electronic format.

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454 (c) By posting on the site of the improvement if service
455 as provided by paragraph (a) or paragraph (b) cannot be
456 accomplished.
457 (2) Notwithstanding subsection (1), Service of a notice to
458 owner or a preliminary notice to contractor under this part, s.
459 255.05, ors. 337.18, ors. 713.23 is effective as of the date
460 of mailing and the requirements for service under this section
461 have been satisfied if:
462 (a) The notice is mailed by registered, Global Express
463 Guaranteed, or certified mail, with postage prepaid, to the
464 person to be served, and addressed as prescribed at any of the
465 addresses set forth in subsection (3);
466 (b) The notice is mailed within 40 days after the date the
467 lienor first furnishes labor, services, or materials; and
468 (c)l. The person who served the notice maintains a
469 registered or certified mail log that shows the registered or
470 certified mail number issued by the United States Postal
471 Service, the name and address of the person served, and the date
472 stamp of the United States Postal Service confirming the date of
473 mailing; or
474 2. The person who served the notice maintains electronic
475 tracking records approved or generated by the United States
476 Postal Service containing the postal tracking number, the name
477 and address of the person served, and verification of the date
478 of receipt by the United States Postal Service.
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479 ( 3) (a) Notwithstanding subsection ( 1) , service of a
480 document under an instrument pursuant to this section is
481 effective on the date of mailing or shipping and the
482 requirements for service under this section have been satisfied
483 the instrument if it:
484 1. Is sent using one of the methods provided in paragraph
485 (1) (b) to the last address shown in the notice of commencement
486 or any amendment thereto or, in the absence of a notice of
487 commencement, to the last address shown in the building permit
488 application, or, in the absence of a notice of commencement and
489 building permit application, to the last known address of the
490 person to be served, unless otherwise specifically provided in
491 this part, s. 255.05, ors. 337.18; and
492 2. Is returned as being "refused," "moved, not
493 forwardable," or "unclaimed," or is otherwise not delivered or
494 deliverable through no fault of the person serving the document
495 -i-t-effl.
496 (b) If the address shown in the notice of commencement or
4 97 any amendment thereto to the notice of commencement, or, in the
498 absence of a notice of commencement, in the building permit
499 application, is incomplete for purposes of mailing or delivery,
500 the person serving the document -i-t-effl may complete the address
501 and properly format it according to United States Postal Service
502 addressing standards using information obtained from the
503 property appraiser or another public record without affecting
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Amendment No. 1.

504 the validity of service under this section.
505 (4) A document notice served by a lienor on one owner or
506 one partner of a partnership owning the real property is deemed
507 serve notice to all owners and partners.
508 Section 9. Subsections (6) and (8) of section 713.20,
509 Florida Statutes, are amended to read:
510 713.20 Waiver or release of liens.-
511 (6) A person may not require a lienor to furnish a lien
512 waiver or release of lien that is different from the forms in
513 subsection (4) or subsection (5) in exchange for, or to induce
514 payment of, a progress payment or final payment, unless the
515 lienor has entered into a direct contract that requires the
516 lienor to furnish a waiver or release that is different from the
517 forms in subsection (4) or subsection (5).
518 (8) Any provisions in a lien waiver or lien release that
519 are :i-s- not related to the waiver or release of lien rights as
520 provided in this section are unenforceable, unless the lienor
521 has otherwise agreed to those provisions in the lienor's direct
522 contract substantially similar to the forms in subsections (4)
523 and (5) is enforceable in accordance with the terms of the lien
524 waiver or lien release.
525 Section 10. Paragraph (d) of subsection (1) of section
526 713.23, Florida Statutes, is amended to read:
527 713.23 Payment bond.-
528 ( 1)

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COMMITTEE/SUBCOMMITTEE AMENDMENT
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Amendment No. 1.

529 (d) In addition, a lienor who has not received payment for
530 furnishing his or her labor, services, or materials must, as a
531 condition precedent to recovery under the bond, serve a written
532 notice of nonpayment on 4:-e- the contractor and a copy of the
533 notice on the surety. The notice must be under oath and served
534 during the progress of the work or thereafter, but may not be
535 served later than 90 days after the final furnishing of labor,
536 services, or materials by the lienor, or, with respect to rental
537 equipment, later than 90 days after the date the rental
538 equipment was on the job site and available for use. A notice of
539 nonpayment that includes sums for retainage must specify the
540 portion of the amount claimed for retainage. The required notice
541 satisfies this condition precedent with respect to the payment
542 described in the notice of nonpayment, including unpaid finance
543 charges due under the lienor's contract, and with respect to any
544 other payments which become due to the lienor after the date of
545 the notice of nonpayment. The time period for serving a notice
546 of nonpayment is shall be measured from the last day of
547 furnishing labor, services, or materials by the lienor and may
548 not be measured by other standards, such as the issuance of a
549 certificate of occupancy or the issuance of a certificate of
550 substantial completion. The failure of a lienor to receive
551 retainage sums not in excess of 10 percent of the value of
552 labor, services, or materials furnished by the lienor is not
553 considered a nonpayment requiring the service of the notice
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Amendment No. 1.

554 provided under this paragraph. If the payment bond is not
555 recorded before commencement of construction, the time period
556 for the lienor to serve a notice of nonpayment may at the option
557 of the lienor be calculated from the date specified in this
558 section or the date the lienor is served a copy of the bond.
559 However, the limitation period for commencement of an action on
560 the payment bond as established in paragraph (e) may not be
561 expanded. The negligent inclusion or omission of any information
562 in the notice of nonpayment that has not prejudiced the
563 contractor or surety does not constitute a default that operates
564 to defeat an otherwise valid bond claim. A lienor who serves a
565 fraudulent notice of nonpayment forfeits his or her rights under
566 the bond. A notice of nonpayment is fraudulent if the lienor has
567 willfully exaggerated the amount unpaid, willfully included a
568 claim for work not performed or materials not furnished for the
569 subject improvement, or prepared the notice with such willful
570 and gross negligence as to amount to a willful exaggeration.
571 However, a minor mistake or error in a notice of nonpayment, or
572 a good faith dispute as to the amount unpaid, does not
573 constitute a willful exaggeration that operates to defeat an
574 otherwise valid claim against the bond. The service of a
575 fraudulent notice of nonpayment is a complete defense to the
576 lienor's claim against the bond. The notice under this paragraph
577 must include the following information, current as of the date
578 of the notice, and must be in substantially the following form:

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COMMITTEE/SUBCOMMITTEE AMENDMENT
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Amendment No. 1.

579 NOTICE OF NONPAYMENT
580 To ... (name of contractor and address) ...
581 .. . (name of surety and address) ...
582 The undersigned lienor notifies you that:
583 1. The lienor has furnished ... (describe labor, services,
584 or materials) ... for the improvement of the real property
585 identified as ... (property description) .... The corresponding
586 amount unpaid to date is$ .... , of which$ .... is unpaid
587 retainage.
588 2. The lienor has been paid to date the amount of$ ....
589 for previously furnishing ... (describe labor, services, or
590 materials) ... for this improvement.
591 3. The lienor expects to furnish ... (describe labor,
592 services, or materials) ... for this improvement in the future
593 (if known), and the corresponding amount expected to become due
594 is $ .... (if known).
595 I declare that I have read the foregoing Notice of Nonpayment
596 and that the facts stated in it are true to the best of my
597 knowledge and belief.
598 DATED on ............ ,
599 ... (signature and address of lienor) ...
600 STATE OF FLORIDA
601 COUNTY OF ....... .
602 The foregoing instrument was sworn to (or affirmed) and
603 subscribed before me by means of D physical presence or D online
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COMMITTEE/SUBCOMMITTEE AMENDMENT
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Amendment No. 1.

604 notarization, this .... day of .... , ... (year) ... , by ... (name
605 of signatory) ....
606 (Signature of Notary Public - State of Florida) ...
607 (Print, Type, or Stamp Commissioned Name of Notary
608 Public) ...
609 Personally Known ........ OR Produced Identification ....... .
610 Type of Identification Produced
611 Section 11. Subsections (3) and (5) of section 713.235,
612 Florida Statutes, are amended to read: 713.235 Waivers of
613 right to claim against payment bond; forms.-
614 (3) A person may not require a claimant to furnish a
615 waiver that is different from the forms in subsections (1) and
616 (2) in exchange for, or to induce payment of, a progress payment
617 or final payment, unless the claimant has entered into a direct
618 contract that requires the claimant to furnish a waiver that is
619 different from the forms in subsections (1) and (2).
620 (5) Any provisions in a waiver that are ±-5- not related to
621 the waiver of the right to claim against the payment bond as
622 provided in this section are unenforceable, unless the claimant
623 has otherwise agreed to those provisions in the claimant's
624 direct contract substantially similar to the forms in this
625 section is enforceable in accordance with its terms.
626 Section 12. Section 713.29, Florida Statutes, is amended to
627 read:
628 713.29 Attorney ~ttorney's fees.-In any action brought to

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COMMITTEE/SUBCOMMITTEE AMENDMENT
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Amendment No. 1.

629 enforce a lien, including a lien that has been transferred to
630 security, or to enforce a claim against a bond under this part,
631 the prevailing party is entitled to recover a reasonable fee for
632 the services of her or his attorney for trial and appeal or for
633 arbitration, in an amount to be determined by the court, which
634 fee must be taxed as part of the prevailing party's costs, as
635 allowed in equitable actions.
636 Section 13. This act shall take effect July 1, 2020.
637
638 T I T L E A ME N D ME N T
639 Remove everything before the enacting clause and insert:
640 An act relating to liens and bonds; amending s.
641 255.05, F.S.; requiring that a copy of a notice of
642 nonpayment be served on the surety; prohibiting a
643 person from requiring a claimant to furnish a certain
644 waiver in exchange for or to induce certain payments;
645 providing that specified provisions in certain waivers
646 are unenforceable; providing an exception; revising
647 process to notarize a notice of nonpayment; amending
648 s. 337.18, F.S.; providing that certain waivers apply
649 to certain contracts; amending s. 713.01, F.S.;
650 revising definitions; amending s. 713.09, F.S.;
651 authorizing a lienor to record one claim of lien for
652 multiple direct contracts; amending s. 713.10, F.S.;
653 revising the extent of liens; amending s. 713.13,
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Amendment No. 1.

654 F.S.; revising information to be included in a notice
655 of commencement; revising process to notarize a notice
656 of commencement; amending s. 713.132, F.S.; revising
657 requirements for a notice of termination; amending s.
658 713.18, F.S.; providing the manner in which documents
659 relating to certain construction bonds must be served;
660 providing that service of a document may be by hand
661 delivery; providing that service of a document is
662 effective on the date of mailing or shipping; making
663 technical changes; amending ss. 713.20 and 713.235,
664 F.S.; prohibiting a person from requiring a lienor to
665 furnish a certain waiver or release in exchange for or
666 to induce certain payments; providing that specified
667 provisions in certain waivers or releases are
668 unenforceable; providing an exception; amending s.
669 713.23, F.S.; requiring that a copy of a notice of
670 nonpayment be served on the surety; revising process
671 to notarize a notice of nonpayment; amending s.
672 713.29, F.S.; authorizing attorney fees in actions to
673 enforce a lien that has been transferred to security;
674 providing an effective date

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HOUSE OF REPRESENTATIVES STAFF ANALYSIS
BILL#: CS/HB 343 Recreational Vehicles
SPONSOR(S): Business & Professions Subcommittee, Fetterhoff
TIED BILLS: IDEN./SIM. BILLS: SB 422

REFERENCE ACTION ANALYST STAFF DIRECTOR or
BUDGET/POLICY CHIEF

1) Business & Professions Subcommittee 12 Y, 0 N, As CS Thompson Anstead

2) State Affairs Committee 21 Y, 0 N

3) Commerce Committee Thompso

SUMMARY ANALYSIS
The Department of Agriculture and Consumer Services (DACS) Bureau of Compliance is the primary agency
charged with the regulation of the liquefied petroleum (LP) gas industry, and ensuring that persons engaged in
the LP gas industry are trained and compliant with acceptable safety codes and standards statewide.

Prior to 2018, in order to refill, repair, or replace propane gas and equipment on recreational vehicles (RVs) in
Florida, a category IV LP gas dispenser and recreational vehicle servicers license (RV dealers/installers) was
required.

Effective July 2018, the category IV LP gas dispenser and recreational vehicle servicer license, which included
RV dealers/installers, was consolidated under the requirements of other similar LP gas license types (category
I dealer, category II dispenser, and category V installer). Thus, in order to continue to operate, LP gas RV
dealers/installers were required to obtain a license in one or more of the other categories, depending on their
business.

The bill:
• Requires DACS to establish by rule the requirements for agents qualified to administer LP gas
examinations;
• Requires DACS to establish by rule a specific test for RV dealers/installers;
• Requires DACS to ensure that test content is specific to RV dealer/installer activities;
• Limits those who pass the category I RV dealer/installer test to category I activities solely related to the
service and repair of RVs; and
• Clarifies that in order to be eligible to apply for certification as a master qualifier, "verifiable LP gas
experience" or "professional certification" is required.

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

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

This document does not reflect the intent or official position of the bill sponsor or House of Representatives.
STORAGE NAME: h0343d.C0M.D0CX
DATE: 2/9/2020
FULL ANALYSIS

I. SUBSTANTIVE ANALYSIS

A EFFECT OF PROPOSED CHANGES:
Background

Liquefied Petroleum Gas

The Department of Agriculture and Consumer Services (DACS) Bureau of Compliance is the primary
agency charged with regulating the liquefied petroleum (LP) gas industry, including licensing,
inspection, training, and examination requirements, in accordance with ch. 527, F.S. These
responsibilities enable DACS to ensure that those persons engaged in LP gas-related business
activities in this state are trained and that compliance with acceptable safety codes and standards is
achieved statewide. 1

LP gas is defined in statute as any material composed predominantly of any of the following
hydrocarbons, or mixtures of the same:
• Propane;
• Propylene;
• Butanes (normal butane or isobutane); and
• Butylenes. 2

Propane, the most widely used LP gas, is an energy source for hotels, restaurants, schools, hospitals,
nursing homes, universities, private homes, recreational vehicles, agricultural and industrial facilities,
and is used as an alternative fuel for vehicles. 3

Business Licenses

Current law provides licensing requirements for businesses that engage in certain LP gas-related
activities, including sales, installations, service and repair work, manufacture of equipment, and other
miscellaneous activities. DACS must license applicants that it determines to be competent, qualified,
and trustworthy. Violations for willfully operating without a license are a third degree felony. 4

The license categories and associated fees are as follows: 5

$400
$400
$65
$65
$200
$200

Licensees may elect to renew their license annually, biennially, or triennially, and are required to meet
the same requirements and conditions, including fee amounts, for each licensed year. An expired

1
Florida Department of Agriculture and Consumer Services, Safe Dispensing of Propane, Propane Dispensing Unit Operator
Training Manual, https://www.fdacs.gov/content/download/78592/file/Safe-Dispensing-of-Propane-Manual.pdf (last visited Nov. 23,
2019).
2
S. 527.01(1), F.S.
3
Florida Department of Agriculture and Consumer Services, supra note 1, at 4.
4
S. 527.02, F.S.
s Id.
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DATE: 2/9/2020
license will become inoperative, and the fee for restoration of an expired license is equal to the original
license fee and must be paid before the licensee is allowed to resume operations. 6

Training and Examinations

DACS is responsible for enforcing reasonable standards of competency, including, but not limited to,
the training, licensure, testing, and qualifying of persons participating in the LP gas industry. 7 DACS is
also authorized to adopt rules that are: 8
• In the interest of public health, safety, and welfare and to promote the safe handling of LP gas,
equipment, and systems; and
• Reasonably necessary to assure the competence of persons to safely engage in the business
of LP gas.

According to the DACs website, training is required for all employees of an LP gas-related business,
and refresher training must be conducted at three-year intervals. 9

In addition, any person applying for a license to engage in category I dealer, category II dispenser, or
category V installer activities must prove competency by passing a written examination administered by
DACS or its agent. 10

Qualifiers

Each category I dealer, category II dispenser, or category V installer licensee must employ a full-time
employee who has received a qualifier certificate from DACS. Qualifiers are required to function in a
supervisory capacity, and a separate qualifier must be present for every 10 employees. 11

An applicant for a qualifier certificate must:
• Be employed by a category I dealer, category II dispenser, or category V installer licensee;
• Submit to DACS a nonrefundable $20 examination fee; and
• Pass a competency examination with a grade of 70 percent or above in each area tested. 12

Qualifier registration expires three years after the date of issuance. Qualifiers must renew their
qualification 30 calendar days before expiration, upon:
• Application to DACS;
• Payment of a $20 renewal fee; and
• Documentation of the completion of a minimum of 16 hours of approved continuing education
courses, as defined by DACS rule, during the previous three-year period. 13

Persons failing to renew before the expiration date must reapply and take a qualifier competency
examination in order to reestablish qualifier status. 14

6
S. 527.03, F.S.
7
S. 527.055(l)(b), F.S.
8
S. 527.06
9
Florida Department of Agriculture and Consumer Services, LP Gas Training, https://www.fdacs.gov/Business-Services/LP-Gas-
Inspection/LP-Gas-Training (last visited Nov. 23, 2019).
10
S. 527.0201(1), F.S.
II S. 527.0201(1)-(4), F.S.
12 Id.
13 Id.
14 Id.
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Master Qualifiers

In addition to the qualifier requirements, each category I dealer and category V installer licensee is
required to have a manager, owner, or employee at each licensed location who has received a master
qualifier certificate from DACS. The master qualifier must be a manager, owner, or someone otherwise
primarily responsible for overseeing the operations of the licensed location and must provide
documentation to DACS. 15

An applicant for a master qualifier certificate must:
• Be employed by a category I dealer or category V installer licensee;
• Submit to DACS a nonrefundable $30 examination fee;
• Have been a registered qualifier for at least three years immediately preceding the application;
and
• Pass a master qualifier competency examination with a grade of 70 percent or above in each
area tested. 16

Master qualifier registration expires three years after the date of issuance 17 and may be renewed by
submitting to DACS:
• Proof of employment;
• Payment of a $30 certificate renewal fee; and
• Documentation of the completion of a minimum of 16 hours of approved continuing education
courses, as defined by department rule, during the previous three-year period. 18

Insurance

Prior to a receiving a license, LP gas license applicants, other than category IV dealers in appliances
and equipment and category Ill LP gas cylinder exchange unit operators, must provide DACS with
proof of bodily injury and property damage liability insurance coverage of at least $1 million. However,
the Commissioner of Agriculture may accept a $1 million bond in lieu of the coverage requirement. 19

For a class Ill license, coverage of at least $300,000 is required, and the Commissioner of Agriculture
may accept a bond of at least $300,000 in lieu of the coverage requirement. 20

Recreational Vehicle Dealers or Installers

Propane is widely used in recreational vehicles (RVs) to regulate temperature, cook meals, provide hot
water, and refrigerate food. Typically, motorized RVs have a fixed propane tank and towable RVs have
a removable propane tank. 21 In Florida, the refilling, repairing, or replacing of propane gas and
equipment must be completed by a properly trained employee of a licensed LP gas-related business. 22
These individuals are referred to by DACS as RV dealers/installers. 23

15
S. 527.0201(5), F.S.
16 Id.
11 Id.
1s Id.
19
S. 527.04(1), F.S.
20
S. 527.04(2), F.S.
21
Winnebagolife, An Easy Guide to Finding Propane for Your RV, https://winnebagolife.com/2019/05/finding-propane-for-your-rv
(last visited Nov. 23, 2019).
22
See ch. 527, F.S.
23
DACS, Agency Analysis of2019 House Bill 343 (Oct. 21, 2019).
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Prior to July 2018, RV dealers/installers were classified separately in Florida law as a "category IV LP
gas dispenser and recreational vehicle servicer" and were defined as:

any person engaging in the business of operating a liquefied petroleum gas
dispensing unit for the purpose of serving liquid product to the ultimate consumer
for industrial, commercial, or domestic use, and selling or offering to sell, or
leasing or offering to lease, apparatus, appliances, and equipment for the use of
liquefied petroleum gas, and whose services include the installation, service, or
repair of recreational vehicle liquefied petroleum gas appliances and
equipment. 24

RVs were defined as "a motor vehicle designed to provide temporary living quarters for recreational,
camping, or travel use, which has its own propulsion or is mounted on or towed by another motor
vehicle. "25

In order to engage in LP gas-related activities, category IV businesses were required to obtain
licensure from DACS by meeting all applicable requirements within the chapter of law governing the LP
gas industry, including training, examination, initial and renewal license fees, insurance coverage, and
qualifiers. 26

However, legislation passed during the 2018 Legislative Session that became effective July 2018,
resulted in the category IV license type being deleted from statute. 27 According to DACS, the changes
were sought to meet current business practices, to simplify the registration process and to streamline
the regulatory structure. DACS collaborated with the Florida LP Gas Association and other industry
leaders to modernize the LP gas statute. 28

Current Situation

Since July 2018, depending on the type of work being performed, a RV dealer/installer is required to
obtain either a category I dealer, II dispenser, or V installer license and is required to meet all
applicable licensing and examination requirements in order to operate lawfully in the state. Current law
does not provide a separate LP gas license category specifically for RV dealers/installers.

According to DACS, RV dealers/installers are required to obtain a category V installer license, and if
the RV dealer/installer also dispenses LP gas, a category II dispenser license must be obtained as well.
In lieu of multiple licenses, RV dealers/installers may obtain a category I dealer license that allows them
to perform both service and dispensing functions. 29

According to DACS, there are 50 licensed RV dealers/installers in the state. 30

Effect of Proposed Changes

The bill requires DACS to specify by rule the requirements for agents qualified to administer written
competency examinations required for LP gas licensure.

The bill requires DACS to establish by rule a separate test for persons applying for a license to engage
in category I activities solely related to the service or repair of RVs.

24
See ch. 527, F.S. (2017).
25 Id.
26 Id..
27
Ch. 2018-84, Laws of Fla.
28
Florida Department of Agriculture and Consumer Services, Agency Analysis of2018 House Bill 553, p. 9 (Nov. 21, 2017).
29
Id. at 1.
30
Id. at 3.
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The bill requires the category I RV dealer/installer test to include and ensure competency in the
following activities as they relate to RVs:
• Operating a LP gas dispensing unit to serve liquid product to a consumer for industrial,
commercial, or domestic use;
• Selling or offering to sell, or leasing or offering to lease, apparatus, appliances, and equipment
for the use of LP gas; and
• Installing, servicing, or repairing RV LP gas appliances and equipment.

The bill limits a qualifier or master qualifier who has passed the category I RV dealer/installer test to
category I activities solely related to the service and repair of RVs.

In addition, the bill replaces the requirement that master qualifier applicants have at least 3-years
experience as a registered qualifier to instead require such applicants to:
• Have a minimum of 3 years of verifiable LP gas experience; or
• Hold a professional certification by an LP gas manufacturer.

The bill also defines an RV as:

• "a motor vehicle that is designed to provide temporary living quarters for recreational, camping,
or travel use and that has its own propulsion or is mounted on or towed by another motor
vehicle."

B. SECTION DIRECTORY:
Section 1. Amends s. 527.01, F.S., defining the term "recreational vehicle."

Section 2. Amends s. 527.0201, F.S., relating to qualifiers; master qualifiers; examinations.

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

II. FISCAL ANALYSIS & ECONOMIC IMPACT STATEMENT

A FISCAL IMPACT ON STATE GOVERNMENT:

1. Revenues:
None.

2. Expenditures:
None.

B. FISCAL IMPACT ON LOCAL GOVERNMENTS:

1. Revenues:
None.

2. Expenditures:
None.

C. DIRECT ECONOMIC IMPACT ON PRIVATE SECTOR:
Authorizing a separate and distinct category I RV dealer/installer licensure test and allowing applicants
to use experience or professional certification to be eligible to apply for certification as a master
qualifier may remove unnecessary barriers to professional licensure and employment in the category I
RV dealer/installer industry, which may allow more workers to practice their chosen profession.
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DATE: 2/9/2020
D. FISCAL COMMENTS:
None.

Ill. COMMENTS

A. CONSTITUTIONAL ISSUES:

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

2. Other:
None.

B. RULE-MAKING AUTHORITY:
The bill requires DACS to adopt rules specifying the requirements for agents qualified to administer
written competency examinations and establishing a separate test for persons applying for a license to
engage in category I activities solely related to the service or repair of RVs. It appears that sufficient
rulemaking authority exists ins. 527.06(1), 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:
• Requires DACS to establish by rule the requirements for agents qualified to administer LP gas
examinations;
• Requires DACS to establish by rule a specific test for RV dealers/installers;
• Requires DACS to ensure that test content is specific to RV dealer/installer activities;
• Limits those who pass the category I RV dealer/installer test to category I activities solely related to
the service and repair of RVs; and
• Clarifies that in order to be eligible to apply for certification as a master qualifier, "verifiable LP gas
experience" or "professional certification" is required.

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

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DATE: 2/9/2020
FLORIDA H O U S E 0 F REPRESENTATIVES

CS/HB 343 2020

1 A bill to be entitled
2 An act relating to recreational vehicles; amending s.
3 527.01, F.S.; defining the term "recreational
4 vehicle"; amending s. 527.0201, F.S.; requiring the
5 Department of Agriculture and Consumer Services to
6 adopt rules specifying requirements for agents to
7 administer certain competency examinations and
8 establishing a competency test for a license to engage
9 in activities solely related to the service and repair
10 of recreational vehicles; authorizing certain
11 qualifiers and master qualifiers to engage in
12 activities solely related to the service and repair of
13 recreational vehicles; requiring verifiable LP gas
14 experience or professional certification by an LP gas
15 manufacturer in order to apply for certification as a
16 master qualifier; providing an effective date.
17
18 Be It Enacted by the Legislature of the State of Florida:
19
20 Section 1. Subsection (18) is added to section 527.01,
21 Florida Statutes, to read:
22 527.01 Definitions.-As used in this chapter:
23 ( 18) "Recreational vehicle" means a motor vehicle that is
24 designed to provide temporary living quarters for recreational,
25 camping, or travel use and that has its own propulsion or is

Page 1 of 4

CODING: Words stricken are deletions; words underlined are additions.
hb0343-01-c1
FLORIDA H O U S E 0 F REPRESENTATIVES

CS/HB 343 2020

26 mounted on or towed by another motor vehicle.
27 Section 2. Subsection (1) and paragraph (a) of subsection
28 (5) of section 527.0201, Florida Statutes, are amended to read:
29 527.0201 Qualifiers; master qualifiers; examinations.-
30 (1) In addition to the requirements of s. 527.02, ~ arry
31 person applying for a license to engage in category I, category
32 II, or category V activities must prove competency by passing a
33 written examination administered by the department or its agent
34 with a grade of 70 percent or above in each area tested. Each
35 applicant for examination shall submit a $20 nonrefundable fee.
36 ~ The department shall by rule specify the general areas
37 of competency to be covered by each examination and the relative
38 weight to be assigned in grading each area tested.
39 (b) The department shall by rule specify the requirements
40 for agents qualified to administer the written competency
41 examinations required by this part.
42 (c) The department shall by rule establish a separate test
43 for persons applying for a license to engage in category I
44 activities solely related to the service and repair of
45 recreational vehicles. The category I recreational vehicle
46 dealer/installer test shall include and ensure competency in the
47 following activities as they relate to recreational vehicles:
48 1. Operating a liquefied petroleum gas dispensing unit to
49 serve liquid product to a consumer for industrial, commercial,
50 or domestic use;

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hb0343-01-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 343 2020

51 2. Selling or offering to sell, or leasing or offering to
52 lease, apparatus, appliances, and equipment for the use of
53 liquefied petroleum gas; and
54 3. Installing, servicing, or repairing recreational
55 vehicle liquefied petroleum gas appliances and equipment.
56 (d) Any qualifier or master qualifier who has passed the
57 category I recreational vehicle dealer/installer test may engage
58 in category I activities solely related to the service and
59 repair of recreational vehicles.
60 (5) In addition to all other licensing requirements, each
61 category I and category V licensee must, at the time of
62 application for licensure, identify to the department one master
63 qualifier who is a full-time employee at the licensed location.
64 This person shall be a manager, owner, or otherwise primarily
65 responsible for overseeing the operations of the licensed
66 location and must provide documentation to the department as
67 provided by rule. The master qualifier requirement shall be in
68 addition to the requirements of subsection (1).
69 (a) In order to apply for certification as a master
70 qualifier, each applicant must have been a registered qualifier
71 .f.e.r a minimum of 3 years of verifiable LP gas experience or hold
72 a professional certification by an LP gas manufacturer as
73 adopted by department rule immediately preceding submission of
74 the application, must be employed by a licensed category I or
75 category V licensee 7 or an applicant for such license, and must

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hb0343-01-c1
FLORIDA H O U S E 0 F REPRESENTATIVES

CS/HB 343 2020

76 pass a master qualifier competency examination administered by
77 the department or its agent. Master qualifier examinations shall
78 be based on Florida's laws, rules, and adopted codes governing
79 liquefied petroleum gas safety, general industry safety
80 standards, and administrative procedures. The applicant must
81 successfully pass the examination with a grade of 70 percent or
82 above. Each applicant for master qualifier registration must
83 submit to the department a nonrefundable $30 examination fee
84 before the examination.
85 Section 3. This act shall take effect July 1, 2020.

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hb0343-01-c1
Commerce Committee

CS/HB 343 by Rep. Fetterhoff
Recreational Vehicles

AMENDMENT SUMMARY
February 13, 2020

Amendment 1 by Rep. Fetterhoff (42-57):
• Corrects terminology and makes technical and conforming changes.
COMMITTEE/SUBCOMMITTEE AMENDMENT
Bill No. CS/HB 343 (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 Fetterhoff offered the following:
3

4 Amendment (with title amendment)
5 Remove lines 42-57 and insert:
6 (c) The department shall by rule establish a separate
7 written competency examination for persons applying for a
8 license to engage in category I activities solely related to the
9 service and repair of recreational vehicles. The category I
10 recreational vehicle dealer/installer examination shall include
11 and ensure competency in the following activities as they relate
12 to recreational vehicles:
13 1. Operating a liquefied petroleum gas dispensing unit to
14 serve liquid product to a consumer for industrial, commercial,
15 or domestic use;

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COMMITTEE/SUBCOMMITTEE AMENDMENT
Bill No. CS/HB 343 (2020)
Amendment No. 1

16 2. Selling or offering to sell, or leasing or offering to
17 lease, apparatus, appliances, and equipment for the use of
18 liquefied petroleum gas; and
19 3. Installing, servicing, or repairing recreational
20 vehicle liquefied petroleum gas appliances and equipment.
21 (d) Any qualifier or master qualifier who has passed the
22 category I recreational vehicle dealer/installer examination may
23 engage
24
25
26 T I T L E A ME N D ME N T
27 Remove line 8 and insert:
28 establishing a written competency examination for a license to
29 engage

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Page 2 of 2
Commerce Committee

CS/HB 343 by Rep. Fetterhoff
Recreational Vehicles

AMENDMENT SUMMARY
February 13, 2020

Amendment 2 by Rep. Fetterhoff (19-20):
• Preempts all permitting authority to the Department of Health (DOH) for recreational
vehicle (RV) parks, mobile home parks, lodging parks, and recreational camps.
• Requires new park or camp owners to apply to DOH for a permit within 60 days after the
date of transfer, instead of before the date of transfer.
• Allows an RV park damaged or destroyed by a natural disaster to be rebuilt on the same
site using the same density standards established at the time of the RV park's initial
approval.
• Creates a rebuttable presumption that an RV park guest is a transient guest.
• Provides a method for the disposal of property left by a transient guest with an
outstanding account who vacates an RV park without notice.
• Adds a posted park rules and regulations violation to the list of reasons a park operator
may eject a transient guest or visitor from park premises and provides notice of ejection
requirements.
• Provides that a park operator may refuse a transient guest or visitor access to the
premises for specified conduct and request that such person leave the premises.
• Modifies the duties of a law enforcement officer called to assist with a person illegally on
an RV park's premises to allow removal of such a person in lieu of arrest and limits the
officer's liability.
COMMITTEE/SUBCOMMITTEE AMENDMENT
Bill No. CS/HB 343 (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 Fetterhoff offered the following:
3

4 Amendment (with title amendment)
5 Between lines 19 and 20, insert:
6 Section 1. Section 513.012, Florida Statutes, is amended
7 to read:
8 513.012 Public health laws; enforcement.-It is the intent
9 of the Legislature that mobile home parks, lodging parks,
10 recreational vehicle parks, and recreational camps be
11 exclusively regulated under this chapter. As such, the
12 department shall administer and enforce, with respect to such
13 parks and camps, laws and rules relating to sanitation, control
14 of communicable diseases, illnesses and hazards to health among
15 humans and from animals to humans, and permitting and
16 operational matters in order to protect the general health and
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COMMITTEE/SUBCOMMITTEE AMENDMENT
Bill No. CS/HB 343 (2020)
Amendment No. 2

17 well-being of the residents people of and visitors to the state.
18 However, nothing in this chapter qualifies a mobile home park, a
19 lodging park, a recreational vehicle park, or a recreational
20 camp for a liquor license issued under s. 561.20(2) (a)l. Mobile
21 home parks, lodging parks, recreational vehicle parks, and
22 recreational camps regulated under this chapter are exempt from
23 regulation under the provisions of chapter 509.
24 Section 2. Subsection (5) of section 513.02, Florida
25 Statutes, is amended to read:
26 513.02 Permit.-
27 (5) When a park or camp regulated under this chapter is
28 sold or its ownership transferred, the transferee must apply for
29 a permit to the department within 60 days after before the date
30 of transfer. The applicant must provide the department with a
31 copy of the recorded deed or lease agreement before the
32 department may issue a permit to the applicant.
33 Section 3. Section 513.051, Florida Statutes, is amended
34 to read:
35 513.051 Preemption.-The department is the exclusive
36 regulatory and permitting authority for sanitary and permitting
37 standards for all mobile home parks, lodging parks, recreational
38 vehicle parks, and recreational camps in accordance with 4:-he
39 provisions of this chapter.
40 Section 4. Subsection (3) is added to section 513.112,
41 Florida Statutes, to read:

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COMMITTEE/SUBCOMMITTEE AMENDMENT
Bill No. CS/HB 343 (2020)
Amendment No. 2

42 513.112 Maintenance of guest register and copy of laws.-
43 (3) When a guest occupies a recreational vehicle in a
44 recreational vehicle park for less than 6 months, as evidenced
45 by the length of stay shown in the guest register, there is a
46 rebuttable presumption that the occupancy is transient.
47 Section 5. Subsection (3) of section 513.1115, Florida
48 Statutes, is renumbered as subsection (4) and amended, and a new
49 subsection (3) is added to that section, to read:
50 513.1115 Placement of recreational vehicles on lots in
51 permitted parks.-
52 (3) If a recreational vehicle park is damaged or destroyed
53 as a result of wind, water, or other natural disaster, the park
54 may be rebuilt on the same site using the same density standards
55 that were approved and permitted before the park was damaged or
56 destroyed.
57 J..!l-f-3-t This section does not limit the regulation of the
58 uniform firesafety standards established under s. 633.206.
59 However, this section shall supersede any other county,
60 municipality, or special district ordinance or regulation
61 regarding the lot size, lot density, or separation or setback
62 distance of a recreational vehicle park which goes into effect
63 after the initial permitting and construction of the park.
64 Section 6. Section 513.115, Florida Statutes, is amended
65 to read:
66 513.115 Unclaimed property.-Any property having an

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COMMITTEE/SUBCOMMITTEE AMENDMENT
Bill No. CS/HB 343 (2020)
Amendment No. 2

67 identifiable owner which is left in a recreational vehicle park
68 by a guest, other than property belonging to a guest who has
69 vacated the preffiises without notice to the operator and with an
70 outstanding account, which property remains unclaimed after
71 having been held by a -Ht-e park for 90 days after written notice
72 was provided to the guest or the owner of the property, becomes
73 the property of the park. Any property that is left by a guest
74 who has vacated the premises without notice to the operator and
75 who has an outstanding account is considered abandoned property,
76 and disposition thereof shall be governed by the Disposition of
77 Personal Property Landlord and Tenant Act under s. 715.10 or
78 under 705.185, as applicable.
79 Section 7. Section 513.118, Florida Statutes, is amended
80 to read:
81 513.118 Conduct on premises; refusal of service.-
82 J..1..l The operator of a recreational vehicle park may refuse
83 to provide accommodationsL e-r service, or access to the premises
84 to any transient guest or visitor person whose conduct on the
85 premises of the park displays intoxication, profanity, lewdness,
86 or brawling; who indulges in such language or conduct as to
87 disturb the peace, quiet enjoyment, or comfort of other guests;
88 who engages in illegal or disorderly conduct; or whose conduct
89 constitutes a nuisance or safety hazard.
90 (2) The operator of a recreational vehicle park may
91 request that a transient guest or visitor who violates
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COMMITTEE/SUBCOMMITTEE AMENDMENT
Bill No. CS/HB 343 (2020)
Amendment No. 2

92 subsection (1) leave the premises immediately. A person who
93 refuses to leave the premises commits the offense of trespass as
94 provided ins. 810.08 and the operator may call a law
95 enforcement officer to have the person and his or her property
96 removed under the supervision of the officer. A law enforcement
97 officer is not liable for any claim involving the removal of the
98 person or property from the recreational vehicle park under this
99 section, except as provided ins. 768.28. If conditions do not
100 allow for immediate removal of the person's property, he or she
101 may arrange a reasonable time, not to exceed 48 hours, with the
102 operator to come remove the property, accompanied by a law
103 enforcement officer.
104 J..ll Such refusal of accommodations~ e-r service, or access
105 to the premises may shall not be based upon race, color,
106 national origin, sex, physical disability, or creed.
107 Section 8. Section 513.13, Florida Statutes, is amended to
108 read:
109 513.13 Recreational vehicle parks; ejection eviction;
110 grounds; proceedings.-
111 (1) The operator of any recreational vehicle park may
112 remove or cause to be removed from such park, in the manner
113 provided in this section, any transient guest of the park who,
114 while on the premises of the park, illegally possesses or deals
115 in a controlled substance as defined in chapter 893; who e-r
116 disturbs the peace, quiet enjoyment, and comfort of other
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COMMITTEE/SUBCOMMITTEE AMENDMENT
Bill No. CS/HB 343 (2020)
Amendment No. 2

117 persons; who causes harm to the physical park; who violates the
118 posted park rules and regulations; or who fails to make payment
119 of rent at the rental rate agreed upon and by the time agreed
120 upon. The admission of a person to, or the removal of a person
121 from, any recreational vehicle park may shall not be based upon
122 race, color, national origin, sex, physical disability, or
123 creed.
124 (2) The operator of any recreational vehicle park shall
125 notify such guest that the park no longer desires to entertain
126 the guest and shall request that such guest immediately depart
127 from the park. Such notice shall be given in writing~
128 follows: "You are hereby notified that this recreational vehicle
129 park no longer desires to entertain you as its guest, and you
130 are requested to leave at once. To remain after receipt of this
131 notice is a misdemeanor under the laws of this state." If such
132 guest has paid in advance, the park shall, at the time such
133 notice is given, tender to the guest the unused portion of the
134 advance payment. Any guest who remains or attempts to remain in
135 such park after being requested to leave commits is guilty of a
136 misdemeanor of the second degree, punishable as provided ins.
137 775.082 ors. 775.083.
138 (3) If a guest has accumulated an outstanding account in
139 excess of an amount equivalent to l three nights' rent at a
140 recreational vehicle park, the operator may disconnect all
141 utilities of the recreational vehicle and notify the guest that
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COMMITTEE/SUBCOMMITTEE AMENDMENT
Bill No. CS/HB 343 (2020)
Amendment No. 2

142 the action is for the purpose of requiring the guest to confront
143 the operator or permittee and arrange for the payment of the
144 guest's account. Such arrangement must be in writing, and a copy
145 shall be furnished to the guest. Upon entering into such
146 agreement, the operator shall reconnect the utilities of the
147 recreational vehicle.
148 (4) If any person is illegally on the premises of any
149 recreational vehicle park, the operator of such park may call
150 upon any law enforcement officer of this state for assistance.
151 It is the duty of such law enforcement officer, upon the request
152 of such operator, to remove from the premises or place under
153 arrest and talce into custody for violation of this section any
154 guest who, according to the park operator, violated violates
155 subsection (1) or subsection (2) in the presence of the officer.
156 If a warrant has been issued by the proper judicial officer for
157 the arrest of any guest who violates violator of subsection (1)
158 or subsection (2), the officer shall serve the warrant, arrest
159 the guest person, and take the guest person into custody. Upon
160 removal or arrest, with or without warrant, the guest is deemed
161 to have abandoned or given up any right to occupancy or to have
162 abandoned the guest's right to occupancy of the premises of the
163 recreational vehicle park; and the operator of the park shall
164 employ all reasonable and proper means to care for any personal
165 property left on the premises by such guest and shall refund any
166 unused portion of moneys paid by such guest for the occupancy of
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COMMITTEE/SUBCOMMITTEE AMENDMENT
Bill No. CS/HB 343 (2020)
Amendment No. 2

167 such premises. If conditions do not allow for immediate removal
168 of the guest's property, he or she may arrange a reasonable
169 time, not to exceed 48 hours, with the operator to come remove
170 the property, accompanied by a law enforcement officer.
171 (5) In addition to the grounds for ejection eviction
172 established by law, grounds for ejection eviction may be
173 established in a written lease agreement between a recreational
174 vehicle park operator or permittee and a recreational vehicle
175 park occupant.
176
177
178 T I T L E A ME N D ME N T
179 Remove line 2 and insert:
180 An act relating to recreational vehicle industries; amending s.
181 513.012, F.S.; revising legislative intent; amending s. 513.02,
182 F.S.; providing a timeframe for the application of a permit;
183 amending s. 513.051, F.S.; preempting to the Department of
184 Health the regulatory authority for permitting standards;
185 amending s. 513.112, F.S.; providing that evidence of a certain
186 length of stay in a guest register creates a rebuttable
187 presumption that a guest is transient; amending s. 513.1115,
188 F.S.; providing standards for a damaged or destroyed
189 recreational vehicle park to be rebuilt under certain
190 circumstances; superseding certain ordinances or regulations;
191 amending s. 513.115, F.S.; specifying when certain property
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COMMITTEE/SUBCOMMITTEE AMENDMENT
Bill No. CS/HB 343 (2020)
Amendment No. 2

192 becomes abandoned; providing for disposition of such property;
193 amending s. 513.118, F.S.; authorizing a park operator to refuse
194 access to the premises and to eject transient guests or visitors
195 based on specified conduct; providing that a person who refuses
196 to leave the park premises commits the offense of trespass;
197 providing immunity from liability for certain law enforcement
198 officers; providing an exception; providing for removal of
199 property; amending s. 513.13, F.S.; providing for ejection from
200 a park and specifying grounds and requirements therefor;
201 providing for removal of property; amending s.

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HOUSE OF REPRESENTATIVES STAFF ANALYSIS
BILL#: CS/HB 755 Pub. Rec. and Meetings/911 and E911 Communication Systems
SPONSOR(S): Energy & Utilities Subcommittee; DuBose
TIED BILLS: IDEN./SIM. BILLS: CS/SB 1060

REFERENCE ACTION ANALYST STAFF DIRECTOR or
BUDGET/POLICY CHIEF

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

2) Oversight, Transparency & Public Management 15 Y, 0 N Villa Smith
Subcommittee

3) Commerce Committee Keating

SUMMARY ANALYSIS
The Florida Constitution provides every person the right to inspect or copy any public record made or received in
connection with the official business of the legislative, executive, or judicial branches of government. However, the
Legislature may provide by general law for the exemption of records from the constitutional requirements.

Current law provides public record exemptions for various records related to the physical security of certain
structures and for certain information related to the Nationwide Public Safety Broadband Network. There is not a
specific public record exemption for records related to infrastructure used to provide 911 or E911 communication
service.

The bill creates a public record exemption for specific records that identify the design, scope, and location of 911 or
E911 communication system infrastructure owned and operated by an agency before, on, or after the effective date
of the bill. The bill also creates a public meeting exemption for any portion of a meeting that would reveal these
records. Specifically, the bill creates a public record exemption for:
• Building plans, blueprints, schematic drawings, and diagrams, including draft, preliminary, and final formats,
which depict the structural elements of 911 or E911 communication system infrastructure, including towers,
antennae, equipment or facilities used to provide 911 or E911 communication services, or other 911 or E911
communication structures or facilities owned and operated by an agency; and
• Geographical maps indicating the actual or proposed locations of 911 or E911 communication system
infrastructure, including towers, antennae, equipment or facilities used to provide 911 or E911 services, or
other 911 or E911 communication structures or facilities owned and operated by an agency.

The bill identifies specific circumstances in which these records may be disclosed. Further, the bill requires that all
portions of a public meeting exempted by the bill be recorded and transcribed. The bill provides that such
recordings and transcripts are confidential and exempt from disclosure as public records except to the extent that
any portion of the recording or transcript is determined by a court of competent jurisdiction, after an in camera
review, to reveal nonexempt data.

The bill provides for repeal of the exemptions on October 2, 2025, unless reviewed and saved from repeal through
reenactment by the Legislature. The bill provides a public necessity statement as required by the State Constitution.

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

The bill provides that it will take effect upon becoming law.

Article I, section 24(c) of the Florida Constitution requires a two-thirds vote of the members present and
voting for final passage of a newly created or expanded public meeting or public record exemption. The bill
creates a new public meeting and public record exemption; thus, it requires a two-thirds vote for final
passage.

This document does not reflect the intent or official position of the bill sponsor or House of Representatives.
STORAGE NAME: h0755d.COM.DOCX
DATE: 2/10/2020
FULL ANALYSIS

I. SUBSTANTIVE ANALYSIS

A. EFFECT OF PROPOSED CHANGES:
Present Situation

Public Records

Article I, section 24(a) of the Florida Constitution sets forth the state's public policy regarding access to
government records. This section guarantees every person a right to inspect or copy any public record
of the legislative, executive, and judicial branches of government. The Legislature, however, may
provide by general law for the exemption of records from the requirements of Article I, section 24(a). 1
The general law must state with specificity the public necessity justifying the exemption 2 and must be
no more broad than necessary to accomplish its purpose. 3

Public Meetings

Article I, section 24(b) of the Florida Constitution sets forth the state's public policy regarding access to
government meetings. The section requires that all meetings of any collegial public body of the
executive branch of state government or of any collegial public body of a county, municipality, school
district, or special district, at which official acts are to be taken or at which public business of such body
is to be transacted or discussed, be open and noticed to the public.

Public policy regarding access to government meetings also is addressed in the Florida Statutes.
Section 286.011, F.S., known as the "Government in the Sunshine Law" or "Sunshine Law," further
requires that all meetings of any board or commission of any state agency or authority or of any agency
or authority of any county, municipal corporation, or political subdivision, at which official acts are to be
taken be open to the public at all times. 4 The board or commission must provide reasonable notice of
all public meetings. 5 Public meetings may not be held at any location that discriminates on the basis of
sex, age, race, creed, color, origin, or economic status or that operates in a manner that unreasonably
restricts the public's access to the facility. 6 Minutes of a public meeting must be promptly recorded and
open to public inspection. 7

The Legislature may provide by general law for the exemption of meetings from the requirements of
article I, section 24(b) of the Florida Constitution. 8 The general law must state with specificity the public
necessity justifying the exemption 9 and must be no more broad than necessary to accomplish its
purpose. 10

Open Government Sunset Review

The Open Government Sunset Review Act 11 provides that a public meeting and public record
exemption may be created or maintained only if it serves an identifiable public purpose. In addition, it
may be no more broad than necessary to meet one of the following purposes:

1 FLA. CONST. art. I, s. 24(c).
2
This portion ofa public record exemption is commonly referred to as a "public necessity statement."
3
FLA. CONST. art. I, s. 24(c).
4
S. 286.011(1), F.S.
5 [d
6
S. 286.011(6), F.S.
7
S. 286.011(2), F.S.
8
FLA. CONST. art. I, s. 24(c).
9
This portion ofa public meeting exemption is commonly referred to as a "public necessity statement."
°
1
11
FLA. CONST. art. I, s. 24(c).
S. 119.15, F.S.
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• Allow the state or its political subdivisions to effectively and efficiently administer a
governmental program, which administration would be significantly impaired without the
exemption.
• Protect sensitive personal information that, if released, would be defamatory or would
jeopardize an individual's safety; however, only the identity of an individual may be exempted
under this provision.
• Protect trade or business secrets. 12

The Act requires the automatic repeal of a public meeting or public record exemption on October 2nd of
the fifth year after its creation or substantial amendment, unless the Legislature reenacts the
exemption. 13

Public Record and Public Meeting Exemptions for Building Security and Public Safety Communications
System Information

Current law provides a public record exemption for various records related to the physical security of
certain structures. For example, building plans, blueprints, schematic drawings, and diagrams,
including draft, preliminary, and final formats, which depict the internal layout and structural elements of
a building, arena, stadium, water treatment facility, or other structure owned or operated by an agency 14
are exempt from disclosure as a public record. 15 This information may be disclosed to another
governmental entity if necessary in the performance of its duties and responsibilities or to a licensed
architect, contractor, or engineer who is performing work on or related to the structure at issue. If
disclosed, the entity that receives the information must maintain its exempt status.

In addition, current law provides a public record exemption for certain information related to the
Nationwide Public Safety Broadband Network16 that is held by an agency. This information, which
includes geographical maps indicating actual or proposed locations of network infrastructure or
facilities, among other things, is confidential and exempt from disclosure as a public record. 17

Effect of Proposed Changes

Specifically, the bill provides the following records are exempt 18 from public record requirements:

12
S. l 19.15(6)(b), F.S.
13
S. 119.15(3), F.S.
14
For purposes of the public record law, an "agency" means "any state, county, district, authority, or municipal officer, department,
division, board, bureau, commission, or other separate unit of government created or established by law including, for the purposes of
this chapter, the Commission on Ethics, the Public Service Commission, and the Office of Public Counsel, and any other public or
private agency, person, partnership, corporation, or business entity acting on behalfofany public agency." S. 119.011(2), F.S.
15
S. 119.071(3)(b), F.S.
16
In 2012, Federal law mandated the development ofa nationwide, interoperable public safety broadband network. The network is
based on a single, national network architecture that evolves with technological advances and that initially consists of a core network
of national and regional data center that provides connectivity between the radio access network and the public Internet or public
switched network, or both. 47 U.S.C. s. 1422. The network was created "to give public safety 21st century communication tools to
help save lives, solve crimes and keep our communities and emergency responders safe." FirstNet, The Network,
https://firstnet.gov/network (last visited Feb. 10, 2020).
17
S. l l 9.071(3)(d), F.S.
18
There is a difference between records the Legislature designates exempt from public record requirements and those the Legislature
deems confidential and exempt. A record classified as exempt from public disclosure may be disclosed under certain circumstances.
See WFTV, Inc. v. Sch. Bd. ofSeminole, 874 So. 2d 48, 53 (Fla. 5th DCA 2004), review denied 892 So.2d 1015 (Fla. 2004); City of
Riviera Beach v. Barfield, 642 So.2d 1135 (Fla. 4th DCA 1994); Williams v. City of Minneola, 575 So.2d 683, 687 (Fla. 5th DCA
1991 ). If the Legislature designates a record as confidential and exempt from public disclosure, such record may not be released by the
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• Building plans, blueprints, schematic drawings, and diagrams, including draft, preliminary,
and final formats, which depict the structural elements of 911 or E911 communication
system infrastructure, including towers, antennae, equipment or facilities used to provide
911 or E911 communication services, or other 911 or E911 communication structures or
facilities owned and operated by an agency; and
• Geographical maps indicating the actual or proposed locations of 911 or E911
communication system infrastructure, including towers, antennae, equipment or facilities
used to provide 911 or E911 services, or other 911 or E911 communication structures or
facilities owned and operated by an agency.

The bill provides that this information may be disclosed in three circumstances, provided that any entity
who receives the information must maintain its exempt status. First, it may be disclosed to another
governmental entity if necessary for the receiving entity to perform its duties and responsibilities.
Second, it may be disclosed to a licensed architect, contractor, or engineer who is performing work on
or related to the 911 or E911 communication system infrastructure. Third, it may be disclosed upon a
showing of good cause before a court of competent jurisdiction.

The bill requires that all portions of a public meeting exempted by the bill must be recorded and
transcribed. The bill provides that such recordings and transcripts are confidential and exempt from
disclosure as public records except to the extent that any portion of the recording or transcript is
determined by a court of competent jurisdiction, after an in camera review, to reveal nonexempt data.

The bill provides a statement of public necessity as required by the Florida Constitution. It includes the
following legislative findings:
• The records for which the bill creates a public record exemption and public meeting exemption
identify information concerning the design, scope, and location of 911 and E911 communication
system infrastructure, both within and external to buildings and other structures.
• These records could be used by criminals or terrorists to examine 911 and E911 communication
system infrastructure for vulnerabilities and to plan and execute criminal actions including cyber-
crime, arson, and terrorism.
• This infrastructure must be protected to avoid disruption during an active shooter or other terror
event, as disruption could result in greater loss of life and property damage.
• It is a public necessity to exempt these records from disclosure to reduce exposure to these
security threats and to protect the public.

The public record and public meeting exemptions are subject to the Open Government Sunset Review
Act and will be repealed on October 2, 2025, unless reviewed and saved from repeal through
reenactment by the Legislature.

B. SECTION DIRECTORY:
Section 1. Amends s. 119.071, F.S., relating to general exemptions from inspection or copying of
public records.

Section 2. Amends s. 286.0113, F.S., relating to general exemptions from public meetings.

Section 3. Provides a public necessity statement as required by the Florida Constitution.

Section 4. Provides for the bill to take effect upon becoming a law.

custodian of the record to anyone other than the persons or entities specifically designated in statute. See Op. Att'y Gen. Fla. 85-62
(1985).
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II. FISCAL ANALYSIS & ECONOMIC IMPACT STATEMENT

A. FISCAL IMPACT ON STATE GOVERNMENT:

1. Revenues:
None.

2. Expenditures:
None.

B. FISCAL IMPACT ON LOCAL GOVERNMENTS:

1. Revenues:
None.

2. Expenditures:
See Fiscal Comments, below.

C. DIRECT ECONOMIC IMPACT ON PRIVATE SECTOR:
None.

D. FISCAL COMMENTS:
The bill could have a minimal fiscal impact on government entities that handle records that qualify for
the exemptions created by the bill. Staff responsible for complying with public meeting and public
record requirements may require training related to implementation of the exemptions. The costs,
however, would be absorbed, as they are part of the day-to-day responsibilities of these entities.

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 take an action
requiring the expenditure of funds, reduce the authority that counties or municipalities have to raise
revenue in the aggregate, nor reduce the percentage of state tax shared with counties or
municipalities.

2. Other:
Vote Requirement
Article I, section 24(c) of the Florida Constitution requires a two-thirds vote of the members present
and voting for final passage of a newly created public meeting or public record exemption. The bill
creates a new public meeting and public record exemption; thus, it requires a two-thirds vote for final
passage.

Public Necessity Statement
Article I, section 24(c) of the Florida Constitution requires a public necessity statement for a newly
created or expanded public meeting or public record exemption. The bill creates a new public
meeting and public record exemption and includes a statement supporting the public necessity for
these exemptions.

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Breadth of Exemption
Article I, section 24(c) of the Florida Constitution requires a newly created public meeting or public
record exemption to be no broader than necessary to accomplish the stated purpose of the law. The
bill creates a public record exemption for specified documents that depict structural elements of 911
or E911 communication system infrastructure and the locations of such infrastructure used to provide
911 or E911 services. The bill creates a public meeting exemption for only the portion of a public
meeting that would reveal such documents. The bill identifies specific entities to whom the exempt
information may be disclosed as necessary. The exemption does not appear to be in conflict with
the constitutional requirement that it be no broader than necessary to accomplish its purpose.

B. RULE-MAKING AUTHORITY:
None.

C. DRAFTING ISSUES OR OTHER COMMENTS:
None.

IV. AMENDMENTS / COMMITTEE SUBSTITUTE CHANGES
On January 21, 2020, the Energy & Utilities Subcommittee adopted one amendment to the bill and
reported the bill favorably as a committee substitute. The amendment:
• Requires recording and transcription of the portions of a public meeting exempted by the bill, and
provides that these recordings and transcripts are confidential and exempt from the public records
law except to the extent that any portion of the recording or transcript is determined by a court of
competent jurisdiction to reveal nonexempt data.
• Corrects the date upon which the exemptions created by the bill will stand repealed unless
reviewed and saved from repeal through reenactment by the Legislature.

This analysis addresses the committee substitute as approved by the Energy & Utilities Subcommittee.

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F L O R D A H O U S E 0 F R E P R E S E N T A T V E S

CS/HB 755 2020

1 A bill to be entitled
2 An act relating to public records and meetings;
3 amending s. 119.071, F.S.; providing an exemption from
4 public records requirements for certain documents
5 which depict the structural elements of certain 911 or
6 E911 communication system infrastructure, structures,
7 or ,facilities; providing an exemption from public
8 records requirements for geographical maps indicating
9 the actual or proposed locations of certain 911 or
10 E911 communication system infrastructure, structures,
11 or facilities; providing for retroactive application;
12 authorizing disclosure under certain circumstances;
13 providing for future legislative review and repeal of
14 the exemptions; amending s. 286.0113, F.S.; providing
15 an exemption from public meetings requirements for
16 portions of meetings that would reveal certain
17 documents depicting the structural elements of 911 or
18 E911 communication system infrastructure, structures,
19 or facilities, or geographic maps indicating the
20 locations or proposed locations of 911 or E911
21 communication system infrastructure, structures, or
22 facilities; requiring the recording and transcription
23 of exempt portions of such meetings; providing an
24 exemption from public records requirements for such
25 recordings and transcripts; providing an exception;

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CS/HB 755 2020

26 providing for future legislative review and repeal of
27 the exemption; providing a statement of public
28 necessity; providing an effective date.
29
30 Be It Enacted by the Legislature of the State of Florida:
31
32 Section 1. Paragraph (e) is added to subsection (3) of
33 section 119.071, Florida Statutes, to read:
34 119.071 General exemptions from inspection or copying of
35 public records.-
36 (3) SECURITY AND FIRESAFETY.-
37 (e)l.a. Building plans, blueprints, schematic drawings,
38 and diagrams, including draft, preliminary, and final formats,
39 which depict the structural elements of 911 or E911
40 communication system infrastructure, including towers, antennae,
41 equipment or facilities used to provide 911 or E911
42 communication services, or other 911 or E911 communication
43 structures or facilities owned and operated by an agency are
44 exempt from s. 119.07(1) ands. 24(a), Art. I of the State
45 Constitution.
46 b. Geographical maps indicating the actual or proposed
47 locations of 911 or E911 communication system infrastructure,
48 including towers, antennae, equipment or facilities used to
49 provide 911 or E911 services, or other 911 or E911 communication
50 structures or facilities owned and operated by an agency are

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51 exempt from s. 119.07(1) ands. 24(a), Art. I of the State
52 Constitution.
53 2. This exemption applies to building plans, blueprints,
54 schematic drawings, and diagrams, including draft, preliminary,
55 and final formats, which depict the structural elements of 911
56 or E911 communication system infrastructure or other 911 and
57 E911 communication structures or facilities owned and operated
58 by an agency, and geographical maps indicating actual or
59 proposed locations of 911 or E911 communication system
60 infrastructure or other 911 or E911 communication structures or
61 facilities owned and operated by an agency, before, on, or after
62 the effective date of this act.
63 3. Information made exempt by this paragraph may be
64 disclosed:
65 a. To another governmental entity if disclosure is
66 necessary for the receiving entity to perform its duties and
67 responsibilities;
68 b. To a licensed architect, engineer, or contractor who is
69 performing work on or related to the 911 or E911 communication
70 system infrastructure, including towers, antennae, equipment or
71 facilities used to provide 911 or E911 communication services,
72 or other 911 or E911 communication structures or facilities
73 owned and operated by an agency; or
74 c. Upon a showing of good cause before a court of
75 competent jurisdiction.

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76 4. The entities or persons receiving such information must
77 maintain the exempt status of the information.
78 5. This paragraph is subject to the Open Government Sunset
79 Review Act in accordance withs. 119.15 and shall stand repealed
80 on October 2, 2025, unless reviewed and saved from repeal
81 through reenactment by the Legislature.
82 Section 2. Subsection (4) is added to section 286.0113,
83 Florida Statutes, to read:
84 286.0113 General exemptions from public meetings.-
85 (4) (a) Any portion of a meeting that would reveal building
86 plans, blueprints, schematic drawings, or diagrams, including
87 draft, preliminary, and final formats, which depict the
88 structural elements of 911 or E911 communication system
89 infrastructure, including towers, antennae, equipment or
90 facilities used to provide 911 or E911 communication services,
91 or other 911 and E911 communication structures or facilities
92 made exempt bys. 119.071(3) (e)l.a. is exempt from s. 286.011
93 ands. 24, Art. I of the State Constitution.
94 (b) Any portion of a meeting that would reveal
95 geographical maps indicating the actual or proposed locations of
96 911 or E911 communication system infrastructure, including
97 towers, antennae, equipment or facilities used to provide 911 or
98 E911 communication services, or other 911 or E911 communication
99 structures or facilities made exempt bys. 119.071(3) (e)l.b. is
100 exempt from s. 286.011 ands. 24, Art. I of the State

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101 Constitution.
102 (c) No portion of an exempt meeting under paragraphs (a)
103 or (b) may be off the record. All exempt portions of such
104 meeting shall be recorded and transcribed. Such recordings and
105 transcripts are confidential and exempt from disclosure under s.
106 119.07(1) ands. 24(a), Art. I of the State Constitution unless
107 a court of competent jurisdiction, after an in-camera review,
108 determines that the meeting was not restricted to the discussion
109 of the information made exempt bys. 119.071(3) (e)l.a. orb. In
110 the event of such a judicial determination, only that portion of
111 the recording and transcript which reveals nonexempt information
112 may be disclosed to a third party.
113 (d) This subsection is subject to the Open Government
114 Sunset Review Act in accordance withs. 119.15 and shall stand
115 repealed on October 2, 2025, unless reviewed and saved from
116 repeal through reenactment by the Legislature.
117 Section 3. The Legislature finds that it is a public
118 necessity that building plans, blueprints, schematic drawings,
119 and diagrams, including draft, preliminary, and final formats,
120 which depict the structural elements of 911 or E911
121 communication system infrastructure, including towers, antennae,
122 equipment or facilities used to provide 911 or E911
123 communication services, and other 911 or E911 communicatiOiilit
124 structures or facilities owned and operated by an agency, and
125 geographic maps indicating the actual or proposed locations of

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126 such cormnunication system infrastructure, structures, or
127 facilities should be made exempt from s. 119.07(1), Florida
128 Statutes, ands. 24(a), Article I of the State Constitution to
129 ensure the security of emergency cormnunication infrastructure,
130 structures, and facilities. In addition, the Legislature finds
131 that it is a public necessity that any portion of a meeting
132 revealing such documents and maps that are held by an agency
133 should be made exempt from s. 286.011, Florida Statutes, ands.
134 24(b), Art. I of the State Constitution. Building plans,
135 blueprints, schematic drawings, and diagrams, including draft,
136 preliminary, and final formats, received and held by counties,
137 municipalities, and other governmental agencies that depict the
138 structural elements of 911 or E911 cormnunication system
139 infrastructure, structures, and facilities are currently subject
140 to release as public records upon request. Similarly,
141 geographical maps showing the present or proposed locations of
142 such 911 or E911 cormnunication system infrastructure,
143 structures, and facilities that are in the possession of
144 counties, municipalities, and other governmental agencies are
145 also subject to release as public records upon request.
146 Counties, municipalities and other governmental agencies may
147 review the building plans or geographical maps to ensure
148 compliance with land development regulations, building codes,
149 agency rules, and standards to protect the public health and
150 safety. These building plans include diagrams and schematic

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151 drawings of emergency communication systems, electrical systems,
152 and other physical plant and security details which depict the
153 structural elements of such emergency communications facilities
154 and structures. 911 and E911 communication facilities, including
155 towers and antennae, are a vital link in the chain of survival.
156 Such critical infrastructure must be protected as any disruption
157 during an active shooter or other terror event is very likely to
158 result in greater loss of life and property damage. To function
159 properly, towers and antennae need to be visible, increasing the
160 security risk of such facilities. Because architectural and
161 engineering plans reviewed and held by counties, municipalities
162 and other government agencies include information about tower,
163 equipment, ancillary facilities, critical systems, and
164 restricted areas, these plans could be used by criminals or
165 terrorists to examine the physical plant for vulnerabilities.
166 Information contained in these documents could aid in the
167 planning of, training for, and execution of criminal actions
168 including cyber-crime, arson, and terrorism. Consequently, the
169 Legislature finds that it is a public necessity to exempt such
170 information from public records requirements to reduce exposure
171 to security threats and protect the public.
172 Section 4. This act shall take effect upon becoming a law.

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COMMERCE COMMITTEE

CS/HB 755 by Rep. DuBose
PUB. REC. AND MEETINGS/ 911 AND E911 COMMUNICATION
SYSTEMS

AMENDMENT SUMMARY
February 12, 2020

Amendment 1 by Rep. DuBose (Strike-all)

• Clarifies that the public record and public meeting exemptions created by the bill
apply to public safety radio communication system infrastructure.
• Provides a definition for "public safety radio" for purposes of the exemptions
created by the bill.
COMMITTEE/SUBCOMMITTEE AMENDMENT
Bill No. CS/HB 755 (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 DuBose offered the following:
3
4 Amendment (with title amendment)
5 Remove everything after the enacting clause and insert:
6 Section 1. Paragraph (e) is added to subsection (3) of
7 section 119.071, Florida Statutes, to read:
8 119.071 General exemptions from inspection or copying of
9 public records.-
10 (3) SECURITY AND FIRESAFETY.-
11 (e)l.a. Building plans, blueprints, schematic drawings,
12 and diagrams, including draft, preliminary, and final formats,
13 which depict the structural elements of 911, E911, or public
14 safety radio communication system infrastructure, including
15 towers, antennae, equipment or facilities used to provide 911,
16 E911, or public safety radio communication services, or other
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COMMITTEE/SUBCOMMITTEE AMENDMENT
Bill No. CS/HB 755 (2020)
Amendment No. 1

17 911, E911, or public safety radio communication structures or
18 facilities owned and operated by an agency are exempt from s.
19 119.07(1) ands. 24(a), Art. I of the State Constitution.
20 b. Geographical maps indicating the actual or proposed
21 locations of 911, E911, or public safety radio communication
22 system infrastructure, including towers, antennae, equipment or
23 facilities used to provide 911, E911, or public safety radio
24 services, or other 911, E911, or public safety radio
25 communication structures or facilities owned and operated by an
26 agency are exempt from s. 119.07(1) ands. 24(a), Art. I of the
27 State Constitution.
28 2. This exemption applies to building plans, blueprints,
29 schematic drawings, and diagrams, including draft, preliminary,
30 and final formats, which depict the structural elements of 911,
31 E911, or public safety radio communication system infrastructure
32 or other 911, E911, or public safety radio communication
33 structures or facilities owned and operated by an agency, and
34 geographical maps indicating actual or proposed locations of
35 911, E911, or public safety radio communication system
36 infrastructure or other 911, E911, or public safety radio
37 communication structures or facilities owned and operated by an
38 agency, before, on, or after the effective date of this act.
39 3. Information made exempt by this paragraph may be
40 disclosed:

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COMMITTEE/SUBCOMMITTEE AMENDMENT
Bill No. CS/HB 755 (2020)
Amendment No. 1

41 a. To another governmental entity if disclosure is
42 necessary for the receiving entity to perform its duties and
43 responsibilities;
44 b. To a licensed architect, engineer, or contractor who is
45 performing work on or related to the 911, E911, or public safety
46 radio communication system infrastructure, including towers,
47 antennae, equipment or facilities used to provide 911, E911, or
48 public safety radio communication services, or other 911, E911,
49 or public safety radio communication structures or facilities
50 owned and operated by an agency; or
51 c. Upon a showing of good cause before a court of
52 competent jurisdiction.
53 4. The entities or persons receiving such information must
54 maintain the exempt status of the information.
55 5. For purposes of this paragraph, "public safety radio"
56 refers to the means of communication between and among 911
57 public safety answering points, dispatchers, and first responder
58 agencies using those portions of the radio frequency spectrum
59 designated by the Federal Communications Commission under 47
60 C.F.R. 90 for public safety purposes.
61 6. This paragraph is subject to the Open Government Sunset
62 Review Act in accordance withs. 119.15 and shall stand repealed
63 on October 2, 2025, unless reviewed and saved from repeal
64 through reenactment by the Legislature.

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COMMITTEE/SUBCOMMITTEE AMENDMENT
Bill No. CS/HB 755 (2020)
Amendment No. 1

65 Section 2. Subsection (4) is added to section 286.0113,
66 Florida Statutes, to read:
67 286.0113 General exemptions from public meetings.-
68 (4) (a) Any portion of a meeting that would reveal building
69 plans, blueprints, schematic drawings, or diagrams, including
70 draft, preliminary, and final formats, which depict tne
71 structural elements of 911, E911, or public safety radio
72 communication system infrastructure, including towers, antennae,
73 equipment or facilities used to provide 911, E911, or public
74 safety radio communication services, or other 911, E911, or
75 public safety radio communication structures or facilities made
76 exempt bys. 119.071(3) (e)l.a. is exempt from s. 286.011 ands.
77 24, Art. I of the State Constitution.
78 (b) Any portion of a meeting that would reveal
79 geographical maps indicating the actual or proposed locations of
80 911, E911, or public safety radio communication system
81 infrastructure, including towers, antennae, equipment or
82 facilities used to provide 911, E911, or public safety radio
83 communication services, or other 911, E911, or public safety
84 radio communication structures or facilities made exempt bys.
85 119 . 0 71 ( 3) ( e) 1 . b. is exempt from s . 2 8 6 . 011 and s . 2 4 , Art . I of
86 the State Constitution.
87 (c) No portion of an exempt meeting under paragraphs (a)
88 or (b) may be off the record. All exempt portions of such
89 meeting shall be recorded and transcribed. Such recordings and

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Amendment No. 1

90 transcripts are confidential and exempt from disclosure under s.
91 119.07(1) ands. 24(a), Art. I of the State Constitution unless
92 a court of competent jurisdiction, after an in-camera review,
93 determines that the meeting was not restricted to the discussion
94 of the information made exempt bys. 119.071(3) (e)l.a. orb. In
95 the event of such a judicial determination, only that portion of
96 the recording and transcript which reveals nonexempt information
97 may be disclosed to a third party.
98 (d) For purposes of this subsection, "public safety radio"
99 refers to the means of communication between and among 911
100 public safety answering points, dispatchers, and first responder
101 agencies using those portions of the radio frequency spectrum
102 designated by the Federal Communications Commission under 47
103 C.F.R. 90 for public safety purposes.
104 (e) This subsection is subject to the Open Government
105 Sunset Review Act in accordance withs. 119.15 and shall stand
106 repealed on October 2, 2025, unless reviewed and saved from
107 repeal through reenactment by the Legislature.
108 Section 3. The Legislature finds that it is a public
109 necessity that building plans, blueprints, schematic drawings,
110 and diagrams, including draft, preliminary, and final formats,
111 which depict the structural elements of 911, E911, or public
112 safety radio communication system infrastructure, including
113 towers, antennae, equipment or facilities used to provide 911,
114 E911, or public safety radio communication services, and other
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Bill No. CS/HB 755 (2020)
Amendment No. 1

115 911, E911, or public safety radio communication structures or
116 facilities owned and operated by an agency, and geographical
117 maps indicating the actual or proposed locations of such
118 communication system infrastructure, structures, or facilities
119 should be made exempt from s. 119.07(1), Florida Statutes, and
120 s. 24(a), Article I of the State Constitution to ensure the
121 security of emergency communication infrastructure, structures,
122 and facilities. In addition, the Legislature finds that it is a
123 public necessity that any portion of a meeting revealing such
124 documents and maps that are held by an agency should be made
125 exempt from s. 286.011, Florida Statutes, ands. 24(b), Art. I
126 of the State Constitution. Building plans, blueprints, schematic
127 drawings, and diagrams, including draft, preliminary, and final
128 formats, received and held by counties, municipalities, and
129 other governmental agencies that depict the structural elements
130 of 911, E911, or public safety radio communication system
131 infrastructure, structures, and facilities are currently subject
132 to release as public records upon request. Similarly,
133 geographical maps showing the present or proposed locations of
134 such 911, E911, or public safety radio communication system
135 infrastructure, structures, and facilities that are in the
136 possession of counties, municipalities, and other governmental
137 agencies are also subject to release as public records upon
138 request. Counties, municipalities and other governmental
139 agencies may review the building plans or geographical maps to
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COMMITTEE/SUBCOMMITTEE AMENDMENT
Bill No. CS/HB 755 (2020)
Amendment No. 1

140 ensure compliance with land development regulations, building
141 codes, agency rules, and standards to protect the public health
142 and safety. These building plans include diagrams and schematic
143 drawings of emergency communication systems, electrical systems,
144 and other physical plant and security details which depict the
145 structural elements of such emergency communications facilities
146 and structures. 911, E911, and public safety radio communication
147 facilities, including towers and antennae, are a vital link in
148 the chain of survival. Such critical infrastructure must be
149 protected as any disruption during an active shooter or other
150 terror event is very likely to result in greater loss of life
151 and property damage. To function properly, towers and antennae
152 need to be visible, increasing the security risk of such
153 facilities. Because architectural and engineering plans reviewed
154 and held by counties, municipalities and other government
155 agencies include information about tower, equipment, ancillary
156 facilities, critical systems, and restricted areas, these plans
157 could be used by criminals or terrorists to examine the physical
158 plant for vulnerabilities. Information contained in these
159 documents could aid in the planning of, training for, and
160 execution of criminal actions including cyber-crime, arson, and
161 terrorism. Consequently, the Legislature finds that it is a
162 public necessity to exempt such information from public records
163 requirements to reduce exposure to security threats and protect
164 the public.
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COMMITTEE/SUBCOMMITTEE AMENDMENT
Bill No. CS/HB 755 (2020)
Amendment No. 1

165 Section 4. This act shall take effect upon becoming a law.
166
167
168 TITLE AMENDMENT
169 Remove lines 5-20 and insert:
170 which depict the structural elements of certain 911, E911, or
171 public safety radio communication system infrastructure,
172 structures, or facilities; providing an exemption from public
173 records requirements for geographical maps indicating the actual
174 or proposed locations of certain 911, E911, or public safety
175 radio communication system infrastructure, structures, or
176 facilities; providing for retroactive application; authorizing
177 disclosure under certain circumstances; providing for future
178 legislative review and repeal of the exemptions; amending s.
179 286.0113, F.S.; providing an exemption from public meetings
180 requirements for portions of meetings that would reveal certain
181 documents depicting the structural elements of 911, E911, or
182 public safety radio communication system infrastructure,
183 structures, or facilities, or geographical maps indicating the
184 locations or proposed locations of 911, E911, or public safety
185 radio

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

REFERENCE ACTION ANALYST STAFF DIRECTOR or
BUDGET/POLICY CHIEF

1) Business & Professions Subcommittee 10 Y, 0 N, As CS Wright Anstead

2) Commerce Committee Wright

SUMMARY ANALYSIS
In Florida, public accountancy is regulated by the Board of Accountancy under the Department of Business
and Professional Regulation. The practice of public accountancy includes offering to the public the
performance of services involving audits, reviews, compilations, tax preparation, management advisory or
consulting services, or preparation of financial statements. In order to practice public accountancy, a person
must be licensed as a certified public accountant (CPA).

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

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

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

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

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

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

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

This document does not reflect the intent or official position of the bill sponsor or House of Representatives.
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DATE: 2/9/2020
FULL ANALYSIS

I. SUBSTANTIVE ANALYSIS

A. EFFECT OF PROPOSED CHANGES:
Practice of Public Accountancy

Background

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

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

The "practice of public accountancy" includes offering to the public the performance of services
involving audits, reviews, compilations, tax preparation, management advisory or consulting services,
or preparation of financial statements. 3

The initial licensing fee for a CPA license is $50, and the biennial renewal fee is $95. 4

A person may be charged with a first-degree misdemeanor if they are not a licensed CPA and they
perform: 5
• Services involving the expression of an opinion on financial statements,
• The attestation as an expert in accountancy to the reliability or fairness of presentation of
financial information,
• The utilization of any form of opinion or financial statements that provide a level of assurance,
• The utilization of any form of disclaimer of opinion which conveys an assurance of reliability as
to matters not specifically disclaimed, or
• The expression of an opinion on the reliability of an assertion by one party for the use by a third
party.

License by Endorsement

An applicant is eligible for licensure by endorsement if the applicant: 6
• is of good moral character;
• has completed 80 hours of continuing professional education (CPE) if it has been at least 2
years since passing the licensing examination;7 and either:
o is not licensed, but has otherwise met the licensing requirements and has passed a
licensing examination that is substantially equivalent to the Florida examination; or
o holds a valid license to practice public accounting issued by another state or territory of
the United States, if the criteria for issuance of such license are substantially equivalent
to a Florida license or is otherwise permitted.

1
S. 473.303, F.S.
2 S. 473.302, F.S.
3 S. 473.302(8), F.S.
4
Email from Colton Madill, Deputy Legislative Affairs Director, Florida Department of Business and Professional Regulation, RE: DBPR
Fee Schedule (Jan. 3, 2020).
5 S. 473.322(1)(c), F.S.
6
S. 468.8414(3), (4), F.S.
7
R. 61H1-29.003, F.A.C.
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Continuing Education

CPAs are required to complete 80 hours 8 of CPE in public accounting subjects every 2 years to renew
their license. The board has the authority to prescribe by rule additional CPE hours, not to exceed 25
percent of the total hours required, for failure to complete the hours required for renewal by the end of
the reestablishment period. 9

At least 25 percent of the total hours required by the board must be in accounting-related and auditing-
related subjects, as distinguished from other subjects that include federal and local taxation matters
and management services. 10

Five percent of the total hours required by the board must be in ethics applicable to the practice of
public accounting. This requirement must be administered by providers approved by the board and
include a review of the provisions of ch. 455, F.S., ch. 473, F.S., and the related administrative rules. 11

Inactive Licenses

CPAs are authorized to request their license be placed on inactive status, or the licensee may be
placed on inactive status for failing to meet the CPE requirements for license renewal. The board is
authorized to adopt rules establishing the minimum requirements for placing a license on inactive
status, renewing an inactive license, and reactivating the inactive license. 12

The fee for reactivating an inactive CPA license is $250. 13 The maximum CPE requirements for
reactivating an inactive or delinquent license are 120 hours, including:
• At least 30 hours in accounting-related and auditing-related subjects;
• Not more than 30 hours in behavioral subjects; and
• A minimum of 8 hours in ethics subjects approved by the board.

Retired Status

The American Institute of CPAs (AICPA) estimates that approximately 75 percent of its members will be
eligible to retire by the year 2020. According to AICPA, "many of these retirees are well respected
business leaders in their communities who would like to find ways to continue to be of service, without
necessarily remaining an active CPA in practice." 14

The AICPA provides a uniform retired CPA status in their model rules that states may adopt allowing
retired CPAs to offer a limited array of volunteer, uncompensated services to the public. Inactive CPAs,
of at least 55 years of age are allowed to refer to themselves as "Retired-CPAs" and register as such
with their state board of accountancy. They are able to participate in activities such as volunteer tax
preparation services, government-sponsored business mentoring programs, and on boards of nonprofit
organizations. 15

8 S. 473.312(1)(a), F.S. allows the board to require between 48 and 80 hours of CPE every 2 years. The board requires 80 hours in r.

61H1-33.003, F.A.C.
9 S. 473.312(1)(a), F.S.
10 Id.
11 S. 473.312(1)(b),(c}, F.S.
12 S. 473.313, F.S.

13 R. 61 H1-31.006, F.A.C.
14 American Institute of Certified Public Accountants, https://www.aicpa.org/advocacy/state/retiredcpastatusexposuredraft.html (last

visited Jan. 10, 2020).
15 /d.
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Effect of the Bill

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

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

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

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

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

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

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

Licensees granted retired status are allowed to:
• Serve without compensation on a board of directors or board of trustees;
• Provide volunteer tax preparation services;
• Participate in a government-sponsored business mentoring program such as the Internal
Revenue Service's Volunteer Income Tax Assistance program or the Small Business
Administration's SCORE program; and
• Participate in an advisory role for a similar charitable, civic, or other nonprofit organization.

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

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

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

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

Performance Audits for Discretionary Sales Surtaxes

The Florida Constitution preempts all forms of taxation, except ad valorem taxes on real and tangible
personal property, to the state unless otherwise provided by general law. 16 Current law provides
counties and school districts with limited authority to levy a discretionary sales surtax for specific
purposes on transactions subject to state sales tax. 17 These purposes include:
• Operating a transportation system in a charter county; 18
• Financing local government infrastructure projects; 19
• Providing additional revenue for counties having less than 50,000 residents as of April 1,
1992; 20
• Providing medical care for indigent persons; 21
• Funding trauma centers; 22
• Operating, maintaining, and administering a county public general hospital; 23
• Constructing and renovating schools; 24
• Providing emergency fire rescue services and facilities; and 25
• Funding pension liability shortfalls. 26

Most local discretionary sales surtaxes may only be approved by referendum, while some may be
approved by an extraordinary vote of the county commission. 27

For all discretionary sales surtax referendum held on or after March 23, 2018, a performance audit of
the government program associated with the proposed surtax must be conducted by an independent,
licensed CPA. 28 The Office of Program Policy Analysis and Government Accountability (OPPAGA) is
responsible for both selecting the CPA and paying for the CPA's services. OPPAGA must procure the
CPA to conduct the performance audit within 60 days of receiving the final resolution or ordinance. 29
The results of the performance audit, including any findings, recommendations, or other accompanying
documents, must be made available on the website of the county or school district at least 60 days prior
to the referendum and must be maintained on the website for at least 2 years. 30

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

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

residents).
22 S. 212.055(4)(b), F.S.
2 3 S. 212.055(5), F.S.
24 S. 212.055(6), -f.S.
2s S. 212.055(8), F.S.

2s S. 212.055(9), F.S.
27 See generally s. 212.055, F.S.; but sees. 212.055(3), F.S. (small county surtax may be approved by extraordinary vote of the county

commission as long as surtax revenues are not used for servicing bond indebtedness), s. 212.055(4), F.S. (indigent care and trauma
center surtax may be approved by extraordinary vote of the county commission), ands. 212.055(5), F.S. (county public hospital surtax
may be approved by extraordinary vote of the county commission).
28 S. 212.055(10)(a), F.S.
29 S. 212.055(11)(b)3., F.S.
3o S. 212.055(10)(b), F.S.
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A "performance audit" related to a local surtax means an examination of the program conducted
according to applicable government auditing standards or auditing and evaluation standards of other
appropriate authoritative bodies. At a minimum, a performance audit must include an examination of
issues related to the following: 31
• The economy, efficiency, or effectiveness of the program.
• The structure or design of the program to accomplish its goals and objectives.
• Alternative methods of providing program services or products.
• Goals, objectives, and performance measures used by the program to monitor and report
program accomplishments
• The accuracy or adequacy of public documents, reports, and requests prepared by the county
or school district which relate to the program.
• Compliance of the program with appropriate policies, rules, and laws.

Legislative Performance Audits

Performance audits are performed by and for various state legislative bodies, including the Legislative
Auditing Committee, OPPAGA, and the Auditor General. 32

For these purposes, "performance audit" means an examination of a program, activity, or function of a
governmental entity, conducted in accordance with applicable government auditing standards or
auditing and evaluation standards of other appropriate authoritative bodies. The term includes an
examination of issues related to: 33
• Economy, efficiency, or effectiveness of the program.
• Structure or design of the program to accomplish its goals and objectives.
• Adequacy of the program to meet the needs identified by the Legislature or governing body.
• Alternative methods of providing program services or products.
• Goals, objectives, and performance measures used by the agency to monitor and report
program accomplishments.
• The accuracy or adequacy of public documents, reports, or requests prepared under the
program by state agencies.
• Compliance with appropriate policies, rules, or laws.
• Any other issues related to governmental entities as directed by the Legislative Auditing
Committee.

Effect of the Bill

The bill removes the requirement that performance audits for local discretionary sales surtaxes may
only be completed by an independent CPA.

The bill aligns the meaning of "performance audit" used ins. 212.055(11), F.S., related to performance
audits for local discretionary surtaxes, to be the same as the meaning ins. 11.45(1 )U), F.S., related to
performance audits performed by legislative bodies.

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

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

3 1 S. 212.055(11)(c), F.S.
32 Ss. 11.40-11.51, F.S.
33 S. 11.45(1)0), F.S.
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Section 3 Amends s. 473.311, F.S., providing license renewal requirements for nonresident
licensees.

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

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

Section 6 Provides an effective date.

II. FISCAL ANALYSIS & ECONOMIC IMPACT STATEMENT

A. FISCAL IMPACT ON STATE GOVERNMENT:

1. Revenues:
None.

2. Expenditures:
None.

B. FISCAL IMPACT ON LOCAL GOVERNMENTS:

1. Revenues:
None.

2. Expenditures:
None.

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

D. FISCAL COMMENTS:
None.

Ill. COMMENTS

A. CONSTITUTIONAL ISSUES:

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

2. Other:
None.

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

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C. DRAFTING ISSUES OR OTHER COMMENTS:
None.

IV. AMENDMENTS/ COMMITTEE SUBSTITUTE CHANGES

On February 4, 2020, the Business & Professions Subcommittee considered a proposed committee substitute,
adopted an amendment, and reported the bill favorably as a committee substitute. The following changes were
made to the bill:
• the requirement that performance audits for local discretionary sales surtaxes may only be performed
by a CPA was removed, and
• the meaning of "performance audit" used for local discretionary surtaxes was aligned with other
sections of Florida statutes.

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

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

CS/HB 867 2020

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

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

CS/HB 867 2020

26 an effective date.
27
28 Be It Enacted by the Legislature of the State of Florida:
29
30 Section 1. Paragraph (c) of subsection (1) and paragraphs
31 (a), (b), and (c) of subsection (11) of section 212. 055, Florida
32 Statutes, are amended to read:
33 212.055 Discretionary sales surtaxes; legislative intent;
34 authorization and use of proceeds.-It is the legislative intent
35 that any authorization for imposition of a discretionary sales
36 surtax shall be published in the Florida Statutes as a
37 subsection of this section, irrespective of the duration of the
38 levy. Each enactment shall specify the types of counties
39 authorized to levy; the rate or rates which may be imposed; the
40 maximum length of time the surtax may be imposed, if any; the
41 procedure which must be followed to secure voter approval, if
42 required; the purpose for which the proceeds may be expended;
43 and such other requirements as the Legislature may provide.
44 Taxable transactions and administrative procedures shall be as
45 provided ins. 212.054.
46 (1) CHARTER COUNTY AND REGIONAL TRANSPORTATION SYSTEM
47 SURTAX.-
48 (c)l. The proposal to adopt a discretionary sales surtax
49 as provided in this subsection and to create a trust fund within
50 the county accounts shall be placed on the ballot in accordance

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CS/HB 867 2020

51 with law and must be approved in a referendum held at a general
52 election in accordance with subsection (10).
53 2. If the proposal to adopt a surtax is by initiative, the
54 petition sponsor must, at least 180 days before the proposed
55 referendum, comply with all of the following:
56 a. Provide a copy of the final resolution or ordinance to
57 the Office of Program Policy Analysis and Government
58 Accountability. The Office of Program Policy Analysis and
59 Government Accountability shall procure a vendor to complete a
60 performance audit as defined in paragraph ( 11) ( c) certified
61 public accountant in accordance with subsection (11) for the
62 performance audit.
63 b. File the initiative petition and its required valid
64 signatures with the supervisor of elections. The supervisor of
65 elections shall verify signatures and retain signature forms in
66 the same manner as required for initiatives under s.
67 100.371(11).
68 3. The failure of an initiative sponsor to comply with the
69 requirements of subparagraph 2. renders any referendum held
70 void.
71 (11) PERFORMANCE AUDIT.-
72 (a) To adopt a discretionary sales surtax under this
73 section, an independent certified public accountant licensed
74 pursuant to chapter 473 shall conduct a performance audit of the
75 program associated with the proposed surtax must be conducted.

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CS/HB 867 2020

76 (b)l. At least 180 days before the referendum is held, the
77 county or school district shall provide a copy of the final
78 resolution or ordinance to the Office of Program Policy Analysis
79 and Government Accountability.
80 2. Within 60 days after receiving the final resolution or
81 ordinance, the Office of Program Policy Analysis and Government
82 Accountability shall procure a vendor to complete a performance
83 audit of the program associated with the proposed surtax 'E-fie
84 certified public accountant and may use carryforward funds to
85 pay for the audit the services of the certified public
86 accountant.
87 3. At least 60 days before the referendum is held, the
88 performance audit must be completed and the audit report,
89 including any findings, recommendations, or other accompanying
90 documents, must be made available on the official website of the
91 county or school district.
92 4. The county or school district shall keep the
93 information on its website for 2 years from the date it was
94 posted.
95 5. The failure to comply with the requirements under
96 subparagraph 1. or subparagraph 3. renders any referendum held
97 to adopt a discretionary sales surtax void.
98 (c) For purposes of this subsection, the term "performance
99 audit" has the same meaning as provided in s. 11. 45 ( 1) ( j) . FReans
100 an exaFRination of the prograffi conducted according to applicable

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101 government auditing standards or auditing and evaluation
102 standards of other appropriate authoritative bodies. At a
103 minimum, a performance audit must include an e1wmination of
104 issues related to the following:
105 1. The economy, efficiency, or effectiveness of the
106 program.
107 2. The structure or design of the program to accomplish
108 its goals and objectives.
109 3. Alternative methods of providing program services or
110 products.
111 4. Goals, objectives, and performance measures used by the
112 program to monitor and report program accomplishments.
113 5. The accuracy or adequacy of public documents, reports,
114 and requests prepared by the county or school district which
115 relate to the program.
116 6. Compliance of the program ,Jith appropriate policies,
117 rules, and laws.
118 Section 2. Subsection (7) of section 473.308, Florida
119 Statutes, is amended to read:
120 473.308 Licensure.-
121 (7) The board shall certify as qualified for a license by
122 endorsement an applicant who:
123 (a) 1. Is not licensed and has not been licensed in any
124 another state or territory and who has met the requirements of
125 this section for education, work experience, and good moral

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

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151 least 10 years before the date of application; has passed a
152 national, regional, state, or territorial licensing examination
153 that is substantially equivalent to the examination required by
154 s. 473.306; and has met the requirements of this section for
155 good moral character; and
156 2. Has completed continuing education courses that are
157 equivalent to the continuing education requirements for a
158 Florida certified public accountant licensed in this state
159 during the 2 years immediately preceding her or his application
160 for licensure by endorsement.
161 Section 3. Subsection (1) of section 473.311, Florida
162 Statutes, is amended to read:
163 473.311 Renewal of license.-
164 (1)~ The department shall renew a license issued under
165 s. 473.308 upon receipt of the renewal application and fee and
166 upon certification by the board that the Florida certified
167 public accountant has satisfactorily completed the continuing
168 education requirements of s. 473.312.
169 (b) A nonresident licensee seeking renewal of a license in
170 this state shall be determined to have met the continuing
171 education requirements ins. 473.312, except for the
172 requirements ins. 473.312(1) (c), if the licensee has complied
173 with the continuing education requirements applicable in the
174 state in which his or her office is located. If the state in
175 which the nonresident licensee's office is located has no

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176 continuing education requirements for license renewals, the
177 nonresident licensee must comply with the continuing education
178 requirements ins. 473.312.
179 Section 4. Paragraph (c) of subsection (1) of section
180 473.312, Florida Statutes, is amended to read:
181 473.312 Continuing education.-
182 ( 1)

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

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201 education requirements as a condition of reactivating a license.
202 The maximum continuing education requirements for reactivating a
203 license are 120 hours, including at least 30 hours in
204 accounting-related and auditing-related subjects, not more than
205 30 hours in behavioral subjects, and a minimum of 8 hours in
206 ethics subjects approved by the board, for the reactivation of a
207 license that is inactive or delinquent.
208 JE.l_-f-3+ A license that is delinquent for failure to report
209 completion of the requirements ins. 473.312 may be reactivated
210 under s. 473.311 upon application to the department.
211 Reactivation requires the payment of an application fee as
212 determined by the board and certification by the Florida
213 certified public accountant that the applicant satisfactorily
214 completed the continuing education requirements set forth under
215 s. 473.311. If the license is delinquent on January 1 because of
216 failure to report completed continuing education requirements,
217 the applicant must submit a complete application to the board by
218 March 15 immediately after the delinquent period.
219 ~+4+ Any Florida certified public accountant holding an
220 inactive license may be permitted to reactivate such license in
221 a conditional manner. The conditions of reactivation shall
222 require the payment of fees and the completion of required
223 continuing education.
224 ~-f-§.+ Notwithstanding the provisions of s. 455.271, the
225 board may, at its discretion, reinstate the license of an

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

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

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276 (f} A retired licensee is not required to maintain the
277 continuing education requirements under s. 473.312.
278 (g} A retired licensee may not offer or render
279 professional services that require her or his signature and use
280 of the CPA title, regardless of whether the word "retired" is
281 attached to such title.
282 (h) A retired licensee may reactivate her or his license
283 in a conditional manner determined by the board. The conditions
284 of reactivation must require the payment of fees and the
285 completion of any required continuing education.
286
287 For the purposes of this subsection, the term "retired licensee"
288 means a licensee whose license has been placed in retired status
289 by the department.
290 Section 6. This act shall take effect July 1, 2020.

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COMMERCE COMMITTEE

HB 867 by Rep. Stevenson
Public Accountancy

AMENDMENT SUMMARY
February 13, 2020

Amendment 1 by Rep. Stevenson (Line 282):

The amendment provides that retired status CPA licensees may reactivate their licenses using
current procedures for other inactive licensees.
COMMITTEE/SUBCOMMITTEE AMENDMENT
Bill No. CS/HB 867 (2020)
Amendment No. 1

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

1 Committee/Subcommittee hearing bill: Commerce Committee
2 Representative Stevenson offered the following:
3
4 Amendment
5 Remove lines 282-285 and insert:
6 (h) A retired licensee may reactivate his or her license in
7 the same manner described in paragraph (1) (c).

366277 - h867-line282.docx
Published On: 2/12/2020 3:17:12 PM
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HOUSE OF REPRESENTATIVES STAFF ANALYSIS
BILL#: CS/HB 969 Broadband Internet Service
SPONSOR(S): Transportation & Tourism Appropriations Subcommittee; Drake
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) Transportation & Tourism Appropriations 12Y,ON,AsCS Cobb Davis
Subcommittee

3) Commerce Committee Keating Hamon

SUMMARY ANALYSIS
In 2009, the Legislature authorized the Department of Management Services (DMS) to perform certain
functions to promote the increased use of broadband Internet service in the state. Under this authority, DMS
was awarded federal grant funding through a 2009 U.S. Department of Commerce State Broadband Initiative
program. Those funds have since been depleted, and the state broadband program is dormant.

The bill designates the Department of Economic Opportunity (DEO) as the lead state agency to facilitate the
expansion of broadband Internet service in the state. It creates the Florida Office of Broadband (Office) within
DEO's Division of Community Development for purposes of developing, marketing, and promoting broadband
Internet service in the state.

The bill transfers to the new office most of the powers and duties previously given to DMS. Specifically, the
Office must:
• Create a strategic plan for increasing the use of broadband Internet service in the state;
• Build local technology planning teams representing, among others, libraries, schools, colleges and
universities, local health care providers, private businesses, community organizations, economic
development organizations, local governments, tourism, parks and recreation, and agriculture; and
• Encourage the use of broadband Internet service, especially in rural, unserved, and underserved areas
of the state through grant programs.
• Monitor, participate in, and provide input in proceedings of the Federal Communications Commission
and other federal agencies related to the geographic availability and deployment of broadband Internet
service in Florida.

For these purposes, the bill authorizes DEO to apply for and accept federal grant funds, enter into necessary
or useful contracts, and establish any committee or workgroup to administer the program.

The bill also repeals ch. 2012-131, L.O.F., which became obsolete when the federal grant funds previously
awarded to DMS were depleted.

DEO estimates that in order to implement the bill initially the workload will be absorbed by existing staff. There
is no estimate as to any further recurring costs necessary to operate the program. The bill provides for an
additional use of M-CORES funds, but does not affect revenues or expenditures. See fiscal comments.

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.
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FULL ANALYSIS

I. SUBSTANTIVE ANALYSIS

A. EFFECT OF PROPOSED CHANGES:
Present Situation

Fixed and mobile broadband services provide access to numerous employment, education,
entertainment, and health care opportunities. 1 Communities that lack broadband access can have
difficulty attracting new capital investment. While Florida's urban areas are served at a fixed
broadband coverage rate of 98 percent, its rural areas are served at a rate of 75.2 percent. 2 This
disparity is caused primarily by high per-unit construction costs required to build broadband
infrastructure across larger swaths of rural geographic areas. 3

Florida Broadband Program

In 2009, the Legislature authorized the Department of Management Services (OMS) to work
collaboratively with Enterprise Florida, state agencies, local governments, private businesses, and
community organizations to:

• Assess the needs for broadband Internet service and develop data and maps that provide a
baseline assessment of the availability and speed of broadband service throughout Florida;
• Create a strategic plan to increase use of broadband Internet service in Florida;
• Build local technology planning teams representing, among others, libraries, schools, colleges
and universities, local health care providers, private businesses, community organizations,
economic development organizations, local governments, tourism, parks and recreation, and
agriculture; and
• Encourage the use of broadband Internet service, especially in rural, unserved, and
underserved areas of the state through grant programs.

DMS was also authorized to apply for and accept federal funds, as well as gifts and donations from
individuals, foundations, and private organizations, for these purposes. 4

In 2009, the U.S. Department of Commerce's National Telecommunications Information Administration
(NTIA) launched the State Broadband Initiative (SBI) to implement two federal laws, the American
Recovery and Reinvestment Act of 2009 and the Broadband Data Improvement Act of 2008.
According to the NTIA's SBI website, 5 twelve separate entities within Florida were awarded grants
totaling $183. 7 million for broadband infrastructure, sustainable adoption, and public computer center
projects. Among those grants, OMS was awarded a total of $8,877,028. 6

In 2012, the Legislature passed a law transferring the state's broadband program from OMS to the
Department of Economic Opportunity (DEO) and designating DEO as the single state entity to receive

1
U.S. Federal Communications Commission, 2018 Broadband Deployment Report, at 1 (Feb. 2, 2018), available at
https://docs.fcc.gov/public/attachments/FCC-18-lOA 1.pdf (last visited Feb. 10, 2020).
2
Id., at 58-59. For purposes of this data, 'fixed broadband services' are measured at 25 megabits per second downstream and 3
megabits per second upstream.
3
American Broadband Initiative, Milestones Report, at 11 (Feb. 13, 2019), available at
https://broadbandusa.ntia.doc.gov/sites/default/files/resource-files/american broadband initiative milestones report feb 2019 O.pdf
(last visited Feb. 10, 2020).
4 Ch. 2009-226, L.O.F., codified at s. 364.0135, F.S.
5
Broadband USA - NTIA, State Broadband Initiative, http://www2.ntia.doc.gov/SBDD (last visited Feb. 10, 2020).
6
Broadband USA - NTIA, Florida Department of Management Services, http://www2.ntia.doc.gov/grantee/florida-department-of-
management-services (last visited Feb. I 0, 2020).
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and manage all federal SBI funds.7 By its terms, this law would become effective only if the U.S.
Department of Commerce approved the transfer of the existing federal SBI grant from OMS to DEO.
This approval was never provided, thus the program remains under OMS. After depletion of the
remaining SBI grant funds, the state broadband program has been unfunded and dormant.

Federal Broadband Initiatives

In January 2020, the Federal Communications Commission (FCC) established the Rural Digital
Opportunity Fund (Fund) to fund the deployment of broadband networks in rural America over the next
decade. 8 The program will consist of two phases. Using data from the FCC's previous mapping efforts,
the first phase will begin later this year and will make available up to $16 billion to target census blocks
that are wholly unserved with fixed broadband speeds of at least 25 megabits per second (Mbps)
downstream and 3 Mbps upstream (25/3 Mbps). Using more precise data to be developed through a
new FCC mapping effort, the second phase will make available at least $4.4 billion to target census
blocks where some locations lack access to 25/3 Mbps broadband.

In addition, the U.S. Department of Agriculture (USDA), through its Reconnect Program, offers federal
loans, grants, and loan/grant combinations to facilitate broadband deployment to rural areas without
access to sufficient broadband service. 9 Eligible entities include cooperatives and non-profits, for-profit
companies, and state and local governments and their agencies and political subdivisions. Applicants
requesting a grant or a loan/grant combination under the Reconnect Program are required to submit a
scoring sheet by which USDA may analyze nine separate evaluation criteria to score the application.
One of the evaluation criteria is whether the proposed project is in a state with a broadband plan that
has been updated within the previous 5 years. 10

Department of Transportation-Multi-use Corridors of Regional Economic Significance

The Florida Department of Transportation's (FOOT) Multi-use Corridors of Regional Economic
Significance Program (M-CORES) is designed to advance construction of regional corridors that will
accommodate multiple modes of transportation and multiple types of infrastructure, including those that
promote broadband connectivity. 11 The FOOT must give preference to feeder roads, interchanges, and
appurtenances that create or facilitate multiuse corridor access and connectivity when using these
funds.

Effect of Proposed Changes

The bill designates DEO as the lead state agency to facilitate the expansion of broadband Internet
service in the state. It creates the Florida Office of Broadband (Office) within DEO's Division of
Community Development for purposes of developing, marketing, and promoting broadband Internet
service in the state.

The bill maintains most of the requirements previously imposed on OMS and imposes them instead on
the new office. Specifically, the Office must:
• Create a strategic plan for increasing the use of broadband Internet service in the state which
must include a process to review and verify public input regarding transmission speeds and
availability of broadband Internet service throughout the state;

7
Ch. 2012-131, L.O.F.
8
U.S. Federal Communications Commission, FCC launches $20 Billion Rural Digital Opportunity Fund,
https://www.fcc.gov/document/fcc-launches-20-billion-rural-digital-opportunity-fund-O (last visited Feb. I 0, 2020).
9
USDA, Broadband, https://www.usda.gov/broadband (last visited Feb. 10, 2020).
10 Id.
11
S. 338.2278(l)(d), F.S. See also Florida Department of Transportation, M-CORES, https://floridamcores.com/ (last visited Feb. 10,
2020).
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• Build local technology planning teams representing, among others, libraries, schools, colleges
and universities, local health care providers, private businesses, community organizations,
economic development organizations, local governments, tourism, parks and recreation, and
agriculture; and
• Encourage the use of broadband Internet service, especially in rural, unserved, and
underserved 12 areas of the state through grant programs.
• Monitor, participate in, and provide input in proceedings of the FCC and other federal agencies
related to the geographic availability and deployment of broadband Internet service as
necessary to ensure that Florida's rural, unserved, and underserved areas are best positioned
to benefit from federal and state broadband deployment programs.

For these purposes, the bill authorizes DEO to apply for and accept federal grant funds, enter into
necessary or useful contracts, and establish any committee or workgroup to administer the program.

The bill repeals ch. 2012-131, L.O.F. This law is obsolete. The contingency upon which this law would
have become effective - federal approval of the transfer from OMS to DEO of a now-depleted federal
grant- did not, and can no longer, occur.

The bill provides that up to $5 million of the funds transferred to Florida's Turnpike Enterprise for the
Multi-use Corridors of Regional Economic Significance (M-CORES) program may be used for projects
that assist in the development of broadband infrastructure within or adjacent to a multiuse corridor. The
bill requires that priority be given to broadband infrastructure projects located in a rural area of
opportunity 13 that is adjacent to a multiuse corridor.

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

B. SECTION DIRECTORY:
Section 1. Amends s. 339.0801, F.S., relating to the use of revenues for the Multi-use Corridors of
Regional Economic Significance program.

Section 2. Amends s. 364.0135, F.S., relating to promotion of broadband adoption.

Section 3. Repeals ch. 2012-131, L.O.F.

Section 4. Provides an effective date of July 1, 2020.

II. FISCAL ANALYSIS & ECONOMIC IMPACT STATEMENT

12
The bill defines "underserved" to mean a geographic area of this state in which there is no provider of broadband Internet service
that offers a connection to the Internet with a capacity for transmission at a consistent speed of at least 10 Mbps downstream and at
least 1 Mbps upstream
13
Section 288.0656, F.S., defines a rural area of opportunity (RAO) as a rural community, or region composed of rural communities,
designated by the Governor, that has been adversely affected by an extraordinary economic event, severe of chronic distress, or natural
disaster that presents a unique economic development opportunity ofregional impact. RAO's are eligible for assistance and other
support through the Rural Economic Development Initiative, administered by DEO. According to DEO's website, the currently
designated RAOs are:
• The Northwest RAO, comprised of Calhoun, Franklin, Gadsden, Gulf, Holmes, Jackson, Liberty, Wakulla, and Washington
counties, and the part of Walton County north of the Intracoastal Waterway, including the cities ofDeFuniak Springs,
Freeport, and Paxton;
• The South Central RAO, comprised of DeSoto, Glades, Hardee, Hendry, Highlands, and Okeechobee counties, the cities of
Pahokee, Belle Glade, and South Bay in Palm Beach County, and the city of Immokalee in Collier County; and
• The North Central RAO, comprised of Baker, Bradford, Columbia, Dixie, Gilchrist, Hamilton, Jefferson, Lafayette, Levy,
Madison, Putnam, Suwannee, Taylor, and Union Counties.

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A. FISCAL IMPACT ON STATE GOVERNMENT:

1. Revenues:
None.

2. Expenditures:
DEO estimates that in order to implement the bill initially the workload will be absorbed by existing
staff. There is no estimate as to any further recurring costs necessary to operate the program.

B. FISCAL IMPACT ON LOCAL GOVERNMENTS:

1. Revenues:
None.

2. Expenditures:
None.

C. DIRECT ECONOMIC IMPACT ON PRIVATE SECTOR:
None.

D. FISCAL COMMENTS:
The bill may improve the opportunity for entities within the state to receive funding to support
deployment of broadband Internet service in rural, underserved, and unserved areas of the state, which
may enhance economic development in those areas.

The bill provides that up to $5 million of funds transferred to the Florida Turnpike Enterprise may be
used for projects that assist in the development of broadband infrastructure within or adjacent to a
multiuse corridor. Current law transfers $35 million to the Turnpike Enterprise. This provision simply
expands the use of these funds to include broadband infrastructure, thus it will not affect revenues nor
expenditures.

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 provide rulemaking authority.

C. DRAFTING ISSUES OR OTHER COMMENTS:
None.

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IV. AMENDMENTS / COMMITTEE SUBSTITUTE CHANGES
On February 3, 2020, the Transportation & Tourism Appropriations Subcommittee adopted one
amendment, and one amendment to the amendment. In summary, the amendments:

• Provide that up to $5 million of the funds transferred to Florida's Turnpike Enterprise for the M-
CORES program may be used for projects that assist in the development of broadband
infrastructure within or adjacent to a multiuse corridor;
• Provide a definition of for the term "underserved";
• Provide that the broadband strategic plan must include a process to review and verify public input
regarding transmission speeds and availability of broadband Internet service throughout the state;
and
• Provide that DEO must monitor, participate in, and provide input in proceedings of the FCC and
other federal agencies related to the geographic availability and deployment of broadband Internet
service in Florida.

This analysis is written to the committee substitute as passed out of the Transportation & Tourism
Appropriations Subcommittee.

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

CS/HB 969 2020

1 A bill to be entitled
2 An act relating to broadband Internet service;
3 amending s. 339.0801, F.S.; authorizing certain funds
4 within the State Transportation Trust Fund to be used
5 for certain broadband infrastructure projects within
6 or adjacent to multiuse corridors; requiring the
7 Department of Transportation to give priority to
8 certain projects; amending s. 364.0135, F.S.; defining
9 terms; designating the Department of Economic
10 Opportunity as the lead state agency to facilitate the
11 expansion of broadband Internet service in the state;
12 requiring the department to work collaboratively with
13 certain entities; creating the Florida Office of
14 Broadband within the Division of Community Development
15 in the department; providing purpose and duties of the
16 office; repealing chapter 2012-131, Laws of Florida,
17 relating to broadband Internet service; providing an
18 effective date.
19
20 Be It Enacted by the Legislature of the State of Florida:
21
22 Section 1. Paragraph (b) of subsection (2) of section
23 339.0801, Florida Statutes, is amended to read:
24 339.0801 Allocation of increased revenues derived from
25 amendments to s. 319.32(5) (a) by ch. 2012-128.-Funds that result

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CS/HB 969 2020

26 from increased revenues to the State Transportation Trust Fund
27 derived from the amendments to s. 319.32 (5) (a) made by this act
28 must be used annually, first as set forth in subsection (1) and
29 then as set forth in subsections (2)-(5), notwithstanding any
30 other provision of law:
31 (2)

32 (b) Beginning with the 2022-2023 fiscal year and annually
33 thereafter, $35 million shall be transferred to Florida's
34 Turnpike Enterprise, to be used in accordance withs. 338.2278,
35 with preference to feeder roads, interchanges, and appurtenances
36 that create or facilitate multiuse corridor access and
37 connectivity. Of those funds, and to the maximum extent
38 feasible, up to $5 million annually may be used for projects
39 that assist in the development of broadband infrastructure
40 within or adjacent to a multiuse corridor. The department shall
41 give priority consideration to broadband infrastructure projects
42 located in any area designated as a rural area of opportunity
43 under s. 288.0656 and adjacent to a multiuse corridor.
44 Section 2. Section 364.0135, Florida Statutes, is amended
45 to read:
46 364.0135 Promotion of broadband adoption; Florida Office
47 of Broadband.-
48 (1) LEGISLATIVE FINDINGS.-The Legislature finds that the
49 sustainable adoption of broadband Internet service is critical
50 to the economic and business development of the state and is

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CS/HB 969 2020

51 beneficial for libraries, schools, colleges and universities,
52 health care providers, and community organizations.
53 (2) DEFINITIONS.-As used in this section, the term:
54 (a) "Department" means the Department of Economic
55 Opportunity.
56 (b) "Office" means the Florida Office of Broadband.
57 JS:l "Sustainable adoption" means the ability for
58 communications service providers to offer broadband services in
59 all areas of the state by encouraging adoption and utilization
60 levels that allow for these services to be offered in the free
61 market absent the need for governmental subsidy.
62 (d) "Underserved" means a geographic area of the state in
63 which there is no provider of broadband Internet service that
64 offers a connection to the Internet with a capacity for
65 transmission at a consistent speed of at least 10 megabits per
66 second downstream and at least 1 megabit per second upstream.
67 J.l.l-+:2-+- STATE AGENCY.-The department is designated as the
68 lead state agency to facilitate the expansion of broadband
69 Internet service in the state. The department shall e-£-
70 Management Services io authorized to work collaboratively with
71 private businesses 7 and -t-e receive staffing support and other
72 resources from, Enterprise Florida, Inc., state agencies, local
73 governments, private buoineooeo, and community organizations~
74 te-t-
75 ( 4) FLORIDA OFFICE OF BROADBAND.-The Florida Office of

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hb0969-01-c1
FLORIDA H O U S E 0 F REPRESENTATIVES

CS/HB 969 2020

76 Broadband is created within the Division of Community
77 Development in the department for the purpose of developing,
78 marketing, and promoting broadband Internet services in the
79 state. The office, in the performance of its duties, shall do
80 all of the following:
81 (a) Monitor the adoption of broadband Internet service in
82 collaboration with coffiffiunications service providers, including,
83 but not limited to, wireless and wireline Internet service
84 providers, to develop geographical information system maps at
85 the census tract level that ·.vill:
86 1. Identify geographic gaps in broadband services,
87 including areas unserved by any broadband provider and areas
88 served by a single broadband provider;
89 2. Identify the download and upload transmission speeds
90 made available to businesses and individuals in the state, at
91 the census tract level of detail, using data rate benchmarks for
92 broadband service used by the Federal Coffiffiunications Coffiffiission
93 to reflect different speed tiers; and
94 3. Provide a baseline assessment of statewide broadband
95 deployment in terms of percentage of households with broadband
96 availability.
97 -ts+ Create a strategic plan that has goals and strategies
98 for increasing the use of broadband Internet service in the
99 state. The plan must include a process to review and verify
100 public input regarding transmission speeds and availability of

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hb0969-01-c1
FLORIDA H O U S E 0 F REPRESENTATIVES

CS/HB 969 2020

101 broadband Internet service throughout the state.
102 lel_-tet Build and facilitate local technology planning
103 teams or partnerships with members representing cross-sections
104 of the community, which may include, but are not limited to,
105 representatives from the following organizations and industries:
106 libraries, K-12 education, colleges and universities, local
107 health care providers, private businesses, community
108 organizations, economic development organizations, local
109 governments, tourism, parks and recreation, and agriculture.
110 ~+a+ Encourage the use of broadband Internet service,
111 especially in the rural, unserved, or ttfte:--underserved
112 communities of the state through grant programs having effective
113 strategies to facilitate the statewide deployment of broadband
114 Internet service. For any grants to be awarded, priority must be
115 given to projects that:
116 1. Provide access to broadband education, awareness,
117 training, access, equipment, and support to libraries, schools,
118 colleges and universities, health care providers, and community
119 support organizations.
120 2. Encourage the sustainable adoption of broadband in
121 primarily underserved unserved areas by removing barriers to
122 entry.
123 3. Work toward encouraging investments in establishing
124 affordable and sustainable broadband Internet service in
125 underserved unserved areas of the state.

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hb0969-01-c1
FLORIDA H O U S E 0 F REPRESENTATIVES

CS/HB 969 2020

126 4. Facilitate the development of applications, programs,
127 and services, including, but not limited to, telework,
128 telemedicine, and e-learning to increase the usage of, and
129 demand for, broadband Internet service in the state.
130 (d) Monitor, participate in, and provide input in
131 proceedings of the Federal Communications Commission and other
132 federal agencies related to the geographic availability and
133 deployment of broadband Internet service in the state as
134 necessary to ensure that this information is accurately
135 presented and that rural, unserved, and underserved areas of the
136 state are best positioned to benefit from federal and state
137 broadband deployment programs.
138 l2.l_+3+ ADMINISTRATION.-The department may~
139 J...§.1 Apply for and accept federal funds for purposes of
140 this section, as well as gifts and donations from individuals,
141 foundations, and private organizations.
142 J..!21(4) The department may Enter into contracts necessary
143 or useful to carry out the purposes of this section.
144 The department may Establish any committee or
145 workgroup to administer and carry out the purposes of this
146 section.
147 Section 3. Chapter 2012-131, Laws of Florida, is repealed.
148 Section 4. This act shall take effect July 1, 2020.

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HOUSE OF REPRESENTATIVES STAFF ANALYSIS
BILL #: CS/HB 1077 Department of Financial Services
SPONSOR(S): Insurance & Banking Subcommittee, LaMarca
TIED BILLS: IDEN./SIM. BILLS: SB 1404

REFERENCE ACTION ANALYST STAFF DIRECTOR or
BUDGET/POLICY CHIEF

1) Insurance & Banking Subcommittee 12 Y, 0 N, As CS Salter Cooper

2) Commerce Committee Salter Hamon

SUMMARY ANALYSIS
The bill modifies several areas regulated by the Department of Financial Services (DFS}, including:

• Division of Public Assistance Fraud (DPAF): Current law does not list DPAF as a criminal justice agency.
The bill establishes DPAF as a criminal justice agency, allowing proper execution of fighting public
assistance fraud.
• Board of Funeral, Cemetery, and Consumer Services: Currently, the Chief Financial Officer of DFS is
required to nominate three members per vacant position on the Board, and requires six voting members for
a quorum. The bill requires only one nomination per vacancy and changes the definition of a quorum. The
bill also removes unnecessary member staggering requirements and provides clarification regarding other
board member requirements.
• Disqualification and Penalties of Applicants and Licensees: Current law lacks a provision under which a
person can be disqualified for licensure based on a criminal record. The bill creates a permanent bar to
licensure based on certain crimes and disqualifying periods for various felonies and misdemeanors.
• Violations by Unlicensed Persons: Current law does not specify activity prohibited without a license
under ch. 497, F.S. The bill prohibits specific unlicensed activity and changes the penalty for unlicensed
funeral activity from a second-degree misdemeanor to a third-degree felony.
• Explosives: A two-component explosive is currently defined as having a detonator that is a No.6 blasting
cap. The bill changes this distinction to "any detonator" to fall in line with current practice.
• Uniform Fire Alarm Permit Application: Under current law, contractors are required to apply for, and
receive, a permit prior to installing, replacing, or repairing a fire alarm system. The bill expedites repairs of
systems that have previously been permitted by the local enforcement agency by allowing repair to begin
after filing an application. Contractors would not have to wait to receive the permit, although the permit and
approval from the local enforcement agency is still required to ensure compliance.
• Influencing a Firesafety Inspector: The bill prohibits any person from influencing a firesafety inspector
into violating the Fire Prevention Code, rules adopted by the State Fire Marshal, or any provision of ch.
631, F.S., or from offering compensation related to such violations. It also prohibits a firesafety inspector
from knowingly accepting an attempt to improperly influence the performance of his or her duties.
• Volunteer Firefighter Service: Currently, a volunteer firefighter who is transitioning to become a career
firefighter is prohibited from entering immediately dangerous to life and health environments. The bill allows
the transitioning firefighter to act in the same capacity as when they were a volunteer firefighter, as long as
they are under supervision of a career firefighter and the period of transition does not go beyond one year.
• False Personation: Current law prohibits impersonation of an officer of DFS and a fire or arson investigator
of DFS. The bill adds language to include any personnel or representative of the Division of Investigative
and Forensic Services.

The bill has no fiscal impact on state or local government revenue or expenditures. It has no known positive or
negative economic impacts on the private sector.

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

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

I. SUBSTANTIVE ANALYSIS

A EFFECT OF PROPOSED CHANGES:
The Department of Financial Services (DFS) is composed of 13 divisions and one independent office.
They are the Divisions of:
• Accounting and Auditing;
• Consumer Services;
• Funeral, Cemetery, and Consumer Services;
• Insurance Agent and Agency Services;
• Investigative and Forensic Services (DIFS);
• Public Assistance Fraud (DPAF);
• Rehabilitation and Liquidation;
• Risk Management;
• State Fire Marshal;
• Treasury;
• Unclaimed Property;
• Workers' Compensation;
• Administration; and the
• Office of Insurance Consumer Advocate.

Division of Public Assistance Fraud

When DIFS was created in 2016, DPAF was not designated as a criminal justice agency, limiting
access to information within criminal records systems. Under current law, "criminal justice agency"
means a court, 1 the Department of Law Enforcement,2 the Department of Juvenile Justice, 3 the
protective investigations component of the Department of Children and Families, which investigates
the crimes of abuse and neglect, 4 and any other governmental agency or subunit thereof that performs
the administration of criminal justice pursuant to a statute or rule of court and that allocates a
substantial part of its annual budget to the administration of criminal justice. 5 DPAF currently operates,
in part, as a criminal justice agency. However, current statute does not appropriately reflect this.

Effect of the Bill

The bill establishes DPAF as a criminal justice agency, permitting broader access to criminal records.
The effect of this change should improve the department's investigation and enforcement capabilities.

Board of Funeral, Cemetery, and Consumer Services

The Board of Funeral, Cemetery, and Consumer Services (The Board) consists of ten members, nine
of which are nominated by the Chief Financial Officer (CFO), confirmed by the Senate, and appointed
by the Governor. 6 The tenth member is the State Health Officer or his or her designee. 7 Currently, the
CFO is required to nominate three persons for each vacancy on the board. Often times, the CFO does
not receive three or more applications for any given vacancy. Additionally, one Board member must be

1
S. 943.045 (11 )(a), F.S.
2 S. 943.045 (11 )(b), F.S.
3
S. 943.045 (11 )(c), F.S.
4
S. 943.045 (11 )(d), F.S.
5 S. 943.045 (11 )(e), F.S.
6 S. 497.101 (1), F.S.
7 Id.

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a Certified Public Accountant (CPA) not affiliated with the death care industry. This position has been
vacant since September 2017. 8

In order for the Board to conduct business, a quorum must be present. A quorum currently means the
presence of six board members. A quorum has proved difficult to meet due to vacant positions,
member absences, and member recusals. Current law requires staggered appointments of initial Board
members. DFS is required to adopt rules establishing forms and procedures for application for
membership on the Board.

Effect of the Bill

The bill amends the requirement of three nominees per vacancy to an option of one to three
nominations. Two members, instead of three, would still be required to be residents of the state, to
have never been licensed as funeral directors or embalmers, and to have no connection to the death
care industry. The CPA qualification of having never been licensed as a funeral director or embalmer
remains, while the CPA would be allowed to be associated with the death care industry.

The bill also removes the provision requiring staggered appointments following expiration of the terms
of initial board members. Because staggered terms are already in effect, the provision no longer is
necessary. The bill eliminates the delegated rulemaking authority to DFS for establishing forms by
which persons can apply for membership. Because the Governor makes the appointments, that
delegation is unnecessary.

Disqualification and Penalties of Applicants and Licensees

Individuals, or the individual on behalf of an entity, applying for licensure or relicensure under ch. 497,
F.S., must disclose their criminal records in accordance withs. 497.412, F.S. Applicants must disclose
any felony or misdemeanor directly or indirectly relating to the death care industry, no matter when it
was committed. 9 Felonies unrelated to the death care industry and committed within the 20 years
immediately preceding the application under ch. 497, F.S., must be disclosed. 10 Misdemeanors
unrelated to the death care industry and committed within the five years immediately preceding the
application under ch. 497, F.S., must also be disclosed. 11 Chapter 497, F.S., currently lacks any ability
to disqualify an application for licensure on the basis of an applicant's criminal record.

Effect of the Bill

The bill creates a permanent bar from licensure under certain circumstances. An applicant can be
permanently barred from licensure under ch. 497, F.S., if the applicant has been found guilty of or has
pleaded guilty or nolo contendere 12 to any of the following, regardless of adjudication:
(a) A felony of the first degree,
(b) A capital felony,
(c) A felony money laundering offense, or
(d) A felony embezzlement.

The bill also creates disqualification periods for various felonies and misdemeanors. All felonies
involving moral turpitude 13 that do not fall under the permanent bar are subject to a ten-year
disqualifying period. All felonies that do not fall under the permanent bar and that do not involve moral

8
Department of Financial Services, Agency Analysis of House Bill 1077, p.2 (Jan. 14, 2020).
9 S. 497.412(10)(c)1., F.S.

10 S. 497.412(10)(c)2., F.S.
11 S. 497.412(10)(c)3., F.S.
12 A nolo contendere plea is a plea by which a defendant in a criminal prosecution accepts conviction but does not plead

or admit guilt. Lexico English Dictionary, https://www.lexico.com/definition/nolo contendere (last visited Feb. 10, 2020).
13
"A crime involves moral turpitude if it is an act of baseness, vileness, or depravity in the private and social duties which
a person owes to others and to society in general." 16 Fla. Jur. 2d Criminal Law- Substantive Principles/Offenses §6.
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turpitude are subject to a five-year disqualifying period. All misdemeanors directly related to the
financial services business 14 are subject to a five-year disqualifying period. A disqualifying period
begins upon an applicant's final release from criminal supervision or upon completion of a criminal
sentence. A license may not be issued until all related fines, court costs & fees, and court-ordered
restitution have been paid.

Once a disqualifying period has elapsed, the applicant carries the burden of showing that they have
been rehabilitated, they do not pose a risk to the public, they are fit and trustworthy to engage in
business regulated by ch. 497, F.S., and they are otherwise qualified. A grant of a pardon or the
restoration of civil rights pursuant to ch. 940, F.S., ands. 8 Art. IV of the State Constitution, with respect
to a finding of guilt or a plea does not bar an applicant from licensure. 15

The bill gives rulemaking authority to the DFS for purposes of implementation. The rules must include
additional disqualifying periods upon a finding of the commitment of multiple crimes, and may include
other factors reasonably related to the applicant's criminal history. 16 The rules must provide for
mitigating and aggravating factors. Mitigating factors must not result in a disqualifying period of less
than five years. Mitigating factors will not apply to the five year disqualifying period for all felonies
unrelated to both the death care industry and moral turpitude or the five year disqualifying period for all
misdemeanors directly related to the financial services business.

The Board may grant an exemption from disqualification due to an applicant's criminal record if the
applicant has paid in full any fee, fine, fund, lien, civil judgment, restitution, or cost of prosecution
imposed by the court as part of a judgment and sentence relating to the disqualifying offense.
Additionally, five years must have elapsed since the applicant has completed or been lawfully released
from confinement, supervision, or nonmonetary condition imposed by a court for the disqualifying
offense. In order for the Board to grant an exemption, an applicant must clearly and convincingly
demonstrate that he or she would not pose a risk to persons or property if granted a license under ch.
497, F.S.

Evidence presented to the Board by an applicant for a potential exemption must include the following:
1. Facts and circumstances surrounding the disqualifying offense,
2. The time that has elapsed since the offense,
3. The nature of the offense and the harm caused to the victim(s),
4. The applicant's history before and after the offense, and
5. Any other evidence or circumstances indicating that the applicant will not present a danger
if licensed or certified.
The Board holds discretion whether to grant or deny an exemption. The Board's decision is subject to
ch. 120, F.S., the Administrative Procedure Act. A formal proceeding under s. 120.57(1) 17 is available
to an applicant only if the applicant disputes material facts that the OLE relied upon in order to reach a
decision.

Violations by Unlicensed Persons

Chapter 497, F.S., requires a license for specific death care industry practices, although it does not
include specific examples of what is considered a licensed or unlicensed practice. Current law provides
a penalty of a second-degree misdemeanor for individuals who engage in activity requiring licensure
without possessing a license. 18

14
The bill defines financial services business as "any financial activity regulated by the Department of Financial Services,
the Office of Insurance Regulation, or the Office of Financial Regulation."
15 See drafting comments.
16 See drafting comments.
17
This section lays out additional procedures applicable to hearings involving disputed issues of material fact under the
Administrative Procedure Act.
1a S. 497.159(6), F.S.
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Effect of the Bill

The bill specifies that a person may not be, act as, or advertise himself or herself to be a funeral
director, embalmer, or direct disposer unless he or she is licensed by DFS. The bill also specifies that
a person may not be, act as, or advertise himself or herself as a preneed 19 sales agent unless
currently licensed by DFS and is appointed by a preneed main licensee, for whom they are executing
preneed contracts. Any violation of these newly created subsections would result in a felony of the
third degree, punishable as provided in s. 775.082, s. 775.083, ors. 775.084, F.S.

Explosives

Chapter 552, F.S., addresses the manufacture, distribution, and use of explosives, which are
regulated by the State Fire Marshal. The current definition of a two-component explosive requires
detonation to be triggered by a No. 6 blasting cap. This specific blasting cap has gone out of
production and current blasting caps do not fall under the same rating system. Current blasting caps
fall outside of this definition and therefore are not effectively regulated.

Effect of the Bill

The bill removes the No. 6 blasting cap specification and changes it to any detonator. The amendment
to this subsection brings the language in line with current practices.

Uniform Fire Alarm Permit Application

Contractors can work on installing or repairing a fire alarm system only after receiving a permit. Local
enforcement agencies often require a plan review for installation or replacement. If a plan review is
required, a contractor must file a Uniform Fire Alarm Permit Application with the local enforcement
agency and receive the permit prior to installing or replacing a fire alarm. If the local enforcement
agency requires a fire alarm permit for a repair to an existing alarm system previously permitted by the
local enforcement agency, a contractor must receive the permit prior to repairing the system.

Effect of the Bill

The bill allows a contractor to begin a repair after filing the application instead of waiting for the permit
to be received. However, this change only applies if the local enforcement agency requires a permit to
repair an existing alarm system that was previously permitted by the agency. If a contractor begins the
repair prior to receiving the permit, the repaired fire alarm will not be compliant with the local
enforcement agency until the permit is issued and the agency has approved the repair. This allows
repairs to be completed in a more efficient manner.

Influencing a Firesafety Inspector

If the State Fire Marshal (SFM) finds a violation of ch. 633, F.S., or a violation of any rule or order of
the SFM, the SFM has the authority to deny, refuse to renew, suspend, or revoke the certificate of a
firesafety inspector. 20 In addition, any person who violates a provision of ch. 633, F.S., or any order or
rule of the SFM commits a misdemeanor of the second degree. 21

19 Preneed contract means "any arrangement or method, of which the provider of funeral merchandise or services has

actual knowledge, whereby any person agrees to furnish funeral merchandise or service in the future." S. 497.005 (61 ),
F.S.
20 S. 633.216 (6)(b), F.S.

2 1 S. 633.124 (1), F.S.
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Effect of the Bill

The bill prohibits any person from influencing a firesafety inspector by threatening, coercing, tricking,
or attempting to threaten, coerce, or trick a firesafety inspector into violating the Florida Fire
Prevention Code, rules adopted by the SFM, or any provision of ch. 633, F.S. It also prohibits any
person from offering compensation to a firesafety inspector related to committing such violations.
Additionally, the bill prohibits a firesafety inspector from knowingly and willfully accepting an attempt to
improperly influence the performance of his or her duties. A violation by a firesafety inspector of this
new provision allows the SFM to deny, refuse to renew, suspend, or revoke a firesafety inspector's
certificate. 22 Moreover, any person who violates the bill's provisions commits a misdemeanor of the
second degree. 23

Volunteer Firefighter Service

Volunteer firefighters are required to obtain a Firefighter Certificate of Completion through training.
With this certificate, they can enter into immediately dangerous to life and health (IDLH) environments,
just as career firefighters can. Volunteer firefighters can become career firefighters, if they complete a
Certificate of Compliance. Currently, if a volunteer firefighter chooses to become a career firefighter,
he or she is no longer able to enter an IDLH environment while completing the Certificate of
Compliance.

Effect of the Bill

The bill allows volunteer firefighters who are in transition to become career firefighters to function in
the same capacity in which they acted as volunteer firefighters. The period for which they remain
volunteers cannot extend beyond one year, collectively or consecutively. A volunteer firefighter in
transition must hold a Certificate of Completion with a fire service provider and subsequently be
employed as a regular or permanent firefighter. The volunteer firefighter in transition must be under
the direct supervision of an individual holding a valid firefighter Certificate of Compliance. This allows
Fire Service Providers to transition qualified personnel from volunteer to career status without stripping
their ability to perform.

False Personation

Section 843.08, F.S., lays out the penalties for false personation (impersonation), which is treated as
an obstruction of justice, a third-degree felony. If the impersonation is committed with another felony, it
is considered a second-degree felony. If it is committed and causes death or personal injury to another
individual, it is considered a first-degree felony. Current law prohibits impersonation of a fire or arson
investigator of DFS and any officer of DFS but does not address officers of DIFS.

Effect of the Bill

The bill would take out the specificity of a fire or arson investigator of DFS and instead add "any
personnel or representative of the Division of Investigative and Forensic Services," making the specific
protection broader. This change makes it a felony to impersonate any DIFS personnel and any DFS
officer.

B. SECTION DIRECTORY:
Section 1: Amends s. 20.121, F.S., relating to the Department of Financial Services.

Section 2: Amends s. 497.101, F.S., relating to the Board of Funeral, Cemetery, and Consumer
Services; membership; appointment; terms.

22 S. 633.216 (6)(b), F.S.
23 S. 633.124 (1), F.S.
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Section 3: Creates s. 497.1411, F.S., relating to disqualification of applicants and licensees; penalties
against licensees; rulemaking.

Section 4: Amends s. 497.157, F.S., relating to unlicensed practice; remedies concerning violations by
unlicensed persons.

Section 5: Amends s. 552.081, F.S., relating to definitions.

Section 6: Amends s. 553.7921, F.S., relating to fire alarm permit application to local enforcement
agency.

Section 7: Creates s. 633.217, F.S., relating to influencing a firesafety inspector; prohibited acts.

Section 8: Amends s. 633.416, F.S., relating to firefighter employment and volunteer firefighter service;
saving clause.

Section 9: Amends s. 843.08, F.S., relating to false personation.

Section 10: Amends s. 943.045, F.S., relating to definitions.

Section 11: Provides an effective date of July 1, 2020.

II. FISCAL ANALYSIS & ECONOMIC IMPACT STATEMENT

A. FISCAL IMPACT ON STATE GOVERNMENT:

1. Revenues:
None.

2. Expenditures:
None.

B. FISCAL IMPACT ON LOCAL GOVERNMENTS:

1. Revenues:
None.

2. Expenditures:
None.

C. DIRECT ECONOMIC IMPACT ON PRIVATE SECTOR:
None.

D. FISCAL COMMENTS:
None.

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Ill. COMMENTS

A. CONSTITUTIONAL ISSUES:

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

2. Other:
None.

B. RULE-MAKING AUTHORITY:
The DFS is directed to adopt rules to: 24
• Administers. 497.1411, F.S.;
• Provide for additional disqualifying periods due to commitment of multiple crimes, which may
include other factors reasonably related to the applicant's criminal history; and
• Provide for mitigating and aggravation factors.

C. DRAFTING ISSUES OR OTHER COMMENTS:
Pardon (lines 218-220): The language of the bill makes it seem as if a pardon is currently a reason for
a permanent bar or a period of disqualification. However, the DFS analysis points out that a grant,
pardon, or restoration of civil rights for a crime delineated by the section results in the crime not being
a bar to licensure. 25 It is recommended than an amendment be added to reconcile this gap in the
language and the analysis.

Rulemaking Authority (lines 193-200): The bill allocates rulemaking authority to DFS in relation to
barring or disqualifying licensure. Current law vests sole authority in the Board to determine any and
all criteria for licensure, 26 and to renew and decline to renew licenses under ch. 497, F.S. 27 Both
paragraphs include rulemaking authority, therefore there appears to be a conflict with the delegation to
DFS. 28

Administrative Procedures Act (lines 246-250): Chapter 120, F.S., the Administrative Procedures
Act, allows for a formal proceeding when an applicant disputes the material facts that an agency or
board relies upon to make a licensure decision. This chapter already applies to licensure decisions by
the Board. Therefore, the bill language establishing the right to a formal hearing appears unnecessary.

IV. AMENDMENTS/ COMMITTEE SUBSTITUTE CHANGES
On January 21, 2020, the Insurance & Banking Subcommittee adopted one amendment and reported the
bill favorably as a committee substitute. The amendment created s. 633.217, F.S., relating to firesafety
inspectors, to prohibit:

• Any person from influencing a firesafety inspector by threatening, coercing, tricking, or attempting to
threaten, coerce, or trick, a firesafety inspector into violating, or offering to compensate the firesafety

24 See drafting comments.
25
Department of Financial Services, Agency Analysis of House Bill 1077, p.4 (Jan. 14, 2020).
2s S. 497.103 (1)(a), F.S.
21 S. 497.103 (1 )(k), F.S.,
28 While the Board is housed in DFS, they have independent authority.
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inspector to induce a violation of, any provision of the Florida Fire Prevention Code, a rule adopted by
the State Fire Marshal, or ch. 633, F.S.
• A firesafety inspector from knowingly and willfully accepting an attempt by a person to influence the
firesafety inspector into violating any provision of the Florida Fire Prevention Code, any rule adopted by
the State Fire Marshal, or any provision of ch. 633, F.S.

The staff analysis has been updated to reflect the committee substitute.

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

CS/HB 1077 2020

1 A bill to be entitled
2 An act relating to the Department of Financial
3 Services; amending s. 20.121, F.S.; specifying powers
4 and duties of the Division of Public Assistance Fraud;
5 amending s. 497.101, F.S.; revising provisions
6 relating to membership of the Board of Funeral,
7 Cemetery, and Consumer Services; creating s. 497.1411,
8 F.S.; providing definitions; providing for permanent
9 disqualification of applicants for licensure under
10 chapter 497, F.S., upon conviction of certain
11 offenses; providing for disqualifying periods for such
12 applicants who have been convicted of certain
13 offenses; requiring rulemaking; providing for
14 calculation of disqualifying periods; providing for
15 applicants to show rehabilitation after completion of
16 a disqualifying period; providing for the effect of a
17 pardon or clemency; providing for exemptions from
18 disqualification in certain circumstances; providing
19 procedures for consideration of applications for such
20 exemptions; amending s. 497.157, F.S.; prohibiting
21 persons from acting as or advertising themselves as
22 being certain persons unless they are so licensed;
23 prohibiting persons from engaging in certain
24 activities requiring licensure without holding
25 required licenses; providing criminal penalties;

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26 amending s. 552.081, F.S.; revising the definition of
27 two-component explosives for the purpose of regulation
28 by the Division of State Fire Marshal; amending s.
29 553.7921, F.S.; revising requirements for repair of an
30 existing alarm system that was previously permitted by
31 a local enforcement agency; creating s. 633.217, F.S.;
32 prohibiting certain actions to influence a firesafety
33 inspector into violating certain provisions;
34 prohibiting a firesafety inspector from knowingly and
35 willfully accepting an attempt to influence the
36 firesafety inspector into violating certain
37 provisions; amending s. 633.416, F.S.; providing that
38 certain persons serving as volunteer firefighters may
39 serve as a regular or permanent firefighter for a
40 limited period subject to certain restrictions;
41 amending s. 843.08, F.S.; prohibiting false
42 personation of personnel or representatives of the
43 Division of Investigative and Forensic Services;
44 providing criminal penalties; amending s. 943.045,
45 F.S.; providing the investigations component of the
46 Department of Financial Services is a criminal justice
47 agency for specified purposes; providing an effective
48 date.
49
50 Be It Enacted by the Legislature of the State of Florida:

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51
52 Section 1. Paragraph (f) of subsection (2) of section
53 20.121, Florida Statutes, is amended to read:
54 20.121 Department of Financial Services.-There is created
55 a Department of Financial Services.
56 (2) DIVISIONS.-The Department of Financial Services shall
57 consist of the following divisions and office:
58 (f) The Division of Public Assistance Fraud, which shall
59 function as a criminal justice agency for purposes of ss.
60 943.045-943.08. The division shall conduct investigations
61 pursuant to s. 414.411 within or outside of this state as it
62 deems necessary. If, during an investigation, the division has
63 reason to believe that any criminal law of this state has or may
64 have been violated, it shall refer any records tending to show
65 such violation to state or federal law enforcement or
66 prosecutorial agencies and shall provide investigative
67 assistance to those agencies as required.
68 Section 2. Subsections (1), (2), (3), (6), and (8) of
69 section 497.101, Florida Statutes, are amended to read:
70 497.101 Board of Funeral, Cemetery, and Consumer Services;
71 membership; appointment; terms.-
72 (1) The Board of Funeral, Cemetery, and Consumer Services
73 is created within the Department of Financial Services and shall
74 consist of 10 members, 9 of whom shall be appointed by the
75 Governor from nominations made by the Chief Financial Officer

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76 and confirmed by the Senate. The Chief Financial Officer shall
77 nominate one to three persons for each of the nine vacancies on
78 the board, and the Governor shall fill each vacancy on the board
79 by appointing one of the three persons nominated by the Chief
80 Financial Officer to fill that vacancy. If the Governor objects
81 to each of the three nominations for a vacancy, she or he shall
82 inform the Chief Financial Officer in writing. Upon notification
83 of an objection by the Governor, the Chief Financial Officer
84 shall submit one to three additional nominations for that
85 vacancy until the vacancy is filled. One member must be the
86 State Health Officer or her or his designee.
87 (2) Two members of the board shall be funeral directors
88 licensed under part III of this chapter who are associated with
89 a funeral establishment. One member of the board shall be a
90 funeral director licensed under part III of this chapter who is
91 associated with a funeral establishment licensed under part III
92 of this chapter that has a valid preneed license issued pursuant
93 to this chapter and who owns or operates a cinerator facility
94 approved under chapter 403 and licensed under part VI of this
95 chapter. Two members of the board shall be persons whose primary
96 occupation is associated with a cemetery company licensed
97 pursuant to this chapter. Two Three members of the board shall
98 be consumers who are residents of the state, have never been
99 licensed as funeral directors or embalmers, are not connected
100 with a cemetery or cemetery company licensed pursuant to this

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101 chapter, and are not connected with the death care industry or
102 the practice of embalming, funeral directing, or direct
103 disposition. One of the two consumer members shall be at least
104 60 years of age, and one shall be licensed as a certified public
105 accountant under chapter 473. One member of the board shall be a
106 consumer who is a resident of this state; licensed as a
107 certified public accountant under chapter 473; has never been
108 licensed as a funeral director or embalmer; is not a principal
109 or employee of any licensee licensed under this chapter; and
110 does not otherwise have control, as defined ins. 497.005, over
111 any licensee licensed under this chapter. One member of the
112 board shall be a principal of a monument establishment licensed
113 under this chapter as a monument builder. One member shall be
114 the State Health Officer or her or his designee. There shall not
115 be two or more board members who are principals or employees of
116 the same company or partnership or group of companies or
117 partnerships under common control.
118 (3) Board members shall be appointed for terms of 4 years,
119 and the State Health Officer shall serve as long as that person
120 holds that office. The designee of the State Health Officer
121 shall serve at the pleasure of the Governor. When the terffis of
122 the initial board ffieffibers e1cpire, the Chief Financial Officer
123 shall stagger the terffis of the successor ffieffibers as follows: one
124 funeral director, one ceffietery representative, the ffiOn'dl'Ptent
125 builder, and one consufficr member shall be appointed for terms of

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126 2 years, and the remaining members shall be appointed for terms
127 of 4 years. All subsequent terms shall be for 4 years.
128 (6) The headquarters and records of the board shall be in
129 the Division of Funeral, Cemetery, and Consumer Services of the
130 Department of Financial Services in the City of Tallahassee. The
131 board may be contacted through the Division of Funeral,
132 Cemetery, and Consumer Services of the Department of Financial
133 Services in the City of Tallahassee. The Chief Financial Officer
134 shall annually appoint from among the board members a chair and
135 vice chair of the board. The board shall meet at least every 6
136 months, and more often as necessary. Special meetings of the
137 board shall be convened upon the direction of the Chief
138 Financial Officer. A quorum is necessary for the conduct of
139 business by the board. Unless otherwise provided by law, a
140 majority of the board members eligible to vote shall constitute
141 a quorum for the purpose of conducting its business siJf board
142 members shall constitute a quorum for the conduct of the board's
143 business.
144 ( 8) The department shall adopt rules establishing forms by
145 which persons may apply for membership on the board and
146 procedures for applying for such membership. Such forms shall
147 require disclosure of the eJcistence and nature of all current
148 and past employments by or contracts with, and direct or
149 indirect affiliations or interests in, any entity or business
150 that at any time was licensed by the board or by the former

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151 Board of Funeral and Cemetery Services or the former Board of
152 Funeral Directors and Embalmers or that is or was otherwise
153 involved in the death care industry, as specified by department
154 rule.
155 Section 3. Section 497.1411, Florida Statutes, is created
156 to read:
157 497.1411 Disqualification of applicants and licensees;
158 penalties against licensees; rulemaking.-
159 (1) For purposes of this section, the term:
160 (a) "Applicant" means an individual applying for licensure
161 or relicensure under this chapter, and an officer, director,
162 majority owner, partner, manager, or other person who manages or
163 controls an entity applying for licensure or relicensure under
164 this chapter.
165 (b) "Felony of the first degree" and "capital felony"
166 include all felonies designated as such in this state, at the
167 time of the commission of the offense, as well as any offense in
168 another jurisdiction that is substantially similar to an offense
169 so designated in this state.
170 ( c) "Financial services business" means any financial
171 activity regulated by the Department of Financial Services, the
172 Office of Insurance Regulation, or the Office of Financial
173 Regulation.
174 (2) An applicant who has been found guilty of or has
175 pleaded guilty or nolo contendere to any of the following

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176 crimes, regardless of adjudication, is permanently barred from
177 licensure under this chapter:
178 (a) A felony of the first degree.
179 (b) A capital felony.
180 (c) A felony money laundering offense.
181 (d) A felony embezzlement.
182 (3) An applicant who has been found guilty of or has
183 pleaded guilty or nolo contendere to a crime not included in
184 subsection (2), regardless of adjudication, is subject to:
185 (a) A 10-year disqualifying period for all felonies
186 involving moral turpitude that are not specifically included in
187 the permanent bar contained in subsection (2).
188 (b) A 5-year disqualifying period for all felonies to
189 which neither the permanent bar in subsection (2) nor the 10-
190 year disqualifying period in paragraph (a) applies.
191 (c) A 5-year disqualifying period for all misdemeanors
192 directly related to the financial services business.
193 (4) The department shall adopt rules to administer this
194 section. The rules must provide for additional disqualifying
195 periods due to the commitment of multiple crimes and may include
196 other factors reasonably related to the applicant's criminal
197 history. The rules shall provide for mitigating and aggravating
198 factors. However, mitigation may not result in a period of
199 disqualification of less than 5 years and may not mitigate the
200 disqualifying periods in paragraphs (3) (b) and (c).

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201 (5) For purposes of this section, a disqualifying period
202 begins upon the applicant's final release from supervision or
203 upon completion of the applicant's criminal sentence. The
204 department may not issue a license to an applicant unless all
205 related fines, court costs and fees, and court-ordered
206 restitution have been paid.
207 (6) After the disqualifying period has expired, the burden
208 is on the applicant to demonstrate that he or she has been
209 rehabilitated, does not pose a risk to the public, is fit and
210 trustworthy to engage in business regulated by this chapter, and
211 is otherwise qualified for licensure.
212 (7) Notwithstanding subsections (2) and (3), upon a grant
213 of a pardon or the restoration of civil rights pursuant to
214 chapter 940 ands. 8, Art. IV of the State Constitution with
215 respect to a finding of guilt or a plea under subsection (2) or
216 subsection (3), or such pardon or the restoration of civil
217 rights under the laws of another jurisdiction with respect to a
218 conviction in that jurisdiction, such finding or plea no longer
219 bars or disqualifies the applicant from licensure under this
220 chapter; however, such a pardon or restoration of civil rights
221 does not require the department to award such license.
222 ( 8) (a) The Board of Funeral, Cemetery, and Consumer
223 Services may grant an exemption from disqualification to any
224 person disqualified from licensure under this section because of
225 a criminal record if:

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226 1. The applicant has paid in full any fee, fine, fund,
227 lien, civil judgment, restitution, or cost of prosecution
228 imposed by the court as part of the judgment and sentence for
229 any disqualifying offense; and
230 2. At least 5 years have elapsed since the applicant
231 completed or has been lawfully released from confinement,
232 supervision, or nonmonetary condition imposed by the court for a
233 disqualifying offense.
234 (b) For the board to grant an exemption under this
235 subsection, the applicant must clearly and convincingly
236 demonstrate that he or she would not pose a risk to persons or
237 property if licensed under this chapter, evidence of which must
238 include, but need not be limited to, facts and circumstances
239 surrounding the disqualifying offense, the time that has elapsed
240 since the offense, the nature of the offense and harm caused to
241 the victim, the applicant's history before and after the
242 offense, and any other evidence or circumstances indicating that
243 the applicant will not present a danger if licensed or
244 certified.
245 (c) The board has discretion whether to grant or deny an
246 exemption under this subsection. The board's decision is subject
247 to chapter 120, except that a formal proceeding under s.
248 120.57(1) is available only if there are disputed issues of
249 material fact that the department relied upon in reaching its
250 decision.

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251 Section 4. Subsections (2) through (5) of section 497.157,
252 Florida Statutes, are renumbered as subsections (4) through (7),
253 respectively, new subsections (2), (3) and (8) are added to that
254 section, and present subsection (3) is amended, to read:
255 497.157 Unlicensed practice; remedies concerning
256 violations by unlicensed persons.-
257 (2) A person may not be, act as, or advertise or hold
258 himself or herself out to be a funeral director, embalmer, or
259 direct disposer, unless he or she is currently licensed by the
260 department.
261 (3) A person may not be, act as, or advertise or hold
262 himself or herself out to be a preneed sales agent unless he or
263 she is currently licensed by the department and appointed by a
264 preneed main licensee for which they are executing preneed
265 contracts.
266 J..21+3+ Where the department determines that an emergency
2 67 exists regarding any violation of this chapter by any unlicensed
2 68 person or entity, the department may issue and serve an
269 immediate final order upon such unlicensed person or entity, in
270 accordance withs. 120.569(2) (n). Such an immediate final order
271 may impose such prohibitions and requirements as are reasonably
272 necessary to protect the public health, safety, and welfare, and
273 shall be effective when served.
274 (a) For the purpose of enforcing such an immediate final
275 order, the department may file an emergency or other proceeding

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276 in the circuit courts of the state seeking enforcement of the
277 immediate final order by injunctive or other order of the court.
278 The court shall issue its injunction or other order enforcing
279 the immediate final order pending administrative resolution of
280 the matter under subsection J..il-R-+-, unless the court determines
281 that such action would work a manifest injustice under the
282 circumstances. Venue for judicial actions under this paragraph
283 shall be, at the election of the department, in the courts of
284 Leon County, or in a county where the respondent resides or has
285 a place of business.
286 (b) After serving an immediate final order to cease and
287 desist upon any person or entity, the department shall within 10
288 days issue and serve upon the same person or entity an
289 administrative complaint as set forth in subsection lil_-R-+-,
290 except that, absent order of a court to the contrary, the
291 immediate final order shall be effective throughout the pendency
292 of proceedings under subsection (4)-R-+-.
293 (8) Any person who is not licensed under this chapter and
294 who engages in activity requiring licensure under this chapter
295 commits a felony of the third degree, punishable as provided in
296 s. 7 7 5. 0 8 2, s. 7 7 5. 0 8 3, or s. 7 7 5. 0 8 4.
297 Section 5. Subsection (13) of section 552.081, Florida
298 Statutes, is amended to read:
299 552.081 Definitions.-As used in this chapter:
300 (13) "Two-component explosives" means any two inert

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301 components which, when mixed, become capable of detonation by
302 any detonator a No. 6 blasting cap, and shall be classified as a
303 Class "A" explosive when so mixed.
304 Section 6. Subsection (2) of section 553.7921, Florida
305 Statutes, is renumbered as subsection (3), subsection (1) of
306 that section is amended, and a new subsection (2) is added to
307 that section, to read:
308 553.7921 Fire alarm permit application to local
309 enforcement agency.-
310 (1) A contractor must file a Uniform Fire Alarm Permit
311 Application as provided in subsection Jl.l -R+ with the local
312 enforcement agency and must receive the fire alarm permit
313 before+
314 +a+ installing or replacing a fire alarm if the local
315 enforcement agency requires a plan review for the installation
316 or replacement-:---e-r-
317 (b) Repairing an cttisting alarffl systeffl that was previously
318 perfflitted by the local enforcefflent agency if the local
319 enforeefflent agency requires a fire alarffl perfflit for the repair.
320 (2) If the local enforcement agency requires a fire alarm
321 permit to repair an existing alarm system that was previously
322 permitted by the local enforcement agency, a contractor may
323 begin work after filing a Uniform Fire Alarm Permit Application
324 as provided in subsection (3). A fire alarm repaired pursuant to
325 this subsection shall not be considered compliant until the

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32 6 required permit has been issued and the local enforcement agency
327 has approved the repair.
328 Section 7. Section 633.217, Florida Statutes, is created
329 to read:
330 633.217 Influencing a firesafety inspector; prohibited
331 acts.-
332 (1) A person may not influence a firesafety inspector by:
333 (a) Threatening, coercing, tricking, or attempting to
334 threaten, coerce, or trick, the firesafety inspector into
335 violating any provision of the Florida Fire Prevention Code, any
336 rule adopted by the State Fire Marshal, or any provision of this
337 chapter.
338 (b) Offering any compensation to the firesafety inspector
339 to induce a violation of the Florida Fire Prevention Code, any
340 rule adopted by the State Fire Marshal, or any provision of this
341 chapter.
342 (2) A firesafety inspector may not knowingly and willfully
343 accept an attempt by a person to influence the firesafety
344 inspector into violating any provision of the Florida Fire
345 Prevention Code, any rule adopted by the State Fire Marshal, or
346 any provision of this chapter.
347 Section 8. Subsection (1) of section 633.416, Florida
348 Statutes, is amended to read:
349 633.416 Firefighter employment and volunteer firefighter
350 service; saving clause.-

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351 (1) A fire service provider may not employ an individual
352 to:
353 (a) Extinguish fires for the protection of life or
354 property or to supervise individuals who perform such services
355 unless the individual holds a current and valid Firefighter
356 Certificate of Compliance. However, a person who is currently
357 serving as a volunteer firefighter and holds a volunteer
358 firefighter certificate of completion with a fire service
359 provider, who is then employed as a regular or permanent
360 firefighter, by such fire service provider, may function, for a
361 period of 1 year under the direct supervision of an individual
362 holding a valid firefighter certificate of compliance, in the
363 same capacity in which he or she acted as a volunteer
364 firefighter, provided that he or she has completed all training
365 required by the volunteer organization. Under no circumstance
366 can this period extend beyond 1 year either collectively or
367 consecutively from the start of employment to obtain a
368 Firefighter Certificate of Compliance; or
369 (b) Serve as the administrative and command head of a fire
370 service provider for a period in excess of 1 year unless the
371 individual holds a current and valid Firefighter Certificate of
372 Compliance or Special Certificate of Compliance.
373 Section 9. Section 843.08, Florida Statutes, is amended to
374 read:
375 843.08 False personation.-A person who falsely assumes or

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376 pretends to be a firefighter, a sheriff, an officer of the
377 Florida Highway Patrol, an officer of the Fish and Wildlife
378 Conservation Commission, an officer of the Department of
379 Environmental Protection, a fire or arson investigator of the
380 Department of Financial Services, an officer of the Department
381 of Financial Services, or any personnel or representative of the
382 Division of Investigative and Forensic Services, an officer of
383 the Department of Corrections, a correctional probation officer,
384 a deputy sheriff, a state attorney or an assistant state
385 attorney, a statewide prosecutor or an assistant statewide
386 prosecutor, a state attorney investigator, a coroner, a police
387 officer, a lottery special agent or lottery investigator, a
388 beverage enforcement agent, a school guardian as described ins.
389 30.15(1) (k), a security officer licensed under chapter 493, any
390 member of the Florida Commission on Offender Review or any
391 administrative aide or supervisor employed by the commission,
392 any personnel or representative of the Department of Law
393 Enforcement, or a federal law enforcement officer as defined in
394 s. 901.1505, and takes upon himself or herself to act as such,
395 or to require any other person to aid or assist him or her in a
396 matter pertaining to the duty of any such officer, commits a
397 felony of the third degree, punishable as provided ins.
398 775.082, s. 775.083, ors. 775.084. However, a person who
399 falsely personates any such officer during the course of the
400 commission of a felony commits a felony of the second degree,

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401 punishable as provided ins. 775.082, s. 775.083, ors. 775.084.
402 If the commission of the felony results in the death or personal
403 injury of another human being, the person commits a felony of
404 the first degree, punishable as provided ins. 775.082, s.
405 7 7 5. 0 8 3, or s. 7 7 5. 0 8 4.
406 Section 10. Paragraph (f) is added to subsection (11) of
407 section 943.045, Florida Statutes, to read:
408 943.045 Definitions; ss. 943.045-943.08.-The following
409 words and phrases as used in ss. 943.045-943.08 shall have the
410 following meanings:
411 (11) "Criminal justice agency" means:
412 (f) The investigations component of the Department of
413 Financial Services, which investigates the crimes of fraud and
414 official misconduct in all public assistance given to residents
415 of the state or provided to others by the state.
416 Section 11. This act shall take effect July 1, 2020.

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HB 1077 by Rep. LaMarca
Department of Financial Services

AMENDMENT SUMMARY
February 12, 2020

Amendment 1 by Rep. LaMarca (strike-all) includes the original provisions of the bill, with a few minor
revisions, and does the following:

• Adds a new requirement to state risk management and safety programs, prohibiting retaliatory conduct
against a sexual harassment victim, prohibiting willful and knowledgeable distribution of a victim's personal
identifying information, and providing penalties for related violations.
• Revises the crimes which must be disclosed in order to apply for a license, and deletes conflicting penalties,
under chapter 497, F.S., related to Funeral, Cemetery, and Consumer Services.
• Revises provisions concerning notice to purchasers of preneed contracts.
• Allows Contractor I or II licensees to alter an existing fire sprinkler system involving 249 or fewer sprinkler
heads if there is no change in occupancy of the affected areas, no change in the water demand, and the
occupancy hazard classification is reduced or remains the same.
• Specifies that training courses offered by the State Fire College must include a written and a practical
element and be approved by the State Fire Marshal.
• Revises the continued education hours required for individuals licensed to solicit, sell, or adjust insurance in
the state.
• Renames the Florida Blockchain Task Force to "Florida Financial Technology and Blockchain Task Force;"
requires the task force to consider financial technology innovations related to money transmitters and
payment instrument sellers; and extends the expiration of the task force to January 31, 2021.

Amendment to amendment 1 by Rep. Santiago (line 531 ):

The amendment to the amendment:

• Limits certain assessments of radio coverage and signal strength for two-way radio communications by local
authorities to no more than once every 3 years for high rises and once every 5 years for all over buildings.
• Prohibits a local authority from withholding a certificate of occupancy for a building based on a determination
that an updated two-way radio communication system is needed, if an architect or engineer determines that
the enhancement is not necessary to meet the minimum standards for the interior radio coverage and signal
strength.
• Limits installation of such two-way radio communication systems until at least 90 days after completion of the
buildings required assessment report.

Amendment to amendment 2 by Rep. Fischer (line 532):

• The amendment to the amendment extends the current expiration date of July 1, 2021 to July 1, 2024, for
provisions that allow residents in apartment buildings to place garbage cans containing combustible waste
and refuse in exit access corridors during certain hours.

Amendment to amendment 3 by Rep. Fitzen hagen (line 1011 ):

• The amendment to the amendment prohibits the Office of Financial Regulation from filing notice of a family
trust company application in the Florida Administrative Register.
COMMITTEE/SUBCOMMITTEE AMENDMENT
Bill No. CS/HB 1077 (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 LaMarca offered the following:
3
4 Amendment (with title amendment)
5 Remove everything after the enacting clause and insert:
6 Section 1. Paragraph (f) of subsection (2) of section
7 20.121, Florida Statutes, is amended to read:
8 20.121 Department of Financial Services.-There is created
9 a Department of Financial Services.
10 (2) DIVISIONS.-The Department of Financial Services shall
11 consist of the following divisions and office:
12 (f) The Division of Public Assistance Fraud, which shall
13 function as a criminal justice agency for purposes of ss.
14 943.045-943.08. The division shall conduct investigations
15 pursuant to s. 414.411 within or outside of this state as it
16 deems necessary. If, during an investigation, the division has

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COMMITTEE/SUBCOMMITTEE AMENDMENT
Bill No. CS/HB 1077 (2020)
Amendment No. 1.

17 reason to believe that any criminal law of this state has or may
18 have been violated, it shall refer any records tending to show
19 such violation to state or federal law enforcement or
20 prosecutorial agencies and shall provide investigative
21 assistance to those agencies as required.
22 Section 2. Section 284.45, Florida Statutes, is created to
23 read:
24 284.45 Sexual harassment victims.-
25 (1) Individuals working for an entity covered by the State
26 Risk Management Trust Fund are prohibited from engaging in
27 retaliatory conduct, of any kind, against a sexual harassment
28 victim. As used in this section, the term "sexual harassment
29 victim" means an individual employed with or being considered
30 for employment with an entity participating in the State Risk
31 Management Trust Fund, who becomes a victim of workplace sexual
32 harassment, through the course of employment, or being
33 considered for employment, with such entity.
34 (2) The willful and knowing dissemination of personal
35 identifying information of a sexual harassment victim to any
36 party other than a government entity in furtherance of its
37 official duties or pursuant to a court order is a misdemeanor of
38 the first degree, and punishable as provided ins. 775.082. For
39 purposes of this subsection personal identifying information
40 includes the name of the victim and his or her:
41 (a) Home address;
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42 (b) Home phone number;
43 (c) Cellular phone number;
44 (d) E-mail address;
45 (e) Social media account username or URL; or
46 (f) Any other information that could reasonably be used to
47 identify, locate, or contact the alleged victim.
48 Section 3. Subsections (1), (2), (3), (6), and (8) of
49 section 497.101, Florida Statutes, are amended to read:
50 497.101 Board of Funeral, Cemetery, and Consumer Services;
51 membership; appointment; terms. -
52 (1) The Board of Funeral, Cemetery, and Consumer Services
53 is created within the Department of Financial Services and shall
54 consist of 10 members, 9 of whom shall be appointed by the
55 Governor from nominations made by the Chief Financial Officer
56 and confirmed by the Senate. The Chief Financial Officer shall
57 nominate one to three persons for each of the nine vacancies on
58 the board, and the Governor shall fill each vacancy on the board
59 by appointing one of the three persons nominated by the Chief
60 Financial Officer to fill that vacancy. If the Governor objects
61 to each of the three nominations for a vacancy, she or he shall
62 inform the Chief Financial Officer in writing. Upon notification
63 of an objection by the Governor, the Chief Financial Officer
64 shall submit one to three additional nominations for that
65 vacancy until the vacancy is filled. One member must be the
66 State Health Officer or her or his designee.
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67 (2) Two members of the board shall be funeral directors
68 licensed under part III of this chapter who are associated with
69 a funeral establishment. One member of the board shall be a
70 funeral director licensed under part III of this chapter who is
71 associated with a funeral establishment licensed under part III
72 of this chapter that has a valid preneed license issued pursuant
73 to this chapter and who owns or operates a cinerator facility
74 approved under chapter 403 and licensed under part VI of this
75 chapter. Two members of the board shall be persons whose primary
76 occupation is associated with a cemetery company licensed
77 pursuant to this chapter. Two Three members of the board shall
78 be consumers who are residents of the state, have never been
79 licensed as funeral directors or embalmers, are not connected
80 with a cemetery or cemetery company licensed pursuant to this
81 chapter, and are not connected with the death care industry or
82 the practice of embalming, funeral directing, or direct
83 disposition. One of the two consumer members shall be at least
84 60 years of age, and one shall be licensed as a certified public
85 accountant under chapter 473. One member of the board shall be a
86 consumer who is a resident of this state; licensed as a
87 certified public accountant under chapter 473; has never been
88 licensed as a funeral director or embalmer; is not a principal
89 or employee of any licensee licensed under this chapter; and
90 does not otherwise have control, as defined ins. 497.005, over
91 any licensee licensed under this chapter. One member of the
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92 board shall be a principal of a monument establishment licensed
93 under this chapter as a monument builder. One member shall be
94 the State Health Officer or her or his designee. There shall not
95 be two or more board members who are principals or employees of
96 the same company or partnership or group of companies or
97 partnerships under common control.
98 (3) Board members shall be appointed for terms of 4 years,
99 and the State Health Officer shall serve as long as that person
100 holds that office. The designee of the State Health Officer
101 shall serve at the pleasure of the Governor. When the terms of
102 the initial board members enpire, the Chief Financial Officer
103 shall stagger the terms of the successor members as follows: one
104 funeral director, one cemetery representative, the monument
105 builder, and one consumer member shall be appointed for terms of
106 2 years, and the remaining members shall be appointed for terms
107 of 4 years. All subsequent terms shall be for 4 years.
108 (6) The headquarters and records of the board shall be in
109 the Division of Funeral, Cemetery, and Consumer Services of the
110 Department of Financial Services in the City of Tallahassee. The
111 board may be contacted through the Division of Funeral,
112 Cemetery, and Consumer Services of the Department of Financial
113 Services in the City of Tallahassee. The Chief Financial Officer
114 shall annually appoint from among the board members a chair and
115 vice chair of the board. The board shall meet at least every 6
116 months, and more often as necessary. Special meetings of the

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117 board shall be convened upon the direction of the Chief
118 Financial Officer. A quorum is necessary for the conduct of
119 business by the board. Unless otherwise provided by law, a
120 majority of the board members eligible to vote shall constitute
121 a quorum for the purpose of conducting its business siJ{ board
122 members shall constitute a quorum for the conduct of the board's
123 business.
124 (8) The department shall adopt rules establishing forms by
125 which persons may apply for membership on the board and
126 procedures for applying for such membership. Such forms shall
127 require disclosure of the enistence and nature of all current
128 and past employments by or contracts with, and direct or
129 indirect affiliations or interests in, any entity or business
130 that at any time was licensed by the board or by the former
131 Board of Funeral and Cemetery Services or the former Board of
132 Funeral Directors and 8mbalmers or that is or was otherwise
133 involved in the death care industry, as specified by department
134 rule.
135 Section 4. Section 497.1411, Florida Statutes, is created
136 to read:
137 497.1411 Disqualification of applicants and licensees;
138 penalties against licensees; rulemaking.-
139 (1) For purposes of this section, the term:
140 (a) "Applicant" means an individual applying for licensure
141 or relicensure under this chapter, and an officer, director,
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142 majority owner, partner, manager, or other person who manages or
143 controls an entity applying for licensure or relicensure under
144 this chapter.
145 (b) "Felony of the first degree" and "capital felony"
146 include all felonies designated as such in this state, at the
147 time of the commission of the offense, as well as any offense in
148 another jurisdiction that is substantially similar to an offense
14 9 so designated in this state.
150 (c) "Financial services business" means any financial
151 activity regulated by the Department of Financial Services, the
152 Office of Insurance Regulation, or the Office of Financial
153 Regulation.
154 (2) An applicant who has been found guilty of or has
155 pleaded guilty or nolo contendere to any of the following
156 crimes, regardless of adjudication, is permanently barred from
157 licensure under this chapter:
158 (a) A felony of the first degree.
159 (b) A capital felony.
160 ( C) A felony money laundering offense.
161 (d) A felony embezzlement.
162 ( 3) An applicant who has been found guilty of or has
163 pleaded guilty or nolo contendere to a crime not included in
164 subsection (2), regardless of adjudication, is subject to:

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165 (a) A 10-year disqualifying period for all felonies
166 involving moral turpitude that are not specifically included in
167 the permanent bar contained in subsection (2).
168 (b) A 5-year disqualifying period for all felonies to
169 which neither the permanent bar in subsection (2) nor the 10-
170 year disqualifying period in paragraph (a) applies.
171 (c) A 5-year disqualifying period for all misdemeanors
172 directly related to the financial services business.
173 (4) The board shall adopt rules to administer this
174 section. The rules must provide for additional disqualifying
175 periods due to the commitment of multiple crimes and may include
176 other factors reasonably related to the applicant's criminal
177 history. The rules shall provide for mitigating and aggravating
178 factors. However, mitigation may not result in a period of
179 disqualification of less than 5 years and may not mitigate the
180 disqualifying periods in paragraphs (3) (b) and (c).
181 (5) For purposes of this section, a disqualifying period
182 begins upon the applicant's final release from supervision or
183 upon completion of the applicant's criminal sentence. The
184 department may not issue a license to an applicant unless all
185 related fines, court costs and fees, and court-ordered
186 restitution have been paid.
187 (6) After the disqualifying period has expired, the burden
188 is on the applicant to demonstrate that he or she has been
189 rehabilitated, does not pose a risk to the public, is fit and

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190 trustworthy to engage in business regulated by this chapter, and
191 is otherwise qualified for licensure.
192 (7) Notwithstanding subsections (2) and (3), an applicant
193 who has been found guilty of, or has pleaded guilty or nolo
194 contendere to, a crime in subsection (2) or subsection (3), and
195 has subsequently been granted a pardon or the restoration of
196 civil rights pursuant to chapter 940 ands. 8, Art. IV of the
197 State Constitution, or such pardon or the restoration of civil
198 rights under the laws of another jurisdiction with respect to a
199 conviction in that jurisdiction, is not barred or disqualified
200 from licensure under this chapter; however, such a pardon or
201 restoration of civil rights does not require the department to
202 award such license.
203 (8) (a) The Board of Funeral, Cemetery, and Consumer
204 Services may grant an exemption from disqualification to any
205 person disqualified from licensure under subsection (3) if:
206 1. The applicant has paid in full any fee, fine, fund,
207 lien, civil judgment, restitution, or cost of prosecution
208 imposed by the court as part of the judgment and sentence for
209 any disqualifying offense; and
210 2. At least 5 years have elapsed since the applicant
211 completed or has been lawfully released from confinement,
212 supervision, or nonmonetary condition imposed by the court for a
213 disqualifying offense.

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214 (b) For the board to grant an exemption under this
215 subsection, the applicant must clearly and convincingly
216 demonstrate that he or she would not pose a risk to persons or
217 property if licensed under this chapter, evidence of which must
218 include, but need not be limited to, facts and circumstances
219 surrounding the disqualifying offense, the time that has elapsed
220 since the offense, the nature of the offense and harm caused to
221 the victim, the applicant's history before and after the
222 offense, and any other evidence or circumstances indicating that
223 the applicant will not present a danger if licensed or
224 certified.
225 (c) The board has discretion whether to grant or deny an
226 exemption under this subsection. The board's decision is subject
227 to chapter 120.
228 (9) The disqualification periods provided in this section
229 will not apply to the renewal of a license or to a new
230 application for licensure if the applicant has an active license
231 as of the effective date of this section, and the applicable
232 criminal history was considered by the Board on the prior
233 approval of any active license(s) held by the applicant. This
234 section does not affect any criminal history disclosure
235 requirements of chapter 497.
236 Section 5. Subsections (9) and (10) of section 497.142,
237 Florida Statutes, are amended to read:

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238 497.142 Licensing; fingerprinting and criminal background
239 checks.-
240 ( 9) If any applicant under this chapter has been, within
241 the 10 years preceding the application under this chapter,
242 convicted or found guilty of, or entered a plea of nolo
243 contendere to, regardless of adjudication, any crime in any
244 jurisdiction, the application shall not be deemed complete until
245 such time as the applicant provides such certified true copies
246 of the court records evidencing the conviction, finding, or
247 plea, as required in this section or as the licensing authority
248 may by rule require.
249 (10) (a) When applying for any license under this chapter,
250 every applicant must disclose the applicant's criminal records
251 in accordance with this subsection. When applying for renewal of
252 any license under this chapter, every licensee must disclose
253 only those criminal offenses required to be disclosed under this
254 subsection since the most recent renewal of her or his license
255 or, if the license has not been renewed, since the licensee's
256 initial application.
257 (b) The criminal record required to be disclosed shall be
258 any crime listed in paragraph (c) for which the person or entity
259 required to make disclosure has been convicted or to which that
260 person or entity entered a plea of guilty or nolo contendere.
261 Disclosure is required regardless of whether adjudication is
262 entered or withheld by the court.

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263 (c) Crimes to be disclosed are:
264 1. Any felony or misdemeanor, no matter when committedT
265 that was directly or indirectly related to or involving any
266 aspect of the practice or business of funeral directing,
267 embalming, direct disposition, cremation, funeral or cemetery
268 preneed sales, funeral establishment operations, cemetery
269 operations, or cemetery monument or marker sales or
270 installation.
271 2. Any misdemeanor, no matter when committed, that was
272 directly or indirectly related to the financial services
273 business as defined ins. 497.1411 Any other felony not already
274 disclosed under subparagraph 1. that was committed within the 20
275 years immediately preceding the application under this chapter.
276 3. Any other misdemeanor not already disclosed under
277 subparagraph 2. subparagraph 1. that was committed within the 5
278 years immediately preceding the application under this chapter.
279 Section 6. Subsections (2) through (5) of section 497.157,
280 Florida Statutes, are renumbered as subsections (4) through (7),
281 respectively, new subsections (2), (3) and (8) are added to that
282 section, and present subsection (3) is amended, to read:
283 497.157 Unlicensed practice; remedies concerning
284 violations by unlicensed persons.-
285 (2) A person may not be, act as, or advertise or hold
286 himself or herself out to be a funeral director, embalmer, or

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Amendment No. 1.

287 direct disposer, unless he or she is currently licensed by the
288 department.
289 (3) A person may not be, act as, or advertise or hold
290 himself or herself out to be a preneed sales agent unless he or
291 she is currently licensed by the department and appointed by a
292 preneed main licensee for which they are executing preneed
293 contracts.
294 (5)-f-3-t Where the department determines that an emergency
295 exists regarding any violation of this chapter by any unlicensed
296 person or entity, the department may issue and serve an
297 immediate final order upon such unlicensed person or entity, in
298 accordance withs. 120.569(2) (n). Such an immediate final order
299 may impose such prohibitions and requirements as are reasonably
300 necessary to protect the public health, safety, and welfare, and
301 shall be effective when served.
302 (a) For the purpose of enforcing such an immediate final
303 order, the department may file an emergency or other proceeding
304 in the circuit courts of the state seeking enforcement of the
305 immediate final order by injunctive or other order of the court.
306 The court shall issue its injunction or other order enforcing
307 the immediate final order pending administrative resolution of
308 the matter under subsection J.il-f-2-+-, unless the court determines
309 that such action would work a manifest injustice under the
310 circumstances. Venue for judicial actions under this paragraph
311 shall be, at the election of the department, in the courts of

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312 Leon County, or in a county where the respondent resides or has
313 a place of business.
314 (b) After serving an immediate final order to cease and
315 desist upon any person or entity, the department shall within 10
316 days issue and serve upon the same person or entity an
317 administrative complaint as set forth in subsection 1!2_-f-2+,
318 except that, absent order of a court to the contrary, the
319 immediate final order shall be effective throughout the pendency
320 of proceedings under subsection (4)-f±t.
321 (8) Any person who is not licensed under this chapter and
322 who engages in activity requiring licensure under this chapter
323 commits a felony of the third degree, punishable as provided in
324 s. 775.082, s. 775.083, ors. 775.084.
325 Section 7. Subsection (6) of section 497.159, Florida
326 Statutes, is amended to read:
327 497.159 Crimes.-
328 (6) Any person who is not licensed under this chapter who
329 engages in activity requiring licensure under this chapter,
330 coffifflits a misdemeanor of the second degree, punishable as
331 provided ins. 775.082 ors. 775.083.
332 Section 8. Subsection (7) of section 497.459, Florida
333 Statutes, is amended to read:
334 497.459 Cancellation of, or default on, preneed contracts;
335 required notice.-
336 (7) NOTICE TO PURCHASER OR LEGALLY AUTHORIZED PERSON:-
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Amendment No. 1.

337 (a) To ensure the performance of unfulfilled preneed
338 contracts, upon the occurrence of the earliest of either a-RY of
339 the following events, a preneed licensee shall provide to the
340 purchaser or to the beneficiary's legally authorized person
341 written notice of the preneed licensee's intent to distribute
342 funds as described herein in accordance with the terms of the
343 preneed contract, if any such terms exist obligation of the
344 preneed licensee remains to be fulfilled under the contract:
345 1. Fifty years after the date of execution of the preneed
346 contract by the purchaser.
347 2. The beneficiary of the preneed contract attains the age
348 of 105 years of age or older.
349 3. The social security number of the beneficiary of the
350 preneed contract, as shown on the contract, is contained within
351 the United States Social Security Administration Death Master
352 File.
353
354 A preneed licensee shall conduct the analysis of its preneed

355 contracts at least every 3 years, which period shall commence
356 upon the first analysis conducted pursuant to this section. The
357 first analysis by a preneed licensee shall occur by July 1 2021.
358 (b)l. The notice in paragraph (a) must be provided by
359 certified mail, registered mail, or permitted delivery service,
360 return receipt requested, to the last known mailing address of
361 the purchaser or the beneficiary's legally authorized person,
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Amendment No. 1.

362 whichever is applicable, as provided to the preneed licensee. If
363 the notice is returned as undeliverable within 30 calendar days
364 after the preneed licensee sent the notice, the preneed licensee
365 trustee shall perform a diligent search and inquiry to obtain a
366 different address for the purchaser or the beneficiary's legally
367 authorized person, whichever is applicable. For purposes of this
368 subparagraph, any address known and used by the purchaser or the
369 beneficiary's legally authorized person, whichever is
370 applicable, for sending regular mailings or other communications
371 from the purchaser or the beneficiary's legally authorized
372 person, whichever is applicable, to the preneed licensee or any
373 address produced through a current address service or searchable
374 database shall be included with other addresses produced from
375 the diligent search and inquiry, if any. If the preneed
376 licensee's trustee's diligent search and inquiry produces an
377 address different from the notice address, the preneed licensee
378 trustee shall mail a copy of the notice by certified mail,
379 registered mail, or permitted delivery service, return receipt
380 requested, to any and all addresses produced as a result of the
381 diligent search and inquiry.
382 2. If the purchaser or the beneficiary's legally
383 authorized person, whichever is applicable, fails to respond to
384 such notice within 3 years 120 days after delivery of the last
385 mailed notice under subparagraph 1., the funds held in trust
386 must be distributed in accordance with the terms of the preneed
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Amendment No. 1.

387 contract, the trust agreement, and any applicable provisions of
388 chapter 717 shall be distributed as follows within 60 days of
389 the end of the 3-year period escribed herein and in accordance
390 with any applicable provisions of chapter 717:
391 1. The principle deposited into trust shall be remitted to
392 the Unclaimed Property Trust Fund.
393 2. Any additional funds in trust shall be remitted to the
394 preneed licensee.
395
396 Upon the occurrence of the distribution from trust, the preneed
397 licensee is absolved of all liability associated with the
398 preneed contract for which funds were distributed, including any
399 obligation to refund any monies paid by a Purchaser of a preneed
400 contract. The names of the Purchaser and Beneficiary of any
401 preneed contract for which funds were distributed shall be
402 provided to the Division of Unclaimed Property at the time such
403 funds are remitted to the Unclaimed Property Trust Fund ..
404 (c) Any Purchaser and Beneficiary that receives the notice
405 required under this subsection retain all rights to fulfillment
406 or cancellation of the preneed contract during the time between
407 the issuance of the notice and the distribution described in
408 subparagraph (b)2. Legally authorized persons, in the priority
409 set forth in this chapter, of the purchaser or beneficiary may
410 obtain fulfillment or cancellation of the preneed contract. Such
411 fulfillment may include identifying a new beneficiary on the
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Amendment No. 1.

412 preneed contract. A preneed licensee shall provide fulfillment
413 or cancellation of the preneed contract upon the attestation of
414 any one legally authorized person that he or she is not aware of
415 an objection to the requested action by any person in his or her
416 priority class or a higher priority class. In the event that the
417 legally authorized person chooses to identify a new beneficiary
418 on the preneed contract, such preneed contract shall be
419 considered to be effective as of the date of the identification
420 of the new beneficiary. This subsection does not affect a
421 purchaser's rights to cancel the preneed contract and receive a
422 refund or a preneed licensee's obligations to refund established
423 by this chapter.
424 (d) The licensing authority shall have authority to adopt
425 rules for the review and approval of notice forms used by
426 preneed licensees to provide notice under this subsection.
427 Section 9. Subsection (13) of section 552.081, Florida
428 Statutes, is amended to read:
429 552.081 Definitions.-As used in this chapter:
430 (13) "Two-component explosives" means any two inert
431 components which, when mixed, become capable of detonation by
432 any detonator a No. 6 blasting cap, and shall be classified as a
433 Class "A" explosive when so mixed.
434 Section 10. Subsection (2) of section 553.7921, Florida
435 Statutes, is renumbered as subsection (3), subsection (1) of

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Amendment No. 1.

436 that section is amended, and a new subsection (2) is added to
437 that section, to read:
438 553.7921 Fire alarm permit application to local
439 enforcement agency.-
440 (1) A contractor must file a Uniform Fire Alarm Permit
441 Application as provided in subsection J.ll -f±t with the local
442 enforcement agency and must receive the fire alarm permit
443 before+
444 +a+ installing or replacing a fire alarm if the local
445 enforcement agency requires a plan review for the installation
446 or replacement-:------e-r
447 (b) Repairing an existing alarm system that was previously
448 permitted by the local enforcement agency if the local
449 enforcement agency requires a fire alarm permit for the repair.
450 (2) If the local enforcement agency requires a fire alarm
451 permit to repair an existing alarm system that was previously
452 permitted by the local enforcement agency, a contractor may
453 begin work after filing a Uniform Fire Alarm Permit Application
454 as provided in subsection (3). A fire alarm repaired pursuant to
455 this subsection shall not be considered compliant until the
456 required permit has been issued and the local enforcement agency
457 has approved the repair.
458 Section 11. Subsection (3) of section 633.102, Florida
459 Statutes, is amended to read:
460 633.102 Definitions.-As used in this chapter, the term:

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461 (3) (a) "Contractor I" means a contractor whose business
4 62 includes the execution of contracts requiring the ability to lay
463 out, fabricate, install, inspect, alter, repair, and service all
4 64 types of fire protection systems, excluding preengineered
465 systems.
466 (b) "Contractor II" means a contractor whose business is
467 limited to the execution of contracts requiring the ability to
468 lay out, fabricate, install, inspect, alter, repair, and service
469 water sprinkler systems, water spray systems, foam-water
470 sprinkler systems, foam-water spray systems, standpipes,
471 combination standpipes and sprinkler risers, all piping that is
472 an integral part of the system beginning at the point of service
473 as defined in this section, sprinkler tank heaters, air lines,
474 thermal systems used in connection with sprinklers, and tanks
475 and pumps connected thereto, excluding preengineered systems.
476 (c) "Contractor III" means a contractor whose business is
477 limited to the execution of contracts requiring the ability to
478 fabricate, install, inspect, alter, repair, and service carbon
479 dioxide systems, foam extinguishing systems, dry chemical
480 systems, and Halon and other chemical systems, excluding
481 preengineered systems.
482 (d) "Contractor IV" means a contractor whose business is
483 limited to the execution of contracts requiring the ability to
484 lay out, fabricate, install, inspect, alter, repair, and service
485 automatic fire sprinkler systems for detached one-family
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Amendment No. 1.

486 dwellings, detached two-family dwellings, and mobile homes,
487 excluding preengineered systems and excluding single-family
488 homes in cluster units, such as apartments, condominiums, and
489 assisted living facilities or any building that is connected to
490 other dwellings. A Contractor IV is limited to the scope of
491 practice specified in NFPA 130.
4 92 (e) "Contractor V" means a contractor whose business is
493 limited to the execution of contracts requiring the ability to
494 fabricate, install, inspect, alter, repair, and service the
495 underground piping for a fire protection system using water as
496 the extinguishing agent beginning at the point of service as
497 defined in this act and ending no more than 1 foot above the
498 finished floor.
499
500 The definitions in this subsection may not be construed to
501 include engineers or architects and do not limit or prohibit a
502 licensed fire protection engineer or architect with fire
503 protection design experience from designing any type of fire
504 protection system. A distinction is made between system design
505 concepts prepared by the design professional and system layout
506 as defined in this section and typically prepared by the
507 contractor. However, a person certified as a Contractor I or 7
508 Contractor II, or Contractor IV under this chapter may design
509 new fire protection systems of 49 or fewer sprinklers~, and may
510 design the alteration of an existing fire sprinkler system if
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Amendment No. 1.

511 the alteration consists of the relocation, addition, or deletion
512 of not more than 49 or fewer sprinklers, notwithstanding the
513 size of the existing fire sprinkler system; or may design the
514 alteration of an existing fire sprinkler system if the
515 alteration consists of the relocation or deletion of 249 or
516 fewer sprinklers, notwithstanding the size of the existing fire
517 sprinkler system, if there is no change of occupancy, as defined
518 in the Florida Building Code, of the affected areas and there is
519 no change in the water demand as defined in National Fire
520 Protection Association publication NFPA No. 13 "Standard for the
521 Installation of Sprinkler Systems," and if the occupancy hazard
522 classification as defined in NFPA 13 is reduced or remains the
523 same as a result of the alteration. A person certified as a
524 Contractor I, Contractor II, or Contractor IV may design or
525 alter a fire protection systernL the scope of which complies with
526 NFPA 130, Standard for the Installation of Sprinkler Systems in
527 One- and Two-Family Dwellings and Manufactured Hornes, as adopted
528 by the State Fire Marshal, notwithstanding the number of fire
529 sprinklers. Contractor-developed plans may not be required by
530 any local permitting authority to be sealed by a registered
531 professional engineer.
532 Section 12. Section 633.217, Florida Statutes, is created
533 to read:
534 633.217 Influencing a firesafety inspector; prohibited
535 acts.-
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Amendment No. 1.

536 (1) A person may not influence a firesafety inspector by:
537 (a) Threatening, coercing, tricking, or attempting to
538 threaten, coerce, or trick, the firesafety inspector into
539 violating any provision of the Florida Fire Prevention Code, any
540 rule adopted by the State Fire Marshal, or any provision of this
541 chapter.
542 (b) Offering any compensation to the firesafety inspector
543 to induce a violation of the Florida Fire Prevention Code, any
544 rule adopted by the State Fire Marshal, or any provision of this
545 chapter.
546 (2) A firesafety inspector may not knowingly and willfully

547 accept an attempt by a person to influence the firesafety
548 inspector into violating any provision of the Florida Fire
549 Prevention Code, any rule adopted by the State Fire Marshal, or
550 any provision of this chapter.
551 Section 13. Paragraphs ( d) , ( g) , and ( h) of subsection ( 4)
552 of section 633.304, Florida Statutes, are amended to read:
553 633.304 Fire suppression equipment; license to install or
554 maintain.-
555 ( 4)

556 (d) A license of any class may not be issued or renewed by
557 the division and a license of any class does not remain
558 operative unless:

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Amendment No. 1.

559 1. The applicant has submitted to the State Fire Marshal
560 evidence of registration as a Florida corporation or evidence of
561 compliance withs. 865.09.
562 2. The State Fire Marshal or his or her designee has by
563 inspection determined that the applicant possesses the equipment
564 required for the class of license sought. The State Fire Marshal
565 shall give an applicant a reasonable opportunity to correct any
566 deficiencies discovered by inspection. To obtain such
567 inspection, an applicant with facilities located outside this
568 state must:
569 a. Provide a notarized statement from a professional
570 engineer licensed by the applicant's state of domicile
571 certifying that the applicant possesses the equipment required
572 for the class of license sought and that all such equipment is
573 operable; or
574 b. Allow the State Fire Marshal or her or his designee to
575 inspect the facility. All costs associated with the State Fire
576 Marshal's inspection must be paid by the applicant. The State
577 Fire Marshal, in accordance withs. 120.54, may adopt rules to
578 establish standards for the calculation and establishment of the
579 amount of costs associated with any inspection conducted by the
580 State Fire Marshal under this section. Such rules must include
581 procedures for invoicing and receiving funds in advance of the
582 inspection.

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Amendment No. 1.

583 3. The applicant has submitted to the State Fire Marshal
584 proof of insurance providing coverage for comprehensive general
585 liability for bodily injury and property damage, products
586 liability, completed operations, and contractual liability. The
587 State Fire Marshal shall adopt rules providing for the amounts
588 of such coverage, but such amounts may not be less than $300,000
589 for Class A or Class D licenses, $200,000 for Class B licenses,
590 and $100,000 for Class C licenses; and the total coverage for
591 any class of license held in conjunction with a Class D license
592 may not be less than $300,000. The State Fire Marshal may, at
593 any time after the issuance of a license or its renewal, require
594 upon demand, and in no event more than 30 days after notice of
595 such demand, the licensee to provide proof of insurance, on the
596 insurer's form, containing confirmation of insurance coverage as
597 required by this chapter. Failure, for any length of time, to
598 provide proof of insurance coverage as required must result in
599 the immediate suspension of the license until proof of proper
600 insurance is provided to the State Fire Marshal. An insurer that
601 provides such coverage shall notify the State Fire Marshal of
602 any change in coverage or of any termination, cancellation, or
603 nonrenewal of any coverage.
604 4. The applicant applies to the State Fire Marshal,
605 provides proof of experience, and successfully completes a
606 prescribed training course that includes both written and
607 practical training offered at by the State Fire College and er
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608 an equivalent course approved by the State Fire Marshal as
609 applicable to the class of license being sought. This
610 subparagraph does not apply to any holder of or applicant for a
611 permit under paragraph (g) or to a business organization or a
612 governmental entity seeking initial licensure or renewal of an
613 existing license solely for the purpose of inspecting,
614 servicing, repairing, marking, recharging, and maintaining fire
615 extinguishers used and located on the premises of and owned by
616 such organization or entity.
617 5. The applicant has a current retestor identification
618 number that is appropriate for the license for which the
619 applicant is applying and that is listed with the United States
620 Department of Transportation.
621 6. The applicant has passed, with a grade of at least 70
622 percent, a written examination testing his or her knowledge of
623 the rules and statutes governing the activities authorized by
624 the license and demonstrating his or her knowledge and ability
625 to perform those tasks in a competent, lawful, and safe manner.
626 Such examination must be developed and administered by the State
627 Fire Marshal, or his or her designee in accordance with policies
628 and procedures of the State Fire Marshal. An applicant shall pay
629 a nonrefundable examination fee of $50 for each examination or
630 reexamination scheduled. A reexamination may not be scheduled
631 sooner than 30 days after any administration of an examination
632 to an applicant. An applicant may not be permitted to take an
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633 examination for any level of license more than a total of four
634 times during 1 year, regardless of the number of applications
635 submitted. As a prerequisite to licensure of the applicant, he
636 or she:
637 a. Must be at least 18 years of age.
638 b. Must have 4 years of proven experience as a fire
639 equipment permittee at a level equal to or greater than the
640 level of license applied for or have a combination of education
641 and experience determined to be equivalent thereto by the State
642 Fire Marshal. Having held a permit at the appropriate level for
643 the required period constitutes the required experience.
644 c. Must not have been convicted of a felony or a crime
645 punishable by imprisonment of 1 year or more under the law of
646 the United States or of any state thereof or under the law of
647 any other country. ''Convicted" means a finding of guilt or the
648 acceptance of a plea of guilty or nolo contendere in any federal
649 or state court or a court in any other country, without regard
650 to whether a judgment of conviction has been entered by the
651 court having jurisdiction of the case. If an applicant has been
652 convicted of any such felony, the applicant is excluded from
653 licensure for a period of 4 years after expiration of sentence
654 or final release by the Florida Commission on Offender Review
655 unless the applicant, before the expiration of the 4-year
656 period, has received a full pardon or has had her or his civil
657 rights restored.
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Amendment No. 1.

658
659 This subparagraph does not apply to any holder of or applicant
660 for a permit under paragraph (g) or to a business organization
661 or a governmental entity seeking initial licensure or renewal of
662 an existing license solely for the purpose of inspecting,
663 servicing, repairing, marking, recharging, hydrotesting, and
664 maintaining fire extinguishers used and located on the premises
665 of and owned by such organization or entity.
666 (g) A permit of any class may not be issued or renewed to
667 a person by the division, and a permit of any class does not
668 remain operative, unless the person has:
669 1. Submitted a nonrefundable examination fee in the amount
670 of $50.
671 2. Successfully completed a training course that includes
672 both written and practical training offered at ey the State Fire
673 College and or an equivalent course approved by the State Fire
674 Marshal as applicable to the class of license being sought.
675 3. Passed, with a grade of at least 70 percent, a written
676 examination testing his or her knowledge of the rules and
677 statutes governing the activities authorized by the permit and
678 demonstrating his or her knowledge and ability to perform those
679 tasks in a competent, lawful, and safe manner. Such examination
680 must be developed and administered by the State Fire Marshal in
681 accordance with the policies and procedures of the State Fire
682 Marshal. An examination fee must be paid for each examination
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Amendment No. 1.

683 scheduled. A reexamination may not be scheduled sooner than 30
684 days after any administration of an examination to an applicant.
685 An applicant may not be permitted to take an examination for any
686 level of permit more than four times during 1 year, regardless
687 of the number of applications submitted. As a prerequisite to
688 taking the permit examination, the applicant must be at least 16
689 years of age.
690 (h) An applicant for a license or permit under this
691 section who fails the examination may take it three more times
692 during the 1-year period after he or she originally filed an
693 application for the examination. If the applicant fails the
694 examination within 1 year after the application date and he or
695 she seeks to retake the examination, he or she must file a new
696 application, pay the application and examination fees, and
697 successfully complete a prescribed training course that includes
698 both written and practical training offered at ay the State Fire
699 College and or an equivalent course approved by the State Fire
700 Marshal as applicable to the class of license being sought. The
701 applicant may not submit a new application within 6 months after
702 the date of his or her fourth reexamination. An applicant who
703 passes the examination but does not meet the remaining
704 qualifications prescribed by law and rule within 1 year after
705 the application date must file a new application, pay the
706 application and examination fee, successfully complete a
707 prescribed training course that includes both written and
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Amendment No. 1.

708 practical training offered at approved by the State Fire College
709 and or an equivalent course approved by the State Fire Marshal
710 as applicable to the class of license being sought, and pass the
711 written examination.
712 Section 14. Subsection (1) of section 633.416, Florida
713 Statutes, is amended to read:
714 633.416 Firefighter employment and volunteer firefighter
715 service; saving clause.-
716 (1) A fire service provider may not employ an individual
717 to:
718 (a) Extinguish fires for the protection of life or
719 property or to supervise individuals who perform such services
720 unless the individual holds a current and valid Firefighter
721 Certificate of Compliance. However, a person who is currently
722 serving as a volunteer firefighter and holds a volunteer
723 firefighter certificate of completion with a fire service
724 provider, who is then employed as a regular or permanent
725 firefighter, by such fire service provider, may function, for a
726 period of 1 year under the direct supervision of an individual
727 holding a valid firefighter certificate of compliance, in the
728 same capacity in which he or she acted as a volunteer
729 firefighter, provided that he or she has completed all training
730 required by the volunteer organization. Under no circumstance
731 can this period extend beyond 1 year either collectively or

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Amendment No. 1.

732 consecutively from the start of employment to obtain a
733 Firefighter Certificate of Compliance; or
734 (b) Serve as the administrative and command head of a fire
735 service provider for a period in excess of 1 year unless the
736 individual holds a current and valid Firefighter Certificate of
737 Compliance or Special Certificate of Compliance.
738 Section 15. Section 843.08, Florida Statutes, is amended
739 to read:
740 843.08 False personation.-A person who falsely assumes or
741 pretends to be a firefighter, a sheriff, an officer of the
742 Florida Highway Patrol, an officer of the Fish and Wildlife
743 Conservation Commission, an officer of the Department of
744 Environmental Protection, a fire or arson investigator of the
745 Department of Financial Services, an officer of the Department
746 of Financial Services, or any personnel or representative of the
747 Division of Investigative and Forensic Services, an officer of
748 the Department of Corrections, a correctional probation officer,
749 a deputy sheriff, a state attorney or an assistant state
750 attorney, a statewide prosecutor or an assistant statewide
751 prosecutor, a state attorney investigator, a coroner, a police
752 officer, a lottery special agent or lottery investigator, a
753 beverage enforcement agent, a school guardian as described ins.
754 30.15(1) (k), a security officer licensed under chapter 493, any
755 member of the Florida Commission on Offender Review or any
756 administrative aide or supervisor employed by the commission,
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Amendment No. 1.

757 any personnel or representative of the Department of Law
758 Enforcement, or a federal law enforcement officer as defined in
759 s. 901.1505, and takes upon himself or herself to act as such,
760 or to require any other person to aid or assist him or her in a
761 matter pertaining to the duty of any such officer, commits a
7 62 felony of the third degree, punishable as provided ins.
763 775.082, s. 775.083, ors. 775.084. However, a person who
7 64 falsely personates any such officer during the course of the
765 commission of a felony commits a felony of the second degree,
766 punishable as provided ins. 775.082, s. 775.083, ors. 775.084.
767 If the commission of the felony results in the death or personal
7 68 injury of another human being, the person commits a felony of
769 the first degree, punishable as provided ins. 775.082, s.
770 775.083, or s. 775.084.
771 Section 16. Paragraph (f) is added to subsection (11) of
772 section 943.045, Florida Statutes, to read:
773 943.045 Definitions; ss. 943.045-943.08.-The following
774 words and phrases as used in ss. 943.045-943.08 shall have the
775 following meanings:
776 (11) "Criminal justice agency" means:
777 (f) The investigations component of the Department of
778 Financial Services, which investigates the crimes of fraud and
779 official misconduct in all public assistance given to residents
780 of the state or provided to others by the state.

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Amendment No. 1.

781 Section 17. Effective January 1, 2021, subsection (3) of
782 section 626.2815, Florida Statutes, is amended to read:
783 626.2815 Continuing education requirements.-
784 (3) Each licensee except a title insurance agent must
785 complete a 4-hour 5 hour update course every 2 years which is
786 specific to the license held by the licensee. The course must be
787 developed and offered by providers and approved by the
788 department. The content of the course must address all lines of
789 insurance for which examination and licensure are required and
790 include the following subject areas: insurance law updates,
791 ethics for insurance professionals, disciplinary trends and case
7 92 studies, industry trends, premium discounts, determining
793 suitability of products and services, and other similar
7 94 insurance-related topics the department determines are relevant
795 to legally and ethically carrying out the responsibilities of
796 the license granted. A licensee who holds multiple insurance
797 licenses must complete an update course that is specific to at
798 least one of the licenses held. Except as otherwise specified,
799 any remaining required hours of continuing education are
800 elective and may consist of any continuing education course
801 approved by the department under this section.
802 (a) Except as provided in paragraphs (b), (c), (d), (e),
803 (i), and (j), each licensee must also complete 20 +9- hours of
804 elective continuing education courses every 2 years.

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Amendment No. 1.

805 (b) A licensee who has been licensed for 6 or more years
806 must also complete a minimum of 16 ±-& hours of elective
807 continuing education every 2 years.
808 (c) A licensee who has been licensed for 25 years or more
809 and is a CLU or a CPCU or has a Bachelor of Science degree in
810 risk management or insurance with evidence of 18 or more
811 semester hours in insurance-related courses must also complete a
812 minimum of 5 hours of elective continuing education courses
813 every 2 years.
814 (d) An individual who holds a license as a customer
815 representative and who is not a licensed life or health agent
816 must also complete a minimum of 6 ~ hours of continuing
817 education courses every 2 years.
818 (e) An individual subject to chapter 648 must complete the
819 4-hour 5 hour update course and a minimum of 10 ~ hours of
820 elective continuing education courses every 2 years.
821 (f) Elective continuing education courses for public
822 adjusters must be specifically designed for public adjusters and
823 approved by the department. Notwithstanding this subsection,
824 public adjusters for workers' compensation insurance or health
825 insurance are not required to take continuing education courses
826 pursuant to this section.
827 (g) Excess hours accumulated during any 2-year compliance
828 period may be carried forward to the next compliance period.

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Amendment No. 1.

829 (h) An individual teaching an approved course of
830 instruction or lecturing at any approved seminar and attending
831 the entire course or seminar qualifies for the same number of
832 classroom hours as would be granted to a person taking and
833 successfully completing such course or seminar. Credit is
834 limited to the number of hours actually taught unless a person
835 attends the entire course or seminar. An individual who is an
836 official of or employed by a governmental entity in this state
837 and serves as a professor, instructor, or in another position or
838 office, the duties and responsibilities of which are determined
839 by the department to require monitoring and review of insurance
840 laws or insurance regulations and practices, is exempt from this
841 section.
842 (i) For compliance periods beginning on or after October
843 1, 2014, any person who holds a license as a title insurance
844 agent must complete a minimum of 10 hours of continuing
845 education credit every 2 years in title insurance and escrow
846 management specific to this state and approved by the
847 department, which shall include at least 3 hours of continuing
848 education on the subject matter of ethics, rules, or compliance
849 with state and federal regulations relating specifically to
850 title insurance and closing services.
851 (j) For a licensee who is an active participant in an
852 association, 2 hours of elective continuing education credit per

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Amendment No. 1.

853 calendar year may be approved by the department, if properly
854 reported by the association.
855 Section 18. Section 40 of chapter 2019-140, Laws of
856 Florida, is amended to read:
857 Section 40. (1) The Legislature finds that:
858 (a) Blockchain technology and distributed ledger
859 technology allow the secure recording of transactions through
860 cryptographic algorithms and distributed record sharing, and
861 such technology has reached a point where the opportunities for
862 efficiency, cost savings, and cybersecurity deserve study.
863 (b) Blockchain technology is a promising way to facilitate
864 more efficient government service delivery models and economies
865 of scale, including facilitating safe paperless transactions and
866 recordkeeping that are nearly impervious to cyberattacks and
867 data destruction.
868 (c) Blockchain technology can reduce the prevalence of
869 disparate government computer systems, databases, and custom-
870 built software interfaces; reduce costs associated with
871 maintenance and implementation; streamline information sharing;
872 and allow more areas of the state to electronically participate
873 in government services.
874 (d) Nations, other states, and municipalities across the
875 world are studying and implementing governmental reforms that
876 bolster trust and reduce bureaucracy through verifiable open
877 source blockchain technology in a variety of areas, including,

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Amendment No. 1.

878 but not limited to, medical and health records, land records,
879 banking, tax and fee payments, smart contracts, professional
880 accrediting, and property auctions.
881 (e) It is in the public interest to establish a Florida
882 Financial Technology and Blockchain Task Force comprised of
883 government and industry representatives to study the ways in
884 which state, county, and municipal governments can benefit from
885 a transition to a blockchain-based system for recordkeeping,
886 security, and service delivery and to develop and submit
887 recommendations to the Governor and the Legislature concerning
888 the potential for implementation of blockchain-based systems
889 that promote government efficiencies, better services for
890 citizens, economic development, and safer cyber-secure
891 interaction between government and the public.
892 (2) The Florida Financial Technology and Blockchain Task
893 Force, a task force as defined ins. 20.03, Florida Statutes, is
894 established within the Department of Financial Services to
895 explore and develop a master plan for fostering the expansion of
896 financial technology and the blockchain industry in the state,
897 to recommend policies and state investments to help make this
898 state a leader in financial and blockchain technologies
899 technology, and to issue a report to the Governor and the
900 Legislature. The task force shall study if and how state,
901 county, and municipal governments can benefit from a transition
902 to a blockchain-based system for recordkeeping, data security,
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Amendment No. 1.

903 financial transactions, and service delivery and identify ways
904 to improve government interaction with businesses and the
905 public. The task force shall also consider financial technology
906 innovations related to money transmitters and payment instrument
907 sellers, as defined ins. 560.103, Florida Statutes, including
908 mediums of exchange that are in electronic or digital form, and
909 identify new products and services that could lead to business
910 growth in the state.
911 (a) The master plan shall:
912 1. Identify the economic growth and development
913 opportunities presented by financial and blockchain technologies
914 technology.
915 2. Assess the existing blockchain industry in the state.
916 3. Identify innovative and successful blockchain
917 applications currently used by industry and other governments to
918 determine viability for state applications.
919 4. Review workforce needs and academic programs required
920 to build blockchain technology expertise across all relevant
921 industries.
922 5. Make recommendations to the Governor and the
923 Legislature that will promote innovation and economic growth by
924 reducing barriers to and expediting the expansion of the state's
925 financial technology and blockchain industries industry.
926 (b) The task force shall consist of 13 members. Membership
927 shall be as follows:
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Amendment No. 1.

928 1. Three agency heads or executive directors of cabinet
929 agencies, or their designees, appointed by the Governor.
930 2. Four members of the public or private sector with
931 knowledge and experience in blockchain technology, appointed by
932 the Governor.
933 3. Three members from the public or private sector with
934 knowledge and experience in blockchain technology, appointed by
935 the Chief Financial Officer.
936 4. One member from the private sector with knowledge and
937 experience in blockchain technology, appointed by the President
938 of the Senate.
939 5. One member from the private sector with knowledge and
940 experience in blockchain technology, appointed by the Speaker of
941 the House of Representatives.
942 6. One certified public accountant licensed pursuant to
943 chapter 473 with knowledge and experience in blockchain
944 technology, appointed by the Governor.
945
946 Members of the task force shall reflect the ethnic diversity of
947 the state.
948 (c) Within 90 days after the effective date of this act, a
949 majority of the members of the task force must be appointed and
950 the task force shall hold its first meeting. The task force
951 shall elect one of its members to serve as chair. Members of the
952 task force shall serve for the duration of the existence of the

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Amendment No. 1.

953 task force. Any vacancy that occurs shall be filled in the same
954 manner as the original appointment. Task force members shall
955 serve without compensation, and are not entitled to
956 reimbursement for per diem or travel expenses.
957 (d) The task force shall study blockchain technology,
958 including, but not limited to, the following:
959 1. Opportunities and risks associated with using
960 blockchain and distributed ledger technology for state and local
961 governments.
962 2. Different types of blockchains, both public and
963 private, and different consensus algorithms.
964 3. Projects and cases currently under development in other
965 states and local governments, and how these cases could be
966 applied in this state.
967 4. Ways the Legislature can modify general law to support
968 secure paperless recordkeeping, increase cybersecurity, improve
969 interactions with citizens, and encourage blockchain innovation
970 for businesses in the state.
971 5. Identifying potential economic incentives for companies
972 investing in blockchain technologies in collaboration with the
973 state.
974 6. Recommending projects for potential blockchain
975 solutions, including, but not limited to, use cases for state
976 agencies that would improve services for citizens or businesses.

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Amendment No. 1.

977 7. Identifying the technical skills necessary to develop
978 blockchain technology and ensuring that instruction in such
979 skills is available at secondary and postsecondary educational
980 institutions in this state.
981 (3) The task force shall submit a report to the Governor,
982 the President of the Senate, and the Speaker of the House of
983 Representatives and present its findings to the appropriate
984 legislative committees in each house of the Legislature by
985 January 31, 2021 within 180 days after the initial meeting of
986 the task force. The report must include:
987 (a) A general description of the costs and benefits of
988 state and local government agencies using blockchain technology.
989 (b) Recommendations concerning the feasibility of
990 implementing blockchain technology in the state and the best
991 approach to finance the cost of implementation.
992 (c) Recommendations for specific implementations to be
993 developed by relevant state agencies.
994 (d) Any draft legislation the task force deems appropriate
995 to implement such blockchain technologies.
996 (e) Identification of one pilot project that may be
997 implemented in the state.
998 (f) Any other information deemed relevant by the task
999 force.

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COMMITTEE/SUBCOMMITTEE AMENDMENT
Bill No. CS/HB 1077 (2020)
Amendment No. 1.

1000 (4) The task force is entitled to the assistance and
1001 services of any state agency, board, bureau, or commission as
1002 necessary and available for the purposes of this section.
1003 (5) The Department of Financial Services shall provide
1004 support staff for the task force and any relevant studies, data,
1005 and materials in its possession to assist the task force in the
1006 performance of its duties.
1007 (6) The task force shall terminate upon submission of the
1008 report and the presentation of findings.
1009 (7) This section shall take effect upon this act becoming
1010 a law.
1011 Section 19. Except as otherwise expressly provided in this
1012 act and except for this section, which shall take effect upon
1013 this act becoming a law, this act shall take effect July 1,
1014 2020.
1015
1016
1017 TITLE AMENDMENT
1018 Remove everything before the enacting clause and insert:
1019
1020 A bill to be entitled
1021 An act relating to the Department of Financial
1022 Services; amending s. 20.121, F.S.; specifying powers
1023 and duties of the Division of Public Assistance Fraud;
1024 creating s. 284.45, F.S.; prohibiting individuals
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COMMITTEE/SUBCOMMITTEE AMENDMENT
Bill No. CS/HB 1077 (2020)
Amendment No. 1.

1025 working for an entity covered by the State Risk
1026 Management Trust Fund from engaging in retaliatory
1027 conduct against a sexual harassment victim; defining
1028 the term ''sexual harassment victim"; prohibiting the
1029 release of personal identifying information of sexual
1030 harassment victims; providing criminal penalties;
1031 amending s. 497.101, F.S.; revising provisions
1032 relating to membership of the Board of Funeral,
1033 Cemetery, and Consumer Services; creating s. 497.1411,
1034 F.S.; providing definitions; providing for permanent
1035 disqualification of applicants for licensure under ch.
1036 497, F.S., upon conviction of certain offenses;
1037 providing for disqualifying periods for such
1038 applicants who have been convicted of certain
1039 offenses; requiring rulemaking; providing for
1040 calculation of disqualifying periods; providing for
1041 applicants to show rehabilitation after completion of
1042 a disqualifying period; providing for the effect of a
1043 pardon or clemency; providing for exemptions from
1044 disqualification in certain circumstances; providing
1045 procedures for consideration of applications for such
1046 exemptions; amending s. 497.142, F.S.; revising
1047 provisions relating to criminal background checks for
1048 applicants under ch. 497, F.S.; amending s. 497.157,
1049 F.S.; prohibiting persons from acting as or

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COMMITTEE/SUBCOMMITTEE AMENDMENT
Bill No. CS/HB 1077 (2020)
Amendment No. 1.

1050 advertising themselves as being certain persons unless
1051 they are so licensed; prohibiting persons from
1052 engaging in certain activities requiring licensure
1053 without holding required licenses; providing criminal
1054 penalties; amending s. 497.159, F.S.; deleting
1055 provisions relating to criminal penalties for persons
1056 engaging in activities requiring a license under ch.
1057 497, F.S.; amending s. 497.459, F.S.; revises
1058 provisions concerning notice to purchasers of preneed
1059 contracts; amending s. 552.081, F.S.; revising the
1060 definition of two-component explosives for the purpose
1061 of regulation by the Division of State Fire Marshal;
1062 amending s. 553.7921, F.S.; revising requirements for
1063 repair of an existing alarm system that was previously
1064 permitted by a local enforcement agency; s. 633.102,
1065 F.S.; amending s. 633.102, F.S.; revising provisions
1066 concerning licensure for design, installation, and
1067 alteration of fire sprinklers; creating s. 633.217,
1068 F.S.; prohibiting certain actions to influence a
1069 firesafety inspector into violating certain
1070 provisions; prohibiting a firesafety inspector from
1071 knowingly and willfully accepting an attempt to
1072 influence the firesafety inspector into violating
1073 certain provisions; amending s. 633.304, F.S.;
1074 specifying that training courses offered by the State
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COMMITTEE/SUBCOMMITTEE AMENDMENT
Bill No. CS/HB 1077 (2020)
Amendment No. 1.

1075 Fire College must include a written and a practical
1076 element and be approved by the State Fire Marshal;
1077 amending s. 633.416, F.S.; providing that certain
1078 persons serving as volunteer firefighters may serve as
1079 a regular or permanent firefighter for a limited
1080 period subject to certain restrictions; amending s.
1081 843.08, F.S.; prohibiting false personation of
1082 personnel or representatives of the Division of
1083 Investigative and Forensic Services; providing
1084 criminal penalties; amending s. 943.045, F.S.;
1085 providing the investigations component of the
1086 Department of Financial Services is a criminal justice
1087 agency for specified purposes; amending s. 626.2815,
1088 F.S.; revising continuing education requirements for
1089 title insurance agents; renaming the Florida
1090 Blockchain Task Force as the Florida Financial
1091 Technology and Blockchain Task Force; revising the
1092 duties of the task force; revising the date of a
1093 report; providing effective dates.
1094

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COMMITTEE/SUBCOMMITTEE AMENDMENT
Bill No. CS/HB 1077 (2020)
Amendment No. aal

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 Santiago offered the following:
3
4 Amendment to Amendment (434827) by Representative LaMarca
5 (with title amendment)
6 Between lines 531 and 532 of the amendment, insert:
7 Section 1. Subsection (18) of section 633.202, Florida
8 Statutes, is amended to read:
9 633.202 Florida Fire Prevention Code.-
10 (18) The authority having jurisdiction shall determine the
11 minimum radio signal strength for fire department communications
12 in all new high-rise and existing high-rise buildings. Existing
13 buildings are not required to comply with minimum radio strength
14 for fire department communications and two-way radio system
15 enhancement communications as required by the Florida Fire
16 Prevention Code until January 1, 2022. However, by December 31,
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COMMITTEE/SUBCOMMITTEE AMENDMENT
Bill No. CS/HB 1077 (2020)
Amendment No. aal

17 2019, an existing building that is not in compliance with the
18 requirements for minimum radio strength for fire department
19 communications must apply for an appropriate permit for the
20 required installation with the local government agency having
21 jurisdiction and must demonstrate that the building will become
22 compliant by January 1, 2022. Existing apartment buildings are
23 not required to comply until January 1, 2025. However, existing
24 apartment buildings are required to apply for the appropriate
25 permit for the required communications installation by December
26 31, 2022.
27 (a) The authority having jurisdiction may require
28 assessment of a new or existing building's interior radio
29 coverage and signal strength, for purposes of determining the
30 need for two-way radio communications enhancement system within
31 the building, no more frequently than:
32 1. For a high-rise building, once every 3 years; or
33 2. For any other building, once every 5 years.
34 (b) When an assessment of a new building's interior radio
35 coverage and signal strength determines that installation of a
36 two-way radio communications enhancement system is required, the
37 jurisdiction may not withhold issuance of a certificate of
38 occupancy for the building, if the Florida licensed architect or
39 engineer who designed the building, in his or her professional
40 judgment, projected based on the available evidence of radio
41 coverage that a two-way radio communications enhancement system
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COMMITTEE/SUBCOMMITTEE AMENDMENT
Bill No. CS/HB 1077 (2020)
Amendment No. aal

42 would not be necessary to meet the minimum standards for
43 interior radio coverage and signal strength. The local authority
44 having jurisdiction must not require installation of the two-way
45 radio communications enhancement system until at least 90 days
46 after completion of the building's interior radio coverage and
47 signal strength assessment report.
48
49
50
51 T I T L E A ME N D ME N T
52 Remove line 1067 of the amendment and insert:
53 alteration of fire sprinklers; amending s. 633.202, F.S.; providing
54 requirements for local jurisdictions related to assessments and
55 installation of two-way radio communications enhancement systems;
56 creating s. 633.217,

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COMMITTEE/SUBCOMMITTEE AMENDMENT
Bill No. CS/HB 1077 (2020)
Amendment No. aa2

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 Fischer offered the following:
3
4 Amendment to Amendment (434827) by Representative LaMarca
5 (with title amendment)
6 Between lines 531 and 532 of the amendment, insert:
7 Section 12. Paragraph (e) of subsection (20) of section
8 633.202, Florida Statutes, is amended to read:
9 633.202 Florida Fire Prevention Code.-
10 (20)
11 (e) This subsection is repealed on July 1, 2024 ~ -
12
13
14 T I T L E A ME N D ME N T
15 Remove line 1067 of the amendment and insert:

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COMMITTEE/SUBCOMMITTEE AMENDMENT
Bill No. CS/HB 1077 (2020)
Amendment No. aa2

16 alteration of fire sprinklers; amending s. 633.202,
17 F.S.; extending a repeal date; creating s. 633.217,

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COMMITTEE/SUBCOMMITTEE AMENDMENT
Bill No. CS/HB 1077 (2020)
Amendment No. aa3

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 Fitzenhagen offered the following:
3

4 Amendment to Amendment (434827) by Representative LaMarca
5 (with title amendment)
6 Between lines 1010 and 1011 of the amendment, insert:
7 Section 19. Section 662.149, Florida Statutes, is created
8 to read:
9 662.149 Publication exemption for applications.-
10 Notwithstanding s. 120.80(3) (a)l.a., the office may not file in
11 the Florida Administrative Register notice of an application
12 filed pursuant to this chapter.
13
14
15 T I T L E A ME N D ME N T
16 Remove line 1093 of the amendment and insert:

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COMMITTEE/SUBCOMMITTEE AMENDMENT
Bill No. CS/HB 1077 (2020)
Amendment No. aa3

17 report; prohibiting the Office of Financial Regulation
18 from filing notice of a family trust company
19 application in the Florida Administrative Register;
20 providing effective dates.

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0

-
CJ)
:I:
m
HOUSE OF REPRESENTATIVES STAFF ANALYSIS
BILL #: CS/HB 1137 Consumer Protection
SPONSOR(S): Insurance & Banking Subcommittee, Clemons
TIED BILLS: IDEN./SIM. BILLS: SB 1492

REFERENCE ACTION ANALYST STAFF DIRECTOR or
BUDGET/POLICY CHIEF

1) Insurance & Banking Subcommittee 12 Y, 0 N, As CS Fortenberry Cooper

2) Government Operations & Technology 13 Y, 0 N Helpling Topp
Appropriations Subcommittee

3) Commerce Committee Fortenber

SUMMARY ANALYSIS
The bill makes the following changes to the laws governing the divisions under the Florida Department of
Financial Services (DFS):
• Consumer Credit Scores and Security Freezes-The bill eliminates consumer reporting agencies'
ability to charge a fee for a personal identification number used to place a security freeze. The bill
requires that insurers notify applicants of the availability of DFS's financial literacy resources at the time
they notify them of the use of credit scores and reports for underwriting purposes.
• Consumer Services-The bill requires that licensees provide documents when responding to written
requests from DFS or the Office of Insurance Regulation and it eliminates obsolete penalties.
• Professions-The bill establishes insurance adjusting firms' licensure requirements and penalties for
licensees who aid and abet unlicensed individuals, adds grounds upon which DFS may revoke or
suspend licenses, and permits suspension of a title insurance agent's license for two years
• Agency Names-DFS may disapprove insurance agency names when they may mislead the public, but
DFS seeks the specific authority to disapprove agency names that contain "Medicare" and "Medicaid."
This bill provides the authority for DFS to disapprove agency names containing those words.
• Industrial Class Insurers-The bill amends the laws regarding industrial life insurance, small policies
written upon individual lives, so that no such policies may be sold in Florida after July 1, 2020.
• Policyholder Rights-The bill extends the time that a policyholder has to cancel a contract with a public
adjuster, and amends the Homeowners Claim Bill of Rights and property insurer claim's handling
requirements, including policyholder notification of a change in adjuster.
• Export to Surplus Lines-The bill mandates that the notification regarding the export of a policy to the
surplus lines market, currently given only to commercial policyholders, be given to all policyholders.
• Unfair or Deceptive Acts-Sliding, an insurance agent's failure to fully disclose the details of, and
obtain consent to, purchase of service and products, is prohibited. The bill adds two grounds, based
upon effectuating an entire insurance policy without consent, to the list of acts that constitute sliding.
• Foreign Venue Clauses Prohibited-Florida law does not mandate that dispute resolution for policies
sold in Florida, and insuring property in Florida, on the admitted or surplus lines markets, occur within
the state. The bill amends the law so that dispute resolution for such policies must occur in Florida.
• Florida Insurance Guaranty Association (FIGA) Deductible-Currently, a policyholder whose claim
is covered by FIGA must pay a $100 deductible on that claim. The bill eliminates that deductible.
• Unclaimed Property-Florida law provides a detailed framework for the recovery of unclaimed property
held by DFS. The bill creates uniform forms for use by claimants' representatives involved in the
recovery process and caps the fees such representatives may charge.
The bill may have a positive impact on state revenues. It has no impact on state expenditures or local
government revenues or expenditures. The bill may have a positive economic benefit to consumers and a
possible indeterminate negative economic impact on insurers.
Except where otherwise provided, the bill is effective upon becoming law.

This document does not reflect the intent or official position of the bill sponsor or House of Representatives.
STORAGE NAME: h1137d.C0M.D0CX
DATE: 2/10/2020
FULL ANALYSIS

I. SUBSTANTIVE ANALYSIS

A. EFFECT OF PROPOSED CHANGES:
The Department of Financial Services (DFS) is composed of 13 divisions and one independent office.
They are the Divisions of:
• Accounting and Auditing;
• Consumer Services;
• Funeral, Cemetery, and Consumer Services;
• Insurance Agent and Agency Services;
• Investigative and Forensic Services (DIFS);
• Public Assistance Fraud (DPAF);
• Rehabilitation and Liquidation;
• Risk Management;
• State Fire Marshal;
• Treasury;
• Unclaimed Property;
• Workers' Compensation;
• Administration; and the
• Office of Insurance Consumer Advocate.

Consumer Credit Reports and Scores and Security Freezes

Security Freezes

Section 501.0051, F.S., permits a consumer to put a security freeze on his or her credit report, which
prohibits a consumer reporting agency from releasing the consumer's credit report, credit score, or any
information contained within the consumer report without express authorization. In order to place a
security freeze, a consumer must utilize a unique personal identification number (PIN). In 2018, the
law was amended to prevent a credit reporting agency from charging a fee of up to $10 for a consumer
to place a security freeze. 1 However, current law permits a consumer reporting agency to charge a
consumer up to $10 to provide or reissue a unique PIN to a consumer.

Effect of the Bill

The bill removes a credit reporting agency's ability to charge a fee of $10 or less to reissue or provide a
unique PIN to a consumer to use to obtain a credit report security freeze.

Credit Reports or Scores

Under certain circumstances, insurers are permitted to utilize applicants' credit reports and scores in
underwriting and rating decisions. 2 The insurer must notify applicants that credit reports and scores are
being utilized for these purposes. 3 DFS currently offers free financial literacy programs and maintains a
toll-free insurance consumer helpline and a website to assist consumers with insurance questions,
concerns, and complaints. 4 Insurers are not required to provide applicants with information regarding
these resources when they notify them of the use of their credit reports and scores.

1
Ch. 2018-62, Laws of Fla.
2
Sees. 626.9741, F.S.
3 Id.
4
Florida Department of Financial Services, Agency Analysis of House Bill 1137, p. 3 (Jan. 15, 2020).
STORAGE NAME: h1137d.COM.D0CX PAGE: 2
DATE: 2/10/2020
Effect of the Bill

The bill provides that, at the same time that insurers inform consumers of the use of credit reports and
scores for underwriting and rating purposes, the insurers must provide consumers with notification that
DFS offers free financial literacy programs to assist them in understanding how credit scores are
calculated, what factors are considered, and how credit works.

Companies' Responses to Department of Financial Services Division of Consumer Services

Current law requires that licensees holding certificates of authority from DFS (agents and agencies) or
the Office of Insurance Regulation (OIR) (insurance companies) must respond to written requests from
DFS or OIR concerning consumer complaints. It does not require that the licensees provide documents
in response to such requests. 5 Additionally, the law contains administrative penalties for an individual's
noncompliance with DFS's or OIR's written requests related to consumer complaints that have never
been utilized and are obsolete. 6

Effect of the Bill

The bill adds requested documents to the response that a licensee must provide to DFS or OIR when
one of those agencies makes a written request to a licensee regarding a consumer complaint, but
specifies that documents need not be released if they are protected by attorney-client privilege. It also
eliminates the monetary penalties for noncompliance by an individual, while leaving them in place for
noncompliance by a licensed entity.

Requirements Placed on Licensees of the Department of Financial Services

Agents, Customer and Service Representatives, Adjusters, Insurance Agencies, Managing General
Agents, and Insurance Adjusting Firms

Section 626.112, F.S., sets forth various requirements that insurance agents, agencies, adjusters,
customer and service representatives, and managing general agents must meet in order to operate
within Florida. However, it includes no requirements for insurance adjusting firms. DFS has indicated
that the lack of requirements renders them unable to track and address concerns with adjusting firms
and adjusters who work for them. 7

Additionally, while current law provides penalties for acting as an unlicensed insurance agent, adjuster,
customer or service representative, or managing general agent, it does not provide any penalties for
aiding or abetting an unlicensed person in transacting insurance or otherwise engaging in insurance
activities within the state.

Effect of the Bill

The bill establishes that no individual or entity may act as an adjusting firm unless it complies with the
legal requirements for obtaining an adjusting firm license for each location where activity occurs that
only a licensed adjuster may perform. However, a licensed adjusting firm owned and operated by a
single licensed adjuster conducting business in his or her individual name and not employing or using
the services of other licensees is exempt from this requirement. If an adjusting firm is required to be
licensed, but fails to apply for licensure, it may be assessed an administrative penalty of up to $10,000.

5
S. 627.307, F.S.
6
Florida Department of Financial Services (DFS), Agency Analysis of House Bill 1137, p. 2 (Jan. 15, 2020).
7
Id.
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DATE: 2/10/2020
The bill also establishes that any person who knowingly aids or abets an unlicensed person in
transacting insurance or otherwise engaging in insurance activities in Florida without a license commits
a third-degree felony.

Grounds for Refusal. Suspension, or Revocation of Agent's, Adjuster's, Customer or Service
Representative's, or Managing General Agent's License or Appointment

Section 626.621, F.S., provides grounds under which DFS may deny an application for, suspend,
revoke, or refuse to renew or continue the license or appointment of an applicant, agent, adjuster,
customer or service representative, or managing general agent. Currently, these licensees or
appointees are not required to maintain the privacy of consumers' financial and medical information. 8
Additionally, Florida law does not provide for administrative action when a person violates Federal
Trade Commission laws regarding telephone solicitation. 9

Effect of the Bill

The bill adds the following to the grounds for which DFS can deny an application for, suspend, revoke,
or refuse to renew or continue the license or appointment of the above-listed persons:
• permitting a consumer's or customer's personal financial or medical information to be made
available or accessible to the general public; and
• initiating in-person or telephone solicitation after 9 p.m. or before 8 a.m. local time of the
prospective customer unless the prospective customer requests such contact.

Title Insurance Agents

DFS regulates title insurance agents under ch. 626, part v, F.S. While Florida law provides that the
licenses of most insurance agents or agencies may be suspended for two years for violations of the
Florida Insurance Code, s. 626.8443, F.S., only provides DFS with the authority to suspend a title
insurance agent's or agency's license for one year. 10

Effect of the Bill

The bill extends the period for which a title agent's or agency's license can be suspended from one
year to two years to conform to suspension periods for other license types, to allow the agent or agency
more time to renew the suspended license before it expires, and to ensure greater consumer
protection. 11

Bail Bond Agents

Under s. 648.30, F.S., bail bond agents and temporary bail bond agents must be licensed in order to
operate within Florida. While this statute provides for penalties for operating as a bail bond agent or
temporary bail bond agent without a license, it does not currently provide any penalty for a licensee
under ch. 648, F.S., who aids or abets an unlicensed individual to violate the provisions of the
chapter. 12

8 Id.
9 Id.
10
Id. at 3.
11
Id. at 6.
12
S. 648.30, F.S.
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DATE: 2/10/2020
Effect of the Bill

The bill provides that any licensee under ch. 648, F.S. who knowingly aids or abets an unlicensed
person in violating the licensure and appointment requirements of the chapter commits a third-degree
felony.

Agency Names

Existing Florida law permits DFS to disapprove insurance agency names under certain circumstances,
including when those names may mislead the public. 13 DFS has concerns that the inclusion of the
words "Medicare" or "Medicaid" in the name of an insurance agency may confuse "vulnerable
consumers" about the nature of the agency, but it lacks the specific authority to disapprove an agency
name that includes those words. 14

Effect of the Bill

The bill adds Medicare and Medicaid to the grounds for which DFS may disapprove an insurance
agency name. An agency licensed as of July 1, 2020, whose name contains the word Medicare or
Medicaid, may continue to use the name as long as its license remains valid. If its license expires, is
suspended, or is revoked, it may not be relicensed using the existing name.

Industrial Class Insurers

Industrial class insurers write industrial life insurance policies, which are life insurance policies written
upon individual lives in small amounts for which agents generally collect weekly or monthly premiums. 15
In general, the prevalence of industrial life insurance policies has continued to decline. Based upon
data available from DFS, no new industrial life insurance has been written in the past year and few
licensed life insurers continue to maintain industrial life insurance policies. 16

Effect of the Bill

The bill amends and repeals the statutes related to industrial class insurers and industrial life insurance
so that no industrial life insurance policy may be sold in Florida after July 1, 2020. The bill has no effect
on industrial life insurance policies that were sold prior to that date and have continued to remain in
force.

Policyholder Rights

Public Adjusters

Public adjusters are regulated under ch. 626, part VI, F.S. Florida law defines a public adjuster as
someone who, for something of value, directly or indirectly, prepares, completes, or files an insurance
claim for an insured or third-party claimant, or who, for something of value, acts on behalf of, or aids, an
insured or third-party claimant in settling a claim for loss or damage covered by an insurance contract,
or who advertises for employment as an adjuster of such claims.17 In general, a claimant executes a
contract for the public adjuster to provide claims adjusting services. 18 At present, such a contract may
only be canceled within three days after the latter of the date on which the contract was executed on

13
S. 626.062, F.S.
14
DFS, supra, at 2.
15
Merriam-Webster Dictionary, https://www.merriam-webster.com/dictionary/industrial%20life%20insurance (last visited January
26, 2020).
16
DFS, supra, at 3.
17
S. 626.854, F.S.
18
See id.
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DATE: 2/10/2020
which the claimant has notified the insurer of the claim. 19 According to information received from DFS,
following the hurricanes that have affected Florida in recent years, consumers have complained about
claims resolution delays due to the lack of responsiveness of public adjusters they hired and the
inability to cancel contracts they have executed with these adjusters. 20

Effect of the Bill

The bill establishes that, during a state of emergency declared by the Florida Governor, and for one
year after the date of loss, an insured or claimant may cancel a contract with a public adjuster without
penalty or obligation within the latter of 21 calendar days after the date on which the contract was
executed or the date on which the insured or claimant notified the insurer of the claim. In the absence
of a declared state of emergency and beyond the one-year period following any declared state of
emergency, an insured or claimant has seven calendar days, after the latter of the date on which the
policyholder executed a contract with a public adjuster or the date on which the insured or claimant
notified the insurer of the claim, to cancel the contract without penalty or obligation.

Homeowner Claims Bill of Rights and Policy Delivery

Section 627.7142, F.S., contains a Homeowners Claim Bill of Rights (Bill of Rights) that insurers
issuing personal lines residential property insurance policies in Florida must provide to policyholders
within 14 days after receiving an initial communication with respect to a claim. While the Bill of Rights
does not contain all of the rights of a policyholder, it is designed to summarize some of the significant
rights, including rights regarding communications from insurers, payments of claims, and resolution of
disputed claims. 21 At present, when timeframes are listed in the Bill of Rights, they do not specify
whether they are determined in calendar or business days. 22 The Bill of Rights contains no
requirements that an insurer notify the policyholder when it assigns a different adjuster to the claim. It
does not specify that a policyholder may be entitled to receive interest from an insurer when they
insurer fails to timely fulfil claim obligations. Furthermore, the Bill of Rights does not mention that a
policyholder may take video of damage before and after repairs in addition to photographs of the
damage.

Section 627.421, F.S., provides certain requirements for the delivery of an insurance policy to a
policyholder following the inception of coverage. However, it does not require that a personal lines
residential policyholder receive notice of his or her hurricane coverages at any point following the initial
delivery of a policy.

Effect of the Bill

The bill amends the Bill of Rights in the following ways:
• clarifies that all timeframes mentioned within it will be calculated based upon calendar days;
• states that a policyholder to which the Bill of Rights applies must receive notification from the
insurance company within seven calendar days if there has been a change in the company
adjuster assigned to a claim and the notification must include the assigned adjuster's contact
information
• states that a policyholder to which the Bill of Rights applies must receive the payment of interest
from the insurance company if the insurance company does not pay full settlement of a claim or
deny the claim within 90 calendar days after the claim is filed; and
• clarifies that in addition to photographs, a policyholder may take video of damage before and
after repairs.

19 [d
20
DFS, supra, at 3.
21
S. 627.7142, F.S.
22 [d.
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DATE: 2/10/2020
The bill amends the statute regarding delivery of insurance policies to require that for personal lines
residential property insurance policies, between March 1, and June 1, each year, the insurer shall
deliver a notification to all policyholders that outlines the hurricane coverage provided in the policy,
including the hurricane deductible and the coverages and exclusions. This notification will be provided
only to policyholders who have a valid email address on file with their insurers.

Insurer's Duties to Acknowledge and Investigate Claims

Pursuant to Florida law, residential property insurers have certain obligations regarding the handling of
claims, including responding to communications and timely payment or denial of claims. 23
Policyholders have complained to DFS that repeated changes in adjusters for insurance companies
have contributed to significant claim delays. 24 In addition, policyholders have indicated that because of
a lack of access to claims information, their insurance agents are not able to respond claims-related
questions in a meaningful way. 25

The applicable law neither requires that any licensed adjuster assigned by an insurer to conduct a
physical inspection of damage property provide the policyholder with his or her name, license number,
and contact information, nor requires that the insurer provide a copy of the inspection report to the
policyholder following receipt from the adjuster. There is no statutory requirement that an insurer notify
a policyholder when it has assigned a new adjuster to the policyholder's claim. Further, the law does
not contain any mandate that the insurer inform the policyholder of the fact that an estimate may be
preliminary in nature and may be revised or the fact that when a partial payment is issued the insurer is
continuing to evaluate a claim and may issue additional payments.

Effect of the Bill

The bill makes the following changes existing law regarding the investigation and adjusting of
residential property insurance claims:
• If an investigation of a claim involves a physical inspection of property, a licensed adjuster
assigned by the insurer must provide a policyholder with his or her name, license number, and
contact information.
• If an insurer assigns the claim to a new licensed adjuster following the receipt of the report, the
insurer must provide the policyholder with the name, license number, and contact information
for the newly assigned licensed adjuster within seven days after the change. Any subsequent
changes to the assigned licensed adjuster must be handled in the same way.
• An insurer must establish a process so that the named agent of record 26 for an insurance policy
is provided access to the information gathered from an inspection by an adjuster so that the
agent of record can answer policyholder questions regarding claims.
• When providing a preliminary or partial damage claim estimate or a preliminary or partial claim
payment, an insurer must provide a detailed disclosure as specified in the bill.

The bill establishes thats. 627.70131, F.S., regarding residential property insurance claims, shall be
applicable to surplus lines policies in addition to policies written on the admitted market.

Export of Policies to Surplus Lines

When insurance is not available to Florida consumers from authorized insurance carriers 27 , it generally
becomes necessary and legally permissible to obtain a policy on the surplus lines market. 28 However,

23
Sees. 627.70131, F.S.
24
DFS, supra, at 4.
25 Id
26
An agent ofrecord means that agent named on the declarations page of the insurance policy.
27
Authorized insurance carriers are those who have received a certificate of authority from OIR to transact insurance business within
the state. S. 624.06, F.S.
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DATE: 2/10/2020
under current surplus lines law, only consumers purchasing commercial insurance policies on the
surplus lines market receive notification at the time of purchase that policies are being issued on that
market. 29 Consequently, the first time that some residential policyholders are informed that their
policies have been issued by surplus lines carriers is after their policies have been issued. 30 The
notification currently provided to commercial policyholders whose policies are issued on the surplus
lines market also includes the statement that "superior coverage may be available in the admitted
market and at a lesser cost." 31

Effect of the Bill

The bill amends surplus lines law to require that, at the time policies are exported to the surplus lines
market, the notification statement currently signed by consumers whose commercial insurance policies
are being exported to the surplus lines market must be signed, or otherwise acknowledged by all
consumers whose insurance policies are being exported to the surplus lines market. The bill also
replaces the statement "superior coverage may be available in the admitted market and at a lesser
cost," with "coverage may be available in the admitted market."

Unfair Methods of Competition and Unfair or Deceptive Acts-Sliding

The Florida Insurance Code prohibits licensees from engaging in unfair methods of competition and
unfair or deceptive acts or practices, including sliding. 32 Sliding is the practice of an insurance agent's
failure to fully disclose the details of, and obtain consent to, the purchase of services and products. 33
Under Florida law, sliding currently includes: representing to an applicant that a specific ancillary
coverage or product is required by law when it is not; representing to an applicant that a specific
ancillary coverage or product is included in the policy applied for without an additional charge where
there is a charge for it; and charging an applicant for a specific ancillary coverage or product, in
addition to the cost of insurance applied for, without informing the applicant. 34 According to DFS, some
Florida insurers have begun a practice of effectuating entire policies without informing consumers they
have done so. 35

Effect of the Bill

The bill adds the following to the list of prohibited conduct that constitutes sliding:
• Initiating, effectuating, binding, or otherwise issuing an insurance policy without prior informed
consent from the owner of the property being insured; and
• Mailing, transmitting, or otherwise submitting a premium invoice to a mortgagee or escrow
agent in order to effectuate an insurance policy without the prior informed consent from the
owner of the property being insured. However, collateral protection insurance by a mortgagee or
escrow does not constitute sliding.

Foreign Venue Clauses in Property Insurance Policies

Currently, Florida law does not mandate that property claims dispute resolution for policies sold in
Florida, whether such resolution occurs through litigation, arbitration, or mediation, occur within Florida.

28
Sees. 626.913, F.S.
29
S. 626.916(3)(b)3, F.S.
30
DFS, supra, at 3.
31
S. 626.916(3)(b)3, F.S.
32
S. 626.9541, F.S.
33
Insurance Journal, Michigan Bulletin Warns Insurance Produces Against 'Sliding',
https://www.insurancejoumal.com/news/midwest/2018/05/l l/489050.htm (last visited January 26, 2020)
34
S. 626.954I(l)(z), F.S.
35
DFS, supra, at 3.
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The law contains no distinction for the location of dispute resolution regardless of whether a property
insurance policy was issued on the admitted or surplus lines markets. 36

Effect of the Bill

The bill provides that no property insurance policy sold in Florida, insuring property located in Florida,
after July 1, 2020, whether issued on the admitted or surplus lines markets, may require that an insured
engage in dispute resolution, through litigation, arbitration, or mediation, outside Florida.

Florida Insurance Guaranty Association Deductible

Under federal law, insurance companies cannot file for bankruptcy. 37 Instead, they are either
rehabilitated or liquidated by their state of domicile. Florida law establishes the system for the
treatment of impaired or insolvent insurers 38 in Florida and sets up guaranty associations where
necessary. 39 Florida operates four guaranty associations including the Florida Insurance Guaranty
°
Association (FIGA). 4 FIGA provides a "mechanism for the payment of covered claims under certain
insurance policies to avoid excessive delay in payment and to avoid financial loss to claimants or
policyholders because of the insolvency of an insurer." 41 It issues guaranty fund payments and
provides related services for all lines of property and casualty insurance with certain exceptions. 42
When a Florida property and casualty insurer becomes insolvent, FIGA takes over the claims of that
insurer and pays the claims of its policyholders, ensuring that policyholders are not left with unpaid
claims. Florida law provides that FIGA is only obligated to pay the portions of claims made to insolvent
property and casualty insurers, which are in excess of $100, and less than $300,000. 43 Under current
law, therefore, there is a $100 deductible on all property and casualty claims covered by FIGA.

Effect of the Bill

The bill eliminates the $100 deductible on claims paid by FIGA so that such claims will be covered for
any amount exceeding $0 and less than $300,000.

Unclaimed Property

Chapter 717, F.S., provides a framework for the rightful owners to obtain unclaimed property that is
held by DFS. Currently, licensed claimants' representatives are registered with DFS to gain access to
DFS's unclaimed property database and to seek authorizations from claimants to file claims on their
behalf for unclaimed property held by DFS. 44 Each registrant who files claims utilizes a unique power
of attorney through which claimants provide authorization to registrants. 45 The lack of uniformity in the
use of the powers of attorney poses problems for both consumers and for DFS staff.

Additionally, under current law, if a Full Disclosure Statement has been provided to an unclaimed
property claimant, fees collected by a claimant's representative for providing services related to the
collection of the unclaimed property are unlimited. 46 If the Full Disclosure Statement has not been

36
DFS, supra, at p.4.
37
11 U .S.C. § 109(b)(2).
38
An "insolvent insurer" means an insurer that was authorized to transact insurance in this state, either at the time the policy was
issued or when the insured event occurred, and against which an order of liquidation with a finding of insolvency has been entered by
a court of competent jurisdiction if such order has become final by the exhaustion of appellate review. S. 631.904(4), F.S.
39
Ch. 631, F.S.
4
41
° Ch. 631, part II, F.S.
S. 631.51, F.S.
42
S. 631.52, F.S.
43
S. 631.57(1), F.S.
44
DFS, supra, at 4.
45 Id.
46
S. 717.135, F.S. The text of the Full Disclosure Statement is located ins. 717.135(3)(a), F.S.
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provided to the claimant, then the fees are capped at 20% of the value of the property recovered, and
$1,000 per account claimed in the recovery. 47

Effect of the Bill

The bill changes the unclaimed property claims law to further streamline the process for consumers. It
provides that DFS will adopt forms by rule entitled "Florida Uniform Property Recovery Agreement"
(Recovery Agreement) and "Florida Uniform Property Purchase Agreement" (Purchase Agreement).
These Agreements will be the exclusive means of a claimant's representative engaging a claimant or
seller to file an unclaimed property claim with DFS.

The bill significantly amends s. 717.135, F.S., to eliminate the current power of attorney requirements
and replace them with requirements for the Recovery Agreement and Purchase Agreement. Pursuant
to the bill, the Recovery Agreement and Purchase Agreement must include and disclose:
• The total dollar amount of the unclaimed property accounts claimed or sold;
• Either the total percentage of all authorized fees and costs to be paid to the claimant's
representative or the percentage of the value of the property to be paid as net gain to the
purchasing registered claimant's representative;
• Either the total dollar amount to be deducted and received from the claimant as fees and costs
by the claimant's representative or the total net dollar amount to be received by the purchasing
registered claimant's representative;
• The net dollar amount the claimant or seller will receive;
• The unclaimed property account number and name of the owner for each account claimed;
• For the purchase agreement, a statement that the purchase price will be remitted to the seller
within 30 days after the seller executes the form;
• The name, contact information, and license number of the registered claimant's representative;
• The manual signature of the claimant or seller and the date signed;
• The social security number or taxpayer identification number of the claimant or seller, if
available; and
• A limit of total fees and costs, or the total discount amount in the case of a purchase agreement,
to no more than 20 percent of the claimed amount.

The Recovery Agreement and Purchase Agreement may not contain language that makes them
irrevocable or that creates an assignment of any unclaimed property held by DFS. For the Purchase
Agreement, if DFS does not receive proof that the seller received payment, then the claim is void.

All references to "power of attorney" within the remainder of the unclaimed property claims laws are
changed to the Recovery Agreement and Purchase Agreement, as appropriate, so that these forms will
be utilized in unclaimed property claims going forward in lieu of powers of attorney. Section 717.1351,
F.S., relating to the acquisition of unclaimed property is repealed because it is no longer necessary
following the additional changes to the unclaimed property claims laws set forth within the bill.

B. SECTION DIRECTORY:
Section 1. Amends s. 501.0051, F.S., relating to protected consumer report security freeze.

Section 2. Amends s. 624.307, F.S., relating to general powers; duties.

Section 3. Amends s. 626.112, F.S., relating to license and appointment required; agents, customer
representatives, adjusters, insurance agencies, service representatives, managing general
agents.

Section 4. Amends s. 626.602, F.S., relating to insurance agency names; disapproval.

47 Id.
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Section 5. Amends s. 626.621, F.S., relating to grounds for discretionary refusal, suspension, or
revocation of agent's, adjuster's, customer representative's, service representative's, or
managing general agent's license or appointment.

Section 6. Amends s. 626.782, F.S., relating to the definition of "Industrial class insurer."

Section 7. Amends s. 626.783, F.S., relating to the definition of "Ordinary-combination class insurer."

Section 8. Repeals s. 626.796, F.S., relating to representing another insurer in same industrial debit
territory.

Section 9. Amends s. 626.8443, F.S., relating to duration of suspension or revocation.

Section 10. Amends s. 626.854, F.S., relating to "Public adjuster" defined; prohibitions.

Section 11. Amends s. 626.916, F.S., relating to eligibility for export.

Section 12. Amends s. 626.9541, F.S., relating to unfair methods of competition and unfair or
deceptive acts or practices defined.

Section 13. Amends s. 626.9741, F.S., relating to use of credit reports and credit scores by insurers.

Section 14. Amends s. 626.9957, F.S., to conform cross-references.

Section 15. Amends s. 627.062, F.S., to conform cross-references.

Section 16. Amends s. 627.421, F.S., relating to delivery of policy.

Section 17. Amends s. 627.502, F.S., relating to "Industrial life insurance" defined; reporting;
prohibition on new policies after a certain date.

Section 18. Amends s. 627.70131, F.S., relating to insurer's duty to acknowledge communications
regarding claims; investigation.

Section 19. Creates s. 627.7031, relating to foreign venue clauses prohibited.

Section 20. Amends s. 627.7142, F.S., relating to Homeowner Claims Bill of Rights.

Section 21. Amends s. 631.57, F.S., relating to powers and duties of the association.

Section 22. Amends s. 648.30, F.S., relating to licensure and appointment required; prohibited acts;
penalties.

Section 23. Amends s. 717.124, F.S., relating to unclaimed property claims.

Section 24. Amends s. 717.12404, F.S., relating to claims on behalf of a business entity or trust.

Section 25. Amends s. 717.1315, F.S., relating to retention of records by claimant's representatives
and buyers of unclaimed property.

Section 26. Amends s. 717.1322, F.S., relating to administrative and civil enforcement.

Section 27. Amends s. 717.135, F.S., relating to power of attorney to recover reported property in the
custody of the department.
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Section 28. Repeals s. 717.1351, F.S., relating to acquisition of unclaimed property.

Section 29. Provides an effective date of upon becoming law, except as otherwise provided.

11. FISCAL ANALYSIS & ECONOMIC IMPACT STATEMENT

A. FISCAL IMPACT ON STATE GOVERNMENT:

1. Revenues:
The bill has the potential to result in increased revenues in the form of administrative fines collected
for violations of ss. 624.307 and 626.112, F.S.

Proceeds from the sale of unclaimed property are deposited into the Unclaimed Property Trust
Fund. DFS retains $15 million to make payments for claims and to administer the program.
Remaining funds are deposited by DFS into the State School Trust Fund. 48 Modifications to the
unclaimed property claims process may impact the funding available for transfer to the State School
Trust Fund. However, the modifications in the bill should not substantially impact revenue deposited
into the State School Trust Fund. DFS provided the following statement:

"There will be no impact on the total amounts paid each year - only a possible and likely shifting of
amounts within and among the claimants and various claimant's representatives. The fiscal will not
change." 49

2. Expenditures:
None.

B. FISCAL IMPACT ON LOCAL GOVERNMENTS:

1. Revenues:
None.

2. Expenditures:
None.

C. DIRECT ECONOMIC IMPACT ON PRIVATE SECTOR:
The bill may have positive economic impacts for consumers. It removes fees charged for the issuance
of PIN numbers and eliminates the deductible FIGA charges for claims it covers. Portions of the bill are
intended to expedite the handling of property insurance claims. If repairs are made sooner,
policyholders will be able to return home and, in some cases, return to work quicker. Businesses may
also benefit economically when homeowners, as consumers, are able to recover sooner after
catastrophes. Additionally, by streamlining the unclaimed property claim process using new forms and
by capping the fees that a claimants' representatives can charge, consumers may be able to keep a
greater percentage of the unclaimed property they recover.

The bill has the potential for negative direct economic impacts on the private sector. The inability of a
consumer reporting agency to charge a fee for a PIN will result in a loss of revenue for the consumer
reporting agencies. The amount of this loss is unknown.

48
S. 717.123 F.S.
49
Email from Meredith Stanfield, Director of Legislative and Cabinet Affairs, Department of Financial Regulation, RE: HB 1137
Unclaimed Property (Jan. 30, 2020).
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DATE: 2/10/2020
D. FISCAL COMMENTS:
None.

Ill. COMMENTS

A CONSTITUTIONAL ISSUES:

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

2. Other:
Article VII, s. 19, Fla. Const., may apply given the nature of the administrative penalty
created in Section 3 of the bill.

8. RULE-MAKING AUTHORITY:
The bill requires DFS to promulgate two new forms related to unclaimed property claims (Recovery
Agreement and Purchase Agreement) to be ,adopted pursuant to rule. Because s. 717.138, F.S.,
provides sufficient rulemaking authority for DFS to adopt rules pursuant under ch. 120, F.S., no
additional rulemaking authority is necessary.

C. DRAFTING ISSUES OR OTHER COMMENTS:
None.

IV. AMENDMENTS/ COMMITTEE SUBSTITUTE CHANGES
On January 28, 2020, the Insurance & Banking Subcommittee considered the bill, adopted one strike all
amendment, and reported the bill favorably as a committee substitute. The strike-all amendment contained
the provisions of the original bill and made the following modifications and clarifications:
• Clarified that the documents that a licensee must provide to DFS or OIR in response to a written
request are only those documents that are not subject to attorney-client privilege.
• Clarified that consumers must either sign or otherwise acknowledge receipt of the disclosure
notifying them of the export of their insurance policies to the surplus lines market and eliminated
from that disclosure the statement that coverage on the admitted market may not be cheaper.
• Clarified that collateral protection insurance by a mortgagee does not constitute sliding.
• Eliminated the requirement that personal lines residential property insurers must send the
Homeowner Claims Bill of Rights to policyholders each year. It also expanded the period during
which insurers must mail hurricane coverage information to policyholders from March 3 through
April 1, to March 1 through June 1, and provides that this information will only be provided to
policyholders who have email addresses on file with their insurers.
• Eliminated the requirement that an insurer send a copy of a physical inspection report from an
adjuster to a policyholder.
• Changed the effective date for certain sections of the bill to January 1, 2021.
• Made various formatting and technical changes to the bill.

The staff analysis has been updated to reflect the committee substitute.

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

CS/HB 1137 2020

1 A bill to be entitled
2 An act relating to consumer protection; amending s.
3 501.0051, F.S.; prohibiting consumer reporting
4 agencies from charging to reissue or provide a new
5 unique personal identifier to a consumer for the
6 removal of a security freeze; amending s. 624.307,
7 F.S.; revising a requirement for entities licensed or
8 authorized by the Department of Financial Services or
9 the Office of Insurance Regulation to respond to the
10 department's Division of Consumer Services regarding
11 consumer complaints; revising administrative penalties
12 the division may impose for failure to comply;
13 amending s. 626.112, F.S.; prohibiting unlicensed
14 activity by an adjusting firm; providing an exemption;
15 providing an exemption from licensure for branch firms
16 that meet certain criteria; providing an
17 administrative penalty for failing to apply for
18 certain licensure; providing a criminal penalty for
19 aiding or abetting unlicensed activity; deleting an
20 obsolete provision; amending s. 626.602, F.S.;
21 authorizing the department to disapprove the use of
22 insurance agency names containing the words "Medicare"
23 or "Medicaid''; providing an exception for certain
24 insurance agencies; amending s. 626.621, F.S.; adding
25 grounds on which the department may take certain

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26 actions against a license, appointment, or application
27 of certain insurance representatives; amending ss.
28 626.782 and 626.783, F.S.; revising the definitions of
29 the terms "industrial class insurer" and "ordinary-
30 combination class insurer," respectively, to conform
31 to changes made by the act; repealing s. 626.796,
32 F.S., relating to the representation of multiple
33 insurers in the same industrial debit territory;
34 amending s. 626.8443, F.S.; increasing the maximum
35 period of suspension of a title insurance agent's or
36 agency's license; amending s. 626.854, F.S.; revising
37 the timeframes in which an insured or claimant may
38 cancel a public adjuster's contract to adjust a claim
39 without penalty or obligation; amending s. 626.916,
40 F.S.; revising the classes of insurance subject to a
41 disclosure requirement before being eligible for
42 export under the Surplus Lines Law; amending s.
43 626.9541, F.S.; adding certain acts or practices to
44 the definition of sliding; amending s. 626.9741, F.S.;
45 requiring an insurer to include certain additional
46 information when providing an applicant or insured
47 with certain credit report or score information;
48 amending ss. 626.9957 and 627.062, F.S.; conforming
49 cross-references; amending s. 627.421, F.S.; requiring
50 personal lines residential property insurers to

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51 annually deliver a certain notification to certain
52 policyholders within a specified timeframe; amending
53 s. 627.502, F.S.; prohibiting life insurers from
54 writing new policies of industrial life insurance
55 beginning on a certain date; amending s. 627.70131,
56 F.S.; providing that communication made to or by an
57 insurer's representative, rather than to or by an
58 insurer's agent, constitutes communication to or by
59 the insurer; requiring an insurer-assigned licensed
60 adjuster to provide the policyholder with certain
61 information in certain investigations; specifying
62 requirements for insurers in notifying policyholders
63 for certain changes in assigned adjusters; requiring
64 an insurer to establish a process to provide the agent
65 of record access to claim status information for a
66 certain purpose; defining the term "agent of record";
67 requiring insurers to include specified notices when
68 providing preliminary or partial damage estimates or
69 claim payments; specifying the timeframe in which an
70 insurer must pay or deny property insurance claims
71 under certain circumstances; providing applicability;
72 conforming provisions to changes made by the act;
73 creating s. 627.7031, F.S.; prohibiting foreign venue
74 clauses in property insurance policies; providing
75 applicability; amending s. 627.7142, F.S.; revising

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76 information contained in the Homeowner Claims Bill of
77 Rights; conforming provisions to changes made by the
78 act; amending s. 631.57, F.S.; deleting a deductible
79 on the Florida Insurance Guaranty Association,
80 Incorporated's obligation as to certain covered
81 claims; amending s. 648.30, F.S.; prohibiting the
82 aiding or abetting of unlicensed activity of a bail
83 bond agent or temporary bail bond agent; amending ss.
84 71 7 . 12 4, 71 7 . 12 4 0 4, 71 7 . 1315, and 71 7 . 13 2 2, F. S. ;
85 conforming provisions to changes made by the act;
86 amending s. 717.135, F.S.; replacing provisions
87 relating to powers of attorney to recover unclaimed
88 property with provisions relating to uniform forms for
89 unclaimed property recovery agreements and purchase
90 agreements; requiring the department to adopt the
91 uniform forms by rule; specifying required information
92 and disclosures in the forms; requiring that, for the
93 purchase agreement form, proof the seller received
94 payment be filed with the department along with the
95 claim; requiring registered claimant's representatives
96 to use the forms as the exclusive means of engaging
97 with a claimant or seller to file claims and
98 prohibiting them from using or distributing other
99 agreements; specifying a limitation on fees and costs
100 owed or paid; prohibiting certain language in the

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101 forms; authorizing the department to pay additional
102 accounts owned by the claimant under certain
103 circumstances; providing construction; repealing s.
104 717.1351, F.S., relating to the acquisition of
105 unclaimed property; providing effective dates.
106
107 Be It Enacted by the Legislature of the State of Florida:
108
109 Section 1. Paragraph (b) of subsection (9) of section
110 501.0051, Florida Statutes, is amended to read:
111 501.0051 Protected consumer report security freeze.-
112 ( 9)

113 (b) A consumer reporting agency may not charge to a
114 reasonable fee, not to e1ceeed $10, if the representative fails
115 to retain the original unique personal identifier provided by
116 the eonsumer reporting agency and the agency must reissue the
117 unique personal identifier or provide a new unique personal
118 identifier to the consumer representative.
119 Section 2. Paragraph (b) of subsection (10) of section
120 624.307, Florida Statutes, is amended to read:
121 624.307 General powers; duties.-
122 ( 10)
123 (b) Any entity person licensed or issued a certificate of
124 authority by the department or the office shall respond, in
125 writing, to the division within 20 days after receipt of a

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126 written request for documents and information from the division
127 concerning a consumer complaint. The response must address the
128 issues and allegations raised in the complaint and include any
129 requested documents concerning the consumer complaint not
130 subject to attorney-client privilege. The division may impose an
131 administrative penalty for failure to comply with this paragraph
132 of up to $2,500 per violation upon any entity licensed by the
133 department or the office and $2§0 for the first violation, $§00
134 for the second violation, and up to $1,000 for the third or
135 subsequent violation upon any individual licensed by the
136 department or the office.
137 Section 3. Present subsection (9) of section 626.112,
138 Florida Statutes, is redesignated as subsection (10), a new
139 subsection (9) is added to that section, and paragraph (d) of
140 subsection (7) and present subsection (9) of that section are
141 amended, to read:
142 626.112 License and appointment required; agents, customer
143 representatives, adjusters, insurance agencies, service
144 representatives, managing general agents, insurance adjusting
145 firms.-
146 (7)

147 (d) Effective October 1, 201§, the department must
148 automatically convert the registration of an approved registered
149 insurance agency to an insurance agency license.
150 (9) (a) An individual, firm, partnership, corporation,

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151 association, or other entity may not act in its own name or
152 under a trade name, directly or indirectly, as an adjusting firm
153 unless it complies withs. 626.8696 with respect to possessing
154 an adjusting firm license for each place of business at which it
155 engages in an activity that may be performed only by a licensed
156 insurance adjuster. However, an adjusting firm that is owned and
157 operated by a single licensed adjuster conducting business in
158 his or her individual name and not employing or otherwise using
159 the services of or appointing other licensees is exempt from the
160 adjusting firm licensing requirements of this subsection.
161 (b) A branch place of business that is established by a
162 licensed adjusting firm is considered a branch firm and is not
163 required to be licensed if:
164 1. It transacts business under the same name and federal
165 tax identification number as the licensed adjusting firm;
166 2. It has designated with the department a primary
167 adjuster operating the location as required bys. 626.8695; and
168 3. The address and telephone number of the branch location
169 have been submitted to the department for inclusion in the
170 licensing record of the licensed adjusting firm within 30 days
171 after insurance transactions begin at the branch location.
172 (c) If an adjusting firm is required to be licensed, but
173 fails to file an application for licensure in accordance with
174 this section, the department shall impose on the firm an
175 administrative penalty of up to $10,000.

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176 J..1..Ql-f-9-t Any person who knowingly transacts insurance or
177 otherwise engages in insurance activities in this state without
178 a license in violation of this section or who knowingly aids or
179 abets an unlicensed person in transacting insurance or otherwise
180 engaging in insurance activities in this state without a license
181 commits a felony of the third degree, punishable as provided in
182 s. 7 7 5. 0 8 2, s. 7 7 5. 0 8 3, or s. 7 7 5. 0 8 4.
183 Section 4. Subsection (4) is added to section 626.602,
184 Florida Statutes, to read:
185 626.602 Insurance agency names; disapproval.-The
186 department may disapprove the use of any true or fictitious
187 name, other than the bona fide natural name of an individual, by
188 any insurance agency on any of the following grounds:
189 (4) The name contains the word "Medicare" or "Medicaid."
190 An insurance agency whose name contains the word "Medicare'' or
191 "Medicaid" but which is licensed as of July 1, 2020, may
192 continue to use that name as long as the agency's license is
193 valid. If the agency's license expires or is suspended or
194 revoked, the agency may not be relicensed using that name.
195 Section 5. Subsections (16) and (17) are added to section
196 626.621, Florida Statutes, to read:
197 626.621 Grounds for discretionary refusal, suspension, or
198 revocation of agent's, adjuster's, customer representative's,
199 service representative's, or managing general agent's license or
200 appointment.-The department may, in its discretion, deny an

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201 application for, suspend, revoke, or refuse to renew or continue
202 the license or appointment of any applicant, agent, adjuster,
203 customer representative, service representative, or managing
204 general agent, and it may suspend or revoke the eligibility to
205 hold a license or appointment of any such person, if it finds
206 that as to the applicant, licensee, or appointee any one or more
207 of the following applicable grounds exist under circumstances
208 for which such denial, suspension, revocation, or refusal is not
209 mandatory under s. 626.611:
210 ( 16) Allowing the personal financial or medical
211 information of a consumer or customer to be made available or
212 accessible to the general public, regardless of the format in
213 which the record is stored.
214 ( 17) Initiating in-person or telephone solicitation after
215 9 p.m~ or before 8 a.m. local time of the prospective customer
216 unless requested by the prospective customer.
217 Section 6. Section 626.782, Florida Statutes, is amended
218 to read:
219 626.782 "Industrial class insurer" defined.-An "industrial
220 class insurer" is an insurer collecting premiums on policies of
221 writing industrial life insurance, as defined ins. 627.502,
222 written before July 1, 2020, and as to such insurance~ operates
223 under a system of collecting a debit by its agent.
224 Section 7. Section 626.783, Florida Statutes, is amended
225 to read:

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226 626.783 "Ordinary-combination class insurer" defined.-An
227 "ordinary-combination class insurer" is an insurer writing betfi
228 ordinary class insurance and collecting premiums on existing
22 9 industrial life class insurance under s. 626.782.
230 Section 8. Section 626.796, Florida Statutes, is repealed.
231 Section 9. Subsection (1) of section 626.8443, Florida
232 Statutes, is amended to read:
233 626.8443 Duration of suspension or revocation.-
234 (1) The department shall, in its order suspending a title
235 insurance agent's or agency's license or appointment or in its
236 order suspending the eligibility of a person to hold or apply
237 for such license or appointment, specify the period during which
238 the suspension is to be in effect, but such period shall not
239 exceed 2 years 1 year. The license, e-r- appointment, or
240 eligibility shall remain suspended during the period so
241 specified, subject, however, to any rescission or modification
242 of the order by the department, or modification or reversal
243 thereof by the court, prior to expiration of the suspension
244 period. A license, appointment, or eligibility that which has
245 been suspended may not be reinstated except upon request for
246 such reinstatement, but the department shall not grant such
247 reinstatement if it finds that the circumstance or circumstances
248 for which the license, appointment, and eligibility was
249 suspended still exist or are likely to recur.
250 Section 10. Subsection (6) of section 626.854, Florida

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251 Statutes, is amended to read:
252 626.854 "Public adjuster" defined; prohibitions.-The
253 Legislature finds that it is necessary for the protection of the
254 public to regulate public insurance adjusters and to prevent the
255 unauthorized practice of law.
256 (6) Except during a state of emergency declared by the
257 Governor and except during the 1-year period after the date of
258 loss, an insured or claimant may cancel a public adjuster's
259 contract to adjust a claim without penalty or obligation within
260 7 calendar 3 business days after the date on which the contract
261 is executed or within 7 calendar 3 business days after the date
262 on which the insured or claimant has notified the insurer of the
263 claim, whichever is later. During a state of emergency declared
264 by the Governor or during the 1-year period after the date of
265 loss, an insured or claimant may cancel a public adjuster's
266 contract to adjust a claim without penalty or obligation within
267 21 calendar days after the date on which the contract is
2 68 executed or within 21 calendar days after the date on which the
269 insured or claimant has notified the insurer of the claim,
270 whichever is later. The public adjuster's contract must disclose
271 to the insured or claimant his or her right to cancel the
272 contract and advise the insured or claimant that notice of
273 cancellation must be submitted in writing and sent by certified
274 mail, return receipt requested, or other form of mailing that
275 provides proof thereof, to the public adjuster at the address

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276 specified in the contract; provided, during any state of
277 emergeney as declared by the Governor and for 1 year after the
278 date of loss, the insured or claimant has 5 business days after
279 the date on which the contract is executed to cancel a public
280 adjuster's contract.
281 Section 11. Effective January 1, 2021, subsection (3) of
282 section 626.916, Florida Statutes, is amended, and paragraph (f)
283 is added to subsection (1) of that section, to read:
284 626.916 Eligibility for export.-
285 (1) No insurance coverage shall be eligible for export
286 unless it meets all of the following conditions:
287 (f) The insured has signed or otherwise provided
288 documented acknowledgement of a disclosure in substantially the
289 following form: "You are agreeing to place coverage in the
290 surplus lines market. Coverage may be available in the admitted
291 market. Persons insured by surplus lines carriers are not
292 protected under the Florida Insurance Guaranty Act with respect
293 to any right of recovery for the obligation of an insolvent
294 unlicensed insurer."
295 (3) (a) Subsection (1) does not apply to wet marine and
296 transportation or aviation risks that which are subject to s.
297 626.917.
298 (b) Paragraphs ( 1) (a) - ( d) do not apply to classes of
299 insurance which are subject to s. 627.062(3) (d)l. These classes
300 may be exportable under the following conditions:

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301 1. The insurance must be placed only by or through a
302 surplus lines agent licensed in this state;
303 2. The insurer must be made eligible under s. 626.918; and
304 3. The insured has complied with paragraph (1) (f) HH:rSt
305 sign a disclosure that substantially provides the following:
306 "You are agreeing to place coverage in the surplus lines fflarket.
307 Superior coverage fflay be available in the adfflitted fflarket and at
308 a lesser cost. Persons insured by surplus lines carriers are not
309 protected under the Florida Insurance Guaranty Act with respect
310 to any right of recovery for the obligation of an insolvent
311 unlicensed insurer." If the disclosure notice is signed by the
312 insured, the insured is presumed to have been informed and to
313 know that other coverage may be available, and, with respect to
314 the diligent-effort requirement under subsection (1), there is
315 no liability on the part of, and no cause of action arises
316 against, the retail agent presenting the form.
317 Section 12. Paragraph (z) of subsection (1) of section
318 626.9541, Florida Statutes, is amended to read:
319 626.9541 Unfair methods of competition and unfair or
320 deceptive acts or practices defined.-
321 ( 1) UNFAIR METHODS OF COMPETITION AND UNFAIR OR DECEPTIVE
322 ACTS.-The following are defined as unfair methods of competition
323 and unfair or deceptive acts or practices:
324 (z) Sliding.-Sliding is the act or practice of any of the
325 following:

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32 6 1. Representing to the applicant that a specific ancillary
327 coverage or product is required by law in conjunction with the
328 purchase of insurance when such coverage or product is not
329 required..:..-:-
330 2. Representing to the applicant that a specific ancillary
331 coverage or product is included in the policy applied for
332 without an additional charge when such charge is required..:_-,..-.e,f-
333 3. Charging an applicant for a specific ancillary coverage
334 or product, in addition to the cost of the insurance coverage
335 applied for, without the informed consent of the applicant.
336 4. Initiating, effectuating, binding, or otherwise issuing
337 a policy of insurance without the prior informed consent of the
338 owner of the property to be insured.
339 5. Mailing, transmitting, or otherwise submitting by any
340 means an invoice for premium payment to a mortgagee or escrow
341 agent, for the purpose of effectuating an insurance policy,
342 without the prior informed consent of the owner of the property
343 to be insured. However, this subparagraph does not apply in
344 cases where the mortgagee or escrow is renewing insurance or
345 issuing collateral protection insurance as defined ins.
346 624.6085, F.S., pursuant to the mortgage or other pertinent loan
347 documents or communications regarding the property.
348 Section 13. Effective January 1, 2021, subsection (3) of
349 section 626.9741, Florida Statutes, is amended to read:
350 626.9741 Use of credit reports and credit scores by

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351 insurers.-
352 (3) An insurer must inform an applicant or insured, in the
353 same medium as the application is taken, that a credit report or
354 score is being requested for underwriting or rating purposes.
355 The notification to the consumer must include the following
356 language: "The Department of Financial Services offers free
357 financial literacy programs to assist you in understanding how
358 credit scores are calculated, what factors are considered, and
359 how credit works. The Department's toll-free Insurance Consumer
360 Helpline is available to assist you with insurance-related
361 questions and inquiries. To learn more about the free financial
362 literacy programs or for help with insurance, call 1-877-693-
363 5236 or visit www.MyFloridaCFO.com." An insurer that makes an
364 adverse decision based, in whole or in part, upon a credit
365 report must provide at no chargeT a copy of the credit report to
366 the applicant or insured or provide the applicant or insured
367 with the name, address, and telephone number of the consumer
368 reporting agency from which the insured or applicant may obtain
369 the credit report. The insurer must provide notification to the
370 consumer explaining the reasons for the adverse decision. The
371 reasons must be provided in sufficiently clear and specific
372 language so that a person can identify the basis for the
373 insurer's adverse decision. Such notification shall include a
374 description of the four primary reasons, or such fewer number as
375 existed, which were the primary influences of the adverse

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37 6 decision. The use of generalized terms such as "poor credit
377 history," "poor credit rating," or "poor insurance score" does
378 not meet the explanation requirements of this subsection. A
379 credit score may not be used in underwriting or rating insurance
380 unless the scoring process produces information in sufficient
381 detail to permit compliance with the requirements of this
382 subsection. It shall not be deemed an adverse decision if, due
383 to the insured's credit report or credit score, the insured
384 continues to receive a less favorable rate or placement in a
385 less favorable tier or company at the time of renewal except for
386 renewals or reunderwriting required by this section.
387 Section 14. Subsection (1) of section 626.9957, Florida
388 Statutes, is amended to read:
389 626.9957 Conduct prohibited; denial, revocation, or
390 suspension of registration.-
391 (1) As provided ins. 626.112, only a person licensed as
392 an insurance agent or customer representative may engage in the
393 solicitation of insurance. A person who engages in the
394 solicitation of insurance as described ins. 626.112(1) without
395 such license is subject to the penalties provided under s.
396 626.112(10) o. 626.112(9).
397 Section 15. Subsection (10) of section 627.062, Florida
398 Statutes, is amended to read:
399 627.062 Rate standards.-
400 (10) Any interest paid pursuant to s. 627.70131(7) -s-:-

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401 627.70131(5) may not be included in the insurer's rate base and
402 may not be used to justify a rate or rate change.
403 Section 16. Effective January 1, 2021, subsection (6) is
404 added to section 627.421, Florida Statutes, to read:
405 627.421 Delivery of policy.-
406 (6) For personal lines residential property insurance
407 policies, the insurer shall, between March 1 and June 1 of each
408 year, inclusive, deliver an outline of the hurricane coverage
409 included in the policy, including the hurricane deductible and
410 the coverages and exclusions, to all policyholders. This
411 requirement applies only for those insureds that have provided
412 the insurer with a valid e-mail address. This information must
413 be delivered directly to the policyholder via e-mail or by an e-
414 mail notice of information being posted to a secure web-based
415 policy information page.
416 Section 17. Section 627.502, Florida Statutes, is amended
417 to read:
418 627.502 ''Industrial life insurance" defined; reportingL
419 prohibition on new policies after a certain date.-
420 ( 1) For the purposes of this code, "industrial life
421 insurance" is that form of life insurance written under policies
422 under which premiums are payable monthly or more often, bearing
423 the words "industrial policy" or "weekly premium policy" or
424 words of similar import imprinted upon the policies as part of
425 the descriptive matter, and issued by an insurer that which, as

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42 6 to such industrial life insurance, is operating under a system
427 of collecting a debit by its agent.
428 (2) Every life insurer servicing existing transacting
429 industrial life insurance shall report to the office all annual
430 statement data regarding the exhibit of life insurance,
431 including relevant information for industrial life insurance.
432 (3) Beginning July 1, 2020, a life insurer may not write a
433 new policy of industrial life insurance.
434 Section 18. Effective January 1, 2021, section 627.70131,
435 Florida Statutes, is amended to read:
436 627.70131 Insurer's duty to acknowledge communications
437 regarding claims; investigation.-
438 (1) (a) Upon an insurer's receiving a communication with
439 respect to a claim, the insurer shall, within 14 calendar days,
440 review and acknowledge receipt of such communication unless
441 payment is made within that period of time or unless the failure
442 to acknowledge is caused by factors beyond the control of the
443 insurer which reasonably prevent such acknowledgment. If the
444 acknowledgment is not in writing, a notification indicating
445 acknowledgment shall be made in the insurer's claim file and
446 dated. A communication made to or by a representative an agent
447 of an insurer with respect to a claim shall constitute
448 communication to or by the insurer.
449 (b) As used in this subsection, the term "representative"
450 "agent" means any person to whom an insurer has granted

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451 authority or responsibility to receive or make such
452 communications with respect to claims on behalf of the insurer.
453 (c) This subsection shall not apply to claimants
454 represented by counsel beyond those communications necessary to
455 provide forms and instructions.
456 (2) Such acknowledgment shall be responsive to the
457 communication. If the communication constitutes a notification
458 of a claim, unless the acknowledgment reasonably advises the
459 claimant that the claim appears not to be covered by the
460 insurer, the acknowledgment shall provide necessary claim forms,
461 and instructions, including an appropriate telephone number.
462 (3)~ Unless otherwise provided by the policy of
463 insurance or by law, within 10 business worlcing days after an
464 insurer receives proof of loss statements, the insurer shall
465 begin such investigation as is reasonably necessary unless the
466 failure to begin such investigation is caused by factors beyond
467 the control of the insurer which reasonably prevent the
468 commencement of such investigation.
469 (b) If such investigation involves a physical inspection
470 of the property, the licensed adjuster assigned by the insurer
471 must provide the policyholder with his or her name, license
472 number, and contact information.
473 (c) If an insurer assigns the claim to a different
474 licensed adjuster from the adjuster who performed the physical
475 inspection, the insurer must, within 7 days after changing the

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476 licensed insurance adjuster assigned to a claim, provide the
477 name, license number, and contact information of the new
478 adjuster to the policyholder. The notification may be sent
479 electronically or via mail. If the notification is a physical
480 letter, it must be postmarked within 7 days after the change in
481 adjuster. The policyholder must be provided notice of any
482 subsequent change to the assigned adjuster as set forth by this
483 paragraph.
484 (4) An insurer shall establish a process by which an agent
485 of record for an insurance policy receives the same notice as
486 the policyholder as provided in paragraphs (3) (b) and (c) in
487 order to assist the agent of record in answering the
488 policyholder's questions regarding claims. As used in this
489 subsection, the term "agent of record" means the agent named on
490 the declarations page of the insurance policy.
491 ill For purposes of this section, the term "insurer" means
492 any residential property insurer.
493 (6) (a) When providing a preliminary or partial estimate of
494 damage regarding a claim, an insurer shall include with the
495 estimate the following statement printed in at least 12-point
496 bold, uppercase type: THIS ESTIMATE REPRESENTS OUR CURRENT
497 EVALUATION OF THE LOSS TO YOUR INSURED PROPERTY AND MAY BE
498 REVISED AS WE CONTINUE TO EVALUATE YOUR CLAIM. IF YOU HAVE
499 QUESTIONS, CONCERNS, OR ADDITIONAL INFORMATION REGARDING YOUR
500 CLAIM, WE ENCOURAGE YOU TO CONTACT US.

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501 (b) When providing a preliminary or partial payment on a
502 claim, an insurer shall include with the payment the following
503 statement printed in at least 12-point bold, uppercase type: WE
504 ARE CONTINUING TO EVALUATE YOUR CLAIM INVOLVING YOUR INSURED
505 PROPERTY AND MAY ISSUE ADDITIONAL PAYMENTS. IF YOU HAVE
506 QUESTIONS, CONCERNS, OR ADDITIONAL INFORMATION REGARDING YOUR
507 CLAIM, WE ENCOURAGE YOU TO CONTACT US.
508 l2l_--f-§-t(a) Within 90 calendar days after an insurer
509 receives notice of an initial, reopened, or supplemental
510 property insurance claim from a policyholder, the insurer shall
511 pay or deny such claim or a portion of the claim unless the
512 failure to pay is caused by factors beyond the control of the
513 insurer which reasonably prevent such payment. Any payment of an
514 initial or supplemental claim or portion of such claim made 90
515 calendar days after the insurer receives notice of the claim, or
516 made more than 15 days after there are no longer factors beyond
517 the control of the insurer which reasonably prevented such
518 payment, whichever is later, bears interest at the rate set
519 forth ins. 55.03. Interest begins to accrue from the date the
520 insurer receives notice of the claim. The provisions of this
521 subsection may not be waived, voided, or nullified by the terms
522 of the insurance policy. If there is a right to prejudgment
523 interest, the insured shall select whether to receive
524 prejudgment interest or interest under this subsection. Interest
525 is payable when the claim or portion of the claim is paid.

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526 Failure to comply with this subsection constitutes a violation
527 of this code. However, failure to comply with this subsection
528 does not form the sole basis for a private cause of action.
529 (b) Notwithstanding subsection J..21 +4+, for purposes of
530 this subsection, the term "claim" means any of the following:
531 1. A claim under an insurance policy providing residential
532 coverage as defined ins. 627.4025(1);
533 2. A claim for structural or contents coverage under a
534 commercial property insurance policy if the insured structure is
535 10,000 square feet or less; or
536 3. A claim for contents coverage under a commercial tenant
537 policy if the insured premises is 10,000 square feet or less.
538 (c) This subsection does shall not apply to claims under
539 an insurance policy covering nonresidential commercial
540 structures or contents in more than one state.
541 (8) This section applies to surplus lines insurers and
542 surplus lines insurance authorized under ss. 626.913-626.937.
543 Section 19. Section 627.7031, Florida Statutes, is created
544 to read:
545 627.7031 Foreign venue clauses prohibited.-After July 1,
546 2020, a personal residential property insurance policy sold in
547 this state insuring real property located in this state may not
548 require an insured to pursue dispute resolution through
549 litigation, arbitration, or mediation outside this state. This
550 section applies to surplus lines insurers and surplus lines

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551 insurance authorized under ss. 626.913-626.937.
552 Section 20. Effective January 1, 2021, section 627.7142,
553 Florida Statutes, is amended to read:
554 627.7142 Homeowner Claims Bill of Rights.-An insurer
555 issuing a personal lines residential property insurance policy
556 in this state must provide a Homeowner Claims Bill of Rights to
557 a policyholder within 14 days after receiving an initial
558 communication with respect to a claim, unless the claim follows
559 an event that is the subject of a declaration of a state of
560 emergency by the Governor. The purpose of the bill of rights is
561 to summarize, in simple, nontechnical terms, existing Florida
562 law regarding the rights of a personal lines residential
563 property insurance policyholder who files a claim of loss. The
564 Homeowner Claims Bill of Rights is specific to the claims
565 process and does not represent all of a policyholder's rights
566 under Florida law regarding the insurance policy. The Homeowner
567 Claims Bill of Rights does not create a civil cause of action by
568 any individual policyholder or class of policyholders against an
569 insurer or insurers. The failure of an insurer to properly
570 deliver the Homeowner Claims Bill of Rights is subject to
571 administrative enforcement by the office but is not admissible
572 as evidence in a civil action against an insurer. The Homeowner
573 Claims Bill of Rights does not enlarge, modify, or contravene
574 statutory requirements, including, but not limited to, ss.
575 626.854, 626.9541, 627.70131, 627.7015, and 627.7074, and does

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576 not prohibit an insurer from exercising its right to repair
577 damaged property in compliance with the terms of an applicable
578 policy or ss. 627. 7011 (5) (e) and 627. 702 (7). The Homeowner
579 Claims Bill of Rights must state:
580
581 HOMEOWNER CLAIMS
582 BILL OF RIGHTS
583 This Bill of Rights is specific to the claims process
584 and does not represent all of your rights under
585 Florida law regarding your policy. There are also
586 exceptions to the stated timelines when conditions are
587 beyond your insurance company's control. This document
588 does not create a civil cause of action by an
589 individual policyholder, or a class of policyholders,
590 against an insurer or insurers and does not prohibit
591 an insurer from exercising its right to repair damaged
592 property in compliance with the terms of an applicable
593 policy.
594
595 YOU HAVE THE RIGHT TO:
596 1. Receive from your insurance company an
597 acknowledgment of your reported claim within 14
598 calendar days after the time you communicated the
599 claim.
600 2. Upon written request, receive from your insurance

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601 company within 30 days after you have submitted a
602 complete proof-of-loss statement to your insurance
603 company, confirmation that your claim is covered in
604 full, partially covered, or denied, or receive a
605 written statement that your claim is being
606 investigated.
607 3. Within 7 calendar days, receive notification from
608 your insurance company if there has been a change in
609 the company adjuster who is assigned to your claim.
610 The notification must include the assigned adjuster's
611 contact information.
612 4. Within 90 calendar days, subject to any dual
613 interest noted in the policy, receive full settlement
614 payment for your claim or payment of the undisputed
615 portion of your claim, or your insurance company's
616 denial of your claim.
617 5. Receive payment of interest as provided in section
618 627.7031, Florida Statutes, from your insurance
619 company, which begins accruing from the date your
620 claim is filed if your insurance company does not pay
621 full settlement of your claim or the undisputed
622 portion of your claim or does not deny your claim
623 within 90 calendar days after your claim is filed. The
624 interest, if applicable, must be paid when your claim
625 or undisputed portion of your claim is paid.

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62 6 6.4-. Free mediation of your disputed claim by the
627 Florida Department of Financial Services, Division of
628 Consumer Services, under most circumstances and
629 subject to certain restrictions.
630 7 . .§.- Neutral evaluation of your disputed claim, if
631 your claim is for damage caused by a sinkhole and is
632 covered by your policy.
633 8.-6-. Contact the Florida Department of Financial
634 Services, Division of Consumer Services' toll-free
635 helpline for assistance with any insurance claim or
636 questions pertaining to the handling of your claim.
637 You can reach the Helpline by phone at ... (toll-free
638 phone number) ... , or you can seek assistance online at
639 the Florida Department of Financial Services, Division
640 of Consumer Services' website at ... (website
641 address) ....
642
643 YOU ARE ADVISED TO:
644 1. Contact your insurance company before entering
645 into any contract for repairs to confirm any managed
646 repair policy provisions or optional preferred
647 vendors.
648 2. Make and document emergency repairs that are
649 necessary to prevent further damage. Keep the damaged
650 property, if feasible, keep all receipts, and take

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651 photographs or video of damage before and after any
652 repairs.
653 3. Carefully read any contract that requires you to
654 pay out-of-pocket expenses or a fee that is based on a
655 percentage of the insurance proceeds that you will
656 receive for repairing or replacing your property.
657 4. Confirm that the contractor you choose is licensed
658 to do business in Florida. You can verify a
659 contractor's license and check to see if there are any
660 complaints against him or her by calling the Florida
661 Department of Business and Professional Regulation.
662 You should also ask the contractor for references from
663 previous work.
664 5. Require all contractors to provide proof of
665 insurance before beginning repairs.
666 6. Take precautions if the damage requires you to leave
667 your home, including securing your property and turning off your
668 gas, water, and electricity, and contacting your insurance
669 company and provide a phone number where you can be reached.
670 Section 21. Paragraph (a) of subsection (1) and subsection
671 (6) of section 631.57, Florida Statutes, are amended to read:
672 631.57 Powers and duties of the association.-
673 (1) The association shall:
674 (a)l. Be obligated to the extent of the covered claims
675 existing:

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676 a. Prior to adjudication of insolvency and arising within
677 30 days after the determination of insolvency;
678 b. Before the policy expiration date if less than 30 days
679 after the determination; or
680 c. Before the insured replaces the policy or causes its
681 cancellation, if she or he does so within 30 days of the
682 determination.
683 2. The obligation under subparagraph 1. includes eft±-y the
684 amount of each covered claim which is in e}{cess of $100 and is
685 less than $300,000, except that policies providing coverage for
686 homeowner's insurance shall provide for an additional $200,000
687 for the portion of a covered claim which relates only to the
688 damage to the structure and contents.
689 3.a. Notwithstanding subparagraph 2., the obligation under
690 subparagraph 1. for policies covering condominium associations
691 or homeowners' associations, which associations have a
692 responsibility to provide insurance coverage on residential
693 units within the association, shall include that amount of each
694 covered property insurance claim which is less than $100,000
695 multiplied by the number of condominium units or other
696 residential units; however, as to homeowners' associations, this
697 sub-subparagraph applies only to claims for damage or loss to
698 residential units and structures attached to residential units.
699 b. Notwithstanding sub-subparagraph a., the association
700 has no obligation to pay covered claims that are to be paid from

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701 the proceeds of bonds issued under s. 631.695. However, the
702 association shall assign and pledge the first available moneys
703 from all or part of the assessments to be made under paragraph
704 (3) (a) to or on behalf of the issuer of such bonds for the
705 benefit of the holders of such bonds. The association shall
706 administer any such covered claims and present valid covered
707 claims for payment in accordance with the provisions of the
708 assistance program in connection with which such bonds have been
709 issued.
710 4. In no event shall the association be obligated to a
711 policyholder or claimant in an amount in excess of the
712 obligation of the insolvent insurer under the policy from which
713 the claim arises.
714 (6) The association may extend the time limits specified
715 in paragraph (1) (a) by up to an additional 60 days or waive the
716 applicability of the $100 deductible specified in paragraph
717 (1) (a) if the board determines that either or both such actions
718 are necessary to facilitate the bulk assumption of obligations.
719 Section 22. Section 648.30, Florida Statutes, is amended
720 to read:
721 648.30 Licensure and appointment required; prohibited
722 acts; penalties.-
723 (1) A person may not act in the capacity of a bail bond
724 agent or temporary bail bond agent or perform any of the
725 functions, duties, or powers prescribed for bail bond agents or

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726 temporary bail bond agents under this chapter unless that person
727 is qualified, licensed, and appointed as provided in this
728 chapter.
729 (2) A person may not represent himself or herself to be a
730 bail enforcement agent, bounty hunter, or other similar title in
731 this state.
732 (3) A person, other than a certified law enforcement
733 officer, may not apprehend, detain, or arrest a principal on a
734 bond, wherever issued, unless that person is qualified,
735 licensed, and appointed as provided in this chapter or licensed
736 as a bail bond agent or bail bond enforcement agent, or holds an
737 equivalent license by the state where the bond was written.
738 (4) Any person who violates this section commits a felony
739 of the third degree, punishable as provided ins. 775.082, s.
740 7 7 5. 0 8 3, or s. 7 7 5. 0 8 4.
741 (5) Any licensee under this chapter who knowingly aids or
742 abets an unlicensed person in violating this section commits a
743 felony of the third degree, punishable as provided ins.
744 775.082, s. 775.083, ors. 775.084.
745 Section 23. Paragraphs (b) and (c) of subsection (4) and
746 subsections (1) and (10) of section 717.124, Florida Statutes,
747 are amended to read:
748 717.124 Unclaimed property claims.-
749 (1) Any person, excluding another state, claiming an
750 interest in any property paid or delivered to the department

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751 under this chapter may file with the department a claim on a
752 form prescribed by the department and verified by the claimant
753 or the claimant's representative. The claimant's representative
754 must be an attorney licensed to practice law in this state, a
755 licensed Florida-certified public accountant, or a private
756 investigator licensed under chapter 493. The claimant's
757 representative must be registered with the department under this
758 chapter. The claimant, or the claimant's representative, shall
759 provide the department with a legible copy of a valid driver
760 license of the claimant at the time the original claim form is
761 filed. If the claimant has not been issued a valid driver
7 62 license at the time the original claim form is filed, the
7 63 department shall be provided with a legible copy of a
7 64 photographic identification of the claimant issued by the United
765 States, a state or territory of the United States, a foreign
766 nation, or a political subdivision or agency thereof or other
7 67 evidence deemed acceptable by the department by rule. In lieu of
768 photographic identification, a notarized sworn statement by the
769 claimant may be provided which affirms the claimant's identity
770 and states the claimant's full name and address. The claimant
771 must produce to the notary photographic identification of the
772 claimant issued by the United States, a state or territory of
773 the United States, a foreign nation, or a political subdivision
774 or agency thereof or other evidence deemed acceptable by the
775 department by rule. The notary shall indicate the notary's full

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776 address on the notarized sworn statement. Any claim filed
777 without the required identification or the sworn statement with
778 the original claim form and the original Florida Uniform
779 Unclaimed Property Recovery Agreement or Florida Uniform
780 Property Purchase Agreement power of attorney or purchase
781 agreeffient, if applicable, is void.
782 (a) Within 90 days after receipt of a claim, the
783 department may return any claim that provides for the receipt of
784 fees and costs greater than that permitted under this chapter or
785 that contains any apparent errors or omissions. The department
786 may also request that the claimant or the claimant's
787 representative provide additional information. The department
788 shall retain a copy or electronic image of the claim.
789 (b) A claimant or the claimant's representative shall be
790 deemed to have withdrawn a claim if no response to the
791 department's request for additional information is received by
792 the department within 60 days after the notification of any
793 apparent errors or omissions.
794 (c) Within 90 days after receipt of the claim, or the
795 response of the claimant or the claimant's representative to the
796 department's request for additional information, whichever is
797 later, the department shall determine each claim. Such
798 determination shall contain a notice of rights provided by ss.
799 120.569 and 120.57. The 90-day period shall be extended by 60
800 days if the department has good cause to need additional time or

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801 if the unclaimed property:
802 1. Is owned by a person who has been a debtor in
803 bankruptcy;
804 2. Was reported with an address outside of the United
805 States;
806 3. Is being claimed by a person outside of the United
807 States; or
808 4. Contains documents filed in support of the claim that
809 are not in the English language and have not been accompanied by
810 an English language translation.
811 (d) The department shall deny any claim under which the
812 claimant's representative has refused to authorize the
813 department to reduce the fees and costs to the maximum permitted
814 under this chapter.
815 ( 4)

816 (b) If an owner authorizes an attorney licensed to
817 practice law in this state, Florida-certified public accountant,
818 or private investigator licensed under chapter 493, and
819 registered with the department under this chapter, to claim the
820 unclaimed property on the owner's behalf, the department is
821 authorized to make distribution of the property or money in
822 accordance with the Florida Uniform Unclaimed Property Recovery
823 Agreement or Florida Uniform Property Purchase Agreement under
824 s. 717.135 such power of attorney. The original Florida Uniform
825 Unclaimed Property Recovery Agreement or Florida Uniform

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826 Property Purchase Agreement power of attorney must be executed
827 by the claimant or seller owner and must be filed with the
828 department.
829 (c)l. Payments of approved claims for unclaimed cash
830 accounts shall be made to the owner after deducting any fees and
831 costs authorized pursuant to a Florida Uniform Unclaimed
832 Property Recovery Agreement written power of attorney. The
833 contents of a safe-deposit box shall be delivered directly to
834 the claimant notwithstanding any power of attorney or agreement
835 to the contrary.
836 2. Payments of fees and costs authorized pursuant to a
837 Florida Uniform Unclaimed Property Recovery Agreement written
838 power of attorney for approved claims must shall be made or
839 issued to the law firm of the designated attorney licensed to
840 practice law in this state, the public accountancy firm of the
841 licensed Florida-certified public accountant, or the designated
842 employing private investigative agency licensed by this state.
843 Such payments shall be made by electronic funds transfer and may
844 be made on such periodic schedule as the department may define
845 by rule, provided the payment intervals do not exceed 31 days.
846 Payment made to an attorney licensed in this state, a Florida-
847 certified public accountant, or a private investigator licensed
848 under chapter 493, operating individually or as a sole
849 practitioner, shall be to the attorney, certified public
850 accountant, or private investigator.

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851 (10) Notwithstanding any other provision of this chapter,
852 the department may develop a process by which a registered
853 claimant's representative or a buyer of unclaimed property may
854 electronically submit to the department an electronic image of a
855 completed claim and claims-related documents pursuant to this
856 chapter, including a Florida Uniform Unclaimed Property Recovery
857 Agreement or Florida Uniform Property Purchase Agreement a
858 lifflited power of attorney or purchase agreefflent that has been
859 manually signed and dated by a claimant or seller pursuant to s.
860 717.135 ors. 717.1351, after the claimant's representative or
861 the buyer of unclaimed property receives the original documents
8 62 provided by the claimant or the seller for any claim. Each claim
863 filed by a registered claimant's representative or a buyer of
864 unclaimed property must include a statement by the claimant's
865 representative or the buyer of unclaimed property attesting that
866 all documents are true copies of the original documents and that
867 all original documents are physically in the possession of the
868 claimant's representative or the buyer of unclaimed property.
869 All original documents must be kept in the original form, by
870 claim number, under the secure control of the claimant's
871 representative or the buyer of unclaimed property and must be
872 available for inspection by the department in accordance withs.
873 717.1315. The department may adopt rules to implement this
874 subsection.
875 Section 24. Subsection (2) of section 717.12404, Florida

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876 Statutes, is amended to read:
877 717.12404 Claims on behalf of a business entity or trust.-
878 (2) Claims on behalf of a dissolved corporation, a
879 business entity other than an active corporation, or a trust
880 must include a legible copy of a valid driver license of the
881 person acting on behalf of the dissolved corporation, business
882 entity other than an active corporation, or trust. If the person
883 has not been issued a valid driver license, the department shall
884 be provided with a legible copy of a photographic identification
885 of the person issued by the United States, a foreign nation, or
886 a political subdivision or agency thereof. In lieu of
887 photographic identification, a notarized sworn statement by the
888 person may be provided which affirms the person's identity and
889 states the person's full name and address. The person must
890 produce his or her photographic identification issued by the
891 United States, a state or territory of the United States, a
892 foreign nation, or a political subdivision or agency thereof or
893 other evidence deemed acceptable by the department by rule. The
894 notary shall indicate the notary's full address on the notarized
895 sworn statement. Any claim filed without the required
896 identification or the sworn statement with the original claim
897 form and the original Florida Uniform Unclaimed Property
898 Recovery Agreement or Florida Uniform Property Purchase
899 Agreement power of attorRcy, if applicable, is void.
900 Section 25. Subsection (1) of section 717.1315, Florida

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901 Statutes, is amended to read:
902 717.1315 Retention of records by claimant's
903 representatives and buyers of unclaimed property.-
904 ( 1) Every claimant's representative and buyer of unclaimed
905 property shall keep and use in his or her business such books,
906 accounts, and records of the business conducted under this
907 chapter to enable the department to determine whether such
908 person is complying with this chapter and the rules adopted by
909 the department under this chapter. Every claimant's
910 representative and buyer of unclaimed property shall preserve
911 such books, accounts, and records, including every Florida
912 Uniform Unclaimed Property Recovery Agreement or Florida Uniform
913 Property Purchase Agreement power of attorney or agreeffient
914 between the owner and such claimant's representative or buyer,
915 for at least 3 years after the date of the initial power of
916 attorney or agreement.
917 Section 26. Paragraph (j) of subsection (1) of section
918 717.1322, Florida Statutes, is amended to read:
919 717.1322 Administrative and civil enforcement.-
920 (1) The following acts are violations of this chapter and
921 constitute grounds for an administrative enforcement action by
922 the department in accordance with the requirements of chapter
923 120 and for civil enforcement by the department in a court of
924 competent jurisdiction:
925 ( j) Requesting or receiving compensation for notifying a

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926 person of his or her unclaimed property or assisting another
927 person in filing a claim for unclaimed property, unless the
928 person is an attorney licensed to practice law in this state, a
929 Florida-certified public accountant, or a private investigator
930 licensed under chapter 493, or entering into, or making a
931 solicitation to enter into, an agreement a power of attorney to
932 file a claim for unclaimed property owned by another, or a
933 contract or agreement to purchase unclaimed property, unless
934 such person is registered with the department pursuant to this
935 chapter and an attorney licensed to practice law in this state
936 in the regular practice of her or his profession, a Florida-
937 certified public accountant who is acting within the scope of
938 the practice of public accounting as defined in chapter 473, or
939 a private investigator licensed under chapter 493. This
940 subsection does not apply to a person who has been granted a
941 durable power of attorney to convey and receive all of the real
942 and personal property of the owner, is the court-appointed
943 guardian of the owner, has been employed as an attorney or
944 qualified representative to contest the department's denial of a
945 claim, or has been employed as an attorney to probate the estate
946 of the owner or an heir or legatee of the owner.
947 Section 27. Section 717.135, Florida Statutes, is amended
948 to read:
949 (Substantial rewording of section. See
950 s. 717.135, F.S., for present text.)

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951 717.135 Recovery agreements and purchase agreements for
952 claims filed by claimant's representative; fees and costs.-
953 (1) In order to protect the interests of owners of
954 unclaimed property, the department shall adopt by rule a form
955 entitled "Florida Uniform Unclaimed Property Recovery Agreement''
956 and a form entitled "Florida Uniform Property Purchase
957 Agreement."
958 (2) The Florida Uniform Unclaimed Property Recovery
959 Agreement form and the Florida Uniform Property Purchase
960 Agreement form must include and disclose:
961 (a) The total dollar amount of unclaimed property accounts
962 claimed or sold.
963 (b) Either the total percentage of all authorized fees and
964 costs to be paid to the claimant's representative or the
965 percentage of the value of the property to be paid as net gain
966 to the purchasing registered claimant's representative.
967 (c) Either the total dollar amount to be deducted and
968 received from the claimant as fees and costs by the claimant's
969 representative or the total net dollar amount to be received by
970 the purchasing registered claimant's representative.
971 (d) The net dollar amount to be received by the claimant
972 or seller.
973 (e) For each account claimed, the unclaimed property
974 account number and name of the apparent owner, as listed on the
975 department's database.

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97 6 (f) For the Florida Uniform Property Purchase Agreement, a
977 statement that the purchase price will be remitted to the seller
978 within 30 days after the execution of the form by the seller.
979 (g) The name, address, e-mail address, phone number, and
980 license number of the registered claimant's representative.
981 (h) The manual signature of the claimant or seller and the
982 date signed.
983 (i) The social security number or taxpayer identification
984 number of the claimant or seller, if available. A number is
985 available if one has been issued to the claimant or seller.
986 ( j) A limit of total fees and costs, or the total discount
987 amount in the case of a purchase agreement, to no more than 20
988 percent of the claimed amount.
989 (3) For a Florida Uniform Property Purchase Agreement
990 form, proof that the seller has received payment must be filed
991 with the department along with the claim. If proof of payment is
992 not provided, the claim is void.
993 (4) A registered claimant's representative shall use the
994 Florida Uniform Unclaimed Property Recovery Agreement form or
995 the Florida Uniform Property Purchase Agreement form as the
996 exclusive means of engaging with a claimant or seller to file a
997 claim with the department.
998 ( 5) Fees and costs may be owed or paid to a registered
999 claimant's representative only pursuant to the forms authorized
1000 by this section and upon approval of the claim filed thereby.

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1001 (6) A claimant's representative may not use or distribute
1002 any other agreement of any type with respect to the claimant or
1003 seller which relates to unclaimed property accounts held by the
1004 department or the Chief Financial Officer other than the
1005 agreements authorized by this section. Any agreement that is not
1006 authorized by this section is null and void.
1007 (7) The forms under subsection (1):
1008 (a) May not contain language that makes the agreement
1009 irrevocable; and
1010 (b) May not contain language that creates an assignment of
1011 any unclaimed property held by the department.
1012 (8) This section does not supersede the conflicting claims
1013 provisions of s. 717.1241.
1014 (9) At the time a claim is approved, the department may
1015 pay any additional account that is owned by the claimant but has
1016 not been claimed at the time of approval, provided that no
1017 subsequent claim has been filed and is pending for the claimant
1018 at the time of approval.
1019 Section 28. Section 717.1351, Florida Statutes, is
1020 repealed.
1021 Section 29. Except as otherwise provided, this act shall
1022 take effect upon becoming a law.

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HB 1137 by Rep. Clemons
Consumer Protection

AMENDMENT SUMMARY
February 13, 2020

Amendment 1 by Rep. Clemons (strike-all): The strike-all amendment contains the current
provisions of the bill and makes the following modifications and clarifications:
• Adds a section amending the electronic signature requirements for salvage certificates
of title.
• Clarifies that an insurer need not produce work-product privileged documents in
response to information requests from the Department of Financial Services or the Office
of Insurance Regulation.
• Changes the number of days that a policyholder has to cancel a contract with a public
adjuster from 21 days during a state of emergency, and for one year thereafter, to 14
days.
• Changes the requirements regarding the estimate that a public adjuster must provide to
a policyholder so that the estimate includes itemized details about the cost of repairs,
and provides the policyholder an opportunity to cancel the contract if the public adjuster
does not provide the estimate within 45 days from the date of the execution of the
contract.
• Amends the definition of company employee adjuster.
• Specifies that a property insurer will send a copy of a policyholder's declarations page
along with the outline of hurricane coverage each year.
• Changes the number of days that a property insurer has to notify an insured of a change
in adjuster from seven to 14 days.
• Expands the prohibition on foreign venue clauses in property insurance policies covering
real property located in Florida so that it applies to all personal and commercial property
insurance policies.
• Increases the amount of fees that a claimant's representative can charge for the
recovery of unclaimed property if the apparent owner of the unclaimed property is
deceased with an estate that is required to be probated.
• Makes various formatting and technical changes.

Amendment to Amendment 1 by Rep. Jenne (Line 167 of strike all): The amendment
changes the number of days that a policyholder has to cancel a contract with a public adjuster
to seven days regardless of whether the contract was executed during a declared emergency or
for one year thereafter.
COMMITTEE/SUBCOMMITTEE AMENDMENT
Bill No. CS/HB 1137 (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 Clemons offered the following:
3

4 Amendment (with title amendment)
5 Remove everything after the enacting clause and insert:
6 Section 1. Paragraph (d) of subsection (3) of section
7 319.30, Florida Statutes, is amended to read:
8 319.30 Definitions; dismantling, destruction, change of
9 identity of motor vehicle or mobile home; salvage.-
10 (3)

11 (d) An electronic signature that is consistent with
12 chapter 668 satisfies any signature required under this
13 subsection, except that an electronic signature on an odometer
14 disclosure submitted through an insurance company must be
15 executed using an electronic signature, as defined ins.
16 668.003(4), that uses a system providing an Identity Assurance
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Amendment No. 1.

17 Level, Authenticator Assurance Level, and Federation Assurance
18 Level, as described in the National Institute of Standards and
19 Technology Special Publication 800-63-3, as of December 1, 2017,
20 that are equivalent to or greater than+
21 -±.- Level 2, for each level, for a certificate of
22 destruction or~
23 2. Level 3, for each level, for a salvage certificate of
24 title.
25 Section 2. Paragraph (b) of subsection (9) of section
26 501.0051, Florida Statutes, is amended to read:
27 501.0051 Protected consumer report security freeze.-
28 (9)
29 (b) A consumer reporting agency may not charge to a
30 reasonable fee, not to enceed $10, if the representative fails
31 to retain the original unique personal identifier provided by
32 the consumer reporting agency and the agency must reissue the
33 unique personal identifier or provide a new unique personal
34 identifier to the consumer representative.
35 Section 3. Paragraph (b) of subsection (10) of section
36 624.307, Florida Statutes, is amended to read:
37 624.307 General powers; duties.-
38 (10)
39 (b) Any entity person licensed or issued a certificate of
40 authority by the department or the office shall respond, in
41 writing, to the division within 20 days after receipt of a

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Amendment No. 1.

42 written request for documents and information from the division
43 concerning a consumer complaint. The response must address the
44 issues and allegations raised in the complaint and include any
45 requested documents and information concerning the consumer
46 complaint not subject to attorney-client or work-product
47 privilege. The division may impose an administrative penalty for
48 failure to comply with this paragraph of up to $2,500 per
49 violation upon any entity licensed by the department or the
50 office and $250 for the first violation, $500 for the second
51 violation, and up to $1,000 for the third or subsequent
52 violation upon any individual licensed by the department or the
53 office.
54 Section 4. Present subsection (9) of section 626.112,
55 Florida Statutes, is redesignated as subsection (10), a new
56 subsection (9) is added to that section, and paragraph (d) of
57 subsection (7) and present subsection (9) of that section are
58 amended, to read:
59 626.112 License and appointment required; agents, customer
60 representatives, adjusters, insurance agencies, service
61 representatives, managing general agents, insurance adjusting
62 firms.-
63 ( 7)

64 (d) Effective October 1, 2015, the department must
65 automatically convert the registration of an approved registered
66 insurance agency to an insurance agency license.
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Amendment No. 1.

67 (9) (a) An individual, firm, partnership, corporation,
68 association, or other entity may not act in its own name or
69 under a trade name, directly or indirectly, as an adjusting firm
70 unless it complies withs. 626.8696 with respect to possessing
71 an adjusting firm license for each place of business at which it
72 engages in an activity that may be performed only by a licensed
73 insurance adjuster. However, an adjusting firm that is owned and
74 operated by a single licensed adjuster conducting business in
75 his or her individual name and not employing or otherwise using
76 the services of or appointing other licensees is exempt from the
77 adjusting firm licensing requirements of this subsection.
78 (b) A branch place of business that is established by a
79 licensed adjusting firm is considered a branch firm and is not
80 required to be licensed if:
81 1. It transacts business under the same name and federal
82 tax identification number as the licensed adjusting firm;
83 2. It has designated with the department a primary
84 adjuster operating the location as required bys. 626.8695; and
85 3. The address and telephone number of the branch location
86 have been submitted to the department for inclusion in the
87 licensing record of the licensed adjusting firm within 30 days
88 after insurance transactions begin at the branch location.
89 (c) If an adjusting firm is required to be licensed, but
90 fails to file an application for licensure in accordance with
91 this section, the department shall impose on the firm an
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92 administrative penalty of up to $10,000.
93 JlQl__-f-9-t Any person who knowingly transacts insurance or
94 otherwise engages in insurance activities in this state without
95 a license in violation of this section or who knowingly aids or
96 abets an unlicensed person in transacting insurance or otherwise
97 engaging in insurance activities in this state without a license
98 commits a felony of the third degree, punishable as provided in
99 s. 775.082, s. 775.083, or s. 775.084.
100 Section 5. Subsection (4) is added to section 626.602,
101 Florida Statutes, to read:
102 626.602 Insurance agency names; disapproval.-The
103 department may disapprove the use of any true or fictitious
104 name, other than the bona fide natural name of an individual, by
105 any insurance agency on any of the following grounds:
106 (4) The name contains the word "Medicare" or "Medicaid."
107 An insurance agency whose name contains the word "Medicare'' or
108 "Medicaid" but which is licensed as of July 1, 2020, may
109 continue to use that name as long as the agency's license is
110 valid. If the agency's license expires or is suspended or
111 revoked, the agency may not be relicensed using that name.
112 Section 6. Subsections (16) and (17) are added to section
113 626.621, Florida Statutes, to read:
114 626.621 Grounds for discretionary refusal, suspension, or
115 revocation of agent's, adjuster's, customer representative's,
116 service representative's, or managing general agent's license or

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117 appointment.-The department may, in its discretion, deny an
118 application for, suspend, revoke, or refuse to renew or continue
119 the license or appointment of any applicant, agent, adjuster,
120 customer representative, service representative, or managing
121 general agent, and it may suspend or revoke the eligibility to
122 hold a license or appointment of any such person, if it finds
123 that as to the applicant, licensee, or appointee any one or more
124 of the following applicable grounds exist under circumstances
125 for which such denial, suspension, revocation, or refusal is not
126 mandatory under s. 626.611:
127 (16) Taking action that allows the personal financial or
128 medical information of a consumer or customer to be made
129 available or accessible to the general public, regardless of the
130 format in which the record is stored.
131 (17) Initiating in-person or telephone solicitation after
132 9 p.m. or before 8 a.m. local time of the prospective customer
133 unless requested by the prospective customer.
134 Section 7. Section 626.782, Florida Statutes, is amended
135 to read:
136 626.782 "Industrial class insurer" defined.-An "industrial
137 class insurer" is an insurer collecting premiums on policies of
138 writing industrial life insurance, as defined ins. 627.502,
139 written before July 1, 2020, and as to such insuranceL operates
140 under a system of collecting a debit by its agent.
141 Section 8. Section 626.783, Florida Statutes, is amended
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142 to read:
143 626.783 "Ordinary-combination class insurer" defined.-An
144 "ordinary-combination class insurer" is an insurer writing :ee-t:-£t
145 ordinary class insurance and collecting premiums on existing
146 industrial life class insurance under s. 626.782.
147 Section 9. Section 626.796, Florida Statutes, is repealed.
148 Section 10. Subsection (1) of section 626.8443, Florida
149 Statutes, is amended to read:
150 626.8443 Duration of suspension or revocation.-
151 (1) The department shall, in its order suspending a title
152 insurance agent's or agency's license or appointment or in its
153 order suspending the eligibility of a person to hold or apply
154 for such license or appointment, specify the period during which
155 the suspension is to be in effect, but such period shall not
156 exceed 2 years 1 year. The license, er appointment, or
157 eligibility shall remain suspended during the period so
158 specified, subject, however, to any rescission or modification
159 of the order by the department, or modification or reversal
160 thereof by the court, prior to expiration of the suspension
161 period. A license, appointment, or eligibility that which has
162 been suspended may not be reinstated except upon request for
163 such reinstatement, but the department shall not grant such
164 reinstatement if it finds that the circumstance or circumstances
165 for which the license, appointment, and eligibility was
166 suspended still exist or are likely to recur.
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167 Section 11. Subsections (6) and (11) of section 626.854,
168 Florida Statutes, are amended to read:
169 626.854 ''Public adjuster" defined; prohibitions.-The
170 Legislature finds that it is necessary for the protection of the
171 public to regulate public insurance adjusters and to prevent the
172 unauthorized practice of law.
173 (6) Except during a state of emergency declared by the
174 Governor and except during the 1-year period after the date of
175 loss, an insured or claimant may cancel a public adjuster's
176 contract to adjust a claim without penalty or obligation within
177 7 calendar 3 business days after the date on which the contract
178 is executed or within 7 calendar 3 business days after the date
179 on which the insured or claimant has notified the insurer of the
180 claim, whichever is later. During a state of emergency declared
181 by the Governor or during the 1-year period after the date of
182 loss, an insured or claimant may cancel a public adjuster's
183 contract to adjust a claim without penalty or obligation within
184 14 calendar days after the date on which the contract is
185 executed or within 14 calendar days after the date on which the
186 insured or claimant has notified the insurer of the claim,
187 whichever is later. The public adjuster's contract must disclose
188 to the insured or claimant his or her right to cancel the
189 contract and advise the insured or claimant that notice of
190 cancellation must be submitted in writing and sent by certified
191 mail, return receipt requested, or other form of mailing that
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192 provides proof thereof, to the public adjuster at the address
193 specified in the contract; provided, during any state of
194 emergency as declared by the Governor and for 1 year after the
195 date of loss, the insured or claimant has 5 business days after
196 the date on which the contract is e1cecuted to cancel a public
197 adjuster's contract.
198 (11) Each public adjuster must provide to the claimant or
199 insured a written estimate of the loss to assist in the
200 submission of a proof of loss or any other claim for payment of
201 insurance proceeds. The written estimate shall include a written
202 itemization per unit estimate of the repairs, including itemized
203 information on equipment, materials, labor, and supplies, in
204 accordance with accepted industry standards. The public adjuster
205 shall retain such written estimate for at least 5 years and
206 shall make the estimate available to the claimant or insured,
207 the insurer, and the department upon request. Failure to provide
208 the required estimate within 45 calendar days after the date on
209 which the contract is executed shall restore the insured's right
210 to cancel the public adjuster's contract without penalty or
211 obligation. The insured retains such right until such time as
212 the public adjuster submits the required estimate or the
213 contract becomes void. If the public adjuster fails to submit
214 the required estimate within 50 calendar days after the date on
215 which the contract is executed, the contract is deemed void.

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216 Section 12. Section 626.856, Florida Statutes, is amended
217 to read:
218 626.856 "Company employee adjuster" defined.-A "company
219 employee adjuster'' means a person licensed as an all-lines
220 adjuster who is appointed and employed on an insurer's staff of
221 adjusters or an affiliate or a wholly owned subsidiary of the
222 insurer, and who undertakes on behalf of such insurer or other
223 insurers under common control or ownership to ascertain and
224 determine the amount of any claim, loss, or damage payable under
225 a contract of insurance, or undertakes to effect settlement of
226 such claim, loss, or damage.
227 Section 13. Effective January 1, 2021, subsection (3) of
228 section 626.916, Florida Statutes, is amended, and paragraph (f)
229 is added to subsection (1) of that section, to read:
230 626.916 Eligibility for export.-
231 (1) No insurance coverage shall be eligible for export
232 unless it meets all of the following conditions:
233 (f) The insured has signed or otherwise provided
234 documented acknowledgement of a disclosure in substantially the
235 following form: "You are agreeing to place coverage in the
236 surplus lines market. Coverage may be available in the admitted
237 market. Persons insured by surplus lines carriers are not
238 protected under the Florida Insurance Guaranty Act with respect
239 to any right of recovery for the obligation of an insolvent
240 unlicensed insurer."

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241 (3) (a) Subsection (1) does not apply to wet marine and
242 transportation or aviation risks that which are subject to s.
243 626.917.
244 (b) Paragraphs (1) (a)-(d) do not apply to classes of
245 insurance which are subject to s. 627.062(3) (d)l. These classes
246 may be exportable under the following conditions:
247 1. The insurance must be placed only by or through a
248 surplus lines agent licensed in this state;
249 2. The insurer must be made eligible under s. 626.918; and
250 3. The insured has complied with paragraph ( 1) ( f) ffH±&I::.
251 sign a disclosure that substantially provides the following:
252 "You are agreeing to place coverage in the surplus lines market.
253 Superior coverage may be available in the adfflitted market and at
254 a lesser east. Persons insured by surplus lines carriers are not
255 protected under the Florida Insurance Guaranty ~et with respect
256 to any right of recovery for the obligation of an insolvent
257 unlicensed insurer." If the disclosure notice is signed by the
258 insured, the insured is presumed to have been informed and to
259 know that other coverage may be available, and, with respect to
260 the diligent-effort requirement under subsection (1), there is
261 no liability on the part of, and no cause of action arises
262 against, the retail agent presenting the form.
263 Section 14. Paragraph (z) of subsection (1) of section
264 626.9541, Florida Statutes, is amended to read:
265 626.9541 Unfair methods of competition and unfair or
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266 deceptive acts or practices defined.-
267 (1) UNFAIR METHODS OF COMPETITION AND UNFAIR OR DECEPTIVE
268 ACTS.-The following are defined as unfair methods of competition
269 and unfair or deceptive acts or practices:
270 (z) Sliding.-Sliding is the act or practice of any of the
271 following:
272 1. Representing to the applicant that a specific ancillary
273 coverage or product is required by law in conjunction with the
274 purchase of insurance when such coverage or product is not
275 required~T
276 2. Representing to the applicant that a specific ancillary
277 coverage or product is included in the policy applied for
278 without an additional charge when such charge is required~-j-------6-f
279 3. Charging an applicant for a specific ancillary coverage
280 or product, in addition to the cost of the insurance coverage
281 applied for, without the informed consent of the applicant.
282 4. Initiating, effectuating, binding, or otherwise issuing
283 a policy of insurance without the prior informed consent of the
284 owner of the property to be insured.
285 5. Mailing, transmitting, or otherwise submitting by any
286 means an invoice for premium payment to a mortgagee or escrow
287 agent for the purpose of effectuating an insurance policy
288 without the prior informed consent of the owner of the property
289 to be insured. However, this subparagraph does not apply in
290 cases where the mortgagee or escrow agent is renewing insurance
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291 or issuing collateral protection insurance as defined ins.
292 624.6085 pursuant to the mortgage or other pertinent loan
293 documents or communications regarding the property.
294 Section 15. Effective January 1, 2021, subsection (3) of
295 section 626.9741, Florida Statutes, is amended to read:
296 626.9741 Use of credit reports and credit scores by
297 insurers.-
298 (3) An insurer must inform an applicant or insured, in the
299 same medium as the application is taken, that a credit report or
300 score is being requested for underwriting or rating purposes.
301 The notification to the consumer must include the following
302 language: "The Department of Financial Services offers free
303 financial literacy programs to assist you with insurance-related
304 questions, including how credit works and how credit scores are
305 calculated. To learn more, call 1-877-693-5236 or visit
306 www.MyFloridaCFO.com.'' An insurer that makes an adverse decision
307 based, in whole or in part, upon a credit report must provide at
308 no chargeT a copy of the credit report to the applicant or
309 insured or provide the applicant or insured with the name,
310 address, and telephone number of the consumer reporting agency
311 from which the insured or applicant may obtain the credit
312 report. The insurer must provide notification to the consumer
313 explaining the reasons for the adverse decision. The reasons
314 must be provided in sufficiently clear and specific language so
315 that a person can identify the basis for the insurer's adverse
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316 decision. Such notification shall include a description of the
317 four primary reasons, or such fewer number as existed, which
318 were the primary influences of the adverse decision. The use of
319 generalized terms such as "poor credit history," "poor credit
320 rating," or "poor insurance score" does not meet the explanation
321 requirements of this subsection. A credit score may not be used
322 in underwriting or rating insurance unless the scoring process
323 produces information in sufficient detail to permit compliance
324 with the requirements of this subsection. It shall not be deemed
325 an adverse decision if, due to the insured's credit report or
326 credit score, the insured continues to receive a less favorable
327 rate or placement in a less favorable tier or company at the
328 time of renewal except for renewals or reunderwriting required
329 by this section.
330 Section 16. Subsection (1) of section 626.9957, Florida
331 Statutes, is amended to read:
332 626.9957 Conduct prohibited; denial, revocation, or
333 suspension of registration.-
334 (1) As provided ins. 626.112, only a person licensed as
335 an insurance agent or customer representative may engage in the
336 solicitation of insurance. A person who engages in the
337 solicitation of insurance as described ins. 626.112(1) without
338 such license is subject to the penalties provided under s.
339 626.112(10) s. 626.112(9).
340 Section 17. Subsection (10) of section 627.062, Florida

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341 Statutes, is amended to read:
342 627.062 Rate standards.-
343 (10) Any interest paid pursuant to s. 627.70131(7) -s--.
344 627.70131(5) may not be included in the insurer's rate base and
345 may not be used to justify a rate or rate change.
346 Section 18. Effective January 1, 2021, subsection (6) is
347 added to section 627.421, Florida Statutes, to read:
348 627.421 Delivery of policy.-
349 (6) For personal lines residential property insurance
350 policies, the insurer shall, between March 1 and June 1 of each
351 year, inclusive, deliver an outline of the hurricane coverage as
352 specified ins. 627.4143(3), along with a current policy
353 declarations page. This requirement applies only for those
354 insureds that have provided the insurer with a valid e-mail
355 address. This information must be delivered directly to the
356 policyholder via e-mail or by an e-mail notice of information
357 being posted to a secure web-based policy information page.
358 Section 19. Section 627.502, Florida Statutes, is amended
359 to read:
360 627.502 "Industrial life insurance" defined; reportingL
361 prohibition on new policies after a certain date.-
362 (1) For the purposes of this code, "industrial life
363 insurance" is that form of life insurance written under policies
364 under which premiums are payable monthly or more often, bearing
365 the words "industrial policy" or "weekly premium policy" or

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366 words of similar import imprinted upon the policies as part of
367 the descriptive matter, and issued by an insurer that which, as
368 to such industrial life insurance, is operating under a system
369 of collecting a debit by its agent.
370 (2) Every life insurer servicing existing transacting
371 industrial life insurance shall report to the office all annual
372 statement data regarding the exhibit of life insurance,
373 including relevant information for industrial life insurance.
374 (3) Beginning July 1, 2020, a life insurer may not write a
375 new policy of industrial life insurance.
376 Section 20. Effective January 1, 2021, section 627.70131,
377 Florida Statutes, is amended to read:
378 627.70131 Insurer's duty to acknowledge communications
379 regarding claims; investigation.-
380 (1) (a) Upon an insurer's receiving a communication with
381 respect to a claim, the insurer shall, within 14 calendar days,
382 review and acknowledge receipt of such communication unless
383 payment is made within that period of time or unless the failure
384 to acknowledge is caused by factors beyond the control of the
385 insurer which reasonably prevent such acknowledgment. If the
386 acknowledgment is not in writing, a notification indicating
387 acknowledgment shall be made in the insurer's claim file and
388 dated. A communication made to or by a representative an agent
389 of an insurer with respect to a claim shall constitute
390 communication to or by the insurer.
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391 (b) As used in this subsection, the term "representative"
392 "agent" means any person to whom an insurer has granted
393 authority or responsibility to receive or make such
394 communications with respect to claims on behalf of the insurer.
395 (c) This subsection shall not apply to claimants
396 represented by counsel beyond those communications necessary to
397 provide forms and instructions.
398 (2) Such acknowledgment shall be responsive to the
399 communication. If the communication constitutes a notification
400 of a claim, unless the acknowledgment reasonably advises the
401 claimant that the claim appears not to be covered by the
402 insurer, the acknowledgment shall provide necessary claim forms,
403 and instructions, including an appropriate telephone number.
404 (3)~ Unless otherwise provided by the policy of
405 insurance or by law, within 10 business working days after an
406 insurer receives proof of loss statements, the insurer shall
407 begin such investigation as is reasonably necessary unless the
408 failure to begin such investigation is caused by factors beyond
409 the control of the insurer which reasonably prevent the
410 commencement of such investigation.
411 (b) If such investigation involves a physical inspection
412 of the property, the licensed adjuster assigned by the insurer
413 must provide the policyholder with his or her name, license
414 number, and contact information.
415 (c) If an insurer assigns the claim to a different
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Amendment No. 1.

416 licensed adjuster from the adjuster who performed the physical
417 inspection, the insurer must, within 14 days after changing the
418 licensed insurance adjuster assigned to a claim, provide the
419 name, license number, and contact information of the new
420 adjuster to the policyholder. The notification may be made
421 electronically or via mail. If the notification is a physical
422 letter, it must be postmarked within 14 days after the date of
423 the change in adjuster. The policyholder must be provided notice
424 of any subsequent change to the assigned adjuster as set forth
425 by this paragraph.
426 (4) An insurer shall establish a process by which an agent
427 of record for an insurance policy receives the same notice as
428 the policyholder as provided in paragraphs ( 3) (b) and ( c) in
429 order to assist the agent of record in answering the
430 policyholder's questions regarding claims. As used in this
431 subsection, the term "agent of record" means the agent named on
432 the declarations page of the insurance policy or, if there is no
433 agent of record, another designated point of contact.
434 (5) For purposes of this section, the term "insurer" means
435 any residential property insurer.
436 (6) (a) When providing a preliminary or partial estimate of
437 damage regarding a claim, an insurer shall include with the
438 estimate the following statement printed in at least 12-point
439 bold, uppercase type: THIS ESTIMATE REPRESENTS OUR CURRENT
440 EVALUATION OF THE COVERED DAMAGES TO YOUR INSURED PROPERTY AND

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Amendment No. 1.

441 MAY BE REVISED AS WE CONTINUE TO EVALUATE YOUR CLAIM. IF YOU
442 HAVE QUESTIONS, CONCERNS, OR ADDITIONAL INFORMATION REGARDING
443 YOUR CLAIM, WE ENCOURAGE YOU TO CONTACT US.
444 (b) When providing a payment on a claim that is not the
445 full and final payment for the claim, an insurer shall include
446 with the payment the following statement printed in at least 12-
447 point bold, uppercase type: WE ARE CONTINUING TO EVALUATE YOUR
448 CLAIM INVOLVING YOUR INSURED PROPERTY AND MAY ISSUE ADDITIONAL
449 PAYMENTS. IF YOU HAVE QUESTIONS, CONCERNS, OR ADDITIONAL
450 INFORMATION REGARDING YOUR CLAIM, WE ENCOURAGE YOU TO CONTACT
451 US. IF THE PAYMENT IS MADE BY ELECTRONIC FUNDS TRANSFER, A
452 SIMILAR NOTICE MAY BE DELIVERED DIRECTLY TO THE POLICYHOLDER VIA
453 EMAIL OR BY AN E-MAIL NOTICE OF INFORMATION BEING POSTED TO A
454 SECURE WEB-BASED POLICY INFORMATION PAGE.
455 (7)-f-§-t(a) Within 90 calendar days after an insurer
456 receives notice of an initial, reopened, or supplemental
457 property insurance claim from a policyholder, the insurer shall
458 pay or deny such claim or a portion of the claim unless the
459 failure to pay is caused by factors beyond the control of the
460 insurer which reasonably prevent such payment. Any payment of an
461 initial or supplemental claim or portion of such claim made 90
462 calendar days after the insurer receives notice of the claim, or
463 made more than 15 calendar days after there are no longer
464 factors beyond the control of the insurer which reasonably
465 prevented such payment, whichever is later, bears interest at

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Amendment No. 1.

466 the rate set forth ins. 55.03. Interest begins to accrue from
467 the date the insurer receives notice of the claim. The
468 provisions of this subsection may not be waived, voided, or
469 nullified by the terms of the insurance policy. If there is a
470 right to prejudgment interest, the insured shall select whether
471 to receive prejudgment interest or interest under this
472 subsection. Interest is payable when the claim or portion of the
473 claim is paid. Failure to comply with this subsection
474 constitutes a violation of this code. However, failure to comply
475 with this subsection does not form the sole basis for a private
476 cause of action.
477 (b) Notwithstanding subsection~ -f-4+, for purposes of
478 this su~section, the term "claim'' means any of the following:
479 1. A claim under an insurance policy providing residential
480 coverage as defined ins. 627.4025(1);
481 2. A claim for structural or contents coverage under a
482 commercial property insurance policy if the insured structure is
483 10,000 square feet or less; or
484 3. A claim for contents coverage under a commercial tenant
485 policy if the insured premises is 10,000 square feet or less.
486 (c) This subsection does shall not apply to claims under
487 an insurance policy covering nonresidential commercial
488 structures or contents in more than one state.
489 (8) This section also applies to surplus lines insurers
490 and surplus lines insurance authorized under ss. 626.913-626.937
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Amendment No. 1.

491 providing residential coverage.
492 Section 21. Section 627.7031, Florida Statutes, is created
493 to read:
494 627.7031 Foreign venue clauses prohibited.-After July 1,
495 2020, a property insurance policy sold in this state insuring
496 real property located only in this state may not require an
497 insured to pursue dispute resolution through litigation,
498 arbitration, or mediation outside this state. This section also
499 applies to surplus lines insurers and surplus lines insurance
500 authorized under ss. 626.913-626.937.
501 Section 22. Effective January 1, 2021, section 627.7142,
502 Florida Statutes, is amended to read:
503 627.7142 Homeowner Claims Bill of Rights.-An insurer
504 issuing a personal lines residential property insurance policy
505 in this state must provide a Homeowner Claims Bill of Rights to
506 a policyholder within 14 calendar days after receiving an
507 initial communication with respect to a claim, unless the claim
508 follows an event that is the subject of a declaration of a state
509 of emergency by the Governor. The purpose of the bill of rights
510 is to summarize, in simple, nontechnical terms, existing Florida
511 law regarding the rights of a personal lines residential
512 property insurance policyholder who files a claim of loss. The
513 Homeowner Claims Bill of Rights is specific to the claims
514 process and does not represent all of a policyholder's rights
515 under Florida law regarding the insurance policy. The Homeowner
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Amendment No. 1.

516 Claims Bill of Rights does not create a civil cause of action by
517 any individual policyholder or class of policyholders against an
518 insurer or insurers. The failure of an insurer to properly
519 deliver the Homeowner Claims Bill of Rights is subject to
520 administrative enforcement by the office but is not admissible
521 as evidence in a civil action against an insurer. The Homeowner
522 Claims Bill of Rights does not enlarge, modify, or contravene
523 statutory requirements, including, but not limited to, ss.
524 626.854, 626.9541, 627.70131, 627.7015, and 627.7074, and does
525 not prohibit an insurer from exercising its right to repair
526 damaged property in compliance with the terms of an applicable
527 policy or ss. 627. 7011 (5) (e) and 627. 702 (7). The Homeowner
528 Claims Bill of Rights must state:
529
530 HOMEOWNER CLAIMS
531 BILL OF RIGHTS
532 This Bill of Rights is specific to the claims process
533 and does not represent all of your rights under
534 Florida law regarding your policy. There are also
535 exceptions to the stated timelines when conditions are
536 beyond your insurance company's control. This document
537 does not create a civil cause of action by an
538 individual policyholder, or a class of policyholders,
539 against an insurer or insurers and does not prohibit
540 an insurer from exercising its right to repair damaged

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COMMITTEE/SUBCOMMITTEE AMENDMENT
Bill No. CS/HB 1137 (2020)
Amendment No. 1.

541 property in compliance with the terms of an applicable
542 policy.
543
544 YOU HAVE THE RIGHT TO:
545 1. Receive from your insurance company an
546 acknowledgment of your reported claim within 14
547 calendar days after the time you communicated the
548 claim.
549 2. Upon written request, receive from your insurance
550 company within 30 days after you have submitted a
551 complete proof-of-loss statement to your insurance
552 company, confirmation that your claim is covered in
553 full, partially covered, or denied, or receive a
554 written statement that your claim is being
555 investigated.
556 3. Within 14 calendar days, receive notification from
557 your insurance company if there has been a change in
558 the company adjuster who is assigned to your claim.
559 The notification must include the assigned adjuster's
560 contact information.
561 4. Within 90 calendar days, subject to any dual
562 interest noted in the policy, receive full settlement
563 payment for your claim or payment of the undisputed
564 portion of your claim, or your insurance company's
565 denial of your claim.
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COMMITTEE/SUBCOMMITTEE AMENDMENT
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Amendment No. 1.

566 5. Receive payment of interest as provided in section
567 627.7031, Florida Statutes, from your insurance
568 company, which begins accruing from the date your
569 initial, reopened, or supplemental claim is filed if
570 your insurance company does not pay full settlement of
571 your claim or the undisputed portion of your claim or
572 does not deny your claim within 90 calendar days after
573 your claim is filed. The interest, if applicable, must
574 be paid when your claim or undisputed portion of your
575 claim is paid.
576 6.4.- Free mediation of your disputed claim by the
577 Florida Department of Financial Services, Division of
578 Consumer Services, under most circumstances and
579 subject to certain restrictions.
580 7 . .§-. Neutral evaluation of your disputed claim, if
581 your claim is for damage caused by a sinkhole and is
582 covered by your policy.
583 8.-6-.- Contact the Florida Department of Financial
584 Services, Division of Consumer Services' toll-free
585 helpline for assistance with any insurance claim or
586 questions pertaining to the handling of your claim.
587 You can reach the Helpline by phone at ... (toll-free
588 phone number) ... , or you can seek assistance online at
589 the Florida Department of Financial Services, Division
590 of Consumer Services' website at ... (website

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COMMITTEE/SUBCOMMITTEE AMENDMENT
Bill No. CS/HB 1137 (2020)
Amendment No. 1.

591 address) ....
592
593 YOU ARE ADVISED TO:
594 1. Contact your insurance company before entering
595 into any contract for repairs to confirm any managed
596 repair policy provisions or optional preferred
597 vendors.
598 2. Make and document emergency repairs that are
599 necessary to prevent further damage. Keep the damaged
600 property, if feasible, keep all receipts, and take
601 photographs or video of damage before and after any
602 repairs to provide to your insurer.
603 3. Carefully read any contract that requires you to
604 pay out-of-pocket expenses or a fee that is based on a
605 percentage of the insurance proceeds that you will
606 receive for repairing or replacing your property.
607 4. Confirm that the contractor you choose is licensed
608 to do business in Florida. You can verify a
609 contractor's license and check to see if there are any
610 complaints against him or her by calling the Florida
611 Department of Business and Professional Regulation.
612 You should also ask the contractor for references from
613 previous work.
614 5. Require all contractors to provide proof of
615 insurance before beginning repairs.
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Amendment No. 1.

616 6. Take precautions if the damage requires you to leave
617 your home, including securing your property and turning off your
618 gas, water, and electricity, and contacting your insurance
619 company and provide a phone number where you can be reached.
620 Section 23. Notwithstanding the expiration of subsection
621 (4) of section 627.715, Florida Statutes, which occurred on July
622 1, 2019, that subsection is revived, reenacted, and amended to
623 read:
624 627.715 Flood insurance.-An authorized insurer may issue
625 an insurance policy, contract, or endorsement providing personal
626 lines residential coverage for the peril of flood or excess
627 coverage for the peril of flood on any structure or the contents
628 of personal property contained therein, subject to this section.
629 This section does not apply to commercial lines residential or
630 commercial lines nonresidential coverage for the peril of flood.
631 An insurer may issue flood insurance policies, contracts,
632 endorsements, or excess coverage on a standard, preferred,
633 customized, flexible, or supplemental basis.
634 (4) A surplus lines agent may export a contract or
635 endorsement providing flood coverage to an eligible surplus
636 lines insurer without making a diligent effort to seek such
637 coverage from three or more authorized insurers under s.
638 626.916(1) (a). This subsection expires July 1, 2025 -2-G-±-9-, or on
639 the date on which the Commissioner of Insurance Regulation
640 determines in writing that there is an adequate admitted market
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COMMITTEE/SUBCOMMITTEE AMENDMENT
Bill No. CS/HB 1137 (2020)
Amendment No. 1.

641 to provide coverage for the peril of flood consistent with this
642 section, whichever date occurs first. If there are fewer than
643 three admitted insurers on the date this subsection expires, the
644 number of declinations necessary to meet the diligent-effort
645 requirement shall be no fewer than the number of authorized
646 insurers providing flood coverage.
647 Section 24. Paragraph (a) of subsection (1) and subsection
648 (6) of section 631.57, Florida Statutes, are amended to read:
649 631.57 Powers and duties of the association.-
650 (1) The association shall:
651 (a)l. Be obligated to the extent of the covered claims
652 existing:
653 a. Prior to adjudication of insolvency and arising within
654 30 days after the determination of insolvency;
655 b. Before the policy expiration date if less than 30 days
656 after the determination; or
657 c. Before the insured replaces the policy or causes its
658 cancellation, if she or he does so within 30 days of the
659 determination.
660 2. The obligation under subparagraph 1. includes efH:-Y the
661 amount of each covered claim which is in excess of ~100 and is
662 less than $300,000, except that policies providing coverage for
663 homeowner's insurance shall provide for an additional $200,000
664 for the portion of a covered claim which relates only to the
665 damage to the structure and contents.
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COMMITTEE/SUBCOMMITTEE AMENDMENT
Bill No. CS/HB 1137 (2020)
Amendment No. 1.

666 3.a. Notwithstanding subparagraph 2., the obligation under
667 subparagraph 1. for policies covering condominium associations
668 or homeowners' associations, which associations have a
669 responsibility to provide insurance coverage on residential
670 units within the association, shall include that amount of each
671 covered property insurance claim which is less than $100,000
672 multiplied by the number of condominium units or other
673 residential units; however, as to homeowners' associations, this
674 sub-subparagraph applies only to claims for damage or loss to
675 residential units and structures attached to residential units.
676 b. Notwithstanding sub-subparagraph a., the association
677 has no obligation to pay covered claims that are to be paid from
678 the proceeds of bonds issued under s. 631.695. However, the
679 association shall assign and pledge the first available moneys
680 from all or part of the assessments to be made under paragraph
681 (3) (a) to or on behalf of the issuer of such bonds for the
682 benefit of the holders of such bonds. The association shall
683 administer any such covered claims and present valid covered
684 claims for payment in accordance with the provisions of the
685 assistance program in connection with which such bonds have been
686 issued.
687 4. In no event shall the association be obligated to a
688 policyholder or claimant in an amount in excess of the
689 obligation of the insolvent insurer under the policy from which
690 the claim arises.
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COMMITTEE/SUBCOMMITTEE AMENDMENT
Bill No. CS/HB 1137 (2020)
Amendment No. 1.

691 (6) The association may extend the time limits specified
692 in paragraph (1) (a) by up to an additional 60 days or waive the
693 applicability of the $100 deductible specified in paragraph
694 (1) (a) if the board determines that either or both such actions
695 are necessary to facilitate the bulk assumption of obligations.
696 Section 25. Section 648.30, Florida Statutes, is amended
697 to read:
698 648.30 Licensure and appointment required; prohibited
699 acts; penalties.-
700 (1) A person may not act in the capacity of a bail bond
701 agent or temporary bail bond agent or perform any of the
702 functions, duties, or powers prescribed for bail bond agents or
703 temporary bail bond agents under this chapter unless that person
704 is qualified, licensed, and appointed as provided in this
705 chapter.
706 (2) A person may not represent himself or herself to be a
707 bail enforcement agent, bounty hunter, or other similar title in
708 this state.
709 (3) A person, other than a certified law enforcement
710 officer, may not apprehend, detain, or arrest a principal on a
711 bond, wherever issued, unless that person is qualified,
712 licensed, and appointed as provided in this chapter or licensed
713 as a bail bond agent or bail bond enforcement agent, or holds an
714 equivalent license by the state where the bond was written.
715 (4) Any person who violates this section commits a felony
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COMMITTEE/SUBCOMMITTEE AMENDMENT
Bill No. CS/HB 1137 (2020)
Amendment No. 1.

716 of the third degree, punishable as provided ins. 775.082, s.
717 775.083, ors. 775.084.
718 (5) Any licensee under this chapter who knowingly aids or
719 abets an unlicensed person in violating this section commits a
720 felony of the third degree, punishable as provided ins.
721 775.082, s. 775.083, ors. 775.084.
722 Section 26. Paragraphs (b) and (c) of subsection (4) and
723 subsections (1) and (10) of section 717.124, Florida Statutes,
724 are amended to read:
725 717.124 Unclaimed property claims.-
726 (1) Any person, excluding another state, claiming an
727 interest in any property paid or delivered to the department
728 under this chapter may file with the department a claim on a
729 form prescribed by the department and verified by the claimant
730 or the claimant's representative. The claimant's representative
731 must be an attorney licensed to practice law in this state, a
732 licensed Florida-certified public accountant, or a private
733 investigator licensed under chapter 493. The claimant's
734 representative must be registered with the department under this
735 chapter. The claimant, or the claimant's representative, shall
736 provide the department with a legible copy of a valid driver
737 license of the claimant at the time the original claim form is
738 filed. If the claimant has not been issued a valid driver
739 license at the time the original claim form is filed, the
740 department shall be provided with a legible copy of a
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COMMITTEE/SUBCOMMITTEE AMENDMENT
Bill No. CS/HB 1137 (2020)
Amendment No. 1.

741 photographic identification of the claimant issued by the United
742 States, a state or territory of the United States, a foreign
743 nation, or a political subdivision or agency thereof or other
744 evidence deemed acceptable by the department by rule. In lieu of
745 photographic identification, a notarized sworn statement by the
746 claimant may be provided which affirms the claimant's identity
747 and states the claimant's full name and address. The claimant
748 must produce to the notary photographic identification of the
749 claimant issued by the United States, a state or territory of
750 the United States, a foreign nation, or a political subdivision
751 or agency thereof or other evidence deemed acceptable by the
752 department by rule. The notary shall indicate the notary's full
753 address on the notarized sworn statement. Any claim filed
754 without the required identification or the sworn statement with
755 the original claim form and the original Uniform Unclaimed
756 Property Recovery Agreement or Uniform Unclaimed Property
757 Purchase Agreement power of attorney or purchase agreement, if
758 applicable, is void.
759 (a) Within 90 days after receipt of a claim, the
760 department may return any claim that provides for the receipt of
761 fees and costs greater than that permitted under this chapter or
762 that contains any apparent errors or omissions. The department
763 may also request that the claimant or the claimant's
764 representative provide additional information. The department
765 shall retain a copy or electronic image of the claim.

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COMMITTEE/SUBCOMMITTEE AMENDMENT
Bill No. CS/HB 1137 (2020)
Amendment No. 1.

766 (b) A claimant or the claimant's representative shall be
767 deemed to have withdrawn a claim if no response to the
768 department's request for additional information is received by
769 the department within 60 days after the notification of any
770 apparent errors or omissions.
771 (c) Within 90 days after receipt of the claim, or the
772 response of the claimant or the claimant's representative to the
773 department's request for additional information, whichever is
774 later, the department shall determine each claim. Such
775 determination shall contain a notice of rights provided by ss.
776 120.569 and 120.57. The 90-day period shall be extended by 60
777 days if the department has good cause to need additional time or
778 if the unclaimed property:
779 1. Is owned by a person who has been a debtor in
780 bankruptcy;
781 2. Was reported with an address outside of the United
782 States;
783 3. Is being claimed by a person outside of the United
784 States; or
785 4. Contains documents filed in support of the claim that
786 are not in the English language and have not been accompanied by
787 an English language translation.
788 (d) The department shall deny any claim under which the
789 claimant's representative has refused to authorize the
790 department to reduce the fees and costs to the maximum permitted

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COMMITTEE/SUBCOMMITTEE AMENDMENT
Bill No. CS/HB 1137 (2020)
Amendment No. 1.

791 under this chapter.
792 ( 4)

793 (b) If an owner authorizes an attorney licensed to
794 practice law in this state, Florida-certified public accountant,
795 or private investigator licensed under chapter 493, and
796 registered with the department under this chapter, to claim the
7 97 unclaimed property on the owner's behalf, the department is
7 98 authorized to make distribution of the property or money in
799 accordance with the Uniform Unclaimed Property Recovery
800 Agreement or Uniform Unclaimed Property Purchase Agreement under
801 s. 717.135 such power of attorney. The original Uniform
802 Unclaimed Property Recovery Agreement or Uniform Unclaimed
803 Property Purchase Agreement power of attorney must be executed
804 by the claimant or seller owner and must be filed with the
805 department.
806 (c)l. Payments of approved claims for unclaimed cash
807 accounts shall be made to the owner after deducting any fees and
808 costs authorized pursuant to a Uniform Unclaimed Property
809 Recovery Agreement written power of attorney. The contents of a
810 safe-deposit box shall be delivered directly to the claimant
811 notwithstanding any power of attorney or agreement to the
812 contrary.
813 2. Payments of fees and costs authorized pursuant to a
814 Uniform Unclaimed Property Recovery Agreement written power of
815 attorney for approved claims must shall be made or issued to the
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COMMITTEE/SUBCOMMITTEE AMENDMENT
Bill No. CS/HB 1137 (2020)
Amendment No. 1.

816 law firm of the designated attorney licensed to practice law in
817 this state, the public accountancy firm of the licensed Florida-
818 certified public accountant, or the designated employing private
819 investigative agency licensed by this state. Such payments shall
820 be made by electronic funds transfer and may be made on such
821 periodic schedule as the department may define by rule, provided
822 the payment intervals do not exceed 31 days. Payment made to an
823 attorney licensed in this state, a Florida-certified public
824 accountant, or a private investigator licensed under chapter
825 493, operating individually or as a sole practitioner, shall be
826 to the attorney, certified public accountant, or private
827 investigator.
828 (10) Notwithstanding any other provision of this chapter,
829 the department may develop a process by which a registered
830 claimant's representative or a buyer of unclaimed property may
831 electronically submit to the department an electronic image of a
832 completed claim and claims-related documents pursuant to this
833 chapter, including a Uniform Unclaimed Property Recovery
834 Agreement or Uniform Unclaimed Property Purchase Agreement a
835 limited power of attorney or purchase agreement that has been
836 manually signed and dated by a claimant or seller pursuant to s.
837 717.135 ors. 717.1351, after the claimant's representative or
838 the buyer of unclaimed property receives the original documents
839 provided by the claimant or the seller for any claim. Each claim
840 filed by a registered claimant's representative or a buyer of
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COMMITTEE/SUBCOMMITTEE AMENDMENT
Bill No. CS/HB 1137 (2020)
Amendment No. 1.

841 unclaimed property must include a statement by the claimant's
842 representative or the buyer of unclaimed property attesting that
843 all documents are true copies of the original documents and that
844 all original documents are physically in the possession of the
845 claimant's representative or the buyer of unclaimed property.
846 All original documents must be kept in the original form, by
847 claim number, under the secure control of the claimant's
848 representative or the buyer of unclaimed property and must be
849 available for inspection by the department in accordance withs.
850 717.1315. The department may adopt rules to implement this
851 subsection.
852 Section 27. Subsection (2) of section 717.12404, Florida
853 Statutes, is amended to read:
854 717.12404 Claims on behalf of a business entity or trust.-
855 (2) Claims on behalf of a dissolved corporation, a
856 business entity other than an active corporation, or a trust
857 must include a legible copy of a valid driver license of the
858 person acting on behalf of the dissolved corporation, business
859 entity other than an active corporation, or trust. If the person
860 has not been issued a valid driver license, the department shall
861 be provided with a legible copy of a photographic identification
862 of the person issued by the United States, a foreign nation, or
863 a political subdivision or agency thereof. In lieu of
864 photographic identification, a notarized sworn statement by the
865 person may be provided which affirms the person's identity and
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COMMITTEE/SUBCOMMITTEE AMENDMENT
Bill No. CS/HB 1137 (2020)
Amendment No. 1.

866 states the person's full name and address. The person must
867 produce his or her photographic identification issued by the
868 United States, a state or territory of the United States, a
869 foreign nation, or a political subdivision or agency thereof or
870 other evidence deemed acceptable by the department by rule. The
871 notary shall indicate the notary's full address on the notarized
872 sworn statement. Any claim filed without the required
873 identification or the sworn statement with the original claim
874 form and the original Uniform Unclaimed Property Recovery
875 Agreement or Uniform Unclaimed Property Purchase Agreement power
876 of attorney, if applicable, is void.
877 Section 28. Subsection (1) of section 717.1315, Florida
878 Statutes, is amended to read:
879 717.1315 Retention of records by claimant's
880 representatives and buyers of unclaimed property.-
881 (1) Every claimant's representative and buyer of unclaimed
882 property shall keep and use in his or her business such books,
883 accounts, and records of the business conducted under this
884 chapter to enable the department to determine whether such
885 person is complying with this chapter and the rules adopted by
886 the department under this chapter. Every claimant's
887 representative and buyer of unclaimed property shall preserve
888 such books, accounts, and records, including every Uniform
889 Unclaimed Property Recovery Agreement or Uniform Unclaimed
890 Property Purchase Agreement power of attorney or agreement
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COMMITTEE/SUBCOMMITTEE AMENDMENT
Bill No. CS/HB 1137 (2020)
Amendment No. 1.

891 between the owner and such claimant's representative or buyer,
I
892 for at least 3 years after the date of the initial power of
893 attorney or agreement.
894 Section 29. Paragraph (j) of subsection (1) of section
895 717.1322, Florida Statutes, is amended to read:
896 717.1322 Administrative and civil enforcement.-
897 (1) The following acts are violations of this chapter and
898 constitute grounds for an administrative enforcement action by
899 the department in accordance with the requirements of chapter
900 120 and for civil enforcement by the department in a court of
901 competent jurisdiction:
902 (j) Requesting or receiving compensation for notifying a
903 person of his or her unclaimed property or assisting another
904 person in filing a claim for unclaimed property, unless the
905 person is an attorney licensed to practice law in this state, a
906 Florida-certified public accountant, or a private investigator
907 licensed under chapter 493, or entering into, or making a
908 solicitation to enter into, an agreement a power of attorney to
909 file a claim for unclaimed property owned by another, or a
910 contract or agreement to purchase unclaimed property, unless
911 such person is registered with the department pursuant to this
912 chapter and an attorney licensed to practice law in this state
913 in the regular practice of her or his profession, a Florida-
914 certified public accountant who is acting within the scope of
915 the practice of public accounting as defined in chapter 473, or
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COMMITTEE/SUBCOMMITTEE AMENDMENT
Bill No. CS/HB 1137 (2020)
Amendment No. 1.

916 a private investigator licensed under chapter 493. This
917 subsection does not apply to a person who has been granted a
918 durable power of attorney to convey and receive all of the real
919 and personal property of the owner, is the court-appointed
920 guardian of the owner, has been employed as an attorney or
921 qualified representative to contest the department's denial of a
922 claim, or has been employed as an attorney to probate the estate
923 of the owner or an heir or legatee of the owner.
924 Section 30. Section 717.135, Florida Statutes, is amended
925 to read:
926 (Substantial rewording of section. See
927 s. 717.135, F.S., for present text.)
928 717.135 Recovery agreements and purchase agreements for
929 claims filed by claimant's representative; fees and costs.-
930 (1) In order to protect the interests of owners of
931 unclaimed property, the department shall adopt by rule a form
932 entitled "Uniform Unclaimed Property Recovery Agreement" and a
933 form entitled "Uniform Unclaimed Property Purchase Agreement.''
934 (2) The Uniform Unclaimed Property Recovery Agreement form
935 and the Uniform Unclaimed Property Purchase Agreement form must
936 include and disclose:
937 (a) The total dollar amount of unclaimed property accounts
938 claimed or sold.
939 (b) Either the total percentage of all authorized fees and
940 costs to be paid to the claimant's representative or the

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COMMITTEE/SUBCOMMITTEE AMENDMENT
Bill No. CS/HB 1137 (2020)
Amendment No. 1.

941 percentage of the value of the property to be paid as net gain
942 to the purchasing registered claimant's representative.
943 (c) Either the total dollar amount to be deducted and
944 received from the claimant as fees and costs by the claimant's
945 representative or the total net dollar amount to be received by
946 the purchasing registered claimant's representative.
947 (d) The net dollar amount to be received by the claimant
948 or seller.
949 (e) For each account claimed, the unclaimed property
950 account number and name of the apparent owner, as listed on the
951 department's database.
952 (f) For the Uniform Unclaimed Property Purchase Agreement,
953 a statement that the purchase price will be remitted to the
954 seller within 30 days after the execution of the form by the
955 seller.
956 (g) The name, address, e-mail address, telephone number,
957 and license number of the registered claimant's representative.
958 (h) The manual signature of the claimant or seller and the
959 date signed.
960 (i) The social security number or taxpayer identification
961 number of the claimant or seller, if available. A social
962 security number or taxpayer identification number is considered
963 available if such number has been issued to the claimant or
964 seller.
965 (j) A limit of total fees and costs, or the total discount
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COMMITTEE/SUBCOMMITTEE AMENDMENT
Bill No. CS/HB 1137 (2020)
Amendment No. 1.

966 amount in the case of a purchase agreement, of no more than 20
967 percent of the claimed amount.
968 1. Up to the following additional maximum total dollar
969 amounts may be added to and included in the total amounts
970 disclosed to and approved by the claimant under paragraph (b) or
971 paragraph (c) if the apparent owner is deceased with an estate
972 that is required to be probated.
973 a. For total dollar amounts of property having a value of
974 $40,000 or less: $1,500.
975 b. For total dollar amounts of property having a value of
97 6 at least $40,000 but less than $70,000: $2,250.
977 c. For total dollar amounts of property having a value of
978 at least $70,000 but less than $100,000: $3,000.
979 d. For total dollar amounts of property having a value of
980 $100,000 or greater: $3,750.
981 2. If probate is required and if the required probate is
982 performed at the expense of the claimant's representative, the
983 amounts in subparagraph 1. may be added to and shall become the
984 total amounts disclosed to and approved by the claimant under
985 paragraph (b) or paragraph (c). Copies of all related court
986 filings and documentation, along with proof that the claimant's
987 representative incurred the fees and costs, must be filed with
988 the original claim when it is submitted to the department.
989 a. The amounts in subparagraph 1. may be added to and
990 included in the total amounts in paragraph (b) or paragraph (c)
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COMMITTEE/SUBCOMMITTEE AMENDMENT
Bill No. CS/HB 1137 (2020)
Amendment No. 1.

991 only one time for any deceased owner.
992 b. If an estate affidavit pursuant to s. 717.1243 is used
993 in a claim, the amounts in subparagraph 1. may not be added to
994 or included in the total amounts in paragraph (b) or paragraph
995 (c) for the claim.
996 (k) The additional maximum total dollar amounts in
997 subparagraph (j)l. may also be added to and included in the
998 total amounts disclosed to and approved by the claimant under
999 paragraph (b) or paragraph (c) if the claimant resides in, and
1000 has a mailing or delivery address in, a foreign nation outside
1001 of the United States or its territories.
1002 (3) For a Uniform Unclaimed Property Purchase Agreement
1003 form, proof that the seller has received payment must be filed
1004 with the department along with the claim. If proof of payment is
1005 not provided, the claim is void.
1006 (4) A registered claimant's representative shall use the
1007 Uniform Unclaimed Property Recovery Agreement form or the
1008 Uniform Unclaimed Property Purchase Agreement form as the
1009 exclusive means of engaging with a claimant or seller to file a
1010 claim with the department.
1011 (5) Fees and costs may be owed or paid to a registered
1012 claimant's representative only pursuant to the forms authorized
1013 by this section and upon approval of the claim filed thereby.
1014 (6) A claimant's representative may not use or distribute
1015 any other agreement of any type with respect to the claimant or
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COMMITTEE/SUBCOMMITTEE AMENDMENT
Bill No. CS/HB 1137 (2020)
Amendment No. 1.

1016 seller which relates to unclaimed property accounts held by the
1017 department or the Chief Financial Officer other than the
1018 agreements authorized by this section. Any agreement that is not
1019 authorized by this section is null and void.
1020 (7) The forms under subsection (1):
1021 (a) May not contain language that makes the agreement
1022 irrevocable; and
1023 (b) May not contain language that creates an assignment of
1024 any unclaimed property held by the department.
1025 (8) This section does not supersede the conflicting claims
1026 provisions of s. 717.1241.
1027 (9) At the time a claim is approved, the department may
1028 pay any additional account that is owned by the claimant but has
1029 not been claimed at the time of approval, provided that no
1030 subsequent claim has been filed and is pending for the claimant
1031 at the time of approval.
1032 Section 31. Section 717.1351, Florida Statutes, is
1033 repealed.
1034 Section 32. Except as otherwise provided in this act, this
1035 act shall take effect upon becoming a law.
1036
1037
1038 T I T L E A ME N D ME N T
1039 Remove everything before the enacting clause and insert:
1040 A bill to be entitled
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Page 42 of 47
COMMITTEE/SUBCOMMITTEE AMENDMENT
Bill No. CS/HB 1137 (2020)
Amendment No. 1.

1041 An act relating to consumer protection; amending s.
1042 319.30, F.S.; revising provisions for systems used to
1043 execute electronic signatures for salvage certificates
1044 of title; amending s. 501.0051, F.S.; prohibiting
1045 consumer reporting agencies from charging to reissue
1046 or provide a new unique personal identifier to a
1047 consumer for the removal of a security freeze;
1048 amending s. 624.307, F.S.; revising a requirement for
1049 entities licensed or authorized by the Department of
1050 Financial Services or the Office of Insurance
1051 Regulation to respond to the department's Division of
1052 Consumer Services regarding consumer complaints;
1053 revising administrative penalties the division may
1054 impose for failure to comply; amending s. 626.112,
1055 F.S.; prohibiting unlicensed activity by an adjusting
1056 firm; providing an exemption; providing an exemption
1057 from licensure for branch firms that meet certain
1058 criteria; providing an administrative penalty for
1059 failing to apply for certain licensure; providing a
1060 criminal penalty for aiding or abetting unlicensed
1061 activity; deleting an obsolete provision; amending s.
1062 626.602, F.S.; authorizing the department to
1063 disapprove the use of insurance agency names
1064 containing the words "Medicare" or "Medicaid";
1065 providing an exception for certain insurance agencies;

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Page 43 of 47
COMMITTEE/SUBCOMMITTEE AMENDMENT
Bill No. CS/HB 1137 (2020)
Amendment No. 1.

1066 amending s. 626.621, F.S.; adding grounds on which the
1067 department may take certain actions against a license,
1068 appointment, or application of certain insurance
1069 representatives; amending ss. 626.782 and 626.783,
1070 F.S.; revising the definitions of the terms
1071 "industrial class insurer" and "ordinary-combination
1072 class insurer," respectively, to conform to changes
1073 made by the act; repealing s. 626.796, F.S., relating
1074 to the representation of multiple insurers in the same
1075 industrial debit territory; amending s. 626.8443,
1076 F.S.; increasing the maximum period of suspension of a
1077 title insurance agent's or agency's license; amending
1078 s. 626.854, F.S.; revising the timeframes in which an
1079 insured or claimant may cancel a public adjuster's
1080 contract to adjust a claim without penalty or
1081 obligation; requiring public adjusters to include
1082 itemized information in loss estimates; providing that
1083 failure by the public adjuster to provide such
1084 information restores the insured's right to cancel the
1085 contract without penalty or obligation; amending s.
1086 626.856, F.S.; revising definition of company employee
1087 adjuster; amending s. 626.916, F.S.; revising the
1088 classes of insurance subject to a disclosure
1089 requirement before being eligible for export under the
1090 Surplus Lines Law; amending s. 626.9541, F.S.; adding

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Page 44 of 47
COMMITTEE/SUBCOMMITTEE AMENDMENT
Bill No. CS/HB 1137 (2020)
Amendment No. 1.

1091 certain acts or practices to the definition of the
1092 term "sliding''; amending s. 626.9741, F.S.; requiring
1093 an insurer to include certain additional information
1094 when providing an applicant or insured with certain
1095 credit report or score information; amending ss.
1096 626.9957 and 627.062, F.S.; conforming cross-
1097 references; amending s. 627.421, F.S.; requiring
1098 personal lines residential property insurers to
1099 annually deliver certain notifications to certain
1100 policyholders within a specified timeframe; amending
1101 s. 627.502, F.S.; prohibiting life insurers from
1102 writing new policies of industrial life insurance
1103 beginning on a certain date; amending s. 627.70131,
1104 F.S.; providing that communication made to or by an
1105 insurer's representative, rather than to or by an
1106 insurer's agent, constitutes communication to or by
1107 the insurer; requiring an insurer-assigned licensed
1108 adjuster to provide the policyholder with certain
1109 information in certain investigations; specifying
1110 requirements for insurers in notifying policyholders
1111 of certain changes in assigned adjusters; requiring an
1112 insurer to establish a process to provide the agent of
1113 record access to claim status information for a
1114 certain purpose; defining the term "agent of record";
1115 requiring insurers to include specified notices when

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COMMITTEE/SUBCOMMITTEE AMENDMENT
Bill No. CS/HB 1137 (2020)
Amendment No. 1.

1116 providing preliminary or partial damage estimates or
1117 certain claim payments; specifying the timeframe in
1118 which an insurer must pay or deny property insurance
1119 claims under certain circumstances; providing
1120 applicability; conforming provisions to changes made
1121 by the act; creating s. 627.7031, F.S.; prohibiting
1122 foreign venue clauses in certain property insurance
1123 policies; providing applicability; amending s.
1124 627.7142, F.S.; revising information contained in the
1125 Homeowner Claims Bill of Rights; conforming provisions
1126 to changes made by the act; reviving, reenacting, and
1127 amending s. 627.715, F.S.; extending the expiration
1128 date for provisions authorizing surplus lines agents
1129 to export flood coverage contracts or endorsements to
1130 insurers without seeking such coverage from specified
1131 entities; amending s. 631.57, F.S.; deleting a
1132 deductible on the Florida Insurance Guaranty
1133 Association's obligation relating to certain covered
1134 claims; amending s. 648.30, F.S.; prohibiting the
1135 aiding or abetting of unlicensed activity of a bail
1136 bond agent or temporary bail bond agent; amending ss.
1137 717.124, 717.12404, 717.1315, and 717.1322, F.S.;
1138 conforming provisions to changes made by the act;
1139 amending s. 717.135, F.S.; replacing provisions
1140 relating to powers of attorney to recover unclaimed
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COMMITTEE/SUBCOMMITTEE AMENDMENT
Bill No. CS/HB 1137 (2020)
Amendment No. 1.

1141 property with provisions relating to uniform forms for
1142 unclaimed property recovery agreements and purchase
1143 agreements; requiring the department to adopt the
1144 uniform forms by rule; specifying required information
1145 and disclosures in the forms; requiring that, for the
1146 purchase agreement form, proof the seller received
1147 payment be filed with the department along with the
1148 claim; requiring registered claimant's representatives
1149 to use the forms as the exclusive means of engaging
1150 with a claimant or seller to file claims and
1151 prohibiting them from using or distributing other
1152 agreements; specifying a limitation on fees and costs
1153 owed or paid; authorizing additional maximum total
1154 dollar fee and cost amounts for probated estate
1155 claimants; prohibiting certain language in the forms;
1156 authorizing the department to pay additional accounts
1157 owned by the claimant under certain circumstances;
1158 providing construction; repealing s. 717.1351, F.S.,
1159 relating to the acquisition of unclaimed property;
1160 providing effective dates.

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COMMITTEE/SUBCOMMITTEE AMENDMENT
Bill No. CS/HB 1137 (2020)
Amendment No. aal

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 Jenne offered the following:
3

4 .Amendment to .Amendment (738959) by Representative Clemons
5 (with title amendment)
6 Remove lines 167-215 of the amendment and insert:
7 Section 11. Subsection (6) of section 626.854, Florida
8 Statutes, is amended to read:
9 626.854 "Public adjuster" defined; prohibitions.-The
10 Legislature finds that it is necessary for the protection of the
11 public to regulate public insurance adjusters and to prevent the
12 unauthorized practice of law.
13 (6)~ An insured or claimant may cancel a public
14 adjuster's contract to adjust a claim without penalty or
15 obligation within 5 calendar 3 business days after the date on
16 which the contract is executed or within 3 business days after
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Page 1 of 3
COMMITTEE/SUBCOMMITTEE AMENDMENT
Bill No. CS/HB 1137 (2020)
Amendment No. aal

17 the date on which the insured or claimant has notified the
18 insurer of the claim, whichever is later. The public adjuster's
19 contract must disclose to the insured or claimant his or her
20 right to cancel the contract and advise the insured or claimant
21 that notice of cancellation must be submitted in writing and
22 sent by certified mail, return receipt requested, or other form
23 of mailing that provides proof thereof, to the public adjuster
24 at the address specified in the contract; provided, during any
25 state of emergency as declared by the Governor and for 1 year
26 after the date of loss, the insured or claimant has 5 business
27 days after the date on which the contract is executed to cancel
28 a public adjuster's contract.
29 (b) During a state of emergency declared by the Governor
30 or during the 1-year period after the date of loss associated
31 with a state of emergency declared by the Governor, an insured
32 or claimant may cancel a public adjuster's contract to adjust a
33 claim pursuant to the following:
34 1. An insured or claimant may cancel a public adjuster's
35 contract without penalty or obligation for any reason whatsoever
36 for 7 calendar days after the date on which the contract is
37 executed.
38 2. If a public adjuster has failed to submit to the
39 insurance company or the authorized representative of the
40 insurance company a documented initial claim submission within
41 45 days after the date of the execution of the contract between

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COMMITTEE/SUBCOMMITTEE AMENDMENT
Bill No. CS/HB 1137 (2020)
Amendment No. aal

42 the public adjuster and the insured or claimant, the insured or
43 claimant may cancel the contract without penalty or obligation,
44 unless the failure to submit such initial claim submission is
45 caused by factors beyond the control of the public adjuster
46 which reasonably prevented the submission of such claim. A
47 documented initial claim submission for dwelling damage must
48 include a detailed written estimate of services, including,
49 itemized information on equipment, materials, and supplies, in
50 accordance with accepted industry standards.
51 3. If a public adjuster submits a documented initial claim
52 to the insurance company or the authorized representative of the
53 insurance company after the 45 day period specified in
54 subparagraph 2. but before the rescission of the contract by the
55 insured or claimant, the failure to submit the documented
56 initial claim shall be deemed to be cured, and the right to
57 rescind such contract without penalty or obligation shall end.
58
59
60 T I T L E A ME N D ME N T
61 Remove line 1085 of the amendment and insert:
62 contract without penalty or obligation; specifying
63 requirements for such cancellation during a state of
64 emergency declared by the Governor; amending s.

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Page 3 of 3
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HOUSE OF REPRESENTATIVES STAFF ANALYSIS
BILL #: CS/HB 1169 Specialty Contracting
SPONSOR(S): Business & Professions Subcommittee, McClure
TIED BILLS: IDEN./SIM. BILLS: SB 1102

REFERENCE ACTION ANALYST STAFF DIRECTOR or
BUDGET/POLICY CHIEF

1) Business & Professions Subcommittee 11 Y, 1 N, As CS Brackett Anstead

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

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

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

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

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

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

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

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

This document does not reflect the intent or official position of the bill sponsor or House of Representatives.
STORAGE NAME: h1169b.COM.DOCX
DATE: 2/1 0/2020
FULL ANALYSIS

I. SUBSTANTIVE ANALYSIS

A. EFFECT OF PROPOSED CHANGES:
Current Situation

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

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

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

"Registered contractors" are individuals that have taken and passed a local competency examination
and can practice the specific category of contracting for which he or she is approved, only in the local
jurisdiction for which the license is issued. Registered contractors must register their license with the
CILB after obtaining a local license. 3

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

Swimming Pool/Spa Contractors

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

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

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

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

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

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

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

7 S. 489.105(3)(k), F.S.
8 S. 489.105(3)(1), F.S.

s S. 489.105, F.S.
10 Ss. 489.103(6), & 489.105, F.S.; DBPR, Trust but Verify,

http://www.myfloridalicense.com/dbpr/reg/documents/trustbutverify OOO.pdf?x40199 (last visited Jan. 29, 2020).
11 S. 489.113(3), F.S.
12 Ss. 489.111, &489.113, F.S.
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Pool/Spa Specialty Contractors

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

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

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

In order to obtain one of the certified specialty pool/spa contractor a person must: 16
• Submit a written application to the GILB;
• Be at least 18 years of age;
• Be of good moral character;
• Pass a written examination for the specialty pool/spa contractor category sought; and
• Demonstrate four years of experience in the specialty pool/spa contractor category sought, or
one year of experience and 60 hours of instruction courses approved by the GILB; however,
the one year of experience only applies to residential swimming pool/spa servicing contractors.

13 S. 489.105(3)(q), F.S.
14 Rule 61G4-15.032, F.A.C.; Rule 61G4-15.040, F.A.C.
15 /d.
16 Rule 61G4-15.032, F.A.C.
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Exemptions

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

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

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

Effect of the Bill

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

The bill does not require a direct contract between the commercial or residential pool/spa contractor or
swimming pool/spa servicing contractor and the unlicensed person performing the specialty contracting
services, or require the unlicensed person to be an employee of the supervising pool/spa contractor.

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

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.

17
S. 489.113(2), F.S.; Florida Home Builders Association v. St. Johns County, 914 So. 2d 1035 (Fla. 5th DCA 2005).
18 "Townhouses" was added to the exemption in 2003. Ch. 03-257, Laws of Fla.
19 Ch. 93-154, Laws of Fla.; S. 489.117, F.S.; Florida Home Builders Association 914 So. 2d at 1037.
20 Id.
21 Florida Home Builders Association 914 So. 2d at 1035.
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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 have a positive impact on the private sector by allowing persons, who are under the
supervision of licensed pool/spa contractors, to perform work on pools, spas, hot tubs, and interactive
water features without having to obtain a license.

D. FISCAL COMMENTS:
None.

Ill. COMMENTS

A. CONSTITUTIONAL ISSUES:

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

2. Other:
None.

8. RULE-MAKING AUTHORITY:
None.

C. DRAFTING ISSUES OR OTHER COMMENTS:
None.

IV. AMENDMENTS/ COMMITTEE SUBSTITUTE CHANGES
On February 4, 2020, the Business & Professions Subcommittee adopted a strike-all amendment and
reported the bill favorably as a committee substitute. The committee substitute:
• Provides that the supervising pool/spa contractor must be responsible for the work performed by
the unlicensed person;
• Clarifies that the unlicensed person may not be performing any work that requires an electrical
contractor's license;
• Clarifies that the unlicensed person does not have to be an employee of the supervising pool/spa
contractor;
• Clarifies that the bill does not limit any other exemptions to construction contractor licensure
requirements in current law such as the handyman exemption; and
• Removes the term "interactive water feature" since this term is not used anywhere in the
construction contractor practice act.

STORAGE NAME: h1169b.COM.D0CX PAGE: 6
DATE: 2/10/2020
The staff analysis is drafted to the committee substitute as passed by the Business & Professions
Subcommittee.

STORAGE NAME: h1169b.COM.D0CX PAGE: 7
DATE: 2/10/2020
FLORIDA H O U S E 0 F REPRESENTATIVES

CS/HB 1169 2020

1 A bill to be entitled
2 An act relating to specialty contracting; amending s.
3 489.117, F.S.; authorizing the performance of certain
4 specialty contracting for commercial and residential
5 swimming pools, hot tubs, and spas by certain persons
6 under the supervision of specified licensed
7 contractors; providing that such supervision does not
8 require a direct contract between specified persons or
9 for a person to be an employee of a specified
10 contractor; providing applicability; providing an
11 effective date.
12
13 Be It Enacted by the Legislature of the State of Florida:
14
15 Section 1. Paragraph (e) is added to subsection (4) of
16 section 489.117, Florida Statutes, to read:
17 489.117 Registration; specialty contractors.-
18 ( 4)

19 (e) A person who is not certified or registered may
20 perform the work of a specialty contractor whose scope of
21 practice is limited to the type of work specified under s.
22 489.105(3) (j)-(1) for the construction, remodeling, repair, or
23 improvement of commercial and residential swimming pools, hot
24 tubs, and spas without obtaining a local license or
25 certification as a specialty contractor, provided the person is

Page 1 of 2

CODING: Words stricken are deletions; words underlined are additions.
hb1169-01-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 1169 2020

26 supervised by a contractor certified or registered under s.
27 489.105(3) (j)-(1), the work is within the scope of the
28 supervising contractor's license, the supervising contractor is
29 responsible for the work, and the work does not require
30 certification or registration under s. 48 9. 105 ( 3) ( d) - ( i) , (m) -
31 (o), ors. 489.505. Such supervision does not require a direct
32 contract between the contractor certified or registered under s.
33 489.105(3) (j)-(1) and the person performing the work, or for the
34 person performing the work to be an employee of the contractor
35 certified or registered under s. 489.105(3) (j)-(1). This
36 subsection does not limit the exemptions provided ins. 489.103.
37 Section 2. This act shall take effect July 1, 2020.

Page 2 of 2

CODING: Words stricken are deletions; words underlined are additions.
hb1169-01-c1
0
-
CJ)
:::c
OJ
HOUSE OF REPRESENTATIVES STAFF ANALYSIS
BILL #: CS/HB 1275 Amusement Rides
SPONSOR($): Agriculture & Natural Resources Appropriations Subcommittee, Pritchett
TIED BILLS: IDEN./SIM. BILLS: SB 1228

REFERENCE ACTION ANALYST STAFF DIRECTOR or
BUDGET/POLICY CHIEF

1) Business & Professions Subcommittee 11 Y, 0 N Thompson Anstead

2) Agriculture & Natural Resources Appropriations 8 Y, 0 N, As CS White Pigott
Subcommittee

3) Commerce Committee

SUMMARY ANALYSIS
The Department of Agriculture and Consumer Services (DACS) is required to inspect all amusement rides in
Florida, except those at large parks with more than 1,000 employees and inspectors on staff. All temporary
amusement rides are inspected each time they are moved or set up at a new location, and permanent rides
are inspected semiannually. All amusement rides are required to be permitted annually, required to undergo
nondestructive testing for structural integrity, and must have an annual inspection by a professional engineer or
qualified inspector. DACS can investigate accidents, impose sanctions for violations, and close and impound
amusement rides that are a danger to the public.

The bill:
• Includes amusement ride managers as a responsible party for ensuring compliance with state
regulations;
• Exempts permanent rides from DACS inspection when inspected by an accredited trade organization;
• Separates the permitting process for permanent and temporary amusement rides, and streamlines the
application process;
• Authorizes DACS to revise the 6-month inspection interval at permanent facilities;
• Requires ride documents to be submitted to DACS in electronic format;
• Broadens DACS rulemaking authority related to establishing certain exemptions;
• Removes an exemption for museums and other exhibition related institutions;
• Conforms state standards for testing, materials, electric, and fire protection to national standards;
• Requires signage containing DACS contact information to be displayed at ride events;
• Requires certification to DACS before a modified ride is placed back in operation;
• Grants subpoena powers to DACS;
• Criminalizes the refusal or failure to testify pursuant to a DACS subpoena;
• Increases the limit for administrative fines from "not to exceed $2,500" to "not to exceed $10,000" per
violation; and
• Allows DACS to impose an additional $10,000 fine for violations resulting in serious injury or death.

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

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

This document does not reflect the intent or official position of the bill sponsor or House of Representatives.
STORAGE NAME: h1275d.C0M.D0CX
DATE: 2/9/2020
FULL ANALYSIS

I. SUBSTANTIVE ANALYSIS

A. EFFECT OF PROPOSED CHANGES:
Background

The Department of Agriculture and Consumer Services (DACS) is required to inspect all amusement
rides in Florida, except those at large parks with more than 1,000 employees and an inspector on staff.
The Bureau of Fair Rides Inspection within DACS is required to inspect, investigate, and enforce the
regulations related to amusement rides. 1

Amusement rides regulated in the state of Florida fall into two categories:
• Temporary rides are those that are regularly relocated with or without assembly; and
• Permanent rides are those that are not regularly relocated. 2

All temporary amusement rides are inspected each time they are moved or set up at a new location,
and permanent rides are inspected semiannually. All amusement rides are required to be permitted
annually, required to undergo nondestructive testing for structural integrity, and must have an annual
inspection by a professional engineer or qualified inspector. 3

DACS also inspects go-kart tracks, water-related amusement rides and zipline courses operating in the
state. 4

In addition, DACS investigates accidents involving amusement rides and has the authority to impose
sanctions on amusement ride owners for violation of the law. DACS can close and impound
amusement rides that pose an immediate serious danger to public health, safety and welfare. 5

Adoption of Standards

DACS is required to adopt by rule standards for amusement rides which are the same as or similar to
the following national standards:
• American Society for Testing and Materials (ASTM) Committee F-24 Standards on Amusement
Rides and Devices.
• National Electric Code Handbook, Article 525.
• National Fire Protection Code 101 (chapters 8-4.6 and 9-4.6).
• ASTM Standards: E543 Practice for Determining the Qualification of Nondestructive Testing
Agencies.
• American Society for Nondestructive Testing (ASNT) Document Recommended Practice for
Nondestructive Testing Personnel Qualification and Certification (SNT-TC-1A}. 6

DACS is authorized to adopt rules necessary to effectuate its statutory duties in the interest of public
health, safety, and welfare and to promote patron safety in the design, construction, assembly,
disassembly, maintenance, and operation of amusement rides in this state. 7

1
S. 616.242, F.S.
z Id.
3
Florida Department of Agriculture and Consumer Services, Fair Rids Inspection, https://www.fdacs.gov/Business-
Services/Fairs/Fair-Rides-Inspection (last visited Jan. 22, 2020).
4 Id.

s Id.
6
S. 616.242(4), F.S.
7 Id.

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DATE: 2/9/2020
There are no mandatory national safety standards for U.S. amusement rides, but the amusement ride
industry has developed safety standards through the ASTM F-24 committee. The ASTM F-24
committee is responsible for standards related to amusement rides and devices. This includes
waterslides, inflatables, go-karts, ziplines and challenge courses, trampoline courts, and a growing list
of commercially-operated amusement experiences. 8

According to DACS:
• The organization formerly known as American Society for Testing and Materials changed their
name to ASTM International and the standard was incorrectly notated in statute as F-24. The
proper notation is F24.
• Multiple National Electric Code Handbook Articles have requirements that pertain to amusement
rides in addition to Article 525.
• There are fire codes located in other National Fire Protection Association documents that cover
current amusement rides.
• ASTM E543 and ASNT SNT-TC-1a are not standards for amusements rides as indicated in the
statute. These standards are qualifications for the qualification of personnel and agencies
performing non-destructive testing. 9

Annual Permits

Amusement rides may not operate without an annual permit. To apply, an owner must submit to DACS
a written application on a form prescribed by DACS rule, and include:
• The legal name, address, and primary place of business of the owner.
• A description, manufacturer's name, serial number, model number and, if previously assigned,
the United States Amusement Identification Number of the amusement ride.
• A valid certificate of insurance for each amusement ride.
• An affidavit of compliance (AOC) that the amusement ride was inspected and in general
conformance with the law and applicable rules.
o The AOC must be executed by a professional engineer or a qualified inspector no earlier
than 60 days before, but not later than, the date of filing of the application with DACS.
o The owner is required to request inspection and permitting of the amusement ride within
60 days of the date of filing the application with DACS.
o DACS is required to inspect and permit the amusement ride within 60 days after the
filing of the application with DACS.
• If required, an affidavit of nondestructive testing dated and executed no earlier than 60 days
before, but not later than, the date of the filing of the application with DACS.
o The owner is required to request inspection and permitting of the amusement ride within
60 days of the date of filing the application with DACS.
o DACS is required to inspect and permit the amusement ride within 60 days after the
filing of the application with DACS.
• A request for inspection. 10

Upon request, the owner must, at no cost to DACS, provide DACS with a copy of the manufacturer's
current recommended operating instructions in the possession of the owner, the owner's operating fact
sheet, and any written bulletins in the possession of the owner concerning the safety, operation, or
maintenance of the amusement ride. 11

8
ASTM International, Committee F24 on Amusement Rides and Devices, https://www.astm.org/COMM1TTEE/F24.htm (last visited
Jan. 23, 2020).
9 Email from Richard Kimsey, Assistant Director, Division of Consumer Services, Department of Agriculture and

Consumer Services, RE: Amusement Ride Standards Acronyms (Jan. 30, 2020).
10
S. 616.242(5), F.S.
II Id.
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An annual permit must be issued to the owner when a completed application has been received, the
amusement ride has passed DACS inspection, and all applicable fees, as set by DACS rule, 12 have
been paid. 13

The annual permit:
• Is valid for 1 year from the date of issuance;
• Is not transferable; and
• Must be displayed on the amusement ride in a place that is visible to patrons. 14

According to DACS, as of fiscal year 2018-2019, it had issued approximately 1,700 permits. 15

Nondestructive Testing

In order to operate an amusement ride the owner must at all times have a current affidavit of
nondestructive testing from a professional engineer or qualified inspector. The affidavit provides that
the amusement ride has undergone nondestructive testing for metal fatigue at least annually. 16
Nondestructive testings must be performed by a technician who meets the national standards for
amusement rides provided in DACS rule. 17

Nondestructive testing for metal fatigue must include visual and nonvisual testing, and can be
conducted more often than annually, if required by any rule adopted under this section, the
manufacturer of the amusement ride, or the professional engineer or qualified inspector executing the
affidavit of nondestructive testing. 18

An affidavit of nondestructive testing must provide:
• That the amusement ride was inspected in person by the affiant.
• That all nondestructive testing requirements are current.
• That the nondestructive testing was performed by a qualified nondestructive testing technician.
• The components of the amusement ride for which the manufacturer has recommended or
required nondestructive testing.
• The type of nondestructive testing required or recommended by the manufacturer.
• The frequency of the nondestructive testing required or recommended by the manufacturer.
• The components of the amusement ride for which the affiant has recommended or required
nondestructive testing.
• The type of nondestructive testing required or recommended by the affiant.
• The frequency of the nondestructive testing as required or recommended by the affiant.
• That visual nondestructive testing is adequate for the amusement ride to be in general
conformance with the requirements of this section, and all applicable rules, if only visual
nondestructive testing is required or recommended by either the manufacturer or the affiant. 19

Nondestructive testing is not required for:
• Fun houses;
• Houses of mirrors;
• Haunted houses;
• Mazes;
• Wave pools;

12
R. 51-18.012, F.A.C.
13
S. 616.242(5), F.S.
14 Id.
15
Email from Richard Kimsey, Assistant Director, Division of Consumer Services, Department of Agriculture and Consumer
Services, Re: Amusement Rides Permitting and Inspection Process (Jan. 24, 2020).
16
S. 616.242(6), F.S.
11 Id.
1s Id.
19 Id.
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• Wave-making devices;
• Kiddie pools;
• Slides that are fully supported by an earthen mound;
• Nonmotorized playground equipment that requires a manager; or
• Lazy-river-type nonmotorized floating carriers propelled by water. 20

Inspections

In order to obtain an annual permit, amusement rides must be inspected by DACS and receive an
inspection certificate. In addition, the following requirements must be met:
• Permanent amusement rides must be inspected semiannually and receive an inspection
certificate; and
• Temporary amusement rides must be inspected and receive an inspection certificate each time
the ride is set up or moved to a new location in this state unless the ride is:
o Used at a private event;
o A simulator, the capacity of which does not exceed 16 persons; or
o A kiddie ride used at a public event, provided that there are no more than three amusement
rides at the event, none of the kiddie rides at the event exceeds a capacity of 12 persons,
and the ride has an inspection certificate that was issued within the preceding 6 months. 21

To obtain a DACS inspection, the owner must submit a written request to DACS, on a DACS
prescribed form, and provide the following information:
• The legal name, address, and primary place of business of the owner.
• A description, manufacturer's name, serial number, model number, and the United States
Amusement Identification Number, if previously assigned, of the amusement ride.
• For a temporary amusement ride, for each time the amusement ride is set up or moved to a
new location, the date of first intended use at the new location and the address or a description
of the new location. 22

For permanent amusement rides, a request for inspection must be received by DACS at least 15 days
before the:
• Owner's planned opening date; or
• Expiration of the prior inspection certificate. 23

For temporary amusement rides, the request for inspection must be received by DACS each time the
amusement ride is set up or moved to a new location at least 14 days before the date of first intended
use at the new location. 24

In both cases, if the request for inspection is received late, DACS is authorized to inspect the
amusement ride and charge a late fee. In addition, if the owner fails to timely cancel a Request for
Inspection, requests holiday or weekend inspections, or is required to have a replacement United
States Amusement ID Program (USAID) plate issued by DACS, the owner may be charged an
appropriate fee. 25

Inspections are assigned on a first come, first served basis, and overflow requests will be scheduled on
the closest date to the date for which the inspection was requested. Upon failure of an amusement ride
to pass an inspection, the owner may request in writing a reinspection. DACS is required to reinspect
the ride as soon as practical following receipt of the:

20 Id.
21
S. 616.242(7), F.S.
22 Id.
23 Id.
24 Id.
2s Id.
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DATE: 2/9/2020
• Written request; and
• Applicable re inspection fees. 26

Upon passage of inspection and payment of the applicable fee, DACS must issue an inspection
certificate containing the following information:
• Date of inspection;
• Site of the inspection; and
• Name of the inspector. 27

Inspection certificates are valid only for the site stated on the certificate, for a period of not more than 6
months from the date of issuance, are not transferable, and must be displayed on the amusement ride
at a place readily visible to patrons. 28

According to DACS, during fiscal year 2018-2019, it inspected 8,689 amusement rides, and identified
19,249 deficiencies. 29

Fees

DACS is required by rule to establish fees to cover the costs and expenditures associated with the fair
rides inspection program, including all direct and indirect costs. If there is not sufficient general revenue
appropriated by the Legislature, the industry is required to pay for the remaining cost of the program. 30

Fees must be deposited in the General Inspection Trust Fund. Any owner of an amusement ride who
has not paid all the fees required under this section or who has any unpaid fine outstanding under this
section are prohibited from operating any amusement ride in this state until the fees and fines have
been paid to DACS. 31

DACS has adopted the following fees: 32

Annual permit for anv amusement ride $500.00
Annual permit for any bunav jump $500.00
Inspection fee for each inspection of a kiddie amusement ride $45.00
Inspection fee for each inspection of a non-kiddie amusement ride $90.00
Inspection fee for each inspection of a super amusement ride $175.00
Inspection fee per go kart, in addition to the track inspection fee $10.00
Reinspection fee (return to site) $500.00
Reinspection fee (return on-site) $100.00
Fee to replace a lost U.S. Amusement Identification (USAID) plate $100.00
Fee per amusement ride for late inspection request $100.00
Fee per amusement ride for failure to cancel inspection request $100.00
Additional fee per amusement ride for inspection on weekend or state holiday $75.00

Insurance

In order to obtain a permit to operate an amusement ride in Florida, the ride owner must obtain injury
liability insurance in the following amounts:

26 Id.
21 Id.
2s Id.
29
The Florida Department of Agriculture and Consumer Services, Bureau of Fair Rides Inspection Statistical Data,
Inspection/Deficiency Statistics.
30
S. 616.242(8), F.S.
31 Id.
32
R. 51-18.012, F.A.C.
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DATE: 2/9/2020
• One million dollars minimum per occurrence; and
• One million dollars in the aggregate. 33

The policies must be procured from an insurer that is:
• Licensed to transact business in this state; or
• Approved as a surplus lines insurer. 34

The insurance requirements do not apply to a governmental entity that is covered by the provisions of
s. 768.28(16), F.S., which authorizes the state and its agencies and subdivisions to be:
• Self-insured,
• Enter into risk management programs,
• Purchase liability insurance for whatever coverage they may choose, or
• Have any combination thereof. 35

Exemptions

The regulations related to amusement rides do not apply to the following:
• Permanent facilities that employ at least 1,000 full-time employees and that maintain full-time,
in-house safety inspectors;
• Any playground operated by a school, local government, or business licensed under chapter
509, F.S., if the playground is an incidental amenity and the operating entity is not primarily
engaged in providing amusement, pleasure, thrills, or excitement;
• Museums or other institutions principally devoted to the exhibition of products of agriculture,
industry, education, science, religion, or the arts;
• Conventions or trade shows for the sale or exhibit of amusement rides if there are a minimum of
15 amusement rides on display or exhibition, and if any operation of such amusement rides is
limited to the registered attendees of the convention or trade show;
• Skating rinks, arcades, laser or paint ball war games, bowling alleys, miniature golf courses,
mechanical bulls, inflatable rides, trampolines, ball crawls, exercise equipment, jet skis, paddle
boats, airboats, helicopters, airplanes, parasails, hot air or helium balloons whether tethered or
untethered, theatres, batting cages, stationary spring-mounted fixtures, rider-propelled merry-
go-rounds, games, side shows, live animal rides, or live animal shows;
• Go-karts operated in competitive sporting events if participation is not open to the public;
• Nonmotorized playground equipment that is not required to have a manager;
• Coin-actuated amusement rides designed to be operated by depositing coins, tokens, credit
cards, debit cards, bills, or other cash money and which are not required to have a manager,
and which have a capacity of six persons or less;
• Motorsports facilities described in s. 549.09(1 )(a), F.S., when such facilities are operating cars,
trucks, or motorcycles only;
• Battery-powered cars or other vehicles that are designed to be operated by children seven
years of age or under and that cannot exceed a speed of four miles per hour;
• Mechanically driven vehicles that pull train cars, carts, wagons, or other similar vehicles, that
are not confined to a metal track or confined to an area but are steered by an operator and do
not exceed a speed of 4 miles per hour;
• Water-related amusement rides operated by a business licensed under chapter 509, F.S., if the
water-related amusement ride is an incidental amenity and the operating business is not
primarily engaged in providing amusement, pleasure, thrills, or excitement and does not offer
day rates;

33
S. 616.242(8), F.S.
34 Id
35 Id
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• Amusement rides at a private, membership-only facility if the amusement ride is an incidental
amenity and the facility is not open to the general public; is not primarily engaged in providing
amusement, pleasure, thrills, or excitement; and does not offer day rates; and
• Nonprofit permanent facilities registered under chapter 496, F.S., which are not open to the
general public. 36

DACS is authorized to establish by rule exemptions from the regulations on amusement rides for
"nonmotorized or human-powered amusement rides or coin-actuated amusement rides." 37

Inspection Standards

Amusement rides are required to adhere to the following inspection standards:
• All mechanical, structural, and electrical components that affect patron safety must be in good
working order.
• All control devices, speed-limiting devices, brakes, and safety equipment designated by the
manufacturer must be in good working order.
• Parts must be properly aligned, and not be bent, distorted, cut, or otherwise injured to force a fit.
• Parts requiring lubrication must be lubricated in the course of assembly. Fastening and locking
devices must be installed where required for safe operation.
• Before being used by the public, an amusement ride must be placed or secured with blocking,
cribbing, outriggers, guys, or other means so as to be stable under all operating conditions.
• Areas in which patrons may be endangered by the operation of an amusement ride must be
fenced, barricaded, or otherwise effectively guarded against inadvertent contact.
• Machinery used in or with an amusement ride must be enclosed, barricaded, or otherwise
effectively guarded against inadvertent contact.
• An amusement ride powered so as to be capable of exceeding its maximum safe operating
speed must be provided with a maximum-speed-limiting device.
• The interior and exterior parts of all patron-carrying amusement rides with which a patron may
come in contact must be smooth and rounded and free from sharp, rough, or splintered edges
and corners, with no projecting studs, bolts, screws, or other projections which might cause
injury.
• Signs that advise or warn patrons of age restrictions, size restrictions, health restrictions, weight
limitations, or any other special consideration or use restrictions required or recommended for
the amusement ride by the manufacturer must be prominently displayed at the patron entrance
of each amusement ride.
• All amusement rides must comply with the section of law governing amusement rides and
related rules. 38

Major Modifications

After an amusement ride has undergone a major modification, and prior to the time it is placed in
operation, a Florida Licensed professional engineer must certify that the amusement ride is in
compliance with the entire section of law governing amusement ride safety, and all related rules. 39

Entry for Inspections

Authorized DACS employees may enter unannounced and inspect amusement rides at any time in a
reasonable manner. Such employees are authorized to:
• Question any owner or manager;

36
S. 616.242(10), F.S.
37 Id.
38
S. 616.242(11), F.S.
39
S. 616.242(12), F.S.
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• Inspect, investigate, photograph, and sample all pertinent places, areas, and devices; and
• Conduct all appropriate tests including nondestructive testing. 40

DACS is authorized to impose fees for unannounced inspections and recover the cost of related tests. 41

Reporting and Investigating Accidents and Defects

Accidents that the owner or manager have knowledge or, through the exercise of reasonable diligence
should have knowledge, and for which a patron is transported to a hospital, as defined in chapter 395,
F.S., must be reported by the owner or manager to DACS. Such reporting must be conducted by
telephone within four hours after the accident, and followed up by a written report to DACS within 24
hours after the accident.

Any mechanical, structural, or electrical defects affecting patron safety for which an amusement ride is
closed to patron use for more than four hours must be reported by the owner or manager to DACS by
telephone or facsimile within eight hours after the closing of the ride. A written report of the closing
must be filed by the owner or manager with DACS within 24 hours after the ride closes.

In addition, DACS is authorized to impound amusement rides that have:
• Been involved in an accident for which a patron is transported to a hospital as defined in
chapter 395, F.S.;
• A mechanical, structural, or electrical defect affecting patron safety.

In cases of impoundment, DACS is authorized to impound any other amusement ride of a similar make
and model, and perform all necessary tests to determine the cause of the accident, defect, or safety of
the ride and any other ride of a similar make and model. The ride owners are responsible for the cost of
impoundment and relating testing. 42

According to DACS, in fiscal year 2018-2019, there were 191 amusement ride accidents reported. 43

Owner/Manager Inspections

Prior to opening each day of operation, and before any inspection by DACS, the owner or manager of
an amusement ride is required to inspect and test the ride to ensure compliance with all requirements
of the law governing amusement rides. Each inspection must be recorded on a form prescribed by
DACS rule and signed by the person who conducted the inspection. 44

In lieu of using the DACS form, an owner or manager may request approval of an alternative form,
which must include at least the information required on the DACS form. Inspection records of the last
14 daily inspections must be:
• Kept on site by the owner or manager; and
• Made immediately available to DACS upon request. 45

40
S. 616.242(13), F.S.
41 Id.
42
S. 616.242(14), F.S.
43
The Florida Department of Agriculture and Consumer Services, Bureau of Fair Rides Inspection Statistical Data,
Inspection/Deficiency Statistics.
44
S. 616.242(15), F.S.
45 Id.
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Employee Training

Owners or managers of amusement rides are required to:
• Maintain a record of employee training for each employee who is authorized to operate,
assemble, disassemble, transport, or conduct maintenance on an amusement ride; and
• Certify that each employee is trained on the amusement ride for which the employee is
responsible. 46

The training record must be kept on site by the owner or manager and made immediately available to
DACS upon request. In lieu of using the DACS form, the owner or manager may request approval of an
alternative form. 47

Training is prohibited when an amusement ride is open to the public, unless the training is conducted
under the supervision of an employee who is trained in the operation of that ride. 48

Enforcement and Penalties

DACS has the authority to deny, suspend for up to one year, or revoke, any permit or inspection
certificate. In addition, DACS may impose an administrative fine pursuant to s. 570.971, F.S., not to
exceed $2,500 per violation, for each day the violation exists, against the owner of the amusement ride
if DACS finds that:
• An amusement ride has operated or is operating:
o With a mechanical, structural, or electrical defect that affects patron safety, of which the
owner or manager has knowledge, or, through the exercise of reasonable diligence,
should have knowledge;
o In a manner or circumstance that presents a risk of serious injury to patrons;
o At a speed in excess of its maximum safe operating speed;
o In violation of DACS rules or state law; or
o In violation of an order of DACS or any court; or
• A manager in the course of his or her duties is under the influence of drugs or alcohol. 49

DACS is required, in its order suspending a permit or inspection certificate, to specify the period during
which the suspension is effective, which may not exceed 1 year. The permit or inspection certificate
must remain suspended during the period, subject to any rescission or modification of the order by
DACS, or modification or reversal by the court, prior to expiration of the suspension period. 50

The owner of an amusement ride, whose permit or inspection certificate has been revoked by DACS,
may not apply for another permit or inspection certificate for the amusement ride within 2 years after
the date of the revocation. If judicial review is sought and a stay of the revocation is obtained, the
owner may not apply for another permit or inspection certificate within two years after the final order of
the court sustaining the revocation. 51

During the period of suspension or revocation, the owner may not engage in or attempt to engage in
any operation of the amusement ride for which a permit or inspection certificate is required. 52

When a DACS imposed suspension period has expired, the owner may reapply for a new permit or
inspection certificate by submitting a complete application to DACS. 53

46
S. 616.242(16), F.S.
47 Id
48 Id
49
S. 616.242(19), F.S.
50 Id
51 Id.
52 Id.
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In addition, and notwithstanding the existence of any adequate remedy at law, DACS is authorized to
bring an action to enjoin the violation of any provision, or rules adopted, under this section, in the circuit
court of the county in which the violation occurs or is about to occur. Upon competent and substantial
evidence presented by DACS, the court is required to immediately issue the temporary or permanent
injunction sought by DACS without bond. 54

In addition to the penalties, DACS is authorized to issue a letter of warning to the owner of the ride
specifying the violation and requiring immediate corrective action. 55

Any person who knowingly violates any of the provisions of the regulations governing amusement rides
commits a misdemeanor of the second degree, punishable as provided in s. 775.082 ors. 775.083,
F.S.56

According to DACS, during fiscal year 2018-2019, it issued 169 stop operation orders, and 801 out-of-
service tags. 57

Consumer Product Safety Commission

The Consumer Product Safety Commission (Commission) is charged with protecting the public from
unreasonable risks of injury or death associated with the use of the thousands of types of consumer
products under the agency's jurisdiction. The Consumer Product Safety Act (Act) 58 authorizes the
Commission to investigate serious accidents involving portable carnival rides, inflatables, and go-karts.
Amusement rides operated at permanent parks ("permanently fixed to a site") are exempt from
compliance with the Act. 59

Ride manufacturers or owner/operators are required to notify the Commission if they obtain information
which reasonably supports the conclusion that a portable amusement ride, inflatable device, go-kart or
other non-exempt amusement device:
• Fails to comply with a consumer product safety standard or banning regulation established by
the omission or a voluntary consumer product safety standard upon which the Commission has
relied under section 9 of the Act;
• Contains a defect which could create a substantial product hazard described in section 15(a)(2)
of the Act; or
• Creates an unreasonable risk of serious injury or death. 60

The Commission does not provide for an inspection program.

Other States

According to a consumer safety organization, Safeparks.org, the research of amusement ride laws in
50 states found the following: 61

53 Id.
54 Id.
55 Id.
56 Id.
57
The Florida Department of Agriculture and Consumer Services, Bureau of Fair Rides Inspection Statistical Data,
Inspection/Deficiency Statistics.
58
15 U.S.C. ch. 47 § 2051 et seq.
59
Safeparks, United States Consumer Product Safety Commission, https://saferparks.org/agency/united-states-consumer-product-
safety-commission (last visited Jan. 22, 2020).
60 Id.
61
Safeparks, US. Federal and State Amusement Ride Regulation, https://saferparks.org/regulation/agencies (last visited Jan. 22,
2020).
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20 states
12 states
9 states
8 states
1 state

Proposed Changes

The bill makes several changes to the framework of regulations that govern the safety standards for
amusement rides in the state.

Managers

The bill includes amusement ride "managers" as a responsible party for ensuring compliance with state
law governing safety standards for amusement rides.

Inspection and Permitting Process

The bill streamlines the permitting application and issuance process, removes the requirement for an
inspection certificate, and sets deadlines for inspections by DACS prior to the issuance of a permit for
operation. Additionally, the bill adds an exemption from DACS inspection for permanent rides that
prove they were inspected and certified by an accredited trade organization.

The bill separates the permitting process for permanent amusement rides from temporary amusement
rides, and distinguishes the two by:
• Establishing that a permanent ride permit is valid for 1 year, and a temporary ride permit is valid
for 6 months, or until the temporary ride is moved; and
• Requiring permanent ride and temporary ride applications for permit to be submitted 15 and 14
days prior to their opening dates, respectively.

The bill defines an "amusement ride event" as an event where an amusement ride is operated at a
specific location and date as listed on an annual permit application or on a temporary amusement ride
permit application.

The bill defines a "temporary amusement ride permit" as the United States Amusement Identification
Number and the decal issued by DACS, which signify that the temporary amusement ride has been
permitted by DACS.

In order to align inspection dates at permanent facilities, the bill authorizes DACS to shorten or extend
the 6-month inspection interval. Fees for rides with shortened inspection intervals must be prorated,
and extensions of inspection intervals may not exceed two months.

The bill requires a ride's operating instructions, fact sheet, and any bulletins concerning the ride to be
submitted to DACS in electronic format as part of the permitting process.

Fees

The bill clarifies DACS authority to establish by rule fees to cover the costs and expenditures
associated with the fair rides inspection program, and the requirement that the industry pay the
remaining cost of the program if there is not sufficient general revenue appropriated by the Legislature.

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Exemptions

The bill broadens DACS's rulemaking authority to establish exemptions for types of rides from the
amusement ride regulations by deleting the restriction that such exemptions only apply to nonmotorized
or human-powered amusement rides or coin-actuated amusement rides.

The bill removes a blanket exemption from the amusement ride regulations for museums or other
institutions principally devoted to the exhibition of products of agriculture, industry, education, science,
religion, or the arts. As a result, these institutions would be required to comply with applicable licensing
and permitting requirements, including being subject to fees and fines.

Adoption of Standards

The bill conforms state standards that DACS is required to adopt by rule for testing and materials,
electric code, and fire protection, to recently revised national standards.

Inspection Standards

The bill clarifies inspection standards and revises the requirement that an amusement ride be inspected
by DACS in accordance with the statutory standards, and instead provides that rides presented for
inspection as ready for operation must comply with the standards.

Operating Requirements

The bill requires ride owners and operators to display DACS's contact information for ride patrons'
benefit. Specifically, a sign containing the DACS toll-free number and informing for patrons to contact
DACS with complaints or concerns regarding the operation of amusement rides must be posted in a
manner conspicuous to the public at each entrance of a nonpermanent amusement facility, unless such
facility or event is exempt. The bill requires DACS to prescribe by rule specifications for such signs.

After an amusement ride has undergone a major modification and before it is placed in operation, the
bill requires upon request, the owner or manager of the amusement ride to provide to DACS a copy of
the required certification and all evidence used by the professional engineer to prepare the certification.

The bill removes the four-hour threshold after which the owner or manager must report a mechanical,
structural, or electrical defect, and includes "failures" to the types of electrical deficiencies that can
trigger a reporting requirement.

In addition, the bill requires the affected ride to remain closed until repairs are reviewed and the ride is
released for operation by DACS.

Enforcement

The bill increases the limit for administrative fines from "not to exceed $2,500" to "not to exceed
$10,000" per violation. The bill adds as a violation the presentment of a ride for inspection by DACS
that has a defect that is known, or should be known. The bill adds an additional administrative fine of
$10,000, or more, for any violation resulting in serious injury or death to a patron.

Additionally, the bill provides DACS with certain investigative and subpoena powers for application in its
investigations performed under the amusement ride law. A person's refusal or failure to testify pursuant
to such subpoena is guilty of a second-degree misdemeanor, punishable as provided ins. 775.083,
F.S.

Specifically, in any examination or investigation conducted by DACS or a DACS appointed examiner,
DACS is authorized to:
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• Administer oaths,
• Examine and cross-examine witnesses,
• Receive oral and documentary evidence,
• Subpoena witnesses,
• Compel witness attendance and testimony, and
• Require by subpoena the production of documents or other evidence that it deems relevant to
the inquiry.

If any person refuses to comply with the subpoena or to testify as to any relevant matter, the Circuit
Court of Leon County, or the circuit court of the county in which such examination or investigation is
being conducted or the county in which such person resides pursuant to an application filed with DACS,
is authorized to issue an order requiring such person to comply with the subpoena and to testify.
Failure to obey an order may be punished by the court as contempt.

Subpoenas must be served, and proof of such service must be made, in the same manner as if issued
by a circuit court. Witness fees and mileage, if claimed, must be allowed as they are for testimony in a
circuit court. Any person willfully testifying falsely under oath as to any matter material to any such
examination, investigation, or hearing commits perjury will be punished accordingly.

Any person who asks to be excused from attending or testifying or from producing any documents or
other evidence in connection with any examination, hearing, or investigation on the ground that the
testimony or evidence required may tend to incriminate him or her or subject him or her to a penalty or
forfeiture and who, nevertheless, is directed by DACS and the Department of Legal Affairs to give such
testimony or produce such evidence must comply with that directive. The person may not thereafter be
prosecuted or subjected to any penalty or forfeiture for or on account of any transaction, matter, or
thing concerning which he or she may have testified or produced evidence, and no testimony given or
evidence produced may be received against him or her in any criminal action, investigation, or
proceeding.

However, a person testifying is not exempt from prosecution or punishment for any perjury committed
by him or her in such testimony, and the testimony or evidence given or produced is admissible against
him or her in any criminal action, investigation, or proceeding concerning such perjury; and the person
is not exempt from the refusal, suspension, or revocation of any license, permission, or authority
conferred or to be conferred pursuant to this chapter.

Any such individual may execute, acknowledge, and file with DACS a statement expressly waiving
such immunity or privilege with respect to any transaction, matter, or thing specified in such statement;
and upon such filing, the testimony of such individual or such evidence in relation to such transaction,
matter, or thing may be received or produced before any judge or justice, court, tribunal, grand jury, or
otherwise; and, if so received or produced, such individual is not entitled to any immunity or privileges
on account of any testimony he or she may so give or evidence so produced.

B. SECTION DIRECTORY:
Section 1. Amends s. 616.242, F.S., relating to amusement rides.

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

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11. FISCAL ANALYSIS & ECONOMIC IMPACT STATEMENT

A. FISCAL IMPACT ON STATE GOVERNMENT:

1. Revenues:
According to DACS, it will receive revenue from approximately 21 facilities that will lose their
exemption for inspections in a total amount of approximately $14,280. 62 However, the increase in
new exemptions for inspections will decrease revenue collections and may be off set.

2. Expenditures:
According to DACS, it will incur expenditures based on the cost of the safety signage at each event,
including 1,622 events times three signs per event times $0.25 per sign, which would be a total cost
to DACS of approximately $1,220. 63 The bill has an indeterminate fiscal impact on DACS for the
increased cost to inspect facilities that lose exemptions.

B. FISCAL IMPACT ON LOCAL GOVERNMENTS:

1. Revenues:
None.

2. Expenditures:
None.

C. DIRECT ECONOMIC IMPACT ON PRIVATE SECTOR:
There may be a negative fiscal impact on the businesses that will no longer be exempt from the
regulations.

D. FISCAL COMMENTS:
None.

111. COMMENTS

A. CONSTITUTIONAL ISSUES:

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

2. Other:
None.

B. RULE-MAKING AUTHORITY:
The bill revises the following provision relating to DACS rulemaking:
• Revises national standards that must be adopted by DACS;
• Creates a separate application and permitting process for permanent and temporary
amusement ride permits;
• Requires DACS to adopt rules detailing signage to be posted at each amusement ride event;
• Requires DACS to adopt rules specifying acceptable trade organizations that may inspect
certain permanent amusement rides;

62
Florida Department of Agriculture and Consumer Services, agency Analysis of2020 House Bill 1275, p. 2 (Jan. 17, 2020).
63 Id.
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• Deletes the inspection certificate process and all related rulemaking authority; and
• Broadens rulemaking authority to establish exemptions for types of rides from the amusement
ride regulation.

There is sufficient rulemaking authority in the bill and current law.

C. DRAFTING ISSUES OR OTHER COMMENTS:
None.

IV. AMENDMENTS/ COMMITTEE SUBSTITUTE CHANGES
On February 3, 2020, the Agriculture & Natural Resources Appropriations Subcommittee adopted an
amendment and reported the bill favorably as a committee substitute. The amendment clarified that a sign
containing the toll-free number of the department and informing patrons that they may contact the
department with complaints or concerns regarding the operation of amusement rides must be posted in a
manner conspicuous to the public at each entrance of a nonpermanent amusement facility.

This analysis is drafted to the committee substitute as approved by the Agriculture & Natural Resources
Appropriations Subcommittee.

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F L O R D A H O U S E 0 F R E P R E S E N T A T V E S

CS/HB 1275 2020

1 A bill to be entitled
2 An act relating to amusement rides; amending s.
3 616.242, F.S.; requiring amusement ride managers to
4 meet certain requirements; defining and redefining
5 terms; revising standards for rules adopted by the
6 Department of Agriculture and Consumer Services
7 relating to amusement rides; revising provisions for
8 permanent amusement ride annual permits; providing for
9 temporary amusement ride permits; revising provisions
10 for nondestructive testing and department testing of
11 amusement rides; removing the exemption from safety
12 standards for certain museums and institutions;
13 removing the limitation on the authority of the
14 department to establish exemptions from safety
15 standards; revising inspection standards for amusement
16 rides; directing the department to prescribe by rule
17 specified signage to be posted at nonpermanent
18 amusement facilities; revising requirements for
19 compliance certifications after major modifications to
20 amusement rides; revising requirements for amusement
21 ride inspections by owners and managers; providing
22 procedures for the introduction and examination of
23 witnesses and evidence in examinations and
24 investigations conducted by the department; revising
25 civil penalties; providing an effective date.

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26
27 Be It Enacted by the Legislature of the State of Florida:
28
29 Section 1. Section 616.242, Florida Statutes, is amended
30 to read:
31 616.242 Safety standards for amusement rides.-
32 (1) OWNER AND MANAGER RESPONSIBILITIES RESPONSIBILITY.-The
33 owner and the manager of an amusement ride, and each amusement
34 ride, must meet at all times the requirements of this section
35 and any rules adopted hereunder thereunder.
36 (2) SCOPE.-This section applies to all amusement rides
37 within this state unless exempt under subsection J..lll -H:-G+.
38 (3) DEFINITIONS.-As used in this section, the term:
39 (a) "Amusement ride" means any building, structure, or
40 mechanical device or combination thereof through which a patron
41 moves, walks, or is carried or conveyed on, along, around, over,
42 or through a fixed or restricted course or within a defined area
43 for the purpose of giving its patrons amusement, pleasure,
44 thrills, or excitement.
45 (b) "Amusement ride event" means an event where an
46 amusement ride is operated at a specific location and date as
47 listed on an annual permit application or on a temporary
48 amusement ride permit application.
49 J...s:1-fbt "Annual permit" means the United States Amusement
50 Identification Number and the numbered and dated decal issued by

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51 the department, which signify that the permanent amusement ride
52 has been permitted by the department.
53 lil_+e+ "Bungy operation" means an amusement ride that uses
54 which utilizes as a component a bungy cordL which is an elastic
55 rope made of rubber, latex, or other elastic-type elastic type
56 materialsL whether natural or synthetic.
57 J__tl-te+ "Go-kart" means an amusement ride vehicle
58 controlled or driven by patrons and specifically designed for
59 and run on a fixed course.
60 (e) "Inspection certificate" means the document issued by
61 the department, which indicates that the amusement ride has
62 undergone a recurring inspection by the department as required
63 by this section.
64 (f) "Kiddie ride" means an amusement ride designed
65 primarily for use by patrons up to 12 years of age.
66 (g) "Kiddie train" means a train designed as a kiddie ride
67 which is operated on a flat surface or flat track, carries no
68 more than 14 patrons, and does not exceed a speed of 3 miles per
69 hour.
70 (h) "Major modification" means any change in either the
71 structural or operational characteristics of an -t-h-e amusement
72 ride which will alter its performance from that specified in the
73 manufacturer's design criteria.
74 ( i) "Manager" means a person having possession, custody,
75 or managerial control of an amusement ride, whether as owner,

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76 lessee, agent, operator, attendant, or otherwise.
77 ( j) "Nondestructive testing" is the development and
78 application of technical methods, including, but not limited to,
79 radiographic, magnetic particle, ultrasonic, liquid penetrant,
80 electromagnetic, neutron radiographic, acoustic emission,
81 visual, and leak testingL to examine materials or components in
82 ways that do not impair their future usefulness and
83 serviceability in order to detect, locate, measure, and evaluate
84 discontinuities, defects, and other imperfections; to assess
85 integrity, properties, and composition; and to measure
86 geometrical characters.
87 ( k) "Owner" means the person exercising ultimate dominion
88 and control over an amusement ride.
89 ( l) "Patron" means any person who is in the immediate
90 vicinity of an amusement ride, getting on or off, or entering or
91 exiting an amusement ride, or using an amusement ride. The term
92 does not include employees, agents, or servants of the owner
93 while they are engaged in the duties of their employment.
94 (m) "Permanent amusement ride" means an amusement ride
95 that is not regularly relocated.
96 (n) "Permanent facility" means a location or place from
97 which amusement rides are not regularly relocated and at which
98 such rides operate as a lasting part of the premises.
99 (o) "Private event" means an event that is not open to the
100 general public and for which where no admission is not charged.

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101 (p) "Professional engineer" means a person who holds a
102 valid license as a professional engineer issued by the
103 Department of Business and Professional Regulation or by an
104 equivalent licensing body in another state.
105 (q) "Qualified inspector" means an employee or agent of an
106 insurance underwriter of an amusement ride who documents to the
107 department in a manner established by department rule of the
108 department the following qualifications:
109 1. A minimum of 5 years' years experience in the amusement
110 ride field, at least 2 years of which were involved in actual
111 amusement ride inspection with a manufacturer, government
112 agency, park, carnival, or insurance underwriter;
113 2. The completion of 32 hours per year of continuing
114 education at a school approved by department rule of the
115 department, which includes inservice industry or manufacturer
116 updates and seminars; and
117 3. At least 80 hours of formal education during the past 5
118 years from a school approved by department rule of the
119 department for amusement ride safety. Nondestructive-testing
120 training, as determined by department rule of the department,
121 may be substituted for up to one-half of the 80 hours of
122 education.
123 (r) "Simulator" means any amusement ride that is a self-
124 contained unit requiring little or no assembly and that uses a
125 motion picture simulation, along with a mechanical movement, to

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126 simulate activities that provide amusement or excitement for the
127 patron.
128 (s) "Temporary amusement ride" means an amusement ride
129 that is regularly relocated, with or without disassembly.
130 ( t) "Temporary amusement ride permit" means the United
131 States Amusement Identification Number and the decal issued by
132 the department, which signify that the temporary amusement ride
133 has been permitted by the department.
134 M+t+ "Water park" means a permanent facility with one or
135 more amusement rides that totally or partially immerse a patron
136 in water.
137 (4) ADOPTION OF STANDARDS; RULES.-
138 (a) The department shall adopt by rule standards for
139 amusement rides which are the same as or similar to the
140 following national standards:
141 1. ASTM International .7\.merican Society for Testing and
142 Materials Committee F24 ~ Standards on Amusement Rides and
143 Devices.
144 2. The National Electric Code Handbook, Article 525.
145 3. National Fire Protection Association standards Code 101
14 6 (chapters 8 4.6 and 9 4.6).
147 4. ASTM Standards: E543 Practice for Determining the
148 Qualification of Nondestructive Testing Agencies.
149 5. , 'rSNT Document Recommended Practice SNT TC lA. Personnel
1

150 Qualification and Certification in Nondestructive Testing.

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151 (b) The department may adopt rules necessary to effectuate
152 the statutory duties of the department in the interest of the
153 public health, safety, and welfare and to promote patron safety
154 in the design, construction, assembly, disassembly, maintenance,
155 and operation of amusement rides in this state.
156 (c) The Legislature finds that go-karts, amusement rides
157 at water parks, and bungy operations are amusement rides that,
158 because of their unique nature, pose safety risks to patrons
159 distinct from other amusement rides. Therefore, the department
160 shall adopt rules regulating their safe use and operation and
161 establish safety standards and inspection requirements in
162 addition to those required by this section or other department
163 rule of the department.
164 (d) The Legislature finds that, as a result of accidents
165 or other unforeseen events, circumstances may arise requiring
166 additional safety standards for the protection of patrons of
167 amusement rides~, and Therefore~ the department may adopt rules
168 to address the circumstances that may arise following an
169 accident or unforeseen event.
170 (5) PERMANENT AMUSEMENT RIDE ANNUAL PERMIT.-
171 (a) A permanent Aft amusement ride may not be operated
172 without a current annual permit.
173 (b) To apply for an annual permit, an owner or manager
174 must submit to the department a written application on a form
175 prescribed by department rule of the department, which must

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17 6 include the following:
177 1. The legal name, address, and primary place of business
178 of the owner or manager, as applicable.
179 2. A description, manufacturer's name, serial number,
180 model number and, if previously assigned, the United States
181 Amusement Identification Number of the amusement ride.
182 3. A valid certificate of insurance for each amusement
183 ride.
184 4. If required under subsection (7), an annual affidavit
185 of compliance and nondestructive testing certifying that the
186 amusement ride was inspected in person by the affiant and that
187 the amusement ride is in general conformance with the
188 requirements of this section and all applicable department rules
189 adopted by the department. The affidavit must have been ee
190 executed by a professional engineer or a qualified inspector
191 within the last calendar year no earlier than 60 days before,
192 but not later than, the date of the filing of the application
193 with the department. The owner shall request inspection and
194 permitting of the amusement ride within 60 days of the date of
195 filing the application with the department. The department shall
196 inspect and permit the amusement ride within 60 days after
197 filing the application with the department.
198 5. If required by subsection (6), an affidavit of
199 nondestructive testing dated and e}{ecuted no earlier than 60
200 days before, but not later than, the date of the filing of the

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201 application with the department. The owner shall request
202 inspection and permitting of the amusement ride within 60 days
203 of the date of filing the application with the department. The
204 department shall inspect and permit the amusement ride within 60
205 days after filing the application with the department.
206 6. A request for inspection.
207 5.::;....;.. Upon request, The owner or manager shall, at no cost
208 to the department, provide the department an electronic a copy
209 of the manufacturer's current recommended operating instructions
210 in the possession of the owner, the owner's operating fact
211 sheet, and any written bulletins in the possession of the owner
212 concerning the safety, operation, or maintenance of the
213 amusement ride.
214 (c) An annual permit application must be received by the
215 department at least 15 days before the planned opening date. If
216 an application is received less than 15 days before the planned
217 opening date or less than 15 days before the expiration of the
218 previous permit, the department may inspect the amusement ride
219 and charge a penalty as established by department rule.
220 Js!,l+et An annual permit must be issued by the department
221 to the owner or manager of an amusement ride when a completed
222 application has been received, the amusement ride has passed the
223 department's inspection, and all applicable fees, as set by
224 department rule of the department, have been paid.
225 ~+et The annual permit is valid for 1 year after -f:-r.em

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226 the date of issue and is not transferable.
227 J.!l-te+ The annual permit must be displayed in an
228 accessible location on the amusement ride in a place visible to
229 patrons of the amusement ride.
230 l..9.l+H- Each go-kart track at the same permanent facility
231 is considered a separate amusement ride.
232 J.bl+Jt Amusement rides at water parks which operate from
233 the same deck or level are considered one amusement ride.
234 (6) TEMPORARY AMUSEMENT RIDE PERMIT.-
235 (a) A temporary amusement ride may not be operated without
236 a current permit.
237 (b) To apply for a permit, an owner or manager must submit
238 to the department a written application on a form prescribed by
239 department rule, which must include the following:
240 1. The legal name, address, and primary place of business
241 of the owner or manager, as applicable.
242 2. A description, manufacturer's name, serial number,
243 model number and, if previously assigned, the United States
244 Amusement Identification Number of the amusement ride.
245 3. A valid certificate of insurance for each amusement
246 ride.
247 4. If required under subsection (7), an affidavit of
248 compliance and nondestructive testing certifying that the
249 amusement ride was inspected in person by the affiant and that
250 the amusement ride is in general conformance with the

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251 requirements of this section and all applicable department
252 rules. The affidavit must be executed by a professional engineer
253 or a qualified inspector.
254 5. The owner or manager shall, at no cost to the
255 department, provide the department an electronic copy of the
256 manufacturer's current recommended operating instructions, the
257 operating fact sheet, and any written bulletins concerning the
258 safety, operation, or maintenance of the amusement ride.
259 (c) A temporary amusement ride permit application must be
260 received by the department each time the amusement ride is
261 relocated, with or without disassembly, at least 14 days before
262 the date of the ride's first intended use at the new location.
263 If the permit application is received less than 14 days before
264 the date of the ride's first intended use at the new location,
265 the department may inspect the amusement ride and charge a
266 penalty, as set by department rule.
267 (d) The department must issue a permit to the owner or
268 manager of an amusement ride when a completed application has
269 been received, the amusement ride has passed the department's
270 inspection, and all applicable fees, as set by department rule,
271 have been paid.
272 (e) The permit is valid for 6 months after the date of
273 issue or until the ride is relocated, with or without
274 disassembly, and is not transferable.
275 (f) The permit must be displayed in an accessible location

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276 on the amusement ride.
277 J.21-f-6+ NONDESTRUCTIVE TESTING; ANNUAL AFFIDAVIT;
278 EXEMPTIONS.-
279 (a) Except as provided in paragraph (d), an owner or
280 manager may not operate an amusement ride unless the owner or
281 manager ft-a-fr at all times has a current affidavit of
282 nondestructive testing from a professional engineer or qualified
283 inspector that the amusement ride has undergone nondestructive
284 testing for metal fatigue at least annually. The nondestructive
285 testing for metal fatigue must be conducted more often than
286 annually7 if required by any rule adopted under this section, by
287 the manufacturer of the amusement rideL or by the professional
288 engineer or qualified inspector executing the affidavit of
289 nondestructive testing. The nondestructive testing for metal
290 fatigue must consist at least of visual nondestructive testingL
291 as well as; in addition, nonvisual nondestructive testing for
292 metal fatigue, which must be conducted on the components of the
293 amusement ride as required by any rule adopted under this
294 section, by the manufacturer of the amusement ride, or by the
295 professional engineer or qualified inspector executing the
296 affidavit of nondestructive testing.
297 (b) Nondestructive testings must be performed by a
298 technician who meets the requirements prescribed by department
299 rule of oubparagrapho ( 4) (a) 4. and 5.
300 (c) An affidavit of nondestructive testing must state:

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301 1. That the amusement ride was inspected in person by the
302 affiant.
303 2. That all nondestructive testing requirements are
304 current.
305 3. That the nondestructive testing was performed by a
306 qualified nondestructive testing technician.
307 4. The components of the amusement ride for which the
308 manufacturer has recommended or required nondestructive testing.
309 5. The type of nondestructive testing required or
310 recommended by the manufacturer.
311 6. The frequency of the nondestructive testing required or
312 recommended by the manufacturer.
313 7. The components of the amusement ride for which the
314 affiant has recommended or required nondestructive testing.
315 8. The type of nondestructive testing required or
316 recommended by the affiant.
317 9. The frequency of the nondestructive testing as required
318 or recommended by the affiant.
319 10. That visual nondestructive testing is adequate for the
320 amusement ride to be in general conformance with the
321 requirements of this section7 and all applicable rules, only7 if
322 eft±-y visual nondestructive testing is required or recommended by

323 either the manufacturer or the affiant.
324 (d} Nondestructive testing is not required for fun houses,
325 houses of mirrors, haunted houses, mazes, wave pools, wave-

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326 making devices, kiddie pools, slides that are fully supported by
327 an earthen mound, nonmotorized playground equipment that
328 requires a manager, or lazy-river-type nonmotorized floating
329 carriers propelled by water.
330 JJU_-f-+t- DEPARTMENT INSPECTIONS.-
331 (a) Except as provided in subparagraphs 1. and 2., in
332 order to obtain an annual or a temporary amusement ride permit,
333 an amusement ride must be inspected by the department~
334 1. A in accordance with subsection (11) and receive an
335 inspection certificate. In addition, each permanent amusement
336 ride must be inspected semiannually by the department in
337 accordance with subsection (11) and receive an inspection
338 certificate, and each temporary amusement ride must be inspected
339 by the department in accordance with subsection (11), and must
340 receive an inspection certificate each time the ride is set up
341 or moved to a new location in this state unless the temporary
342 amusement ride is exempt from the required inspection if it is:
343 a.±. Used at a private event;
344 b.~ A simulator, the capacity of which does not exceed 16
345 persons; or
346 c.-3-.-- A kiddie ride used at a public event, provided that
347 not there are no more than three amusement rides are at the
348 event, none of the kiddie rides at the event do not exceed
349 exceeds a capacity of 12 persons, and the kiddie ride passed a
350 department inspection and was issued a permit has an inspection

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351 certificate that was issued within the preceding 6 months. The
352 capacity of a kiddie ride shall be determined by department rule
353 of the departffient, unless the capacity of the ride has been
354 determined and specified by the manufacturer. Any owner or
355 manager of a kiddie ride operating under this exemption is
356 responsible for ensuring that not Re- more than three amusement
357 rides are operated at the event.
358 2.-fe+- The required inspection may be waived for a
359 permanent amusement ride if it was inspected and certified by an
360 accredited trade organization as defined by department rule .!f.e
361 obtain a department inspection for an affiuSeffient ride, the owner
362 ffiust subffiit to the departffient on a forffi prescribed by rule of
363 the departffient a written Request for Inspection. The owner ffiust
364 provide the following inforffiation to the departffient:
365 1. The legal naffie, address, and priffiary place of business
366 of the owner.
367 2. A description, ffianufacturer's naffie, serial nuffiber,
368 ffiodel nuffiber, and the United States ,7\m.useffient Identification
369 Nuffiber, if previously assigned, of the affiuseffient ride.
370 3. For a teffiporary affiuseffient ride, for each tiffie the
371 affiuseffient ride is set up or ffioved to a new location, the date of
372 first intended use at the new location and the address or a
373 description of the new location.
374 (c) For perffianent affiuseffient rides, the request for
375 inspection ffiust be received by the departffient at least 15 days

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376 before the owner's planned opening date or at least 15 days
377 before the expiration of the prior inspection certificate. If
378 the request for inspection is received less than 15 days before
379 the owner's planned opening date or less than 15 days before the
380 expiration of the prior inspection certificate, the department
381 may nevertheless inspect the amusement ride and charge a late
382 fee, as set by rule of the department.
383 ( d) For temporary amusement rides, the request for
384 inspection must be received by the department for each time the
385 amusement ride is set up or moved to a new location at least 14
386 days before the date of first intended use at the new location.
387 If the request for inspection is received less than 14 days
388 before the date of first intended use at the new location, the
389 department may nevertheless inspect the amusement ride and
390 charge a late fee, as set by rule of the department.
391 J.!21-fe+- Inspections must w-i-1-1- be assigned on a first-come,
392 first-served first come, first served basis, and overflow
393 requests must w-i-1-1- be scheduled on the closest date to the date
394 for which the inspection was requested.
395 lsJ_-f-£-+- Upon failure of an amusement ride to pass any
396 department inspection, the owner or manager may request
397 reinspectionL which must shall be submitted in writing to the
398 department on a form prescribed by department rule of the
399 department. The department shall reinspect the amusement ride as
400 soon as practicable after practical following receipt of the

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401 written request for reinspection and any applicable reinspection
402 fees set by department rule of the department. Inspections must
403 w-i-±-±- be assigned on a first-come, first-served first come, first
404 served basis, and the overflow requests must w-i-±-±- be scheduled
405 on the closest date to the date for which the inspection was
406 requested.
407 (g) If the amusement ride passes inspection and the owner
408 pays the applicable fee set by rule of the department, the
409 department shall issue an inspection certificate on a form
410 prescribed by rule of the department.
411 (h) The inspection certificate must contain the date of
412 inspection, the site of the inspection, and the name of the
413 inspector.
414 (i) The inspection certificate is valid only for the site
415 stated on the inspection certificate. The inspection certificate
416 is valid for a period of not more than 6 months from the date of
417 issuance, and is not transferable.
418 (j) The inspection certificate must be displayed on the
419 amusement ride at a place readily visible to patrons of the
420 amusement ride.
421 19.l-fk-t If the owner or manager fails to timely cancel a
422 scheduled Request for inspection, requests holiday or weekend
423 inspections, or is required to have a replacement USAID plate
424 issued by the department, the owner or manager may be charged an
425 appropriate fee to be set by department rule of the department.

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426 (e} In order to align inspection dates at permanent
427 facilities, the department may shorten or extend the 6-month
428 inspection interval. Fees for rides with shortened inspection
429 intervals must be prorated. Extensions of inspection intervals
430 may not exceed 2 months.
431 fil+8+ FEES.-
432 (a} The department shall by rule establish by rule fees to
433 cover the costs and expenditures associated with the fair rides
434 inspection program, including all direct and indirect costs. If
435 the Legislature does not appropriate there is not sufficient
436 general revenue sufficient to cover such costs and expenditures
437 appropriated by the Legislature, the industry shall pay -f.e-r the
438 remainder remaining cost of the program. The fees must be
439 deposited in the General Inspection Trust Fund.
440 (b) An Afty- owner or manager of an amusement ride who has
441 not paid a±-1- the fees required under this section or who has any
442 unpaid fine outstanding under this section may not operate any
443 amusement ride in this state until the fees or aftEi fines have
444 been paid to the department.
445 J..l.Ql_-t9+ INSURANCE REQUIREMENTS.-
446 (a} An owner or manager may not operate an amusement ride
447 unless the owner or manager has in effect at all times of
448 operation an insurance policy in an amount of at least $1
449 million per occurrence, $1 million in the aggregate, which
450 insures the owner or manager of the amusement ride against

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451 liability for injury to persons arising out of the use of the
452 amusement ride.
453 (b) The policy must be procured from an insurer that is
454 licensed to transact business in this state or that is approved
455 as a surplus lines insurer.
456 (c) The insurance requirements imposed under This
457 subsection does ee not apply to a governmental entity that is
458 covered under by the provisions of s. 768.28(16).
459 J..1..ll-H:-9+ EXEMPTIONS.-
4 60 (a) This section does not apply to:
461 1. Permanent facilities that employ at least 1,000 full-
4 62 time employees and that maintain full-time, in-house safety
463 inspectors. However Furthermore, the permanent facilities must
4 64 file an affidavit of the annual inspection with the department,
465 on a form prescribed by department rule of the department.
466 Additionally, The department of Agriculture and Consumer
4 67 Services may consult annually with the permanent facilities
4 68 regarding industry safety programs.
469 2. Any playground operated by a school,~ local
470 government, or~ business licensed under chapter 509, if the
471 playground is an incidental amenity and the operating entity is
472 not primarily engaged in providing amusement, pleasure, thrills,
473 or excitement.
474 3. Museums or other institutions principally devoted to
475 the exhibition of products of agriculture, industry, education,

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476 science, religion, or the arts.
477 3.4.- Conventions or trade shows for the sale or exhibit of
478 amusement ridesL if there are a minimum of 15 amusement rides on
479 display or exhibition7 and if any operation of such amusement
480 rides is limited to the registered attendees of the convention
481 or trade show.
482 4.~ Skating rinksL7 arcadesL7 laser or paint ball war
483 gamesL7 bowling alleysL7 miniature golf coursesL7 mechanical
484 bullsL7 inflatable ridesL7 trampolinesL7 ball crawlsL7 exercise
485 equipmentLT jet skisLT paddle boatsL7 airboatsL7 helicoptersL7
486 airplanesL7 parasailsL7 hot air or helium balloonsL whether
487 tethered or untetheredL7 theatresL7 batting cagesL7 stationary
488 spring-mounted fixturesL7 rider-propelled merry-go-roundsL7
489 gamesL7 side showsL7 live animal ridesL7 or live animal shows.
490 5.-6.- Go-karts operated in competitive sporting events if
491 participation is not open to the public.
4 92 6.+. Nonmotorized playground equipment that is not
493 required to have a manager.
4 94 7.!3-;- Coin-actuated amusement rides designed to be operated
495 by depositing coins, tokens, credit cards, debit cards, bills,
496 or other cash money and which are not required to have a
497 manager, and which have a capacity of six persons or less.
498 8.-9--;- Facilities described ins. 549.09(1) (a)L when such
499 facilities are operating only cars, trucks, or motorcycles eft±-y.
500 9.~ Battery-powered cars or other vehicles that are

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501 designed to be operated by children 7 years of age or younger
502 under and that cannot exceed a speed of 4 miles per hour.
503 10.-l-±--. Mechanically driven vehicles that pull train cars,
504 carts, wagons, or other similar vehiclesL7 that are not confined
505 to a metal track or confined to an area but are steered by an
506 operatorL and that cannot do not exceed a speed of 4 miles per
507 hour.
508 11.-±±-;- A water-related amusement ride operated by a
509 business licensed under chapter 509L if the water-related
510 amusement ride is an incidental amenity and the operating
511 business is not primarily engaged in providing amusement,
512 pleasure, thrills, or excitement and does not offer day rates.
513 12.-±-3--.- An amusement ride at a private, membership-only
514 facility if the amusement ride is an incidental amenityL and the
515 facility is not open to the general public; is not primarily
516 engaged in providing amusement, pleasure, thrills, or
517 excitement; and does not offer day rates.
518 13.-1-4--;- A nonprofit permanent facility registered under
519 chapter 496 which is not open to the general public.
520 (b) The department may, by rule, establish by rule
521 exemptions from this section for nonmotori~ed or human powered
522 amusement rides or coin actuated amusement rides.
523 l11.l_-H:-±-t INSPECTION STANDARDS.-An amusement ride must
524 conform to and must be inspected by the department in accordance
525 w-i-t-h- the following standards:

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526 (a} All mechanical, structural, and electrical components
527 that affect patron safety must be in good working order.
528 (b) All control devices, speed-limiting devices, brakes,
529 and safety equipment designated by the manufacturer must be in
530 good working order.
531 (c} Parts must be properly alignedT and -t-h-ey may not be
532 bent, distorted, cut, or otherwise injured to force a fit. Parts
533 requiring lubrication must be lubricated in the course of
534 assembly. Fastening and locking devices must be installed when
535 where required for safe operation.
536 (d) Before being used by the public, An amusement ride
537 must be placed or secured with blocking, cribbing, outriggers,
538 guys, or other means so as to be stable under all operating
539 conditions.
540 (e) Areas in which patrons may be endangered by the
541 operation of an amusement ride must be fenced, barricaded, or
542 otherwise effectively guarded against inadvertent contact.
543 (f) Machinery used in or with an amusement ride must be
544 enclosed, barricaded, or otherwise effectively guarded against
545 inadvertent contact.
546 (g) An amusement ride powered so as to be capable of
547 exceeding its maximum safe operating speed must be provided with
548 a maximum-speed-limiting device.
549 (h) The interior and exterior parts of all patron-carrying
550 amusement rides with which a patron may come in contact must be

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551 smooth and rounded and free from sharp, rough, or splintered
552 edges and corners, and from with no projecting studs, bolts, and
553 screws 7 or other projections that which might cause injury.
554 (i) Signs that advise or warn patrons of age restrictions,
555 size restrictions, health restrictions, weight limitations, or
556 any other special consideration or use restrictions required or
557 recommended for the amusement ride by the manufacturer must
558 shall be prominently displayed at the patron entrance of each
559 amusement ride.
560 (j) All amusement rides presented for inspection as ready
561 for operation or in operation must comply with this section and
562 department rule the rules adopted hereunder.
563 (k) A sign containing the toll-free number of the
564 department and informing patrons that they may contact the
565 department with complaints or concerns regarding the operation
566 of amusement rides must be posted in a manner conspicuous to the
567 public at each entrance of a nonpermanent amusement facility.
568 The department shall prescribe by rule specifications for such
569 signs.
570 i.1:ll_~ MAJOR MODIFICATION.-After an amusement ride has
571 undergone a major modification, and before prior to the time it
572 is placed in operation, a professional engineer licensed by the
573 state in which the certification is performed must certify that
574 the amusement ride is in compliance with this section and
575 department rule all rules adopted pursuant thereto. Upon

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576 request, the owner or manager of the amusement ride shall
577 provide to the department a copy of the required certification
578 and all evidence used by the professional engineer to prepare
579 the certification.
580 J..1...il-f-±-3+ ENTRY FOR INSPECTION OR INVESTIGATION.-Upon
581 presentation of identification, an authorized employee of the
582 department may enter unannounced and inspect amusement rides at
583 any time and in a reasonable manner and has the right to
584 question any owner or manager; to inspect, investigate,
585 photograph, and sample all pertinent places, areas, and devices;
586 and to conduct or have conducted all appropriate tests including
587 nondestructive testing. The department may impose fees for
588 unannounced inspections and recover the cost of tests authorized
589 by this subsection.
590 ~-f-±-4-t REPORTING AND INVESTIGATION OF ACCIDENTS AND
591 DEFECTS; IMPOUNDMENTS.-
592 (a) Any accident of which the owner or manager has
593 knowledge or, through the exercise of reasonable diligence
594 should have knowledge, and for which a patron is transported to
595 a hospital, as defined in chapter 395, must be reported by the
596 owner or manager to the department by telephone within 4 hours
597 after the occurrence of the accident and must be followed up by
598 a written report to the department within 24 hours after the
599 occurrence of the accident.
600 (b) Any mechanical, structural, or electrical defects or

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601 failures affecting patron safety for which an amusement ride is
602 closed to patron use for ffiore than 4 hours must be reported by
603 the owner or manager to the department by telephone or facsimile
604 within 8 hours after the closing of the ride. A written report
605 of the closing of the ride, on a form prescribed by department
606 rule of the department, must be filed by the owner or manager
607 with the department within 24 hours after the closing of the
608 amusement ride. The affected ride must remain closed until
609 repairs are reviewed and the ride is released for operation by
610 the department.
611 (c) The department may impound an amusement ride involved
612 in an accident for which a patron is transported to a hospital
613 as defined in chapter 395 or which has a mechanical, structural,
614 or electrical defect affecting patron safetyL, and may impound
615 any other amusement ride of a similar make and modelL7 and may
616 perform all necessary tests to determine the cause of the
617 accident or the mechanical, structural, or electrical defect 7 or
618 to determine the safety of the amusement ride and any other
619 amusement ride of a similar make and model. The cost of
620 impounding the amusement ride and performing the necessary tests
621 must be borne by the owner of the amusement ride.
622 J..1...§1_+±-§+ INSPECTION BY OWNER OR MANAGER.-Before opening on
623 each day of operation and before any inspection by the
624 department, the owner or manager of an amusement ride must
625 inspect and test each -t-tte amusement ride to ensure compliance

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626 with all requirements of this section. Each inspection must be
627 recorded on a form prescribed by department rule of the
628 department and signed by the person who conducted the
629 inspection. In lieu of the form prescribed by department rule e-f.
630 the department, the owner or manager may request approval of an
631 alternative form that if the alternative form includes, at a
632 minimum, the information required on the form prescribed by
633 department rule of the department. Inspection records of the
634 last 14 daily inspections must be kept on site by the owner or
635 manager and made immediately available to the department upon
636 request.
637 J.1....21-8-6+ TRAINING OF EMPLOYEES.-The owner or manager of an
638 amusement ride shall maintain a record of employee training for
639 each employee authorized to operate, assemble, disassemble,
640 transport, or conduct maintenance on an amusement ride on a form
641 prescribed by department rule of the department. In lieu of the
642 form prescribed by department rule of the department, the owner
643 or manager may request approval of an alternative form that±£-
644 the alternative form includes, at a minimum, the information
645 required on the form prescribed by department rule of the
646 department. The training record must be kept on site by the
647 owner or manager and made immediately available to the
648 department upon request. Training may not be conducted when an
649 amusement ride is open to the public unless the training is
650 conducted under the supervision of an employee who is trained in

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651 the operation of that ride. The owner or manager shall certify
652 that each employee is trained, as required by this section and
653 any rules adopted thereunder, on the amusement ride for which
654 the employee is responsible.
655 __L!JU_-f+++- PROHIBITIONS RELATED TO BUNGY OPERATIONS.-The
656 following bungy operations are prohibited:
657 (a) A bungy operation conducted with balloons, blimps,
658 helicopters, or other aircraft.
659 (b) Sand bagging, which is the practice of holding onto
660 any object, including another person, while bungy jumping, for
661 the purpose of exerting more force on the bungy cord to stretch
662 it further, and then releasing the object during the jump
663 causing the jumper to rebound with more force than could be
664 created by the jumper's weight alone.
665 (c) Tandem or multiple bungy jumping.
666 (d) Bungy jumping from any bridge, overpass, or any other
667 structure not specifically designed as an amusement ride.
668 (e) The practice of bungy catapulting or reverse bungy
669 jumping.
670 J..1.2.l_-H:-8+ IMMEDIATE FINAL ORDERS.-
671 (a) An amusement ride that fails to meet the requirements
672 of this section or pass the inspections required by this
673 section~, or an amusement ride that is involved in an accident
674 for which a patron is transported to a hospital as defined in
67 5 chapter 395~, or an amusement ride that has a mechanical,

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676 structural, or electrical defect that affects patron safety may
677 be considered an immediate serious danger to the public health,
678 safety, and welfare and, upon issuance of an immediate final
679 order prohibiting patron use of the ride, may not be operated
680 for patron use until it has passed a subsequent inspection by or
681 at the direction of the department.
682 (b) An amusement ride of a similar make and model to an
683 amusement ride described in paragraph (a) may be considered an
684 immediate serious danger to the public health, safety, and
685 welfare and, upon issuance of an immediate final order
68 6 prohibiting patron use of the ride, may not be operated for
687 patron use until it has passed a subsequent inspection by or at
688 the direction of the department.
689 (20) WITNESSES AND EVIDENCE.-
690 (a) In any examination or investigation conducted by the
691 department or by an examiner appointed by the department, the
692 department may administer oaths, examine and cross-examine
693 witnesses, receive oral and documentary evidence, subpoena
694 witnesses, compel witness attendance and testimony, and require
695 by subpoena the production of documents or other evidence that
696 it deems relevant to the inquiry.
697 (b) If any person refuses to comply with such subpoena or
698 to testify as to any relevant matter, the Circuit Court of Leon
699 County, or the circuit court of the county in which such
700 examination or investigation is being conducted or the county in

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701 which such person resides pursuant to an application filed with
702 the department, may issue an order requiring such person to
703 comply with the subpoena and to testify. Any failure to obey
704 such an order of the court may be punished by the court as a
705 contempt thereof.
706 (c) Subpoenas must be served, and proof of such service
707 must be made, in the same manner as if issued by a circuit
708 court. Witness fees and mileage, if claimed, must be allowed as
709 they are for testimony in a circuit court.
710 (d) Any person willfully testifying falsely under oath as
711 to any matter material to any such examination, investigation,
712 or hearing commits perjury and shall be punished accordingly.
713 (e) Any person who asks to be excused from attending or
714 testifying or from producing any documents or other evidence in
715 connection with any examination, hearing, or investigation on
716 the ground that the testimony or evidence required may tend to
717 incriminate him or her or subject him or her to a penalty or
718 forfeiture and who, nevertheless, is directed by the department
719 and the Department of Legal Affairs to give such testimony or
720 produce such evidence shall comply with that directive. The
721 person may not thereafter be prosecuted or subjected to any
722 penalty or forfeiture for or on account of any transaction,
723 matter, or thing concerning which he or she may have testified
724 or produced evidence, and no testimony given or evidence
725 produced may be received against him or her in any criminal

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726 action, investigation, or proceeding. However, a person so
727 testifying is not exempt from prosecution or punishment for any
728 perjury committed by him or her in such testimony, and the
729 testimony or evidence given or produced is admissible against
730 him or her in any criminal action, investigation, or proceeding
731 concerning such perjury; and the person is not exempt from the
732 refusal, suspension, or revocation of any license, permission,
733 or authority conferred or to be conferred pursuant to this
734 chapter.
735 (f) Any such individual may execute, acknowledge, and file
736 with the department a statement expressly waiving such immunity
737 or privilege with respect to any transaction, matter, or thing
738 specified in such statement; and upon such filing, the testimony
739 of such individual or such evidence in relation to such
740 transaction, matter, or thing may be received or produced before
741 any judge or justice, court, tribunal, grand jury, or otherwise;
742 and, if so received or produced, such individual is not entitled
743 to any immunity or privileges on account of any testimony he or
744 she may so give or evidence so produced.
745 (g) Any person who refuses or fails without lawful cause
746 to testify relative to the affairs of any person, when
747 subpoenaed and requested by the department to so testify,
748 commits a misdemeanor of the second degree, punishable as
749 provided ins. 775.083.
750 J11.l-f-±-9-t ENFORCEMENT AND PENALTIES.-

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751 (a) The department may deny, suspend for a period not to
752 exceed 1 year, or revoke any permit or inspection certificate.
753 In addition to denial, suspension, or revocation, the department
754 may impose an administrative fine in the Class III Class II
755 category pursuant to s. 570.971 not to exceed $10,000 $2,500 for
756 each violation, for each day the violation exists, against the
757 owner or manager of the amusement ride if it finds that:
758 1. An amusement ride has operated or is operating:
759 a. With a mechanical, structural, or electrical defect
760 that affects patron safety, of which the owner or manager has
761 knowledge, or, through the exercise of reasonable diligence,
762 should have knowledge;
763 b. In a manner or circumstance that presents a risk of
7 64 serious injury to patrons;
765 c. At a speed in excess of its maximum safe operating
766 speed;
7 67 d. In violation of this section or department -a-n-y rule
768 adopted under this section; or
769 e. In violation of an order of the department or order of
770 any court; e-r
771 2. An owner, a manager, or an operator in the course of
772 his or her duties is under the influence of drugs or alcohol; or
773 3. An amusement ride was presented for inspection as ready
774 for operation with a mechanical, structural, or electrical
775 defect that affects patron safety, of which the owner or manager

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FLORIDA H O U S E 0 F REPRESENTATIVES

CS/HB 1275 2020

776 has knowledge or, through the exercise of reasonable diligence,
777 should have knowledge.
778 (b) In addition to the administrative fine provided in
779 paragraph (a), the department may impose an additional
780 administrative fine in the Class IV category pursuant to s.
781 570.971 of $10,000 or more against the owner or manager if a
782 violation resulted in serious injury or death to a patron.
783 l.sj_-te+ The department shall, In its order suspending a
784 permit or inspection certificate, the department shall specify
785 the period during which the suspension is effective, which; but
786 such period may not exceed 1 year. The permit must or inspection
787 certificate shall remain suspended during the period so
788 specified, subject, however, to any rescission or modification
789 of the order by the department, or modification or reversal
790 thereof by the court, before prior to expiration of the
791 suspension period.
792 ls!l_+e+ The owner of an amusement ride, If the permit e-r-
793 inspection certificate for the amusement ride has been revoked
794 by the department, the owner or manager of such ride may not
795 apply for another permit or inspection certificate for the
796 amusement ride within 2 years after the date of such revocation.
797 If judicial review is sought and a stay of the revocation is
798 obtained, the owner or manager may not apply for another permit
799 or inspection certificate within 2 years after the final order
800 of the court sustaining the revocation.

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CS/HB 1275 2020

801 ~+a+ During the period of suspension or revocation of a
802 permit or inspection certificate, the owner or manager may not
803 engage in or attempt to engage in any operation of the amusement
804 ride for which a permit or inspection certificate is required
805 under this section.
806 J!l+e+ When a suspension period imposed by the department
807 has expired, an owner or manager whose annual permit e-r
808 inspection certificate has expired may reapply for a new permit
809 or inspection certificate by submitting a complete application
810 to the department.
811 J_gj_-f-f-t In addition to the remedies provided in this
812 section, and notwithstanding the existence of any adequate
813 remedy at law, the department may bring an action to enjoin the
814 violation of any provision of this section, or rules adopted
815 under this section, in the circuit court of the county in which
816 the violation occurs or is about to occur. Upon presentation
817 competent and substantial evidence presented by the department
818 to the court of competent and substantial evidence of the
819 violation or threatened violation, the court must immediately
820 issue the temporary or permanent injunction sought by the
821 department. The injunction must be issued without bond.
822 J..!u_~ In addition to the penalties authorized to be
823 imposed for any violation of this section or any rule adopted
824 under this section, the department may issue a letter of warning
825 to the owner or manager of the amusement ride specifying the

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826 violation and directing the owner or manager to immediately
827 correct the violation.
828 Ji.l-tht Any person who knowingly violates any provision of
829 this section commits a misdemeanor of the second degree,
830 punishable as provided ins. 775.082 ors. 775.083.
831 Section 2. This act shall take effect July 1, 2020.

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HOUSE OF REPRESENTATIVES STAFF ANALYSIS
BILL#: HB 1369 Sports Franchises and Facilities
SPONSOR(S): Pigman
TIED BILLS: IDEN./SIM. BILLS:

REFERENCE ACTION ANALYST STAFF DIRECTOR or
BUDGET/POLICY CHIEF

1) Workforce Development & Tourism Subcommittee 12 Y, 1 N Willson Barry

2) Ways & Means Committee 14 Y, 1 N Berg Langston

3) Commerce Committee Willson /1'vv' Hamon

SUMMARY ANALYSIS
Florida is home to many professional and semi-professional sports franchises. Generally, the facilities where
these franchises play are financed through local government-issued bonds, which are repaid using a
combination of state and local tax revenues and related incentive programs. The facilities are generally located
on land leased or purchased from local government.

The bill repeals the following sections of law:
• Section 288.1162, F.S., relating to Professional Sports Franchises,
• Section 288.11621, F.S., relating to Spring Training Baseball Franchises,
• Section 288.11625, F.S., relating to Sports Development,
• Section 288.11631, F.S., relating to Retention of MLB Spring Training Baseball Franchises, and
• Section 288.1171, F.S., relating to Motorsports Entertainment Complexes.

The bill prohibits the use of Tourist Development Tax or Convention Development Tax revenues to finance or
construct any aspect of a facility that is or will be used by a sports franchise after July 1, 2020.

The bill amends subsections 218.64(2) & (3), F.S., removing the authority for local governments to spend the
half-cent sales tax on a motorsport entertainment complex or for reimbursements under the sports
development program.

The bill creates s. 288.11633, F.S., providing for certain conditions relating to sports franchise facilities and
public land. Specifically, the bill:
• Prohibits a sports franchise from constructing or improving a facility on land that is leased from the state or
local government.
• Requires that the lease or sale of public land to a sports franchise for a sports facility must be at fair market
value.
• Specifies that a facility that is owned, operated or leased by a sports franchise is not tax exempt.
• Provides that any new or amended contract include a provision requiring the sports franchise to pay off any
outstanding governmental debt in the event that the sports franchise stops using the facility.

The bill deletes subparagraph 125.35(1)(b)3., F.S., relating to the lease of professional sports franchise
facilities, including commercial property that is related to the facilities, that are financed by certain tax
revenues.

The bill specifies that lawful contracts entered into before July 1, 2020, will not be affected and that the
provisions of the bill will not be construed to impair existing contracts without the consent of the parties.

The bill may have an indeterminate fiscal impact on both the state and local governments.

The bill has an effective date of July 1, 2020.
This document does not reflect the intent or official position of the bill sponsor or House of Representatives.
STORAGE NAME: h1369d.C0M.D0CX
DATE: 2/10/2020
FULL ANALYSIS

I. SUBSTANTIVE ANALYSIS

A. EFFECT OF PROPOSED CHANGES:
State Incentives for Professional Sports Franchise Facilities

Professional Sports Franchise Program (s. 288.1162, F.S.)

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. 1 Local governments, non-profit entities, 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. 2 No more than eight facilities can be certified under this program at one time. 3

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:

·~r
~--.,.,
. ..
~...
,., .
. .

Cettlftcatton QMe
~;
Lease
' ...
Dete
Hard Rock Stadium (formerly Miami, Miami 06/1994 99 yr.,
Sun Life, Land Shark, Dolphin, S. FL. Stadium Corp., Marlins4 06/2023 issued
Pro Player, Joe Robbie) May 1993 1987

TIAA Field (previously EverBank Jacksonville, Jacksonville 06/1994 2030 $51,333,436
Field) City of Jacksonville, Jaguars 05/2024
April 1994

Tropicana Field St. Petersburg, Tampa Bay 07/1995 2027 $49,166,765
City of St. Petersburg, Rays 06/2025
May 1995
Amelie Arena (previously Tampa, Tampa Bay 09/1995 2025 $48,833,431
Tampa Bay Times Forum) Tampa Bay Sports Auth., Lightning 08/2025
July 1995

BB&T Center Sunrise, Florida 08/1996 2028 $47,000,094
Broward County, Panthers 07/2026
June 1996
Raymond James Stadium Tampa, Tampa Bay 01/1997 2028 $46,166,759
Hillsborough County, Buccaneers 12/2026
November 1996
American Airlines Arena Miami, Miami Heat 03/1998 2030 $43,666,754
BPL, LTD, 03/2028
February 1998
Amway Center Orlando, Orlando 02/2008 2036 $24,000,048
City of Orlando, Magic 01/2038
November 2007
(Information from the Department of Revenue 5 and OPPAGA 6) TOTAL: $363,334,060

1
S. 288.1162, F.S.
2
S. 212.20(6)(d)6.b., F.S.
3
S. 288.1162(6), F.S.
4
The Marlins franchise relocated from Sun Life Stadium to Marlins Park in 2012.
5
Email from Lynne Moeller, Office of Legislative & Cabinet Services, Department of Revenue, Pro Sports summary by fiscal year as
of 1-31-20 (Jan. 24, 2020).
6
OPPAGA, Report No. 17-13, Florida Economic Development Program Evaluations-Year 5, p. 56 (Dec. 28, 2017).
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DATE: 2/10/2020
Spring Training Baseball Franchises Program (s. 288.11621, F.S.)

The Spring Training Baseball Franchise incentive is the state's funding mechanism to attract and retain
facilities for Major League Baseball (MLB) spring training in Florida. Qualified applicants are eligible for
up to $500,000 annually for up to 30 years. These dollars are typically pledged with designated Tourist
Development Tax revenue and other local government resources to secure bonds to fund the
acquisition, construction, reconstruction or renovation of spring training facilities.

In 1991, the law establishing incentives to attract professional franchises to the state was significantly
revised and expanded to include an incentive for spring training baseball franchises. Certification
criteria for the spring training franchise incentive included a commitment by the franchise to use the
facility for fifteen years, projections for paid attendance (at least 50,000 annually), demonstration of the
financial capability to provide more than one-half of the costs incurred or related to the improvement or
development of the facility, proof that the facility was located within 20 miles of an interstate or other
limited-access highway system, and a requirement that the county levy a four-percent Tourist
Development Tax, with 87.5% of the proceeds dedicated for the construction of the complex. 7 This law
also limited the total number of awards for both the professional sports franchises and new spring
training franchises to six, and prohibited facilities from receiving more than one award.

In 1999, the Legislature extended the use of the Professional Sports and Additional Professional Sports
Tourist Development Taxes to fund debt service on spring training franchise facilities. 8 At that point, no
local governments had applied for the incentive. In 2000, the law was amended to limit the incentive to
"retained" rather than "new'' spring training franchises; delete the requirement that the facility be located
within 20 miles of an interstate or other limited-access highway system; establish ranking criteria for
awards; 9 and limit the awards to publicly-owned facilities, authorized for in-state relocations. 10

In 2006, the number of authorized awards for spring training facilities was expanded to ten, with the
imposition of additional certification criteria. Counties were authorized to use up to $2 million of their
local option half-cent sales tax revenues annually to fund facilities for new or retained professional
sports franchises and facilities for retained spring training franchises. 11 Finally, the scope of the
incentive was expanded in 2010, to include any spring training franchise rather than only "retained"
spring training franchises, 12 and by August 2012, ten facilities were certified for the incentive. 13

Currently, under s. 218.64(3), F.S., counties may use up to $3 million annually of the local government
half-cent sales tax allocated to that county for a number of purposes, including, as specified ins.
218.64(3)(a), F.S., "funding a certified applicant as a facility for a new or retained professional sports
franchise under s. 288.1162, F.S., or a certified applicant as defined ins. 288.11621, F.S., for a facility
for a spring training franchise." 14

Before certifying an applicant to receive state funding for a facility for a spring training franchise, the
Department of Economic Opportunity (DEO) must verify that 15 :
• The applicant is responsible for the acquisition, construction, management, or operation of the
facility for a spring training franchise or holds title to the property on which the facility for a
spring training franchise is located.

7
Ch. 91-274, Laws of Fla.
8
Ch. 99-287, Laws of Fla.
9
EDR, Return on Investment for the Florida Sports Foundation Grants and Related Programs, p. 21. (January 2015).
10
Ch. 2000-186, Laws of Fla.
11
Ch. 2006-262, Laws of Fla.
12
Ch. 2010-140, Laws of Fla. (with provisions relating to the spring training incentive were transferred from s.288.1162 to newly
created s. 288.11621, F.S.)
13
EDR, Return on Investment for the Florida Sports Foundation Grants and Related Programs, p. 21.
14
S. 218.64(3), F.S.
15
S. 288.11621(2)(a), F.S.
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• The applicant has a certified copy of a signed agreement with a spring training franchise for the
use of the facility for a term of at least 20 years. The agreement also must require the franchise
to reimburse the state for state funds expended by an applicant under this section if the
franchise relocates before the agreement expires. The agreement may be contingent on an
award of funds under this section and other pre-conditions.
• The applicant has made a financial commitment to provide 50 percent or more of the funds
required by an agreement for the acquisition, construction, or renovation of the facility for a
spring training franchise. The commitment may be contingent upon an award of funds under this
section and other pre-conditions.
• The applicant demonstrates that the facility for a spring training franchise will attract a paid
attendance of at least 50,000 annually to the spring training games.
• The facility for a spring training franchise is located in a county that levies a tourist development
tax under s. 125.0104, F.S.

Each applicant certified since July 1, 2010, enters into an agreement that: 16
• Specifies the amount of the state incentive funding to be distributed.
• States the criteria that the certified applicant must meet in order to remain certified.
• States that the certified applicant is subject to decertification if the certified applicant fails to
comply with this section or the agreement.
• States that DEO may recover state incentive funds if the certified applicant is decertified.
• Specifies information that the certified applicant must report to DEO.
• Includes any provision deemed prudent by DEO.

A certified applicant may use funds provided under s. 212.20(6)(d)6.b., F.S., to:17
• Serve the public purpose of acquiring, constructing, reconstructing, or renovating a facility for a
spring training franchise.
• Pay or pledge for the payment of debt service on, or to fund debt service reserve funds,
arbitrage rebate obligations, or other amounts payable with respect thereto, bonds issued for
the acquisition, construction, reconstruction, or renovation of such facility, or for the
reimbursement of such costs or the refinancing of bonds issued for such purposes.
• Assist in the relocation of a spring training franchise from one unit of local government to
another only if the governing board of the current host local government by a majority vote
agrees to relocation.

Additionally, state funds awarded to a certified applicant for a facility for a spring training franchise may
not be used to subsidize facilities that are privately owned, maintained, and used only by a spring
training franchise. 18 The expenditure of state funds distributed to a certified applicant, must begin within
48 months after the initial receipt of the state funds, with the additional requirement of the construction
of, or capital improvements to, a spring training facility being completed within 24 months after the
project's commencement. 19

Retention of MLB Spring Training Baseball Franchises Program (s. 288.11631, F.S.)

Section 288.11631, F.S., authorizes local governments that partner with a spring training baseball
franchise to apply for certification from DEO to receive state distributions for the purpose of renovating
or constructing a spring training baseball facility. 20

Certified applicants receive a distribution from state sales tax revenue of up to $83,333 per month for
20 years for a facility used by a single spring training baseball franchise or up to $166,667 per month

16
S. 288. l 1621(2)(c), F.S.
17
S. 288. l l 621(3)(a), F.S.
18
S. 288.l l62I(3)(b), F.S.
19
S. 288.l 1621(3)(d)(3), F.S.
20
S. 288.11631(1}-(2), F.S.
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for 25 years for a facility used by more than one spring baseball training franchise. 21 The amount of
state incentive funding per certified applicant may not exceed $20 million if the applicant's facility is
used by one franchise or $50 million if the applicant's facility is used by more than one franchise. 22

Section 288.11631, F.S., which became law in 2013, mostly mirrors the provisions of s. 288.11621,
F.S. The differences between the sections include:
• The agreement must be for a minimum of the length of the term of the bonds issued for the
construction or renovation of the facility, or if no such bonds are issued, at least 20 years.
• A new agreement may not be signed unless the previous agreement, if any, is within 4 years of
expiring.
• There is no limit to the number of applicants which may be certified.
• The net increase in recreational areas represented by the facility is not considered in the
evaluation process.
• The amount of state funding provided in the agreement between the applicant and DEO may
not exceed $20 million or, if the applicant hosts 2 or more franchises, $50 million.
• Funds provided as a result of certification under this section may not be used to acquire or
reconstruct a facility, or to assist a franchise in moving from one local government to another.

Spring Training Facilities for Major League Baseball Franchises:

r,~i,
Team
Detroit Tigers Joker
Marchant Lakeland 15 years
·~
.~
March 2001
February 2016
2016 $7,000,020

Stadium January 2001 $7 million
s. 288.1162, F.S.
Houston Osceola Kissimmee $41,667 March 2001 2016 $7,500,060
Astros 24 County Osceola County 15 years February 2016
Stadium January 2001 $7.5 million
s. 288.1162, F.S.
Los Angeles Holman Vero Beach $41,667 March 2001 No lease $9,458,409
Dodgers 23 Stadium (now Indian River County 30 years February 2031
Dodgertown) January 2001 $15 million
s. 288.1162, F.S.
Philadelphia Spectrum Field Clearwater $41,667 March 2001 2023 $9,458,409
Phillies (formerly Clearwater 30 years February 2031
Bright House December 2006 $15 million
Field s. 288.1162, F.S.
Toronto Blue Florida Auto Dunedin $41,667 March 2001 2017 $9,458,409
Jays Exchange Dunedin 20 years February 2023
Stadium January 2001 $10 million
s. 288.1162, F.S.
Baltimore Ed Smith Sarasota $41,667 March 2007 2039 $6,458,385
Orioles Stadium Sarasota 30 years March 2037
January 2006 $15 million
s. 288.1162, F.S.

21
S. 212.20(6)(d)(6)(e), F.S.
22
S. 288. l 1631(2)(c), F.S.
23
This facility, now known as Historic Dodgertown, was previously occupied by the Los Angeles Dodgers until the Dodgers moved
their spring training facility to Arizona in 2008. The facility hosts local sports events that bring in amateur, high school, collegiate, and
international sports teams. There is not currently a Major League Baseball team based at the facility, and it is privately owned.
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New York Mets Tradition Field Port St. Lucie $21,985 March 2007 2016 $2,660,241
St. Lucie County 30 years March 2017
December 2006 $7.9 million
s. 288.1162, F.S.
Pittsburgh McKechnie Bradenton $41,667 March 2007 2037 $6,458,385
Pirates Field Bradenton 30 years March 2037
December 2006 $15 million
s. 288.1162, F.S.
Tampa Bay Charlotte Port Charlotte $41,667 March 2007 2028 $6,458,385
Rays Sports Park Charlotte County 30 years March 2037
December 2006 $15 million
s. 288.1162, F.S.
Minnesota Hammond Ft. Myers $41,667 July 2013 2045 $3,291,693
Twins Stadium Lee County 30 years June 2043
August 2012 $15 million
s. 288.11621, F.S.
Houston Ballpark of the West Palm Beach $166,667 October 2016 2048 $6,666,680
Astros 24 Palm Beaches Palm Beach County 25 years September 2041
(Recertification) October 2015 $50 million
s. 288.11631, F.S.
Washington See above See above See above See above See above See above
Nationals24
Detroit Tigers Joker Lakeland $83,333 November 2016 2036 $3,249,987
(Recertification) Marchant Lakeland 20 years October 2036
Stadium December 2015 $20 million
s. 288.11631, F.S.
New York George M. Tampa $83,333 January 2017 2046 $3,083,321
Yankees Steinbrenner Tampa Sports 20 years December 2036
Field Authority $20 million
December 2016
s. 288.11631, F.S.
New York Mets First Data Field Port St. Lucie $83,333 June 2017 2042 $2,666,656
(Recertification) (formerly St. Lucie County 20 years May 2037
Tradition Field) March 2017 $20 million
s. 288.11631, F.S.
Atlanta Braves CoolToday City of North Port $83,333 January 2018 unknown $2,083,325
Park US Bank, as Trustee 20 years December 2037
November 2017 $20 million
s. 288.11631, F.S.
Toronto Blue Florida Auto Dunedin $83,333 September 2018 unknown $1,416,661
Jays Exchange US Bank Corp. Trust 20 years August 2038
Stadium July 2018 $20 million
s. 288.11631, F.S.
(Information from the Department of Revenue25 and OPPAGA 26) TOTAL: $87,369,026

Sports Development Program (s. 288.11625, F.S.)

The Sports Development 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 DEO. In order to receive funding under the program, DEO must first recommend the

24
The Houston Astros moved their spring training operations from Osceola County to Palm Beach County in 2015. They share the
newly certified facility with the Washington Nationals.
25
Email from Lynne Moeller, Office of Legislative & Cabinet Services, Department of Revenue, Pro Sports summary by fiscal year as
of 1-31-20 (Jan. 24, 2020).
26
OPPAGA, Report No. 17-13, Florida Economic Development Program Evaluations-Year 5, p. 54-55 (Dec. 28, 2017).
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DATE: 2/10/2020
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.

Eligible professional sport franchises 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. 27

Motorsports Entertainment Complex Certification (s. 288.1171, F.S.)

Section 288.1171, F.S., provides the procedure by which a local government may receive certification
for a motorsport entertainment complex in order to use $2 million of Local Government Half-cent Sales
Tax Program funds to pay for certain costs associated with the complex. A motorsport entertainment
complex is defined as a closed-course racing facility. As of January 2020, no local government has
ever been certified for the motorsport entertainment complex program. 28

DEO is responsible for screening and certifying applicants to allow them to use program funds for these
purposes. An applicant must be a unit of local government that either owns a motorsport entertainment
complex or owns the land on which a complex is located.

Before certifying an applicant as a motorsport entertainment complex, the DEO must first verify that:
• The local government holds title to the land on which the complex is located or holds title to the
complex; and
• The local government in which the complex is located has certified by resolution after a public
hearing that the application for certification serves a public purpose.

DEO determines an applicant meets eligibility requirements, it must notify the applicant and the
Department of Revenue (DOR) of the applicant's certification through an official letter. If an applicant
does not meet the requirements, the DEO must notify the applicant within 10 days of such
determination. An applicant may not receive more than one certification. There are no limitations on the
number of applicants that may be certified.

An applicant certified as a motorsport entertainment complex may only use funds provided from the
Local Government Half-cent Sales Tax Program for the public purposes of paying for the construction,
reconstruction, expansion, or renovation of a motorsport entertainment complex, including related
transportation and other infrastructure improvements; paying debt service reserve funds, arbitrage
rebate obligations, or other amounts payable with respect to bonds issued for such activities; or
refinancing the bonds. Additional eligible uses include paying for advertising and promotional activities
related to the motorsport entertainment complex or the municipality or county in which the complex is
located, if such activities are designed to increase tourism or promote economic development of the
municipality or county.

27
Email from Karis Lockhart, Deputy Director of Legislative Affairs, DEO, RE: Sports Development Program (Jan. 21, 2020).
2s Id.
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Effect of the Bill

The bill repeals s. 288.1162, F.S., relating to Professional Sports Franchises, s. 288.11621, F.S.,
relating to Spring Training Baseball Franchises, s. 288.11625, F .S., relating to Sports Development, s.
288.11631, F.S., relating to Retention of MLB Spring Training Baseball Franchises, ands. 288.1171,
F.S., relating to Motorsports Entertainment Complexes.

Public Financing and Sports Facilities29

Many stadiums and sports facilities are financed with tax-exempt bonds, which are issued through state
and local governments or other public entities such as regional sports authorities. Tax-exempt bonds
allow issuers to take on debt at a lower interest rate relative to taxable bonds. In turn, the underwriter is
able to get a better return on their investment because their earnings are exempt from federal income
tax. The maturity structure for tax-exempt bonds is typically 20 to 30 years. Tax-exempt bonds are
secured by pledged revenues which are usually generated from a tax or fee. The most commonly
pledged revenues for sports facilities bonds are tourist development taxes, ad valorem taxes, and sales
taxes, including local option sales taxes. Annual sales tax distributions for sports facilities financing are
also used to secure tax-exempt bonds. In a few instances, the bonds have been issued as general
obligation debt, which means that all revenues of the issuer, regardless of the source, may be used to
pay debt service, if needed. Rarely, proceeds from land sales or other non-ad-valorem revenues are
also used.

The issuance of bonds provides a large amount of cash up-front that can be used for capital
investment. However, most of the bonds are issued with 30-year maturity structures, which mean that a
large portion of the state funding is actually used to pay the interest cost of the debt. For example, a
certified professional sports facility in Florida that receives $2 million a year for 30 years pledges this
$60 million to pay debt service on $30 million of bonds issued. So, the state's $60 million investment
results in $30 million of up-front cash that can be used to construct or renovate a facility. The state's
investment for spring training facilities is significantly less. In most cases, certified spring training
facilities receive $0.5 million each year for 30 years, which typically results in about $7.5 million of cash
available for the state's $15 million investment. In both programs, the amount of cash available varies
up or down slightly by facility, depending on what interest rates were at the time bonds were issued.

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 for the professional sports franchise facility incentive programs.

Effect of the Bill

The bill amends s. 212.20, F.S., to specify that applicants who were not certified as a sports facility
under the spring training franchises or the new or retained professional sports franchise programs
before July 1, 2020, may not receive monthly distributions from DOR The bill also deletes the provision
authorizing distributions under the sports development program.

Tourist Development Taxes (s. 125.0104, F.S.)

Section 125.0104, F .S., authorizes the levy of five separate local option taxes on rental charges subject
to the transient rentals tax under s. 212.03, F.S., to be used in various ways to promote tourism within
the county. Generally, the revenues from these levies may be used for capital construction of tourist-

29
EDR, Return on Investment for the Florida Sports Foundation Grants and Related Programs, p.28 (January 1, 2018).
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related facilities, tourist promotion, and beach and shoreline maintenance; however, the authorized
uses vary according to the particular levy. There is a prohibition against any county levying a
convention development tax from levying tourist development taxes at a rate of more than 2 percent;
however, this prohibition does not apply to a county's levy of the Professional Sports Franchise Facility
Tax and Duval County's levy of the Additional Professional Sports Franchise Facility Tax.

During the 2019-20 state fiscal year, 63 of the eligible 67 counties currently levying one or more of the
tourist development taxes will realize an estimated $1 billion in revenue. 30

Professional Sports Franchise Facility TOT (s. 125.0104(3)(1), F.S.)

In addition to any other tourist development tax imposed, a county may levy up to an additional 1
percent tax on the total consideration charged for transient rental transactions. The tax is levied
pursuant to an ordinance adopted by a majority vote of the county's governing body. The tax proceeds
are used to pay the debt service on bonds issued to finance professional sports franchise facilities,
retained spring training franchise facilities, and convention centers. In addition, these proceeds can be
used to promote tourism in the State of Florida, nationally and internationally.

The provisions ins. 125.0104(4)(a)-(d), F.S., regarding the preparation of the county tourist
development plan, are not applicable to this tax. In addition, the provision ins. 125.0104(3)(b), F.S.,
that prohibits any county authorized to levy a convention development tax from levying more than the 2
percent tourist development tax is not applicable to this tax.

During the 2019-20 state fiscal year, 44 of the eligible 67 counties currently levying this tax will realize
an estimated $183 million in revenue. 31

Additional Professional Sports Franchise Facility TOT (s. 125.0104(3)(n), F.S.)

The Additional Professional Sports Franchise Facility Tax may be levied at a rate up to 1 percent by a
majority plus one vote of the governing board of the county. The tax can only be levied in counties that
have imposed the Professional Sports Franchise Facility Tourist Development Tax. Generally, the
proceeds can be used to pay debt service on bonds for the construction or renovation of professional
sports franchise facilities, spring training facilities of professional sports franchises, and to promote and
advertise tourism.

During the 2019-20 state fiscal year, 30 of the eligible 65 counties currently levying this tax will realize
an estimated $147 million in revenue. 32

Effect of the Bill

The bill amends paragraphs 125.0104(3)(1) & (n), F.S., to disallow a county from using the additional 1-
percent taxes on certain costs related to the planning, design, or financing of a professional sports
franchise facility or a retained spring training franchise facility.

The bill creates paragraph 125.0104(5)(f), F.S., to provide that Tourist Development Tax revenues may
not be used to finance or construct any aspect of a facility that is or will be used by a sports franchise
after July 1, 2020. The bill clarifies that lawful contracts entered into before this date are not affected.

30
EDR, 2019 Local Government Financial Information Handbook, p. 256.
31
Id. at 267.
32
Id. at 273.
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Convention Development Taxes (s. 212.0305, F.S.) 33

Certain counties or sub-parts of counties are authorized to levy convention development taxes on
transient rental transactions. Duval County (as a county consolidated with a municipality), Miami-Dade
County (as a charter county), and parts of Volusia County currently levy a convention development tax.
Three of the five available levies are applicable to separate taxing districts in Volusia County. The
levies may be authorized pursuant to an ordinance enacted by the county's governing body, and the
tax rates are either two or three percent depending on the particular levy. Generally, the revenues may
be used for construction of convention centers and other tourist-related facilities as well as tourist
promotion; however, the authorized uses vary by levy.

In fiscal year 2019-2020, the three counties levying a convention development tax will realize an
estimated $68.5 million in revenue. 34

Effect of the Bill

The bill creates s. 212.0305(6), F.S., to provide that Convention Development Tax revenues may not
be used to finance or construct any aspect of a facility that is or will be used by a sports franchise after
July 1, 2020. The bill clarifies that lawful contracts entered into before this date are not affected.

Local Government Half-cent Sales Tax (s. 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. 35 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. 36

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.

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.

Effect of the Bill

The bill amends subsections 218.64(2) & (3), F.S., removing the authority for local governments to
spend the half-cent sales tax on a motorsport entertainment complex or for reimbursements under the

33
Id. at 119-120.
34
Id. at 121.
35
Ch. 82-154, Laws of Fla.
36
EDR, 2019 Local Government Financial Information Handbook, p. 57.
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sports development program. The bill also specifies that a county can only use the half-cent sales tax
on a new or retained professional sports franchise or spring training franchise facility that is certified
prior to July 1, 2020.

Use of Government Land

Tax-exempt Status for Certain Infrastructure

Section 196.199, F.S., generally exempts all property of the state that is used for governmental
purposes from ad valorem taxation. Additionally, property that is owned by the government but leased
to a nongovernmental lessee is exempt from ad valorem taxation and the intangible tax when the
lessee serves or performs a governmental, municipal, or public purpose or function, including:

... The use by a lessee, licensee, or management company of real property or a portion thereof
as a convention center, visitor center, sports facility with permanent seating, concert hall, arena,
stadium, park, or beach is deemed a use that serves a governmental, municipal, or public
purpose or function when access to the property is open to the general public with or without a
charge for admission ... 37

Local Government Authority to Sell and Lease Land

Florida law provides broad authority to cities and counties to conduct governmental functions and
render governmental services, except when expressly prohibited by law. 38 Such authority includes, but
is not limited to, certain statutorily enumerated powers and all implied authority necessary to effectively
exercise those express powers, including the authority to contract and to purchase, lease, sell, and
exchange real or personal property. 39

Counties and municipalities may also offer private entities below-market rate leases or deeds for real
property for economic development purposes.

County Authority to Lease a Professional Sports Franchise

Section 125.35, F.S., authorizes the board of county commissioners to sell or lease real property
belonging to the county under certain circumstances. Furthermore, counties are expressly authorized
to:

Lease a professional sports franchise facility financed by revenues received pursuant to s.
125.0104 ors. 212.20 which may include commercial development that is ancillary to the sports
facility if the ancillary development property is part of or contiguous to the professional sports
franchise facility. The board's authority to lease the above described ancillary commercial
development in conjunction with a professional sports franchise facility lease applies only if at
the time the board leases the ancillary commercial development, the professional sports
franchise facility lease has been in effect for at least 1O years and such lease has at least an
additional 10 years remaining in the lease term.

Alternatively, counties are authorized to adopt an ordinance prescribing the disposition standards and
procedures for the county to use when selling or leasing property owned by the county. 40 At a
minimum, such standards and procedures must provide for:
• Establishment of competition and qualification standards upon which disposition will be
determined.

37
S. 196.012(6), F.S.
38
See ss. 125.01 and 166.021, F.S.
39
Ss. 125.01(3)(a) and 166.021(1), F.S. See also Art. VIII, s. 2, FLA. CONST.
40
S. 125.35(3), F.S.
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• Reasonable public notice of the intent to consider disposition of county property and the
availability of copies of the standards. Reasonableness of the notice is to be determined by the
efficacy and efficiency of the means of communication used.
• Identification of the form and manner by which an interested person may acquire county
property.
• Types of negotiation procedures applicable to the selection of a person to whom county
properties may be disposed.
• The manner in which interested persons will be notified of the board's intent to consider final
action at a regular meeting of the board on the disposition of a property and the time and
manner for making objections.
• Adherence in the disposition of real property to the governing comprehensive plan and zoning
ordinances.

Effect of the Bill

The bill defines the following terms:

"Facility" means a stadium, arena, or other structure used by a sports franchise to host games
or events, or any directly related property or structure, including practice facilities, offices, restaurants,
concessions, retail or lodging facilities, onsite and offsite parking lots, garages, and other properties.

"Fair market value" means a negotiated price of at least the average of the values contained in
two independent appraisals, performed.by appraisers that meet certain minimum qualifications.

"Sports franchise" means a person or persons, sole proprietorship, corporation, limited liability
company, partnership, or association that has been granted the contractual right to own or operate a
professional sports team, or host a professional sporting event, in a specified location.

The bill creates s. 288.1163, F.S., providing for certain conditions relating to sports franchise facilities
and public land. Specifically, the bill:
• Prohibits a sports franchise from constructing or improving a facility on land that is leased from
the state or local government.
• Requires that the lease or sale of public land to a sports franchise for a sports facility must be at
fair market value.
• Specifies that a facility that is owned, operated or leased by a sports franchise is not tax
exempt.
• Provides that any new or amended contract include a provision requiring the sports franchise to
pay off any outstanding governmental debt in the event that the sports franchise stops using the
facility.
• Specifies that these provisions will not apply retroactively to existing contracts.

The bill deletes subparagraph 125.35(1)(b)3., F.S., authorizing counties to lease professional sports
franchise facilities that are financed by revenues pursuant toss. 125.0104 ors. 212.20, F.S.

The bill provides that any applications for certification under ss. 288.1162, 288.11621, 288.11625,
288.11631, or 288.1171, F.S., will be rescinded when the bill takes effect on July 1, 2020. Applicants
that were certified before this date are not affected by the bill, and their contracts remain in full force
and effect.

8. SECTION DIRECTORY:
Section 1 Amends s. 125.0104, F.S.; deleting provisions authorizing a county to impose a
specified tax for debt service on bonds relating to sports franchise facilities and

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professional sports franchises; prohibiting revenues generated by specified county taxes
to be used for sports franchises after a certain date.

Section 2 Amends s. 125.35, F.S.; prohibiting a county from leasing specified professional sports
franchise facilities; prohibiting revenues generated by convention development taxes to
be used for sports franchises after a certain date.

Section 3 Amends s. 212.0305, F.S.; prohibiting revenues collected after a specified date to be
used for sports franchise activities.

Section 4 Amends s. 212.205, F.S.; conforming a cross-reference.

Section 5 Amends s. 212.20, F.S.; conforming provisions to changes made by the act; removing a
provision that distributes specified sales tax revenues to certain applicants.

Section 6 Amends s. 218.64, F.S.; conforming provisions to changes made by the act.

Section 7 Amends s. 288.0001, F.S.; deleting a provision requiring the Office of Economic and
Demographic Research and the Office of Program Policy Analysis and Government
Accountability to provide an analysis regarding a sports development program.

Section 8 Repeals ss. 288.1162, 288.11621, 288.11625, 288.11631, and 288.1171, F.S., relating
to professional sports franchises and their duties, spring training baseball franchises,
sports development, and the retention of Major League Baseball spring training baseball
franchises, respectively.

Section 9 Creates s. 288.11633, F.S.; prohibiting the lease of public lands for certain purposes
related to sports franchises and their facilities; requiring the lease of a facility on public
lands for certain purposes to be at fair market value; requiring a sports franchise to
repay specified debt incurred by a local government related to construction of facilities;
defining the terms "facility," "fair market value," and "sports franchise".

Section 10 Provides applicability.

Section 11 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:
See Fiscal Comments.

B. FISCAL IMPACT ON LOCAL GOVERNMENTS:

1. Revenues:
See Fiscal Comments.

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2. Expenditures:
See Fiscal Comments.

C. DIRECT ECONOMIC IMPACT ON PRIVATE SECTOR:
The bill constrains state and local government funding mechanisms for certain private sector sports
franchises and facilities.

D. FISCAL COMMENTS:
There is an indeterminate impact to state and local government expenditures because the bill
constrains state and local government funding mechanisms for certain private sector sports franchises
and facilities which reduce such expenditures in the future. Additionally, restriction of uses of certain
local option taxes may result in fewer future levies of those taxes.

Ill. COMMENTS

A. CONSTITUTIONAL ISSUES:

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

2. Other:
None.

B. RULE-MAKING AUTHORITY:
None.

C. DRAFTING ISSUES OR OTHER COMMENTS:

IV. AMENDMENTS/ COMMITTEE SUBSTITUTE CHANGES

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

HB 1369 2020

1 A bill to be entitled
2 An act relating to sports franchises and facilities;
3 amending s. 125.0104, F.S.; deleting provisions
4 authorizing a county to impose a specified tax for
5 debt service on bonds relating to sports franchise
6 facilities and professional sports franchises;
7 prohibiting revenues generated by specified county
8 taxes to be used for sports franchises after a certain
9 date; amending s. 125.35, F.S.; prohibiting a county
10 from leasing specified professional sports franchise
11 facilities; prohibiting revenues generated by
12 convention development taxes to be used for sports
13 franchises after a certain date; s. 212.0305, F.S.;
14 prohibiting revenues collected after a specified date
15 to be used for sports franchise activities; amending
16 s. 212.205, F.S.; conforming a cross-reference;
17 amending s. 212.20, F.S.; conforming provisions to
18 changes made by the act; removing a provision that
19 distributes specified sales tax revenues to certain
20 applicants; amending s. 218.64, F.S.; conforming
21 provisions to changes made by the act; amending s.
22 288.0001, F.S.; deleting a provision requiring the
23 Office of Economic and Demographic Research and the
24 Office of Program Policy Analysis and Government
25 Accountability to provide an analysis regarding a

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HB 1369 2020

26 sports development program; repealing ss. 288.1162,
27 288 .11621, 288 .11625, 288 .11631, and 288 .1171, F. S.,
28 relating to professional sports franchises and their
29 duties, spring training baseball franchises, sports
30 development, and the retention of Major League
31 Baseball spring training baseball franchises,
32 respectively; creating s. 288.11633, F.S.; prohibiting
33 the lease of public lands for certain purposes related
34 to sports franchises and their facilities; requiring
35 the lease of a facility on public lands for certain
36 purposes to be at fair market value; requiring a
37 sports franchise to repay specified debt incurred by a
38 local government related to construction of
39 facilities; defining the terms "facility," "fair
40 market value," and "sports franchise"; providing
41 applicability; providing an effective date.
42
43 Be It Enacted by the Legislature of the State of Florida:
44
45 Section 1. Paragraphs (1) and (n) of subsection (3) of
46 section 125.0104, Florida Statutes, are amended, and a new
47 paragraph (f) is added to subsection (5) of that section, to
48 read:
49 125.0104 Tourist development tax; procedure for levying;
50 authorized uses; referendum; enforcement.-

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51 ( 3) TAXABLE PRIVILEGES; EXEMPTIONS; LEVY; RATE.-
52 ( l) In addition to any other tax which is imposed pursuant
53 to this section, a county may impose up to an additional 1-
54 percent tax on the exercise of the privilege described in
55 paragraph (a) by majority vote of the governing board of the
56 county in order to:
57 1. Pay the debt service on bonds issued to finance the
58 construction, reconstruction, or renovation of a professional
59 sports franchise facility, or the acquisition, construction,
60 reconstruction, or renovation of a retained spring training
61 franchise facility, either publicly owned and operated, or
62 publicly owned and operated by the owner of a professional
63 sports franchise or other lessee with sufficient ellpertise or
64 financial capability to operate such facility, and to pay the
65 planning and design costs incurred prior to the issuance of such
66 bonds.
67 1.-&.- Pay the debt service on bonds issued to finance the
68 construction, reconstruction, or renovation of a convention
69 center, and to pay the planning and design costs incurred prior
70 to the issuance of such bonds.
71 2.-3-. Pay the operation and maintenance costs of a
72 convention center for a period of up to 10 years. Only counties
73 that have elected to levy the tax for the purposes authorized in
74 subparagraph 1. subparagraph 2. may use the tax for the purposes
75 enumerated in this subparagraph. Any county that elects to levy

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76 the tax for the purposes authorized in subparagraph 1.
77 subparagraph 2. after July 1, 2000, may use the proceeds of the
78 tax to pay the operation and maintenance costs of a convention
79 center for the life of the bonds.
80 3.4-.- Promote and advertise tourism in the State of Florida
81 and nationally and internationally; however, if tax revenues are
82 expended for an activity, service, venue, or event, the
83 activity, service, venue, or event shall have as one of its main
84 purposes the attraction of tourists as evidenced by the
85 promotion of the activity, service, venue, or event to tourists.
86
87 The provision of paragraph (b) which prohibits any county
88 authorized to levy a convention development tax pursuant to s.
89 212.0305 from levying more than the 2-percent tax authorized by
90 this section, and the provisions of paragraphs (4) (a)-(d), shall
91 not apply to the additional tax authorized in this paragraph.
92 The effective date of the levy and imposition of the tax
93 authorized under this paragraph shall be the first day of the
94 second month following approval of the ordinance by the
95 governing board or the first day of any subsequent month as may
96 be specified in the ordinance. A certified copy of such
97 ordinance shall be furnished by the county to the Department of
98 Revenue within 10 days after approval of such ordinance.
99 (n) In addition to any other tax that is imposed under
100 this section, a county that has imposed the tax under paragraph

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101 (1) may impose an additional tax that is no greater than 1
102 percent on the exercise of the privilege described in paragraph
103 (a) by a majority plus one vote of the membership of the board
104 of county commissioners in order to7
105 1. Pay the debt service on bonds issued to finance:
106 a. The construction, reconstruction, or renovation of a
107 facility either publicly owned and operated, or publicly owned
108 and operated by the owner of a professional sports franchise or
109 other lessee with sufficient enpertise or financial capability
110 to operate such facility, and to pay the planning and design
111 costs incurred prior to the issuance of such bonds for a new
112 professional sports franchise as defined ins. 288.1162.
113 b. The acquisition, construction, reconstruction, or
114 renovation of a facility either publicly owned and operated, or
115 publicly owned and operated by the owner of a professional
116 sports franchise or other lessee with sufficient e1cpertise or
117 financial capability to operate such facility, and to pay the
118 planning and design costs incurred prior to the issuance of such
119 bonds for a retained spring training franchise.
120 -2--. promote and advertise tourism in the State of Florida
121 and nationally and internationally; however, if tax revenues are
122 expended for an activity, service, venue, or event, the
123 activity, service, venue, or event shall have as one of its main
124 purposes the attraction of tourists as evidenced by the
125 promotion of the activity, service, venue, or event to tourists.

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12 6
127 A couRty that ifflposes the tan authoriz:ed iR this paragraph may

128 Rot enpeRd aRy ad valorem tan reveRues for the acquisitioR,
129 coRstructioR, recoRstructioR, or reRovatioR of a facility for
130 which tan revenues are used pursuant to subparagraph 1. The
131 provision of paragraph (b) which prohibits any county authorized
132 to levy a convention development tax pursuant to s. 212.0305
133 from levying more than the 2-percent tax authorized by this
134 section shall not apply to the additional tax authorized by this
135 paragraph in counties which levy convention development taxes
136 pursuant to s. 212.0305(4) (a). Subsection (4) does not apply to
137 the adoption of the additional tax authorized in this paragraph.
138 The effective date of the levy and imposition of the tax
139 authorized under this paragraph is the first day of the second
140 month following approval of the ordinance by the board of county
141 commissioners or the first day of any subsequent month specified
142 in the ordinance. A certified copy of such ordinance shall be
143 furnished by the county to the Department of Revenue within 10
144 days after approval of the ordinance.
145 (5) AUTHORIZED USES OF REVENUE.-
146 (f) Beginning July 1, 2020, revenues collected pursuant to
147 this section may not be used to acquire, construct, extend,
148 enlarge, remodel, repair, improve, maintain, operate, finance,
149 refinance, make debt service payments for, or be used as
150 collateral, pledge, or capital contribution for any project or

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151 business arrangement involving a facility that is or will be
152 used by a sports franchise as defined ins. 288.11633. Nothing
153 in this paragraph impairs or affects the obligations or terms of
154 any lawful contract entered into before July 1, 2020.
155 Section 2. Paragraph (b) of subsection (1) of section
156 125.35, Florida Statutes, is amended to read:
157 125.35 County authorized to sell real and personal
158 property and to lease real property.-
159 ( 1)

160 (b) Notwithstanding paragraph (a), under terms and
161 conditions negotiated by the board, the board of county
162 commissioners may:
163 1. Negotiate the lease of an airport or seaport facility;
164 or
165 2. Modify or extend an existing lease of real property for
166 an additional term not to exceed 25 years, where the improved
167 value of the lease has an appraised value in excess of $20
168 million.-,..-.e-r
169 3. Lease a professional sports franchise facility financed
170 by revenues received pursuant to s. 125.0104 ors. 212.20 which
171 may include cofflfflercial development that is ancillary to the
172 sports facility if the ancillary development property is part of
173 or contiguous to the professional sports franchise facility. The
174 board's authority to lease the above described ancillary
175 cofflfflercial developfflent in conjunction with a professional sports

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17 6 franchise facility lease applies only if at the time the board
177 leases the ancillary coffiffiercial development, the professional
178 sports franchise facility lease has been in effect for at least
179 10 years and such lease has at least an additional 10 years
180 remaining in the lease term.
181 Section 3. Subsection (6) is added to section 212.0305,
182 Florida Statutes, to read:
183 212.0305 Convention development taxes; intent;
184 administration; authorization; use of proceeds.-
185 (6) Beginning July 1, 2020, revenues collected pursuant to
186 this section may not be used to acquire, construct, extend,
187 enlarge, remodel, repair, improve, maintain, operate, finance,
188 refinance, make debt service payments for, or be used as
189 collateral, pledge, or capital contribution for any project or
190 business arrangement involving a facility that is or will be
191 used by a sports franchise as defined ins. 288.11633. Nothing
192 in this subsection impairs or affects the obligations or terms
193 of any lawful contract entered into before July 1, 2020.
194 Section 4. Section 212.205, Florida Statutes, is amended
195 to read:
196 212.205 Sales tax distribution reporting.-By March 15 of
197 each year, each person who received a distribution pursuant to
198 s. 212.20 (6) (d) 6.b.-e. s. 212.20 (6) (d) 6.b. f. in the preceding
199 calendar year shall report to the Office of Economic and
200 Demographic Research the following information:

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201 (1) An itemized accounting of all expenditures of the
202 funds distributed in the preceding calendar year, including
203 amounts spent on debt service.
204 (2) A statement indicating what portion of the distributed
205 funds have been pledged for debt service.
206 (3) The original principal amount and current debt service
207 schedule of any bonds or other borrowing for which the
208 distributed funds have been pledged for debt service.
209 Section 5. Paragraph (d) of subsection (6) of section
210 212.20, Florida Statutes, is amended to read:
211 212.20 Funds collected, disposition; additional powers of
212 department; operational expense; refund of taxes adjudicated
213 unconstitutionally collected.-
214 (6) Distribution of all proceeds under this chapter and
215 ss. 202.18(1) (b) and (2) (b) and 203.01(1) (a)3. is as follows:
216 (d) The proceeds of all other taxes and fees imposed
217 pursuant to this chapter or remitted pursuant to s. 202 .18 ( 1) (b)
218 and ( 2) (b) shall be distributed as follows:
219 1. In any fiscal year, the greater of $500 million, minus
220 an amount equal to 4.6 percent of the proceeds of the taxes
221 collected pursuant to chapter 201, or 5.2 percent of all other
222 taxes and fees imposed pursuant to this chapter or remitted
223 pursuant to s. 202.18(1) (b) and (2) (b) shall be deposited in
224 monthly installments into the General Revenue Fund.
225 2. After the distribution under subparagraph 1., 8.9744

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22 6 percent of the amount remitted by a sales tax dealer located
227 within a participating county pursuant to s. 218.61 shall be
228 transferred into the Local Government Half-cent Sales Tax
229 Clearing Trust Fund. Beginning July 1, 2003, the amount to be
230 transferred shall be reduced by 0.1 percent, and the department
231 shall distribute this amount to the Public Employees Relations
232 Commission Trust Fund less $5,000 each month, which shall be
233 added to the amount calculated in subparagraph 3. and
234 distributed accordingly.
235 3. After the distribution under subparagraphs 1. and 2.,
236 0.0966 percent shall be transferred to the Local Government
237 Half-cent Sales Tax Clearing Trust Fund and distributed pursuant
238 to s. 218.65.
239 4. After the distributions under subparagraphs 1., 2., and
240 3., 2.0810 percent of the available proceeds shall be
241 transferred monthly to the Revenue Sharing Trust Fund for
242 Counties pursuant to s. 218.215.
243 5. After the distributions under subparagraphs 1., 2., and
244 3., 1.3653 percent of the available proceeds shall be
245 transferred monthly to the Revenue Sharing Trust Fund for
246 Municipalities pursuant to s. 218.215. If the total revenue to
247 be distributed pursuant to this subparagraph is at least as
248 great as the amount due from the Revenue Sharing Trust Fund for
249 Municipalities and the former Municipal Financial Assistance
250 Trust Fund in state fiscal year 1999-2000, no municipality shall

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251 receive less than the amount due from the Revenue Sharing Trust
252 Fund for Municipalities and the former Municipal Financial
253 Assistance Trust Fund in state fiscal year 1999-2000. If the
254 total proceeds to be distributed are less than the amount
255 received in combination from the Revenue Sharing Trust Fund for
256 Municipalities and the former Municipal Financial Assistance
257 Trust Fund in state fiscal year 1999-2000, each municipality
258 shall receive an amount proportionate to the amount it was due
259 in state fiscal year 1999-2000.
260 6. Of the remaining proceeds:
261 a. In each fiscal year, the sum of $29,915,500 shall be
262 divided into as many equal parts as there are counties in the
263 state, and one part shall be distributed to each county. The
264 distribution among the several counties must begin each fiscal
265 year on or before January 5th and continue monthly for a total
266 of 4 months. If a local or special law required that any moneys
267 accruing to a county in fiscal year 1999-2000 under the then-
268 existing provisions of s. 550.135 be paid directly to the
269 district school board, special district, or a municipal
270 government, such payment must continue until the local or
271 special law is amended or repealed. The state covenants with
272 holders of bonds or other instruments of indebtedness issued by
273 local governments, special districts, or district school boards
274 before July 1, 2000, that it is not the intent of this
275 subparagraph to adversely affect the rights of those holders or

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276 relieve local governments, special districts, or district school
277 boards of the duty to meet their obligations as a result of
278 previous pledges or assignments or trusts entered into which
279 obligated funds received from the distribution to county
280 governments under then-existing s. 550.135. This distribution
281 specifically is in lieu of funds distributed under s. 550.135
282 before July 1, 2000.
283 b. The department shall distribute $166,667 monthly to
284 each applicant certified before July 1, 2020, as a facility for
285 a new or retained professional sports franchise pursuant to s.
286 288.1162, Florida Statutes 2019. Up to $41,667 shall be
287 distributed monthly by the department to each applicant that was
288 certified before July 1, 2020, as a certified applicant as
289 defined ins. 288.11621, Florida Statutes 2019 for a facility
290 for a spring training franchise. However, not more than $416,670
291 may be distributed monthly in the aggregate to all certified
292 applicants for facilities for spring training franchises.
293 Distributions begin 60 days after such certification and
294 continue for not more than 30 years, except as otherwise
295 provided ins. 288.11621, Florida Statutes 2019. A certified
296 applicant identified in this sub-subparagraph may not receive
297 more in distributions than expended by the applicant for the
298 public purposes provided ins. 288.1162(5) ors. 288.11621(3)L
299 Florida Statutes 2019.
300 c. Beginning 30 days after notice by the Department of

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301 Economic Opportunity to the Department of Revenue that an
302 applicant has been certified as the professional golf hall of
303 fame pursuant to s. 288.1168 and is open to the public, $166,667
304 shall be distributed monthly, for up to 300 months, to the
305 applicant.
306 d. Beginning 30 days after notice by the Department of
307 Economic Opportunity to the Department of Revenue that the
308 applicant has been certified as the International Game Fish
309 Association World Center facility pursuant to s. 288.1169, and
310 the facility is open to the public, $83,333 shall be distributed
311 monthly, for up to 168 months, to the applicant. This
312 distribution is subject to reduction pursuant to s. 288.1169. A
313 lump sum payment of $999,996 shall be made after certification
314 and before July 1, 2000.
315 e. The department shall distribute up to $83,333 monthly
316 to each applicant that was certified before July 1, 2020, as a
317 certified applicant as defined ins. 288.11631, Florida Statutes
318 2019 for a facility used by a single spring training franchise,
319 or up to $166,667 monthly to each applicant that was certified
320 before July 1, 2020, as a certified applicant as defined ins.
321 288.11631, Florida Statutes 2019 for a facility used by more
322 than one spring training franchise. Monthly distributions begin
323 60 days after such certification or July 1, 2016, whichever is
324 later, and continue for not more than 20 years to each applicant
325 that was certified before July 1, 2020, as a certified applicant

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326 as defined ins. 288.11631, Florida Statutes 2019 for a facility
327 used by a single spring training franchise or not more than 25
328 years to each applicant that was certified before July 1, 2020,
329 as a certified applicant as defined ins. 288.11631, Florida
330 Statutes 2019 for a facility used by more than one spring
331 training franchise. A certified applicant identified in this
332 sub-subparagraph may not receive more in distributions than
333 expended by the applicant for the public purposes provided ins.
334 288.11631(3), Florida Statutes 2019.
335 f. Beginning 45 days after notice by the Department of
336 Eeonomie Opportunity to the Department of Revenue that an
337 applieant has been approved by the Legislature and eertified by
338 the Department of Economic Opportunity under s. 288.11625 or
339 upon a date speeified by the Department of Economic Opportunity
340 as provided under s. 288.11625(6) (d), the department shall
341 distribute each month an amount equal to one twelfth of the
342 annual distribution amount certified by the Department of
343 Economic Opportunity for the applicant. The department may not
344 distribute more than $7 million in the 2014 2015 fiscal year or
345 more than $13 million annually thereafter under this sub
346 subparagraph.
347 !...:_g. Beginning December 1, 2015, and ending June 30, 2016,
348 the department shall distribute $26,286 monthly to the State
349 Transportation Trust Fund. Beginning July 1, 2016, the
350 department shall distribute $15,333 monthly to the State

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351 Transportation Trust Fund.
352 7. All other proceeds must remain in the General Revenue
353 Fund.
354 Section 6. Subsections (2) and (3) of section 218.64,
355 Florida Statutes, are amended to read:
356 218.64 Local government half-cent sales tax; uses;
357 limitations.-
358 (2) Municipalities shall expend their portions of the
359 local government half-cent sales tax only for municipality-wide
360 programs, for reimbursing the state as required pursuant to s.
361 288.11625, or for municipality-wide property tax or municipal
362 utility tax relief. All utility tax rate reductions afforded by
363 participation in the local government half-cent sales tax shall
364 be applied uniformly across all types of taxed utility services.
365 ( 3) Subject to ordinances enacted by the majority of the
366 members of the county governing authority and by the majority of
367 the members of the governing authorities of municipalities
368 representing at least 50 percent of the municipal population of
369 such county, counties may use up to $3 million annually of the
370 local government half-cent sales tax allocated to that county if
371 the money provides funds for any of the following purposes:
372 (a) Funding an a certified applicant that was certified
373 before July 1, 2020, as a facility for a new or retained
374 professional sports franchise under s. 288.1162, Florida
375 Statutes 2019 or an applicant that was certified before July 1,

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376 2020, as a certified applicant as defined ins. 288.11621L
377 Florida Statutes 2019 for a facility for a spring training
378 franchise. It is the Legislature's intent that the provisions of
379 s. 288.1162, Florida Statutes 2019, including, but not limited
380 to, the evaluation process by the Department of Economic
381 Opportunity except for the limitation on the number of certified
382 applicants or facilities as provided in that section and the
383 restrictions set forth ins. 288.1162(8), Florida Statutes 2019,
384 shall apply to an application that was submitted for a facility
385 before July 1, 2020, applicaRt's facility to be funded by local
386 government as provided in this subsection.
387 (b) FuRdiRg a certified applicaRt as a "motorsport
388 eRtertaiRmeRt compleM," as provided for iR s. 288.1171. FuRdiRg
389 for each fraRchise or motorsport compleJf shall begiR 60 days
390 after certificatioR aRd shall coRtiRue for Rot more thaR 30
391 years.
392 (c) ReifflbursiRg the state as required uRder s. 288.11625.
393 Section 7. Paragraphs (b) and (e) of subsection (2) of
394 section 288.0001, Florida Statutes, are amended to read:
395 288.0001 Economic Development Programs Evaluation.-The
396 Office of Economic and Demographic Research and the Office of
397 Program Policy Analysis and Government Accountability (OPPAGA)
398 shall develop and present to the Governor, the President of the
399 Senate, the Speaker of the House of Representatives, and the
400 chairs of the legislative appropriations committees the Economic

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401 Development Programs Evaluation.
402 (2) The Office of Economic and Demographic Research and
403 OPPAGA shall provide a detailed analysis of economic development
404 programs as provided in the following schedule:
405 (b) By January 1, 2015, and every 3 years thereafter, an
406 analysis of the following:
407 1. The entertainment industry financial incentive program
408 established under s. 288.1254.
409 2. The entertainment industry sales tax exemption program
410 established under s. 288.1258.
411 3. VISIT Florida and its programs established or funded
412 under ss. 288.122, 288.1226, 288.12265, and 288.124.
413 4. The Florida Sports Foundation and related programs
414 established under ss. 288.1162, 288.11621, 288.1166, 288.1167,
415 288.1168, 288.1169, and under former ss. 288.1162 and 288.11621
416 and 288.1171.
417 (e) Beginning January 1, 2018, and every 3 years
418 thereafter, an analysis of the Sports Developffient Program
419 established under s. 288.11625.
420 Section 8. Sections 288.1162, 288.11621, 288.11625,
421 288.11631, and 288.1171, Florida Statutes, are repealed.
422 Section 9. Section 288.11633, Florida Statutes, is created
423 to read:
424 288.11633 Sports franchise facilities; lease or sale of
425 public land.-

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426 ( 1) Notwithstanding any other provision of law:
427 (a) A sports franchise may not construct, reconstruct,
428 renovate, or improve a facility on land leased from the state or
429 a political subdivision thereof.
430 (b) A lease of a facility on public land owned by the
431 state or a political subdivision to a sports franchise must be
432 at fair market value.
433 (c) A sale of public land owned by the state or a
434 political subdivision for a sports franchise to construct,
435 reconstruct, renovate, or improve a facility on such land must
436 be at fair market value.
437 (d) A facility that is owned, operated, or leased by a
438 sports franchise does not serve a tax-exempt purpose and is not
439 exempt from taxation.
440 (2) On or after July 1, 2020, a contract or agreement, or
441 a renewal of or an amendment to an existing contract or
442 agreement, entered into between the state or a political
443 subdivision and a sports franchise to fund the construction,
444 reconstruction, renovation, or improvement of a facility must
445 include a provision that requires the sports franchise to pay
446 any outstanding debt incurred by the state or political
447 subdivision to fund such construction, reconstruction,
448 renovation, or improvement if the sports franchise permanently
449 discontinues use of the facility.
450 ( 3) For purposes of this section, the term:

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451 (a) "Facility" means a stadium, arena, or other structure
452 used by a sports franchise to host games or events, or any
453 directly related property or structure, including practice
454 facilities, offices, restaurants, concessions, retail or lodging
455 facilities, onsite and offsite parking lots, garages, and other
456 properties.
457 (b) "Fair market value" means a negotiated price of at
458 least the average of the values contained in two independent
459 appraisals, performed by appraisers approved pursuant to s.
460 253.025(8).
461 ( c) "Sports franchise" means a person or persons, sole
462 proprietorship, corporation, limited liability company,
463 partnership, or association that has been granted the
464 contractual right to own or operate a professional sports team,
465 or host a professional sporting event, in a specified location.
466 (4) Nothing in this section impairs any lawful contract
467 entered into before July 1, 2020, without the consent of the
468 parties.
469 Section 10. All applications for certification pending
470 pursuant to s. 288.1162, s. 288.11621, s. 288.11625, s.
471 288.11631, or 288.1171, Florida Statutes, on July 1, 2020, are
472 rescinded. Applicants or projects that were certified before
473 July 1, 2020, and that continue to meet the criteria in effect
474 before July 1, 2020, remain in full force and effect. In
475 addition, any existing contracts or agreements authorized under

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476 any of these programs continue in full force and effect in
477 accordance with the statutory requirements in effect when the
478 contract or agreement was executed or last modified. However, no
479 further modifications, extensions, or waivers may be made or
480 granted relating to such contracts or agreements except
481 computations by the Department of Revenue of the income
482 generated by or arising out of any qualifying project.
483 Section 11. This act shall take effect July 1, 2020.

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HOUSE OF REPRESENTATIVES STAFF ANALYSIS
BILL#: CS/HB 1409 Pub. Rec./Records of Insurers/Department of Financial Services
SPONSOR(S): Oversight, Transparency & Public Management Subcommittee, Grant, M.
TIED BILLS: IDEN./SIM. BILLS: SB 1188

REFERENCE ACTION ANALYST STAFF DIRECTOR or
BUDGET/POLICY CHIEF

1) Insurance & Banking Subcommittee 13 Y, 0 N Salter Cooper

2) Oversight, Transparency & Public Management 14 Y, 0 N, As CS Toliver Smith
Subcommittee

3) Commerce Committee Salter Hamon K. 'cJ. If.
SUMMARY ANALYSIS
The Florida Constitution provides every person the right to inspect or copy any public record made or received in
connection with the official business of the legislative, executive, or judicial branches of government. However, the
Legislature may provide by general law for the exemption of records from the constitutional requirements.

Florida law provides for guaranty associations to ensure that policyholders of insolvent insurers are protected with
respect to insurance premiums paid and settlements of outstanding claims. Insurers are required to participate in the
guaranty associations as a condition to transacting insurance business in Florida. Currently, personal financial and
health information of a consumer, all underwriting files of a type customarily maintained by an insurer transacting
lines of insurance similar to lines transacted by the insurer, all personnel and payroll records of the insurer, and
consumer claim files are protected from disclosure when held by insurers or insurance company. However, when
insurance companies become insolvent, this information is no longer protected and can be disclosed.

The bill provides that the following records held by the Department of Financial Services (DFS) are confidential and
exempt from public records requirements:
• All personal financial and health information of a consumer, including a family member or dependent;
• Underwriting files of a type customarily maintained by an insurer transacting lines of insurance similar to
lines transacted by the insurer;
• Personnel and payroll records of the insurer;
• Consumer claim files;
• A U.S. Own Risk and Solvency Assessment (ORSA) summary report, a substantially similar ORSA
summary report, and any supporting documents submitted to the Office of Insurance Regulation (OIR);
• A corporate governance annual disclosure and any supporting documents submitted to (OIR); and
• Information received from the National Association of Insurance Commissioners, a governmental entity of
any state, the Federal Government, or a government of another nation which is confidential and is held by
Department of Financial Services for use relating to insurer solvency.

The bill provides specified circumstances under which the confidential and exempt information may be released.

The exemptions in the bill are subject to the Open Government Sunset Review Act and will be repealed on October
2, 2025 unless reviewed and reenacted by the Legislature.

The bill has no fiscal impact on state or local government revenue or expenditures.

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

Article I, s. 24(c) of the Florida Constitution, requires a two-thirds vote of the members present and voting
for final passage of a newly created or expanded public record or public meeting exemption. The bill
creates a public record exemption for certain information related to insurer solvency; thus, it requires a
two-thirds vote for final passage.

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

I. SUBSTANTIVE ANALYSIS

A. EFFECT OF PROPOSED CHANGES:
Current Situation

Public Records
The Florida Constitution provides every person the right to inspect or copy any public record made or
received in connection with the official business of the legislative, executive, or judicial branches of
government. 1 The Legislature, however, may provide by general law for the exemption of records from
the constitutional requirements. 2 An exemption must state with specificity the public necessity justifying
the exemption and may be no broader than necessary to accomplish the stated purpose of the law. 3 A
bill enacting an exemption must pass by a two-thirds vote of the members present and voting. 4

The Open Government Sunset Review Act (the Act) prescribes a legislative review process for newly-
created or substantially-amended public records or open meetings exemptions. 5 A public records or
open meetings exemption may be created or maintained only if it serves an identifiable public purpose.
An identifiable public purpose is served, if the exemption:
• Allows the state or its political subdivisions to effectively and efficiently administer a government
program, which administration would be significantly impaired without the exemption;
• Protects personal identifying information that, if released, would be defamatory or would
jeopardize an individual's safety; or
• Protects trade or business secrets. 6

The Act requires the automatic repeal of an exemption on October 2 of the fifth year after creation or
substantial amendment, unless the Legislature reenacts the exemption.

Guaranty Associations
Under federal law, insurance companies cannot file for bankruptcy. 7 Instead, they are either
rehabilitated or liquidated by their state of domicile. Florida law establishes the system for the treatment
of impaired or insolvent insurers 8 and sets up guaranty payments where necessary. 9 Florida law
provides for guaranty associations to ensure that policyholders of insolvent insurers are protected with
respect to insurance premiums paid and settlement of outstanding claims, up to limits provided by
law. 10 A guaranty association is a not-for-profit corporation created by law and directed to protect
policyholders from financial losses and delays in claim payments and settlements due to the insolvency
of an insurer. 11 Insurers are required to participate in the guaranty associations as a condition of
transacting insurance business in Florida. Florida operates four guaranty associations, including Florida

1 FLA. CONST., art. I, s. 24(a).
2 FLA. CONST., art. I, s. 24(c).

3 Jd.
4 Jd.
5
S. 119.15, F.S.
s S. 119.15(6)(b}, F.S.
7 11 U.S.C. § 109(b)(2).
8 An "insolvent insurer'' means an insurer that was authorized to transact insurance in this state, either at the time the

policy was issued or when the insured event occurred, and against which an order of liquidation with a finding of
insolvency has been entered by a court of competent jurisdiction if such order has become final by the exhaustion of
appellate review. S. 631.904 (4), F.S.
9 Ch. 631, F.S.

10 Id.
11 See e.g., ss. 631.51 and 631.902, F.S.
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Insurance Guaranty Association, 12 Florida Life and Health Insurance Guaranty Association, 13 Florida
Health Maintenance Organization Consumer Assistance Plan, 14 and Florida Workers' Compensation
Insurance Guaranty Association. 15

Insurer Solvency Records
Insurance companies must keep records of policyholders and claimants during the normal course of
business. As long as an insurer remains solvent, these records are not freely available to any person
who requests such information, unless there is a valid reason for the request. DFS's current ability to
withhold information regarding a consumer who is covered by an insolvent insurer is limited to the
exemptions outlined in s. 119.071, F.S. Such information includes social security numbers of agency
personnel, 16 as well as home addresses, telephone numbers, dates of birth, and photographs of
various personnel. 17 When an insurer becomes insolvent, current law does not provide a public record
exemption for a consumer or family member's medical and health history, private financial information,
or insurance coverage. In such cases, policyholders and claimants no longer receive the same
protections and anyone can request access to their information.

Regulation by OIR: Solvency Regulation and NAIC Accreditation
The regulatory oversight of insurance companies is generally reserved to the states. In Florida, the
Office of Insurance Regulation (OIR) is responsible for all activities concerning insurers and other risk
bearing entities, including licensing, rates, policy forms, market conduct, claims, issuance of certificates
of authority, solvency, viatical settlements, and premium financing. Solvency regulation is designed to
protect policyholders against the risk that insurers will not be able to meet their financial responsibilities,
namely, the payment of claims. Solvency regulations include the initial and maintenance requirements
for an insurer's authority to transact insurance in this state, monitoring the financial condition of insurers
through examinations, audits, and procedures for the rehabilitation, or liquidation of an insurance
company if found to be in an unsound financial condition or insolvent. 18

The National Association of Insurance Commissioners (NAIC) is the U.S. standard-setting and
regulatory support organization created and governed by the chief insurance departments that regulate
the conduct and solvency of insurers in their respective states or territories. Through the NAIC, state
insurance regulators establish standards and best practices, conduct peer reviews, and coordinate their
regulatory oversight. 19 As a member of the NAIC, the OIR is required to participate in the
organization's Financial Regulation Standards and Accreditation Program. 20 NAIC accreditation is a
certification that legal, regulatory, and organizational oversight standards and practices are being
fulfilled by a state insurance department to promote sound insurer financial solvency regulation.

Insurer Regulatory Reporting
The NAIC has adopted two insurance model acts that give state insurance regulators like the OIR new
solvency regulatory tools - the Own Risk and Solvency Assessment (ORSA) and the Corporate
Governance Annual Disclosure (CGAD). 21

12 Ch. 631, part II, F.S.
13 Ch. 631, part Ill, F.S.
14 Ch. 631, part IV, F.S.
15 Ch. 631, part V, F.S.
16 S. 119.071(4)(a)1., F.S.
17 These exemptions include, but are not limited to, the records of current or past law enforcement personnel, firefighters,

court justices, state attorneys, probation officers, investigators, and child advocacy employees. ss. 119.071(4)(d)2.a.-
119.071(4)(d)2.t., F.S.
18
See ch. 631, F.S.
19 NAIC, About the NAIC, http://www.naic.org/index_about.htm (last visited Jan. 31, 2020).
20 NAIC, Financial Regulation Standards and Accreditation Program,

https://www.naic.org/documents/cmte_f_frsa_pamphlet.pdf (last visited Jan. 30, 2020).
2 1 S. 628.8015, F.S.
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ORSA
In 2011, as part of the NAIC's Solvency Modernization Initiative, the NAIC adopted the ORSA as a new
insurance regulatory tool. The ORSA22 requires insurance companies to issue their own assessment of
their current and future risk through an internal risk self-assessment process, allowing regulators to
form an enhanced view of an insurer's ability to withstand financial stress. 23 In conducting an ORSA, an
insurer or insurance group references highly sensitive and strategic financial information. Each insurer
must submit an ORSA summary report24 to OIR every year. 25

CGAD
Insurers must submit a CGAD26 to OIR each year. 27 In the CGAD, insurers must document highly
confidential information about their corporate governance framework, including the structure and
policies of their boards of directors and key committees, the frequency of their meetings, and procedure
for the oversight of critical risk areas and appointment practices, among other things. Insurers must
also disclose the policies and practices used by their board of directors for directing senior
management on critical areas, including a description of codes of business conduct and ethics, and
processes for performance evaluation, compensation practices, corrective action, succession planning
and suitability standards. The disclosure must be as descriptive as possible, 28 and include material and
relevant information sufficient to enable OIR to understand the corporate governance structure,
policies, and practices used by the insurer or insurance group. 29

Effect of the Bill

The bill provides that the following records held by DFS before, on, or after July 1, 2020, are
confidential and exempt30 from public records requirements:
• All personal financial and health information of a consumer, including a family member or
dependent;
• Underwriting files of a type customarily maintained by an insurer transacting lines of insurance
similar to lines transacted by the insurer;
• Personnel and payroll records of the insurer; and
• Consumer claim files.

The bill defines personal financial and health information as:
• A consumer's personal health condition, disease or injury;
• A history of a consumer's personal medical diagnosis or treatment;

22 The term "own-risk and solvency assessment" means an internal assessment, appropriate to the nature, scale, and

complexity of an insurer or insurance group, conducted by that insurer or insurance group, of the material and relevant
risks associated with the business plan of an insurer or insurance group and the sufficiency of capital resources to support
those risks. S. 628.8015, F.S.
23 NAIC, Own Risk and Solvency Assessment, http://www.naic.org/cipr_topics/topic_own_risk_solvency_assessment.htm

(last visited Jan. 31, 2020).
24 The term "ORSA summary report" means a high-level ORSA summary of an insurer or insurance group, consisting of a

single report or combination of reports. S. 628.8015(1)(f), F.S.
2s S. 628.8015(2)(c)1.a.(I), F.S.
26 Sees. 628.8015(1)(a), F.S.
27 S. 628.8015(3)(b)1.a., F.S.

2a S. 628.8015 (3)(c)2., F.S.
2s S. 628.8015 (3)(c)3., F.S.
30 There is a difference between records the Legislature designates exempt from public record requirements and those

the Legislature deems confidential and exempt. A record classified as exempt from public disclosure may be disclosed
under certain circumstances. See WFTV, Inc. v. Sch. Bd. of Seminole, 874 So. 2d 48, 53 (Fla. 5th DCA 2004), review
denied 892 So.2d 1015 (Fla. 2004); City of Riviera Beach v. Barfield, 642 So.2d 1135 (Fla. 4th DCA 1994); Williams v.
City of Minneola, 575 So.2d 683, 687 (Fla. 5th DCA 1991 ). If the Legislature designates a record as confidential and
exempt from public disclosure, such record may not be released, by the custodian of public records, to anyone other than
the persons or entities specifically designated in statute. See Op. Att'y Gen. Fla. 85-62 (1985).
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• The existence, nature, source, or amount of a consumer's personal income or expenses;
• Records of, or relating to, a consumer's personal financial transactions of any kind;
• The existence, identification, nature, or value of a consumer's assets, liabilities, or net worth;
• The existence or content of, or any individual coverage or status under a consumer's beneficial
interest in, any insurance policy or annuity contract; or
• The existence, identification, nature, or value of a consumer's interest in any insurance policy,
annuity contract, or trust.

The bill provides public records exemptions for several internal documents required by OIR and held by
DFS before, on, or after July 1, 2020. The following records are confidential and exempt from public
records requirements:
• An ORSA summary report, a substantially similar ORSA summary report, and any supporting
documents submitted to OIR; 31
• A CGAD and any supporting documents submitted to OIR; 32 and
• Information received from the NAIC, a governmental entity of any state, the Federal
Government, or a government of another nation which is confidential and is held by DFS for use
relating to insurer solvency.

Records or portions of records made confidential and exempt by this bill may be released under the
following circumstances:
• To any state or federal agency, upon written request, if disclosure is necessary for the agency's
performance of its duties and responsibilities. The receiving agency must maintain the
confidential and exempt status of the records.
• To comply with a properly authorized civil, criminal, or regulatory investigation or a subpoena or
summons by a federal, state, or local authority.
• To the NAIC, or its affiliates and subsidiaries, if the recipient agrees in writing to maintain the
confidential and exempt status of the records.
• To the guaranty associations and funds of the various states which are receiving, adjudicating,
and paying claims of an insolvent insurer subject to delinquency proceedings. The receiving
association must maintain the confidential and exempt status of the records.
• To persons identified as employees whose responsibilities include the investigation and
disposition of claims relating to suspected fraudulent insurance acts33 upon written request.
• Records containing personal financial and health information of a consumer may be released
upon written request of the consumer or the consumer's legally authorized representative.

The listed exemptions are applicable even when an insurer or insurance company becomes insolvent.

The public records exemptions are subject to the Open Government Sunset Review Act and will be
repealed on October 2, 2025, unless reviewed and saved through reenactment by the Legislature.

B. SECTION DIRECTORY:
Section 1: Creates s. 631.195, F.S., related to records of insurers; public records exemptions.

Section 2: Provides a public necessity statement as required by the Florida Constitution.

Sections 3: Provides an effective date.

31 See S. 628.8015, F.S.
32 Id.
33 Sees. 626.989(4)(d), F.S.
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II. FISCAL ANALYSIS & ECONOMIC IMPACT STATEMENT

A. FISCAL IMPACT ON STATE GOVERNMENT:

1. Revenues:
None.

2. Expenditures:
None.

B. FISCAL IMPACT ON LOCAL GOVERNMENTS:

1. Revenues:
None.

2. Expenditures:
None.

C. DIRECT ECONOMIC IMPACT ON PRIVATE SECTOR:
None.

D. FISCAL COMMENTS:
None.

Ill. COMMENTS

A. CONSTITUTIONAL ISSUES:

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

2. Other:
None.

B. RULE-MAKING AUTHORITY:
None.

C. DRAFTING ISSUES OR OTHER COMMENTS:
None.

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IV. AMENDMENTS/ COMMITTEE SUBSTITUTE CHANGES
On February 4, 2020, the Oversight, Transparency & Public Management Subcommittee adopted an
amendment and reported the bill favorably as a committee substitute. The amendment combined
subsections (2) and (3) of the bill, placing all information exempted in the bill under the confidential and
exempt standard.

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

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FLORIDA H O U S E 0 F REPRESENTATIVES

CS/HB 1409 2020

1 A bill to be entitled
2 An act relating to public records; creating s.
3 631.195, F.S.; defining the terms "consumer" and
4 "personal financial and health information"; exempting
5 from public records requirements certain records made
6 or received by the Department of Financial Services
7 acting as receiver pursuant to specified provisions;
8 providing that such records comprise consumer personal
9 financial and health information, certain underwriting
10 files, insurer personnel and payroll records, consumer
11 claim files, certain reports and documents held by the
12 department relating to insurer own-risk, solvency
13 assessments, corporate governance annual disclosures,
14 and certain information received from the National
15 Association of Insurance Commissioners or governments;
16 providing retroactive applicability; providing that
17 exempted records may be released under specified
18 circumstances; providing for future legislative review
19 and repeal of the exemptions; providing statements of
20 public necessity; providing an effective date.
21
22 Be It Enacted by the Legislature of the State of Florida:
23
24 Section 1. Section 631.195, Florida Statutes, is created
25 to read:

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26 631.195 Records of insurers; public records exemptions.-
27 (1) As used in this section, the term:
28 (a} "Consumer" means a prospective purchaser of, a
29 purchaser of, a beneficiary of, or an applicant for any
30 insurance product or service. The term also includes a family
31 member or dependent of such person.
32 (b} "Personal financial and health information" means:
33 1. A consumer's personal health condition, disease, or
34 injury;
35 2. A history of a consumer's personal medical diagnosis or
36 treatment;
37 3. The existence, nature, source, or amount of a
38 consumer's personal income or expenses;
39 4. Records of, or relating to, a consumer's personal
40 financial transactions of any kind;
41 5. The existence, identification, nature, or value of a
42 consumer's assets, liabilities, or net worth;
43 6. The existence or content of, or any individual coverage
44 or status under a consumer's beneficial interest in, any
45 insurance policy or annuity contract; or
46 7. The existence, identification, nature, or value of a
47 consumer's interest in any insurance policy, annuity contract,
48 or trust.
49 (2) The following records, in whatever form, of an insurer
50 which are made or received by the department, acting as receiver

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51 pursuant to this chapter, are confidential and exempt from s.
52 119.07(1) ands. 24(a), Art. I of the State Constitution:
53 (a) All personal financial and health information of a
54 consumer.
55 (b) Underwriting files of a type customarily maintained by
56 an insurer transacting lines of insurance similar to those lines
57 transacted by the insurer.
58 {c) Personnel and payroll records of the insurer.
59 (d) Consumer claim files.
60 (e) An own-risk and solvency assessment (ORSA) summary
61 report, a substantially similar ORSA summary report, and
62 supporting documents submitted to the office pursuant to s.
63 628.8015.
64 (f) A corporate governance annual disclosure and
65 supporting documents submitted to the office pursuant to s.
66 628.8015.
67 (g) Information received from the National Association of
68 Insurance Commissioners, a governmental entity in this or
69 another state, the Federal Government, or a government of
70 another nation which is confidential or exempt if held by that
71 entity and which is held by the department for use in the
72 performance of its duties relating to insurer solvency.
73 (3) The exemptions in subsection (2) apply to records held
74 by the department before, on, and after July 1, 2020.
75 (4) Records or portions of records made confidential and

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76 exempt by this section may be released under any of the
77 following circumstances:
78 (a) To any state or federal agency, upon written request,
79 if disclosure is necessary for the receiving entity to perform
80 its duties and responsibilities. The receiving agency shall
81 maintain the confidential and exempt status of such record or
82 portion of such record.
83 (b) To comply with a properly authorized civil, criminal,
84 or regulatory investigation or a subpoena or summons by a
85 federal, state, or local authority.
86 (c) To the National Association of Insurance Commissioners
87 and its affiliates and subsidiaries, if the recipient agrees in
88 writing to maintain the confidential and exempt status of the
89 records.
90 (d) To the guaranty associations and funds of the various
91 states which are receiving, adjudicating, and paying claims of
92 the insolvent insurer subject to delinquency proceedings
93 pursuant to this chapter. The receiving guaranty association
94 shall maintain the confidential and exempt status of such record
95 or portion of such record.
96 (e) Upon written request, to persons identified as
97 designated employees as described ins. 626.989(4) (d), whose
98 responsibilities include the investigation and disposition of
99 claims relating to suspected fraudulent insurance acts.
100 (f) In the case of personal financial and health

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101 information of a consumer, upon written request of the consumer
102 or the consumer's legally authorized representative.
103 (5) This section is subject to the Open Government Sunset
104 Review Act in accordance withs. 119.15 and shall stand repealed
105 on October 2, 2025, unless reviewed and saved from repeal
106 through reenactment by the Legislature.
107 Section 2. (1) The Legislature finds it is a public
108 necessity to make confidential and exempt from s. 119.07(1),
109 Florida Statutes, ands. 24(a), Article I of the State
110 Constitution:
111 (a) All personal financial and health information of a
112 consumer;
113 (b) Underwriting files of a type customarily maintained by
114 an insurer transacting lines of insurance similar to those lines
115 transacted by the insurer;
116 (c) Personnel and payroll records of an insurer;
117 (d) Consumer claim files;
118 (e) An own-risk and solvency assessment (ORSA) summary
119 report, a substantially similar ORSA summary report, and
120 supporting documents submitted to the Office of Insurance
121 Regulation pursuant to s. 628.8015, Florida Statutes;
122 (f) A corporate governance annual disclosure and
123 supporting documents submitted to the office pursuant to s.
124 628.8015, Florida Statutes; and
125 (g) Information received from the National Association of

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126 Insurance Commissioners, a governmental entity in this or
127 another state, the Federal Government, or a government of
128 another nation which is confidential or exempt if held by that
129 entity and which is held by the Department of Financial Services
130 for use in the performance of its duties relating to insurer
131 solvency.
132 (2) (a) Disclosure of financial, health, underwriting,
133 personnel, payroll, or consumer claim information would create
134 the opportunity for theft or fraud, thereby jeopardizing the
135 financial security of a person. Limiting disclosure of such
136 information held by the department is also necessary in order to
137 protect the financial interests of the persons to whom that
138 information pertains. Such information could be used for
139 fraudulent or other illegal purposes, including identity theft,
140 and could result in substantial financial harm. Furthermore,
141 every person has an expectation of and a right to privacy in all
142 matters concerning his or her financial interests. Additionally,
143 matters of personal health are traditionally private and
144 confidential concerns between the patient and his or her health
145 care provider. The private and confidential nature of personal
146 health matters pervades both the public and private health care
147 sectors. Public disclosure of health information could have a
148 negative effect upon a person's business and personal
149 relationships and could also have detrimental financial
150 consequences.

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151 (b) In conducting an ORSA, an insurer or insurance group
152 identifies and evaluates the material and relevant risks to the
153 insurer or insurance group and the adequacy of capital resources
154 to support these risks. The ORSA summary report, substantially
155 similar ORSA report, and supporting documents contain highly
156 sensitive and strategic financial information about an insurer
157 or insurer group. Having a comprehensive and unbiased assessment
158 provides the office with an effective early warning mechanism
159 for preventing insolvencies and protecting policyholders and
160 promotes a stable insurance market. Divulging the ORSA summary
161 report, substantially similar ORSA summary report, and
162 supporting documents will injure the insurer or insurance group
163 by providing competitors with detailed insight into their
164 financial position, risk management strategies, business plans,
165 pricing and marketing strategies, management systems, and
166 operational protocols.
167 (c) The corporate governance annual disclosure describes
168 an insurer's governance structure and the internal practices and
169 procedures used in conducting the business affairs of the
170 company, making strategic operational decisions affecting its
171 competitive position, and managing its financial condition.
172 Release of the corporate governance annual disclosure and
173 supporting documents will injure the insurer or insurance group
174 in the marketplace by providing competitors with the insurer's
175 or the insurance group's confidential business information.

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176 Broad disclosure will give state regulators a thorough
177 understanding of the corporate governance structure and internal
178 policies and practices used by insurers and promote market
179 integrity. Effective governance mechanisms will enable insurers
180 to take any necessary corrective actions and achieve strategic
181 goals while allowing the office to perform its regulatory duties
182 effectively and efficiently.
183 (d) Divulgence of confidential or exempt information
184 received from the National Association of Insurance
185 Commissioners or governments could impede the exchange of
186 information and communication among regulators across multiple
187 agencies and jurisdictions and jeopardize the ability of
188 regulators to effectively supervise insurers and groups
189 operating in multiple jurisdictions and engaged in significant
190 cross-border activities.
191 (3) The Legislature finds that the harm that may result
192 from the release of such information outweighs any public
193 benefit that may be derived from the disclosure of the
194 information.
195 Section 3. This act shall take effect July 1, 2020.

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"':::c:-
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Cl
HOUSE OF REPRESENTATIVES STAFF ANALYSIS

BILL#: CS/HB 1439 Bank Property of Deceased Account Holders
SPONSOR(S): Insurance & Banking Subcommittee, Yarborough
TIED BILLS: IDEN./SIM. BILLS:

REFERENCE ACTION ANALYST STAFF DIRECTOR or
BUDGET/POLICY
CHIEF

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

2) Commerce Committee Hinshelwoo

SUMMARY ANALYSIS
Probate is a court-supervised process that ensures a deceased person's (decedent's) debts are paid in an orderly
fashion and that the rightful beneficiaries, whether determined according to a will or by default rules of succession,
receive the property to which they are entitled. Assets subject to probate are those that were owned in the
decedent's sole name at death or that were owned by the decedent and one or more co-owners but lacked a
provision for automatic succession of ownership at death. Florida has two types of probate administration: formal
administration for estates of any size and summary administration for estates generally under $75,000. Additionally,
Florida has an abbreviated process for distributing small estates that consist of only personal property, such as
money.

Under the Florida Disposition of Unclaimed Property Act, checking or savings accounts or certificates of deposit that
remain dormant for five years are presumed unclaimed and must be turned over to the Department of Financial
Services (DFS), which maintains a website at which members of the public can search for unclaimed property to
which they may be entitled. A deceased owner's beneficiaries may claim the property by filing an affidavit with the
DFS (no court order required) if all of the unclaimed property held by the DFS on behalf of the owner has an
aggregate value of $10,000 or less and no probate proceeding is pending.

The bill authorizes certain family members of a decedent to present a sworn affidavit and certified death certificate
to a financial institution in Florida and receive up to $1,000 from "qualified accounts" (depository accounts or
certificates of deposit held in the sole name of the decedent without a pay-on-death or any other survivor
designation) if the total amount of the combined funds in all qualified accounts at that financial institution is less than
$1,000 and if at least six months have passed since the decedent's death. No court proceeding is needed. The
affiant (a person who swears to an affidavit) must attest that a personal representative has not been appointed to
administer the decedent's estate, that no formal or summary probate proceedings has been commenced, and that
the affiant has no knowledge of the existence of any will or other document relating to the distribution of the
decedent's estate. The financial institution is not required to determine whether the contents of the sworn affidavit
are truthful, and it is fully released and discharged from further liability for the amount paid.

The bill creates a process by which a beneficiary of an intestate decedent (a person who died without a will) may file
an affidavit with the court to request distribution of certain assets of the decedent. This process is available if the
intestate decedent left only personal property that is exempt from probate proceedings, personal property that is
constitutionally protected from creditors' claims, and nonexempt personal property valued at less than the sum of
$10,000 and certain funeral and medical expenses. The decedent must have died more than one year prior, and no
Florida probate proceeding may be pending or have been previously granted.

The bill has no fiscal impact on state government and an indeterminate fiscal impact on local governments and 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.
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FULL ANALYSIS

I. SUBSTANTIVE ANALYSIS

A. EFFECT OF PROPOSED CHANGES:
Background

Regulation of Depository Financial Institutions

The U.S. dual banking system allows commercial banks to become chartered (organized) under either
federal or state law:
• National banks are chartered under federal law, i.e., the National Bank Act. 1 Their primary
fed~ral regulator is the Office of the Comptroller of the Currency, an independent agency within
the U.S. Department of the Treasury.
• State-chartered banks are chartered under the laws of the state in which the bank is
headquartered. The primary federal regulator for state banks that are members of the Federal
Reserve System is the Board of Governors of the Federal Reserve System. The primary federal
regulator for non-members is the Federal Deposit Insurance Corporation (FDIC). 2

In addition to having a federal regulator, state-chartered banks are regulated by their chartering state.
In Florida, the state regulatory agency for financial institutions is the Office of Financial Regulation
(OFR). 3 The OFR's Division of Financial Institutions charters, licenses, and regulates various entities
that engage in financial institution business in Florida, in accordance with the financial institutions
codes (Fl Codes) and the rules promulgated thereunder. 4 The OFR also ensures that Florida-chartered
financial institutions comply with state and applicable federal requirements for safety and soundness. 5
The OFR does not regulate federally chartered financial institutions or financial institutions chartered by
other states.

Like banks, credit unions accept deposits and make loans, and can be state-chartered or federally-
chartered:
• State-chartered credit unions may be formed under the Florida Credit Union Act (FCUA), which
became law in 1980. 6 The FCUA provides that "[a] credit union is a cooperative, nonprofit
association, organized ... for the purposes of encouraging thrift among its members, creating
sources of credit at fair and reasonable rates of interest, and providing an opportunity for its
members to use and control their resources on a democratic basis in order to improve their
economic and social condition." 7 State-chartered credit unions have both a state regulator, the
OFR, and a federal regulator, the National Credit Union Association (NCUA).
• Federally-chartered credit unions are chartered under the Federal Credit Union Act of 19348
and are regulated by the NCUA.

1
The National Bank Act of 1964 (12 U.S.C. § 24 Seventh) gives enumerated powers and "all such incidental powers as shall be
necessary to carry on the business of banking" to nationally chartered banks. To prevent inconsistent or intrusive state regulation from
impairing the national system, Congress provided: "No national bank shall be subject to any visitorial powers except as authorized by
Federal law." Id. at§ 484(a).
2
12 U.S.C. § 1813(q).
3 s. 20.121(3)(a)2., F.S.
4
Chs. 655,657,658,660,662,663, 665, and 667, F.S.; chs. 69U-100 through 69U-162, F.A.C.
5
While the Fl Codes do not specifically define "safety and soundness," the Fl Codes define "unsafe and unsound practice" as "any
practice or conduct found by the office to be contrary to generally accepted standards applicable to a financial institution, or a violation
of any prior agreement in writing or order of a state or federal regulatory agency, which practice, conduct, or violation creates the
likelihood of loss, insolvency, or dissipation of assets or otherwise prejudices the interest of the financial institution or its depositors or
members. In making this determination, the office must consider the size and condition of the financial institution, the gravity of the
violation, and the prior conduct of the person or institution involved." Sees. 655.005(1)(y), F.S. For a discussion of the FDIC's approach
to unsafe or unsound practices, see FDIC's Risk Management Manual of Examination Policies, Section 15.1, at:
https://www.fdic.gov/requlations/safety/manual/section15-1.pdf (last visited Jan. 24, 2020).
6
Ch. 80-258, Laws of Fla.; codified at ch. 657, F.S.
7
s. 657.003, F.S.
8
Public Law 73-467, codified at 12 U.S.C. § 1751 et seq.
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The Fl Codes currently provide that "[t]he books and records pertaining to ... the deposit accounts ...
of depositors ... [and] members ... of any financial institution shall be kept confidential by the financial
institution and its directors, officers, and employees and may not be released except upon express
authorization of the account holder as to her or his own accounts .... "9 The Fl Codes provide limited
exceptions to the confidential protection given such information. 10 One such exception states that a
financial institution is not prohibited from disclosing financial information as authorized by the Gramm-
Leach-Bliley Act, 11 as set forth in 15 U.S.C. s. 6802 relating to obligations with respect to disclosures of
personal information. 12

Probate Process in Florida

Probate is a court-supervised process for identifying and gathering the assets of a deceased person
(decedent), paying the decedent's debts, and distributing the decedent's assets to his or her
beneficiaries. 13 Probate proceedings are governed by The Florida Probate Code found in chs. 731 -
735, F.S., and the Florida Probate Rules of court. 14 The probate process ensures that the decedent's
debts are paid in an orderly fashion and that the rightful beneficiaries, whether determined according to
a will or by default rules of succession, receive the property to which they are entitled.

Assets subject to probate are those that were owned in the decedent's sole name at death or that were
owned by the decedent and one or more co-owners but lacked a provision for automatic succession of
ownership at death. 15 The following are examples to illustrate common probate and non-probate
assets: 16
• A bank account or investment account in the sole name of a decedent is a probate asset; but a
bank account or investment account owned by the decedent and payable on death or
transferable on death to another, or held jointly with rights of survivorship with another, is not a
probate asset.
• A life insurance policy, annuity contract or individual retirement account that is payable to a
specific beneficiary is not a probate asset; but a life insurance policy, annuity contract, or
individual retirement account payable to the decedent's estate is a probate asset.
• Real estate titled in the sole name of the decedent, or in the name of the decedent and another
person as tenants in common, is a probate asset (unless it is homestead property); but real
estate titled in the name of the decedent and one or more other persons as joint tenants with
rights of survivorship is not a probate asset.
• Property owned by spouses as tenants by the entirety is not a probate asset on the death of the
first spouse to die; it goes automatically to the surviving spouse.

There are two types of probate administration in Florida: formal administration and summary
administration.

Formal Administration

Any interested person 17 may petition the court to begin administration of the decedent's estate. 18 Venue

9 S. 655.059(2)(b), F.S.

10 Id.
11
Pub. L. 106-102.
12
S. 655.059(2)(b)1., F.S.
13 The Florida Bar, Consumer Pamphlet: Probate in Florida, https://www.floridabar.org/public/consumer/pamphlet026/ (last visited Jan.

24, 2020).
14
Available at https://www-media.floridabar.org/uploads/2020/01/Probate-Rules-01-01-20.pdf (last visited Jan. 24, 2020).
15 The Florida Bar, supra note 13.
16 Id.
17
"Interested person" is defined as "any person who may reasonably be expected to be affected by the outcome of the particular
proceeding involved. In any proceeding affecting the estate or the rights of a beneficiary in the estate, the personal representative of the
estate shall be deemed to be an interested person. In any proceeding affecting the expenses of the administration and obligations of a
decedent's estate, or any claims described ins. 733.702(1), the trustee of a trust described ins. 733.707(3) is an interested person in
the administration of the grantor's estate. The term does not include a beneficiary who has received complete distribution. The
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is proper in the county where the decedent was domiciled. 19 If the decedent left a will, the custodian of
the will must deposit the original copy of the will with the clerk of the court having venue of the
decedent's estate within 10 days of receiving information that the decedent died. 20

The probate proceedings are presided over by a circuit court judge. The judge will determine whether
the decedent's will, if any, is valid. If the decedent had no will or the will is invalid, the decedent is said
to have died intestate. The estate will be administered by a personal representative who is a fiduciary
appointed by the court. 21 If the decedent had a valid will that named a person to serve as the personal
representative, the court will appoint the named person so long as that person is qualified to serve as
such. 22 If the decedent did not leave a will, the surviving spouse is given first preference to serve as the
personal representative. 23

The judge will issue letters of administration in order to grant authority to the personal representative to
act on behalf of the decedent's estate. 24 It is recommended that a personal representative engage a
qualified attorney to assist in the administration of the decedent's probate estate. 25 Many legal issues
arise, even in the simplest probate estate administration, and most of these issues will be novel and
unfamiliar to non-attorneys. 26 The attorney for the personal representative advises the personal
representative on the rights and duties under the law, and represents the personal representative in
probate estate proceedings. 27 The attorney for the personal representative is not the attorney for any of
the beneficiaries of the decedent's probate estate. 28

The personal representative must: 29
• Identify, gather, value, and safeguard the decedent's probate assets.
• Publish a notice to creditors in a local newspaper in order to give notice to potential claimants to
file claims in the manner required by law.
• Serve a notice of administration to provide information about the probate estate administration
and notice of the procedures required to be followed by those having any objection to the
administration of the decedent's probate estate.
• Conduct a diligent search to locate known or reasonably ascertainable creditors, and notify
these creditors of the time by which their claims must be filed.
• Object to improper claims and defend suits brought on such claims.
• Pay valid claims.
• File tax returns and pay any taxes properly due.
• Employ professionals to assist in the administration of the probate estate; for example,
attorneys, certified public accountants, appraisers, and investment advisers.
• Pay expenses of administering the probate estate.
• Pay statutorily required amounts to the decedent's surviving spouse or family.
• Distribute probate assets to beneficiaries.
• Close the probate estate.

The Florida Probate Code provides the order and priority of distributions from the decedent's estate. In
general, the decedent's assets are used first to pay the cost of the probate proceeding; then assets are

meaning, as it relates to particular persons, may vary from time to time and must be determined according to the particular purpose of,
and matter involved in, any proceedings." S. 731.201 (23), F.S.
18
S. 733.202, F.S.
19 S. 733.101(1), F.S.
20 S. 732.901(1), F.S.
21
Ss. 731.201 (28) and 733.602, F.S.
22
See ch. 733, part Ill, F.S., for qualifications and disqualifications.
2 3 S. 733.301(1)(b), F.S.
24 S. 731.201 (24), F.S.
25 The Florida Bar, supra note 13.
26 Id.
27 Id.
28 Id.
29
Id.; ch. 733, parts VI-IX, F.S.
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used to pay the decedent's funeral expenses, followed by payment of the decedent's outstanding
debts, and the remainder is distributed to the decedent's beneficiaries. 30

As previously noted, the personal representative must use diligent efforts to give actual notice of the
probate proceeding to known or reasonably ascertainable creditors, and the personal representative
must publish a notice to creditors in a local newspaper in order to give notice to other potential
claimants. Creditors' claims are barred unless filed in the probate proceeding within the later of three
months after the time of the first publication of the notice to creditors or, as to any creditor required to
be served with a copy of the notice to creditors, 30 days after the date of service on the creditor. 31 The
decedent's estate, personal representative, and beneficiaries are no longer liable for any claim or cause
of action against the decedent two years after the decedent's death, regardless of whether letters of
administration have been issued. 32 This is often referred to as the "non-claim statute".

The judge presiding over the probate proceeding will consider evidence to confirm the identities of
beneficiaries who are entitled to receive property from the decedent's probate estate. A Florida resident
does have the right to entirely disinherit anyone. 33 However, the decedent's surviving spouse and
children may be entitled to receive assets from the decedent's probate estate, even if the decedent's
will gives them nothing. 34 Florida law protects the decedent's surviving spouse and certain surviving
children from total disinheritance. 35 For example: 36
• Homestead protection: A surviving spouse may have rights in the decedent's homestead real
property. 37
• Elective share: A surviving spouse may have the right to claim an "elective share" from the
decedent's probate estate. The elective share is, generally speaking, 30 percent of all of the
decedent's assets, including any assets that are non-probate assets. 38
• Family allowance: A surviving spouse or the decedent's children may have the right to a family
allowance to provide them with funds (up to $18,000) before final distribution of the estate
assets. 39
• Pretermitted spouse or children: If the decedent married, or had children, after the date of the
decedent's last will, and if the decedent neglected to provide for the new spouse or children, an
omitted family member may nevertheless be entitled to a share of the decedent's probate
estate. 40

If a decedent left no will or if any part of the decedent's estate is not effectively disposed of by will, the
decedent's property will pass to the decedent's heirs as prescribed by default rules of intestate
succession. 41

The intestate share of the surviving spouse is as follows: 42
• If there is no surviving descendant of the decedent, the entire intestate estate.
• If the decedent is survived by one or more descendants, all of whom are also descendants of
the surviving spouse, and the surviving spouse has no other descendant, the entire intestate
estate.
• If there are one or more surviving descendants of the decedent who are not lineal descendants
of the surviving spouse, one-half of the intestate estate.

30 The Florida Bar, supra note 13.
31 S. 733.702(1), F.S.
32 S. 733.710, F.S.
33 The Florida Bar, supra note 13.
34 Id.
35 Id.
36 Id.
37 Art. X, s. 4, Fla. Const.; ss. 732.401 and 732.4015, F.S.

38 Ch. 732, part II, F.S.
39
Ss. 732.403 and 733.707(1)(e}, F.S.
40 Ss. 732.301 and 732.302, F.S.
41
S. 732.101, F.S.; ch. 732, part I, F.S.
42
S. 732.102, F.S.
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• If there are one or more surviving descendants of the decedent, all of whom are also
descendants of the surviving spouse, and the surviving spouse has one or more descendants
who are not descendants of the decedent, one-half of the intestate estate.

The part of the intestate estate not passing to the surviving spouse as described above, or the entire
intestate estate if there is no surviving spouse, descends as follows: 43
• To the descendants of the decedent.
• If there is no descendant, to the decedent's father and mother equally, or to the survivor of
them.
• If there is none of the foregoing, to the decedent's brothers and sisters and the descendants of
deceased brothers and sisters.
• If there is none of the foregoing, the estate must be divided: one-half to the decedent's paternal,
and the other half to the decedent's maternal, kindred in the following order:
o To the grandfather and grandmother equally, or to the survivor of them.
o If there is no grandfather or grandmother, to uncles and aunts and descendants of
deceased uncles and aunts of the decedent.
o If there is either no paternal kindred or no maternal kindred, the estate must go to the
other kindred who survive, in the order stated above.
• If there is no kindred of either part, the whole of the property must go to the kindred of the last
deceased spouse of the decedent as if the deceased spouse had survived the decedent and
then died intestate entitled to the estate.

Descent of inheritance under the above intestate succession statutes must be per stirpes. 44 If property
descends to the decedent's collateral kin and part of the collateral kin are of the whole blood to the
decedent and the other part of the half blood, the half-blooded kin inherit only half as much as the
whole-blooded kin. 45 Heirs of the decedent conceived before his or her death, but born thereafter,
inherit intestate property as if they had been born in the decedent's lifetime. 46 With some exceptions, an
adopted person is a descendant of the adopting parent, is one of the natural kindred of all members of
the adopting parent's family, is not a descendant of his or her natural parents, and is not one of the
kindred of any member of the natural parent's family or any prior adoptive parent's family. 47 A person
born out of wedlock is a descendant of his or her father and is one of the natural kindred of all members
of the father's family if the natural parents eventually married or if paternity has otherwise been
established. 48 A natural or adoptive parent is barred from inheriting from or through a child if the natural
or adoptive parent's parental rights were terminated prior to the death of the child, and the natural or
adoptive parent must be treated as if the parent predeceased the child. 49

Summary Probate Administration

Summary administration is an alternative to the formal administration process that is generally faster
and less costly than formal administration. For example, a personal representative is not appointed
and, therefore, no fee need be paid to such a person. Additionally, the shorter process can result in
lower attorney's fees. Summary administration is available only if the decedent has been dead for more
than two years or if the value of the estate subject to administration in Florida (less the value of property

43 S. 732.103, F.S.
44 Distribution per stirpes means that the inherited property is "(p]roportionately divided between beneficiaries according to their

deceased ancestor's share." BLACK'S LAW DICTIONARY 1181 (8th ed. 2004). In other words, if an estate is distributed per stirpes,
individuals within each generation of the family receive an equal distribution of the estate. Distribution per stirpes differs from
distribution per capita in which individuals within the same class (for example, all living descendants of the decedent) inherit equally.
Distribution per capita can result in individuals within the same generation inheriting differing amounts if other members in that
generation had children but predeceased the decedent.
45
S. 732.105, F.S.
46 S. 732.106, F .S.
47 S. 732.108, F.S.
46 /d.
49 S. 732.1081, F.S.
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which is exempt from the claims of creditors 50 ) is less than $75,000. 51 Summary administration is not
available if a decedent's will specifically directs formal administration. 52

A petition for summary administration may be filed by any beneficiary or person nominated as personal
representative in the decedent's will. 53 The petition must be signed and verified by any surviving spouse
and any beneficiaries who will not receive a full distributive share under the proposed distribution. 54
However, any other beneficiary must be served with formal notice of the petition. 55 Once the court
receives the petition for summary administration and is satisfied that the estate qualifies, the court
issues an order of summary administration allowing immediate distribution of assets to the persons
entitled to them. 56

If the decedent passed away more than two years before the filing of the petition for summary
administration, creditors' claims do not need to be addressed in the summary administration proceeding
because Florida's non-claim statute effectively bars any creditors' claims that are not brought within two
years of the decedent's death. 57 If the decedent passed away less than two years before the filing of
the petition for summary judgment, the petitioner is required to make a diligent search and reasonable
inquiry for any known or reasonably ascertainable creditors, serve a copy of the petition on those
creditors, and make provision for payment for those creditors to the extent that assets are available. 58
As for those creditors who are not known or reasonably ascertainable, if proof of publication of a
specified notice to creditors has been filed with the court, all claims and demands of such creditors are
forever barred unless their claims are filed within three months after the first publication of the notice. 59

Those who receive a distribution of estate assets generally remain liable for claims against the
decedent for two years after the date of death. 60 The following parties are entitled to receive reasonable
attorney's fees and costs if they prevail in an action to enforce their claim:
• Any known or reasonably ascertainable creditor who did not receive notice and for whom
provision for payment was not made. 61
• Any heir or devisee62 of the decedent who was lawfully entitled to share in the estate but who
was not included in the order of summary administration and distribution. 63

If the decedent owned a homestead in Florida, the heirs may not automatically have clear title such that
the property can later be sold. The heirs may be required to get a court to issue an order determining
homestead, which is a process that can be accomplished alongside or as part of a summary
administration proceeding. 64 If the Florida homestead is the only asset in the decedent's probate estate,
it will qualify for summary administration regardless of the value of the homestead because the value of
Florida homestead property is not counted for purposes of determining whether the estate meets the
$75,000 limitation for summary administration.

5
°For example, homestead property that is protected from creditors' claims by Art. X, s. 4, Fla. Const.
51 S. 735.201(1), F.S.
52 Id.
53 S. 735.203(1), F.S.
54 Id.
55 Id.
56
S. 735.206(3), F.S.
57
S. 733.710, F.S.
58 S. 735.206(2), F.S.
59 S. 735.2063, F.S.
60 S. 735.206(4)(d)-(f), F.S.

6 1 S. 735.206(4)(d), F.S.
62
"Devisee" means "[a] recipient of property by will." BLACK'S LAw DICTIONARY 484 (8th ed. 2004).
63 S. 735.206(4)(9), F.S.
64
The value of homestead property is not counted for purposes of determining whether the decedent's probate estate falls within the
cap of $75,000 for summary administration.
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Disposition of Personal Property Without Administration

Disposition of personal property without administration is yet another alternative to the formal
administration process and is a more abbreviated process than summary administration. 65 It is available
only if the decedent's probate estate consists solely of the following: 66
• Personal property classified as exempt under the provisions of s. 732.402, F.S., such as
household furnishings up to a net value of $20,000 and two vehicles;
• Personal property exempt from the claims of creditors under the Florida Constitution, such as
personal property valued at $1,000 or less; 67 and
• Non-exempt personal property valued at less than the sum of:
o The amount of preferred funeral expenses, and
o The amount of reasonable and necessary medical and hospital expenses incurred in the
last 60 days of the decedent's final illness.

Personal property is anything that is movable (e.g., money and jewelry) or intangible (e.g., stocks and
bonds). 68

To initiate this abbreviated process, any interested party may file an informal application by affidavit,
letter, or otherwise with the court. 69 If the court is satisfied that the decedent's assets meet the criteria
for this abbreviated process, the court may, by letter or other writing under the seal of the court,
authorize the payment, transfer, or disposition of the personal property, tangible or intangible, belonging
to the decedent to those persons entitled. 70 Any person, firm, or corporation paying, delivering, or
transferring property under the court's authorization is forever discharged from liability thereon. 71

Escheated and Unclaimed Property

When a person dies leaving an estate without being survived by any person entitled to a part of it, that
part reverts to the state. 72 Such property is said to "escheat to the state". 73 Property that escheats must
be sold as provided in the Florida Probate Rules and the proceeds paid to Florida's Chief Financial
Officer, who heads the Department of Financial Services (DFS), and deposited in the State School
Fund. 74 A person claiming to be entitled to the proceeds may, within 10 years after the payment to the
Chief Financial Officer, petition the court to assert entitlement to the proceeds. 75 If no claim is timely
asserted, the state's right to the proceeds becomes absolute. 76

Similarly, abandoned and unclaimed property must be turned over to the DFS under the Florida
Disposition of Unclaimed Property Act (Act). Under the Act, the Division of Unclaimed Property, a
division within the DFS, is responsible for receiving abandoned property, attempting to locate the
rightful owner, and returning the property or proceeds to the owner. The Act protects the interests of
missing owners of property while the state derives a benefit from the unclaimed and abandoned
property until the property is claimed, if ever. There is no statute of limitations in the Act for an owner's
claim; the owner may claim his or her property at any time and at no cost.

Generally, all intangible property, including any income thereon less any lawful charges, which is held
in the ordinary course of the holder's business, is presumed to be unclaimed when the owner fails to

65 S. 735.301, F.S.
66 S. 735.301(1), F.S.

6 7 Art. X, s. 4(a)(2), Fla. Const.
68
BLACK'S LAW DICTIONARY 1254 (8th ed. 2004).
69 S. 735.301(2), F.S.
70 Id.
71 Id.
72
S. 732.107, F.S.
73 Id.
74
Id.; s. 20.121(1), F.S.; s. 733.816, F.S.
75
S. 732.107, F.S.; s. 733.816, F.S.
7s Id.
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claim the property for more than five years after the property becomes payable or distributable, unless
otherwise provided in the Act. 77 For particular kinds of property, the Act provides varying time periods to
trigger a finding that such property is presumed unclaimed and must be turned over to the DFS. For
example, the presumption of unclaimed property arises for:
• Traveler's checks 15 years after its issuance if, within that time, the owner has not
communicated in writing with the issuer concerning it or otherwise indicated an interest in it. 78
• Money orders 7 years after its issuance if, within that time, the owner has not communicated in
writing with the issuer concerning it or otherwise indicated an interest in it. 79
• Sums payable on a check, draft, or similar instrument on which a banking or financial
organization is directly liable 5 years after it was payable, or after its issuance if payable on
demand, if, within that time, the owner has not communicated in writing with the banking or
financial organization concerning it or otherwise indicated an interest in it. 80
• Checking or savings deposits or a certificate of deposit, including interest or dividends thereon,
held by a banking or financial organization 5 years after the owner last:
o Increased or decreased the amount of the deposit;
o Increased or decreased the amount of another deposit with the banking or financial
organization so long as the banking or financial organization communicates in writing, at
the address to which communications regarding the other deposit are regularly sent, with
the owner with regard to the deposit that would otherwise be presumed unclaimed;
o Communicated with the banking or financial organization concerning the property;
o Otherwise indicated an interest in the property;
o Communicated in writing with the banking or financial organization concerning another
relationship with such banking or financial organization; or
o Otherwise indicated an interest concerning another relationship with such banking or
financial organization so long as the banking or financial organization communicates in
writing, at the address to which communications regarding the other relationship are
regularly sent, with the owner with regard to the property that would otherwise be
presumed unclaimed. 81
• Intangible property held by fiduciaries 5 years after it has become payable or distributable if,
within that time, the owner has not increased or decreased the principal, accepted payment of
principal or income, communicated concerning the property, or otherwise indicated an interest in
it.82
• Intangible property held by fiduciaries under trust instruments 2 years after it has become
payable or distributable if, within that time, the owner has not increased or decreased the
principal, accepted payment of principal or income, communicated concerning the property, or
otherwise indicated an interest in it. 83
• Tangible and intangible property held by a banking or financial organization in a safe-deposit
box 3 years after the lease or rental period on the box has expired. 84

Holders of unclaimed property are required to file an annual report of unclaimed property with the DFS,
and must transmit the unclaimed property with the report, between January 1 and May 1 of each year. 85
The report and transmittal must include all property considered unclaimed in the previous calendar
year. 86 Holders of inactive accounts having a value of $50 or more are required to use due diligence to
locate and notify the apparent owners at least 60 days but not more than 120 days prior to filing the
report of unclaimed property with the DFS. 87 The report of unclaimed property must contain certain

77
S. 717.102(1), F.S.
78
S. 717104(1), F.S.
79 S. 717.104(2), F.S.

BOS. 717.105, F.S.
81
S. 717.106, F.S.
82 S. 717.112(1), F.S.
83
S. 717.1125, F.S.
84
S. 717.116, F.S.
85 Ss. 717.117(3) and 717.119, F.S.
B6 Id.
87
S. 717 .117(4), F .S.
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identifying information, such as the apparent owner's name, social security number or federal employer
identification number, and last known address. 88

Upon the payment or delivery of unclaimed property to the DFS, the state assumes custody and
responsibility for the safekeeping of the property. 89 Any person who pays or delivers property to the
DFS in good faith is relieved of all liability to the extent of the value of the property paid or delivered for
any claim then existing or which thereafter may arise or be made in respect to the property. 90 The
original property owner retains the right to recover the proceeds of the property, and any person
claiming an interest in the property delivered to the DFS may file a claim for the property, subject to
certain requirements. 91 Claims for recovery of unclaimed property may be filed by or on behalf of any
person with an interest in the property. 92 The DFS maintains a website at which members of the public
can search for unclaimed property to which they may be entitled. 93

The Act provides a process for a deceased owner's beneficiaries to claim the property without an order
of a probate court if all of the unclaimed property held by the DFS on behalf of the owner has an
aggregate value of $10,000 or less and no probate proceeding is pending. 94 To do so, the claimant
must file with the DFS an affidavit, signed by all beneficiaries, stating that all the beneficiaries have
amicably agreed among themselves upon a division of the estate and that all funeral expenses,
expenses of the last illness, and any other lawful claims have been paid. 95 The claimant must provide
any additional information reasonably necessary to make a determination of entitlement. 96 If the owner
died testate, 97 the claim must be accompanied by a copy of the will. 98 Each person receiving property
under this process is personally liable for all lawful claims against the estate of the owner, but only to
the extent of the value of the property received by such person under this process, exclusive of the
property exempt from claims of creditors under the constitution and laws of Florida. 99 Any heir or
devisee of the owner, who was lawfully entitled to share in the property but did not receive his or her
share of the property, may enforce his or her rights in appropriate proceedings against those who
received the property and will be awarded costs and attorney's fees. 100

The DFS is required to make a determination on a claim within 90 days. 101 If a claim is determined in
favor of the claimant, the DFS must deliver or pay over to the claimant the property or the amount the
DFS actually received or the proceeds, if it has been sold by the DFS. 102 All proceeds from unclaimed
property are deposited by the DFS into the Unclaimed Property Trust Fund. 103 The DFS is allowed to
retain up to $15 million to make prompt payment on verified claims and to cover costs incurred by the
DFS in administering and enforcing the Act. 104 All remaining funds must be deposited into the State
School Fund to be used for public education. 105

88 S. 717.117(1), F.S.
89 S. 717.1201, F.S.
90 Id.
91
S. 717.117 and 717.124, F.S.
92
S. 717.124, F.S.
93 FLTreasureHunt.gov, https://www.fltreasurehunt.gov/ (last visited Jan. 24, 2020).
94 S. 717.1243, F.S.
95 Id.
96 Id.
97 "Testate" means "[h]aving left a will at death." BLACK'S LAw D1cr10NARY 1514 (8th ed. 2004).
98 S. 717.1243, F.S.
99 Id.
100
S. 717.1243, F.S.
101
S. 717.124(1), F.S.
102
S. 717.124, F.S.
103
S. 717.123, F.S.
104 Id.
10s Id.
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Filing and Disclosure of Death Certificates in Florida

The Florida Vital Statistics Act directs the Department of Health (DOH), to establish the Bureau of Vital
Statistics (Bureau) 106 under the direction of a state registrar for the uniform and efficient registration,
compilation, storage, and preservation of all vital records 107 in this state. 108 The DOH is also
responsible for establishing registration districts throughout the state and appointing a local registrar of
vital statistics for each registration district.

A certificate for each death or fetal death that occurs in Florida must be filed within 5 days after such
death and prior to the final disposition of the dead body or fetus. 109 Final disposition means the burial,
interment, cremation, removal from the state, or other authorized disposition of a dead body or fetus. 110
The registration of the death certificate may be submitted via the DOH's electronic death registration
system to the Bureau on a form prescribed by the DOH, or to the local registrar of the district in which
the death occurred.

The DOH must provide a certified copy of all or part of a death or fetal death certificate, excluding any
portions that are confidential and exempt from public disclosure, to any person requesting it upon
receipt of a request and payment of the prescribed fee. 111 All information relating to cause of death in
all death and fetal death records is confidential and exempt from public disclosure. 112 Additionally,
social security numbers are confidential and exempt from public disclosure. 113 However, 50 years after
the date of death, the portions of a certificate of death which were exempt from public disclosure lose
such protection, though the social security number information remains confidential and exempt. 114 A
certification of the death or fetal death certificate which includes the confidential portions, such as
cause of death and social security number, may be issued only: 115
• To the decedent's spouse or parent;
• To the decedent's child, grandchild, or sibling, if of legal age;
• To any person who provides an executed will, insurance policy, or other document that
demonstrates his or her interest in the estate of the decedent;
• To any person who provides documentation that he or she is acting on behalf of any of the
above-named persons;
• To any agency of the state or local government or the United States for official purposes upon
approval of the DOH; or
• Upon order of any court of competent jurisdiction.

Effect of the Bill

Confidentiality of books and records

The bill amends s. 655.059, F.S., to correct the citation to the Gramm-Leach-Bliley Act and to provide
another exception to the general rule that a financial institution's books and records relating to deposit
accounts must be kept confidential by the financial institution. The new exception states that a financial
institution is not prohibited from disclosing the existence of and amounts on deposit in any qualified
account of a decedent pursuant to s. 735.303, F.S., and from providing a copy of any affidavit delivered
to the financial institution pursuant thereto, to a person authorized to receive such information under s.
735.303, F.S.

106
Although the statute refers to an Office of Vital Statistics, it has been established as the Bureau of Vital Statistics within DOH.
107 A vital record is defined as certificates or reports of birth, death, fetal death, marriage, dissolution of marriage, certain name

changes, and data related thereto. S. 382.001 (17), F.S.
108 S. 382.003, F.S.
109
S. 382.008, F.S.
110
S. 382.002(9), F.S.
111 S. 382.025(2)(a), F.S.
112
S. 382.008(6), F.S.
113 S. 119.071 (5)(a)5., F.S.
11 4 Id.; s. 382.025(2)(b), F .S.
115 S. 382.025(2)(a), F.S.

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Sworn affidavit provided to a financial institution in order to receive up to $1,000 in qualified accounts

The bill creates s. 735.303, F.S., to authorize certain family members of a decedent to present a sworn
affidavit to a financial institution in this state and receive up to $1,000 from "qualified accounts", defined
as depository account or certificate of deposit held by a financial institution in the sole name of the
decedent without a pay-on-death or any other survivor designation. The bill does not require a court
proceeding, order, or judgment in order for the family member to receive the funds. Family members
authorized to present the sworn affidavit to the financial institution are as follows:
• The surviving spouse of the decedent;
• An adult child of the decedent if the decedent left no surviving spouse;
• An adult descendant of the decedent if the decedent left no surviving spouse and no surviving
adult child; or
• A parent of the decedent if the decedent left no surviving spouse, no surviving adult child, and
no surviving adult descendant.

The financial institution may pay the funds to the authorized family member if the total amount of the
combined funds in all qualified accounts at that financial institution do not exceed an aggregate of
$1,000 and if at least six months have passed since the decedent's death.

In order to receive the funds, the authorized family member must provide to the financial institution a
certified copy of the decedent's death certificate and a sworn affidavit that includes all of the following:
• A statement attesting that the affiant is the surviving spouse, adult child, adult descendant, or
parent of the decedent.
o If the affiant is an adult child of the decedent, the affidavit must attest that the decedent
left no surviving spouse.
o If the affiant is an adult descendant of the decedent, the affidavit must attest that the
decedent left no surviving spouse and no surviving adult child.
o If the affiant is a parent of the decedent, the affidavit must attest that the decedent left no
surviving spouse, no surviving adult child, and no surviving adult descendant.
• The date of death and the address of the decedent's last residence.
• A statement attesting that the total amount in all qualified accounts held by the decedent in all
financial institutions known to the affiant does not exceed an aggregate total of $1,000.
• A statement acknowledging that a personal representative has not been appointed to administer
the decedent's estate and attesting that no probate proceeding or summary administration
procedure has been commenced with respect to the estate.
• A statement acknowledging that the affiant has no knowledge of the existence of any last will
and testament or other document or agreement relating to the distribution of the decedent's
estate.
• A statement acknowledging that the payment of the funds constitutes a full release and
discharge of the financial institution's obligation regarding the amount paid.
• A statement acknowledging that the affiant understands that he or she is personally liable to the
creditors of the decedent and other persons rightfully entitled to the funds under the Florida
Probate Code, to the extent the amount paid exceeds the amount properly attributable to the
affiant's share.
• A statement acknowledging that the affiant understands that making a false statement in the
affidavit may be punishable as a criminal offense.

The bill provides the substance of the sworn affidavit that would satisfy the bill's requirements. The
financial institution must maintain a copy or an image of the affidavit in accordance with its customary
retention policies. If a surviving spouse or descendent of the decedent requests a copy of the affidavit
during such time, the financial institution may provide a copy of the affidavit to the requesting surviving
spouse or descendent of the decedent.

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The financial institution is not required to determine whether the contents of the sworn affidavit are
truthful. The payment of the funds by the financial institution to the affiant constitutes the financial
institution's full release and discharge regarding the amount paid. A person does not have a right or
cause of action against the financial institution for taking an action, or for failing to take an action, in
connection with the affidavit or the payment of the funds.

The authorized family member who withdraws the funds is personally liable to the creditors of the
decedent and any other person rightfully entitled to the funds under the Florida Probate Code, to the
extent the amount paid exceeds the amount properly attributable to the authorized family member's
share.

In addition to any other penalty provided by law, a person who knowingly makes a false statement in a
sworn affidavit given to a financial institution to receive a decedent's funds under this section commits
theft, punishable as provided ins. 812.014.

Distribution of intestate property in small estates by filing a sworn affidavit with a court

The bill creates s. 735.304, F.S .. , to provide another form of disposition of personal property without
administration for intestate property in small estates. It allows a beneficiary of an intestate decedent to
file an affidavit with the court to request distribution of certain assets of the decedent. It is available only
if the decedent's probate estate consists solely of the following:
• Personal property classified as exempt under the provisions of s. 732.402, F.S., such as
household furnishings up to a net value of $20,000 and two vehicles;
• Personal property exempt from the claims of creditors under the Florida Constitution, such as
personal property valued at $1,000 or less; and
• Non-exempt personal property valued at less than the sum of:
0 $10,000,
o The amount of preferred funeral expenses, and
o The amount of reasonable and necessary medical and hospital expenses incurred in the
last 60 days of the decedent's final illness.

The decedent must have died more than one year prior to the filing of the affidavit, and no Florida
probate proceeding may be pending or have been previously granted.

To initiate this process, any of the decedent's heirs at law entitled to a share of the intestate estate may
file the affidavit with the court. The affidavit must be signed and verified by the surviving spouse, if any,
and any heirs at law, except that joinder in the affidavit is not required of an heir who will receive a full
intestate share under the proposed distribution of the personal property. Before the filing of the affidavit,
the affiant must make a diligent search and reasonable inquiry for any known or reasonably
ascertainable creditors, and the proposed distribution must make provision for payment of those
creditors to the extent that assets are available or the creditors must consent to the proposed
distribution. The affidavit must be served in the manner of formal notice upon all heirs at law who have
not joined in the affidavit; upon all known or reasonably ascertainable creditors of the decedent; and, if
the decedent at the time of death was over the age of 55 years of age, upon the Agency for Health
Care Administration.

If the court is satisfied that the decedent's estate and the affidavit filed by the heir at law meet the
necessary requirements, the court, by letter or other writing under the seal of the court, may authorize
the payment, transfer, disposition, delivery, or assignment of the tangible or intangible personal
property to those persons entitled.

Any person paying, transferring, delivering, or assigning personal property under the authorization is
forever discharged from liability thereon. Bona fide purchasers for value 116 from those to whom

116 Persons who in good faith provide something of value in exchange for property received.
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personal property of the decedent has been paid, transferred, delivered, or assigned take the property
free of all claims of creditors of the decedent and all rights of the surviving spouse and all other
beneficiaries or heirs at law of the decedent.

Personal property of the decedent that is not exempt from claims of creditors and that remains in the
possession of those to whom it has been paid, delivered, transferred, or assigned will continue to be
liable for claims against the decedent until barred as provided in the Florida Probate Code. Any known
or reasonably ascertainable creditor who did not consent to the proposed distribution and for whom
provision for payment was not made may enforce the claim and, if the creditor prevails, will be awarded
costs, including reasonable attorney fees, against those who joined in the affidavit.

Recipients of the decedent's personal property will be personally liable for a pro rata share of all lawful
claims against the estate of the decedent, but only to the extent of the value on the date of distribution
of the personal property actually received by each recipient, exclusive of the property exempt from
claims of creditors under the constitution and statutes of Florida.

With some exception, after two years from the death of the decedent, neither the decedent's estate nor
those to whom it may be distributed will be liable for any claim against the decedent, unless within that
time proceedings have been taken for the enforcement of the claim.

Any heir or devisee of the decedent who was lawfully entitled to share in the estate but who was not
included in the distribution may enforce all rights in appropriate proceedings against those who signed
the affidavit or received distribution of personal property and, if successful, will be awarded costs
including reasonable attorney fees as in chancery actions.

The bill takes effect July 1, 2020.

B. SECTION DIRECTORY:
Section 1. Amends s. 655.059, F.S., relating to access to books and records; confidentiality; penalty
for disclosure.

Section 2. Creates s. 735.303, F.S., relating to payment to successor without court proceedings.

Section 3. Creates s. 735.304, F.S., relating to disposition without administration of intestate property
in small estates.

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

II. FISCAL ANALYSIS & ECONOMIC IMPACT STATEMENT

A. FISCAL IMPACT ON STATE GOVERNMENT:

1. Revenues:
None.

2. Expenditures:
None.

B. FISCAL IMPACT ON LOCAL GOVERNMENTS:

1. Revenues:

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Clerks of court may charge filing fees for the process created in the bill for disposition of personal
property without administration for intestate property in small estates.
2. Expenditures:
There may be additional expenditures for courts to administer the process created in the bill for
disposition of personal property without administration for intestate property in small estates.

C. DIRECT ECONOMIC IMPACT ON PRIVATE SECTOR:
The impact on the private sector is indeterminate. The portion of the bill providing a process for
receiving up to $1,000 in qualified accounts from a financial institution may prevent families from
incurring court costs and attorney fees to probate the decedent's estate in order to obtain the funds
prior to the funds being given to the state as unclaimed property after five years. However, the
authorized family member who withdraws the funds is personally liable to any person rightfully entitled
to the funds under the Florida Probate Code, to the extent the amount paid exceeds the amount
properly attributable to the authorized family member's share. A decedent's family may still incur court
costs and attorney fees following the withdrawal of funds if there is subsequent disagreement or
confusion as to how much each family member is owed or if the person who withdrew funds does not
remit money to those rightfully entitled to the funds. Additionally, unlike in the summary administration
process or the unclaimed property process, an heir or devisee rightfully owed money that he or she did
not receive after funds were withdrawn from the financial institution will not be awarded attorney's fees
and costs in an action to enforce the claim. 117

D. FISCAL COMMENTS:
None.

Ill. COMMENTS

A. CONSTITUTIONAL ISSUES:

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

2. Other:
None.

B. RULE-MAKING AUTHORITY:
None.

C. DRAFTING ISSUES OR OTHER COMMENTS:
In the portion of the bill providing a process for receiving up to $1,000 in qualified accounts from a
financial institution, there is no attestation that the value of the decedent's entire estate is under $1,000.
Therefore, it is possible that the funds which a financial institution can release pursuant to that process
may be part of a larger probate estate that is otherwise subject to formal or summary administration
proceedings under the Florida Probate Code.

117 Any heir or devisee of the decedent who was lawfully entitled to share in the estate but who was not included in an order of

summary administration and distribution is entitled to receive reasonable attorney's fees and costs if they prevail in an action to enforce
their claim. S. 735.206(4)(9), F.S. Similarly, the process for a beneficiary to receive up to $10,000 by filing an unclaimed property
affidavit provides that any heir or devisee of the owner, who was lawfully entitled to share in the property but did not receive his or her
share of the property, may enforce his or her rights in appropriate proceedings against those who received the property and will be
awarded costs and attorney's fees. S. 717.1243, F.S.
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The bill's prioritization of individuals defined as a "family member" who can receive the decedent's
funds directly from a financial institution does not track the prioritization of the decedent's heirs as
prescribed by the rules of intestate succession found in part I of ch. 732, F.S.
Unlike in the summary administration process or the unclaimed property process, an heir or devisee
rightfully owed money that he or she did not receive after funds were withdrawn from qualified accounts
at a financial institution will not be awarded attorney's fees and costs in an action to enforce the
claim. 118

The exception to the confidentiality of books and records provided in the bill only creates an exception
for the process by which $1,000 can be received directly from the financial institution. There is no
similar exception related to formal probate proceedings, summary probate proceedings, the process for
disposition of personal property without administration, or the process created in the bill for disposition
of personal property without administration for intestate property in small estates.

IV. AMENDMENTS/ COMMITTEE SUBSTITUTE CHANGES

On January 28, 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:
• Amends the process by which a family member of a decedent who died intestate may provide an
affidavit to a financial institution in Florida and receive funds from the decedent's qualified accounts
at the financial institution. Specifically, the committee substitute makes the following changes:
o Moves the statute from the financial institutions codes to the Florida Probate Code.
o Lowers from $10,000 to $1,000 the aggregate amount of qualified accounts that may be
withdrawn from the financial institution.
o Allows the financial institution to pay the funds to the affiant after six months rather than two
years.
o Removes the requirement that the affiant provide notarized letters of other family members
consenting to the affiant's withdrawal of funds.
o Adds that the affiant is personally liable to creditors and other persons rightfully entitled to
the funds.
o Requires the financial institution to retain a copy of the affidavit in accordance with its
customary retention policies rather than seven years.
• Creates a process by which a beneficiary of an intestate decedent may file an affidavit with the
court to request distribution of certain assets of the decedent. This process is available if the
intestate decedent left only personal property that is exempt from probate proceedings, personal
property that is constitutionally protected from creditors' claims, and nonexempt personal property
valued at less than the sum of $10,000 and certain funeral and medical expenses. The decedent
must have died more than one year prior to the filing of the affidavit, and no Florida probate
proceeding may be pending or have been previously granted.
• Makes other technical changes.

The staff analysis has been updated to reflect the committee substitute.

1 1a See supra note 116.
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F L O R D A H O U S E 0 F R E P R E S E N T A T I V E S

CS/HB 1439 2020

1 A bill to be entitled
2 An act relating to bank property of deceased account
3 holders; amending s. 655.059, F.S.; specifying that a
4 financial institution is not prohibited from
5 disclosing specified information and providing copies
6 of specified affidavits to certain persons relating to
7 deceased account holders; creating s. 735.303, F.S.;
8 providing definitions; authorizing a financial
9 institution to pay funds on deposit in certain
10 accounts to a specified family member of a decedent
11 without any court proceeding, order, or judgment under
12 certain circumstances; requiring the family member to
13 provide the financial institution a certified copy of
14 the decedent's death certificate and a specified
15 affidavit in order to receive the funds; providing an
16 affidavit form that the family member may use;
17 providing that the financial institution has no duty
18 to make certain determinations; specifying that a
19 person does not have a right or cause of action
20 against a financial institution for taking certain
21 actions or for failing to take certain actions;
22 providing liability for the family member who
23 withdraws funds; requiring a financial institution to
24 maintain a copy or image of the affidavit for a
25 specified time; authorizing the financial institution

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26 to provide copies of the affidavit to certain persons;
27 providing penalties; creating s. 735.304, F.S.;
28 providing that specified types of personal property
29 are not subject to probate administration or formal
30 proceedings under certain circumstances; providing
31 that specified persons may request distribution of a
32 decedent's assets by affidavit through an informal
33 application under certain circumstances; providing
34 requirements for such affidavits; requiring certain
35 actions relating to the decedent's creditors;
36 providing requirements for service of the affidavit on
37 specified persons; authorizing the court to approve
38 the payment, transfer, disposition, delivery, or
39 assignment of personal property under certain
40 circumstances; providing discharge from liability for
41 certain individuals and entities under certain
42 circumstances; providing certain bona fide purchasers
43 protection from specified claims of creditors and from
44 rights of spouses, beneficiaries, and heirs of
45 decedents; providing for liability against certain
46 personal property for a specified time; authorizing
47 specified creditors to enforce claims and to be
48 awarded costs under certain circumstances; providing
49 liability of recipients of the decedent's personal
50 property under certain circumstances; providing a

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51 limitation on liability of the decedent's estate and
52 recipients of the estate under certain circumstances;
53 providing an exception; authorizing specified heirs or
54 devisees of a decedent to enforce all rights in
55 proceedings under certain circumstances; providing for
56 the award of costs and reasonable attorney fees under
57 certain circumstances; providing an effective date.
58
59 Be It Enacted by the Legislature of the State of Florida:
60
61 Section 1. Paragraph (b) of subsection (2) of section
62 655.059, Florida Statutes, is amended to read:
63 655.059 Access to books and records; confidentiality;
64 penalty for disclosure.-
65 (2)

66 (b) The books and records pertaining to trust accounts and
67 the deposit accounts and loans of depositors, borrowers,
68 members, and stockholders of any financial institution shall be
69 kept confidential by the financial institution and its
70 directors, officers, and employees and may not be released
71 except upon express authorization of the account holder as to
72 her or his own accounts, loans, or voting rights. However,
73 information relating to any loan made by a financial institution
74 may be released without the borrower's authorization in a manner
75 prescribed by the board of directors for the purpose of meeting

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76 the needs of commerce and for fair and accurate credit
77 information. Information may also be released, without the
78 authorization of a member or depositor but in a manner
79 prescribed by the board of directors, to verify or corroborate
80 the existence or amount of a customer's or member's account when
81 such information is reasonably provided to meet the needs of
82 commerce and to ensure accurate credit information. In addition,
83 a financial institution, affiliate, and its subsidiaries, and
84 any holding company of the financial institution or subsidiary
85 of such holding company, may furnish to one another information
86 relating to their customers or members, subject to the
87 requirement that each corporation receiving information that is
88 confidential maintain the confidentiality of such information
89 and not provide or disclose such information to any unaffiliated
90 person or entity. Notwithstanding this paragraph, this
91 subsection does not prohibit:
92 1. A financial institution from disclosing financial
93 information as referenced in this subsection as authorized by
94 Pub. L. No. 106 102 (1999), as set forth in 15 U.S.C. s. 6802
95 (2010) U.S.C.A. s. 6802, as affiended.
96 2. The Florida office of the international banking
97 corporation or international trust entity from sharing books and
98 records under this subsection with the home-country supervisor
99 in accordance with subsection (1).
100 3. A financial institution from disclosing the existence

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101 of and amounts on deposit in any qualified account of a decedent
102 pursuant to s. 735.303, and from providing a copy of any
103 affidavit delivered to the financial institution pursuant
104 thereto, to a person authorized to receive such information
105 under s. 735.303.
106 Section 2. Section 735.303, Florida Statutes, is created
107 to read:
108 735.303 Payment to successor without court proceedings.-
109 (1) As used in this section, the term:
110 (a) "Family member" means:
111 1. The surviving spouse of the decedent;
112 2. An adult child of the decedent if the decedent left no
113 surviving spouse;
114 3. An adult descendant of the decedent if the decedent
115 left no surviving spouse and no surviving adult child; or
116 4. A parent of the decedent if the decedent left no
117 surviving spouse, no surviving adult child, and no surviving
118 adult descendant.
119 (b) "Qualified account" means a depository account or
120 certificate of deposit held by a financial institution in the
121 sole name of the decedent without a pay-on-death or any other
122 survivor designation.
123 (2) A financial institution in this state may pay to the
124 family member of a decedent, without any court proceeding,
125 order, or judgment, the funds on deposit in all qualified

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126 accounts of the decedent at the financial institution if the
127 total amount of the combined funds in the qualified accounts at
128 the financial institution do not exceed an aggregate total of
129 $1,000. The financial institution may not make such payment
130 earlier than 6 months after the date of the decedent's death.
131 (3) In order to receive the funds described in subsection
132 (2), the family member must provide to the financial institution
133 a certified copy of the decedent's death certificate and a sworn
134 affidavit that includes all of the following:
135 (a) A statement attesting that the affiant is the
136 surviving spouse, adult child, adult descendant, or parent of
137 the decedent.
138 1. If the affiant is an adult child of the decedent, the
139 affidavit must attest that the decedent left no surviving
140 spouse.
141 2. If the affiant is an adult descendant of the decedent,
142 the affidavit must attest that the decedent left no surviving
143 spouse and no surviving adult child.
144 3. If the affiant is a parent of the decedent, the
145 affidavit must attest that the decedent left no surviving
146 spouse, no surviving adult child, and no surviving adult
147 descendant.
148 (b) The date of death and the address of the decedent's
149 last residence.
150 (c) A statement attesting that the total amount in all

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151 qualified accounts held by the decedent in all financial
152 institutions known to the affiant does not exceed an aggregate
153 total of $1,000.
154 (d) A statement acknowledging that a personal
155 representative has not been appointed to administer the
156 decedent's estate and attesting that no probate proceeding or
157 summary administration procedure has been commenced with respect
158 to the estate.
159 (e) A statement acknowledging that the affiant has no
160 knowledge of the existence of any last will and testament or
161 other document or agreement relating to the distribution of the
162 decedent's estate.
163 (f) A statement acknowledging that the payment of the
164 funds constitutes a full release and discharge of the financial
165 institution's obligation regarding the amount paid.
166 (g) A statement acknowledging that the affiant understands
167 that he or she is personally liable to the creditors of the
168 decedent and other persons rightfully entitled to the funds
169 under the Florida Probate Code, to the extent the amount paid
170 exceeds the amount properly attributable to the affiant's share.
171 (h) A statement acknowledging that the affiant understands
172 that making a false statement in the affidavit may be punishable
173 as a criminal offense.
174 (4) The family member may use an affidavit in
175 substantially the following form to fulfill the requirements of

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176 subsection (3):
177
178 AFFIDAVIT UNDER SECTION 735.303, FLORIDA STATUTES, TO OBTAIN
17 9 BANK PROPERTY OF DECEASED ACCOUNT HOLDER: ... (Name of
180 decedent) ...
181 State of ....
182 County of ....
183
184 Before the undersigned authority personally appeared ... (name of
185 affiant) ... , of ... (residential address of affiant) ... , who has
186 been sworn and says the following statements are true:
187 (a) The affiant is (initial one of the following
188 responses) :
189 The surviving spouse of the decedent.
190 A surviving adult child of the decedent, and the
191 decedent left no surviving spouse.
192 .... A surviving adult descendant of the decedent, and the
193 decedent left no surviving spouse and no surviving adult child.
194 .... A surviving parent of the decedent, and the decedent
195 left no surviving spouse, no surviving adult child, and no
196 surviving adult descendant.
197 (b) As shown in the certified death certificate, the date
198 of death of the decedent was ... (date of death) ... , and the
199 address of the decedent's last residence was ... (address of last
200 residence) ....

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201 (c) The affiant is entitled to payment of the funds in the
202 decedent's depository accounts and certificates of deposit held
203 by the financial institution ... (name of financial
204 institution) .... The total amount in all qualified accounts held
205 by the decedent in all financial institutions known to the
206 affiant does not exceed an aggregate total of $1,000. The
207 affiant requests full payment from the financial institution.
208 (d) A personal representative has not been appointed to
209 administer the decedent's estate, and no probate proceeding or
210 summary administration procedure has been commenced with respect
211 to the estate.
212 (e) The affiant has no knowledge of any last will and
213 testament or other document or agreement relating to the
214 distribution of the decedent's estate.
215 (f) The payment of the funds constitutes a full release
216 and discharge of the financial institution regarding the amount
217 paid.
218 (g) The affiant understands that he or she is personally
219 liable to the creditors of the decedent and other persons
220 rightfully entitled to the funds under the Florida Probate Code,
221 to the extent the amount paid exceeds the amount properly
222 attributable to the affiant's share.
223 (h) The affiant understands that making a false statement
224 in this affidavit may be punishable as a criminal offense.
225

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22 6 By ... (signature of Affiant) ...
227
228 Sworn to and subscribed before me this .... day of
22 9 .... by ... (name of Affiant) ... , who is personally
230 known to me or produced .... as identification, and
231 did take an oath.
232
233 (Signature of Notary Public - State of Florida) ...
234 (Print, Type, or Stamp Commissioned Name of Notary
235 Public) ...
236 My commission expires: ... (date of expiration of
237 commission) ...
238 (5) The financial institution is not required to determine
239 whether the contents of the sworn affidavit are truthful. The
240 payment of the funds by the financial institution to the affiant
241 constitutes the financial institution's full release and
242 discharge regarding the amount paid. A person does not have a
243 right or cause of action against the financial institution for
244 taking an action, or for failing to take an action, in
245 connection with the affidavit or the payment of the funds.
246 ( 6) The family member who withdraws the funds under this
247 section is personally liable to the creditors of the decedent
248 and any other person rightfully entitled to the funds under the
249 Florida Probate Code, to the extent the amount paid exceeds the
250 amount properly attributable to the family member's share.

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251 (7) The financial institution shall maintain a copy or an
252 image of the affidavit in accordance with its customary
253 retention policies. If a surviving spouse or descendant of the
254 decedent requests a copy of the affidavit during such time, the
255 financial institution may provide a copy of the affidavit to the
256 requesting surviving spouse or descendant of the decedent.
257 (8) In addition to any other penalty provided by law, a
258 person who knowingly makes a false statement in a sworn
259 affidavit given to a financial institution to receive a
260 decedent's funds under this section commits theft, punishable as
261 provided ins. 812.014.
2 62 Section 3. Section 735.304, Florida Statutes, is created
263 to read:
264 735.304 Disposition without administration of intestate
265 property in small estates.-
266 ( 1) No administration shall be required or formal
2 67 proceedings instituted upon the estate of a decedent who has
268 died intestate leaving only personal property exempt under the
269 provisions of s. 732.402, personal property exempt from the
270 claims of creditors under the Florida Constitution, and
271 nonexempt personal property the value of which does not exceed
272 the sum of $10,000 and the amount of preferred funeral expenses
273 and reasonable and necessary medical and hospital expenses of
274 the last 60 days of the last illness, provided the decedent has
275 been deceased for more than 1 year and no administration of the

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276 decedent's estate is pending in this state or has been
277 previously granted.
278 (2) Any heir at law of the decedent entitled to a share of
279 the intestate estate pursuant to s. 732.102 ors. 732.103 may by
280 affidavit request distribution of assets of the decedent through
281 informal application under this section. The affidavit must be
282 signed and verified by the surviving spouse, if any, and any
283 heirs at law, except that joinder in the affidavit is not
284 required of an heir who will receive a full intestate share
285 under the proposed distribution of the personal property. Before
286 the filing of the affidavit, the affiant must make a diligent
287 search and reasonable inquiry for any known or reasonably
288 ascertainable creditors, and the proposed distribution must make
289 provision for payment of those creditors to the extent that
290 assets are available or the creditors must consent to the
291 proposed distribution. The affidavit must be served in the
292 manner of formal notice upon all heirs at law who have not
293 joined in the affidavit; upon all known or reasonably
294 ascertainable creditors of the decedent; and, if the decedent at
295 the time of death was over the age of 55 years of age, upon the
296 Agency for Health Care Administration.
297 (3) If the court is satisfied that subsection (1) is
298 applicable and the affidavit filed by the heir at law meets the
299 requirements of subsection (2), the court, by letter or other
300 writing under the seal of the court, may authorize the payment,

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301 transfer, disposition, delivery, or assignment of the tangible
302 or intangible personal property to those persons entitled.
303 (a) Any individual, corporation, or other person paying,
304 transferring, delivering, or assigning personal property under
305 the authorization shall be forever discharged from liability
306 thereon.
307 (b) Bona fide purchasers for value from those to whom
308 personal property of the decedent has been paid, transferred,
309 delivered, or assigned shall take the property free of all
310 claims of creditors of the decedent and all rights of the
311 surviving spouse and all other beneficiaries or heirs at law of
312 the decedent.
313 (c) Personal property of the decedent that is not exempt
314 from claims of creditors and that remains in the possession of
315 those to whom it has been paid, delivered, transferred, or
316 assigned shall continue to be liable for claims against the
317 decedent until barred as provided in the Florida Probate Code.
318 Any known or reasonably ascertainable creditor who did not
319 consent to the proposed distribution and for whom provision for
320 payment was not made may enforce the claim and, if the creditor
321 prevails, shall be awarded costs, including reasonable attorney
322 fees, against those who joined in the affidavit.
323 (d) Recipients of the decedent's personal property under
324 this section shall be personally liable for a pro rata share of
325 all lawful claims against the estate of the decedent, but only

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32 6 to the extent of the value on the date of distribution of the
327 personal property actually received by each recipient, exclusive
328 of the property exempt from claims of creditors under the
329 constitution and statutes of Florida.
330 (e) Except as otherwise provided ins. 733.710, after 2
331 years from the death of the decedent, neither the decedent's
332 estate nor those to whom it may be distributed shall be liable
333 for any claim against the decedent, unless within that time
334 proceedings have been taken for the enforcement of the claim.
335 (f) Any heir or devisee of the decedent who was lawfully
336 entitled to share in the estate but who was not included in the
337 distribution under this section may enforce all rights in
338 appropriate proceedings against those who signed the affidavit
339 or received distribution of personal property and, if
340 successful, shall be awarded costs including reasonable attorney
341 fees as in chancery actions.
342 Section 4. This act shall take effect July 1, 2020.

Page 14 of 14

CODING: Words strickeR are deletions; words underlined are additions.
hb1439-01-c1
COMMERCE COMMITTEE

HB 1439 by Rep. Yarborough
Bank Property of Deceased Account Holders

AMENDMENT SUMMARY
February 13, 2020

Amendment 1 by Rep. Yarborough (line 106): The amendment:
• Permits a financial institution to disclose the existence of and amounts on deposit in an
individual account of a decedent when the decedent's assets are the subject of a
summary probate proceeding, a proceeding related to a nonresident decedent's testate
estate, or an affidavit seeking court approval for disposition of the assets without a
probate proceeding.
• Removes language that was intended to prohibit use of the "disposition without
administration of intestate property in small estates" process if administration had been
previously granted.
COMMITTEE/SUBCOMMITTEE AMENDMENT
Bill No. CS/HB 1439 (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 Yarborough offered the following:
3

4 Amendment
5 Remove lines 106-277 and insert:
6 4. A financial institution from disclosing the existence
7 of and amounts on deposit in any individual account of a
8 decedent to a petitioner that filed with the court a petition
9 pursuant to s. 734.1025 ors. 735.203, or to an affiant that
10 filed with the court an affidavit for disposition without
11 administration pursuant to s. 735.301 ors. 735.304.
12 Section 2. Section 735.303, Florida Statutes, is created
13 to read:
14 735.303 Payment to successor without court proceedings.-
15 (1) As used in this section, the term:
16 (a) "Family member" means:
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COMMITTEE/SUBCOMMITTEE AMENDMENT
Bill No. CS/HB 1439 (2020)
Amendment No. 1

17 1. The surviving spouse of the decedent;
18 2. An adult child of the decedent if the decedent left no
19 surviving spouse;
20 3. An adult descendant of the decedent if the decedent
21 left no surviving spouse and no surviving adult child; or
22 4. A parent of the decedent if the decedent left no
23 surviving spouse, no surviving adult child, and no surviving
24 adult descendant.
25 (b) "Qualified account" means a depository account or
26 certificate of deposit held by a financial institution in the
27 sole name of the decedent without a pay-on-death or any other
28 survivor designation.
29 (2) A financial institution in this state may pay to the
30 family member of a decedent, without any court proceeding,
31 order, or judgment, the funds on deposit in all qualified
32 accounts of the decedent at the financial institution if the
33 total amount of the combined funds in the qualified accounts at
34 the financial institution do not exceed an aggregate total of
35 $1,000. The financial institution may not make such payment
36 earlier than 6 months after the date of the decedent's death.
37 (3) In order to receive the funds described in subsection
38 (2), the family member must provide to the financial institution
39 a certified copy of the decedent's death certificate and a sworn
40 affidavit that includes all of the following:

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COMMITTEE/SUBCOMMITTEE AMENDMENT
Bill No. CS/HB 1439 (2020)
Amendment No. 1

41 (a) A statement attesting that the affiant is the
42 surviving spouse, adult child, adult descendant, or parent of
43 the decedent.
44 1. If the affiant is an adult child of the decedent, the
45 affidavit must attest that the decedent left no surviving
46 spouse.
47 2. If the affiant is an adult descendant of the decedent,
48 the affidavit must attest that the decedent left no surviving
49 spouse and no surviving adult child.
50 3. If the affiant is a parent of the decedent, the
51 affidavit must attest that the decedent left no surviving
52 spouse, no surviving adult child, and no surviving adult
53 descendant.
54 (b) The date of death and the address of the decedent's
55 last residence.
56 (c) A statement attesting that the total amount in all
57 qualified accounts held by the decedent in all financial
58 institutions known to the affiant does not exceed an aggregate
59 total of $1,000.
60 (d) A statement acknowledging that a personal
61 representative has not been appointed to administer the
62 decedent's estate and attesting that no probate proceeding or
63 summary administration procedure has been commenced with respect
64 to the estate.

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COMMITTEE/SUBCOMMITTEE AMENDMENT
Bill No. CS/HB 1439 (2020)
Amendment No. 1

65 (e) A statement acknowledging that the affiant has no
66 knowledge of the existence of any last will and testament or
67 other document or agreement relating to the distribution of the
68 decedent's estate.
69 (f) A statement acknowledging that the payment of the
70 funds constitutes a full release and discharge of the financial
71 institution's obligation regarding the amount paid.
72 (g) A statement acknowledging that the affiant understands
73 that he or she is personally liable to the creditors of the
74 decedent and other persons rightfully entitled to the funds
75 under the Florida Probate Code, to the extent the amount paid
76 exceeds the amount properly attributable to the affiant's share.
77 (h) A statement acknowledging that the affiant understands
78 that making a false statement in the affidavit may be punishable
79 as a criminal offense.
80 (4) The family member may use an affidavit in
81 substantially the following form to fulfill the requirements of
82 subsection (3):
83
84 AFFIDAVIT UNDER SECTION 735.303, FLORIDA STATUTES, TO OBTAIN
85 BANK PROPERTY OF DECEASED ACCOUNT HOLDER: ... (Name of
86 decedent) .. .
87 State of ... .
88 County of ... .
89
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COMMITTEE/SUBCOMMITTEE AMENDMENT
Bill No. CS/HB 1439 (2020)
Amendment No. 1

90 Before the undersigned authority personally appeared ... (name of
91 affiant) ... , of ... (residential address of affiant) ... , who has
92 been sworn and says the following statements are true:
93 (a) The affiant is (initial one of the following
94 responses):
95 The surviving spouse of the decedent.
96 A surviving adult child of the decedent, and the
97 decedent left no surviving spouse.
98 .... A surviving adult descendant of the decedent, and the
99 decedent left no surviving spouse and no surviving adult child .
100 ... . A surviving parent of the decedent, and the decedent
101 left no surviving spouse, no surviving adult child, and no
102 surviving adult descendant.
103 (b) As shown in the certified death certificate, the date
104 of death of the decedent was ... (date of death) ... , and the
105 address of the decedent's last residence was ... (address of last
106 residence) ....
107 (c) The affiant is entitled to payment of the funds in the
108 decedent's depository accounts and certificates of deposit held
109 by the financial institution ... (name of financial
110 institution) .... The total amount in all qualified accounts held
111 by the decedent in all financial institutions known to the
112 affiant does not exceed an aggregate total of $1,000. The
113 affiant requests full payment from the financial institution.

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COMMITTEE/SUBCOMMITTEE AMENDMENT
Bill No. CS/HB 1439 (2020)
Amendment No. 1

114 (d) A personal representative has not been appointed to
115 administer the decedent's estate, and no probate proceeding or
116 summary administration procedure has been commenced with respect
117 to the estate.
118 (e) The affiant has no knowledge of any last will and
119 testament or other document or agreement relating to the
120 distribution of the decedent's estate.
121 (f) The payment of the funds constitutes a full release
122 and discharge of the financial institution regarding the amount
123 paid.
124 (g) The affiant understands that he or she is personally
125 liable to the creditors of the decedent and other persons
126 rightfully entitled to the funds under the Florida Probate Code,
127 to the extent the amount paid exceeds the amount properly
128 attributable to the affiant's share.
129 (h) The affiant understands that making a false statement
130 in this affidavit may be punishable as a criminal offense.
131
132 By (signature of Affiant) ...
133
134 Sworn to and subscribed before me this .... day of .... by
135 ... (name of Affiant) ... , who is personally known to me or
136 produced .... as identification, and did take an oath.
137
138 ... (Signature of Notary Public - State of Florida) ...
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COMMITTEE/SUBCOMMITTEE AMENDMENT
Bill No. CS/HB 1439 (2020)
Amendment No. 1

139 ... (Print, Type, or Stamp Commissioned Name of Notary
140 Public) ...
141 My commission expires: ... (date of expiration of
142 commission) ...
143 (5) The financial institution is not required to determine
144 whether the contents of the sworn affidavit are truthful. The
145 payment of the funds by the financial institution to the affiant
146 constitutes the financial institution's full release and
147 discharge regarding the amount paid. A person does not have a
148 right or cause of action against the financial institution for
149 taking an action, or for failing to take an action, in
150 connection with the affidavit or the payment of the funds.
151 (6) The family member who withdraws the funds under this
152 section is personally liable to the creditors of the decedent
153 and any other person rightfully entitled to the funds under the
154 Florida Probate Code, to the extent the amount paid exceeds the
155 amount properly attributable to the family member's share.
156 (7) The financial institution shall maintain a copy or an
157 image of the affidavit in accordance with its customary
158 retention policies. If a surviving spouse or descendant of the
159 decedent requests a copy of the affidavit during such time, the
160 financial institution may provide a copy of the affidavit to the
161 requesting surviving spouse or descendant of the decedent.
162 (8) In addition to any other penalty provided by law, a
163 person who knowingly makes a false statement in a sworn
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COMMITTEE/SUBCOMMITTEE AMENDMENT
Bill No. CS/HB 1439 (2020)
Amendment No. 1

164 affidavit given to a financial institution to receive a
165 decedent's funds under this section commits theft, punishable as
166 provided ins. 812.014.
167 Section 3. Section 735.304, Florida Statutes, is created
168 to read:
169 735.304 Disposition without administration of intestate
170 property in small estates.-
171 (1) No administration shall be required or formal
172 proceedings instituted upon the estate of a decedent who has
173 died intestate leaving only personal property exempt under the
174 provisions of s. 732.402, personal property exempt from the
175 claims of creditors under the Florida Constitution, and
176 nonexempt personal property the value of which does not exceed
177 the sum of $10,000 and the amount of preferred funeral expenses
178 and reasonable and necessary medical and hospital expenses of
179 the last 60 days of the last illness, provided the decedent has
180 been deceased for more than 1 year and no administration of the
181 decedent's estate is pending in this state.

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HOUSE OF REPRESENTATIVES STAFF ANALYSIS
BILL#: HB 7071 PCB JDC 20-03 Contingency Risk Multipliers
SPONSOR(S): Judiciary Committee, Beltran and others
TIED BILLS: IDEN./SIM. BILLS: CS/SB 914

REFERENCE ACTION ANALYST STAFF DIRECTOR or
BUDGET/POLICY CHIEF

Orig. Comm.: Judiciary Committee 13 Y, 5 N Jones Luczynski

1) Commerce Committee

SUMMARY ANALYSIS
In certain situations after the resolution of a court case, the court may require one party to pay the opposing
party's attorney fees. Several Florida and federal statutes, known as "fee-shifting statutes," entitle the
prevailing party to a "reasonable" attorney fee as a matter of right. When a fee-shifting statute applies, the
court must determine what constitutes a "reasonable" attorney fee.

Florida courts calculate reasonable attorney fees under the "lodestar approach." This approach requires the
court to determine the number of hours reasonably expended on the case and multiply that number by the
reasonable hourly rate, which produces the "lodestar amount."

In certain cases, courts further increase the lodestar amount by applying a "contingency risk multiplier"
("contingency fee multiplier'') a concept that arose from judicial interpretations of fee-shifting statutes. In Florida
courts, the size of the contingency risk multiplier varies from 1.0 to 2.5 based on the likelihood of success at
the outset of the case, as follows:
• 1.0 to 1.5, if the trial court determines that success was more likely than not at the outset
• 1.5 to 2.0, if the trial court determines that the likelihood of success was approximately even at the
outset
• 2.0 to 2.5, if the trial court determines that success was unlikely at the outset

In 1992, federal courts began to restrict the use of contingency risk multipliers, in most, if not all,
circumstances. While there has been a shift away from that standard as of 2010, federal case law provides
that a contingency risk multiplier may only be used in rare circumstances, and that the multiplier is completely
unavailable under certain federal statutes. The Florida Supreme Court has taken a different approach, holding
in 2017 that the contingency risk multiplier in Florida courts is not subject to a "rare and exceptional
circumstances" requirement. Accordingly, currently Florida and federal law differ with respect to this issue.

The bill creates a strong presumption that the lodestar amount awarded by a court in a property insurance
policy dispute is sufficient and reasonable. This presumption can only be overcome in rare and exceptional
circumstances, with evidence that the plaintiff could not have reasonably retained competent counsel to take
his or her case.

The bill appears to have no fiscal impact on state or local governments. The bill may have a positive direct
economic impact on the private sector in the form of decreases in property insurance rates if litigation costs,
which are a contributing factor to those rates, are reduced.

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

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

I. SUBSTANTIVE ANALYSIS

A. EFFECT OF PROPOSED CHANGES:
Background

In certain situations, a court may require one party to pay the opposing party's attorney fees. The
traditional English Rule entitled a prevailing party to attorney fees as a matter of right. Florida, however,
with a majority of other U.S. jurisdictions, adopted the American Rule, under which each party is
responsible for its own attorney fees unless a statute provides an entitlement to fees.

Contingency Fees

A contingency fee is an attorney fee that is charged only if the lawsuit is successful or favorably settled
out of court. 1 In turn, an attorney and a client may enter into a contingency fee contract, agreeing that
the client will pay the attorney a fee only if the attorney successfully recovers for the client.

The Florida Supreme Court, through its Rules Regulating the Florida Bar, allows contingency fee
contracts but restricts their use. 2 Rule 4-1.5(f) prohibits contingency fees in criminal defense and certain
family law proceedings. 3 The rule also requires a contingency fee agreement to:
• Be in writing.
• State the method by which the fee is to be determined.
• State whether expenses are to be deducted before or after the contingency fee is calculated.
• In certain types of cases, include other provisions ensuring the client is aware of the
agreement's terms. 4

Upon conclusion of a contingency fee case, the attorney must provide the client a written statement
stating the outcome of the case, the amount remitted to the client, and how the attorney calculated the
amount. 5

Statutorily Provided Attorney Fees

Several Florida and federal statutes state that a prevailing party in court proceedings is entitled to
attorney fees as a matter of right. 6 These statutes are known as "fee-shifting statutes" and often entitle
the prevailing party to a reasonable attorney fee.7 When a fee-shifting statute applies, the court must
determine and calculate what constitutes a reasonable attorney fee.

Lodestar Approach

In 1985, the Florida Supreme Court held that courts should calculate the amount of statutorily-
authorized attorney fees under the "lodestar approach."8 Under this approach, the first step is for the
court to determine the number of hours reasonably expended on the case. The second step requires
the court to determine a reasonable hourly rate. The number of hours reasonably expended

1 See Black's Law Dictionary 338 (8th ed. 2004).
2 R. Regulating Fla. Bar 4-1.5(f).
3 R. Regulating Fla. Bar 4-1.5(f)(3).
4 R. Regulating Fla. Bar 4-1.5(f)(1) and (4).
5
R. Regulating Fla. Bar 4-1.5(f)(1).
6
See, e.g., s. 627.428, F.S. (providing that an insured who prevails against an insurer is entitled to "a reasonable sum" of attorney
fees); s. 501.2105, F.S. (providing that the prevailing party in an action under the Florida Deceptive and Unfair Trade Practices Act
(FDUTPA) is entitled to "a reasonable legal fee"); 42 U.S.C. s. 1988(b) (providing that a prevailing party seeking to enforce specified
civil rights statutes may recover "a reasonable attorney's fee").
7
Sees. 627.428, F.S., which is sometimes referred to as the "one-way attorney fees statute."
8
Fla. Patient's Comp. Fund v. Rowe, 472 So. 2d 1145 (Fla. 1985).
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(determined in the first step), multiplied by the reasonable hourly rate (determined in the second step),
produces the "lodestar amount," which is considered an objective basis for what the attorney fee
amount should be.

Contingency Risk Multiplier

In certain cases, the court increases the lodestar amount by applying a contingency risk multiplier. 9 The
concept of the contingency risk multiplier arose from judicial interpretations of statutory authorization of
attorney fees in particular cases, 10 but the Legislature may also expressly provide for use of a
contingency risk multiplier in certain cases. 11 In a 1990 case, the Florida Supreme Court discussed
three different types of cases and whether a contingency risk multiplier should be applied in each case,
as follows:
• Public policy enforcement cases. These cases may involve discrimination, environmental
issues, and consumer protection issues. In these cases, a contingency risk multiplier is usually
inappropriate.
• Family law, eminent domain, estate, and trust cases. In these cases, a contingency risk
multiplier is usually inappropriate.
• Tort and contract claims, including insurance cases. In these cases, a contingency risk multiplier
may be applied if the plaintiff can demonstrate the following factors show a need for the
multiplier:
o Whether the relevant market requires a contingency risk multiplier to obtain counsel;
o Whether the attorney can mitigate the risk of nonpayment; and
o Whether any other factors established in Rowe 12 support the use of the multiplier. 13

Further, in the same decision, the Court noted that the size of the contingency risk multiplier varies from
1.0 to 2.5 based on the likelihood of success at the outset of the case, as follows:
• 1.0 to 1.5, if the trial court determines that success was more likely than not at the outset
• 1.5 to 2.0, if the trial court determines that the likelihood of success was approximately even at
the outset
• 2.0 to 2.5, if the trial court determines that success was unlikely at the outset. 14

Therefore, under current law, an attorney is more likely to receive a higher contingency risk multiplier-
and thus a higher attorney risk award-if he or she takes a case that at the outset seems unlikely to
succeed.

Federal Court Treatment of the Contingency Risk Multiplier

9
The Court may also adjust the amount based on the results obtained by the attorney. Standard Guar. Ins. Co. v. Quanstrom, 555 So.
2d 828, 830-31 (Fla. 1990). Contingency risk multipliers are also referred to as contingency fee multipliers.
10
The rationale for using a contingency risk multiplier to increase an attorney fee award is that plaintiffs and plaintiffs' attorneys
generally do not recover any money unless they prevail. The attorney fee multiplier induces attorneys to take a risk on cases they might
not otherwise take, allowing would-be plaintiffs to find attorneys willing to represent them.
11
Sees. 790.33(3)(f)1, F.S. (explicitly authorizing a contingency fee multiplier in certain cases relating to the preemption of firearm and
ammunition regulation).
12The Rowe factors were based upon Disciplinary Rule 2-106(b) of the Florida Bar (which is now Rule of Professional Conduct 4-1.5),
and were as follows:
• Time and labor required, novelty and difficulty of the question involved, and the skill and requisite to perform the legal
service properly.
• Likelihood, if apparent to the client, that the acceptance of employment would preclude other employment by the lawyer.
• Fee customarily charged in the locality for similar legal services.
• Amount involved and results obtained.
• Time limitations imposed by the client and circumstances.
• Nature and length of the professional relationship with the client.
• Experience, reputation, and ability of the lawyer(s) providing services.
• Whether the fee is a fixed or contingency fee.
Rowe, 472 So. 2d at 1150-1151.
13 Quanstrom, 555 So. 2d at 833-35.
14
Id. at 834.
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Part of the Florida Supreme Court's rationale for adopting the contingency risk multiplier framework in
1985 was that, at the time, it was being applied in federal courts. 15 However, in 1992, the U.S. Supreme
Court decided Burlington v. Dague, in which it rejected the use of a contingency risk multiplier under
certain federal risk-shifting statutes. Dague essentially signaled that the Supreme Court was closing the
door on the contingency risk multiplier's use in most, if not all, federal cases. 16

In 2010, in the case of Perdue v. Kenny A. ex. rel. Winn, a case involving a class action lawsuit filed on
behalf of 3,000 children in the Georgia foster care system, the U.S. Supreme Court again addressed
the contingency risk multiplier issue. 17 The plaintiffs argued in the underlying case that the foster care
system in two counties was constitutionally deficient. The case went to mediation, and the parties
entered a consent decree resolving all issues. Subsequently, the plaintiffs' attorneys sought attorney
risks under 42 U.S.C. s. 1988. 18

The federal district court calculated the fees using the lodestar approach, arriving at a $6 million figure,
and then applied a 1.75 contingency risk multiplier, for a total attorney fee of $10.5 million. The district
court justified the contingency risk multiplier by finding that the attorneys had:
• Advanced $1.7 million with no ongoing reimbursement.
• Worked on a contingency basis, and therefore were not guaranteed payment.
• Displayed a high degree of skill, commitment, dedication, and professionalism.
• Achieved extraordinary results. 19

On review, the U.S. Supreme Court reversed the district court's calculation of attorney fees, remanding
the case because the district court did not provide adequate justification for the 75 percent increase.
The Court reiterated that "there is a strong presumption that the lodestar figure is reasonable," but that
such presumption "may be overcome in those rare circumstances in which the lodestar does not
adequately take into account a factor that may properly be considered in determining a reasonable
fee." 20 The Court also determined that a contingency risk multiplier may be applicable in "exceptional"
circumstances. 21

Thus, the Perdue Court determined that the application of contingency risk multipliers may sometimes
be appropriate, while also issuing several warnings about contingency risk multipliers, as follows:
• When a trial court fails to give detailed explanations for why it applies a contingency risk
multiplier, "widely disparate awards may be made, and awards may be influenced . . . by a
judge's subjective opinion regarding particular attorneys or the importance of the case." 22
• "[U]njustified enhancements that serve only to enrich attorneys are not consistent" with the aims
of a statute that seek to compensate plaintiffs. 23
• In many cases, attorney fees "are not paid by the individuals responsible for the constitutional or
statutory violations on which the judgment is based .... Instead, the fees are paid ... by state
and local taxpayers," resulting in a diversion of funds from other government programs. 24

15
See Rowe, 472 So. 2d at 1146 ("[W]e ... adopt the federal lodestar approach for computing reasonable attorney fees").
16 See City of Burlington v. Dague, 112 S. Ct. 2638 (1992) ("Thus, enhancement for the contingency risk posed by each case would
encourage meritorious claims to be brought, but only at the social cost of indiscriminately encouraging nonmeritorious claims to be
brought as well ... [W]e hold that enhancement for contingency is not permitted under the fee-shifting statutes at issue").
17 Perdue v. Kenny A. ex rel. Winn, 130 S. Ct. 1662 (2010).
18
42 U.S.C. s. 1988(b) allows the court to award attorney fees to the prevailing party in certain civil rights actions.
19 Perdue, 130 S. Ct. at 1670.
20 Id. at 1673 (emphasis added).

21 Id.
22 See id. at 1676.
23 See id.
24 See id. at 1677.
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Recent Florida Supreme Court Treatment of the Contingency Risk Multiplier

In 2017, the Florida Supreme Court rejected the U.S. Supreme Court's Dague decision, instead holding
that the contingency risk multiplier in Florida courts is not subject to the "rare and exceptional
circumstances" requirement. 25 The Court acknowledged that, based upon its decision to maintain the
applicability of the contingency risk multiplier without the restrictions implemented by the Dague
decision, Florida "separat[ed] from federal precedent in this area."26

Attorney Fees Applicable to Property Insurance Litigation

Current Florida law provides that when a court issues a judgment against an insurer, and in favor of an
insured who is represented by an attorney, the court shall order that the insurer pay a reasonable
amount of attorney fees to an insured's attorney. 27 This provision regarding attorney fees is applicable
to various insurance claim disputes, including property insurance claim disputes. 28

Effect of Proposed Changes

For property insurance litigation, the bill applies a standard for awarding a contingency risk multiplier
that is similar to the standard applied in federal courts, in that it allows for the multiplier only in "rare and
exceptional" circumstances. 29 The bill provides that the award of attorney fees creates a strong
presumption that the lodestar amount awarded by a court in a property insurance policy case is
sufficient and reasonable, and thus that the court should not ordinarily apply a contingency risk
multiplier. The plaintiff can overcome this presumption only in a rare and exceptional circumstance, and
only if he or she can demonstrate that he or she could not have otherwise reasonably retained
competent counsel.

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

8. SECTION DIRECTORY:
Section 1: Amends s. 627 .428, F. S., relating to attorney fees.
Section 2: Provides an effective date of July 1, 2020.

II. FISCAL ANALYSIS & ECONOMIC IMPACT STATEMENT

A. FISCAL IMPACT ON STATE GOVERNMENT:

1. Revenues:
None.

2. Expenditures:
None.

8. FISCAL IMPACT ON LOCAL GOVERNMENTS:

1. Revenues:

25 See Joyce v. Federated Nat'/ Ins. Co., 228 So. 3d 1122 (Fla. 2017) ("[W]ith all due deference to the United States Supreme Court,
we do not accept the Dague majority's rationale for rejecting contingency fee multipliers").
26 1d. at, 1132
27 Id.
28
Of note, the Florida legislature has expressly prohibited the use of contingency risk multipliers for personal injury protection cases.
Sees. 627.736(8)(c), F.S.
29 In essence, the bill shifts the standard for the use of a contingency risk multiplier in property insurance cases away from that of the
Joyce case.
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None.

2. Expenditures:
None.

C. DIRECT ECONOMIC IMPACT ON PRIVATE SECTOR:
The bill's creation of a strong presumption in favor of a "lodestar" fee, only to be overcome in a "rare
and exceptional circumstance" may reduce the amount of fees some attorneys recover if contingency
risk multipliers are applied in fewer cases. Property insurance rates are based upon multiple factors,
including litigation costs. To the extent the bill reduces litigation costs for property insurance cases, it
may cause property insurance rates to decrease. The bill may also result in a reduced incentive for
attorneys to litigate property insurance cases. This may cause fewer property insurance cases to be
litigated, which might further reduce property insurance rates. However, this could have the unintended
consequence of making it more difficult to obtain an attorney for a property insurance case, resulting in
the applicability of the contingency risk multiplier when a case is litigated.

D. FISCAL COMMENTS:
None.

Ill. COMMENTS

A. CONSTITUTIONAL ISSUES:

1. Applicability of Municipality/County Mandates Provision:
Not applicable. This bill does not appear to affect county or municipal governments.
2. Other:
None.

B. RULE-MAKING AUTHORITY:
Not applicable.

C. DRAFTING ISSUES OR OTHER COMMENTS:
None.

IV. AMENDMENTS/ COMMITTEE SUBSTITUTE CHANGES

On January 30, 2020, the Judiciary Committee considered the bill as a PCB, adopted a strike-all
amendment and reported the PCB favorably, as amended. The amendment:
• Limited the PCB's application to claims arising under a property insurance policy.
• Removed the prohibition of a contingency risk multiplier, instead creating a strong presumption that
a contingency risk multiplier is inappropriate to enhance a lodestar calculation for attorney fees.
• Clarified that the presumption can be overcome only in a rare and exceptional circumstance.

This analysis is drafted to the bill, which was the PCB as amended by the Judiciary Committee.

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

HB 7071 2020

1 A bill to be entitled
2 An act relating to contingency risk multipliers;
3 amending s. 627.428, F.S.; providing that, for certain
4 attorney fees awarded for claims arising under
5 property insurance policies, a strong presumption is
6 created that a lodestar fee is sufficient and
7 reasonable; providing that such presumption may be
8 rebutted only under certain circumstances; providing
9 an effective date.
10
11 Be It Enacted by the Legislature of the State of Florida:
12
13 Section 1. Subsection (4) is added to section 627.428,
14 Florida Statutes, to read:
15 627.428 Attorney fees.-
16 (4) In an award of attorney fees under this section for a
17 claim arising under a property insurance policy, a strong
18 presumption is created that a lodestar fee is sufficient and
19 reasonable. Such presumption may be rebutted only in a rare and
20 exceptional circumstance with evidence that competent counsel
21 could not be retained in a reasonable manner.
22 Section 2. This act shall take effect July 1, 2020.

Page 1 of 1

CODING: Words stricken are deletions; words underlined are additions.
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HOUSE OF REPRESENTATIVES STAFF ANALYSIS
BILL #: PCS for CS/HB 203 Growth Management
SPONSOR(S): Commerce Committee
TIED BILLS: IDEN./SIM. BILLS: SB 410

REFERENCE ACTION ANALYST STAFF DIRECTOR or
BUDGET/POLICY CHIEF

Orig. Comm.: Commerce Committee Wright Hamon

SUMMARY ANALYSIS
Local governments are required to adopt county or municipal comprehensive plans to manage future growth in
their communities. Local comprehensive plans are required to have nine specific elements, which does not
include a specific property rights element. Plans must be renewed every seven years. Municipal plans
adopted after January 1, 2019, must incorporate development orders existing before the plan's effective date.

Local governments and developers are authorized to enter into development agreements, which are contracts
that provide the developer with vested rights by freezing the applicable existing zoning regulations in exchange
for public benefits. A development agreement may be amended or canceled by mutual consent of the parties
to the agreement or by their successors in interest.

Procedures for municipal annexation of unincorporated territory and exercise of extra-territorial powers by
municipalities are provided by general or special law. Before local annexation procedures may begin, the
municipal government must prepare a report certifying, among other requirements, that no part of the area to
be annexed falls within the boundary of another incorporated municipality. The lnterlocal Service Boundary
Agreement Act authorizes an alternative to these procedures through interlocal agreements, which may
provide an annexation process by securing the consent of residents within the area to be annexed.

Approved developments of regional impact (DRls) are developments that, because of their character,
magnitude or location, substantially affect the health, safety, or welfare of the citizens of more than one county.
Statutorily required state reviews of DRI agreements were eliminated in 2018, and the responsibility for
overseeing existing DRI agreements was transferred to local governments. The provision related to amending
land uses for essentially built out DRI agreements was also eliminated.

The bill:
• requires a local comprehensive plan to have a property rights element which requires the local
government to consider certain private property rights in its decision-making process. Local
governments must adopt this element during their next plan amendment process, or by July 1, 2023.
• provides that all municipal comprehensive plans effective after January 1, 2019, must incorporate
development orders existing before the plan's effective date.
• provides that a developer and the local government are authorized to amend or cancel a development
agreement without securing the consent of other parcel owners of property, unless such amendment or
cancellation directly modifies the uses or entitlements of an owner's property.
• prohibits a municipality from annexing area within another municipality's jurisdiction without the other
municipality's consent, unless an interlocal agreement to the contrary is in effect.
• allows existing DRI agreements that are classified as essentially built out and were valid on or before
April 6, 2018, to exchange land uses under certain circumstances.

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

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

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

I. SUBSTANTIVE ANALYSIS

A EFFECT OF PROPOSED CHANGES:
Local Comprehensive Plans

Private Property Rights

The "Bert Harris Jr., Private Property Rights Protection Act" (Harris Act) entitles private property owners
to relief when a specific action of a governmental entity inordinately burdens the owner's existing use,
or a vested right to a specific use, of real property. 1 The Harris Act recognizes that the inordinate
burden, restriction, or limitation on private property rights as applied may fall short of a taking under the
State Constitution or the U.S. Constitution and establishes a separate and distinct cause of action for
relief, or payment of compensation, when a new law, rule, or ordinance of the state or a political entity
in the state, unfairly affects real property. 2 The Harris Act applies generally to state and local
governments but not to the U.S. government, federal agencies, or state or local government entities
exercising formally delegated U.S. or federal agency powers. 3

In addition to action inordinately burdening a property right, an owner may seek relief when a state or
local governmental entity imposes a condition on the proposed use of the real property that amounts to
a prohibited exaction. 4 A prohibited exaction occurs when an imposed condition lacks an essential
nexus to a legitimate public purpose and is not roughly proportionate to the impacts of the proposed
use that the governmental entity seeks to avoid, minimize, or mitigate. 5

The "Florida Land Use and Environmental Dispute Resolution Act" (Land Use Act) allows a landowner
to request relief from a government entity's development order or enforcement action when the order or
action is unreasonable or unfairly burdens the use of the owner's real property. 6 Parties in pending
judicial proceedings may also use the dispute resolution process outlined in the Land Use Act if all
parties agree and the court approves.7

State and Local Comprehensive Plans

Laws protecting private property rights are balanced against the state's need to effectively and
efficiently plan, coordinate, and deliver government services amid the state's continued growth and
development. 8 The State Comprehensive Plan provides long-range policy guidance for the orderly
social, economic, and physical growth of the state, 9 which must be consistent with the protection of
private property rights. 10 Local governments are required to adopt local comprehensive plans to
manage the future growth of their communities under the Community Planning Act. 11

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. 12 The Community Planning Act governs how local governments create and

1
S. 70.001(2), F.S.
2 S. 70.001 (1 ), F .S.
3
S. 70.001(3)(c), F.S.
4
S. 70.45(2), F.S.
5
S. 70.45(1)(c), F.S.
s S. 70.51 (3), F.S.
7
S. 70.51(29), F.S.
8
Sees. 186.002(1)(b), F.S.
9
S. 187.101(1), F.S.
10 S. 187.101(3), F.S. The plan's goals and policies must also be reasonably applied where they are economically and environmentally

feasible and not contrary to the public interest.

12 See ch. 2011-139, s. 17, L.O.F.

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adopt their local comprehensive plans. The Legislature intended for all governmental entities in the
state to recognize and respect judicially acknowledged or constitutionally protected private property
rights. 13 Authority under the Community Planning Act must be exercised with sensitivity for private
property rights, without undue restriction, and leave property owners free from actions by others that
would harm their property or constitute an inordinate burden on property rights under the Harris Act. 14

Local Comprehensive Plan Elements

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. 15 Plans also are required to identify procedures for monitoring, evaluating, and
appraising implementation of the plan. 16 Plans may include optional elements, 17 but must include the
following nine elements:
• Capital improvements; 18
• Future land use plan; 19
• Intergovernmental coordination; 20
• Conservation; 21
• Transportation; 22
• Sanitary sewer, solid waste, drainage, potable water, and aquifer recharge; 23
• Recreation and open space; 24
• Housing; 25 and
• Coastal management (for coastal local governments). 26

Counties and municipalities may employ individual comprehensive plans or joint plans if both entities
agree. Counties and municipalities may also coordinate plans in any combined manner that aligns with
their common interests. 27 A county plan controls in a municipality until a municipal comprehensive plan
is adopted. New municipalities must adopt a comprehensive plan within three years after the date of
incorporation. 28

Amendments to a Local Comprehensive Plan

Local governments must review and amend their comprehensive plans every seven years to reflect any
changes in state requirements. 29 Within a year of any such amendments, local governments must
adopt or amend local land use regulations consistent with the amended plan. 30 A local government is
not required to review its comprehensive plan before its regular review period unless the law
specifically requires otherwise. 31

13 S. 163.3161(10), F.S.
14 S. 163.3161(10), F.S.
15 S. 163.3177(1), F.S.
16 S. 163.3177(1)(d), F.S.
17 S. 163.3177(1)(a), F.S.
18
S. 163.3177(3)(a), F.S. The capital improvements element must be reviewed by the local government on an annual basis.
19 S. 163.3177(6)(a), F.S.

2o S. 163.3177(6)(h), F.S.
21
S. 163.3177(6)(d), F.S.
22 S. 163.3177(6)(b), F.S.
23
S. 163.3177(6)(c), F.S.
24 S. 163.3177(6)(e), F.S.
25 S. 163.3177(6)(f), F.S.
26 S. 163.3177(6)(9), F.S.
27
S. 163.3167(1), F.S.
28
S. 163.3167(3), F.S.
29 S. 163.3191, F.S.
30 S. 163.3203, F.S.
31
S. 163.3161(12), F.S.
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Generally, a local government amending its comprehensive plan must follow an expedited state review
process. 32 Certain plan amendments, including amendments required to reflect a change in state
requirements, must follow the state coordinated review process for the adoption of comprehensive
plans. 33 Under the state process, the state land planning agency is responsible for plan review,
coordination, and preparing and transmitting comments to the local government. 34 The Department of
Economic Opportunity (DEO) is designated as the state land planning agency. 35

Under the state coordinated review process, local governments must hold a properly noticed public
hearing 36 about the proposed amendment before sending it for comment from several reviewing
agencies, including DEO, the Department of Environmental Protection, the appropriate regional
planning council, and the Department of State. 37 Local governments or government agencies within the
state filing a written request with the governing body are also entitled to copies of the amendment. 38
Comments on the amendment must be received within 30 days after DEO receives the proposed plan
amendment. 39

DEO must provide a written report within 60 days of receipt of the proposed amendment if it elects to
review the amendment. 40 The report must state the agency's objections, recommendations, and
comments with certain specificity, and must be based on written, not oral, comments. 41 Within 180 days
of receiving the report from DEO, the local government must review the report and any written
comments and hold a second properly noticed public hearing on the adoption of the amendment. 42
Adopted plan amendments must be sent to DEO and any agency or government that provided timely
comments within 1O working days after the hearing. 43

Once DEO receives the adopted amendment and determines it is complete, it has 45 days to
determine if the adopted plan amendment complies with the law44 and to issue on its website a notice
of intent finding whether or not the amendment is compliant. 45 A compliance review is limited to the
findings identified in DEO's original report unless the adopted amendment is substantially different from
the reviewed amendment. 46 Unless the local comprehensive plan amendment is challenged, it takes
effect pursuant to the notice of intent. 47 If there is a timely-filed challenge, then the plan amendment will
not take effect until DEO or the Administration Commission enters a final order determining the adopted
amendment is in compliance with the law. 48

Requirements for Local Land Development Regulations and Comprehensive Plans

Section 163.3202(2), F.S., outlines the minimum provisions that counties and municipalities should
include in their local government land development regulations. These provisions include:
• Regulating the subdivision of land;

32 S. 163.3184(3)(a), F.S.
33 S. 163.3184(2)(c), F.S.
34
S. 163.3184(4)(a), F.S.
35
S. 163.3164(44), F.S.
36
S. 163.3184(4)(b) and (11)(b)1., F.S.
37 S. 163.3184(4)(b) and (c), F.S.
3s S. 163.3184(4)(b), F.S.
39 S. 163.3184(4)(c), F.S.

40 S. 163.3184(4)(d)1., F.S.
41
S. 163.3184(4)(d)1., F.S. All written communication the agency received or generated regarding a proposed amendment must be
identified with enough information to allow for copies of documents to be requested. S. 163.3184(4)(d)2., F.S.
42 S. 163.3184(4)(e)1. and (11)(b)2., F.S. If the hearing is not held within 180 days of receipt of the report, the amendment is deemed

withdrawn absent an agreement and notice to DEO and all affected persons that provided comments. S. 163.3184(4)(e)1., F.S.
43 S. 163.3184(4)(e)2., F.S.
44
S. 163.3184(4)(e)3. and 4., F.S.
4
5 S. 163.3184(4)(e)4., F.S.
46 fd.
47
S. 163.3184(4)(e)5., F.S.
46 /d.
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• Regulating the use of land and water;
• Providing for protection of potable water wellfields;
• Regulating areas subject to seasonal and periodic flooding and provide for drainage and
stormwater management;
• Ensuring the protection of environmentally sensitive lands designated in the comprehensive
plan;
• Regulating signage;
• Addressing concurrency;
• Ensuring safe and convenient onsite traffic flow; and
• Maintaining the existing density of residential properties or recreational vehicle parks.

Local comprehensive plans adopted after January 1, 2019, and all land development regulations
adopted to implement the plan, must incorporate a development order existing before the
comprehensive plan's effective date. The plan may not impair a party's ability to complete development
in accordance with the development order and must vest the density4 9 and intensity50 approved by the
development order without any limitations or modifications. Land development regulations must
incorporate preexisting development orders. 51

Effect of Proposed Changes

The bill requires local governments to include a property rights element in their comprehensive plans at
their next proposed plan amendment or by July 1, 2023, whichever comes first. The bill provides that a
local government may develop its own property rights language if such language does not conflict with
the model statement of rights. The model statement of rights requires the local government to consider
the following 4 elements in local decision-making:

1. Physical possession and control of the property owner's interests in the property, including
easements, leases, or mineral rights;
2. Use, maintenance, development, and improvement of the property for personal use or the
use of any other person, subject to state law and local ordinances;
3. Privacy and exclusion of others from the property to protect the owner's possessions and
property; and
4. Disposal of the property owner's property through sale or gift.

The bill provides that all local comprehensive plans effective after January 1, 2019, instead of adopted
after January 1, 2019, and all land development regulations adopted to implement the plan, must
incorporate development orders existing before the plan's effective date.

Local Government Development Agreements

Background

Under the Florida Local Government Development Agreement Act, 52 local governments are authorized
to enter into development agreements with developers. 53 A "development agreement" is a "contract
between a local government and a property owner/developer, which provides the developer with vested

49
S. 163.3164(12), F.S., defines "density" as an objective measure of the number of people or residential units allowed per unit of land,
such as residents or employees per acre.
50
S. 163.3164(22), F.S., defines "intensity" as an objective measurement of the extent to which land may be developed or used,
including the consumption or use of the space above, on, or below the ground; the measurement of the use of or demand on natural
resources; and the measurement of the use of or demand on facilities and services.
51 Ss. 163.3167(3) and 163.3203, F.S.

52 Ss. 163.3220- 163.3243, F.S.
53 S. 163.3220(4), F.S.
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rights by freezing the existing zoning regulations applicable to a property in exchange for public
benefits." 54

Any local government may, by ordinance, establish procedures and requirements, as provided in the
Act, to consider and enter into a development agreement with any person having a legal or equitable
interest in real property located within its jurisdiction. 55

A development agreement must include the following: 56
• a legal description of the land subject to the agreement, and the names of its legal and
equitable owners;
• the duration of the agreement;
• the development uses permitted on the land, including population densities, and building
intensities and height;
• a description of public facilities that will service the development, including who shall provide
such facilities; the date any new facilities, if needed, will be constructed; and a schedule to
assure public facilities are available concurrent with the impacts of the development;
• a description of any reservation or dedication of land for public purposes;
• a description of all local development permits approved or needed to be approved for the
development of the land;
• a finding that the development permitted or proposed is consistent with the local government's
comprehensive plan and land development regulations;
• a description of any conditions, terms, restrictions, or other requirements determined to be
necessary by the local government for the public health, safety, or welfare of its citizens; and
• a statement indicating that the failure of the agreement to address a particular permit, condition,
term, or restriction shall not relieve the developer of the necessity of complying with the law
governing said permitting requirements, conditions, term, or restriction.

A development agreement may also provide that the entire development or any phase thereof be
commenced or completed within a specific period of time. 57 Within 14 days after a local government
enters into a development agreement, the local government must record the agreement with the clerk
of the circuit court in the county where the local government is located. A development agreement will
not be effective until it is properly recorded in the public records of the county. 58

The burdens of the development agreement are binding upon and the benefits of the agreement inure
to all successors in interest to the parties to the agreement. 59

A development agreement may be amended or canceled by mutual consent of the parties to the
agreement or by their successors in interest. 60

Effect of Proposed Changes

The bill provides that a party or its designated successor in interest to a development agreement and
the local government are authorized to amend or cancel a development agreement without securing
the consent of other parcel owners of property that were originally subject to the development
agreement unless the amendment, modification or termination directly modifies the allowable uses or
entitlements of an owner's property.

54 Morgran Co., Inc. v. Orange County, 818 So. 2d 640 (Fla. 5th DCA 2002); 7 Fla. Jur 2d Building, Zoning, and Land Controls§ 168

(2019).
55 S. 163.3223, F.S; 7 Fla. Jur 2d Building, Zoning, and Land Controls§ 168 (2019).
56
S. 163.3227(1), F.S.
57
S. 163.3227(2), F.S; 7 Fla. Jur 2d Building, Zoning, and Land Controls§ 168 (2019).
58 S. 163.3239, F.S; 7 Fla. Jur 2d Building, Zoning, and Land Controls§ 168 (2019).
59
S. 163.3239, F.S.
60
S. 163.3237, F.S.
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Municipal Annexation

Background

Section 2(c}, Art. VIII of the Florida Constitution provides that municipal annexation of unincorporated
territory, merger of municipalities, and exercise of extra-territorial powers by municipalities must be as
provided by general or special law. This provision authorizes the Legislature to annex unincorporated
property into a municipality by special act. It also authorizes the Legislature to establish procedures in
general law for the annexation of property.

The Legislature established local annexation procedures by general law in 1974, with the enactment of
ch. 171, F.S., the "Municipal Annexation or Contraction Act. "61 This act describes the way in which
property may be annexed or de-annexed by cities without legislative action. The purpose of the act is to
set forth procedures for adjusting the boundaries of municipalities through annexations or contractions
of corporate limits, and criteria for determining when annexations or contractions may take place so as
to:
• ensure sound urban development and accommodation to growth;
• establish uniform legislative standards for the adjustment of municipal boundaries;
• ensure efficient provision of urban services to areas that become urban in character; and
• ensure areas are not annexed unless municipal services can be provided to those areas. 62

Pursuant to s. 171.042, F.S., before local annexation procedures may begin, the governing body of the
municipality must prepare a report containing plans for providing urban services to any area to be
annexed. A copy of the report must be filed with the board of county commissioners where the
municipality is located. This report must include appropriate maps, plans for extending municipal
services, timetables, and financing methodologies. It must certify that the area proposed to be annexed
is appropriate for annexation because it meets the following standards and requirements described by
s. 171.043, F.S.:
• The area to be annexed must be an unincorporated area that is contiguous to the boundary of
the annexing municipality. 63
• The area to be annexed must be reasonably compact. 64
• No part of the area to be annexed may fall within the boundary of another incorporated
municipality.
• Part or all of the land to be annexed must be developed for urban purposes. 65
• Alternatively, if the proposed area is not developed for urban purposes, it can either border at
least 60 percent of a developed area, or provide a necessary bridge between two urban areas
for the extension of municipal services.

The lnterlocal Service Boundary Agreement Act (lnterlocal Boundary Act} 66 authorizes an alternative to
these statutory procedures. Intended to encourage intergovernmental coordination in planning, delivery
of services, and boundary adjustments, the primary purpose of the lnterlocal Boundary Act is to
promote establishing boundaries that reduce the costs of local governments, prevent duplication of

61
Ch. 74-190, s. 1, Laws of Fla.
62 S. 171.021, F.S.
63 This means that a substantial part of the boundary of the area to be annexed has a common boundary with the municipality. There
are specified exceptions for cases in which an area is separated from the city's boundary by a publicly owned county park, right-of-way
or body of water.
64
S. 171.031 (12), F.S., defines "compactness" as concentration of a piece of property in a single area and precludes any action which
would create enclaves, pockets, or finger areas in serpentine patterns. Any annexation proceeding in any county in the state is required
to be designed in such a manner as to ensure that the area will be reasonably compact.
65
An area developed for urban purposes is defined as an area which meets any one of the following standards: (a) a total resident
population equal to at least two persons per acre; (b) a total resident population equal to at least one person per acre, with at least 60
percent of subdivided lots one acre or less; or (c) at least 60 percent of the total lots used for urban purposes, with at least 60 percent of
the total urban residential acreage divided into lots of five acres or less.
66
Ch. 171, Part II, F.S. Sees. 171.20, F.S.
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services, increase local government transparency and accountability, and reduce intergovernmental
conflicts. 67

An interlocal agreement may provide an annexation procedure with a flexible process for securing the
consent of those within the area to be annexed, while continuing the requirement for approval of the
proposed annexation by a majority of the registered voters, the land owners, or both, within the
proposed annexation area. The alternate process also must provide for certain disclosures pertaining to
a privately owned solid waste disposal facility included within the proposed annexation area, including
whether the owner of the facility objects to the proposed annexation. 68

Effect of Proposed Changes

The bill amends s. 171.042, F.S., prohibiting a municipality from annexing an area within another
municipality's jurisdiction without the other municipality's consent.

The bill provides an exception to these annexation requirements when an interlocal agreement is in
effect for property annexed by a municipality.

Developments of Regional Impact

Background

Developments of Regional Impact (DRls) are defined as "any development which, because of its
character, magnitude, or location, would have a substantial effect on the health, safety, or welfare of
citizens of more than one county." 69

The ORI program was initially created in 1972 as an interim program intended to be replaced by
comprehensive planning and permitting programs. 70 The program provided a process to identify
regional impacts stemming from large developments and appropriate provisions to mitigate impacts on
state and regional resources.

In 2015, 71 the Legislature amended the laws related to DRl's to provide that new ORI-sized
developments proposed after July 1, 2015, must be approved by a comprehensive plan amendment in
lieu of the state review process provided for ins. 380.06, F.S. The Legislature also amended the laws
related to comprehensive plans to require that plan amendments be reviewed under the state
coordinated review process. 72 Additional changes were made in 2016 requiring ORI reviews to follow
the state coordinated review process if the development, or an amendment to the development,
required an amendment to the comprehensive plan. 73

However, state and regional reviews of existing DRls were eliminated in 2018. 74 The responsibility for
implementation of, and amendments to, existing ORI agreements and development orders was
transferred to the local governments where the developments are located. 75

67
S. 171.201, F.S.
68 S. 171.205, F.S.
69
s. 380.06(1), F.S.
70 The Florida Senate, Committee on Community Affairs, Interim Report 2012-114, September 2011, citing: Thomas G. Pelham, A

Historical Perspective for Evaluating Florida's Evolving Growth Management Process, in Growth Management in Florida: Planning for
Paradise, 8 (Timothy S. Chapin, Charles E. Connerly, and Harrison T. Higgins eds. 2005).
71
Ch. 2015-30, Laws of Fla.
72 s. 163.3184(2)(c), F .S.
73 Ch. 2016-148, Laws of Fla.
74
Ch. 2018-158, Laws of Fla.
75
S. 380.06(4)(a), (7), F.S.
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Currently, an amendment to a development order for an approved ORI may not amend to an earlier
date until the local government agrees that the approved ORI will not be subject to downzoning, unit
density reduction, or intensity reduction, unless: 76
• the local government can demonstrate that substantial changes in the conditions underlying the
approval of the development order have occurred,
• the development order was based on substantially inaccurate information provided by the
developer, or
• the change is clearly established by local government to be essential to the public health,
safety, or welfare.

Any proposed change to a previously approved ORI must be reviewed by the local government based
on the standards and procedures in its adopted local comprehensive plan and adopted local land
development regulations, including, but not limited to, procedures for notice to the applicant and the
public regarding the issuance of development orders. 77

However, a change to a ORI that has the effect of reducing the originally approved height, density, or
intensity of the development must be reviewed by the local government based on the standards in the
local comprehensive plan at the time the development was originally approved. If the proposed change
would have been consistent with the comprehensive plan in effect when the development was originally
approved, the local government may approve the change. 78

ORI agreements that were classified as essentially built out and valid on or before April 6, 2018, were
preserved, but the provisions that allowed such agreements to be amended to exchange approved land
uses was eliminated. 79

For such agreements, a ORI is essentially built out if: 80
• all the mitigation requirements in the development order were satisfied, all developers were in
compliance with all applicable terms and conditions of the development order except the
buildout date, and the amount of proposed development that remained to be built was less than
40 percent of any applicable development-of-regional-impact threshold; or
• the project was determined to be an essentially built-out development of regional impact through
an agreement executed by the developer, the state land planning agency, and the local
government.

Effect of Proposed Changes

The bill allows any ORI agreement previously classified as or officially determined to be essentially built
out, and entered into on or before April 6, 2018, to be amended to authorize the developer to exchange
approved land uses.

Such amendments may only be made subject to the developer demonstrating that the exchange will
not increase impacts to public facilities.

Any such amendments must be made pursuant to the processes adopted by the local government for
amending development orders.

B. SECTION DIRECTORY:

76 S. 380.06(4)(a), F.S.
77
S. 380.06(7)(a), F.S.
78 [d.
79 Ch. 2018-158, Laws of Fla.
80
S. 380.06(15)(g)3., 4., F.S. (2017).
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Section 1. Amends s. 163.3167, F.S., requiring comprehensive plans initially effective after a
certain date to incorporate development orders preexisting the plan.

Section 2. Amends s. 163.3177, F.S., requiring a comprehensive plan to include a private property
rights element.

Section 3. Amends s. 163.3237, F.S., relating to development agreement amendments and
cancelations.

Section 4. Amends s. 172.042, F.S., relating to municipal annexation requirements.

Section 5. Amends s. 380.06, F.S., allowing certain agreements relating to an approved
development of regional impact to be amended under certain circumstances.

Section 6. Provides an effective date of July 1, 2020.

II. FISCAL ANALYSIS & ECONOMIC IMPACT STATEMENT

A. FISCAL IMPACT ON STATE GOVERNMENT:

1. Revenues:
None.

2. Expenditures:
None.

B. FISCAL IMPACT ON LOCAL GOVERNMENTS:

1. Revenues:
None.

2. Expenditures:
The bill may have an insignificant fiscal impact on local governments not scheduled to review their
plans before 2024 due to the requirement to amend their comprehensive plans by July 1, 2023, to
include a property rights element.

C. DIRECT ECONOMIC IMPACT ON PRIVATE SECTOR:
None.

D. FISCAL COMMENTS:
None.

Ill. COMMENTS

A. CONSTITUTIONAL ISSUES:

1. Applicability of Municipality/County Mandates Provision:
The county/municipality mandates provision of Art. VII, s. 18 of the Florida Constitution may apply
because this bill requires counties and municipalities that are not scheduled to amend their
comprehensive plans before 2024 to amend their plans by July 1, 2023 to include the statement on
property rights; and for counties and municipalities to amend their comprehensive plans to include
development orders existing before the comprehensive plan's effective date if it does not already do
STORAGE NAME: pcs0203.COM PAGE: 10
DATE: 2/11/2020
so. However, an exemption may apply given that laws having an insignificant fiscal impact are
exempt from the requirements of Art. VII, s. 18 of the Florida Constitution.

2. Other:
None.

B. RULE-MAKING AUTHORITY:
The bill neither provides authority for nor requires rulemaking by executive branch agencies.

C. DRAFTING ISSUES OR OTHER COMMENTS:
None.

IV. AMENDMENTS/ COMMITTEE SUBSTITUTE CHANGES

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FLORIDA H O U S E 0 F REPRESENTATIVES

PCS for HB 203 ORIGINAL 2020

1 A bill to be entitled
2 An act relating to growth management; amending s.
3 163.3167, F.S.; providing requirements for a
4 comprehensive plan initially effective after a certain
5 date and related land development regulations;
6 amending s. 163.3177, F.S.; requiring the
7 comprehensive plan to include a property rights
8 element; providing a statement of rights that a local
9 government may use; requiring local government to
10 adopt a property rights element by a specified date;
11 providing that a local government's property rights
12 element may not conflict with the statutorily provided
13 statement of rights; amending s. 163.3237, F.S.;
14 providing that certain property owners are not
15 required to consent to development agreement changes
16 under certain.circumstances; amending s. 171.042,
17 F.S.; prohibiting a municipality from annexing
18 specified areas under ce~tain circumstances; amending
19 s. 380.06, F.S.; allowing certain developments of
20 regional impact agreements to be amended under certain
21 circumstances; providing an effective date.
22
23 Be It Enacted by the Legislature of the State of Florida:
24
25 Section 1. Subsection (3) of section 163.3167, Florida

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FLORIDA H O U S E 0 F REPRESENTATIVES

PCS for HB 203 ORIGINAL 2020

26 Statutes, is amended to read:
27 163.3167 Scope of act.-
28 (3) A municipality established after the effective date of
29 this act shall, within 1 year after incorporation, establish a
30 local planning agency, pursuant to s. 163.3174, and prepare and
31 adopt a comprehensive plan of the type and in the manner set out
32 in this act within 3 years after the date of such incorporation.
33 A county comprehensive plan is controlling until the
34 municipality adopts a comprehensive plan in accordance with this
35 act. A comprehensive plan effective adopted after January 1,
36 2019, and all land development regulations adopted to implement
37 the comprehensive plan must incorporate each development order
38 existing before the comprehensive plan's effective date, may not
39 impair the completion of a development in accordance with such
40 existing development order, and must vest the density and
41 intensity approved by such development order existing on the
42 effective date of the comprehensive plan without limitation or
43 modification.
44 Section 2. Paragraph (i) is added to subsection (6) of
45 section 163.3177, Florida Statutes, to read:
46 163.3177 Required and optional elements of comprehensive
47 plan; studies and surveys.-
48 (6) In addition to the requirements of subsections (1)-
49 (5), the comprehensive plan shall include the following
50 elements:

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FLORIDA H O U S E 0 F REPRESENTATIVES

PCS for HB 203 ORIGINAL 2020

51 (i) 1. In accordance with the legislative intent expressed
52 in ss. 163.3161(10) and 187.101(3) that governmental entities
53 respect judicially acknowledged and constitutionally protected
54 private property rights, each local government shall include in
55 its comprehensive plan a property rights element to ensure that
56 private property rights are considered in local decisionmaking.
57 A local government may adopt its own property rights element or
58 use the following statement of rights:
59
60 The following rights shall be considered in local
61 decisionmaking:
62
63 1. The right of a property owner to physically possess
64 and control his or her interests in the property,
65 including easements, leases, or mineral rights.
66
67 2. The right of a property owner to use, maintain,
68 develop, and improve his or her property for personal
69 use or the use of any other person, subject to state
70 law and local ordinances.
71
72 3. The right of the property owner to privacy and to
73 exclude others from the property to protect the
74 owner's possessions and property.
75

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PCS for HB 203 ORIGINAL 2020

76 4. The right of a property owner to dispose of his or her
77 property through sale or gift.
78
79 2. Each local government must adopt a property rights
80 element in its comprehensive plan by the earlier of its next
81 proposed plan amendment or July 1, 2023. If a local government
82 adopts its own property rights element, the element may not
83 conflict with the statement of rights provided in subparagraph
84 1.
85 Section 3. Section 163.3237, Florida Statutes, is amended
86 to read:
87 163.3237 Amendment or cancellation of a development
88 agreement.-A development agreement may be amended or canceled by
89 mutual consent of the parties to the agreement or by their
90 successors in interest. A party or its designated successor in
91 interest to a development agreement and a local government are
92 authorized to amend or cancel a development agreement without
93 securing the consent of other parcel owners whose property was
94 originally subject to the development agreement, unless the
95 amendment or cancellation directly modifies the allowable uses
96 or entitlements of such owner's property.
97 Section 4. Subsection (4) is added to section 171.042,
98 Florida Statutes, to read:
99 171.042 Prerequisites to annexation.-
100 (4) Except as otherwise provided ins. 171.205, a

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

PCS for HB 203 ORIGINAL 2020

101 municipality may not annex an area within another municipal
102 jurisdiction without the other municipality's consent.
103 Section 5. Paragraph (d) of subsection (4) of section
104 380.06, Florida Statutes, is amended to read:
105 380.06 Developments of regional impact.-
106 (4) LOCAL GOVERNMENT DEVELOPMENT ORDER.-
107 (d) Any agreement entered into by the state land planning
108 agency, the developer, and the local government with respect to
109 an approved development of regional impact previously classified
110 as essentially built out, or any other official determination
111 that an approved development of regional impact is essentially
112 built out, remains valid unless it expired on or before April 6,
113 2018 and may be amended pursuant to the processes adopted by the
114 local government for amending development orders. These
115 agreements may authorize the developer to exchange approved land
116 uses subject to demonstrating that the exchange will not
117 increase impacts to public facilities. This paragraph applies to
118 all such adopted agreements and amendments thereto effective on
119 or after April 6, 2018.
120 Section 6. This act shall take effect July 1, 2020.

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COMMERCE COMMITTEE

PCS for CS/HB 203 by Rep. McClain
GROWTH MANAGEMENT

AMENDMENT SUMMARY
February 13, 2020

Amendment 1 by Rep. McClain (Line 43):

• Requires the Department of Economic Opportunity to give preference to counties
and municipalities with populations less than 200,000 when selecting
applications for funding for technical assistance related to certain determinations
that need to be made when developing or amending a local government's
comprehensive plan.

Amendment 2 by Rep. Stone (Line 102):

• Provides that a municipality may not extend its water or sewer service into the
unincorporated area of a county, without consent of the county, if the county
already provides the same service within the county.
• Applies only to extensions of service on or after July 1, 2020.

Amendment 3 by Rep. Fischer (Line 102):

• Provides that all utility permit applications for use of the public right-of-way must
be processed within the timeframe that currently applies only to permit
applications submitted by communications services providers.

Amendment 4 by Rep. Sabatini (Line 24):

• Allows the prevailing party in a claim brought under part II of Chapter 163, F.S.,
relating to local growth policy and land development regulation, to seek attorney
fees and costs.

Amendment 5 by Rep. Santiago (Line 24):

• Provides that certain entities may acquire title to any water or wastewater plant
utility facilities, other facilities, or property which was acquired by the use of
eminent domain, if 10 or more years have elapsed since the date of the
acquisition by eminent domain.
COMMITTEE/SUBCOMMITTEE AMENDMENT
Bill No. PCS for CS/HB 203 (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 McClain offered the following:
3

4 Amendment (with title amendment)
5 Between lines 43 and 44, insert:
6 Section 2. Present subsection (4) of section 163.3168,
7 Florida Statutes, is redesignated as subsection (5), and a new
8 subsection (4) is added to that section, to read:
9 163.3168 Planning innovations and technical assistance.-
10 (4) When selecting applications for funding for technical
11 assistance, the state land planning agency shall give a
12 preference to a county that has a population of 200,000 or less,
13 and to a municipality located within such a county, for
14 assistance in determining whether the area in and around a
15 proposed multiuse corridor interchange as described ins.
16 338.2278 contains appropriate land uses and natural resource
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COMMITTEE/SUBCOMMITTEE AMENDMENT
Bill No. PCS for CS/HB 203 (2020)
Amendment No. 1

17 protections and for aid in developing or amending a local
18 government's comprehensive plan to provide for such uses,
19 protections, and intended benefits as provided ins. 338.2278.
20
21
22 T I T L E A ME N D ME N T
23 Between lines 5 and 6, insert:
24 amending s. 163.3168, F.S.; requiring the Department of Economic
25 Opportunity to give a preference to certain counties and
26 municipalities when selecting applications for funding for
27 technical assistance;

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COMMITTEE/SUBCOMMITTEE AMENDMENT
Bill No. PCS for CS/HB 203 (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 Stone offered the following:
3
4 Amendment (with title amendment)
5 Between lines 102 and 103, insert:
6 Section 5. Subsection (2) of section 180.02, Florida
7 Statutes, is amended to read:
8 Section 180.02 Powers of municipalities.-
9 (2) Any municipality may extend and execute all of its
10 corporate powers applicable for the accomplishment of the
11 purposes of this chapter outside of its corporate limits, as
12 hereinafter provided and as may be desirable or necessary for
13 the promotion of the public health, safety and welfare or for
14 the accomplishment of the purposes of this chapter; provided,
15 however, that said corporate powers shall not extend or apply
16 within the corporate limits of another municipality. Further, a
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COMMITTEE/SUBCOMMITTEE AMENDMENT
Bill No. PCS for CS/HB 203 (2020)
Amendment No. 2

17 municipality may not extend or execute its corporate powers for
18 the purpose of providing water service or sewage collection and
19 disposal service within the unincorporated area of a county that
20 has exercised its authority under s. 153.03 to provide the same
21 service or services within the county without the express
22 consent of a majority of the commissioners at a duly noticed
23 meeting of the board of county commissioners of that county. A
24 municipality, without such consent, may continue to provide
25 water service or sewage collection and disposal service within
26 an unincorporated area in which the municipality provided such
27 service or services prior to July 1, 2020.
28
29
30 T I T L E A ME N D ME N T
31 Remove line 18 and insert:
32 specified areas under certain circumstances; amending s. 180.02,
33 F.S.; providing conditions under which a municipality may
34 exercise certain powers within the unincorporated area of a
35 county; amending

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COMMITTEE/SUBCOMMITTEE AMENDMENT
Bill No. PCS for CS/HB 203 (2020)
Amendment No. 3

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 Fischer offered the following:
3
4 Amendment (with title amendment)
5 Between lines 102 and 103, insert:
6 Section 5. Subsection (2) of section 337.401, Florida
7 Statutes, is amended to read:
8 337.401 Use of right-of-way for utilities subject to
9 regulation; permit; fees.-
10 (2) The authority may grant to any person who is a
11 resident of this state, or to any corporation which is organized
12 under the laws of this state or licensed to do business within
13 this state, the use of a right-of-way for the utility in
14 accordance with such rules or regulations as the authority may
15 adopt. No utility shall be installed, located, or relocated
16 unless authorized by a written permit issued by the authority.

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COMMITTEE/SUBCOMMITTEE AMENDMENT
Bill No. PCS for CS/HB 203 (2020)
Amendment No. 3

17 However, for public roads or publicly owned rail corridors under
18 the jurisdiction of the department, a utility relocation
19 schedule and relocation agreement may be executed in lieu of a
20 written permit. The permit shall require the permitholder to be
21 responsible for any damage resulting from the issuance of such
22 permit. The authority may initiate injunctive proceedings as
23 provided ins. 120.69 to enforce provisions of this subsection
24 or any rule or order issued or entered into pursuant thereto.~
25 permit application required by an authority under this section
26 must be processed and acted upon consistent with the timeframes
27 provided in subparagraphs (7) (d)7., 8., and 9.
28
29
30
31 T I T L E A ME N D ME N T
32 Remove line 18 and insert:
33 specified areas under certain circumstances; amending s.
34 337.401, F.S.; providing a timeframe for processing permit
35 applications for use of right-of-way by utilities; amending

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COMMITTEE/SUBCOMMITTEE AMENDMENT
Bill No. PCS for CS/HB 203 (2020)
Amendment No. 4

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 Sabatini offered the following:
3

4 Amendment (with title amendment)
5 Between lines 24 and 25, insert:
6 Section 1. Subsection (5) of section 57.112, Florida
7 Statutes, is amended to read:
8 57.112 Attorney fees and costs and damages; preempted
9 local actions. -
10 (5) This section does not apply to local ordinances
11 adopted pursuant to part II of chapter 163, s. 553.73 7 ors.
12 633.202.
13
14
15 TITLE AMENDMENT

16 Between lines 2 and 3, insert:
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COMMITTEE/SUBCOMMITTEE AMENDMENT
Bill No. PCS for CS/HB 203 (2020)
Amendment No. 4

17 57.112, F.S.; deleting a provision that prohibits
18 specified attorney fees and costs from applying to
19 local ordinances adopted pursuant to the growth policy
20 act; amending s.

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COMMITTEE/SUBCOMMITTEE AMENDMENT
Bill No. PCS for CS/HB 203 (2020)
Amendment No. 5

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 Santiago offered the following:
3

4 Amendment (with title amendment)
5 Between lines 24 and 25, insert:
6 Section 1. Paragraph (g) of subsection (7) of section
7 163.01, Florida Statutes, is amended to read:
8 163.01 Florida Interlocal Cooperation Act of 1969.-
9 ( 7)

10 (g)l. Notwithstanding any other provisions of this
11 section, any separate legal entity created under this section,
12 the membership of which is limited to municipalities and
13 counties of the state, and which may include a special district
14 in addition to a municipality or county or both, may acquire,
15 own, construct, improve, operate, and manage public facilities,
16 or finance facilities on behalf of any person, relating to a
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COMMITTEE/SUBCOMMITTEE AMENDMENT
Bill No. PCS for CS/HB 203 (2020)
Amendment No. 5

17 governmental function or purpose, including, but not limited to,
18 wastewater facilities, water or alternative water supply
19 facilities, and water reuse facilities, which may serve
20 populations within or outside of the members of the entity.
21 Notwithstanding s. 367.171(7), any separate legal entity created
22 under this paragraph is not subject to Public Service Commission
23 jurisdiction. The separate legal entity may not provide utility
24 services within the service area of an existing utility system
25 unless it has received the consent of the utility.
26 2. For purposes of this paragraph, the term:
27 a. "Host government" means the governing body of the
28 county, if the largest number of equivalent residential
29 connections currently served by a system of the utility is
30 located in the unincorporated area, or the governing body of a
31 municipality, if the largest number of equivalent residential
32 connections currently served by a system of the utility is
33 located within that municipality's boundaries.
34 b. "Separate legal entity" means any entity created by
35 interlocal agreement the membership of which is limited to two
36 or more special districts, municipalities, or counties of the
37 state, but which entity is legally separate and apart from any
38 of its member governments.
39 c. "System" means a water or wastewater facility or group
40 of such facilities owned by one entity or affiliate entities.

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COMMITTEE/SUBCOMMITTEE AMENDMENT
Bill No. PCS for CS/HB 203 (2020)
Amendment No. 5

41 d. "Utility" means a water or wastewater utility and
42 includes every person, separate legal entity, lessee, trustee,
43 or receiver owning, operating, managing, or controlling a
44 system, or proposing construction of a system, who is providing,
45 or proposes to provide, water or wastewater service to the
46 public for compensation.
47 3. A separate legal entity that seeks to acquire any
48 utility shall notify the host government in writing by certified
49 mail about the contemplated acquisition not less than 30 days
50 before any proposed transfer of ownership, use, or possession of
51 any utility assets by such separate legal entity. The potential
52 acquisition notice shall be provided to the legislative head of
53 the governing body of the host government and to its chief
54 administrative officer and shall provide the name and address of
55 a contact person for the separate legal entity and information
56 identified ins. 367.071(4) (a) concerning the contemplated
57 acquisition.
58 4.a. Within 30 days following receipt of the notice, the
59 host government may adopt a resolution to become a member of the
60 separate legal entity, adopt a resolution to approve the utility
61 acquisition, or adopt a resolution to prohibit the utility
62 acquisition by the separate legal entity if the host government
63 determines that the proposed acquisition is not in the public
64 interest. A resolution adopted by the host government which

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Bill No. PCS for CS/HB 203 (2020)
Amendment No. 5

65 prohibits the acquisition may include conditions that would make
66 the proposal acceptable to the host government.
67 b. If a host government adopts a membership resolution,
68 the separate legal entity shall accept the host government as a
69 member on the same basis as its existing members before any
70 transfer of ownership, use, or possession of the utility or the
71 utility facilities. If a host government adopts a resolution to
72 approve the utility acquisition, the separate legal entity may
73 complete the acquisition. If a host government adopts a
74 prohibition resolution, the separate legal entity may not
75 acquire the utility within that host government's territory
76 without the specific consent of the host government by future
77 resolution. If a host government does not adopt a prohibition
78 resolution or an approval resolution, the separate legal entity
79 may proceed to acquire the utility after the 30-day notice
80 period without further notice.
81 5. After the acquisition or construction of any utility
82 systems by a separate legal entity created under this paragraph,
83 revenues or any other income may not be transferred or paid to a
84 member of a separate legal entity, or to any other special
85 district, county, or municipality, from user fees or other
86 charges or revenues generated from customers that are not
87 physically located within the jurisdictional or service delivery
88 boundaries of the member, special district, county, or
89 municipality receiving the transfer or payment. Any transfer or
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COMMITTEE/SUBCOMMITTEE AMENDMENT
Bill No. PCS for CS/HB 203 (2020)
Amendment No. 5

90 payment to a member, special district, or other local government
91 must be solely from user fees or other charges or revenues
92 generated from customers that are physically located within the
93 jurisdictional or service delivery boundaries of the member,
94 special district, or local government receiving the transfer of
95 payment.
96 6. This section is an alternative provision otherwise
97 provided by law as authorized ins. 4, Art. VIII of the State
98 Constitution for any transfer of power as a result of an
99 acquisition of a utility by a separate legal entity from a
100 municipality, county, or special district.
101 7. The entity may finance or refinance the acquisition,
102 construction, expansion, and improvement of such facilities
103 relating to a governmental function or purpose through the
104 issuance of its bonds, notes, or other obligations under this
105 section or as otherwise authorized by law. The entity has all
106 the powers provided by the interlocal agreement under which it
107 is created or which are necessary to finance, own, operate, or
108 manage the public facility, including, without limitation, the
109 power to establish rates, charges, and fees for products or
110 services provided by it, the power to levy special assessments,
111 the power to sell or finance all or a portion of such facility,
112 and the power to contract with a public or private entity to
113 manage and operate such facilities or to provide or receive
114 facilities, services, or products. Except as may be limited by
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COMMITTEE/SUBCOMMITTEE AMENDMENT
Bill No. PCS for CS/HB 203 (2020)
Amendment No. 5

115 the interlocal agreement under which the entity is created, all
116 of the privileges, benefits, powers, and terms of s. 125.01,
117 relating to counties, ands. 166.021, relating to
118 municipalities, are fully applicable to the entity. However,
119 neither the entity nor any of its members on behalf of the
120 entity may exercise the power of eminent domain over the
121 facilities or property of any existing water or wastewater plant
122 utility system, nor may the entity acquire title to any water or
123 wastewater plant utility facilities, other facilities, or
124 property which was acquired by the use of eminent domain after
125 the effective date of this act unless 10 or more years have
126 elapsed since the date of the acquisition by eminent domain.
127 Bonds, notes, and other obligations issued by the entity are
128 issued on behalf of the public agencies that are members of the
129 entity.
130 8. Any entity created under this section may also issue
131 bond anticipation notes in connection with the authorization,
132 issuance, and sale of bonds. The bonds may be issued as serial
133 bonds or as term bonds or both. Any entity may issue capital
134 appreciation bonds or variable rate bonds. Any bonds, notes, or
135 other obligations must be authorized by resolution of the
136 governing body of the entity and bear the date or dates; mature
137 at the time or times, not exceeding 40 years from their
138 respective dates; bear interest at the rate or rates; be payable
139 at the time or times; be in the denomination; be in the form;

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Bill No. PCS for CS/HB 203 (2020)
Amendment No. 5

140 carry the registration privileges; be executed in the manner; be
141 payable from the sources and in the medium or payment and at the
142 place; and be subject to the terms of redemption, including
143 redemption prior to maturity, as the resolution may provide. If
144 any officer whose signature, or a facsimile of whose signature,
145 appears on any bonds, notes, or other obligations ceases to be
146 an officer before the delivery of the bonds, notes, or other
147 obligations, the signature or facsimile is valid and sufficient
148 for all purposes as if he or she had remained in office until
149 the delivery. The bonds, notes, or other obligations may be sold
150 at public or private sale for such price as the governing body
151 of the entity shall determine. Pending preparation of the
152 definitive bonds, the entity may issue interim certificates,
153 which shall be exchanged for the definitive bonds. The bonds may
154 be secured by a form of credit enhancement, if any, as the
155 entity deems appropriate. The bonds may be secured by an
156 indenture of trust or trust agreement. In addition, the
157 governing body of the legal entity may delegate, to an officer,
158 official, or agent of the legal entity as the governing body of
159 the legal entity may select, the power to determine the time;
160 manner of sale, public or private; maturities; rate of interest,
161 which may be fixed or may vary at the time and in accordance
162 with a specified formula or method of determination; and other
163 terms and conditions as may be deemed appropriate by the
164 officer, official, or agent so designated by the governing body
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Bill No. PCS for CS/HB 203 (2020)
Amendment No. 5

165 of the legal entity. However, the amount and maturity of the
166 bonds, notes, or other obligations and the interest rate of the
167 bonds, notes, or other obligations must be within the limits
168 prescribed by the governing body of the legal entity and its
169 resolution delegating to an officer, official, or agent the
170 power to authorize the issuance and sale of the bonds, notes, or
171 other obligations.
172 9. Bonds, notes, or other obligations issued under this
173 paragraph may be validated as provided in chapter 75. The
174 complaint in any action to validate the bonds, notes, or other
175 obligations must be filed only in the Circuit Court for Leon
176 County. The notice required to be published bys. 75.06 must be
177 published in Leon County and in each county that is a member of
178 the entity issuing the bonds, notes, or other obligations, or in
179 which a member of the entity is located, and the complaint and
180 order of the circuit court must be served only on the State
181 Attorney of the Second Judicial Circuit and on the state
182 attorney of each circuit in each county that is a member of the
183 entity issuing the bonds, notes, or other obligations or in
184 which a member of the entity is located. Section 75.04(2) does
185 not apply to a complaint for validation brought by the legal
186 entity.
187 10. The accomplishment of the authorized purposes of a
188 legal entity created under this paragraph is in all respects for
189 the benefit of the people of the state, for the increase of

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COMMITTEE/SUBCOMMITTEE AMENDMENT
Bill No. PCS for CS/HB 203 (2020)
Amendment No. 5

190 their commerce and prosperity, and for the improvement of their
191 health and living conditions. Since the legal entity will
192 perform essential governmental functions for the public health,
193 safety, and welfare in accomplishing its purposes, the legal
194 entity is not required to pay any taxes or assessments of any
195 kind whatsoever upon any property acquired or used by it for
196 such purposes or upon any revenues at any time received by it,
197 whether the property is within or outside the jurisdiction of
198 members of the entity. The exemption provided in this paragraph
199 applies regardless of whether the separate legal entity enters
200 into agreements with private firms or entities to manage,
201 operate, or improve the utilities owned by the separate legal
202 entity. The bonds, notes, and other obligations of an entity,
203 their transfer, and the income therefrom, including any profits
204 made on the sale thereof, are at all times free from taxation of
205 any kind by the state or by any political subdivision or other
206 agency or instrumentality thereof. The exemption granted in this
207 subparagraph is not applicable to any tax imposed by chapter 220
208 on interest, income, or profits on debt obligations owned by
209 corporations.
210
211
212
213 T I T L E A ME N D ME N T
214 Between lines 2 and 3, insert:
PCS for CSHB 203 a5
Published On: 2/12/2020 6:56:32 PM
Page 9 of 10
COMMITTEE/SUBCOMMITTEE AMENDMENT
Bill No. PCS for CS/HB 203 (2020)
Amendment No. 5

215 163.01, F.S.; providing a condition under which certain entities
216 may acquire title to any water or wastewater plant utility
217 facilities, other facilities, or property, that were previously
218 acquired by eminent domain;

PCS for CSHB 203 a5
Published On: 2/12/2020 6:56:32 PM
Page 10 of 10

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