Meeting Packet - Commerce Committee (March 24, 2021)
Summary
A meeting packet of the Commerce Committee of the Florida House of Representatives for Wednesday, March 24, 2021, 9:30 AM to 11:15 AM in Webster Hall, with Blaise Ingoglia as Chair. The agenda lists consideration of CS/HB 621, HB 665, CS/HB 695, CS/HB 717, HB 737, CS/HB 1059, HB 1143 and CS/HB 6077. The packet includes a staff analysis of CS/HB 621, Tax Collectors and Their Approved Agents, which says the bill requires tax collectors and their approved license plate agents to enter into a memorandum of understanding with DHSMV on FRVIS use. The analysis states an indeterminate fiscal impact and an effective date of July 1, 2021.
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Commerce Committee
Wednesday, March 24, 2021
9:30 AM - 11:15 AM
Webster Hall (212 Knott)
Meeting Packet
Chris Sprowls Blaise Ingoglia
Speaker Chair
The Florida House of Representatives
Commerce Committee
Chris Sprowls Blaise Ingoglia
Speaker Chair
Meeting Agenda
Wednesday, March 24, 2021
9:30 AM – 11:15 AM
Webster Hall (212 Knott)
I. Call to Order
II. Roll Call
III. Welcome and Opening Remarks
IV. Consideration of the following bill(s):
• CS/HB 621 Tax Collectors and Their Approved Agents by Tourism, Infrastructure & Energy
Subcommittee, Williamson
• HB 665 Homeowners' Association Rental Agreements by McClure
• CS/HB 695 Digital License Plate Pilot Program by Tourism, Infrastructure & Energy
Subcommittee, Duran
• CS/HB 717 Consumer Protection by Insurance & Banking Subcommittee, Clemons
• HB 737 Craft Distilleries by DiCeglie
• CS/HB 1059 Construction Permits by Regulatory Reform Subcommittee, Robinson, W.,
Fischer
• HB 1143 Funding of Aviation Development Projects by Grall
• CS/HB 6077 Assets of an Estate in Administration by Insurance & Banking Subcommittee,
Robinson, W.
V. Closing Remarks
VI. Adjournment
303 House Office Building, 402 South Monroe Street, Tallahassee, FL 32399-1300
(850) 717-4870
CS/HB 621
HOUSE OF REPRESENTATIVES STAFF ANALYSIS
BILL #: CS/HB 621 Tax Collectors and Their Approved Agents
SPONSOR(S): Tourism, Infrastructure & Energy Subcommittee, Williamson
TIED BILLS: IDEN./SIM. BILLS: CS/SB 342
REFERENCE ACTION ANALYST STAFF DIRECTOR or
BUDGET/POLICY CHIEF
1) Tourism, Infrastructure & Energy Subcommittee 15 Y, 0 N, As CS Johnson Keating
2) Infrastructure & Tourism Appropriations 12 Y, 0 N Hicks Davis
Subcommittee
3) Commerce Committee Johnson Hamon
SUMMARY ANALYSIS
County tax collectors serve as the Department of Highway Safety and Motor Vehicles’ (DHSMV) authorized
agents for motor vehicle, mobile home, and vessel titles and registrations. Some counties have contracted with
privately-owned license plate agents (LPAs) to perform title and registration services. Additionally, tax
collectors and their LPAs have access to DHSMV’s Florida Real Time Vehicle Information System (FRVIS).
The bill requires that each LPA protect customer privacy and data collection. The bill requires each tax
collector and his or her approved LPAs to enter into a memorandum of understanding (MOU) with DHSMV
regarding the use of FRVIS.
The bill provides that if a tax collector elects to exercise his or her authority to contract with a private LPA to
provide motor vehicle, mobile home, or vessel title and registration services, the tax collector may determine
additional service charges to be collected by the LPA. The additional service charges must be fully itemized
and disclosed to the person paying the service charge. The LPA must enter into a contract with the tax
collector regarding the disclosure of additional service charges.
The bill has an indeterminate fiscal impact on state and local government. See Fiscal Analysis section for
details.
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:
Current Situation
License Plate Agencies and Fees
Under chapters 320 and 328, F.S. county tax collectors are the Department of Highway Safety and
Motor Vehicles’ (DHSMV’s) authorized agents and may title and register motor vehicles, motor homes,
and vessels.1 When processing these transactions, tax collectors charge and collect fees specified in
state law,2 which are remitted to the state. However, chapters 319, 320, and 328, F.S., also require tax
collectors to retain certain statutorily prescribed service fees and charges.3
Currently 65 counties have elected tax collectors who are constitutional officers. Broward and Miami-
Dade Counties have appointed tax collectors under each county’s charter government. However,
pursuant to section 1(d), Article VIII of the State Constitution, these counties will have elected tax
collectors effective January 7, 2025.4
Sixteen counties have, or until recently had, contracts with privately owned license plate agents (LPAs)
to operate 57 offices that perform title and registration services for motor vehicles, mobile homes, and
vessels. In counties with elected tax collectors, LPAs only charge the fees for those services as
expressly authorized in statute. In these counties, the LPAs may retain all or a portion of the statutorily
authorized service fee that tax collectors are allowed to collect for motor vehicle, mobile home, and
vessel title and registration services, as provided in the contracts between the LPA and the tax
collector.5 The LPAs in Broward and Miami-Dade Counties charge6 fees for motor vehicle, mobile
home, and vessel title and registration fees in addition to the statutory fees authorized in chapters 319,
320, and 328, F.S. The additional fees levied in Broward and Miami-Dade Counties are levied pursuant
to county ordinance and are retained by the LPAs.7
County tax collectors, as DHSMV’s authorized agents, must issue registration certificates, registration
license plates, validation stickers, and mobile home stickers to applicants, and provide to applicants for
each the option to register emergency contact information and the option to be contacted with
information about state and federal benefits available as a result of military service, in accordance with
DHSMV’s rules.8
Florida Real Time Vehicle Information System (FRVIS)
The Florida Real Time Vehicle Information System (FRVIS) is a database application used to title and
register all motor vehicles, mobile homes, and vessels in Florida. The database provides real-time
access to information on every motor vehicle, mobile home, and vessel registered in Florida, including
residential and electronic mailing addresses.9
Section 320.03(4)(b), F.S., requires that FRVIS be installed in every tax collector’s and LPA’s office
according to a schedule established by DHSMV in consultation with the tax collectors and contingent
upon the state providing funds for the system. FRVIS is administered by DHSMV in consultation with
1
County tax collectors are expressly made agents of the state with respect to motor vehicle registration in s. 320.03(1), F.S., and with
respect to vessel registration in s. 328.73(1), F.S.
2
See s. 319.32, F.S., for motor vehicle title fees, s. 320.03, for motor vehicle registration fees, s. 320.04, F.S., as to motor vehicle
service charges, and s. 328.72, F.S., as to vessel registration fees.
3
Department of Highway Safety and Motor Vehicles, Agency Analysis of 2021 House Bill 621, p 2. (February 4, 2021).
4
Id.
5
Id.
6
Formerly the LPAs in Volusia County charged fees. An elected county tax collector took office on January 5, 2021, and the LPA
offices closed by February 4, 2021. Id.
7
Id.
8
Section 320.03(1), F.S.
9
Department of Highway Safety and Motor Vehicles, Agency Analysis of 2021 House Bill 621, p 3. (February 4, 2021).
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the Florida Tax Collectors, Inc., to ensure that each county tax collector’s office is able to operate
FRVIS. Only DHSMV, tax collectors, and LPAs have access to FRVIS. Access to FRVIS is governed
by memoranda of understanding (MOUs) between DHSMV and each county tax collector. If a tax
collector has contracted with an LPA, an additional MOU between DHSMV, the tax collector and the
LPA is created.10
A fee of 50 cents is charged on each motor vehicle, mobile home, and vehicle registration to cover the
cost of FRVIS.11 These fees are deposited into the Highway Safety Operating Trust Fund to be used
exclusively to fund FRVIS.12
Effect of the Bill
The bill amends section 320.03, F.S., to require county tax collectors and their approved license tax
agents to enter into an MOU with DHSMV regarding the use of FRVIS. This codifies existing practice.
The bill also amends sections 319.32(2), 320.04(3), and 328.72(7), F.S., to provide that if a tax
collector elects to exercise his or her authority to contract with an LPA, the tax collector may determine
the additional service charges to be collected by the privately-owned LPAs approved by the tax
collector for motor vehicle, mobile home and vessel title and registration services. The additional
service charges must be fully itemized and disclosed to the person paying service charges to the
license plate agent. The LPA is also required to enter into a contract with the tax collector regarding the
disclosure of additional service changes.
The bill has an effective date of July 1, 2021.
B. SECTION DIRECTORY:
Section 1: Amends section 319.32, F.S., relating to fees; service charge; disposition.
Section 2: Amends section 320.03, F.S., relating to the registration duties of tax collectors.
Section 3: Amends section 320.04, F.S., relating to the registration service charge.
Section 4: Amends section 328.72, F.S., relating to classification, registration, fees and charges;
surcharge, disposition of fees; fines; marine turtle stickers.
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:
Any new LPA office would be required to have access to FRVIS to perform motor vehicle, mobile
home, and vessel title and registration services. The programming costs associated with allowing
access to FRVIS can be absorbed within existing resources.
However, if the bill results in more tax collectors using LPAs or additional LPA offices being
established, DHSMV’s recurring costs for replacing equipment in tax collectors’ and LPAs’ offices,
10
Id. at. 3-4. (January 14, 2021).
11
See ss. 320.03(5) and 328.73(3), F.S.
12
Department of Highway Safety and Motor Vehicles, Agency Analysis of 2021 House Bill 621, pp. 3-4. (February 4, 2021).
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as required by section 320.03, F.S., may increase. This could have a negative impact on the ability
of the Highway Safety Operating Trust Fund to meet all of the cost obligations for FRVIS and other
trust fund purposes.13 The potential of incurring such future costs cannot be quantified and is
indeterminate.
B. FISCAL IMPACT ON LOCAL GOVERNMENTS:
1. Revenues:
Indeterminate. To the extent that a tax collector performs a smaller share of title and registration
work in his or her county and an LPA performs a greater share, the tax collector may retain a larger
share of the statutorily authorized fees for such work, if those fees are not shared with the LPA.14
2. Expenditures:
Indeterminate. To the extent that a county tax collector performs less title and registration work in
his or her county and an LPA performs a greater share, the tax collector’s expenditures for
performing such work may decrease.15
C. DIRECT ECONOMIC IMPACT ON PRIVATE SECTOR:
Indeterminate. County tax collectors will determine the additional service charges that must be
collected from LPAs. Use of an LPA is optional to the consumer.
D. FISCAL COMMENTS:
None.
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 revenue in the aggregate; or reduce the percentage of state tax shared with counties or
municipalities.
2. Other:
Fees
Article VII, section 19 of the Florida Constitution requires the imposition, authorization, or raising of a
state tax or fee be contained in a separate bill that contains no other subject and be approved by
two-thirds of the membership of each house of the Legislature. Article VII, section 19 of the Florida
Constitution may apply if the provisions of the bill that authorize county tax collectors to establish
additional service charges for LPAs are determined to authorize a new state fee.
B. RULE-MAKING AUTHORITY:
The bill does not provide a grant of rulemaking, nor does it require rulemaking.
C. DRAFTING ISSUES OR OTHER COMMENTS:
None.
13
Department of Highway Safety and Motor Vehicles, Agency Analysis of 2021 HB 621 342, p. 5. (January 14, 2021).
14
Id.
15
Id.
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IV. AMENDMENTS/ COMMITTEE SUBSTITUTE CHANGES
On March 9, 2021, the Transportation, Infrastructure & Energy Subcommittee adopted a strike-all amendment
and reported the bill favorably as a committee substitute. The committee substitute.
Clarifies that provisions authorizing a tax collector to contract with license plate agents are permissive.
Provides that the tax collector may determine the additional service charges collected by license plate
agents.
Reorganizes the bill’s provisions to place them in statutory order.
This analysis is drafted to the committee substitute as approved by the Transportation, Infrastructure & Energy
subcommittee.
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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
CS/HB 621 2021
1 A bill to be entitled
2 An act relating to tax collectors and their approved
3 agents; amending s. 319.32, F.S.; authorizing tax
4 collectors to determine service charges collected by
5 privately owned license plate agents for motor vehicle
6 titles; requiring that additional service charges be
7 itemized and disclosed to the person paying them;
8 requiring a license plate agent to enter into a
9 contract with the tax collector for a certain purpose;
10 amending s. 320.03, F.S.; requiring tax collectors and
11 approved license plate agents to enter into a
12 memorandum of understanding with the Department of
13 Highway Safety and Motor Vehicles for a certain
14 purpose; amending s. 320.04, F.S.; authorizing the tax
15 collector to determine service charges collected by
16 privately owned license plate agents for motor vehicle
17 registrations; requiring that additional service
18 charges be itemized and disclosed to the person paying
19 them; requiring a license plate agent to enter into a
20 contract with the tax collector for a certain purpose;
21 amending s. 328.72, F.S.; authorizing the tax
22 collector to determine service charges collected by
23 privately owned license plate agents for vessel
24 registrations and titles; requiring that additional
25 service charges be itemized and disclosed to the
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26 person paying them; requiring a license plate agent to
27 enter into a contract with the tax collector for a
28 certain purpose; providing an effective date.
29
30 Be It Enacted by the Legislature of the State of Florida:
31
32 Section 1. Paragraph (c) is added to subsection (2) of
33 section 319.32, Florida Statutes, to read:
34 319.32 Fees; service charges; disposition.—
35 (2)
36 (c) If a tax collector elects to exercise his or her
37 authority to contract with a license plate agent, the tax
38 collector may determine additional service charges to be
39 collected by the privately owned license plate agents approved
40 by the tax collector. Additional service charges must be fully
41 itemized and disclosed to the person paying the service charges
42 to the license plate agent. The license plate agent shall enter
43 into a contract with the tax collector regarding the disclosure
44 of additional service charges.
45 Section 2. Subsection (5) of section 320.03, Florida
46 Statutes, is amended to read:
47 320.03 Registration; duties of tax collectors;
48 International Registration Plan.—
49 (5) In addition to the fees required under s. 320.08, a
50 fee of 50 cents shall be charged on every license registration
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51 sold to cover the costs of the Florida Real Time Vehicle
52 Information System. The fees collected shall be deposited into
53 the Highway Safety Operating Trust Fund to be used exclusively
54 to fund the system. The fee may only be used to fund the system
55 equipment, software, personnel associated with the maintenance
56 and programming of the system, and networks used in the offices
57 of the county tax collectors as agents of the department and the
58 ancillary technology necessary to integrate the system with
59 other tax collection systems. The department shall administer
60 this program upon consultation with the Florida Tax Collectors,
61 Inc., to ensure that each county tax collector's office is
62 technologically equipped and functional for the operation of the
63 Florida Real Time Vehicle Information System. Tax collectors and
64 their approved license plate agents shall enter into a
65 memorandum of understanding with the department regarding use of
66 the Florida Real Time Vehicle Information System in accordance
67 with paragraph (4)(b). Any designated revenue collected to
68 support functions of the county tax collectors and not used in a
69 given year must remain exclusively in the trust fund as a
70 carryover to the following year.
71 Section 3. Present subsection (3) of section 320.04,
72 Florida Statutes, is redesignated as subsection (4), and a new
73 subsection (3) is added to that section, to read:
74 320.04 Registration service charge.—
75 (3) If a tax collector elects to exercise his or her
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76 authority to contract with a license plate agent, the tax
77 collector may determine additional service charges to be
78 collected by privately owned license plate agents approved by
79 the tax collector. Additional service charges must be fully
80 itemized and disclosed to the person paying the service charges
81 to the license plate agent. The license plate agent shall enter
82 into a contract with the tax collector regarding the disclosure
83 of additional service charges.
84 Section 4. Subsection (7) of section 328.72, Florida
85 Statutes, is amended to read:
86 328.72 Classification; registration; fees and charges;
87 surcharge; disposition of fees; fines; marine turtle stickers.—
88 (7) SERVICE FEE.—
89 (a) In addition to other registration fees, the vessel
90 owner shall pay the tax collector a $2.25 service fee for each
91 registration issued, replaced, or renewed. Except as provided in
92 subsection (15), all fees, other than the service charge,
93 collected by a tax collector must be remitted to the department
94 not later than 7 working days following the last day of the week
95 in which the money was remitted. Vessels may travel in salt
96 water or fresh water.
97 (b) If a tax collector elects to exercise his or her
98 authority to contract with a license plate agent, the tax
99 collector may determine additional service charges to be
100 collected by privately owned license plate agents approved by
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101 the tax collector. Additional service charges must be fully
102 itemized and disclosed to the person paying the service charges
103 to the license plate agent. The license plate agent shall enter
104 into a contract with the tax collector regarding the disclosure
105 of additional service charges.
106 Section 5. This act shall take effect July 1, 2021.
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HB 665
HOUSE OF REPRESENTATIVES STAFF ANALYSIS
BILL #: HB 665 Homeowners' Association Rental Agreements
SPONSOR(S): McClure
TIED BILLS: IDEN./SIM. BILLS: SB 872
REFERENCE ACTION ANALYST STAFF DIRECTOR or
BUDGET/POLICY CHIEF
1) Regulatory Reform Subcommittee 15 Y, 0 N Thompson Anstead
2) Civil Justice & Property Rights Subcommittee 17 Y, 1 N Mawn Jones
3) Commerce Committee Thompson Hamon
SUMMARY ANALYSIS
Chapter 720, F.S., also known as the “Homeowners’ Association Act,” governs homeowners’ associations
(HOAs) in Florida. The powers and duties of an HOA include the powers and duties provided in ch. 720, F.S.,
and in the HOA governing documents and amendments thereto, which generally apply to all owners.
When an HOA adopts an amendment to its governing documents to restrict members from renting parcels,
such restriction applies to all parcel owners, regardless of when they acquired title to their parcels. However,
when a condominium (condo) association adopts a rental restriction, the restriction applies only to condo unit
owners who consent to the amendment or who acquire title to their unit after the restriction is imposed. As a
result, this “grandfathering” provision allows certain condo unit owners to rent their units without the burden of
rental restrictions that are imposed prospectively. A similar “grandfathering” provision does not exist for HOAs.
HB 665 provides that, for an HOA with more than 15 parcels, a governing document or a governing document
amendment enacted after July 1, 2021, prohibiting or regulating rental agreements for a term of six months or
more only applies to an owner who:
Acquires title to his or her parcel after the governing document or amendment’s effective date; or
Consents to such governing document or amendment.
However, the bill allows an HOA with more than 15 parcels to amend its governing documents to prohibit or
regulate rental agreements for terms of less than six months and parcel rental for more than three times a
year. Such amendments would apply to all parcel owners.
The bill also specifies that a change of ownership for the purposes of the application of an HOA rental
provision does not occur when a parcel owner conveys the parcel to an affiliated entity or when beneficial
ownership of the parcel does not change.
The bill does not appear to have a fiscal impact on state or local government.
The bill provides 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:
Background
Community Associations
The Florida Division of Condominiums, Timeshares and Mobile Homes (Division), within the
Department of Business and Professional Regulation (DBPR), provides consumer protection for Florida
residents living in regulated communities through education, complaint resolution, mediation,
arbitration, and developer disclosure. The Division has regulatory authority over:
Condominium associations;
Cooperative associations;
Florida mobile home parks and related associations;
Vacation units and timeshares;
Yacht and ship brokers and related business entities; and
Homeowners' associations (limited to arbitration of election and recall disputes).1
Homeowners’ Associations (HOAs)
Chapter 720, F.S., also known as the “Homeowners’ Association Act,” governs certain types of Florida
homeowners’ associations (HOAs), protecting the rights of HOA members without unduly impairing an
HOA’s ability to perform its functions.2 Chapter 720, F.S., provides requirements for notices of
meetings,3 recordkeeping, including which records are accessible to HOA members,4 and financial
reporting.5
An HOA is defined as an association of residential property owners in which voting membership is
comprised of “parcel owners,” membership is a mandatory condition of parcel ownership, and the HOA
is authorized to impose assessments that, if unpaid, may become a lien on the parcel.6
Only HOAs whose covenants and restrictions include mandatory assessments are regulated by ch.
720, F.S.7 Like a condominium or cooperative, an HOA is administered by an elected board of
directors.8 The powers and duties of an HOA include the powers and duties provided in ch. 720, F.S.,
and in the association’s governing documents, which include the recorded covenants and restrictions,
together with the bylaws, articles of incorporation, and duly adopted amendments thereto.9
Florida law sets procedures and minimum requirements for HOA operation and provides for a
mandatory binding arbitration program, administered by the Division, for certain election and recall
disputes,10 but no state agency directly regulates HOAs.
HOA Rental Restrictions
1
Department of Business and Professional Regulation, Division of Florida Condominiums, Timeshares, and Mobile Homes
Complaints/Investigations, http://myfloridalicense.custhelp.com/app/answers/detail/a_id/2220/~/division-of-florida-
condominiums%2C-timeshares%2C-and-mobile-homes (last visited Mar. 12, 2021).
2
S. 720.302(1), F.S.
3
S. 720.303(2), F.S.
4
S. 720.303(4), F.S.
5
S. 720.303(7), F.S.
6
S. 720.301(9), F.S.
7
Id.
8
Ss. 720.303 and 720.307, F.S.
9
Ss. 720.301 and 720.303, F.S.
10
S. 720.306(9)(c), F.S.
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Unless otherwise provided in the governing documents or required by law, an HOA’s governing
documents may be amended by the affirmative vote of two-thirds of the HOA’s voting interests.11
Governing document amendments generally apply to all owners in the HOA, except that HOAs with 15
or fewer parcels may only enforce restrictions against a parcel owner that were in place at the time the
owner acquired his or her parcel.12
Current law does not prevent an HOA from adopting an amendment to its governing documents to
restrict members from renting parcels. If an HOA adopts such a provision, the restriction applies to all
parcel owners regardless of when they obtained title to their parcels or whether they voted against the
restriction.
Conversely, in a condominium association, a rental restriction amendment that alters the duration of the
permissible rental term or limits the number of times a unit owner may rent his or her unit during a
specified period applies only to a unit owner who:
Consents to the amendment; or
Acquires title to his or her unit after the amendment’s effective date.13
Such a provision does not exist for HOA parcel owners.
Effect of Proposed Changes
HB 665 provides that, for an HOA with more than 15 parcels, a governing document or a governing
document amendment enacted after July 1, 2021, prohibiting or regulating rental agreements for a term
of six months or more only applies to an owner who:
Acquires title to his or her parcel after the governing document or amendment’s effective date;
or
Consents to such governing document or amendment.
However, the bill allows an HOA with more than 15 parcels to amend its governing documents to
prohibit or regulate rental agreements for terms of less than six months and parcel rental for more than
three times a year. Such amendments would apply to all parcel owners.
The bill also specifies that a change of ownership for the purposes of the application of an HOA rental
provision does not occur when a parcel owner conveys the parcel to an affiliated entity14 or when
beneficial ownership15 of the parcel does not change. For a conveyance to be recognized as one made
to an affiliated entity, the entity must give the HOA a document certifying that the affiliated entity
provisions apply and, if requested by the HOA, any organizational documents for the parcel owner and
the affiliated entity supporting the certificate’s representations. Ownership does change when, with
respect to a parcel owner that is a business entity, each person that owned an interest in the entity at
the time of the amendment’s enactment conveys his or her interest to an unaffiliated party.
11
S. 720.306(1), F.S.
12
S. 720.303(1), F.S.
13
S. 718.110(13), F.S.
14
“Affiliated entity” means an entity that controls, is controlled by, or is under common control with the parcel owner or that becomes
a parent or successor entity by reason of transfer, merger, consolidation, public offering, reorganization, dissolution or sale of stock, or
transfer of membership partnership interests.
15
“Beneficial ownership” means the natural person who ultimately owns or controls a legal entity or arrangement, such as a
corporation or a trust. Inter-American Development Bank, A Beneficial Ownership Implementation Toolkit,
https://www.oecd.org/tax/transparency/beneficial-ownership-toolkit.pdf (last visited Mar.12, 2021).
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B. SECTION DIRECTORY:
Section 1: Amends s. 720.306, F.S., relating to meetings of members; voting and election
procedures; amendments.
Section 2: 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 ensure that HOA parcel owners who acquire title to their parcels before the enactment of a
long-term rental restriction would not be subject to the restriction unless they consent to it.
D. FISCAL COMMENTS:
None.
III. COMMENTS
A. CONSTITUTIONAL ISSUES:
1. Applicability of Municipality/County Mandates Provision:
Not applicable. The bill does not appear to effect county or municipal governments.
2. Other:
None.
B. RULE-MAKING AUTHORITY:
The bill does not appear to create a need for rulemaking or rulemaking authority.
C. DRAFTING ISSUES OR OTHER COMMENTS:
None.
IV. AMENDMENTS/ COMMITTEE SUBSTITUTE CHANGES
N/A
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DATE: 3/22/2021
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 665 2021
1 A bill to be entitled
2 An act relating to homeowners' associations rental
3 agreements; amending s. 720.306, F.S.; providing
4 applicability for governing documents and amendments
5 relating to rental agreements which are enacted after
6 a specified date; providing an exception; providing
7 applicability; specifying when a change of ownership
8 does or does not occur for certain purposes; defining
9 the term "affiliated entity"; providing an effective
10 date.
11
12 Be It Enacted by the Legislature of the State of Florida:
13
14 Section 1. Paragraph (h) is added to subsection (1) of
15 section 720.306, Florida Statutes, to read:
16 720.306 Meetings of members; voting and election
17 procedures; amendments.—
18 (1) QUORUM; AMENDMENTS.—
19 (h)1. Except as otherwise provided in this paragraph, any
20 governing document, or amendment to a governing document, that
21 is enacted after July 1, 2021, and that prohibits or regulates
22 rental agreements applies only to a parcel owner who acquires
23 title to the parcel after the effective date of the governing
24 document or amendment, or to a parcel owner who consents,
25 individually or through a representative, to the governing
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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 665 2021
26 document or amendment.
27 2. Notwithstanding subparagraph 1., an association may
28 amend its governing documents to prohibit or regulate rental
29 agreements for a term of less than 6 months and may prohibit the
30 rental of a parcel for more than three times in a calendar year,
31 and such amendments shall apply to all parcel owners.
32 3. This paragraph does not affect the amendment
33 restrictions for associations of 15 or fewer parcel owners under
34 s. 720.303(1).
35 4. For purposes of this paragraph, a change of ownership
36 does not occur when a parcel owner conveys the parcel to an
37 affiliated entity or when beneficial ownership of the parcel
38 does not change. For purposes of this subparagraph, the term
39 "affiliated entity" means an entity that controls, is controlled
40 by, or is under common control with the parcel owner or that
41 becomes a parent or successor entity by reason of transfer,
42 merger, consolidation, public offering, reorganization,
43 dissolution or sale of stock, or transfer of membership
44 partnership interests. For a conveyance to be recognized as one
45 made to an affiliated entity, the entity must furnish to the
46 association a document certifying that this paragraph applies
47 and provide any organizational documents for the parcel owner
48 and the affiliated entity which support the representations in
49 the certificate, as requested by the association.
50 5. For purposes of this paragraph, a change of ownership
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51 does occur when, with respect to a parcel owner that is a
52 business entity, each person that owned an interest in the
53 entity at the time of the enactment of the amendment or rule
54 conveys its interest in the business entity to an unaffiliated
55 party.
56 Section 2. This act shall take effect July 1, 2021.
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hb0665-00
COMMERCE COMMITTEE
HB 665 by Rep. McClure
Homeowners’ Associations Rental Agreements
AMENDMENT SUMMARY
March 24, 2021
Amendment 1 by Rep. McClure (lines 37-55):
• Specifies that a change of ownership does not occur when an heir becomes the parcel
owner.
• Clarifies that a change of ownership does occur with regard to a business entity, when
every person that owned an interest in the real property at the time of the enactment of
the amendment or rule conveys their interest in the real property to an unaffiliated
entity.
COMMITTEE/SUBCOMMITTEE AMENDMENT
Bill No. HB 665 (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: Commerce Committee
2 Representative McClure offered the following:
3
4 Amendment
5 Remove lines 37-55 and insert:
6 affiliated entity, when beneficial ownership of the parcel does
7 not change, or when an heir becomes the parcel owner. For
8 purposes of this paragraph, the term "affiliated entity" means
9 an entity that controls, is controlled by, or is under common
10 control with the parcel owner or that becomes a parent or
11 successor entity by reason of transfer, merger, consolidation,
12 public offering, reorganization, dissolution or sale of stock,
13 or transfer of membership partnership interests. For a
14 conveyance to be recognized as one made to an affiliated entity,
15 the entity must furnish to the association a document certifying
16 that this paragraph applies and provide any organizational
598635 - h0665-line 37a1.docx
Published On: 3/23/2021 2:13:28 PM
Page 1 of 2
COMMITTEE/SUBCOMMITTEE AMENDMENT
Bill No. HB 665 (2021)
Amendment No. 1
17 documents for the parcel owner and the affiliated entity which
18 support the representations in the certificate, as requested by
19 the association.
20 5. For purposes of this paragraph, a change of ownership
21 does occur when, with respect to a parcel owner that is a
22 business entity, every person that owned an interest in the real
23 property at the time of the enactment of the amendment or rule
24 conveys their interest in the real property to an unaffiliated
25 entity.
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Published On: 3/23/2021 2:13:28 PM
Page 2 of 2
CS/HB 695
HOUSE OF REPRESENTATIVES STAFF ANALYSIS
BILL #: CS/HB 695 Digital License Plate Pilot Program
SPONSOR(S): Tourism, Infrastructure & Energy Subcommittee, Duran
TIED BILLS: IDEN./SIM. BILLS: SB 862
REFERENCE ACTION ANALYST STAFF DIRECTOR or
BUDGET/POLICY CHIEF
1) Tourism, Infrastructure & Energy Subcommittee 18 Y, 0 N, As CS Johnson Keating
2) Commerce Committee Johnson Hamon
SUMMARY ANALYSIS
Current law requires license plates and validation stickers to be made out of metal retroreflective material and
meet certain statutory requirements regarding size and number of characters allowed on the plate. However,
the Department of Highway Safety and Motor Vehicles (DHSMV) may conduct a pilot program on government
vehicles to evaluate alternative license plates.
Digital license plates are dynamic screens, which may be used to replace the current metal license plate. They
are able to display information such as a license plate number and annual validation of the current license
plate. A digital license plate may also be used for applications such as electronic tolling and broadcasting
emergency alerts.
The bill eliminates DHSMV’s current authority to evaluate alternative license plates through a pilot program and
creates the Digital License Plate Pilot Program. Beginning July 1, 2021, for government vehicles, and July 1,
2022, for all vehicles, DHSMV must implement the program for the purpose of evaluating the design, concepts,
and technology available for digital license plates and the feasibility of digital license plates. The bill authorizes
DHSMV to contract with one or more digital license plate providers, and DHSMV may authorize the display of a
plate number and validation sticker on a digital license plate. DHSMV may authorize the use of digital license
plates for toll collection, if approved by the Department of Transportation or other appropriate tolling authority,
and parking permits. DHSMV may establish procedures for displaying emergency alerts, static logo displays,
and other displays on the license plate.
The bill requires that, before purchasing a digital license plate, the vehicle owner must purchase a metal
license plate from DHSMV and pay all applicable motor vehicle fees. The bill also provides requirements for
the digital license plate and requires providers to maintain an inventory of digital license plates, make available
digital versions of each specialty license plate, and update the vehicle’s registration in real time.
Assuming that most of the programming is between the digital license plate provider and the consumer, the bill
will have an insignificant impact on DHSMV expenditures. See Fiscal Analysis for details.
The bill is effective upon becoming a law.
This document does not reflect the intent or official position of the bill sponsor or House of Representatives .
STORAGE NAME: h0695b.COM
DATE: 3/22/2021
FULL ANALYSIS
I. SUBSTANTIVE ANALYSIS
A. EFFECT OF PROPOSED CHANGES:
Current Situation
Florida law requires registration license plates to be made of metal specially treated with a
retroreflection material. The registration license plate must be designed to increase nighttime visibility
and legibility and must be at least 6 inches tall and not less than 12 inches in wide, unless a plate with
reduced dimensions is deemed necessary by the Department of Highway Safety and Motor Vehicles
(DHSMV) to accommodate motorcycles, mopeds, or similar smaller vehicles. Annual validation stickers
must also be treated with a retroreflection material and must adhere to the license plate.1
The license plate must be imprinted with a combination of bold letters and numerals, not to exceed
seven digits, to identify the registration license plate number. The license plate must be imprinted with
the word “Florida” at the top and the name of the county in which it is sold, the state motto, or the words
“Sunshine State” at the bottom. Any county may, upon majority vote of the county commission, elect to
have the county name removed from the license plates sold in that county. The state motto or the
words “Sunshine State” must be printed in lieu of the county name.2
Under current law, DHSMV may conduct a pilot program to evaluate the designs, concepts, and
technologies for alternative license plates. For purposes of the pilot program, DHSMV must investigate
the feasibility and use of alternative license plate technologies and the long-term cost impact to the
consumer. A pilot program is limited to license plates that are used on government-owned motor
vehicles. Such license plates are exempt from statutory requirements providing the design and material
requirement for license plates.3 DHSMV has had this authority since 2012, but has not conducted a
pilot program.
Under current law, PRIDE, Inc.,4 may manufacture license plates and validation stickers for DHSMV.
DHSMV is not required to obtain competitive bids in order to contract with the corporation.5
Section 320.07, F.S., provides for the expiration of a motor vehicle registration and the required
renewal. The statute provides penalties for operating a motor vehicle without a registration license plate
or validation sticker. The penalties are as follows:
Any person whose motor vehicle or mobile home registration has been expired for a period of
six months or less commits a noncriminal traffic infraction, punishable as a nonmoving violation.
Any person whose motor vehicle or mobile home registration has been expired for more than
six months, upon a first offense, is subject to the penalty provided in s. 318.14, F.S.6
Any person whose motor vehicle or mobile home registration has been expired for more than
six months, upon a second or subsequent offense, commits a misdemeanor of the second
degree.7
Digital License Plates
Digital license plates are dynamic screens that may replace the current physical license plate. They are
able to display information such as a license plate number and validation of the current license plate.
1
S. 320.06(3)(a), F.S.
2
Id.
3
S. 320.06(5), F.S.
4
PRIDE, Inc. is the corporation organized under ch. 947, F.S., relating to inmate work programs.
5
S. 320.06(4), F.S.
6
Section 318.14, F.S., provides certain exceptions to noncriminal traffic infractions and provides for court appearances, payment
plans, and authorizes proof of compliance with motor vehicle registration requirements.
7
S. 320.07(3), F.S.
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The license plate may also be used for applications such as electronic tolling and broadcasting
emergency alerts.8
Digital license plates are currently available in California and Arizona, and 11 other states are in various
stages of adoption.9 Depending on the type of digital license plate, prices start at $499 plus $55 per
year or $17.95 per month with a 36-month agreement.10
Effect of the Bill
The bill repeals DHSMV’s current unused authority to conduct a pilot program to evaluate the designs,
concepts, and technologies of alternative license plates. The bill creates s. 320.08069, F.S., to
establish the Digital License Plate Pilot Program within DHSMV to evaluate the design, concept, and
technologies available for digital license plates and to determine the feasibility of digital license plates.
The bill defines the term “digital license plate” as an electronic display that is designed to display the
information required to be included on a physical license plate and be placed on a motor vehicle
registered under Ch. 320, F.S., in lieu of a physical license plate.
The bill provides that except as otherwise specified in the bill, or a DHSMV rule adopted to implement
the pilot program, a digital license plate is subject to Florida’s laws applicable to a physical license
plate; however, digital license plates are exempt from the statutory design requirements.
Beginning July 1, 2021, DHSMV must administer the pilot program, which is limited to the installation of
digital license plates on government-owned motor vehicles. By July 1, 2022, DHSMV must allow any
motor vehicle registered in Florida to be equipped with a digital license plate in lieu of a physical license
plate.
The bill authorizes DHSMV to contract with one or more digital license plate providers11 for the
issuance of digital license plates, including any services related to the issuance of digital license plates.
The contract must include provisions governing the protection of personal and motor vehicle
registration data obtained by a digital license plate provider in the performance of its services.
Under the bill, DHSMV may authorize the display of the motor vehicle’s validation on each digital
license plate in lieu of the validation sticker. The validation must display the owner’s birth month, the
license plate number, and the year of expiration or appropriate renewal period if the owner is not a
natural person. The validation must be displayed in the upper right corner of the digital license plate.
The bill also provides that DHSMV may authorize the use of a digital license plate for electronic toll
collection, if such use has been approved by the Department of Transportation or other appropriate
tolling authority or to display a parking permit.
Further, DHSMV may establish procedures for displaying the following information on a digital license
plate:
An emergency alert, including an alert regarding a missing child or missing adult.
Static logo displays, including displays for fleet license plates, digital versions of specialty
license plates, special license plates for military service, and special license plates for the
Governor and federal and state legislators.
Other displays that DHSMV, in consultation with law enforcement agencies, determines are in
the interest of public safety.
8
https://reviver.com/shop/ (last visited February 26, 2021).
9
Reviver Announces Florida has Filed Legislation Authorizing its Digital License Plates. https://www.prnewswire.com/news-
releases/reviverannounces-florida-has-filed-legislation-authorizing-its-digital-license-plates-301224838.html, February 9, 2021. (last
visited February 26, 2021).
10
https://reviver.com/shop/ (last visited February 26, 2021).
11
The bill defines the term “digital license plate provider” as a person or an entity engaged in the business of providing digital license
plate hardware and services to motor vehicles.
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Under the bill, a digital license plate must:
Meet the requirements and specifications required above.
Include the same information required to be included on a physical license plate and legibly
display that information at all times and in all light conditions; however, the digital license plate
may display the information in a smaller type size when the motor vehicle is parked.
Have wireless connectivity capability.
A digital license plate provider with whom DHSMV contracts must:
Maintain an inventory of digital license plates in this state.
Make available a digital version of each specialty license plate authorized by DHSMV.
If a digital license plate displays a validation to reflect the current registration period for the
motor vehicle, and upon DHSMV request, suspend the display of the validation or indicate in the
digital license plate that the motor vehicle’s registration has expired.
The bill provides that a consumer who chooses to purchase a digital license plate must purchase it
directly from the digital license plate provider. In addition to any fees associated with the purchase of
the digital license plate, the consumer is also responsible for paying to DHSMV all applicable motor
vehicle fees, including the annual use fee associated with any specialty license plate the consumer
wishes to display on the digital license plate.
The bill authorizes DHSMV to adopt rules to implement the digital license plate pilot program.
The bill creates s, 320.07(7), F.S., to provide that the owner of a digital license plate is not subject to
the penalties in s. 320.07, F.S., for failure to display a validation if the vehicle was operated in
compliance with ch. 320, F.S., and any DHSMV rules governing the placement of digital license plates
and registration renewal.
The bill is effective upon becoming a law.
B. SECTION DIRECTORY:
Section 1 Amends s. 320.06, F.S., relating to registration certificates, license plates, and validation
stickers.
Section 2 Amends s. 320.07, F.S., relating to registration, renewal required.
Section 3 Creates s. 320.08069, F.S., relating to the Digital License Plate Pilot Program.
Section 4 Provides that the bill is effective upon becoming a law.
II. FISCAL ANALYSIS & ECONOMIC IMPACT STATEMENT
A. FISCAL IMPACT ON STATE GOVERNMENT:
1. Revenues:
None. Since purchasers of digital license plates are also required to pay the statutorily required
motor vehicle fees, the bill does not appear to impact state government revenues.
2. Expenditures:
According to DHSMV, the bill should have an insignificant impact on it, since the purchase of the
digital license plate will be conducted solely between the digital license plate provider and the
consumer. Therefore, DSHMV does not plan on programming connectivity between the proposed
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DATE: 3/22/2021
digital license plates and DSHMV systems and will continue with its current procedures for original
and renewal license plate transactions.12
B. FISCAL IMPACT ON LOCAL GOVERNMENTS:
1. Revenues:
None.
2. Expenditures:
None.
C. DIRECT ECONOMIC IMPACT ON PRIVATE SECTOR:
Digital license plate providers may see additional revenues associated with the program.
D. FISCAL COMMENTS:
None.
III. COMMENTS
A. CONSTITUTIONAL ISSUES:
1. Applicability of Municipality/County Mandates Provision:
Not applicable. The bill does not appear to impact county or municipal governments.
2. Other:
None.
B. RULE-MAKING AUTHORITY:
The bill authorizes DHSMV to adopt rules to implement the Digital License Plate Pilot Program.
C. DRAFTING ISSUES OR OTHER COMMENTS:
None.
IV. AMENDMENTS/ COMMITTEE SUBSTITUTE CHANGES
On March 3, 2021, the Tourism, Infrastructure & Energy Subcommittee adopted one amendment and
reported the bill favorably as a committee substitute. In summary, the committee substitute:
Clarifies that a customer must first obtain a physical license plate from DHSMV prior to obtaining a
digital license plate.
Clarifies that a purchaser of a digital license plate is required to pay all statutorily required motor
vehicle fees applicable to his or her registration and accordingly removes the requirement that
DHSMV send $4 to PRIDE for every digital license plate sold.
Requires the digital license plate provider’s contract with DHSMV to contain provisions governing
the protection of personal and motor vehicle registration data obtained by the provider in the
performance of its services.
Clarifies that the use of a digital license plate for toll collection may be authorized only if such use
has been approved by the Department of Transportation or appropriate toll authority.
Clarifies provisions regarding the use of specialty and special license plates as digital license
plates.
12
Email from Kevin Jacobs, Legislative Affairs Director, Department of Highway Safety and Motor Vehicles, HB 695. (February 25,
2021).
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DATE: 3/22/2021
This analysis is drafted to the committee substitute as approved by the Tourism, Infrastructure & Energy
Subcommittee.
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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
CS/HB 695 2021
1 A bill to be entitled
2 An act relating to the Digital License Plate Pilot
3 Program; amending s. 320.06, F.S.; deleting provisions
4 relating to the authority of the Department of Highway
5 Safety and Motor Vehicles to conduct a pilot program
6 to evaluate the designs, concepts, and technologies
7 for alternative license plates; amending s. 320.07,
8 F.S.; exempting owners of digital license plates from
9 certain penalties; creating s. 320.08069, F.S.;
10 creating the Digital License Plate Pilot Program
11 within the department; providing the purpose of the
12 program; providing definitions; providing
13 applicability; requiring the department to begin
14 administering the program on a specified date;
15 providing program requirements; authorizing the
16 department to contract with digital license plate
17 providers; providing additional authorizations to the
18 department relating to the program; specifying
19 requirements for digital license plates, digital
20 license plate providers, and digital license plate
21 consumers; authorizing the department to adopt rules;
22 providing an effective date.
23
24 Be It Enacted by the Legislature of the State of Florida:
25
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26 Section 1. Subsection (5) of section 320.06, Florida
27 Statutes, is amended to read:
28 320.06 Registration certificates, license plates, and
29 validation stickers generally.—
30 (5) The department may conduct a pilot program to evaluate
31 the designs, concepts, and technologies for alternative license
32 plates. For purposes of the pilot program, the department shall
33 investigate the feasibility and use of alternative license plate
34 technologies and the long-term cost impact to the consumer. The
35 pilot program shall be limited to license plates that are used
36 on government-owned motor vehicles as described in s. 320.0655.
37 Such license plates are exempt from the requirements in
38 paragraph (3)(a).
39 Section 2. Subsection (7) is added to section 320.07,
40 Florida Statutes, to read:
41 320.07 Expiration of registration; renewal required;
42 penalties.—
43 (7) An owner of a digital license plate as described in s.
44 320.08069 is not subject to the penalties of this section for
45 failure to display a validation if the vehicle was operated in
46 compliance with this chapter and any rules adopted by the
47 department governing the placement of digital license plates and
48 registration renewal.
49 Section 3. Section 320.08069, Florida Statutes, is created
50 to read:
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51 320.08069 Digital License Plate Pilot Program.—There is
52 created within the department the Digital License Plate Pilot
53 Program. The purpose of the program is to evaluate the design,
54 concepts, and technologies available for digital license plates
55 and to determine the feasibility of digital license plates.
56 (1) DEFINITIONS.—As used in this section, the term:
57 (a) "Digital license plate" means an electronic display
58 that is designed to:
59 1. Display the information required in this chapter to be
60 included on a physical license plate; and
61 2. Be placed on a motor vehicle registered under this
62 chapter in lieu of a physical license plate.
63 (b) "Digital license plate provider" means a person or an
64 entity engaged in the business of providing digital license
65 plate hardware and services to motor vehicle owners.
66 (2) APPLICABILITY.—Except as otherwise provided by this
67 section or a rule adopted under this section, a digital license
68 plate issued under this section is subject to the laws of this
69 state applicable to a physical license plate; however, digital
70 license plates issued under this section are exempt from s.
71 320.06(3)(a).
72 (3) DIGITAL LICENSE PLATE PILOT PROGRAM.—
73 (a) Beginning July 1, 2021, the department shall
74 administer the program. The program must be limited to
75 installation and use of digital license plates on government-
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CS/HB 695 2021
76 owned motor vehicles as described in s. 320.0655.
77 (b) By July 1, 2022, the department shall allow any motor
78 vehicle registered under this chapter to be equipped with a
79 digital license plate in lieu of a physical license plate issued
80 under s. 320.06. However, the purchaser of a digital license
81 plate must first obtain a physical license plate from the
82 department before obtaining a digital license plate from a
83 digital license plate provider.
84 (c) The department may contract with one or more digital
85 license plate providers for the issuance of digital license
86 plates, including any services related to the issuance of
87 digital license plates. The contract must include provisions
88 governing the protection of personal and motor vehicle
89 registration data obtained by a digital license plate provider
90 in the performance of its services.
91 (d) The department may authorize the display of the motor
92 vehicle's validation on each digital license plate in lieu of
93 the validation sticker. The validation must display the owner's
94 birth month, the license plate number, and the year of
95 expiration or appropriate renewal period if the owner is not a
96 natural person. The validation must be displayed in the upper
97 right corner of the digital license plate.
98 (e) The department may authorize the use of a digital
99 license plate for electronic toll collection, if such use has
100 been approved by the Department of Transportation or other
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CS/HB 695 2021
101 appropriate tolling authority, or to display a parking permit.
102 (f) The department may establish procedures for displaying
103 the following information on a digital license plate:
104 1. An emergency alert or other public safety alert issued
105 by a governmental entity, including an alert pursuant to s.
106 937.021.
107 2. Static logo displays, including unique displays for
108 fleet license plates, digital versions of specialty license
109 plates as described in s. 320.08058, and special license plates
110 for military service as authorized in s. 320.089 and for the
111 Governor and federal and state legislators as authorized in s.
112 320.0807.
113 3. Other displays that the department, in consultation
114 with law enforcement agencies, determines are in the interest of
115 public safety.
116 (4) DIGITAL LICENSE PLATE REQUIREMENTS.—A digital license
117 plate issued under this section must:
118 (a) Meet the specifications and requirements adopted under
119 subsection (3).
120 (b) Include the same information required to be included
121 on a physical license plate and legibly display that information
122 at all times and in all light conditions; however, the digital
123 license plate may display the information in a smaller type size
124 when the motor vehicle is parked.
125 (c) Have wireless connectivity capability.
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CS/HB 695 2021
126 (5) DIGITAL LICENSE PLATE PROVIDERS.—A digital license
127 plate provider with whom the department contracts shall:
128 (a) Maintain an inventory of digital license plates issued
129 in this state by the digital license plate provider.
130 (b) Make available a digital version of each specialty
131 license plate authorized by the department.
132 (c) If a digital license plate displays a validation,
133 promptly update the display of the validation to reflect the
134 current registration period for the motor vehicle and, upon
135 request of the department, suspend the display of the validation
136 or indicate on the digital license plate that the registration
137 for the motor vehicle has expired.
138 (6) DIGITAL LICENSE PLATE CONSUMERS.—A consumer who
139 chooses to purchase a digital license plate must purchase a
140 digital license plate directly from a digital license plate
141 provider. In addition to any fees associated with the purchase
142 of a digital license plate, the consumer is also responsible for
143 paying to the department all applicable motor vehicle fees in
144 this chapter, including any annual use fees pursuant to s.
145 320.08056 associated with any specialty license plate the
146 consumer wishes to display on the digital license plate.
147 (7) RULEMAKING.—The department may adopt rules to
148 implement this section.
149 Section 4. This act shall take effect upon becoming a law.
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COMMERCE COMMITTEE
CS/HB 695 by Rep. Duran
DIGITAL LICENSE PLATE PILOT PROGRAM
AMENDMENT SUMMARY
MARCH 24, 2021
Amendment 1 by Rep. Duran (Line 122):
• Removes language authorizing a digital license plate to display information in a
smaller size type when the vehicle is parked.
COMMITTEE/SUBCOMMITTEE AMENDMENT
Bill No. CS/HB 695 (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: Commerce Committee
2 Representative Duran offered the following:
3
4 Amendment
5 Remove lines 122-124 and insert:
6 at all times and in all light conditions.
216505 - h0695-line 122.docx
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Page 1 of 1
CS/HB 717
HOUSE OF REPRESENTATIVES STAFF ANALYSIS
BILL #: CS/HB 717 Consumer Protection
SPONSOR(S): Insurance & Banking Subcommittee, Clemons and others
TIED BILLS: IDEN./SIM. BILLS: CS/SB 1598
REFERENCE ACTION ANALYST STAFF DIRECTOR or
BUDGET/POLICY CHIEF
1) Insurance & Banking Subcommittee 15 Y, 0 N, As CS Rowley Luczynski
2) State Administration & Technology 14 Y, 0 N Lee Topp
Appropriations Subcommittee
3) Commerce Committee Rowley Hamon
SUMMARY ANALYSIS
The bill makes the following changes to the laws governing the divisions under the Florida Department of
Financial Services (DFS):
Consumer Credit Scores and Security Freezes – The bill prohibits consumer reporting agencies
from charging a fee for reissuing a personal identification number used to remove a security freeze. It
requires insurers to notify applicants of the availability of DFS’s free financial literacy resources at
certain times.
Consumer Services – The bill requires that licensees provide documents when responding to written
requests from DFS’s Division of Consumer Services.
Professions – The bill defines “claims adjusting,” establishes insurance adjusting firms’ licensure
requirements and penalties, removes the licensure fee, and adds grounds upon which DFS may revoke
or suspend licenses. The bill also establishes penalties for aiding and abetting unlicensed adjusting
firms and bail bond agents.
Insurance Agency Names – The bill provides specific authority for DFS to disapprove insurance
agency names containing the words “Medicaid” and “Medicare.”
Industrial Class Insurers – The bill amends the laws regarding industrial life insurance, small policies
written upon individual lives, so that no such policies may be sold in Florida after July 1, 2021.
Policyholder Rights – The bill extends the time that a policyholder has to cancel a contract with a
public adjuster and amends the Homeowner Claims Bill of Rights. The bill also provides claims
handling requirements, including policyholder notification of a change in adjuster, for both admitted and
surplus lines insurers.
Export to Surplus Lines – The bill mandates that the notification regarding the export of a policy to the
surplus lines market, currently given only to commercial policyholders, be given to all policyholders.
Unfair or Deceptive Acts – The bill adds two grounds, based upon effectuating an entire insurance
policy without consent, to the list of acts that constitute sliding.
Foreign Venue Clauses Prohibited – The bill requires dispute resolution for policies sold in Florida,
and insuring property in Florida, on the admitted or surplus lines markets, occurs in Florida.
Florida Insurance Guaranty Association ( FIGA) Deductible – The bill eliminates a $100 deductible
that a policyholder must pay for a claim covered by FIGA.
Florida Workers’ Compensation Insurance Guaranty Association (FWCIGA) – FWCIGA covers
claims for workers’ compensation policies that are in effect on the date of the final order of an insurer’s
liquidation, leaving some policyholders whose policies have lapsed prior to liquidation with unpaid
claims. The bill eliminates that disparity by removing an exception to the definition of “covered claim.”
The bill may have a minimal positive fiscal impact on state government revenues. It has a minimal negative
impact on state expenditures and no impact on local government revenues or expenditures. The bill may have
a positive economic benefit to consumers and a possible indeterminate negative economic impact on insurers.
Except where otherwise provided, the bill is effective upon becoming law.
FULL ANALYSIS
This document does not reflect the intent or official position of the bill sponsor or House of Representatives .
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I. SUBSTANTIVE ANALYSIS
A. EFFECT OF PROPOSED CHANGES:
The Department of Financial Services (DFS) is composed of 13 divisions and one independent office.
They are the Divisions of:
Accounting and Auditing;
Consumer Services;
Funeral, Cemetery, and Consumer Services;
Insurance Agent and Agency Services;
Investigative and Forensic Services;
Public Assistance Fraud;
Rehabilitation and Liquidation;
Risk Management;
State Fire Marshal;
Treasury;
Unclaimed Property;
Workers’ Compensation;
Administration; and the
Office of Insurance Consumer Advocate.
Consumer Credit Reports and Scores and Security Freezes
Security Freezes
Section 501.0051, F.S., allows a third party, such as a parent or guardian, to place a security freeze on
a minor child’s credit report, which prohibits a consumer reporting agency from releasing the credit
report, credit score, or any information contained in the consumer report without express authorization
from the parent or guardian.1 Within 10 days of placing a security freeze, a consumer reporting agency
is required to provide the consumer with a unique personal identification number (PIN) that must then
be utilized to request removal of the freeze.2 Current law permits a consumer reporting agency to
charge up to $10 to reissue a lost or misplaced PIN.3
Effect of the Bill
The bill removes a credit reporting agency’s ability to charge a fee to reissue a PIN.
Credit Reports and Scores
Under certain circumstances, insurers are permitted to utilize applicants’ credit reports and scores in
underwriting and rating decisions.4 The insurer must notify applicants that credit reports and scores are
being utilized for these purposes.5 DFS currently offers free financial literacy programs and maintains a
toll-free insurance consumer helpline and a website to assist consumers with insurance questions,
concerns, and complaints.6 Insurers are not required to provide applicants with information regarding
these resources when notifying applicants of the use of their credit reports and scores.
1 S. 501.0051(1), F.S.
2 S. 501.0051(5), F.S.
3 S. 501.0051(9)(b), F.S.
4 See s. 626.9741, F.S.
5 Id.
6 Florida Department of Financial Services (DFS), Agency Analysis of 2021 House Bill 717, p. 3 (Feb. 25, 2021).
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Effect of the Bill
The bill provides that, at the same time that insurers inform consumers of the use of credit reports and
scores for underwriting and rating purposes, the insurers must provide consumers with notification that
DFS offers free financial literacy programs to assist them in understanding how credit scores are
calculated and how credit works.
Companies’ Responses to the Department’s Division of Consumer Services
Current law requires that licensees holding certificates of authority from DFS (agents and agencies) or
the Office of Insurance Regulation (OIR) (insurance companies) must respond to written requests from
DFS’s Division of Consumer Services concerning consumer complaints.7 It does not specifically require
that licensees provide documents in response to such requests.
Effect of the Bill
The bill adds requested documents to the response that a licensee must provide to the Division of
Consumer Services when the division makes a written request to a licensee regarding a consumer
complaint, but specifies that documents need not be released if they are protected by attorney-client or
work-product privilege.
Requirements Placed on Licensees of the Department of Financial Services
Agents, Customer and Service Representatives, Adjusters, Insurance Agencies, Managing General
Agents, and Insurance Adjusting Firms
Section 626.112, F.S., sets forth various requirements that insurance agents, agencies, adjusters,
customer and service representatives, and managing general agents must meet in order to operate
within Florida. In 2017, the legislature passed a law modifying the requirements for licensure for
adjusters, including adjusting firms.8 Prior to 2017, an adjusting firm was required to be licensed only if
it failed to designate a primary adjuster within 30 days of starting the firm or changing the primary
adjuster. Current law still authorizes, but does not require, licensure of adjusting firms.
Although current law provides penalties for acting as an unlicensed insurance agent, adjuster,
customer or service representative, or managing general agent, it does not provide any penalties for
aiding or abetting an unlicensed person in transacting insurance or otherwise engaging in insurance
activities within the state. Additionally, the law does not define the practice of “claims adjusting.”
Effect of the Bill
The bill establishes that no individual or entity may act as an adjusting firm without complying with the
legal requirements for obtaining an adjusting firm license for each location where activity occurs that
only a licensed adjuster may perform. However, a licensed adjusting firm owned and operated by a
single licensed adjuster conducting business in his or her individual name and not employing or using
the services of other licensees is exempt from this requirement. The licensing requirements for an
adjusting firm are essentially notification requirements. An application for licensure as an adjusting firm
requires providing the name of each majority owner, partner, officer, and director of the firm, the home
address of each, and firm’s location. The bill removes the $60 licensure fee. If an adjusting firm is
required to be licensed, but fails to apply for licensure, DFS shall impose on the firm an administrative
penalty of up to $10,000.
The bill provides that any person who knowingly aids or abets an unlicensed person in transacting
insurance or otherwise engaging in insurance activities in Florida without a license commits a third-
degree felony. The bill also defines “claims adjusting” and provides that no person, except a duly
7 S. 624.307(10)(b), F.S.
8 Ch. 2017-147, Laws of Fla.
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licensed attorney exempted under s. 626.860, F.S., or agent exempted under s. 626.862, F.S., shall
provide claims adjusting services unless licensed and appointed as an adjuster.
Grounds for Refusal, Suspension, or Revocation of Agent’s, Adjuster’s, Customer or Service
Representative’s, or Managing General Agent’s License or Appointment
Section 626.621, F.S., provides grounds under which DFS may deny an application for, suspend,
revoke, or refuse to renew or continue the license or appointment of an applicant, agent, adjuster,
customer or service representative, or managing general agent. Currently, these licensees or
appointees are not required to maintain the privacy of consumers’ financial and medical information.
Additionally, Florida law does not provide for administrative action when a person violates Federal
Trade Commission laws regarding telephone solicitation.
Effect of the Bill
The bill adds the following to the grounds for which DFS can deny an application for, suspend, revoke,
or refuse to renew or continue the license or appointment of the above-listed persons:
taking action that allows a consumer’s or customer’s personal financial or medical information to
be made available or accessible to the general public; and
initiating in-person or telephone solicitation after 9 p.m. or before 8 a.m. local time of the
prospective customer unless the prospective customer requests such contact.
Bail Bond Agents
Bail bond agents and temporary bail bond agents must be licensed in order to operate within Florida.
While the law provides for penalties for operating as a bail bond agent or temporary bail bond agent
without a license, it does not currently provide any penalty for a licensee under ch. 648, F.S., who aids
or abets an unlicensed individual to violate the provisions of the chapter.9
Effect of the Bill
The bill provides that any licensee under ch. 648, F.S., who knowingly aids or abets an unlicensed
person in violating the licensure and appointment requirements of the chapter commits a third-degree
felony.
Insurance Agency Names
Florida law permits DFS to disapprove insurance agency names under certain circumstances, including
when the use of those names may mislead the public.10 DFS has concerns that the inclusion of the
words “Medicare” or “Medicaid” in the name of an insurance agency may confuse “vulnerable
consumers” about the nature of the agency, but it lacks the specific authority to disapprove an agency
name that includes those words.11
Effect of the Bill
The bill adds use of the words “Medicare” and “Medicaid” to the grounds for which DFS may
disapprove an insurance agency name. An agency licensed as of July 1, 2021, whose name contains
the word Medicare or Medicaid, may continue to use the name until June 30, 2023, as long as its
license remains valid. A license containing the word Medicare or Medicaid will automatically expire on
July 1, 2023, unless these words are removed.
9 S. 648.30, F.S.
10 S. 626.602, F.S.
11 DFS, supra note 6, at 2.
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Industrial Class Insurers
Industrial class insurers write industrial life insurance policies, which are life insurance policies written
upon individual lives in small amounts for which agents generally collect weekly or monthly premiums.12
In general, the prevalence of industrial life insurance policies has continued to decline. Based upon
data available from DFS, no new industrial life insurance has been written in the past year and few
licensed life insurers continue to maintain industrial life insurance policies.13
Effect of the Bill
The bill amends and repeals the statutes related to industrial class insurers and industrial life insurance
so that no industrial life insurance policy may be sold in Florida after July 1, 2021. The bill has no effect
on industrial life insurance policies that were sold prior to that date and have continued to remain in
force.
Policyholder Rights
Public Adjusters
Public adjusters are regulated under ch. 626, part VI, F.S. Florida law defines a public adjuster as
someone who, for something of value, directly or indirectly, prepares, completes, or files an insurance
claim for an insured or third-party claimant, or who, for something of value, acts on behalf of, or aids, an
insured or third-party claimant in settling a claim for loss or damage covered by an insurance contract,
or who advertises for employment as an adjuster of such claims.14 In general, a claimant executes a
contract for the public adjuster to provide claims adjusting services.15 At present, absent a state of
emergency, such a contract may only be canceled within three days after the latter of the date on which
the contract was executed or within three days after the date on which the claimant has notified the
insurer of the claim.16 During a state of emergency, and for one year after the date of loss, an insured
or claimant has five days after the date on which the contract was executed to cancel the contract
without penalty or obligation.
Public adjusters who have contracted with claimants must also provide to the claimant a written
estimate of loss to assist the claimant with obtaining a claim payment from the insurance company.
According to information received from DFS, following the hurricanes that have affected Florida in
recent years, consumers have complained about claims resolution delays due to the lack of
responsiveness of public adjusters they hired and the inability to cancel contracts they have executed
with these adjusters.17
Effect of the Bill
The bill changes the timeframe for an insured or claimant to cancel a contract with a public adjuster
without penalty or obligation to 10 calendar days, rather than from three business days after the latter
of the date on which the contract was executed or the date on which the insured or claimant has
notified the insurer of the claim. The bill provides that the 10-day timeframe applies regardless of
whether there is a state of emergency.
The bill also provides that the written estimate that the public adjuster must provide to the claimant
must include an itemized per-unit estimate of the repairs, including itemized information on equipment,
materials, labor, and supplies. The written estimate must be provided to the insured within 60 days after
the date the contract is executed. Additionally, the bill prohibits a licensed contractor or subcontractor
from soliciting an insured to file a claim with an insurer.
12 S. 627.502, F.S.
13 DFS, supra note 6, at 5.
14 S. 626.854, F.S.
15 See id.
16 Id.
17 DFS, supra note 6, at 2-3.
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Homeowner Claims Bill of Rights
Section 627.7142, F.S., contains a Homeowner Claims Bill of Rights (Bill of Rights) that insurers
issuing personal lines residential property insurance policies in Florida must provide to policyholders
within 14 days after receiving an initial communication with respect to a claim, unless the claim follows
an event that is the subject of a declaration of a state of emergency by the Governor. While the Bill of
Rights does not contain all of the rights of a policyholder, it is designed to summarize some of the
significant rights, including rights regarding communications from insurers, payments of claims, and
resolution of disputed claims.18 The Bill of Rights contains no requirements that an insurer notify the
policyholder when it assigns a different adjuster to the claim. It does not specify that a policyholder may
be entitled to receive interest from an insurer when the insurer fails to timely fulfill claim obligations.
Furthermore, the Bill of Rights does not mention that a policyholder may take video of damage before
and after repairs in addition to photographs of the damage.
Effect of the Bill
The bill amends the Bill of Rights in the following ways:
states that a policyholder to which the Bill of Rights applies must receive the payment of interest
from the insurance company if the insurance company does not pay full settlement of a claim or
deny the claim within 90 days after the claim is filed; and
clarifies that in addition to photographs, a policyholder may take video of damage before and
after repairs.
The bill requires an insurer to provide the Bill of Rights to a policyholder within 14 days after receiving
an initial claim communication, even during a state of emergency.
Insurer’s Duties to Acknowledge and Investigate Claims
Pursuant to Florida law, residential property insurers have certain obligations regarding the handling of
claims, including responding to communications and timely payment or denial of claims.19 Policyholders
have complained to DFS that repeated changes in adjusters for insurance companies have contributed
to significant delays in the claim handling process.20 In addition, policyholders have indicated that
because of a lack of access to claims information, their insurance agents are not able to respond
claims-related questions in a meaningful way.21
The applicable law neither requires that any licensed adjuster assigned by an insurer to conduct a
physical inspection of damage property provide the policyholder with his or her name, license number,
and contact information, nor requires that the insurer provide a copy of the inspection report to the
policyholder following receipt from the adjuster. There is no statutory requirement that an insurer notify
a policyholder when it has assigned a new adjuster to the policyholder’s claim. Further, the law does
not contain any mandate that the insurer inform the policyholder of the fact that an estimate may be
preliminary in nature and may be revised or the fact that when a partial payment is issued the insurer is
continuing to evaluate a claim and may issue additional payments.
Effect of the Bill
The bill makes the following changes to existing law regarding the investigation and adjusting of
residential property insurance claims:
Changes the timeframe from 10 business days to 14 days from receipt of a proof of loss
statement for an insurer to begin the investigation of a claim.
18 S. 627.7142, F.S.
19 S. 627.70131, F.S.
20 DFS, supra note 6, at 4.
21 Id.
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If an investigation of a claim involves a physical inspection of property, a licensed adjuster
assigned by the insurer must provide a policyholder with his or her name and license number.
Provides that any subsequent communication with the policyholder regarding the claim must
include the name and license number of the adjuster communicating about the claim.
Requires the insurer to maintain a record or log of each adjuster who communicates with the
policyholder and to provide a list of those adjusters to the policyholder, DFS, or OIR upon
request.
When providing a preliminary or partial damage claim estimate or a preliminary or partial claim
payment, an insurer must provide a detailed disclosure as specified in the bill.
The bill provides that the above changes regarding residential property insurance claims shall be
applicable to surplus lines policies in addition to policies written on the admitted market.
Export of Policies to Surplus Lines
Notification of Export
When insurance is not available to Florida consumers from authorized insurance carriers22, it generally
becomes necessary and legally permissible to obtain a policy on the surplus lines market.23 However,
under current surplus lines law, only consumers purchasing commercial insurance policies on the
surplus lines market receive notification at the time of purchase that policies are being issued on that
market.24 Consequently, the first time that some residential policyholders are informed that their policies
have been issued by surplus lines carriers is after their policies have been issued.25 The notification
currently provided to commercial policyholders whose policies are issued on the surplus lines market
also includes the statement that “superior coverage may be available in the admitted market and at a
lesser cost.”26
Effect of the Bill
The bill amends surplus lines law to require that, at the time policies are exported to the surplus lines
market, the notification statement currently signed by consumers whose commercial insurance policies
are being exported to the surplus lines market must be signed, or otherwise acknowledged by all
consumers whose insurance policies are being exported to the surplus lines market. The bill also
replaces the statement “superior coverage may be available in the admitted market and at a lesser
cost,” with “coverage may be available in the admitted market.” Additionally, the notification statement
advises consumers whose policies are being exported that surplus lines carriers are not protected
under the Florida Insurance Guaranty Act in the event of the carrier’s insolvency.
Unfair Methods of Competition and Unfair or Deceptive Acts – Sliding
The Florida Insurance Code prohibits licensees from engaging in unfair methods of competition and
unfair or deceptive acts or practices, including sliding.27 Under Florida law, sliding currently includes:
representing to an applicant that a specific ancillary coverage or product is required by law when it is
not; representing to an applicant that a specific ancillary coverage or product is included in the policy
applied for without an additional charge where there is a charge for it; and charging an applicant for a
specific ancillary coverage or product, in addition to the cost of insurance applied for, without informing
22 Authorized insurance carriers are those who have received a certificate of authority from OIR to transact insurance
business within the state. S. 624.09, F.S.
23 See s. 626.913, F.S.
24 S. 626.916(3)(b)3, F.S.
25 DFS, supra note 6, at 3.
26 S. 626.916(3)(b)3, F.S.
27 S. 626.9541, F.S.
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the applicant.28 According to DFS, some Florida insurers have begun a practice of effectuating entire
policies without informing consumers they have done so.29
Effect of the Bill
The bill adds the following to the list of prohibited conduct that constitutes sliding:
Initiating, effectuating, binding, or otherwise issuing an insurance policy without prior informed
consent from the owner of the property being insured; and
Mailing, transmitting, or otherwise submitting a premium invoice to a mortgagee or escrow
agent in order to effectuate an insurance policy without the prior informed consent from the
owner of the property being insured. However, collateral protection insurance by a mortgagee or
escrow does not constitute sliding.
Foreign Venue Clauses in Property Insurance Policies
Currently, Florida law does not mandate that property claims dispute resolution for policies sold in
Florida, whether such resolution occurs through litigation, arbitration, or mediation, occur within Florida.
Effect of the Bill
The bill provides that no property insurance policy sold in Florida, insuring property located in Florida,
after July 1, 2021, whether issued on the admitted or surplus lines markets, may require that an insured
engage in dispute resolution, through litigation, arbitration, or mediation, outside Florida.
Florida Insurance Guaranty Association Deductible
Under federal law, insurance companies cannot file for bankruptcy.30 Instead, they are either
rehabilitated or liquidated by their state of domicile. Florida law establishes the system for the
treatment of impaired or insolvent insurers31 in Florida and sets up guaranty associations where
necessary.32 Florida operates five guaranty associations including the Florida Insurance Guaranty
Association (FIGA).33
FIGA provides a “mechanism for the payment of covered claims under certain insurance policies to
avoid excessive delay in payment and to avoid financial loss to claimants or policyholders because of
the insolvency of an insurer.”34 It issues guaranty fund payments and provides related services for all
lines of property and casualty insurance with certain exceptions.35
When a Florida property and casualty insurer becomes insolvent, FIGA takes over the claims of that
insurer and pays the claims of its policyholders, ensuring that policyholders are not left with unpaid
claims. Florida law provides that FIGA is only obligated to pay the portions of claims made to insolvent
property and casualty insurers, which are in excess of $100, and less than $300,000.36 Under current
law, therefore, there is a $100 deductible on all property and casualty claims covered by FIGA.
Effect of the Bill
28 S. 626.9541(1)(z), F.S.
29 DFS, supra note 6, at 3.
30 11 U.S.C. § 109(b)(2).
31 An “insolvent insurer” means an insurer that was authorized to transact insurance in this state, either at the time the
policy was issued or when the insured event occurred, and against which an order of liquidation with a finding of
insolvency has been entered by a court of competent jurisdiction if such order has become final by the exhaustion of
appellate review. S. 631.904(4), F.S.
32 Ch. 631, F.S.
33 Ch. 631, part II, F.S.
34 S. 631.51, F.S.
35 S. 631.52, F.S.
36 S. 631.57(1), F.S.
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The bill eliminates the $100 deductible on claims paid by FIGA so that such claims will be covered for
any amount exceeding $0 and less than $300,000.
Florida Workers’ Compensation Insurance Guaranty Association
The Florida Workers’ Compensation Insurance Guaranty Association (FWCIGA) was created in 1997
by merging the workers’ compensation account in FIGA with the Florida Self-Insurance Fund Guaranty
Association.37 FWCIGA “provides a mechanism for the payment of covered claims under chapter 440,
F.S., to avoid” delay and financial loss to claimants due to the insolvency of a workers’ compensation
insurer.38 When a workers’ compensation insurer or self-insurance fund becomes insolvent, FWCIGA
takes over the claims of that insurer and pays the claims of its policyholders, ensuring that
policyholders are not left with unpaid claims. Because FWCIGA covers claims for workers’
compensation policies that are in effect on the date of the final order of liquidation, this leaves
policyholders whose policies have lapsed prior to liquidation with unpaid claims.
Effect of the Bill
The bill removes the language “any return of premium resulting from a policy that was not in force on
the date of the final order of liquidation” from the definition of what is excluded as a “covered claim.”
B. SECTION DIRECTORY:
Section 1. Amends s. 501.0051, F.S., relating to protected consumer report security freeze.
Section 2. Amends s. 624.307, F.S., relating to general powers; duties.
Section 3. Amends s. 624.501, F.S., relating to filing, license, appointment, and miscellaneous fees.
Section 4. Amends s. 626.112, F.S., relating to license and appointment required; agents, customer
representatives, adjusters, insurance agencies, service representatives, managing general
agents.
Section 5. Creates s. 626.5813, F.S., relating to claims adjusting.
Section 6. Amends s. 626.602, F.S., relating to insurance agency names; disapproval.
Section 7. Amends s. 626.621, F.S., relating to grounds for discretionary refusal, suspension, or
revocation of agent’s, adjuster’s, customer representative’s, service representative’s, or
managing general agent’s license or appointment.
Section 8. Amends s. 626.782, F.S., relating to “Industrial class insurer” defined.
Section 9. Amends s. 626.783, F.S., relating to “Ordinary-combination class insurer” defined.
Section 10. Repeals s. 626.796, F.S., relating to representing another insurer in same industrial debit
territory.
Section 11. Amends s. 626.854, F.S., relating to “Public adjuster” defined; prohibitions.
Section 12. Amends s. 626.916, F.S., relating to eligibility for export.
Section 13. Amends s. 626.9541, F.S., relating to unfair methods of competition and unfair or
deceptive acts or practices defined.
Section 14. Amends s. 626.9741, F.S., relating to use of credit reports and credit scores by insurers.
37 Ch. 97-262, Laws of Fla.
38 S. 631.902, F.S.
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Section 15. Amends s. 626.9953, F.S. to conform cross-references.
Section 16. Amends s. 626.9957, F.S., to conform cross-references.
Section 17. Amends s. 627.062, F.S., to conform cross-references.
Section 18. Amends s. 627.502, F.S., relating to “Industrial life insurance”; defined; reporting.
Section 19. Amends s. 627.70131, F.S., relating to insurer’s duty to acknowledge communications
regarding claims; investigation.
Section 20. Creates s. 627.7031, relating to foreign venue clauses prohibited.
Section 21. Amends s. 627.7142, F.S., relating to Homeowner Claims Bill of Rights.
Section 22. Amends s. 631.57, F.S., relating to powers and duties of the association.
Section 23. Amends s. 631.904, F.S., relating to definitions.
Section 24. Amends s. 648.30, F.S., relating to licensure and appointment required.
Section 25. Provides an effective date of upon becoming law, except as otherwise provided.
II. FISCAL ANALYSIS & ECONOMIC IMPACT STATEMENT
A. FISCAL IMPACT ON STATE GOVERNMENT:
1. Revenues:
The bill has the potential to result in increased revenues for DFS in the form of administrative fines
imposed on adjusting firms for violations of ss. 624.307 and 626.112, F.S. The increase may be
offset by a simultaneous decrease in fines against individual adjusters, since DFS will have
authority to levy fines against the firm instead of the individual.39
2. Expenditures:
The bill has an insignificant fiscal impact on DFS. Changes to DFS’s licensing system for adjusting
firms to be licensed in Florida will have a minimal negative fiscal impact on the Insurance
Regulatory Trust Fund.
B. FISCAL IMPACT ON LOCAL GOVERNMENTS:
1. Revenues:
None.
2. Expenditures:
None.
C. DIRECT ECONOMIC IMPACT ON PRIVATE SECTOR:
39 Email from Meredith Stanfield, Director of Legislative and Cabinet Affairs, Department of Financial Services, RE: HB
717 Fiscal, (Mar. 9, 2021).
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The bill may have positive economic impacts for consumers. It removes fees charged by consumer
reporting agencies for the reissuance of PINs and eliminates the $100 deductible FIGA charges for
covered claims.
The bill has potential negative direct economic impacts on the private sector. The inability of a
consumer reporting agency to charge fees to reissue PINs will result in an indeterminate decrease in
revenues for consumer reporting agencies. Adjusting firms will no longer be subject to the $60
licensure fee but could be assessed administrative fines up $10,000 for violations of ss. 624.307 and
626.112, F.S.
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:
None.
C. DRAFTING ISSUES OR OTHER COMMENTS:
Section 1 of the bill, amending s. 501.0051, F.S., may be federally preempted to the extent it prohibits
one of the national consumer reporting agencies (Experian, Equifax, and Trans Union) from charging a
fee to reissue a PIN to remove a security freeze.
IV. AMENDMENTS/ COMMITTEE SUBSTITUTE CHANGES
On March 4, 2021, the Insurance & Banking Subcommittee considered the bill, adopted two amendments, and
reported the bill favorably as a committee substitute. One amendment removed the $60 licensure fee for
insurance adjusting firms. The second amendment exempted “agents” from the adjuster licensure requirement
in the new section that clarifies what constitutes claims adjusting for the purpose of licensure as a claims
adjuster.
The analysis is drafted to the committee substitute as passed by the Insurance & Banking Subcommittee.
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DATE: 3/22/2021
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
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1 A bill to be entitled
2 An act relating to consumer protection; amending s.
3 501.0051, F.S.; prohibiting consumer reporting
4 agencies from charging to reissue or provide a new
5 unique personal identifier to certain consumers,
6 rather than authorizing such agencies to charge the
7 customers' representatives; amending s. 624.307, F.S.;
8 revising a requirement for persons licensed or
9 authorized by the Department of Financial Services or
10 the Office of Insurance Regulation to respond to the
11 department's Division of Consumer Services regarding
12 consumer complaints; amending s. 624.501, F.S.;
13 deleting a fee for adjusting firm licenses; amending
14 s. 626.112, F.S.; removing a provision requiring the
15 department to automatically convert registrations of
16 approved registered insurance agencies to insurance
17 agency licenses; prohibiting unlicensed activity by an
18 adjusting firm unless the firm complies with a
19 specified requirement; providing an exemption;
20 providing an exemption from licensure for branch firms
21 that meet certain criteria; providing an
22 administrative penalty for failing to apply for
23 certain licensure; providing a criminal penalty for
24 aiding or abetting unlicensed activity; creating s.
25 626.5813, F.S.; defining the term "claims adjusting";
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26 prohibiting a person from providing claims adjusting
27 services unless the person meets specified
28 requirements; amending s. 626.602, F.S.; authorizing
29 the department to disapprove the use of insurance
30 agency names containing the words "Medicare" or
31 "Medicaid"; providing a time-limited exception for
32 certain insurance agencies; prohibiting relicensing of
33 insurance agencies using such names; providing for
34 future expiration of such licenses; providing an
35 exception from future expiration; amending s. 626.621,
36 F.S.; adding grounds on which the department may take
37 certain actions against a license, appointment, or
38 application of certain insurance representatives;
39 amending ss. 626.782 and 626.783, F.S.; revising the
40 definitions of the terms "industrial class insurer"
41 and "ordinary-combination class insurer,"
42 respectively, to conform to changes made by the act;
43 repealing s. 626.796, F.S., relating to the
44 representation of multiple insurers in the same
45 industrial debit territory; amending s. 626.854, F.S.;
46 revising the timeframes in which an insured or
47 claimant may cancel a public adjuster's contract to
48 adjust a claim without penalty or obligation;
49 requiring that certain public adjuster's contracts
50 include a specified disclosure; specifying
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51 requirements for written estimates of loss provided by
52 public adjusters to claimants or insureds; prohibiting
53 licensed contractors and subcontractors from engaging
54 in certain activities unless licensed and compliant as
55 public adjusters; amending s. 626.916, F.S.; providing
56 a disclosure requirement that an insurance coverage
57 must meet before being eligible for export under the
58 Surplus Lines Law; amending s. 626.9541, F.S.; adding
59 certain acts or practices to the definition of the
60 term "sliding" as unfair methods of competition and
61 unfair or deceptive acts; amending s. 626.9741, F.S.;
62 requiring an insurer's notification regarding certain
63 credit report or score information to include
64 specified language under certain circumstances;
65 amending ss. 626.9953, 626.9957, and 627.062, F.S.;
66 conforming cross-references; amending s. 627.502,
67 F.S.; prohibiting a life insurer from writing new
68 policies of industrial life insurance beginning on a
69 certain date; amending s. 627.70131, F.S.; providing
70 that communication made to or by an insurer's
71 representative, rather than to or by an insurer's
72 agent, constitutes communication to or by the insurer;
73 replacing the defined term "agent" with the term
74 "representative"; revising the timeframe in which an
75 insurer must begin an investigation after receipt of
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76 proof of loss statements; requiring an insurer-
77 assigned licensed adjuster to provide the policyholder
78 with certain information; specifying information that
79 must be included in certain communication with the
80 policyholder regarding a claim; requiring an insurer
81 to keep records of the licensed adjusters interacting
82 with policyholders; requiring an insurer to establish
83 a process to provide the policyholder, the office, or
84 the department with a list of adjusters associated
85 with a claim; requiring an insurer to include
86 specified notices when providing preliminary or
87 partial damage estimates or claim payments; providing
88 applicability; creating s. 627.7031, F.S.; prohibiting
89 foreign venue clauses in property insurance policies;
90 providing applicability; amending s. 627.7142, F.S.;
91 revising circumstances under which an insurer must
92 provide a Homeowner Claims Bill of Rights to a
93 policyholder; revising information contained in the
94 Homeowner Claims Bill of Rights; conforming provisions
95 to changes made by the act; amending s. 631.57, F.S.;
96 deleting a deductible on the obligation of the Florida
97 Insurance Guaranty Association, Incorporated, as to
98 certain covered claims; amending s. 631.904, F.S.;
99 revising the definition of the term "covered claim" to
100 exclude certain premium returns; amending s. 648.30,
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101 F.S.; providing penalties for a licensed bail bond
102 agent or temporary bail bond agent who knowingly
103 engages in certain activities; providing effective
104 dates.
105
106 Be It Enacted by the Legislature of the State of Florida:
107
108 Section 1. Paragraph (b) of subsection (9) of section
109 501.0051, Florida Statutes, is amended to read:
110 501.0051 Protected consumer report security freeze.—
111 (9)
112 (b) A consumer reporting agency may not charge to a
113 reasonable fee, not to exceed $10, if the representative fails
114 to retain the original unique personal identifier provided by
115 the consumer reporting agency and the agency must reissue the
116 unique personal identifier or provide a new unique personal
117 identifier to the protected consumer representative.
118 Section 2. Paragraph (b) of subsection (10) of section
119 624.307, Florida Statutes, is amended to read:
120 624.307 General powers; duties.—
121 (10)
122 (b) Any person licensed or issued a certificate of
123 authority by the department or the office shall respond, in
124 writing, to the division within 20 days after receipt of a
125 written request for documents and information from the division
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126 concerning a consumer complaint. The response must address the
127 issues and allegations raised in the complaint and include any
128 requested documents concerning the consumer complaint that are
129 not subject to attorney-client or work-product privilege. The
130 division may impose an administrative penalty for failure to
131 comply with this paragraph of up to $2,500 per violation upon
132 any entity licensed by the department or the office and $250 for
133 the first violation, $500 for the second violation, and up to
134 $1,000 for the third or subsequent violation upon any individual
135 licensed by the department or the office.
136 Section 3. Subsection (20) of section 624.501, Florida
137 Statutes, is amended to read:
138 624.501 Filing, license, appointment, and miscellaneous
139 fees.—The department, commission, or office, as appropriate,
140 shall collect in advance, and persons so served shall pay to it
141 in advance, fees, licenses, and miscellaneous charges as
142 follows:
143 (20) Adjusting firm, original or renewal 3-year license....
144 $60.00
145 Section 4. Subsection (9) of section 626.112, Florida
146 Statutes, is renumbered as subsection (10), paragraph (d) of
147 subsection (7) and present subsection (9) are amended, and a new
148 subsection (9) is added to that section, to read:
149 626.112 License and appointment required; agents, customer
150 representatives, adjusters, insurance agencies, service
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151 representatives, managing general agents, adjusting firms.—
152 (7)
153 (d) Effective October 1, 2015, the department must
154 automatically convert the registration of an approved registered
155 insurance agency to an insurance agency license.
156 (9)(a) An individual, firm, partnership, corporation,
157 association, or other entity may not act in its own name or
158 under a trade name, directly or indirectly, as an adjusting firm
159 unless it complies with s. 626.8696 with respect to possessing
160 an adjusting firm license for each place of business at which it
161 engages in an activity that may be performed only by a licensed
162 insurance adjuster. However, an adjusting firm that is owned and
163 operated by a single licensed adjuster conducting business in
164 his or her individual name and not employing or otherwise using
165 the services of or appointing other licensees is exempt from the
166 adjusting firm licensing requirements of this paragraph.
167 (b) A branch place of business that is established by a
168 licensed adjusting firm is considered a branch firm and is not
169 required to be licensed if:
170 1. It transacts business under the same name and federal
171 tax identification number as the licensed adjusting firm;
172 2. It has designated with the department a primary
173 adjuster operating the location as required by s. 626.8695; and
174 3. The address and telephone number of the branch location
175 have been submitted to the department for inclusion in the
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176 licensing record of the licensed adjusting firm within 30 days
177 after insurance transactions begin at the branch location.
178 (c) If an adjusting firm is required to be licensed but
179 fails to file an application for licensure in accordance with
180 this section, the department shall impose on the firm an
181 administrative penalty of up to $10,000.
182 (10)(9) Any person who knowingly transacts insurance or
183 otherwise engages in insurance activities in this state without
184 a license in violation of this section or who knowingly aids or
185 abets an unlicensed person in transacting insurance or otherwise
186 engaging in insurance activities in this state without a license
187 commits a felony of the third degree, punishable as provided in
188 s. 775.082, s. 775.083, or s. 775.084.
189 Section 5. Section 626.5813, Florida Statutes, is created
190 to read:
191 626.5813 Claims adjusting.—
192 (1)(a) As used in this section, the term "claims
193 adjusting" means directly or indirectly:
194 1. Attempting or undertaking to ascertain and determine
195 the amount of any claim, loss, or damage payable under an
196 insurance contract or undertaking to negotiate or effect
197 settlement of a claim, loss, or damage under an insurance
198 contract, if such action results in payment to or receipt of
199 money, commission, or any other thing of value by the party or
200 parties rendering such service or persons affiliated with such
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201 party or parties; or
202 2. Soliciting services as described in subparagraph 1. or
203 soliciting an insured or policyholder to file an insurance
204 claim.
205 (b) The term does not include:
206 1. Paid services as a spokesperson used as part of a
207 written or an electronic advertisement.
208 2. Paid services as a photographer or videographer used to
209 capture images of damage.
210 3. Paid services to inventory personal property or
211 business personal property.
212 4. Discussion or explanation of a bid for construction or
213 repair services by a licensed contractor under part I of chapter
214 489, or a subcontractor for a licensed contractor, with a
215 property owner or the insurer of such property.
216 (2) Except for a duly licensed attorney at law as exempted
217 under s. 626.860 or an agent as exempted under s. 626.862, a
218 person may not provide claims adjusting services unless licensed
219 and appointed as an adjuster under this part.
220 Section 6. Subsection (4) is added to section 626.602,
221 Florida Statutes, to read:
222 626.602 Insurance agency names; disapproval.—The
223 department may disapprove the use of any true or fictitious
224 name, other than the bona fide natural name of an individual, by
225 any insurance agency on any of the following grounds:
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226 (4) The name contains the word "Medicare" or "Medicaid."
227 An agency whose name contains the word "Medicare" or "Medicaid"
228 but which is licensed as of July 1, 2021, may continue to use
229 that name until June 30, 2023, as long as the agency's license
230 remains valid. If the agency's license expires or is suspended
231 or revoked, the agency may not be relicensed using that name.
232 Licenses containing either of these words automatically expire
233 on July 1, 2023, unless these words are removed from the name.
234 Section 7. Subsections (16) and (17) are added to section
235 626.621, Florida Statutes, to read:
236 626.621 Grounds for discretionary refusal, suspension, or
237 revocation of agent's, adjuster's, customer representative's,
238 service representative's, or managing general agent's license or
239 appointment.—The department may, in its discretion, deny an
240 application for, suspend, revoke, or refuse to renew or continue
241 the license or appointment of any applicant, agent, adjuster,
242 customer representative, service representative, or managing
243 general agent, and it may suspend or revoke the eligibility to
244 hold a license or appointment of any such person, if it finds
245 that as to the applicant, licensee, or appointee any one or more
246 of the following applicable grounds exist under circumstances
247 for which such denial, suspension, revocation, or refusal is not
248 mandatory under s. 626.611:
249 (16) Taking an action that allows the personal financial
250 or medical information of a consumer or customer to be made
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251 available or accessible to the general public, regardless of the
252 format in which the record is stored.
253 (17) Initiating in-person or telephone solicitation after
254 9 p.m. or before 8 a.m. local time of the prospective customer
255 unless requested by the prospective customer.
256 Section 8. Section 626.782, Florida Statutes, is amended
257 to read:
258 626.782 "Industrial class insurer" defined.—An "industrial
259 class insurer" is an insurer collecting premiums on policies of
260 writing industrial life insurance, as defined in s. 627.502,
261 written before July 1, 2021, and as to such insurance, operates
262 under a system of collecting a debit by its agent.
263 Section 9. Section 626.783, Florida Statutes, is amended
264 to read:
265 626.783 "Ordinary-combination class insurer" defined.—An
266 "ordinary-combination class insurer" is an insurer writing both
267 ordinary class insurance and collecting premiums on existing
268 industrial life class insurance under s. 626.782.
269 Section 10. Section 626.796, Florida Statutes, is
270 repealed.
271 Section 11. Subsections (6), (11), and (15) of section
272 626.854, Florida Statutes, are amended to read:
273 626.854 "Public adjuster" defined; prohibitions.—The
274 Legislature finds that it is necessary for the protection of the
275 public to regulate public insurance adjusters and to prevent the
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276 unauthorized practice of law.
277 (6) An insured or claimant may cancel a public adjuster's
278 contract to adjust a claim without penalty or obligation within
279 10 calendar 3 business days after the date on which the contract
280 is executed or within 3 business days after the date on which
281 the insured or claimant has notified the insurer of the claim,
282 whichever is later. The public adjuster's contract must contain
283 the following language in minimum 18-point bold type: "You, the
284 insured, may cancel this contract for any reason without penalty
285 or obligation to you within 10 days after the date of this
286 contract by providing notice to (name of public adjuster) ,
287 submitted in writing and sent by certified mail, return receipt
288 requested, or other form of mailing that provides proof thereof,
289 at the address specified in the contract." disclose to the
290 insured or claimant his or her right to cancel the contract and
291 advise the insured or claimant that notice of cancellation must
292 be submitted in writing and sent by certified mail, return
293 receipt requested, or other form of mailing that provides proof
294 thereof, to the public adjuster at the address specified in the
295 contract; provided, during any state of emergency as declared by
296 the Governor and for 1 year after the date of loss, the insured
297 or claimant has 5 business days after the date on which the
298 contract is executed to cancel a public adjuster's contract.
299 (11) Each public adjuster must provide to the claimant or
300 insured a written estimate of the loss to assist in the
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301 submission of a proof of loss or any other claim for payment of
302 insurance proceeds within 60 days after the date of the public
303 adjuster's contract. The written estimate must include an
304 itemized, per-unit estimate of the repairs, including itemized
305 information on equipment, materials, labor, and supplies, in
306 accordance with accepted industry standards. The public adjuster
307 shall retain such written estimate for at least 5 years and
308 shall make the estimate available to the claimant or insured,
309 the insurer, and the department upon request.
310 (15) A licensed contractor under part I of chapter 489, or
311 a subcontractor, may not adjust a claim on behalf of an insured,
312 or solicit an insured to file an insurance claim, unless
313 licensed and compliant as a public adjuster under this chapter.
314 However, the contractor may discuss or explain a bid for
315 construction or repair of covered property with the residential
316 property owner who has suffered loss or damage covered by a
317 property insurance policy, or the insurer of such property, if
318 the contractor is doing so for the usual and customary fees
319 applicable to the work to be performed as stated in the contract
320 between the contractor and the insured.
321 Section 12. Effective January 1, 2022, subsection (3) of
322 section 626.916, Florida Statutes, is amended, and paragraph (f)
323 is added to subsection (1) of that section, to read:
324 626.916 Eligibility for export.—
325 (1) No insurance coverage shall be eligible for export
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326 unless it meets all of the following conditions:
327 (f) The insured has signed or otherwise provided
328 documented acknowledgment of a disclosure in substantially the
329 following form: "You are agreeing to place coverage in the
330 surplus lines market. Coverage may be available in the admitted
331 market. Persons insured by surplus lines carriers are not
332 protected under the Florida Insurance Guaranty Act with respect
333 to any right of recovery for the obligation of an insolvent
334 unlicensed insurer."
335 (3)(a) Subsection (1) does not apply to wet marine and
336 transportation or aviation risks that which are subject to s.
337 626.917.
338 (b) Paragraphs (1)(a)-(d) do not apply to classes of
339 insurance which are subject to s. 627.062(3)(d)1. These classes
340 may be exportable under the following conditions:
341 1. The insurance must be placed only by or through a
342 surplus lines agent licensed in this state;
343 2. The insurer must be made eligible under s. 626.918; and
344 3. The insured has complied with paragraph (1)(f) must
345 sign a disclosure that substantially provides the following:
346 "You are agreeing to place coverage in the surplus lines market.
347 Superior coverage may be available in the admitted market and at
348 a lesser cost. Persons insured by surplus lines carriers are not
349 protected under the Florida Insurance Guaranty Act with respect
350 to any right of recovery for the obligation of an insolvent
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351 unlicensed insurer." If the disclosure in paragraph (1)(f)
352 notice is signed by the insured, the insured is presumed to have
353 been informed and to know that other coverage may be available,
354 and, with respect to the diligent-effort requirement under
355 subsection (1), there is no liability on the part of, and no
356 cause of action arises against, the retail agent presenting the
357 form.
358 Section 13. Paragraph (z) of subsection (1) of section
359 626.9541, Florida Statutes, is amended to read:
360 626.9541 Unfair methods of competition and unfair or
361 deceptive acts or practices defined.—
362 (1) UNFAIR METHODS OF COMPETITION AND UNFAIR OR DECEPTIVE
363 ACTS.—The following are defined as unfair methods of competition
364 and unfair or deceptive acts or practices:
365 (z) Sliding.—Sliding is the act or practice of any of the
366 following:
367 1. Representing to the applicant that a specific ancillary
368 coverage or product is required by law in conjunction with the
369 purchase of insurance when such coverage or product is not
370 required.;
371 2. Representing to the applicant that a specific ancillary
372 coverage or product is included in the policy applied for
373 without an additional charge when such charge is required.; or
374 3. Charging an applicant for a specific ancillary coverage
375 or product, in addition to the cost of the insurance coverage
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376 applied for, without the informed consent of the applicant.
377 4. Initiating, effectuating, binding, or otherwise issuing
378 a policy of insurance without the prior informed consent of the
379 owner of the property to be insured.
380 5. Mailing, transmitting, or otherwise submitting by any
381 means an invoice for premium payment to a mortgagee or escrow
382 agent for the purpose of effectuating an insurance policy,
383 without the prior informed consent of the owner of the property
384 to be insured. However, this subparagraph does not apply in
385 cases where the mortgagee or escrow agent is renewing insurance
386 or issuing collateral protection insurance, as defined in s.
387 624.6085, pursuant to the mortgage or other pertinent loan
388 documents or communications regarding the property.
389 Section 14. Effective January 1, 2022, subsection (3) of
390 section 626.9741, Florida Statutes, is amended to read:
391 626.9741 Use of credit reports and credit scores by
392 insurers.—
393 (3) An insurer must inform an applicant or insured, in the
394 same medium as the application is taken, that a credit report or
395 score is being requested for underwriting or rating purposes.
396 The notification to the applicant or insured must include the
397 following language: "The Department of Financial Services offers
398 free financial literacy programs to assist you with insurance-
399 related questions, including how credit works and how credit
400 scores are calculated. To learn more, visit
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401 www.myfloridacfo.com." An insurer that makes an adverse decision
402 based, in whole or in part, upon a credit report must provide at
403 no charge, a copy of the credit report to the applicant or
404 insured or provide the applicant or insured with the name,
405 address, and telephone number of the consumer reporting agency
406 from which the insured or applicant may obtain the credit
407 report. The insurer must provide notification to the consumer
408 explaining the reasons for the adverse decision. The reasons
409 must be provided in sufficiently clear and specific language so
410 that a person can identify the basis for the insurer's adverse
411 decision. Such notification must shall include a description of
412 the four primary reasons, or such fewer number as existed, which
413 were the primary influences of the adverse decision. The use of
414 generalized terms such as "poor credit history," "poor credit
415 rating," or "poor insurance score" does not meet the explanation
416 requirements of this subsection. A credit score may not be used
417 in underwriting or rating insurance unless the scoring process
418 produces information in sufficient detail to permit compliance
419 with the requirements of this subsection. It is shall not be
420 deemed an adverse decision if, due to the insured's credit
421 report or credit score, the insured continues to receive a less
422 favorable rate or placement in a less favorable tier or company
423 at the time of renewal except for renewals or reunderwriting
424 required by this section.
425 Section 15. Subsection (5) of section 626.9953, Florida
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426 Statutes, is amended to read:
427 626.9953 Qualifications for registration; application
428 required.—
429 (5) An applicant must submit a set of his or her
430 fingerprints to the department and pay the processing fee
431 established under s. 624.501(23) s. 624.501(24). The department
432 shall submit the applicant's fingerprints to the Department of
433 Law Enforcement for processing state criminal history records
434 checks and local criminal records checks through local law
435 enforcement agencies and for forwarding to the Federal Bureau of
436 Investigation for national criminal history records checks. The
437 fingerprints shall be taken by a law enforcement agency, a
438 designated examination center, or another department-approved
439 entity. The department may not approve an application for
440 registration as a navigator if fingerprints have not been
441 submitted.
442 Section 16. Subsection (1) of section 626.9957, Florida
443 Statutes, is amended to read:
444 626.9957 Conduct prohibited; denial, revocation, or
445 suspension of registration.—
446 (1) As provided in s. 626.112, only a person licensed as
447 an insurance agent or customer representative may engage in the
448 solicitation of insurance. A person who engages in the
449 solicitation of insurance as described in s. 626.112(1) without
450 such license is subject to the penalties provided under s.
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451 626.112(10) s. 626.112(9).
452 Section 17. Subsection (10) of section 627.062, Florida
453 Statutes, is amended to read:
454 627.062 Rate standards.—
455 (10) Any interest paid pursuant to s. 627.70131(7) s.
456 627.70131(5) may not be included in the insurer's rate base and
457 may not be used to justify a rate or rate change.
458 Section 18. Section 627.502, Florida Statutes, is amended
459 to read:
460 627.502 "Industrial life insurance" defined; reporting;
461 prohibition on new policies after a certain date.—
462 (1) For the purposes of this code, "industrial life
463 insurance" is that form of life insurance written under policies
464 under which premiums are payable monthly or more often, bearing
465 the words "industrial policy" or "weekly premium policy" or
466 words of similar import imprinted upon the policies as part of
467 the descriptive matter, and issued by an insurer that which, as
468 to such industrial life insurance, is operating under a system
469 of collecting a debit by its agent.
470 (2) Every life insurer servicing existing transacting
471 industrial life insurance shall report to the office all annual
472 statement data regarding the exhibit of life insurance,
473 including relevant information for industrial life insurance.
474 (3) Beginning July 1, 2021, a life insurer may not write a
475 new policy of industrial life insurance.
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476 Section 19. Effective January 1, 2022, section 627.70131,
477 Florida Statutes, is amended to read:
478 627.70131 Insurer's duty to acknowledge communications
479 regarding claims; investigation.—
480 (1)(a) Upon an insurer's receiving a communication with
481 respect to a claim, the insurer shall, within 14 calendar days,
482 review and acknowledge receipt of such communication unless
483 payment is made within that period of time or unless the failure
484 to acknowledge is caused by factors beyond the control of the
485 insurer which reasonably prevent such acknowledgment. If the
486 acknowledgment is not in writing, a notification indicating
487 acknowledgment shall be made in the insurer's claim file and
488 dated. A communication made to or by a representative an agent
489 of an insurer with respect to a claim shall constitute
490 communication to or by the insurer.
491 (b) As used in this subsection, the term "representative"
492 "agent" means any person to whom an insurer has granted
493 authority or responsibility to receive or make such
494 communications with respect to claims on behalf of the insurer.
495 (c) This subsection does shall not apply to claimants
496 represented by counsel beyond those communications necessary to
497 provide forms and instructions.
498 (2) Such acknowledgment shall be responsive to the
499 communication. If the communication constitutes a notification
500 of a claim, unless the acknowledgment reasonably advises the
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501 claimant that the claim appears not to be covered by the
502 insurer, the acknowledgment shall provide necessary claim forms,
503 and instructions, including an appropriate telephone number.
504 (3)(a) Unless otherwise provided by the policy of
505 insurance or by law, within 14 10 working days after an insurer
506 receives proof of loss statements, the insurer shall begin such
507 investigation as is reasonably necessary unless the failure to
508 begin such investigation is caused by factors beyond the control
509 of the insurer which reasonably prevent the commencement of such
510 investigation.
511 (b) If such investigation involves a physical inspection
512 of the property, the licensed adjuster assigned by the insurer
513 must provide the policyholder with a printed or electronic
514 document containing his or her name and license number.
515 (c) Any subsequent communication with the policyholder
516 regarding the claim must also include the name and license
517 number of the adjuster communicating about the claim.
518 Communication of the adjuster's name and license number may be
519 included along with other information already being provided to
520 the policyholder.
521 (4) An insurer shall maintain a record or log of each
522 adjuster who communicates with the policyholder as provided in
523 paragraphs (3)(b) and (3)(c), and shall provide a list of the
524 adjusters to the policyholder, the office, or the department
525 upon request.
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526 (5) For purposes of this section, the term "insurer" means
527 any residential property insurer.
528 (6)(a) When providing a preliminary or partial estimate of
529 damage regarding a claim, an insurer shall include with the
530 estimate the following statement printed in at least 12-point
531 bold, uppercase type: THIS ESTIMATE REPRESENTS OUR CURRENT
532 EVALUATION OF THE COVERED DAMAGES TO YOUR INSURED PROPERTY AND
533 MAY BE REVISED AS WE CONTINUE TO EVALUATE YOUR CLAIM. IF YOU
534 HAVE QUESTIONS, CONCERNS, OR ADDITIONAL INFORMATION REGARDING
535 YOUR CLAIM, WE ENCOURAGE YOU TO CONTACT US.
536 (b) When providing a payment on a claim which is not the
537 full and final payment for the claim, an insurer shall include
538 with the payment the following statement printed in at least 12-
539 point bold, uppercase type: WE ARE CONTINUING TO EVALUATE YOUR
540 CLAIM INVOLVING YOUR INSURED PROPERTY AND MAY ISSUE ADDITIONAL
541 PAYMENTS. IF YOU HAVE QUESTIONS, CONCERNS, OR ADDITIONAL
542 INFORMATION REGARDING YOUR CLAIM, WE ENCOURAGE YOU TO CONTACT
543 US.
544 (7)(a)(5)(a) Within 90 days after an insurer receives
545 notice of an initial, reopened, or supplemental property
546 insurance claim from a policyholder, the insurer shall pay or
547 deny such claim or a portion of the claim unless the failure to
548 pay is caused by factors beyond the control of the insurer which
549 reasonably prevent such payment. Any payment of an initial or
550 supplemental claim or portion of such claim made 90 days after
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551 the insurer receives notice of the claim, or made more than 15
552 days after there are no longer factors beyond the control of the
553 insurer which reasonably prevented such payment, whichever is
554 later, bears interest at the rate set forth in s. 55.03.
555 Interest begins to accrue from the date the insurer receives
556 notice of the claim. The provisions of this subsection may not
557 be waived, voided, or nullified by the terms of the insurance
558 policy. If there is a right to prejudgment interest, the insured
559 shall select whether to receive prejudgment interest or interest
560 under this subsection. Interest is payable when the claim or
561 portion of the claim is paid. Failure to comply with this
562 subsection constitutes a violation of this code. However,
563 failure to comply with this subsection does not form the sole
564 basis for a private cause of action.
565 (b) Notwithstanding subsection (5) (4), for purposes of
566 this subsection, the term "claim" means any of the following:
567 1. A claim under an insurance policy providing residential
568 coverage as defined in s. 627.4025(1);
569 2. A claim for structural or contents coverage under a
570 commercial property insurance policy if the insured structure is
571 10,000 square feet or less; or
572 3. A claim for contents coverage under a commercial tenant
573 policy if the insured premises is 10,000 square feet or less.
574 (c) This subsection does shall not apply to claims under
575 an insurance policy covering nonresidential commercial
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576 structures or contents in more than one state.
577 (8) This section also applies to surplus lines insurers
578 and to surplus lines insurance authorized under ss. 626.913-
579 626.937 providing residential coverage.
580 Section 20. Section 627.7031, Florida Statutes, is created
581 to read:
582 627.7031 Foreign venue clauses prohibited.—After July 1,
583 2021, a personal residential property insurance policy sold in
584 the state and insuring only real property located in the state
585 may not require an insured to pursue dispute resolution through
586 litigation, arbitration, or mediation outside the state. This
587 section also applies to surplus lines insurers and to surplus
588 lines insurance authorized under ss. 626.913-626.937.
589 Section 21. Effective January 1, 2022, section 627.7142,
590 Florida Statutes, is amended to read:
591 627.7142 Homeowner Claims Bill of Rights.—An insurer
592 issuing a personal lines residential property insurance policy
593 in this state must provide a Homeowner Claims Bill of Rights to
594 a policyholder within 14 days after receiving an initial
595 communication with respect to a claim, unless the claim follows
596 an event that is the subject of a declaration of a state of
597 emergency by the Governor. The purpose of the bill of rights is
598 to summarize, in simple, nontechnical terms, existing Florida
599 law regarding the rights of a personal lines residential
600 property insurance policyholder who files a claim of loss. The
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601 Homeowner Claims Bill of Rights is specific to the claims
602 process and does not represent all of a policyholder's rights
603 under Florida law regarding the insurance policy. The Homeowner
604 Claims Bill of Rights does not create a civil cause of action by
605 any individual policyholder or class of policyholders against an
606 insurer or insurers. The failure of an insurer to properly
607 deliver the Homeowner Claims Bill of Rights is subject to
608 administrative enforcement by the office but is not admissible
609 as evidence in a civil action against an insurer. The Homeowner
610 Claims Bill of Rights does not enlarge, modify, or contravene
611 statutory requirements, including, but not limited to, ss.
612 626.854, 626.9541, 627.70131, 627.7015, and 627.7074, and does
613 not prohibit an insurer from exercising its right to repair
614 damaged property in compliance with the terms of an applicable
615 policy or ss. 627.7011(5)(e) and 627.702(7). The Homeowner
616 Claims Bill of Rights must state:
617
618 HOMEOWNER CLAIMS
619 BILL OF RIGHTS
620 This Bill of Rights is specific to the claims process and does
621 not represent all of your rights under Florida law regarding
622 your policy. There are also exceptions to the stated timelines
623 when conditions are beyond your insurance company's control.
624 This document does not create a civil cause of action by an
625 individual policyholder, or a class of policyholders, against an
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626 insurer or insurers and does not prohibit an insurer from
627 exercising its right to repair damaged property in compliance
628 with the terms of an applicable policy.
629
630 YOU HAVE THE RIGHT TO:
631 1. Receive from your insurance company an acknowledgment
632 of your reported claim within 14 days after the time you
633 communicated the claim.
634 2. Upon written request, receive from your insurance
635 company within 30 days after you have submitted a complete
636 proof-of-loss statement to your insurance company, confirmation
637 that your claim is covered in full, partially covered, or
638 denied, or receive a written statement that your claim is being
639 investigated.
640 3. Within 90 days, subject to any dual interest noted in
641 the policy, receive full settlement payment for your claim or
642 payment of the undisputed portion of your claim, or your
643 insurance company's denial of your claim.
644 4. Receive payment of interest, as provided in section
645 627.70131, Florida Statutes, from your insurance company, which
646 begins accruing from the date your claim is filed if your
647 insurance company does not pay full settlement of your initial,
648 reopened, or supplemental claim or the undisputed portion of
649 your claim or does not deny your claim within 90 days after your
650 claim is filed. The interest, if applicable, must be paid when
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651 your claim or undisputed portion of your claim is paid.
652 5.4. Have free mediation of your disputed claim by the
653 Florida Department of Financial Services, Division of Consumer
654 Services, under most circumstances and subject to certain
655 restrictions.
656 6.5. Have neutral evaluation of your disputed claim, if
657 your claim is for damage caused by a sinkhole and is covered by
658 your policy.
659 7.6. Contact the Florida Department of Financial Services,
660 Division of Consumer Services' toll-free helpline for assistance
661 with any insurance claim or questions pertaining to the handling
662 of your claim. You can reach the Helpline by phone at...(toll-
663 free phone number)..., or you can seek assistance online at the
664 Florida Department of Financial Services, Division of Consumer
665 Services' website at...(website address)....
666
667 YOU ARE ADVISED TO:
668 1. Contact your insurance company before entering into any
669 contract for repairs to confirm any managed repair policy
670 provisions or optional preferred vendors.
671 2. Make and document emergency repairs that are necessary
672 to prevent further damage. Keep the damaged property, if
673 feasible, keep all receipts, and take photographs or video of
674 damage before and after any repairs to provide to your insurer.
675 3. Carefully read any contract that requires you to pay
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676 out-of-pocket expenses or a fee that is based on a percentage of
677 the insurance proceeds that you will receive for repairing or
678 replacing your property.
679 4. Confirm that the contractor you choose is licensed to
680 do business in Florida. You can verify a contractor's license
681 and check to see if there are any complaints against him or her
682 by calling the Florida Department of Business and Professional
683 Regulation. You should also ask the contractor for references
684 from previous work.
685 5. Require all contractors to provide proof of insurance
686 before beginning repairs.
687 6. Take precautions if the damage requires you to leave
688 your home, including securing your property and turning off your
689 gas, water, and electricity, and contacting your insurance
690 company and provide a phone number where you can be reached.
691 Section 22. Paragraph (a) of subsection (1) and subsection
692 (6) of section 631.57, Florida Statutes, are amended to read:
693 631.57 Powers and duties of the association.—
694 (1) The association shall:
695 (a)1. Be obligated to the extent of the covered claims
696 existing:
697 a. Before Prior to adjudication of insolvency and arising
698 within 30 days after the determination of insolvency;
699 b. Before the policy expiration date if less than 30 days
700 after the determination; or
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701 c. Before the insured replaces the policy or causes its
702 cancellation, if she or he does so within 30 days of the
703 determination.
704 2. The obligation under subparagraph 1. includes only the
705 amount of each covered claim which is in excess of $100 and is
706 less than $300,000, except that policies providing coverage for
707 homeowner's insurance shall provide for an additional $200,000
708 for the portion of a covered claim which relates only to the
709 damage to the structure and contents.
710 3.a. Notwithstanding subparagraph 2., the obligation under
711 subparagraph 1. for policies covering condominium associations
712 or homeowners' associations, which associations have a
713 responsibility to provide insurance coverage on residential
714 units within the association, shall include that amount of each
715 covered property insurance claim which is less than $200,000
716 multiplied by the number of condominium units or other
717 residential units; however, as to homeowners' associations, this
718 sub-subparagraph applies only to claims for damage or loss to
719 residential units and structures attached to residential units.
720 b. Notwithstanding sub-subparagraph a., the association
721 has no obligation to pay covered claims that are to be paid from
722 the proceeds of bonds issued under s. 631.695. However, the
723 association shall assign and pledge the first available moneys
724 from all or part of the assessments to be made under paragraph
725 (3)(a) to or on behalf of the issuer of such bonds for the
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726 benefit of the holders of such bonds. The association shall
727 administer any such covered claims and present valid covered
728 claims for payment in accordance with the provisions of the
729 assistance program in connection with which such bonds have been
730 issued.
731 4. In no event shall the association be obligated to a
732 policyholder or claimant in an amount in excess of the
733 obligation of the insolvent insurer under the policy from which
734 the claim arises.
735 (6) The association may extend the time limits specified
736 in paragraph (1)(a) by up to an additional 60 days or waive the
737 applicability of the $100 deductible specified in paragraph
738 (1)(a) if the board determines that either or both such actions
739 are necessary to facilitate the bulk assumption of obligations.
740 Section 23. Subsection (2) of section 631.904, Florida
741 Statutes, is amended to read:
742 631.904 Definitions.—As used in this part, the term:
743 (2) "Covered claim" means an unpaid claim, including a
744 claim for return of unearned premiums, which arises out of, is
745 within the coverage of, and is not in excess of the applicable
746 limits of, an insurance policy to which this part applies, which
747 policy was issued by an insurer and which claim is made on
748 behalf of a claimant or insured who was a resident of this state
749 at the time of the injury. The term "covered claim" includes
750 unpaid claims under any employer liability coverage of a
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751 workers' compensation policy limited to the lesser of $300,000
752 or the limits of the policy. The term "covered claim" does not
753 include any amount sought as a return of premium under any
754 retrospective rating plan; any amount due any reinsurer,
755 insurer, insurance pool, or underwriting association, as
756 subrogation recoveries or otherwise; any claim that would
757 otherwise be a covered claim that has been rejected or denied by
758 any other state guaranty fund based upon that state's statutory
759 exclusions, including, but not limited to, those based on
760 coverage, policy type, or an insured's net worth, except this
761 exclusion from the definition of covered claim does not apply to
762 employers who, before prior to April 30, 2004, entered into an
763 agreement with the corporation preserving the employer's right
764 to seek coverage of claims rejected by another state's guaranty
765 fund; or any return of premium resulting from a policy that was
766 not in force on the date of the final order of liquidation.
767 Member insurers have no right of subrogation against the insured
768 of any insolvent insurer. This provision applies retroactively
769 to cover claims of an insolvent self-insurance fund resulting
770 from accidents or losses incurred before prior to January 1,
771 1994, regardless of the date the petition in circuit court was
772 filed alleging insolvency and the date the court entered an
773 order appointing a receiver.
774 Section 24. Section 648.30, Florida Statutes, is amended
775 to read:
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776 648.30 Licensure and appointment required; prohibited
777 acts; penalties.—
778 (1) A person may not act in the capacity of a bail bond
779 agent or temporary bail bond agent or perform any of the
780 functions, duties, or powers prescribed for bail bond agents or
781 temporary bail bond agents under this chapter unless that person
782 is qualified, licensed, and appointed as provided in this
783 chapter.
784 (2) A person may not represent himself or herself to be a
785 bail enforcement agent, bounty hunter, or other similar title in
786 this state.
787 (3) A person, other than a certified law enforcement
788 officer, may not apprehend, detain, or arrest a principal on a
789 bond, wherever issued, unless that person is qualified,
790 licensed, and appointed as provided in this chapter or licensed
791 as a bail bond agent or bail bond enforcement agent, or holds an
792 equivalent license by the state where the bond was written.
793 (4) Any person who violates this section commits a felony
794 of the third degree, punishable as provided in s. 775.082, s.
795 775.083, or s. 775.084.
796 (5) Any licensee under this chapter who knowingly aids or
797 abets an unlicensed person in violating this section commits a
798 felony of the third degree, punishable as provided in s.
799 775.082, s. 775.083, or s. 775.084.
800 Section 25. Except as otherwise expressly provided in this
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801 act, this act shall take effect upon becoming a law.
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HB 737
HOUSE OF REPRESENTATIVES STAFF ANALYSIS
BILL #: HB 737 Craft Distilleries
SPONSOR(S): DiCeglie
TIED BILLS: IDEN./SIM. BILLS: CS/CS/SB 46
REFERENCE ACTION ANALYST STAFF DIRECTOR or
BUDGET/POLICY CHIEF
1) Regulatory Reform Subcommittee 17 Y, 0 N Willson Anstead
2) State Administration & Technology 14 Y, 0 N Helpling Topp
Appropriations Subcommittee
3) Commerce Committee Willson Hamon
SUMMARY ANALYSIS
In Florida, the Beverage Law regulates the manufacture, distribution, and sale of wine, beer, and liquor by
manufacturers, distributors, and vendors. The Division of Alcoholic Beverages and Tobacco in the Department
of Business and Professional Regulation administers and enforces the Beverage Law.
The bill creates a quota license exemption for craft distilleries located in a community redevelopment area,
subject to certain requirements and limitations.
The bill amends the craft distillery requirements in s. 565.03, F.S., as follows:
Increases the production limit to qualify as a craft distillery from 75,000 gallons per calendar year to
250,000 gallons per calendar year.
Limits the amount of distilled spirits that may be transferred to the craft distillery’s souvenir gift shop for sale
to consumers to 75,000 gallons per calendar year.
Effective July 1, 2026, requires that a minimum of 60% of the craft distillery’s total branded products must
be distilled in this state and contain one or more Florida agricultural products.
Authorizes a maximum of 10 craft distillery licenses under common ownership, consisting of four with a
production cap of 250,000 gallons and six with a production cap of 50,000 gallons. “Common ownership” is
defined to mean “having a direct or indirect financial interest in two or more distilleries by the same person.”
Allows craft distilleries to sell distilled spirits manufactured on the premises to consumers by the drink or by
package.
Clarifies that craft distilleries may only sell directly to consumers in face-to-face transactions.
Repeals the six bottle limit per branded product per consumer at a craft distillery’s souvenir gift shop.
Prohibits craft distilleries from shipping alcoholic beverages to consumers.
The bill also authorizes a craft distillery permit for tastings at Florida fairs, trade shows, farmers markets,
expositions, and festivals.
The bill appears to have no fiscal impact on state government. The bill may have a positive fiscal impact for
certain entities involved in the production or sale of distilled spirits.
The bill provides 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:
Current Situation
Beverage Law and the Three-Tier System
In Florida, the Beverage Law1 regulates the manufacture, distribution, and sale of wine, beer, and liquor
by manufacturers, distributors, and vendors. The Division of Alcoholic Beverages and Tobacco
(Division) within the Department of Business and Professional Regulation (DBPR) administers and
enforces the Beverage Law.2
“Alcoholic beverages” are defined in s. 561.01, F.S., as “distilled spirits and all beverages containing
one-half of 1 percent or more alcohol by volume.” “Malt beverages” are brewed alcoholic beverages
containing malt.3
Since the repeal of Prohibition, regulation of alcohol in the United States has traditionally been based
upon what is termed the “three-tier system.” The system requires separation of the manufacture,
distribution, and sale of alcoholic beverages. The manufacturer creates the beverages, and the
distributor obtains the beverages from the manufacturer to deliver to the vendor. The vendor makes the
ultimate sale to the consumer.4
Generally, only licensed vendors are permitted to sell alcoholic beverages directly to consumers at
retail, and manufacturers, distributors, and exporters5 are generally prohibited from holding a vendor’s
license.6 Manufacturers, distributors, and vendors are generally prohibited from being licensed or
having an interest in more than one tier. Limited exceptions, subject to certain conditions, include the
ability for a craft brewery to hold a vendor’s license (tap room), a restaurant to hold a manufacturer’s
license (brew pub), and a winery to hold up to three vendor’s licenses.7
Exceptions
Exceptions to the three-tier regulatory system allow certain in-state wineries,8 craft breweries,9 and craft
distilleries to sell directly to consumers.10 Further, certain restaurants may be granted a vendor’s
license to manufacture a limited quantity of malt beverages which can be sold to consumers for
consumption on premises.11
Wineries may receive up to 3 vendor’s licenses on property contiguous to the manufacturing premises
of the winery.12 Section 599.004, F.S., establishes the Florida Farm Winery Program within the
Department of Agriculture and Consumer Services. The requirements for certification include that a
winery produce or sell less than 250,000 gallons of wine annually of which 60% is made from state
agricultural products, maintain a minimum of 5 acres of owned or managed land in Florida which
1 Section 561.01(6), F.S., provides that the “The Beverage Law” means chs. 561, 562, 563, 564, 565, 567, and 568, F.S.
2 S. 561.02, F.S.
3 S. 563.01, F.S.
4 S. 561.14, F.S.
5 Section 561.01(16), F.S. “Exporter” means any person that sells alcoholic beverages to persons for use outside the
state.
6 Ss. 561.22(1), 561.14(3), F.S. However, see the exceptions provided in ss. 561.221 and 565.03, F.S.
7 See ss. 561.22, 561.24, 561.14(1), and 563.022(14), F.S.
8 See s. 561.221(1), F.S.
9 See s. 561.221(2), F.S.
10 See s. 565.03, F.S.
11 See s. 561.221(3), F.S.
12 See s. 561.221(1), F.S.
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produces commodities used in the production of wine, be open to the public for tours, tastings, and
sales at least 30 hours each week, and pay an annual application and registration fee of $100.
Section 561.24, F.S., prohibits the licensing of a manufacturer as a distributor or exporter. Wineries that
qualify as a certified Florida Farm Winery are the sole exception to this prohibition. Additionally, the
Division may issue permits for a certified Florida Farm Winery to conduct tasting and sales of its wines
at Florida fairs, trade shows, expositions, and festivals. The permit is limited to the length of the event.
The certified Florida Farm Winery is required to pay all entry fees and must have a winery
representative present during the event.
Quota Licenses
Section 561.20, F.S., limits, by county, the number of alcoholic beverage licenses that may be issued to
permit the sale of liquor (distilled spirits) to one license per 7,500 residents within the county. These
limited alcoholic beverage licenses are known as “quota” licenses. New quota licenses are created and
issued when there is an increase in the population of a county. The licenses can also be issued when a
county initially changes from a county which does not permit the sale of intoxicating liquor to one that
does permit their sale. The quota license is the only alcoholic beverage license that is limited in
number; all other types of alcoholic beverage licenses are available without limitation. A person, firm, or
corporation may not have an interest, directly or indirectly, in more than 30 percent of the number of
quota licenses in a county.13
Quota License Exemptions
Current law permits certain types of businesses or persons to be licensed to sell beer, wine, and liquor
without any limitation on the number of such licenses which may be issued in a county, i.e., such
licenses are not subject to the quota in s. 561.20, F.S. Exemptions from the quota license system are
known as “special licenses.”
Section 561.20(2), F.S., provides several exemptions to the number of licenses that permit the sale of
beer, wine, and distilled spirits. The exemptions include restaurants, caterers, hotels and motels,
specialty centers built on government-owned land, bowling establishments, and airports.
The Beverage Law provides a limited exemption to the quota license limitation to permit the division to
issue an alcoholic beverage license (for the sale of beer, wine, and liquor) to:
An operator of railroads or sleeping cars and a vendor in railroad transit stations.14
Operators of steamships and steamship lines, buses and bus lines, or airplanes and airlines
engaged in interstate or foreign commerce or flying between fixed terminals and upon fixed
schedules in this state.15
Persons associated together as a chartered or incorporated club, if not organized for the
purpose of evading license taxes and meeting certain conditions, including any golf club
operated by or on behalf of any incorporated municipality in this state, and any veterans' or
fraternal organization of national scope.16
A caterer at a horse or dog racetrack or jai alai fronton.17
A vendor who operates places of business where consumption on the premises is permitted,
which premises are located within a theme park complex and meeting specified conditions.18
A marine exhibition park complex meeting specified conditions.19
A state-chartered legal entity not for profit organized principally for the purpose of supporting or
managing the affairs of a symphony orchestra.20
13 S. 561.20(6), F.S.
14 S. 565.02(2), F.S.
15 S. 565.02(3), F.S.
16 S. 565.02(4), F.S.
17 S. 565.02(5), F.S.
18 S. 565.02(6), F.S.
19 S. 565.02(7), F.S.
20 S. 565.02(8), F.S.
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The operator of a passenger vessel engaged exclusively in foreign commerce.21
A state-chartered legal entity not for profit organized principally for the purpose of operating a
theater with live performances and not fewer than 100 seats.22
The John and Mable Ringling Museum of Art direct-support organization.23
Alcoholic Beverage Deliveries
Vendors, but not manufacturers or distributors, are allowed to make deliveries away from their place of
business for sales actually made at their licensed place of business. Telephone, electronic, and mail
orders received at a vendor’s licensed place of business are construed as a sale actually made at the
vendor’s licensed place of business. Deliveries may be made in vehicles that are owned or leased by
the vendor, or in a third-party vehicle pursuant to a contract with a third party with whom the vendor has
contracted to make deliveries, including, but not limited to, common carriers.24
A craft brewery which also holds a vendor’s license is specifically prohibited from making deliveries
under this law.25
Distilleries and Craft Distilleries
Section 565.01, F.S., defines the terms “liquor,” “distilled spirits,” “spirituous liquors,” “spirituous
beverages,” or “distilled spirituous liquors” to mean “that substance known as ethyl alcohol, ethanol, or
spirits of wine in any form, including all dilutions and mixtures thereof from whatever source or by
whatever process produced.”
A “distillery” is a manufacturer of distilled spirits, and a “craft distillery” is a licensed distillery that
produces 75,000 or fewer gallons of distilled spirits per calendar year on its premises. A craft distillery
must notify the Division in writing of its decision to qualify as a craft distillery.26
A distillery engaged solely in the business of manufacturing distilled spirits, or a person engaged in the
business of blending and rectifying distilled spirits must pay a state license tax of $4,000 for each plant
or branch operating in Florida. The license tax for a craft distillery is $1,000. Persons who engage in the
business of distilling spirits may also rectify and blend spirituous liquors without paying an additional
license tax.27
According to the Division, 61 of the 64 licensed distilleries operating in Florida produce less than
75,000 gallons of distilled spirits.28
A craft distillery is allowed to sell to consumers branded products,29 distilled on the licensed premises,
in factory-sealed containers that are filled at the distillery and sold for off-premises consumption only.
The sales must occur at the distillery’s souvenir gift shop located on private property contiguous to the
licensed distillery premises, and included on the sketch submitted with the license application. Sales
must be in face-to-face transactions with consumers who are making a purchase of no more than six
individual containers of each branded product.30 The craft distillery is not required to obtain a vendor’s
license to sell to consumers from their souvenir gift shop.
21 S. 565.02(9), F.S.
22 S. 565.02(10), F.S.
23 S. 565.02(11), F.S.
24 S. 561.57(1) & (2), F.S.
25 Ss. 561.221 (2)(d), and 565.57(1), F.S.
26 S. 565.03(1)(b) & (c), F.S.
27 S. 565.03(2)(b), F.S.
28 Department of Business and Professional Regulation, Agency Analysis of 2020 HB 583, p. 5-6 (Dec. 6, 2019).
29 Section 565.03(1)(a), F.S., defines “branded product” to mean “any distilled spirits product manufactured on site, which
requires a federal certificate and label approval by the Federal Alcohol Administration Act or federal regulations.”
30 S. 565.03(1)(c), F.S.
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The Division must approve any subsequent revisions to a craft distillery’s sketch to verify that the
souvenir gift shop location operated by the craft distillery is “owned or leased by the craft distillery and
on property contiguous to the craft distillery’s production building.”31
Section 565.03, F.S., imposes the following requirements and prohibitions for craft distilleries:
A craft distillery may not ship, arrange to ship, or deliver distilled spirits to consumers, but may
ship, arrange to ship, or deliver distilled spirits to manufacturers of distilled spirits, wholesale
distributors of distilled spirits, state or federal bonded warehouses, and exporters.
A craft distillery may not transfer its license or any ownership interest to any individual or entity
with a direct or indirect interest in another distillery licensed in any other state, territory, or
country. However, a craft distillery may be affiliated with another distillery that produces 75,000
or fewer gallons per calendar year of distilled spirits on its premises or in any other state,
territory, or country.
A craft distillery must report to the Division within 5 business days after it has reached the
75,000-gallon production limit and cease making sales to consumers on the day after it reaches
the production limit.
A craft distillery must submit beverage excise taxes on distilled spirits sold to consumers in its
monthly report to the Division.
Containers must comply with the container limits in s. 565.10, F.S., which prohibits the sale and
distribution of distilled spirits in any size container in excess of 1.75 liters or 59.18 ounces.
Declaratory Statement
On January 19, 2018, the Division issued a declaratory statement interpreting s. 565.03(2)(c), F.S., to
permit a craft distillery to sell to consumers, at its souvenir gift shop, a product comprised of a blend of
liquors distilled on the premises of the craft distillery and liquors distilled by other manufacturers away
from the premises. The craft distillery may then, at the craft distillery, fill individual containers with the
final, blended liquor product for sale at its souvenir gift shop.32 However, a craft distillery may not sell to
consumers a product comprised of a blend of only liquors distilled by other manufacturers away from
the craft distillery’s licensed premises.33
Beverage Tastings
Section 565.17, F.S., permits licensed distributors of spirituous beverages and vendors to conduct
spirituous beverage tastings at any licensed premises authorized to sell spirituous beverages by
package or for consumption on premises without violating s. 561.42, F.S., provided that the conduct of
the spirituous beverage tasting is limited to and directed toward the general public of the age of legal
consumption.
Community Redevelopment Areas
The Community Redevelopment Act of 1969 authorizes a county or municipality to create a community
redevelopment agency (CRA) as a means of redeveloping slums and blighted areas.34 The act defines
a “blighted area” as an area in which there are a substantial number of deteriorated structures causing
economic distress or endangerment to life or property and in which two or more of the factors listed in
s. 163.340(8), F.S., are present. However, an area may also be classified as blighted if one of the
aforementioned factors is present and all taxing authorities with jurisdiction over the area agree that the
area is blighted by interlocal agreement or by passage of a resolution by the governing bodies.35
31 Id.
32 Final Order on Petition for Declaratory Statement, In Re: Petition for Declaratory Statement Before the Division Of
Alcoholic Beverages and Tobacco, On behalf of Drum Circle Distilling, LLC, DS 2017-071 (DABT Case No. 2017-
052675), January 19, 2018.
33 Id.
34 Ch. 163, F.S., part III.
35 S. 163.340(8), F.S.
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Either a county or a municipal government may create a CRA. A county or municipality may create a
CRA upon the adoption of a finding of necessity and a finding that a CRA is necessary for carrying out
the community redevelopment goals embodied by the act.36 A CRA created by a county may only
operate within the boundaries of a municipality when the municipality has concurred by resolution with
the community redevelopment plan adopted by the county. A CRA created by a municipality may not
include more than 80 percent of the municipality if it was created after July 1, 2006.37
The act allows the local governing body creating a CRA to choose between two structures for the
agency governing board. One option is to appoint a board of commissioners consisting of five to nine
members serving four-year terms.38 The second option is for the local governing body to appoint itself
as the agency board of commissioners.39 A community redevelopment plan must be in place before a
CRA can engage in operations.40
There are currently 222 active CRAs in Florida.41
Effect of the Bill
Quota license exemption
The bill creates s. 565.02(12), F.S., providing a quota license exemption for certain craft distilleries to
allow such distilleries to qualify for a vendor’s license for the sale of beer, wine, and liquor. The bill
authorizes craft distilleries to sell alcoholic beverages for consumption on premises, including alcoholic
beverages which are produced by another manufacturer and purchased from a distributor, if the craft
distillery is located on a property within a destination entertainment venue and is in operation and open
for tours during normal businesses hours at least 5 days a week.
The bill defines a destination entertainment venue (DEV) as:
a venue located in a CRA;
owned by any person licensed as a craft distillery located within the venue;
served by multimodal transportation options; and
located within a contiguous area of at least 15 acres, that contains:
o At least one indoor event venue with a minimum capacity of 150 people which is fully
serviced by a connected onsite kitchen;
o At least one outdoor event venue with a minimum capacity of 1,000 people which has
regularly occurring live entertainment on a stage that is at least 12 feet deep and 16 feet
wide; and
o One or more licensed craft distilleries sharing identical ownership.
Craft distilleries licensed as a vendor in a CRA must be located within the same DEV, share identical
ownership, and distill, blend, or rectify at least 50,000 gallons of blended product per calendar year. No
more than three craft distilleries may be licensed as a vendor in a CRA.
Craft distilleries licensed as a vendor are prohibited from making package sales for off-premises
consumption or making deliveries or shipments of alcoholic beverages, except as authorized in s.
565.03, F.S. Alcoholic beverages not manufactured at the craft distillery must be purchased from a
licensed distributor.
Craft distilleries
The bill also amends the craft distillery requirements in s. 565.03, F.S., as follows:
36 S. 163.356(1), F.S.
37 S. 163.340(10), F.S.
38 S. 163.356(2), F.S.
39 S. 163.357(1)(a), F.S.
40 S. 163.360(1), F.S.
41 Department of Economic Opportunity, Special District Accountability Program, Official List of Special Districts Online,
http://specialdistrictreports.floridajobs.org/webreports/criteria.aspx (last visited Feb. 23, 2021).
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Increases the production limit to qualify as a craft distillery from 75,000 gallons per calendar
year to 250,000 gallons per calendar year.
Limits the amount of distilled spirits that may be transferred to the craft distillery’s souvenir gift
shop for sale to consumers to 75,000 gallons per calendar year.
Effective July 1, 2026, requires that a minimum of 60% of the craft distillery’s total branded
products must be distilled in this state and contain one or more Florida agricultural products.
Authorizes a maximum of 10 craft distillery licenses under common ownership, consisting of
four with a production cap of 250,000 gallons and six with a production cap of 50,000 gallons.
“Common ownership” is defined to mean “having a direct or indirect financial interest in two or
more distilleries by the same person.”
Allows craft distilleries to sell distilled spirits manufactured on the premises to consumers by the
drink or by package.
Clarifies that craft distilleries may only sell directly to consumers in face-to-face transactions.
Repeals the six bottle limit per branded product per consumer at a craft distillery’s souvenir gift
shop.
Prohibits craft distilleries from shipping alcoholic beverages to consumers.
The bill also amends s. 565.17, F.S., to authorize a craft distillery permit for tastings at Florida fairs,
trade shows, farmers markets, expositions, and festivals.
B. SECTION DIRECTORY:
Section 1: Amends s. 565.02, F.S.; defining the term "destination entertainment venue"; authorizing
craft distilleries to be licensed as specified vendors under certain circumstances; providing
requirements for such licenses; etc.
Section 2: Amends s. 565.03, F.S.; redefining the terms "branded product" and "craft distillery";
prohibiting a distillery from operating as a craft distillery until certain requirements are met;
authorizing persons to have common ownership in craft distilleries under certain
circumstances; etc.
Section 3: Amends s. 565.17, F.S.; authorizing craft distilleries to conduct spirituous beverage tastings
under certain circumstances; requiring the division to issue permits to craft distilleries to
conduct tastings and sales at certain locations; specifying requirements for distilleries for
such permits.
Section 4: Provides for an effective date.
II. FISCAL ANALYSIS & ECONOMIC IMPACT STATEMENT
A. FISCAL IMPACT ON STATE GOVERNMENT:
1. Revenues:
None.
2. Expenditures:
None.
B. FISCAL IMPACT ON LOCAL GOVERNMENTS:
1. Revenues:
None.
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2. Expenditures:
None.
C. DIRECT ECONOMIC IMPACT ON PRIVATE SECTOR:
The bill may have a positive economic impact for many craft distilleries due to the removal of many
current regulatory constraints.
The bill may also provide a positive economic impact for those craft distilleries located in a CRA that
qualify for a vendor’s license. It is not known how many craft distilleries are currently located in a CRA.
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:
None.
C. DRAFTING ISSUES OR OTHER COMMENTS:
None.
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 737 2021
1 A bill to be entitled
2 An act relating to craft distilleries; amending s.
3 565.02, F.S.; defining the term "destination
4 entertainment venue"; authorizing craft distilleries
5 to be licensed as specified vendors under certain
6 circumstances; providing requirements for such
7 licenses; providing requirements for craft
8 distilleries for such licenses; prohibiting a licensee
9 from taking certain actions; requiring certain
10 alcoholic beverages to be obtained through a licensed
11 distributor; amending s. 565.03, F.S.; redefining the
12 terms "branded product" and "craft distillery";
13 prohibiting a distillery from operating as a craft
14 distillery until certain requirements are met;
15 authorizing persons to have common ownership in craft
16 distilleries under certain circumstances; defining the
17 term "common ownership"; requiring a minimum
18 percentage of a craft distillery's total finished
19 branded products to be distilled in this state and
20 contain one or more Florida agricultural products
21 after a specified date; revising the requirements and
22 prohibitions on the sale of branded products to
23 consumers by a licensed craft distillery; revising the
24 circumstances for which a craft distillery must report
25 certain information about the production of distilled
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26 spirits to the Division of Alcoholic Beverages and
27 Tobacco of the Department of Business and Professional
28 Regulation; revising prohibitions on the shipment of
29 certain products by a craft distillery; revising
30 prohibitions on the transfer of a craft distillery
31 license or ownership interest in such license;
32 revising prohibitions relating to affiliated ownership
33 of craft distilleries; authorizing a craft distillery
34 to transfer specified distilled spirits from certain
35 locations to its souvenir gift shop and tasting room;
36 making technical changes; amending s. 565.17, F.S.;
37 authorizing craft distilleries to conduct spirituous
38 beverage tastings under certain circumstances;
39 requiring the division to issue permits to craft
40 distilleries to conduct tastings and sales at certain
41 locations; specifying requirements for distilleries
42 for such permits; providing an effective date.
43
44 Be It Enacted by the Legislature of the State of Florida:
45
46 Section 1. Present subsection (12) of section 565.02,
47 Florida Statutes, is redesignated as subsection (13), and a new
48 subsection (12) is added to that section, to read:
49 565.02 License fees; vendors; clubs; caterers; and
50 others.—
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51 (12)(a) As used in this subsection, the term "destination
52 entertainment venue" means a venue that:
53 1. Is located in a designated community redevelopment area
54 authorized under an adopted community redevelopment plan to
55 support urban redevelopment and economic development;
56 2. Is owned by any person licensed as a craft distillery
57 located within the destination entertainment venue;
58 3. Is adjacent to and served by multimodal transportation
59 options, including, at a minimum, bicycle and pedestrian trails
60 included on an adopted city or county trails map and mass
61 transit routes established by a city, county, or regional
62 transportation authority; and
63 4. Is located within a contiguous area of at least 15
64 acres, including associated parking and stormwater requirements
65 as required by local law, regulation, or ordinance, and that
66 contains:
67 a. At least one indoor event venue with a minimum capacity
68 of 150 people which is fully serviced by a connected onsite
69 kitchen;
70 b. At least one outdoor event venue with a minimum
71 capacity of 1,000 people which has regularly occurring live
72 entertainment on a stage that is at least 12 feet deep and 16
73 feet wide; and
74 c. One or more licensed craft distilleries sharing
75 identical ownership.
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76 (b) Notwithstanding any other provisions of the Beverage
77 Law, upon the payment of the appropriate fees, a craft
78 distillery licensed in this state may be licensed as a vendor
79 only for consumption on the premises of alcoholic beverages
80 manufactured by other manufacturers and acquired through a
81 distributor. The issuance of a license under this paragraph is
82 not subject to any quota or limitation, except that the craft
83 distillery must be:
84 1. Located on property within a destination entertainment
85 venue; and
86 2. In operation and open for tours during normal business
87 hours at least 5 days a week.
88 (c) The vendor license may be issued only for the premises
89 included on the licensed premises sketch on file with the
90 division under s. 565.03 for the craft distillery, including its
91 souvenir gift shop or tasting room.
92 (d) No more than three craft distilleries may be licensed
93 as a vendor in a community redevelopment area under this
94 subsection. Craft distilleries licensed as a vendor under this
95 subsection must be located within the same destination
96 entertainment venue and must share identical ownership, and each
97 craft distillery must distill, blend, or rectify at least 50,000
98 gallons of branded products per calendar year.
99 (e) Except as otherwise provided in this paragraph, a
100 craft distillery licensed as a vendor under this subsection
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101 shall be treated as a vendor and is subject to all provisions
102 relating to such vendors licensed to sell alcoholic beverages
103 for consumption on premises. A craft distillery licensed as a
104 vendor may not make package sales for off-premises consumption
105 or make any delivery or shipment of alcoholic beverages away
106 from the destination entertainment venue or the craft
107 distillery, unless such shipment or delivery is authorized for a
108 craft distillery under s. 565.03.
109 (f) Alcoholic beverages manufactured by another licensed
110 manufacturer, including branded products manufactured at another
111 craft distillery location sharing identical ownership, must be
112 obtained through a licensed distributor.
113 Section 2. Paragraphs (a) and (b) of subsection (1) and
114 subsections (2) and (5) of section 565.03, Florida Statutes, are
115 amended to read:
116 565.03 License fees; manufacturers, distributors, brokers,
117 sales agents, and importers of alcoholic beverages; vendor
118 licenses and fees; distilleries and craft distilleries.—
119 (1) As used in this section, the term:
120 (a) "Branded product" means any distilled spirits product
121 that:
122 1. Is owned by a craft distillery;
123 2. Contains distilled spirits that are manufactured by
124 distilling, rectifying, or blending by the craft distillery on
125 its licensed premises; and
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126 3. Has manufactured on site, which requires a federal
127 certificate and label approval by the Federal Government Alcohol
128 Administration Act or federal regulations.
129 (b) "Craft distillery" means a licensed distillery in this
130 state which distills, rectifies, or blends 250,000 that produces
131 75,000 or fewer gallons or less of distilled spirits per
132 calendar year of distilled spirits on its premises and has
133 notified the division in writing of its decision to qualify as a
134 craft distillery.
135 (2)(a) A distillery may not operate as a craft distillery
136 until the distillery has provided to the division written
137 notification that it meets the criteria specified in paragraph
138 (1)(b). Upon the division's receipt of the notification and its
139 verification that the distillery meets all such criteria, the
140 division shall add the designation of craft distiller on the
141 distillery's license.
142 (b) A person may not share common ownership in more than
143 10 craft distilleries, provided that no more than:
144 1. Four of the distilleries each distill, rectify, or
145 blend 250,000 gallons or less of distilled spirits per calendar
146 year; and
147 2. Six of the distilleries each distill, rectify, or blend
148 50,000 gallons or less of distilled spirits per calendar year.
149
150 As used in this paragraph, the term "common ownership" means
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151 having a direct or indirect financial interest in two or more
152 distilleries by the same person.
153 (c) Effective July 1, 2026, a minimum of 60 percent of a
154 craft distillery's total finished branded products must be
155 distilled in this state and contain one or more Florida
156 agricultural products.
157 (d) A distillery or a craft distillery authorized to do
158 business under the Beverage Law shall pay an annual state
159 license tax for each plant or branch operating in the state, as
160 follows:
161 1. A distillery engaged in the business of manufacturing
162 distilled spirits: $4,000.
163 2. A craft distillery engaged in the business of
164 manufacturing distilled spirits: $1,000.
165 3. A person engaged in the business of rectifying and
166 blending spirituous liquors and nothing else: $4,000.
167 (e)(b) A licensed distillery or licensed craft distillery
168 may Persons licensed under this section who are in the business
169 of distilling spirituous liquors may also engage in the business
170 of rectifying or and blending spirituous liquors without the
171 payment of an additional license tax.
172 (f)(c) A craft distillery licensed under this section may
173 sell directly to consumers up to 75,000 gallons per calendar
174 year of, at its souvenir gift shop, branded products that are
175 manufactured by the craft distillery distilled on its premises.
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176 A craft distillery may sell branded products directly to
177 consumers by the drink for consumption on the premises or by the
178 package in factory-sealed containers for consumption off the
179 premises in this state in factory-sealed containers that are
180 filled at the distillery for off-premises consumption. Such
181 sales are authorized only in the craft distillery's souvenir
182 gift shop or tasting room located on private property contiguous
183 to the licensed distillery premises. Branded products sold to
184 consumers must have been distilled, rectified, or blended on the
185 distillery premises that is located contiguous to the craft
186 distillery's souvenir gift shop or tasting room. The souvenir
187 gift shop or tasting room must be in this state and included on
188 the sketch or diagram defining the licensed premises submitted
189 with the distillery's license application. All sketch or diagram
190 revisions by the distillery shall require the division's
191 approval verifying that the locations of the souvenir gift shops
192 and tasting rooms shop location operated by the licensed
193 distillery are is owned or leased by the distillery and on
194 property contiguous to the distillery's production building in
195 this state.
196 1. Except as authorized under s. 565.17(2), a craft
197 distillery may not sell any factory-sealed individual containers
198 of spirits to consumers except in face-to-face sales
199 transactions with such consumers at the craft distillery's
200 licensed premises. Such branded products must be in compliance
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201 with the container limits under s. 565.10 and be intended for
202 personal consumption rather than for resale who are making a
203 purchase of no more than six individual containers of each
204 branded product.
205 2. Each container sold in face-to-face transactions with
206 consumers must comply with the container limits in s. 565.10,
207 per calendar year for the consumer's personal use and not for
208 resale and who are present at the distillery's licensed premises
209 in this state.
210 3. A craft distillery must report to the division within 5
211 days after it exceeds reaches the production limits or is no
212 longer operating under the requirements or limitations provided
213 in paragraph (1)(b). Any retail sales of branded products by the
214 drink or by the package to consumers at the craft distillery's
215 licensed premises are prohibited beginning the day after it
216 exceeds reaches the production limitation.
217 3.4. A craft distillery may not ship or arrange to ship
218 any of its branded products or any other alcoholic beverages
219 distilled spirits to consumers and may sell and deliver only to
220 consumers within the state in a face-to-face transaction at the
221 distillery property. However, a craft distillery distiller
222 licensed under this section may ship, arrange to ship, or
223 deliver such spirits to any manufacturers of distilled spirits,
224 wholesale distributors of distilled spirits, state or federal
225 bonded warehouses, or and exporters.
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226 4.5. Except as provided in subparagraph 5. subparagraph
227 6., it is unlawful to transfer a craft distillery license for a
228 distillery that produces 75,000 or fewer gallons per calendar
229 year of distilled spirits on its premises or any ownership
230 interest in such license to an individual or entity that has a
231 direct or indirect ownership interest in any distillery that
232 distills, rectifies, or blends 250,000 gallons or more per
233 calendar year of distilled spirits under any license issued
234 licensed in this state; in another state, territory, or country;
235 or by the United States Government to distill manufacture,
236 blend, or rectify distilled spirits for beverage purposes.
237 5.6. Except as provided in paragraph (b), a craft
238 distillery may shall not have its ownership affiliated with
239 another distillery, unless such distillery is owned by an
240 individual or entity that distills, rectifies, or blends 250,000
241 gallons or less per calendar year of distilled spirits produces
242 75,000 or fewer gallons per calendar year of distilled spirits
243 on each of its premises in this state or in another state,
244 territory, or country.
245 6. A craft distillery may transfer up to 75,000 gallons
246 per calendar year of its branded products that it distills,
247 rectifies, or blends from its federal bonded space, nonbonded
248 space at its licensed premises, or storage areas to its souvenir
249 gift shop and tasting room.
250 (5) A craft distillery making sales under paragraph (2)(f)
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251 paragraph (2)(c) is responsible for submitting any excise taxes
252 due to the state on distilled spirits on beverages under the
253 Beverage Law with in its monthly report to the division with any
254 tax payments due to the state.
255 Section 3. Section 565.17, Florida Statutes, is amended to
256 read:
257 565.17 Beverage tastings by distributors, craft
258 distilleries, and vendors.—
259 (1) A licensed distributor of spirituous beverages, a
260 craft distillery as defined in s. 565.03, or any vendor, is
261 authorized to conduct spirituous beverage tastings upon any
262 licensed premises authorized to sell spirituous beverages by
263 package or for consumption on premises without being in
264 violation of s. 561.42, provided that the conduct of the
265 spirituous beverage tasting shall be limited to and directed
266 toward the general public of the age of legal consumption.
267 (2) Craft distilleries may conduct tastings and sales of
268 distilled spirits produced by the craft distilleries at Florida
269 fairs, trade shows, farmers markets, expositions, and festivals.
270 The division shall issue permits to craft distilleries for such
271 tastings and sales. A craft distillery must pay all entry fees
272 and must have a distillery representative present during the
273 event. The permit is limited to the duration and physical
274 location of the event.
275 Section 4. This act shall take effect July 1, 2021.
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HB 737 by Rep. DiCeglie
Craft Distilleries
AMENDMENT SUMMARY
March 24, 2021
Amendment 1 by Rep. DiCeglie (Line 254):
The amendment requires a craft distillery to keep records of all alcoholic beverages received
from another manufacturer, broker, sales agent, or importer, for a period of 3 years, as required
by s. 561.55, F.S.
COMMITTEE/SUBCOMMITTEE AMENDMENT
Bill No. HB 737 (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: Commerce Committee
2 Representative DiCeglie offered the following:
3
4 Amendment (with title amendment)
5 Between lines 254 and 255, insert:
6 (6) A craft distillery shall keep complete and accurate
7 records of all alcoholic beverages received from any point
8 within or outside the state from another manufacturer, or from a
9 broker or sales agent or importer, including any delivery
10 invoice or other record of the common or contract carrier of
11 freight making the delivery of such alcoholic beverages. The
12 records shall be kept and maintained for a period of 3 years, as
13 required by s. 561.55.
14
15 -----------------------------------------------------
16 T I T L E A M E N D M E N T
768571 - h0737-line254.docx
Published On: 3/23/2021 5:43:45 PM
Page 1 of 2
COMMITTEE/SUBCOMMITTEE AMENDMENT
Bill No. HB 737 (2021)
Amendment No. 1
17 Remove line 36 and insert:
18 making technical changes; requiring the keeping of records for
19 alcoholic beverages received from specified persons; amending s.
20 565.17, F.S.;
768571 - h0737-line254.docx
Published On: 3/23/2021 5:43:45 PM
Page 2 of 2
CS/HB 1059
HOUSE OF REPRESENTATIVES STAFF ANALYSIS
BILL #: CS/HB 1059 Construction Permits
SPONSOR(S): Regulatory Reform Subcommittee, Robinson, W.
TIED BILLS: IDEN./SIM. BILLS: SB 1788
REFERENCE ACTION ANALYST STAFF DIRECTOR or
BUDGET/POLICY CHIEF
1) Regulatory Reform Subcommittee 17 Y, 0 N, As CS Brackett Anstead
2) Commerce Committee Brackett Hamon
SUMMARY ANALYSIS
The Florida Building Codes Act provides a mechanism for the uniform adoption, updating, interpretation, and
enforcement of a single, unified state building code. The Florida Building Code must be applied, administered,
and enforced uniformly and consistently from jurisdiction to jurisdiction.
Current law requires local governments to enforce the Building Code and issue building permits. Current law
also requires state agencies, state universities, Florida College System institutions, and public school districts
to enforce the Building Code in certain situations. Each local government entity may provide a schedule of
reasonable fees in order to defer the costs of inspection and enforcement of the Building Code. It is unlawful to
construct, erect, alter, repair, secure, or demolish any building without first obtaining a building permit.
A development permit is any official action of a local government that has the effect of permitting the
development of land including, but not limited to, building permits, zoning permits, subdivision approval,
rezoning, certifications, special exceptions, and variances. A development order is issued by a local
government and grants, denies, or grants with conditions an application for a development permit.
The bill:
Requires local governments to review additional information for an application for a development permit
or development order within a certain time-period.
Clarifies and requires local enforcement agencies to:
o post each building permit application, including a list of any required attachments, such as
drawings or plans, on their websites;
o allow applicants to submit completed building permit applications electronically including any
required payments and attachments, such as plans;
o post the current status of every received building permit application on their website; and
o post their procedures for reviewing, processing, and approving building permit applications on
their websites.
Requires government entities, which enforce the Building Code, that fail to meet current established
deadlines for reviewing building permit applications to reduce the fee for such permits for every
business day that they miss the deadline, unless the applicant agrees to a longer period.
Requires government entities that deny a building permit application for a single-family residential
dwelling to allow the applicant 10 business days to correct the application.
Prohibits government entities from requiring a copy of a contractor’s contract with owners,
subcontractors, or suppliers in order to obtain a building permit for projects on commercial property.
o This does not apply to projects for improvements owned or leased by a government entity.
The bill may have an indeterminate fiscal impact on state and local government. See Fiscal Comments.
The bill provides for an effective date of October 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:
The Community Planning Act
Adopted in 1985, the Local Government Comprehensive Planning and Land Development Regulation
Act,1 also known as Florida’s Growth Management Act, was significantly revised in 2011, becoming the
Community Planning Act.2 The Community Planning Act governs how local governments create and
adopt their local comprehensive plans.
Local comprehensive plans must include principles, guidelines, standards, and strategies for the orderly
and balanced future land development of the area and reflect community commitments to implement
the plan. The intent of the Act is that local governments manage growth through comprehensive land
use plans that facilitate adequate and efficient provision of transportation, water, sewage, schools,
parks, recreational facilities, housing, and other requirements and services.3 A housing element is
required as part of every comprehensive plan in the state. Among other things, the housing element
must address “the creation or preservation of affordable housing to minimize the need for additional
local services and avoid the concentration of affordable housing units only in specific areas of the
jurisdiction.”4
Municipalities established after the effective date of the Community Planning Act must adopt a
comprehensive plan within three years after the date of incorporation.5 The county comprehensive plan
controls until a municipal comprehensive plan is adopted.6
The comprehensive plan is implemented via land development regulations. Each county and
municipality must adopt and enforce land development regulations, such as zoning or other housing-
related ordinances, that are consistent with and implement their adopted comprehensive plan.7
Issuing Development Orders and Permits – Current Situation
Under the Community Planning Act, a development permit is any official action of a local government
that has the effect of permitting the development of land including, but not limited to, building permits,
zoning permits, subdivision approval, rezoning, certifications, special exceptions, and variances.8 A
development order is issued by a local government and grants, denies, or grants with conditions an
application for a development permit.9
When reviewing an application for a development permit or development order, not including building
permit applications, a county or municipality may not request additional information from the applicant
more than three times, unless the applicant waives the limitation in writing.10
Before a third request for information, the applicant must be offered a meeting to attempt to resolve
outstanding issues.11 If the applicant believes the request for additional information is not authorized by
ordinance, rule, statute, or other legal authority, the applicant can request the county or municipality
proceed to process the application for approval or denial.12 If denied, the county or municipality is
1 See ch. 85-55, s. 1, Laws of Fla.
2 See ch. 2011-139, s. 17, Laws of Fla.
3 S. 163.3161(4), F.S.
4 S. 163.3177(6)(f)1.g., F.S.
5 S. 163.3167(3), F.S.
6 Id.
7 S. 163.3202, F.S.
8 S. 163.3164(16), F.S.
9 See ss. 125.022, 163.3164(15), and 166.033, F.S.
10 Ss. 125.022(1) and 166.033(1), F.S.
11 Id.
12 Id.
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required to give written notice to the applicant and must provide reference to the applicable legal
authority for the denial of the permit.13
Prior to 2019, there was no specified timeframes provided in current statute for reviewing an application
for a development permit, development order, or additional information requested by a county or
municipality.14
In 2019, the Legislature imposed requirements and time limits for a county or municipality to review an
application for a development permit or development order, not including building permit applications,
and provided procedures for addressing deficiencies in an application.15
Within 30 days of receiving an application for a development permit or development order, a county or
municipality must review the application and issue a letter to the applicant indicating that the application
is complete or specify the deficiencies within 30 days after receiving the application.16 If the county or
municipality identifies deficiencies, the applicant has 30 days to submit the required additional
information.17
Once an application is deemed complete, a county or municipality must approve, approve with
conditions, or deny the application within 120 days or 180 days for applications that require final action
through a quasi-judicial hearing or a public hearing.18
Current law specifies how long an applicant has to submit additional information to a local government.
However, current law does not specify how long a local government has to review the additional
information and determine if the application is complete or still deficient.
Issuing Development Orders and Permits – Effect of the Bill
The bill provides that if a county or municipality makes a request for additional information from the
applicant and the applicant provides the information within 30 days of receiving the request, the county
or municipality must:
Review the additional information and issue a letter to the applicant indicating that the
application is complete or specify the remaining deficiencies within 30 days of receiving the
information, if the request is the county or municipality’s first request.
Review the additional information and issue a letter to the applicant indicating that the
application is complete or specify the remaining deficiencies within 10 days of receiving the
information, if the request is the county or municipality’s second request.
Deem the application complete within 10 days of receiving the information or proceed to
process the application for approval or denial unless the applicant waived the county or
municipality’s time limitations in writing, if the request is the county or municipality’s third
request.
The Florida Building Code
In 1974, Florida adopted legislation requiring all local governments to adopt and enforce a minimum
building code that would ensure that Florida’s minimum standards were met. Local governments could
choose from four separate model codes. The state’s role was limited to adopting all or relevant parts of
new editions of the four model codes. Local governments could amend and enforce their local codes,
as they desired.19
13
Ss. 125.022(2) and 166.033(2), F.S.
14
Ss. 125.022(1) and 166.033(1), F.S. (2018).
15
See House Analysis of 2019 House Bill 7103 (Jul. 1, 2019).
16
Ss. 125.022(1) and (2), and 166.033 (1) and (2), F.S.
17
Id.
18
Id.
19
The Florida Building Commission Report to the 2006 Legislature, Florida Department of Community Affairs, p. 4,
http://www.floridabuilding.org/fbc/publications/2006_Legislature_Rpt_rev2.pdf (last visited Feb. 15, 2021).
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In 1992, Hurricane Andrew demonstrated that Florida’s system of local codes did not work. Hurricane
Andrew easily destroyed those structures that were allegedly built according to the strongest code. The
Governor eventually appointed a study commission to review the system of local codes and make
recommendations for modernizing the system. The 1998 Legislature adopted the study commission’s
recommendations for a single state building code and enhanced the oversight role of the state over
local code enforcement. The 2000 Legislature authorized implementation of the Florida Building Code
(Building Code), and that first edition replaced all local codes on March 1, 2002.20 The current edition of
the Building Code is the seventh edition, which is referred to as the 2020 Florida Building Code.21
Part IV of ch. 553, F.S., is known as the “Florida Building Codes Act” (Act). The purpose and intent of
the Act is to provide a mechanism for the uniform adoption, updating, interpretation, and enforcement
of a single, unified state building code. The Building Code must be applied, administered, and enforced
uniformly and consistently from jurisdiction to jurisdiction. 22
The Florida Building Commission (Commission) was statutorily created to implement the Building
Code. The Commission, which is housed within the Department of Business and Professional
Regulation (DBPR), is a 19-member technical body made up of design professionals, contractors, and
government experts in various disciplines covered by the Building Code. The Commission reviews
several International Codes published by the International Code Council,23 the National Electric Code,
and other nationally adopted model codes to determine if the Building Code needs to be updated and
adopts an updated Building Code every three years.24
Enforcement of the Florida Building Code
It is the intent of the Legislature that local governments have the power to inspect all buildings,
structures, and facilities within their jurisdiction in protection of the public’s health, safety, and welfare.25
Every local government must enforce the Florida Building Code and issue building permits.26
State universities, Florida College System institutions, and public school districts enforce the Building
Code for their building projects, including conducting plan review and inspections. State universities,
Florida College System institutions, and public school districts must use or contract with licensed
building officials, inspectors, and plan examiners, and may elect to use a local government’s building
department to review plans and perform inspections.27
Current law also provides that state agencies may enforce the Building Code if current law specifically
authorizes them to do so, unless they have delegated responsibility to another public entity.28 Current
law provides that:29
The Department of Corrections and the Department of Juvenile Justice, and the Department of
Management Services (DMS) enforces the construction regulations relating to correctional
facilities under their jurisdiction.
The DMS enforces the construction regulations for the Governor’s Mansion and its grounds, the
Capitol, and the Capitol complex.
20
Id.; DBPR, Building Code Information System, https://floridabuilding.org/c/default.aspx# (last visited on Feb. 15, 2021).
21
Florida Building Commission Homepage, https://floridabuilding.org/c/default.aspx (last visited Feb. 21, 2021).
22
See S. 553.72(1), F.S.
23
The International Code Council (ICC) is an association that develops model codes and standards used in the design, building, and
compliance process to “construct safe, sustainable, affordable and resilient structures.” International Code Council, About the ICC,
https://www.iccsafe.org/about/who-we-are/ (last visited Feb. 21, 2021).
24
Ss. 553.73, and 553.74, F.S.
25
S. 553.72, F.S.
26
Ss. 125.01(1)(bb), 125.56(1), and 553.80(1), F.S.
27
S. 553.80(6), F.S.
28
Ss. 255.31(1), and 553.80(1), F.S.
29
Id.
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The DBPR enforces the construction regulations relating to elevator equipment under their
jurisdiction.
The Turnpike Enterprise, which is part of the Department of Transportation, enforces the
construction regulations for toll collection facilities under its jurisdiction.
The Department of Children and Families (DCF) in conjunction with the Agency for Health Care
Administration (ACHA) enforces construction regulations relating to secure mental health
treatment facilities under DCF’s jurisdiction.
The AHCA also reviews plans and surveys construction of hospitals, nursing homes,
ambulatory surgical centers, and Intermediate Care Facilities for the Developmentally Disabled.
It is unlawful for a person, firm, or corporation to construct, erect, alter, repair, secure, or demolish any
building without first obtaining a building permit from the local government or from such persons as
may, by resolution or regulation, be directed to issue such permit, upon the payment of reasonable fees
as set forth in a schedule of fees adopted by the enforcing agency.30 A building permit is not valid until
the fees for the permit have been paid.31
A building permit is an official document or certificate issued by the local building official that authorizes
performance of a specific activity.32 A building official is a local government employee or a person
contracted by a government entity who supervises building code activities, including plans review,
enforcement, and inspection.33 Any construction work that requires a building permit also requires plans
and inspections by the building official to ensure the work complies with the Building Code.34
Each government entity may provide a schedule of reasonable fees in order to defer the costs of
inspection and enforcement of the Building Code. The basis for a local government’s fee structure must
relate to the level of service provided by the local government. Fees charged must be consistently
applied. Each local government must post its permit and inspection fee schedule and a utilization
report35 on its website.36
A local government’s permit and inspection fees must be used solely for carrying out that local
government’s responsibilities in enforcing the Building Code. This includes:37
the direct costs and reasonable indirect costs associated with review of building plans, building
inspections, reinspections, and building permit processing;
building code enforcement;
fire inspections associated with new construction; and
training costs associated with the enforcement of the Building Code and enforcement action
pertaining to unlicensed contractor activity to the extent not funded by other user fees.
DBPR Surcharges
Current law requires all local governments to assess and collect a 1% surcharge on any building permit
issued by their enforcement agency for the purpose of enforcing the Building Code. The local
jurisdictions collect the assessment and remit the surcharge fees to DBPR to fund the activities of the
Florida Building Commission, DBPR’s Building Code Compliance and Mitigation Program, and the
Florida Fire Prevention Code informal interpretations.38
Current law also requires all local governments to assess and collect a separate 1.5% surcharge on
any building permit issued by their enforcement agency for the purpose of enforcing the Building Code.
30
See Ss. 125.56(4)(a) and 553.79(1), F.S.
31
S. 109.1 of the Seventh edition of the Florida Building Code (Building).
32
S. 468.603(2), F.S; S. 202 of the Seventh edition of the Florida Building Code (Building).
33
S. 468.603(2), F.S.; S. 202 of the Seventh edition of the Florida Building Code (Building).
34
Ss. 107, 110.1, and 110.3 of the Seventh edition of the Florida Building (Building).
35
The utilization report must include the local government’s direct and indirect costs for enforcing the Building. S. 553.80(7), F.S.
36
Ss. 125.56(2) and (4), 166.222, and 553.80(7), F.S.
37
S. 553.80(7), F.S.
38
S. 553.721, F.S.
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The local governments collect the assessment and remit the surcharge fees to DBPR, where it is
divided equally to fund the activities of the Building Code Administrators and Inspectors Board (BCAIB)
and the Florida Homeowners’ Construction Recovery Fund.39
Local government building departments are permitted to retain 10% of the amount of the surcharges
they collect to fund participation by their agencies in the national and state building code adoption
processes and to provide education related to enforcement of the Florida Building Code.40
Building Permit Delays
Any delays in obtaining a building permit can delay the completion of a construction project. Delays in
the completion of a construction project may:41
Lead to increased costs for construction projects, which may be passed onto occupants of a
completed project;
Discourage construction, which can reduce the total supply of buildings in a community and
may lead to higher rents in the community;
Reduce property tax revenue to a local government and other taxing jurisdictions resulting from
the delayed start and completion of a construction project; and
Result in delayed occupancy of a project, including single-family residences and multi-family
residences.
Streamlining the process to obtain a building permit can accelerate the completion of construction
projects. The goal of streamlining is to remove overlap and duplication and create more efficient
administrative procedures while not reducing a building department’s ability to enforce the applicable
construction codes. Streamlining the building permit process may:42
Increase local government revenues by accelerating completion of a project and thus
accelerating property tax collection;
Create local construction jobs and other indirect jobs supported by local construction jobs, such
as jobs at a material supplier, which may increase local tax revenue by creating local
construction jobs and other indirect jobs; and
Encourage economic development by having an efficient permit system.
List of Required Items for Applications and Electronic Submission of Applications – Current
Situation
A local enforcement agency is an agency of local government, a local school board, a community
college board of trustees, or a university board of trustees in the State University System with
jurisdiction to make inspections of buildings and to enforce the Building Code.43
Current law requires local enforcement agencies to post each type of building permit on their website.44
Current law also requires local enforcement agencies to allow applicants to submit applications
39
S. 468.631, F.S.; The Florida Homeowners’ Construction Recovery Fund is used to compensate homeowners who have suffered a
covered financial loss at the hands of state-licensed general, building and residential contractors. Claims are filed with the DBPR, who
reviews for completeness and statutory eligibility. The DBPR then presents the claim to the Construction Industry Licensing Board for
review. S. 489.1401(2), F.S.
40
Ss. 468.631, and 553.721, F.S.
41
City of Austin Development Services Department, A Program for Expedited Permitting,
http://austintexas.gov/sites/default/files/files/8-9-2016_Report_on_Expedited_Permitting_Program.pdf (last visited Feb. 22, 2021);
PricewaterhouseCoopers, The Economic Impact of Accelerating Permit Processes on Local Development and Government Revenues,
(Dec. 7, 2005).
42
Id.; Institute for Market Transformation, Streamlining Compliance Processes, (Winter 2012) https://www.imt.org/wp-
content/uploads/2018/02/CaseStudy5.pdf (last visited Feb. 24, 2021).
43
S. 553.71(5), F.S.
44
Ss. 125.56(4)(b) and 553.79(1)(b), F.S.
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electronically, except owners who are acting as contractor under the owner-builder exemption.45
Accepted methods of electronic submission include, but are not limited to:46
E-mail submission of applications in PDF format;
Submission of applications through an electronic fill-in form available on the building
department’s website; or
Through a third-party submission management software.
However, it is not clear if current law requires local enforcement agencies to:
Post a list or identify other items required as part of the application for each type of building
permit on their websites;
Allow applicants to electronically submit items required as part of a building permit application
including payments, attachments, or drawings; or
Post the status of building permit applications on their websites.
Some local governments list the items required as part of an application, allow applicants to
electronically submit items required as part of an application, and post the status of building permit
applications on their websites, while others do not.47
Proponents argue that posting a list containing all the required information for each type of building
permit and the status of every received application saves time by reducing phone calls and emails to
building department staff. It also reduces the number of applications that are denied due to
misunderstanding about what materials and information must be provided.48
Proponents argue that allowing applicants to submit applications electronically, including all required
items, saves time and money for builders and developers by shortening the turn-around time for
processing most building permits, and by preventing them from having to travel to and from a building
department during business hours to drop off the required items.49
They also argue that it helps building departments by reducing the cost of printing documents,
eliminating archiving costs, easing the burden of managing paper documents, and consolidates the
plan review process by having documents stored on a network server that is available to multiple
departments and employees.50
Building Departments note that the cost to post the list of required items and the status of received
building permit applications, and the cost to transition from paper documents to electronic documents is
45
Current law requires property owners who are acting as a contractor under the owner-builder exemption to personally appear at a
local enforcement agency to sign the building permit. Ss. 489.103(7), and 489.503(7), F.S.
46
Ss. 125.56(4)(b) and 553.79(1)(b), F.S.
47
City of Miramar, Building, Permits & Inspections, https://www.miramarfl.gov/150/Building-Permits-Inspections (last visited Feb.
25, 2021); City of Orlando, Permits & Inspections, https://www.orlando.gov/Building-Development/Permits-Inspections (last visited
Feb. 24, 2021); Union County, Building Department, https://unioncounty-fl.gov/building-department/ (last visited Feb. 25, 2021); City
of Crestview, Building Permits & Inspections, http://www.cityofcrestview.org/161/Building-Permits-Inspections (last visited Feb. 25,
2021).
48
Ryan Meres, Seven Keys to Alleviating Permitting Pain, Builder (Jul. 23, 2015) https://www.builderonline.com/building/regulation-
policy/seven-keys-to-alleviating-permitting-pain_o (last visited Feb. 24, 2021); E-Gov Link, How to Streamline your Local
Government Permitting Process, (Aug. 28, 2019) https://www2.egovlink.com/how-to-streamline-your-local-government-permitting-
process/ (last visited Feb. 24, 2021)
49
Building Officials Association of Florida, Florida Engineering Society, AIA Florida, Building Department Guide to Creating and
Processing Electronic Construction Documents,
http://www.aiafla.org/upload_documents/BuildingDepartmentGuidetoCreatingandProcessingElectronicDocuments.pdf (last visited
Feb. 25, 2021); See also The Florida Channel, 1/27/ 2021 House Regulatory Reform Subcommittee,
https://thefloridachannel.org/videos/1-27-21-house-regulatory-reform-subcommittee/ (last visited Feb. 19, 2021).
50
Id.
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expensive and it is not easy or quick.51 Additionally a building department may have to devote limited
resources to updating the list of required items and the status of received building permit applications.52
List of Items Required for Applications and Electronic Submission of Applications – Effect of
the Bill
The bill clarifies that local enforcement agencies must:
Post each type of building permit application on their website, including a list of all required
attachments, drawings, and any other requirements that are required for each type of
application.
Post the status of received building permit applications online, and update the status.
o A local enforcement agency does not have to post the status of a received building
permit application if it has issued a permit for the application.
Allow building permit applicants to electronically submit applications, including all attachments,
payments, drawings, and any other requirements that are required as part of the application.
o Applications, including attachments, payments, drawings, and any other requirements or
parts that are required as part of the application, may also be submitted in person at the
discretion of the building official.
Process for Reviewing Building Permits – Current Situation
Current law requires local enforcement agencies to enforce the Building Code and issue building
permits. However, current law does not specify how local enforcement agencies must review and
process building applications. Instead, current law leaves it up to local enforcement agencies to
determine how they want to process, receive, and approve building permit applications.
According to testimony offered during the January 27, 2021, meeting of the Florida House of
Representatives Regulatory Reform Subcommittee, there are generally two different models for how
building departments are setup. One model is the separated review process, which is a process where
an application goes to different departments for review such as the zoning department and the building
department. The second model is a combined review process, which operates as a one-stop shop for
all development review approval.53 However, local enforcement agencies operate differently from each
other, and there is no uniform system for processing, receiving, or approving building permit
applications.54
Proponents argue that requiring building departments to list their procedures for receiving, processing,
and approving building permit applications on their website helps developers and residents by letting
them know the permitting process from the beginning. It reduces conflicts and delays in application
review due to misunderstanding about a building department’s procedures. It also helps new staff by
letting them know what their responsibilities are in the permitting process.55
Building departments note that a building department may have to devote limited resources to creating
the list of its procedures for receiving, processing, and approving building permit applications on its
website. Additional resources may also be needed to update the list to ensure the listed procedures are
current and up to date.56
51
Id.; The Community Development Director for the City of Auburndale testified that the cost for them to purchase the software
necessary for the switch to electronic documents cost $90,000. See The Florida Channel, 1/27/ 2021 House Regulatory Reform
Subcommittee, https://thefloridachannel.org/videos/1-27-21-house-regulatory-reform-subcommittee/ (last visited Feb. 19, 2021).
52
The Massachusetts Association of Regional Planning Agencies, A Best Practices for Streamlined Local Permitting, (Nov. 30, 2007),
http://www.pvpc.org/sites/default/files/BEST%20PRACTICES%20GUIDE_0.pdf (last visited Feb. 24, 2021).
53
See The Florida Channel, 1/27/ 2021 House Regulatory Reform Subcommittee, https://thefloridachannel.org/videos/1-27-21-house-
regulatory-reform-subcommittee/ (last visited Feb. 19, 2021).
54
Id.
55
The Massachusetts Association of Regional Planning Agencies supra note 52.
56
Id.
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Process for Reviewing Building Permits – Effect of the Bill
The bill requires local enforcement agencies to post their procedures for processing, reviewing, and
approving submitted building permit applications on their websites.
Time-Period to Review Building Permit Applications – Current Situation
Current law requires local governments to review certain building permit applications within a specific
time-period of receiving the applications. Current law has established time-periods for local
governments to review applications for the following building permits:57
accessory structure;
alarm permit;
nonresidential buildings less than 25,000 square feet;
electric;
irrigation permit;
landscaping;
mechanical;
plumbing;
residential units other than a single family unit;
multifamily residential not exceeding 50 units;
roofing;
signs;
site-plan approvals and subdivision plats not requiring public hearings or public notice;
lot grading and site alteration associated with the permit application;
master building permits; and
single-family residential buildings.
When a local government receives an application for one of the above building permits, except master
building permits and single-family residential buildings, it must:58
Inform the applicant within 10 days of receiving the application, what information, if any, is
needed to complete the application.
o If the local government fails to provide written notice to the applicant within the 10-day
window, the application is deemed to be properly completed.
Notify the applicant within 45 days of the application being deemed complete, if additional
information is necessary to determine the sufficiency of the application;
o If additional information is needed the local government must specify what additional
information is necessary.
o The applicant may submit the additional information to the local government or request
that the local government act on the application without the additional information.
Approve, approve with conditions, or deny the application within 120 days following receipt of
the completed application.
o This period is tolled during the time an applicant is responding to a request for additional
information and may be extended by mutual consent of the parties.
These time-periods do not apply when a law, agency rule, or local ordinance specify different
timeframes for review of local building permit applications, for permits for wireless communication
facilities, or when both parties agree to an extension.59
57
S. 553.792(2), F.S.
58
S. 553.792(1), F.S.
59
Id.
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If a local government receives a complete master building permit application, it must approve or deny
the application within 120 days of receiving the completed application, unless the applicant agrees to a
longer period.60
If any government entity with authority to enforce the Building Code receives an application for a
building permit for a single-family residential dwelling, it must issue the permit within 30 business days
of receiving the application, unless the application fails to satisfy the Building Code or the enforcing
agency’s laws or ordinances, or unusual circumstances require a longer time-period for processing the
application.61
Current law provides time-periods for when government entities must review certain building permit
applications. However, current law does not provide any penalty if a government entity fails to comply
with the deadlines established by current law.
Time-Period to Review Building Permit Applications – Effect of the Bill
The bill requires local governments to reduce a permit fee for any building permit application, including
for single-family residential dwellings, by 10 percent of the original permit fee for each business day that
a local government fails to meet the current statutory time-period for reviewing a building permit
application or a time-period established by the local government.
A local government does not have to reduce the permit fee if the local government and applicant
agree to an extension of time.
A government entity does not have to reduce the fee for a single-family residential dwelling building
permit, if:
it provides written notice to the applicant, by email or USPS mail within 30 business days of
receiving the application; and
The written notice specifically states how the application fails to satisfy the Building Code, or the
government entity’s laws or ordinances.
An applicant has 10 business days to address the reasons specified in the government entity’s notice. If
the applicant submits revisions to the government entity within 10 business days of receiving the notice,
the government entity must approve or deny the permit within 10 business days of receiving the
applicant’s revisions.
If a government entity fails to approve or deny the permit within 10 business days of receiving the
applicant’s revisions, it must:
reduce the permit fee by 20 percent of the original permit fee for the first business day that it
fails to meet the deadline; and
an additional 10 percent of the original permit fee for each business day that it fails to meet the
deadline, for up to five business days.
If any permit fees are refunded because a local government fails to meet an established deadline for
reviewing a building permit application, the DBPR surcharges for funding the Building Commission, the
BCAIB, and the Florida Homeowners’ Recovery Fund must be recalculated based on the amount of the
permit fees after the refund.
Required Information in Building Permit Application – Current Situation
60
S. 553.794(5)(c), F.S. A master building permit is intended for builders who expect to construct identical single- or two- family
dwellings or townhomes. Once a builder obtains a master building permit, he or she is not required to obtain a new permit for single-
two-family dwelling or townhome as long as the dwelling or townhome is built to the specifications in the master building permit. See
553.794, F.S.
61
S. 553.79(14), F.S.
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To obtain a permit, an applicant must complete an application for the proposed work on a form
furnished by the government entity. The form must include the following information:62
The name and address of the owner of the property;
The name and address of the contractor;
A description sufficient to identify the property to be improved, including the property’s address
and legal description;
The name and address of the bonding company, if any;
The name and address of the architect/engineer, if any;
The name and address of the mortgage company, if any; and
The number or identifying symbol assigned to the building permit by the issuing authority.
In addition to the information that must be in the application, a government entity may require any
additional information be included in the application.63
Some local governments are requiring commercial contractors to include their contracts with private
owners in an application for a building permit. The industry believes that local governments use such
contracts to determine construction costs and construction value.64 These contracts may contain
private proprietary information, and after local governments request and obtain such documents, they
may become public records available for anyone to obtain upon request.65
Required Information in Building Permit Application -- Effect of the Bill
The bill prohibits a government entity from requiring a contract between an owner and a contractor or a
contract between a contractor and a subcontractor or material supplier as a condition to apply for or
obtain a building permit for construction work on a commercial property.
However, this does not apply to any construction projects for improvements that are owned or leased
by a government entity.
B. SECTION DIRECTORY:
Section 1: Amends s. 125.022, F.S., relating to development permits and orders issued by
counties.
Section 2: Amends s. 125.56, F.S., requiring counties to allow submission of certain documents
and list certain things on their websites.
Section 3: Amends s. 166.033, F.S., relating to development permits and orders issued by
municipalities.
Section 4: Amends s. 553.79, F.S., requiring local governments to allow submission of certain
documents, list certain things on their websites, and reduce certain building permit fees.
Section 5: Amends s. 553.792, F.S., requiring local governments to reduce certain building permit
fees.
62
Ss. 713.135(5) and (6), F.S.
63
Id.
64
See The Florida Channel, 1/27/ 2021 House Regulatory Reform Subcommittee, https://thefloridachannel.org/videos/1-27-21-house-
regulatory-reform-subcommittee/ (last visited Feb. 19, 2021). (According to testimony offered during the January 27, 2021, meeting
of the Florida House of Representatives Regulatory Reform Subcommittee, many local governments use the cost of construction as a
factor for determining the amount of a fee for a building permit.)
65
Article I, section 24(a) of the Florida Constitution sets forth the state’s public policy regarding access to government records. This
section guarantees every person a right to inspect or copy any public record made or received in connection with official business of
any public body, including counties, municipalities, and districts. Current law does not contain an exemption from Florida’s public
records laws for proprietary business information included in a building permit application. See generally, ch. 119. F.S.
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Section 6: Amends s. 553.794, F.S., requiring local governments to reduce certain building permit
fees.
Section 7. Amends s. 713.135, F.S., prohibiting local governments from requiring contracts in
certain applications for building permits.
Section 8. Providing an effective date of October 1, 2021.
II. FISCAL ANALYSIS & ECONOMIC IMPACT STATEMENT
A. FISCAL IMPACT ON STATE GOVERNMENT:
1. Revenues:
None.
2. Expenditures:
See Fiscal Comments.
B. FISCAL IMPACT ON LOCAL GOVERNMENTS:
1. Revenues:
None.
2. Expenditures:
See Fiscal Comments.
C. DIRECT ECONOMIC IMPACT ON PRIVATE SECTOR:
The bill may have a positive impact by decreasing the time it takes to obtain a building permit, which
may decrease the cost and time to complete projects.
D. FISCAL COMMENTS:
The amount of permit fees that are refunded by local governments for failing to review a permit
application within a certain time-period is indeterminate. However, any amount will likely be minimal. It
is unclear if refunding a percentage of permit fees will have an impact on the surcharges received by
DBPR. However, any impact will likely be insignificant.
III. COMMENTS
A. CONSTITUTIONAL ISSUES:
1. Applicability of Municipality/County Mandates Provision:
The county/municipality mandates provision of Art. VII, s. 18 of the Florida Constitution may apply
because this bill requires local governments to take actions that require expenditures of money by
requiring local governments to allow electronic submission of certain building permit application
documents, and requiring them to post the current status of received building permit applications, to
list the required documents to be included with a permit application, and to list their procedures for
processing applications on their website. This may result in additional expenditures to comply with
the statute. However, local building departments are permitted by state law to collect building fees
that cover the cost of their expenses. An exemption may apply because the fiscal impact is likely to
be insignificant.
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2. Other:
None.
B. RULE-MAKING AUTHORITY:
None.
C. DRAFTING ISSUES OR OTHER COMMENTS:
None.
IV. AMENDMENTS/ COMMITTEE SUBSTITUTE CHANGES
On March 2, 2021, the Regulatory Reform Subcommittee considered a proposed committee substitute and
reported the bill favorably as a committee substitute. The committee substitute:
Requires local governments to review additional information for an application for a development
permit or development order within a certain time-period.
Clarifies and requires local enforcement agencies to:
o post each building permit application, including a list of any required attachments, such as
drawings or plans, on their websites;
o allow applicants to submit completed building permit applications electronically including any
required payments and attachments, such as plans;
o post the current status of every received building permit application on their website; and
o post their procedures for reviewing, processing, and approving building permit applications
on their websites.
Requires government entities, which enforce the Building Code, that fail to meet current established
deadlines for reviewing building permit applications to reduce the fee for such permits for every
business day that they miss the deadline, unless the applicant agrees to a longer period.
Requires government entities that deny a building permit application for a single-family residential
dwelling to allow the applicant 10 business days to correct the application.
Prohibits government entities from requiring a copy of a contractor’s contract with owners,
subcontractors, or suppliers in order to obtain a building permit for projects on commercial property.
o This does not apply to projects for improvements owned or leased by a government entity.
The staff analysis has been updated to reflect the committee substitute.
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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
CS/HB 1059 2021
1 A bill to be entitled
2 An act relating to the construction permits; amending
3 s. 125.022, F.S.; revising the requirements for when a
4 county may request certain information; amending s.
5 125.56, F.S.; requiring a county that issues building
6 permits to post certain building permit information on
7 its website; authorizing all components to a completed
8 application to be submitted electronically or in
9 person; amending s. 166.033, F.S.; revising the
10 requirements for when a municipality may request
11 certain information; amending s. 553.79, F.S.;
12 requiring a local enforcement agency to post certain
13 building permit information on its website;
14 authorizing all components to a completed application
15 to be submitted electronically or in person; requiring
16 a local enforcement agency to reduce a building permit
17 fee by a specified percentage for failing to meet
18 certain deadlines; providing an exception; requiring
19 the reduction of a building permit fee to be based on
20 the original amount of such fee; requiring certain
21 surcharges to be recalculated under certain
22 conditions; amending ss. 553.792 and 553.794, F.S.;
23 requiring a local government or local building
24 department, respectively, to reduce a building permit
25 fee or master building permit fee, respectively, by a
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26 specified percentage for failing to meet certain
27 deadlines; providing exceptions; requiring certain
28 surcharges to be recalculated under certain
29 conditions; making technical changes; amending s.
30 713.135, F.S.; prohibiting an authority that issues a
31 building permit from requiring an applicant to provide
32 specified contracts as part of an application for
33 certain construction; providing applicability;
34 providing an effective date.
35
36 Be It Enacted by the Legislature of the State of Florida:
37
38 Section 1. Subsection (2) of section 125.022, Florida
39 Statutes, is amended to read:
40 125.022 Development permits and orders.—
41 (2)(a) When reviewing an application for a development
42 permit or development order that is certified by a professional
43 listed in s. 403.0877, a county may not request additional
44 information from the applicant more than three times, unless the
45 applicant waives the limitation in writing.
46 (b) If a county makes a request for additional information
47 and the applicant submits the required additional information
48 within 30 days after receiving the request, the county must
49 review the application for completeness and issue a letter
50 indicating that all required information has been submitted or
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51 specify with particularity any areas that are deficient within
52 30 days after receiving the additional information.
53 (c) If a county makes a second request for additional
54 information and the applicant submits the required additional
55 information within 30 days after receiving the request, the
56 county must review the application for completeness and issue a
57 letter indicating that all required information has been
58 submitted or specify with particularity any areas that are
59 deficient within 10 days after receiving the additional
60 information.
61 (d) Before a third request for additional information, the
62 applicant must be offered a meeting to attempt to resolve
63 outstanding issues. If a county makes a third request for
64 additional information and the applicant submits the required
65 additional information within 30 days after receiving the
66 request, the county must deem the application complete within 10
67 days after receiving the additional information or proceed to
68 process the application for approval or denial unless the
69 applicant waived the county's limitation in writing as described
70 in paragraph (a).
71 (e) Except as provided in subsection (5), if the applicant
72 believes the request for additional information is not
73 authorized by ordinance, rule, statute, or other legal
74 authority, the county, at the applicant's request, shall proceed
75 to process the application for approval or denial.
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76 Section 2. Paragraph (b) of subsection (4) of section
77 125.56, Florida Statutes, is amended, and paragraph (f) is added
78 to that subsection, to read:
79 125.56 Enforcement and amendment of the Florida Building
80 Code and the Florida Fire Prevention Code; inspection fees;
81 inspectors; etc.—
82 (4)
83 (b) A county that issues building permits shall post each
84 type of building permit application, including a list of all
85 required attachments, drawings, or other requirements for each
86 type of application, on its website. A county must post and
87 update the status of every received application on its website
88 until the issuance of the building permit. Completed
89 applications, including payments, attachments, drawings, or
90 other requirements or parts of the completed permit application,
91 must be able to be submitted electronically to the county
92 building department. Accepted methods of electronic submission
93 include, but are not limited to, e-mail submission of
94 applications in Portable Document Format or submission of
95 applications through an electronic fill-in form available on the
96 building department's website or through a third-party
97 submission management software. Completed applications,
98 including payments, attachments, or drawings, or other
99 requirements or parts required as part of the completed permit
100 application, may also be submitted in person in a nonelectronic
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101 format, at the discretion of the building official.
102 (f) A county that issues building permits must post its
103 procedures for processing, reviewing, and approving submitted
104 building permit applications on its website.
105 Section 3. Subsection (2) of section 166.033, Florida
106 Statutes, is amended to read:
107 166.033 Development permits and orders.—
108 (2)(a) When reviewing an application for a development
109 permit or development order that is certified by a professional
110 listed in s. 403.0877, a municipality may not request additional
111 information from the applicant more than three times, unless the
112 applicant waives the limitation in writing.
113 (b) If a municipality makes a request for additional
114 information and the applicant submits the required additional
115 information within 30 days after receiving the request, the
116 municipality must review the application for completeness and
117 issue a letter indicating that all required information has been
118 submitted or specify with particularity any areas that are
119 deficient within 30 days after receiving the additional
120 information.
121 (c) If a municipality makes a second request for
122 additional information and the applicant submits the required
123 additional information within 30 days after receiving the
124 request, the municipality must review the application for
125 completeness and issue a letter indicating that all required
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126 information has been submitted or specify with particularity any
127 areas that are deficient within 10 days after receiving the
128 additional information.
129 (d) Before a third request for additional information, the
130 applicant must be offered a meeting to attempt to resolve
131 outstanding issues. If a municipality makes a third request for
132 additional information and the applicant submits the required
133 additional information within 30 days after receiving the
134 request, the municipality must deem the application complete
135 within 10 days after receiving the additional information or
136 proceed to process the application for approval or denial unless
137 the applicant waived the municipality's limitation in writing as
138 described in paragraph (a).
139 (e) Except as provided in subsection (5), if the applicant
140 believes the request for additional information is not
141 authorized by ordinance, rule, statute, or other legal
142 authority, the municipality, at the applicant's request, shall
143 proceed to process the application for approval or denial.
144 Section 4. Paragraph (b) of subsection (1) and subsection
145 (14) of section 553.79, Florida Statutes, are amended, and
146 paragraph (d) is added to subsection (1) of that section, to
147 read:
148 553.79 Permits; applications; issuance; inspections.—
149 (1)
150 (b) A local enforcement agency shall post each type of
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151 building permit application, including a list of all required
152 attachments, drawings, or other requirements for each type of
153 application, on its website. A local enforcement agency must
154 post and update the status of every received application on its
155 website until the issuance of the building permit. Completed
156 applications, including payments, attachments, drawings, or
157 other requirements or parts of the completed permit application,
158 must be able to be submitted electronically to the appropriate
159 building department. Accepted methods of electronic submission
160 include, but are not limited to, e-mail submission of
161 applications in Portable Document Format or submission of
162 applications through an electronic fill-in form available on the
163 building department's website or through a third-party
164 submission management software. Completed applications,
165 including payments, attachments, or drawings, or other
166 requirements or parts required as part of the completed permit
167 application, may also be submitted in person in a nonelectronic
168 format, at the discretion of the building official.
169 (d) A local enforcement agency must post its procedures
170 for processing, reviewing, and approving submitted building
171 permit applications on its website.
172 (14) A building permit for a single-family residential
173 dwelling must be issued within 30 business working days after
174 receiving the permit of application therefor unless unusual
175 circumstances require a longer time for processing the
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176 application or unless the permit application fails to satisfy
177 the Florida Building Code or the enforcing agency's laws or
178 ordinances.
179 (a) If a local enforcement agency fails to issue a
180 building permit for a single-family residential dwelling within
181 30 business days after receiving the permit application, it must
182 reduce the building permit fee by 10 percent for each business
183 day that it fails to meet the deadline. Each 10 percent
184 reduction shall be based on the original amount of the building
185 permit fee.
186 (b) A local enforcement agency does not have to reduce the
187 building permit fee if it provides written notice to the
188 applicant, by e-mail or United States Postal Service, within 30
189 business days after receiving the permit application that
190 specifically states the reasons why the permit application fails
191 to satisfy the Florida Building Code or the enforcing agency's
192 laws or ordinances.
193 (c) The applicant has 10 business days after receiving the
194 written notice to address the reasons specified by the local
195 enforcement agency and submit revisions to correct the permit
196 application. If the applicant submits revisions within 10
197 business days after receiving the written notice, the local
198 enforcement agency has 10 business days after receiving such
199 revisions to approve or deny the building permit unless the
200 applicant agrees to a longer period in writing. If the local
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201 enforcement agency fails to issue or deny the building permit
202 within 10 business days after receiving the revisions, it must
203 reduce the building permit fee by 20 percent for the first
204 business day that it fails to meet the deadline unless the
205 applicant agrees to a longer period in writing. For each
206 additional business day, but not to exceed 5 business days, that
207 the local enforcement agency fails to meet the deadline, the
208 building permit fee must be reduced by an additional 10 percent.
209 Each reduction shall be based on the original amount of the
210 building permit fee.
211 (d) If any building permit fees are refunded under this
212 subsection, the surcharges provided in s. 468.631 or s. 553.721
213 must be recalculated based on the amount of the building permit
214 fees after the refund.
215 Section 5. Section 553.792, Florida Statutes, is amended
216 to read:
217 553.792 Building permit application to local government.—
218 (1)(a) Within 10 days of an applicant submitting an
219 application to the local government, the local government shall
220 advise the applicant what information, if any, is needed to deem
221 the application properly completed in compliance with the filing
222 requirements published by the local government. If the local
223 government does not provide written notice that the applicant
224 has not submitted the properly completed application, the
225 application shall be automatically deemed properly completed and
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226 accepted. Within 45 days after receiving a completed
227 application, a local government must notify an applicant if
228 additional information is required for the local government to
229 determine the sufficiency of the application, and shall specify
230 the additional information that is required. The applicant must
231 submit the additional information to the local government or
232 request that the local government act without the additional
233 information. While the applicant responds to the request for
234 additional information, the 120-day period described in this
235 subsection is tolled. Both parties may agree to a reasonable
236 request for an extension of time, particularly in the event of a
237 force majeure major or other extraordinary circumstance. The
238 local government must approve, approve with conditions, or deny
239 the application within 120 days following receipt of a completed
240 application.
241 (b) If a local government fails to meet a deadline
242 provided in paragraph (a), it must reduce the building permit
243 fee by 10 percent for each business day that it fails to meet
244 the deadline. Each 10 percent reduction shall be based on the
245 original amount of the building permit fee, unless the parties
246 agree to an extension of time.
247 (2)(a) The procedures set forth in subsection (1) apply to
248 the following building permit applications: accessory structure;
249 alarm permit; nonresidential buildings less than 25,000 square
250 feet; electric; irrigation permit; landscaping; mechanical;
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251 plumbing; residential units other than a single family unit;
252 multifamily residential not exceeding 50 units; roofing; signs;
253 site-plan approvals and subdivision plats not requiring public
254 hearings or public notice; and lot grading and site alteration
255 associated with the permit application set forth in this
256 subsection. The procedures set forth in subsection (1) do not
257 apply to permits for any wireless communications facilities or
258 when a law, agency rule, or local ordinance specify different
259 timeframes for review of local building permit applications.
260 (b) If a local government has different timeframes than
261 the timeframes set forth in subsection (1) for reviewing
262 building permit applications described in paragraph (a), the
263 local government must meet the deadlines established by local
264 ordinance. If a local government does not meet an established
265 deadline to approve, approve with conditions, or deny an
266 application, it must reduce the building permit fee by 10
267 percent for each business day that it fails to meet the
268 deadline. Each 10 percent reduction shall be based on the
269 original amount of the building permit fee, unless the parties
270 agree to an extension of time. This paragraph does not apply to
271 permits for any wireless communications facilities.
272 (3) If any building permit fees are refunded under this
273 section, the surcharges provided in s. 468.631 or s. 553.721
274 must be recalculated based on the amount of the building permit
275 fees after the refund.
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276 Section 6. Paragraph (c) of subsection (5) of section
277 553.794, Florida Statutes, is amended to read:
278 553.794 Local government residential master building
279 permit program.—
280 (5) MASTER BUILDING PERMIT APPLICATION APPROVAL PROCESS.—
281 (c) The local building department must approve or deny a
282 master building permit application within 120 days after the
283 local building department receives a completed application,
284 unless the applicant agrees to a longer period. If a local
285 building department fails to approve or deny a master building
286 permit application within 120 days after receiving the completed
287 permit application, it must reduce the master building permit
288 fee by 10 percent for each business day that it fails to meet
289 the deadline, unless the applicant agrees to a longer time
290 period. Each 10 percent reduction shall be based on the original
291 amount of the master building permit fee. If any master building
292 permit fees are refunded, the surcharges provided in s. 468.631
293 or s. 553.721 must be recalculated based on the amount of the
294 master building permit fees after the refund.
295 Section 7. Subsections (6) and (7) of section 713.135,
296 Florida Statutes, are renumbered as subsections (7) and (8),
297 respectively, and a new subsection (6) is added to that section
298 to read:
299 713.135 Notice of commencement and applicability of lien.—
300 (6) An authority that issues building permits may not
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301 require an applicant to provide a direct contract or a contract
302 between a contractor and any other lienor as a condition of the
303 application for, or processing or issuance of, a building permit
304 for the construction of improvements or for the alteration or
305 repair of improvements on or to commercial property. This
306 subsection does not apply to the construction of improvements or
307 the alteration or repair of improvements owned or leased by the
308 federal government, the state or any county, city, or political
309 subdivision thereof, or other public authority.
310 Section 8. This act shall take effect October 1, 2021.
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COMMERCE COMMITTEE
HB 1059 by Rep. Robinson, W.
Construction Permits
AMENDMENT SUMMARY
March 24, 2021
Amendment 1 by Rep. Robinson, W. (line 189):
The amendment:
• Clarifies that notices must state that a building permit applicant has 10 business days
to remedy deficiencies in their application or it will be denied.
COMMITTEE/SUBCOMMITTEE AMENDMENT
Bill No. CS/HB 1059 (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: Commerce Committee
2 Representative Robinson, W. offered the following:
3
4 Amendment
5 Remove lines 189-192 and insert:
6 business days after receiving the permit application, that
7 specifically states the reasons the permit application fails to
8 satisfy the Florida Building Code or the enforcing agency’s laws
9 or ordinances. The written notice must also state that the
10 applicant has 10 business days after receiving the written
11 notice to submit revisions to correct the application and that
12 failure to correct the application within 10 business days will
13 result in denial of the application.
041581 - h1059-line 189.docx
Published On: 3/23/2021 2:35:05 PM
Page 1 of 1
HB 1143
HOUSE OF REPRESENTATIVES STAFF ANALYSIS
BILL #: HB 1143 Funding of Aviation Development Projects
SPONSOR(S): Grall
TIED BILLS: IDEN./SIM. BILLS: SB 1466
REFERENCE ACTION ANALYST STAFF DIRECTOR or
BUDGET/POLICY CHIEF
1) Tourism, Infrastructure & Energy Subcommittee 16 Y, 0 N Johnson Keating
2) Infrastructure & Tourism Appropriations 12 Y, 0 N Davis Davis
Subcommittee
3) Commerce Committee Johnson Hamon
SUMMARY ANALYSIS
Under federal regulations, commercial service airports are categorized into large hub, medium hub, small hub,
and non-hub airports, based upon the number of passenger boardings in a given year.
Under Florida law, when federal funds are not available, the Department of Transportation (DOT) may fund up
to 80 percent of the costs for certain projects at airports that do not have any scheduled commercial service.
DOT may only fund up to 50 percent of the project cost if the airport has scheduled commercial service.
The bill authorizes DOT to fund up to 80 percent of the costs for eligible airport projects, with a 20 percent local
match at all publicly-owned, public-use general aviation airports and commercial service airports not classified
as large hub, medium hub, or small hub airports by the Federal Aviation Administration (FAA).
Under the bill, eligible projects at the following commercial service airports could receive DOT funding of up to
80 percent of the project costs with a 20 percent local match: Daytona Beach International, Gainesville
Regional, Melbourne International, Tallahassee International, and Vero Beach Regional Airports.
The bill has an indeterminate impact on state government expenditures, though all costs are limited to
available funding within the DOT’s Work Program. See Fiscal Analysis for details.
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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DATE: 3/22/2021
FULL ANALYSIS
I. SUBSTANTIVE ANALYSIS
A. EFFECT OF PROPOSED CHANGES:
Current Situation
Airport Oversight
At the federal level, the Federal Aviation Administration (FAA) is responsible for planning and
developing a safe and efficient national airport system. This includes all programs related to airport
safety and inspections and standards for airport design, construction, and operation. Federal law
requires each commercial service airport to operate under a federal certificate and comply with federal
aviation requirements. The FAA is responsible for national airport planning and environmental and
social requirements and establishes policies related to airport rates and charges, compliance with grant
assurances, and airport privatization.1
In Florida, the Department of Transportation (DOT) is responsible for planning airport systems and
promoting the further development and improvement of airport facilities.2 The owner or lessee of a
proposed public airport3 must receive DOT approval before site acquisition, construction, or
establishment of a public airport facility.4 DOT is also responsible for licensing public airport facilities
before the operation of aircraft to or from the facility and must inspect such facilities prior to licensing or
license renewal.5 Florida law authorizes local governments to establish and operate airports6 and
governs airport zoning and land use issues.7
Airport Categories
Under federal regulations, a commercial service airport is defined as a public airport that the FAA
determines has at least 2,500 commercial passenger boardings each year and is receiving scheduled
passenger service.8 A large hub airport is a commercial service airport that has at least 1 percent of the
commercial passenger boardings in United States.9 A medium hub airport is a commercial service
airport that has at least 0.25 percent but less than 1 percent of the commercial passenger boardings in
the United States.10 A small hub airport is a commercial service airport that has at least 0.05 percent
but less than 0.25 percent of the commercial passenger boardings in the United States.11 A non-hub
airport has less than 0.05 percent of all commercial passenger boardings in the United States but has
more than 10,000 passenger boardings.12
1
See Federal Aviation Administration, Airports, https://www.faa.gov/about/office_org/headquarters_offices/arp/ (last visited on
March 5, 2021).
2
S. 332.001. F.S.
3
S. 330.27(6), F.S. For purposes of DOT approval and licensure, the term “public airport” means an airport, publicly or privately
owned, which is open for use by the public.
4
S. 330.30(1), F.S.
5
S. 330.30(2), F.S.
6
See Ch. 332, F.S.
7
See Ch. 333, F.S.
8
49 U.S.C. § 47102(7).
9
49 U.S.C. § 47102(11). Florida’s large hub airports are Miami International, Orlando International, Ft. Lauderdale/Hollywood
International, and Tampa International.
10
49 U.S.C. § 47102(13). Florida’s medium hub airports are Southwest Florida International (Ft. Myers), Palm Beach International,
and Jacksonville International.
11
49 U.S.C. § 47102(25). Florida’s small hub airports are Orlando Sanford International, St. Pete-Clearwater International, Pensacola
International, Sarasota/Bradenton International, Northwest Florida-Beaches International (Panama City), Punta Gorda, Destin-Ft.
Walton Beach, and Key West.
12
49 U.S.C. § 47102(14). Florida’s non-hub airports are Tallahassee International, Daytona Beach International, Melbourne
International, and Gainesville Regional.
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Nonprimary airports are commercial service airports that have at least 2,500 and no more than 10,000
passenger boardings each year.13 Primary airports are commercial service airports that have more than
10,000 passenger boardings each year.14
Federal Airport Funding
At the federal level, airports receive federal grants administered by the FAA. The main grant program
for federal funds is the Airport Improvement Program (AIP). The AIP provides grants to public agencies
— and, in some cases, to private owners and entities — for the planning and development of public-
use airports.15
Eligible AIP projects include airport improvements related to enhancing airport safety, capacity,
security, and environmental concerns. In general, airports may receive AIP funds for most airfield
capital improvements or rehabilitation projects and, in some specific situations, for terminals, hangars,
and nonaviation development. Certain professional services that are necessary for eligible projects may
also be eligible. The FAA must be able to determine that the projects are justified based on civil
aeronautical demand. The projects must also meet federal environmental and procurement
requirements.16
State Airport Funding
Sections 332.003 through 332.007, F.S., create the Florida Airport Development and Assistance Act
(Act). The Act provides the following duties of DOT:
Provide coordination and assistance for the development of a viable aviation system.
Advise and assist the Governor in all aviation matters.
Upon request, assist airport sponsors in airport master planning.
Upon request, provide financial and technical assistance to public agencies which operate
public-use airports17 by making DOT resources available on a cost-reimbursement basis to such
agencies for special needs of limited duration.
Participate in research and development programs relating to airports.
Administer DOT’s participation in the program of aviation and airport grants.
Develop, promote, and distribute supporting information and educational services.
Encourage the maximum allocation of federal funds to local airport projects in this state.
Support the development of land located within the boundaries of airports for the purpose of
industrial or other uses compatible with airport operations.18
Section 332.007, F.S., relates to the administration and financing of aviation and airport programs and
projects. DOT must prepare and continuously update an aviation and airport work program based on a
collection of the local sponsors'19 proposed projects to be included in DOT’s work program.20 DOT’s
airport work program must separately identify development projects and discretionary capacity
improvement projects.21 DOT’s airport work program must be consistent with the statewide aviation
system plan and, to the maximum extent feasible, consistent with approved local government
comprehensive plans. Projects involving DOT-administered funds to be undertaken and implemented
13
See FAA, Airports, Planning and Capacity, Airport Categories, https://www.faa.gov/airports/planning_capacity/categories/ (last
visited on February 24, 2021). Florida’s only non primary airport is Vero Beach Regional Airport.
14
Id.
15
See FAA, Airports, Airport Improvement Program (AIP), Overview: What is AIP? https://www.faa.gov/airports/aip/overview/ (last
visited on February 24, 2021).
16
DOT Agency Analysis of 2021 House Bill 1143, p. 4. (February 25, 2021).
17
S. 332.004(14), F.S., defines the term “public-use airport” as any publicly owned airport which is used or to be used for public
purposes.
18
S. 332.006, F.S.
19
S. 332.004(15), F.S., defines the term “sponsor” as any eligible agency which, either individually or jointly with one or more
eligible agencies, submits to the department an application for financial assistance for an airport development project in accordance
with this act.
20
DOT’s work program is developed pursuant to s. 339.135, F.S.
21
S. 332.007(2)(a), F.S.
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by the airport sponsor must be included in the aviation and airport work program.22 Assistance may
only be provided for projects which are included in the department's adopted work program.23
Only projects or programs provided for in the Act that will contribute to the implementation of the state
aviation system plan, that are consistent with and will contribute to the implementation of any airport
master plan or layout plan, and that are consistent, to the maximum extent feasible, with the approved
local government comprehensive plans are eligible for the expenditure of state funds in accordance
with fund participation rates and priorities.24
Subject to the availability of appropriated funds, DOT may fund up to 50 percent of the portion of
eligible airport project costs which are not funded by the federal government, except that DOT may
initially fund up to 75 percent of the cost of land acquisition for a new airport or for the expansion of an
existing airport which is owned and operated by a municipality, a county, or an authority.25
However, DOT may help fund the capital cost of eligible public airport and aviation development
projects at a higher rate for various types of projects. When federal funds are not available, DOT may
fund up to 80 percent of master planning and eligible aviation development projects at publicly owned,
publicly operated airports. If federal funds are available, DOT may fund up to 80 percent of the
nonfederal share of such projects. Such funding is limited to airports that have no scheduled
commercial service.26
DOT requires statutory compliance via assurances included with each grant agreement. The agency
certifies that, with respect to a project, it will comply, within its authority, with all applicable, current laws
and rules of the state and local government, as well as DOT policies, guidelines, and requirements.
The sponsor also certifies, with respect to a construction-related project, that all design plans and
specifications will comply with applicable federal, state, local, and professional standards, as well as
FAA advisories and FAA issued waivers. Failure by the agency to satisfactorily remedy the non-
compliance absolves DOT’s continued financial commitment to the project and immediately requires
the agency to repay DOT the full amount of funds expended by DOT on a project.27
Effect of the Bill
The bill authorizes DOT to fund up to 80 percent of the costs for eligible airport projects, with a 20
percent local match, at all publicly-owned, public-use general aviation airports and commercial service
airports not classified as large hub, medium hub, or small hub by the FAA. Thus commercial service
airports with less than approximately 470,000 passenger boardings per year will qualify for this
funding.28 This number will change over time, however, with the number of passenger boardings at
United States airports.
Based on current passenger boardings, the bill would allow DOT to fund eligible projects at up to 80
percent of project costs with a 20 percent local match at the following commercial service airports:
Daytona Beach International, Gainesville Regional, Melbourne International, Tallahassee International,
and Vero Beach Regional airports.29
The bill has an effective date of July 1, 2021.
B. SECTION DIRECTORY:
22
S. 332.007(2)(b), F.S.
23
S. 332.007(3), F.S.
24
S. 332.007(5), F.S.
25
S. 332.007(6)(a), F.S.
26
S. 332.007(6)(c), F.S.
27
DOT Agency Analysis of 2021 House Bill 1143.
28
FAA, Commercial Service Airports (Rank Order) based in Calendar Year 2019, September 25, 2020.
https://www.faa.gov/airports/planning_capacity/passenger_allcargo_stats/passenger/media/cy19-commercial-service-
enplanements.pdf (last visited March 9, 2020).
29
DOT Agency Analysis of 2021 House Bill 1143; p. 4, 6-7.
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Section 1 Amends s. 332.007, F.S., relating to the administration and financing of airport programs
and projects.
Section 2 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:
Indeterminate.30 See Fiscal Comments.
B. FISCAL IMPACT ON LOCAL GOVERNMENTS:
1. Revenues:
None.
2. Expenditures:
Indeterminate. See Fiscal Comments.
C. DIRECT ECONOMIC IMPACT ON PRIVATE SECTOR:
None.
D. FISCAL COMMENTS:
The bill expands the number of airports that would qualify for the 80/20 percent, state/local match
requirement for certain commercial service airport projects seeking DOT aviation funds. This change
could impact the opportunity of these airports to engage in these projects as it would decrease the local
match requirement while increasing the state’s share of funding. While the impact of the shift in match
required is indeterminate, all costs are still limited to available aviation project funding within DOT’s
adopted Work Program.
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 sales tax shared with counties or
municipalities.
2. Other:
None.
B. RULE-MAKING AUTHORITY:
The bill does not require rulemaking, nor does it provide a grant of rulemaking authority.
30
DOT Revised Agency Analysis of HB 1143, p. 6.
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C. DRAFTING ISSUES OR OTHER COMMENTS:
None.
IV. AMENDMENTS/ COMMITTEE SUBSTITUTE CHANGES
None.
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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 1143 2021
1 A bill to be entitled
2 An act relating to funding of aviation development
3 projects; amending s. 332.007, F.S.; providing that
4 specified funding of aviation development projects is
5 limited to general aviation airports or commercial
6 service airports under certain circumstances;
7 providing an effective date.
8
9 Be It Enacted by the Legislature of the State of Florida:
10
11 Section 1. Paragraph (c) of subsection (6) of section
12 332.007, Florida Statutes, is amended to read:
13 332.007 Administration and financing of aviation and
14 airport programs and projects; state plan.—
15 (6) Subject to the availability of appropriated funds, the
16 department may participate in the capital cost of eligible
17 public airport and aviation development projects in accordance
18 with the following rates, unless otherwise provided in the
19 General Appropriations Act or the substantive bill implementing
20 the General Appropriations Act:
21 (c) When federal funds are not available, the department
22 may fund up to 80 percent of master planning and eligible
23 aviation development projects at publicly owned, publicly
24 operated airports. If federal funds are available, the
25 department may fund up to 80 percent of the nonfederal share of
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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 1143 2021
26 such projects. Such funding is limited to general aviation
27 airports, or commercial service airports that are not classified
28 as large, medium, or small hub airports by the Federal Aviation
29 Administration have no scheduled commercial service.
30 Section 2. This act shall take effect July 1, 2021.
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CS/HB 6077
HOUSE OF REPRESENTATIVES STAFF ANALYSIS
BILL #: CS/HB 6077 Assets of an Estate in Administration
SPONSOR(S): Insurance & Banking Subcommittee; Robinson, W.
TIED BILLS: IDEN./SIM. BILLS: CS/SB 1288
REFERENCE ACTION ANALYST STAFF DIRECTOR or
BUDGET/POLICY CHIEF
1) Insurance & Banking Subcommittee 16 Y, 0 N, As CS Hinshelwood Luczynski
2) Commerce Committee Hinshelwood Hamon
SUMMARY ANALYSIS
A court having jurisdiction over the administration of an estate may order that part or all of the personal assets
of the estate be placed with a financial institution designated by the court. Currently, the financial institutions
where a court may order assets placed are “a bank, trust company, or savings and loan association (which
savings and loan association is a member of the Federal Savings and Loan Insurance Corporation and doing
business in this state).” The Federal Savings and Loan Insurance Corporation (FSLIC) was created in 1934 in
order to insure deposits of savings and loan associations. However, the FSLIC was abolished in 1989 after the
savings and loan crisis of the 1980s. Savings and loan associations are now insured by the Federal Deposit
Insurance Corporation, as are commercial banks.
The bill removes a statutory reference to the FSLIC along with other obsolete language.
The bill has no impact on local governments or the state. The bill has an indeterminate but likely positive
impact on the private sector.
The bill provides 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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DATE: 3/22/2021
FULL ANALYSIS
I. SUBSTANTIVE ANALYSIS
A. EFFECT OF PROPOSED CHANGES:
Background
When a court administers an estate, such as in probate1 or in a guardianship,2 there is often an
individual appointed by the court to assist with the administration. Depending on the context, such
individual will have varying titles such as guardian, curator, executor, administrator, trustee, or receiver.
Although the individual may be required by statute or the court to carry a bond,3 s. 69.031, F.S.,
provides that a court may nevertheless order that part or all of the personal assets of the estate be
placed with a financial institution designated by the court.4 This may occur if the size of the bond
required is burdensome, or for other cause.5 After the assets have been placed with the financial
institution, and receipt for the assets is given by the financial institution, the court must waive the bond
or reduce it so that the bond only applies to the estate remaining in the hands of the individual
appointed to assist with administration of the estate.6
Currently, the financial institutions where a court may order assets placed are “a bank, trust company,
or savings and loan association (which savings and loan association is a member of the Federal
Savings and Loan Insurance Corporation and doing business in this state).”7
The Federal Savings and Loan Insurance Corporation (FSLIC) was created by the National Housing
Act of 1934 in order to insure deposits of savings and loan associations.8 Savings and loan
associations may be chartered both under federal authority9 or state authority10 and were created to
primarily provide depository services and make home loans. Today, the rights and privileges of savings
and loan associations are substantially similar to, and in some cases the same as, commercial banks.11
The Federal Deposit Insurance Corporation now insures savings and loan associations, as well as
commercial banks.12 The FSLIC, the entity that initially insured savings and loan associations, was
abolished in 1989 after the savings and loan crisis of the 1980s.13
As previously stated, s. 69.031, F.S., permits a court to place assets in a savings and loan association
that is a member of the FSLIC, a now obsolete entity.
Effect of the Bill
1 Probate is a court-supervised process for identifying and gathering the assets of a deceased person (decedent), paying
the decedent’s debts, and distributing the decedent’s assets to his or her beneficiaries. The Florida Bar, Consumer
Pamphlet: Probate in Florida, https://www.floridabar.org/public/consumer/pamphlet026/ (last visited Mar. 6, 2021).
2 A guardianship is a legal proceeding in the circuit courts of Florida in which a guardian is appointed to exercise the legal
rights of an incapacitated person. The Florida Bar, Consumer Pamphlet: What is Guardianship?,
https://www.floridabar.org/public/consumer/pamphlet030/ (last visited Mar. 6, 2021).
3 See, e.g., fiduciary bonds in formal probate proceedings (ss. 733.402 – 733.406, F.S.); fiduciary bonds in guardianship
(ss. 744.2003, 744.351, and 744.619, F.S.).
4 S. 69.031(1), F.S.
5 Id.
6 S. 69.031(1) and (2), F.S.
7 S. 69.031(1), F.S. (emphasis added).
8 Pub.L. 73–479, https://govtrackus.s3.amazonaws.com/legislink/pdf/stat/48/STATUTE-48-Pg1246.pdf.
9 Home Owners' Loan Act, 12 U.S.C. § 1461 et seq.
10 In Florida, chs. 665 and 667, F.S., comprise authority to charter a savings and loan association. However, Florida
currently has no savings and loan associations chartered under its authority.
11 Office of the Comptroller of the Currency, Interpretive Letter #1169 (June 30, 2020),
https://www.occ.treas.gov/topics/charters-and-licensing/interpretations-and-actions/2020/int1169.pdf (last visited Mar. 6,
2021).
12 12 U.S.C. § 1814(a).
13 Financial Institutions Reform, Recovery, and Enforcement Act of 1989, Pub.L. 101-73,
https://www.govinfo.gov/content/pkg/STATUTE-103/pdf/STATUTE-103-Pg183.pdf (last visited Mar. 6, 2021).
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The bill removes a statutory reference to the FSLIC along with other obsolete language.
B. SECTION DIRECTORY:
Section 1. Amends s. 69.031, F.S., relating to designated financial institutions for assets in hands of
guardians, curators, administrators, trustees, receivers, or other officers.
Section 2. 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 broadens access to financial services by allowing a court to place assets of an estate in a
savings and loan association without reference to the savings and loan association having insurance
through the FSLIC, a now obsolete entity. The impact to the private sector, while likely positive, is
indeterminate.
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:
None.
C. DRAFTING ISSUES OR OTHER COMMENTS:
None.
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DATE: 3/22/2021
IV. AMENDMENTS/ COMMITTEE SUBSTITUTE CHANGES
On March 10, 2021, the Insurance & Banking Subcommittee considered a proposed committee substitute
and reported the bill favorably as a committee substitute. While the bill as filed deleted reference to the
FSLIC, the committee substitute also deletes the phrase “doing business in this state”.
The staff analysis has been updated to reflect the committee substitute.
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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
CS/HB 6077 2021
1 A bill to be entitled
2 An act relating to assets of an estate in
3 administration; amending s. 69.031, F.S.; removing a
4 requirement that assets of an estate in administration
5 may only be placed in a savings and loan association
6 if it meets specified requirements; providing an
7 effective date.
8
9 Be It Enacted by the Legislature of the State of Florida:
10
11 Section 1. Subsection (1) of section 69.031, Florida
12 Statutes, is amended to read:
13 69.031 Designated financial institutions for assets in
14 hands of guardians, curators, administrators, trustees,
15 receivers, or other officers.—
16 (1) When it is expedient in the judgment of any court
17 having jurisdiction of any estate in process of administration
18 by any guardian, curator, executor, administrator, trustee,
19 receiver, or other officer, because the size of the bond
20 required of the officer is burdensome or for other cause, the
21 court may order part or all of the personal assets of the estate
22 placed with a bank, trust company, or savings and loan
23 association (which savings and loan association is a member of
24 the Federal Savings and Loan Insurance Corporation and doing
25 business in this state) designated by the court, consideration
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26 being given to any bank, trust company or savings and loan
27 association proposed by the officer. When the assets are placed
28 with the designated financial institution, it shall file a
29 receipt therefor in the name of the estate and give the officer
30 a copy. Such receipt shall acknowledge the assets received by
31 the financial institution. All interest, dividends, principal
32 and other debts collected by the financial institution on
33 account thereof shall be held by the financial institution in
34 safekeeping, subject to the instructions of the officer
35 authorized by order of the court directed to the financial
36 institution.
37 Section 2. This act shall take effect July 1, 2021.
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