Committee/Subcommittee Amendment — Bill No. PCS for HB 305 (2021), Amendment No. 1

Summary

Amendment No. 1 to Bill No. PCS for HB 305 (2021), offered by Representative Rommel before the Insurance & Banking Subcommittee and published March 22, 2021. The amendment creates section 489.147, Florida Statutes, on prohibited property insurance practices, defining prohibited advertisements and soliciting and barring contractors from offering rebates, gifts or deductible waivers in exchange for roof inspections or insurance claims. It provides for discipline under s. 489.129, fines of up to $10,000 for each violation, and a right for a residential property owner to void a roofing contract lacking the required notice within 10 days. It also creates subsection (20) of section 626.854, prohibiting similar acts by public adjusters, and includes a title amendment.

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                                          COMMITTEE/SUBCOMMITTEE AMENDMENT
                                            Bill No. PCS for HB 305     (2021)
       Amendment No. 1




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       WITHDRAWN                       (Y/N)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


1      Committee/Subcommittee hearing bill:       Insurance & Banking
2      Subcommittee
3      Representative Rommel offered the following:
4
5           Amendment (with title amendment)
6           Between lines 69 and 70, insert:
7           Section 489.147, Florida Statutes, is created to read:
8           489.147 Prohibited property insurance practices.—
9           (1)    DEFINITIONS.—As used in this section, the term:
10          (a)    "Prohibited advertisement" means any written or
11     electronic communication that encourages, instructs, or induces,
12     a consumer to contact a contractor or public adjuster for the
13     purpose of making an insurance claim for roof damage. Prohibited
14     advertisements may include door hangers, business cards,
15     magnets, flyers, pamphlets, and emails.


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                                          COMMITTEE/SUBCOMMITTEE AMENDMENT
                                            Bill No. PCS for HB 305    (2021)
       Amendment No. 1


16          (b)    "Soliciting" means contacting, in person, by
17     telephone, by electronic means including email and real-time
18     communication face-to-face directed to a specific person, and by
19     delivery to, residential property owners.
20          (2) No contractor, as defined by s. 489.105, including but
21     not limited to, a general contractor, building contractor,
22     residential contractor, or roofing contractor, may directly or
23     indirectly engage in the following:
24          (a)    Soliciting a residential property owner by means of a
25     prohibited advertisement.
26          (b)    Offering to a residential property owner a rebate,
27     gift, gift card, cash, coupon, the waiver of any insurance
28     deductible, or any other thing of value in exchange for:
29          1.    Allowing the contractor to conduct an inspection of the
30     residential property owner's roof;
31          2.    Making an insurance claim for damage to the residential
32     property owner's roof.
33          (c)    Offering, delivering, receiving, or accepting any
34     compensation, inducement, or reward for the referral of any
35     services for which property insurance proceeds are payable.
36          (d) Interpreting policy provisions or advising an insured
37     regarding coverages or duties under the insured's property
38     insurance policy or adjusting a property insurance claim on
39     behalf of the insured, unless the contractor holds an


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                                          COMMITTEE/SUBCOMMITTEE AMENDMENT
                                          Bill No. PCS for HB 305     (2021)
       Amendment No. 1


40     unencumbered license as a public adjuster pursuant to part VI of
41     chapter 626.
42          (e)   Providing an insured with an agreement authorizing
43     repairs without providing a good faith estimate of the itemized
44     and detailed cost of services and materials for repairs
45     undertaken pursuant to a property insurance claim.   A contractor
46     does not commit a violation of this subsection if, as a result
47     of the process of the insurer adjusting a claim, the actual cost
48     of repairs differs from the initial estimate.
49          (3)   Any contractor who violates this section shall be
50     subject to disciplinary proceedings as set forth in s. 489.129.
51     A contractor may receive up to a $10,000 fine for each violation
52     of this section.
53          (4)   For the purposes of this section:
54          (a)   The actions of any person acting on behalf of a
55     contractor, including a compensated employee or a nonemployee
56     who is compensated for soliciting as defined in this section,
57     shall be considered the actions of the contractor.
58          (b)   Any person who engages in the actions prohibited by
59     this section, but is not a contractor as defined in s. 489.105,
60     is guilty of unlicensed contracting and shall be subject to the
61     penalties set forth in s. 489.13. Notwithstanding s. 489.13(3),
62     an unlicensed person who violates this section may be fined up
63     to $10,000 for each violation.


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                                           COMMITTEE/SUBCOMMITTEE AMENDMENT
                                            Bill No. PCS for HB 305     (2021)
       Amendment No. 1


64          (5)     A contractor is prohibited from executing a contract
65     related with a residential property owner to repair or replace a
66     roof without including notice that the contractor is prohibited
67     from engaging in the conduct set forth in paragraph (2)(b) of
68     this section. If the contractor fails to include such notice,
69     the residential property owner may void the contract within 10
70     days of executing it.
71          Between lines 188 and 189, insert:
72          Subsection (20) of section 626.854, Florida Statutes, is
73     created to read:
74          626.854 "Public adjuster" defined; prohibitions.—
75          The legislature finds that it is necessary for the practice
76     of the public to regulate public insurance adjusters and to
77     prevent the unauthorized practice of law.
78          (20)    The following acts by a public adjuster, a public
79     adjuster apprentice, or a person acting on behalf of a public
80     adjuster are prohibited and shall result in discipline as
81     applicable under chapter 626, part VI:
82          (a)    Offering to a residential property owner a rebate,
83     gift, gift card, cash, coupon, the waiver of any insurance
84     deductible, or any other thing of value in exchange for:
85          1.     Allowing a contractor, a public adjuster, a public
86     adjuster apprentice, or a person acting on behalf of a public
87     adjuster to conduct an inspection of the residential property
88     owner's roof;
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                                           COMMITTEE/SUBCOMMITTEE AMENDMENT
                                            Bill No. PCS for HB 305     (2021)
        Amendment No. 1


89           2.    Making an insurance claim for damage to the residential
90      property owner's roof.
91           (b)    Offering, delivering, receiving, or accepting any
92      compensation, inducement, or reward for the referral of any
93      services for which property insurance proceeds would be used for
94      roofing repairs or replacement.
95           (c)    Notwithstanding the fine set forth in s. 626.8698, any
96      public adjuster or public adjuster apprentice maybe to subject
97      to a fine not to exceed $10,000 per act for a violation of this
98      subsection.
99           (d)    Any person who engages in the actions prohibited by
100     this subsection and is not a public adjuster or a public
101     adjuster apprentice, or is not otherwise exempt from licensure,
102     is guilty of the unlicensed practice of public adjusting and
103     shall be:
104          1. Subject to all applicable penalties set forth in chapter
105     626, part VI.
106          2.    Notwithstanding subparagraph 1, subject to a fine not
107     to exceed $10,000 per act for a violation of this section.
108
109
110           -----------------------------------------------------
111                         T I T L E   A M E N D M E N T
112          Remove line 2 and insert:


      PCS for HB 305 a1
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                                           COMMITTEE/SUBCOMMITTEE AMENDMENT
                                           Bill No. PCS for HB 305   (2021)
        Amendment No. 1


113     An act relating to insurance; creating s. 489.147, F.S.;
114     providing definitions; prohibiting certain actions by
115     contractors; providing for disciplinary proceedings; providing
116     that the actions of any persons are the actions of a contractor;
117     providing that certain actions constitute unlicensed
118     contracting; prohibiting a contractor from executing a contract
119     with a residential property owner unless certain notice is
120     provided; providing that any contract executed in violation of
121     this section is voidable; amending s. 624.316,
122          Remove line 22 and insert:
123     Domestic insurer; prohibiting certain actions by a public
124     adjuster, public adjuster apprentice, and certain other persons;
125     providing that certain actions constitute unlicensed practice of
126     public adjusting; amending s. 627.351, F.S.; revising




      PCS for HB 305 a1
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