Pandemic Darlings The pandemic economy, in original documents
Home Source documents Meeting Packet - Commerce Committee (April 6, 2021)

Meeting Packet - Commerce Committee (April 6, 2021)

Summary

Meeting packet of the Commerce Committee for Tuesday, April 6, 2021, 12:30 PM to 2:30 PM, with an agenda of bills for consideration that includes CS/HB 339 (Business Organizations) and CS/HB 539 (Renewable Energy). The staff analysis of CS/HB 339 says that as of October 2020, Florida has approximately 2,500,212 active business entities, and that the bill clarifies issues related to appraisal rights for shareholders who dissent from corporate or majority shareholder action. It states the bill does not appear to have a fiscal impact on state or local governments and is effective upon becoming law. The packet ends with the text of HB 7049, which has an effective date of October 1, 2021.

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

Cite this document

“Meeting Packet - Commerce Committee (April 6, 2021).” Archived at Pandemic Darlings, https://pandemicdarlings.com/source-documents/2021-04-06-3098-commerce-committee-meeting-packets-fn-com-4-6-21-e76f2583cf/, SHA-256 e10e4799a078746104e9d6a4640defc1b13456d2ff165d6133b9744e52e763f4.

Full text

                Commerce Committee
                   Tuesday, April 6, 2021
                    12:30 PM – 2:30 PM
                  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

                                       Tuesday, April 6, 2021
                                        12:30 PM – 2:30 PM
                                      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 339 Business Organizations by Regulatory Reform Subcommittee,
                Robinson, W.

           •    CS/HB 415 Fire Department Communications by Insurance & Banking
                Subcommittee, Botana

           •    HB 483 Electronic Legal Documents by Altman

           •    HB 535 Electronic Dissemination of Commercial Recordings and Audiovisual
                Works by Busatta Cabrera

           •    CS/HB 539 Renewable Energy by Environment, Agriculture & Flooding
                Subcommittee, Byrd, Roth

           •    CS/HB 615 Community Association Assessment Notices by Regulatory Reform
                Subcommittee, Rodriguez

           •    CS/HB 1051 Environmental Compliance Costs by Tourism, Infrastructure &
                Energy Subcommittee, Fernandez-Barquin



                   303 House Office Building, 402 South Monroe Street, Tallahassee, FL 32399-1300
                                                   (850) 717-4870
         •   CS/HB 1151 Department of Highway Safety and Motor Vehicles by Tourism,
             Infrastructure & Energy Subcommittee, Brannan

         •   HB 1359 Pub. Rec./Department of Highway Safety and Motor Vehicles by
             Brannan

         •   CS/HB 1431 Swimming Pool Specialty Contracting Services by Regulatory
             Reform Subcommittee, McClure

         •   HB 1539 Pub. Rec./Department of Agriculture and Consumer Services by Jenne

         •   HB 6059 Composition of the Multi-use Corridors of Regional Economic
             Significance Program by Shoaf

         •   HB 7049 OGSR/Office of Insurance Regulation by Government Operations
             Subcommittee, Shoaf

V.    Closing Remarks

VI.   Adjournment
CS/HB 339
                                    HOUSE OF REPRESENTATIVES STAFF ANALYSIS

BILL #:     CS/HB 339 Business Organizations
SPONSOR(S): Regulatory Reform Subcommittee, Robinson, W.
TIED BILLS:       IDEN./SIM. BILLS: CS/SB 602


  REFERENCE                                                       ACTION                   ANALYST                STAFF DIRECTOR or
                                                                                                                  BUDGET/POLICY
                                                                                                                  CHIEF

  1) Regulatory Reform Subcommittee                               15 Y, 1 N, As CS         Wright                 Anstead

  2) Civil Justice & Property Rights Subcommittee                 15 Y, 1 N                Mawn                   Jones

  3) Commerce Committee                                                                    Wright                 Hamon

                                                        SUMMARY ANALYSIS

As of October 2020, Florida has approximately 2,500,212 active business entities in the state, regulated under
the Florida Business Corporation Act, The Florida Revised Limited Liability Company Act, corporations not for
profit laws, and limited partnership laws.

In 2014, the Corporations, Securities, and Financial Services Committee of the Florida Bar Business Law
Section organized a drafting task force to recommend revisions to Florida business entity laws. The task
force’s effort resulted in the Legislature passing a comprehensive revision to Florida’s entity statutes.
However, the task force subsequently identified issues that needed clarification, in addition to several errors in
the enrolled bill, including grammar, punctuation, and cross reference errors, and statutory inconsistencies.
Some issues were fixed in the 2020 Session, but additional issues have since been identified.

The bill clarifies issues related to the process by which certain shareholders may dissent to corporate or
majority shareholder action by asserting their appraisal rights, which requires a corporation to buy the
shareholders’ stock at its “fair value.”

The bill also:
   • Amends several provisions related to appraisal rights for minority shareholders and beneficial owners;
   • Allows prepayment in appraisal actions;
   • Makes correcting and conforming changes to corporation provisions; and
   • Makes correcting changes to not for profit corporation and limited liability company provisions.

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

The bill is effective upon becoming law.




This document does not reflect the intent or official position of the bill sponsor or House of Representatives.
STORAGE NAME: h0339d.COM
DATE: 4/2/2021
                                                          FULL ANALYSIS

                                                  I. SUBSTANTIVE ANALYSIS

    A. EFFECT OF PROPOSED CHANGES:
         In 1950, the American Bar Association (ABA) promulgated the Model Business Corporations Act
         (MBCA), a body of laws designed to uniformly regulate United States corporations.1 However,
         individual states may promulgate laws relating to the creation, organization, operation, and dissolution
         of corporations and other entities in their respective jurisdictions.2

         Generally, Florida regulates the following entities:3
            • Business corporations;
            • Nonprofit corporation;
            • General partnerships, including limited liability partnerships;
            • Limited partnerships, including limited liability limited partnerships;
            • Limited liability companies;
            • Declarations of trust; and
            • Foreign entities.

         As of October 2020, Florida had approximately 2,500,212 active business entities in the state,4
         regulated under the Florida Business Corporation Act (FBCA),5 The Florida Revised Limited Liability
         Company Act (FRLLCA),6 corporations not for profit laws,7 and limited partnership laws,8 which are now
         largely modeled after the MBCA.9 In 2014, the Corporations, Securities, and Financial Services
         Committee of the Florida Bar Business Law Section (FBBLS) organized a drafting task force to
         recommend revisions to Florida business entity laws, last overhauled in 1989, as the ABA was in the
         process of revising and modernizing the MBCA.10 The task force’s mission statement included a full
         FBCA study and the proposal of revisions to:
              Bring the laws in line with MBCA revisions;
              Maintain Florida’s competitiveness with other jurisdictions;
              Fix issues in existing law; and
              Encourage the formation and use of Florida corporations.11

         The task force’s effort resulted in the Legislature passing a comprehensive revision to Florida’s entity
         statutes12 signed into law on June 7, 2019, with a January 1, 2020 effective date.13 However, the task
         force subsequently identified issues that needed clarification, in addition to several errors in the
         enrolled bill, including grammar, punctuation, cross reference errors, and statutory inconsistencies.14
         Some issues were fixed in the 2020 Session,15 but additional issues have since been identified.16


1 William H. Clark, Jr., The Relationship of the Model Business Corporation Act to Other Entity Laws, Law and Contemporary Problems

Vol. 74, No. 57, https://scholarship.law.duke.edu/cgi/viewcontent.cgi?article=1609&context=lcp (last visited Mar. 26, 2021).
2 Id.
3 S. 605.0102(23), F.S; Title XXXVI, F.S.
4 The Florida Department of State, Division of Corporations, Yearly Statistics, https://dos.myflorida.com/sunbiz/about-us/yearly-

statistics/ (last visited Mar. 26, 2021).
5 Ch. 607, F.S.
6 Ch. 605, F.S.
7 Ch. 617, F.S.
8 Ch. 620, F.S.
9 The Florida Bar Business Law Section, Proposed Modifications to Chapter 607 (Florida Business Corporation Act), (Jan. 24, 2019).
10 Id.
11 Id.
12 These included the Florida Revised Limited Liability Company Act of ch. 605, F.S., and the Florida Not for Profit Corporation Act of

ch. 617, F.S.
13 Ch. 2019-90, L.O.F., in CS/CS/HB 1009 (2019).
14 The Florida Bar Business Law Section (FBBLS), White Paper for S.B. [838] & H.B. [495]: “An Act Relating to Business

Organizations,” (Oct. 21, 2019).
15 Ch. 2020-32, L.O.F., in CS/SB 838 (2020).
16 Florida Bar Business Law Section (FBBLS), Chapter 607 Drafting Subcommittee, White Paper for S.B. 602 & H.B. 339: An Act

Relating to Corporations and Other Entities, 1-2 (Feb. 2021).
STORAGE NAME: h0339d.COM                                                                                                          PAGE: 2
DATE: 4/2/2021
         Appraisal Rights for Corporation Shareholders

         Triggers of Appraisal Rights for Minority Shareholders – Current Situation

         Minority shareholders may dissent to corporate or majority shareholder action by asserting their
         appraisal rights, pursuant to ss. 607.1301-607.1340, F.S., which requires a corporation to buy the
         minority shareholders’ stock at its “fair value.”17 This remedy is one of the few protections against
         actions that “… fundamentally change the nature of the shareholders’ investments without the check
         and balance of informed shareholder approval, and [provide] the opportunity for dissenters to withdraw
         from the corporation.”18 The appraisal process is effectuated through a judicial hearing, where a court
         appraises the fair value of the shareholder’s interests and assesses the corporation for payment of both
         the fair value and any accrued interest, calculated according to s. 55.03, F.S.

         A minority shareholder may assert his or her appraisal rights only in specific instances where a
         fundamental corporate change occurs, including (and subject to substantial restrictions and limits) the
         domestication or conversion to another type of business entity, a merger or share exchange, a
         disposition of all or substantially all of the corporation’s assets, an amendment to the corporation’s
         articles of incorporation that creates fractional shares, and in other cases involving a corporation’s
         articles of incorporation, bylaws, or a resolution of its board of directors.19, 20 For example, in s.
         607.1302(1)(g), F.S., shareholders may assert appraisal rights where an amendment to the articles of
         incorporation or bylaws adversely alters or abolishes the shareholder’s voting rights or other rights.21
         Also, in s. 607.1302(1)(h), F.S., a shareholder of a class of shares prescribed in an articles of
         incorporation prior to October 1, 2003, including any shares within that class subsequently authorized
         by amendment, is entitled to appraisal rights if there is amendment of the articles of incorporation on
         which the shareholder is entitled to vote and such amendment would adversely affect such shareholder
         by certain actions to reduce shares, value of the shares, and voting rights.22

         Triggers for Appraisal Rights for Minority Shareholders – Effect of the Bill

         The bill narrows the instances that trigger a minority shareholder’s appraisal rights by deleting the
         provision allowing shareholders to assert appraisal rights where an amendment to the articles of
         incorporation or bylaws adversely alters or abolishes the shareholder’s voting or other rights. However,
         the bill allows shareholders in a corporation with 100 or fewer shareholders, whose shares were
         authorized on, or after October 1, 2003, the same appraisal rights as granted in s. 607.1302(1)(h), F.S.
         Minority shareholders may still assert their appraisal rights under several other bases enumerated in s.
         607.1302(1), F.S.

         Market Out Exception to Appraisal Rights – Current Situation

         What is commonly called the “market out exception” means that appraisal rights are unavailable for
         certain shareholders in certain situations and the shareholders must either accept the adverse
         corporate action or sell their shares in an organized market.23 The theory behind the "market out"
         exception is that the shareholder, if dissatisfied with the proposed corporate action, can choose to sell
         the shares into an organized market that is liquid and where the value of the shares is reasonably
         calculated to arrive at a price reflective of an arm's length transaction.24




17 S. 607.1302(1), F.S.; S. 607.1301(5), F.S., defines “fair value” as the value of the corporation’s shares immediately before the

effectiveness of the corporate action in question, using commonly-used valuation concepts and techniques, without discounting for lack
of marketability or minority status of the shares.
18 Gregory Yadley and Christina Nethero, Florida Corporate Practice: Appraisal Rights s. 11:1 (2020); see also, South End

Improvement Group, Inc. by & through Bank of New York v. Mulliken, 602 So. 2d 1327, 1332 (Fla. 4th DCA 1992).
19 Section 607.1302(1), F.S.
20 Gregory Yadley and Christina Nethero, Florida Corporate Practice: Appraisal Rights s. 11:2.C (2020).
21 S. 607.1302(1)(g), F.S.
22 S. 607.1302(1)(h), F.S.
23 FBBLS, supra note 16, at 4.
24 Id.

STORAGE NAME: h0339d.COM                                                                                                          PAGE: 3
DATE: 4/2/2021
         Thirty-eight states, including Florida, operate under the market out exception, which restricts the
         appraisal rights available to shareholders of stock in large or publicly traded corporations. “[P]ublic
         shareholders presumptively have an available market. [W]hen a public market exists…, public
         shareholders must employ market price instead of court-appraisal as the measure of their interests.”25

         In Florida, the market out exception excludes shareholders from asserting appraisal rights if:26
             • Their triggering action is:
                    o Consummation of a domestication or a conversion of such corporation, if shareholder
                        approval is required for the domestication or the conversion;
                    o Consummation of a merger to which such corporation is a party, in certain situations;
                    o Consummation of a share exchange to which the corporation is a party as the corporation
                        whose shares will be acquired, except any shareholder of the corporation with respect to
                        any class or series of shares that is not acquired in the share exchange;
                    o Consummation of a disposition of assets if the shareholder is entitled to vote on the
                        disposition, including a sale in dissolution, in certain situations; or
                    o An amendment of the articles of incorporation with respect to a class or series of shares
                        which reduces the number of shares of a class or series owned by the shareholder to a
                        fraction of a share if the corporation has the obligation or the right to repurchase such
                        fractional share; and
             • Their shares are:
                    o A covered security;
                    o Not a covered security, but are traded in an organized market; or
                    o Issued by an open end management investment company that is registered with the
                        Securities and Exchange Commission.

         Whether the market out exception applies is determined as of:
           • The record date fixed to determine the shareholders entitled to receive notice of the meeting of
               shareholders to act upon the corporate action requiring appraisal rights, or the date of offer for a
               merger or share exchange; or
           • If there will be no meeting of shareholders and no offer of a merger or share exchange is made,
               the close of business on the day before the consummation of the corporate action or the
               effective date of the amendment of the articles, as applicable.

         “Record date” means the date fixed for determining the identity of the corporation’s shareholders and
         their share holdings. Unless another time is specified when the record date is fixed, the determination is
         made as of the close of business at the principal office of the corporation on the date so fixed.27

         Market Out Exception to Appraisal Rights – Effect of the Bill

         The bill broadens the market out exception by prohibiting appraisal actions asserted in connection with
         a corporation’s merger, share exchange, or disposition of corporate assets (as permitted by the
         corporation’s articles of incorporation or bylaws), or those that adversely affect a shareholder of a
         closely held corporation or a shareholder who holds shares issued prior to October 1, 2003.

         The bill also provides that the market out exception applies where the shares held are not a covered
         security, but traded in an organized market or subject to a “comparable trading process.” The bill
         defines a “comparable trading process” as one where the:
             • Share’s market price is determined at least quarterly based on an independent valuation and by
                 following a formalized process that is designed to determine a value for the corporation’s shares
                 that is comparable to the value of a comparable publicly traded companies; and
             • Corporation repurchases the shares at pricing set by its board of directors based on the
                 independent valuation and subject to established terms and conditions that have been provided
                 to the shareholders.

25 Gil Matthews, The “Market Exception” in Appraisal Statutes, (Mar. 30, 2020), https://corpgov.law.harvard.edu/2020/03/30/the-market-

exception-in-appraisal-statues/ (last visited Mar. 26, 2021).
26 S. 607.1302(2), F.S.
27 S. 607.01401(63), F.S.

STORAGE NAME: h0339d.COM                                                                                                      PAGE: 4
DATE: 4/2/2021
         The bill clarifies that, in cases in which the triggering corporate action must be approved by
         shareholders’ written consent, the applicability of the market share exception must be decided at the
         point at which the record date was fixed to determine which shareholders are entitled to sign the
         consent.

         Assertion of Appraisal Rights by Nominees and Beneficial Owners - Current Situation

         “Record shareholder” means the person:28
             • In whose name shares are registered in the records of the corporation; or
             • Identified as a beneficial owner of shares in the beneficial ownership certificate on file with the
                corporation to the extent of the rights granted by such certificate.

         “Beneficial shareholder” means a person who owns the beneficial interest in shares. Such person may
         be a record shareholder or a person on whose behalf shares are registered in the name of an
         intermediary or nominee.29 Generally, an intermediary or a nominee holds legal ownership of a security,
         including shares, while beneficial ownership is held by someone else who receives all dividends and
         other benefits of ownership.30

         A record shareholder may assert appraisal rights as to fewer than all the shares registered in the record
         shareholder’s name but owned by a beneficial shareholder or a voting trust beneficial owner only if the
         record shareholder:31
             • Objects with respect to all shares of the class or series owned by the beneficial shareholder or
                 the voting trust beneficial owner; and
             • Notifies the corporation in writing of the name and address of each beneficial shareholder or
                 voting trust beneficial owner on whose behalf appraisal rights are being asserted.

         The rights of a record shareholder who asserts appraisal rights for only part of the shares held in the
         record shareholder’s name under this subsection are determined as if the shares as to which the record
         shareholder objects and the record shareholder’s other shares were registered in the names of different
         record shareholders.32

         A beneficial shareholder and a voting trust beneficial owner may assert appraisal rights as to shares of
         any class or series held on behalf of the shareholder only if such shareholder:33
             • Submits to the corporation the record shareholder’s written consent to the assertion of such
                 rights no later than the date referred to in s. 607.1322(2)(b)2; and
             • Does so with respect to all shares of the class or series that are beneficially owned by the
                 beneficial shareholder or the voting trust beneficial owner.

         Currently, a shareholder who wishes to demand an appraisal rights payment from the corporation must
         take certain actions before the triggering corporate action is effectuated.34 There is no specific
         requirement for when shares must have been beneficially owned to be able to demand payment.
         FBBLS has identified perceived abuses associated with appraisal rights being simultaneously bought
         and sold (arbitrage), stemming from most simultaneous buyers and sellers of appraisal rights
         (arbitrageurs) not being historical shareholders of the corporation, but rather those who purchase their
         shares after the announcement date of, or record date for, the meeting at which the corporate action is
         to be voted upon, or the effective date of the written consent approving such corporate action.35



28 S. 607.01401(64), F.S.
29 S. 607.01401(7), F.S.
30 The Free Dictionary by Farlex, The Financial Dictionary, Nominee, https://financial-dictionary.thefreedictionary.com/nominee (last

visited Mar. 26, 2021).
31 S. 607.1303(1), F.S.
32 Id.
33 S. 607.1303(2), F.S.
34 S. 607.1321
35 FBBLS, supra note 16, at 8.

STORAGE NAME: h0339d.COM                                                                                                         PAGE: 5
DATE: 4/2/2021
         Assertion of Appraisal Rights by Nominees and Beneficial Owners – Effect of the Bill

         The bill requires a beneficial shareholder who wishes to assert his or her appraisal rights and demand
         payment to have a beneficial ownership in their shares in the corporation by the record date established
         for the triggering corporate action.

         The bill provides that a record shareholder asserting appraisal rights as to fewer than all the shares
         registered in the record shareholder’s name but owned by a beneficial shareholder or a voting trust
         beneficial owner may only do so if the beneficial shareholder or voting trust beneficial owner acquired
         all of their shares before the record date for the triggering corporate action.

         Award of Accrued Interest in an Appraisal Action – Current Situation
         Currently, “accrued interest” as it applies to interest on payments made pursuant to an assertion of
         one’s appraisal rights is calculated at the statutory judgment interest rate as described in s. 55.03,
         F.S.36 The interest rate, set by the Chief Financial Officer on December 1, March 1, June 1, and
         September 1 of each year, is payable on judgments for the calendar quarter beginning January 1, and
         adjusted quarterly on April 1, July 1, and October 1 by averaging the discount rate of the Federal
         Reserve Bank of New York for the preceding 12 months, then adding 400 basis points.37

         Award of Accrued Interest in an Appraisal Action – Effect of the Bill

         The bill amends the definition of “accrued interest” to require the parties in an appraisal action either to
         agree to an interest rate between themselves, or to accept a rate determined by a court to be equitable.
         The court’s rate may not exceed the statutory judgment rate described in s. 55.03, F.S. Additionally, the
         bill allows a court to prohibit the payment of interest where it finds that the shareholder who asserted
         his or her appraisal rights acted arbitrarily or not in good faith.

         The bill also makes conforming changes to reflect both that the rate of interest is variable and that a
         court may choose not to award accrued interest pursuant to the amended definition of the term.

         Prepayment in an Appraisal Action – Current Situation

         Currently, there is no provision allowing prepayment of the fair value of shares that are the subject of a
         shareholder’s appraisal action to a shareholder. FBBLS argues that allowing such prepayment would
         shorten the amount of time during which interest can accrue, and therefore mitigates risk to the
         corporation.38

         Prepayment in an Appraisal Action – Effect of the Bill

         The bill gives corporations the option to prepay the fair value of the shares that are the subject of a
         shareholder’s appraisal action, and requires such shareholder to accept such prepayment. Specifically,
         the bill allows the corporation to prepay all, or any part of the amount, that it determines is due to the
         shareholder. If the corporation makes the prepayment within 90 days after the appraisal notice, then the
         corporation may only be liable for the accrued interest on any amount above what it prepaid to the
         shareholder. If the corporation makes a payment after the 90-day period, but before a judicial
         determination of the interest due, then the corporation must prepay interest at the statutory judgment
         rate provided for in s. 55.03, F.S., and may be liable for additional interest on any excess payment due,
         calculated from the date the corporate action became effective.

         The bill makes conforming changes to acknowledge the prepayment options provided in the bill.

         Name of a Dissolved Entity – Current Situation


36 S. 607.1301(1), F.S.
37 S. 55.03(1), F.S.
38 FBBLS, supra note 16, at 8.

STORAGE NAME: h0339d.COM                                                                                      PAGE: 6
DATE: 4/2/2021
         Currently, the name of a dissolved corporation is not available for use by another corporation for one
         year after the effective date of dissolution, unless the dissolved corporation gives certain consent.39
         Previous to 2019, the time period was 120 days.40 FBBLS indicates that the change was inadvertent
         and should go back to the 120 day time period previously authorized.41

         Name of a Dissolved Entity – Effect of the Bill

         The bill reverts to the 120-day period, and makes a non-substantive conforming change.

         Property Associations and Not-For-Profit Corporations

         Committee Requirements – Current Situation

         Section 617.0825, F.S., outlines requirements for not for profit corporation board and advisory
         committees. Such requirements do not apply to board or advisory committees established under:
             • Chapter 718, F.S., relating to condominium associations, to perform functions under s.
                 718.303(3), relating to levying fines for violating the declaration, bylaws, or rules;
             • Chapter 719, F.S., relating to cooperative associations, to perform the functions under s.
                 719.303(3), relating to levying fines for violating the documents or rules; or
             • Chapter 720, F.S., relating to homeowners’ associations, to perform functions under s.
                 720.303(2), relating to board meetings, or s. 720.3035(1), relating to architectural and
                 construction improvements.

         Committee Requirements – Effect of the Bill

         The bill revises the property association activity committees which are exempt from the not for profit
         corporation advisory committee requirements. The bill removes homeowners’ association committees
         related to board meetings, and adds homeowners’ association committees related to levying fines for
         violating the declaration, bylaws, or rules and reviving covenants.

         Quorum Requirements – Current Situation

         Currently, an amendment to the articles of incorporation or the bylaws of any not for profit corporation
         which adds, changes, or deletes a quorum or voting requirement must meet the same quorum or voting
         requirement and be adopted by the same vote and voting groups required to take action under the
         quorum and voting requirements then in effect or proposed to be adopted, whichever is greater.42




39 S. 607.1405, F.S.
40 Ch. 2019-90, L.O.F.
41 FBBLS, supra note 16, at 9.
42 S. 617.0725, F.S.

STORAGE NAME: h0339d.COM                                                                                    PAGE: 7
DATE: 4/2/2021
        Quorum Requirements – Effect of the Bill

        The bill exempts not for profit corporations that are condominium, cooperative, or homeowners’
        associations from not for profit corporation requirements for amending articles of incorporation or
        bylaws for a not for profit corporation in a way that changes quorum or voting requirements.

        Application of Not For Profit Corporations Chapter to Community Associations – Current Situation

        Currently, in the event of any conflict between the provisions of chapter 617, F.S., for not for profit
        corporations, and chapters regarding community associations (chapter 718, F.S., regarding
        condominiums, chapter 719, F.S., regarding cooperatives, chapter 720, F.S., regarding homeowners’
        associations, chapter 721, F.S., regarding timeshares, or chapter 723, F.S., regarding mobile home
        owners’ associations), the provisions of the applicable community association chapter applies where an
        exception is carved out.43

        Application of Not For Profit Corporations Chapter to Community Associations – Effect of the Bill

        The bill clarifies that chapter 617, F.S., applies to such community associations, except where there is a
        conflict, and then the chapters for community associations apply.

        Access to Records for Limited Liability Companies – Current Situation

        Currently, during regular business hours and at a reasonable location specified by the company, a
        member may inspect and copy:44
           • The company records; and
           • Full information regarding the activities, affairs, financial condition, and other circumstances of
               the company as is just and reasonable if the member:
                    • Seeks the information for a purpose reasonably related to the member’s interest as a
                       member; or
                    • Makes a demand in a record received by the company, describing with reasonable
                       particularity the information sought and the purpose for seeking the information, and if
                       the information sought is directly connected to the member’s purpose.

        Access to Records for Limited Liability Companies – Effect of the Bill

        The bill clarifies that in order for a member to access full information regarding the activities, affairs,
        financial condition, and other circumstances of the company, such member must both:
             Seek the information for a purpose reasonably related to the member’s interest as a member;
                and
             Make a demand in a record received by the company, describing with reasonable particularity
                the information sought and the purpose for seeking the information, and if the information
                sought is directly connected to the member’s purpose.

        The bill updates cross-references to correct scrivener’s errors.

        The bill takes effect upon becoming law.

    B. SECTION DIRECTORY:
        Section 1:        Amends s. 605.0410, F.S., relating to inspection rights of certain company records.
        Section 2:        Amends s. 607.1301, F.S., relating to appraisal rights; definition of “accrued interest.”
        Section 3:        Amends s. 607.1302, F.S., relating to shareholder appraisal rights.
        Section 4:        Amends s. 607.1303, F.S., relating to assertion of rights by nominees and beneficial
                          owners.
        Section 5:        Amends s. 607.1321, F.S., relating to notice of intent to demand payment.

43 S. 617.1703, F.S.
44 S. 605.0410(3), F.S.
STORAGE NAME: h0339d.COM                                                                                        PAGE: 8
DATE: 4/2/2021
       Section 6:     Amends s. 607.1322, F.S., relating to appraisal notice and form.
       Section 7:     Amends s. 607.1326, F.S., relating to prepayments to a shareholder.
       Section 8:     Amends s. 607.1330, F.S., relating to proceedings for demands for payment.
       Section 9:     Amends s. 607.1405, F.S., relating to effect of dissolution.
       Section 10:    Amends s. 617.0825, F.S., relating to certain property association committees.
       Section 11:    Amends s. 617.1703, F.S., relating to application of chapter to property associations.
       Section 12:    Provides an effective date.

                           II. FISCAL ANALYSIS & ECONOMIC IMPACT STATEMENT

   A. FISCAL IMPACT ON STATE GOVERNMENT:

       1. Revenues:
           None.

       2. Expenditures:
           None.

   B. FISCAL IMPACT ON LOCAL GOVERNMENTS:

       1. Revenues:
           None.

       2. Expenditures:
           None.

   C. DIRECT ECONOMIC IMPACT ON PRIVATE SECTOR:
       None.

   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

On March 8, 2021, the Regulatory Reform Subcommittee adopted one amendment and reported the bill
favorably as a committee substitute. The committee substitute provides that requirements to amend articles of
STORAGE NAME: h0339d.COM                                                                                 PAGE: 9
DATE: 4/2/2021
incorporation or bylaws for a not for profit corporation in a way that changes quorum or voting requirements are
not applicable to corporations that are condominium, cooperative, or homeowners’ associations.

This analysis is drafted to the committee substitute as passed by the Regulatory Reform Subcommittee.




STORAGE NAME: h0339d.COM                                                                                PAGE: 10
DATE: 4/2/2021
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




           CS/HB 339                                                                                            2021




    1                                         A bill to be entitled
    2              An act relating to business organizations; amending s.
    3              605.0410, F.S.; revising requirements relating to
    4              inspecting certain records of limited liability
    5              companies; amending s. 607.1301, F.S.; revising the
    6              definition of the term "accrued interest"; amending s.
    7              607.1302, F.S.; revising the circumstances under which
    8              shareholders are entitled to appraisal rights and
    9              certain payments; revising limitations relating to
10                 such rights and payments; revising applicability;
11                 amending s. 607.1303, F.S.; revising the circumstances
12                 in which certain shareholders may assert specified
13                 appraisal rights; amending s. 607.1321, F.S.; revising
14                 requirements for shareholders who wish to assert
15                 appraisal rights relating to specified corporate
16                 actions; amending s. 607.1322, F.S.; making a
17                 technical change; amending s. 607.1326, F.S.;
18                 entitling corporations to prepay a shareholder if the
19                 shareholder makes a demand for payment; specifying
20                 when interest is applicable to such prepayments;
21                 making technical changes; amending s. 607.1330, F.S.;
22                 revising requirements for proceedings relating to
23                 unsettled demands for payment; revising the
24                 eligibility requirements for shareholders entitled to
25                 the fair value of shares during court proceedings;

                                                         Page 1 of 19

        CODING: Words stricken are deletions; words underlined are additions.
                                                                                                            hb0339-01-c1
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 339                                                                                            2021




26              making technical and conforming changes; amending s.
27              607.1405, F.S.; revising the requirements for eligible
28              entities to use the name of a dissolved corporation;
29              amending s. 617.0725, F.S.; providing applicability;
30              amending ss. 617.0825 and 617.1703, F.S.; revising
31              applicability; providing an effective date.
32
33      Be It Enacted by the Legislature of the State of Florida:
34
35              Section 1.          Paragraph (b) of subsection (3) of section
36      605.0410, Florida Statutes, is amended to read:
37              605.0410          Records to be kept; rights of member, manager,
38      and person dissociated to information.—
39              (3)      In a manager-managed limited liability company, the
40      following rules apply:
41              (b)      During regular business hours and at a reasonable
42      location specified by the company, a member may inspect and
43      copy:
44              1.      The records described in subsection (1); and
45              2.      Full information regarding the activities, affairs,
46      financial condition, and other circumstances of the company as
47      is just and reasonable if:
48              a.      The member seeks the information for a purpose
49      reasonably related to the member's interest as a member; and or
50              b.      The member makes a demand in a record received by the

                                                      Page 2 of 19

     CODING: Words stricken are deletions; words underlined are additions.
                                                                                                         hb0339-01-c1
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 339                                                                                            2021




51      company, describing with reasonable particularity the
52      information sought and the purpose for seeking the information,
53      and if the information sought is directly connected to the
54      member's purpose.
55              Section 2.         Subsection (1) of section 607.1301, Florida
56      Statutes, is amended to read:
57              607.1301          Appraisal rights; definitions.—The following
58      definitions apply to ss. 607.1301-607.1340:
59              (1)     "Accrued interest" means interest from the date the
60      corporate action becomes effective until the date of payment, at
61      the rate agreed to by the corporation and the shareholder
62      asserting appraisal rights, or at the rate determined by the
63      court to be equitable, which rate may not be greater than the
64      rate of interest of interest determined for judgments pursuant
65      to s. 55.03; however, if the court finds that the shareholder
66      asserting appraisal rights acted arbitrarily or otherwise not in
67      good faith, no interest shall be allowed by the court,
68      determined as of the effective date of the corporate action.
69              Section 3.         Subsections (1) and (2) of section 607.1302,
70      Florida Statutes, are amended to read:
71              607.1302          Right of shareholders to appraisal.—
72              (1)     A shareholder of a domestic corporation is entitled to
73      appraisal rights, and to obtain payment of the fair value of
74      that shareholder's shares, in the event of any of the following
75      corporate actions:

                                                      Page 3 of 19

     CODING: Words stricken are deletions; words underlined are additions.
                                                                                                         hb0339-01-c1
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 339                                                                                            2021




76               (a)      Consummation of a domestication or a conversion of
77       such corporation pursuant to s. 607.11921 or s. 607.11932, as
78       applicable, if shareholder approval is required for the
79       domestication or the conversion;
80               (b)      Consummation of a merger to which such corporation is
81       a party:
82               1.      If shareholder approval is required for the merger
83       under s. 607.1103 or would be required but for s. 607.11035,
84       except that appraisal rights shall not be available to any
85       shareholder of the corporation with respect to shares of any
86       class or series that remains outstanding after consummation of
87       the merger where the terms of such class or series have not been
88       materially altered; or
89               2.      If such corporation is a subsidiary and the merger is
90       governed by s. 607.1104;
91               (c)      Consummation of a share exchange to which the
92       corporation is a party as the corporation whose shares will be
93       acquired, except that appraisal rights shall not be are not
94       available to any shareholder of the corporation with respect to
95       any class or series of shares of the corporation that is not
96       acquired in the share exchange;
97               (d)      Consummation of a disposition of assets pursuant to s.
98       607.1202 if the shareholder is entitled to vote on the
99       disposition, including a sale in dissolution, except that
100      appraisal rights shall not be available to any shareholder of

                                                       Page 4 of 19

      CODING: Words stricken are deletions; words underlined are additions.
                                                                                                          hb0339-01-c1
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 339                                                                                            2021




101      the corporation with respect to shares or any class or series
102      if:
103              1.      Under the terms of the corporate action approved by the
104      shareholders there is to be distributed to shareholders in cash
105      the corporation's net assets, in excess of a reasonable amount
106      reserved to meet claims of the type described in ss. 607.1406
107      and 607.1407, within 1 year after the shareholders' approval of
108      the action and in accordance with their respective interests
109      determined at the time of distribution; and
110              2.      The disposition of assets is not an interested
111      transaction;
112              (e)      An amendment of the articles of incorporation with
113      respect to a class or series of shares which reduces the number
114      of shares of a class or series owned by the shareholder to a
115      fraction of a share if the corporation has the obligation or the
116      right to repurchase the fractional share so created;
117              (f)      Any other merger, share exchange, disposition of
118      assets, or amendment to the articles of incorporation, in each
119      case to the extent provided as of the record date by the
120      articles of incorporation, bylaws, or a resolution of the board
121      of directors providing for appraisal rights, except that no
122      bylaw or board resolution providing for appraisal rights may be
123      amended or otherwise altered except by shareholder approval;
124              (g)     An amendment to the articles of incorporation or
125      bylaws of the corporation, the effect of which is to alter or

                                                       Page 5 of 19

      CODING: Words stricken are deletions; words underlined are additions.
                                                                                                          hb0339-01-c1
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 339                                                                                            2021




126      abolish voting or other rights with respect to such interest in
127      a manner that is adverse to the interest of such shareholder,
128      except as the right may be affected by the voting or other
129      rights of new shares then being authorized of a new class or
130      series of shares;
131              (h)     An amendment to the articles of incorporation or
132      bylaws of a corporation, the effect of which is to adversely
133      affect the interest of the shareholder by altering or abolishing
134      appraisal rights under this section;
135              (h)(i)       With regard to a class of shares prescribed in the
136      articles of incorporation in any corporation as to which that
137      particular class of shares was in existence prior to October 1,
138      2003, including any shares within that class subsequently
139      authorized by amendment, and for classes of shares authorized on
140      or after October 1, 2003, in any corporation with 100 or fewer
141      shareholders prior to October 1, 2003, including any shares
142      within that class subsequently authorized by amendment, any
143      amendment of the articles of incorporation if the shareholder is
144      entitled to vote on the amendment and if such amendment would
145      adversely affect such shareholder by:
146              1.      Altering or abolishing any preemptive rights attached
147      to any of his, her, or its shares;
148              2.      Altering or abolishing the voting rights pertaining to
149      any of his, her, or its shares, except as such rights may be
150      affected by the voting rights of new shares then being

                                                       Page 6 of 19

      CODING: Words stricken are deletions; words underlined are additions.
                                                                                                          hb0339-01-c1
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 339                                                                                            2021




151      authorized of any existing or new class or series of shares;
152              3.      Effecting an exchange, cancellation, or
153      reclassification of any of his, her, or its shares, when such
154      exchange, cancellation, or reclassification would alter or
155      abolish the shareholder's voting rights or alter his, her, or
156      its percentage of equity in the corporation, or effecting a
157      reduction or cancellation of accrued dividends or other
158      arrearages in respect to such shares;
159              4.      Reducing the stated redemption price of any of the
160      shareholder's redeemable shares, altering or abolishing any
161      provision relating to any sinking fund for the redemption or
162      purchase of any of his, her, or its shares, or making any of
163      his, her, or its shares subject to redemption when they are not
164      otherwise redeemable;
165              5.      Making noncumulative, in whole or in part, dividends of
166      any of the shareholder's preferred shares which had theretofore
167      been cumulative;
168              6.      Reducing the stated dividend preference of any of the
169      shareholder's preferred shares; or
170              7.      Reducing any stated preferential amount payable on any
171      of the shareholder's preferred shares upon voluntary or
172      involuntary liquidation;
173              (i)(j)       An amendment of the articles of incorporation of a
174      social purpose corporation to which s. 607.504 or s. 607.505
175      applies;

                                                       Page 7 of 19

      CODING: Words stricken are deletions; words underlined are additions.
                                                                                                          hb0339-01-c1
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 339                                                                                            2021




176              (j)(k)       An amendment of the articles of incorporation of a
177      benefit corporation to which s. 607.604 or s. 607.605 applies;
178              (k)(l)       A merger, domestication, conversion, or share
179      exchange of a social purpose corporation to which s. 607.504
180      applies; or
181              (l)(m)       A merger, domestication, conversion, or share
182      exchange of a benefit corporation to which s. 607.604 applies.
183              (2)      Notwithstanding subsection (1), the availability of
184      appraisal rights under paragraphs (1)(a), (b), (c), (d), and
185      (e), (f), and (h) shall be limited in accordance with the
186      following provisions:
187              (a)      Appraisal rights shall not be available for the
188      holders of shares of any class or series of shares which is:
189              1.      A covered security under s. 18(b)(1)(A) or (B) of the
190      Securities Act of 1933;
191              2.      Not a covered security, but traded in an organized
192      market (or subject to a comparable trading process) and has at
193      least 2,000 shareholders and the outstanding shares of such
194      class or series have a market value of at least $20 million,
195      exclusive of the value of outstanding shares held by the
196      corporation's subsidiaries, by the corporation's senior
197      executives, by the corporation's directors, and by the
198      corporation's beneficial shareholders and voting trust
199      beneficial owners owning more than 10 percent of the outstanding
200      shares; or

                                                       Page 8 of 19

      CODING: Words stricken are deletions; words underlined are additions.
                                                                                                          hb0339-01-c1
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 339                                                                                            2021




201              3.      Issued by an open end management investment company
202      registered with the Securities and Exchange Commission under the
203      Investment Company Act of 1940 and which may be redeemed at the
204      option of the holder at net asset value.
205              (b)     The applicability of paragraph (a) shall be determined
206      as of:
207              1.      The record date fixed to determine the shareholders
208      entitled to receive notice of the meeting of shareholders to act
209      upon the corporate action requiring appraisal rights, the record
210      date fixed to determine the shareholders entitled to sign a
211      written consent approving the corporate action requiring
212      appraisal rights, or, in the case of an offer made pursuant to
213      s. 607.11035, the date of such offer; or
214              2.      If there will be no meeting of shareholders, no written
215      consent approving the corporate action, and no offer is made
216      pursuant to s. 607.11035, the close of business on the day
217      before the consummation of the corporate action or the effective
218      date of the amendment of the articles, as applicable.
219              (c)      Paragraph (a) is not applicable and appraisal rights
220      shall be available pursuant to subsection (1) for the holders of
221      any class or series of shares where the corporate action is an
222      interested transaction.
223              (d)      For the purposes of subparagraph (a)2., a comparable
224      trading process exists if:
225              1.      The market price of the corporation's shares is

                                                       Page 9 of 19

      CODING: Words stricken are deletions; words underlined are additions.
                                                                                                          hb0339-01-c1
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 339                                                                                            2021




226      determined at least quarterly based on an independent valuation
227      and by following a formalized process that is designed to
228      determine a value for the corporation's shares that is
229      comparable to the value of comparable publicly traded companies;
230      and
231              2.      The corporation repurchases the shares at the price set
232      by its board of directors based upon the independent valuation
233      and subject to certain terms and conditions established by the
234      corporation and provides the corporation's shareholders with a
235      trading market comparable to that typically available had the
236      corporation's shares been traded in an organized market.
237              Section 4.          Subsection (1) of section 607.1303, Florida
238      Statutes, is amended, and paragraph (c) is added to subsection
239      (2) of that section, to read:
240              607.1303          Assertion of rights by nominees and beneficial
241      owners.—
242              (1)      A record shareholder may assert appraisal rights as to
243      fewer than all the shares registered in the record shareholder's
244      name but owned by a beneficial shareholder or a voting trust
245      beneficial owner only if:
246              (a)     The record shareholder objects with respect to all
247      shares of the class or series owned by the beneficial
248      shareholder or the voting trust beneficial owner;
249              (b)      The particular beneficial shareholder or voting trust
250      beneficial owner acquired all such shares before the record date

                                                      Page 10 of 19

      CODING: Words stricken are deletions; words underlined are additions.
                                                                                                          hb0339-01-c1
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 339                                                                                            2021




251      established under s. 607.1321 in connection with the applicable
252      corporate action; and
253              (c)     The record shareholder and notifies the corporation in
254      writing of its the name and address (if the record shareholder
255      beneficially owns the shares as to which appraisal rights are
256      being asserted) or notifies the corporation in writing of the
257      name and address of the particular of each beneficial
258      shareholder or voting trust beneficial owner on whose behalf
259      appraisal rights are being asserted.
260
261      The rights of a record shareholder who asserts appraisal rights
262      for only part of the shares held of record in the record
263      shareholder's name under this subsection shall be determined as
264      if the shares as to which the record shareholder objects and the
265      record shareholder's other shares were registered in the names
266      of different record shareholders.
267              (2)     A beneficial shareholder and a voting trust beneficial
268      owner may assert appraisal rights as to shares of any class or
269      series held on behalf of the shareholder only if such
270      shareholder:
271              (c)     Acquired all shares of the class or series before the
272      record date established under s. 607.1321 in connection with the
273      applicable corporate action.
274              Section 5.         Subsections (1), (2), and (3) of section
275      607.1321, Florida Statutes, are amended to read:

                                                      Page 11 of 19

      CODING: Words stricken are deletions; words underlined are additions.
                                                                                                          hb0339-01-c1
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 339                                                                                            2021




276              607.1321          Notice of intent to demand payment.—
277              (1)     If a proposed corporate action requiring appraisal
278      rights under s. 607.1302 is submitted to a vote at a
279      shareholders' meeting, a shareholder who wishes to assert
280      appraisal rights with respect to any class or series of shares:
281              (a)     Must have beneficially owned the shares of such class
282      or series as of the record date for the shareholders' meeting at
283      which the proposed corporate action is to be submitted to a
284      vote;
285              (b)     Must deliver to the corporation before the vote is
286      taken written notice of the shareholder's intent, if the
287      proposed corporate action is effectuated, to demand payment for
288      all shares of such class or series beneficially owned by the
289      shareholder as of the record date for the shareholders' meeting
290      at which the proposed corporate action is to be submitted to a
291      vote if the proposed corporate action is effectuated; and
292              (c)(b)       Must not vote, or cause or permit to be voted, any
293      shares of such class or series in favor of the proposed
294      corporate action.
295              (2)     If a proposed corporate action requiring appraisal
296      rights under s. 607.1302 is to be approved by written consent, a
297      shareholder who wishes to assert appraisal rights with respect
298      to any class or series of shares:
299              (a)     Must have beneficially owned the shares of such class
300      or series as of the record date established for determining who

                                                      Page 12 of 19

      CODING: Words stricken are deletions; words underlined are additions.
                                                                                                          hb0339-01-c1
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 339                                                                                            2021




301      is entitled to sign a written consent;
302              (b)     Must assert such appraisal rights for all shares of
303      such class or series beneficially owned by the shareholder as of
304      the record date for determining who is entitled to sign the
305      written consent; and
306              (c)     Must not sign a consent in favor of the proposed
307      corporate action with respect to that class or series of shares.
308              (3)     If a proposed corporate action specified in s.
309      607.1302(1) does not require shareholder approval pursuant to s.
310      607.11035, a shareholder who wishes to assert appraisal rights
311      with respect to any class or series of shares:
312              (a)     Must have beneficially owned the shares of such class
313      or series as of the date the offer to purchase is made pursuant
314      to s. 607.11035;
315              (b)     Must deliver to the corporation before the shares are
316      purchased pursuant to the offer a written notice of the
317      shareholder's intent to demand payment if the proposed corporate
318      action is effected for all shares of such class or series
319      beneficially owned by the shareholder as of the date the offer
320      to purchase is made pursuant to s. 607.11035; and
321              (c)(b)       Must not tender, or cause or permit to be tendered,
322      any shares of such class or series in response to such offer.
323              Section 6.         Paragraph (a) of subsection (2) of section
324      607.1322, Florida Statutes, is amended to read:
325              607.1322          Appraisal notice and form.—

                                                      Page 13 of 19

      CODING: Words stricken are deletions; words underlined are additions.
                                                                                                          hb0339-01-c1
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 339                                                                                            2021




326              (2)      The appraisal notice must be delivered no earlier than
327      the date the corporate action became effective, and no later
328      than 10 days after such date, and must:
329              (a)      Supply a form that specifies the date that the
330      corporate action became effective and that provides for the
331      shareholder to state:
332              1.      The shareholder's name and address.
333              2.      The number, classes, and series of shares as to which
334      the shareholder asserts appraisal rights.
335              3.      That the shareholder did not vote for or consent to the
336      transaction.
337              4.      Whether the shareholder accepts the corporation's offer
338      as stated in subparagraph (b)4.
339              5.      If the offer is not accepted, the shareholder's
340      estimated fair value of the shares and a demand for payment of
341      the shareholder's estimated value plus accrued interest, if and
342      to the extent applicable.
343              Section 7.          Section 607.1326, Florida Statutes, is amended
344      to read:
345              607.1326          Procedure if shareholder is dissatisfied with
346      offer.—
347              (1)      A shareholder who is dissatisfied with the
348      corporation's offer as set forth pursuant to s. 607.1322(2)(b)4.
349      must notify the corporation on the form provided pursuant to s.
350      607.1322(1) of that shareholder's estimate of the fair value of

                                                      Page 14 of 19

      CODING: Words stricken are deletions; words underlined are additions.
                                                                                                          hb0339-01-c1
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 339                                                                                            2021




351      the shares and demand payment of that estimate plus accrued
352      interest, if and to the extent applicable.
353              (2)     A shareholder who fails to notify the corporation in
354      writing of that shareholder's demand to be paid the
355      shareholder's stated estimate of the fair value plus accrued
356      interest, if and to the extent applicable, under subsection (1)
357      within the timeframe set forth in s. 607.1322(2)(b)2. waives the
358      right to demand payment under this section and shall be entitled
359      only to the payment offered by the corporation pursuant to s.
360      607.1322(2)(b)4.
361              (3)     With respect to a shareholder who properly makes
362      demand for payment pursuant to subsection (1), at any time after
363      the shareholder makes such demand, including during a court
364      proceeding under s. 607.1330, the corporation shall have the
365      right to prepay to the shareholder all or any portion of the
366      amount that the corporation determines to be due under s.
367      607.1322(2)(b)3. and the shareholder shall be obligated to
368      accept such prepayment.
369              (a)     If such prepayment is made within 90 days after the
370      earlier of the date on which the appraisal notice is provided by
371      the corporation under s. 607.1322(1) or the deadline date by
372      which the appraisal notice is required to be provided by the
373      corporation under s. 607.1322(2), accrued interest will be
374      payable, if at all, to the shareholder entitled to appraisal
375      rights, calculated and accrued from the date on which the

                                                      Page 15 of 19

      CODING: Words stricken are deletions; words underlined are additions.
                                                                                                          hb0339-01-c1
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 339                                                                                            2021




376      corporate action became effective and only on amounts that are
377      determined to be due to the shareholder and are above the amount
378      so prepaid. Accrued interest will not be payable to the
379      shareholder entitled to appraisal rights on the prepayment
380      previously made to the shareholder by the corporation pursuant
381      to this paragraph.
382              (b)     If such prepayment is made more than 90 days after the
383      earlier of the date on which the appraisal notice is provided by
384      the corporation under s. 607.1322(1) or the deadline date by
385      which the appraisal notice is required to be provided by the
386      corporation under s. 607.1322(2), the prepayment must include
387      accrued interest on the amount of the prepayment, calculated at
388      the rate of interest determined for judgments pursuant to s.
389      55.03 and calculated and accrued from the date that the
390      corporate action became effective through the date of the
391      prepayment previously made to the shareholder by the corporation
392      pursuant to this paragraph. In addition, accrued interest will
393      be payable to the shareholder entitled to appraisal rights on
394      such amounts, if any, determined to be due to the shareholder in
395      excess of the prepaid amount, calculated and accrued from the
396      date on which the corporate action became effective.
397              Section 8.         Subsections (1) and (5) of section 607.1330,
398      Florida Statutes, are amended to read:
399              607.1330          Court action.—
400              (1)     If a shareholder makes demand for payment under s.

                                                      Page 16 of 19

      CODING: Words stricken are deletions; words underlined are additions.
                                                                                                          hb0339-01-c1
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 339                                                                                            2021




401      607.1326 which remains unsettled, the corporation shall commence
402      a proceeding within 60 days after receiving the payment demand
403      and petition the court to determine the fair value of the shares
404      and accrued interest, if and to the extent applicable,
405      calculated and accrued from the date the corporate action became
406      effective and taking into account the amount of any prepayment
407      previously made to the shareholder by the corporation pursuant
408      to s. 607.1326(3) from the date of the corporate action. If the
409      corporation does not commence the proceeding within the 60-day
410      period, any shareholder who has made a demand pursuant to s.
411      607.1326 may commence the proceeding in the name of the
412      corporation.
413              (5)     Each shareholder entitled to appraisal rights who is
414      made a party to the proceeding is entitled to judgment for the
415      amount of the fair value of such shareholder's shares as found
416      by the court, plus accrued interest, if and to the extent
417      applicable and as found by the court, taking into account the
418      amount of any prepayment previously made to the shareholder by
419      the corporation pursuant to s. 607.1326(3).
420              Section 9.         Subsection (5) of section 607.1405, Florida
421      Statutes, is amended to read:
422              607.1405          Effect of dissolution.—
423              (5)     Except as provided in s. 607.1422(4), the name of a
424      dissolved corporation is not available for assumption or use by
425      another eligible entity until 120 days 1 year after the

                                                      Page 17 of 19

      CODING: Words stricken are deletions; words underlined are additions.
                                                                                                          hb0339-01-c1
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 339                                                                                            2021




426      effective date of dissolution unless the dissolved corporation
427      provides the department with a record, signed as required by s.
428      607.0120, permitting the immediate assumption or use of the name
429      by another eligible entity.
430              Section 10.            Section 617.0725, Florida Statutes, is amended
431      to read:
432              617.0725          Quorum.—An amendment to the articles of
433      incorporation or the bylaws which adds, changes, or deletes a
434      greater or lesser quorum or voting requirement must meet the
435      same quorum or voting requirement and be adopted by the same
436      vote and voting groups required to take action under the quorum
437      and voting requirements then in effect or proposed to be
438      adopted, whichever is greater. This section does not apply to
439      any corporation that is an association, as defined in s.
440      720.301, or a corporation regulated under chapter 718 or chapter
441      719.
442              Section 11.            Subsection (9) of section 617.0825, Florida
443      Statutes, is amended to read:
444              617.0825          Board committees and advisory committees.—
445              (9)     This section does not apply to a committee established
446      under chapter 718, chapter 719, or chapter 720 to perform the
447      functions set forth in s. 718.303(3), s. 719.303(3), s.
448      720.305(2), s. 720.303(2), or s. 720.3035(1), or s. 720.405,
449      respectively.
450              Section 12.            Section 617.1703, Florida Statutes, is amended

                                                      Page 18 of 19

      CODING: Words stricken are deletions; words underlined are additions.
                                                                                                          hb0339-01-c1
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 339                                                                                            2021




451      to read:
452               617.1703         Application of chapter.—
453               (1)(a)      This chapter is applicable to a corporation that is
454      an association as defined in and regulated by any of chapter 718
455      regarding condominiums, chapter 719 regarding cooperatives,
456      chapter 720 regarding homeowners' associations, chapter 721
457      regarding timeshares, or chapter 723 regarding mobile
458      homeowners' associations, except:
459               1.      For In the event of any conflict between the provisions
460      of this chapter and chapter 718 regarding condominiums, chapter
461      719 regarding cooperatives, chapter 720 regarding homeowners'
462      associations, chapter 721 regarding timeshares, or chapter 723;
463      or
464               2.      As otherwise provided for in chapter 718, chapter 719,
465      chapter 720, chapter 721, or chapter 723.
466               (b)      If subparagraph (a)1. or subparagraph (a)2. applies
467      regarding mobile home owners' associations, the applicable
468      provisions of such other respective chapters shall apply.
469               (2)     The provisions of ss. 617.0605-617.0608 do not apply
470      to corporations regulated by any of the foregoing chapters or to
471      any other corporation where membership in the corporation is
472      required pursuant to a document recorded in the county property
473      records.
474               Section 13.           This act shall take effect upon becoming a
475      law.

                                                      Page 19 of 19

      CODING: Words stricken are deletions; words underlined are additions.
                                                                                                          hb0339-01-c1
CS/HB 415
                                    HOUSE OF REPRESENTATIVES STAFF ANALYSIS
BILL #:     CS/HB 415 Fire Department Communications
SPONSOR(S): Insurance & Banking Subcommittee, Botana
TIED BILLS:       IDEN./SIM. BILLS: CS/SB 360

  REFERENCE                                                        ACTION                   ANALYST                STAFF DIRECTOR or
                                                                                                                   BUDGET/POLICY CHIEF

  1) Insurance & Banking Subcommittee                              17 Y, 0 N, As CS         Rowley                 Luczynski

  2) Commerce Committee                                                                     Rowley                 Hamon

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

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

The bill extends the deadline for existing high-rise buildings to comply with a local authority’s minimum radio
signal strength requirements by five years to January 1, 2027. The deadline for existing, non-compliant high-
rise buildings to apply for permits to install required devices to meet the standards is extended by five years to
December 31, 2024. For high-rise apartment buildings, the deadline to comply with a local authority’s minimum
radio signal strength requirements is extended by five years to January 1, 2030. The deadline for existing, non-
compliant high-rise apartment buildings to apply for permits to install required devices to meet the standards is
extended by five years to December 31, 2027.

The bill also provides that two-way radio communication enhancement systems may be used to comply with a
local authority’s minimum radio signal strength requirements, except that two-way radio communication
enhancement systems and similar systems are not required in apartments or buildings that are four stories or
less in height. The bill clarifies that installation of a two-way radio communication enhancement system to meet
the minimum radio signal strength requirements is not an unlawful act under s. 843.16, F.S.

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

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




This document does not reflect the intent or official position of the bill sponsor or House of Representatives .
STORAGE NAME: h0415b.COM
DATE: 4/2/2021
                                                  FULL ANALYSIS

                                           I. SUBSTANTIVE ANALYSIS

    A. EFFECT OF PROPOSED CHANGES:

        State Fire Prevention – State Fire Marshal

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

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

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

        Radio Signal Strength for Fire Department Communications

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

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

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

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

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

Review, https://www.nfpa.org/-/media/Files/News-and-Research/Fire-statistics-and-reports/Executive-
STORAGE NAME: h0415b.COM                                                                                        PAGE: 2
DATE: 4/2/2021
        Two-way radio communication enhancement systems are devices installed after a building is
        constructed that accept and then amplify radio signals used by first responders. A radio frequency site
        survey may be conducted in a building to determine areas where radio signal strength drops due to
        materials used in construction, such as thick walls, metal construction, underground structures, and
        low-emissivity glass windows. The generally desired effect is that radio signal strength at ground level,
        where a fire rescue operation might be based, is equal to the radio signal strength in all locations
        throughout the building, to ensure consistent communication. Several devices are available to boost
        signal strength to meet required radio signal strength. These include bi-directional amplifiers and
        networks of indoor antennae, referred to collectively as a distributed antenna system.11

        Florida Fire Code Minimum Radio Signal Strength

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

        Minimum Radio Signal Strength for High-Rise Buildings

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

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



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

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

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

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

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

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

Official of Broward County (Apr. 18, 2018), https://www.doah.state.fl.us/FLAID/DFS/2018/DFS_217787-17-
DS_12042019_013047.pdf (last visited Mar. 12, 2021).
STORAGE NAME: h0415b.COM                                                                                        PAGE: 3
DATE: 4/2/2021
       Radio Equipment Receiving Law Enforcement Frequencies

       Section 843.16, F.S. makes it unlawful to install or transport, except in an emergency vehicle, crime
       watch vehicle, or certain specified places, any frequency modulation radio receiving equipment so
       adjusted or tuned as to receive messages or signals on frequencies assigned by the Federal
       Communications Commission to law enforcement or fire rescue personnel.

       Effect of the Bill

       The bill extends the deadline for existing high-rise buildings to comply with a local authority’s minimum
       radio signal strength requirements by five years to January 1, 2027. The deadline for existing, non-
       compliant high-rise buildings to apply for permits to install required devices to meet the standards is
       extended by five years to December 31, 2024. For high-rise apartment buildings, the deadline to
       comply with a local authority’s minimum radio signal strength requirements is extended by five years to
       January 1, 2030. The deadline for existing, non-compliant high-rise apartment buildings to apply for
       permits to install required devices to meet the standards is extended by five years to December 31,
       2027.

       The bill also provides that two-way radio communication enhancement systems may be used to comply
       with a local authority’s minimum radio signal strength requirements, except that two-way radio
       communication enhancement systems and similar systems are not required in apartments or buildings
       that are four stories or less in height. The bill clarifies that installation of a two-way radio communication
       enhancement system to meet the minimum radio signal strength requirements is not an unlawful act
       under s. 843.16, F.S.


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

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

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


                            II. FISCAL ANALYSIS & ECONOMIC IMPACT STATEMENT

   A. FISCAL IMPACT ON STATE GOVERNMENT:

       1. Revenues:
           None.

       2. Expenditures:
           None.



   B. FISCAL IMPACT ON LOCAL GOVERNMENTS:

       1. Revenues:
           None.

       2. Expenditures:
           None.

STORAGE NAME: h0415b.COM                                                                                      PAGE: 4
DATE: 4/2/2021
   C. DIRECT ECONOMIC IMPACT ON PRIVATE SECTOR:
       The bill may positively impact building owners by extending the deadlines for compliance.

   D. FISCAL COMMENTS:
       None.

                                               III. COMMENTS

   A. CONSTITUTIONAL ISSUES:

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

       2. Other:
         None.

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

   C. DRAFTING ISSUES OR OTHER COMMENTS:
       None.

                           IV. AMENDMENTS/ COMMITTEE SUBSTITUTE CHANGES
On March 17, 2021, the Insurance & Banking Subcommittee considered the bill, adopted one amendment, and
reported the bill favorably as a committee substitute. The amendment restores the term “high-rise” in s.
633.202(18), F.S., maintaining the requirement that local fire authorities determine minimum radio signal
strength for fire department communications for all new and existing high-rise buildings. The amendment also
provides that two-way radio communication enhancement systems and similar systems shall not be required in
buildings that are four stories or less in height.

The analysis is drafted to the committee substitute as passed by the Insurance & Banking Subcommittee.




STORAGE NAME: h0415b.COM                                                                                 PAGE: 5
DATE: 4/2/2021
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




           CS/HB 415                                                                                            2021




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

                                                         Page 1 of 3

        CODING: Words stricken are deletions; words underlined are additions.
                                                                                                            hb0415-01-c1
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 415                                                                                            2021




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

                                                      Page 2 of 3

     CODING: Words stricken are deletions; words underlined are additions.
                                                                                                         hb0415-01-c1
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 415                                                                                            2021




51              (f)     The installation of a two-way radio communication
52      enhancement system to comply with the requirements of s.
53      633.202(18).
54              Section 3.         This act shall take effect July 1, 2021.




                                                      Page 3 of 3

     CODING: Words stricken are deletions; words underlined are additions.
                                                                                                         hb0415-01-c1
                                COMMERCE COMMITTEE

                               CS/HB 415 by Rep. Botana
                     Relating to Fire Department Communications

                                 AMENDMENT SUMMARY
                                     April 6, 2021

Amendment 1 by Rep. Botana (lines 20-44):

The amendment shortens the extension of the deadline for existing high-rise buildings to comply
with a local authority’s minimum radio signal strength requirements by two years to January 1,
2025.
                                              COMMITTEE/SUBCOMMITTEE AMENDMENT
                                                    Bill No. CS/HB 415   (2021)
       Amendment No. 1




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


1      Committee/Subcommittee hearing bill:       Commerce Committee
2      Representative Botana offered the following:
3
 4          Amendment
 5          Remove lines 20-44 and insert:
 6          Section 1.    Subsection (18) of section 633.202, Florida
 7     Statutes, is amended to read:
 8          633.202     Florida Fire Prevention Code.—
 9          (18)   The authority having jurisdiction shall determine the
10     minimum radio signal strength for fire department communications
11     in all new high-rise and existing high-rise buildings. Two-way
12     radio communication enhancement systems may be used to comply
13     with minimum radio signal strength requirements. However, two-
14     way radio communication enhancement systems and similar systems
15     shall not be required in apartments or buildings that are four
16     stories or less in height. Existing buildings are not required
     830317 - h0415-line20.docx
      Published On: 4/5/2021 5:52:08 PM
                                     Page 1 of 2
                                          COMMITTEE/SUBCOMMITTEE AMENDMENT
                                                  Bill No. CS/HB 415   (2021)
       Amendment No. 1


17     to comply with minimum radio strength for fire department
18     communications and two-way radio system enhancement
19     communications as required by the Florida Fire Prevention Code
20     until January 1, 2025 2022. However, by December 31, 2024 2019,
21     an existing building that is not in compliance with the
22     requirements for minimum radio strength for fire department
23     communications must apply for an appropriate permit for the
24     required installation with the local government agency having
25     jurisdiction and must demonstrate that the building will become
26     compliant by January 1, 2027 2022. Existing apartment buildings
27     are not required to comply until January 1, 2030 2025. However,
28     existing apartment buildings are required to apply for the
29     appropriate permit for the required communications installation
30     by December 31, 2027 2022.




     830317 - h0415-line20.docx
      Published On: 4/5/2021 5:52:08 PM
                                    Page 2 of 2
HB 483
                                    HOUSE OF REPRESENTATIVES STAFF ANALYSIS
BILL #:     HB 483 Electronic Legal Documents
SPONSOR(S): Altman
TIED BILLS:       IDEN./SIM. BILLS: SB 848

    REFERENCE                                                        ACTION                   ANALYST              STAFF DIRECTOR or
                                                                                                                   BUDGET/POLICY CHIEF

    1) Civil Justice & Property Rights Subcommittee                  16 Y, 0 N                Brascomb             Jones

    2) Commerce Committee                                                                     Wright               Hamon

    3) Judiciary Committee

                                                         SUMMARY ANALYSIS
Florida law considers many documents to be of such importance that they must be signed before a notary
public. A notary public's function is to authenticate signatures and administer oaths on these documents,
thereby preventing fraud. A notary public is responsible for determining that the person signing is who he or
she claims to be. A notary public is authorized to perform the following six duties:
     Administer oaths and affirmations;
     Take acknowledgments;
     Attest to photocopies of certain documents;
     Solemnize marriage;
     Verify vehicle identification numbers; and
     Certify the contents of a safe-deposit box.

Current law allows a notary public to perform notarial acts using electronic means in which the principal
appears using audio-video communication technology as long as certain procedures, standards, and minimum
technology requirements are met.

A will is a legal document used to designate the distribution of a person's assets upon death. To be valid, a will
must follow certain formalities with respect to its creation, execution, preservation, revocation, and filing. An
electronic will is executed, modified, and revoked in a similar manner as a paper will.

HB 483 makes several changes relating to online notarization and electronic wills to clarify that:
    Online notarization procedures still apply in circumstances where an electronic document requires
      witnesses but not notarization.
    An online notary public’s supervision of an electronic record’s witnessing is a notarial act.
    The requirements for supervising of witnessing of electronic records in s. 117.285(5), F.S., are:
          o Applicable only when fewer than two witnesses are in the physical presence of the principal who
             is executing one of the enumerated electronic estate planning documents;
          o Not limited to “a waiver of spousal rights;”
          o Applicable to agreements or waivers of rights under s. 732.701, F.S.; and
          o Applicable only to the testamentary aspects of a revocable trust.

The bill also amends the definition of “online notarization” to include the appearance of witnesses by audio-
video communication technology. The bill requires an online notary public to verify the principal’s identity when
an online notary public is supervising the execution and witnessing of an electronic record.

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

The bill is effective upon becoming law.




This document does not reflect the intent or official position of the bill sponsor or House of Representatives .
STORAGE NAME: h0483b.COM
DATE: 4/2/2021
                                                         FULL ANALYSIS

                                                 I. SUBSTANTIVE ANALYSIS

    A. EFFECT OF PROPOSED CHANGES:
         Background

         Notary Public

         The law considers many documents to be of such importance that they must be signed in the presence
         of a notary public. The notary's function is to authenticate signatures and administer oaths on these
         documents, thereby preventing fraud. A notary public is responsible for determining that the person
         signing is who he or she claims to be.1 A notary is authorized to perform the following six duties:
              Administer oaths and affirmations;
              Take acknowledgments;
              Attest to photocopies of certain documents;
              Solemnize marriage;
              Verify vehicle identification numbers; and
              Certify the contents of a safe-deposit box.2

         A notary must be at least 18 years old, maintain legal residence in Florida, and possess the ability to
         read, write, and understand English. The notary public application must be signed and sworn by the
         applicant and accompanied by the fee and proof of a bond3 required by law. The application for
         appointment must include a $25 fee, a $10 commission fee,4 and a $4 surcharge which is used for
         notary education and assistance.5 The bond must be for at least $7,500, payable to any individual
         harmed as a result of a breach of duty by the notary.6

         A notary applicant must also take an oath following the application process. As part of the oath, the
         applicant must swear that he or she has read the statutes relating to notaries public and knows a notary
         public’s responsibilities, limitations, and powers.7 Once appointed, a notary may serve for four years.
         No person may be automatically reappointed as a notary; the application process must be completed
         regardless of whether an applicant has previously served as a notary.8

         When notarizing a signature, a notary public must complete a notarial certificate for an oath,
         affirmation, or an acknowledgment.9 Current law provides notaries with a form certificate to use in
         substantially the same form.10 The certificate of acknowledgement must contain the following items:
               The venue stating the location of the notarization;
               The type of notarial act performed;
               A statement that the signer personally appeared physically before the notary public or by online
                 notarization at the time of the notarization;
               The exact date of the notarial act;
               The name of the person whose signature is being notarized;

1 National Notary Association, Inc., What is a Notary Public? https://www.nationalnotary.org/knowledge-center/about-notaries/what-is-a-

notary-public (last visited Mar. 30, 2021).
2 Florida Governor’s Office, Duties of a Notary Public (Dec. 13, 2016), https://www.flgov.com/wp-

content/uploads/Notary_Reference_Manual_12.13.16.pdf (last visited Mar. 30, 2021).
3 A notary bond is a three-party obligation. A bonding company guarantees to the Florida Department State that it will pay, on behalf of

a commissioned Florida notary, any losses incurred by the public up to $7,500 during the notary’s commission term. The bonding
company will then demand reimbursement from the notary in the event of such paid losses. American Association of Notaries, Florida
Notary Bond, https://www.floridanotaries.com/florida-notary-
bond#:~:text=A%20notary%20bond%20is%20a,during%20the%20notary's%20commission%20term (last visited Mar. 30, 2021).
4 A $10 fee is prescribed for each Governor issued commission of an elected officer or a notary public. S. 113.01, F.S.
5 S. 117.01, F.S.
6 Id.
7 Id.
8 Id.
9 S. 117.05(4), F.S.
10 S. 117.05(12), F.S.

STORAGE NAME: h0483b.COM                                                                                                         PAGE: 2
DATE: 4/2/2021
                 The type of identification the notary public is relying upon;
                 The notary’s official signature;
                 The notary’s name, typed, printed, or stamped below the signature; and
                 The notary’s official seal11 affixed below or to either side of the notary’s signature.12

                  Electronic Notarization and Electronic Records

         Any document requiring notarization may be notarized electronically. When notarizing a document
         electronically, a notary public must use an electronic signature that is:
              Unique to the notary public;
              Capable of independent verification;
              Retained under the notary public's sole control; and
              Attached to or logically associated with the electronic document so that any subsequent
                alteration to the electronic document displays alteration evidence.13

         When a signature is required to be accompanied by a notary public seal, the requirement is satisfied
         when the electronic signature of the notary public contains the minimum information specified.14 An
         electronic signature is any letters, characters, or symbols, manifested by electronic means, executed or
         adopted by a party with an intent to authenticate a writing. A writing is electronically signed if an
         electronic signature is logically associated with such writing.

         If a law requires a signature or record to be notarized, acknowledged, verified, or made under oath, the
         requirement is satisfied if the electronic signature of the person authorized to perform those acts,
         together with all other information required to be included, is attached to or logically associated with the
         signature or record.15 In performing an electronic notarial act, a notary must reasonably ensure the
         security, reliability, and uniformity of electronic notarizations. To this end, the notary may use an
         authentication procedure such as a password, token, card, or biometric to protect access to the
         notary's electronic signature or the means for affixing the signature.16

         Remote Notarization

         A notary public may complete a registration as an online notary public with the Florida Department of
         State (DOS) if he or she:
             Holds a current:
                    o Commission as a notary public;
                    o Appointment as a civil-law notary;17 or
                    o Appointment as a commissioner of deeds;18
             Submits a copy of such commission or proof of such appointment with the registration;
             Certifies that the notary public, civil-law notary, or commissioner of deeds registering as an
                online notary public has completed a course covering the online notary public duties,
                obligations, and technology requirements;
             Pays a notary public registration fee;19




11 The notary seal must be a rubber stamp and include the words "Notary Public—State of Florida"; it must also include the name of the

notary public, the date of expiration of the notary’s commission, and the commission number.
12 S. 117.05(12), F.S.
13 S. 117.021, F.S.
14 Id.
15 S. 668.50(11)(a), F.S.
16 Id.
17 A civil-law notary is a person who is a member in good standing of The Florida Bar, who has practiced law for at least 5 years, and

who is appointed by the Secretary of State as a civil-law notary. S. 118.10, F.S.
18 A commissioner of deeds is a person appointed by the Governor to take acknowledgments, proofs of execution, or oaths in any

foreign country, in international waters, or in any territory of the United States outside the 50 states. S. 721.97, F.S.
19 S 113.01, F.S.

STORAGE NAME: h0483b.COM                                                                                                         PAGE: 3
DATE: 4/2/2021
                  Identifies the Remote Online Notary (RON) service provider20 whose audio-video
                   communication and identity proofing technologies the registrant intends to use for online
                   notarizations, and confirms that such technology and processes satisfy statutory requirements;
                  Provides evidence that the registrant has obtained a $25,000 bond, payable to any individual
                   harmed as a result of the registrant’s breach of duty as an online notary public; and
                  Provides evidence that the registrant acting in his or her capacity as an online notary public is
                   covered by a minimum $25,000 errors and omissions insurance policy.21

         An online notary public may perform any function as an online notarization authorized under ch. 117,
         F.S., excluding solemnizing matrimony rites.22 If a notarization requires a principal23 to appear before
         the online notary public, the principal may appear by audio-video communication technology.

         An online notary public can perform an online notarization, regardless of the physical location of the
         principal at the time of the notarial act, as long as the notary public is physically located in Florida while
         performing the online notarization.24

         An online notary public is subject to both the general notary and electronic notary provisions of law.25
         An online notary may charge up to $25 for notarizing a document online, in addition to fees allowable
         for in-person notarial acts.26

                  Technology Standards for Online Notarization

         Florida law establishes minimum requirements for online notarization technology standards:
              Identity proofing:27 The security characteristics, at a minimum, must present the principal with
                 five or more questions with a minimum of five possible answer choices per question. Each
                 question must be:
                     o Drawn from a third-party provider of public and proprietary data sources;
                     o Identifiable to the principal; and
                     o Subjected to a two-minute time constraint, with the principal answering at least 80
                         percent correct.28
              Credential analysis:29 An online notary must use commercially available credential analysis
                 automated software or a hardware process that:
                     o Is consistent with sound commercial practices;
                     o Aids the notary public in verifying the authenticity of the credential to ensure it is not
                         fraudulent or inappropriately modified; and
                     o Uses information held by the issuing or authoritative agency to confirm the validity of
                         credential details.30
              Audio-video communication technology:31 The technology must:
                     o Be secure from interception or access by anyone other than the participants
                         communicating; and



20 A RON service provider is a person that provides audio-video communication technology and related processes, services, software,

data storage, or other services to online notaries public for the purpose of directly facilitating their performance of online notarizations.
21 S. 117.225, F.S.
22 S. 117.209, F.S.
23 A principal is an individual whose electronic signature is acknowledged, witnessed, or attested to in an online notarization or who

takes an oath or affirmation from the online notary public.
24 S. 117.209, F.S.
25 S. 117.235, F.S.
26 S. 117.275, F.S.
27 Identity proofing is a process by which a third party confirms the identity of an individual through use of public or proprietary data

sources, which may include knowledge-based authentication or biometric verification. S. 117.201, F.S.
28 S. 117.295, F.S.
29 Credential analysis is a process by which a third party aids a public notary in affirming the validity of a government-issued

identification credential and data thereon through review of public or proprietary data sources. S. 117.201, F.S.
30 S. 117.295, F.S.
31 Audio-video communication technology is technology in compliance with applicable law which enables real-time, two-way

communication using electronic means in which participants are able to see, hear, and communicate with one another. S. 117.201, F.S.
STORAGE NAME: h0483b.COM                                                                                                            PAGE: 4
DATE: 4/2/2021
                      o   Provide sufficient audio clarity and video resolution to enable the notary to communicate
                          with the principal and to confirm the identity of the principal.32

         With respect to electronic notarization, a notary is required to include access protection to a signature
         through use of passwords or codes under the notary’s control. The notary may not allow another
         person to use the notary’s electronic journal, seal, or signature. Notaries must also reasonably ensure
         that any device used to create their electronic signature is current and secure.33

                  Online Notarization Procedures

         In performing an online notarization, an online notary public must verify the identity of a principal at the
         time the signature is taken by using audio-video communication technology. The notary must record
         the entire audio-video conference session between the notary public and the principal and any
         subscribing witnesses. A principal may not serve as a witness for an online notarization.34

         In performing an online notarization for a principal not located in the state, an online notary must
         confirm that the principal desires for the notarial act to be performed by a Florida notary public and
         under Florida law. An online notary public must confirm the identity of the principal and any witness by
         personal knowledge, or by:
              Remote presentation of a government-issued identification credential by each individual;
              Credential analysis of each government-issued identification credential; and
              The identity proofing of each individual, in the form of knowledge-based authentication or
                 another legal method of identity proofing.35

         If an online notary fails to comply with the online notarization procedures, such failure does not
         automatically impair the validity of the notarial act or the electronic record. However, such failure may
         be introduced as evidence to establish violations of ch. 117, F.S., or as an indication of possible fraud,
         forgery, or impersonation or for other evidentiary purposes.36

             Electronic Journal and Electronic Records

         An online notary must keep a secure electronic journal of electronic records he or she has notarized.37
         For each online notarization, the electronic journal entry must contain the:
             Date and time of the notarization;
             Type of notarial act;
             Type, title, or description of the electronic record or proceeding;
             Identity evidence for each principal involved in the transaction or proceeding;
             Indication that the principal passed the identity proofing;
             Indication that the government-issued identity credential satisfied the credential analysis; and
             Fee charged for the online notarization.38

         Identity evidence for each principal may be a:
             Statement that the person is personally known to the online notary public; or
             Notation of the type of identification document provided to the online notary public.39

         An online notary public must retain an unedited and uninterrupted recording of a remote notarization
         audio-video communication, which must include:
             Appearance by the principal and each witness before the online notary public;
             Identity confirmation of the principal and each witness;

32 S. 117.295, F.S.
33 Ss. 117.021 and 117.225, F.S.
34 S. 117.265, F.S.
35 Id.
36 Id.
37 S. 117.245, F.S.
38 Id.
39 Id.

STORAGE NAME: h0483b.COM                                                                                       PAGE: 5
DATE: 4/2/2021
                  A general description of the records to be signed;
                  A principal’s declaration that his or her signature is knowingly and voluntarily made; and
                  All of the actions and spoken words of the principal, notary public, and each required witness
                   during the entire online notarization.40

         The notary must attach or logically associate the electronic signature and seal to the electronic notarial
         certificate of an electronic record in a manner capable of independent verification using tamper-evident
         technology.41 The electronic journal and backup record of such must be maintained for at least 10 years
         after the date of the notarial act. A notary must immediately notify an appropriate law enforcement
         agency and DOS of the electronic journal, electronic signature, or electronic seal’s unauthorized use.42

         Electronic Wills

         A will, very generally, is a legal document that a person (a testator) may use to determine who gets his
         or her property upon death. Wills do not dispose of all of a testator’s property, but only the “estate,” or
         those assets that are subject to probate administration.43 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. Other assets are disposed of outside
         of probate.

         Without a will, a decedent’s estate is distributed pursuant to intestacy statutes, which devise a
         decedent’s estate according to default rules. With a will, however, a testator may devise the estate to a
         person of his or her choosing. Also, with a will, a testator may designate a person known as a personal
         representative to carry out the terms of the will. Otherwise, a court will choose the personal
         representative.

                   Executing a Will

         A will must be in writing and signed by either the testator or by someone else on behalf of the testator.
         If someone else signs on behalf of the testator, the person must do so in the testator’s presence and at
         the testator’s direction.44 At least two persons must witness the testator sign the will or must witness the
         testator’s acknowledgement that he or she previously signed the will or that another person subscribed
         the testator’s name to the will.45 If the testator fails to comply with these requirements, the will is not
         valid.46

         The requirement that a document be signed may be satisfied by an electronic signature.47 Unless the
         testator is a vulnerable adult,48 the witnessing of a will execution can be done remotely if:
              The individuals are supervised by a notary public;
              The individuals are authenticated and signing as part of an online notarization session in
                 accordance with s. 117.265, F.S.;
              The witness hears the signer make a statement acknowledging that the signer has signed the
                 electronic record; and
              In the case of an electronic will, the testator provides, to the satisfaction of the online notary
                 public, verbal answers to the following questions:

40 Id.
41 S. 117.255, F.S.
42 Id.
43 s. 731.201(14), F.S.
44 S. 732.502(1)(a), F.S.
45 S. 732.502(1)(b), F.S.
46 A will executed in another state is valid in Florida if the will is executed in accordance with the laws of this state, the laws of the state

in which it was executed, or both. This does not apply to nuncupative wills (oral wills) or holographic wills (wills written in the hand of the
testator, but not properly executed as set forth in section 732.502(1), F.S.), which are not valid in Florida regardless of whether they
were executed according to the laws of the state in which they were executed. S. 732.502(2), F.S.
47 S. 732.522, F.S.
48 A vulnerable adult is a person 18 years of age or older whose ability to perform the normal activities of daily living or to provide for his

or her own care or protection is impaired due to a mental, emotional, sensory, long-term physical, or developmental disability or
dysfunction, or brain damage, or the infirmities of aging. S. 415.102, F.S.
STORAGE NAME: h0483b.COM                                                                                                                PAGE: 6
DATE: 4/2/2021
                         o   Are you 18 years of age or older?
                         o   Are you of sound mind?
                         o   Are you signing this will voluntarily?
                         o   Are you under the influence of any drugs or alcohol that impairs your ability to make
                             decisions?
                         o   Has anyone forced or influenced you to include anything in this will which you do not
                             wish to include?
                         o   Did anyone assist you in accessing this video conference? If so, who?
                         o   Where are you? Name everyone you know in the room with you.49

                  Self-Proved Wills

         The estate is not required to procure an attesting witness as part of the estate administration process,
         before a will can be admitted to probate, when the will is “self-proved”. A will which is self-proved in
         accordance with the Code may be admitted to probate without further proof.50 In a will contest, when
         the proponent initially has the burden of proving that the will was validly executed, a self-proving
         affidavit is admissible to meet and satisfy this burden. The affidavit must be evidenced by a certificate
         attached to or following the will.51

         The will may be self-proved either at the time of its execution or at a subsequent date. When the will or
         codicil is self-proved at a subsequent date, the testator is required to acknowledge it.52

         An attested electronic will is self-proved if all of the following requirements are met:
             The will is executed in conformity with Florida law;
             The acknowledgement of the electronic will by the testator and the affidavits of the witnesses
                are made in accordance with s. 732.503, F.S.;
             The acknowledgement and affidavits are made a part of, or are attached to or logically
                associated with, the electronic record; and
             The electronic will designates a qualified custodian, who at all times is in control of the
                electronic will and executes a certification that meets the requirements set forth in statute.53

         A qualified custodian of an electronic will is a person who:
             Is domiciled in and a resident of Florida or is incorporated or organized in Florida;
             Consistently employs a system for maintaining custody of electronic records and stores
                 electronic records containing electronic wills under the system; and
             Furnishes for a court hearing involving an electronic will that is currently or was previously
                 stored by the qualified custodian any information requested by the court pertaining to the
                 qualified custodian’s policies and procedures.54

         A qualified custodian must maintain an audio-video recording of an electronic will online notarization.55
         A qualified custodian is liable for the negligent loss or destruction of an electronic record and may not
         limit his or her liability for doing so. A qualified custodian may not suspend or terminate a testator’s
         access to electronic records and must keep a testator’s information confidential.56

         Effect of Proposed Changes



49 Id.
50 S. 733.201(1), F.S.
51
   The officer’s certificate must be substantially in the form set forth at s. 732.503, F.S. The form requires that the witnesses state that
they witnessed the testator sign the will. However, the statutory requirements for executing a will do not require witnesses to witness
the testator sign the will. Section 732.502, F.S., provides that the witnesses may either witness the testator sign, or witness the testator
acknowledge his or her prior signature.
52 S. 732.503(1), F.S.,
53 S. 732.523, F.S.
54 S.732.524, F.S.
55 Id.
56 Id.

STORAGE NAME: h0483b.COM                                                                                                            PAGE: 7
DATE: 4/2/2021
         HB 483 makes several changes relating to online notarization and electronic wills. Specifically, the bill
         clarifies that:
              Online notarization procedures57 still apply in circumstances where an electronic document
                  requires witnesses but not notarization.
              An online notary public’s supervision of an electronic record’s witnessing is a notarial act.
              The requirements for supervision of witnessing of electronic records in s. 117.285(5), F.S., are:
                      o Applicable only when fewer than two witnesses are in the physical presence of the
                         principal who is executing one of the enumerated electronic estate planning documents;
                      o Not limited to “a waiver of spousal rights;” and
                      o Applicable to agreements or waivers of rights under s. 732.701, F.S.58

         The bill provides that the requirements related to supervising the witnessing of electronic records for an
         online notary public in s. 117.285(5), F.S., are applicable only to the testamentary aspects of revocable
         trusts.59 In other words, failure to comply with the applicable requirements may invalidate the
         testamentary aspects of a Florida resident’s revocable trust, but will not invalidate the non-testamentary
         aspects of that revocable trust.

         The bill also amends the definition of “online notarization” to add the appearance of witnesses by audio-
         video communication technology. The bill requires an online notary public to verify the principal’s
         identity when an online notary public is supervising the execution and witnessing of an electronic
         record.

         The bill corrects erroneous cross-references contained in statute.

         Lastly, the bill revises statutory forms so that the jurats or notarial certificates in those forms comply
         with the requirements of s. 117.05(4)(c), F.S., which became effective January 1, 2020.

         The bill is effective upon becoming law.

    B. SECTION DIRECTORY:
         Section 1: Amends s. 117.201, F.S., relating to definitions.
         Section 2: Amends s. 117.285, F.S., relating to supervising the witnessing of electronic records.
         Section 3: Amends s. 709.2119, F.S., relating to acceptance of and reliance upon power of attorney.
         Section 4: Amends s. 732.401, F.S., relating to descent of homestead.
         Section 5: Amends s. 732.503, F.S., relating to self-proof of will.
         Section 6: Amends s. 732.521, F.S., relating to definitions.
         Section 7: Amends s. 732.703, F.S., relating to effect of divorce, dissolution, or invalidity of marriage
                    on disposition of certain assets at death.
         Section 8: Amends s. 747.051, F.S., relating to summary procedure.
         Section 9: Creates an unnumbered section providing for retroactive application.
         Section 10: Provides an effective date of upon becoming a law.

                               II. FISCAL ANALYSIS & ECONOMIC IMPACT STATEMENT

    A. FISCAL IMPACT ON STATE GOVERNMENT:

         1. Revenues:
              None.

         2. Expenditures:

57 Online notarization procedures include verifying the identity of the principal, requiring the notary to maintain a record of the witnessing

in the notary’s electronic journal, and requiring the notary to maintain the audio-video recording of the execution and witnessing.
58 Agreements or waivers under s. 732701, F.S., include agreements to make a will, to give a devise, not to revoke a will, not to revoke

a devise, not to make a will, or not to make a devise.
59 “Testamentary aspects” are those provisions of a trust instrument that dispose of the trust property on or after the death of the settlor

other than to the settlor’s estate.
STORAGE NAME: h0483b.COM                                                                                                             PAGE: 8
DATE: 4/2/2021
           None.

   B. FISCAL IMPACT ON LOCAL GOVERNMENTS:

       1. Revenues:
           None.

       2. Expenditures:
           None.

   C. DIRECT ECONOMIC IMPACT ON PRIVATE SECTOR:
       None.

   D. FISCAL COMMENTS:
       None.


                                               III. COMMENTS

   A. CONSTITUTIONAL ISSUES:

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

       2. Other:
         None.

   B. RULE-MAKING AUTHORITY:
       Not applicable.

   C. DRAFTING ISSUES OR OTHER COMMENTS:
       None.


                           IV. AMENDMENTS/ COMMITTEE SUBSTITUTE CHANGES




STORAGE NAME: h0483b.COM                                                                       PAGE: 9
DATE: 4/2/2021
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 483                                                                                                2021




    1                                         A bill to be entitled
    2               An act relating to electronic legal documents;
    3               amending s. 117.201, F.S.; revising the definition of
    4               the term "online notarization"; amending s. 117.285,
    5               F.S.; clarifying that supervising the witnessing of an
    6               electronic record by an online notary public is a
    7               notarial act; specifying applicability of online
    8               notarization procedures to supervision of the
    9               witnessing of an electronic record; modifying
10                  witnessing procedures; revising applicability;
11                  amending s. 709.2119, F.S.; revising the statutory
12                  form for an affidavit for acceptance of and reliance
13                  upon a power of attorney to reflect means of
14                  notarization; amending s. 732.401, F.S.; revising the
15                  statutory form for the notice of election relating to
16                  the descent of homestead property to reflect means of
17                  notarization; amending s. 732.503, F.S.; revising the
18                  statutory form for the self-proof of a will or codicil
19                  to reflect means of notarization; amending s. 732.521,
20                  F.S.; conforming a cross-reference; amending s.
21                  732.703, F.S.; revising statutory forms relating to
22                  the disposition of certain assets at death to reflect
23                  means of notarization; amending s. 747.051, F.S.;
24                  revising the form for a petition of summary relief for
25                  the sale or transfer of certain property owned by an

                                                         Page 1 of 20

        CODING: Words stricken are deletions; words underlined are additions.
                                                                                                                hb0483-00
F   L   O   R    I   D   A    H   O   U   S   E      O   F      R    E   P   R   E   S   E   N   T   A   T    I   V   E   S




        HB 483                                                                                                2021




26               absentee to reflect means of notarization; providing
27               for construction and retroactive application;
28               providing an effective date.
29
30      Be It Enacted by the Legislature of the State of Florida:
31
32               Section 1.        Subsection (9) of section 117.201, Florida
33      Statutes, is amended to read:
34               117.201      Definitions.—As used in this part, the term:
35               (9)     "Online notarization" means the performance of a
36      notarial act using electronic means in which the principal or
37      any witness appears before the notary public by means of audio-
38      video communication technology.
39               Section 2.        Section 117.285, Florida Statutes, is amended
40      to read:
41               117.285      Supervising the witnessing of electronic records.—
42      Supervising the witnessing of an electronic record by an online
43      notary public in accordance with this section is a notarial act.
44      An online notary public may supervise the witnessing of
45      electronic records by complying with the online notarization
46      procedures of this part and using the same audio-video
47      communication technology used for online notarization by a
48      principal, as follows:
49               (1)     The witness may be in the physical presence of the
50      principal or remote from the principal provided the witness and

                                                      Page 2 of 20

     CODING: Words stricken are deletions; words underlined are additions.
                                                                                                             hb0483-00
F   L   O   R    I   D   A    H   O   U   S   E      O   F      R    E   P   R   E   S   E   N   T   A   T    I   V   E   S




        HB 483                                                                                                2021




51      principal are using audio-video communication technology.
52               (2)     If the witness is remote from the principal and
53      viewing and communicating with the principal by means of audio-
54      video communication technology, the principal's and witness's
55      identities identity must be verified in accordance with the
56      procedures for identifying a principal as set forth in s.
57      117.265(4). If the witness is in the physical presence of the
58      principal, the witness must confirm his or her identity by
59      stating his or her name and current address on the audio-video
60      recording as part of the act of witnessing.
61               (3)     The act of witnessing an electronic signature means
62      the witness is either in the physical presence of the principal
63      or present through audio-video communication technology at the
64      time the principal affixes the electronic signature and the
65      witness hears the principal make a statement to the effect that
66      the principal has signed the electronic record.
67               (4)     A witness remote from the principal and appearing
68      through audio-video communication technology must verbally
69      confirm that he or she is a resident of and physically located
70      within the United States or a territory of the United States at
71      the time of witnessing.
72               (5)     Notwithstanding subsections (2) and (3), if an
73      electronic record to be signed is a will under chapter 732, a
74      revocable trust with testamentary aspects as described in s.
75      736.0403(2)(b) under chapter 736, a health care advance

                                                      Page 3 of 20

     CODING: Words stricken are deletions; words underlined are additions.
                                                                                                             hb0483-00
F   L    O   R    I   D   A    H   O   U   S   E      O   F      R    E   P   R   E   S   E   N   T   A   T    I   V   E   S




         HB 483                                                                                                2021




76       directive, an agreement concerning succession or a waiver of
77       spousal rights under s. 732.701 or s. 732.702, respectively, or
78       a power of attorney authorizing any of the transactions
79       enumerated in s. 709.2208, all of the following apply when fewer
80       than two witnesses are in the physical presence of the principal
81       shall apply:
82                (a)      Prior to facilitating witnessing of an instrument by
83       means of audio-video communication technology, a RON service
84       provider shall require the principal to answer the following
85       questions in substantially the following form:
86                1.      Are you under the influence of any drug or alcohol
87       today that impairs your ability to make decisions?
88                2.      Do you have any physical or mental condition or long-
89       term disability that impairs your ability to perform the normal
90       activities of daily living?
91                3.      Do you require assistance with daily care?
92                (b)      If any question required under paragraph (a) is
93       answered in the affirmative, the principal's signature on the
94       instrument may only be validly witnessed by witnesses in the
95       physical presence of the principal at the time of signing.
96                (c)      Subsequent to submission of the answers required under
97       paragraph (a), the RON service provider shall give the principal
98       written notice in substantially the following form:
99
100      NOTICE:          If you are a vulnerable adult as defined in s. 415.102,

                                                       Page 4 of 20

      CODING: Words stricken are deletions; words underlined are additions.
                                                                                                              hb0483-00
F   L    O   R    I   D   A    H   O   U   S   E      O   F      R    E   P   R   E   S   E   N   T   A   T    I   V   E   S




         HB 483                                                                                                2021




101      Florida Statutes, the documents you are about to sign are not
102      valid if witnessed by means of audio-video communication
103      technology. If you suspect you may be a vulnerable adult, you
104      should have witnesses physically present with you before
105      signing.
106
107               (d)      The act of witnessing an electronic signature through
108      the witness's presence by audio-video communication technology
109      is valid only if, during the audio-video communication, the
110      principal provides verbal answers to all of the following
111      questions, each of which must be asked by the online notary
112      public in substantially the following form:
113               1.      Are you currently married? If so, name your spouse.
114               2.      Please state the names of anyone who assisted you in
115      accessing this video conference today.
116               3.      Please state the names of anyone who assisted you in
117      preparing the documents you are signing today.
118               4.      Where are you currently located?
119               5.      Who is in the room with you?
120               (e)      An online notary public shall consider the responses
121      to the questions specified in paragraph (d) in carrying out of
122      the duties of a notary public as set forth in s. 117.107(5).
123               (f)      A principal's responses to the questions in paragraphs
124      (a) and (d) may be offered as evidence regarding the validity of
125      the instrument, but an incorrect answer may not serve as the

                                                       Page 5 of 20

      CODING: Words stricken are deletions; words underlined are additions.
                                                                                                              hb0483-00
F   L    O   R    I   D   A    H   O   U   S   E      O   F      R    E   P   R   E   S   E   N   T   A   T    I   V   E   S




         HB 483                                                                                                2021




126      sole basis to invalidate an instrument.
127               (g)      The presence of a witness with the principal at the
128      time of signing by means of audio-video communication technology
129      is not effective for witnessing the signature of a principal who
130      is a vulnerable adult as defined in s. 415.102. The contestant
131      of an electronic record has the burden of proving that the
132      principal was a vulnerable adult at the time of executing the
133      electronic record.
134               (h)      Nothing in this subsection shall:
135               1.      Preclude a power of attorney, which includes banking or
136      investment powers enumerated in s. 709.2208, from being
137      effective with respect to any other authority granted therein or
138      with respect to the agent's authority in connection with a real
139      property, commercial, or consumer transaction or loan, to
140      exercise any power specified therein or to execute and deliver
141      instruments obligating the principal or to draw upon the
142      proceeds of such transaction or loan; or
143               2.      Affect the nontestamentary aspects of a revocable trust
144      under chapter 736.
145               (i)      The electronic record containing an instrument signed
146      by witnesses who were present with the principal by means of
147      audio-video communication technology shall contain a perceptible
148      indication of their presence by such means.
149               (j)     Nothing in This subsection does not shall affect the
150      application of s. 709.2119.

                                                       Page 6 of 20

      CODING: Words stricken are deletions; words underlined are additions.
                                                                                                              hb0483-00
F   L    O   R    I   D   A    H   O   U   S   E      O   F      R    E   P   R   E   S   E   N   T   A   T    I   V   E   S




         HB 483                                                                                                2021




151               (k)     The requirements of this subsection do not apply if
152      there are at least two witnesses in the physical presence of the
153      principal at the time of the notarial act.
154               (6)     Pursuant to subpoena, court order, an authorized law
155      enforcement inquiry, or other lawful request, a RON service
156      provider or online notary public shall provide:
157               (a)     The last known address of each witness who witnessed
158      the signing of an electronic record using audio-video
159      communication technology under this section.
160               (b)     A principal's responses to the questions in paragraph
161      (5)(a) or paragraph (5)(d) (5)(b), as applicable.
162               (c)     An uninterrupted and unedited copy of the recording of
163      the audio-video communication in which an online notarization is
164      performed.
165               (7)     Except as set forth in s. 709.2202, an act of
166      witnessing performed pursuant to this section satisfies any
167      requirement that the witness must be a subscribing or attesting
168      witness or must be in the presence of the principal at the time
169      of signing.
170               (8)     The law of this state governs the validity of
171      witnessing supervised by an online notary public pursuant to
172      this section, regardless of the physical location of the witness
173      at the time of witnessing. State and federal courts in this
174      state have subject matter jurisdiction over any dispute arising
175      out of an act of witnessing pursuant to this section, and may

                                                       Page 7 of 20

      CODING: Words stricken are deletions; words underlined are additions.
                                                                                                              hb0483-00
F   L    O   R    I   D   A    H    O   U   S   E     O   F      R    E   P   R   E   S   E   N   T   A   T    I   V   E   S




         HB 483                                                                                                2021




176      issue subpoenas for records or to require the appearance of
177      witnesses in relation thereto in accordance with applicable law.
178               Section 3.         Paragraph (c) of subsection (2) of section
179      709.2119, Florida Statutes, is amended to read:
180               709.2119         Acceptance of and reliance upon power of
181      attorney.—
182               (2)      A third person may require:
183               (c)      A written affidavit executed by the agent under this
184      subsection which may, but need not, be in the following form:
185
186      STATE OF............
187      COUNTY OF............
188
189               Before me, the undersigned authority, personally appeared
190      ...(agent)... ("Affiant") by the means specified herein, who
191      swore or affirmed that:
192               1.      Affiant is the agent named in the Power of Attorney
193      executed by ...(principal)... ("Principal") on ...(date)....
194               2.      This Power of Attorney is currently exercisable by
195      Affiant. The principal is domiciled in ...(insert name of state,
196      territory, or foreign country)....
197               3.      To the best of Affiant's knowledge after diligent
198      search and inquiry:
199               a.      The Principal is not deceased;
200               b.      Affiant's authority has not been suspended by

                                                       Page 8 of 20

      CODING: Words stricken are deletions; words underlined are additions.
                                                                                                              hb0483-00
F   L    O   R    I   D   A    H   O   U   S   E      O   F      R    E   P   R   E   S   E   N   T   A   T    I   V   E   S




         HB 483                                                                                                2021




201      initiation of proceedings to determine incapacity or to appoint
202      a guardian or a guardian advocate;
203               c.      Affiant's authority has not been terminated by the
204      filing of an action for dissolution or annulment of Affiant's
205      marriage to the principal, or their legal separation; and
206               d.      There has been no revocation, or partial or complete
207      termination, of the power of attorney or of Affiant's authority.
208               4.      Affiant is acting within the scope of authority granted
209      in the power of attorney.
210               5.      Affiant is the successor to ...(insert name of
211      predecessor agent)..., who has resigned, died, become
212      incapacitated, is no longer qualified to serve, has declined to
213      serve as agent, or is otherwise unable to act, if applicable.
214               6.      Affiant agrees not to exercise any powers granted by
215      the Power of Attorney if Affiant attains knowledge that the
216      power of attorney has been revoked, has been partially or
217      completely terminated or suspended, or is no longer valid
218      because of the death or adjudication of incapacity of the
219      Principal.
220
221                                                                                       ................
222                                                                                       ...(Affiant)...
223
224               Sworn to (or affirmed) and subscribed before me by means of
225      ☐ physical presence or ☐ online notarization this .... day of

                                                       Page 9 of 20

      CODING: Words stricken are deletions; words underlined are additions.
                                                                                                              hb0483-00
F   L    O   R    I   D   A    H   O   U   S   E      O   F      R    E   P   R   E   S   E   N   T   A   T    I   V   E   S




         HB 483                                                                                                2021




226      ...(month)..., ...(year)..., by ...(name of person making
227      statement)...
228
229      ...(Signature of Notary Public-State of Florida)...
230
231      ...(Print, Type, or Stamp Commissioned Name of Notary Public)...
232
233      Personally Known OR Produced Identification
234      ...(Type of Identification Produced)...
235
236               Section 4.        Paragraph (e) of subsection (2) of section
237      732.401, Florida Statutes, is amended to read:
238               732.401      Descent of homestead.—
239               (2)     In lieu of a life estate under subsection (1), the
240      surviving spouse may elect to take an undivided one-half
241      interest in the homestead as a tenant in common, with the
242      remaining undivided one-half interest vesting in the decedent's
243      descendants in being at the time of the decedent's death, per
244      stirpes.
245               (e)     The election must shall be made by filing a notice of
246      election containing the legal description of the homestead
247      property for recording in the official record books of the
248      county or counties where the homestead property is located. The
249      notice must be in substantially the following form:
250

                                                      Page 10 of 20

      CODING: Words stricken are deletions; words underlined are additions.
                                                                                                              hb0483-00
F   L    O   R    I   D   A    H   O    U   S   E     O   F      R    E   P   R   E   S   E   N   T   A   T    I   V   E   S




         HB 483                                                                                                2021




251                                    ELECTION OF SURVIVING SPOUSE
252                                    TO TAKE A ONE-HALF INTEREST OF
253                                         DECEDENT'S INTEREST IN
254                                             HOMESTEAD PROPERTY
255
256      STATE OF........
257      COUNTY OF........
258
259               1.      The decedent, ................, died on .............
260      On the date of the decedent's death, the decedent was married to
261      ............, who survived the decedent.
262               2.      At the time of the decedent's death, the decedent owned
263      an interest in real property that the affiant believes to be
264      homestead property described in s. 4, Article X of the State
265      Constitution, which real property being in ........ County,
266      Florida, and described as: ...(description of homestead
267      property)....
268               3.      Affiant elects to take one-half of decedent's interest
269      in the homestead as a tenant in common in lieu of a life estate.
270               4.      If affiant is not the surviving spouse, affiant is the
271      surviving spouse's attorney in fact or guardian of the property,
272      and an order has been rendered by a court having jurisdiction of
273      the real property authorizing the undersigned to make this
274      election.
275

                                                      Page 11 of 20

      CODING: Words stricken are deletions; words underlined are additions.
                                                                                                              hb0483-00
F   L    O   R    I   D   A    H   O   U   S   E      O   F      R    E   P   R   E   S   E   N   T   A   T    I   V   E   S




         HB 483                                                                                                2021




276                                                                                           ............
277                                                                                       ...(Affiant)...
278
279      Sworn to (or affirmed) and subscribed before me by means of ☐
280      physical presence or ☐ online notarization this .... day of
281      ...(month)..., ...(year)..., by ...(affiant)...
282
283      ...(Signature of Notary Public-State of Florida)...
284
285      ...(Print, Type, or Stamp Commissioned Name of Notary Public)...
286
287      Personally Known OR Produced Identification
288
289      ...(Type of Identification Produced)...
290               Section 5.        Subsection (1) of section 732.503, Florida
291      Statutes, is amended to read:
292               732.503      Self-proof of will.—
293               (1)     A will or codicil executed in conformity with s.
294      732.502 may be made self-proved at the time of its execution or
295      at any subsequent date by the acknowledgment of it by the
296      testator and the affidavits of the witnesses, made before an
297      officer authorized to administer oaths and evidenced by the
298      officer's certificate attached to or following the will, in
299      substantially the following form:
300

                                                      Page 12 of 20

      CODING: Words stricken are deletions; words underlined are additions.
                                                                                                              hb0483-00
F   L    O   R    I   D   A    H   O   U   S   E      O   F      R    E   P   R   E   S   E   N   T   A   T    I   V   E   S




         HB 483                                                                                                2021




301      STATE OF........ FLORIDA
302      COUNTY OF ....
303               I,............, declare to the officer taking my
304      acknowledgment of this instrument, and to the subscribing
305      witnesses, that I signed this instrument as my will.
306
307                                        ........................
308                                                   Testator
309
310               We,........and........, have been sworn by the officer
311      signing below, and declare to that officer on our oaths that the
312      testator declared the instrument to be the testator's will and
313      signed it in our presence and that we each signed the instrument
314      as a witness in the presence of the testator and of each other.
315
316                                        ........................
317                                                    Witness
318
319                                        ........................
320                                                    Witness
321
322               Acknowledged and subscribed before me by means of ☐
323      physical presence or ☐ online notarization by the testator,
324      (type or print testator's name), who ☐ is personally known to me
325      or ☐ who has produced (state type of identification—see s.

                                                      Page 13 of 20

      CODING: Words stricken are deletions; words underlined are additions.
                                                                                                              hb0483-00
F   L    O   R    I   D   A    H   O   U   S   E      O   F      R    E   P   R   E   S   E   N   T   A   T    I   V   E   S




         HB 483                                                                                                2021




326      117.05(5)(b)2.) as identification, and sworn to and subscribed
327      before me by each of the following witnesses:, (type or print
328      name of first witness) who ☐ is personally known to me or ☐ who
329      has produced (state type of identification—see s.
330      117.05(5)(b)2.) as identification, by means of ☐ physical
331      presence or ☐ online notarization; and (type or print name of
332      second witness) who ☐ is personally known to me or ☐ who has
333      produced (state type of identification—see s. 117.05(5)(b)2.) as
334      identification, by means of ☐ physical presence or ☐ online
335      notarization. and Subscribed by me in the presence of the
336      testator and the subscribing witnesses, by the means specified
337      herein, all on (date).
338                                                                   ...(Signature of Officer)...
339      ...(Print, type, or stamp commissioned name and affix official
340      seal)...
341
342               Section 6.        Subsection (7) of section 732.521, Florida
343      Statutes, is amended to read:
344               732.521      Definitions.—As used in ss. 732.521-732.525, the
345      term:
346               (7)     "Qualified custodian" means a person who meets the
347      requirements of s. 732.524(1) s. 732.525(1).
348               Section 7.        Paragraph (b) of subsection (5) of section
349      732.703, Florida Statutes, is amended to read:
350               732.703      Effect of divorce, dissolution, or invalidity of

                                                      Page 14 of 20

      CODING: Words stricken are deletions; words underlined are additions.
                                                                                                              hb0483-00
F   L    O   R    I   D   A    H   O   U   S   E      O   F      R    E   P   R   E   S   E   N   T   A   T    I   V   E   S




         HB 483                                                                                                2021




351      marriage on disposition of certain assets at death.—
352               (5)      In the case of an asset described in paragraph (3)(a),
353      paragraph (3)(b), or paragraph (3)(c), unless payment or
354      transfer would violate a court order directed to, and served as
355      required by law on, the payor:
356               (b)      As to any portion of the asset required by the
357      governing instrument to be paid after the decedent's death to a
358      primary beneficiary explicitly designated in the governing
359      instrument as the decedent's spouse:
360               1.      If the death certificate states that the decedent was
361      married at the time of his or her death to that spouse, the
362      payor is not liable for making a payment on account of, or for
363      transferring an interest in, that portion of the asset to such
364      primary beneficiary.
365               2.      If the death certificate states that the decedent was
366      not married at the time of his or her death, or if the death
367      certificate states that the decedent was married to a person
368      other than the spouse designated as the primary beneficiary at
369      the time of his or her death, the payor is not liable for making
370      a payment on account of, or for transferring an interest in,
371      that portion of the asset to a secondary beneficiary under the
372      governing instrument.
373               3.      If the death certificate is silent as to the decedent's
374      marital status at the time of his or her death, the payor is not
375      liable for making a payment on account of, or for transferring

                                                      Page 15 of 20

      CODING: Words stricken are deletions; words underlined are additions.
                                                                                                              hb0483-00
F   L    O   R    I   D   A    H   O   U   S   E      O   F      R    E   P   R   E   S   E   N   T   A   T    I   V   E   S




         HB 483                                                                                                2021




376      an interest in, that portion of the asset to the primary
377      beneficiary upon delivery to the payor of an affidavit validly
378      executed by the primary beneficiary in substantially the
379      following form:
380
381               STATE OF............
382               COUNTY OF............
383
384               Before me, the undersigned authority, personally
385               appeared by the means specified herein, ...(type or
386               print Affiant's name)... ("Affiant"), who swore or
387               affirmed that:
388               1.      ...(Type or print name of Decedent)...
389               ("Decedent") died on ...(type or print the date of the
390               Decedent's death)....
391               2.      Affiant is a "primary beneficiary" as that term is
392               defined in Section 732.703, Florida Statutes. Affiant
393               and Decedent were married on ...(type or print the
394               date of marriage)..., and were legally married to one
395               another on the date of the Decedent's death.
396                                                                                       ...(Affiant)...
397               Sworn to or affirmed before me by means of ☐ physical
398               presence or ☐ online notarization by the affiant who ☐
399               is personally known to me or ☐ who has produced
400               ...(state type of identification)... as identification

                                                      Page 16 of 20

      CODING: Words stricken are deletions; words underlined are additions.
                                                                                                              hb0483-00
F   L    O   R    I   D   A    H   O   U   S   E      O   F      R    E   P   R   E   S   E   N   T   A   T    I   V   E   S




         HB 483                                                                                                2021




401               this .... day of ...(month)..., ...(year)....
402               ...(Signature of Officer)...
403               ...(Print, Type, or Stamp Commissioned name of Notary
404               Public)...
405
406               4.      If the death certificate is silent as to the decedent's
407      marital status at the time of his or her death, the payor is not
408      liable for making a payment on account of, or for transferring
409      an interest in, that portion of the asset to the secondary
410      beneficiary upon delivery to the payor of an affidavit validly
411      executed by the secondary beneficiary affidavit in substantially
412      the following form:
413
414               STATE OF............
415               COUNTY OF............
416
417               Before me, the undersigned authority, personally
418               appeared by the means specified herein, ...(type or
419               print Affiant's name)... ("Affiant"), who swore or
420               affirmed that:
421               1.      ...(Type or print name of Decedent)...
422               ("Decedent") died on ...(type or print the date of the
423               Decedent's death)....
424               2.      Affiant is a "secondary beneficiary" as that term
425               is defined in Section 732.703, Florida Statutes. On

                                                      Page 17 of 20

      CODING: Words stricken are deletions; words underlined are additions.
                                                                                                              hb0483-00
F   L    O   R    I   D   A    H   O   U   S   E      O   F      R    E   P   R   E   S   E   N   T   A   T    I   V   E   S




         HB 483                                                                                                2021




426               the date of the Decedent's death, the Decedent was not
427               legally married to the spouse designated as the
428               "primary beneficiary" as that term is defined in
429               Section 732.703, Florida Statutes.
430
431                                                                                       ...(Affiant)...
432               Sworn to or affirmed before me by means of ☐ physical
433               presence or ☐ online notarization by the affiant who ☐
434               is personally known to me or ☐ who has produced
435               ...(state type of identification)... as identification
436               this .... day of ...(month)..., ...(year)....
437               ...(Signature of Officer)...
438               ...(Print, Type, or Stamp Commissioned name of Notary
439               Public)...
440
441               Section 8.        Subsection (1) of section 747.051, Florida
442      Statutes, is amended to read:
443               747.051      Summary procedure.—
444               (1)     If the wife of any person defined as an absentee in s.
445      747.01(1), or his next of kin if said absentee has no wife,
446      shall wish to sell or transfer any property of the absentee
447      which has a gross value of less than $5,000, or shall require
448      the consent of the absentee in any matter regarding the
449      absentee's children or in any other matter in which the gross
450      value of the subject matter is less than $5,000, she may apply

                                                      Page 18 of 20

      CODING: Words stricken are deletions; words underlined are additions.
                                                                                                              hb0483-00
F   L    O   R    I   D   A    H   O   U   S    E     O   F      R    E   P   R   E   S   E   N   T   A   T    I   V   E   S




         HB 483                                                                                                2021




451      to the circuit court for an order authorizing said sale,
452      transfer, or consent without opening a full conservatorship
453      proceeding as provided by this chapter. She may make the
454      application without the assistance of an attorney. Said
455      application shall be made by petition on the following form,
456      which form shall be made readily available to the applicant by
457      the clerk of the circuit court:
458
459                                            In the Circuit Court
460
461      In re: ...(Absentee)..., case number .....
462
463                                    PETITION FOR SUMMARY RELIEF
464
465      Petitioner, ...(Name)..., whose residence is ...(Street &
466      number)..., ...(City or town)..., and ...(County)..., Florida,
467      and who is the ...(Describe relationship to absentee)... of the
468      absentee, ...(Name)..., states that the absentee has been
469      ...(Imprisoned or missing in action)... since ...(Date)... when
470      ...(Describe details).... Petitioner desires to sell/transfer
471      ...(Describe property)... of the value of ...(Value)... because
472      ...(Give reasons).... The terms of sale/transfer are ...(Give
473      reasons).... Petitioner requires the consent of the absentee for
474      the purpose of .....
475                                                                                   ...(Petitioner)...

                                                      Page 19 of 20

      CODING: Words stricken are deletions; words underlined are additions.
                                                                                                              hb0483-00
F   L    O    R   I   D   A    H   O   U   S   E      O   F      R    E   P   R   E   S   E   N   T   A   T    I   V   E   S




         HB 483                                                                                                2021




476      State of .... Florida
477      County of....
478
479               Sworn to (or affirmed) and subscribed before me by means of
480      ☐ physical presence or ☐ online notarization this .... day of
481      ........, ...(year)..., by ...(name of person making
482      statement)....
483
484                           ...(Signature of Notary Public - State of Florida)...
485          ...(Print, Type, or Stamp Commissioned Name of Notary Public)...
486               Personally Known ........ OR Produced Identification
487               Type of Identification Produced........................
488
489               Section 9.        The amendments made by this act are remedial in
490      nature and shall apply retroactively to January 1, 2020.
491               Section 10.          This act shall take effect upon becoming a
492      law.




                                                      Page 20 of 20

      CODING: Words stricken are deletions; words underlined are additions.
                                                                                                              hb0483-00
HB 535
                                    HOUSE OF REPRESENTATIVES STAFF ANALYSIS
BILL #:     HB 535 Electronic Dissemination of Commercial Recordings and Audiovisual Works
SPONSOR(S): Busatta Cabrera
TIED BILLS:       IDEN./SIM. BILLS: SB 1542

  REFERENCE                                                        ACTION                   ANALYST                STAFF DIRECTOR or
                                                                                                                   BUDGET/POLICY CHIEF

  1) Regulatory Reform Subcommittee                                17 Y, 0 N                Wright                 Anstead

  2) Civil Justice & Property Rights Subcommittee                  16 Y, 0 N                Mathews                Jones

  3) Commerce Committee                                                                     Wright                 Hamon

                                                         SUMMARY ANALYSIS

The True Origin of Digital Goods Act (Act) requires owners or operators of websites that electronically
disseminate commercial recordings or audiovisual works to Florida consumers to clearly post on the website
and make readily accessible to a consumer using or visiting the website the following identifying information:
     The true and correct name of the operator or owner;
     The operator or owner’s physical address; and
     The operator or owner’s telephone number or e-mail address.

For purposes of the Act, “electronic dissemination” means initiating a transmission of, making available, or
otherwise offering a commercial recording or audiovisual work for distribution through the Internet or other
digital network, regardless of whether another person has previously electronically disseminated the same
commercial recording or audiovisual work.

The Act gives a right to injunctive relief for owners, assignees, authorized agents, or licensees of a commercial
recording or audio visual work whose work appears on a website that has not posted identifying information in
violation of the Act.

The bill amends the definition of “electronic dissemination” under the Act to include “display” and “performance”
to require a person who owns or operates a streaming service dealing in commercial recordings and
audiovisual works to post their identifying information on the website.

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 .
STORAGE NAME: h0535d.COM
DATE: 4/2/2021
                                                    FULL ANALYSIS

                                             I. SUBSTANTIVE ANALYSIS

        A. EFFECT OF PROPOSED CHANGES:

          True Origin of Digital Goods Act

          The True Origin of Digital Goods Act (Act) requires owners or operators of websites that electronically
          disseminate commercial recordings or audiovisual works to Florida consumers to clearly post on the
          website and make readily accessible to a consumer using or visiting the website the following
          identifying information:1
               The true and correct name of the operator or owner;
               The operator or owner’s physical address; and
               The operator or owner’s telephone number or e-mail address.

          “Electronic dissemination” under the Act means initiating a transmission of, making available, or
          otherwise offering a commercial recording or audiovisual work for distribution through the Internet or
          other digital network, regardless of whether another person has previously electronically disseminated
          the same commercial recording or audiovisual work.2

          The Act does not protect copyrighted material, but rather governs “commercial recordings or
          audiovisual works,” defined broadly to include a recording or audiovisual work whose owner, assignee,
          authorized agent, or licensee has disseminated or intends to disseminate such work for sale, rental, or
          performance or exhibition to the public, regardless of whether the person seeks commercial advantage
          or private financial gain from the dissemination. The Act applies to websites that disseminate
          copyrighted material as well as any disseminated recording or audiovisual work, regardless of the
          disseminator’s intent to seek commercial advantage or financial gain from the work.3

          The Act gives a right to injunctive relief for owners, assignees, authorized agents, or licensees of a
          commercial recording or audio visual work whose work appears on a website that has not posted
          identifying information in violation of the Act. Before initiating the civil action provided for in the Act, the
          aggrieved party must “make reasonable efforts” to place an individual alleged to be in violation of the
          section on notice that the owner or operator may be in violation of the Act, and that failure to cure the
          violation within 14 days may result in civil action. The prevailing party may also recover necessary
          expenses and reasonable attorney fees. These remedies are available as a supplement to other state
          and federal criminal and civil law provisions.4

          The Act authorizes the court to make appropriate orders to compel compliance with the Act upon
          motion of the party instituting the action.5

          The Act exempts:
              providers of interactive computer services, communication services, commercial mobile
                services, information services that provide transmission, storage, or caching of electronic
                communications or other related telecommunications service, and commercial mobile radio
                services;6 and
              commercial recordings and audiovisual works that are video games, depictions of video game
                play, and streaming of video game activity.7

          Streaming Services

1 S. 501.155(4)(a), F.S.
2 S. 501.155(3)(b), F.S.
3 S. 501.155(3)(a), F.S.
4 S. 501.155(5), F.S.
5 Id.
6 S. 501.155(2)(b), F.S.
7 S. 501.155(3)(a), F.S.
STORAGE NAME: h0535d.COM                                                                                            PAGE: 2
DATE: 4/2/2021
        Generally, a streaming service is an online provider of entertainment, including music and movies, that
        delivers the content via an Internet connection to a user or subscriber's computer, television, or mobile
        device.8

        Effect of the Bill

        The bill amends the definition of “electronic dissemination” to read: “initiating a transmission of, making
        available, or otherwise offering a commercial recording or audiovisual work for distribution, display, or
        performance through the Internet or other digital network, regardless of whether another person has
        previously electronically disseminated the same commercial recording or audiovisual work.”

        Therefore, the bill requires a person who owns or operates a streaming service dealing in commercial
        recordings and audiovisual works, not subject to an exemption, to post their identifying information on
        the website.

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

   B. SECTION DIRECTORY:
       Section 1:       Amends s. 501.155, F.S.; requiring certain notice requirements on websites that offer
                        certain recordings and work for display or performance.
       Section 2:       Provides an effective date.

                             II. FISCAL ANALYSIS & ECONOMIC IMPACT STATEMENT

   A. FISCAL IMPACT ON STATE GOVERNMENT:

       1. Revenues:
            None.

       2. Expenditures:
            None.

   B. FISCAL IMPACT ON LOCAL GOVERNMENTS:

       1. Revenues:
            None.

       2. Expenditures:
            None.

   C. DIRECT ECONOMIC IMPACT ON PRIVATE SECTOR:
        The bill may allow more owners, assignees, authorized agents, or licensees of a commercial recording
        or audio visual work to initiate actions based on improper notice.

   D. FISCAL COMMENTS:
        None.

                                                  III. COMMENTS

   A. CONSTITUTIONAL ISSUES:

8 PC Mag Digital Group, Streaming Service, https://www.pcmag.com/encyclopedia/term/streaming-service (last visited

Mar. 26, 2021).
STORAGE NAME: h0535d.COM                                                                                       PAGE: 3
DATE: 4/2/2021
        1. Applicability of Municipality/County Mandates Provision:
           Not applicable. This bill does not appear to affect county or municipal governments.

        2. Other:
           For a court to exercise jurisdiction over a respondent, it must have subject matter jurisdiction and
           personal jurisdiction.9 A non-resident respondent may have sufficient contacts with Florida if he or
           she commits acts expressly enumerated in Florida’s long-arm statute.10 Alternately, the non-resident
           respondent may be subject to a Florida court’s personal jurisdiction because he or she has minimum
           contacts with the state that are otherwise unrelated to the matter that brings him or her into court.11

           Whether a non-resident Internet company that electronically disseminates commercial recordings or
           audiovisual works into Florida has sufficient minimum contacts with the state is a fact-specific
           question that would likely need to be addressed on a case-by-case basis by a court.

           Content-neutral regulations are legitimate if they advance important governmental interests that are
           not related to suppression of free speech, and do not substantially burden more speech than
           necessary to further those interests.12 However, a law may be determined to be overbroad if a
           “substantial number of its applications are unconstitutional, judged in relation to the statute’s plainly
           legitimate sweep.”13

    B. RULE-MAKING AUTHORITY:
        None.

    C. DRAFTING ISSUES OR OTHER COMMENTS:
        None.

                           IV. AMENDMENTS/ COMMITTEE SUBSTITUTE CHANGES




9 Caiazzo v. American Royal Arts Corp., 73 So. 3d 245, 250 (Fla. 4th DCA 2011).
10 Id; S. 48.193, F.S.
11 Caiazzo v. American Royal Arts Corp., 73 So. 3d 245, 250 (Fla. 4th DCA 2011).
12 Turner Broadcasting System, Inc. v. F.C.C., 520 U.S. 180,189 (U.S. 1997).
13 U.S. v. Stevens, 559 U.S. 460 (2010)(quoting Washington State Grange v. Washington State Republican Party, 552

U.S. 442, 449, n. 6 (2008)).
STORAGE NAME: h0535d.COM                                                                                      PAGE: 4
DATE: 4/2/2021
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 535                                                                                                2021




    1                                         A bill to be entitled
    2               An act relating to electronic dissemination of
    3               commercial recordings and audiovisual works; amending
    4               s. 501.155, F.S.; revising the definition of the term
    5               "electronic dissemination"; providing an effective
    6               date.
    7
    8      Be It Enacted by the Legislature of the State of Florida:
    9
10                  Section 1.        Paragraph (b) of subsection (3) of section
11         501.155, Florida Statutes, is amended to read:
12                  501.155      Electronic dissemination of commercial recordings
13         or audiovisual works; required disclosures; injunctive relief.—
14                  (3)     DEFINITIONS.—As used in this section, the term:
15                  (b)     "Electronic dissemination" means initiating a
16         transmission of, making available, or otherwise offering a
17         commercial recording or audiovisual work for distribution,
18         display, or performance through the Internet or other digital
19         network, regardless of whether another person has previously
20         electronically disseminated the same commercial recording or
21         audiovisual work.
22                  Section 2.        This act shall take effect July 1, 2021.




                                                         Page 1 of 1

        CODING: Words stricken are deletions; words underlined are additions.
                                                                                                                hb0535-00
CS/HB 539
                                    HOUSE OF REPRESENTATIVES STAFF ANALYSIS
BILL #:     CS/HB 539 Renewable Energy
SPONSOR(S): Environment, Agriculture & Flooding Subcommittee, Byrd
TIED BILLS:       IDEN./SIM. BILLS: CS/SB 896

  REFERENCE                                                       ACTION                   ANALYST                STAFF DIRECTOR or
                                                                                                                  BUDGET/POLICY CHIEF

  1) Tourism, Infrastructure & Energy Subcommittee                17 Y, 0 N                Willson                Keating

  2) Environment, Agriculture & Flooding                          17 Y, 1 N, As CS         Gawin                  Moore
     Subcommittee

  3) Commerce Committee                                                                    Willson                Hamon

                                                        SUMMARY ANALYSIS
Section 366.91, F.S., defines “renewable energy” as electrical energy produced from a method that uses one
or more of the following fuels or energy sources: hydrogen produced from sources other than fossil fuels;
biomass; solar energy; geothermal energy; wind energy; ocean energy; and hydroelectric power.

Certain renewable energy projects are eligible for a variety of financing and permitting benefits. Additionally,
public utilities and municipal utilities are required to continuously make available standard offer contracts for
the purchase of renewable energy, subject to certain price limitations, with the costs of any purchases
recoverable from the utility’s ratepayers.

The bill defines "renewable natural gas" as anaerobically-generated biogas, landfill gas, or waste-water
treatment gas refined to a methane content of 90 percent or greater which is capable of being used as
transportation fuel, for electric power generation, or is of a quality capable of being injected into a natural gas
pipeline. The bill defines “biogas” as a mixture of carbon dioxide and hydrocarbons, primarily methane gas,
which is released from the biological decomposition of organic materials. The bill further specifies that
hydrogen resulting from certain sources is considered renewable energy.

The bill authorizes the Florida Public Service Commission (PSC) to approve cost recovery by a gas public
utility for contracts for the purchase of renewable natural gas in which the pricing provisions exceed the current
market price of natural gas, but are otherwise deemed reasonable and prudent by the PSC.

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

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.
STORAGE NAME: h0539d.COM
DATE: 4/2/2021
                                                    FULL ANALYSIS

                                             I. SUBSTANTIVE ANALYSIS

    A. EFFECT OF PROPOSED CHANGES:
        Current Situation

        Renewable Energy

        Florida Renewable Energy Policy

        Section 366.92, F.S. declares that it is the intent of the Legislature to:
            promote the development of renewable energy;
            protect the economic viability of Florida’s existing renewable energy facilities;
            diversify the types of fuel used to generate electricity in Florida;
            lessen Florida’s dependence on natural gas and fuel oil for the production of electricity;
            minimize the volatility of fuel costs;
            encourage investment within the state;
            improve environmental conditions; and
            minimize the costs of power supply to electric utilities and their customers.

        Section 366.91, F.S., defines “renewable energy” as electrical energy produced from a method that
        uses one or more of the following fuels or energy sources:
            hydrogen produced from sources other than fossil fuels;
            biomass;1
            solar energy;
            geothermal energy;
            wind energy;
            ocean energy; and
            hydroelectric power.

        Renewable energy also includes the alternative energy resource, waste heat, from sulfuric acid
        manufacturing operations and electrical energy produced using pipeline-quality synthetic gas produced
        from waste petroleum coke with carbon capture and sequestration.

        Contracts for the Purchase of Renewable Energy

        Since 2005, public utilities2 have been required to continuously make available standard offer contracts
        for the purchase of renewable energy, with the costs of any purchases recoverable from the utility’s
        ratepayers.3 The law limits the price paid by a utility for renewable energy to the utility’s full avoided
        costs, which are defined in s. 366.051, F.S., as the costs the utility would have incurred to produce the
        energy or capacity itself or purchase it from another source if not for the purchase of the renewable
        energy.4 Capacity payments are not required if, due to the operational characteristics of the renewable
        energy generator or the anticipated peak and off-peak availability and capacity factor of the utility's

1 Section 366.91(2)(a), F.S., defines “biomass” as “a power source that is comprised of, but not limited to, combustible

residues or gases from forest products manufacturing, waste, byproducts, or products from agricultural and orchard crops,
waste or coproducts from livestock and poultry operations, waste or byproducts from food processing, urban wood waste,
municipal solid waste, municipal liquid waste treatment operations, and landfill gas.”
2 Section 366.02(1), F.S., defines a “public utility” as “every person, corporation, partnership, association, or other legal

entity and their lessees, trustees, or receivers supplying electricity or gas (natural, manufactured, or similar gaseous
substance) to or for the public within this state.” The term “public utility” does not include rural electric cooperatives,
municipal electric utilities, special natural gas districts, natural gas transmission pipeline companies, natural gas
marketers, or propane suppliers.
3 S. 366.91(3), F.S. Each contract must provide a contract term of at least ten years.
4 This pricing scheme reflects limits established by federal law, which have been in place since adoption of the Public

Utilities Regulatory Policy Act in 1978.
STORAGE NAME: h0539d.COM                                                                                             PAGE: 2
DATE: 4/2/2021
          avoided unit, the renewable energy producer is unlikely to provide any capacity value to the utility or the
          electric grid during the contract term.5 Prudent and reasonable costs associated with the contract must
          be recovered from the ratepayers of the contracting utility, without differentiation among customer
          classes, through the appropriate cost-recovery mechanism administered by the Florida Public Service
          Commission (PSC).6

          Similarly, each municipal electric utility7 and rural electric cooperative8 whose annual sales, as of July
          1, 1993, to retail customers were greater than 2,000 gigawatt hours must continuously offer a purchase
          contract with a minimum term of 10 years to producers of renewable energy. These contracts must
          include payment provisions for energy and capacity which are based upon the utility’s or cooperative’s
          full avoided costs, as determined by the governing body of the municipal utility or cooperative.9

          A contracting producer of renewable energy must pay the actual costs of its interconnection with the
          transmission grid or distribution system.10

          Effect of the Bill

          The bill defines "renewable natural gas" as anaerobically-generated biogas, landfill gas, or waste-water
          treatment gas refined to a methane content of 90 percent or greater which is capable of being used as
          transportation fuel, for electric power generation, or is of a quality capable of being injected into a
          natural gas pipeline.

          The bill defines "biogas" as a mixture of carbon dioxide and hydrocarbons, primarily methane gas,
          which is released from the biological decomposition of organic materials.

          The bill expands the definition of "renewable energy" to include hydrogen “resulting” from certain
          sources.

          The bill authorizes the PSC to approve cost recovery by a gas public utility for contracts for the
          purchase of renewable natural gas in which the pricing provisions exceed the current market price of
          natural gas, but are otherwise deemed reasonable and prudent by the PSC.

        B. SECTION DIRECTORY:
          Section 1 Amends s. 366.91, F.S.; defining the terms "biogas" and "renewable natural gas"; revising
                    the definition of the term "renewable energy" to include hydrogen resulting from certain
                    sources.

          Section 2 Amends s. 366.92, F.S.; revising the definition of “renewable energy.”

          Section 3 Amends s. 373.236, F.S.; conforming a cross-reference.

          Section 4 Amends s. 403.973, F.S.; conforming a cross-references.

5 S. 366.91(3), F.S.
6 Id.
7 There are 33 municipal electric (public power) utilities in the state, which serve approximately 3 million people or 14

percent of Florida’s population. Municipal utilities are not-for-profit and governed by an elected city commission, or an
appointed or elected utility board. They raise capital through operating revenues or the sale of tax-exempt bonds. See
Florida Municipal Electric Association, Florida Municipal Utility Map, https://www.publicpower.com/florida-municipal-utility-
map (last visited Mar. 5, 2021).
8 Rural electric cooperatives are cooperative, nonprofit membership corporations organized under ch. 425, F.S., for the

purpose of supplying electric energy and promoting and extending the use thereof in rural areas. Florida has 16
distribution cooperatives and 2 generation and transmission cooperatives that supply electricity to more than 2.7 million
Floridians in 57 of Florida’s 67 counties. Cooperatives are owned by the members they serve and provide at-cost electric
service to their consumer-members. See Florida Electric Cooperatives Association, About, https://feca.com/about/ (last
visited Mar. 5, 2021).
9 S. 366.91(4), F.S.
10 S. 366.91(8), F.S.
STORAGE NAME: h0539d.COM                                                                                               PAGE: 3
DATE: 4/2/2021
       Section 5 Reenacts s. 288.9606(7), F.S.; relating to the issuance of revenue bonds, to incorporate
                 the amendments made by the bill.

       Section 6 Provides an effective date of July 1, 2021.


                           II. FISCAL ANALYSIS & ECONOMIC IMPACT STATEMENT

   A. FISCAL IMPACT ON STATE GOVERNMENT:

       1. Revenues:
           None.

       2. Expenditures:
           None.

   B. FISCAL IMPACT ON LOCAL GOVERNMENTS:

       1. Revenues:
           None.

       2. Expenditures:
           None.

   C. DIRECT ECONOMIC IMPACT ON PRIVATE SECTOR:
       The bill may have a positive economic impact on the producers of renewable natural gas if the PSC
       approves cost recovery for a gas public utility’s contract for renewable natural gas.

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

       2. Other:
         None.

   B. RULE-MAKING AUTHORITY:
       None.

   C. DRAFTING ISSUES OR OTHER COMMENTS:
       None.


STORAGE NAME: h0539d.COM                                                                                 PAGE: 4
DATE: 4/2/2021
                           IV. AMENDMENTS/ COMMITTEE SUBSTITUTE CHANGES
   On March 23, 2021, the Environment, Agriculture & Flooding Subcommittee adopted an amendment and
   reported the bill favorably as a committee substitute. The amendment revised the definition of “renewable
   energy” and authorized the PSC to approve cost recovery by a public gas utility for contracts for certain
   purchases.

   This analysis is drafted to the committee substitute as approved by the Environment, Agriculture &
   Flooding Subcommittee.




STORAGE NAME: h0539d.COM                                                                                PAGE: 5
DATE: 4/2/2021
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




           CS/HB 539                                                                                            2021




    1                                         A bill to be entitled
    2              An act relating to renewable energy; amending s.
    3              366.91, F.S.; defining the terms "biogas" and
    4              "renewable natural gas"; revising the definition of
    5              the term "renewable energy"; authorizing the Public
    6              Service Commission to approve cost recovery by gas
    7              public utilities for contracts for the purchase of
    8              renewable natural gas if specified conditions are met;
    9              amending s. 366.92, F.S.; revising the definition of
10                 the term "renewable energy" to include renewable
11                 natural gas; amending ss. 373.236, and 403.973, F.S.;
12                 conforming cross-references; reenacting s.
13                 288.9606(7), F.S., relating to the issuance of revenue
14                 bonds, to incorporate the amendments made by the act;
15                 providing an effective date.
16
17         Be It Enacted by the Legislature of the State of Florida:
18
19                 Section 1.         Present paragraphs (a) through (d) of
20         subsection (2) of section 366.91, Florida Statutes, are
21         redesignated as paragraphs (b) through (e), respectively, a new
22         paragraph (a) and paragraph (f) are added to that subsection,
23         present paragraph (d) of that subsection is amended, and
24         subsection (9) is added to that section to read:
25                 366.91       Renewable energy.—

                                                         Page 1 of 5

        CODING: Words stricken are deletions; words underlined are additions.
                                                                                                            hb0539-01-c1
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 539                                                                                            2021




26              (2)     As used in this section, the term:
27              (a)     "Biogas" means a mixture of carbon dioxide and
28      hydrocarbons, primarily methane gas, which is released from the
29      biological decomposition of organic materials.
30              (e)(d)       "Renewable energy" means electrical energy produced
31      from a method that uses one or more of the following fuels or
32      energy sources: hydrogen produced or resulting from sources
33      other than fossil fuels, biomass, solar energy, geothermal
34      energy, wind energy, ocean energy, and hydroelectric power. The
35      term includes the alternative energy resource, waste heat, from
36      sulfuric acid manufacturing operations and electrical energy
37      produced using pipeline-quality synthetic gas produced from
38      waste petroleum coke with carbon capture and sequestration.
39              (f)     "Renewable natural gas" means anaerobically-generated
40      biogas, landfill gas, or waste-water treatment gas refined to a
41      methane content of 90 percent or greater which is capable of
42      being used as transportation fuel, for electric power
43      generation, or is of a quality capable of being injected into a
44      natural gas pipeline.
45              (9)     The commission may approve cost recovery by a gas
46      public utility for contracts for the purchase of renewable
47      natural gas in which the pricing provisions exceed the current
48      market price of natural gas, but which are otherwise deemed
49      reasonable and prudent by the commission.
50              Section 2.         Paragraph (b) of subsection (2) of section

                                                      Page 2 of 5

     CODING: Words stricken are deletions; words underlined are additions.
                                                                                                         hb0539-01-c1
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 539                                                                                            2021




51      366.92, Florida Statutes, is amended to read:
52              366.92       Florida renewable energy policy.—
53              (2)     As used in this section, the term:
54              (b)     "Renewable energy" means renewable energy and
55      renewable natural gas as those terms are as defined in s.
56      366.91(2) s. 366.91(2)(d).
57              Section 3.         Subsection (7) of section 373.236, Florida
58      Statutes, is amended to read:
59              373.236       Duration of permits; compliance reports.—
60              (7)     A permit approved for a renewable energy generating
61      facility or the cultivation of agricultural products on lands
62      consisting of 1,000 acres or more for use in the production of
63      renewable energy, as defined in s. 366.91(2) s. 366.91(2)(d),
64      shall be granted for a term of at least 25 years at the
65      applicant's request based on the anticipated life of the
66      facility if there is sufficient data to provide reasonable
67      assurance that the conditions for permit issuance will be met
68      for the duration of the permit; otherwise, a permit may be
69      issued for a shorter duration that reflects the longest period
70      for which such reasonable assurances are provided. Such a permit
71      is subject to compliance reports under subsection (4).
72              Section 4.         Paragraph (f) of subsection (3) and paragraph
73      (b) of subsection (19) of section 403.973, Florida Statutes, are
74      amended to read:
75              403.973       Expedited permitting; amendments to comprehensive

                                                      Page 3 of 5

     CODING: Words stricken are deletions; words underlined are additions.
                                                                                                         hb0539-01-c1
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 539                                                                                            2021




76       plans.—
77               (3)
78               (f)      Projects resulting in the production of biofuels
79       cultivated on lands that are 1,000 acres or more or in the
80       construction of a biofuel or biodiesel processing facility or a
81       facility generating renewable energy, as defined in s. 366.91(2)
82       s. 366.91(2)(d), are eligible for the expedited permitting
83       process.
84               (19)        The following projects are ineligible for review
85       under this part:
86               (b)      A project, the primary purpose of which is to:
87               1.      Effect the final disposal of solid waste, biomedical
88       waste, or hazardous waste in this state.
89               2.      Produce electrical power, unless the production of
90       electricity is incidental and not the primary function of the
91       project or the electrical power is derived from a fuel source
92       for renewable energy as defined in s. 366.91(2) s. 366.91(2)(d).
93               3.      Extract natural resources.
94               4.      Produce oil.
95               5.      Construct, maintain, or operate an oil, petroleum, or
96       sewage pipeline.
97               Section 5.         For the purpose of incorporating the amendment
98       made by this act to section 366.91, Florida Statutes, in a
99       reference thereto, subsection (7) of section 288.9606, Florida
100      Statutes, is reenacted to read:

                                                       Page 4 of 5

      CODING: Words stricken are deletions; words underlined are additions.
                                                                                                          hb0539-01-c1
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 539                                                                                            2021




101              288.9606          Issue of revenue bonds.—
102              (7)     Notwithstanding any provision of this section, the
103      corporation in its corporate capacity may, without authorization
104      from a public agency under s. 163.01(7), issue revenue bonds or
105      other evidence of indebtedness under this section to:
106              (a)     Finance the undertaking of any project within the
107      state that promotes renewable energy as defined in s. 366.91 or
108      s. 377.803;
109              (b)     Finance the undertaking of any project within the
110      state that is a project contemplated or allowed under s. 406 of
111      the American Recovery and Reinvestment Act of 2009; or
112              (c)     If permitted by federal law, finance qualifying
113      improvement projects within the state under s. 163.08.
114              Section 6.         This act shall take effect July 1, 2021.




                                                       Page 5 of 5

      CODING: Words stricken are deletions; words underlined are additions.
                                                                                                          hb0539-01-c1
                                COMMERCE COMMITTEE

                                 CS/HB 539 by Rep. Byrd
                                   Renewable Energy

                                AMENDMENT SUMMARY
                                    April 6, 2021


Amendment 1 by Rep. Byrd (line 32):
The amendment restores the current definition of renewable energy for certain purposes.
                                                COMMITTEE/SUBCOMMITTEE AMENDMENT
                                                      Bill No. CS/HB 539   (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 Byrd offered the following:
 3
 4          Amendment (with title amendment)
 5          Remove line 32 and insert:
 6     energy sources: hydrogen produced from sources
 7
 8             -----------------------------------------------------
 9                          T I T L E    A M E N D M E N T
10          Remove lines 4-5 and insert:
11     "renewable natural gas"; authorizing the Public




     360967 - h539-line32.docx
      Published On: 4/5/2021 6:17:56 PM
                                    Page 1 of 1
CS/HB 615
                                    HOUSE OF REPRESENTATIVES STAFF ANALYSIS
BILL #:     CS/HB 615 Community Association Assessment Notices
SPONSOR(S): Regulatory Reform Subcommittee, Rodriguez
TIED BILLS:       IDEN./SIM. BILLS: CS/SB 56

    REFERENCE                                                        ACTION                   ANALYST              STAFF DIRECTOR or
                                                                                                                   BUDGET/POLICY CHIEF

    1) Regulatory Reform Subcommittee                                16 Y, 0 N, As CS         Brackett             Anstead

    2) Civil Justice & Property Rights Subcommittee                  16 Y, 0 N                Mawn                 Jones

    3) Commerce Committee                                                                     Brackett             Hamon

                                                         SUMMARY ANALYSIS
A condominium is a form of ownership of real property comprised of units which may be owned by one or more
persons along with an undivided right of access to common elements. A cooperative is real property owned by
the cooperative association, with individual units leased to the residents who own shares in the cooperative
association. A homeowners’ association (“HOA”) is an association that is authorized to impose assessments,
responsible for the operation of a community in which voting membership is made up of unit or parcel owners
and membership is a mandatory condition of unit or parcel ownership. Condominium associations, cooperative
associations, and HOAs are collectively referred to as “associations.”

The bill relates to an association’s collection of assessments and notices to owners relating to such
assessments, it requires:
    Associations that send account statements or invoices to owners to send them by first-class mail or by
        email.
    Associations to deliver written notice to every owner at least 30 days before changing their method of
        delivering account statements.
    Owners to affirmatively acknowledge that they understand the association has changed its method of
        delivering account statements before a community association may change its method of delivery.
    Associations to maintain the owners’ affirmative acknowledgments as an official record.

The bill prohibits associations from collecting attorney fees related to delinquent assessments without first
delivering a written notice of the delinquent assessments to the unit or parcel owner.
     An association must deliver the written notice at least 30 days before the association takes further
        action against the owner’s unit or parcel.
     The written notice must specify the amount owed and provide the unit or parcel owner an opportunity to
        pay the delinquent assessments without paying attorney fees.
     There is a rebuttable presumption that an association mailed a notice of delinquent assessment if a
        board member, officer, agent of the association, or a licensed community association manager provides
        a sworn affidavit attesting to such mailing.

The bill also aligns condominium and cooperative law to HOA law by increasing the period of time a
condominium or cooperative unit owner has to pay a delinquent assessment after receiving an association's
notice of intent to record a lien or foreclose on a lien from 30 days to 45 days.

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

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 .
STORAGE NAME: h0615d.COM
DATE: 4/2/2021
                                                  FULL ANALYSIS

                                            I. SUBSTANTIVE ANALYSIS

    A. EFFECT OF PROPOSED CHANGES:
         Current Situation

         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 and
         arbitration, and developer disclosure. The Division has regulatory authority over the following business
         entities and individuals:

                 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).

         Condominiums

         A condominium is a form of ownership of real property created pursuant to ch. 718, F.S., comprised of
         units which may be owned by one or more persons along with an undivided right of access to common
         elements.1 A condominium is created by recording a declaration of condominium in the public records
         of the county where the condominium is located.2 A declaration governs the relationships among
         condominium unit owners and the condominium association. All unit owners are members of the
         condominium association, an entity responsible for the operation and maintenance of the common
         elements owned by the unit owners. The condominium association is overseen by an elected board of
         directors, commonly referred to as a “board of administration.” The board enacts bylaws which govern
         the administration of the association.

         Cooperatives

         A cooperative is a form of property ownership created pursuant to ch. 719, F.S. The real property is
         owned by the cooperative association, and individual units are leased to the residents who own shares
         in the cooperative association.3 The lease payment amount is the pro-rata share of the operational
         expenses of the cooperative. Cooperatives operate similarly to condominiums and the laws regulating
         cooperatives are in many instances nearly identical to those regulating condominiums.

         Homeowners’ Associations

         A homeowners’ association (HOA) is an association of residential property owners in which voting
         membership is made up of parcel owners, in which membership is a mandatory condition of parcel
         ownership, and which is authorized to impose assessments that, if unpaid, may become a lien on the
         parcel.4 Only HOAs whose covenants and restrictions include mandatory assessments are regulated by
         ch. 720, F.S. Like a condominium or cooperative, an HOA is administered by an elected board of
         directors. The powers and duties of an HOA includes the powers and duties provided in ch. 720, F.S.,
         and in the governing documents of the association, which include the recorded covenants and
         restrictions, together with the bylaws, articles of incorporation, and duly adopted amendments to those
         documents. No state agency has direct oversight of HOAs. However, Florida law provides procedures


1
  S. 718.103(11), F.S.
2
  S. 718.104(2), F.S.
3
  Ss. 719.103(2) and (26), F.S.
4
  S. 720.301(9), F.S.
STORAGE NAME: h0615d.COM                                                                                  PAGE: 2
DATE: 4/2/2021
         and minimum requirements for HOA operation and provides for a mandatory binding arbitration
         program, administered by the Division, only for certain election disputes.

         Official Records

         Condominiums, cooperatives, and HOAs (associations) are required to maintain official records for at
         least 7 years. The official records must include:5

                 A copy of the articles of incorporation, declaration, bylaws, and rules of the association;
                 Meeting minutes;
                 A roster of all owners or members, including the electronic mailing addresses and fax numbers
                  of unit owners consenting to receive notice by electronic transmission;
                 A copy of any contracts to which the association is a party or under which the association or the
                  unit owners or members have an obligation;
                 Accounting records for the association, which includes:
                       o Accurate, itemized, and detailed records of all receipts and expenditures.
                       o A current account and a periodic statement of the account for each unit or parcel
                           designating the name of the owner, the due date and amount of each assessment, the
                           amount paid on the account, and the balance due.
                       o All audits, reviews, accounting statements, and financial reports of the association or
                           condominium.
                       o All contracts for work to be performed. Bids for work to be performed are also
                           considered official records and must be maintained by the association.
                 All contracts for work to be performed, including bids for work, materials, and equipment.
                  Cooperatives and HOAs are only required to maintain bids for one year;
                 A copy of the plans, permits, warranties, and other items provided by the developer; and
                 All other written records which are related to the operation of the association.

         An association must maintain its official records within the state of Florida and make them available for
         inspection within 45 miles of the association or within the county where the association is located.6

         Unit owners may request to inspect and make copies of an association’s official records. An association
         must make the records available for inspection within 10 business days of receiving a written request.
         Failure to provide an owner or renter the requested records within 10 business days of receiving a
         request creates a rebuttable presumption that the association willfully failed to provide the records. An
         owner who is denied access to the records is entitled to damages and costs.7

         An association may adopt reasonable rules regarding the frequency, time, location, notice, and manner
         of record inspections. An association also has the option to make the official records available
         electronically via the Internet or in an electronic format viewable on a computer screen.8 Additionally,
         condominium associations with 150 or more units must maintain a website with digital copies of certain
         official records such as meeting notices, a copy of the articles of incorporation, declaration, bylaws, and
         rules of the association.9

         However, the following records are not available for inspection by owners:10

                 Records protected by the lawyer-client privilege;
                 Information obtained by an association in connection with the transfer of a unit or parcel;
                 Personnel records of association or management company employees;
                 Unit owner medical records;

5
  Ss. 718.111(12)(a), 719.104(2), and 720.303(4)-(5), F.S.
6
  Ss. 718.111(12)(b)-(c), 719.104(2)(b)-(c), and 720.303(5), F.S.
7
  Id.
8
  Id.
9
  Ss. 718.111(12)(b), and (g), F.S.
10
   Ss. 718.111(12)(c), 719.104(2)(c), and 720.303(5), F.S.
STORAGE NAME: h0615d.COM                                                                                        PAGE: 3
DATE: 4/2/2021
                 Personnel identifying information such as social security numbers, driver license numbers, and
                  credit card numbers;
                 Electronic security measures that are used to safeguard data; and
                 The software and operating system used by the association which allow the manipulation of
                  data.

         Statements of the Account

         A statement of the account11 is an account statement that details the outstanding amount that a unit or
         parcel owner owes to the association. Associations must maintain a current account and a periodic12
         statement of the account for each unit or parcel, which designates the name of the owner, the due date
         and amount of each assessment, the amount paid on the account, and the balance due.13

         Statements of the account for each unit or parcel owner are part of the official records, which are
         available for inspection.14 Associations may also deliver statements of the account or invoices for
         assessment to the unit or parcel owners. However, current law does not specify how an association
         must deliver statements of the account to owners or invoices for assessment, e.g., by regular mail or
         email. Current law also does not provide a process to notify unit or parcel owners, if an association
         alters its method of delivering statements of the account.

         Assessments

         Current law gives associations the ability to levy and collect assessments from unit or parcel owners.
         This allows the association to carry out its responsibility for the association’s management, operation,
         and maintenance.15 In addition to levying assessments, associations also have the power to establish
         the time when each assessment is due, including when an assessment becomes delinquent.16

         The most common assessments are those required to fund an association’s common expenses
         identified in an association’s annual budget. The amount to fund the common expenses and the
         assessments required to meet that amount are determined when an association’s budget is adopted.17
         In contrast, a special assessment is an assessment levied against unit or parcel owners for unexpected
         expenses that are over and above those anticipated by the annual budget.18

         When the amount of an assessment has been determined, the association must establish a payment
         schedule for the owners in accordance with the association’s bylaws. For condominium and
         cooperative associations, payments must be made in advance and they must be paid at least quarterly.
         The payments must be sufficient to provide the funds necessary to pay all the anticipated operating
         expenses and all unpaid expenses previously incurred.19

         A unit or parcel owner may not avoid paying assessments by waiving the use of common elements or
         services in the association. No unit or parcel owner may be relieved from liability for all or part of an
         assessment.20 Boards must keep account of the assessments levied against every unit or parcel owner

11
   A statement of the account is different from an estoppel certificate. An estoppel certificate issued by an association certifies the total
debt owed to the association for unpaid financial obligations by a parcel owner or unit owner as of a specified date. An association is
legally bound by the amount stated in the estoppel certificate. A unit or parcel purchaser or a mortgage holder who relies on an
estoppel certificate is protected from any assessments or other monies owed to the association that are not in the certificate. Ss.
718.116(8), 719.108(6), and 720.30851, F.S.
12
   Condominium and cooperative associations must maintain a monthly, bimonthly, or quarterly statement of the account. Ss.
718.111(12)(a), and 719.104(2), F.S.
13
   Ss. 718.111(12)(a), 719.104(2), and 720.303(4)-(5), F.S.
14
   Id.
15
   S. 718.111(4), 719.104(5), 720.301(1), and 720.308(1), F.S.
16
   See generally, ch. 718, 719, and 720, F.S.
17
   Ss. 718.103(1), 718.112(2)(f), 719.103(9), and 719.106(1)(j), and 720.303(6)(a), F.S.
18
   Ss. 718.103(24), 718.116(10), 719.103(23), 719.108(9), and 720.303(6), F.S.
19
   Ss. 718.112(2)(g), 719.106(1)(g), and 720.30851(1), F.S.
20
   Ss. 718.111(4), and 718.116(1)(a), 719.108(1), and 720.3085(2)(a), F.S.
STORAGE NAME: h0615d.COM                                                                                                             PAGE: 4
DATE: 4/2/2021
        and the assessments paid by every owner. These records are part of the association’s official
        records.21

        Liability for Assessments

        A unit or parcel owner is liable for all assessments coming due while he or she owns the unit or parcel.
        The unit or parcel serves as security for the payment of all assessments owed by an owner.22

        If a unit or parcel is sold, the buyer becomes jointly and severally liable with the seller for all unpaid
        assessments due prior to the time of the sale. The buyer may attempt to recover the unpaid
        assessments from the seller, but the association may look to both the seller and the buyer for the
        unpaid assessments.23

        Assessments that are not paid on time bear interest at a rate provided in the declaration, which may not
        be higher than the highest rate allowed by law, or at a rate of 18 percent per year if no rate is provided.
        Interest begins accruing the date a payment becomes delinquent. Additionally, an association may levy
        a late fee for any delinquent payment. The amount of the late fee may not exceed $25 or five percent of
        the payment, whichever is greater. Associations are entitled to recover any attorney fees and costs
        incurred in collecting delinquent payments.24

        If an association receives a payment for a delinquent assessment, the payment must first be applied to
        any accrued interest, then to any late fee, then to any attorney’s fees or costs, and finally to the
        principle balance of the assessment.25

        Currently, associations are not required to send a delinquent assessment notice prior to charging late
        fees, interest, or attorney fees. According to news reports, this can result in unit or parcel owners being
        charged attorney fees that exceed the delinquent assessment.26 According to industry blogs, allowing
        associations to collect attorney fees ensures associations are not left holding the bill when they take
        legal action.27 However, industry blogs also state that sending a delinquent assessment notice before
        taking any action against a unit or parcel owner can help remind owners of their payment obligation and
        the majority of owners make a payment upon receiving such notice.28

        Claim of Lien

        An association has a lien for all unpaid assessments, but not for unpaid fines29. An association may file
        a claim of lien for a delinquent assessment with the Clerk of Court in the county where the association
        is located. The claim of lien must state the legal description of the unit or parcel, the owner of the unit or
        parcel, the association’s name and address, and the assessment amount owed and the due date. An
        officer or agent of the association must sign the claim of lien. A filed claim of lien is valid for one year. 30

21
   Ss. 718.111(12)(a), 719.104(2), and 720.303(4)-(5), F.S.
22
   Ss. 718.111(4), and 718.116(1)(a), 719.108(1), and 720.3085(2)(a), F.S.
23
   Id.; Karpay v. Las Brisas Condominium Association, Inc., 517 So. 2d 756, 757 (Fla. 2nd DCA 1987).
24
   Ss. 718.116(3), 719.108(3), and 720.3085(3), F.S.
25
   Id.
26
   Fox 13 Tampa Bay, FOX 13 Investigates: HOA attorney fees a homeowner's nightmare, Fox 13 Tampa Bay (Jan. 20, 2016)
https://www.fox13news.com/news/fox-13-investigates-hoa-attorney-fees-a-homeowners-nightmare (last visited Mar. 26, 2021); Todd
Ulrich, ‘They put me through hell’: Homeowner battles HOA, gets thousands in settlement, WFTV (Feb. 16, 2021)
https://www.wftv.com/news/action9/they-put-me-through-hell-homeowner-battles-hoa-gets-thousands-
settlement/YD26MECEZVBTTMX7E3HOS7JT2I/ (last visited Mar. 26 2021).
27
   Jimerson Birr, Condominium Association Recovery of Attorneys’ Fees in Florida, Jimerson Birr, (Dec. 29, 2015)
https://www.jimersonfirm.com/blog/2015/12/condominium-association-recovery-of-attorneys-fees-in-florida/ (last visited Mar. 26,
2021).
28
   Jimerson Birr, Five Steps for Collecting Assessment Revenue Through a Condominium Assessment Lien, Jimerson Birr, (Aug. 9,
2018) https://www.jimersonfirm.com/blog/2018/08/florida-condominium-assessment-lien/ (last visited Mar. 26, 2021); Christopher R.
Moore, Step-By-Step Guide To The HOA Assessment Collections Process, Homeowners Protection Bureau, LLC,
https://www.hopb.co/blog/guide-to-hoa-assessment-collections-process#notice-of-delinquency (last visited Mar. 26, 2021).
29
   An HOA has a lien on a parcel for a fine that is $1,000 or more. S. 720.305(2), F.S.
30
   Ss. 718.116(5), and 718.303(3), 719.108(4), 720.301(1), and (11), 720.305(2), and 720.3085(1), F.S.F.S.
STORAGE NAME: h0615d.COM                                                                                                 PAGE: 5
DATE: 4/2/2021
        Prior to filing a claim of lien, an association must give a unit or parcel owner the opportunity to pay a
        delinquent assessment. At least 30 days before filing a claim of lien, a condominium or cooperative
        association must provide written notice of the association’s intent to file a lien to the unit owner.
        However, an HOA must provide a parcel owner the written notice at least 45 days before filing the
        claim of lien. The notice must include the following information:31

                The amount owed on the owner’s account;
                The interest rate for the amounts owed;
                A statement that the owner has 30 or 45 days to pay the amount owed or the association will file
                 a claim of lien against the unit or parcel; and
                A breakdown of the amount owed including:
                     o Maintenance costs due;
                     o Late fee;
                     o Interest; and
                     o Total amount owed.

        The notice must be sent by first class and certified mail to the owner’s address listed in the official
        records.32 If the address is different than the unit or parcel address, the notice must also be sent to the
        unit or parcel. If the address is different than the unit or parcel address and the address is outside the
        United States, the association may send the notice by first class mail, instead of first class and certified
        mail. Service is deemed delivered upon mailing the notice for condominium and cooperative
        associations.33

        A unit or parcel owner may challenge a claim of lien by filing a notice of contest of lien with the Clerk of
        Court. After a unit owner files a notice of contest, an association has 90 days to commence
        enforcement of the lien. The grounds for which a unit owner may not pay an assessment are limited,
        such as when the assessment is discriminatory or has been improperly levied by the board.34

        An association may bring an action to foreclose on a unit or parcel for unpaid assessments in circuit
        court in the same way that a mortgage on real estate is foreclosed. The homestead protections
        provided by Florida’s Constitution do not prevent the foreclosure and sale of a unit or parcel. In addition
        to an action of foreclosure, an association may also bring a civil action to recover a money judgment for
        the unpaid assessments without waiving any claim of lien.35

        Prior to foreclosing on a lien, a condominium association or an HOA must provide written notice to the
        owner of its intent to foreclose on the lien. A condominium association must provide the notice at least
        30 days before foreclosing on the lien. However, an HOA must give a parcel owner the written notice at
        least 45 days before foreclosing on the lien. The notice must include the following information:36

                A claim of lien has been filed against the owner’s property for failing to pay an assessment(s);
                The association intends to foreclose on the lien in 30 or 45 days;
                The total amount owed;
                The interest rate and the interest owed; and
                The contact information for the association’s attorney or representative.

        A condominium association must deliver the notice to the unit owner or mail the notice by certified mail
        to the unit owner’s last known address. Service is deemed delivered upon mailing the notice.37 The


31
   S. 718.121(4) and 718.108(4), 719.108(4), and 720.3085(4), F.S.
32
   A cooperative association is only required to send the written notice by certified mail. S. 719.108(4).
33
   Id.
34
   Ss. 718.116(5), 719.108(4), and 720.3085(1), F.S.; Coral Way Condominium Investments, Inc. v. 21/22 Condominium Ass’n, Inc.,
66 So. 3d 1038, 1041 (Fla. 3rd DCA 2011).
35
   S. 718.116(6)(a), 719.108(5), and 720.3085(1) F.S. Bessemer v. Gersten , 381 So. 2d 1344, 1347 (Fla. 1980).
36
   Ss. 718.116(6)(a) and 720.3085(5), F.S.
37
   Id.
STORAGE NAME: h0615d.COM                                                                                                  PAGE: 6
DATE: 4/2/2021
       notice must be sent by first class and certified mail to the owner’s address listed in the official records.
       If the address is different than the unit or parcel address, the notice must also be delivered to the unit or
       parcel. If the address is different than the unit or parcel address and the address is outside the United
       States, the association may send the notice by first class mail.

       Effect of the Bill

       The bill provides that if associations send statements of the account or invoices for assessments to
       their unit or parcel owners, they must send them by first class mail or email to the owner’s email
       address in the association’s official records.

       The bill also provides that, before an association changes the method of delivering the statement of the
       account or an invoice for assessments, the association must deliver written notice of such change to
       every unit or parcel owner and a unit or parcel owner must acknowledge the association is changing its
       method of delivery. An owner may make the acknowledgement in writing or electronically. The written
       notice must be:

              Delivered to the owner at least 30 days before the association uses the new delivery method to
               send the statement of the account; and
              Sent by first class mail to an owner’s address listed in the official records. If the address is
               different than the unit or parcel address, the notice must also be delivered to the unit or parcel
               owner by first class mail.
                    o Service is deemed delivered upon mailing the notice.

       The bill provides that a unit or parcel owner’s written acknowledgment becomes part of an association’s
       official records. However, the written acknowledgments are not available for inspection by the members
       of the association.

       The bill mirrors condominium and cooperative law to HOA law by increasing the period of time a:

              Condominium or cooperative association has to wait before filing a lien from 30 days after
               delivering the written notice of intent to file a lien to 45 days after delivering the notice; and
              Condominium has to wait before foreclosing on a lien from 30 days after delivering the written
               notice of intent to foreclose to 45 days after delivering the notice.

       The bill also provides that a condominium association must send the notice of intent to file a lien by
       certified and first class mail to the unit owner’s address regardless of whether the unit owner’s address
       is outside the United States.

       The bill provides that before an association can require payment of attorney fees related to a delinquent
       assessment, the association must deliver written notice of the delinquent assessment to the unit or
       parcel owner. If the owner pays the delinquent assessment within 30 days, the association may not
       assess attorney fees. The written notice must include the following information:

              The amount owed on the owner’s account;
              The interest rate for the amounts owed;
              A statement that the owner has 30 days to pay the amount owed or the association will take
               further collection action against the owner’s property in 30 days;
              A breakdown of the amount owed including:
                   o Maintenance costs due;
                   o Late fee;
                   o Interest; and
                   o Total amount owed.

       The bill requires that the written notice must be sent by first class mail to an owner’s address listed in
       the official records. If the address is different than the unit or parcel address, the notice must also be
       mailed to the unit or parcel by first class mail. Service is deemed delivered upon mailing the notice.
STORAGE NAME: h0615d.COM                                                                                     PAGE: 7
DATE: 4/2/2021
        The bill creates a rebuttable presumption that an association mailed the notice of a delinquent
        assessment if a board member, officer, agent of the association, or a licensed community association
        manager38 provides a sworn affidavit attesting to such mailing.

     B. SECTION DIRECTORY:
        Section 1.       Amends s. 718.111, F.S., adding documents that are a part of a condominium
                         association’s official records.

        Section 2.       Amends s. 718.116, F.S., extending the time a condominium association must wait until
                         it forecloses on a lien.

        Section 3.       Amends s. 718.121, F.S., relating to payments for assessments and lien claims.

        Section 4.       Amends s. 719.104, F.S., adding documents that are a part of a cooperative
                         association’s official records.

        Section 5.       Amends 719.108, F.S., relating to payments for assessments and lien claims.

        Section 6.       Amends s. 720.303, F.S., adding documents that are a part of a HOA’s official records.

        Section 7.       Amends s. 720.3085, F.S., relating to payments for assessments and lien claims.

        Section 8.       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 additional notice requirements, restrictions on collecting attorney fees, and increased notice period
        for a claim of lien may provide a net positive fiscal impact for association residents.

     D. FISCAL COMMENTS:
        None.

38
  Management companies and managers of residential condominiums with more than ten units or having an annual budget in excess
of $100,000 are required to have a community association manager license from DBPR. The Community Association Management
Practice Act governs the licensure and regulation of community association managers. See part VIII of ch. 468, F.S.
STORAGE NAME: h0615d.COM                                                                                               PAGE: 8
DATE: 4/2/2021
                                               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 expenditures of funds; reduce the authority that counties or municipalities have
         to raise revenues in the aggregate; or reduce the percentage of state tax shared with counties or
         municipalities.

       2. Other:
         None.

   B. RULE-MAKING AUTHORITY:
       None.

   C. DRAFTING ISSUES OR OTHER COMMENTS:
       None.


                           IV. AMENDMENTS/ COMMITTEE SUBSTITUTE CHANGES
   On March 8, 2021, the Regulatory Reform Subcommittee adopted a strike-all amendment and reported the
   bill favorably as a committee substitute. The committee substitute:
         Specifies that if associations provide account statements to their unit or parcel owners, they must
            comply with the delivery requirements in the bill.
         Creates a rebuttable presumption that an association mailed a notice of a delinquent assessment if
            a board member, officer, agent of the association, or a licensed community association manager
            provides a sworn affidavit attesting to such mailing.

   The analysis is drafted to the committee substitute as passed by the Regulatory Reform Subcommittee.




STORAGE NAME: h0615d.COM                                                                                 PAGE: 9
DATE: 4/2/2021
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




           CS/HB 615                                                                                            2021




    1                                         A bill to be entitled
    2              An act relating to community association assessment
    3              notices; amending s. 718.111, F.S.; requiring
    4              condominium associations to maintain specified
    5              affirmative acknowledgments as official records of the
    6              association; specifying that such acknowledgments are
    7              not accessible to unit owners; amending s. 718.116,
    8              F.S.; revising timeframes for foreclosure judgments;
    9              conforming provisions to changes made by the act;
10                 amending s. 718.121, F.S.; requiring condominium
11                 associations to deliver certain invoices for
12                 assessments or statements of account to unit owners in
13                 a specified manner; requiring condominium associations
14                 to give notice to unit owners before changing the
15                 method of delivery for invoices for assessments or
16                 statements of account; providing requirements for the
17                 notice; requiring unit owners to affirmatively
18                 acknowledge the changes in delivery methods;
19                 prohibiting condominium associations from requiring
20                 the payment of attorney fees relating to past due
21                 assessments without first providing a specified notice
22                 to unit owners; establishing a rebuttable presumption
23                 relating to the mailing of such notice; providing
24                 requirements for the notice; revising the timeframe
25                 for condominium associations to file liens against

                                                         Page 1 of 39

        CODING: Words stricken are deletions; words underlined are additions.
                                                                                                            hb0615-01-c1
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 615                                                                                            2021




26              condominium units; conforming provisions to changes
27              made by the act; amending s. 719.104, F.S.; requiring
28              cooperative associations to maintain specified
29              affirmative acknowledgments as official records of the
30              association; specifying that such acknowledgments are
31              not accessible to unit owners; amending s. 719.108,
32              F.S.; requiring cooperative associations to deliver
33              certain invoices for assessments or statements of
34              account to unit owners in a specified manner;
35              requiring cooperative associations to give notice to
36              unit owners before changing the method of delivery for
37              invoices for assessments or statements of account;
38              providing requirements for the notice; requiring unit
39              owners to affirmatively acknowledge the changes in
40              delivery methods; prohibiting cooperative associations
41              from requiring the payment of attorney fees relating
42              to past due assessments without first providing
43              specified notice to unit owners; establishing a
44              rebuttable presumption relating to the mailing of such
45              notice; providing requirements for the notice;
46              revising the timeframe for cooperative associations to
47              file liens against cooperative parcels; conforming
48              provisions to changes made by the act; amending s.
49              720.303, F.S.; requiring homeowners' associations to
50              maintain specified affirmative acknowledgments as

                                                      Page 2 of 39

     CODING: Words stricken are deletions; words underlined are additions.
                                                                                                         hb0615-01-c1
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 615                                                                                            2021




51              official records of the association; specifying that
52              such acknowledgments are not accessible to parcel
53              owners; amending s. 720.3085, F.S.; requiring
54              homeowners' associations to deliver certain invoices
55              for assessments or statements of account to parcel
56              owners in a specified manner; requiring homeowners'
57              associations to give notice to parcel owners before
58              changing the method of delivery for invoices for
59              assessments or statements of account; providing
60              requirements for the notice; requiring parcel owners
61              to affirmatively acknowledge the changes in delivery
62              methods; prohibiting homeowners' associations from
63              requiring the payment of attorney fees relating to
64              past due assessments without first providing specified
65              notice to parcel owners; establishing a rebuttable
66              presumption relating to the mailing of such notice;
67              providing requirements for the notice; providing an
68              effective date.
69
70      Be It Enacted by the Legislature of the State of Florida:
71
72              Section 1.         Paragraphs (a) and (c) of subsection (12) of
73      section 718.111, Florida Statutes, are amended to read:
74              718.111       The association.—
75              (12)        OFFICIAL RECORDS.—

                                                      Page 3 of 39

     CODING: Words stricken are deletions; words underlined are additions.
                                                                                                         hb0615-01-c1
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 615                                                                                            2021




76               (a)      From the inception of the association, the association
77       shall maintain each of the following items, if applicable, which
78       constitutes the official records of the association:
79               1.      A copy of the plans, permits, warranties, and other
80       items provided by the developer pursuant to s. 718.301(4).
81               2.      A photocopy of the recorded declaration of condominium
82       of each condominium operated by the association and each
83       amendment to each declaration.
84               3.      A photocopy of the recorded bylaws of the association
85       and each amendment to the bylaws.
86               4.      A certified copy of the articles of incorporation of
87       the association, or other documents creating the association,
88       and each amendment thereto.
89               5.      A copy of the current rules of the association.
90               6.      A book or books that contain the minutes of all
91       meetings of the association, the board of administration, and
92       the unit owners.
93               7.      A current roster of all unit owners and their mailing
94       addresses, unit identifications, voting certifications, and, if
95       known, telephone numbers. The association shall also maintain
96       the e-mail addresses and facsimile numbers of unit owners
97       consenting to receive notice by electronic transmission. The e-
98       mail addresses and facsimile numbers are not accessible to unit
99       owners if consent to receive notice by electronic transmission
100      is not provided in accordance with sub-subparagraph (c)3.e.

                                                       Page 4 of 39

      CODING: Words stricken are deletions; words underlined are additions.
                                                                                                          hb0615-01-c1
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 615                                                                                            2021




101      However, the association is not liable for an inadvertent
102      disclosure of the e-mail address or facsimile number for
103      receiving electronic transmission of notices.
104              8.      All current insurance policies of the association and
105      condominiums operated by the association.
106              9.      A current copy of any management agreement, lease, or
107      other contract to which the association is a party or under
108      which the association or the unit owners have an obligation or
109      responsibility.
110              10.      Bills of sale or transfer for all property owned by
111      the association.
112              11.      Accounting records for the association and separate
113      accounting records for each condominium that the association
114      operates. Any person who knowingly or intentionally defaces or
115      destroys such records, or who knowingly or intentionally fails
116      to create or maintain such records, with the intent of causing
117      harm to the association or one or more of its members, is
118      personally subject to a civil penalty pursuant to s.
119      718.501(1)(d). The accounting records must include, but are not
120      limited to:
121              a.      Accurate, itemized, and detailed records of all
122      receipts and expenditures.
123              b.      A current account and a monthly, bimonthly, or
124      quarterly statement of the account for each unit designating the
125      name of the unit owner, the due date and amount of each

                                                       Page 5 of 39

      CODING: Words stricken are deletions; words underlined are additions.
                                                                                                          hb0615-01-c1
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 615                                                                                            2021




126      assessment, the amount paid on the account, and the balance due.
127              c.      All audits, reviews, accounting statements, and
128      financial reports of the association or condominium.
129              d.      All contracts for work to be performed. Bids for work
130      to be performed are also considered official records and must be
131      maintained by the association.
132              12.      Ballots, sign-in sheets, voting proxies, and all other
133      papers and electronic records relating to voting by unit owners,
134      which must be maintained for 1 year from the date of the
135      election, vote, or meeting to which the document relates,
136      notwithstanding paragraph (b).
137              13.      All rental records if the association is acting as
138      agent for the rental of condominium units.
139              14.      A copy of the current question and answer sheet as
140      described in s. 718.504.
141              15.      All other written records of the association not
142      specifically included in the foregoing which are related to the
143      operation of the association.
144              15.16.       A copy of the inspection report as described in s.
145      718.301(4)(p).
146              16.17.       Bids for materials, equipment, or services.
147              17.      All affirmative acknowledgments made pursuant to s.
148      718.121(4)(c).
149              18.      All other written records of the association not
150      specifically included in the foregoing which are related to the

                                                       Page 6 of 39

      CODING: Words stricken are deletions; words underlined are additions.
                                                                                                          hb0615-01-c1
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 615                                                                                            2021




151      operation of the association.
152              (c)1.       The official records of the association are open to
153      inspection by any association member or the authorized
154      representative of such member at all reasonable times. The right
155      to inspect the records includes the right to make or obtain
156      copies, at the reasonable expense, if any, of the member or
157      authorized representative of such member. A renter of a unit has
158      a right to inspect and copy the association's bylaws and rules.
159      The association may adopt reasonable rules regarding the
160      frequency, time, location, notice, and manner of record
161      inspections and copying. The failure of an association to
162      provide the records within 10 working days after receipt of a
163      written request creates a rebuttable presumption that the
164      association willfully failed to comply with this paragraph. A
165      unit owner who is denied access to official records is entitled
166      to the actual damages or minimum damages for the association's
167      willful failure to comply. Minimum damages are $50 per calendar
168      day for up to 10 days, beginning on the 11th working day after
169      receipt of the written request. The failure to permit inspection
170      entitles any person prevailing in an enforcement action to
171      recover reasonable attorney fees from the person in control of
172      the records who, directly or indirectly, knowingly denied access
173      to the records.
174              2.      Any person who knowingly or intentionally defaces or
175      destroys accounting records that are required by this chapter to

                                                       Page 7 of 39

      CODING: Words stricken are deletions; words underlined are additions.
                                                                                                          hb0615-01-c1
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 615                                                                                            2021




176      be maintained during the period for which such records are
177      required to be maintained, or who knowingly or intentionally
178      fails to create or maintain accounting records that are required
179      to be created or maintained, with the intent of causing harm to
180      the association or one or more of its members, is personally
181      subject to a civil penalty pursuant to s. 718.501(1)(d).
182              3.      The association shall maintain an adequate number of
183      copies of the declaration, articles of incorporation, bylaws,
184      and rules, and all amendments to each of the foregoing, as well
185      as the question and answer sheet as described in s. 718.504 and
186      year-end financial information required under this section, on
187      the condominium property to ensure their availability to unit
188      owners and prospective purchasers, and may charge its actual
189      costs for preparing and furnishing these documents to those
190      requesting the documents. An association shall allow a member or
191      his or her authorized representative to use a portable device,
192      including a smartphone, tablet, portable scanner, or any other
193      technology capable of scanning or taking photographs, to make an
194      electronic copy of the official records in lieu of the
195      association's providing the member or his or her authorized
196      representative with a copy of such records. The association may
197      not charge a member or his or her authorized representative for
198      the use of a portable device. Notwithstanding this paragraph,
199      the following records are not accessible to unit owners:
200              a.      Any record protected by the lawyer-client privilege as

                                                       Page 8 of 39

      CODING: Words stricken are deletions; words underlined are additions.
                                                                                                          hb0615-01-c1
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 615                                                                                            2021




201      described in s. 90.502 and any record protected by the work-
202      product privilege, including a record prepared by an association
203      attorney or prepared at the attorney's express direction, which
204      reflects a mental impression, conclusion, litigation strategy,
205      or legal theory of the attorney or the association, and which
206      was prepared exclusively for civil or criminal litigation or for
207      adversarial administrative proceedings, or which was prepared in
208      anticipation of such litigation or proceedings until the
209      conclusion of the litigation or proceedings.
210              b.      Information obtained by an association in connection
211      with the approval of the lease, sale, or other transfer of a
212      unit.
213              c.      Personnel records of association or management company
214      employees, including, but not limited to, disciplinary, payroll,
215      health, and insurance records. For purposes of this sub-
216      subparagraph, the term "personnel records" does not include
217      written employment agreements with an association employee or
218      management company, or budgetary or financial records that
219      indicate the compensation paid to an association employee.
220              d.      Medical records of unit owners.
221              e.      Social security numbers, driver license numbers, credit
222      card numbers, e-mail addresses, telephone numbers, facsimile
223      numbers, emergency contact information, addresses of a unit
224      owner other than as provided to fulfill the association's notice
225      requirements, and other personal identifying information of any

                                                       Page 9 of 39

      CODING: Words stricken are deletions; words underlined are additions.
                                                                                                          hb0615-01-c1
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 615                                                                                            2021




226      person, excluding the person's name, unit designation, mailing
227      address, property address, and any address, e-mail address, or
228      facsimile number provided to the association to fulfill the
229      association's notice requirements. Notwithstanding the
230      restrictions in this sub-subparagraph, an association may print
231      and distribute to parcel owners a directory containing the name,
232      parcel address, and all telephone numbers of each parcel owner.
233      However, an owner may exclude his or her telephone numbers from
234      the directory by so requesting in writing to the association. An
235      owner may consent in writing to the disclosure of other contact
236      information described in this sub-subparagraph. The association
237      is not liable for the inadvertent disclosure of information that
238      is protected under this sub-subparagraph if the information is
239      included in an official record of the association and is
240      voluntarily provided by an owner and not requested by the
241      association.
242              f.      Electronic security measures that are used by the
243      association to safeguard data, including passwords.
244              g.      The software and operating system used by the
245      association which allow the manipulation of data, even if the
246      owner owns a copy of the same software used by the association.
247      The data is part of the official records of the association.
248              h.      All affirmative acknowledgments made pursuant to s.
249      718.121(4)(c).
250              Section 2.         Paragraph (b) of subsection (6) of section

                                                      Page 10 of 39

      CODING: Words stricken are deletions; words underlined are additions.
                                                                                                          hb0615-01-c1
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 615                                                                                            2021




251      718.116, Florida Statutes, is amended to read:
252              718.116       Assessments; liability; lien and priority;
253      interest; collection.—
254              (6)
255              (b)     No foreclosure judgment may be entered until at least
256      45 30 days after the association gives written notice to the
257      unit owner of its intention to foreclose its lien to collect the
258      unpaid assessments. The notice must be in substantially the
259      following form:
260
261                                         DELINQUENT ASSESSMENT
262
263              This letter is to inform you a Claim of Lien has been
264              filed against your property because you have not paid
265              the ...(type of assessment)... assessment to ...(name
266              of association).... The association intends to
267              foreclose the lien and collect the unpaid amount
268              within 45 30 days of this letter being provided to
269              you.
270
271              You owe the interest accruing from ...(month/year)...
272              to the present. As of the date of this letter, the
273              total amount due with interest is $..... All costs of
274              any action and interest from this day forward will
275              also be charged to your account.

                                                      Page 11 of 39

      CODING: Words stricken are deletions; words underlined are additions.
                                                                                                          hb0615-01-c1
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 615                                                                                            2021




276
277              Any questions concerning this matter should be
278              directed to ...(insert name, addresses, and telephone
279              numbers of association representative)....
280
281      If this notice is not given at least 45 30 days before the
282      foreclosure action is filed, and if the unpaid assessments,
283      including those coming due after the claim of lien is recorded,
284      are paid before the entry of a final judgment of foreclosure,
285      the association shall not recover attorney attorney's fees or
286      costs. The notice must be given by delivery of a copy of it to
287      the unit owner or by certified or registered mail, return
288      receipt requested, addressed to the unit owner at his or her
289      last known address; and, upon such mailing, the notice shall be
290      deemed to have been given, and the court shall proceed with the
291      foreclosure action and may award attorney attorney's fees and
292      costs as permitted by law. The notice requirements of this
293      subsection are satisfied if the unit owner records a notice of
294      contest of lien as provided in subsection (5). The notice
295      requirements of this subsection do not apply if an action to
296      foreclose a mortgage on the condominium unit is pending before
297      any court; if the rights of the association would be affected by
298      such foreclosure; and if actual, constructive, or substitute
299      service of process has been made on the unit owner.
300              Section 3.         Subsection (4) of section 718.121, Florida

                                                      Page 12 of 39

      CODING: Words stricken are deletions; words underlined are additions.
                                                                                                          hb0615-01-c1
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 615                                                                                            2021




301      Statutes, is amended, and subsections (5) and (6) are added to
302      that section, to read:
303              718.121       Liens.—
304              (4)(a)       If an association sends an invoice for assessments
305      or a unit's statement of the account described in s.
306      718.111(12)(a)11.b., the invoice for assessments or the unit's
307      statement of account must be delivered to the unit owner by
308      first-class United States mail or by electronic transmission to
309      the unit owner's e-mail address maintained in the association's
310      official records.
311              (b)     Before changing the method of delivery for an invoice
312      for assessments or the statement of the account, the association
313      must deliver a written notice of such change to each unit owner.
314      The written notice must be delivered to the unit owner at least
315      30 days before the association sends an invoice for assessments
316      or the statement of the account by the new delivery method. The
317      notice must be sent by first-class United States mail to the
318      unit owner at his or her last address as reflected in the
319      association's records and, if such address is not the unit
320      address, must be sent by first-class United States mail to the
321      unit address. Notice is deemed to have been delivered upon
322      mailing as required by this paragraph.
323              (c)     A unit owner must affirmatively acknowledge his or her
324      understanding that the association will change its method of
325      delivery of an invoice for assessments or the unit's statement

                                                      Page 13 of 39

      CODING: Words stricken are deletions; words underlined are additions.
                                                                                                          hb0615-01-c1
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 615                                                                                            2021




326      of the account before the association may change the method of
327      delivering an invoice for assessments or the statement of the
328      account. The unit owner may make the affirmative acknowledgment
329      electronically or in writing.
330              (5)     An association may not require payment of attorney
331      fees related to a past due assessment without first delivering a
332      written notice of late assessment to the unit owner which
333      specifies the amount owed the association and provides the unit
334      owner an opportunity to pay the amount owed without the
335      assessment of attorney fees. The notice of late assessment must
336      be sent by first-class United States mail to the unit owner at
337      his or her last address as reflected in the association's
338      records and, if such address is not the unit address, must also
339      be sent by first-class United States mail to the unit address.
340      Notice is deemed to have been delivered upon mailing as required
341      by this subsection. A rebuttable presumption that an association
342      mailed a notice in accordance with this subsection is
343      established if a board member, officer, or agent of the
344      association, or a manager licensed under part VIII of chapter
345      468, provides a sworn affidavit attesting to such mailing. The
346      notice must be in substantially the following form:
347
348                                        NOTICE OF LATE ASSESSMENT
349
350              RE: Unit .... of ...(name of association)...

                                                      Page 14 of 39

      CODING: Words stricken are deletions; words underlined are additions.
                                                                                                          hb0615-01-c1
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 615                                                                                            2021




351
352              The following amounts are currently due on your
353              account to ...(name of association)..., and must be
354              paid within 30 days of the date of this letter. This
355              letter shall serve as the association's notice of its
356              intent to proceed with further collection action
357              against your property no sooner than 30 days of the
358              date of this letter, unless you pay in full the
359              amounts set forth below:
360
361              Maintenance due ...(dates)...                                                    $.....
362              Late fee, if applicable                                                          $.....
363              Interest through ...(dates)...*                                                  $.....
364              TOTAL OUTSTANDING                                                                $.....
365
366              *Interest accrues at the rate of .... percent per annum.
367              (6)     Except as otherwise provided in this chapter, no lien
368      may be filed by the association against a condominium unit until
369      45 30 days after the date on which a notice of intent to file a
370      lien has been delivered to the owner by registered or certified
371      mail, return receipt requested, and by first-class United States
372      mail to the owner at his or her last address as reflected in the
373      association's records and, if such address is not the unit
374      address, by first-class United States mail to the unit address
375      of the association, if the address is within the United States,

                                                      Page 15 of 39

      CODING: Words stricken are deletions; words underlined are additions.
                                                                                                          hb0615-01-c1
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 615                                                                                            2021




376      and delivered to the owner at the address of the unit if the
377      owner's address as reflected in the records of the association
378      is not the unit address. If the address reflected in the records
379      is outside the United States, sending the notice to that address
380      and to the unit address by first-class United States mail is
381      sufficient. Delivery of the notice shall be deemed given upon
382      mailing as required by this subsection. The notice must be in
383      substantially the following form:
384
385                                             NOTICE OF INTENT
386                                        TO RECORD A CLAIM OF LIEN
387
388              RE: Unit .... of ...(name of association)...
389
390              The following amounts are currently due on your
391              account to ...(name of association)..., and must be
392              paid within 45 30 days after your receipt of this
393              letter. This letter shall serve as the association's
394              notice of intent to record a Claim of Lien against
395              your property no sooner than 45 30 days after your
396              receipt of this letter, unless you pay in full the
397              amounts set forth below:
398
399              Maintenance due ...(dates)...                                                    $.....
400              Late fee, if applicable                                                          $.....

                                                      Page 16 of 39

      CODING: Words stricken are deletions; words underlined are additions.
                                                                                                          hb0615-01-c1
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 615                                                                                            2021




401              Interest through ...(dates)...*                                                  $.....
402              Certified mail charges                                                           $.....
403              Other costs                                                                      $.....
404              TOTAL OUTSTANDING                                                                $.....
405
406              *Interest accrues at the rate of .... percent per
407              annum.
408              Section 4.         Paragraphs (a) and (c) of subsection (2) of
409      section 719.104, Florida Statutes, are amended to read:
410              719.104       Cooperatives; access to units; records; financial
411      reports; assessments; purchase of leases.—
412              (2)      OFFICIAL RECORDS.—
413              (a)      From the inception of the association, the association
414      shall maintain a copy of each of the following, where
415      applicable, which shall constitute the official records of the
416      association:
417              1.      The plans, permits, warranties, and other items
418      provided by the developer pursuant to s. 719.301(4).
419              2.      A photocopy of the cooperative documents.
420              3.      A copy of the current rules of the association.
421              4.      A book or books containing the minutes of all meetings
422      of the association, of the board of directors, and of the unit
423      owners.
424              5.      A current roster of all unit owners and their mailing
425      addresses, unit identifications, voting certifications, and, if

                                                      Page 17 of 39

      CODING: Words stricken are deletions; words underlined are additions.
                                                                                                          hb0615-01-c1
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 615                                                                                            2021




426      known, telephone numbers. The association shall also maintain
427      the e-mail addresses and the numbers designated by unit owners
428      for receiving notice sent by electronic transmission of those
429      unit owners consenting to receive notice by electronic
430      transmission. The e-mail addresses and numbers provided by unit
431      owners to receive notice by electronic transmission shall be
432      removed from association records when consent to receive notice
433      by electronic transmission is revoked. However, the association
434      is not liable for an erroneous disclosure of the e-mail address
435      or the number for receiving electronic transmission of notices.
436              6.      All current insurance policies of the association.
437              7.      A current copy of any management agreement, lease, or
438      other contract to which the association is a party or under
439      which the association or the unit owners have an obligation or
440      responsibility.
441              8.      Bills of sale or transfer for all property owned by the
442      association.
443              9.      Accounting records for the association and separate
444      accounting records for each unit it operates, according to good
445      accounting practices. The accounting records shall include, but
446      not be limited to:
447              a.      Accurate, itemized, and detailed records of all
448      receipts and expenditures.
449              b.      A current account and a monthly, bimonthly, or
450      quarterly statement of the account for each unit designating the

                                                      Page 18 of 39

      CODING: Words stricken are deletions; words underlined are additions.
                                                                                                          hb0615-01-c1
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 615                                                                                            2021




451      name of the unit owner, the due date and amount of each
452      assessment, the amount paid upon the account, and the balance
453      due.
454              c.      All audits, reviews, accounting statements, and
455      financial reports of the association.
456              d.      All contracts for work to be performed. Bids for work
457      to be performed shall also be considered official records and
458      shall be maintained for a period of 1 year.
459              10.      Ballots, sign-in sheets, voting proxies, and all other
460      papers and electronic records relating to voting by unit owners,
461      which shall be maintained for a period of 1 year after the date
462      of the election, vote, or meeting to which the document relates.
463              11.      All rental records where the association is acting as
464      agent for the rental of units.
465              12.      A copy of the current question and answer sheet as
466      described in s. 719.504.
467              13.     All affirmative acknowledgments made pursuant to s.
468      719.108(3)(b)3.
469              14.     All other written records of the association not
470      specifically included in the foregoing which are related to the
471      operation of the association.
472              (c)      The official records of the association are open to
473      inspection by any association member or the authorized
474      representative of such member at all reasonable times. The right
475      to inspect the records includes the right to make or obtain

                                                      Page 19 of 39

      CODING: Words stricken are deletions; words underlined are additions.
                                                                                                          hb0615-01-c1
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 615                                                                                            2021




476      copies, at the reasonable expense, if any, of the association
477      member. The association may adopt reasonable rules regarding the
478      frequency, time, location, notice, and manner of record
479      inspections and copying. The failure of an association to
480      provide the records within 10 working days after receipt of a
481      written request creates a rebuttable presumption that the
482      association willfully failed to comply with this paragraph. A
483      unit owner who is denied access to official records is entitled
484      to the actual damages or minimum damages for the association's
485      willful failure to comply. The minimum damages are $50 per
486      calendar day for up to 10 days, beginning on the 11th working
487      day after receipt of the written request. The failure to permit
488      inspection entitles any person prevailing in an enforcement
489      action to recover reasonable attorney fees from the person in
490      control of the records who, directly or indirectly, knowingly
491      denied access to the records. Any person who knowingly or
492      intentionally defaces or destroys accounting records that are
493      required by this chapter to be maintained during the period for
494      which such records are required to be maintained, or who
495      knowingly or intentionally fails to create or maintain
496      accounting records that are required to be created or
497      maintained, with the intent of causing harm to the association
498      or one or more of its members, is personally subject to a civil
499      penalty pursuant to s. 719.501(1)(d). The association shall
500      maintain an adequate number of copies of the declaration,

                                                      Page 20 of 39

      CODING: Words stricken are deletions; words underlined are additions.
                                                                                                          hb0615-01-c1
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 615                                                                                            2021




501      articles of incorporation, bylaws, and rules, and all amendments
502      to each of the foregoing, as well as the question and answer
503      sheet as described in s. 719.504 and year-end financial
504      information required by the department, on the cooperative
505      property to ensure their availability to unit owners and
506      prospective purchasers, and may charge its actual costs for
507      preparing and furnishing these documents to those requesting the
508      same. An association shall allow a member or his or her
509      authorized representative to use a portable device, including a
510      smartphone, tablet, portable scanner, or any other technology
511      capable of scanning or taking photographs, to make an electronic
512      copy of the official records in lieu of the association
513      providing the member or his or her authorized representative
514      with a copy of such records. The association may not charge a
515      member or his or her authorized representative for the use of a
516      portable device. Notwithstanding this paragraph, the following
517      records shall not be accessible to unit owners:
518              1.      Any record protected by the lawyer-client privilege as
519      described in s. 90.502 and any record protected by the work-
520      product privilege, including any record prepared by an
521      association attorney or prepared at the attorney's express
522      direction which reflects a mental impression, conclusion,
523      litigation strategy, or legal theory of the attorney or the
524      association, and which was prepared exclusively for civil or
525      criminal litigation or for adversarial administrative

                                                      Page 21 of 39

      CODING: Words stricken are deletions; words underlined are additions.
                                                                                                          hb0615-01-c1
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 615                                                                                            2021




526      proceedings, or which was prepared in anticipation of such
527      litigation or proceedings until the conclusion of the litigation
528      or proceedings.
529              2.      Information obtained by an association in connection
530      with the approval of the lease, sale, or other transfer of a
531      unit.
532              3.      Personnel records of association or management company
533      employees, including, but not limited to, disciplinary, payroll,
534      health, and insurance records. For purposes of this
535      subparagraph, the term "personnel records" does not include
536      written employment agreements with an association employee or
537      management company, or budgetary or financial records that
538      indicate the compensation paid to an association employee.
539              4.      Medical records of unit owners.
540              5.      Social security numbers, driver license numbers, credit
541      card numbers, e-mail addresses, telephone numbers, facsimile
542      numbers, emergency contact information, addresses of a unit
543      owner other than as provided to fulfill the association's notice
544      requirements, and other personal identifying information of any
545      person, excluding the person's name, unit designation, mailing
546      address, property address, and any address, e-mail address, or
547      facsimile number provided to the association to fulfill the
548      association's notice requirements. Notwithstanding the
549      restrictions in this subparagraph, an association may print and
550      distribute to unit parcel owners a directory containing the

                                                      Page 22 of 39

      CODING: Words stricken are deletions; words underlined are additions.
                                                                                                          hb0615-01-c1
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 615                                                                                            2021




551      name, unit parcel address, and all telephone numbers of each
552      unit parcel owner. However, an owner may exclude his or her
553      telephone numbers from the directory by so requesting in writing
554      to the association. An owner may consent in writing to the
555      disclosure of other contact information described in this
556      subparagraph. The association is not liable for the inadvertent
557      disclosure of information that is protected under this
558      subparagraph if the information is included in an official
559      record of the association and is voluntarily provided by an
560      owner and not requested by the association.
561              6.      Electronic security measures that are used by the
562      association to safeguard data, including passwords.
563              7.      The software and operating system used by the
564      association which allow the manipulation of data, even if the
565      owner owns a copy of the same software used by the association.
566      The data is part of the official records of the association.
567              8.      All affirmative acknowledgments made pursuant to s.
568      719.108(3)(b)3.
569              Section 5.         Subsections (3) and (4) of section 719.108,
570      Florida Statutes, are amended to read:
571              719.108       Rents and assessments; liability; lien and
572      priority; interest; collection; cooperative ownership.—
573              (3)(a)       Rents and assessments, and installments on them,
574      not paid when due bear interest at the rate provided in the
575      cooperative documents from the date due until paid. This rate

                                                      Page 23 of 39

      CODING: Words stricken are deletions; words underlined are additions.
                                                                                                          hb0615-01-c1
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 615                                                                                            2021




576      may not exceed the rate allowed by law and, if a rate is not
577      provided in the cooperative documents, accrues at 18 percent per
578      annum. If the cooperative documents or bylaws so provide, the
579      association may charge an administrative late fee in addition to
580      such interest, not to exceed the greater of $25 or 5 percent of
581      each installment of the assessment for each delinquent
582      installment that the payment is late. Any payment received by an
583      association must be applied first to any interest accrued by the
584      association, then to any administrative late fee, then to any
585      costs and reasonable attorney fees incurred in collection, and
586      then to the delinquent assessment. The foregoing applies
587      notwithstanding s. 673.3111, any purported accord and
588      satisfaction, or any restrictive endorsement, designation, or
589      instruction placed on or accompanying a payment. The preceding
590      sentence is intended to clarify existing law. A late fee is not
591      subject to chapter 687 or s. 719.303(4).
592              (b)1.       If an association sends an invoice for assessments
593      or a unit's statement of the account described in s.
594      719.104(2)(a)9.b., the invoice for assessments or the unit's
595      statement of account must be delivered to the unit owner by
596      first-class United States mail or by electronic transmission to
597      the unit owner's e-mail address maintained in the association's
598      official records.
599              2.      Before changing the method of delivery for an invoice
600      for assessments or the statement of the account, the association

                                                      Page 24 of 39

      CODING: Words stricken are deletions; words underlined are additions.
                                                                                                          hb0615-01-c1
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 615                                                                                            2021




601      must deliver a written notice of such change to each unit owner.
602      The written notice must be delivered to the unit owner at least
603      30 days before the association sends the invoice for assessments
604      or statement of the account by the new delivery method. The
605      notice must be sent by first-class United States mail to the
606      unit owner at his or her last address as reflected in the
607      association's records and, if such address is not the unit
608      address, must be sent by first-class United States mail to the
609      unit address. Notice is deemed to have been delivered upon
610      mailing as required by this subparagraph.
611              3.      A unit owner must affirmatively acknowledge his or her
612      understanding that the association will change its method of
613      delivery of an invoice for assessments or the statement of the
614      account before the association may change the method of
615      delivering an invoice for assessments or the statement of the
616      account. The unit owner may make the affirmative acknowledgment
617      electronically or in writing.
618              (c)      An association may not require payment of attorney
619      fees related to a past due assessment without first delivering a
620      written notice of late assessment to the owner which specifies
621      the amount owed the association and provides the unit owner an
622      opportunity to pay the amount owed without the assessment of
623      attorney fees. The notice of late assessment must be sent by
624      first-class United States mail to the unit owner at his or her
625      last address as reflected in the association's records and, if

                                                      Page 25 of 39

      CODING: Words stricken are deletions; words underlined are additions.
                                                                                                          hb0615-01-c1
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 615                                                                                            2021




626      such address is not the unit address, must also be sent by
627      first-class United States mail to the unit address. Notice is
628      deemed to have been delivered upon mailing as required by this
629      paragraph. A rebuttable presumption that an association mailed a
630      notice in accordance with this paragraph is established if a
631      board member, officer, or agent of the association, or a manager
632      licensed under part VIII of chapter 468, provides a sworn
633      affidavit attesting to such mailing. The notice must be in
634      substantially the following form:
635
636                                        NOTICE OF LATE ASSESSMENT
637
638              RE: Unit .... of ...(name of association)...
639
640              The following amounts are currently due on your
641              account to ...(name of association)..., and must be
642              paid within 30 days of the date of this letter. This
643              letter shall serve as the association's notice to
644              proceed with further collection action against your
645              property no sooner than 30 days of the date of this
646              letter, unless you pay in full the amounts set forth
647              below:
648
649              Maintenance due ...(dates)...                                                    $.....
650              Late fee, if applicable                                                          $.....

                                                      Page 26 of 39

      CODING: Words stricken are deletions; words underlined are additions.
                                                                                                          hb0615-01-c1
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 615                                                                                            2021




651              Interest through ...(dates)...*                                                  $.....
652              TOTAL OUTSTANDING                                                                $.....
653
654              *Interest accrues at the rate of .... percent per annum.
655              (4)     The association has a lien on each cooperative parcel
656      for any unpaid rents and assessments, plus interest, and any
657      administrative late fees. If authorized by the cooperative
658      documents, the lien also secures reasonable attorney fees
659      incurred by the association incident to the collection of the
660      rents and assessments or enforcement of such lien. The lien is
661      effective from and after recording a claim of lien in the public
662      records in the county in which the cooperative parcel is located
663      which states the description of the cooperative parcel, the name
664      of the unit owner, the amount due, and the due dates. Except as
665      otherwise provided in this chapter, a lien may not be filed by
666      the association against a cooperative parcel until 45 30 days
667      after the date on which a notice of intent to file a lien has
668      been delivered to the owner.
669              (a)     The notice must be sent to the unit owner at the
670      address of the unit by first-class United States mail, and the
671      notice must be in substantially the following form:
672
673                                             NOTICE OF INTENT
674                                        TO RECORD A CLAIM OF LIEN
675

                                                      Page 27 of 39

      CODING: Words stricken are deletions; words underlined are additions.
                                                                                                          hb0615-01-c1
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 615                                                                                            2021




676              RE: Unit ...(unit number)... of ...(name of
677              cooperative)...
678
679              The following amounts are currently due on your
680              account to ...(name of association)..., and must be
681              paid within 45 30 days after your receipt of this
682              letter. This letter shall serve as the association's
683              notice of intent to record a Claim of Lien against
684              your property no sooner than 45 30 days after your
685              receipt of this letter, unless you pay in full the
686              amounts set forth below:
687
688              Maintenance due ...(dates)...                                                    $.....
689              Late fee, if applicable                                                          $.....
690              Interest through ...(dates)...*                                                  $.....
691              Certified mail charges                                                           $.....
692              Other costs                                                                      $.....
693              TOTAL OUTSTANDING                                                                $.....
694
695              *Interest accrues at the rate of .... percent per
696              annum.
697              1.      If the most recent address of the unit owner on the
698      records of the association is the address of the unit, the
699      notice must be sent by certified mail, return receipt requested,
700      to the unit owner at the address of the unit.

                                                      Page 28 of 39

      CODING: Words stricken are deletions; words underlined are additions.
                                                                                                          hb0615-01-c1
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 615                                                                                            2021




701              2.      If the most recent address of the unit owner on the
702      records of the association is in the United States, but is not
703      the address of the unit, the notice must be sent by certified
704      mail, return receipt requested, to the unit owner at his or her
705      most recent address.
706              3.      If the most recent address of the unit owner on the
707      records of the association is not in the United States, the
708      notice must be sent by first-class United States mail to the
709      unit owner at his or her most recent address.
710              (b)      A notice that is sent pursuant to this subsection is
711      deemed delivered upon mailing. A claim of lien must be executed
712      and acknowledged by an officer or authorized agent of the
713      association. The lien is not effective 1 year after the claim of
714      lien was recorded unless, within that time, an action to enforce
715      the lien is commenced. The 1-year period is automatically
716      extended for any length of time during which the association is
717      prevented from filing a foreclosure action by an automatic stay
718      resulting from a bankruptcy petition filed by the parcel owner
719      or any other person claiming an interest in the parcel. The
720      claim of lien secures all unpaid rents and assessments that are
721      due and that may accrue after the claim of lien is recorded and
722      through the entry of a final judgment, as well as interest and
723      all reasonable costs and attorney fees incurred by the
724      association incident to the collection process. Upon payment in
725      full, the person making the payment is entitled to a

                                                      Page 29 of 39

      CODING: Words stricken are deletions; words underlined are additions.
                                                                                                          hb0615-01-c1
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 615                                                                                            2021




726      satisfaction of the lien.
727              (c)     By recording a notice in substantially the following
728      form, a unit owner or the unit owner's agent or attorney may
729      require the association to enforce a recorded claim of lien
730      against his or her cooperative parcel:
731
732                                        NOTICE OF CONTEST OF LIEN
733
734              TO: ...(Name and address of association)...:
735
736              You are notified that the undersigned contests the
737              claim of lien filed by you on ...., ...(year)..., and
738              recorded in Official Records Book .... at Page ....,
739              of the public records of .... County, Florida, and
740              that the time within which you may file suit to
741              enforce your lien is limited to 90 days from the date
742              of service of this notice. Executed this .... day of
743              ...., ...(year)....
744              Signed: ...(Owner or Attorney)...
745
746      After notice of contest of lien has been recorded, the clerk of
747      the circuit court shall mail a copy of the recorded notice to
748      the association by certified mail, return receipt requested, at
749      the address shown in the claim of lien or most recent amendment
750      to it and shall certify to the service on the face of the

                                                      Page 30 of 39

      CODING: Words stricken are deletions; words underlined are additions.
                                                                                                          hb0615-01-c1
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 615                                                                                            2021




751      notice. Service is complete upon mailing. After service, the
752      association has 90 days in which to file an action to enforce
753      the lien. If the action is not filed within the 90-day period,
754      the lien is void. However, the 90-day period shall be extended
755      for any length of time during which the association is prevented
756      from filing its action because of an automatic stay resulting
757      from the filing of a bankruptcy petition by the unit owner or by
758      any other person claiming an interest in the parcel.
759              (d)     A release of lien must be in substantially the
760      following form:
761
762                                                RELEASE OF LIEN
763
764      The undersigned lienor, in consideration of the final payment in
765      the amount of $...., hereby waives and releases its lien and
766      right to claim a lien for unpaid assessments through ....,
767      ...(year)..., recorded in the Official Records Book .... at Page
768      ...., of the public records of .... County, Florida, for the
769      following described real property:
770
771              THAT COOPERATIVE PARCEL WHICH INCLUDES UNIT NO. ....
772              OF ...(NAME OF COOPERATIVE)..., A COOPERATIVE AS SET
773              FORTH IN THE COOPERATIVE DOCUMENTS AND THE EXHIBITS
774              ANNEXED THERETO AND FORMING A PART THEREOF, RECORDED
775              IN OFFICIAL RECORDS BOOK ...., PAGE ...., OF THE

                                                      Page 31 of 39

      CODING: Words stricken are deletions; words underlined are additions.
                                                                                                          hb0615-01-c1
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 615                                                                                             2021




776              PUBLIC RECORDS OF .... COUNTY, FLORIDA.
777
778      ...(Signature of Authorized Agent)...                                    ...(Signature of
779      Witness)...
780      ...(Print Name)...                                                   ...(Print Name)...
781
782                                                                   ...(Signature of Witness)...
783                                                                                    ...(Print Name)...
784
785      Sworn to (or affirmed) and subscribed before me this .... day of
786      ...., ...(year)..., by ...(name of person making statement)....
787      ...(Signature of Notary Public)...
788      ...(Print, type, or stamp commissioned name of Notary Public)...
789      Personally Known .... OR Produced .... as identification.
790              Section 6.         Present paragraph (l) of subsection (4) of
791      section 720.303, Florida Statutes, is redesignated as paragraph
792      (m), a new paragraph (l) is added to that subsection, and
793      paragraph (c) of subsection (5) of that section is amended, to
794      read:
795              720.303       Association powers and duties; meetings of board;
796      official records; budgets; financial reporting; association
797      funds; recalls.—
798              (4)     OFFICIAL RECORDS.—The association shall maintain each
799      of the following items, when applicable, which constitute the
800      official records of the association:

                                                      Page 32 of 39

      CODING: Words stricken are deletions; words underlined are additions.
                                                                                                           hb0615-01-c1
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 615                                                                                            2021




801              (l)     All affirmative acknowledgments made pursuant to s.
802      720.3085(3)(c)3.
803              (5)     INSPECTION AND COPYING OF RECORDS.—The official
804      records shall be maintained within the state for at least 7
805      years and shall be made available to a parcel owner for
806      inspection or photocopying within 45 miles of the community or
807      within the county in which the association is located within 10
808      business days after receipt by the board or its designee of a
809      written request. This subsection may be complied with by having
810      a copy of the official records available for inspection or
811      copying in the community or, at the option of the association,
812      by making the records available to a parcel owner electronically
813      via the Internet or by allowing the records to be viewed in
814      electronic format on a computer screen and printed upon request.
815      If the association has a photocopy machine available where the
816      records are maintained, it must provide parcel owners with
817      copies on request during the inspection if the entire request is
818      limited to no more than 25 pages. An association shall allow a
819      member or his or her authorized representative to use a portable
820      device, including a smartphone, tablet, portable scanner, or any
821      other technology capable of scanning or taking photographs, to
822      make an electronic copy of the official records in lieu of the
823      association's providing the member or his or her authorized
824      representative with a copy of such records. The association may
825      not charge a fee to a member or his or her authorized

                                                      Page 33 of 39

      CODING: Words stricken are deletions; words underlined are additions.
                                                                                                          hb0615-01-c1
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 615                                                                                            2021




826      representative for the use of a portable device.
827              (c)     The association may adopt reasonable written rules
828      governing the frequency, time, location, notice, records to be
829      inspected, and manner of inspections, but may not require a
830      parcel owner to demonstrate any proper purpose for the
831      inspection, state any reason for the inspection, or limit a
832      parcel owner's right to inspect records to less than one 8-hour
833      business day per month. The association may impose fees to cover
834      the costs of providing copies of the official records, including
835      the costs of copying and the costs required for personnel to
836      retrieve and copy the records if the time spent retrieving and
837      copying the records exceeds one-half hour and if the personnel
838      costs do not exceed $20 per hour. Personnel costs may not be
839      charged for records requests that result in the copying of 25 or
840      fewer pages. The association may charge up to 25 cents per page
841      for copies made on the association's photocopier. If the
842      association does not have a photocopy machine available where
843      the records are kept, or if the records requested to be copied
844      exceed 25 pages in length, the association may have copies made
845      by an outside duplicating service and may charge the actual cost
846      of copying, as supported by the vendor invoice. The association
847      shall maintain an adequate number of copies of the recorded
848      governing documents, to ensure their availability to members and
849      prospective members. Notwithstanding this paragraph, the
850      following records are not accessible to members or parcel

                                                      Page 34 of 39

      CODING: Words stricken are deletions; words underlined are additions.
                                                                                                          hb0615-01-c1
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 615                                                                                            2021




851      owners:
852              1.      Any record protected by the lawyer-client privilege as
853      described in s. 90.502 and any record protected by the work-
854      product privilege, including, but not limited to, a record
855      prepared by an association attorney or prepared at the
856      attorney's express direction which reflects a mental impression,
857      conclusion, litigation strategy, or legal theory of the attorney
858      or the association and which was prepared exclusively for civil
859      or criminal litigation or for adversarial administrative
860      proceedings or which was prepared in anticipation of such
861      litigation or proceedings until the conclusion of the litigation
862      or proceedings.
863              2.      Information obtained by an association in connection
864      with the approval of the lease, sale, or other transfer of a
865      parcel.
866              3.      Personnel records of association or management company
867      employees, including, but not limited to, disciplinary, payroll,
868      health, and insurance records. For purposes of this
869      subparagraph, the term "personnel records" does not include
870      written employment agreements with an association or management
871      company employee or budgetary or financial records that indicate
872      the compensation paid to an association or management company
873      employee.
874              4.      Medical records of parcel owners or community
875      residents.

                                                      Page 35 of 39

      CODING: Words stricken are deletions; words underlined are additions.
                                                                                                          hb0615-01-c1
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 615                                                                                            2021




876              5.      Social security numbers, driver license numbers, credit
877      card numbers, electronic mailing addresses, telephone numbers,
878      facsimile numbers, emergency contact information, any addresses
879      for a parcel owner other than as provided for association notice
880      requirements, and other personal identifying information of any
881      person, excluding the person's name, parcel designation, mailing
882      address, and property address. Notwithstanding the restrictions
883      in this subparagraph, an association may print and distribute to
884      parcel owners a directory containing the name, parcel address,
885      and all telephone numbers of each parcel owner. However, an
886      owner may exclude his or her telephone numbers from the
887      directory by so requesting in writing to the association. An
888      owner may consent in writing to the disclosure of other contact
889      information described in this subparagraph. The association is
890      not liable for the disclosure of information that is protected
891      under this subparagraph if the information is included in an
892      official record of the association and is voluntarily provided
893      by an owner and not requested by the association.
894              6.      Any electronic security measure that is used by the
895      association to safeguard data, including passwords.
896              7.      The software and operating system used by the
897      association which allows the manipulation of data, even if the
898      owner owns a copy of the same software used by the association.
899      The data is part of the official records of the association.
900              8.      All affirmative acknowledgments made pursuant to s.

                                                      Page 36 of 39

      CODING: Words stricken are deletions; words underlined are additions.
                                                                                                          hb0615-01-c1
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 615                                                                                            2021




901      720.3085(3)(c)3.
902              Section 7.         Paragraphs (c) and (d) are added to subsection
903      (3) of section 720.3085, Florida Statutes, to read:
904              720.3085          Payment for assessments; lien claims.—
905              (3)      Assessments and installments on assessments that are
906      not paid when due bear interest from the due date until paid at
907      the rate provided in the declaration of covenants or the bylaws
908      of the association, which rate may not exceed the rate allowed
909      by law. If no rate is provided in the declaration or bylaws,
910      interest accrues at the rate of 18 percent per year.
911              (c)1.       If an association sends an invoice for assessments
912      or a parcel's statement of the account described in s.
913      720.303(4)(j)2., the invoice for assessments or the parcel's
914      statement of account must be delivered to the parcel owner by
915      first-class United States mail or by electronic transmission to
916      the parcel owner's e-mail address maintained in the
917      association's official records.
918              2.      Before changing the method of delivery for an invoice
919      for assessments or the statement of the account, the association
920      must deliver a written notice such change to each parcel owner.
921      The written notice must be delivered to the parcel owner at
922      least 30 days before the association sends an invoice for
923      assessments or the statement of the account by the new delivery
924      method. The notice must be sent by first-class United States
925      mail to the owner at his or her last address as reflected in the

                                                      Page 37 of 39

      CODING: Words stricken are deletions; words underlined are additions.
                                                                                                          hb0615-01-c1
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 615                                                                                            2021




926      association's records and, if such address is not the parcel
927      address, must be sent by first-class United States mail to the
928      parcel address. Notice is deemed to have been delivered upon
929      mailing as required by this subparagraph.
930              3.      A parcel owner must affirmatively acknowledge his or
931      her understanding that the association will change its method of
932      delivery of an invoice for assessments or the statement of the
933      account before the association may change the method of
934      delivering an invoice for assessments or the statement of the
935      account. The parcel owner may make the affirmative
936      acknowledgment electronically or in writing.
937              (d)      An association may not require payment of attorney
938      fees related to a past due assessment without first delivering a
939      written notice of late assessment to the parcel owner which
940      specifies the amount owed the association and provides the
941      parcel owner an opportunity to pay the amount owed without the
942      assessment of attorney fees. The notice of late assessment must
943      be sent by first-class United States mail to the owner at his or
944      her last address as reflected in the association's records and,
945      if such address is not the parcel address, must also be sent by
946      first-class United States mail to the parcel address. Notice is
947      deemed to have been delivered upon mailing as required by this
948      paragraph. A rebuttable presumption that an association mailed a
949      notice in accordance with this paragraph is established if a
950      board member, officer, or agent of the association, or a manager

                                                      Page 38 of 39

      CODING: Words stricken are deletions; words underlined are additions.
                                                                                                          hb0615-01-c1
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 615                                                                                            2021




951      licensed under part VIII of chapter 468, provides a sworn
952      affidavit attesting to such mailing. The notice must be in
953      substantially the following form:
954
955                                        NOTICE OF LATE ASSESSMENT
956
957              RE: Parcel .... of ...(name of association)...
958
959              The following amounts are currently due on your
960              account to ...(name of association)..., and must be
961              paid within 30 days after the date of this letter.
962              This letter shall serve as the association's notice to
963              proceed with further collection action against your
964              property no sooner than 30 days after the date of this
965              letter, unless you pay in full the amounts set forth
966              below:
967
968              Maintenance due ...(dates)...                                                    $.....
969              Late fee, if applicable                                                          $.....
970              Interest through ...(dates)...*                                                  $.....
971              TOTAL OUTSTANDING                                                                $.....
972
973              *Interest accrues at the rate of .... percent per annum.
974              Section 8.         This act shall take effect July 1, 2021.



                                                      Page 39 of 39

      CODING: Words stricken are deletions; words underlined are additions.
                                                                                                          hb0615-01-c1
CS/HB 1051
                                    HOUSE OF REPRESENTATIVES STAFF ANALYSIS
BILL #:     CS/HB 1051 Environmental Compliance Costs
SPONSOR(S): Tourism, Infrastructure & Energy Subcommittee, Fernandez-Barquin and others
TIED BILLS:       IDEN./SIM. BILLS: CS/SB 964

    REFERENCE                                                        ACTION                   ANALYST              STAFF DIRECTOR or
                                                                                                                   BUDGET/POLICY CHIEF

    1) Tourism, Infrastructure & Energy Subcommittee                 15 Y, 0 N, As CS         Johnson              Keating

    2) Environment, Agriculture & Flooding                           17 Y, 0 N                Gawin                Moore
       Subcommittee

    3) Commerce Committee                                                                     Johnson              Hamon

                                                         SUMMARY ANALYSIS

Under current law, investor-owned electric utilities may recover certain costs, such as fuel-related expenses
and environmental compliance costs, outside of base rates through separate cost recovery charges approved
by the Public Service Commission (PSC). Environmental compliance costs are recovered through a statutorily
created mechanism known as the Environmental Cost Recovery Clause (ECRC), which provides cash flow for
the specific operations and maintenance activities and large equipment modifications necessary to comply with
environmental laws and regulations.

The bill expands the definition of “environmental compliance costs” for purposes of the ECRC to include costs
or expenses prudently incurred by an electric utility after July 1, 2021, pursuant to an agreement between the
electric utility and a governmental wastewater utility for the exclusive purpose of the electric utility constructing
and operating a wastewater reuse system where operation of the system will serve to further compliance with
environmental laws or regulations applicable to the electric utility and where the system fully or partially
satisfies a local government’s statutory reclaimed water reuse requirements. The bill also requires at least 50
percent of the reclaimed water the reuse system produces to be used in conjunction with the water
requirements of an electrical generating facility or facilities owned by the electric utility to offset all or part of the
electric utility’s water use authorized by permit.

The bill does not appear to have a fiscal impact on state or local governments, but may result in changes to
electric rates paid by private and public entities. 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 .
STORAGE NAME: h1051e.COM
DATE: 4/2/2021
                                                          FULL ANALYSIS

                                                  I. SUBSTANTIVE ANALYSIS

    A. EFFECT OF PROPOSED CHANGES:
         Current Situation

         Ratemaking for Investor-Owned Electric Utilities
         The Public Service Commission (PSC) has broad jurisdiction over the rates and service of investor-
         owned electric utilities (IOUs) in Florida.1 Under this broad grant of authority, and through more specific
         grants of authority in ch. 366, F.S., the PSC sets rates for each IOU through five primary components,
         each of which is established in a separate administrative proceeding:
             Base rates
                    o Designed to recover most operations and maintenance expenses, capital investments,
                        and a return on capital investment.
             Fuel and purchased power cost recovery charges
                    o Designed to recover the costs of fuel and the energy component of wholesale power
                        purchases.
                    o By PSC order, may include recovery of capital investments, including a return on
                        investment, in limited circumstances.
             Capacity cost recovery charges
                    o Designed to recover costs of the capacity component of wholesale power purchases.
                    o By statute, may include recovery of certain costs related to development of new nuclear
                        power plants, including a return, provided that the costs will be moved into base rates
                        when the new plant becomes operational.2
             Environmental cost recovery charges
                    o Designed to recover costs to comply with government-mandated environmental
                        standards.
                    o By statute, may include recovery of certain capital investments, including a return on
                        investment, provided that these costs may be moved into base rates at the IOU’s next
                        rate case.3
             Energy conservation and efficiency cost recovery charges
                    o Designed to recover costs of implementing PSC-approved energy conservation and
                        efficiency programs.

         In each base rate proceeding, the PSC sets a reasonable rate of return on equity for the IOU. After
         rates are set, the actual rate of return on equity earned by an IOU fluctuates over time as utility
         revenues and expenses fluctuate.

         Environmental Cost Recovery Charges
         Separate from base rates, environmental cost recovery charges are set annually, and revenue
         collected through the Environmental Cost Recovery Clause (ECRC) provides cash flow for the specific
         operations and maintenance activities and large equipment modifications necessary to comply with
         environmental laws and regulations.4

         The ECRC was established by the Legislature in 1993. To implement this law, the PSC established
         three criteria for approval of recovery through the ECRC:
              The electric utility’s costs were prudently incurred after April 13, 1993.



1
  See, e.g., ss. 366.01, 366.04(1), 366.041, 366.05(1), and 366.06, F.S. There are five public electric utilities in Florida: Florida Power
& Light Company, Duke Energy Florida, Tampa Electric Company, Gulf Power Company, and Florida Public Utilities Company.
Florida Power & Light Company and Gulf Power Company operate under the same parent company, NextEra Energy, Inc.
2
  S. 366.93, F.S.
3
  S. 366.8255, F.S.
4
  Public Service Commission, Agency Analysis of 2021 House Bill 1051 p. 1 (Mar. 3, 2021).
STORAGE NAME: h1051e.COM                                                                                                           PAGE: 2
DATE: 4/2/2021
                The activity is legally required to comply with a governmentally imposed environmental
                 regulation that was enacted, that became effective, or whose effect was triggered after the
                 electric utility’s last test year upon which rates are based.
                The electric utility’s costs are not recovered through some other cost recovery mechanism or
                 through base rates.5

         Environmental compliance costs are defined in Florida law as all costs or expenses incurred by an
         electric utility in complying with environmental laws or regulations.6 Environmental compliance costs
         include, but are not limited to:
              Inservice capital investments, including the electric utility's last authorized rate of return on
                 equity;
              Operation and maintenance expenses;
              Fuel procurement costs;
              Purchased power costs;
              Emission allowance costs;
              Direct taxes on environmental equipment;
              Costs or expenses prudently incurred by an electric utility pursuant to an agreement entered
                 into between the electric utility and the Department of Environmental Protection (DEP) or the
                 United States Environmental Protection Agency (EPA) for the exclusive purpose of ensuring
                 compliance with ozone ambient air quality standards by an electrical generating facility owned
                 by the electric utility; and
              Costs or expenses prudently incurred for scientific research and geological assessments of
                 carbon capture and storage conducted in the state for the purpose of reducing an electric
                 utility’s greenhouse gas emissions when such costs or expenses are incurred in joint research
                 projects with Florida state government agencies and universities.7

         Reuse of Reclaimed Water
         Water conservation and the promotion of reuse of reclaimed water have been established by the
         Legislature as formal state objectives.8 Reuse is defined as the deliberate application of reclaimed
         water for a beneficial purpose.9 Reclaimed water is defined as water from a domestic wastewater10
         treatment facility that has received at least secondary treatment11 and basic disinfection12 for reuse.13

         Reclaimed water is reused for various purposes, such as irrigation, industrial uses, groundwater
         recharge, and prevention of saltwater intrusion in coastal groundwater aquifers.14 Industrial uses of
         reclaimed water include plant wash-down, and processing and cooling water purposes.15 Several
         power plants throughout the state use reclaimed water for cooling purposes.16

5
  See PSC Order No. PSC-94-0044-FOF-EI, issued January 12, 1994, in Docket No. 930613-EI, In re: Petition to establish an
environmental cost recovery clause pursuant to Section 366.0825, Florida Statutes by Gulf Power Company. Section 120.80(13), F.S.,
exempts cost recovery clause proceedings from rulemaking requirements.
6
  S. 366.8255(1)(d), F.S. Environmental laws or regulations are defined as “all federal, state, or local statutes, administrative
regulations, orders, ordinances, resolutions, or other requirements that apply to electric utilities and are designed to protect the
environment.”
7
  S. 366.8255(1)(d), F.S.
8
  Ss. 403.064(1) and 373.250(1), F.S.
9
  R. 62-610.200(52), F.A.C.
10
   Section 367.021(5), F.S., defines the term “domestic wastewater” to mean wastewater principally from dwellings, business
buildings, institutions, and sanitary wastewater or sewage treatment plants.
11
   Rule 62-610.200(54), F.A.C. defines the term “secondary treatment” to mean “wastewater treatment to a level that will achieve the
effluent limitations specified in paragraph 62-600.420(1)(a), F.A.C.”
12
   Rule 62-600.440(5), F.A.C., provides the requirements for basic disinfection.
13
   Section 373.019(17), F.S.; R. 62-610.200(48), F.A.C.
14
   Martinez, Christopher J. and Clark, Mark W., Reclaimed Water and Florida’s Water Reuse Program, UF/IFAS Agricultural and
Biological Engineering Department (rev. 07/2012), available at
https://citeseerx.ist.psu.edu/viewdoc/download?doi=10.1.1.590.5063&rep=rep1&type=pdf.
15
   Department of Environmental Protection (DEP), Uses of Reclaimed Water, https://floridadep.gov/water/domestic-
wastewater/content/uses-reclaimed-water (last visited Mar. 5, 2021).
16
   DEP, Industrial Uses of Reclaimed Water, https://floridadep.gov/water/domestic-wastewater/content/industrial-uses-reclaimed-
water (last visited Mar. 5, 2021).
STORAGE NAME: h1051e.COM                                                                                                    PAGE: 3
DATE: 4/2/2021
        Local governments are authorized and encouraged under Florida law to implement programs for the
        reuse of reclaimed water and are authorized to allocate the costs of such programs in a reasonable
        manner.17

        Ocean Outfalls
        An ocean outfall occurs when a wastewater treatment facility or other facility discharges treated effluent
        into coastal or ocean waters.18 State law prohibits construction of new ocean outfalls and requires that
        all six ocean outfalls in Florida cease discharging wastewater by December 31, 2025.19 In addition,
        wastewater facilities that discharged wastewater through an ocean outfall on July 1, 2008, are required
        to install a reuse system no later than December 31, 2025.20 Existing discharges through ocean outfalls
        were required to meet advanced wastewater treatment requirements21 by December 31, 2018.22

        Effect of the Bill

        The bill amends s. 366.8255(1)(d), F.S., by expanding the definition of environmental compliance costs
        to include the costs or expenses prudently incurred by an electric utility, after July 1, 2021, pursuant to
        an agreement between the electric utility and a governmental wastewater utility for the exclusive
        purpose of the electric utility constructing and operating a wastewater reuse system where operation of
        the system will serve to further compliance with environmental laws or regulations that apply to the
        electric utility and where operation of the system will serve to fully or partially satisfy a local
        government’s reclaimed water reuse requirements under s. 403.064, F.S.,23 or s. 403.086, F.S.24 The
        bill further requires that at least 50 percent of the produced reclaimed water is used in conjunction with
        the water requirements of one or more of the utility’s electrical generating facilities in order to offset all
        or part of the electric utility’s water use authorized by permit.

        Under the bill, an electric utility that constructs a new wastewater reuse system that satisfies the
        expanded definition of environmental compliance costs may begin to seek recovery of all its prudently
        incurred costs and expenses through the ECRC. The electric utility’s level of cost recovery through the
        ECRC may include depreciation of the capital investments in the wastewater reuse system, the
        associated direct operating and maintenance expenses, and associated indirect expenses such as
        taxes and a return on its capital investments.

     B. SECTION DIRECTORY:
        Section 1 Amends s. 366.8255, F.S., relating to environmental cost recovery.

        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:

17
   Section 403.064(9)-(10), F.S.
18
   DEP, Ocean Outfall Study Final Report ES-1 (Apr. 18, 2006), available at
https://floridadep.gov/sites/default/files/OceanOutfallStudy_0.pdf.
19
   S. 403.086(10), F.S.; Ch. 2008-232, Laws of Fla.
20
   S. 403.086(10)(c), F.S.
21
   S. 403.086(4), F.S.
22
   S. 403.086(10)(b), F.S.
23
   Section 403.064, F.S., relates to the use of reclaimed water.
24
   Section 403.086, F.S., relates to sewage disposal facilities.
STORAGE NAME: h1051e.COM                                                                                       PAGE: 4
DATE: 4/2/2021
            None. Any increased workload associated with the PSC’s review of the ECRC petition is expected
            to be handled within existing PSC resources.

   B. FISCAL IMPACT ON LOCAL GOVERNMENTS:

       1. Revenues:
            None.

       2. Expenditures:
            The bill may result in higher electric rates for local governments if an electric utility’s costs increase
            due to agreements with wastewater utilities for wastewater reuse systems.

   C. DIRECT ECONOMIC IMPACT ON PRIVATE SECTOR:
       The bill may result in higher electric rates if an electric utility’s costs increase due to agreements with
       wastewater utilities for wastewater reuse systems.

   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:
           None.

   B. RULE-MAKING AUTHORITY:
       None.

   C. DRAFTING ISSUES OR OTHER COMMENTS:
       Due to economies of scale, it is possible that a joint-use wastewater reuse system will result in lower
       total costs to the electric utility and wastewater utility when compared with two independent actions by
       these parties. While it is possible that the agreement between the parties could apportion cost and
       liability responsibilities, the bill does not require the agreement to address these matters. Therefore, the
       bill may be interpreted to create an incentive or an expectation that local governments shift cost and
       liability responsibilities from wastewater utilities to electric utilities.

                           IV. AMENDMENTS/ COMMITTEE SUBSTITUTE CHANGES
   On March 9, 2021, the Tourism, Infrastructure & Energy Subcommittee adopted a strike-all amendment
   and reported the bill favorably as a committee substitute. The committee substitute:

           Specifies that an electric utility’s water reuse project, to be eligible for cost recovery as an
            environmental compliance cost under the bill, must:
               o Be incurred pursuant to an agreement between the electric utility and a governmental
                   wastewater utility; and
               o Serve to further compliance with environmental laws or regulations that apply to the electric
                   utility.
STORAGE NAME: h1051e.COM                                                                                        PAGE: 5
DATE: 4/2/2021
          Provides that at least 50 percent of the reclaimed water produced by an eligible project must be
           used in conjunction with the water requirements of an electric generating facility.

   This analysis is drafted to the committee substitute as approved by the Tourism, Infrastructure & Energy
   Subcommittee.




STORAGE NAME: h1051e.COM                                                                                PAGE: 6
DATE: 4/2/2021
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




           CS/HB 1051                                                                                           2021




    1                                         A bill to be entitled
    2              An act relating to environmental compliance costs;
    3              amending s. 366.8255, F.S.; redefining the term
    4              "environmental compliance costs" to include costs or
    5              expenses prudently incurred by an electric utility in
    6              complying with specified reclaimed water reuse
    7              requirements; providing an effective date.
    8
    9      Be It Enacted by the Legislature of the State of Florida:
10
11                 Section 1.         Paragraph (d) of subsection (1) of section
12         366.8255, Florida Statutes, is amended to read:
13                 366.8255          Environmental cost recovery.—
14                 (1)      As used in this section, the term:
15                 (d)      "Environmental compliance costs" includes all costs or
16         expenses incurred by an electric utility in complying with
17         environmental laws or regulations, including, but not limited
18         to:
19                 1.      Inservice capital investments, including the electric
20         utility's last authorized rate of return on equity thereon.
21                 2.      Operation and maintenance expenses.
22                 3.      Fuel procurement costs.
23                 4.      Purchased power costs.
24                 5.      Emission allowance costs.
25                 6.      Direct taxes on environmental equipment.

                                                         Page 1 of 3

        CODING: Words stricken are deletions; words underlined are additions.
                                                                                                            hb1051-01-c1
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 1051                                                                                           2021




26              7.      Costs or expenses prudently incurred by an electric
27      utility pursuant to an agreement entered into on or after the
28      effective date of this act and prior to October 1, 2002, between
29      the electric utility and the Florida Department of Environmental
30      Protection or the United States Environmental Protection Agency
31      for the exclusive purpose of ensuring compliance with ozone
32      ambient air quality standards by an electrical generating
33      facility owned by the electric utility.
34              8.      Costs or expenses prudently incurred for scientific
35      research and geological assessments of carbon capture and
36      storage conducted in this state for the purpose of reducing an
37      electric utility's greenhouse gas emissions when such costs or
38      expenses are incurred in joint research projects with Florida
39      state government agencies and Florida state universities.
40              9.      Costs or expenses prudently incurred by an electric
41      utility after July 1, 2021, pursuant to an agreement between the
42      electric utility and a governmental wastewater utility for the
43      exclusive purpose of the electric utility constructing and
44      operating a wastewater reuse system where operation of the
45      system will serve to further compliance with environmental laws
46      or regulations that apply to the electric utility and where the
47      system fully or partially satisfies a local government's
48      reclaimed water reuse requirements under s. 403.064 or s.
49      403.086. At least 50 percent of the reclaimed water the system
50      produces must be used in conjunction with the water requirements

                                                      Page 2 of 3

     CODING: Words stricken are deletions; words underlined are additions.
                                                                                                         hb1051-01-c1
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 1051                                                                                           2021




51      of an electrical generating facility or facilities owned by the
52      electric utility to offset all or part of the electric utility's
53      water use authorized by permit.
54              Section 2.         This act shall take effect July 1, 2021.




                                                      Page 3 of 3

     CODING: Words stricken are deletions; words underlined are additions.
                                                                                                         hb1051-01-c1
CS/HB 1151
                                    HOUSE OF REPRESENTATIVES STAFF ANALYSIS
BILL #:     CS/HB 1151 Department of Highway Safety and Motor Vehicles
SPONSOR(S): Tourism, Infrastructure & Energy Subcommittee, Brannan
TIED BILLS:       IDEN./SIM. BILLS: SB 1134

    REFERENCE                                                        ACTION                   ANALYST              STAFF DIRECTOR or
                                                                                                                   BUDGET/POLICY CHIEF

    1) Tourism, Infrastructure & Energy Subcommittee                 15 Y, 0 N, As CS         Johnson              Keating

    2) Commerce Committee                                                                     Johnson              Hamon

                                                         SUMMARY ANALYSIS
The bill is a comprehensive bill relating to the Department of Highway Safety and Motor Vehicles (DHSMV). In
summary, the bill:
    Adopts Federal Motor Carrier Safety Administration (FMCSA) regulations for commercial motor
        vehicles (CMV) as such regulations exist on December 31, 2020, and provides an additional day for
        CMV drivers to provide written notice that certain violations were corrected.
    Clarifies that safety belt usage requirements apply to a motor vehicle that is operated and stationary on
        the public highways of this state.
    Transfers the authority to conduct compliance reviews on non-public sector buses from the Department
        of Transportation (DOT) to DHSMV to conform to the previous transfer of CMV enforcement from DOT
        to DHSMV and makes clarifying and conforming changes.
    Conforms Florida’s odometer disclosure requirements to federal regulations.
    Requires motor carriers whose registration has been suspended to return their license plates.
    Requires DHSMV to deny registrations under the International Registration Plan for motor carriers
        meeting specified requirements.
    Permanently disqualifies anyone convicted of human trafficking through the use of a CMV from
        obtaining a commercial driver license.
    Adds texting while driving and using a hand-held mobile telephone while driving as serious disqualifying
        offenses on a commercial driver license.
    Provides DHSMV with subpoena authority to investigate complaints of violation of various statutes
        under its purview.

The bill does not appear to impact state or local government revenues or expenditures. See Fiscal Comments.

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




This document does not reflect the intent or official position of the bill sponsor or House of Representatives .
STORAGE NAME: h1151b.COM
DATE: 4/2/2021
                                                         FULL ANALYSIS

                                                 I. SUBSTANTIVE ANALYSIS

    A. EFFECT OF PROPOSED CHANGES:

         Adoption of Federal Commercial Motor Vehicle Regulations

         Current Situation
         Florida law provides that all owners and drivers of commercial motor vehicles1 (CMVs) operating on the
         public highways in interstate commerce are subject to the following Federal Motor Carrier Safety
         Administration (FMCSA)2 regulations:3

           49           Heading
           CFR
           Part
           382          Controlled Substance and Alcohol Use Testing
           383          Commercial Driver’s License Standards; Requirements and Testing
           385          Safety Fitness Procedures
           390          Federal Motor Carrier Safety Regulations; General
           391          Qualifications of Drivers and Longer Combination Vehicle Driver Instructors
           392          Driving of Commercial Motor Vehicles
           393          Parts and Accessories Necessary for Safe Operation
           395          Hours of Service for Drivers
           396          Inspection, Repair, and Maintenance
           397          Transportation of Hazardous Materials; Driving and Parking Rules

         However, Florida law provides that CMV drivers or owners engaged in intrastate commerce are only
         subject to FMCSA regulations as they existed in December 31, 2018.4

         Since 2018, the FMCSA has adopted final rules on controlled substance testing and hours of service
         regulations.

         Beginning January 1, 2020, the minimum rate for random controlled substance testing for drivers of
         CMVs requiring a commercial driver license (CDL) was increased from 25 percent to 50 percent per
         year. Since all owners and drivers of CMVs engaged in intrastate commerce are subject to the rules as
         they existed on December 31, 2018, the random controlled substances testing rate remains at 25
         percent for intrastate drivers.5

         Beginning September 29, 2020, FMCSA revised its hours-of-service regulations providing greater
         flexibility to CMV drivers subject to those rules, including revisions to the rules on required breaks/rest
         periods, additional exceptions during adverse conditions, and modifications to exceptions for short-haul
         trips.6


1
  Section 316.003(13), F.S., defines the term “commercial motor vehicle” as any self-propelled or towed vehicle used on the public
highways in commerce to transport passengers or cargo, if such vehicle has a gross vehicle weight rating of 10,000 pounds or more; is
designed to transport more than 15 passengers, including the driver; or is used in the transportation of materials found to be hazardous
for the purposes of the Hazardous Materials Transportation Act, as amended.
2
  The Federal Motor Carrier Safety Administration's (FMCSA) mission is to prevent commercial motor vehicle-related fatalities and
injuries. Activities of FMCSA contribute to ensuring safety in motor carrier operations through strong enforcement of safety
regulations, targeting high-risk carriers and commercial motor vehicle drivers; improving safety information systems and commercial
motor vehicle technologies; strengthening commercial motor vehicle equipment and operating standards; and increasing safety
awareness. https://www.federalregister.gov/agencies/federal-motor-carrier-safety-administration (last visited January 25, 2021).
3
  Ss. 316.302(1)(a) and (b), F.S..
4
  S. 316.302(1)(b), F.S.
5
  Department of Highway Safety and Motor Vehicles 2021 Agency Legislative Proposals, p.5.
6
  Id.
STORAGE NAME: h1151b.COM                                                                                                        PAGE: 2
DATE: 4/2/2021
         For the purpose of enforcing Florida law relating to CMVs, any law enforcement officer of DSHMV or
         duly appointed agent who holds a current safety inspector certification from the Commercial Vehicle
         Safety Alliance7 may require the driver of any CMV operated on the state’s highways to stop and
         submit to an inspection of the vehicle or the driver's records. If the vehicle or driver is found to be
         operating in an unsafe condition, or if any required part or equipment is not present or is not in proper
         repair or adjustment, and the continued operation would present an unduly hazardous operating
         condition, the officer may require the vehicle or the driver to be removed from service 8 until corrected.
         However, if continuous operation would not present an unduly hazardous operating condition, the
         officer may give written notice requiring correction of the condition within 14 days. 9 The 14 day
         requirement is inconsistent with federal requirements requiring carriers to provide written notice within
         15 days.10

         Effect of the Bill
         The bill provides that all CMV drivers and owners are subject to federal CMV rules contained in 49
         C.F.R. parts 382, 383, 385, 386, 390-397 as they exist on December 31, 2020.

         The bill increases the length of time for CMV operators to correct non-hazardous deficiencies from 14
         days to 15 days, consistent with federal requirements.

         Safety Belt Usage

         Current Situation
         Under the Florida Safety Belt Law, with some exceptions, it is unlawful for any person:
             To operate a motor vehicle or an autocycle11 unless each passenger and the operator of the
                vehicle or autocycle under the age of 18 years are restrained by a safety belt or by a child
                restraint device; or
             To operate a motor vehicle or an autocycle unless the person is restrained by a safety belt.12

         For the purpose of this law, the term “motor vehicle” means a motor vehicle as defined in s. 316.003,
         F.S.,13 which is operated on the roadways, streets, and highways of this state. The term does not
         include a school bus, a bus used for the transportation of persons for compensation. a farm tractor or
         implement of husbandry, a truck having a gross vehicle weight rating of more than 26,000 pounds, a
         motorcycle, a moped, a bicycle, or an electric bicycle.14

         Additionally, it is unlawful for any person 18 years of age or older to be a passenger in the front seat of
         a motor vehicle or an autocycle unless such person is restrained by a safety belt when the vehicle or




7
  The Commercial Vehicle Safety Alliance (CVSA) is a nonprofit association comprised of local, state, provincial, territorial and
federal commercial motor vehicle safety officials and industry representatives. The Alliance aims to achieve uniformity, compatibility
and reciprocity of commercial motor vehicle inspections and enforcement by certified inspectors dedicated to driver and vehicle
safety. https://www.cvsa.org/about-cvsa/ (Last visited January 25, 2021).
8
  This is pursuant to the North American Standard Out-of-Service Criteria.
9
  S. 316.302(9), F.S.
10
   Department of Highway Safety and Motor Vehicles, Agency Analysis of 2021 House Bill 1151, p. 2.
11
   Section 316.003(2), F.S., defines the term “autocycle” as a three-wheeled motorcycle that has two wheels in the front and one wheel
in the back; is equipped with a roll cage or roll hoops, a seat belt for each occupant, antilock brakes, a steering wheel, and seating that
does not require the operator to straddle or sit astride it; and is manufactured in accordance with the applicable federal motorcycle
safety standards in 49 C.F.R. part 571 by a manufacturer registered with the National Highway Traffic Safety Administration.
12
   S. 316.614(3), F.S.
13
   Section 316.003(44), F.S., defines the term “motor vehicle” as a self-propelled vehicle not operated upon rails or guideway, but not
including any bicycle, electric bicycle, motorized scooter, electric personal assistive mobility device, mobile carrier, personal delivery
device, swamp buggy, or moped.
14
   S. 316.641(3)(a), F.S.
STORAGE NAME: h1151b.COM                                                                                                           PAGE: 3
DATE: 4/2/2021
         autocycle is in motion.15 The statutory base fine of a nonmoving violation is $30;16 however, with
         various fees and surcharges, the total fine up to is $108.17

         Court cases have interpreted the Florida Safety Belt Law to apply only when the vehicle is in motion.18

         Effect of the Bill
         The bill amends the definition of the term “motor vehicle” for purposes of the Florida Safety Belt Law to
         provide that it includes a motor vehicle which is operated and stationary on the public highways of this
         state, for example a motor vehicle stopped at a traffic signal.

         Nonpublic Sector Buses

         Current Situation
         In 2011, DOT’s Office of Motor Carrier Compliance was transferred to the Florida Highway Patrol (FHP)
         within DHSMV.19 However, at that time, Florida law relating to nonpublic sector buses20 was not
         amended to correspond to other statutory changes. Therefore, Florida law still requires DOT to revise
         standards for the safe operation of nonpublic sector buses. These standards must be directed toward
         ensuring that:
              Nonpublic sector buses are safely maintained, equipped, and operated.
              Nonpublic sector buses are carrying the insurance required by law and carrying liability
                 insurance on the checked baggage of passengers.
              Florida license tags are purchased for nonpublic sector buses.
              The driving records of drivers of nonpublic sector buses are checked by their employers at least
                 once each year to ascertain whether the driver has a suspended or revoked driver license.21

         The statute currently provides that DOT personnel may conduct compliance reviews for determining
         compliance with these requirements. A civil penalty not to exceed $5,000 in the aggregate may be
         assessed against any person who violates any provision of this section or who violates any DOT rule or
         order. A civil penalty not to exceed $25,000 in the aggregate may be assessed for violations found in a
         follow-up compliance review conducted within a 24-month period. A civil penalty not to exceed $25,000
         in the aggregate may be assessed and the motor carrier may be enjoined pursuant to s. 316.3026,
         F.S., if violations are found after a second follow-up compliance review within 12 months after the first
         follow-up compliance review.22

         Effect of the Bill
         The bill transfers from DOT to DHSMV the authority to conduct compliance reviews on nonpublic sector
         buses. This conforms the statute to the 2011 transfer of CMV enforcement from DOT to DHSMV.

         The bill provides that all owners and drivers of nonpublic sector buses operated on highways in Florida
         are subject to applicable portions of the Code of Federal Regulations, removes duplicative standards
         for nonpublic sector buses, and removes the time periods for follow-up compliance investigations.
         While the bill removes penalty language, the bill references existing statutory language that provides for
         identical penalties.



15
   S. 316.614(5), F.S.
16
   S. 318.18(2), F.S.
17
   Florida Association Clerk of Courts, 2020 Distribution Schedule, p. 21.
https://cdn.ymaws.com/www.flclerks.com/resource/resmgr/advisories/advisories_2021/21bull005_Attach_2_2020_Dist.pdf (last
visited January 22, 2021).
18
   Department of Highway Safety and Motor Vehicles, Agency Analysis of 2021 House Bill 1151, p. 3.
19
   Ch. 2011-66, L.O.F.
20
   Section 316.003(47), F.S., defines the term “nonpublic sector bus” as any bus which is used for the transportation of persons for
compensation and which is not owned, leased, operated, or controlled by a municipal, county, or state government or a
governmentally owned or managed nonprofit corporation.
21
   S. 316.70(1), F.S.
22
   S. 316.70(2), F.S.
STORAGE NAME: h1151b.COM                                                                                                        PAGE: 4
DATE: 4/2/2021
         The bill also authorizes a law enforcement officer of the DHSMV or a duly appointed agent of DHSMV
         with a current safety inspector certification from the Commercial Vehicle Safety Alliance to inspect
         nonpublic sector buses and remove them from service if continued operation would present an unduly
         hazardous operating condition. However, if continuous operation would not be unduly hazardous, the
         officer or agent may give written notice requiring correction of the condition within 15 days after the
         inspection.

         Odometer Disclosure Requirements

         Current Situation
         Odometer fraud is a federal offense, and the National Highway Traffic Safety Administration (NHTSA)
         requires sellers to disclose and declare vehicle odometer readings at the time of sale. According to
         NHTSA, due to an increase in the current average vehicle age to almost 12 years from the previous
         average of eight years, an increasingly large number of vehicles are subject to a heightened risk of
         odometer fraud. In order to combat the increased number of motor vehicles subject to a risk of
         odometer fraud, NHTSA recently amended the federal rule regarding the exemption from odometer
         disclosure. The exemption, which previously applied to vehicles 10 years old or older, now applies to
         vehicles 20 years old or older, beginning with model year 2011 or newer in calendar year 2021.23

         Florida law is inconsistent with the current federal rules and, with limited exceptions, only requires
         certain odometer disclosures for vehicles 10 years old or newer.

         Effect of the Bill
         The bill conforms Florida law to NHTSA’s recently adopted odometer disclosure requirements by
         providing that a vehicle with a model year of 2011 or later is exempt from odometer disclosure after 20
         years and a vehicle with a model year of 2010 or earlier is exempt after 10 years.

         Performance and Registration Information Systems Management (PRISM)

         Current Situation

         Federal Regulations
         FMSCA’s Performance and Registration Information Systems Management (PRISM) program is a
         component of its mission to reduce the number of CMV crashes, injuries, and fatalities. PRISM
         provides a safety mechanism to identify and immobilize motor carriers24 with serious safety
         deficiencies25 and hold them accountable using registration and law enforcement sanctions. PRISM
         requires motor carriers to correct their safety deficiencies to continue operating or face progressively
         stringent sanctions.26

         Full participation in PRISM is mandatory for all states as a requirement of the Motor Carrier Safety
         Assistance Program. Florida is at the full participation level of PRISM.27

         FMCSA defines “enhanced participation” in regard to PRISM as when a state has the authority to deny
         vehicle registration to a motor carrier and its vehicles when the motor carrier is attempting to avoid
         FMCSA enforcement sanctions by “reincarnating” with a new United States Department of
         Transportation (USDOT) number and company name while maintaining the same officers and



23
   Department of Highway Safety and Motor Vehicles, Agency Analysis of 2021 House Bill 1151, p. 3
24
   The term “motor carrier” means a for-hire motor carrier or a private motor carrier. The term includes a motor carrier's agents,
officers and representatives as well as employees responsible for hiring, supervising, training, assigning, or dispatching of drivers and
employees concerned with the installation, inspection, and maintenance of motor vehicle equipment and/or accessories. 49 C.F.R. s.
390.5.
25
   FMCSA defines the term “motor carrier with serious safety deficiencies” as a motor carrier that is prohibited from operating by
FMCSA through the issuance of a federal out-of-service (“OOS”) order.
26
   Department of Highway Safety and Motor Vehicles, Agency Analysis of 2021 House Bill 1151 p. 3 (March 10, 2021).
27 Id.
STORAGE NAME: h1151b.COM                                                                                                          PAGE: 5
DATE: 4/2/2021
         directors, business address, telephone number, and email of the out-of-service carrier. Currently,
         DHSMV does not have this authority.28

         While FMCSA has the ability to sanction motor carriers for safety deficiencies, vehicle registrations are
         solely within state jurisdiction. The enhanced participation level of PRISM requires states to suspend,
         revoke, or deny vehicle registration of a motor carrier’s vehicles when the motor carrier is prohibited
         from operating by FMCSA. Companies that operate commercial vehicles transporting passengers or
         hauling cargo in interstate commerce must be registered with FMCSA, have a USDOT number, and
         comply with federal safety regulations in order to have their vehicles registered under the International
         Registration Plan.29 When a company fails to meet FMCSA safety requirements, it may be placed out-
         of-service.30

         In Florida, attempts to register as a reincarnated carrier occur on a regular basis. Because DSHMV
         does not have the authority to deny registration, there is currently no way to track how many Florida-
         based carriers who reincarnate are circumventing FMCSA sanctions.31

         An effectiveness evaluation report released in February 2016 by FMCSA’s Strategic Planning and
         Program Evaluation Division determined that, between 2008 and 2013, states that fully participated in
         PRISM compared to non-fully participating states have
             A 20.4 percent observable reduction in all CMV crashes,
             A 9.8 percent observable reduction in fatalities involving all CMV crashes, and
             A 6.9 percent reduction in state registered CMVs being placed out-of-service roadside for
                operating while under a federal out-of-service order.32

         Effect of the Bill
         The bill requires motor carriers or vehicle owners to return suspended plates to DHSMV or surrender
         them to law enforcement.

         The bill authorizes DHSMV to deny registration if an applicant fails to disclose material information
         required on the application, or if the applicant attempts to hide the disclosure of the real party in interest
         who has been issued a federal out-of-service order, or if the applicant’s business is operated,
         managed, or otherwise controlled or affiliated with a person who is ineligible for registration, including
         the applicant entity, a relative, family member, corporate officer, or shareholder.

         Human Trafficking

         Current Situation
         Florida’s criminal laws define the term “human trafficking” as transporting, soliciting, recruiting,
         harboring, providing, enticing, maintaining, or obtaining another person for the purpose of exploitation
         of that person. 33

         Federal law defines the term “severe forms of trafficking in persons” as:
             Sex trafficking in which a commercial sex act is induced by force, fraud, or coercion, or in which
               the person induced to perform such act has not attained 18 years of age; or
             The recruitment, harboring, transportation, provision, or obtaining of a person for labor or
               services, through the use of force, fraud, or coercion for the purpose of subjection to involuntary
               servitude, peonage, debt bondage, or slavery.34

28
   Id.
29
    The International Registration Plan (Plan) is a reciprocity agreement among states of the US, the District of Columbia and
provinces of Canada which recognizes the registration of commercial motor vehicles registered by other jurisdictions. It provides for
payment of apportioned licensing fees based on the total distance operated in all member jurisdictions. https://www.irponline.org/ (last
visited March 18, 2021).
30
   Department of Highway Safety and Motor Vehicles, Agency Analysis of 2021 House Bill 1151 p. 4 (March 10, 2021).
31
   Id. at 4.
32
   Id. at 4.
33
   S. 787.06(2)(d), F.S.
34
   22 U.S.C. 7012 (11)
STORAGE NAME: h1151b.COM                                                                                                        PAGE: 6
DATE: 4/2/2021
        On January 8, 2019, the federal “No Human Trafficking on Our Roads Act” was signed into law. This
        legislation directs the USDOT to disqualify for life any individual who uses a CMV in committing a
        felony involving a severe form of trafficking in persons. On September 23, 2019, an FMCSA rule went
        into effect that permanently bans drivers convicted of human trafficking from operating a CMV for which
        a CDL or a commercial learner’s permit is required.35

        Currently, Florida does not have specific statutory authority to take action against a CDL when an
        individual commits a felony involving human trafficking.36

        Effect of the Bill
        The bill defines the term “human trafficking” for purposes of the driver license law as having same
        meaning as provided in Florida’s criminal laws.

        The bill provides that DHSMV may not issue a driver license to any person, as a CMV operator, who
        has been convicted of, or has entered a plea of guilty or nolo contendere, regardless of whether
        adjudication was withheld, to any felony involving human trafficking under state or federal law involving
        the use of a CMV.

        The bill requires each clerk of court to promptly report to DHSMV each conviction, regardless of
        whether adjudication was withheld, for human trafficking which involves the use of a CMV.

        The bill requires the court to permanently revoke the CDL of a person who has been convicted of, or
        has entered a plea of guilty or nolo contendere, regardless of whether adjudication is withheld to any
        felony involving human trafficking under state or federal law involving the use of a commercial motor
        vehicle. If the court has not permanently revoked such driver license or driving privilege within 30 days
        after imposing a sentence, DHSMV must permanently revoke the driver license or driving privilege.

        The bill provides that any person who uses a CMV involving human trafficking under state or federal
        law must, be permanently disqualified from operating a commercial motor vehicle upon conviction of, or
        plea of guilty or nolo contendere to, regardless of whether adjudication is withheld, such felony. This is
        in addition to any other applicable penalty.

        CDL Eight Year Requirement

        Current Situation
        Pursuant to s. 322.18, F.S., DHSMV issues an original CDL that expires eight years from the date of
        the driver’s next birthday. This allows an original CDL holder to have a license that is valid for more
        than eight years from the issue date. However, under federal regulations37 a CDL cannot be valid for
        more than eight years from the date of issuance. This issue has been pointed out as a deficiency in an
        FMCSA compliance audit.38

        Effect of the Bill
        The bill provides that a CDL expires at midnight eight years after the licensee’s last birthday. This
        change will not impact current CDL holders.39

        CMV-Serious Disqualifying Offense

        Current Situation
        In 2013, the Legislature codified a federal prohibition on drivers of CMVs using handheld devices while
        driving. However, at that time, the law was not amended to add this infraction to the list of serious
        disqualifying offenses.

35
   Department of Highway Safety and Motor Vehicles, Agency Analysis of 2021 House Bill 1151, p. 4. (March 5, 2021).
36
   Id.
37
   49 C.F.R. s. 383.73
38
   Department of Highway Safety and Motor Vehicles, Agency Analysis of 2021 House Bill 1151, p. 5. (March 5, 2021).
39
   Id. at 7.
STORAGE NAME: h1151b.COM                                                                                              PAGE: 7
DATE: 4/2/2021
        Under current law, a person who, for offenses occurring within a three-year period, is convicted of two
        serious traffic violations arising in separate incidents committed in a CMV must, in addition to any other
        applicable penalties, be disqualified from operating a CMV for a period of 60 days. A holder of a CDL or
        commercial learner’s permit who, for offenses occurring within a 3-year period, is convicted of two
        serious traffic violations, or any combination thereof, arising in separate incidents committed in a
        noncommercial motor vehicle must, in addition to any other applicable penalties, be disqualified from
        operating a CMV for a period of 60 days if such convictions result in the suspension, revocation, or
        cancellation of the license holder’s driving privilege. Current serious disqualifying offenses include, but
        are not limited to, reckless driving, driving a CMV without a CMV license, improper lane change, and
        following too close.40

        When these violations occur in other states, DHSMV places these violations on the driver record as
        “not applicable to Florida Statutes” and does not evaluate them to determine if a disqualification should
        be imposed on the driver. This situation was addressed in a recent FMCSA compliance audit.41

        Effect of the Bill
        The bill provides that texting while driving a commercial motor vehicle or using a hand-held mobile
        telephone while driving a commercial motor vehicle as provided by federal regulations are serious
        disqualifying offenses for a CDL. This will give DHSMV the statutory authority to comply with the
        deficiency in the FMCSA compliance audit.

        Subpoena Authority

        Current Situation
        Under current law, DHSMV has limited authority to issue investigatory subpoenas. Specifically, s.
        320.67 and s. 320.861, F.S., authorize DHSMV to issue a subpoena for the attendance of witnesses
        and production of documents when DHSMV receives a written complaint against a motor vehicle dealer
        or manufacturer. The two statutes are largely redundant, with the only material difference being that s.
        320.67, F.S., additionally provides that any information obtained may not be used against the dealer or
        manufacturer as the basis for a criminal prosecution.42

        DHSMV has implemented a pilot program in Miami-Dade County in which it regulates private rebuilt
        inspection providers,43 who inspect rebuilt motor vehicles as a prerequisite to issuance of a rebuilt
        certificate of title. This inspection process is designed to prevent the use of stolen parts and vehicles in
        the rebuilding process and assists law enforcement with the investigation of theft and related fraud.
        This inspection process was privatized in Miami-Dade County as part of a pilot program which was later
        extended in 2019. Pursuant to s. 319.141, F.S., DHSMV has entered into memoranda of understanding
        (MOU) with private rebuilt inspection providers to provide these services in Miami-Dade County.44

        Currently, DHSMV does not have the statutory authority to open an investigation of a private rebuilt
        inspection provider, issue subpoenas, or take testimony from witnesses in determining whether the
        provider has violated ch. 319, F.S., or the MOU between DHSMV and the provider. In certain
        instances, it may be necessary to investigate a private rebuilt inspection provider when the entity may
        be colluding with a chop shop to disguise the identity of a stolen motor vehicle and obtain a clean title
        to the vehicle. DHSMV currently lacks authority to issue subpoenas to third parties that may aid in
        determining whether the private rebuilt inspection provider has violated ch. 319, F.S., or a contract term
        in the MOU.45



40
   Section 322.61(1), F.S.
41
   Department of Highway Safety and Motor Vehicles, Agency Analysis of 2021 House Bill 1151, p. 4. (March 5, 2021).
42
   Email from Kevin Jacobs, Legislative Affairs Director, Department of Highway Safety and Motor Vehicles, RE: Investigative
Authority. (March 18, 2021).
43
   The pilot program is conducted pursuant to s. 319.141, F.S.,
44
   Supra note 42.
45
   Id.
STORAGE NAME: h1151b.COM                                                                                                  PAGE: 8
DATE: 4/2/2021
        Additionally, DHSMV lacks authority to issue investigatory subpoenas and take testimony as part of an
        investigation of a person for violating provisions of ch. 319, F.S., relating to title certificates; ch. 320,
        F.S., relating to motor vehicle manufacturers and dealers; or ch. 322, F.S., relating to driver licenses.
        According to DHSMV, this prevents it from obtaining critical testimony and documents from third-party
        entities which may demonstrate violations of these chapters sufficient to warrant appropriate regulatory
        action by DHSMV and/or referral to another entity for further action.46

        Examples of issues that DHSMV may use subpoena authority to investigate include odometer rollback,
        fraudulent repair and storage title transactions, and driver license fraud.47

        Effect of the Bill
        The bill authorizes DHSMV to issue investigatory subpoenas, take depositions, and compel the
        production of documents as it relates to the following:
             Potential violations related to authorized private rebuilt inspection providers;
             Potential violations of ch. 319, F.S., such as unlawful issuances of certificates of title;
             Potential violations of ch. 320, F.S., by motor vehicle dealers and manufacturers; and
             Potential violations of ch. 322, F.S., such as unlawful issuances of driver licenses and
                identification cards.

        In addition to the expanded authority to conduct such investigations, the bill establishes a procedure for
        enforcing subpoenas in the event of noncompliance. The bill provides DHSMV with the authority to
        enforce the subpoena in circuit court and subject the person subpoenaed to a contempt of court order
        in the event of continued noncompliance. DHSMV may designate agents to serve subpoenas and
        adopt rules to administer these sections.

        HB 1359 (2021) to which this bill is linked, creates a public records exemption from disclosure for all
        information received by DHSMV as a result of an investigation. The exemption would cease when the
        investigation is closed or when administrative action taken by DHSMV has either concluded or resulted
        in the information having been made a part of any hearing or court proceeding. HB 1359 further
        clarifies that DHSMV may release information that is made confidential and exempt in the furtherance
        of its official duties and responsibilities or the duties and responsibilities of another governmental
        agency entitled to receive such information.

        Effective Date

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

     B. SECTION DIRECTORY:
        Section 1 Amends s. 316.302, F.S., relating to commercial motor vehicles.

        Section 2 Amends s. 316.614, F.S., relating to safety belt usage.

        Section 3 Amends s. 316.70, F.S., relating to nonpublic sector buses.

        Section 4 Amends s. 319.225, F.S., relating to transfer and reassignment forms and odometer
        disclosure statements.

        Section 5 Amends s. 320.0715, F.S., relating to the International Registration Plan.

        Section 6 Amends s. 322.01, F.S., providing definitions.

        Section 7 Amends s. 322.05, F.S., relating to persons not to be licensed.


46
  Id.
47
  Attachment to E-mail from Kevin Jacobs, Legislative Affairs Director, Department of Highway Safety and Motor Vehicles, RE:
Subpoena Authority Examples. (March 12, 2021).
STORAGE NAME: h1151b.COM                                                                                                PAGE: 9
DATE: 4/2/2021
       Section 8 Amends s. 322.18, F.S., relating to original applications, licenses, and renewals.

       Section 9 Amends s. 322.25, F.S., relating to when a court must forward license to DHSMV and report
       convictions.

       Section 10 Amends s. 322.28, F.S., relating to period of suspension or revocation.

       Section 11 Amends s. 322.61, F.S., relating to disqualification from operating a commercial motor
       vehicle.

       Section 12 Creates s. 319.1414, F.S., relating to investigations; examinations; subpoenas; hearings;
       witnesses.

       Section 13 Amends s. 319.25, F.S., relating to cancellation of certificates; investigations; subpoenas
       and other process; oaths; rules.

       Section 14 Amends s. 320.861, F.S., relating to investigations, subpoenas, and other process; oaths,
       rules.

       Section 15 Creates s. 322.71, F.S., relating to investigations, subpoenas and other process; oaths,
       rules.

       Section 16 Amends s. 322.34, F.S., conforming a cross reference.

       Section 17 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:
       None.

   D. FISCAL COMMENTS:
       While the bill does not have a direct impact on state government revenues, state noncompliance with
       certain federal regulations related to human trafficking using a CMV, serious disqualifying offenses for
       CMV drivers, and failing to achieve compatibility with FMCSA regulations within three years of the



STORAGE NAME: h1151b.COM                                                                                 PAGE: 10
DATE: 4/2/2021
        effective date of the federal regulation could impact the state’s receipt of federal funds.48 The bill
        appears to achieve state compliance with these regulations.


                                                    III. COMMENTS

     A. CONSTITUTIONAL ISSUES:

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

        2. Other:
           None.

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

     C. DRAFTING ISSUES OR OTHER COMMENTS:
        None.


                           IV. AMENDMENTS/ COMMITTEE SUBSTITUTE CHANGES
     On March 22, 2021, the Tourism, Infrastructure & Energy Subcommittee adopted two amendments and
     reported the bill favorably as a committee substitute. The committee substitute:
      Revises provisions regarding non-public sector buses:
             o Replaces language regarding penalties for violations by non-public sector buses with references
                to existing law related to commercial motor vehicle penalties. The penalties do not change.
             o Addresses commercial motor vehicle violations that do not create hazards and provides 15 days
                for operators to provide notice that certain violations were corrected.
      Provides DHSMV with investigative and subpoena power and the ability to administer oaths or
        affirmations, examine witnesses, require affidavits, take depositions, and compel the attendance of
        witnesses and the production of documents, records, and other evidence for use in conducting
        investigations or examinations into:
             o Authorized private rebuilt inspection providers;
             o Persons suspected of violating violated ch. 319, F.S., relating to motor vehicle title certificates;
             o Persons suspected of violating violated ch. 320, F.S., relating to motor vehicles manufacturers
                and distributors; and
             o Persons suspected of violating violated ch. 322, F.S., relating to driver licenses.

     This analysis is drafted to the committee substitute as approved by the Tourism, Infrastructure & Energy
     Subcommittee.




48
  E-mail from Kevin Jacobs, Legislative Affairs Director, Department of Highway Safety and Motor Vehicles, RE: DHSMV Package
questions. (February 24, 2021).
STORAGE NAME: h1151b.COM                                                                                            PAGE: 11
DATE: 4/2/2021
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




           CS/HB 1151                                                                                           2021




    1                                         A bill to be entitled
    2              An act relating to the Department of Highway Safety
    3              and Motor Vehicles; amending s. 316.302, F.S.;
    4              revising regulations applicable to owners and drivers
    5              of commercial motor vehicles; revising the length of
    6              time within which an officer is authorized to give
    7              written notice requiring correction of an unduly
    8              hazardous operating condition; amending s. 316.614,
    9              F.S.; revising the definition of the term "motor
10                 vehicle"; amending s. 316.70, F.S.; providing that
11                 owners and drivers of nonpublic sector buses operated
12                 on public highways of this state are subject to
13                 specified provisions of law; authorizing the
14                 Department of Highway Safety and Motor Vehicles to
15                 conduct compliance reviews for a specified purpose;
16                 revising civil penalties; authorizing certain law
17                 enforcement officers and appointed agents to require
18                 drivers of nonpublic sector buses to submit to an
19                 inspection of the bus and the driver's records;
20                 authorizing such officers and agents to require the
21                 bus and driver to be removed from service under
22                 specified conditions; authorizing such officers and
23                 agents to give written notice; conforming provisions
24                 to changes made by the act; amending s. 319.225, F.S.;
25                 revising applicability; providing that vehicles that

                                                         Page 1 of 31

        CODING: Words stricken are deletions; words underlined are additions.
                                                                                                            hb1151-01-c1
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 1151                                                                                           2021




26              meet certain conditions are exempt from odometer
27              disclosure after specified periods of time; amending
28              s. 320.0715, F.S.; requiring motor carriers and
29              vehicle owners whose registrations have been suspended
30              to return their license plates to the department or
31              surrender their license plates to law enforcement;
32              requiring the department to deny registration of a
33              motor vehicle trip permit under certain conditions;
34              amending s. 322.01, F.S.; defining the term "human
35              trafficking"; amending s. 322.05, F.S.; prohibiting
36              the department from issuing a license to any person as
37              a commercial motor vehicle operator under specified
38              conditions; amending s. 322.18, F.S.; providing that
39              commercial driver licenses expire at midnight 8 years
40              after the licensee's birthday; amending s. 322.25,
41              F.S.; requiring clerks of court to promptly report to
42              the department each conviction for human trafficking,
43              regardless of whether adjudication is withheld;
44              amending s. 322.28, F.S.; requiring the court to
45              permanently revoke the commercial driver license of a
46              person under specified conditions; requiring the
47              department to permanently revoke the driver license or
48              driving privilege of the person if the court has not
49              revoked such driver license or driving privilege
50              within a specified timeframe; amending s. 322.61,

                                                      Page 2 of 31

     CODING: Words stricken are deletions; words underlined are additions.
                                                                                                         hb1151-01-c1
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 1151                                                                                           2021




51              F.S.; revising provisions for disqualification from
52              operating a commercial motor vehicle; providing a
53              penalty for any person who uses a commercial motor
54              vehicle in the commission of a felony involving human
55              trafficking; creating s. 319.1414, F.S.; authorizing
56              the department to conduct investigations and
57              examinations of department-authorized private rebuilt
58              inspection providers; authorizing the department to
59              exercise certain powers when conducting such
60              investigations and examinations; authorizing the
61              department to petition a court if a person refuses to
62              testify, produce materials, or obey a subpoena or
63              subpoena duces tecum; requiring the court to issue an
64              order; requiring such person to obey the subpoena or
65              show cause for failing to obey the subpoena; providing
66              a penalty for a person who fails to comply with the
67              court's order; authorizing the department to designate
68              agents for specified purposes; providing that
69              subpoenaed witnesses are entitled to witness fees;
70              providing exceptions; authorizing the department to
71              adopt rules; amending s. 319.25, F.S.; authorizing the
72              department to conduct investigations and examinations
73              relating to violations of provisions relating to title
74              certificates; authorizing the department to exercise
75              certain powers when conducting such investigations and

                                                      Page 3 of 31

     CODING: Words stricken are deletions; words underlined are additions.
                                                                                                         hb1151-01-c1
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 1151                                                                                           2021




76               examinations; authorizing the department to petition a
77               court if a person refuses to testify, produce
78               materials, or obey a subpoena or subpoena duces tecum;
79               requiring the court to issue an order; requiring such
80               person to obey the subpoena or show cause for failing
81               to obey the subpoena; providing a penalty for a person
82               who fails to comply with the court's order;
83               authorizing the department to designate agents for
84               specified purposes; providing that subpoenaed
85               witnesses are entitled to witness fees; providing
86               exceptions; authorizing the department to adopt rules;
87               amending s. 320.861, F.S.; authorizing the department
88               to conduct investigations and examinations relating to
89               violations of certain laws, rules, or orders relating
90               to motor vehicle licenses; revising the powers of the
91               department relating to conducting such investigations
92               and examinations; authorizing the department to
93               petition a court if a person refuses to testify,
94               produce materials, or obey a subpoena or subpoena
95               duces tecum; requiring the court to issue an order;
96               requiring such person to obey the subpoena or show
97               cause for failing to obey the subpoena; providing a
98               penalty for a person who fails to comply with the
99               court's order; authorizing the department to designate
100              agents for specified purposes; providing that

                                                       Page 4 of 31

      CODING: Words stricken are deletions; words underlined are additions.
                                                                                                          hb1151-01-c1
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 1151                                                                                           2021




101              subpoenaed witnesses are entitled to witness fees;
102              providing exceptions; authorizing the department to
103              adopt rules; creating s. 322.71, F.S.; authorizing the
104              department to conduct investigations and examinations
105              relating to violations of certain laws, rules, or
106              orders relating to driver licenses; authorizing the
107              department to exercise certain powers when conducting
108              such investigations and examinations; authorizing the
109              department to petition a court if a person refuses to
110              testify, produce materials, or obey a subpoena or
111              subpoena duces tecum; requiring the court to issue an
112              order; requiring such person to obey the subpoena or
113              show cause for failing to obey the subpoena; providing
114              a penalty for a person who fails to comply with the
115              court's order; authorizing the department to designate
116              agents for specified purposes; providing that
117              subpoenaed witnesses are entitled to witness fees;
118              providing exceptions; authorizing the department to
119              adopt rules; amending s. 322.34, F.S.; conforming a
120              cross-reference; providing an effective date.
121
122      Be It Enacted by the Legislature of the State of Florida:
123
124              Section 1.         Paragraph (b) of subsection (1) and subsection
125      (9) of section 316.302, Florida Statutes, are amended to read:

                                                       Page 5 of 31

      CODING: Words stricken are deletions; words underlined are additions.
                                                                                                          hb1151-01-c1
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 1151                                                                                           2021




126              316.302       Commercial motor vehicles; safety regulations;
127      transporters and shippers of hazardous materials; enforcement.—
128              (1)
129              (b)     Except as otherwise provided in this section, all
130      owners and or drivers of commercial motor vehicles that are
131      engaged in intrastate commerce are subject to the rules and
132      regulations contained in 49 C.F.R. parts 382, 383, 385, 386, and
133      390-397, as such rules and regulations existed on December 31,
134      2020 2018.
135              (9)     For the purpose of enforcing this section, any law
136      enforcement officer of the Department of Highway Safety and
137      Motor Vehicles or duly appointed agent who holds a current
138      safety inspector certification from the Commercial Vehicle
139      Safety Alliance may require the driver of any commercial vehicle
140      operated on the highways of this state to stop and submit to an
141      inspection of the vehicle or the driver's records. If the
142      vehicle or driver is found to be operating in an unsafe
143      condition, or if any required part or equipment is not present
144      or is not in proper repair or adjustment, and the continued
145      operation would present an unduly hazardous operating condition,
146      the officer may require the vehicle or the driver to be removed
147      from service pursuant to the North American Standard Out-of-
148      Service Criteria, until corrected. However, if continuous
149      operation would not present an unduly hazardous operating
150      condition, the officer may give written notice requiring

                                                       Page 6 of 31

      CODING: Words stricken are deletions; words underlined are additions.
                                                                                                          hb1151-01-c1
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 1151                                                                                           2021




151      correction of the condition within 15 14 days.
152              (a)      Any member of the Florida Highway Patrol or any law
153      enforcement officer employed by a sheriff's office or municipal
154      police department authorized to enforce the traffic laws of this
155      state pursuant to s. 316.640 who has reason to believe that a
156      vehicle or driver is operating in an unsafe condition may, as
157      provided in subsection (11), enforce the provisions of this
158      section.
159              (b)      Any person who fails to comply with an officer's
160      request to submit to an inspection under this subsection commits
161      a violation of s. 843.02 if the person resists the officer
162      without violence or a violation of s. 843.01 if the person
163      resists the officer with violence.
164              Section 2.         Paragraph (a) of subsection (3) of section
165      316.614, Florida Statutes, is amended to read:
166              316.614       Safety belt usage.—
167              (3)      As used in this section:
168              (a)      "Motor vehicle" means a motor vehicle as defined in s.
169      316.003 which is operated on the roadways, streets, and highways
170      of this state or when stationary at a traffic control device.
171      The term does not include:
172              1.      A school bus.
173              2.      A bus used for the transportation of persons for
174      compensation.
175              3.      A farm tractor or implement of husbandry.

                                                       Page 7 of 31

      CODING: Words stricken are deletions; words underlined are additions.
                                                                                                          hb1151-01-c1
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 1151                                                                                           2021




176              4.      A truck having a gross vehicle weight rating of more
177      than 26,000 pounds.
178              5.      A motorcycle, a moped, a bicycle, or an electric
179      bicycle.
180              Section 3.         Section 316.70, Florida Statutes, is amended to
181      read:
182              316.70       Nonpublic sector buses; safety rules.—
183              (1)     All owners and drivers of nonpublic sector buses
184      operated on the public highways of this state are subject to the
185      rules and regulations The Department of Transportation shall
186      establish and revise standards to ensure the safe operation of
187      nonpublic sector buses, which standards shall be those contained
188      in 49 C.F.R. parts 382, 385, and 390-397 to ensure and which
189      shall be directed toward ensuring that:
190              (a)      Nonpublic sector buses are safely maintained,
191      equipped, and operated.
192              (b)      Nonpublic sector buses are carrying the insurance
193      required by law and carrying liability insurance on the checked
194      baggage of passengers not to exceed the standard adopted by the
195      United States Department of Transportation.
196              (c)      Florida license tags are purchased for nonpublic
197      sector buses pursuant to s. 320.38.
198              (d)      The driving records of drivers of nonpublic sector
199      buses are checked by their employers at least once each year to
200      ascertain whether the driver has a suspended or revoked driver

                                                       Page 8 of 31

      CODING: Words stricken are deletions; words underlined are additions.
                                                                                                          hb1151-01-c1
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 1151                                                                                           2021




201      license.
202              (2)     Department of Highway Safety and Motor Vehicles
203      Transportation personnel may conduct compliance reviews for the
204      purpose of determining compliance with this section. A civil
205      penalty not to exceed $5,000 in the aggregate may be assessed
206      against any person who violates any provision of this section or
207      who violates any rule or order of the department found during a
208      compliance review as provided in s. 316.3025. A of
209      Transportation. A civil penalty not to exceed $25,000 in the
210      aggregate may be assessed for violations found in a followup
211      compliance review conducted within a 24-month period. A civil
212      penalty not to exceed $25,000 in the aggregate may be assessed
213      and the motor carrier may be enjoined from operation pursuant to
214      s. 316.3026 for if violations found during a are found after a
215      second followup compliance review within 12 months after the
216      first followup compliance review. Motor carriers found to be
217      operating without insurance coverage required by s. 627.742 or
218      49 C.F.R. part 387 may be enjoined as provided in s. 316.3026.
219              (3)     For the purpose of enforcing this section, any law
220      enforcement officer of the Department of Highway Safety and
221      Motor Vehicles or a duly appointed agent of the department who
222      holds a current safety inspector certification from the
223      Commercial Vehicle Safety Alliance may require the driver of any
224      nonpublic sector bus operated on the highways of this state to
225      stop and submit to an inspection of the vehicle or the driver's

                                                       Page 9 of 31

      CODING: Words stricken are deletions; words underlined are additions.
                                                                                                          hb1151-01-c1
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 1151                                                                                           2021




226      records. If the vehicle is being operated or the driver is
227      operating the vehicle in an unsafe condition, or if any required
228      part or equipment is not present or is not in proper repair or
229      adjustment, and the continued operation would be unduly
230      hazardous, the officer or agent may require the vehicle or the
231      driver to be removed from service pursuant to the North American
232      Standard Out-of-Service Criteria until all safety concerns are
233      corrected. However, if continuous operation would not be unduly
234      hazardous, the officer or agent may give written notice
235      requiring correction of the condition within 15 days after the
236      inspection.
237              (4)(3)       School buses subject to the provisions of chapter
238      1006 or s. 316.615 are exempt from the provisions of this
239      section.
240              Section 4.         Subsection (4) of section 319.225, Florida
241      Statutes, is amended to read:
242              319.225       Transfer and reassignment forms; odometer
243      disclosure statements.—
244              (4)     Upon transfer or reassignment of a certificate of
245      title to a used motor vehicle, the transferor shall complete the
246      odometer disclosure statement provided for by this section and
247      the transferee shall acknowledge the disclosure by signing and
248      printing his or her name in the spaces provided. This subsection
249      does not apply to a vehicle that has a gross vehicle rating of
250      more than 16,000 pounds, a vehicle that is not self-propelled,

                                                      Page 10 of 31

      CODING: Words stricken are deletions; words underlined are additions.
                                                                                                          hb1151-01-c1
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 1151                                                                                           2021




251      or a vehicle that is exempt from odometer disclosure. A vehicle
252      with a model year of 2011 or newer is exempt from odometer
253      disclosure after 20 years, and a vehicle with a model year of
254      2010 or older is exempt from odometer disclosure after 10 years
255      old or older. A lessor who transfers title to his or her vehicle
256      without obtaining possession of the vehicle shall make odometer
257      disclosure as provided by 49 C.F.R. s. 580.7. Any person who
258      fails to complete or acknowledge a disclosure statement as
259      required by this subsection is guilty of a misdemeanor of the
260      second degree, punishable as provided in s. 775.082 or s.
261      775.083. The department may not issue a certificate of title
262      unless this subsection has been complied with.
263              Section 5.          Subsections (6) and (7) are added to section
264      320.0715, Florida Statutes, to read:
265              320.0715          International Registration Plan; motor carrier
266      services; permits; retention of records.—
267              (6)     A motor carrier or vehicle owner whose registration
268      has been suspended shall return his or her license plate to the
269      department or surrender his or her license plates to law
270      enforcement.
271              (7)     The department shall deny registration if:
272              (a)     The applicant fails to disclose material information
273      required on the application;
274              (b)     The applicant has applied in an attempt to hide the
275      disclosure of the real party in interest who has been issued a

                                                      Page 11 of 31

      CODING: Words stricken are deletions; words underlined are additions.
                                                                                                          hb1151-01-c1
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 1151                                                                                           2021




276      federal out-of-service order; or
277              (c)     The applicant's business is operated, managed, or
278      otherwise controlled by or affiliated with a person who is
279      ineligible for registration, including the applicant entity, a
280      relative, a family member, a corporate officer, or a
281      shareholder.
282              Section 6.         Present subsections (25) through (47) of
283      section 322.01, Florida Statutes, are redesignated as
284      subsections (26) through (48), respectively, and a new
285      subsection (25) is added to that section, to read:
286              322.01        Definitions.—As used in this chapter:
287              (25)        "Human trafficking" has the same meaning as provided
288      in s. 787.06(2)(d).
289              Section 7.         Subsection (12) is added to section 322.05,
290      Florida Statutes, to read:
291              322.05        Persons not to be licensed.—The department may not
292      issue a license:
293              (12)        To any person, as a commercial motor vehicle
294      operator, who has been convicted of, or has entered a plea of
295      guilty or nolo contendere to, regardless of whether adjudication
296      was withheld, any felony involving human trafficking under state
297      or federal law involving the use of a commercial motor vehicle.
298              Section 8.         Paragraph (f) is added to subsection (2) of
299      section 322.18, Florida Statutes, to read:
300              322.18       Original applications, licenses, and renewals;

                                                      Page 12 of 31

      CODING: Words stricken are deletions; words underlined are additions.
                                                                                                          hb1151-01-c1
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 1151                                                                                           2021




301      expiration of licenses; delinquent licenses.—
302              (2)     Each applicant who is entitled to the issuance of a
303      driver license, as provided in this section, shall be issued a
304      driver license, as follows:
305              (f)     Notwithstanding any other provision of this chapter,
306      an applicant applying for an original issuance of a commercial
307      driver license as defined in s. 322.01(7) shall be issued a
308      driver license that expires at midnight 8 years after the
309      licensee's last birthday.
310              Section 9.         Subsection (7) is added to section 322.25,
311      Florida Statutes, to read:
312              322.25       When court to forward license to department and
313      report convictions.—
314              (7)     Each clerk of court shall promptly report to the
315      department each conviction, regardless of whether adjudication
316      was withheld, for human trafficking which involves the use of a
317      commercial motor vehicle.
318              Section 10.           Subsection (8) is added to section 322.28,
319      Florida Statutes, to read:
320              322.28       Period of suspension or revocation.—
321              (8)     The court shall permanently revoke the commercial
322      driver license of a person who is convicted of, or has entered a
323      plea of guilty or nolo contendere to, regardless of whether
324      adjudication is withheld, any felony involving human trafficking
325      under state or federal law which involves the use of a

                                                      Page 13 of 31

      CODING: Words stricken are deletions; words underlined are additions.
                                                                                                          hb1151-01-c1
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 1151                                                                                           2021




326      commercial motor vehicle. If the court has not permanently
327      revoked such driver license or driving privilege within 30 days
328      after imposing a sentence, the department must permanently
329      revoke the driver license or driving privilege pursuant to this
330      section.
331              Section 11.           Section 322.61, Florida Statutes, is amended
332      to read:
333              322.61       Disqualification from operating a commercial motor
334      vehicle.—
335              (1)     A person who, for offenses occurring within a 3-year
336      period, is convicted of two of the following serious traffic
337      violations or any combination thereof, arising in separate
338      incidents committed in a commercial motor vehicle shall, in
339      addition to any other applicable penalties, be disqualified from
340      operating a commercial motor vehicle for a period of 60 days. A
341      holder of a commercial driver license or commercial learner's
342      permit who, for offenses occurring within a 3-year period, is
343      convicted of two of the following serious traffic violations, or
344      any combination thereof, arising in separate incidents committed
345      in a noncommercial motor vehicle shall, in addition to any other
346      applicable penalties, be disqualified from operating a
347      commercial motor vehicle for a period of 60 days if such
348      convictions result in the suspension, revocation, or
349      cancellation of the licenseholder's driving privilege:
350              (a)     A violation of any state or local law relating to

                                                      Page 14 of 31

      CODING: Words stricken are deletions; words underlined are additions.
                                                                                                          hb1151-01-c1
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 1151                                                                                           2021




351      motor vehicle traffic control, other than a parking violation,
352      arising in connection with a crash resulting in death;
353              (b)     Reckless driving, as defined in s. 316.192;
354              (c)     Unlawful speed of 15 miles per hour or more above the
355      posted speed limit;
356              (d)     Improper lane change, as defined in s. 316.085;
357              (e)     Following too closely, as defined in s. 316.0895;
358              (f)     Driving a commercial vehicle without obtaining a
359      commercial driver license;
360              (g)     Driving a commercial vehicle without the proper class
361      of commercial driver license or commercial learner's permit or
362      without the proper endorsement; or
363              (h)     Driving a commercial vehicle without a commercial
364      driver license or commercial learner's permit in possession, as
365      required by s. 322.03;.
366              (i)     Texting while driving; or
367              (j)     Using a handheld mobile telephone while driving.
368              (2)(a)       Any person who, for offenses occurring within a 3-
369      year period, is convicted of three serious traffic violations
370      specified in subsection (1) or any combination thereof, arising
371      in separate incidents committed in a commercial motor vehicle
372      shall, in addition to any other applicable penalties, including
373      but not limited to the penalty provided in subsection (1), be
374      disqualified from operating a commercial motor vehicle for a
375      period of 120 days.

                                                      Page 15 of 31

      CODING: Words stricken are deletions; words underlined are additions.
                                                                                                          hb1151-01-c1
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 1151                                                                                           2021




376              (b)      A holder of a commercial driver license or commercial
377      learner's permit who, for offenses occurring within a 3-year
378      period, is convicted of three serious traffic violations
379      specified in subsection (1) or any combination thereof arising
380      in separate incidents committed in a noncommercial motor vehicle
381      shall, in addition to any other applicable penalties, including,
382      but not limited to, the penalty provided in subsection (1), be
383      disqualified from operating a commercial motor vehicle for a
384      period of 120 days if such convictions result in the suspension,
385      revocation, or cancellation of the licenseholder's driving
386      privilege.
387              (3)(a)       Except as provided in subsection (4), any person
388      who is convicted of one of the offenses listed in paragraph (b)
389      while operating a commercial motor vehicle shall, in addition to
390      any other applicable penalties, be disqualified from operating a
391      commercial motor vehicle for a period of 1 year.
392              (b)      Except as provided in subsection (4), any holder of a
393      commercial driver license or commercial learner's permit who is
394      convicted of one of the offenses listed in this paragraph while
395      operating a noncommercial motor vehicle shall, in addition to
396      any other applicable penalties, be disqualified from operating a
397      commercial motor vehicle for a period of 1 year:
398              1.      Driving a motor vehicle while he or she is under the
399      influence of alcohol or a controlled substance;
400              2.      Driving a commercial motor vehicle while the alcohol

                                                      Page 16 of 31

      CODING: Words stricken are deletions; words underlined are additions.
                                                                                                          hb1151-01-c1
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 1151                                                                                           2021




401      concentration of his or her blood, breath, or urine is .04
402      percent or higher;
403              3.      Leaving the scene of a crash involving a motor vehicle
404      driven by such person;
405              4.      Using a motor vehicle in the commission of a felony;
406              5.      Refusing to submit to a test to determine his or her
407      alcohol concentration while driving a motor vehicle;
408              6.      Driving a commercial motor vehicle when, as a result of
409      prior violations committed operating a commercial motor vehicle,
410      his or her commercial driver license or commercial learner's
411      permit is revoked, suspended, or canceled, or he or she is
412      disqualified from operating a commercial motor vehicle; or
413              7.      Causing a fatality through the negligent operation of a
414      commercial motor vehicle.
415              (4)      Any person who is transporting hazardous materials as
416      defined in s. 322.01(24) shall, upon conviction of an offense
417      specified in subsection (3), be disqualified from operating a
418      commercial motor vehicle for a period of 3 years. The penalty
419      provided in this subsection shall be in addition to any other
420      applicable penalty.
421              (5)      A person who is convicted of two violations specified
422      in subsection (3) which were committed while operating a
423      commercial motor vehicle, or any combination thereof, arising in
424      separate incidents shall be permanently disqualified from
425      operating a commercial motor vehicle. A holder of a commercial

                                                      Page 17 of 31

      CODING: Words stricken are deletions; words underlined are additions.
                                                                                                          hb1151-01-c1
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 1151                                                                                           2021




426      driver license or commercial learner's permit who is convicted
427      of two violations specified in subsection (3) which were
428      committed while operating any motor vehicle arising in separate
429      incidents shall be permanently disqualified from operating a
430      commercial motor vehicle. The penalty provided in this
431      subsection is in addition to any other applicable penalty.
432              (6)     Notwithstanding subsections (3), (4), and (5), any
433      person who uses a commercial motor vehicle in the commission of
434      any felony involving the manufacture, distribution, or
435      dispensing of a controlled substance, including possession with
436      intent to manufacture, distribute, or dispense a controlled
437      substance, shall, upon conviction of such felony, be permanently
438      disqualified from operating a commercial motor vehicle.
439      Notwithstanding subsections (3), (4), and (5), any holder of a
440      commercial driver license or commercial learner's permit who
441      uses a noncommercial motor vehicle in the commission of any
442      felony involving the manufacture, distribution, or dispensing of
443      a controlled substance, including possession with intent to
444      manufacture, distribute, or dispense a controlled substance,
445      shall, upon conviction of such felony, be permanently
446      disqualified from operating a commercial motor vehicle. The
447      penalty provided in this subsection is in addition to any other
448      applicable penalty.
449              (7)     Any person who uses a commercial motor vehicle in the
450      commission of any felony involving human trafficking under state

                                                      Page 18 of 31

      CODING: Words stricken are deletions; words underlined are additions.
                                                                                                          hb1151-01-c1
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 1151                                                                                           2021




451      or federal law shall, upon conviction of, or plea of guilty or
452      nolo contendere to, regardless of whether adjudication is
453      withheld, such felony, be permanently disqualified from
454      operating a commercial motor vehicle. The penalty provided in
455      this subsection is in addition to any other applicable penalty.
456              (8)(7)       A person whose privilege to operate a commercial
457      motor vehicle is disqualified under this section may, if
458      otherwise qualified, be issued a Class E driver license,
459      pursuant to s. 322.251.
460              (9)(8)       A driver who is convicted of or otherwise found to
461      have committed a violation of an out-of-service order while
462      driving a commercial motor vehicle is disqualified as follows:
463              (a)     At least 180 days but not more than 1 year if the
464      driver is convicted of or otherwise found to have committed a
465      first violation of an out-of-service order.
466              (b)     At least 2 years but not more than 5 years if, for
467      offenses occurring during any 10-year period, the driver is
468      convicted of or otherwise found to have committed two violations
469      of out-of-service orders in separate incidents.
470              (c)     At least 3 years but not more than 5 years if, for
471      offenses occurring during any 10-year period, the driver is
472      convicted of or otherwise found to have committed three or more
473      violations of out-of-service orders in separate incidents.
474              (d)     At least 180 days but not more than 2 years if the
475      driver is convicted of or otherwise found to have committed a

                                                      Page 19 of 31

      CODING: Words stricken are deletions; words underlined are additions.
                                                                                                          hb1151-01-c1
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 1151                                                                                           2021




476      first violation of an out-of-service order while transporting
477      hazardous materials required to be placarded under the Hazardous
478      Materials Transportation Act, 49 U.S.C. ss. 5101 et seq., or
479      while operating motor vehicles designed to transport more than
480      15 passengers, including the driver. A driver is disqualified
481      for a period of at least 3 years but not more than 5 years if,
482      for offenses occurring during any 10-year period, the driver is
483      convicted of or otherwise found to have committed any subsequent
484      violations of out-of-service orders, in separate incidents,
485      while transporting hazardous materials required to be placarded
486      under the Hazardous Materials Transportation Act, 49 U.S.C. ss.
487      5101 et seq., or while operating motor vehicles designed to
488      transport more than 15 passengers, including the driver.
489              (10)(9)       A driver who is convicted of or otherwise found to
490      have committed an offense of operating a commercial motor
491      vehicle in violation of federal, state, or local law or
492      regulation pertaining to one of the following six offenses at a
493      railroad-highway grade crossing must be disqualified for the
494      period of time specified in subsection (11)                              (10):
495              (a)     For drivers who are not always required to stop,
496      failing to slow down and check that the tracks are clear of
497      approaching trains.
498              (b)     For drivers who are not always required to stop,
499      failing to stop before reaching the crossing if the tracks are
500      not clear.

                                                      Page 20 of 31

      CODING: Words stricken are deletions; words underlined are additions.
                                                                                                          hb1151-01-c1
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 1151                                                                                           2021




501              (c)     For drivers who are always required to stop, failing
502      to stop before driving onto the crossing.
503              (d)     For all drivers, failing to have sufficient space to
504      drive completely through the crossing without stopping.
505              (e)     For all drivers, failing to obey a traffic control
506      device or all directions of an enforcement official at the
507      crossing.
508              (f)     For all drivers, failing to negotiate a crossing
509      because of insufficient undercarriage clearance.
510              (11)(a)(10)(a)             A driver must be disqualified for at least
511      60 days if the driver is convicted of or otherwise found to have
512      committed a first violation of a railroad-highway grade crossing
513      violation.
514              (b)     A driver must be disqualified for at least 120 days
515      if, for offenses occurring during any 3-year period, the driver
516      is convicted of or otherwise found to have committed a second
517      railroad-highway grade crossing violation in separate incidents.
518              (c)     A driver must be disqualified for at least 1 year if,
519      for offenses occurring during any 3-year period, the driver is
520      convicted of or otherwise found to have committed a third or
521      subsequent railroad-highway grade crossing violation in separate
522      incidents.
523              Section 12.            Section 319.1414, Florida Statutes, is created
524      to read:
525              319.1414          Investigations; examinations; subpoenas;

                                                      Page 21 of 31

      CODING: Words stricken are deletions; words underlined are additions.
                                                                                                          hb1151-01-c1
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 1151                                                                                           2021




526      hearings; witnesses.—
527              (1)     The department may conduct investigations and
528      examinations of department-authorized private rebuilt inspection
529      providers as it deems necessary to determine whether a person is
530      violating or has violated this chapter or a contract entered
531      into pursuant to this chapter or to assist with the enforcement
532      of this chapter.
533              (2)     For purposes of any investigation or examination
534      conducted pursuant to this section, the department may exercise
535      the power of subpoena and the powers to administer oaths or
536      affirmations, to examine witnesses, to require affidavits, to
537      take depositions, and to compel the attendance of witnesses and
538      the production of books, papers, documents, records, and other
539      evidence. A designated agent of the department may serve a
540      subpoena relating to an investigation or examination.
541              (3)     If a person refuses to testify; produce books, papers,
542      documents, or records; or otherwise obey a subpoena or subpoena
543      duces tecum issued under subsection (2), the department may
544      petition a court of competent jurisdiction in the county where
545      the person's residence or principal place of business is
546      located, upon which the court must issue an order requiring such
547      person to obey the subpoena or show cause for failing to obey
548      the subpoena. Unless the person shows sufficient cause for
549      failing to obey the subpoena, the court shall direct the person
550      to obey the subpoena. Failure to comply with such order is

                                                      Page 22 of 31

      CODING: Words stricken are deletions; words underlined are additions.
                                                                                                          hb1151-01-c1
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 1151                                                                                           2021




551      contempt of court.
552              (4)     For the purpose of any investigation, examination, or
553      proceeding initiated by the department under this chapter, the
554      department may designate agents to serve subpoenas and other
555      process and to administer oaths or affirmations.
556              (5)     Witnesses subpoenaed under this section are entitled
557      to witness fees at the same rate established by s. 92.142 for
558      witnesses in a civil case, except that witness fees are not
559      payable for appearance at the witness's place of business during
560      regular business hours or at the witness's residence.
561              (6)     The department may adopt rules to administer this
562      section.
563              Section 13.           Section 319.25, Florida Statutes, is amended
564      to read:
565              319.25       Cancellation of certificates; investigations;
566      subpoenas and other process; oaths; rules.—
567              (1)     If it appears that a certificate of title has been
568      improperly issued, the department shall cancel the certificate.
569      Upon cancellation of any certificate of title, the department
570      shall notify the person to whom the certificate of title was
571      issued, as well as any lienholders appearing thereon, of the
572      cancellation and shall demand the surrender of the certificate
573      of title, but the cancellation shall not affect the validity of
574      any lien noted thereon. The holder of the certificate of title
575      shall return it to the department forthwith. If a certificate of

                                                      Page 23 of 31

      CODING: Words stricken are deletions; words underlined are additions.
                                                                                                          hb1151-01-c1
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 1151                                                                                           2021




576      registration has been issued to the holder of a certificate of
577      title so canceled, the department shall immediately cancel the
578      certificate of registration and demand the return of such
579      certificate of registration and license plate or mobile home
580      sticker; and the holder of such certificate of registration and
581      license plate or sticker shall return them to the department
582      forthwith.
583              (2)     The department is authorized, upon application of any
584      person and payment of the proper fees, to prepare and furnish
585      lists containing title information in such form as the
586      department may authorize, to search the records of the
587      department and make reports thereof, and to make photographic
588      copies of the department records and attestations thereof,
589      except as provided in chapter 119.
590              (3)     The department may conduct investigations and
591      examinations of any person suspected of violating or of having
592      violated this chapter or any rule adopted or order issued under
593      this chapter.
594              (4)     For purposes of any investigation or examination
595      conducted pursuant to this section, the department may exercise
596      the power of subpoena and the powers to administer oaths or
597      affirmations, to examine witnesses, to require affidavits, to
598      take depositions, and to compel the attendance of witnesses and
599      the production of books, papers, documents, records, and other
600      evidence. An authorized representative of the department may

                                                      Page 24 of 31

      CODING: Words stricken are deletions; words underlined are additions.
                                                                                                          hb1151-01-c1
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 1151                                                                                           2021




601      serve a subpoena relating to an investigation or examination.
602              (5)     If a person refuses to testify; produce books, papers,
603      documents, or records; or otherwise obey the subpoena or
604      subpoena duces tecum issued under subsection (4), the department
605      may petition a court of competent jurisdiction in the county
606      where the person's residence or principal place of business is
607      located, upon which the court must issue an order requiring such
608      person to obey the subpoena or show cause for failing to obey
609      the subpoena. Unless the person shows sufficient cause for
610      failing to obey the subpoena, the court must direct the person
611      to obey the subpoena. Failure to comply with such order is
612      contempt of court.
613              (6)     For the purpose of any investigation, examination, or
614      proceeding initiated by the department under this chapter, the
615      department may designate agents to serve subpoenas and other
616      process and to administer oaths or affirmations.
617              (7)     Witnesses subpoenaed under this section are entitled
618      to witness fees at the same rate established by s. 92.142 for
619      witnesses in a civil case, except that witness fees are not
620      payable for appearance at the witness's place of business during
621      regular business hours or at the witness's residence.
622              (8)     The department may adopt rules to administer this
623      section.
624              Section 14.           Section 320.861, Florida Statutes, is amended
625      to read:

                                                      Page 25 of 31

      CODING: Words stricken are deletions; words underlined are additions.
                                                                                                          hb1151-01-c1
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 1151                                                                                           2021




626              320.861       Investigations; subpoenas and other process;
627      oaths; rules Inspection of records; production of evidence;
628      subpoena power.—
629              (1)     The department may conduct investigations and
630      examinations of any person suspected of violating or of having
631      violated this chapter or any rule adopted or order issued under
632      this chapter inspect the pertinent books, records, letters, and
633      contracts of any licensee, whether dealer or manufacturer,
634      relating to any written complaint made to it against such
635      licensee.
636              (2)     For purposes of any investigation or examination
637      conducted pursuant to this section, the department may is
638      granted and authorized to exercise the power of subpoena and the
639      powers to administer oaths or affirmations, to examine
640      witnesses, to require affidavits, to take depositions, and to
641      compel the attendance of witnesses and the production of books,
642      papers, documents, records, and other evidence. A designated
643      agent of the department may serve a subpoena relating to an
644      investigation or examination for the attendance of witnesses and
645      the production of any documentary evidence necessary to the
646      disposition by it of any written complaint against any licensee,
647      whether dealer or manufacturer.
648              (3)     If a person refuses to testify; to produce books,
649      papers, documents, or records; or to otherwise obey the subpoena
650      or subpoena duces tecum issued under subsection (2), the

                                                      Page 26 of 31

      CODING: Words stricken are deletions; words underlined are additions.
                                                                                                          hb1151-01-c1
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 1151                                                                                           2021




651      department may petition a court of competent jurisdiction in the
652      county where the person's residence or principal place of
653      business is located, upon which the court must issue an order
654      requiring such person to obey the subpoena or show cause for
655      failing to obey the subpoena. Unless the person shows sufficient
656      cause for failing to obey the subpoena, the court must direct
657      the person to obey the subpoena. Failure to comply with such
658      order constitutes contempt of court.
659              (4)     For the purpose of any investigation, examination, or
660      proceeding initiated by the department under this chapter, the
661      department may designate agents to serve subpoenas and other
662      process and to administer oaths or affirmations. The department
663      shall exercise this power on its own initiative in accordance
664      with ss. 320.615 and 320.71.
665              (5)     Witnesses subpoenaed under this section are entitled
666      to witness fees at the same rate established by s. 92.142 for
667      witnesses in a civil case, except that witness fees are not
668      payable for appearance at the witness's place of business during
669      regular business hours or at the witness's residence.
670              (6)     The department may adopt rules to administer this
671      section.
672              Section 15.           Section 322.71, Florida Statutes, is created
673      to read:
674              322.71       Investigations; subpoenas and other process; oaths;
675      rules.—

                                                      Page 27 of 31

      CODING: Words stricken are deletions; words underlined are additions.
                                                                                                          hb1151-01-c1
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 1151                                                                                           2021




676              (1)     The department may conduct investigations and
677      examinations of any person suspected of violating or of having
678      violated any provision of this chapter or any rule adopted or
679      order issued under this chapter.
680              (2)     For purposes of any investigation or examination
681      conducted pursuant to this section, the department may exercise
682      the power of subpoena and the powers to administer oaths or
683      affirmations, to examine witnesses, to require affidavits, to
684      take depositions, and to compel the attendance of witnesses and
685      the production of books, papers, documents, records, and other
686      evidence. Such subpoenas may be served by an authorized
687      representative of the department.
688              (3)     If a person refuses to testify; to produce books,
689      papers, documents, or records; or to otherwise obey the subpoena
690      or subpoena duces tecum issued under subsection (2), the
691      department may petition a court of competent jurisdiction in the
692      county where the person's residence or principal place of
693      business is located, upon which the court must issue an order
694      requiring such person to obey the subpoena or show cause for
695      failing to obey the subpoena. Unless the person shows sufficient
696      cause for failing to obey the subpoena, the court must direct
697      the person to obey the subpoena. Failure to comply with such
698      order constitutes contempt of court.
699              (4)     For the purpose of any investigation, examination, or
700      proceeding initiated by the department under this chapter, the

                                                      Page 28 of 31

      CODING: Words stricken are deletions; words underlined are additions.
                                                                                                          hb1151-01-c1
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 1151                                                                                           2021




701      department may designate agents to serve subpoenas and other
702      process and to administer oaths or affirmations.
703              (5)     Witnesses subpoenaed under this section are entitled
704      to witness fees at the same rate established by s. 92.142 for
705      witnesses in a civil case, except that witness fees are not
706      payable for appearance at the witness's place of business during
707      regular business hours or at the witness's residence.
708              (6)     The department may adopt rules to administer this
709      section.
710              Section 16.           Subsection (2) of section 322.34, Florida
711      Statutes, is amended to read:
712              322.34       Driving while license suspended, revoked, canceled,
713      or disqualified.—
714              (2)     Any person whose driver license or driving privilege
715      has been canceled, suspended, or revoked as provided by law, or
716      who does not have a driver license or driving privilege but is
717      under suspension or revocation equivalent status as defined in
718      s. 322.01(42) s. 322.01(41), except persons defined in s.
719      322.264, who, knowing of such cancellation, suspension,
720      revocation, or suspension or revocation equivalent status,
721      drives any motor vehicle upon the highways of this state while
722      such license or privilege is canceled, suspended, or revoked, or
723      while under suspension or revocation equivalent status, commits:
724              (a)     A misdemeanor of the second degree, punishable as
725      provided in s. 775.082 or s. 775.083.

                                                      Page 29 of 31

      CODING: Words stricken are deletions; words underlined are additions.
                                                                                                          hb1151-01-c1
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 1151                                                                                           2021




726              (b)1.       A misdemeanor of the first degree, punishable as
727      provided in s. 775.082 or s. 775.083, upon a second or
728      subsequent conviction, except as provided in paragraph (c).
729              2.      A person convicted of a third or subsequent conviction,
730      except as provided in paragraph (c), must serve a minimum of 10
731      days in jail.
732              (c)      A felony of the third degree, punishable as provided
733      in s. 775.082, s. 775.083, or s. 775.084, upon a third or
734      subsequent conviction if the current violation of this section
735      or the most recent prior violation of the section is related to
736      driving while license canceled, suspended, revoked, or
737      suspension or revocation equivalent status resulting from a
738      violation of:
739              1.      Driving under the influence;
740              2.      Refusal to submit to a urine, breath-alcohol, or blood
741      alcohol test;
742              3.      A traffic offense causing death or serious bodily
743      injury; or
744              4.      Fleeing or eluding.
745
746      The element of knowledge is satisfied if the person has been
747      previously cited as provided in subsection (1); or the person
748      admits to knowledge of the cancellation, suspension, or
749      revocation, or suspension or revocation equivalent status; or
750      the person received notice as provided in subsection (4). There

                                                      Page 30 of 31

      CODING: Words stricken are deletions; words underlined are additions.
                                                                                                          hb1151-01-c1
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 1151                                                                                           2021




751      shall be a rebuttable presumption that the knowledge requirement
752      is satisfied if a judgment or order as provided in subsection
753      (4) appears in the department's records for any case except for
754      one involving a suspension by the department for failure to pay
755      a traffic fine or for a financial responsibility violation.
756              Section 17.           This act shall take effect July 1, 2021.




                                                      Page 31 of 31

      CODING: Words stricken are deletions; words underlined are additions.
                                                                                                          hb1151-01-c1
HB 1359
                                    HOUSE OF REPRESENTATIVES STAFF ANALYSIS
BILL #:     HB 1359 Pub. Rec./Department of Highway Safety and Motor Vehicles
SPONSOR(S): Brannan
TIED BILLS: CS/HB 1151 IDEN./SIM. BILLS: CS/SB 1502

  REFERENCE                                                       ACTION                   ANALYST                STAFF DIRECTOR or
                                                                                                                  BUDGET/POLICY CHIEF

  1) Tourism, Infrastructure & Energy Subcommittee                15 Y, 0 N                Johnson                Keating

  2) Government Operations Subcommittee                           17 Y, 0 N                Roth                   Smith

  3) Commerce Committee                                                                    Johnson                Hamon

                                                        SUMMARY ANALYSIS
CS/HB 1151, to which this bill is linked, provides the Department of Highway Safety and Motor Vehicles
(DHSMV) with investigative and subpoena power and the ability to administer oaths or affirmations, examine
witnesses, require affidavits, take depositions, and compel the attendance of witnesses and the production of
documents, records, and other evidence for use in conducting investigations or examinations.

This bill, which is linked to the passage of HB 1151, creates four public records exemptions, each making
confidential and exempt from public disclosure information received by DHSMV as part of its investigations or
examinations of:
    Suspected violations by private rebuilt inspection providers, or any contract entered into thereunder by
        such a provider;
    Suspected violations of ch. 319, F.S., relating to motor vehicle titles, or any rule or order thereunder;
    Suspected violations of ch. 320, F.S., relating to motor vehicle registrations and motor vehicle dealer
        and manufacturer licensing, or any rule or order thereunder; and
    Suspected violations of ch. 322, F.S., relating to driver licenses and identification cards, or any rule or
        order thereunder.

The above exemptions shield investigative records until the investigation ceases to be active or administrative
action taken by DHSMV has concluded or been made part of any hearing or court proceeding, after which the
investigative records are no longer confidential and exempt.

The bill provides that the public record exemption is subject to the Open Government Sunset Review Act and
will repeal on October 2, 2026, unless the Legislature reviews and reenacts the exemption by that date. The
bill provides a statement of public necessity as required by the Florida Constitution.

The bill may have a minimal fiscal impact on state government.

The bill is effective upon the same date that CS/HB 1151 or similar legislation takes effect, if such legislation is
adopted in the same legislative session or extension thereof and becomes a law.

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




This document does not reflect the intent or official position of the bill sponsor or House of Representatives.
STORAGE NAME: h1359d.COM
DATE: 4/2/2021
                                                        FULL ANALYSIS

                                                I. SUBSTANTIVE ANALYSIS

    A. EFFECT OF PROPOSED CHANGES:
         Current Situation

         Public Records
         Article I, section 24(a) of the Florida Constitution sets forth the state’s public policy regarding access to
         government records. This section guarantees every person a right to inspect or copy any public record
         of the legislative, executive, and judicial branches of government. The Legislature, however, may
         provide by general law for the exemption of records from the requirements of article I, section 24(a) of
         the Florida Constitution.1 The general law must state with specificity the public necessity justifying the
         exemption2 and must be no broader than necessary to accomplish its purpose.3

         Public policy regarding access to government records is addressed further in s. 119.07(1)(a), F.S.,
         which guarantees every person a right to inspect and copy any state, county, or municipal record,
         unless the record is exempt. Furthermore, the Open Government Sunset Review Act 4 provides that a
         public record or public meeting exemption may be created or maintained only if it serves an identifiable
         public purpose. In addition, it may be no broader than necessary to meet one of the following purposes:
             Allow the state or its political subdivisions to effectively and efficiently administer a
                 governmental program, which administration would be significantly impaired without the
                 exemption.
             Protect sensitive personal information that, if released, would be defamatory or would
                 jeopardize an individual’s safety; however, only the identity of an individual may be exempted
                 under this provision.
             Protect trade or business secrets.5

         The Open Government Sunset Review Act requires the automatic repeal of a newly created public
         record exemption on October 2nd of the fifth year after creation or substantial amendment, unless the
         Legislature reenacts the exemption.6

         DHSMV Investigative Authority
         DHSMV has jurisdiction to administer multiple chapters of the Florida Statutes with various degrees of
         investigative authority. For example, DHSMV is required to cancel improperly issued certificates of
         title,7 but does not appear to have the authority to investigate and examine violations related to motor
         vehicle titles.

         While DHSMV has the authority to inspect books and records of motor vehicle manufacturers and
         dealers,8 it does not appear to have the authority to investigate other violations of ch. 320, F.S., relating
         to motor vehicle dealers.

         DHSMV also does not appear to have statutory authority to investigate persons suspected of violating
         ch. 322, F.S., relating to driver licenses.

         CS/HB 1151, to which this bill is linked, provides DHSMV with investigative and subpoena power and
         the ability to administer oaths or affirmations, examine witnesses, require affidavits, take depositions,



1
  Art. I, s. 24(c), FLA. CONST.
2
  This portion of a public record exemption is commonly referred to as a “public necessity statement.”
3
  Art. I. s. 24(c), FLA. CONST.
4
  S. 119.15, F.S.
5
  S. 119.15(6)(b), F.S.
6
  S. 119.15(3), F.S.
7
  S. 319.25(1), F.S.
8
  S. 320.861, F.S.
STORAGE NAME: h1359d.COM                                                                                        PAGE: 2
DATE: 4/2/2021
         and compel the attendance of witnesses and the production of documents, records, and other evidence
         for use in conducting investigations or examinations into:
              Authorized private rebuilt inspection providers;
              Persons suspected of violating or of having violated ch. 319, F.S., relating to motor vehicle title
                 certificates;
              Persons suspected of violating or of having violated ch. 320, F.S., relating to motor vehicles
                 manufacturers and distributors; and
              Persons suspected of violating or of having violated ch. 322, F.S., relating to driver licenses.

         Effect of the Bill

         The bill creates public record exemptions for investigatory and examination information received by
         DHSMV as a result of an investigation or examination of:
             Suspected violations by private rebuilt inspection providers, or any contract entered into
                 thereunder by such a provider;
             Suspected violations of ch. 319, F.S., relating to motor vehicle titles, or any rule or order
                 thereunder;
             Suspected violations of ch. 320, F.S., relating to motor vehicle registrations and motor vehicle
                 dealer and manufacturer licensing, or any rule or order thereunder; and
             Suspected violations of ch. 322, F.S., relating to driver licenses and identification cards, or any
                 rule or order thereunder.

         The bill provides that the investigatory and examination information is confidential and exempt9 from
         public record requirements until the investigation or examination ceases to be active or administrative
         action taken by DHSMV has concluded or been made part of any hearing or court proceeding.

         The bill authorizes DHSMV to release investigative records in furtherance of DHSMV’s official duties
         and responsibilities or, if released to another governmental agency, in furtherance of that agency’s
         official duties and responsibilities.

         The bill contains a statement of public necessity, as required by article I, section 24(c) of the Florida
         Constitution. The public necessity statement provides that the release of information received by
         DHSMV as a result of an investigation or examination of certain violations could obstruct or jeopardize
         the integrity of the investigation or examination and impair the ability of DHSMV to perform its official
         duties and carry out its responsibilities under these statutory provisions, thus it is a public necessity to
         make such information confidential and exempt from public records requirements.

         The bill provides that the public record exemptions are subject to the Open Government Sunset Review
         Act and will repeal on October 2, 2026, unless the Legislature reviews and reenacts the exemptions by
         that date.

         The bill provides that it will become effective upon the same date that CS/HB 1151 or similar legislation
         takes effect, if such legislation is adopted in the same legislative session or extension thereof and
         becomes a law.

    B. SECTION DIRECTORY:
         Section 1 Amends s. 319.1414, F.S., relating to investigations; subpoenas and other process; oaths;
         rules.


9
 There is a difference between records the Legislature designates exempt from public record requirements and those the Legislature
deems confidential and exempt. A record classified as exempt from public disclosure may be disclosed under certain circumstances.
See WFTV, Inc. v. Sch. Bd. of Seminole, 874 So.2d 48, 53 (Fla. 5th DCA 2004), review denied 892 So.2d 1015 (Fla. 2004); City of
Rivera Beach v. Barfield, 642 So.2d 1135 (Fla. 4th DCA 1994); Williams v. City of Minneola, 575 So.2d 683, 687 (Fla. 5th DCA
1991). If the Legislature designates a record as confidential and exempt from public disclosure, such record may not be released by the
custodian of public records, to anyone other than the persons or entities specifically designated in statute. See Op. Att’y Gen. Fla. 85-
62 (1985).
STORAGE NAME: h1359d.COM                                                                                                         PAGE: 3
DATE: 4/2/2021
       Section 2 Amends s. 319.25, F.S., relating to cancellation of certificates; investigations; subpoenas
       and other process; oaths; rules.

       Section 3 Amends s. 320.861, F.S., relating to investigations, subpoenas and other process; oaths;
       rules.

       Section 4 Amends s. 322.71, F.S., relating to investigations; subpoenas and other process; oaths;
       rules.

       Section 5 Provides a statement of public necessity.

       Section 6 Provides a contingent effective date.


                           II. FISCAL ANALYSIS & ECONOMIC IMPACT STATEMENT

   A. FISCAL IMPACT ON STATE GOVERNMENT:

       1. Revenues:
           None.

       2. Expenditures:
           The bill may have an insignificant fiscal impact on DHSMV to comply with public records requests
           and redact exempt information prior to releasing a record. Such costs, however, would be absorbed
           as part of the day-to-day responsibilities of the agency.

   B. FISCAL IMPACT ON LOCAL GOVERNMENTS:

       1. Revenues:
           None.

       2. Expenditures:
           None.

   C. DIRECT ECONOMIC IMPACT ON PRIVATE SECTOR:
       None.

   D. FISCAL COMMENTS:
       None.


                                               III. COMMENTS

   A. CONSTITUTIONAL ISSUES:

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

       2. Other:
         Vote Requirement
         Article I, section 24(c) of the Florida Constitution requires a two-thirds vote of the members present
         and voting for final passage of a newly created or expanded public record or public meeting
         exemption. The bill creates new public record exemptions; thus, it requires a two-thirds vote for final
         passage.
STORAGE NAME: h1359d.COM                                                                                  PAGE: 4
DATE: 4/2/2021
         Public Necessity Statement
         Article I, section 24(c) of the Florida Constitution requires a public necessity statement for a newly
         created or expanded public record or public meeting exemption. The bill creates new public record
         exemptions and includes the required public necessity statement.

         Breadth of Exemption
         Article 1, section 24(c) of the Florida Constitution requires a newly created or expanded public record
         or public meeting exemption to be no broader than necessary to accomplish the stated purpose of
         the law. The bill creates public record exemptions for certain investigative or examination
         information, which does not appear to be broader than necessary to accomplish its purpose.

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

   C. DRAFTING ISSUES OR OTHER COMMENTS:
       None.


                           IV. AMENDMENTS/ COMMITTEE SUBSTITUTE CHANGES
       None.




STORAGE NAME: h1359d.COM                                                                                   PAGE: 5
DATE: 4/2/2021
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 1359                                                                                               2021




    1                                         A bill to be entitled
    2                An act relating to public records; amending ss.
    3                319.1414, 319.25, 320.861, and 322.71, F.S.; providing
    4                an exemption from public records requirements for
    5                information received by the Department of Highway
    6                Safety and Motor Vehicles as a result of an
    7                investigation or examination conducted pursuant to
    8                certain provisions; authorizing the department to
    9                release such information under certain circumstances;
10                   providing for future legislative review and repeal of
11                   the exemption; providing a statement of public
12                   necessity; providing a contingent effective date.
13
14         Be It Enacted by the Legislature of the State of Florida:
15
16                   Section 1.        Subsection (6) of section 319.1414, Florida
17         Statutes, as created by CS/HB 1151, 2021 Regular Session, is
18         renumbered as subsection (7), and a new subsection (6) is added
19         to that section to read:
20                   319.1414        Investigations; subpoenas and other process;
21         oaths; rules.—
22                   (6)     Information received by the department as a result of
23         an investigation or examination conducted pursuant to this
24         section is confidential and exempt from s. 119.07(1) and s.
25         24(a), Art. I of the State Constitution until the investigation

                                                         Page 1 of 5

        CODING: Words stricken are deletions; words underlined are additions.
                                                                                                                hb1359-00
F   L   O   R     I   D   A   H   O   U   S   E      O   F      R   E   P    R   E   S   E   N   T   A   T    I   V   E   S




        HB 1359                                                                                               2021




26      or examination ceases to be active or administrative action
27      taken by the department has concluded or been made part of a
28      hearing or court proceeding. The department may release
29      information that is made confidential and exempt under this
30      subsection in furtherance of its official duties and
31      responsibilities or, if released to another governmental agency,
32      in the furtherance of that agency's official duties and
33      responsibilities. This subsection is subject to the Open
34      Government Sunset Review Act in accordance with s. 119.15 and
35      shall stand repealed on October 2, 2026, unless reviewed and
36      saved from repeal through reenactment by the Legislature.
37                Section 2.       Subsection (8) of section 319.25, Florida
38      Statutes, as created by CS/HB 1151, 2021 Regular Session, is
39      renumbered as subsection (9), and a new subsection (8) is added
40      to that section to read:
41                319.25      Cancellation of certificates; investigations;
42      subpoenas and other process; oaths; rules.—
43                (8)     Information received by the department as a result of
44      an investigation or examination conducted pursuant to this
45      section is confidential and exempt from s. 119.07(1) and s.
46      24(a), Art. I of the State Constitution until the investigation
47      or examination ceases to be active or administrative action
48      taken by the department has concluded or been made part of a
49      hearing or court proceeding. The department may release
50      information that is made confidential and exempt under this

                                                      Page 2 of 5

     CODING: Words stricken are deletions; words underlined are additions.
                                                                                                             hb1359-00
F   L   O   R     I   D   A   H   O   U   S   E      O   F      R   E   P    R   E   S   E   N   T   A   T    I   V   E   S




        HB 1359                                                                                               2021




51      subsection in furtherance of its official duties and
52      responsibilities or, if released to another governmental agency,
53      in the furtherance of that agency's official duties and
54      responsibilities. This subsection is subject to the Open
55      Government Sunset Review Act in accordance with s. 119.15 and
56      shall stand repealed on October 2, 2026, unless reviewed and
57      saved from repeal through reenactment by the Legislature.
58                Section 3.       Subsection (6) of section 320.861, Florida
59      Statutes, as created by CS/HB 1151, 2021 Regular Session, is
60      renumbered as subsection (7), and a new subsection (6) is added
61      to that section to read:
62                320.861     Investigations; subpoenas and other process;
63      oaths; rules.—
64                (6)     Information received by the department as a result of
65      an investigation or examination conducted pursuant to this
66      section is confidential and exempt from s. 119.07(1) and s.
67      24(a), Art. I of the State Constitution until the investigation
68      or examination ceases to be active or administrative action
69      taken by the department has concluded or been made part of a
70      hearing or court proceeding. The department may release
71      information that is made confidential and exempt under this
72      subsection in furtherance of its official duties and
73      responsibilities or, if released to another governmental agency,
74      in the furtherance of that agency's official duties and
75      responsibilities. This subsection is subject to the Open

                                                      Page 3 of 5

     CODING: Words stricken are deletions; words underlined are additions.
                                                                                                             hb1359-00
F   L    O   R     I   D   A   H   O   U   S   E      O   F      R   E   P    R   E   S   E   N   T   A   T    I   V   E   S




         HB 1359                                                                                               2021




76       Government Sunset Review Act in accordance with s. 119.15 and
77       shall stand repealed on October 2, 2026, unless reviewed and
78       saved from repeal through reenactment by the Legislature.
79                 Section 4.       Subsection (6) of section 322.71, Florida
80       Statutes, as created by CS/HB 1151, 2021 Regular Session, is
81       renumbered as subsection (7), and a new subsection (6) is added
82       to that section to read:
83                 322.71      Investigations; subpoenas and other process; oaths;
84       rules.—
85                 (6)     Information received by the department as a result of
86       an investigation or examination conducted pursuant to this
87       section is confidential and exempt from s. 119.07(1) and s.
88       24(a), Art. I of the State Constitution until the investigation
89       or examination ceases to be active or administrative action
90       taken by the department has concluded or been made part of a
91       hearing or court proceeding. The department may release
92       information that is made confidential and exempt under this
93       subsection in furtherance of its official duties and
94       responsibilities or, if released to another governmental agency,
95       in the furtherance of that agency's official duties and
96       responsibilities. This subsection is subject to the Open
97       Government Sunset Review Act in accordance with s. 119.15 and
98       shall stand repealed on October 2, 2026, unless reviewed and
99       saved from repeal through reenactment by the Legislature.
100                Section 5.       The Legislature finds that it is a public

                                                       Page 4 of 5

      CODING: Words stricken are deletions; words underlined are additions.
                                                                                                              hb1359-00
F   L    O   R     I   D   A   H   O   U   S   E      O   F      R   E   P    R   E   S   E   N   T   A   T    I   V   E   S




         HB 1359                                                                                               2021




101      necessity that information received by the Department of Highway
102      Safety and Motor Vehicles as a result of an investigation or
103      examination conducted pursuant to s. 319.1414, s. 319.25,
104      chapter 320 as provided in s. 320.861, and chapter 322 as
105      provided in s. 322.71, Florida Statutes, be made confidential
106      and exempt from s. 119.07(1), Florida Statutes, and s. 24(a),
107      Article I of the State Constitution until the investigation or
108      examination ceases to be active or administrative action taken
109      by the department has concluded or been made part of a hearing
110      or court proceeding. The release of such information about a
111      pending investigation or examination of violations of s.
112      319.1414, s. 319.25, chapter 320, and chapter 322, Florida
113      Statutes, could obstruct or jeopardize the integrity of the
114      investigation or examination and impair the ability of the
115      Department of Highway Safety and Motor Vehicles in the
116      performance of its official duties and responsibilities under s.
117      319.1414, s. 319.25, chapter 320, and chapter 322, Florida
118      Statutes. Therefore, the Legislature finds that it is a public
119      necessity to make such information confidential and exempt from
120      public records requirements.
121                Section 6.       This act shall take effect on the same date
122      that CS/HB 1151 or similar legislation takes effect, if such
123      legislation is adopted in the same legislative session or an
124      extension thereof and becomes a law.



                                                       Page 5 of 5

      CODING: Words stricken are deletions; words underlined are additions.
                                                                                                              hb1359-00
CS/HB 1431
                                    HOUSE OF REPRESENTATIVES STAFF ANALYSIS
BILL #:     CS/HB 1431 Swimming Pool Specialty Contracting Services
SPONSOR(S): Regulatory Reform Subcommittee, McClure
TIED BILLS:       IDEN./SIM. BILLS: SB 338

    REFERENCE                                                       ACTION                    ANALYST             STAFF DIRECTOR or
                                                                                                                  BUDGET/POLICY CHIEF

    1) Regulatory Reform Subcommittee                               13 Y, 0 N, As CS          Brackett            Anstead

    2) Commerce Committee                                                                     Brackett            Hamon

                                                        SUMMARY ANALYSIS
Construction Contractors, including pool/spa contractors, are certified by or registered with the Construction
Industry Licensing Board (CILB) housed within the Department of Business and Professional Regulation.
Certified contractors can practice statewide and are licensed and regulated by the CILB. Registered
contractors are licensed and regulated by a local jurisdiction and may practice within that locality. Registered
contractors are required to register their license with the CILB.

Specialty contractors are contractors whose scope of work is limited to a particular phase of construction that is
a subset of a certified contractor’s scope of work, such as drywall or demolition. Specialty contractor licenses
are created by the CILB through rulemaking. Specialty contractors certified by the CILB are permitted to
practice in any jurisdiction in the state. The CILB has created eight types of pool/spa specialty contractors.

In order to perform contracting in the state, a person must be certified or registered (licensed) as a contractor,
be an employee of a licensed contractor, or fall under an exemption provided in current law.

The bill creates a new exemption to licensure requirements by allowing unlicensed persons to perform the
work of specialty contractors for the construction, remodeling, repair, or improvement of commercial or
residential swimming pools, interactive water features, hot tubs, and spas without obtaining a specialty
contractor license or local license.

The bill only allows the unlicensed person to perform the work if:

        the unlicensed person is under the supervision of a licensed commercial or residential pool/spa
         contractor or swimming pool/spa servicing contractor;
        the work is within the scope of the supervising contractor’s license;
        the supervising contractor is responsible for the work; and
        the work does not require licensure as a roofing, sheet metal, air-conditioning, mechanical, plumbing,
         solar, underground utility and excavation contractor, or electrical contractor.

The bill does not require a direct contract between the commercial or residential pool/spa contractor or
swimming pool/spa servicing contractor and the unlicensed person, or require the unlicensed person to be an
employee of the supervising pool/spa contractor.

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

The bill provides for an effective date of July 1, 2021.




This document does not reflect the intent or official position of the bill sponsor or House of Representatives.
STORAGE NAME: h1431a.COM
DATE: 4/2/2021
                                                     FULL ANALYSIS

                                              I. SUBSTANTIVE ANALYSIS

    A. EFFECT OF PROPOSED CHANGES:
        Current Situation

        Contractors

        Contractors are regulated by ch. 489, F.S., which outlines the law pertaining to contractors in the state
        of Florida. Part I of ch. 489, F.S., covers construction contracting regulated by the Construction Industry
        Licensing Board (CILB) and pt. II of ch. 489, F.S., covers electrical/alarm system contracting regulated
        by the Electrical Contractors’ Licensing Board. Both boards are housed in the Department of Business
        and Professional Regulation (DBPR).

        Construction contractors are either certified or registered by the CILB. The CILB consists of 18
        members who are appointed by the Governor and confirmed by the Senate. The CILB meets to
        approve or deny applications for licensure, review disciplinary cases, and conduct informal hearings
        relating to discipline.1

        "Certified contractors" are individuals who pass the state competency examination and obtain a
        certificate of competency issued by DBPR. Certified contractors are able to obtain a certificate of
        competency for a specific license category and are permitted to practice in that category in any
        jurisdiction in the state.2

        “Registered contractors” are individuals that have taken and passed a local competency examination
        and can practice the specific category of contracting for which he or she is approved, only in the local
        jurisdiction for which the license is issued. Registered contractors must register their license with the
        CILB after obtaining a local license.3

        In order to perform construction contracting in the state, a person must be certified or registered as a
        contractor, be an employee4 of a certified or registered contractor, or fall under an exemption provided
        in current law.5

        Swimming Pool/Spa Contractors

        “Commercial pool/spa contractors” are individuals who are certified or registered to construct, repair,
        and service any public or private swimming pool, hot tub, or spa including:6

                Installing, repairing, or replacing existing equipment;
                Cleaning or equipment sanitizing that requires at least a partial disassembling, excluding filter
                 changes;
                Installing new pool/spa equipment, interior finishes, package pool heaters, and perimeter piping
                 and filter piping;
                Constructing equipment rooms or housing for pool/spa equipment; and
                The scope of work of a swimming pool/spa servicing contractor.

        “Residential pool/spa contractors” are individuals who are certified or registered to construct repair, and
        service any residential swimming pool, hot tub, or spa. The scope of work is identical to the scope of

1
  S. 489.107, F.S.
2
  S. 489.105, F.S.
3
  Ss. 489.105, and 489.117, F.S.
4
  “Employee” means a person who receives compensation from and is under the supervision and control of an employer who regularly
deducts the F.I.C.A. and withholding tax and provides workers’ compensation, all as prescribed by law. S. 489.103(2)(b), F.S.
5
  Ss. 489.103(2), and 489.113, F.S.
6
  S. 489.105(3)(j), F.S.
STORAGE NAME: h1431a.COM                                                                                                PAGE: 2
DATE: 4/2/2021
        work for commercial pool/spa contractors; however, residential pool/spa contractors may only work on
        residential swimming pools, hot tubs, and spas.7

        “Swimming pool/spa servicing contractors” are individuals who are certified or registered to repair and
        service any public or private swimming pool, hot tub, or spa including:8

                Repairing or replacing existing equipment;
                Cleaning or equipment sanitizing that requires at least a partial disassembling, excluding filter
                 changes;
                Installing new pool/spa equipment and interior refinishing;
                Reinstalling or adding pool heaters;
                Repairing or replacing perimeter piping and filter piping;
                Repairing equipment rooms or housing for pool/spa equipment; and
                Substantially or completing draining a swimming pool, or hot tub or spa, for the purpose of
                 repair or renovation.

        The scope of work for all three types of swimming pool/spa contractors does not include direct
        connections to a sanitary sewer system or to potable water lines.9

        Water treatment or cleaning a pool or spa does not require a license unless the structural integrity of
        the pool or spa is affected, or equipment attached to the pool or spa must be substantially or completely
        disassembled or replaced in order to treat the water or clean the pool. Installing an aboveground pool
        also does not require a license.10

        A contractor, including pool/spa contractors, must subcontract all electrical, mechanical, plumbing,
        roofing, sheet metal, and air-conditioning work, to a contractor certified or registered in the respective
        category, unless the pool/spa contractor also holds a state certificate or registration in the respective
        category.11

        In order to obtain certification as one of the swimming pool/spa contractors, a person must:12

                Apply to DBPR in writing;
                Be 18 years of age;
                Be of good moral character;
                Pass the examination for the certification sought; and
                Have one of the following:
                    o A bachelor degree from a four year college in the appropriate field of engineering,
                        architecture, or building construction, and one year of proven experience;
                    o Four years of experience as a foreman or a skilled worker with at least one year as a
                        foreman;
                    o A combination of college and experience as a foreman or skilled worker that equals four
                        years with at least one of the years as a foreman; or
                    o One year of experience and 60 hours of instruction courses approved by the CILB;
                        however, this only applies to swimming pool/spa servicing contractors.

        Swimming Pool/Spa Specialty Contractors

        “Certified specialty contractors” are contractors whose scope of work is limited to a particular phase of
        construction that is a subset of a certified contractor’s scope of work, such as a drywall specialty

7
  S. 489.105(3)(k), F.S.
8
  S. 489.105(3)(l), F.S.
9
  S. 489.105, F.S.
10
   Ss. 489.103(6), and 489.105, F.S.; DBPR, Trust but Verify,
http://www.myfloridalicense.com/dbpr/reg/documents/trustbutverify_000.pdf?x40199 (last visited Mar. 19, 2021).
11
   S. 489.113(3), F.S.
12
   Ss. 489.111, & 489.113, F.S.
STORAGE NAME: h1431a.COM                                                                                         PAGE: 3
DATE: 4/2/2021
        license or a demolition specialty license. Certified specialty contractor licenses are created by the CILB
        through rulemaking. Certified specialty contractors are permitted to practice in any jurisdiction in the
        state.13

        The CILB has created eight types of pool/spa specialty contractor certifications. Pool/spa specialty
        contractors, except residential swimming pool/spa servicing specialty contractors, must work under
        contract with and under the supervision of a licensed swimming pool/spa contractor. However, they are
        not required to be employees of a licensed pool/spa contractor.14

        The CILB has created the following eight types of pool/spa specialty contractors:15

                 Swimming Pool Layout Specialty Contractor-
                     o The scope of work is limited to the layout, shaping, steel installation, and rough piping of
                        pools, spas, and hot tub shells.
                 Swimming Pool Structural Specialty Contractor-
                     o The scope of work is limited to the shaping and shooting of gunite, shotcrete, concrete,
                        or similar product mix used in the construction of swimming pools and spas, and the
                        installation of fiberglass shells and vinyl liners.
                 Swimming Pool Excavation Specialty Contractors –
                     o The scope of work is limited to the excavation and earthmoving for the installation of
                        pools, spas, and hot tub shells;
                 Swimming Pool Trim Specialty Contractor –
                     o The scope of work is limited to the installation of tile and coping for pools, spas, hot tub
                        shells, and decorative or interactive water displays;
                 Swimming Pool Decking Specialty Contractor-
                     o The scope of work is limited to the construction and installation of concrete flatwork,
                        pavers and bricks, retaining walls, and footings associated with the construction of
                        pools, spas, and hot tub shells.
                 Swimming Pool Piping Specialty Contractor-
                     o The scope of work is limited to the installation of piping or the installation of circulating,
                        filtering, disinfecting, controlling, or monitoring equipment and devices used in the
                        construction of pools, spas, hot tubs, and decorative or interactive water displays or
                        areas.
                 Swimming Pool Finishes Specialty Contractor-
                     o The scope of work is limited to the coating or plastering of the interior surfaces of pools,
                        spas, or hot tub shells.
                 Residential swimming pool/spa servicing specialty contractor-
                     o The scope of work is identical to the scope of work for swimming pool/spa servicing
                        contractors; however, they may only work on residential swimming pools, hot tubs, and
                        spas.

        In order to obtain one of the certified specialty pool/spa contractor a person must:16

                 Submit a written application to the CILB;
                 Be at least 18 years of age;
                 Be of good moral character;
                 Pass a written examination for the specialty pool/spa contractor category sought; and
                 Demonstrate four years of experience in the specialty pool/spa contractor category sought, or
                  one year of experience and 60 hours of instruction courses approved by the CILB; however,
                  the one year of experience only applies to residential swimming pool/spa servicing contractors.


13
   S. 489.105(3)(q), F.S.
14
   Rule 61G4-15.032, F.A.C.; Rule 61G4-15.040, F.A.C.
15
   Id.
16
   Rule 61G4-15.032, F.A.C.; Email from Colton Madill, Deputy Legislative Affairs Director, DBPR, RE: Pool Contractor
Information, (Jan. 31, 2020).
STORAGE NAME: h1431a.COM                                                                                                PAGE: 4
DATE: 4/2/2021
         Exemptions from Licensure

         An unlicensed person may perform work that falls under the scope of contracting if they fall under an
         exemption provided in current law. Currently, there are 23 exemptions provided in current law,
         including:17

                 a person performing contracting if it is casual, minor, or inconsequential in nature, and the
                  aggregate contract price for all labor and materials is less than $2,500, subject to certain
                  requirements. This is referred to as the handyman exemption;

                 an owner building or improving one or two-family residences, farm outbuildings, or improving
                  commercial buildings at a cost that does not exceed $75,000, subject to certain requirements;

                 an employee of an apartment community or apartment management company who makes
                  minor repairs to existing electric water heaters, electric heating, ventilating, and air-conditioning
                  systems subject to certain requirements;

                 a person who sells or installs any finished products, materials, or articles of merchandise that
                  are not fabricated into and do not become a permanent part of a structure such as awnings; and

                 An employee of the United States, the state, or any municipality, county, irrigation district,
                  reclamation district, or political subdivision, except school boards, state university boards of
                  trustees, and community college boards of trustee, subject to certain requirements.

         Another exemption allows an unlicensed person to perform contracting if the person is under the
         supervision of licensed general, building, or residential contractor, and the work does not require
         licensure as a roofing, sheet metal, air-conditioning, mechanical, pool/spa, plumbing, solar, or
         underground utility and excavation contractor.

         The work must be within the scope of the supervising contractor’s license, and the supervising
         contractor must also be responsible for the work. The unlicensed person must have a direct contract
         with the contractor. However, this is an exemption from state licensure requirements and it does not
         affect the ability of local governments to impose licensing requirements on unlicensed persons.18

         Effect of the Bill

         The bill creates an additional exemption to contractor licensure. The bill provides that unlicensed
         persons may perform the work of specialty contractors for the construction, remodeling, repair, or
         improvement of commercial or residential swimming pools, interactive water features,19 hot tubs, and
         spas without obtaining a specialty contractor license or local license.

         The bill only allows the unlicensed person to perform the work if:

                 the unlicensed person is under the supervision of a licensed commercial or residential pool/spa
                  contractor or swimming pool/spa servicing contractor;
                 the work is within the scope of the supervising contractor’s license;
                 the supervising contractor is responsible for the work; and
                 the work does not require licensure as a roofing, sheet metal, air-conditioning, mechanical,
                  plumbing, solar, underground utility and excavation contractor, or electrical contractor.

17
   S. 489.103, F.S.
18
   S. 489.113(2), F.S.; Florida Home Builders Association v. St. Johns County, 914 So. 2d 1035 (Fla. 5th DCA 2005).
19
   The Florida Building Code defines “interactive water features” as structure designed to allow for recreational activities with
recirculated, filtered, and treated water; but having minimal standing water. Water from the interactive fountain type features is
collected by gravity below grade in a collector tank or sump. The water is filtered, disinfected and then pumped to the feature spray
discharge heads. The collector tank and water filtration features required make this structure a type of public swimming pool. Section
454 of the Seventh edition of the Florida Building Code (Building).
STORAGE NAME: h1431a.COM                                                                                                       PAGE: 5
DATE: 4/2/2021
       The bill does not require a direct contract between the commercial or residential pool/spa contractor or
       swimming pool/spa servicing contractor and the unlicensed person performing the specialty contracting
       services, or require the unlicensed person to be an employee of the supervising pool/spa contractor.

   B. SECTION DIRECTORY:
       Section 1.     Amends s. 489.117, F.S., creating an exemption to licensure requirements.

       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 have a positive impact on the private sector by allowing persons, who are under the
       supervision of licensed pool/spa contractors, to perform work on pools, spas, hot tubs, and interactive
       water features without having to obtain a license. This may also result in certain projects being
       completed in less time and at a lower cost to consumers.

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

       2. Other:
         None.

   B. RULE-MAKING AUTHORITY:
STORAGE NAME: h1431a.COM                                                                                 PAGE: 6
DATE: 4/2/2021
       None.

   C. DRAFTING ISSUES OR OTHER COMMENTS:
       No.


                           IV. AMENDMENTS/ COMMITTEE SUBSTITUTE CHANGES
   On March 24, 2021, the Regulatory Reform Subcommittee adopted a proposed committee substitute and
   reported the bill favorably as a committee substitute. The PCS differed from HB 1431 in the following ways:
       Removes the provision expanding a current exemption, which would allow an unlicensed person to
          perform contracting for the construction, remodeling, repair, or improvement of clubhouses and
          recreation buildings in certain circumstances.
       Adds additional requirements for an unlicensed person to perform specialty contracting for the
          construction, remodeling, repair, or improvement of commercial or residential swimming pools,
          interactive water features, hot tubs, and spas. The additional requirements include:
              o the supervising contractor is responsible for the work; and
              o the work does not require licensure as an electrical contractor.

   The staff analysis is drafted to the committee substitute as passed by the Regulatory Reform
   Subcommittee.




STORAGE NAME: h1431a.COM                                                                               PAGE: 7
DATE: 4/2/2021
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




           CS/HB 1431                                                                                           2021




    1                                         A bill to be entitled
    2              An act relating to swimming pool specialty contracting
    3              services; amending s. 489.117, F.S.; authorizing
    4              certain persons under the supervision of specified
    5              licensed contractors to perform certain specialty
    6              contracting services for commercial or residential
    7              swimming pools, interactive water features, hot tubs,
    8              or spas; providing that such supervision does not
    9              require a direct contract between those persons;
10                 providing applicability; providing an effective date.
11
12         Be It Enacted by the Legislature of the State of Florida:
13
14                 Section 1.         Paragraph (e) is added to subsection (4) of
15         section 489.117, Florida Statutes, to read:
16                 489.117       Registration; specialty contractors.—
17                 (4)
18                 (e)     Any person who is not certified or registered may
19         perform the work of a specialty contractor, whose scope of
20         practice is limited to the type of work specified under s.
21         489.105(3)(j)-(l) for the construction, remodeling, repair, or
22         improvement of commercial or residential swimming pools,
23         interactive water features as defined in the Florida Building
24         Code, hot tubs, and spas, without obtaining a local license or
25         certification as a specialty contractor, provided such person is

                                                         Page 1 of 2

        CODING: Words stricken are deletions; words underlined are additions.
                                                                                                            hb1431-01-c1
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 1431                                                                                           2021




26      supervised by a contractor who is certified or registered under
27      s. 489.105(3)(j)-(l), the work is within the scope of the
28      supervising contractor's license, the supervising contractor is
29      responsible for the work, and the work does not require
30      certification or registration under s. 489.105(3)(d)-(i), (m)-
31      (o), or s. 489.505. Such supervision does not require a direct
32      contract between the contractor certified or registered under s.
33      489.105(3)(j)-(l) and the person performing the work, or for the
34      person performing the work to be an employee of the contractor
35      certified or registered under s. 489.105(3)(j)-(l). This
36      subsection does not limit the exemptions provided in s. 489.103.
37              Section 2.         This act shall take effect July 1, 2021.




                                                      Page 2 of 2

     CODING: Words stricken are deletions; words underlined are additions.
                                                                                                         hb1431-01-c1
HB 1539
                                    HOUSE OF REPRESENTATIVES STAFF ANALYSIS
BILL #:     HB 1539 Pub. Rec./Department of Agriculture and Consumer Services
SPONSOR(S): Jenne
TIED BILLS:       IDEN./SIM. BILLS: CS/SB 1594

  REFERENCE                                                       ACTION                   ANALYST                STAFF DIRECTOR or
                                                                                                                  BUDGET/POLICY CHIEF

  1) Government Operations Subcommittee                           14 Y, 0 N                Roth                   Smith

  2) Commerce Committee                                                                    Thompson               Hamon

  3) State Affairs Committee

                                                        SUMMARY ANALYSIS
The Department of Agriculture and Consumer Services (DACS) is tasked with safeguarding the public and
supporting Florida’s agricultural economy by ensuring the safety and wholesomeness of food and other
consumer products through inspection and testing programs. DACS employs inspectors to enforce the state
laws and rules.

The bill creates a public record exemption for the home address, telephone numbers, dates of birth, and
photographs of current or former DACS inspectors, as well as, the names, home address, telephone numbers,
dates of birth, and places of employment of their spouses, and children. Additionally, the bill exempts the
names and locations of schools and day care facilities attended by the children of current or former DACS
inspectors.

The bill provides that the exemption is subject to the Open Government Sunset Review Act and will repeal on
October 2, 2026, unless the Legislature reviews and reenacts the exemption by that date. The bill provides a
statement of public necessity as required by the Florida Constitution.

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

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




This document does not reflect the intent or official position of the bill sponsor or House of Representatives.
STORAGE NAME: h1539b.COM
DATE: 4/2/2021
                                                        FULL ANALYSIS

                                                I. SUBSTANTIVE ANALYSIS

    A. EFFECT OF PROPOSED CHANGES:
         Background

         Public Records
         Article I, s. 24(a) of the Florida Constitution sets forth the state’s public policy regarding access to
         government records. This section guarantees every person a right to inspect or copy any public record
         of the legislative, executive, and judicial branches of government. The Legislature, however, may
         provide by general law for the exemption of records from the requirements of article I, section 24(a) of
         the Florida Constitution.1 The general law must state with specificity the public necessity justifying the
         exemption2 and must be no more broad than necessary to accomplish its purpose.3

         Public policy regarding access to government records is addressed further in s. 119.07(1)(a), F.S.,
         which guarantees every person a right to inspect and copy any state, county, or municipal record.
         Furthermore, the Open Government Sunset Review Act4 provides that a public record or public meeting
         exemption may be created or maintained only if it serves an identifiable public purpose. In addition, it
         may be no broader than is necessary to meet one of the following purposes:
             Allow the state or its political subdivisions to effectively and efficiently administer a
                governmental program, which administration would be significantly impaired without the
                exemption.
             Protect sensitive personal information that, if released, would be defamatory or would
                jeopardize an individual’s safety; however, only the identity of an individual may be exempted
                under this provision.
             Protect trade or business secrets.5

         The Open Government Sunset Review Act requires the automatic repeal of a newly created exemption
         on October 2nd of the fifth year after creation or substantial amendment, unless the Legislature
         reenacts the exemption.6

         Department of Agriculture and Consumer Services
         The Department of Agriculture and Consumer Services (DACS) is tasked with safeguarding the public
         and supporting Florida’s agricultural economy by ensuring the safety and wholesomeness of food and
         other consumer products through inspection and testing programs.7

         DACS employs inspectors to enforce the state laws and rules relating to:
            Fruit and vegetable inspection and grading;
            Pesticide spray, residue inspection, and removal;
            Registration, labeling, inspection, sale, use, composition, formulation, wholesale and retail
              distribution, and analysis of commercial stock feeds and registration, labeling, inspection, and
              analysis of commercial fertilizers;
            Classification, inspection, and sale of poultry and eggs;
            Registration, inspection, and analysis of gasolines and oils;
            Registration, labeling, inspection, and analysis of pesticides;
            Registration, labeling, inspection, germination testing, and sale of seeds, both common and
              certified;
            Foods, as set forth in the Florida Food Safety Act;

1
  Art. I, s. 24(c), FLA. CONST.
2
  This portion of a public record exemption is commonly referred to as a “public necessity statement.”
3
  Art. I, s. 24(c), FLA. CONST.
4
  Section 119.15, F.S.
5
  Section 119.15(6)(b), F.S.
6
  Section 119.15(3), F.S.
7
  Chapter 570, F.S.
STORAGE NAME: h1539b.COM                                                                                     PAGE: 2
DATE: 4/2/2021
                Inspection and certification of honey;
                Recordation and inspection of marks and brands of livestock;8 and
                Inspection of apiaries9 for diseases inimical to bees and beekeeping.10

        According to DACS, 397 inspectors are currently employed and qualify under the provisions set forth
        within this bill.11 The areas in which these inspectors preside are classified as: Animal Industry
        (36 inspectors), Consumer Services (98 inspectors), Fruit and Vegetable (155 inspectors), Plant
        Industry (24 inspectors), and Food and Safety (84 inspectors).12

        Effect of the Bill

        The bill creates a public records exemption for the home address, telephone numbers, dates of birth,
        and photographs of current or former inspectors of DACS, as well as, the names, home address,
        telephone numbers, dates of birth, and places of employment of the spouses and children of current or
        former inspectors. Additionally, the bill exempts the names and locations of schools and day care
        facilities attended by the children of current or former inspectors.

        The bill provides that the exemption is subject to the Open Government Sunset Review Act and will
        repeal on October 2, 2026, unless the Legislature reviews and reenacts the exemption by that date.

        The bill includes a statement of public necessity as required by the Florida Constitution, stating that the
        exemption is necessary to protect DACS inspectors and their immediate family members from physical
        and emotional harm from disgruntled individuals whose business or professional practices have come
        under the scrutiny of DACS.

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

        Section 2:        Provides a statement of public necessity.

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

                            II. FISCAL ANALYSIS & ECONOMIC IMPACT STATEMENT

    A. FISCAL IMPACT ON STATE GOVERNMENT:

        1. Revenues:
             None.

        2. Expenditures:
             See Fiscal Comments.

    B. FISCAL IMPACT ON LOCAL GOVERNMENTS:

        1. Revenues:
             None.


8
  Section 570.07(16)(a)-(n), F.S.
9
  An apiary is a collection of beehives.
10
   Section 570.07(14), F.S.
11
   E-mail from Carlos J. Nathan, Deputy Legislative Affairs Director, Florida Department of Agriculture and Consumer Services,
Office of the Commissioner, to Katherine Becker, Staff Director, The Florida Senate Committee on Agriculture (March 8, 2021) (on
file with the Senate Committee on Agriculture).
12
   Id.
STORAGE NAME: h1539b.COM                                                                                                  PAGE: 3
DATE: 4/2/2021
       2. Expenditures:
            See Fiscal Comments.

   C. DIRECT ECONOMIC IMPACT ON PRIVATE SECTOR:
       None.

   D. FISCAL COMMENTS:
       The bill may have a minimal fiscal impact on agencies because agency staff responsible for complying
       with public records requests may require training related to the creation of the public record exemption.
       Agencies could incur costs associated with redacting the exempt information prior to releasing a record.
       The costs, however, would be absorbed by existing resources, as they are part of the day-to-day
       responsibilities of agencies.


                                                 III. COMMENTS

   A. CONSTITUTIONAL ISSUES:

       1. Applicability of Municipality/County Mandates Provision:
           Not applicable. The bill does not appear to require counties or municipalities to take an action
           requiring the expenditure of funds, reduce the authority that counties or municipalities have to raise
           revenue in the aggregate, nor reduce the percentage of state tax shared with counties or
           municipalities.

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

           Public Necessity Statement
           Article I, s. 24(c) of the Florida Constitution requires a public necessity statement for a newly created
           or expanded public record exemption. The bill creates a public record exemption; therefore, it
           includes a public necessity statement.


           Breadth of Exemption
           Article I, section 24(c) of the Florida Constitution requires a newly created public record or public
           meeting exemption to be no broader than necessary to accomplish the stated purpose of the law.
           This bill creates a public record exemption for certain personal information of current or former DACS
           inspectors, their spouses, and children. The purpose of the exemption is to protect current or former
           DACS inspectors, their spouses, and children from disgruntled individuals whose business or
           professional practices have come under the scrutiny of DACS.

   B. RULE-MAKING AUTHORITY:
       None.


   C. DRAFTING ISSUES OR OTHER COMMENTS:
       None.


                           IV. AMENDMENTS/ COMMITTEE SUBSTITUTE CHANGES
   None.
STORAGE NAME: h1539b.COM                                                                                     PAGE: 4
DATE: 4/2/2021
STORAGE NAME: h1539b.COM   PAGE: 5
DATE: 4/2/2021
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 1539                                                                                               2021




    1                                         A bill to be entitled
    2                An act relating to public records; amending s.
    3                119.071, F.S.; exempting personal identifying and
    4                location information of certain current and former
    5                inspectors of the Department of Agriculture and
    6                Consumer Services and their spouses and children from
    7                public records requirements; providing for future
    8                legislative review and repeal of the exemption;
    9                providing a statement of public necessity; providing
10                   an effective date.
11
12         Be It Enacted by the Legislature of the State of Florida:
13
14                   Section 1.       Paragraph (d) of subsection (4) of section
15         119.071, Florida Statutes, is amended to read:
16                   119.071       General exemptions from inspection or copying of
17         public records.—
18                   (4)      AGENCY PERSONNEL INFORMATION.—
19                   (d)1.       For purposes of this paragraph, the term:
20                   a.      "Home addresses" means the dwelling location at which
21         an individual resides and includes the physical address, mailing
22         address, street address, parcel identification number, plot
23         identification number, legal property description, neighborhood
24         name and lot number, GPS coordinates, and any other descriptive
25         property information that may reveal the home address.

                                                         Page 1 of 14

        CODING: Words stricken are deletions; words underlined are additions.
                                                                                                                hb1539-00
F   L   O   R     I   D   A     H   O   U   S   E    O   F      R    E   P   R   E   S   E   N   T   A   T    I   V   E   S




        HB 1539                                                                                               2021




26                b.      "Telephone numbers" includes home telephone numbers,
27      personal cellular telephone numbers, personal pager telephone
28      numbers, and telephone numbers associated with personal
29      communications devices.
30                2.a.        The home addresses, telephone numbers, dates of
31      birth, and photographs of active or former sworn law enforcement
32      personnel or of active or former civilian personnel employed by
33      a law enforcement agency, including correctional and
34      correctional probation officers, personnel of the Department of
35      Children and Families whose duties include the investigation of
36      abuse, neglect, exploitation, fraud, theft, or other criminal
37      activities, personnel of the Department of Health whose duties
38      are to support the investigation of child abuse or neglect, and
39      personnel of the Department of Revenue or local governments
40      whose responsibilities include revenue collection and
41      enforcement or child support enforcement; the names, home
42      addresses, telephone numbers, photographs, dates of birth, and
43      places of employment of the spouses and children of such
44      personnel; and the names and locations of schools and day care
45      facilities attended by the children of such personnel are exempt
46      from s. 119.07(1) and s. 24(a), Art. I of the State
47      Constitution.
48                b.      The home addresses, telephone numbers, dates of birth,
49      and photographs of current or former nonsworn investigative
50      personnel of the Department of Financial Services whose duties

                                                      Page 2 of 14

     CODING: Words stricken are deletions; words underlined are additions.
                                                                                                             hb1539-00
F   L   O   R     I   D   A   H   O   U   S   E      O   F      R    E   P   R   E   S   E   N   T   A   T    I   V   E   S




        HB 1539                                                                                               2021




51      include the investigation of fraud, theft, workers' compensation
52      coverage requirements and compliance, other related criminal
53      activities, or state regulatory requirement violations; the
54      names, home addresses, telephone numbers, dates of birth, and
55      places of employment of the spouses and children of such
56      personnel; and the names and locations of schools and day care
57      facilities attended by the children of such personnel are exempt
58      from s. 119.07(1) and s. 24(a), Art. I of the State
59      Constitution.
60                c.      The home addresses, telephone numbers, dates of birth,
61      and photographs of current or former nonsworn investigative
62      personnel of the Office of Financial Regulation's Bureau of
63      Financial Investigations whose duties include the investigation
64      of fraud, theft, other related criminal activities, or state
65      regulatory requirement violations; the names, home addresses,
66      telephone numbers, dates of birth, and places of employment of
67      the spouses and children of such personnel; and the names and
68      locations of schools and day care facilities attended by the
69      children of such personnel are exempt from s. 119.07(1) and s.
70      24(a), Art. I of the State Constitution.
71                d.      The home addresses, telephone numbers, dates of birth,
72      and photographs of current or former firefighters certified in
73      compliance with s. 633.408; the names, home addresses, telephone
74      numbers, photographs, dates of birth, and places of employment
75      of the spouses and children of such firefighters; and the names

                                                      Page 3 of 14

     CODING: Words stricken are deletions; words underlined are additions.
                                                                                                             hb1539-00
F   L    O   R     I   D   A   H   O   U   S   E      O   F      R    E   P   R   E   S   E   N   T   A   T    I   V   E   S




         HB 1539                                                                                               2021




76       and locations of schools and day care facilities attended by the
77       children of such firefighters are exempt from s. 119.07(1) and
78       s. 24(a), Art. I of the State Constitution.
79                 e.      The home addresses, dates of birth, and telephone
80       numbers of current or former justices of the Supreme Court,
81       district court of appeal judges, circuit court judges, and
82       county court judges; the names, home addresses, telephone
83       numbers, dates of birth, and places of employment of the spouses
84       and children of current or former justices and judges; and the
85       names and locations of schools and day care facilities attended
86       by the children of current or former justices and judges are
87       exempt from s. 119.07(1) and s. 24(a), Art. I of the State
88       Constitution.
89                 f.      The home addresses, telephone numbers, dates of birth,
90       and photographs of current or former state attorneys, assistant
91       state attorneys, statewide prosecutors, or assistant statewide
92       prosecutors; the names, home addresses, telephone numbers,
93       photographs, dates of birth, and places of employment of the
94       spouses and children of current or former state attorneys,
95       assistant state attorneys, statewide prosecutors, or assistant
96       statewide prosecutors; and the names and locations of schools
97       and day care facilities attended by the children of current or
98       former state attorneys, assistant state attorneys, statewide
99       prosecutors, or assistant statewide prosecutors are exempt from
100      s. 119.07(1) and s. 24(a), Art. I of the State Constitution.

                                                       Page 4 of 14

      CODING: Words stricken are deletions; words underlined are additions.
                                                                                                              hb1539-00
F   L    O   R     I   D   A   H   O   U   S   E      O   F      R    E   P   R   E   S   E   N   T   A   T    I   V   E   S




         HB 1539                                                                                               2021




101                g.      The home addresses, dates of birth, and telephone
102      numbers of general magistrates, special magistrates, judges of
103      compensation claims, administrative law judges of the Division
104      of Administrative Hearings, and child support enforcement
105      hearing officers; the names, home addresses, telephone numbers,
106      dates of birth, and places of employment of the spouses and
107      children of general magistrates, special magistrates, judges of
108      compensation claims, administrative law judges of the Division
109      of Administrative Hearings, and child support enforcement
110      hearing officers; and the names and locations of schools and day
111      care facilities attended by the children of general magistrates,
112      special magistrates, judges of compensation claims,
113      administrative law judges of the Division of Administrative
114      Hearings, and child support enforcement hearing officers are
115      exempt from s. 119.07(1) and s. 24(a), Art. I of the State
116      Constitution.
117                h.      The home addresses, telephone numbers, dates of birth,
118      and photographs of current or former human resource, labor
119      relations, or employee relations directors, assistant directors,
120      managers, or assistant managers of any local government agency
121      or water management district whose duties include hiring and
122      firing employees, labor contract negotiation, administration, or
123      other personnel-related duties; the names, home addresses,
124      telephone numbers, dates of birth, and places of employment of
125      the spouses and children of such personnel; and the names and

                                                       Page 5 of 14

      CODING: Words stricken are deletions; words underlined are additions.
                                                                                                              hb1539-00
F   L    O   R     I   D   A   H   O   U   S   E      O   F      R    E   P   R   E   S   E   N   T   A   T    I   V   E   S




         HB 1539                                                                                               2021




126      locations of schools and day care facilities attended by the
127      children of such personnel are exempt from s. 119.07(1) and s.
128      24(a), Art. I of the State Constitution.
129                i.      The home addresses, telephone numbers, dates of birth,
130      and photographs of current or former code enforcement officers;
131      the names, home addresses, telephone numbers, dates of birth,
132      and places of employment of the spouses and children of such
133      personnel; and the names and locations of schools and day care
134      facilities attended by the children of such personnel are exempt
135      from s. 119.07(1) and s. 24(a), Art. I of the State
136      Constitution.
137                j.      The home addresses, telephone numbers, places of
138      employment, dates of birth, and photographs of current or former
139      guardians ad litem, as defined in s. 39.820; the names, home
140      addresses, telephone numbers, dates of birth, and places of
141      employment of the spouses and children of such persons; and the
142      names and locations of schools and day care facilities attended
143      by the children of such persons are exempt from s. 119.07(1) and
144      s. 24(a), Art. I of the State Constitution.
145                k.      The home addresses, telephone numbers, dates of birth,
146      and photographs of current or former juvenile probation
147      officers, juvenile probation supervisors, detention
148      superintendents, assistant detention superintendents, juvenile
149      justice detention officers I and II, juvenile justice detention
150      officer supervisors, juvenile justice residential officers,

                                                       Page 6 of 14

      CODING: Words stricken are deletions; words underlined are additions.
                                                                                                              hb1539-00
F   L    O   R     I   D   A   H   O   U   S   E      O   F      R    E   P   R   E   S   E   N   T   A   T    I   V   E   S




         HB 1539                                                                                               2021




151      juvenile justice residential officer supervisors I and II,
152      juvenile justice counselors, juvenile justice counselor
153      supervisors, human services counselor administrators, senior
154      human services counselor administrators, rehabilitation
155      therapists, and social services counselors of the Department of
156      Juvenile Justice; the names, home addresses, telephone numbers,
157      dates of birth, and places of employment of spouses and children
158      of such personnel; and the names and locations of schools and
159      day care facilities attended by the children of such personnel
160      are exempt from s. 119.07(1) and s. 24(a), Art. I of the State
161      Constitution.
162                l.      The home addresses, telephone numbers, dates of birth,
163      and photographs of current or former public defenders, assistant
164      public defenders, criminal conflict and civil regional counsel,
165      and assistant criminal conflict and civil regional counsel; the
166      names, home addresses, telephone numbers, dates of birth, and
167      places of employment of the spouses and children of current or
168      former public defenders, assistant public defenders, criminal
169      conflict and civil regional counsel, and assistant criminal
170      conflict and civil regional counsel; and the names and locations
171      of schools and day care facilities attended by the children of
172      current or former public defenders, assistant public defenders,
173      criminal conflict and civil regional counsel, and assistant
174      criminal conflict and civil regional counsel are exempt from s.
175      119.07(1) and s. 24(a), Art. I of the State Constitution.

                                                       Page 7 of 14

      CODING: Words stricken are deletions; words underlined are additions.
                                                                                                              hb1539-00
F   L    O   R     I   D   A   H   O   U   S   E      O   F      R    E   P   R   E   S   E   N   T   A   T    I   V   E   S




         HB 1539                                                                                               2021




176                m.      The home addresses, telephone numbers, dates of birth,
177      and photographs of current or former investigators or inspectors
178      of the Department of Business and Professional Regulation; the
179      names, home addresses, telephone numbers, dates of birth, and
180      places of employment of the spouses and children of such current
181      or former investigators and inspectors; and the names and
182      locations of schools and day care facilities attended by the
183      children of such current or former investigators and inspectors
184      are exempt from s. 119.07(1) and s. 24(a), Art. I of the State
185      Constitution.
186                n.      The home addresses, telephone numbers, and dates of
187      birth of county tax collectors; the names, home addresses,
188      telephone numbers, dates of birth, and places of employment of
189      the spouses and children of such tax collectors; and the names
190      and locations of schools and day care facilities attended by the
191      children of such tax collectors are exempt from s. 119.07(1) and
192      s. 24(a), Art. I of the State Constitution.
193                o.      The home addresses, telephone numbers, dates of birth,
194      and photographs of current or former personnel of the Department
195      of Health whose duties include, or result in, the determination
196      or adjudication of eligibility for social security disability
197      benefits, the investigation or prosecution of complaints filed
198      against health care practitioners, or the inspection of health
199      care practitioners or health care facilities licensed by the
200      Department of Health; the names, home addresses, telephone

                                                       Page 8 of 14

      CODING: Words stricken are deletions; words underlined are additions.
                                                                                                              hb1539-00
F   L    O   R     I   D   A   H   O   U   S   E      O   F      R    E   P   R   E   S   E   N   T   A   T    I   V   E   S




         HB 1539                                                                                               2021




201      numbers, dates of birth, and places of employment of the spouses
202      and children of such personnel; and the names and locations of
203      schools and day care facilities attended by the children of such
204      personnel are exempt from s. 119.07(1) and s. 24(a), Art. I of
205      the State Constitution.
206                p.      The home addresses, telephone numbers, dates of birth,
207      and photographs of current or former impaired practitioner
208      consultants who are retained by an agency or current or former
209      employees of an impaired practitioner consultant whose duties
210      result in a determination of a person's skill and safety to
211      practice a licensed profession; the names, home addresses,
212      telephone numbers, dates of birth, and places of employment of
213      the spouses and children of such consultants or their employees;
214      and the names and locations of schools and day care facilities
215      attended by the children of such consultants or employees are
216      exempt from s. 119.07(1) and s. 24(a), Art. I of the State
217      Constitution.
218                q.      The home addresses, telephone numbers, dates of birth,
219      and photographs of current or former emergency medical
220      technicians or paramedics certified under chapter 401; the
221      names, home addresses, telephone numbers, dates of birth, and
222      places of employment of the spouses and children of such
223      emergency medical technicians or paramedics; and the names and
224      locations of schools and day care facilities attended by the
225      children of such emergency medical technicians or paramedics are

                                                       Page 9 of 14

      CODING: Words stricken are deletions; words underlined are additions.
                                                                                                              hb1539-00
F   L    O   R     I   D   A   H   O   U   S   E      O   F      R    E   P   R   E   S   E   N   T   A   T    I   V   E   S




         HB 1539                                                                                               2021




226      exempt from s. 119.07(1) and s. 24(a), Art. I of the State
227      Constitution.
228                r.      The home addresses, telephone numbers, dates of birth,
229      and photographs of current or former personnel employed in an
230      agency's office of inspector general or internal audit
231      department whose duties include auditing or investigating waste,
232      fraud, abuse, theft, exploitation, or other activities that
233      could lead to criminal prosecution or administrative discipline;
234      the names, home addresses, telephone numbers, dates of birth,
235      and places of employment of spouses and children of such
236      personnel; and the names and locations of schools and day care
237      facilities attended by the children of such personnel are exempt
238      from s. 119.07(1) and s. 24(a), Art. I of the State
239      Constitution.
240                s.      The home addresses, telephone numbers, dates of birth,
241      and photographs of current or former directors, managers,
242      supervisors, nurses, and clinical employees of an addiction
243      treatment facility; the home addresses, telephone numbers,
244      photographs, dates of birth, and places of employment of the
245      spouses and children of such personnel; and the names and
246      locations of schools and day care facilities attended by the
247      children of such personnel are exempt from s. 119.07(1) and s.
248      24(a), Art. I of the State Constitution. For purposes of this
249      sub-subparagraph, the term "addiction treatment facility" means
250      a county government, or agency thereof, that is licensed

                                                      Page 10 of 14

      CODING: Words stricken are deletions; words underlined are additions.
                                                                                                              hb1539-00
F   L    O   R     I   D   A   H   O   U   S   E      O   F      R    E   P   R   E   S   E   N   T   A   T    I   V   E   S




         HB 1539                                                                                               2021




251      pursuant to s. 397.401 and provides substance abuse prevention,
252      intervention, or clinical treatment, including any licensed
253      service component described in s. 397.311(26).
254                t.      The home addresses, telephone numbers, dates of birth,
255      and photographs of current or former directors, managers,
256      supervisors, and clinical employees of a child advocacy center
257      that meets the standards of s. 39.3035(1) and fulfills the
258      screening requirement of s. 39.3035(2), and the members of a
259      Child Protection Team as described in s. 39.303 whose duties
260      include supporting the investigation of child abuse or sexual
261      abuse, child abandonment, child neglect, and child exploitation
262      or to provide services as part of a multidisciplinary case
263      review team; the names, home addresses, telephone numbers,
264      photographs, dates of birth, and places of employment of the
265      spouses and children of such personnel and members; and the
266      names and locations of schools and day care facilities attended
267      by the children of such personnel and members are exempt from s.
268      119.07(1) and s. 24(a), Art. I of the State Constitution.
269                u.      The home addresses, telephone numbers, dates of birth,
270      and photographs of current or former inspectors of the
271      Department of Agriculture and Consumer Services; the names, home
272      addresses, telephone numbers, dates of birth, and places of
273      employment of the spouses and children of such current or former
274      inspectors; and the names and locations of schools and day care
275      facilities attended by the children of such current or former

                                                      Page 11 of 14

      CODING: Words stricken are deletions; words underlined are additions.
                                                                                                              hb1539-00
F   L    O   R     I   D   A   H   O   U   S   E      O   F      R    E   P   R   E   S   E   N   T   A   T    I   V   E   S




         HB 1539                                                                                               2021




276      inspectors are exempt from s. 119.07(1) and s. 24(a), Art. I of
277      the State Constitution. This sub-subparagraph is subject to the
278      Open Government Sunset Review Act in accordance with s. 119.15
279      and shall stand repealed on October 2, 2026, unless reviewed and
280      saved from repeal through reenactment by the Legislature.
281                3.      An agency that is the custodian of the information
282      specified in subparagraph 2. and that is not the employer of the
283      officer, employee, justice, judge, or other person specified in
284      subparagraph 2. shall maintain the exempt status of that
285      information only if the officer, employee, justice, judge, other
286      person, or employing agency of the designated employee submits a
287      written request for maintenance of the exemption to the
288      custodial agency.
289                4.      An officer, an employee, a justice, a judge, or other
290      person specified in subparagraph 2. may submit a written request
291      for the release of his or her exempt information to the
292      custodial agency. The written request must be notarized and must
293      specify the information to be released and the party that is
294      authorized to receive the information. Upon receipt of the
295      written request, the custodial agency shall release the
296      specified information to the party authorized to receive such
297      information.
298                5.      The exemptions in this paragraph apply to information
299      held by an agency before, on, or after the effective date of the
300      exemption.

                                                      Page 12 of 14

      CODING: Words stricken are deletions; words underlined are additions.
                                                                                                              hb1539-00
F   L    O   R     I   D   A   H   O   U   S   E      O   F      R    E   P   R   E   S   E   N   T   A   T    I   V   E   S




         HB 1539                                                                                               2021




301                6.      Except for sub-subparagraph u., this paragraph is
302      subject to the Open Government Sunset Review Act in accordance
303      with s. 119.15 and shall stand repealed on October 2, 2024,
304      unless reviewed and saved from repeal through reenactment by the
305      Legislature.
306                Section 2.       The Legislature finds that it is a public
307      necessity that the home addresses, telephone numbers, dates of
308      birth, and photographs of current or former inspectors of the
309      Department of Agriculture and Consumer Services; the names, home
310      addresses, telephone numbers, dates of birth, and places of
311      employment of the spouses and children of such current or former
312      inspectors; and the names and locations of schools and day care
313      facilities attended by the children of such current or former
314      inspectors be made exempt from s. 119.07(1) and s. 24(a), Art. I
315      of the State Constitution. The release of such identifying and
316      location information may place current or former inspectors of
317      the Department of Agriculture and Consumer Services and their
318      family members in danger of physical and emotional harm from
319      disgruntled individuals whose business or professional practices
320      have come under the scrutiny of the Department of Agriculture
321      and Consumer Services. Inspectors inspect places of business and
322      frequently take adverse actions when violations are found, which
323      creates unpleasant and tenuous situations. The Legislature
324      further finds that the harm that may result from the release of
325      such personal identifying and location information outweighs any

                                                      Page 13 of 14

      CODING: Words stricken are deletions; words underlined are additions.
                                                                                                              hb1539-00
F   L    O   R     I   D   A   H   O   U   S   E      O   F      R    E   P   R   E   S   E   N   T   A   T    I   V   E   S




         HB 1539                                                                                               2021




326      public benefit that may be derived from the disclosure of the
327      information.
328                Section 3.       This act shall take effect July 1, 2021.




                                                      Page 14 of 14

      CODING: Words stricken are deletions; words underlined are additions.
                                                                                                              hb1539-00
HB 6059
                                    HOUSE OF REPRESENTATIVES STAFF ANALYSIS
BILL #:     HB 6059 Composition of the Multi-use Corridors of Regional Economic Significance Program
SPONSOR(S): Shoaf
TIED BILLS:       IDEN./SIM. BILLS: SB 1590

    REFERENCE                                                        ACTION                   ANALYST              STAFF DIRECTOR or
                                                                                                                   BUDGET/POLICY CHIEF

    1) Tourism, Infrastructure & Energy Subcommittee                 18 Y, 0 N                Johnson              Keating

    2) Commerce Committee                                                                     Johnson              Hamon

                                                         SUMMARY ANALYSIS
In 2019, the Legislature created the Multi-use Corridors of Regional Economic Significance (M-CORES)
program within the Department of Transportation. The purpose of the program is to revitalize rural
communities, encourage job creation, and provide regional connectivity while leveraging technology,
enhancing quality of life and public safety, and protecting the environment and natural resources. M-CORES is
composed of the following corridors:
     Southwest-Central Florida Connector, extending from Collier County to Polk County.
     Suncoast Connector, extending from Citrus County to Jefferson County.
     Northern Turnpike Connector, extending from the northern terminus of the Florida Turnpike northwest
       to the Suncoast Parkway.

The bill removes the words “to Jefferson County” from the description of the Suncoast Connector, thus
providing that the Suncoast Connector extends from Citrus County without a specified terminus.

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

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




This document does not reflect the intent or official position of the bill sponsor or House of Representatives .
STORAGE NAME: h6059b.COM
DATE: 4/2/2021
                                                      FULL ANALYSIS

                                               I. SUBSTANTIVE ANALYSIS

    A. EFFECT OF PROPOSED CHANGES:
        Current Situation

        In 2019, the Legislature passed CS/SB 7068, creating the Multi-use Corridors of Regional Economic
        Significance (M-CORES) program within the Department of Transportation (DOT).1 The purpose of the
        program is to revitalize rural communities, encourage job creation, and provide regional connectivity
        while leveraging technology, enhancing quality of life and public safety, and protecting the environment
        and natural resources. The objective of the program is to advance the construction of regional corridors
        that are intended to accommodate multiple modes of transportation and multiple types of infrastructure.
        The intended benefits of the program include, but are not limited to, addressing issues such as:
             Hurricane evacuation.
             Congestion mitigation.
             Trade and logistics.
             Broadband, water, and sewer connectivity.
             Energy distribution.
             Autonomous, connected, shared, and electric vehicle technology.
             Other transportation modes.
             Mobility as a service.
             Availability of a trained workforce skilled in traditional and emerging technologies.
             Protection or enhancement of wildlife corridors or environmentally sensitive areas.
             Protection or enhancement of primary springs protection zones and farmland preservation
                areas.2

        M-CORES is composed of the following corridors:
            Southwest-Central Florida Connector, extending from Collier County to Polk County.
            Suncoast Connector, extending from Citrus County to Jefferson County.
            Northern Turnpike Connector, extending from the northern terminus of the Florida Turnpike
             northwest to the Suncoast Parkway.3

        The M-CORES program required DOT to establish task forces for each of the above corridors to serve
        as a consensus building mechanism regarding each of the corridors. The Final Task Force Reports for
        each corridor were released in November 2020.4 Each report identified a series of potential high-level
        needs for DOT’s future evaluation and developed recommendations for how DOT should assess the
        need for each corridor.5

        Effect of the Bill

        The bill removes the words “to Jefferson County” from the description of the Suncoast Connector in s.
        338.2278(2)(b), F.S.; thus, providing that the Suncoast Connector extends from Citrus County without a
        specified terminus.

    B. SECTION DIRECTORY:
        Section 1 Amends s. 338.2278, F.S., relating to Multi-use Corridors of Regional Economic
        Significance Program.


1
  Ch. 2019-43, Laws of Fla.
2
  S. 338.2278(1), F.S.
3
  S. 338.2278(2), F.S.
4
  Copies of all three task force reports are available at: https://floridamcores.com/ (last visited Feb. 24, 2021)
5
  M-CORES Suncoast Connector Task Force Report, p. 6. https://floridamcores.com/wp-content/uploads/2020/11/M-
CORES_SCC_FinalTaskForceReport.pdf (last visited Feb. 24, 2020)
STORAGE NAME: h6059b.COM                                                                                             PAGE: 2
DATE: 4/2/2021
       Section 2 Provides an effective date of July 1, 2021.


                           II. FISCAL ANALYSIS & ECONOMIC IMPACT STATEMENT

   A. FISCAL IMPACT ON STATE GOVERNMENT:

       1. Revenues:
           The bill does not appear to impact state government revenues.

       2. Expenditures:
           The bill does not appear to impact state government expenditures.

   B. FISCAL IMPACT ON LOCAL GOVERNMENTS:

       1. Revenues:
           The bill does not appear to impact local government revenues.

       2. Expenditures:
           The bill does not appear to impact local government expenditures.

   C. DIRECT ECONOMIC IMPACT ON PRIVATE SECTOR:
       None.

   D. FISCAL COMMENTS:
       None.


                                               III. COMMENTS

   A. CONSTITUTIONAL ISSUES:

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

       2. Other:
         None.

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

   C. DRAFTING ISSUES OR OTHER COMMENTS:
       By removing the terminus for the Suncoast Connector, the bill creates ambiguity as to the desired
       direction and purpose of that corridor.


                           IV. AMENDMENTS/ COMMITTEE SUBSTITUTE CHANGES




STORAGE NAME: h6059b.COM                                                                               PAGE: 3
DATE: 4/2/2021
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 6059                                                                                               2021




    1                                         A bill to be entitled
    2                An act relating to the composition of the Multi-use
    3                Corridors of Regional Economic Significance Program;
    4                amending s. 338.2278, F.S.; removing a certain
    5                regional corridor terminus from the program; providing
    6                an effective date.
    7
    8      Be It Enacted by the Legislature of the State of Florida:
    9
10                   Section 1.       Paragraph (b) of subsection (2) of section
11         338.2278, Florida Statutes, is amended to read:
12                   338.2278        Multi-use Corridors of Regional Economic
13         Significance Program.—
14                   (2)     The program is composed of all of the following
15         corridors:
16                   (b)     Suncoast Connector, extending from Citrus County to
17         Jefferson County.
18                   Section 2.       This act shall take effect July 1, 2021.




                                                         Page 1 of 1

        CODING: Words stricken are deletions; words underlined are additions.
                                                                                                                hb6059-00
HB 7049
                                    HOUSE OF REPRESENTATIVES STAFF ANALYSIS
BILL #:     HB 7049      PCB GOS 21-06 OGSR/Office of Insurance Regulation
SPONSOR(S): Government Operations Subcommittee, Shoaf
TIED BILLS:       IDEN./SIM. BILLS: SB 7014

    REFERENCE                                                       ACTION                    ANALYST             STAFF DIRECTOR or
                                                                                                                  BUDGET/POLICY CHIEF

    Orig. Comm.: Government Operations                              15 Y, 0 N                 Toliver             Smith
       Subcommittee

    1) Commerce Committee                                                                     Fortenberry         Hamon

    2) State Affairs Committee

                                                        SUMMARY ANALYSIS
The Open Government Sunset Review Act requires the Legislature to review each public record and each
public meeting exemption five years after enactment. If the Legislature does not reenact the exemption, it
automatically repeals on October 2nd of the fifth year after enactment.

States are the primary regulators of insurance companies. In Florida, the Office of Insurance Regulation (OIR)
is primarily responsible for licensing insurance companies, monitoring the solvency of regulated insurers,
examining insurers to determine compliance with applicable laws, and taking administrative action, if
necessary. OIR is a member of the National Association of Insurance Commissioners (NAIC), an organization
consisting of state insurance regulators. As a member of the NAIC, the OIR is required to participate in the
organization’s accreditation program.

The NAIC created two model acts that each member must enact to stay accredited: the Own Risk Solvency
Assessment (ORSA) Model Act and the Corporate Governance Annual Disclosure (CGAD) Model Act. An
ORSA is an internal assessment of all reasonably foreseeable and relevant material risks that is designed to
provide OIR with a comprehensive view of the ability of an insurer to withstand financial stress. Each ORSA
report must also contain a high-level summary of its contents, termed an ORSA summary report. A CGAD
requires disclosures of the insurer’s corporate governance structure as well as the policies and practices of its
Board of Directors and Senior Management.

In 2016, the Florida Legislature passed CS/CS/SB 1422 that enacted solvency regulation measures designed
to protect policyholders against the risk that insurers will not be able to meet their financial responsibilities.
Among other requirements, the bill enacted portions of the ORSA model act and the CGAD model act,
requiring insurers to submit an ORSA and a CGAD to OIR each year.

Current law makes certain proprietary business information held by OIR confidential and exempt from public
record requirements. This includes proprietary business information and supporting documents contained in
documents, such as the actuarial opinion summary, principle-based valuation report, enterprise risk report, and
insurance holding company registration.

To protect certain sensitive and strategic financial information, the Legislature in 2016 created a public record
exemption for ORSA summary reports, substantially similar ORSA reports, CGAD reports, and supporting
documents held by OIR. The documents are confidential and exempt from public records requirements.
Information otherwise available for public inspection is specifically excluded from the exemption.

The bill saves from repeal these public record exemptions, which will repeal on October 2, 2021, if this bill does
not become law.

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


This document does not reflect the intent or official position of the bill sponsor or House of Representatives.
STORAGE NAME: h7049.COM
DATE: 4/2/2021
                                              I. SUBSTANTIVE ANALYSIS

    A. EFFECT OF PROPOSED CHANGES:
        Background

        Open Government Sunset Review Act
        The Open Government Sunset Review Act (Act)1 sets forth a legislative review process for newly
        created or substantially amended public record or public meeting exemptions. It requires an automatic
        repeal of the exemption on October 2nd of the fifth year after creation or substantial amendment,
        unless the Legislature reenacts the exemption.2

        The Act provides that a public record or public meeting exemption may be created or maintained only if
        it serves an identifiable public purpose. In addition, it may be no broader than is necessary to meet one
        of the following purposes:
                 Allow the state or its political subdivisions to effectively and efficiently administer a
                    governmental program, which administration would be significantly impaired without the
                    exemption.
                 Protect sensitive personal information that, if released, would be defamatory or would
                    jeopardize an individual’s safety; however, only the identity of an individual may be
                    exempted under this provision.
                 Protect trade or business secrets.3

        If, and only if, in reenacting an exemption that will repeal, the exemption is expanded (essentially
        creating a new exemption), then a public necessity statement and a two-thirds vote for passage are
        required.4 If the exemption is reenacted with grammatical or stylistic changes that do not expand the
        exemption, if the exemption is narrowed, or if an exception to the exemption is created then a public
        necessity statement and a two-thirds vote for passage are not required.

        Regulation of Insurance in Florida
        States are the primary regulators of insurance companies. In Florida, the Office of Insurance
        Regulation (OIR)5 is primarily responsible for licensing insurance companies, monitoring the solvency
        of regulated insurers, examining insurers to determine compliance with applicable laws, and taking
        administrative action, if necessary.

        National Association of Insurance Commissioners Accreditation
        OIR is a member of the National Association of Insurance Commissioners (NAIC), an organization
        consisting of state insurance regulators.6 As a member of the NAIC, the OIR is required to participate in
        the organization’s accreditation program.7 NAIC accreditation is a certification that a state insurance
        department is fulfilling legal, regulatory, and organizational oversight standards and practices. Once
        accredited, a member state is subject to a full accreditation review every five years. The NAIC also
        periodically reviews its solvency standards as set forth in its model acts, and revises accreditation
        requirements to adapt to evolving industry standards.

        Own Risk and Solvency Assessment (ORSA)
        An ORSA is an “internal assessment, appropriate to the nature, scale, and complexity of an insurer or
        insurance group, conducted by that insurer or insurance group, of the material and relevant risks
        associated with the business plan of an insurer or insurance group and the sufficiency of capital



1
  Section 119.15, F.S.
2
  Section 119.15(3), F.S.
3
  Section 119.15(6)(b), F.S.
4
  Section 24(c), Art. I, FLA. CONST.
5
  Section 20.121(3)(a)1., F.S.
6
  About, NATIONAL ASSOCIATION OF INSURANCE COMMISSIONERS, https://content.naic.org/index_about.htm (last visited Feb. 2, 2021).
7
  Accreditation, NATIONAL ASSOCIATION OF INSURANCE COMMISSIONERS, https://content.naic.org/cipr_topics/topic_accreditation.htm
(last visited Feb. 2, 2021).
STORAGE NAME: h7049.COM                                                                                                PAGE: 2
DATE: 4/2/2021
         resources to support those risks.”8 The NAIC created the ORSA model act that would require each
         insurer to submit an ORSA report to the regulatory entity of the state. The NAIC made it an
         accreditation requirement that member states adopt the ORSA Model Act by 2018. In 2016, the
         Legislature passed CS/CS/SB 1422 (2016), which adopted major components of the ORSA model act.
         The bill required insurers to:
              Conduct an ORSA at least annually (and whenever there have been significant changes to the
                 risk profile of the insurer or the insurance group);
              Maintain a risk management framework for identifying, assessing, monitoring, managing, and
                 reporting on its material, relevant risks;
              File an ORSA summary report, based on the NAIC ORSA Guidance Manual, with OIR that
                 must:
                     o Be submitted once every calendar year;
                     o Include a brief description of material changes and updates from the prior year’s report;
                     o Be signed by the chief risk officer or chief executive officer responsible for overseeing
                         the enterprise risk management process; provide a copy to the board of directors or the
                         appropriate board committee; and
                     o Be prepared in accordance with NAIC’s ORSA guidance manual and the insurer must
                         maintain and make available for OIR examination documentation and supporting
                         information.

         Corporate Governance Annual Disclosure (CGAD)
         The NAIC also created the Corporate Governance Model Act to provide insurance regulators with
         sufficient information on insurer governance structures, practices, and processes through an annual
         disclosure, the CGAD.9 In 2016, the Legislature mandated that insurers submit CGADs to OIR by June
         1 of each year. The CGAD must describe the:
              Corporate governance framework and structure of the insurer or insurance group;
              Policies and practices of the most senior governing entity and significant committees;
              Policies and practices for directing senior management; and
              Processes by which the board, its committees, and senior management ensure an appropriate
                 amount of oversight to the critical risk areas that have an impact on the insurer’s business
                 activities.10

         The Chief Executive Officer or Corporate Secretary of the insurer or insurance group must sign the
         CGAD attesting that, to the best of his or her knowledge and belief, the insurer has implemented the
         corporate governance practices and provided a copy of the disclosure to the board of directors or the
         appropriate board committee.11




         Public Record Exemption under Review




8
  Section 628.8015(d), F.S.
9
  Section 628.8015(1)(a), F.S., defines CGAD to mean “a report filed by an insurer or insurance group in accordance with [section
628.8015, F.S.]”
10
   Section 628.8015(3)(b)4., F.S.
11
   Section 628.8015(3)(b)2., F.S.
STORAGE NAME: h7049.COM                                                                                                      PAGE: 3
DATE: 4/2/2021
         Section 624.4212, F.S., makes certain proprietary business information12 held by OIR confidential and
         exempt13 from s. 119.07(1), F. S., and Art. I, s. 24(a) of the State Constitution.14 This includes
         proprietary business information and supporting documents contained in documents, such as the
         actuarial opinion summary, principle-based valuation report, enterprise risk report, and insurance
         holding company registration.15

         In 2016, the Legislature created a public record exemption for the following information held by OIR:
              ORSA summary report, a substantially similar ORSA report, and supporting documents.
              CGAD and supporting documents.16

         The information is confidential and exempt from public record requirements. Information obtained by
         OIR that is otherwise available for public inspection is specifically excluded from the exemption.17

         The 2016 public necessity statement18 for the ORSA portion of the exemption provides:

                  The ORSA summary report, substantially similar ORSA report, and supporting
                  documents contain highly sensitive and strategic financial information about an
                  insurer or insurer group. … Divulging the ORSA [documents] will injure the insurer
                  or insurance group by providing competitors with detailed insight into their financial
                  position, risk management strategies, business plans, pricing and marketing
                  strategies, management systems and operation protocols.19

         The public necessity statement for the CGAD portion of the exemption provides:

                  The [CGAD] describes an insurer’s governance and the internal practices and
                  procedures used in conducting the business affairs of the company, making
                  strategic operational decisions affecting its competitive position, and managing its
                  financial condition. Release of the [CGAD] and supporting documents will injure



12
   The term “proprietary business information” means information, regardless of form or characteristics, which is owned or controlled
by an insurer, or a person or an affiliated person who seeks acquisition of controlling stock in a domestic stock insurer or controlling
company, and which:
        Is intended to be and is treated by the insurer or the person as private in that the disclosure of the information would cause
           harm to the insurer, the person, or the company’s business operations and that the information has not been disclosed unless
           disclosed pursuant to a statutory requirement, an order of a court or administrative body, or a private agreement that provides
           that the information will not be released to the public;
        Is not otherwise readily ascertainable or publicly available by proper means by other persons from another source in the
           same configuration as requested by the office; and
        Includes trade secrets; information relating to competitive interests, the disclosure of which would impair the competitive
           business of the provider of the information; the source, nature, and amount of the consideration used or to be used in
           carrying out a merger or other acquisition of control in the ordinary course of business, including the identity of the lender, if
           the person filing a statement regarding consideration so requests; information relating to bids or other contractual data, the
           disclosure of which would impair the efforts of the insurer or its affiliates to contract for goods or services on favorable
           terms; and internal auditing controls and reports of internal auditors. Section 624.4212(1), F.S.
13
   There is a difference between records the Legislature designates exempt from public record requirements and those the Legislature
deems confidential and exempt. A record classified as exempt from public disclosure may be disclosed under certain circumstances.
See WFTV, Inc. v. Sch. Bd. of Seminole, 874 So.2d 48, 53 (Fla. 5th DCA 2004), review denied 892 So.2d 1015 (Fla. 2004); City of
Riviera Beach v. Barfield, 642 So.2d 1135 (Fla. 4th DCA 1994); Williams v. City of Minneola, 575 So.2d 683, 687 (Fla. 5th DCA
1991). If the Legislature designates a record as confidential and exempt from public disclosure, such record may not be released, by
the custodian of public records, to anyone other than the persons or entities specifically designated in statute. See Attorney General
Opinion 85-62 (Aug. 1, 1985).
14
   Chapter 2014-100, Laws of Fla.
15
   Section 624.4212(2), F.S.
16
   Section 624.4212(3), F.S.
17
   Id.
18
   Article I, s. 24(c), FLA. CONST., requires each public record exemption “state with specificity the public necessity justifying the
exemption.”
19
   Chapter 2016-205, L.O.F.
STORAGE NAME: h7049.COM                                                                                                             PAGE: 4
DATE: 4/2/2021
                 the insurer or insurance group in the marketplace by providing competitors with
                 the insurer’s or the insurance group’s confidential business information.20

         Pursuant to the Open Government Sunset Review Act, the exemption will repeal on October 2, 2021,
         unless reenacted by the Legislature.21 Additionally, the 2016, law creating ORSA and CGAD
         submission requirements provided that those substantive provisions will also repeal if the exemption is
         allowed to repeal.22

         During the 2020 interim, subcommittee staff met with OIR staff to discuss the exemption. OIR staff
         stated that the agency had not had trouble implementing or interpreting the exemption. While OIR
         responded that the agency had received many broad public record requests which would include the
         ORSA and CGAD reports, they were unable to identify any requests asking for those documents
         specifically. OIR staff has indicated they were unaware of any litigation concerning the exemption. OIR
         emphasized the importance of the exemption, and the importance of the substantive ORSA and CGAD
         provisions linked to the exemption, in maintaining the confidentiality of insurers’ proprietary business
         information and in continuing to meet NAIC accreditation standards. OIR recommended that the
         exemption be reenacted as is.

         Effect of the Bill

         The bill removes the scheduled repeal date of the public record exemptions, thereby maintaining the
         public record exemption for certain proprietary business information, an ORSA summary report, a
         substantially similar ORSA report, and supporting documents, as well as for a CGAD and supporting
         documents.

         By removing the scheduled repeal date of the public record exemptions, the bill also saves from repeal
         the substantive ORSA and CGAD provisions linked to the exemptions.

     B. SECTION DIRECTORY:
        Section 1 amends s. 624.4212, F.S., to remove the scheduled repeal date of the public record
        exemption.

        Section 2 provides an effective date of October 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.




20
   Id.
21
   Section 624.4212(6), F.S.
22
   Chapter 2016-206, L.O.F.
STORAGE NAME: h7049.COM                                                                                    PAGE: 5
DATE: 4/2/2021
       2. Expenditures:
            None.

   C. DIRECT ECONOMIC IMPACT ON PRIVATE SECTOR:
       None.

   D. FISCAL COMMENTS:
       None.


                                               III. COMMENTS

   A. CONSTITUTIONAL ISSUES:

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

       2. Other:
           None.

   B. RULE-MAKING AUTHORITY:
       None.

   C. DRAFTING ISSUES OR OTHER COMMENTS:
       None.


                          IV. AMENDMENTS/ COMMITTEE SUBSTITUTE CHANGES
   None.




STORAGE NAME: h7049.COM                                                                          PAGE: 6
DATE: 4/2/2021
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 7049                                                                                               2021




    1                                         A bill to be entitled
    2                An act relating to a review under the Open Government
    3                Sunset Review Act; amending s. 624.4212, F.S., which
    4                provides an exemption from public records requirements
    5                for certain proprietary business information, certain
    6                solvency reports and disclosures, and information that
    7                is confidential and held by the Office of Insurance
    8                Regulation; removing the scheduled repeal of the
    9                exemption; providing an effective date.
10
11         Be It Enacted by the Legislature of the State of Florida:
12
13                   Section 1.       Subsection (6) of section 624.4212, Florida
14         Statutes, is amended to read:
15                   624.4212        Confidentiality of proprietary business and other
16         information.—
17                   (6)     This section is subject to the Open Government Sunset
18         Review Act in accordance with s. 119.15 and is repealed on
19         October 2, 2021, unless reviewed and saved from repeal through
20         reenactment by the Legislature.
21                   Section 2.       This act shall take effect October 1, 2021.




                                                         Page 1 of 1

        CODING: Words stricken are deletions; words underlined are additions.
                                                                                                                hb7049-00


File and source

File
2021-04-06_3098_commerce-committee_meeting-packets_fn-com-4-6-21.pdf
Size
3,918,219 bytes
SHA-256
e10e4799a078746104e9d6a4640defc1b13456d2ff165d6133b9744e52e763f4
Our copy
2021-04-06_3098_commerce-committee_meeting-packets_fn-com-4-6-21.pdf
Original
No public link identified.
Back to top