Meeting Packet - Insurance & Banking Subcommittee, Florida House of Representatives (March 17, 2021)

Summary

Meeting packet of the Insurance & Banking Subcommittee of the Commerce Committee, The Florida House of Representatives, for Wednesday, March 17, 2021, 9:30 AM to 11:30 AM at Morris Hall. The agenda, listing Chris Sprowls as Speaker and Nick DiCeglie as Chair, takes up HB 305 Property Insurance Claims and Reimbursement, HB 415 Fire Department Communications, HB 1209 Department of Financial Services and HB 1351 Money Services Businesses. The packet includes the staff analysis of HB 305, sponsored by Rommel and others, which covers attorney fees under the lodestar approach, a roof surface reimbursement schedule in property insurance policies, and notice of property insurance claims. It closes with line-numbered text revising requirements for money transmitters and payment instrument sellers.

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Insurance & Banking Subcommittee
Wednesday, March 17, 2021
9:30 AM – 11:30 AM
Morris Hall (212 Knott)

Meeting Packet

Chris Sprowls Nick DiCeglie
Speaker Chair
The Florida House of Representatives
Commerce Committee
Insurance & Banking Subcommittee
Chris Sprowls Nick DiCeglie
Speaker Chair

Meeting Agenda

Wednesday, March 17, 2021
9:30 AM – 11:30 AM
Morris Hall (17 HOB)

I. Call to Order

II. Roll Call

III. Welcome and Opening Remarks

IV. Consideration of the following bill(s):

• HB 305 Property Insurance Claims and Reimbursement by Rommel

• HB 415 Fire Department Communications by Botana

• HB 1209 Department of Financial Services by Fetterhoff

• HB 1351 Money Services Businesses by Aloupis

I. Closing Remarks

II. Adjournment

303 House Office Building, 402 South Monroe Street, Tallahassee, FL 32399-1300
(850) 717-4870
HB 305
HOUSE OF REPRESENTATIVES STAFF ANALYSIS
BILL #: HB 305 Property Insurance Claims and Reimbursement
SPONSOR(S): Rommel and others
TIED BILLS: IDEN./SIM. BILLS:

REFERENCE ACTION ANALYST STAFF DIRECTOR or
BUDGET/POLICY CHIEF

1) Insurance & Banking Subcommittee Fortenberry Luczynski

2) Civil Justice & Property Rights Subcommittee

3) Commerce Committee

SUMMARY ANALYSIS

The bill makes several changes to statutes related to property insurance.

Attorney Fees Awarded in Litigation – 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. 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.

Property Insurance Coverage for Roof Damage – Property insurance claims are adjusted on the basis of
replacement cost or actual cash value (ACV), depending on which type of coverage a policyholder purchased.
When claims are adjusted on an ACV basis, the insurer pays the policyholder the depreciated value of the
property damage or loss that is being replaced or repaired. The bill allows insurers to provide limited roof
coverage in personal lines residential property insurance policies by including a roof surface reimbursement
schedule (schedule) that provides reimbursement for repair, replacement, and installation based on the annual
age of a roof surface type. This schedule must provide full replacement coverage for any roof surface type less
than ten years old and at least a specified percentage of coverage for roofs older than ten years based on age
and roof type. It must include a notice to policyholders regarding the limited coverage they are receiving and
must be approved by the Office of Insurance Regulation. Additionally, if there is a total loss to a primary
structure that is caused by a covered peril, cash value coverage may not apply.

Notice of Property Insurance Claims – Currently, notice of hurricane or windstorm loss must be provided to
a property insurer within three years of the date of loss. Notice for all other types of property insurance claims
must be provided within five years of the date of loss, which is the statute of limitations for bringing breach of
contract suits, because the Florida Insurance Code does not specify a time limit for these claims. The bill
changes the notice of claim deadlines in the Code so that notice of any property insurance claim must be
provided to a property insurer within two years of the date of loss.

The bill has no impact on state or local government revenues or expenditures. It may have positive and
negative direct economic impacts on the private sector.

The bill has an effective date of July 1, 2021.

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

I. SUBSTANTIVE ANALYSIS

A. EFFECT OF PROPOSED CHANGES:
Attorney Fees Awarded in Property Insurance Litigation

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.

A contingency fee is an attorney fee that is charged only if the lawsuit is successful or favorably settled
out of court.1 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;
and
 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 with 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 state and federal statutes known as “fee-shifting statutes” state that a prevailing party in court
proceedings is entitled to reasonable attorney fees as a matter of right.6 When a fee-shifting statute
applies, the court must determine and calculate what constitutes reasonable attorney fees.

Lodestar Approach

In Fla. Patient’s Comp. Fund v. Rowe, a 1985 case, the Florida Supreme Court held that courts should
calculate the amount of statutorily-authorized attorney fees using the "lodestar approach."7 Applying
this approach requires the court to determine the number of hours reasonably expended on the case
and to determine a reasonable hourly rate for the attorney to have charged. Then the number of hours
reasonably expended, multiplied by the reasonable hourly rate, produces the "lodestar amount," which
is considered an objective basis for what the attorney fee amount should be.

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., which is often referred to as the “one-way attorney fees statute” (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 Fla. Patient's Comp. Fund v. Rowe, 472 So. 2d 1145 (Fla. 1985).

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Contingency Risk Multiplier

In certain cases, the court increases the attorney fees awarded by applying a contingency risk multiplier
(CRM) to the lodestar amount.8 The concept of the CRM arose from judicial interpretations of statutory
authorization of attorney fees in particular cases,9 but the Legislature also expressly provides for the
use of a CRM in certain cases.10 In 1990, the Florida Supreme Court discussed three different types of
cases and whether a CRM 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 CRM is usually inappropriate.
 Family law, eminent domain, estate, and trust cases. In these cases, a CRM is usually
inappropriate.
 Tort and contract claims, including insurance cases. In these cases, a CRM may be applied if
the plaintiff can demonstrate the following factors show a need for the multiplier:
o Whether the relevant market requires a CRM to obtain counsel;
o Whether the attorney can mitigate the risk of nonpayment; and
o Whether any other factors established in Rowe11 support the use of the multiplier.12

Further, in the same decision, the Court noted that the size of the CRM 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.13

Therefore, under current law, an attorney is more likely to receive a higher CRM—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

Part of the Florida Supreme Court's rationale for adopting the CRM framework in 1985 was the
application of CRMs in federal courts.14 However, in Burlington v. Dague, the U.S. Supreme Court
decided and rejected the use of a CRM under certain federal risk-shifting statutes. In that case the
Supreme Court signaled that it was closing the door on the CRM's use in most, if not all, federal
cases.15

8 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). CRMs are also referred to as contingency fee multipliers.
9 The rationale for using a CRM 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.
10 See s. 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).
11The 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.
12 Quanstrom, 555 So. 2d at 833-35.
13 Id. at 834.
14 See Rowe, 472 So. 2d at 1146 ("[W]e . . . adopt the federal lodestar approach for computing reasonable attorney fees").
15 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").
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In Perdue v. Kenny A. ex. rel. Winn, a 2010 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 CRM issue.16
The plaintiffs argued in the underlying case that the foster care system in two counties was
constitutionally deficient. The case was mediated and the parties entered a consent decree resolving all
issues. Subsequently, the plaintiffs' attorneys sought attorney fees under 42 U.S.C. s. 1988.17

The federal district court calculated the fees using the lodestar approach, arriving at a $6 million figure,
and then applied a 1.75 CRM, for a total attorney fee of $10.5 million. The district court justified the
CRM 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.18

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."19 The Court also determined that a CRM may be applicable in “exceptional” circumstances.20

The Court determined that the application of CRMs may sometimes be appropriate, while also issuing
several warnings about CRMs, as follows:
 When a trial court fails to give detailed explanations for why it applies a CRM, "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."21
 "[U]njustified enhancements that serve only to enrich attorneys are not consistent" with the aims
of a statute that seek to compensate plaintiffs.22
 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.23

Recent Florida Supreme Court Treatment of the Contingency Risk Multiplier

In 2017, in the case of Joyce v. Federated Nat’l Ins. Co., the Florida Supreme Court rejected the U.S.
Supreme Court's Dague decision, instead holding that the CRM in Florida courts is not subject to the
"rare and exceptional circumstances" requirement.24 The Court acknowledged that, based upon its
decision to maintain the applicability of the CRM without the restrictions implemented by the Dague
decision, Florida "separat[ed] from federal precedent in this area."25

In Joyce, an elderly couple who sustained water damage to their home, filed a claim with their insurer,
who subsequently denied coverage on the basis of alleged material misrepresentations on the part of
the Joyces during their application for insurance.26 The Joyces hired an attorney on a contingency fee
basis and sued their insurer, but eventually settled the case.27 The parties agreed that the Joyces were
entitled to attorney fees and a fee hearing occurred in which the trial court applied a 2.0 CRM to the

16 Perdue v. Kenny A. ex rel. Winn, 130 S. Ct. 1662 (2010).
17 42 U.S.C. s. 1988(b) allows the court to award attorney fees to the prevailing party in certain civil rights actions.
18 Perdue, 130 S. Ct. at 1670.
19 Id. at 1673 (emphasis added).
20 Id.
21 See id. at 1676.
22 See id.
23 See id. at 1677.
24 See Joyce v. Federated Nat'l 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").
25Id. at 1132.
26 Id. at 1123.
27 Id.

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lodestar attorney fee amount previously calculated.28 The insurer appealed the case to the district court
of appeal, which affirmed the lodestar amount, but reversed the application of the CRM. 29 The Joyces
then appealed to the Florida Supreme Court, which accepted review and ruled in the Joyces’ favor.30 In
his dissent to the Joyce opinion, however, Justice Canady stated that the case “illustrates the arbitrary
results that can flow from application of the contingency risk multiplier….[which] have previously been
exposed.”31

Attorney Fees Applicable to Property Insurance Litigation (“One-way Attorney Fees”)

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.32 This provision regarding attorney fees is applicable
to various insurance claim disputes, including property insurance claim disputes.33

Effect of the Bill

For property insurance litigation, the bill applies a standard for awarding a CRM that is similar to the
standard applied in federal courts, in that it allows for the CRM only in "rare and exceptional"
circumstances.34 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 CRM. 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.

Property Insurance Coverage for Roof Damage

Background

Property insurance claims are adjusted on the basis of replacement cost or actual cash value (ACV),
depending on which type of coverage a policyholder purchased. When claims are adjusted on a
replacement cost basis, the insurer will pay for the entire cost of repair or replacement without a
reduction for depreciation.35 However, when claims are adjusted on an ACV basis, the insurer pays
the policyholder the depreciated value of the property damage or loss that is being replaced or
repaired.36 Property insurers must offer policyholders the option to purchase replacement cost
coverage for all portions of their property, including roofs.37

Currently, insurers may offer roof surface endorsement forms approved by the Office of Insurance
Regulation (OIR). A roof surface endorsement operates as ACV coverage for roofs by using a
depreciation schedule to determine coverage for roofs over a certain age. 38 By accepting a roof
surface endorsement, policyholders are giving up replacement cost coverage for their roofs in

28 Id.
29 Id.
30 Id.
31 Id. at 1132.
32 S. 627.428, F.S.
33 Of note, the Florida legislature has expressly prohibited the use of contingency risk multipliers for personal injury protection cases. See s.

627.736(8)(c), F.S.
34 The bill reverses the standard set in the Joyce case.
35 For example, if a roof is destroyed beyond repair, and a policyholder has replacement cost coverage, the insurer will pay to replace the entire roof,

minute the deductible, regardless of the age or condition of the roof at the time of the loss.
36 If a roof damage claim is adjusted on the basis of ACV rather than replacement cost, this would mean that the cost of replacing an entire roof when

the roof has been damaged beyond repair may not be covered. There is a concern that policies that contain ACV coverage for roofs will not comply
with the requirements of Fannie Mae and Freddie Mac, which require insurance to be placed at 100 percent replacement cost of the dwelling for
homes that are in catastrophe areas. See Multifamily Selling and Servicing Guide, (effective Feb. 4, 2019), at 272-273,
https://multifamily.fanniemae.com/sites/g/files/koqyhd161/files/migrated-files/content/guide/multifamily-selling-servicing-guide.pdf (last visited
Mar. 13, 2021).
37 S. 627.7011, F.S.
38 Florida Office of Insurance Regulation, Agency Analysis of 2021 House Bill 305, p.3 (Feb. 18, 2021).

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exchange for a discount that accounts for the increased risk that they are assuming by accepting ACV
coverage on their roofs.

Effect of the Bill

The bill clarifies that insurers are authorized to provide limited roof coverage in personal lines
residential property insurance policies by including a roof surface reimbursement schedule (schedule)
that does the following:
 Provides reimbursement for repair, replacement, and installation based on the annual age of a
roof surface type;
 Provides full replacement coverage for any roof surface type less than ten years old;
 Provides for reimbursement of at least 70 percent for a metal roof type, 40 percent for concrete
tile or clay tile roof types, 40 percent for wood shake and wood shingle roof types,39 and 25
percent for all other roof types, unless the insurer can provide actuarial justification to OIR that
that percentages should be less than these;
 Provides the following statement at the top of the schedule:
"PLEASE DISCUSS WITH YOUR INSURANCE AGENT. YOU
ARE ELECTING TO PURCHASE COVERAGE ON YOUR ROOF
ACCORDING TO A ROOF SERVICE REIMBURSEMENT
SCHEDULE. IF YOUR ROOF IS DAMAGED BY A COVERED
PERIL, YOU WILL RECEIVE A PAYMENT AMOUNT FOR YOUR
ROOF ACCORDING TO THE SCHEDULE BELOW. BE ADVISED
THIS MAY RESULT IN YOUR HAVING TO PAY SIGNIFICANT
COSTS TO REPAIR OR REPLACE YOUR ROOF. PLEASE
DISCUSS WITH YOUR INSURANCE AGENT."
 Allows for the application of actuarial rating methods pursuant to s. 627.062,
F.S.;
 Is approved by OIR; and
 Is provided to the policyholder at issuance and at renewal of a policy.

Additionally, if there is a total loss to a primary structure that is caused by a covered peril,40 cash value
coverage may not apply.

Notice of Property Insurance Claims

Background

Until 2011, the Florida Insurance Code (Code)41 did not contain a time limit for giving notice of any type
of property insurance claim. Section 95.11, F.S., requires that actions on contracts be brought within
five years. Because an insurance policy is a contract, the five year statute of limitations for contract
actions generally applied to claims under insurance policies. Since a claim must have been made
before a policyholder could sue for breach of contract, and a policyholder had five years to sue for
breach of contract, the claim must have been made within five years of the date of loss.

Section 627.70132, F.S., enacted in 2011, established that notice of any hurricane or windstorm claim,
supplemental claim, or reopened claim42 under a property insurance policy must be provided to an
insurer within three years after the hurricane made landfall or the windstorm caused the covered
damage. Any claim for which notice is not given within the three-year timeframe is barred.43 The three-
year time limit for providing notice of a hurricane or windstorm claim does not affect the five-year

39 Wood shakes and wood shingles are very similar but differ slightly in shape and thickness .
40 A peril is a cause of loss, e.g. fire, windstorm, collision. IRMI, https://www.irmi.com/term/insurance-definitions/peril (last visited Mar. 13, 2021).
41 The Florida Insurance Code is comprised of chapters 624-632, 634-636, 641, 642, 648, and 651, F.S.
42 S. 627.70132, F.S., defines both “supplemental claim” and “reopened claim” as “any additional claim for recovery from the insurer for losses from

the same hurricane or windstorm which the insurer has previously adjusted pursuant to the initial claim.” Because these terms have the same
definition, it is unclear why the statute uses both of them.
43 S. 627.70132, F.S.

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statute of limitations for bringing suit under s. 95.11.44 This means that while notice of a windstorm or
hurricane claim must be provided to an insurer within three years of the date of loss, suit may still be
brought for an additional two years past the notice deadline.45 The time limit for notice of all other
property insurance claims besides hurricane and windstorm claims has remained equal to the five-year
statute of limitations because statutes do not specify otherwise.

Effect of the Bill

The bill changes the notice of claim deadlines in the Code so that notice of any property insurance
claim must be provided to a property insurer within two years of the date of loss. It also makes technical
changes to the statute regarding alternative dispute resolution of property insurance claims so that the
changes to the notice of claim statute do not conflict with that statute.46

B. SECTION DIRECTORY:
Section 1. Amends s. 627.428, F.S., relating to attorney fees.

Section 2. Amends s. 627.7011, F.S., relating to homeowners’ policies; offer of replacement cost
coverage and law and ordinance coverage.

Section 3. Amends s. 627.70132, F.S., relating to notice of windstorm or hurricane claim.

Section 4. Amends s. 627.7015, relating to alternative procedure for resolution of disputed property
insurance claims.

Section 5. Provides an effective date of July 1, 2021.

II. FISCAL ANALYSIS & ECONOMIC IMPACT STATEMENT

A. FISCAL IMPACT ON STATE GOVERNMENT:

1. Revenues:
None.

2. Expenditures:
None.

B. FISCAL IMPACT ON LOCAL GOVERNMENTS:

1. Revenues:
None.

2. Expenditures:
None.

C. DIRECT ECONOMIC IMPACT ON PRIVATE SECTOR:
The bill may have positive and negative direct economic impacts on the 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.

44 Id.
45 Often, the type of suit that an insured brings against an insurer is a breach of contract suit based upon a denial of a claim.
46 S. 627.7015, F.S.

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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.

While purchasing a property insurance policy with ACV roof coverage rather than replacement costs
will reduce a policyholders’ insurance premiums, the limited roof coverage will likely increase out-of-
pocket expenses for policyholders who have roof damage claims because they will need to cover a
portion of the roof replacement repair cost themselves in addition to their deductible.

D. FISCAL COMMENTS:
None.

III. COMMENTS

A. CONSTITUTIONAL ISSUES:

1. Applicability of Municipality/County Mandates Provision:

Not applicable. This bill does not appear to affect county or municipal governments.

2. Other:

None.

B. RULE-MAKING AUTHORITY:

The bill neither authorizes nor requires administrative rulemaking.

C. DRAFTING ISSUES OR OTHER COMMENTS:

Lines 92-93–The removal of the language that places parameters on the date of loss for a hurricane or
windstorm claim could make it difficult to determine the exact deadline for giving notice of these type of
claims. Consideration should be given to replacing this language or including similar language so that
passage of the bill does not result in additional litigation regarding the date of loss.

IV. AMENDMENTS/ COMMITTEE SUBSTITUTE CHANGES

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

HB 305 2021

1 A bill to be entitled
2 An act relating to property insurance claims and
3 reimbursement; amending s. 627.428, F.S.; providing
4 that for certain attorney fees awarded for claims
5 arising under property insurance policies, a strong
6 presumption is created that a lodestar fee is
7 sufficient and reasonable; providing that such
8 presumption may be rebutted only under certain
9 circumstances; amending s. 627.7011, F.S.; providing
10 that certain provisions relating to homeowners'
11 policies, offers of replacement cost coverage, and
12 offers of law and ordinance coverage do not prohibit
13 insurers from providing specified property insurance
14 policies by including roof surface reimbursement
15 schedules; providing requirements for roof surface
16 reimbursement schedules; prohibiting cash value
17 coverages for roofs under certain circumstances;
18 amending s. 627.70132, F.S.; providing that claims,
19 supplemental claims, and reopened claims under certain
20 property insurance policies for loss or damage caused
21 by perils are barred unless notice is given within a
22 specified timeframe; revising the timeframe for
23 notices for loss or damage caused by windstorm or
24 hurricane; revising the definition of the term
25 "supplemental claim" or "reopened claim" to include

Page 1 of 5

CODING: Words stricken are deletions; words underlined are additions.
hb0305-00
F L O R I D A H O U S E O F R E P R E S E N T A T I V E S

HB 305 2021

26 all perils; amending s. 627.7015, F.S.; conforming a
27 provision to changes made by the act; providing an
28 effective date.
29
30 Be It Enacted by the Legislature of the State of Florida:
31
32 Section 1. Subsection (4) is added to section 627.428,
33 Florida Statutes, to read:
34 627.428 Attorney fees.—
35 (4) In an award of attorney fees under this section for a
36 claim arising under a property insurance policy, a strong
37 presumption is created that a lodestar fee is sufficient and
38 reasonable. Such presumption may be rebutted only in a rare and
39 exceptional circumstance with evidence that competent counsel
40 could not be retained in a reasonable manner.
41 Section 2. Paragraph (f) is added to subsection (5) of
42 section 627.7011, Florida Statutes, to read:
43 627.7011 Homeowners' policies; offer of replacement cost
44 coverage and law and ordinance coverage.—
45 (5) This section does not:
46 (f) Prohibit an insurer from providing limited coverage on
47 a personal lines residential property insurance policy by
48 including a roof surface reimbursement schedule. A roof surface
49 reimbursement schedule must:
50 1. Provide reimbursement for repair, replacement, and

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HB 305 2021

51 installation based on the annual age of a roof surface type.
52 2. Provide full replacement coverage for any roof surface
53 type less than 10 year old.
54 3. Unless otherwise demonstrated to the office to be
55 actuarially justified, provide for reimbursement amounts of no
56 less than:
57 a. Seventy percent for a metal roof type.
58 b. Forty percent for a concrete tile and clay tile roof
59 type.
60 c. Forty percent for a wood shake and wood shingle roof
61 type.
62 d. Twenty-five percent for all other roof types.
63 4. Include at the top of the schedule, in bold type no
64 smaller than 12 points, the following statement:
65
66 "PLEASE DISCUSS WITH YOUR INSURANCE AGENT. YOU ARE ELECTING TO
67 PURCHASE COVERAGE ON YOUR ROOF ACCORDING TO A ROOF SERVICE
68 REIMBURSEMENT SCHEDULE. IF YOUR ROOF IS DAMAGED BY A COVERED
69 PERIL, YOU WILL RECEIVE A PAYMENT AMOUNT FOR YOUR ROOF ACCORDING
70 TO THE SCHEDULE BELOW. BE ADVISED THIS MAY RESULT IN YOUR HAVING
71 TO PAY SIGNIFICANT COSTS TO REPAIR OR REPLACE YOUR ROOF. PLEASE
72 DISCUSS WITH YOUR INSURANCE AGENT."
73
74 5. Allow for all actuarially sound methods of s. 627.062
75 to apply.

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76 6. Be approved by the office.
77 7. Be provided with the policy documents at issuance and
78 renewal.
79
80 Cash value coverage may not apply to a roof if there is a total
81 loss to a primary structure in accordance with the valued policy
82 law under s. 627.702 which is caused by a covered peril.
83 Section 3. Section 627.70132, Florida Statutes, is amended
84 to read:
85 627.70132 Notice of property insurance windstorm or
86 hurricane claim.—A claim, supplemental claim, or reopened claim
87 under an insurance policy that provides property insurance, as
88 defined in s. 624.604, for loss or damage caused by any the
89 peril of windstorm or hurricane is barred unless notice of the
90 claim, supplemental claim, or reopened claim was given to the
91 insurer in accordance with the terms of the policy within 2 3
92 years after the date of loss hurricane first made landfall or
93 the windstorm caused the covered damage. For purposes of this
94 section, the term "supplemental claim" or "reopened claim" means
95 any additional claim for recovery from the insurer for losses
96 from the same peril hurricane or windstorm which the insurer has
97 previously adjusted pursuant to the initial claim. This section
98 does not affect any applicable limitation on civil actions
99 provided in s. 95.11 for claims, supplemental claims, or
100 reopened claims timely filed under this section.

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101 Section 4. Paragraph (e) of subsection (9) of section
102 627.7015, Florida Statutes, is amended to read:
103 627.7015 Alternative procedure for resolution of disputed
104 property insurance claims.—
105 (9) For purposes of this section, the term "claim" refers
106 to any dispute between an insurer and a policyholder relating to
107 a material issue of fact other than a dispute:
108 (e) With respect to a windstorm or hurricane loss that
109 does not comply with s. 627.70132.
110 Section 5. This act shall take effect July 1, 2021.

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INSURANCE & BANKING SUBCOMMITTEE

HB 305 by Rep. Rommel
Property Insurance Claims and Reimbursement

AMENDMENT SUMMARY
March 17, 2021

Amendment 1 by Rep. Rommel (strike-all): The strike-all amendment:

Makes the following modifications to the current bill:

Examination of managing general agents (MGAs) by the Office of Insurance Regulation (OIR)
• Clarifies that OIR has the same authority to examine MGAs, which are affiliates of
insurers, as it has to examine insurers. This authority applies even if the MGA solely
represents a single domestic insurer.
• Establishes that each insurer paying an affiliate shall produce information regarding that
fee to OIR upon request. OIR may determine whether the fee an insurer pays to an
affiliate is fair and reasonable and, in doing so, may consider the actual cost of the
service being provided in exchange for the fee.
• Establishes that all MGAs must execute contracts with the insurers that they do business
with even if they are MGAs that control or are controlled by an insurer.

Insurer reporting of property insurance claims litigation data to OIR
• Establishes that each insurer or insurer group doing business in Florida shall file specific
pieces of data regarding litigation of personal and residential property insurance claims
on a quarterly basis.

Citizens Property Insurance Corporation (Citizens)
Establishes the following:
• Residential property owners are not eligible for coverage from Citizens if they can obtain
coverage from private insurers that is less than 20 percent greater than the premium for
comparable coverage from Citizens.
• If catastrophe reinsurance to cover Citizens projected 100-year probable maximum loss
is not available at reasonable rates, Citizens need not purchase it, but must include the
cost of such reinsurance in its rate calculations even if it does not purchase it.
• No employees of Citizens may receive salaries in excess of 150 percent of the salary
received by the head of OIR with certain exceptions.
• On or after January 1, 2022, Citizens shall implement a rate increase of no more than 11
percent for any single policy. Each year thereafter, Citizen shall add an additional 1
percent to its rate increase each year until it reaches a rate increase of 15 percent in
2026.
• Citizens may not request approval from OIR for a rate reduction.

Suits arising under a property insurance policy
Creates a new statutory section which applies to all residential or commercial property suits not
brought by an assignee and requires the following:
• A claimant or claimant’s attorney must give presuit notice at least 10 business days
before a claimant or claimant’s attorney brings a suit against an insurer, but may not be
served before the insurer has made a determination of coverage.
• An insurer served with a presuit notice to respond in writing within 10 days by making a
settlement offer or requiring the claimant to participate in alternative dispute resolution.
• A court must dismiss without prejudice any suit filed in violation of the presuit notice
requirements. If such suit is dismissed, the court shall not award any attorney fees to a
claimant’s attorney incurred prior to the dismissal of the suit.
COMMITTEE/SUBCOMMITTEE AMENDMENT
Bill No. HB 305 (2021)
Amendment No. 1

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

1 Committee/Subcommittee hearing bill: Insurance & Banking
2 Subcommittee
3 Representative Rommel offered the following:
4
5 Amendment (with title amendment)
6 Remove everything after the enacting clause and insert:
7 Section 1. Paragraph (a) of subsection (2)of section
8 624.316, Florida Statutes, is amended to read:
9 Section 624.316 Examination of insurers.—
10 (2)(a) Except as provided in paragraph (f), the office
11 may
12 examine each insurer, including affiliates, as often as may be
13 warranted for the protection of the policyholders and in the
14 public interest, and shall examine each domestic insurer not
15 less frequently than once every 5 years. The examination shall
16 cover the preceding 5 fiscal years of the insurer and shall be
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17 commenced within 12 months after the end of the most recent
18 fiscal year being covered by the examination. The examination
19 may cover any period of the insurer's operations since the last
20 previous examination. The examination may include examination of
21 events subsequent to the end of the most recent fiscal year and
22 the events of any prior period that affect the present financial
23 condition of the insurer.
24 Section 2. Subsection (2) section 624.318, Florida
25 Statutes, is amended to read:
26 624.318 Conduct of examination or investigation; access to
27 records; correction of accounts; appraisals.—
28 (2) Every person being examined or investigated, including
29 affiliates, and its officers, attorneys, employees, agents, and
30 representatives, shall make freely available to the department
31 or office or its examiners or investigators the accounts,
32 records, documents, files, information, assets, and matters in
33 their possession or control relating to the subject of the
34 examination or investigation. An agent who provides other
35 products or services or maintains customer information not
36 related to insurance must maintain records relating to insurance
37 products and transactions separately if necessary to give the
38 department or office access to such records. If records relating
39 to the insurance transactions are maintained by an agent on
40 premises owned or operated by a third party, the agent and the

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Amendment No. 1

41 third party must provide access to the records by the department
42 or office.
43 Section 3. Subsection (11) of section 624.424, Florida
44 Statutes, is renumbered as subsection (12), and new subsections
45 (11) and (13) are added to that section, to read:
46 624.424 Annual statement and other information.—
47 (11) Each insurer or insurer group doing business in this
48 state shall file on a quarterly basis in conjunction with
49 financial reports required by paragraph (1)(a) a supplemental
50 report on an individual and group basis on a form prescribed by
51 the commission with the following information for each claim
52 closed, excluding liability only claims, within the reporting
53 period on personal lines and commercial lines residential
54 property insurance policies in this state:
55 (a) Unique claim identification number;
56 (b) Type of policy;
57 (c) Zip code of the property where the claim occurred;
58 (d) County where the claim occurred;
59 (e) Date of loss;
60 (f) Peril or type of loss;
61 (g) Date reported to insurer;
62 (h) Initial date closed;
63 (i) Date claim most recently re-opened (if applicable);
64 (j) Most recent date closed;
65 (k) Public adjuster on the claim;
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66 (l) Attorney for the claimant;
67 (m) Water mitigation firm utilized;
68 (n) Total indemnity paid by the insurer;
69 (o) Total loss adjustment expenses paid by the insurer;
70 (p) Amount paid for insured's attorney fees;
71 (q) Contingency fee multiplier requested to be applied to
72 the calculation of the insured's attorney fees payment; if so,
73 what contingency risk multiplier was requested;
74 (r) Contingency risk multiplier applied to
75 calculation of the insured's attorney fees payment; if so, what
76 contingency fee multiplier was applied; and
77 (s) Other information deemed necessary by the Commission to
78 provide the Office with the ability to track litigation and
79 claims trends occurring in the property market.
80 (11)(12) Each insurer doing business in this state which
81 reinsures through a captive insurance company as defined in s.
82 628.901, but without regard to domiciliary status, shall, in
83 conjunction with the annual financial statement required under
84 paragraph (1)(a), file a report with the office containing
85 financial information specific to reinsurance assumed by each
86 captive.
87 (a) The report shall be filed as a separate schedule
88 designed to avoid duplication of disclosures required by the
89 NAIC's annual statement and instructions.
90 (b) Insurers must:
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91 1. Identify the products ceded to the captive and whether
92 the products are subject to rule 69O-164.020, Florida
93 Administrative Code, the NAIC Valuation of Life Insurance
94 Policies Regulation (Model #830), or the NAIC Actuarial
95 Guideline XXXVIII (AG 38).
96 2. Disclose the assets of the captive in the format
97 prescribed in the NAIC annual statement schedules.
98 3. Include a stand-alone actuarial opinion or
99 certification identifying the differences between the assets the
100 ceding company would be required to hold and the assets held by
101 the captive.
102 (13) Each insurer doing business in this state which pays
103 a fee, commission, or other financial consideration or payment
104 to any affiliate directly or indirectly is required upon request
105 to provide to the office any information the office deems
106 necessary. The fee, commission or other financial consideration
107 or payment to any affiliate must be fair and reasonable. In
108 determining whether the fee, commission or other financial
109 consideration or payment is fair and reasonable, the office
110 shall consider, among other things, the actual cost of the
111 service being provided.
112 Section 4. Subsection (6) of section 626.7451, Florida
113 Statutes, is amended to read:
114 626.7451 Managing general agents; required contract
115 provisions.—No person acting in the capacity of a managing
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Amendment No. 1

116 general agent shall place business with an insurer unless there
117 is in force a written contract between the parties which sets
118 forth the responsibility for a particular function, specifies
119 the division of responsibilities, and contains the following
120 minimum provisions:
121 (6) The contract shall specify appropriate underwriting
122 guidelines, including:
123 (a) The maximum annual premium volume.
124 (b) The basis of the rates to be charged.
125 (c) The types of risks which may be written.
126 (d) Maximum limits of liability.
127 (e) Applicable exclusions.
128 (f) Territorial limitations.
129 (g) Policy cancellation provisions.
130 (h) The maximum policy period.
131 This subsection shall not apply when the managing general
132 agent is a controlled or controlling person.
133 Section 5. Section 626.7452 is amended to read:
134 Section 626.7452 Managing general agents; examination
135 authority.—The acts of the managing general agent are considered
136 to be the acts of the insurer on whose behalf it is acting. A
137 managing general agent may be examined as if it were the
138 insurer. except in the case where the managing general agent
139 solely represents a single domestic insurer.

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Amendment No. 1

140 Section 6. Paragraphs (e) through (ii) of subsection (6)
141 of section 627.351, Florida Statutes, are redesignated as
142 paragraphs (f) through (jj), respectively, paragraph (c) and
143 present paragraph (n) of that subsection are amended, and a new
144 paragraph (e) is added to that subsection, to read:
145 627.351 Insurance risk apportionment plans.—
146 (6) CITIZENS PROPERTY INSURANCE CORPORATION.—
147 (c) The corporation's plan of operation:
148 5. Must provide a procedure for determining the eligibility
149 of a risk for coverage, as follows:
150 a. Subject to s. 627.3517, with respect to personal
151 lines residential risks, if the risk is offered coverage from an
152 authorized insurer at the insurer's approved rate under a
153 standard policy including wind coverage or, if consistent with
154 the insurer's underwriting rules as filed with the office, a
155 basic policy including wind coverage, for a new application to
156 the corporation for coverage, the risk is not eligible for any
157 policy issued by the corporation unless the premium for coverage
158 from the authorized insurer is more than 15 20 percent greater
159 than the premium for comparable coverage from the corporation.
160 Whenever an offer of coverage for a personal lines residential
161 risk is received for a policyholder of the corporation at
162 renewal from an authorized insurer, if the offer is equal to or
163 less than the corporation's renewal premium for comparable
164 coverage, the risk is not eligible for coverage with the
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Amendment No. 1

165 corporation. If the risk is not able to obtain such offer, the
166 risk is eligible for a standard policy including wind coverage
167 or a basic policy including wind coverage issued by the
168 corporation; however, if the risk could not be insured under a
169 standard policy including wind coverage regardless of market
170 conditions, the risk is eligible for a basic policy including
171 wind coverage unless rejected under subparagraph 8. However, a
172 policyholder removed from the corporation through an assumption
173 agreement remains eligible for coverage from the corporation
174 until the end of the assumption period. The corporation shall
175 determine the type of policy to be provided on the basis of
176 objective standards specified in the underwriting manual and
177 based on generally accepted underwriting practices.
178 9. Must provide that the corporation make its best efforts
179 to procure catastrophe reinsurance at reasonable rates, to cover
180 its projected 100-year probable maximum loss as determined by
181 the board of governors. If catastrophe reinsurance is not
182 available at reasonable rates, the corporation need not purchase
183 it, but the corporation shall include the costs of reinsurance
184 to cover its projected 100-year probable maximum loss in its
185 rate calculations even if it does not purchase it.
186 (e) An employee of the corporation may not receive an
187 annual salary, whether base pay or base pay combined with any
188 bonus or incentive payments, in excess of 150 percent of the

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189 annual salary paid to the head of the office, subject to the
190 following:
191 1. Anyone employed by the corporation as July 1, 2021,
192 shall be permitted to retain his or her current salary, but
193 shall not be entitled to receive a raise if his or her salary
194 exceeds the salary limits in this paragraph.
195 2. Anyone employed by the corporation as July 1, 2021,
196 whose salary does not exceed the salary limits of this paragraph
197 shall not receive a raise such that his or her salary exceeds
198 the salary limits.
199 3. Anyone hired, with a start date, by the corporation on
200 or after July 1, 2021, shall be subject to the salary limits in
201 this paragraph.
202 (o)1. Rates for coverage provided by the corporation must
203 be actuarially sound and subject to s. 627.062, except as
204 otherwise provided in this paragraph. The corporation shall file
205 its recommended rates with the office at least annually. The
206 corporation shall provide any additional information regarding
207 the rates which the office requires. The office shall consider
208 the recommendations of the board and issue a final order
209 establishing the rates for the corporation within 45 days after
210 the recommended rates are filed. The corporation may not pursue
211 an administrative challenge or judicial review of the final
212 order of the office.
213 2. In addition to the rates otherwise determined pursuant
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Amendment No. 1

214 to this paragraph, the corporation shall impose and collect an
215 amount equal to the premium tax provided in s. 624.509 to
216 augment the financial resources of the corporation.
217 3. After the public hurricane loss-projection model under
218 s. 627.06281 has been found to be accurate and reliable by the
219 Florida Commission on Hurricane Loss Projection Methodology, the
220 model shall be considered when establishing the windstorm
221 portion of the corporation's rates. The corporation may use the
222 public model results in combination with the results of private
223 models to calculate rates for the windstorm portion of the
224 corporation's rates. This subparagraph does not require or allow
225 the corporation to adopt rates lower than the rates otherwise
226 required or allowed by this paragraph.
227 4. The rate filings for the corporation which were
228 approved
229 by the office and took effect January 1, 2007, are rescinded,
230 except for those rates that were lowered. As soon as possible,
231 the corporation shall begin using the lower rates that were in
232 effect on December 31, 2006, and provide refunds to
233 policyholders who paid higher rates as a result of that rate
234 filing. The rates in effect on December 31, 2006, remain in
235 effect for the 2007 and 2008 calendar years except for any rate
236 change that results in a lower rate. The next rate change that
237 may increase rates shall take effect pursuant to a new rate

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238 filing recommended by the corporation and established by the
239 office, subject to this paragraph.
240 4. Beginning on July 15, 2009, and annually thereafter, t
241 The corporation must make a recommended actuarially sound rate
242 filing for each personal and commercial line of business it
243 writes., to be effective no earlier than January 1, 2010.
244 5. Beginning on or after January 1, 2010, and
245 Notwithstanding the board's recommended rates and the
246 office's final order regarding the corporation's filed rates
247 under subparagraph 1., the corporation shall annually implement
248 a rate increase which, except for sinkhole coverage, does not
249 exceed the following 10 percent for any single policy issued by
250 the corporation, excluding coverage changes and surcharges:
251 a. Eleven percent for 2022.
252 b. Twelve percent for 2023.
253 c. Thirteen percent for 2024.
254 d. Fourteen percent for 2025.
255 e. Fifteen percent for 2026 and all subsequent years.
256 6. At no time may the corporation file for approval of a
257 rate reduction by the office.
258 Section 7. Section 627.70132, Florida Statutes, is amended
259 to read:
260 627.70132 Notice of property insurance windstorm or
261 hurricane claim.— A claim, supplemental claim, or reopened claim
262 under an insurance policy that provides property insurance, as
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Amendment No. 1

263 defined in s. 624.604, including property insurance policy
264 issued by an eligible surplus lines insurer, for loss or damage
265 caused by any the peril of windstorm or hurricane is barred
266 unless notice of the claim, supplemental claim, or reopened
267 claim was given to the insurer in accordance with the terms of
268 the policy within 2 3 years after the date of loss hurricane
269 first made landfall or the windstorm caused the covered damage.
270 For claims resulting from hurricanes, tornadoes, windstorms,
271 severe rain or other weather-related events that are tracked by
272 weather services and media, the date of loss is the date that
273 the hurricane made landfall, or the windstorm, tornado, or
274 severe rain event is verified by NOAA or another disinterested
275 verifiable third party to have occurred, in the location of the
276 property which is the subject of the claim. For purposes of this
277 section, the term "supplemental claim" or "reopened claim" means
278 any additional claim for recovery from the insurer for losses
279 from the same peril hurricane or windstorm which the insurer has
280 previously adjusted pursuant to the initial claim. This section
281 does not affect any applicable limitation on civil actions
282 provided in s. 95.11 for claims, supplemental claims, or
283 reopened claims timely filed under this section.
284 Section 8. Paragraph (e) of subsection (9) of section
285 627.7015, Florida Statutes, is amended to read:
286 627.7015 Alternative procedure for resolution of disputed
287 property insurance claims.—
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288 (9) For purposes of this section, the term "claim" refers
289 to any dispute between an insurer and a policyholder relating to
290 a material issue of fact other than a dispute:
291 (e) With respect to a windstorm or hurricane loss that
292 does not comply with s. 627.70132.
293 Section 9. Section 627.70152, Florida Statutes, is created
294 to read:
295 627.70152 Suits arising under a property insurance
296 policy.—
297 (1) APPLICATION.—This section applies to all residential
298 or commercial property suits not brought by an assignee.
299 (2) DEFINITIONS.—As used in this section, the term:
300 (a) "Claimant" means an insured who is filing suit under a
301 residential or commercial property insurance policy.
302 (b) "Demand" means the specific amount alleged to be owed
303 by the insurer to the claimant under the residential or
304 commercial property insurance policy.
305 (c) "Notice" means claimant presuit notice.
306 (3) NOTICE.—
307 (a) As a condition precedent to filing a suit under a
308 property insurance policy, a claimant or the claimant's attorney
309 must provide the insurer with a written notice of intent to
310 initiate litigation before filing suit under the policy. Such
311 notice must be served by certified mail, return receipt
312 requests, or electronic delivery at least 10 business days
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Amendment No. 1

313 before filing suit, but may not be served before the insurer has
314 made a determination of coverage under s. 627.70131. The notice
315 must specify:
316 1. That the notice is being provided pursuant to this
317 section;
318 2. The alleged acts or omissions of the insurer giving
319 rise to the action;
320 3. The damages in dispute;
321 4. The demand;
322 5. The amount of reasonable and necessary attorney fees
323 and costs incurred by the claimant, to be calculated by
324 multiplying the number of hours actually worked on the claim as
325 of the date of the notice by the claimant's attorney by a
326 reasonable hourly rate; and
327 6. If provided by an attorney or other representative,
328 that a copy of the notice was provided to the claimant.
329 (b) A notice of intent to initiate litigation must be
330 served within the time limits provided in s. 95.11 and is not
331 required if the action is a counterclaim. Service of a notice
332 tolls the time limits provided in s. 95.11 for 10 days if such
333 time limits will expire before the end of the 10-day notice
334 period.
335 (c) An insurer must respond in writing to the notice
336 within 10 business days after receiving the notice specified in
337 paragraph (a) by making a settlement offer or requiring the
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338 claimant to participate in appraisal or another method of
339 alternative dispute resolution under the policy. The time limits
340 provided in s. 95.11 are tolled as long as appraisal or other
341 alternative dispute resolution are ongoing. An insurer must have
342 a procedure for the prompt investigation, review, and evaluation
343 of the dispute stated in the notice and must investigate each
344 claim contained in the notice in accordance with the Florida
345 Insurance Code.
346 (d) A court must dismiss without prejudice any action
347 relating to a claim for which a notice of intent to initiate
348 litigation is given as required by this subsection if such
349 action is commenced before the expiration of the 10-day notice
350 period, is brought by an insurer to whom notice was given, and
351 is against the claimant giving notice.
352 (4) ADMISSIBILITY OF NOTICE AND RESPONSE.—The notice
353 provided pursuant to subsection (3) and the submissions provided
354 pursuant to subparagraph (3)(a):
355 (a) is admissible as evidence in a civil action or an
356 alternative dispute resolution proceeding relating to the claim
357 for which the notice is given;
358 (b) Does not limit the evidence of attorney fees or costs,
359 damages, or loss which may be offered at trial; and
360 (c) Does not relieve any obligation that an insured or
361 assignee has to give notice under any other provision of law.

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362 (5) ATTORNEY FEES.—If a court dismisses a claimant's suit
363 pursuant to paragraph (3)(d) of this section, the court shall
364 not award to the claimant any incurred attorney fees for
365 services rendered prior to the dismissal of the suit.
366 Section 10. This act shall take effect July 1, 2021.
367
368 -----------------------------------------------------
369 T I T L E A M E N D M E N T
370 Remove everything before the enacting clause and insert:
371 A bill to be entitled
372 An act relating to property insurance; amending s. 624.316,
373 F.S.; authorizing the Office of Insurance regulation to examine
374 insurer affiliates; amending s. 624.318, F.S.; requiring insurer
375 affiliates to provide certain items and information to the
376 Office of Insurance Regulation upon request during examination;
377 amending s. 624.424, F.S.; requiring insurers to include certain
378 data regarding litigated property insurance claims in their
379 quarterly reports to the Office of Insurance Regulation;
380 requiring insurers to provide information regarding payments to
381 affiliates upon request by the Office of Insurance regulation;
382 allow the Office of Insurance regulation to determine whether
383 payments made by an insurer to an affiliate are fair and
384 reasonable; amending s. 626.7451, F.S; requiring that managing
385 general agents enter into specified contracts with insurers even
386 when the managing general agent controls, or is controlled by,
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COMMITTEE/SUBCOMMITTEE AMENDMENT
Bill No. HB 305 (2021)
Amendment No. 1

387 an insurer; amending s. 626.7452, F.S.; establishing that a
388 managing general agent may be examined by the Office of
389 Insurance regulation as if it were the insurer even if the
390 managing general agent solely represents a single domestic
391 insurer; amending s. 627.351, F.S.; requires Citizens Property
392 Insurance Corporation to include the costs of reinsurance to its
393 projected 100-year probable maximum loss in its rate
394 calculations even if the corporation does not purchase such
395 reinsurance; placing salary caps on new employees of the
396 corporation; allowing current employees of the corporation to
397 keep their salaries until they vacate their current positions
398 even if the salaries exceed the caps; removing obsolete language
399 regarding the corporation's rate filings with Office of
400 Insurance Regulation; requiring the corporation to implement
401 increase that does not exceed a certain percent beginning on a
402 certain date; allowing the corporation to add an additional
403 percent to its rate increase each year until it reaches a
404 certain percent; prohibiting the corporation from seeking
405 approval by the Office of Insurance regulation of a rate
406 reduction; amending s. 627.70132, F.S.; providing that claims,
407 supplemental claims, and reopened claims under certain property
408 insurance policies for loss or damage caused by perils are
409 barred unless notice is given within a specified timeframe;
410 revising the timeframe for notice for loss or damage caused by
411 windstorm or hurricane; revising the definition of the term
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COMMITTEE/SUBCOMMITTEE AMENDMENT
Bill No. HB 305 (2021)
Amendment No. 1

412 "supplemental claim" or "reopened claim" to include all perils;
413 amending s. 627.7015, F.S.; conforming a provision to changes
414 made by the act; creating s. 627.70152, F.S.; defining certain
415 terms; requiring that written notice be provided to an insurer
416 before suit is filed under an insurance policy; specifying
417 certain information be included in that notice; requiring that
418 notice be served within a specified timeframe; requiring that an
419 insurer provide a response to that notice within a specified
420 timeframe; providing for tolling of time where appropriate;
421 requiring an insurer to investigate, review, and evaluate a
422 dispute stated in that notice; requiring an insurer to
423 investigation each claim in that notice in accordance with the
424 Florida Insurance Code; requiring a court to dismiss, with
425 prejudice, any action that fails to comply with the requirements
426 for that notice; providing for evidentiary requirements
427 regarding that notice; prohibiting a court from awarding
428 attorney fees to a claimant under certain circumstances;
429 providing an effective date.

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HB 415
HOUSE OF REPRESENTATIVES STAFF ANALYSIS
BILL #: HB 415 Fire Department Communications
SPONSOR(S): Botana
TIED BILLS: IDEN./SIM. BILLS: CS/SB 360

REFERENCE ACTION ANALYST STAFF DIRECTOR or
BUDGET/POLICY CHIEF

1) Insurance & Banking Subcommittee Rowley Luczynski

2) State Administration & Technology
Appropriations Subcommittee

3) Commerce Committee

SUMMARY ANALYSIS
Chapter 633, F.S., Fire Prevention and Control, designates the Chief Financial Officer (CFO) as the State Fire
Marshal. The State Fire Marshal, through the Department of Financial Service’s Division of State Fire Marshal,
is charged with enforcing the provisions of ch. 633, F.S., and all other applicable laws relating to fire safety.

The Florida Fire Prevention Code (FFPC) is the minimum fire prevention code, and is adopted by the State
Fire Marshal and enforced by the local fire official within each county, municipality, and special fire district. The
State Fire Marshal adopts a new edition of the FFPC every three years. The FFPC requires that all new and
existing buildings maintain minimum radio signal strength at a level determined by the authority having
jurisdiction (local fire authorities). In addition, s. 633.202(18), F.S., provides that local fire authorities shall
determine minimum radio signal strength for fire department communications in all new and existing high-rise
buildings.

The bill removes the words “high-rise” from s. 633.202(18), F.S., expanding the scope of the statute to require
that local fire authorities determine minimum radio signal strength for all buildings, regardless of height. The bill
also extends the deadline for existing buildings’ compliance with a local authority’s minimum radio signal
strength requirements by five years to January 1, 2027. The deadline for existing, non-compliant buildings to
apply for permits to install required devices to meet the standards is extended by five years to December 31,
2024. For apartment buildings, the deadline for compliance with a local authority’s minimum radio signal
strength requirements is extended by five years to January 1, 2030. The deadline for existing, non-compliant
apartment buildings to apply for permits to install required devices to meet the standards is extended by five
years to December 31, 2027.

By removing the references to “high-rise” buildings, the bill extends the scope of the statute to all buildings
regardless of height. Thus, non-high-rise buildings, not in compliance with existing law, are also given a grace
period to comply.

The bill also provides that two-way radio communication enhancement systems may be used to comply with a
local authority’s minimum radio signal strength requirements. The bill specifies that installation of a two-way
radio communication enhancement system to comply with s. 633.202(18), F.S., is not an unlawful act under s.
843.16, F.S.

The bill does not appear to have a fiscal impact on state or local government. It may have positive fiscal
impacts on the private sector.

The bill has an effective date of July 1, 2021.

This document does not reflect the intent or official position of the bill sponsor or House of Representatives .
STORAGE NAME: h0415.IBS
DATE: 3/15/2021
FULL ANALYSIS

I. SUBSTANTIVE ANALYSIS

A. EFFECT OF PROPOSED CHANGES:
State Fire Prevention – State Fire Marshal

Chapter 633, F.S., Fire Prevention and Control, designates the Chief Financial Officer (CFO) as the
State Fire Marshal. The State Fire Marshal, through the Division of State Fire Marshal within the
Department of Financial Services (DFS), is charged with enforcing the provisions of ch. 633, F.S., and
all other applicable laws relating to fire safety and has the responsibility to minimize the loss of life and
property in this state due to fire.1 Pursuant to this authority, the State Fire Marshal regulates, trains, and
certifies fire service personnel and firesafety inspectors; investigates the causes of fires; enforces arson
laws; regulates the installation of fire equipment; conducts firesafety inspections of state property; and
operates the Florida State Fire College.

In addition to these duties, the State Fire Marshal adopts by rule the Florida Fire Prevention Code
(FFPC), which contains all fire safety laws and rules that pertain to the design, construction, erection,
alteration, modification, repair, and demolition of public and private buildings, structures, and facilities
and the enforcement of such fire safety laws and rules, at ch. 69A-60, F.A.C. The State Fire Marshal
adopts a new edition of the FFPC every three years.2 The 7th edition of the FFPC took effect on
December 31, 2020.3 The FFPC is largely based on the National Fire Protection Association’s (NFPA)
Standard 1, Fire Prevention Code, along with the current edition of the NFPA’s Life Safety Code, NFPA
101.4

The FFPC is the minimum fire prevention code deemed adopted by each municipality, county, and
special district with firesafety responsibilities, and applies to every building and structure throughout the
state with few exceptions.5 Municipalities, counties, and special districts with firesafety responsibilities
may supplement the FFPC with more stringent standards adopted in accordance with s. 633.208, F.S.6
Local fire authorities set standards for radio signal strength throughout buildings within their jurisdiction
in order to ensure consistent fire and rescue communication capabilities.

Radio Signal Strength for Fire Department Communications

The life safety of firefighters and citizens depends on reliable, functional communication tools that work
in the harshest and most hostile of environments.7 All firefighters, professional and volunteer, operate in
extreme environments that are markedly different from those of any other radio users.8 The radio is the
lifeline that connects the firefighters to command and outside assistance when in the most desperate of
situations.9

Modern focus on radio signal strength stems from difficulties experienced by firefighters attempting
rescue operations on September 11, 2001, in the World Trade Towers, who found that in certain areas
of the building their radio signal degraded, making live communication difficult or impossible.10

1 S. 633.104, F.S.
2 S. 633.202, F.S.
3 Florida Fire Prevention Code (7th ed. 2020), https://www.nfpa.org/codes-and-standards/all-codes-and-standards/codes-

and-standards/free-access?mode=view (last visited Mar. 11, 2021).
4 S. 633.202(2), F.S.
5 S. 633.208, F.S., and 69A-60.002(1), F.A.C.
6 S. 633.208(3), F.S., and 69A-60.002(2), F.A.C.
7 U.S. Fire Administration, Voice Radio Communications Guide for the Fire Service (June 2016),

https://www.usfa.fema.gov/downloads/pdf/publications/Voice_Radio_Communications_Guide_for_the_Fire_Service.pdf
(last visited Mar. 11, 2021).
8 Id.
9 Id.
10 See National Fire Protection Association, Assessment of Total Evacuation Systems for Tall Buildings: Literature

Review, https://www.nfpa.org/-/media/Files/News-and-Research/Fire-statistics-and-reports/Executive-
STORAGE NAME: h0415.IBS PAGE: 2
DATE: 3/15/2021
Two-way radio communication enhancement systems are devices installed after a building is
constructed that accept and then amplify radio signals used by first responders. A radio frequency site
survey may be conducted in a building to determine areas where radio signal strength drops due to
materials used in construction, such as thick walls, metal construction, underground structures, and
low-emissivity glass windows. The generally desired effect is that radio signal strength at ground level,
where a fire rescue operation might be based, is equal to the radio signal strength in all locations
throughout the building, to ensure consistent communication. Several devices are available to boost
signal strength to meet required radio signal strength. These include bi-directional amplifiers and
networks of indoor antennae, referred to collectively as a distributed antenna system.11

Florida Fire Code Minimum Radio Signal Strength

Amendments to the FFPC, effective January 1, 2018, provided that all new and existing buildings must
maintain minimum radio signal strength at a level determined by the authority having jurisdiction (local
fire authorities).12 Where required by a local fire authority, two-way radio communication enhancement
systems must comply with federal standards for installation and upkeep.13 Additionally, if a two-way
radio communication enhancement system would have a negative impact on the operations of a facility,
the local fire authority may accept an automatically activated emergency responder radio coverage
system in the alternative.14

Minimum Radio Signal Strength for High-rise Buildings

Section 633.202(18), F.S., enacted in 2016,15 provides that local fire authorities shall determine
minimum radio signal strength for fire department communications in all new and existing high-rise
buildings. A high-rise building is defined in the FFPC as a building where the floor of an occupiable
story is greater than 75 feet above the lowest level of fire department vehicle access.16 Existing high-
rise buildings are not required to comply with a local authority’s minimum radio strength requirements
until January 1, 2022. However, an existing high-rise building must have applied for the appropriate
permit for installation of equipment meeting the local authority’s standards by December 31, 2019.
Existing high-rise apartment buildings are not required to comply until January 1, 2025, and must apply
for permits to reach compliance by December 31, 2022.

A 2018 declaratory statement from the Department of Financial Services clarified that the compliance
timeframes provided in s. 633.202(18), F.S., apply only to high-rise buildings and do not apply to
buildings less than 75 feet in height.17 Thus, compliance with minimum radio signal strength
requirements for non-high-rise buildings is controlled by s. 11.10 of the FFPC, which provides no grace
periods or acceptable timeframes for compliance.

summaries/evacsystemstallbuildingsliteraturereviewexecsum.ashx#:~:text=According%20to%20the%20definition%20of,fl
oor%20of%20the%20highest%20occupiable (last visited Mar. 12, 2021).
11 See City of Treasure Island, Florida, Two-Way Radio Communication Enhancement System Requirements (Apr. 20,

2019), https://www.mytreasureisland.org/residents/departments/fire_dept/local_high-
rise_public_safety_system_integrators.php, (last visited Mar. 12, 2021); see also East Lake Tarpon Special Fire Control
District, Information Bulletin: Two-Way Radio Communication Enhancement System Requirements,
https://www.elfr.org/files/e2eae3cb2/Bulletin+East+Lake+Two+Way+Communications.pdf (last visited Mar. 12, 2021).
12 Florida Fire Prevention Code (7th ed. 2020) s. 11.10.1, https://www.nfpa.org/codes-and-standards/all-codes-and-

standards/codes-and-standards/free-access?mode=view (last visited Mar. 11, 2021).
13 Florida Fire Prevention Code (7th ed. 2020) s. 11.10.2, https://www.nfpa.org/codes-and-standards/all-codes-and-

standards/codes-and-standards/free-access?mode=view (last visited Mar. 11, 2021).
14 Florida Fire Prevention Code (7th ed. 2020) s. 11.10.3, https://www.nfpa.org/codes-and-standards/all-codes-and-

standards/codes-and-standards/free-access?mode=view (last visited Mar. 11, 2021).
15 Ch. 2016-129, s. 27, Laws of Fla.
16 Florida Fire Prevention Code (7th ed. 2020) s. 3.3.29.6, https://www.nfpa.org/codes-and-standards/all-codes-and-

standards/codes-and-standards/free-access?mode=view (last visited Mar. 11, 2021).
17 Department of Financial Services Declaratory Statement, In the Matter of Charles B. Parks, Chief Florida Fire Code

Official of Broward County (Apr. 18, 2018), https://www.doah.state.fl.us/FLAID/DFS/2018/DFS_217787-17-
DS_12042019_013047.pdf (last visited Mar. 12, 2021).
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Radio Equipment Receiving Law Enforcement Frequencies

Section 843.16, F.S. makes it unlawful to install or transport any frequency modulation radio receiving
equipment so adjusted or tuned as to receive messages or signals on frequencies assigned by the
Federal Communications Commission to law enforcement or fire rescue personnel.

Effect of the Bill

The bill removes the words “high-rise” from s. 633.202(18), F.S., which expands the scope of the
statute to require that local fire authorities determine minimum radio signal strength for all buildings,
regardless of height. The bill also extends the deadline for existing buildings’ compliance with a local
authority’s minimum radio signal strength requirements by five years to January 1, 2027. The deadline
for existing, non-compliant buildings to apply for permits to install required devices to meet the
standards is extended by five years to December 31, 2024. For apartment buildings, the deadline for
compliance with a local authority’s minimum radio signal strength requirements is extended by five
years to January 1, 2030. The deadline for existing, non-compliant apartment buildings to apply for
permits to install required devices to meet the standards is extended by five years to December 31,
2027.

By removing the references to “high-rise” buildings, the bill extends the scope of the statute to all
buildings regardless of height. Thus, non-high-rise buildings, not in compliance with existing law, are
also given a grace period to comply.

The bill also provides that two-way radio communication enhancement systems may be used to comply
with a local authority’s minimum radio signal strength requirements. The bill specifies that installation of
a two-way radio communication enhancement system to comply with s. 633.202(18), F.S., is not an
unlawful act under s. 843.16, F.S.

B. SECTION DIRECTORY:
Section 1. Amends s. 633.202, F.S., relating to Florida Fire Prevention Code.

Section 2. Amends s. 843.16, F.S., relating to unlawful to install or transport radio equipment using
assigned frequency of state or law enforcement officers; definitions; exceptions; penalties.

Section 3. Provides an effective date of July 1, 2021.

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:

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DATE: 3/15/2021
None.

C. DIRECT ECONOMIC IMPACT ON PRIVATE SECTOR:
The bill may positively impact building owners by extending the deadlines for compliance.

D. FISCAL COMMENTS:
None.

III. 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 expenditures of funds; reduce the authority that counties or municipalities have
to raise revenues in the aggregate; or reduce the percentage of state tax shared with counties or
municipalities.

2. Other:
None.

B. RULE-MAKING AUTHORITY:
The bill does not provide a grant of rulemaking authority, nor does it require rulemaking.

C. DRAFTING ISSUES OR OTHER COMMENTS:
None.

IV. AMENDMENTS/ COMMITTEE SUBSTITUTE CHANGES

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DATE: 3/15/2021
F L O R I D A H O U S E O F R E P R E S E N T A T I V E S

HB 415 2021

1 A bill to be entitled
2 An act relating fire department communications;
3 amending s. 633.202, F.S.; requiring the authority
4 having jurisdiction to determine certain minimum radio
5 signal strength requirements for all new and existing
6 buildings; authorizing the use of radio communication
7 enhancement systems to comply with minimum radio
8 signal strength requirements; revising the transitory
9 period for compliance; revising the date by which
10 existing apartment buildings that are not in
11 compliance must initiate an application for an
12 appropriate permit; amending s. 843.16, F.S.;
13 providing an exception to the prohibition against
14 installing or transporting certain radio equipment
15 using law enforcement or fire rescue frequencies;
16 providing an effective date.
17
18 Be It Enacted by the Legislature of the State of Florida:
19
20 Section 1. Subsection (18) of section 633.202, Florida
21 Statutes, is amended to read:
22 633.202 Florida Fire Prevention Code.—
23 (18) The authority having jurisdiction shall determine the
24 minimum radio signal strength for fire department communications
25 in all new high-rise and existing high-rise buildings. Two-way

Page 1 of 3

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hb0415-00
F L O R I D A H O U S E O F R E P R E S E N T A T I V E S

HB 415 2021

26 radio communication enhancement systems may be used to comply
27 with minimum radio signal strength requirements. Existing
28 buildings are not required to comply with minimum radio strength
29 for fire department communications and two-way radio system
30 enhancement communications as required by the Florida Fire
31 Prevention Code until January 1, 2027 2022. However, by December
32 31, 2024 2019, an existing building that is not in compliance
33 with the requirements for minimum radio strength for fire
34 department communications must apply for an appropriate permit
35 for the required installation with the local government agency
36 having jurisdiction and must demonstrate that the building will
37 become compliant by January 1, 2027 2022. Existing apartment
38 buildings are not required to comply until January 1, 2030 2025.
39 However, existing apartment buildings are required to apply for
40 the appropriate permit for the required communications
41 installation by December 31, 2027 2022.
42 Section 2. Paragraph (f) is added to subsection (3) of
43 section 843.16, Florida Statutes, to read:
44 843.16 Unlawful to install or transport radio equipment
45 using assigned frequency of state or law enforcement officers;
46 definitions; exceptions; penalties.—
47 (3) This section does not apply to the following:
48 (f) The installation of a two-way radio communication
49 enhancement system to comply with the requirements of s.
50 633.202(18).

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

HB 415 2021

51 Section 3. This act shall take effect July 1, 2021.

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hb0415-00
INSURANCE & BANKING SUBCOMMITTEE

HB 415 by Rep. Botana
Relating to Fire Department Communications

AMENDMENT SUMMARY
March 17, 2021

Amendment 1 by Rep. Botana: The amendment restores the term “high-rise” in s.
633.202(18), F.S., maintaining the requirement that local fire authorities determine minimum
radio signal strength for fire department communications for all new and existing high-rise
buildings. The amendment also provides that two-way radio communication enhancement
systems and similar systems shall not be required in buildings that are four stories or less in
height.
COMMITTEE/SUBCOMMITTEE AMENDMENT
Bill No. HB 415 (2021)
Amendment No. 1

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

1 Committee/Subcommittee hearing bill: Insurance & Banking
2 Subcommittee
3 Representative Botana offered the following:
4
5 Amendment (with title amendment)
6 Remove lines 25-27 and insert:
7 in all new high-rise and existing high-rise buildings. Two-way
8 radio communication enhancement systems may be used to comply
9 with minimum radio signal strength requirements. However, two-
10 way radio communication enhancement systems and similar systems
11 shall not be required in apartments or buildings that are four
12 stories or less in height. Existing
13
14 -----------------------------------------------------
15 T I T L E A M E N D M E N T
16 Remove lines 2-8 and insert:
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Page 1 of 2
COMMITTEE/SUBCOMMITTEE AMENDMENT
Bill No. HB 415 (2021)
Amendment No. 1

17 An act relating to fire department communications; amending
18 s. 633.202, F.S.; authorizing the use of radio
19 communication enhancement systems to comply with minimum
20 radio signal strength requirements; prohibiting the
21 authority having jurisdiction from requiring certain radio
22 communication enhancement systems in apartments or
23 buildings of a certain height; revising the transitory
24

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Page 2 of 2
HB 1209
HOUSE OF REPRESENTATIVES STAFF ANALYSIS
BILL #: HB 1209 Department of Financial Services
SPONSOR(S): Fetterhoff
TIED BILLS: IDEN./SIM. BILLS: SB 1408

REFERENCE ACTION ANALYST STAFF DIRECTOR or
BUDGET/POLICY CHIEF

1) Insurance & Banking Subcommittee Haas Luczynski

2) State Administration & Technology
Appropriations Subcommittee

3) Commerce Committee

SUMMARY ANALYSIS
The bill modifies several areas regulated by the Department of Financial Services (DFS), including:
 Division of Public Assistance Fraud (DPAF): establishes DPAF as a criminal justice agency.
 Firefighter Cancer Benefits under the State Risk Management Trust Fund (SRMTF): benefits payable from a
state firefighter’s cancer diagnosis to be paid from the SRMTF. Requires the Department of Management Services to
validate and approve benefits before they may be disbursed.
 Sexual Harassment Victims under State Risk Management: prohibits employees covered by the SRMTF from
engaging in retaliatory conduct against a sexual harassment victim and provides penalties for related violations.
 Funeral, Cemetery, and Consumer Services (FCCS): modifies composition of and procedures for filling Board
vacancies. Allows virtual meetings. Reduces the number of Board members needed for a quorum. Extends the crimes
an applicant for licensure must report. Creates permanent and temporary bars to licensure based upon certain crimes
in an applicant’s criminal history. Creates a third-degree felony for unlicensed funeral activity.
 Explosives: changes the definition of a two-component explosive.
 Fire Alarm Permit: The bill allows a contractor to begin work repairing existing fire alarm systems before approval but
after filing of a Uniform Fire Alarm Permit Application.
 Insurance Field Representatives and Operations: modifies the continuing education requirements of insurance
licensees except title insurance agents. Modifies requirements related to renewal appointments. Increases the
maximum length of suspension of title insurance agents from one year to two years.
 Protecting Proprietary Business Information: prohibits an insurance agent or broker from providing the insurer’s
replacement cost estimator or other proprietary underwriting information as a condition precedent or condition
subsequent to lending money or extending credit.
 Surplus Lines: Removes a notice requirement for insurance coverages to be exported. Adds that an agent may
export a contract providing flood coverage to an eligible surplus insurer without seeking coverage from three or more
authorized insurers.
 Fire Sprinkler Systems: modifies requirements related to design and alteration of fire sprinkler systems.
 The Fire and Emergency Incident Information Reporting Program: changes references to the term “protection
agencies” to “service providers”. Reconciles membership of the Fire and Emergency Incident Information Technical
Advisory Panel and the Firefighters Employment, Standards, and Training Council.
 Florida Fire Prevention Code: extends deadlines to comply with minimum radio strength for fire department
communications and requires radio strength assessments for existing high-rise buildings and apartments.
 Influencing a Firesafety Inspector: prohibits anyone from influencing a firesafety inspector and prohibits firesafety
inspectors from knowingly and willfully accepting any attempt of influence.
 Volunteer Firefighter Service: removes a prohibition for a volunteer firefighter to function as a volunteer firefighter
while transitioning to a career firefighter.
 Bail Bond Agents: makes it a crime for an agent to aid or abet unlicensed activity.
 False Personation: makes falsely impersonating any personnel or representative of the Division of Investigative and
Forensic Services a crime.

The bill has no fiscal impact on state government revenue. The bill may increase state government expenditures by an
indeterminable amount. The bill has no fiscal impact local government revenue or expenditures. The bill may have a
positive, but indeterminable, fiscal impact on the private sector.
Except as otherwise expressly provided, the bill has an effective date of July 1, 2021.

FULL ANALYSIS

This document does not reflect the intent or official position of the bill sponsor or House of Representatives .
STORAGE NAME: h1209.IBS
DATE: 3/15/2021
I. SUBSTANTIVE ANALYSIS

A. EFFECT OF PROPOSED CHANGES:
Department of Financial Services Organization

The Chief Financial Officer (CFO) is an elected member of the Cabinet, serves as the chief fiscal officer
of the State of Florida1 and is designated as the State Fire Marshal. The CFO is the head of the
Department of Financial Services (DFS). Effective January 2003, the Department of Insurance,
Treasury, State Fire Marshal and the Department of Banking and Finance merged into DFS. DFS
consists of many divisions and several specialized offices.2

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;3
 Public Assistance Fraud;
 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

The Division of Public Assistance Fraud (DPAF) was not established as a criminal justice agency when
it was transferred from FDLE to the Department of Financial Services in 2010.4 A “criminal justice
agency” is defined as: a court5, the Department of Law Enforcement6, the Department of Juvenile
Justice7, the protective investigations component of the Department of Children and Families, which
investigates the crimes of abuse and neglect8, 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.9 DPAF currently
operates by protecting Floridian taxpayers against public assistance fraud and the impact of those
crimes by enforcing state laws regarding program eligibility and proper use of public assistance
benefits.10

Effect of the Bill

The bill establishes DPAF as a criminal justice agency. The designation allows DPAF to have access to
criminal justice information contained in Florida Crime Information Center and National Crime

1 Art. IV, s. 4, Fla. Const.
2 S. 20.121, F.S.
3 This division includes the Bureau of Forensic Services; Bureau of Fire, Arson, and Explosives Investigations; Office of

Fiscal Integrity; Bureau of Insurance Fraud; and Bureau of Workers’ Compensation Fraud.
4 Ch. 2010-144, Laws of Fla.
5 S. 943.045 (11)(a), F.S.
6 S. 943.045 (11)(b), F.S.
7 S. 943.045 (11)(c), F.S.
8 S. 943.045 (11)(d), F.S.
9 S. 943.045 (11)(e), F.S.
10 Public Assistance Fraud, https://www.myfloridacfo.com/division/paf/ (last visited Mar. 10, 2021).
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Information Center. This will improve the department’s investigation and enforcement capabilities. The
bill includes DPAF in the definition of “criminal justice agency”.

Firefighter Cancer Benefits Under the State Risk Management Trust Fund

The State Risk Management Trust Fund (SRMTF) is a self-insurance fund, created and administered
by DFS.11 The SRMTF covers, unless specifically excluded, all departments of the State of Florida and
their employees, agents, and volunteers.12 The SRMTF provides insurance for workers’ compensation,
general liability, fleet automotive liability, federal civil rights actions under 42 U.S.C. s. 1983 or similar
federal statutes, and court-awarded attorney's fees in other proceedings against the state except for
such awards in eminent domain or for inverse condemnation or for awards by the Public Employees
Relations Commission.13

The SRMTF also requires that separate accounts must be kept for workers' compensation, general
liability, fleet automotive liability, federal civil rights actions under 42 U.S.C. s. 1983 or similar federal
statutes, and court-awarded attorney's fees in other proceedings against the state except for such
awards in eminent domain or for inverse condemnation or for awards by the Public Employees
Relations Commission.14

Effective July 1, 2019,15 a firefighter who has been diagnosed with cancer and have been employed by
his or her employer for at least 5 continuous years, has not used tobacco products for at least the
preceding 5 years, and has not been employed in any other position in the preceding 5 years which is
proven to create a higher risk for any cancer is entitled to the following benefits:
 Cancer treatment covered within an employer-sponsored health plan or through a group health
insurance trust fund. The employer must timely reimburse for any out-of-pocket deductible,
copayment, or coinsurance costs incurred due to the treatment of cancer.16
 A one-time cash payout of $25,000, upon the firefighter’s initial diagnosis of cancer.17

The benefits remain available to the firefighter for 10 years following the date on which the firefighter
terminates employment if the firefighter elects to continue coverage in the employer-sponsored health
plan or group health insurance trust fund.18 Currently, the employing agency is responsible for
providing these benefits.19

Effect of the Bill

The bill provides that these firefighter cancer benefits be placed within the responsibility of the SRMTF.
The bill also requires a separate account in the SRMTF for benefits payable to firefighters diagnosed
with cancer. The bill requires the Department of Management Services (DMS) to validate and approve
the firefighter cancer benefits before the benefits may be disbursed from the SRMTF.

Sexual Harassment Victims under the State Risk Management Trust Fund

The personal identifying information of an alleged victim in an allegation of sexual harassment is
confidential and exempt from the public records requirements specified in s. 119.07(1), F.S., and s.
24(a), Art. I of the State Constitution.20

Effect of the Bill

11 S. 284.30, F.S.
12 S. 284.31, F.S.
13 S. 284.30, F.S.
14 S. 284.31, F.S.
15 Ch. 2019-21, Laws of Fla.
16 S. 112.1816(2)(a), F.S.
17 S. 112.1816(2)(b), F.S.
18 Id.
19 S. 112.1816, F.S.
20 S. 119.071(2)(n), F.S.
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The bill provides that any individual working for an entity covered by the SRMTF21 may not engage in
any retaliatory conduct against a sexual harassment victim. The bill defines a “sexual harassment
victim” as individual employed, or being considered for employment, with an entity participating in the
State Risk Management Trust Fund who becomes a victim of workplace sexual harassment through
the course of employment, or while being considered for employment, with the entity.

The bill creates a first-degree misdemeanor, punishable, as provided, by s. 775.082 for willfully and
knowingly disseminating personal identifying information of a sexual harassment victim to any party
other than a governmental entity in furtherance of its official duties or pursuant to a court order. The bill
defines “personal identifying information as the name of a sexual harassment victim and his or her:
 Home address
 Home phone number
 Cellular phone number
 E-mail address,
 Social media account username or URL
 Any other information that could be reasonably used to identify an alleged sexual harassment
victim.

Funeral, Cemetery, and Consumer Services (FCCS)

The Board of Funeral, Cemetery, and Consumer Services

Section 20.121(4), F.S., creates the Board of Funeral, Cemetery, and Consumer Services (Board)
within the Division of Funeral, Cemetery, and Consumer Services of the Department of Financial
Services.

The Board currently consists of 10 members pursuant to the following structure:
 The State Health Officer or his or her designee22
 Two funeral directors who are:
o Licensed under part III of ch. 497, F.S., as funeral directors, and
o Associated with a funeral establishment23
 One funeral director who is:
o Licensed under part III of ch. 497, F.S., as a funeral director
o Associated with a funeral establishment licensed under part III of ch. 497, F.S., that has
a valid preneed license issued pursuant to ch. 497, F.S., and
o Owns or operates a cinerator facility that is approved under ch. 403, F.S., and licensed
under part IV of ch. 497, F.S.24
 Two persons whose:
o Primary occupation is associated with a cemetery company licensed under ch. 497,
F.S.25
 Three consumers who:
o Are Florida residents
o Have never been licensed as funeral directors or embalmers
o Are not connected with a cemetery or cemetery company licensed pursuant to ch. 497,
F.S.
o Are not connected with the death care industry or the practice of embalming, funeral
directing, or direct disposition
o At least one of which is at least 60 years old

21 The SRMTF covers, unless specifically excluded, all departments of the State of Florida and their employees, agents,

and volunteers. S. 284.31, F.S.
22 S. 497.101(1), F.S.
23 S. 497.101(2), F.S
24 Id.
25 Id.
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o At least one of which is a licensed certified public accountant26
 One member who shall be:
o A principal of a monument establishment licensed under ch. 497, F.S., as a monument
builder.27
There shall not be two or more Board members who are principals or employees of the same company
or partnership or group of companies or partnerships under common control.28

Nine of the 10 Board members, save only the State Health Officer, are appointed by the Governor from
nominations made by the CFO and confirmed by the Senate.29 Currently the CFO must nominate three
persons for each vacancy.30 If the Governor objects to each of the three nominations for a vacancy, the
CFO must submit an additional three nominations until the vacancy is filled.31 The DFS reports that they
often to not receive three or more applications for qualified applicants to the Board.32 In fact, the DFS
reports that the CPA position has remained vacant since September 2017 for this reason.33

Board members, other than the State Health Officer,34 are appointed for 4 year terms.35 The CFO was
directed to stagger the terms of members after the terms of the initial members expired 36 and this has
already occurred at the initiation of the Board.37

The Board acts as the licensing and rulemaking authority under ch. 497, F.S. for a vast array of matters
within the death care industry.38 A quorum is necessary to conduct the business of the Board.39 A
quorum consists of six members of the Board.40 The DFS indicates that it can be difficult to obtain this
number due to Board vacancies, absenteeism, and necessary recusal.41

Effect of the Bill

The bill reduces the number of nominations that the CFO must make per Board vacancy from three to
one. This should alleviate some of the issues DFS is facing with not being able to fill their Board
vacancies due to a lack of applications while still maintaining the provision that allows the Governor to
reject the nomination(s).

The bill also adjusts the Board composition by:
 Reducing from three to two the number of positions on the Board that must be held by
consumers who are Florida residents, have never been licensed funeral directors or embalmers,
are not connected with a cemetery or licensed cemetery company, and are not connected to the
death care industry or the practice of embalming, funeral directing, or direct disposition; and
 Clarifying the requirement of the CPA consumer member by stating that he or she must: be a
Florida resident, be licensed as a certified public accountant under chapter 473, have never
been licensed as a funeral director or an embalmer, and must not be a principal or an employee
of any licensee licensed under this chapter; and must not otherwise have control, as defined in
s. 497.005, over any licensee licensed under this chapter.

26 Id.
27 Id.
28 Id.
29 S. 497.101(1), F.S.
30 Id.
31 Id.
32 Department of Financial Services, Agency Analysis of 2021 HB 1209 (Mar. 9, 2021).
33 Id.
34 The State Health Officer serves as long as he or she holds that office. S. 497.101(3), F.S.
35 S. 497.101(3), F.S.
36 Id.
37 Department of Financial Services, supra note 32.
38 S. 497.103(1)(a)-(cc), F.S.
39 S. 497.101(6), F.S.
40 Id.
41 Department of Financial Services, supra note 32.
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The bill removes the outdated provision involving the staggering of the Board from its initial Board
members. Because the Board has been in place since 2003, provisions dealing with its initial Board
members are irrelevant.

The bill changes the quorum requirements of the Board by allowing participation in meetings through
communications media technology. The bill defines “communications media technology” as the
electronic transmission of printed matter, audio, full-motion video, freeze-frame video, compressed
video, and digital video by any method available.

The bill also reduces the number of Board members needed for a quorum to conduct business from six
out of the 10 members, regardless of vacancies, to a simple majority of Board members present and
eligible to vote. While this may help the Board conduct business when vacancies occur, it may also
lead to the satisfaction of a quorum with only one member present and eligible to vote.

Disclosure of Records and Bars from Licensure

An individual applying for licensure under ch. 497, F.S. must disclose certain criminal records.42

Currently, if the applicant, within 10 years of filing the application, has been convicted or found guilty of,
or entered a plea of nolo contendere to, regardless of adjudication, any crime in any jurisdiction, the
application will not be complete until the applicant provides certified true copies of the court records
evidencing the conviction, finding, or plea.43

An individual applying for renewal of any license under ch. 497, F.S. must also disclose certain criminal
records since the most recent renewal of his or her license or, if the license has not been renewed,
since the licensee’s initial application.44 Criminal records shall be disclosed regardless of whether the
criminal conduct occurred inside or outside the state and regardless of whether the criminal prosecution
occurred in state court or in the court of another state, the United States, or a foreign country. 45

The crimes that are currently required to be disclosed are:
 Any felony or misdemeanor, no matter when committed, that was directly or indirectly related to
or involving any aspect of the practice or business of funeral directing, embalming, direct
disposition, cremation, funeral or cemetery preneed sales, funeral establishment operations,
cemetery operations, or cemetery monument or marker sales or installation;46
 Any other felony that was committed within the 20 years immediately preceding the application
under this chapter;47 and
 Any other misdemeanor that was committed within the 5 years immediately preceding the
application under this chapter.48

Effect of the Bill

The bill removes the 10 year qualifier for applicants to be required to provide certified true copies of the
court records evidencing a conviction, guilty finding, or plea of nolo contendere. This removal will
require applicants who have been convicted or found guilty of, or entered a plea of nolo contendere to,
regardless of adjudication, any crime in any jurisdiction at any time in their life to provide certified true
copies of the court records.

The bill also amends the crimes to be disclosed to state:
 Any felony, no matter when committed;

42 S. 497.142, F.S.
43 S. 497.142(9), F.S.
44 S. 497.142(10)(a), F.S.
45 S. 497.142(10)(d), F.S.
46 S. 497.142(10)(c)(1), F.S.
47 S. 497.142(10)(c)(2), F.S.
48 S. 497.142(10)(c)(3), F.S.
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 Any misdemeanor, no matter when committed, which was directly or indirectly related to the
financial services business;49 and
 Any other misdemeanor that was committed within the 5 years immediately preceding the
application under this chapter.

This removes the qualifier that the felony must be related to the death industry. It also modifies the
extent of misdemeanors that must be disclosed from those relating to the death industry to those
related to any financial services business.

The bill creates a new section of statute that provides permanent bars and disqualification periods for
applicants and licensees that are the same for all license types.

The bill creates a permanent bar from licensure if the applicant has been found guilty of or has pleaded
guilty or nolo contendere50 to any of the following, regardless of adjudication:
 A felony of the first degree;
 A capital felony;
 A felony money laundering offense;
 A felony embezzlement.

The bill also creates disqualification periods for various felonies and misdemeanors:
 10 year disqualifying period for all felonies involving moral turpitude51 that do not fall under the
permanent bar.
 5 year disqualifying period for all felonies that do not fall under the permanent bar and that do
not involve moral turpitude.
 5 year disqualifying period for all misdemeanors directly related to the financial services
business.

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 of the applicant’s 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.

The bill requires the Board to adopt rules to administer these bars and disqualifications and for the
rules to provide for additional disqualifying periods due to the commitment of multiple crimes and other
factors related to the applicant’s criminal history. The bill requires that the rules must provide for
mitigating and aggravating factors but such factors cannot lessen the disqualification to any period less
than 5 years.

An applicant is not barred from licensure if he or she has been found guilty of, or has pled guilty of nolo
contendere to a felony or misdemeanor but has been subsequently granted of a pardon or the
restoration of civil rights pursuant to ch. 940, F.S., and article IV, section 8 of the Florida Constitution, or
a pardon or the restoration of civil rights under the laws of another jurisdiction with respect to a
conviction in that jurisdiction.

The bill allows the Board to grant an exemption from disqualification for licensure 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 the judgment and sentence for any disqualifying
offense; and

49 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.
50 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 Mar. 11, 2021).
51 “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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 At least 5 years have elapsed since the applicant completed or has been lawfully released from
confinement, supervision, or a nonmonetary condition imposed by the court for a disqualifying
offense.
For the Board to grant the exemption, the applicant must clearly and convincingly demonstrate that he
or she would not pose a risk to persons or property if licensed under ch. 497, F.S. The applicant is
required, but not limited to, provide the following evidence:
 Facts and circumstances surrounding the disqualifying offense;
 The time that has elapsed since the offense;
 The nature of the offense and harm caused to the victim;
 The applicant's history before and after the offense; and
 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), F.S., is
available to an applicant only if the applicant disputes material facts that the Board relied upon in order
to reach a decision.

All of the disqualification periods put forth in the bill do not apply to the renewal of a license or to a new
application for licensure if the applicant has an active license as of July 1, 2021, and the applicable
criminal history was considered by the Board on the prior approval of any active license held by the
applicant.

Violations by Unlicensed Persons

Chapter 497, F.S., requires a license for specific death care industry practices and provides a penalty
of a second-degree misdemeanor for individuals who engage in activity requiring licensure without
possessing a license,52 though it does not include specific examples of what is considered unlicensed
practice.

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 sales agent53 unless currently
licensed by DFS and is appointed by a preneed main licensee, for whom they are executing preneed
contracts.

The bill increases the penalty for unlicensed activity from a second-degree misdemeanor to a third-
degree felony, punishable as provided in s. 775.082, s. 775.083, or s. 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.54 DFS asserts that No. 6 blasting caps went out of
production several years ago and current blasting caps no longer use the same rating system.55

Effect of the Bill

52 S. 497.159(6), F.S.
53 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.
54 S. 552.081(13), F.S.
55 Department of Financial Services, supra note 32.
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The bill removes the No. 6 blasting cap specification and broadens the application to encompass any
detonator. The amendment to this subsection brings the language in line with current practices.

Fire Alarm Permit

All fire alarm system equipment in Florida is installed in accordance with the applicable standards of
the National Fire Protection Association and procedures approved by a nationally recognized testing
laboratory.56 All fire alarm systems required by the State Fire Marshal's rules shall be installed,
serviced, tested, repaired, inspected, and improved in compliance with the provisions of the applicable
standards of the National Fire Protection Association.57

Currently, contractors can only repair a fire alarm system that was previously permitted by the local
enforcement agency after filing a Uniform Fire Alarm Permit application and receiving the permit.58

Effect of the Bill

The bill allows for contractors to begin repairing fire alarm systems that were previously permitted by
the local enforcement agency after filing a Uniform Fire Alarm Permit application but before receiving
the permit. The bill provides that a fire alarm repaired under this new subsection will not be considered
compliant until the permit is issued and the local enforcement agency approves the repair.

Insurance Field Representatives and Operations

Continuing Education Requirements

Individuals licensed to engage in the sale of insurance or adjustment of insurance claims in this state
are required to fulfill continuing education requirements, pursuant to s. 626.2815, F.S.

Some of the current continuing education requirements are as follows:
 Licensees, except title insurance agents, are required to complete a 5-hour update course
every two years which is specific to the license held by the licensee;59
 All licensees must also complete 19 hours of elective continuing education every two years;60
 If a licensee has been licensed for six years or more, the above elective continuing education
drops to 15 hours every two years;61
 A licensee who has been licensed for 25 years or more and is a CLU or a CPCU or has a
Bachelor of Science degree in risk management or insurance with evidence of 18 or more
semester hours in insurance-related courses must also complete a minimum of 5 hours of
elective continuing education courses every 2 years;62
 An individual who holds a license as a customer representative and who is not a licensed life or
health agent must also complete a minimum of 5 hours of continuing education courses every
2 years;63
 An individual subject to chapter 648, F.S., relating to bail bond agents, is required to complete
a 5-hour update course and a minimum of 9 hours of elective continuing education courses
every two years.64

If an individual fails to certify their continuing education requirements, DFS may immediately terminate
or refuse to renew the appointment of an agent or adjuster after notice.65

56 S. 633.348(1)-(2), F.S.
57 S. 633.348(5), F.S.
58 S. 553.7921(1)(b), F.S.
59 S. 626.2815(3), F.S.
60 S. 626.2815(3)(a), F.S.
61 S. 626.2815(3)(b), F.S.
62 S. 626.2815(3)(c), F.S.
63 S. 626.2815(3)(d), F.S.
64 S. 626.2815(3)(e), F.S.
65 S. 626.2815(9), F.S.
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Effect of the Bill

The bill adjusts the continuing education requirements to state the following:
 Licensees, except title insurance agents, are required to complete a 4-hour update course every
two years which is specific to the license held by the licensee;
 All licensees must also complete 20 hours of elective continuing education every two years
 If a licensee has been licensed for six years or more, the above elective continuing education
drops to 16 hours every two years;
 A licensee who has been licensed for 25 years or more and is a CLU or a CPCU or has a
Bachelor of Science degree in risk management or insurance with evidence of 18 or more
semester hours in insurance-related courses must also complete a minimum of 6 hours of
elective continuing education courses every 2 years;
 An individual who holds a license as a customer representative and who is not a licensed life or
health agent must also complete a minimum of 6 hours of continuing education courses every 2
years;
 An individual subject to chapter 648, F.S., relating to bail bond agents, is required to complete a
4-hour update course and a minimum of 10 hours of elective continuing education courses
every two years.

Therefore, the bill lowers the hourly requirement for the update courses by 1 hour and increases the
hourly requirement for elective continuing education by 1 hour. The total continuing education hourly
requirement remains the same.

Payment of Fees

No person may be, act as, or advertise or hold himself or herself out to be an insurance agent,
insurance adjuster, or customer representative unless he or she is currently licensed by the department
and appointed by an appropriate appointing entity or person.66

Currently, all initial appointments shall be submitted to DFS on a monthly basis no later than 45 days
after the date of appointment and become effective on the date requested on the appointment form.67 If
a DFS investigation into the application and qualification for an initial or renewal appointment of an
individual uncovers that the individual is improperly appointed to represent an insurer or employer due
to an inadvertent error by the insurer or employer represented, DFS may still issue the appointment
subject to a condition that all fees and taxes pursuant to ch. 624.501, F.S.68 have been paid.69

Effect of the Bill

The bill adds that all appointments, including renewal appointments, shall be submitted to DFS on a
monthly basis no later than 45 days after the date of appointment. The bill specifies that if DFS
determines that an individual was improperly appointed due to an inadvertent error, DFS will notify the
insurer or employer of its finding and obligation to pay all fees and taxes within 21 days. If the insurer or
employer does not pay the fees and taxes within 21 days after notice, DFS shall suspend the insurer’s
or employer’s authority to appoint licensees until the fees have been paid.

After the individual is properly appointed and has paid all fees and taxes, DFS may no longer consider
the inadvertent failure to appoint to be a violation of the Florida Insurance Code. The bill clarifies other
language in this subsection.

Suspension of Title Insurance Agents

66 S. 626.112(1)(a), F.S.
67 S. 626.371(1), F.S.
68 Appointment and renewal fees and taxes range from $60 for most agents to $150 for surplus lines agents.
69 S. 626.371(2), F.S.
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DFS may currently suspend a title insurance agent’s or agency’s license or appointment for a period
not to exceed 1 year.70 Under Florida’s Insurance Code, DFS may suspend most other insurance agent
licensees for a period not to exceed two years.71

Effect of the Bill

The bill extends the maximum length of suspension for title insurance agents to 2 years. This change
matches the treatment of other insurance agents under Florida’s Insurance Code. DFS asserts that the
longer suspension period is important to protect consumers from bad actors.72

Surplus Lines

Eligibility for Export to Surplus Lines Insurance

Surplus lines insurance is an alternative type of insurance coverage for consumers who cannot get
coverage in the standard/admitted market due to unusual or high risks.73 Exporting an insurance policy
means to place a policy with a surplus lines insurer who is not part of the standard/admitted insurance
market.74

Currently, for personal residential property risks to be exported to the surplus lines marketplace, the
retail or producing agent must advise the insured by notice in writing that they may obtain less
expensive coverage from Citizens Property Insurance Corporation.75 The notice must include other
information that states that assessments by Citizens Property Insurance Corporation are higher and the
coverage provided by Citizens Property Insurance Corporation may be less than the property’s existing
coverage.76 If the notice is signed by the insured, it is presumed that the insured has been informed
and knows that policies from Citizens Property Insurance Corporation may be less expensive, may
provide less coverage, and will be accompanied by higher assessments.77

Effect of the Bill

The bill removes the provision requiring retail or producing agents to advise insureds by notice that they
may obtain less expensive coverage from Citizens Property Insurance Corporation prior to exporting
coverage to the surplus lines market. The bill also removes the notice requirements and the insured’s
informed presumption.

Exporting Flood Insurance Coverage

As a condition for exporting insurance coverage to the surplus lines marketplace, the full amount of
insurance required must not be procurable, after a diligent effort has been made by the producing
agent to do so, from among the insurers authorized to transact and actually writing that kind and class
of insurance in this state, and the amount of insurance exported shall be only the excess over the
amount so procurable from authorized insurers.78

In 2014, the Legislature created s. 627.715, F.S., which provided a regulatory framework for admitted
insurers to write personal lines residential flood coverage. The bill also allowed a surplus lines agent to
export a contract or endorsement providing flood coverage to an eligible surplus lines insurer without

70 S. 626.8443(1), F.S.
71 S. 626.641(1), F.S.
72 Department of Financial Services, supra note 32.
73 Department of Financial Services, Florida Surplus Lines Office, Understanding Florida’s Excess and Surplus Market,

https://www.myfloridacfo.com/division/consumers/understandingcoverage/guides/documents/SurplusLinesConsumerBroc
hure.pdf (last visited Mar. 12, 2021).
74 Id.; s. 626.914(3), F.S.
75 S. 626.916(1)(e), F.S.
76 Id.
77 Id.
78 S. 626.916(1)(a), F.S.
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making a diligent effort to seek coverage from three or more authorized insurers.79 The bill provided
that the exemption to the diligent effort requirement expired on July 1, 2017. In 2017, the Legislature
extended the exemption until July 1, 2019, or earlier if the Office of Insurance Regulation determined
there was an adequate flood insurance market among admitted insurers.80 The exemption expired on
July 1, 2019.

Effect of the Bill

The bill reinstates the exemption to provide that a surplus lines agent is able to export a contract or an
endorsement providing flood coverage to an eligible surplus lines insurer without making a diligent
effort to seek coverage from three or more authorized insurers. The bill does not include an expiration
date for the exemption.

Protecting Proprietary Business Information

DFS asserts that many lenders require the replacement cost estimator or other proprietary business
information belonging to the insurer underwriting the insurance policy as a condition precedent or
condition subsequent to the lending of money or extension of credit to be secured by the real
property.81 DFS also asserts that this has caused issues between the insurance, lending, and real
estate industries where the proprietary business information of the insurers is used by lenders for
reasons outside the scope of the insurance policy.82

Effect of the Bill

The bill adds a provision prohibiting an insurance agent or broker from providing the insurer’s
replacement cost estimator or other underwriting information that is proprietary as a condition
precedent or condition subsequent to lending money or extending credit.

Fire Prevention and Control

Fire Sprinkler Systems

Chapter 633, F.S. defines five different classifications of contractors for purposes of fire prevention and
control:
 “Contractor I” means a contractor whose business includes the execution of contracts requiring
the ability to lay out, fabricate, install, inspect, alter, repair, and service all types of fire protection
systems, excluding preengineered systems.83
 “Contractor II” means a contractor whose business is limited to the execution of contracts
requiring the ability to lay out, fabricate, install, inspect, alter, repair, and service water sprinkler
systems, water spray systems, foam-water sprinkler systems, foam-water spray systems,
standpipes, combination standpipes and sprinkler risers, all piping that is an integral part of the
system beginning at the point of service as defined in this section, sprinkler tank heaters, air
lines, thermal systems used in connection with sprinklers, and tanks and pumps connected
thereto, excluding preengineered systems.84
 “Contractor III” means a contractor whose business is limited to the execution of contracts
requiring the ability to fabricate, install, inspect, alter, repair, and service carbon dioxide
systems, foam extinguishing systems, dry chemical systems, and Halon and other chemical
systems, excluding preengineered systems.85
 “Contractor IV” means a contractor whose business is limited to the execution of contracts
requiring the ability to lay out, fabricate, install, inspect, alter, repair, and service automatic fire

79 Ch. 2014-80, Laws of Fla.
80 Ch. 2017-142, Laws of Fla.
81 Department of Financial Services, supra note 32.
82 Id.
83 S. 633.102(3)(a), F.S.
84 S. 633.102(3)(b), F.S.
85 S. 633.102(3)(c), F.S.
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sprinkler systems for detached one-family dwellings, detached two-family dwellings, and mobile
homes, excluding preengineered systems and excluding single-family homes in cluster units,
such as apartments, condominiums, and assisted living facilities or any building that is
connected to other dwellings. A Contractor IV is limited to the scope of practice specified in
NFPA 13D.86
 “Contractor V” means a contractor whose business is limited to the execution of contracts
requiring the ability to fabricate, install, inspect, alter, repair, and service the underground piping
for a fire protection system using water as the extinguishing agent beginning at the point of
service as defined in this act and ending no more than 1 foot above the finished floor.87

Currently, a person certified as a Contractor I, Contractor II, or Contractor IV may design fire protection
systems of 49 or fewer sprinklers and may design the alteration of an existing fire sprinkler system if the
alteration consists of the relocation, addition, or deletion of not more than 49 sprinklers, notwithstanding
the size of the existing fire sprinkler system.88

Currently, a person certified as a Contractor I, Contractor II, or Contractor IV may only design a fire
protection system, the scope of which complies with NFPA 13D, "Standard for the Installation of
Sprinkler Systems in One- and Two-Family Dwellings and Manufactured Homes," as adopted by the
State Fire Marshal, notwithstanding the number of fire sprinklers.89

Effect of the Bill

The bill removes Contractor IV from being able to design fire protection systems of 49 or fewer
sprinklers and from being able to design the alteration of an existing fire sprinkler system if the
alteration consists of the relocation, addition, or deletion of not more than 49 sprinklers, notwithstanding
the size of the existing fire sprinkler system.

The bill adds that a person certified as a Contractor I, Contractor II may also design the alteration of an
existing fire sprinkler system if the alteration consists of the relocation or deletion of 249 or fewer
sprinklers, notwithstanding the size of the existing fire sprinkler system, if:
 there is no change of occupancy, as defined in the Florida Building Code and the Florida Fire
Prevention Code, of the affected areas,
 there is no change in the water demand as defined in NFPA 13, "Standard for the Installation of
Sprinkler Systems," and
 the occupancy hazard classification as defined in NFPA 13 is reduced or remains the same as a
result of the alteration.

The bill provides that any conflicts between the Florida Building Code and the Florida Fire Prevention
Code shall be resolved by agreement between the Florida Building Commission and the State Fire
Marshal in favor of the requirement that offers the greatest degree of lifesafety or alternatives that
would provide an equivalent degree of lifesafety and an equivalent method of construction.90 If the
commission and State Fire Marshal are unable to agree on a resolution, the question shall be referred
to a mediator, mutually agreeable to both parties, to resolve the conflict in favor of the provision that
offers the greatest lifesafety, or alternatives that would provide an equivalent degree of lifesafety and
an equivalent method of construction.91

The bill also adds that a person certified as a Contractor I, Contractor II, or Contractor IV may not only
design but adds that they may alter a fire protection system, the scope of which complies with NFPA
13D, "Standard for the Installation of Sprinkler Systems in One- and Two-Family Dwellings and
Manufactured Homes," as adopted by the State Fire Marshal, notwithstanding the number of fire
sprinklers.

86 S. 633.102(3)(d), F.S.
87 S. 633.102(3)(e), F.S.
88 S. 633.102, F.S.
89 Id.
90 S. 553.73(1)(d), F.S.
91 Id.
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The Fire and Emergency Incident Information Reporting Program

In 2005, the Florida Legislature created s. 633.115, F.S.92 to establish the Fire and Emergency
Incident Information Reporting Program (FEIIRP).93 The new statutory language also created the Fire
and Emergency Incident Information Technical Advisory Panel (Panel).94 This section also included
codifying language for the Florida Fire Incident Reporting System (FFIRS) which is and has been the
Florida coordinating officer for the National Fire Incident Reporting Section (NFIRS).95 FFIRS is a
means for fire departments to report and maintain computerized records of fires and other fire
department incidents in a uniform manner.96

The Panel is tasked with advising, reviewing, and making recommendations to the State Fire Marshal
with respect to the requirements of s. 633.136.97 The Panel currently consists of 15 members:98
 The thirteen members of Firefighters Employment, Standards, and Training Council (Council);
 One member from the Florida Forest Service of the Department of Agriculture and Consumer
Services; and
 One member from the Department of Health, appointed by the State Surgeon General.

The Firefighters Employment, Standards, and Training Council is currently composed of the following
14 members:99
 Two fire chiefs appointed by the Florida Fire Chiefs Association;
 Two firefighters, who are not officers, appointed by the Florida Professional Firefighters
Association;
 Two firefighter officers, who are not fire chiefs, appointed by the State Fire Marshal;
 One individual appointed by the Florida League of Cities;
 One individual appointed by the Florida Association of Counties;
 One individual appointed by the Florida Association of Special Districts;
 One individual appointed by the Florida Fire Marshals' and Inspectors' Association;
 One employee of the Florida Forest Service of the Department of Agriculture and Consumer
Services appointed by the director of the Florida Forest Service;
 One individual appointed by the State Fire Marshal;
 One director or instructor of a state-certified firefighting training facility appointed by the State
Fire Marshal; and
 The remaining member, who shall be appointed by the State Fire Marshal, may not be a
member or representative of the firefighting profession or of any local government.

The Panel and the Council have nearly the same membership and they meet at the same time and
place.100

Effect of the Bill

The bill replaces the term “fire protection agencies” with “fire service providers” to match the definition
in s. 633.102, F.S. “Fire service provider” is defined as a municipality or county, the state, the division,
or any political subdivision of the state, including authorities and special districts, that employs
firefighters or uses volunteer firefighters to provide fire extinguishment or fire prevention services for the

92 S. 633.115, F.S., was transferred and renumbered as s. 633.136, F.S., in 2013. Ch. 2013-183, Laws of Fla.
93 Ch. 2005-117, Laws of Fla.; see also Department of Financial Services, Division of State Fire Marshal, Florida Fire and

Incident Reporting System, https://www.myfloridacfo.com/Division/SFM/FFIRS/ (last visited Mar. 12, 2021).
94 Id.; S. 633.136(2), F.S.
95 Id.
96 Id.
97 S. 633.136(2), F.S.
98 Id.
99 S. 633.402(1)(a), F.S.
100 Department of Financial Services, supra note 32.
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protection of life and property. The term includes any organization under contract or other agreement
with such entity to provide such services.

The bill adds one member to the Council, an individual from the Department of Health, appointed by the
Surgeon General. The bill also reduces the composition of the Panel from two members from the
Florida Fire Service to one member, thus making the membership of the Panel and the Council
identical.

The Panel references to one member from the Florida Forest Service and one member from the
Department of Health are deleted, leaving the Panel membership to include only the newly revised 15
member Council.

Florida Fire Prevention Code

The Florida Fire Prevention Code (FFPC) is administered by the State Fire Marshal under DFS.101
FFPC is the minimum fire prevention code deemed adopted by each municipality, county, and special
district with firesafety responsibilities.102 State law requires each municipality, county, and special
district with firesafety responsibilities to adopt the FFPC.103

The authority having jurisdiction (local fire authorities) shall determine the minimum radio signal
strength for fire department communications in all new high-rise and existing high-rise buildings.104

Currently, existing high-rise buildings are not required to comply with minimum radio strength for fire
department communications and two-way radio system enhancement communications as required by
the Florida Fire Prevention Code until January 1, 2022.105 By December 31, 2019, an existing high-rise
building that was not in compliance with the requirements for minimum radio strength for fire
department communications must have applied for an appropriate permit for the required installation
with the local government agency having jurisdiction and must have demonstrated that the building will
have become compliant by January 1, 2022.106 Existing apartment buildings are required to apply for
the appropriate permit for the required communications installation by December 31, 2022.107

Effect of the Bill

The bill extends the deadline by which existing high-rise buildings are required to comply with minimum
radio strength for fire department communications and two-way radio system enhancement
communications as required by the Florida Fire Prevention Code until January 1, 2023.

The bill also reinstates the expired provision and modifies it so that by January 1, 2022, an existing
high-rise building that is not in compliance with the requirements for minimum radio strength for fire
department communications must have completed a minimum radio strength assessment for the
required installation with the local government agency having jurisdiction and must demonstrate that
the building will become compliant by January 1, 2023.

The bill also modifies the provision for existing apartment buildings in the same way so that rather than
being required to simply apply for the appropriate permit by December 31, 2022, they must have
completed a minimum radio strength assessment.

Influencing a Firesafety Inspector

101 Chapter 69A, F.A.C.
102 Chapter 69A-60.002(1), F.A.C.
103 S. 633.208, F.S.
104 S. 633.202(18), F.S.
105 Id.
106 Id.
107 Id.
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Each county, municipality, and special district that has firesafety enforcement responsibilities is
required to employ or contract with a firesafety inspector.108 However, the State Fire Marshal (SFM)
shall assume the duties of a firesafety inspector in any county, municipality, or special district that
does not employ or appoint a firesafety inspector.109 Subject to certain exceptions, the firesafety
inspector is responsible for conducting all firesafety inspections required by law.110 Some of the
responsibilities of the firesafety inspector include conducting firesafety inspections of buildings and
facilities on a recurring or regular basis on behalf of the state or any county, municipality, or special
district with fire safety responsibilities.111

Current law provides that a person who violates any provision of ch. 633, F.S., any order or rule of the
SFM, or any order to cease and desist or to correct conditions issued under this chapter commits a
misdemeanor of the second degree.112 However, ch. 633, F.S., does not have any provision
prohibiting a person from influencing a firesafety inspector to violate any provision of the Florida Fire
Prevention Code nor from a firesafety inspector accepting such influence.

Effect of the Bill

The bill creates a new section of law that 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.113 Moreover, any person who violates the bill’s
new provisions commits a misdemeanor of the second degree.114

Volunteer Firefighter Service

The National Fire Prevention Association estimates that there were 1,115,000 career and volunteer
firefighters in the United States in 2018.115 Of the total number of firefighters, 370,000 (33 percent)
were career firefighters and 745,000 (67 percent) were volunteer firefighters.116

Florida has 465 registered fire departments.117 Approximately 46 percent of Florida firefighters are
identified as volunteer or mostly volunteer while the remainder are identified as career or mostly
career.118

Volunteer firefighters are required to obtain a Firefighter Certificate of Completion through training.119
With this certificate, they may enter into immediately dangerous to life and health (IDLH) environments
along with career firefighters. Volunteer firefighters may become career firefighters if they complete a

108 S. 633.216(1), F.S.
109 S. 633.104(7), F.S.
110 Id.
111 S. 633.102(12), F.S.
112 S. 633.124(1), F.S
113 S. 633.216(6)(b), F.S.
114 S. 633.124(1), F.S.
115 National Fire Prevention Association, US Fire Department Profile 2018, https://www.nfpa.org/-/media/Files/News-and-

Research/Fire-statistics-and-reports/Emergency-responders/osfdprofile.pdf (last visited Mar. 12, 2021).
116 Id.
117 U.S. Fire Administration, National Fire Department Registry Quick Facts, https://apps.usfa.fema.gov/registry/summary

(last visited Mar. 12, 2021).
118 Id.
119 S. 633.408, F.S.
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Certificate of Compliance.120 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.

DFS asserts that this change would improve rural and small agency recruitment of firefighters by
allowing them to focus on hiring from local candidates who are more inclined to remain in the area
instead of hiring candidates from elsewhere in the state who are inclined to return to their home
communities once gaining some experience.121

Bail Bond Agents

Currently, a person may not act as a bail bond agent or temporary bail bond agent unless qualified,
licensed, and appointed.122 A person may also not represent himself or herself to be a bail
enforcement agent, bounty hunter, or other similar title, and a person, other than a certified law
enforcement officer, may not apprehend, detain, or arrest a principal on a bond unless qualified,
licensed, and appointed.123

Any person who acts as a bail bond agent or as otherwise described above, commits a felony of the
third degree.124

The law, however, does not currently provide a penalty for a licensee aiding or abetting an unlicensed
person who acts as a bail bond agent or as otherwise described above.

Effect of the Bill

The bill creates a provision which provides that any licensee who knowingly aids or abets an
unlicensed person in acting as a bail bond agent or otherwise violating s. 648.30, F.S., commits a third-
degree felony.

False Personation

Section 843.08, F.S., provides that a person who falsely assumes or pretends to be any officer
identified in a specific list commits a felony of the third degree. A person who falsely personates any
such officer during the course of the commission of a felony commits a felony of the second degree,
and if the commission of the felony results in the death or personal injury of another human being, the
person commits a felony of the first degree.125

Current law prohibits impersonation of a fire or arson investigator of DFS and any officer of DFS but
does not prohibit impersonation of other investigators or personnel of DFS.

120 S. 633.102(9), F.S.
121 Department of Financial Services, supra note 32.
122 S. 648.30(1), F.S.
123 S. 648.30(2) and (3), F.S.
124 S. 648.30(4), F.S.
125 S. 843.08, F.S.
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Effect of the Bill

The bill removes the provision related to personating a fire or arson investigator of DFS and adds the
criminalization of falsely assuming or pretending to be any personnel or representative of the Division
of Investigative and Forensic Services (DIFS). This change creates a felony to impersonate any DIFS
personnel or representative.

B. SECTION DIRECTORY:

Section 1: Amends s. 20.121, F.S., relating to The Department of Financial Services.

Section 2: Amends s. 284.30, F.S., relating to State Risk Management Trust Fund; coverages to be
provided.

Section 3: Amends s. 284.31, F.S., relating to scope and types of coverage; separate accounts.

Section 4: Amends s. 284.385, F.S., relating to reporting and handling of claims.

Section 5: Creates s. 284.45, F.S., relating to sexual harassment victims.

Section 6: Amends s. 497.101, F.S., relating to Board of Funeral, Cemetery, and Consumer Services;
membership; appointment; terms.

Section 7: Creates s. 497.1411, F.S., relating to disqualification of applicants and licensees; penalties
against licensees; rulemaking.

Section 8: Amends s. 497.142, F.S., relating to licensing; fingerprinting and criminal background
checks.

Section 9: Amends s. 497.157, F.S., relating to unlicensed practice; remedies concerning violations by
unlicensed persons.

Section 10: Amends s. 497.159, F.S., relating to crimes.

Section 11: Amends s. 552.081, F.S., relating to definitions.

Section 12: Amends s. 553.7921, F.S., relating to fire alarm permit application to local enforcement
agency.

Section 13: Amends s. 626.2815, F.S., relating to continuing education requirements.

Section 14: Amends s. 626.371, F.S., relating to payment of fees, taxes for appointment period without
appointment.

Section 15: Amends s. 626.8443, F.S., relating to duration of suspension or revocation.

Section 16: Amends s. 626.916, F.S., relating to eligibility for export.

Section 17: Amends s. 626.9551, F.S., relating to favored agent or insurer; coercion of debtors.

Section 18: Amends s. 627.715, F.S., relating to flood insurance.

Section 19: Amends s. 633.102, F.S., relating to definitions.

Section 20: Amends s. 633.136, F.S., relating to the fire and emergency incident information reporting
program; duties; fire reports.
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Section 21: Amends s. 633.202, F.S., relating to the Florida Fire Prevention Code..

Section 22: Creates 633.217, F.S., relating to influencing a firesafety inspector; prohibited acts.

Section 23: Amends s. 633.402, F.S., relating to the Firefighters Employment, Standards, and Training
Council; organization; meetings; quorum; compensation; seal; special powers; firefighter
training.

Section 24: Amends s. 633.416, F.S., relating to firefighter employment and volunteer firefighter
service; saving clause.

Section 25: Amends s. 648.30, F.S., relating to licensure and appointment required.

Section 26: Amends s. 843.08, F.S., relating to false personation.

Section 27: Amends s. 943.045, F.S., relating to definitions, ss. 943.045-943.08.

Section 28: Reenacts s. 497.141(5)(a), F.S., relating to licensing; general application procedures.

Section 29: Provides an effective date of July 1, 2021, except as otherwise provided.

II. FISCAL ANALYSIS & ECONOMIC IMPACT STATEMENT

A. FISCAL IMPACT ON STATE GOVERNMENT:

1. Revenues:
None.

2. Expenditures:
The bill may increase state government expenditures by an indeterminable amount.

B. FISCAL IMPACT ON LOCAL GOVERNMENTS:

1. Revenues:
None.

2. Expenditures:
None.

C. DIRECT ECONOMIC IMPACT ON PRIVATE SECTOR:
The bill may have a positive, but indeterminable, fiscal impact on the private sector.

D. FISCAL COMMENTS:
None.

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III. 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 Board of Funeral, Cemetery, and Consumer Services is directed to adopt rules to:
 Administer s. 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:
The bill amends provisions related to the effect of criminal history on license applications and renewals.
However, the restrictions that the bill implements are not specific to or directly related to the duties and
responsibilities of the various license types. The sponsor has indicated an intent to address this issue.

The bill attempts to reduce quorum requirements for the Board of Funeral, Cemetery, and Consumer
Services. However, as amended, the new minimum requirement needed for quorum could be
insufficient for fair and adequate Board representation. The sponsor has indicated an intent to address
this issue.

IV. AMENDMENTS/ COMMITTEE SUBSTITUTE CHANGES

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

HB 1209 2021

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. 284.30, F.S.; requiring the State Risk
6 Management Trust Fund to provide insurance for certain
7 firefighter cancer-related benefits; making technical
8 changes; amending s. 284.31, F.S.; requiring the
9 Insurance Risk Management Trust Fund to provide a
10 separate account for certain firefighter cancer-
11 related benefits; making technical changes; amending
12 s. 284.385, F.S.; specifying a condition that must be
13 met before certain firefighter cancer-related benefits
14 may be paid from the State Risk Management Trust Fund;
15 making technical changes; creating s. 284.45, F.S.;
16 prohibiting individuals working for entities covered
17 by the State Risk Management Trust Fund from engaging
18 in retaliatory conduct against sexual harassment
19 victims; defining the term "sexual harassment victim";
20 specifying a criminal penalty for the willful and
21 knowing dissemination of a sexual harassment victim's
22 personal identifying information, except under certain
23 circumstances; specifying protected personal
24 identifying information; amending s. 497.101, F.S.;
25 revising provisions relating to membership of the

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26 Board of Funeral, Cemetery, and Consumer Services
27 within the Department of Financial Services;
28 authorizing use of communications media technology for
29 board member participation and determination of a
30 quorum of the board; defining the term "communications
31 media technology"; deleting a requirement for the
32 department to adopt certain rules; making technical
33 changes; creating s. 497.1411, F.S.; defining terms;
34 providing for permanent disqualification of applicants
35 for licensure under ch. 497, F.S., for certain
36 offenses; providing for disqualifying periods for
37 applicants for certain offenses; requiring the board
38 to adopt rules; providing for calculation of
39 disqualifying periods; providing conditions for
40 licensure after completion of a disqualifying period;
41 specifying the effect of a pardon or restoration of
42 civil rights; providing for exemptions from
43 disqualification if certain conditions are met;
44 requiring an applicant for an exemption to provide
45 certain evidence that he or she will not present a
46 danger if licensed; granting the board the discretion
47 to approve or deny an exemption; providing
48 applicability; providing construction; amending s.
49 497.142, F.S.; revising criminal history disclosure
50 requirements for applicants seeking licensure under

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51 ch. 497, F.S.; amending s. 497.157, F.S.; prohibiting
52 persons from acting as or advertising themselves as
53 being funeral directors, embalmers, direct disposers,
54 or preneed sales agents unless they are so licensed;
55 prohibiting persons from engaging in certain
56 activities requiring licensure without holding
57 required licenses; revising the criminal penalty for
58 unlicensed activity; making technical changes;
59 amending s. 497.159, F.S.; conforming a provision to
60 changes made by the act; amending s. 552.081, F.S.;
61 revising the definition of the term "two-component
62 explosives" for the purpose of regulation by the
63 Division of State Fire Marshal; amending s. 553.7921,
64 F.S.; authorizing a contractor repairing certain
65 existing fire alarm systems to begin work after filing
66 an application for a required permit but before
67 receiving the permit; providing construction; amending
68 s. 626.2815, F.S.; revising continuing education
69 requirements for certain persons licensed to solicit,
70 sell, or adjust insurance; amending s. 626.371, F.S.;
71 requiring submission of renewal appointments of
72 certain insurance representatives within a certain
73 timeframe; requiring the department to notify certain
74 insurers or employers regarding inadvertent failures
75 to appoint; requiring insurers and employers to pay

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76 certain fees and taxes within a certain timeframe;
77 authorizing the department to issue appointments under
78 certain circumstances; prohibiting the department from
79 considering inadvertent failures to appoint to be
80 violations under certain circumstances; requiring the
81 department to suspend an insurer's or employer's
82 authority to appoint licensees under certain
83 circumstances; amending s. 626.8443, F.S.; increasing
84 the maximum period of suspension of a title insurance
85 agent's or agency's license; making technical changes;
86 amending s. 626.916, F.S.; deleting a requirement for
87 agents to advise insureds that certain coverage may be
88 available for personal residential property risks to
89 be eligible for export under the Surplus Lines Law;
90 amending s. 626.9551, F.S.; prohibiting requirements
91 for the provision of replacement cost estimators or
92 certain other proprietary business information under
93 certain circumstances; amending s. 627.715, F.S.;
94 providing an exemption from a diligent effort
95 requirement for surplus lines agents exporting
96 contracts or endorsements providing flood coverage;
97 amending s. 633.102, F.S.; revising the authority of
98 certain fire protection system contractors to design
99 or alter certain fire protection systems; providing
100 for resolution of conflicts between the Florida

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101 Building Code and the Florida Fire Prevention Code;
102 amending s. 633.136, F.S.; replacing fire protection
103 agencies in the Fire and Emergency Incident
104 Information Reporting Program with fire service
105 providers; revising the composition of the Fire and
106 Emergency Incident Information System Technical
107 Advisory Panel; defining the term "fire service
108 provider"; amending s. 633.202, F.S.; extending a
109 deadline for certain buildings to comply with a
110 minimum radio signal strength requirement under the
111 Florida Fire Prevention Code; requiring such buildings
112 to meet certain conditions by a specified date;
113 revising a condition that existing apartment buildings
114 must meet by a specified date; making technical
115 changes; creating s. 633.217, F.S.; prohibiting
116 certain acts to influence a firesafety inspector to
117 violate certain laws; prohibiting a firesafety
118 inspector from knowingly and willfully accepting an
119 attempt to influence him or her to violate certain
120 laws; amending s. 633.402, F.S.; revising the
121 composition of the Firefighters Employment, Standards,
122 and Training Council; amending s. 633.416, F.S.;
123 providing that certain persons serving as volunteer
124 firefighters may serve as a regular or permanent
125 firefighter for a limited period, subject to certain

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126 restrictions; amending s. 648.30, F.S.; prohibiting
127 the aiding or abetting of unlicensed activity of a
128 bail bond agent or temporary bail bond agent;
129 providing criminal penalties; amending s. 843.08,
130 F.S.; prohibiting false personation of personnel or
131 representatives of the Division of Investigative and
132 Forensic Services; amending s. 943.045, F.S.; revising
133 the definition of the term "criminal justice agency"
134 to include the investigations component of the
135 department which investigates certain crimes;
136 reenacting s. 497.141(5)(a), F.S., relating to
137 licensing and general application procedures, to
138 incorporate the amendment made to s. 497.142, F.S., in
139 a reference thereto; providing effective dates.
140
141 Be It Enacted by the Legislature of the State of Florida:
142
143 Section 1. Paragraph (f) of subsection (2) of section
144 20.121, Florida Statutes, is amended to read:
145 20.121 Department of Financial Services.—There is created
146 a Department of Financial Services.
147 (2) DIVISIONS.—The Department of Financial Services shall
148 consist of the following divisions and office:
149 (f) The Division of Public Assistance Fraud, which shall
150 function as a criminal justice agency for purposes of ss.

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151 943.045-943.08. The division shall conduct investigations
152 pursuant to s. 414.411 within or outside of this state as it
153 deems necessary. If, during an investigation, the division has
154 reason to believe that any criminal law of this state has or may
155 have been violated, it shall refer any records supporting such
156 violation to state or federal law enforcement or prosecutorial
157 agencies and shall provide investigative assistance to those
158 agencies as required.
159 Section 2. Section 284.30, Florida Statutes, is amended to
160 read:
161 284.30 State Risk Management Trust Fund; coverages to be
162 provided.—A state self-insurance fund, designated as the "State
163 Risk Management Trust Fund," is created to be set up by the
164 Department of Financial Services and administered with a program
165 of risk management, which fund is to provide insurance, as
166 authorized by s. 284.33, for workers' compensation, general
167 liability, fleet automotive liability, federal civil rights
168 actions under 42 U.S.C. s. 1983 or similar federal statutes,
169 benefits payable under s. 112.1816(2), and court-awarded
170 attorney attorney's fees in other proceedings against the state
171 except for such awards in eminent domain or for inverse
172 condemnation or for awards by the Public Employees Relations
173 Commission. A party to a suit in any court, to be entitled to
174 have his or her attorney attorney's fees paid by the state or
175 any of its agencies, must serve a copy of the pleading claiming

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176 the fees on the Department of Financial Services; and thereafter
177 the department shall be entitled to participate with the agency
178 in the defense of the suit and any appeal thereof with respect
179 to such fees.
180 Section 3. Section 284.31, Florida Statutes, is amended to
181 read:
182 284.31 Scope and types of coverages; separate accounts.—
183 The Insurance Risk Management Trust Fund must shall, unless
184 specifically excluded by the Department of Financial Services,
185 cover all departments of the State of Florida and their
186 employees, agents, and volunteers and must shall provide
187 separate accounts for workers' compensation, general liability,
188 fleet automotive liability, federal civil rights actions under
189 42 U.S.C. s. 1983 or similar federal statutes, benefits payable
190 under s. 112.1816(2), and court-awarded attorney attorney's fees
191 in other proceedings against the state except for such awards in
192 eminent domain or for inverse condemnation or for awards by the
193 Public Employees Relations Commission. Unless specifically
194 excluded by the Department of Financial Services, the Insurance
195 Risk Management Trust Fund must shall provide fleet automotive
196 liability coverage to motor vehicles titled to the state, or to
197 any department of the state, when such motor vehicles are used
198 by community transportation coordinators performing, under
199 contract to the appropriate department of the state, services
200 for the transportation disadvantaged under part I of chapter

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201 427. Such fleet automotive liability coverage is shall be
202 primary and is shall be subject to the provisions of s. 768.28
203 and parts II and III of chapter 284, and applicable rules
204 adopted thereunder, and the terms and conditions of the
205 certificate of coverage issued by the Department of Financial
206 Services.
207 Section 4. Section 284.385, Florida Statutes, is amended
208 to read:
209 284.385 Reporting and handling of claims.—
210 (1) All departments covered by the State Risk Management
211 Trust Fund under this part shall immediately report all known or
212 potential claims to the Department of Financial Services for
213 handling, except employment complaints that which have not been
214 filed with the Florida Human Relations Commission, Equal
215 Employment Opportunity Commission, or any similar agency. When
216 deemed necessary, the Department of Financial Services shall
217 assign or reassign the claim to counsel. The assigned counsel
218 shall report regularly to the Department of Financial Services
219 or to the covered department on the status of any such claims or
220 litigation as required by the Department of Financial Services.
221 No Such claims may not claim shall be compromised or settled for
222 monetary compensation without the prior approval of the
223 Department of Financial Services and prior notification to the
224 covered department. All departments shall cooperate with the
225 Department of Financial Services in its handling of claims. The

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226 Department of Financial Services and the Department of
227 Management Services, with the cooperation of the state attorneys
228 and the clerks of the courts, shall develop a system to
229 coordinate the exchange of information concerning claims for and
230 against the state, its agencies, and its subdivisions, to assist
231 in collection of amounts due to them. The covered department is
232 responsible shall have the responsibility for the settlement of
233 any claim for injunctive or affirmative relief under 42 U.S.C.
234 s. 1983 or similar federal or state statutes. The payment of a
235 settlement or judgment for any claim covered and reported under
236 this part may shall be made only from the State Risk Management
237 Trust Fund.
238 (2) Benefits provided under s. 112.1816(2) may not be paid
239 from the fund until each request for any out-of-pocket
240 deductible, copayment, or coinsurance costs and one-time cash
241 payout has been validated and approved by the Department of
242 Management Services.
243 Section 5. Section 284.45, Florida Statutes, is created to
244 read:
245 284.45 Sexual harassment victims.—
246 (1) An individual working for an entity covered by the
247 State Risk Management Trust Fund may not engage in retaliatory
248 conduct of any kind against a sexual harassment victim. As used
249 in this section, the term "sexual harassment victim" means an
250 individual employed, or being considered for employment, with an

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251 entity participating in the State Risk Management Trust Fund who
252 becomes a victim of workplace sexual harassment through the
253 course of employment, or while being considered for employment,
254 with the entity.
255 (2) The willful and knowing dissemination of personal
256 identifying information of a sexual harassment victim, which is
257 confidential and exempt pursuant to s. 119.071(2)(n), to any
258 party other than a governmental entity in furtherance of its
259 official duties or pursuant to a court order is a misdemeanor of
260 the first degree, punishable as provided in s. 775.082. For
261 purposes of this subsection, the term "personal identifying
262 information" includes the name of the sexual harassment victim
263 and his or her:
264 (a) Home address;
265 (b) Home phone number;
266 (c) Cellular phone number;
267 (d) E-mail address;
268 (e) Social media account username or uniform resource
269 locator (URL); or
270 (f) Any other information that could reasonably be used to
271 identify an alleged sexual harassment victim.
272 Section 6. Subsections (1), (2), (3), (6), and (8) of
273 section 497.101, Florida Statutes, are amended to read:
274 497.101 Board of Funeral, Cemetery, and Consumer Services;
275 membership; appointment; terms.—

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276 (1) The Board of Funeral, Cemetery, and Consumer Services
277 is created within the Department of Financial Services and shall
278 consist of 10 members, 9 of whom shall be appointed by the
279 Governor from nominations made by the Chief Financial Officer
280 and confirmed by the Senate. The Chief Financial Officer shall
281 nominate one to three persons for each of the nine vacancies on
282 the board, and the Governor shall fill each vacancy on the board
283 by appointing one of the three persons nominated by the Chief
284 Financial Officer to fill that vacancy. If the Governor objects
285 to each of the three nominations for a vacancy, she or he shall
286 inform the Chief Financial Officer in writing. Upon notification
287 of an objection by the Governor, the Chief Financial Officer
288 shall submit one to three additional nominations for that
289 vacancy until the vacancy is filled. One member must be the
290 State Health Officer or her or his designee.
291 (2) Two members of the board must shall be funeral
292 directors licensed under part III of this chapter who are
293 associated with a funeral establishment. One member of the board
294 must shall be a funeral director licensed under part III of this
295 chapter who is associated with a funeral establishment licensed
296 under part III of this chapter which that has a valid preneed
297 license issued pursuant to this chapter and who owns or operates
298 a cinerator facility approved under chapter 403 and licensed
299 under part VI of this chapter. Two members of the board must
300 shall be persons whose primary occupation is associated with a

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301 cemetery company licensed pursuant to this chapter. Two Three
302 members of the board must shall be consumers who are residents
303 of this the state, have never been licensed as funeral directors
304 or embalmers, are not connected with a cemetery or cemetery
305 company licensed pursuant to this chapter, and are not connected
306 with the death care industry or the practice of embalming,
307 funeral directing, or direct disposition. One of the two
308 consumer members must shall be at least 60 years of age, and one
309 shall be licensed as a certified public accountant under chapter
310 473. One member of the board must be a consumer who is a
311 resident of this state; is licensed as a certified public
312 accountant under chapter 473; has never been licensed as a
313 funeral director or an embalmer; is not a principal or an
314 employee of any licensee licensed under this chapter; and does
315 not otherwise have control, as defined in s. 497.005, over any
316 licensee licensed under this chapter. One member of the board
317 must shall be a principal of a monument establishment licensed
318 under this chapter as a monument builder. One member must shall
319 be the State Health Officer or her or his designee. There may
320 shall not be two or more board members who are principals or
321 employees of the same company or partnership or group of
322 companies or partnerships under common control.
323 (3) Board members shall be appointed for terms of 4 years,
324 and the State Health Officer shall serve as long as that person
325 holds that office. The designee of the State Health Officer

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326 shall serve at the pleasure of the Governor. When the terms of
327 the initial board members expire, the Chief Financial Officer
328 shall stagger the terms of the successor members as follows: one
329 funeral director, one cemetery representative, the monument
330 builder, and one consumer member shall be appointed for terms of
331 2 years, and the remaining members shall be appointed for terms
332 of 4 years. All subsequent terms shall be for 4 years.
333 (6) The board shall maintain its headquarters and records
334 of the board shall be in the Division of Funeral, Cemetery, and
335 Consumer Services of the Department of Financial Services in the
336 City of Tallahassee. The board may be contacted through the
337 Division of Funeral, Cemetery, and Consumer Services of the
338 Department of Financial Services in the City of Tallahassee. The
339 Chief Financial Officer shall annually appoint from among the
340 board members a chair and vice chair of the board. The board
341 shall meet at least every 6 months, and more often as necessary.
342 Special meetings of the board shall be convened upon the
343 direction of the Chief Financial Officer. A quorum is necessary
344 for the conduct of business by the board. The participation by a
345 board member in a meeting conducted through communications media
346 technology constitutes that individual's presence at such
347 meeting. Board members appearing at a board meeting in person as
348 well as board members appearing through the use of
349 communications media technology shall be counted for the
350 determination of a quorum. As used in this subsection,

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351 "communications media technology" means the electronic
352 transmission of printed matter, audio, full-motion video,
353 freeze-frame video, compressed video, and digital video by any
354 method available. Unless otherwise provided by law, a majority
355 of the board members eligible to vote constitutes a quorum for
356 the purpose of conducting its business six board members shall
357 constitute a quorum for the conduct of the board's business.
358 (8) The department shall adopt rules establishing forms by
359 which persons may apply for membership on the board and
360 procedures for applying for such membership. Such forms shall
361 require disclosure of the existence and nature of all current
362 and past employments by or contracts with, and direct or
363 indirect affiliations or interests in, any entity or business
364 that at any time was licensed by the board or by the former
365 Board of Funeral and Cemetery Services or the former Board of
366 Funeral Directors and Embalmers or that is or was otherwise
367 involved in the death care industry, as specified by department
368 rule.
369 Section 7. Section 497.1411, Florida Statutes, is created
370 to read:
371 497.1411 Disqualification of applicants and licensees;
372 penalties against licensees; rulemaking.—
373 (1) For purposes of this section, the term:
374 (a) "Applicant" means an individual applying for licensure
375 or relicensure under this chapter, or an officer, a director, a

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376 majority owner, a partner, a manager, or another person who
377 manages or controls an entity applying for licensure or
378 relicensure under this chapter.
379 (b) "Felony of the first degree" or "capital felony"
380 includes all felonies designated as such in this state at the
381 time of the commission of the offense, as well as any offense in
382 another jurisdiction which is substantially similar to an
383 offense so designated in this state.
384 (c) "Financial services business" means any financial
385 activity regulated by the department, the Office of Insurance
386 Regulation, or the Office of Financial Regulation.
387 (2) An applicant who has been found guilty of, or has
388 pleaded guilty or nolo contendere to any of the following
389 crimes, regardless of adjudication, is permanently barred from
390 licensure under this chapter:
391 (a) A felony of the first degree.
392 (b) A capital felony.
393 (c) A felony money laundering offense.
394 (d) A felony embezzlement.
395 (3) An applicant who has been found guilty of, or has
396 pleaded guilty or nolo contendere to a crime not included in
397 subsection (2), regardless of adjudication, is subject to:
398 (a) A 10-year disqualifying period for all felonies
399 involving moral turpitude which are not specifically included in
400 the permanent bar from licensure contained in subsection (2).

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401 (b) A 5-year disqualifying period for all felonies to
402 which neither the permanent bar from licensure in subsection (2)
403 nor the 10-year disqualifying period in paragraph (a) applies.
404 (c) A 5-year disqualifying period for all misdemeanors
405 directly related to the financial services business.
406 (4) The board shall adopt rules to administer this
407 section. The rules must provide for additional disqualifying
408 periods due to the commitment of multiple crimes and may include
409 other factors reasonably related to the applicant's criminal
410 history. The rules must provide for mitigating and aggravating
411 factors. However, mitigation may not result in a period of
412 disqualification of less than 5 years and may not mitigate the
413 disqualifying periods in paragraphs (3)(b) and (c).
414 (5) For purposes of this section, a disqualifying period
415 begins upon the applicant's final release from supervision or
416 upon completion of the applicant's criminal sentence. The
417 department may not issue a license to an applicant unless all
418 related fines, court costs and fees, and court-ordered
419 restitution have been paid.
420 (6) After the disqualifying period has expired, the burden
421 is on the applicant to demonstrate that he or she has been
422 rehabilitated, does not pose a risk to the public, is fit and
423 trustworthy to engage in business regulated by this chapter, and
424 is otherwise qualified for licensure.
425 (7) Notwithstanding subsections (2) and (3), an applicant

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426 who has been found guilty of, or has pleaded guilty or nolo
427 contendere to, a crime in subsection (2) or subsection (3) and
428 who has subsequently been granted a pardon or the restoration of
429 civil rights pursuant to chapter 940 and s. 8, Art. IV of the
430 State Constitution, or a pardon or the restoration of civil
431 rights under the laws of another jurisdiction with respect to a
432 conviction in that jurisdiction, is not barred or disqualified
433 from licensure under this chapter. However, such a pardon or
434 restoration of civil rights does not require the department to
435 award such license.
436 (8)(a) The board may grant an exemption from
437 disqualification to any person disqualified from licensure under
438 subsection (3) if:
439 1. The applicant has paid in full any fee, fine, fund,
440 lien, civil judgment, restitution, or cost of prosecution
441 imposed by the court as part of the judgment and sentence for
442 any disqualifying offense; and
443 2. At least 5 years have elapsed since the applicant
444 completed or has been lawfully released from confinement,
445 supervision, or a nonmonetary condition imposed by the court for
446 a disqualifying offense.
447 (b) For the board to grant an exemption under this
448 subsection, the applicant must clearly and convincingly
449 demonstrate that he or she would not pose a risk to persons or
450 property if licensed under this chapter, evidence of which must

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451 include, but need not be limited to, facts and circumstances
452 surrounding the disqualifying offense, the time that has elapsed
453 since the offense, the nature of the offense and harm caused to
454 the victim, the applicant's history before and after the
455 offense, and any other evidence or circumstances indicating that
456 the applicant will not present a danger if licensed or
457 certified.
458 (c) The board has discretion whether to grant or deny an
459 exemption under this subsection. The board's decision is subject
460 to chapter 120.
461 (9) The disqualification periods provided in this section
462 do not apply to the renewal of a license or to a new application
463 for licensure if the applicant has an active license as of July
464 1, 2021, and the applicable criminal history was considered by
465 the board on the prior approval of any active license held by
466 the applicant. This subsection does not affect any criminal
467 history disclosure requirements of this chapter.
468 Section 8. Subsection (9) and paragraph (c) of subsection
469 (10) of section 497.142, Florida Statutes, are amended to read:
470 497.142 Licensing; fingerprinting and criminal background
471 checks.—
472 (9) If any applicant under this chapter has been, within
473 the 10 years preceding the application under this chapter,
474 convicted or found guilty of, or entered a plea of nolo
475 contendere to, regardless of adjudication, any crime in any

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476 jurisdiction, the application shall not be deemed complete until
477 such time as the applicant provides such certified true copies
478 of the court records evidencing the conviction, finding, or plea
479 as required by this section or, as the licensing authority may
480 by rule require.
481 (10)
482 (c) Crimes to be disclosed are:
483 1. Any felony or misdemeanor, no matter when committed,
484 that was directly or indirectly related to or involving any
485 aspect of the practice or business of funeral directing,
486 embalming, direct disposition, cremation, funeral or cemetery
487 preneed sales, funeral establishment operations, cemetery
488 operations, or cemetery monument or marker sales or
489 installation.
490 2. Any misdemeanor, no matter when committed, which was
491 directly or indirectly related to the financial services
492 business as defined in s. 497.1411 Any other felony not already
493 disclosed under subparagraph 1. that was committed within the 20
494 years immediately preceding the application under this chapter.
495 3. Any other misdemeanor not already disclosed under
496 subparagraph 2. which subparagraph 1. that was committed within
497 the 5 years immediately preceding the application under this
498 chapter.
499 Section 9. Subsections (2) through (5) of section 497.157,
500 Florida Statutes, are redesignated as subsections (4) through

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501 (7), respectively, new subsections (2) and (3) and subsection
502 (8) are added to that section, and present subsection (3) of
503 that section is amended, to read:
504 497.157 Unlicensed practice; remedies concerning
505 violations by unlicensed persons.—
506 (2) A person may not be, act as, or advertise or hold
507 himself or herself out to be a funeral director, an embalmer, or
508 a direct disposer unless he or she is currently licensed by the
509 department.
510 (3) A person may not be, act as, or advertise or hold
511 himself or herself out to be a preneed sales agent unless he or
512 she is currently licensed by the department and appointed by a
513 preneed main licensee for which he or she is executing preneed
514 contracts.
515 (5)(3) Where the department determines that an emergency
516 exists regarding any violation of this chapter by any unlicensed
517 person or entity, the department may issue and serve an
518 immediate final order upon such unlicensed person or entity, in
519 accordance with s. 120.569(2)(n). Such an immediate final order
520 may impose such prohibitions and requirements as are reasonably
521 necessary to protect the public health, safety, and welfare, and
522 is shall be effective when served.
523 (a) For the purpose of enforcing such an immediate final
524 order, the department may file an emergency or other proceeding
525 in the circuit courts of the state seeking enforcement of the

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526 immediate final order by injunctive or other order of the court.
527 The court shall issue its injunction or other order enforcing
528 the immediate final order pending administrative resolution of
529 the matter under subsection (4) (2), unless the court determines
530 that such action would work a manifest injustice under the
531 circumstances. Venue for judicial actions under this paragraph
532 must shall be, at the election of the department, in the courts
533 of Leon County, or in a county where the respondent resides or
534 has a place of business.
535 (b) After serving an immediate final order to cease and
536 desist upon any person or entity, the department shall within 10
537 days issue and serve upon the same person or entity an
538 administrative complaint as set forth in subsection (4) (2),
539 except that, absent order of a court to the contrary, the
540 immediate final order will shall be effective throughout the
541 pendency of proceedings under subsection (4) (2).
542 (8) Any person who is not licensed under this chapter and
543 who engages in activity requiring licensure under this chapter
544 commits a felony of the third degree, punishable as provided in
545 s. 775.082, s. 775.083, or s. 775.084.
546 Section 10. Subsection (6) of section 497.159, Florida
547 Statutes, is amended to read:
548 497.159 Crimes.—
549 (6) Any person who is not licensed under this chapter who
550 engages in activity requiring licensure under this chapter,

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551 commits a misdemeanor of the second degree, punishable as
552 provided in s. 775.082 or s. 775.083.
553 Section 11. Subsection (13) of section 552.081, Florida
554 Statutes, is amended to read:
555 552.081 Definitions.—As used in this chapter:
556 (13) "Two-component explosives" means any two inert
557 components that which, when mixed, become capable of detonation
558 by a detonator a No. 6 blasting cap, and shall be classified as
559 a Class "A" explosive when so mixed.
560 Section 12. Subsection (2) of section 553.7921, Florida
561 Statutes, is redesignated as subsection (3), a new subsection
562 (2) is added to that section, and subsection (1) of that section
563 is amended, to read:
564 553.7921 Fire alarm permit application to local
565 enforcement agency.—
566 (1) A contractor must file a Uniform Fire Alarm Permit
567 Application as provided in subsection (3) (2) with the local
568 enforcement agency and must receive the fire alarm permit
569 before:
570 (a) installing or replacing a fire alarm, if the local
571 enforcement agency requires a plan review for the installation
572 or replacement; or
573 (b) Repairing an existing alarm system that was previously
574 permitted by the local enforcement agency if the local
575 enforcement agency requires a fire alarm permit for the repair.

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576 (2) If the local enforcement agency requires a fire alarm
577 permit to repair an existing alarm system that was previously
578 permitted by the local enforcement agency, a contractor may
579 begin work after filing a Uniform Fire Alarm Permit Application
580 as provided in subsection (3). A fire alarm repaired pursuant to
581 this subsection may not be considered compliant until the
582 required permit is issued and the local enforcement agency
583 approves the repair.
584 Section 13. Effective January 1, 2022, subsection (3) of
585 section 626.2815, Florida Statutes, is amended to read:
586 626.2815 Continuing education requirements.—
587 (3) Each licensee except a title insurance agent must
588 complete a 4-hour 5-hour update course every 2 years which is
589 specific to the license held by the licensee. The course must be
590 developed and offered by providers and approved by the
591 department. The content of the course must address all lines of
592 insurance for which examination and licensure are required and
593 include the following subject areas: insurance law updates,
594 ethics for insurance professionals, disciplinary trends and case
595 studies, industry trends, premium discounts, determining
596 suitability of products and services, and other similar
597 insurance-related topics the department determines are relevant
598 to legally and ethically carrying out the responsibilities of
599 the license granted. A licensee who holds multiple insurance
600 licenses must complete an update course that is specific to at

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601 least one of the licenses held. Except as otherwise specified,
602 any remaining required hours of continuing education are
603 elective and may consist of any continuing education course
604 approved by the department under this section.
605 (a) Except as provided in paragraphs (b), (c), (d), (e),
606 (i), and (j), each licensee must also complete 20 19 hours of
607 elective continuing education courses every 2 years.
608 (b) A licensee who has been licensed for 6 or more years
609 must also complete a minimum of 16 15 hours of elective
610 continuing education every 2 years.
611 (c) A licensee who has been licensed for 25 years or more
612 and is a CLU or a CPCU or has a Bachelor of Science degree in
613 risk management or insurance with evidence of 18 or more
614 semester hours in insurance-related courses must also complete a
615 minimum of 6 5 hours of elective continuing education courses
616 every 2 years.
617 (d) An individual who holds a license as a customer
618 representative and who is not a licensed life or health agent
619 must also complete a minimum of 6 5 hours of continuing
620 education courses every 2 years.
621 (e) An individual subject to chapter 648 must complete the
622 4-hour 5-hour update course and a minimum of 10 9 hours of
623 elective continuing education courses every 2 years.
624 (f) Elective continuing education courses for public
625 adjusters must be specifically designed for public adjusters and

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626 approved by the department. Notwithstanding this subsection,
627 public adjusters for workers' compensation insurance or health
628 insurance are not required to take continuing education courses
629 pursuant to this section.
630 (g) Excess hours accumulated during any 2-year compliance
631 period may be carried forward to the next compliance period.
632 (h) An individual teaching an approved course of
633 instruction or lecturing at any approved seminar and attending
634 the entire course or seminar qualifies for the same number of
635 classroom hours as would be granted to a person taking and
636 successfully completing such course or seminar. Credit is
637 limited to the number of hours actually taught unless a person
638 attends the entire course or seminar. An individual who is an
639 official of or employed by a governmental entity in this state
640 and serves as a professor, instructor, or in another position or
641 office, the duties and responsibilities of which are determined
642 by the department to require monitoring and review of insurance
643 laws or insurance regulations and practices, is exempt from this
644 section.
645 (i) For compliance periods beginning on or after October
646 1, 2014, any person who holds a license as a title insurance
647 agent must complete a minimum of 10 hours of continuing
648 education credit every 2 years in title insurance and escrow
649 management specific to this state and approved by the
650 department, which must shall include at least 3 hours of

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651 continuing education on the subject matter of ethics, rules, or
652 compliance with state and federal regulations relating
653 specifically to title insurance and closing services.
654 (j) For a licensee who is an active participant in an
655 association, 2 hours of elective continuing education credit per
656 calendar year may be approved by the department, if properly
657 reported by the association.
658 Section 14. Subsections (1) and (2) of section 626.371,
659 Florida Statutes, are amended to read:
660 626.371 Payment of fees, taxes for appointment period
661 without appointment.—
662 (1) All initial and renewal appointments shall be
663 submitted to the department on a monthly basis no later than 45
664 days after the date of appointment and become effective on the
665 date requested on the appointment form.
666 (2)(a) If, upon application and qualification for an
667 initial or renewal appointment and such investigation as the
668 department may make, it appears to the department determines
669 that an individual has not been properly appointed to represent
670 an insurer or employer, that such individual who was formerly
671 licensed or is currently licensed, but not properly appointed to
672 represent an insurer or employer and that such individual who
673 has been actively engaged or is currently actively engaged as
674 such an appointee, but without being appointed as required, the
675 department shall may, if it finds that such failure to be

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676 appointed was an inadvertent error on the part of the insurer or
677 employer so represented, notify the insurer or employer of its
678 finding and of the requirement to pay all fees and taxes due
679 pursuant to paragraph (b) within 21 days.
680 (b) The department may nevertheless issue or authorize the
681 issuance of the appointment upon the insurer's or employer's
682 timely payment to the department of as applied for but subject
683 to the condition that, before the appointment is issued, all
684 fees and taxes that which would have been due had the applicant
685 been properly so appointed during such current and prior
686 periods, including with applicable fees that would have been due
687 pursuant to s. 624.501 for such current and prior periods of
688 appointment, shall be paid to the department.
689 (c) Upon proper appointment of the individual and payment
690 of all fees and taxes due pursuant to paragraph (b), paragraph
691 (3)(a), and s. 624.501 by the insurer or employer, the
692 department may no longer consider the inadvertent failure to
693 appoint to be a violation of this code.
694 (d) If the insurer or employer does not pay the fees and
695 taxes due pursuant to paragraph (b) within 21 days after notice
696 by the department, the department shall suspend the insurer's or
697 employer's authority to appoint licensees until all outstanding
698 fees have been paid.
699 Section 15. Subsection (1) of section 626.8443, Florida
700 Statutes, is amended to read:

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701 626.8443 Duration of suspension or revocation.—
702 (1) The department shall, in its order suspending a title
703 insurance agent's or agency's license or appointment or in its
704 order suspending the eligibility of a person to hold or apply
705 for such license or appointment, specify the period during which
706 the suspension is to be in effect, but such period may shall not
707 exceed 2 years 1 year. The license, or appointment, or
708 eligibility will shall remain suspended during the period so
709 specified, subject, however, to any rescission or modification
710 of the order by the department, or modification or reversal
711 thereof by the court, prior to expiration of the suspension
712 period. A license, appointment, or eligibility that which has
713 been suspended may not be reinstated except upon request for
714 such reinstatement, but the department may shall not grant such
715 reinstatement if it finds that the circumstance or circumstances
716 for which the license, appointment, and eligibility was
717 suspended still exist or are likely to recur.
718 Section 16. Paragraph (e) of subsection (1) of section
719 626.916, Florida Statutes, is amended to read:
720 626.916 Eligibility for export.—
721 (1) No insurance coverage shall be eligible for export
722 unless it meets all of the following conditions:
723 (e) For personal residential property risks, the retail or
724 producing agent must advise the insured in writing that coverage
725 may be available and may be less expensive from Citizens

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726 Property Insurance Corporation. The notice must include other
727 information that states that assessments by Citizens Property
728 Insurance Corporation are higher and the coverage provided by
729 Citizens Property Insurance Corporation may be less than the
730 property's existing coverage. If the notice is signed by the
731 insured, it is presumed that the insured has been informed and
732 knows that policies from Citizens Property Insurance Corporation
733 may be less expensive, may provide less coverage, and will be
734 accompanied by higher assessments.
735 Section 17. Paragraph (e) is added to subsection (1) of
736 section 626.9551, Florida Statutes, to read:
737 626.9551 Favored agent or insurer; coercion of debtors.—
738 (1) No person may:
739 (e) Require, directly or indirectly, the provision of, and
740 an insurance agent or a broker may not provide, directly or
741 indirectly, as a condition precedent or condition subsequent to
742 the lending of money or extension of credit to be secured by
743 real property, the replacement cost estimator or other
744 underwriting information that is proprietary business
745 information, as defined in s. 624.4212(1), to the insurer
746 underwriting the insurance policy covering such property.
747 Section 18. Subsections (4) through (10) of section
748 627.715, Florida Statutes, are redesignated as subsections (5)
749 through (11), respectively, and a new subsection (4) is added to
750 that section, to read:

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751 627.715 Flood insurance.—An authorized insurer may issue
752 an insurance policy, contract, or endorsement providing personal
753 lines residential coverage for the peril of flood or excess
754 coverage for the peril of flood on any structure or the contents
755 of personal property contained therein, subject to this section.
756 This section does not apply to commercial lines residential or
757 commercial lines nonresidential coverage for the peril of flood.
758 An insurer may issue flood insurance policies, contracts,
759 endorsements, or excess coverage on a standard, preferred,
760 customized, flexible, or supplemental basis.
761 (4) An agent may export a contract or an endorsement
762 providing flood coverage to an eligible surplus lines insurer
763 without making a diligent effort to seek such coverage from
764 three or more authorized insurers under s. 626.916(1)(a).
765 Section 19. Subsection (3) of section 633.102, Florida
766 Statutes, is amended to read:
767 633.102 Definitions.—As used in this chapter, the term:
768 (3)(a) "Contractor I" means a contractor whose business
769 includes the execution of contracts requiring the ability to lay
770 out, fabricate, install, inspect, alter, repair, and service all
771 types of fire protection systems, excluding preengineered
772 systems.
773 (b) "Contractor II" means a contractor whose business is
774 limited to the execution of contracts requiring the ability to
775 lay out, fabricate, install, inspect, alter, repair, and service

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776 water sprinkler systems, water spray systems, foam-water
777 sprinkler systems, foam-water spray systems, standpipes,
778 combination standpipes and sprinkler risers, all piping that is
779 an integral part of the system beginning at the point of service
780 as defined in this section, sprinkler tank heaters, air lines,
781 thermal systems used in connection with sprinklers, and tanks
782 and pumps connected thereto, excluding preengineered systems.
783 (c) "Contractor III" means a contractor whose business is
784 limited to the execution of contracts requiring the ability to
785 fabricate, install, inspect, alter, repair, and service carbon
786 dioxide systems, foam extinguishing systems, dry chemical
787 systems, and Halon and other chemical systems, excluding
788 preengineered systems.
789 (d) "Contractor IV" means a contractor whose business is
790 limited to the execution of contracts requiring the ability to
791 lay out, fabricate, install, inspect, alter, repair, and service
792 automatic fire sprinkler systems for detached one-family
793 dwellings, detached two-family dwellings, and mobile homes,
794 excluding preengineered systems and excluding single-family
795 homes in cluster units, such as apartments, condominiums, and
796 assisted living facilities or any building that is connected to
797 other dwellings. A Contractor IV is limited to the scope of
798 practice specified in NFPA 13D.
799 (e) "Contractor V" means a contractor whose business is
800 limited to the execution of contracts requiring the ability to

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801 fabricate, install, inspect, alter, repair, and service the
802 underground piping for a fire protection system using water as
803 the extinguishing agent beginning at the point of service as
804 defined in this act and ending no more than 1 foot above the
805 finished floor.
806
807 The definitions in This subsection may not be construed to
808 include engineers or architects within the defined terms and
809 does do not limit or prohibit a licensed fire protection
810 engineer or architect with fire protection design experience
811 from designing any type of fire protection system. A distinction
812 is made between system design concepts prepared by the design
813 professional and system layout as defined in this section and
814 typically prepared by the contractor. However, a person
815 certified as a Contractor I or, Contractor II, or Contractor IV
816 under this chapter may design new fire protection systems of 49
817 or fewer sprinklers;, and may design the alteration of an
818 existing fire sprinkler system if the alteration consists of the
819 relocation, addition, or deletion of not more than 49 or fewer
820 sprinklers, notwithstanding the size of the existing fire
821 sprinkler system; or may design the alteration of an existing
822 fire sprinkler system if the alteration consists of the
823 relocation or deletion of 249 or fewer sprinklers,
824 notwithstanding the size of the existing fire sprinkler system,
825 if there is no change of occupancy, as defined in the Florida

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826 Building Code and the Florida Fire Prevention Code, of the
827 affected areas and there is no change in the water demand as
828 defined in NFPA 13, "Standard for the Installation of Sprinkler
829 Systems," and if the occupancy hazard classification as defined
830 in NFPA 13 is reduced or remains the same as a result of the
831 alteration. Conflicts between the Florida Building Code and the
832 Florida Fire Prevention Code shall be resolved pursuant to s.
833 553.73(1)(d). A person certified as a Contractor I, Contractor
834 II, or Contractor IV may design or alter a fire protection
835 system, the scope of which complies with NFPA 13D, "Standard for
836 the Installation of Sprinkler Systems in One- and Two-Family
837 Dwellings and Manufactured Homes," as adopted by the State Fire
838 Marshal, notwithstanding the number of fire sprinklers.
839 Contractor-developed plans may not be required by any local
840 permitting authority to be sealed by a registered professional
841 engineer.
842 Section 20. Section 633.136, Florida Statutes, is amended
843 to read:
844 633.136 Fire and Emergency Incident Information Reporting
845 Program; duties; fire reports.—
846 (1)(a) The Fire and Emergency Incident Information
847 Reporting Program is created within the division. The program
848 shall:
849 1. Establish and maintain an electronic communication
850 system capable of transmitting fire and emergency incident

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851 information to and between fire service providers protection
852 agencies.
853 2. Initiate a Fire and Emergency Incident Information
854 Reporting System that is shall be responsible for:
855 a. Receiving fire and emergency incident information from
856 fire service providers protection agencies.
857 b. Preparing and disseminating annual reports to the
858 Governor, the President of the Senate, the Speaker of the House
859 of Representatives, fire service providers protection agencies,
860 and, upon request, the public. Each report must shall include,
861 but not be limited to, the information listed in the National
862 Fire Incident Reporting System.
863 c. Upon request, providing other states and federal
864 agencies with fire and emergency incident data of this state.
865 3. Adopt rules to effectively and efficiently implement,
866 administer, manage, maintain, and use the Fire and Emergency
867 Incident Information Reporting Program. The rules shall be
868 considered minimum requirements and may shall not preclude a
869 fire service provider protection agency from implementing its
870 own requirements that which may not conflict with the rules of
871 the division.
872 4. By rule, establish procedures and a format for each
873 fire service provider protection agency to voluntarily monitor
874 its records and submit reports to the program.
875 5. Maintain Establish an electronic information database

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876 that is accessible and searchable by fire service providers
877 protection agencies.
878 (b) The division shall consult with the Florida Forest
879 Service of the Department of Agriculture and Consumer Services
880 and the State Surgeon General of the Department of Health to
881 coordinate data, ensure accuracy of the data, and limit
882 duplication of efforts in data collection, analysis, and
883 reporting.
884 (2) The Fire and Emergency Incident Information System
885 Technical Advisory Panel is created within the division. The
886 panel shall advise, review, and recommend to the State Fire
887 Marshal with respect to the requirements of this section. The
888 membership of the panel consists shall consist of the following
889 15 members:
890 (a) The current 13 members of the Firefighters Employment,
891 Standards, and Training Council as established in s. 633.402.
892 (b) One member from the Florida Forest Service of the
893 Department of Agriculture and Consumer Services, appointed by
894 the director of the Florida Forest Service.
895 (c) One member from the Department of Health, appointed by
896 the State Surgeon General.
897 (3) As used in For the purpose of this section, the term
898 "fire service provider" has the same meaning as in s. 633.102
899 "fire protection agency" shall be defined by rule by the
900 division.

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901 Section 21. Subsection (18) of section 633.202, Florida
902 Statutes, is amended to read:
903 633.202 Florida Fire Prevention Code.—
904 (18) The authority having jurisdiction shall determine the
905 minimum radio signal strength for fire department communications
906 in all new high-rise and existing high-rise buildings. Existing
907 buildings are not required to comply with minimum radio strength
908 for fire department communications and two-way radio system
909 enhancement communications as required by the Florida Fire
910 Prevention Code until January 1, 2023 2022. However, by January
911 1, 2022 December 31, 2019, an existing building that is not in
912 compliance with the requirements for minimum radio strength for
913 fire department communications must have completed a minimum
914 radio strength assessment apply for an appropriate permit for
915 the required installation with the local government agency
916 having jurisdiction and must demonstrate that the building will
917 become compliant by January 1, 2023 2022. Existing apartment
918 buildings are not required to comply until January 1, 2025.
919 However, existing apartment buildings must have completed a
920 minimum radio strength assessment are required to apply for the
921 appropriate permit for the required communications installation
922 by December 31, 2022.
923 Section 22. Section 633.217, Florida Statutes, is created
924 to read:
925 633.217 Influencing a firesafety inspector; prohibited

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926 acts.—
927 (1) A person may not influence a firesafety inspector by:
928 (a) Threatening, coercing, tricking, or attempting to
929 threaten, coerce, or trick the firesafety inspector into
930 violating any provision of the Florida Fire Prevention Code, any
931 rule adopted by the State Fire Marshal, or any provision of this
932 chapter.
933 (b) Offering any compensation to the firesafety inspector
934 to induce a violation of the Florida Fire Prevention Code, any
935 rule adopted by the State Fire Marshal, or any provision of this
936 chapter.
937 (2) A firesafety inspector may not knowingly and willfully
938 accept an attempt by a person to influence the firesafety
939 inspector into violating any provision of the Florida Fire
940 Prevention Code, any rule adopted by the State Fire Marshal, or
941 any provision of this chapter.
942 Section 23. Subsection (1) of section 633.402, Florida
943 Statutes, is amended to read:
944 633.402 Firefighters Employment, Standards, and Training
945 Council; organization; meetings; quorum; compensation; seal;
946 special powers; firefighter training.—
947 (1) There is created within the department a Firefighters
948 Employment, Standards, and Training Council of 15 14 members.
949 (a) The members shall be appointed as follows:
950 1. Two fire chiefs appointed by the Florida Fire Chiefs

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951 Association.
952 2. Two firefighters, who are not officers, appointed by
953 the Florida Professional Firefighters Association.
954 3. Two firefighter officers, who are not fire chiefs,
955 appointed by the State Fire Marshal.
956 4. One individual appointed by the Florida League of
957 Cities.
958 5. One individual appointed by the Florida Association of
959 Counties.
960 6. One individual appointed by the Florida Association of
961 Special Districts.
962 7. One individual appointed by the Florida Fire Marshals'
963 and Inspectors' Association.
964 8. One employee of the Florida Forest Service of the
965 Department of Agriculture and Consumer Services appointed by the
966 director of the Florida Forest Service.
967 9. One individual appointed by the State Fire Marshal.
968 10. One director or instructor of a state-certified
969 firefighting training facility appointed by the State Fire
970 Marshal.
971 11. One individual The remaining member, who shall be
972 appointed by the State Fire Marshal, who may not be a member or
973 representative of the firefighting profession or of any local
974 government.
975 12. One individual from the Department of Health,

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976 appointed by the Surgeon General.
977 (b) To be eligible for appointment as a member under
978 subparagraph (a)1., subparagraph (a)2., subparagraph (a)3.,
979 subparagraph (a)8., or subparagraph (a)10., a person must have
980 had at least 4 years' experience in the firefighting profession.
981 Members shall serve only as long as they continue to meet the
982 criteria under which they were appointed, or unless a member has
983 failed to appear at three consecutive and properly noticed
984 meetings unless excused by the chair.
985 Section 24. Subsection (1) of section 633.416, Florida
986 Statutes, is amended to read:
987 633.416 Firefighter employment and volunteer firefighter
988 service; saving clause.—
989 (1) A fire service provider may not employ an individual
990 to:
991 (a) Extinguish fires for the protection of life or
992 property or to supervise individuals who perform such services
993 unless the individual holds a current and valid Firefighter
994 Certificate of Compliance. However, a person who is currently
995 serving as a volunteer firefighter and holds a volunteer
996 firefighter certificate of completion with a fire service
997 provider, who is then employed as a regular or permanent
998 firefighter by such fire service provider, may function, for a
999 period of 1 year under the direct supervision of an individual
1000 holding a valid Firefighter Certificate of Compliance, in the

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1001 same capacity in which he or she acted as a volunteer
1002 firefighter, provided that he or she has completed all training
1003 required by the volunteer organization. Under no circumstance
1004 can this period extend beyond 1 year either collectively or
1005 consecutively from the start of employment to obtain a
1006 Firefighter Certificate of Compliance; or
1007 (b) Serve as the administrative and command head of a fire
1008 service provider for a period in excess of 1 year unless the
1009 individual holds a current and valid Firefighter Certificate of
1010 Compliance or Special Certificate of Compliance.
1011 Section 25. Section 648.30, Florida Statutes, is amended
1012 to read:
1013 648.30 Licensure and appointment required; prohibited
1014 acts; penalties.—
1015 (1) A person may not act in the capacity of a bail bond
1016 agent or temporary bail bond agent or perform any of the
1017 functions, duties, or powers prescribed for bail bond agents or
1018 temporary bail bond agents under this chapter unless that person
1019 is qualified, licensed, and appointed as provided in this
1020 chapter.
1021 (2) A person may not represent himself or herself to be a
1022 bail enforcement agent, bounty hunter, or other similar title in
1023 this state.
1024 (3) A person, other than a certified law enforcement
1025 officer, may not apprehend, detain, or arrest a principal on a

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1026 bond, wherever issued, unless that person is qualified,
1027 licensed, and appointed as provided in this chapter or licensed
1028 as a bail bond agent or bail bond enforcement agent, or holds an
1029 equivalent license by the state where the bond was written.
1030 (4) Any person who violates this section commits a felony
1031 of the third degree, punishable as provided in s. 775.082, s.
1032 775.083, or s. 775.084.
1033 (5) Any licensee under this chapter who knowingly aids or
1034 abets an unlicensed person in violating this section commits a
1035 felony of the third degree, punishable as provided in s.
1036 775.082, s. 775.083, or s. 775.084.
1037 Section 26. Section 843.08, Florida Statutes, is amended
1038 to read:
1039 843.08 False personation.—A person who falsely assumes or
1040 pretends to be a firefighter, a sheriff, an officer of the
1041 Florida Highway Patrol, an officer of the Fish and Wildlife
1042 Conservation Commission, an officer of the Department of
1043 Environmental Protection, a fire or arson investigator of the
1044 Department of Financial Services, an officer of the Department
1045 of Financial Services, any personnel or representative of the
1046 Division of Investigative and Forensic Services, an officer of
1047 the Department of Corrections, a correctional probation officer,
1048 a deputy sheriff, a state attorney or an assistant state
1049 attorney, a statewide prosecutor or an assistant statewide
1050 prosecutor, a state attorney investigator, a coroner, a police

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1051 officer, a lottery special agent or lottery investigator, a
1052 beverage enforcement agent, a school guardian as described in s.
1053 30.15(1)(k), a security officer licensed under chapter 493, any
1054 member of the Florida Commission on Offender Review or any
1055 administrative aide or supervisor employed by the commission,
1056 any personnel or representative of the Department of Law
1057 Enforcement, or a federal law enforcement officer as defined in
1058 s. 901.1505, and takes upon himself or herself to act as such,
1059 or to require any other person to aid or assist him or her in a
1060 matter pertaining to the duty of any such officer, commits a
1061 felony of the third degree, punishable as provided in s.
1062 775.082, s. 775.083, or s. 775.084. However, a person who
1063 falsely personates any such officer during the course of the
1064 commission of a felony commits a felony of the second degree,
1065 punishable as provided in s. 775.082, s. 775.083, or s. 775.084.
1066 If the commission of the felony results in the death or personal
1067 injury of another human being, the person commits a felony of
1068 the first degree, punishable as provided in s. 775.082, s.
1069 775.083, or s. 775.084.
1070 Section 27. Paragraph (f) is added to subsection (11) of
1071 section 943.045, Florida Statutes, to read:
1072 943.045 Definitions; ss. 943.045-943.08.—The following
1073 words and phrases as used in ss. 943.045-943.08 shall have the
1074 following meanings:
1075 (11) "Criminal justice agency" means:

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1076 (f) The investigations component of the Department of
1077 Financial Services which investigates the crimes of fraud and
1078 official misconduct in all public assistance given to residents
1079 of this state or provided to others by the state.
1080 Section 28. For the purpose of incorporating the amendment
1081 made by this act to section 497.142, Florida Statutes, in a
1082 reference thereto, paragraph (a) of subsection (5) of section
1083 497.141, Florida Statutes, is reenacted to read:
1084 497.141 Licensing; general application procedures.—
1085 (5)(a) The licensing authority may not issue, and
1086 effective July 1, 2011, may not renew, a license under this
1087 chapter to an applicant that has a criminal record required to
1088 be disclosed under s. 497.142(10) unless the applicant
1089 demonstrates that issuance of the license, according to rules
1090 adopted by the licensing authority, does not create a danger to
1091 the public. A licensee who previously disclosed her or his
1092 criminal record upon initial application or renewal of her or
1093 his license must disclose only a criminal offense for which the
1094 licensee was convicted or entered a plea of guilty or nolo
1095 contendere since the most recent renewal of her or his license
1096 or, if the license has not been renewed, since the licensee's
1097 initial application.
1098 Section 29. Except as otherwise expressly provided in this
1099 act and except for this section, which shall take effect upon
1100 this act becoming a law, this act shall take effect July 1,

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

HB 1209 2021

1101 2021.

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INSURANCE & BANKING SUBCOMMITTEE

HB 1209 by Rep. Fetterhoff
Department of Financial Services

AMENDMENT SUMMARY
March 17, 2021

Amendment 1 by Rep. Fetterhoff (line 169): The amendment:
• Clarifies that the change to have the State Risk Management Trust Fund responsible for
benefits payable to a firefighter with a cancer diagnosis under s. 112.1816(2), F.S.,
applies to fire fighters who are employees of state agencies.
• Removes the definition of “personal identifying information” to avoid potential conflict
with the public records laws in ch. 119, F.S.
• Removes language decreasing the number of members required for the Board of
Funeral, Cemetery, and Consumer Services (FCCS) to satisfy quorum for conducting
business. Restores current law requiring six of the ten members to satisfy quorum.
• Removes section 7 of the bill involving permanent and temporary bars to FCCS
licensure based upon an applicant’s criminal history.
• Removes section 8 of the bill expanding the criminal history disclosure requirements for
an applicant for FCCS licensure.
• Adds a section to the bill allowing licensed funeral director interns meeting specified
requirements to continue performing as an intern pending licensure approval.
• Adds a section to the bill allowing licensed combination funeral director and embalmer
interns meeting specified requirements to continue performing as an intern pending
licensure approval.
• Clarifies that if a preneed contract has been fulfilled, then certain deposit requirements
related the proceeds received on contracts do not apply.

Amendment 2 by Rep. Fetterhoff (line 686): The amendment:
• Makes technical changes to add the word “taxes” for consistent use in provisions
related to an insurer’s or employer’s payment of all “fees and taxes” for insurance
representative appointments.
• Clarifies language involving the protection of insurer proprietary business information
related to the replacement cost estimator or other underwriting information of an insurer
underwriting an insurance policy covering real property.
• Clarifies language of a new provision prohibiting the influencing of a firesafety inspector.

Amendment to Amendment 2 by Rep. Fabricio (line 261): The amendment adds the
designation of “Insurance Customer Service Representative (ICSR) from Statewide
Insurance Associates LLC” to the list of designations that will qualify a person for licensure as
an insurance agent’s customer representative.

Amendment 3 by Rep. Fabricio (line 941): The amendment changes a qualification for a
license or permit to install and maintain fire suppression equipment by requiring applicants to
complete a training course that includes written and practical training and is specifically
applicable to the class of license or permit sought. Additionally, the amendment allows training
courses that are approved by the State Fire Marshal, regardless of whether such training
courses are offered by the State Fire College.
COMMITTEE/SUBCOMMITTEE AMENDMENT
Bill No. HB 1209 (2021)
Amendment No. 1

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

1 Committee/Subcommittee hearing bill: Insurance & Banking
2 Subcommittee
3 Representative Fetterhoff offered the following:
4
5 Amendment (with title amendment)
6 Remove lines 169-552 and insert:
7 benefits payable to an employee of a state agency under s.
8 112.1816(2), and court-awarded attorney attorney's fees in other
9 proceedings against the state except for such awards in eminent
10 domain or for inverse condemnation or for awards by the Public
11 Employees Relations Commission. A party to a suit in any court,
12 to be entitled to have his or her attorney attorney's fees paid
13 by the state or any of its agencies, must serve a copy of the
14 pleading claiming the fees on the Department of Financial
15 Services; and thereafter the department shall be entitled to

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COMMITTEE/SUBCOMMITTEE AMENDMENT
Bill No. HB 1209 (2021)
Amendment No. 1

16 participate with the agency in the defense of the suit and any
17 appeal thereof with respect to such fees.
18 Section 3. Section 284.31, Florida Statutes, is amended to
19 read:
20 284.31 Scope and types of coverages; separate accounts.—
21 The Insurance Risk Management Trust Fund must shall, unless
22 specifically excluded by the Department of Financial Services,
23 cover all departments of the State of Florida and their
24 employees, agents, and volunteers and must shall provide
25 separate accounts for workers' compensation, general liability,
26 fleet automotive liability, federal civil rights actions under
27 42 U.S.C. s. 1983 or similar federal statutes, benefits payable
28 under s. 112.1816(2), and court-awarded attorney attorney's fees
29 in other proceedings against the state except for such awards in
30 eminent domain or for inverse condemnation or for awards by the
31 Public Employees Relations Commission. Unless specifically
32 excluded by the Department of Financial Services, the Insurance
33 Risk Management Trust Fund must shall provide fleet automotive
34 liability coverage to motor vehicles titled to the state, or to
35 any department of the state, when such motor vehicles are used
36 by community transportation coordinators performing, under
37 contract to the appropriate department of the state, services
38 for the transportation disadvantaged under part I of chapter
39 427. Such fleet automotive liability coverage is shall be
40 primary and is shall be subject to the provisions of s. 768.28
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COMMITTEE/SUBCOMMITTEE AMENDMENT
Bill No. HB 1209 (2021)
Amendment No. 1

41 and parts II and III of chapter 284, and applicable rules
42 adopted thereunder, and the terms and conditions of the
43 certificate of coverage issued by the Department of Financial
44 Services.
45 Section 4. Section 284.385, Florida Statutes, is amended
46 to read:
47 284.385 Reporting and handling of claims.—
48 (1) All departments covered by the State Risk Management
49 Trust Fund under this part shall immediately report all known or
50 potential claims to the Department of Financial Services for
51 handling, except employment complaints that which have not been
52 filed with the Florida Human Relations Commission, Equal
53 Employment Opportunity Commission, or any similar agency. When
54 deemed necessary, the Department of Financial Services shall
55 assign or reassign the claim to counsel. The assigned counsel
56 shall report regularly to the Department of Financial Services
57 or to the covered department on the status of any such claims or
58 litigation as required by the Department of Financial Services.
59 No Such claims may not claim shall be compromised or settled for
60 monetary compensation without the prior approval of the
61 Department of Financial Services and prior notification to the
62 covered department. All departments shall cooperate with the
63 Department of Financial Services in its handling of claims. The
64 Department of Financial Services and the Department of
65 Management Services, with the cooperation of the state attorneys
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COMMITTEE/SUBCOMMITTEE AMENDMENT
Bill No. HB 1209 (2021)
Amendment No. 1

66 and the clerks of the courts, shall develop a system to
67 coordinate the exchange of information concerning claims for and
68 against the state, its agencies, and its subdivisions, to assist
69 in collection of amounts due to them. The covered department is
70 responsible shall have the responsibility for the settlement of
71 any claim for injunctive or affirmative relief under 42 U.S.C.
72 s. 1983 or similar federal or state statutes. The payment of a
73 settlement or judgment for any claim covered and reported under
74 this part may shall be made only from the State Risk Management
75 Trust Fund.
76 (2) Benefits provided under s. 112.1816(2) may not be paid
77 from the fund until each request for any out-of-pocket
78 deductible, copayment, or coinsurance costs and one-time cash
79 payout has been validated and approved by the Department of
80 Management Services.
81 Section 5. Section 284.45, Florida Statutes, is created to
82 read:
83 284.45 Sexual harassment victims.—
84 (1) An individual working for an entity covered by the
85 State Risk Management Trust Fund may not engage in retaliatory
86 conduct of any kind against a sexual harassment victim. As used
87 in this section, the term "sexual harassment victim" means an
88 individual employed, or being considered for employment, with an
89 entity participating in the State Risk Management Trust Fund who
90 becomes a victim of workplace sexual harassment through the
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COMMITTEE/SUBCOMMITTEE AMENDMENT
Bill No. HB 1209 (2021)
Amendment No. 1

91 course of employment, or while being considered for employment,
92 with the entity.
93 (2) The willful and knowing dissemination of personal
94 identifying information of a sexual harassment victim, which is
95 confidential and exempt pursuant to s. 119.071(2)(n), to any
96 party other than a governmental entity in furtherance of its
97 official duties or pursuant to a court order is a misdemeanor of
98 the first degree, punishable as provided in s. 775.082.
99 Section 6. Subsections (1), (2), (3), (6), and (8) of
100 section 497.101, Florida Statutes, are amended to read:
101 497.101 Board of Funeral, Cemetery, and Consumer Services;
102 membership; appointment; terms.—
103 (1) The Board of Funeral, Cemetery, and Consumer Services
104 is created within the Department of Financial Services and shall
105 consist of 10 members, 9 of whom shall be appointed by the
106 Governor from nominations made by the Chief Financial Officer
107 and confirmed by the Senate. The Chief Financial Officer shall
108 nominate one to three persons for each of the nine vacancies on
109 the board, and the Governor shall fill each vacancy on the board
110 by appointing one of the three persons nominated by the Chief
111 Financial Officer to fill that vacancy. If the Governor objects
112 to each of the three nominations for a vacancy, she or he shall
113 inform the Chief Financial Officer in writing. Upon notification
114 of an objection by the Governor, the Chief Financial Officer
115 shall submit one to three additional nominations for that
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COMMITTEE/SUBCOMMITTEE AMENDMENT
Bill No. HB 1209 (2021)
Amendment No. 1

116 vacancy until the vacancy is filled. One member must be the
117 State Health Officer or her or his designee.
118 (2) Two members of the board must shall be funeral
119 directors licensed under part III of this chapter who are
120 associated with a funeral establishment. One member of the board
121 must shall be a funeral director licensed under part III of this
122 chapter who is associated with a funeral establishment licensed
123 under part III of this chapter which that has a valid preneed
124 license issued pursuant to this chapter and who owns or operates
125 a cinerator facility approved under chapter 403 and licensed
126 under part VI of this chapter. Two members of the board must
127 shall be persons whose primary occupation is associated with a
128 cemetery company licensed pursuant to this chapter. Two Three
129 members of the board must shall be consumers who are residents
130 of this the state, have never been licensed as funeral directors
131 or embalmers, are not connected with a cemetery or cemetery
132 company licensed pursuant to this chapter, and are not connected
133 with the death care industry or the practice of embalming,
134 funeral directing, or direct disposition. One of the two
135 consumer members must shall be at least 60 years of age, and one
136 shall be licensed as a certified public accountant under chapter
137 473. One member of the board must be a consumer who is a
138 resident of this state; is licensed as a certified public
139 accountant under chapter 473; has never been licensed as a
140 funeral director or an embalmer; is not a principal or an
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COMMITTEE/SUBCOMMITTEE AMENDMENT
Bill No. HB 1209 (2021)
Amendment No. 1

141 employee of any licensee licensed under this chapter; and does
142 not otherwise have control, as defined in s. 497.005, over any
143 licensee licensed under this chapter. One member of the board
144 must shall be a principal of a monument establishment licensed
145 under this chapter as a monument builder. One member must shall
146 be the State Health Officer or her or his designee. There may
147 shall not be two or more board members who are principals or
148 employees of the same company or partnership or group of
149 companies or partnerships under common control.
150 (3) Board members shall be appointed for terms of 4 years,
151 and the State Health Officer shall serve as long as that person
152 holds that office. The designee of the State Health Officer
153 shall serve at the pleasure of the Governor. When the terms of
154 the initial board members expire, the Chief Financial Officer
155 shall stagger the terms of the successor members as follows: one
156 funeral director, one cemetery representative, the monument
157 builder, and one consumer member shall be appointed for terms of
158 2 years, and the remaining members shall be appointed for terms
159 of 4 years. All subsequent terms shall be for 4 years.
160 (6) The board shall maintain its headquarters and records
161 of the board shall be in the Division of Funeral, Cemetery, and
162 Consumer Services of the Department of Financial Services in the
163 City of Tallahassee. The board may be contacted through the
164 Division of Funeral, Cemetery, and Consumer Services of the
165 Department of Financial Services in the City of Tallahassee. The
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Amendment No. 1

166 Chief Financial Officer shall annually appoint from among the
167 board members a chair and vice chair of the board. The board
168 shall meet at least every 6 months, and more often as necessary.
169 Special meetings of the board shall be convened upon the
170 direction of the Chief Financial Officer. A quorum is necessary
171 for the conduct of business by the board. The participation by a
172 board member in a meeting conducted through communications media
173 technology constitutes that individual's presence at such
174 meeting. Board members appearing at a board meeting in person as
175 well as board members appearing through the use of
176 communications media technology shall be counted for the
177 determination of a quorum. As used in this subsection,
178 "communications media technology" means the electronic
179 transmission of printed matter, audio, full-motion video,
180 freeze-frame video, compressed video, and digital video by any
181 method available. Unless otherwise provided by law, six board
182 members shall constitute a quorum for the conduct of the board's
183 business.
184 (8) The department shall adopt rules establishing forms by
185 which persons may apply for membership on the board and
186 procedures for applying for such membership. Such forms shall
187 require disclosure of the existence and nature of all current
188 and past employments by or contracts with, and direct or
189 indirect affiliations or interests in, any entity or business
190 that at any time was licensed by the board or by the former
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Bill No. HB 1209 (2021)
Amendment No. 1

191 Board of Funeral and Cemetery Services or the former Board of
192 Funeral Directors and Embalmers or that is or was otherwise
193 involved in the death care industry, as specified by department
194 rule.
195 Section 7. Subsections (2) through (5) of section 497.157,
196 Florida Statutes, are redesignated as subsections (4) through
197 (7), respectively, new subsections (2) and (3) and subsection
198 (8) are added to that section, and present subsection (3) of
199 that section is amended, to read:
200 497.157 Unlicensed practice; remedies concerning
201 violations by unlicensed persons.—
202 (2) A person may not be, act as, or advertise or hold
203 himself or herself out to be a funeral director, an embalmer, or
204 a direct disposer unless he or she is currently licensed by the
205 department.
206 (3) A person may not be, act as, or advertise or hold
207 himself or herself out to be a preneed sales agent unless he or
208 she is currently licensed by the department and appointed by a
209 preneed main licensee for which he or she is executing preneed
210 contracts.
211 (5)(3) Where the department determines that an emergency
212 exists regarding any violation of this chapter by any unlicensed
213 person or entity, the department may issue and serve an
214 immediate final order upon such unlicensed person or entity, in
215 accordance with s. 120.569(2)(n). Such an immediate final order
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COMMITTEE/SUBCOMMITTEE AMENDMENT
Bill No. HB 1209 (2021)
Amendment No. 1

216 may impose such prohibitions and requirements as are reasonably
217 necessary to protect the public health, safety, and welfare, and
218 is shall be effective when served.
219 (a) For the purpose of enforcing such an immediate final
220 order, the department may file an emergency or other proceeding
221 in the circuit courts of the state seeking enforcement of the
222 immediate final order by injunctive or other order of the court.
223 The court shall issue its injunction or other order enforcing
224 the immediate final order pending administrative resolution of
225 the matter under subsection (4) (2), unless the court determines
226 that such action would work a manifest injustice under the
227 circumstances. Venue for judicial actions under this paragraph
228 must shall be, at the election of the department, in the courts
229 of Leon County, or in a county where the respondent resides or
230 has a place of business.
231 (b) After serving an immediate final order to cease and
232 desist upon any person or entity, the department shall within 10
233 days issue and serve upon the same person or entity an
234 administrative complaint as set forth in subsection (4) (2),
235 except that, absent order of a court to the contrary, the
236 immediate final order will shall be effective throughout the
237 pendency of proceedings under subsection (4) (2).
238 (8) Any person who is not licensed under this chapter and
239 who engages in activity requiring licensure under this chapter

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Bill No. HB 1209 (2021)
Amendment No. 1

240 commits a felony of the third degree, punishable as provided in
241 s. 775.082, s. 775.083, or s. 775.084.
242 Section 8. Subsection (6) of section 497.159, Florida
243 Statutes, is amended to read:
244 497.159 Crimes.—
245 (6) Any person who is not licensed under this chapter who
246 engages in activity requiring licensure under this chapter,
247 commits a misdemeanor of the second degree, punishable as
248 provided in s. 775.082 or s. 775.083.
249 Section 9. Subsection (4) of section 497.375, Florida
250 Statutes, is amended to read:
251 497.375 Funeral directing; licensure of a funeral director
252 intern.-
253 (4)(a) A funeral director intern license expires 1 year
254 after issuance and, except as provided in paragraph (b),
255 paragraph (c) or paragraph (ce), may not be renewed.
256 (b) A funeral director intern who is eligible for licensure
257 under subparagraph (1)(b)2. may renew her or his funeral
258 director intern license for an additional 1-year period if the
259 funeral director in charge of the funeral director intern
260 training agency certifies to the licensing authority that the
261 intern has completed at least one-half of the course of study in
262 mortuary science or funeral service arts.
263 (c) The licensing authority may adopt rules that allow a
264 funeral director intern to renew her or his funeral director
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Bill No. HB 1209 (2021)
Amendment No. 1

265 intern license for an additional 1-year period if the funeral
266 director intern demonstrates her or his failure to complete the
267 internship before expiration of the license due to illness,
268 personal injury, or other substantial hardship beyond her or his
269 reasonable control or demonstrates that she or he has completed
270 the requirements for licensure as a funeral director but is
271 awaiting the results of a licensure examination. However, a
272 funeral director intern who renews her or his license under
273 paragraph (b) is not eligible to renew the license under this
274 paragraph.
275 (d) The licensing authority may require payment of a
276 nonrefundable fee for the renewal of any funeral director intern
277 license. The fee shall be set by rule of the licensing authority
278 but may not exceed the fee set pursuant to paragraph (1)(a) for
279 an initial funeral director intern license.
280 (e) Upon expiration of a funeral director intern license,
281 any intern that has completed the educational credentials
282 required for a license as a funeral director and has applied for
283 licensure may continue to perform the tasks, functions, and
284 duties related to funeral directing in the manner provided in
285 subsection 1(d) until a license is issued or denied, or for a
286 period 90 days, whichever occurs sooner.
287 Section 10. Subsection (2) of section 497.377, Florida
288 Statutes, is amended to read:

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Bill No. HB 1209 (2021)
Amendment No. 1

289 497.377 Combination funeral directors and embalmers;
290 internships.
291 (2)(a) An applicant who has not completed the educational
292 credentials required for a combination license as both funeral
293 director and embalmer is eligible for licensure as a combination
294 funeral director and embalmer intern if the applicant:
295 1. Is currently enrolled in and attending a college
296 accredited by the American Board of Funeral Service Education
297 (ABFSE) in a course of study in mortuary science accredited by
298 ABFSE.
299 2. Has completed at least 75 percent of the course of study
300 in mortuary science as certified by the college in which the
301 applicant is currently enrolled.
302 3. Has taken and received a passing grade in a college
303 credit course in mortuary law or funeral service law and has
304 taken and received a passing grade in a college credit course in
305 ethics.
306 (b) An application for a combination funeral director and
307 embalmer intern license must include the name and address of the
308 funeral director licensed under s. 497.373 or s. 497.374(1) and
309 the embalmer licensed under s. 497.368 or s. 497.369 under whose
310 supervision the intern will receive training and the name of the
311 licensed funeral establishment at which the training will be
312 conducted.

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Amendment No. 1

313 (c) A combination funeral director and embalmer intern may
314 perform only the tasks, functions, and duties relating to
315 funeral directing and embalming which are performed under the
316 direct supervision of a licensed funeral director who has an
317 active, valid license under s. 497.373 or s. 497.374(1) and an
318 embalmer who has an active, valid license under s. 497.368 or s.
319 497.369. However, a combination funeral director and embalmer
320 intern may perform such tasks, functions, and duties under the
321 general supervision of a licensed funeral director and embalmer
322 upon graduation from a college accredited by ABFSE with a degree
323 as specified in s. 497.373(1)(d) and upon passage of the
324 examination required under s. 497.373(2)(b) if the funeral
325 director in charge of the internship training establishment,
326 after 6 months of direct supervision, certifies to the licensing
327 authority that the intern is competent to complete the
328 internship under general supervision.
329 (d)1. A combination funeral director and embalmer intern
330 license expires 1 year after issuance and, except as provided in
331 subparagraph 2., may not be renewed. ,however, upon expiration
332 of a combination funeral director and embalmer intern license,
333 any intern that has completed the educational credentials
334 required for a combination license as both funeral director and
335 embalmer and has applied for licensure may continue to perform
336 the tasks, functions, and duties related to funeral directing
337 and embalming in the manner provided in subsection 2(c) until a
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Bill No. HB 1209 (2021)
Amendment No. 1

338 license is issued or denied, or for a period 90 days, whichever
339 occurs sooner.
340 2. The licensing authority may adopt rules that allow a
341 combination funeral director and embalmer intern to renew her or
342 his combination funeral director and embalmer intern license for
343 an additional 1 year if the combination funeral director and
344 embalmer intern demonstrates her or his failure to complete the
345 internship before expiration of the license due to illness,
346 personal injury, or other substantial hardship beyond her or his
347 reasonable control or demonstrates that she or he has completed
348 the requirements for licensure as a combination funeral director
349 and embalmer but is awaiting the results of a licensure
350 examination.
351 Section 11. Subsection (1) of section 497.458, Florida
352 Statutes, is amended to read:
353 497.458 Disposition of proceeds received on contracts.
354 (1)(c) Unless the preneed contract has been fulfilled, such
355 deposits shall be made within 30 days after the end of the
356 calendar month in which payment is received under the terms of a
357 revocable trust instrument entered into with a trust company,
358 with a national or state bank holding trust powers, or with a
359 federal or state savings and loan association holding trust
360 powers.
361
362 -----------------------------------------------------
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Bill No. HB 1209 (2021)
Amendment No. 1

363 T I T L E A M E N D M E N T
364 Remove lines 23-60 and insert:
365 circumstances; amending s. 497.101, F.S.; revising
366 provisions relating to membership of the Board of
367 Funeral, Cemetery, and Consumer Services within the
368 Department of Financial Services; authorizing use of
369 communications media technology for board member
370 participation; defining the term "communications media
371 technology"; deleting a requirement for the department
372 to adopt certain rules; making technical changes;
373 amending s. 497.157, F.S.; prohibiting persons from
374 acting as or advertising themselves as being funeral
375 directors, embalmers, direct disposers, or preneed
376 sales agents unless they are so licensed; prohibiting
377 persons from engaging in certain activities requiring
378 licensure without holding required licenses; revising
379 the criminal penalty for unlicensed activity; making
380 technical changes; amending s. 497.159, F.S.;
381 conforming a provision to changes made by the act;
382 amending s. 497.375, F.S.; allowing licensed funeral
383 director interns to continue performing tasks while
384 transitioning to a career license; amending s.
385 497.377, F.S.; allowing licensed combination funeral
386 director and embalmer interns to continue performing
387 tasks while transitioning to a career license;
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Bill No. HB 1209 (2021)
Amendment No. 1

388 amending s. 497.458, F.S., adding that deposits shall
389 be made unless the preneed contract has been
390 fulfilled; amending s. 552.081, F.S.;
391

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COMMITTEE/SUBCOMMITTEE AMENDMENT
Bill No. HB 1209 (2021)
Amendment No. 2

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

1 Committee/Subcommittee hearing bill: Insurance & Banking
2 Subcommittee
3 Representative Fetterhoff offered the following:
4
5 Amendment (with title amendment)
6 Remove lines 686-941 and insert:
7 periods, including with applicable fees and taxes that would
8 have been due pursuant to s. 624.501 for such current and prior
9 periods of appointment, shall be paid to the department.
10 (c) Upon proper appointment of the individual and payment
11 of all fees and taxes due pursuant to paragraph (b), paragraph
12 (3)(a), and s. 624.501 by the insurer or employer, the
13 department may no longer consider the inadvertent failure to
14 appoint to be a violation of this code.
15 (d) If the insurer or employer does not pay the fees and
16 taxes due pursuant to paragraph (b) within 21 days after notice
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COMMITTEE/SUBCOMMITTEE AMENDMENT
Bill No. HB 1209 (2021)
Amendment No. 2

17 by the department, the department shall suspend the insurer's or
18 employer's authority to appoint licensees until all outstanding
19 fees and taxes have been paid.
20 Section 15. Subsection (1) of section 626.8443, Florida
21 Statutes, is amended to read:
22 626.8443 Duration of suspension or revocation.—
23 (1) The department shall, in its order suspending a title
24 insurance agent's or agency's license or appointment or in its
25 order suspending the eligibility of a person to hold or apply
26 for such license or appointment, specify the period during which
27 the suspension is to be in effect, but such period may shall not
28 exceed 2 years 1 year. The license, or appointment, or
29 eligibility will shall remain suspended during the period so
30 specified, subject, however, to any rescission or modification
31 of the order by the department, or modification or reversal
32 thereof by the court, prior to expiration of the suspension
33 period. A license, appointment, or eligibility that which has
34 been suspended may not be reinstated except upon request for
35 such reinstatement, but the department may shall not grant such
36 reinstatement if it finds that the circumstance or circumstances
37 for which the license, appointment, and eligibility was
38 suspended still exist or are likely to recur.
39 Section 16. Paragraph (e) of subsection (1) of section
40 626.916, Florida Statutes, is amended to read:
41 626.916 Eligibility for export.—
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COMMITTEE/SUBCOMMITTEE AMENDMENT
Bill No. HB 1209 (2021)
Amendment No. 2

42 (1) No insurance coverage shall be eligible for export
43 unless it meets all of the following conditions:
44 (e) For personal residential property risks, the
45 retail or producing agent must advise the insured in writing
46 that coverage may be available and may be less expensive from
47 Citizens Property Insurance Corporation. The notice must include
48 other information that states that assessments by Citizens
49 Property Insurance Corporation are higher and the coverage
50 provided by Citizens Property Insurance Corporation may be less
51 than the property's existing coverage. If the notice is signed
52 by the insured, it is presumed that the insured has been
53 informed and knows that policies from Citizens Property
54 Insurance Corporation may be less expensive, may provide less
55 coverage, and will be accompanied by higher assessments.
56 Section 17. Paragraph (e) is added to subsection (1) of
57 section 626.9551, Florida Statutes, to read:
58 626.9551 Favored agent or insurer; coercion of debtors.—
59 (1) No person may:
60 (e) Require an insurance agent or agency to directly or
61 indirectly provide the replacement cost estimator or other
62 underwriting information of an insurer underwriting an insurance
63 policy covering real property, as a condition precedent or
64 condition subsequent to the lending of money or extension of
65 credit to be secured by real property, when such information is
66 the proprietary business information of an insurer, as defined
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COMMITTEE/SUBCOMMITTEE AMENDMENT
Bill No. HB 1209 (2021)
Amendment No. 2

67 in s. 624.4212(1), nor may an agent or agency provide this
68 information.
69 Section 18. Subsections (4) through (10) of section
70 627.715, Florida Statutes, are redesignated as subsections (5)
71 through (11), respectively, and a new subsection (4) is added to
72 that section, to read:
73 627.715 Flood insurance.—An authorized insurer may issue
74 an insurance policy, contract, or endorsement providing personal
75 lines residential coverage for the peril of flood or excess
76 coverage for the peril of flood on any structure or the contents
77 of personal property contained therein, subject to this section.
78 This section does not apply to commercial lines residential or
79 commercial lines nonresidential coverage for the peril of flood.
80 An insurer may issue flood insurance policies, contracts,
81 endorsements, or excess coverage on a standard, preferred,
82 customized, flexible, or supplemental basis.
83 (4) An agent may export a contract or an endorsement
84 providing flood coverage to an eligible surplus lines insurer
85 without making a diligent effort to seek such coverage from
86 three or more authorized insurers under s. 626.916(1)(a).
87 Section 19. Subsection (3) of section 633.102, Florida
88 Statutes, is amended to read:
89 633.102 Definitions.—As used in this chapter, the term:
90 (3)(a) "Contractor I" means a contractor whose business
91 includes the execution of contracts requiring the ability to lay
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COMMITTEE/SUBCOMMITTEE AMENDMENT
Bill No. HB 1209 (2021)
Amendment No. 2

92 out, fabricate, install, inspect, alter, repair, and service all
93 types of fire protection systems, excluding preengineered
94 systems.
95 (b) "Contractor II" means a contractor whose business is
96 limited to the execution of contracts requiring the ability to
97 lay out, fabricate, install, inspect, alter, repair, and service
98 water sprinkler systems, water spray systems, foam-water
99 sprinkler systems, foam-water spray systems, standpipes,
100 combination standpipes and sprinkler risers, all piping that is
101 an integral part of the system beginning at the point of service
102 as defined in this section, sprinkler tank heaters, air lines,
103 thermal systems used in connection with sprinklers, and tanks
104 and pumps connected thereto, excluding preengineered systems.
105 (c) "Contractor III" means a contractor whose business is
106 limited to the execution of contracts requiring the ability to
107 fabricate, install, inspect, alter, repair, and service carbon
108 dioxide systems, foam extinguishing systems, dry chemical
109 systems, and Halon and other chemical systems, excluding
110 preengineered systems.
111 (d) "Contractor IV" means a contractor whose business is
112 limited to the execution of contracts requiring the ability to
113 lay out, fabricate, install, inspect, alter, repair, and service
114 automatic fire sprinkler systems for detached one-family
115 dwellings, detached two-family dwellings, and mobile homes,
116 excluding preengineered systems and excluding single-family
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COMMITTEE/SUBCOMMITTEE AMENDMENT
Bill No. HB 1209 (2021)
Amendment No. 2

117 homes in cluster units, such as apartments, condominiums, and
118 assisted living facilities or any building that is connected to
119 other dwellings. A Contractor IV is limited to the scope of
120 practice specified in NFPA 13D.
121 (e) "Contractor V" means a contractor whose business is
122 limited to the execution of contracts requiring the ability to
123 fabricate, install, inspect, alter, repair, and service the
124 underground piping for a fire protection system using water as
125 the extinguishing agent beginning at the point of service as
126 defined in this act and ending no more than 1 foot above the
127 finished floor.
128
129 The definitions in This subsection may not be construed to
130 include engineers or architects within the defined terms and
131 does do not limit or prohibit a licensed fire protection
132 engineer or architect with fire protection design experience
133 from designing any type of fire protection system. A distinction
134 is made between system design concepts prepared by the design
135 professional and system layout as defined in this section and
136 typically prepared by the contractor. However, a person
137 certified as a Contractor I or, Contractor II, or Contractor IV
138 under this chapter may design new fire protection systems of 49
139 or fewer sprinklers;, and may design the alteration of an
140 existing fire sprinkler system if the alteration consists of the
141 relocation, addition, or deletion of not more than 49 or fewer
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COMMITTEE/SUBCOMMITTEE AMENDMENT
Bill No. HB 1209 (2021)
Amendment No. 2

142 sprinklers, notwithstanding the size of the existing fire
143 sprinkler system; or may design the alteration of an existing
144 fire sprinkler system if the alteration consists of the
145 relocation or deletion of 249 or fewer sprinklers,
146 notwithstanding the size of the existing fire sprinkler system,
147 if there is no change of occupancy, as defined in the Florida
148 Building Code and the Florida Fire Prevention Code, of the
149 affected areas and there is no change in the water demand as
150 defined in NFPA 13, "Standard for the Installation of Sprinkler
151 Systems," and if the occupancy hazard classification as defined
152 in NFPA 13 is reduced or remains the same as a result of the
153 alteration. Conflicts between the Florida Building Code and the
154 Florida Fire Prevention Code shall be resolved pursuant to s.
155 553.73(1)(d). A person certified as a Contractor I, Contractor
156 II, or Contractor IV may design or alter a fire protection
157 system, the scope of which complies with NFPA 13D, "Standard for
158 the Installation of Sprinkler Systems in One- and Two-Family
159 Dwellings and Manufactured Homes," as adopted by the State Fire
160 Marshal, notwithstanding the number of fire sprinklers.
161 Contractor-developed plans may not be required by any local
162 permitting authority to be sealed by a registered professional
163 engineer.
164 Section 20. Section 633.136, Florida Statutes, is amended
165 to read:

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COMMITTEE/SUBCOMMITTEE AMENDMENT
Bill No. HB 1209 (2021)
Amendment No. 2

166 633.136 Fire and Emergency Incident Information Reporting
167 Program; duties; fire reports.—
168 (1)(a) The Fire and Emergency Incident Information
169 Reporting Program is created within the division. The program
170 shall:
171 1. Establish and maintain an electronic communication
172 system capable of transmitting fire and emergency incident
173 information to and between fire service providers protection
174 agencies.
175 2. Initiate a Fire and Emergency Incident Information
176 Reporting System that is shall be responsible for:
177 a. Receiving fire and emergency incident information from
178 fire service providers protection agencies.
179 b. Preparing and disseminating annual reports to the
180 Governor, the President of the Senate, the Speaker of the House
181 of Representatives, fire service providers protection agencies,
182 and, upon request, the public. Each report must shall include,
183 but not be limited to, the information listed in the National
184 Fire Incident Reporting System.
185 c. Upon request, providing other states and federal
186 agencies with fire and emergency incident data of this state.
187 3. Adopt rules to effectively and efficiently implement,
188 administer, manage, maintain, and use the Fire and Emergency
189 Incident Information Reporting Program. The rules shall be
190 considered minimum requirements and may shall not preclude a
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COMMITTEE/SUBCOMMITTEE AMENDMENT
Bill No. HB 1209 (2021)
Amendment No. 2

191 fire service provider protection agency from implementing its
192 own requirements that which may not conflict with the rules of
193 the division.
194 4. By rule, establish procedures and a format for each
195 fire service provider protection agency to voluntarily monitor
196 its records and submit reports to the program.
197 5. Maintain Establish an electronic information database
198 that is accessible and searchable by fire service providers
199 protection agencies.
200 (b) The division shall consult with the Florida Forest
201 Service of the Department of Agriculture and Consumer Services
202 and the State Surgeon General of the Department of Health to
203 coordinate data, ensure accuracy of the data, and limit
204 duplication of efforts in data collection, analysis, and
205 reporting.
206 (2) The Fire and Emergency Incident Information System
207 Technical Advisory Panel is created within the division. The
208 panel shall advise, review, and recommend to the State Fire
209 Marshal with respect to the requirements of this section. The
210 membership of the panel consists shall consist of the following
211 15 members:
212 (a) The current 13 members of the Firefighters Employment,
213 Standards, and Training Council as established in s. 633.402.

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COMMITTEE/SUBCOMMITTEE AMENDMENT
Bill No. HB 1209 (2021)
Amendment No. 2

214 (b) One member from the Florida Forest Service of the
215 Department of Agriculture and Consumer Services, appointed by
216 the director of the Florida Forest Service.
217 (c) One member from the Department of Health, appointed by
218 the State Surgeon General.
219 (3) As used in For the purpose of this section, the term
220 "fire service provider" has the same meaning as in s. 633.102
221 "fire protection agency" shall be defined by rule by the
222 division.
223 Section 21. Subsection (18) of section 633.202, Florida
224 Statutes, is amended to read:
225 633.202 Florida Fire Prevention Code.—
226 (18) The authority having jurisdiction shall determine the
227 minimum radio signal strength for fire department communications
228 in all new high-rise and existing high-rise buildings. Existing
229 buildings are not required to comply with minimum radio strength
230 for fire department communications and two-way radio system
231 enhancement communications as required by the Florida Fire
232 Prevention Code until January 1, 2023 2022. However, by January
233 1, 2022 December 31, 2019, an existing building that is not in
234 compliance with the requirements for minimum radio strength for
235 fire department communications must have completed a minimum
236 radio strength assessment apply for an appropriate permit for
237 the required installation with the local government agency
238 having jurisdiction and must demonstrate that the building will
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COMMITTEE/SUBCOMMITTEE AMENDMENT
Bill No. HB 1209 (2021)
Amendment No. 2

239 become compliant by January 1, 2023 2022. Existing apartment
240 buildings are not required to comply until January 1, 2025.
241 However, existing apartment buildings must have completed a
242 minimum radio strength assessment are required to apply for the
243 appropriate permit for the required communications installation
244 by December 31, 2022.
245 Section 22. Section 633.217, Florida Statutes, is created
246 to read:
247 633.217 Influencing a firesafety inspector; prohibited
248 acts.—
249 (1) A person may not influence a firesafety inspector by:
250 (a) Threatening, coercing, tricking, or attempting to
251 threaten, coerce, or trick the firesafety inspector into
252 violating any provision of the Florida Fire Prevention Code, any
253 rule adopted by the State Fire Marshal, or any provision of this
254 chapter.
255 (b) Offering any compensation to the firesafety inspector
256 to induce a violation of the Florida Fire Prevention Code, any
257 rule adopted by the State Fire Marshal, or any provision of this
258 chapter.
259 (2) A firesafety inspector may not knowingly and
260 intentionally request, solicit, accept, or agree to accept
261 compensation offered as described in paragraph (1)(b).
262
263 -----------------------------------------------------
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COMMITTEE/SUBCOMMITTEE AMENDMENT
Bill No. HB 1209 (2021)
Amendment No. 2

264 T I T L E A M E N D M E N T
265 Remove lines 118-120 and insert:
266 inspector from knowingly and intentionally requesting,
267 soliciting, accepting, or agreeing to accept
268 compensation offered to induce a violation of certain
269 laws; amending s. 633.402, F.S.; revising the

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COMMITTEE/SUBCOMMITTEE AMENDMENT
Bill No. HB 1209 (2021)
Amendment No. A2

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

1 Committee/Subcommittee hearing bill: Insurance & Banking
2 Subcommittee
3 Representative Fabricio offered the following:
4
5 Amendment to Amendment (747305) by Representative
6 Fetterhoff (with title amendment)
7 Between lines 261 and 262 of the amendment, insert:
8 Section 23. Subsection (3) of section 626.7351, Florida
9 Statutes, is amended to read:
10 626.7351 Qualifications for customer representative's
11 license.—The department shall not grant or issue a license as
12 customer representative to any individual found by it to be
13 untrustworthy or incompetent, or who does not meet each of the
14 following qualifications:
15 (3) Within 4 years preceding the date that the application
16 for license was filed with the department, the applicant has
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COMMITTEE/SUBCOMMITTEE AMENDMENT
Bill No. HB 1209 (2021)
Amendment No. A2

17 earned the designation of Accredited Advisor in Insurance (AAI),
18 Associate in General Insurance (AINS), or Accredited Customer
19 Service Representative (ACSR) from the Insurance Institute of
20 America; the designation of Certified Insurance Counselor (CIC)
21 from the Society of Certified Insurance Service Counselors; the
22 designation of Certified Professional Service Representative
23 (CPSR) from the National Foundation for CPSR; the designation of
24 Certified Insurance Service Representative (CISR) from the
25 Society of Certified Insurance Service Representatives; the
26 designation of Certified Insurance Representative (CIR) from
27 All-Lines Training; the designation of Professional Customer
28 Service Representative (PCSR) from the Professional Career
29 Institute; the designation of Insurance Customer Service
30 Representative (ICSR) from Statewide Insurance Associates LLC;
31 the designation of Registered Customer Service Representative
32 (RCSR) from a regionally accredited postsecondary institution in
33 the state whose curriculum is approved by the department and
34 includes comprehensive analysis of basic property and casualty
35 lines of insurance and testing which demonstrates mastery of the
36 subject; or a degree from an accredited institution of higher
37 learning approved by the department when the degree includes a
38 minimum of 9 credit hours of insurance instruction, including
39 specific instruction in the areas of property, casualty, and
40 inland marine insurance. The department shall adopt rules
41 establishing standards for the approval of curriculum.
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COMMITTEE/SUBCOMMITTEE AMENDMENT
Bill No. HB 1209 (2021)
Amendment No. A2

42
43 -----------------------------------------------------
44 T I T L E A M E N D M E N T
45 Remove line 269 of the amendment and insert:
46 laws; amending s. 626.7351, F.S.; revising the
47 qualifications for customer representative licenses;
48 amending s. 633.402, F.S.; revising the

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COMMITTEE/SUBCOMMITTEE AMENDMENT
Bill No. HB 1209 (2021)
Amendment No. 3

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

1 Committee/Subcommittee hearing bill: Insurance & Banking
2 Subcommittee
3 Representative Fabricio offered the following:
4
5 Amendment (with title amendment)
6 Between lines 941 and 942, insert:
7 Section 23. Paragraphs (d), (g), and (h) of subsection (4)
8 of section 633.304, Florida Statutes, are amended to read:
9 633.304 Fire suppression equipment; license to install or
10 maintain.—
11 (4)
12 (d) A license of any class may not be issued or renewed by
13 the division and a license of any class does not remain
14 operative unless:

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COMMITTEE/SUBCOMMITTEE AMENDMENT
Bill No. HB 1209 (2021)
Amendment No. 3

15 1. The applicant has submitted to the State Fire Marshal
16 evidence of registration as a Florida corporation or evidence of
17 compliance with s. 865.09.
18 2. The State Fire Marshal or his or her designee has by
19 inspection determined that the applicant possesses the equipment
20 required for the class of license sought. The State Fire Marshal
21 shall give an applicant a reasonable opportunity to correct any
22 deficiencies discovered by inspection. To obtain such
23 inspection, an applicant with facilities located outside this
24 state must:
25 a. Provide a notarized statement from a professional
26 engineer licensed by the applicant's state of domicile
27 certifying that the applicant possesses the equipment required
28 for the class of license sought and that all such equipment is
29 operable; or
30 b. Allow the State Fire Marshal or her or his designee to
31 inspect the facility. All costs associated with the State Fire
32 Marshal's inspection must be paid by the applicant. The State
33 Fire Marshal, in accordance with s. 120.54, may adopt rules to
34 establish standards for the calculation and establishment of the
35 amount of costs associated with any inspection conducted by the
36 State Fire Marshal under this section. Such rules must include
37 procedures for invoicing and receiving funds in advance of the
38 inspection.

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COMMITTEE/SUBCOMMITTEE AMENDMENT
Bill No. HB 1209 (2021)
Amendment No. 3

39 3. The applicant has submitted to the State Fire Marshal
40 proof of insurance providing coverage for comprehensive general
41 liability for bodily injury and property damage, products
42 liability, completed operations, and contractual liability. The
43 State Fire Marshal shall adopt rules providing for the amounts
44 of such coverage, but such amounts may not be less than $300,000
45 for Class A or Class D licenses, $200,000 for Class B licenses,
46 and $100,000 for Class C licenses; and the total coverage for
47 any class of license held in conjunction with a Class D license
48 may not be less than $300,000. The State Fire Marshal may, at
49 any time after the issuance of a license or its renewal, require
50 upon demand, and in no event more than 30 days after notice of
51 such demand, the licensee to provide proof of insurance, on the
52 insurer's form, containing confirmation of insurance coverage as
53 required by this chapter. Failure, for any length of time, to
54 provide proof of insurance coverage as required must result in
55 the immediate suspension of the license until proof of proper
56 insurance is provided to the State Fire Marshal. An insurer that
57 provides such coverage shall notify the State Fire Marshal of
58 any change in coverage or of any termination, cancellation, or
59 nonrenewal of any coverage.
60 4. The applicant applies to the State Fire Marshal,
61 provides proof of experience, and successfully completes a
62 prescribed training course that includes both written and
63 practical training offered by the State Fire College or an
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COMMITTEE/SUBCOMMITTEE AMENDMENT
Bill No. HB 1209 (2021)
Amendment No. 3

64 equivalent course approved by the State Fire Marshal as
65 applicable to the class of license being sought. This
66 subparagraph does not apply to any holder of or applicant for a
67 permit under paragraph (g) or to a business organization or a
68 governmental entity seeking initial licensure or renewal of an
69 existing license solely for the purpose of inspecting,
70 servicing, repairing, marking, recharging, and maintaining fire
71 extinguishers used and located on the premises of and owned by
72 such organization or entity.
73 5. The applicant has a current retestor identification
74 number that is appropriate for the license for which the
75 applicant is applying and that is listed with the United States
76 Department of Transportation.
77 6. The applicant has passed, with a grade of at least 70
78 percent, a written examination testing his or her knowledge of
79 the rules and statutes governing the activities authorized by
80 the license and demonstrating his or her knowledge and ability
81 to perform those tasks in a competent, lawful, and safe manner.
82 Such examination must be developed and administered by the State
83 Fire Marshal, or his or her designee in accordance with policies
84 and procedures of the State Fire Marshal. An applicant shall pay
85 a nonrefundable examination fee of $50 for each examination or
86 reexamination scheduled. A reexamination may not be scheduled
87 sooner than 30 days after any administration of an examination
88 to an applicant. An applicant may not be permitted to take an
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COMMITTEE/SUBCOMMITTEE AMENDMENT
Bill No. HB 1209 (2021)
Amendment No. 3

89 examination for any level of license more than a total of four
90 times during 1 year, regardless of the number of applications
91 submitted. As a prerequisite to licensure of the applicant, he
92 or she:
93 a. Must be at least 18 years of age.
94 b. Must have 4 years of proven experience as a fire
95 equipment permittee at a level equal to or greater than the
96 level of license applied for or have a combination of education
97 and experience determined to be equivalent thereto by the State
98 Fire Marshal. Having held a permit at the appropriate level for
99 the required period constitutes the required experience.
100 c. Must not have been convicted of a felony or a crime
101 punishable by imprisonment of 1 year or more under the law of
102 the United States or of any state thereof or under the law of
103 any other country. "Convicted" means a finding of guilt or the
104 acceptance of a plea of guilty or nolo contendere in any federal
105 or state court or a court in any other country, without regard
106 to whether a judgment of conviction has been entered by the
107 court having jurisdiction of the case. If an applicant has been
108 convicted of any such felony, the applicant is excluded from
109 licensure for a period of 4 years after expiration of sentence
110 or final release by the Florida Commission on Offender Review
111 unless the applicant, before the expiration of the 4-year
112 period, has received a full pardon or has had her or his civil
113 rights restored.
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COMMITTEE/SUBCOMMITTEE AMENDMENT
Bill No. HB 1209 (2021)
Amendment No. 3

114
115 This subparagraph does not apply to any holder of or applicant
116 for a permit under paragraph (g) or to a business organization
117 or a governmental entity seeking initial licensure or renewal of
118 an existing license solely for the purpose of inspecting,
119 servicing, repairing, marking, recharging, hydrotesting, and
120 maintaining fire extinguishers used and located on the premises
121 of and owned by such organization or entity.
122 (g) A permit of any class may not be issued or renewed to
123 a person by the division, and a permit of any class does not
124 remain operative, unless the person has:
125 1. Submitted a nonrefundable examination fee in the amount
126 of $50.
127 2. Successfully completed a training course that includes
128 both written and practical training offered by the State Fire
129 College or an equivalent course approved by the State Fire
130 Marshal as applicable to the class of license being sought.
131 3. Passed, with a grade of at least 70 percent, a written
132 examination testing his or her knowledge of the rules and
133 statutes governing the activities authorized by the permit and
134 demonstrating his or her knowledge and ability to perform those
135 tasks in a competent, lawful, and safe manner. Such examination
136 must be developed and administered by the State Fire Marshal in
137 accordance with the policies and procedures of the State Fire
138 Marshal. An examination fee must be paid for each examination
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COMMITTEE/SUBCOMMITTEE AMENDMENT
Bill No. HB 1209 (2021)
Amendment No. 3

139 scheduled. A reexamination may not be scheduled sooner than 30
140 days after any administration of an examination to an applicant.
141 An applicant may not be permitted to take an examination for any
142 level of permit more than four times during 1 year, regardless
143 of the number of applications submitted. As a prerequisite to
144 taking the permit examination, the applicant must be at least 16
145 years of age.
146 (h) An applicant for a license or permit under this
147 section who fails the examination may take it three more times
148 during the 1-year period after he or she originally filed an
149 application for the examination. If the applicant fails the
150 examination within 1 year after the application date and he or
151 she seeks to retake the examination, he or she must file a new
152 application, pay the application and examination fees, and
153 successfully complete a prescribed training course that includes
154 both written and practical training offered by the State Fire
155 College or an equivalent course approved by the State Fire
156 Marshal as applicable to the class of license being sought. The
157 applicant may not submit a new application within 6 months after
158 the date of his or her fourth reexamination. An applicant who
159 passes the examination but does not meet the remaining
160 qualifications prescribed by law and rule within 1 year after
161 the application date must file a new application, pay the
162 application and examination fee, successfully complete a
163 prescribed training course that includes both written and
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COMMITTEE/SUBCOMMITTEE AMENDMENT
Bill No. HB 1209 (2021)
Amendment No. 3

164 practical training approved by the State Fire College or an
165 equivalent course approved by the State Fire Marshal as
166 applicable to the class of license being sought, and pass the
167 written examination.
168
169 -----------------------------------------------------
170 T I T L E A M E N D M E N T
171 Remove line 120 and insert:
172 laws; amending s. 633.304, F.S.; revising the training
173 requirements for licenses and permits to install or maintain
174 fire suppression equipment; amending s. 633.402, F.S.; revising
175 the

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HB 1351
HOUSE OF REPRESENTATIVES STAFF ANALYSIS
BILL #: HB 1351 Money Services Businesses
SPONSOR(S): Aloupis
TIED BILLS: IDEN./SIM. BILLS: SB 1758

REFERENCE ACTION ANALYST STAFF DIRECTOR or
BUDGET/POLICY CHIEF

1) Insurance & Banking Subcommittee Hinshelwood Luczynski

2) State Administration & Technology
Appropriations Subcommittee

3) Commerce Committee

SUMMARY ANALYSIS
The Office of Financial Regulation’s (OFR’s) Division of Consumer Finance licenses and regulates various
aspects of the non-depository financial services industries, including money services businesses (MSBs)
regulated under ch. 560, F.S. Money transmitters and payment instrument sellers are two types of MSBs.
Currently, virtual currency is not expressly within ch. 560, F.S., though in the last six years OFR has received
approximately 64 petitions for declaratory statement relating to whether and how virtual currency is regulated
under that chapter.

Virtual currency is a digital representation of value that functions as a medium of exchange, a unit of account,
and/or a store of value. In some environments, it operates like “fiat” currency (i.e., the coin and paper money of
the United States or of any other country that is designated as legal tender, circulates, and is customarily used
and accepted as a medium of exchange in the country of issuance), but it does not have legal tender status in
any jurisdiction. Bitcoin is one example of a virtual currency.

In a recent case, the Third District Court of Appeal’s holdings related to Bitcoin illustrate the need to expressly
provide whether and how virtual currency falls within ch. 560, F.S., as well as the need to clarify certain
definitions in that chapter. In particular, the court held that the definition of “money transmitter” does not require
licensure only for third-party intermediaries but even for persons involved in a two-party transaction.

Within ch. 560, F.S., the bill adds a definition for “virtual currency” and amends the definitions of “electronic
instrument”, “monetary value”, “money transmitter”, “payment instrument”, and “stored value”. The
amendments to these definitions provide clarity as to their meaning; make virtual currency expressly subject to
money transmitter regulations but not regulations for other types of licenses under ch. 560, F.S.; and clarify
that a money transmitter license is only required for a person acting an intermediary between two parties,
meaning that neither person in a two-party transaction is required to be licensed. As a result of the addition of
virtual currency to ch. 560, F.S., the bill makes conforming changes to the prohibition on unlicensed activity
and amends the permissible investments statute. Without a change to the permissible investments statute, the
effect would be to require a money transmitter that transmits virtual currency to not only have control over the
virtual currency being transmitted but also hold the equivalent value in cash or other assets on the list of
permissible investments. Instead, the bill would only require that, during the period of transmission, the money
transmitter must hold virtual currency of the same type and amount owed or obligated to the other location or
person on the receiving end of the transmission. Lastly, the bill makes conforming changes under the Financial
Technology Sandbox in s. 559.952, F.S.

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

The bill provides an effective date of January 1, 2022.

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 Money Transmitters and Payment Instrument Sellers

State Regulation

The Office of Financial Regulation (OFR) regulates banks, credit unions, other financial institutions,
finance companies, and the securities industry.1 The Division of Consumer Finance within OFR
licenses and regulates various aspects of the non-depository financial services industries, including
money services businesses (MSBs) regulated under ch. 560, F.S. Money transmitters and payment
instrument sellers are two types of MSBs, and both are regulated under part II of ch. 560, F.S.

A money transmitter receives currency,2 monetary value,3 or payment instruments4 for the purpose of
transmitting the same by any means, including transmission by wire, facsimile, electronic transfer,
courier, the Internet, or through bill payment services or other businesses that facilitate such transfer
within this country, or to or from this country.5 A payment instrument seller sells, issues, provides, or
delivers a payment instrument.6 State and federally chartered depository institutions, such as banks
and credit unions, are exempt from licensure as an MSB.7 Currently, virtual currency is not expressly
within ch. 560, F.S., though in the last six years OFR has received approximately 64 petitions for
declaratory statement relating to whether and how virtual currency is regulated under that chapter.

An applicant for an MSB license under ch. 560, F.S., must file an application with OFR and pay an
application fee of $375.8 The license must be renewed every two years by paying a renewal fee of
$750.9 Money transmitters and payment instrument sellers may operate through authorized vendors by
providing OFR with specified information about the authorized vendor and by paying a fee of $38 per
authorized vendor location at the time of application and renewal.10 A money transmitter or payment
instrument seller may also engage in the activities authorized for check cashers11 and foreign currency
exchangers12 without paying additional licensing fees.13

1 S. 20.121(3)(a)2., F.S.
2 The term “currency” means the coin and paper money of the United States or of any other country which is designated

as legal tender and which circulates and is customarily used and accepted as a medium of exchange in the country of
issuance. Currency includes United States silver certificates, United States notes, and Federal Reserve notes. Currency
also includes official foreign bank notes that are customarily used and accepted as a medium of exchange in a foreign
country. S. 560.103(11), F.S.
3 The term “monetary value” means a medium of exchange, whether or not redeemable in currency. S. 560.103(21), F.S.
4 The term “payment instrument” means a check, draft, warrant, money order, travelers check, electronic instrument, or

other instrument, payment of money, or monetary value whether or not negotiable. The term does not include an
instrument that is redeemable by the issuer in merchandise or service, a credit card voucher, or a letter of credit. S.
560.103(29), F.S.
5 S. 560.103(23), F.S.
6 S. 560.103(30) and (34), F.S.; definition of “payment instrument”, supra note 4.
7 S. 560.104, F.S.
8 Ss. 560.141 and 560.143, F.S.
9 Id.; s. 560.142, F.S.
10 Id.; ss. 560.203, 560.205, and 560.208, F.S.
11 The term “check casher” means a person who sells currency in exchange for payment instruments received, except

travelers checks. S. 560.103(6), F.S.
12 The term “foreign currency exchanger” means a person who exchanges, for compensation, currency of the United

States or a foreign government to currency of another government. S. 560.103(17), F.S.
13 S. 560.204(2), F.S.
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A money transmitter or payment instrument seller must at all times:
 Have a net worth of at least $100,000 and an additional net worth of $10,000 per location in this
state, up to a maximum of $2 million.14
 Have a corporate surety bond in an amount between $50,000 and $2 million depending on the
financial condition, number of locations, and anticipated volume of the licensee.15 In lieu of a
corporate surety bond, the licensee may deposit collateral such as cash or interest-bearing
stocks and bonds with a federally insured financial institution.16
 Possess permissible investments, such as cash and certificates of deposit, with an aggregate
market value of at least the aggregate face amount of all outstanding money transmissions and
payment instruments issued or sold by the licensee or an authorized vendor in the United
States.17 OFR may waive the permissible investments requirement if the dollar value of a
licensee’s outstanding payment instruments and money transmitted do not exceed the bond or
collateral deposit.18

While MSBs are generally subject to federal anti-money laundering laws,19 Florida law contains many
of the same anti-money laundering reporting requirements and recordkeeping requirements with the
added benefit of state enforcement. An MSB applicant must have an anti-money laundering program
that meets the requirements of federal law.20

Pursuant to the Florida Control of Money Laundering in Money Services Business Act, an MSB must
maintain certain records of each transaction involving currency or payment instruments in order to deter
the use of a money services business to conceal proceeds from criminal activity and to ensure the
availability of such records for criminal, tax, or regulatory investigations or proceedings.21 An MSB must
keep records of each transaction occurring in this state that it knows to involve currency or other
payment instruments having a greater value than $10,000; to involve the proceeds of specified unlawful
activity; or to be designed to evade the reporting requirements of ch. 896, F.S., or the Florida Control of
Money Laundering in Money Services Business Act.22 OFR may take administrative action against an
MSB for failure to maintain or produce documents required by ch. 560, F.S., or federal anti-money
laundering laws.23 OFR may also take administrative action against an MSB for other violations of
federal anti-money laundering laws such as failure to file suspicious activity reports.24

A money transmitter or payment instrument seller must maintain specified records for at least five
years, including the following:25
 A daily record of payment instruments sold and money transmitted.
 A general ledger containing all asset, liability, capital, income, and expense accounts, which
must be posted at least monthly.
 Daily settlement records received from authorized vendors.
 Monthly financial institution statements and reconciliation records.
 Records of outstanding payment instruments and money transmitted.
 Records of each payment instrument paid and money transmission delivered.
 A list of the names and addresses of the licensee’s authorized vendors.
 Records that document the establishment, monitoring, and termination of relationships with
authorized vendors and foreign affiliates.
 Any additional records, as prescribed by rule, designed to detect and prevent money
laundering.

14 S. 560.209, F.S.
15 Id.
16 Id.
17 S. 560.210, F.S.
18 Id.
19 31 C.F.R. pt. 1022.
20 S. 560.1401, F.S.
21 S. 560.123, F.S.
22 Id.
23 S. 560.114, F.S.
24 Id.
25 Ss. 560.1105 and 560.211, F.S.
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Recent Case Law: State v. Espinoza

Through an online directory of buyers and sellers of bitcoin, a detective with the Miami Beach Police
Department arranged to meet a person with the username Michelhack, which turned out to be the
defendant Michell Espinoza, in order to purchase bitcoin.26 The detective arranged multiple
transactions with the defendant as follows:
 During the course of the first transaction, the detective made clear his desire to remain
anonymous and implied that he was involved in illicit activity.27 The detective paid Mr. Espinoza
$500 in cash and received a portion of a bitcoin valued at $416.12, thus earning Mr. Espinoza a
profit of $83.67.28
 The detective arranged a second transaction with Mr. Espinoza during which he told Mr.
Espinoza that he needed the bitcoins to pay for stolen credit card numbers, since he was in the
business of buying and selling stolen credit card numbers from Russian sellers.29 The detective
paid Mr. Espinoza $1,000 in cash and received one bitcoin, thus earning Mr. Espinoza a profit
of approximately $167.56.30
 The detective then arranged a third transaction with Mr. Espinoza.31 The detective inquired how
fast the transaction could be completed because his “Russian buddies” would not send him his
“[stuff] until they get the coin.”32 The detective deposited $500 into Mr. Espinoza’s bank account,
and Mr. Espinoza transferred 0.54347826 bitcoins to the detective.33
 In the fourth and final transaction, the detective negotiated the transfer of bitcoins worth $30,000
and represented to Mr. Espinoza that it was to pay for a new batch of stolen credit card
numbers acquired from a recent data breach.34 Although Mr. Espinoza questioned the
authenticity of the $30,000 roll of money that the detective gave him, he otherwise remained
ready and willing to consummate the entire transaction.35 Mr. Espinoza was then taken into
custody.36

Mr. Espinoza was charged with: (1) one count of unlawfully engaging in the business of a money
transmitter and acting as a payment instrument seller as a result of not being licensed to conduct such
activity (Count one); and (2) two counts of money laundering (Counts two and three).37 Mr. Espinoza
filed a motion to dismiss as to all counts, which the trial court granted for the following reasons:
 As to Count one, the trial court found that neither Bitcoin nor Mr. Espinoza’s conduct fell within
the ambit of ch. 560, F.S., requiring registration as a money services business.38 Regarding Mr.
Espinoza’s conduct, the trial court reasoned that a “money transmitter” would necessarily
operate like a middleman in a financial transaction, much like how Western Union accepts
money from person A, and at the direction of person A, transmits it to person or entity B.39 Mr.
Espinoza was not acting as a middleman; rather the transactions with the detective were two-
party transactions in which Mr. Espinoza sold his own bitcoin to the detective and received U.S.
Dollars in return.
 As to Counts two and three, the trial court found that the conduct at issue qualifies as a
“financial transaction” under the money laundering statutes but that Mr. Espinoza lacked the
requisite intent to be guilty of money laundering.40

26 State v. Espinoza, 264 So. 3d 1055, 1059-60 (Fla. 3d DCA 2019).
27 Id. at 1060.
28 Id.
29 Id.
30 Id.
31 Id.
32 Id.
33 Id.
34 Id. at 1060-61.
35 Id. at 1061.
36 Id.
37 Id. at 1057 and 1061.
38 Id. at 1057 and 1061.
39 Id. at 1065.
40 Id. at 1057 and 1061.
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The state then appealed the trial court’s dismissal of the information.41 On appeal, the Third District
Court of Appeal (court) held that:
 The trial court erred in dismissing Count one because Mr. Espinoza acted as both a money
transmitter and a payment instrument seller and, as such, was required to be licensed as a
money services business.42
 The trial court erred in dismissing Counts two and three on the basis that Espinoza lacked the
requisite intent to be guilty of money laundering.43

Most importantly, in the reasoning as to count one, the court determined that Bitcoin is both “monetary
value” and a “payment instrument” under ch. 560, F.S.44 This interpretation illustrates the need to
expressly provide whether and how virtual currency falls within ch. 560, F.S. The court’s interpretation
also illustrates the need to clarify the definition of “payment instrument”. “Monetary value” is akin to
“currency” within ch. 560, F.S. Conceptually, a payment instrument is an instrument denominated in
currency (or monetary value), but currency and monetary value should not in and of themselves be a
payment instrument.

Another important aspect of the Espinoza case is that in determining that Mr. Espinoza acted as a
money transmitter, the court addressed whether the definition of “money transmitter” covers only third-
party intermediaries, in which case Mr. Espinoza selling his own bitcoins to the detective would not
have run afoul of the prohibition on unlicensed money transmission.45 On this point, the court held that
“[t]he statute's plain language clearly contains no third party transmission requirement in order for an
individual's conduct to fall under the ‘money transmitter’ definition. As such, we decline to add any third
party or ‘middleman’ requirement to the money transmitter definition found in section 560.103(23).” 46
The court’s holding illustrates the need to clarify the definition of “money transmitter” such that a money
transmitter license is only required for a person acting an intermediary between two parties, but neither
person in a two-party transaction is required to be licensed.47

Virtual Currency

Virtual currency is a digital representation of value that functions as a medium of exchange, a unit of
account, and/or a store of value.48 In some environments, it operates like “real” currency49 (i.e., the coin
and paper money of the United States or of any other country that is designated as legal tender,
circulates, and is customarily used and accepted as a medium of exchange in the country of issuance),
but it does not have legal tender status in any jurisdiction.50 Virtual currency that has an equivalent
value in real currency, or that acts as a substitute for real currency, is referred to as “convertible” virtual
currency.51 Bitcoin is one example of a convertible virtual currency, as it can be digitally traded between

41 Id. at 1061.
42 Id. at 1057 and 1061-62.
43 Id.
44 Id. at 1064.
45 Id. at 1065.
46 Id. (citations omitted).
47 This is consistent with the historical interpretation of the money transmitter definition by OFR and industry, and it avoids

the untenable result of requiring persons in a two-party transaction to be licensed. Additionally, this is consistent with the
substance of the money transmitter regulations.
48 IRS, Virtual Currencies: What is virtual currency?, https://www.irs.gov/businesses/small-businesses-self-

employed/virtual-currencies (last visited Mar. 14, 2021).
49 Also often referred to as “fiat” currency.
50 IRS, supra note 48.
51 Id.
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users and can be purchased for, or exchanged into, U.S. dollars, Euros, and other real or virtual
currencies.52

Virtual currencies generally consist of computers operating the network software (nodes) that enable,
validate, and store transaction records on a distributed digital ledger (a blockchain).53 To transfer an
asset on a blockchain, a person enters an alphanumeric code known only to the transferor (a private
key) into a cryptographic hash function enabled by the network software, which allows the transferor to
request that the network software validate a new entry on the ledger showing that control of an asset
has been assigned to the recipient.54 Once the network software has validated this transfer, the ledger
is altered and the recipient may transfer the asset to another recipient using their own private key.55
Ledger entries are cryptographically secured, and accounts are identified on a blockchain by
alphanumeric ‘‘public keys’’—not by the owner’s name.56

Some persons use the services of a third-party to acquire or transact in virtual currency.57 For example,
certain third-parties provide custody services for their customers’ virtual currency in so called ‘‘hosted
wallets.’’58 In such arrangements, the third-party wallet host may execute transactions on a blockchain
on behalf of a customer using a private key controlled by the third-party wallet host.59 Other persons do
not use the services of such a third-party, in which case they use the private key controlling their virtual
currency to transact directly on a blockchain.60 Such persons may store the private key in a software
program or written record, often referred to as an ‘‘unhosted wallet.’’61

Virtual currency networks present opportunities as well as risks.62 The G7 Finance Ministers and
Central Bank Governors recently noted that ‘‘[t]he widespread adoption of digital payments . . . has the
potential to address frictions in existing payment systems by improving access to financial services,
reducing inefficiencies, and lowering costs.’’63 At the same time, however, virtual currencies are used in
illicit financial activity that presents substantial national security concerns.64

Determining the true amount of illicit activity that is conducted in virtual currency is challenging.65 One
industry estimate is that approximately 1 percent of overall market transaction volume, or $10 billion, in
virtual currency activity conducted globally in 2019 was illicit.66 This figure, however, may
underestimate such illicit activity.67 Despite significant underreporting due to compliance challenges in
parts of the virtual currency sector, in 2019, FinCEN received approximately $119 billion in suspicious
activity reporting associated with virtual currency activity taking place wholly or in substantial part in the

52 Id.
53 FinCEN, Notice of Proposed Rulemaking: Requirements for Certain Transactions Involving Convertible Virtual Currency

or Digital Assets, https://www.govinfo.gov/content/pkg/FR-2020-12-23/pdf/2020-28437.pdf (last visited Mar. 14, 2021).
54 Id.
55 Id.
56 Id.
57 Id..
58 Id.
59 Id.
60 Id.
61 Id.
62 Id.
63 Id. (citing the G7 Finance Ministers and Central Bank Governors’ Statement on Digital Payments on Oct. 13, 2020).
64 FinCEN Notice of Proposed Rulemaking, supra note 53.
65 Id.
66 Id. (citing Chainalysis, 2020 Crypto Crime Report (Jan. 2020), https://go.chainalysis.com/2020-CryptoCrime-

Report.html).
67 FinCEN Notice of Proposed Rulemaking, supra note 53.
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United States.68 By industry measures, this would equate to approximately 11.9 percent of total virtual
currency market activity being relevant to a possible violation of law or regulation.69

Virtual Currency in Florida Statutes

Currently, Florida law includes virtual currency as a type of monetary instrument under the Florida
Money Laundering Act.70 Thus, Florida law criminalizes the use of virtual currency for illicit purposes in
the same manner that the law criminalizes use of fiat currency for illicit purposes. Under that act,
“‘virtual currency’ means a medium of exchange in electronic or digital format that is not a coin or
currency of the United States or any other country.”71 This definition was added in 201772 and is the
only instance of “virtual currency” in Florida Statutes.

Federal Regulation of MSBs

The Financial Crimes Enforcement Network of the United States Department of Treasury (FinCEN)
serves as the nation’s financial intelligence unit and is charged with safeguarding the United States
financial system from the abuses of money laundering, terrorist financing, and other financial crimes.73
The basic concept underlying FinCEN's core activities is “follow the money” because criminals leave
financial trails as they try to launder the proceeds of crimes or attempt to spend their ill-gotten profits.74
To that end, FinCEN administers the Bank Secrecy Act (BSA).75 BSA regulations require banks and
other financial institutions, including MSBs, to take a number of precautions against financial crime.76
BSA regulations require financial institutions to establish an anti-money laundering program (such as
verifying customer identity), maintain certain records (such as transaction related data), and file reports
(such as suspicious activity reports and currency transaction reports) that have been determined to
have a high degree of usefulness in criminal, tax, and regulatory investigations, as well as in certain
intelligence and counter-terrorism matters.77

Generally, an MSB is required to register with FinCEN, regardless of whether the MSB is licensed with
the state, if it conducts more than $1,000 in business with one person in one or more transactions on
the same day, in one or more of the following services: money orders, traveler’s checks, check cashing,
currency dealing, or exchange.78 However, an MSB must register with FinCEN if it provides money
transfer services in any amount.79

BSA regulations define “money transmission services” as “the acceptance of currency, funds, or other
value that substitutes for currency from one person and the transmission of currency, funds, or other
value that substitutes for currency to another location or person by any means.”80 Depending on the
facts and circumstances surrounding a transaction, a person transmitting virtual currency may fall
under FinCEN’s BSA regulations.81

68 Id. FinCEN notes that a significant majority of this $119 billion related to suspicious activity that took place before 2019

based on subsequent lookbacks. Id. FinCEN anticipates that in the future it will receive additional suspicious activity
reporting for activity that took place in 2019 but that has not yet been recognized as suspicious. Id.
69 Id. Suspicious activity is not a clear indication of a crime but is activity that is potentially illicit. Id.
70 S. 896.101, F.S.
71 Id.
72 Ch. 2017-155, Laws of Fla.
73 FinCEN, What We Do, https://www.fincen.gov/what-we-do (last visited Mar. 14, 2021).
74 Id.
75 Many of the federal provisions of the BSA have been codified in ch. 560, F.S., which has provided OFR with additional

compliance and enforcement tools.
76 FinCEN, supra note 73.
77 Id.
78 31 C.F.R. §§ 1010.100 and 1022.380.
79 Id.
80 31 C.F.R. § 1010.100 (emphasis added).
81 FinCEN Guidance, Application of FinCEN’s Regulations to Certain Business Models Involving Convertible Virtual

Currencies, FIN-2019-G001 (May 9, 2019), https://www.fincen.gov/sites/default/files/2019-
05/FinCEN%20Guidance%20CVC%20FINAL%20508.pdf (last visited Mar. 14, 2021); FinCEN Notice of Proposed
Rulemaking, supra note 53.
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Federal law criminalizes money transmission if the money transmitting business:82
 Is operated without a license in a state where such unlicensed activity is subject to criminal
sanctions;
 Fails to register with FinCEN; or
 Otherwise involves the transportation or transmission of funds that are known to have been
derived from a criminal offense or are intended to be used to promote or support unlawful
activity.

Effect of the Bill

The bill makes the following changes to definitions in ch. 560, F.S.:
 Amends the definition of “electronic instrument” to replace the undefined term “money” with the
defined term “currency”. Leaving an undefined term such as “money” in statute may lead to
confusion as to whether the term includes virtual currency. The definition of “electronic
instrument” is also reworded for clarity.
 Excludes virtual currency from the definition of “monetary value” in order to narrow the
regulation of virtual currency to only regulations for money transmitters but not other types of
licenses under ch. 560, F.S.
 Amends the definition of “money transmitter” to expressly include virtual currency and to clarify
that a money transmitter license is only required for a person acting an intermediary between
two parties; neither person in a two-party transaction is required to be licensed.
 Amends the definition of “payment instrument” to replace the undefined term “money” with the
defined term “currency”. Leaving an undefined term such as “money” in statute may lead to
confusion as to whether the term includes virtual currency. The definition of “payment
instrument” is also amended to clarify that the term means an instrument that is utilized for the
transmission, exchange, or payment of currency or monetary value, but a payment instrument is
not the currency or monetary value itself.
 Amends the definition of “stored value” to replace the undefined term “funds” with the defined
term “currency”. Leaving an undefined term such as “funds” in statute may lead to confusion as
to whether the term includes virtual currency.
 Adds the following definition of “virtual currency” – Virtual currency means a medium of
exchange in electronic or digital format that is not currency. The term does not include a
medium of exchange in electronic or digital format that is used:
o Solely within online gaming platforms with no market or application outside such gaming
platforms; or
o Exclusively as part of a consumer affinity or rewards program and can be applied solely
as payment for purchases with the issuer or other designated merchants, but cannot be
converted into or redeemed for currency, monetary value, or virtual currency.

The bill amends the prohibition on unlicensed money transmitter activity and payment instrument
selling in order to better align the wording with the definition of payment instrument seller. One element
of the prohibition is that a person is doing such activity for compensation, and “compensation” includes
profit or loss on the exchange of currency. The bill adds that “compensation” includes profit or loss on
the exchange of monetary value or virtual currency.

The bill amends the permissible investments statute in relation to virtual currency. Under current law, a
money transmitter must possess permissible investments, such as cash and certificates of deposit, with
an aggregate market value of at least the aggregate face amount of all outstanding money
transmissions. Without an amendment to this statute, the effect would be to require a money
transmitter that transmits virtual currency to not only have control over the virtual currency being
transmitted but also hold the equivalent value in cash or other assets on the list of permissible
investments. Instead, the bill would only require that, during the period of transmission, the money
transmitter must hold virtual currency of the same type and amount owed or obligated to the other
location or person on the receiving end of the transmission.

82 31 U.S.C. § 1960.
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The bill makes conforming changes under the Financial Technology Sandbox in s. 559.952, F.S.

The bill provides an effective date of January 1, 2022.

B. SECTION DIRECTORY:
Section 1. Amends s. 559.952, F.S., relating to Financial Technology Sandbox.

Section 2. Amends s. 560.103, F.S., relating to definitions.

Section 3. Amends s. 560.204, F.S., relating to license required.

Section 4. Amends s. 560.210, F.S., relating to permissible investments.

Section 5. Provides an effective date of January 1, 2022.

II. FISCAL ANALYSIS & ECONOMIC IMPACT STATEMENT

A. FISCAL IMPACT ON STATE GOVERNMENT:

1. Revenues:
See Fiscal Comments.

2. Expenditures:
See Fiscal Comments.

B. FISCAL IMPACT ON LOCAL GOVERNMENTS:

1. Revenues:
None.

2. Expenditures:
None.

C. DIRECT ECONOMIC IMPACT ON PRIVATE SECTOR:
The bill provides regulatory clarity as to the way in which virtual currency is regulated under ch. 560,
F.S. To the extent that the Espinoza case may have caused some businesses to become licensed out
of an abundance of caution when buying and selling virtual currency in two-party transactions, the
regulatory clarity provided by the bill may result in such businesses foregoing licensure. Additionally,
the bill may lead to greater protection for consumers transacting in virtual currency through third-party
intermediaries. The bill’s overall impact on the private sector, while likely positive, is indeterminate.

D. FISCAL COMMENTS:
The fiscal impact to the state is indeterminate. The regulatory clarity provided by the bill may lead to
more money transmitter licensees, especially those that deal in virtual currency. However, to the extent
that the Espinoza case may have caused some businesses to become licensed out of an abundance of
caution when buying and selling virtual currency in two-party transactions, the regulatory clarity
provided by the bill may result in such businesses foregoing licensure. The potential number of
additional licensees and corresponding expenses for oversight is unknown. While OFR is not currently
requesting additional staff, the agency has noted that it may need to seek additional staffing during
future legislative sessions if the number of new licensees dealing in virtual currency significantly
increases beyond its capacity to absorb the additional workload.83

83 Office of Financial Regulation, Agency Analysis of 2021 House Bill 1351, p. 6-7 (Mar. 4, 2021)
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III. 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:
While the bill contains no directive for OFR to engage in rulemaking, the changes made by the bill may
necessitate amendment to current rules.

C. DRAFTING ISSUES OR OTHER COMMENTS:
The bill should clarify that a money transmitter license is only required for an intermediary that has
control over the currency, monetary value, payment instrument, or virtual currency in transmission. This
clarification is important especially in the realm of virtual currency. Without this clarification, there may
be confusion as to whether a node on a blockchain network or a computer program that matches
buyers and sellers would count as an intermediary and thus be required to have a money transmitter
license. Additionally, there are other areas of ch. 560, F.S., that should be conformed to the addition of
virtual currency to the regulations. The sponsor has indicated an intent to address these issues.

IV. AMENDMENTS/ COMMITTEE SUBSTITUTE CHANGES

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

HB 1351 2021

1 A bill to be entitled
2 An act relating to money services businesses; amending
3 s. 559.952, F.S.; revising exceptions for a licensee
4 during the Financial Technology Sandbox period;
5 amending s. 560.103, F.S.; revising and providing
6 definitions; amending s. 560.204, F.S.; prohibiting
7 certain activities by a person without obtaining a
8 license; revising the definition of the term
9 "compensation"; amending s. 560.210, F.S.; providing
10 requirements for a money transmitter that receives
11 virtual currency; excluding virtual currency in the
12 calculation of permissible investments; providing an
13 effective date.
14
15 Be It Enacted by the Legislature of the State of Florida:
16
17 Section 1. Paragraph (a) of subsection (4) of section
18 559.952, Florida Statutes, is amended to read:
19 559.952 Financial Technology Sandbox.—
20 (4) EXCEPTIONS TO GENERAL LAW AND WAIVERS OF RULE
21 REQUIREMENTS.—
22 (a) Notwithstanding any other law, upon approval of a
23 Financial Technology Sandbox application, the following
24 provisions and corresponding rule requirements are not
25 applicable to the licensee during the sandbox period:

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HB 1351 2021

26 1. Section 516.03(1), except for the application fee, the
27 investigation fee, the requirement to provide the social
28 security numbers of control persons, evidence of liquid assets
29 of at least $25,000, and the office's authority to investigate
30 the applicant's background. The office may prorate the license
31 renewal fee for an extension granted under subsection (7).
32 2. Section 516.05(1) and (2), except that the office shall
33 investigate the applicant's background.
34 3. Section 560.109, only to the extent that the section
35 requires the office to examine a licensee at least once every 5
36 years.
37 4. Section 560.118(2).
38 5. Section 560.125(1), only to the extent that the
39 subsection would prohibit a licensee from engaging in the
40 business of a money transmitter or payment instrument seller
41 during the sandbox period.
42 6. Section 560.125(2), only to the extent that the
43 subsection would prohibit a licensee from appointing an
44 authorized vendor during the sandbox period. Any authorized
45 vendor of such a licensee during the sandbox period remains
46 liable to the holder or remitter.
47 7. Section 560.128.
48 8. Section 560.141, except for s. 560.141(1)(a)1., 3., 7.-
49 10. and (b), (c), and (d).
50 9. Section 560.142(1) and (2), except that the office may

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HB 1351 2021

51 prorate, but may not entirely eliminate, the license renewal
52 fees in s. 560.143 for an extension granted under subsection
53 (7).
54 10. Section 560.143(2), only to the extent necessary for
55 proration of the renewal fee under subparagraph 9.
56 11. Section 560.204(1), only to the extent that the
57 subsection would prohibit a licensee from engaging in, or
58 advertising that it engages in, the selling or issuing of
59 payment instruments or in the activity of a payment instrument
60 seller or money transmitter during the sandbox period.
61 12. Section 560.205(2).
62 13. Section 560.208(2).
63 14. Section 560.209, only to the extent that the office
64 may modify, but may not entirely eliminate, the net worth,
65 corporate surety bond, and collateral deposit amounts required
66 under that section. The modified amounts must be in such lower
67 amounts that the office determines to be commensurate with the
68 factors under paragraph (5)(c) and the maximum number of
69 consumers authorized to receive the financial product or service
70 under this section.
71 Section 2. Subsections (14), (21), (23), (29), and (35) of
72 section 560.103, Florida Statutes, are amended, and subsection
73 (36) is added to that section, to read:
74 560.103 Definitions.—As used in this chapter, the term:
75 (14) "Electronic instrument" means a card, tangible

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76 object, or other form of electronic payment used for the
77 transmission, or payment, of money or the exchange of currency
78 or monetary value, including a stored value card or device that
79 contains a microprocessor chip, magnetic stripe, or other means
80 for storing information; that is prefunded; and for which the
81 value is decremented upon each use.
82 (21) "Monetary value" means a medium of exchange, other
83 than virtual currency, regardless of whether it is or not
84 redeemable in currency.
85 (23) "Money transmitter" means a corporation, limited
86 liability company, limited liability partnership, or foreign
87 entity qualified to do business in this state which receives
88 currency, monetary value, a or payment instrument, or virtual
89 currency instruments for the purpose of acting as an
90 intermediary to transmit currency, monetary value, a payment
91 instrument, or virtual currency from one person to another
92 location or person transmitting the same by any means, including
93 transmission by wire, facsimile, electronic transfer, courier,
94 the Internet, or through bill payment services or other
95 businesses that facilitate such transfer within this country, or
96 to or from this country.
97 (29) "Payment instrument" means a check, draft, warrant,
98 money order, travelers check, electronic instrument, or other
99 instrument utilized for the transmission, exchange, or payment
100 of currency money, or monetary value, regardless of whether it

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101 is or not negotiable. The term does not include an instrument
102 that is redeemable by the issuer in merchandise or service, a
103 credit card voucher, or a letter of credit.
104 (35) "Stored value" means currency funds or monetary value
105 represented in digital electronic format, regardless of whether
106 it is or not specially encrypted, and stored or capable of
107 storage on electronic media in such a way as to be retrievable
108 and transferred electronically.
109 (36) "Virtual currency" means a medium of exchange in
110 electronic or digital format that is not currency as defined in
111 subsection (11). The term does not include a medium of exchange
112 in electronic or digital format that is used:
113 (a) Solely within online gaming platforms with no market
114 or application outside such gaming platforms; or
115 (b) Exclusively as part of a consumer affinity or rewards
116 program and can be applied solely as payment for purchases with
117 the issuer or other designated merchants, but cannot be
118 converted into or redeemed for currency, monetary value, or
119 virtual currency.
120 Section 3. Subsection (1) of section 560.204, Florida
121 Statutes, is amended to read:
122 560.204 License required.—
123 (1) Unless exempted, a person may not engage in, or in any
124 manner advertise that they engage in, the selling or issuing of
125 payment instruments or in the activity of a payment instrument

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126 seller or money transmitter, for compensation, without first
127 obtaining a license under this part. For purposes of this
128 subsection section, the term "compensation" includes profit or
129 loss on the exchange of currency, monetary value, or virtual
130 currency.
131 Section 4. Subsections (2) and (3) of section 560.210,
132 Florida Statutes, are renumbered as subsections (3) and (4),
133 respectively, and a new subsection (2) is added to that section
134 to read:
135 560.210 Permissible investments.—
136 (2) Each money transmitter that receives virtual currency,
137 either directly or through an authorized vendor, for the purpose
138 of transmitting such virtual currency from one person to another
139 location or person must at all times hold virtual currency of
140 the same type and amount owed or obligated to the other location
141 or person. Virtual currency received and held under this
142 subsection is not included in the amount of outstanding money
143 transmissions for purposes of calculating the permissible
144 investments required by subsection (1).
145 Section 5. This act shall take effect January 1, 2022.

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INSURANCE & BANKING SUBCOMMITTEE

HB 1351 by Rep. Aloupis
Money Services Businesses

AMENDMENT SUMMARY
March 17, 2021

Amendment 1 by Rep. Aloupis (Line 96): The amendment:
• Clarifies that a money transmitter license is only required for an intermediary that has
control over the currency, monetary value, payment instrument, or virtual currency in
transmission. This clarification is important especially in the realm of virtual currency.
Without this clarification, there may be confusion as to whether a node on a blockchain
network or a computer program that matches buyers and sellers would count as an
intermediary and thus be required to have a money transmitter license.
• Conforms other sections of ch. 560, F.S., to reflect the addition of virtual currency to the
regulations.
COMMITTEE/SUBCOMMITTEE AMENDMENT
Bill No. HB 1351 (2021)
Amendment No. 1

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

1 Committee/Subcommittee hearing bill: Insurance & Banking
2 Subcommittee
3 Representative Aloupis offered the following:
4
5 Amendment (with title amendment)
6 Remove lines 96-144 and insert:
7 to or from this country. The term includes only an intermediary
8 that has the ability to unilaterally execute or indefinitely
9 prevent a transaction.
10 (29) "Payment instrument" means a check, draft, warrant,
11 money order, travelers check, electronic instrument, or other
12 instrument used for the transmission, exchange, or payment of
13 currency money, or monetary value, regardless of whether it is
14 or not negotiable. The term does not include an instrument that
15 is redeemable by the issuer in merchandise or service, a credit
16 card voucher, or a letter of credit.
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Bill No. HB 1351 (2021)
Amendment No. 1

17 (35) "Stored value" means currency funds or monetary value
18 represented in digital electronic format, regardless of whether
19 it is or not specially encrypted, and stored or capable of
20 storage on electronic media in such a way as to be retrievable
21 and transferred electronically.
22 (36) "Virtual currency" means a medium of exchange in
23 electronic or digital format that is not currency. The term does
24 not include a medium of exchange in electronic or digital format
25 that is used:
26 (a) Solely within online gaming platforms with no market
27 or application outside such gaming platforms; or
28 (b) Exclusively as part of a consumer affinity or rewards
29 program and can be applied solely as payment for purchases with
30 the issuer or other designated merchants, but cannot be
31 converted into or redeemed for currency, monetary value, or
32 virtual currency.
33 Section 3. Subsections (2), (3), and (4) and paragraphs
34 (b), (c), and (d) of subsection (8) of section 560.123, Florida
35 Statutes, are amended to read:
36 560.123 Florida Control of Money Laundering in Money
37 Services Business Act.—
38 (2) The purpose of this section is to require the
39 maintenance of certain records of transactions involving
40 currency, monetary value, or payment instruments, or virtual
41 currency in order to deter the use of a money services business
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Bill No. HB 1351 (2021)
Amendment No. 1

42 to conceal proceeds from criminal activity and to ensure the
43 availability of such records for criminal, tax, or regulatory
44 investigations or proceedings.
45 (3) A money services business shall keep a record, as
46 prescribed by the commission, of each financial transaction
47 occurring in this state which it knows to involve currency,
48 monetary value, a or other payment instrument, or virtual
49 currency as prescribed by the commission, having a value greater
50 than $10,000; to involve the proceeds of specified unlawful
51 activity; or to be designed to evade the reporting requirements
52 of this section or chapter 896. The money services business must
53 maintain appropriate procedures to ensure compliance with this
54 section and chapter 896.
55 (a) Multiple financial transactions shall be treated as a
56 single transaction if the money services business has knowledge
57 that they are made by or on behalf of any one person and result
58 in value cash in or value cash out totaling a value of more than
59 $10,000 during any day.
60 (b) A money services business may keep a record of any
61 financial transaction occurring in this state, regardless of the
62 value, if it suspects that the transaction involves the proceeds
63 of unlawful activity.
64 (c) The money services business must file a report with
65 the office of any records required by this subsection, at such
66 time and containing such information as required by rule. The
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Bill No. HB 1351 (2021)
Amendment No. 1

67 timely filing of the report required by 31 U.S.C. s. 5313 with
68 the appropriate federal agency shall be deemed compliance with
69 the reporting requirements of this subsection unless the reports
70 are not regularly and comprehensively transmitted by the federal
71 agency to the office.
72 (d) A money services business, or officer, employee, or
73 agent thereof, that files a report in good faith pursuant to
74 this section is not liable to any person for loss or damage
75 caused in whole or in part by the making, filing, or
76 governmental use of the report, or any information contained
77 therein.
78 (4) A money services business must comply with the money
79 laundering, enforcement, and reporting provisions of s. 655.50
80 relating to reports of transactions involving currency
81 transactions and payment instruments, as applicable, and of
82 chapter 896 concerning offenses relating to financial
83 transactions.
84 (8)
85 (b) A person who willfully violates any provision of this
86 section, if the violation involves:
87 1. Currency, monetary value, or payment instruments, or
88 virtual currency of a value exceeding $300 but less than $20,000
89 in any 12-month period, commits a felony of the third degree,
90 punishable as provided in s. 775.082, s. 775.083, or s. 775.084.

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Amendment No. 1

91 2. Currency, monetary value, or payment instruments, or
92 virtual currency of a value totaling or exceeding $20,000 but
93 less than $100,000 in any 12-month period, commits a felony of
94 the second degree, punishable as provided in s. 775.082, s.
95 775.083, or s. 775.084.
96 3. Currency, monetary value, or payment instruments, or
97 virtual currency of a value totaling or exceeding $100,000 in
98 any 12-month period, commits a felony of the first degree,
99 punishable as provided in s. 775.082, s. 775.083, or s. 775.084.
100 (c) In addition to the penalties authorized by s. 775.082,
101 s. 775.083, or s. 775.084, a person who has been convicted of,
102 or entered a plea of guilty or nolo contendere, regardless of
103 adjudication, to having violated paragraph (b) may be sentenced
104 to pay a fine of up to the greater of $250,000 or twice the
105 value of the currency, monetary value, or payment instruments,
106 or virtual currency whichever is greater, except that on a
107 second or subsequent conviction for or plea of guilty or nolo
108 contendere, regardless of adjudication, to a violation of
109 paragraph (b), the fine may be up to the greater of $500,000 or
110 quintuple the value of the currency, monetary value, or payment
111 instruments, or virtual currency whichever is greater.
112 (d) A person who violates this section is also liable for
113 a civil penalty of up to not more than the greater of the value
114 of the currency, monetary value, or payment instruments, or
115 virtual currency involved or $25,000.
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Bill No. HB 1351 (2021)
Amendment No. 1

116 Section 4. Subsections (5), (6), and (7) of section
117 560.125, Florida Statutes, are amended to read:
118 560.125 Unlicensed activity; penalties.—
119 (5) A person who violates this section, if the violation
120 involves:
121 (a) Currency, monetary value, or payment instruments, or
122 virtual currency of a value exceeding $300 but less than $20,000
123 in any 12-month period, commits a felony of the third degree,
124 punishable as provided in s. 775.082, s. 775.083, or s. 775.084.
125 (b) Currency, monetary value, or payment instruments, or
126 virtual currency of a value totaling or exceeding $20,000 but
127 less than $100,000 in any 12-month period, commits a felony of
128 the second degree, punishable as provided in s. 775.082, s.
129 775.083, or s. 775.084.
130 (c) Currency, monetary value, or payment instruments, or
131 virtual currency of a value totaling or exceeding $100,000 in
132 any 12-month period, commits a felony of the first degree,
133 punishable as provided in s. 775.082, s. 775.083, or s. 775.084.
134 (6) In addition to the penalties authorized by s. 775.082,
135 s. 775.083, or s. 775.084, a person who has been convicted of,
136 or entered a plea of guilty or nolo contendere to, having
137 violated this section may be sentenced to pay a fine of up to
138 the greater of $250,000 or twice the value of the currency,
139 monetary value, or payment instruments, or virtual currency
140 whichever is greater, except that on a second or subsequent
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Amendment No. 1

141 violation of this section, the fine may be up to the greater of
142 $500,000 or quintuple the value of the currency, monetary value,
143 or payment instruments, or virtual currency whichever is
144 greater.
145 (7) A person who violates this section is also liable for
146 a civil penalty of up to the greater of not more than the value
147 of the currency, monetary value, or payment instruments, or
148 virtual currency involved or $25,000, whichever is greater.
149 Section 5. Subsection (1) of section 560.204, Florida
150 Statutes, is amended to read:
151 560.204 License required.—
152 (1) Unless exempted, a person may not engage in, or in any
153 manner advertise that they engage in, the selling or issuing of
154 payment instruments or in the activity of a payment instrument
155 seller or money transmitter, for compensation, without first
156 obtaining a license under this part. For purposes of this
157 subsection section, the term "compensation" includes profit or
158 loss on the exchange of currency, monetary value, or virtual
159 currency.
160 Section 6. Subsections (5) and (6) of section 560.208,
161 Florida Statutes, are amended to read:
162 560.208 Conduct of business.—In addition to the
163 requirements specified in s. 560.1401, a licensee under this
164 part:

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Amendment No. 1

165 (5) Shall, in the normal course of business, ensure that
166 currency, monetary value, payment instruments, or virtual
167 currency money transmitted is available to the designated
168 recipient within 10 business days after receipt.
169 (6) Shall immediately upon receipt of currency, monetary
170 value, a or payment instrument, or virtual currency provide a
171 confirmation or sequence number to the customer verbally, by
172 paper, or electronically.
173 Section 7. Paragraph (b) of subsection (2) of section
174 560.2085, Florida Statutes, is amended to read:
175 560.2085 Authorized vendors.—A licensee under this part
176 shall:
177 (2) Enter into a written contract, signed by the licensee
178 and the authorized vendor, which:
179 (b) Includes contract provisions that require the
180 authorized vendor to:
181 1. Report to the licensee, immediately upon discovery, the
182 theft or loss of currency, monetary value, a payment instrument,
183 or virtual currency received for a transmission or for a payment
184 instrument sold;
185 2. Display a notice to the public, in such form as
186 prescribed by rule, that the vendor is the authorized vendor of
187 the licensee;
188 3. Remit all amounts owed to the licensee for all
189 transmissions accepted and all payment instruments sold in
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Amendment No. 1

190 accordance with the contract between the licensee and the
191 authorized vendor;
192 4. Hold in trust all currency, monetary value, or payment
193 instruments, or virtual currency received for transmissions or
194 for the purchase of payment instruments from the time of receipt
195 by the licensee or authorized vendor until the time the
196 transmission obligation is completed;
197 5. Not commingle the currency, monetary value, payment
198 instruments, or virtual currency money received for
199 transmissions accepted or payment instruments sold on behalf of
200 the licensee with the assets money or property of the authorized
201 vendor, except for making change in the ordinary course of the
202 vendor's business;, and
203 6. Ensure that the currency, monetary value, payment
204 instruments, or virtual currency received for transmissions
205 accepted or payment instruments sold money is accounted for at
206 the end of the business day;
207 7 6. Consent to examination or investigation by the
208 office;
209 8 7. Adhere to the applicable state and federal laws and
210 rules pertaining to a money services business; and
211 9 8. Provide such other information or disclosure as may
212 be required by rule.
213 Section 8. Subsections (2) and (3) of section 560.210,
214 Florida Statutes, are renumbered as subsections (3) and (4),
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Amendment No. 1

215 respectively, and a new subsection (2) is added to that section,
216 to read:
217 560.210 Permissible investments.—
218 (2) Each money transmitter that receives virtual currency,
219 either directly or through an authorized vendor, for the purpose
220 of transmitting such virtual currency from one person to another
221 location or person must at all times hold virtual currency of
222 the same type and amount owed or obligated to the other location
223 or person. Virtual currency received and held under this
224 subsection is not included in the amount of outstanding money
225 transmissions for purposes of calculating the permissible
226 investments required by subsection (1).
227 Section 9. Paragraphs (a), (e), and (f) of subsection (1)
228 of section 560.211, Florida Statutes, are amended, and paragraph
229 (j) is added, to that subsection read:
230 560.211 Required records.—
231 (1) In addition to the record retention requirements under
232 s. 560.1105, each licensee under this part must make, keep, and
233 preserve the following books, accounts, records, and documents
234 for 5 years:
235 (a) A daily record of payment instruments sold and of
236 currency, monetary value, payment instruments, or virtual
237 currency money transmitted.

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Amendment No. 1

238 (e) Records of outstanding payment instruments and of
239 currency, monetary value, payment instruments, or virtual
240 currency money transmitted.
241 (f) Records of each payment instrument paid and of
242 currency, monetary value, payment instruments, or virtual
243 currency money transmission delivered.
244 (j) Any additional records, as prescribed by rule, related
245 to virtual currency.
246 Section 10. Section 560.212, Florida Statutes, is amended
247 to read:
248 560.212 Financial liability.—A licensee under this part is
249 liable for the payment of all currency, monetary value, payment
250 instruments, or virtual currency money transmitted and payment
251 instruments that it sells, in whatever form and whether directly
252 or through an authorized vendor, as the maker, drawer, or
253 principal thereof, regardless of whether such item is negotiable
254 or nonnegotiable.
255
256 -----------------------------------------------------
257 T I T L E A M E N D M E N T
258 Remove lines 6-12 and insert:
259 definitions; amending s. 560.123, F.S.; revising the
260 purpose of the Florida Control of Money Laundering in
261 Money Services Business Act; revising the duties of
262 money services businesses; amending s. 560.125, F.S.;
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Amendment No. 1

263 revising the violations of money services business
264 activities; amending s. 560.204, F.S.; revising
265 certain prohibited activities without a license;
266 revising the definition of the term "compensation";
267 amending s. 560.208, F.S.; revising requirements for a
268 money transmitter or payment instrument seller to
269 conduct business; amending s. 560.2085, F.S.; revising
270 requirements for a written contract between a money
271 transmitter or payment instrument seller and an
272 authorized vendor; amending s. 560.210, F.S.;
273 providing requirements for a money transmitter that
274 receives virtual currency; excluding virtual currency
275 in the calculation of permissible investments;
276 amending s. 560.211, F.S.; revising recordkeeping
277 requirements for a money transmitter or payment
278 instrument seller; amending s. 560.212, F.S.; revising
279 financial liability requirements for a money
280 transmitter or payment instrument seller; providing an

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