Meeting Packet - Commerce Committee, Florida House of Representatives (January 19, 2022)
Summary
Meeting packet of the Commerce Committee of the Florida House of Representatives for Wednesday, January 19, 2022, 9:30 AM, with Blaise Ingoglia as Chair. The agenda lists CS/HB 123 Consumer Finance Loans, CS/HB 223 Mobile Home Registration Periods, HB 267 Swimming Pool Specialty Contracting Services, HB 269, CS/HB 273 Money Services Businesses, HB 381 Breach of Bond Costs, HB 789 Lifeline Services and HB 6031 Individual Wine Containers. The staff analysis of CS/HB 123 describes loans up to $25,000 under the Florida Consumer Finance Act, with a maximum annual interest rate of 30 percent on the first $3,000. It states that the bill authorizes lenders to provide a surety bond, certificate of deposit, or letter of credit in lieu of maintaining liquid assets of at least $25,000 per location.
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Commerce Committee
Wednesday, January 19, 2022
9:30 AM - 11:00 AM
Webster Hall (212 Knott)
Meeting Packet
Chris Sprowls Blaise Ingoglia
Speaker Chair
The Florida House of Representatives
Commerce Committee
Chris Sprowls Blaise Ingoglia
Speaker Chair
Meeting Agenda
Wednesday, January 19, 2022
9:30 AM – 11:00 AM
Webster Hall (212 Knott)
I. Call to Order
II. Roll Call
III. Welcome and Opening Remarks
IV. Consideration of the following bill(s):
CS/HB 123 Consumer Finance Loans by Insurance & Banking Subcommittee, Stevenson
CS/HB 223 Mobile Home Registration Periods by Tourism, Infrastructure & Energy
Subcommittee, Maney
HB 267 Swimming Pool Specialty Contracting Services by McClure
HB 269 Natural Gas and Public Utility Petitions for Rate Relief by Byrd
CS/HB 273 Money Services Businesses by Insurance & Banking Subcommittee, Aloupis
HB 381 Breach of Bond Costs by Maney
HB 789 Lifeline Services by Payne
HB 6031 Individual Wine Containers by LaMarca
V. Closing Remarks
VI. Adjournment
303 House Office Building, 402 South Monroe Street, Tallahassee, FL 32399-1300
(850) 717-4870
CS/HB 123
HOUSE OF REPRESENTATIVES STAFF ANALYSIS
BILL #: CS/HB 123 Consumer Finance Loans
SPONSOR(S): Insurance & Banking Subcommittee, Stevenson
TIED BILLS: IDEN./SIM. BILLS: SB 546
REFERENCE ACTION ANALYST STAFF DIRECTOR or
BUDGET/POLICY CHIEF
1) Insurance & Banking Subcommittee 14 Y, 0 N, As CS Hinshelwood Luczynski
2) Commerce Committee Hinshelwood Hamon
SUMMARY ANALYSIS
The Florida Consumer Finance Act, ch. 516, F.S., permits licensed lenders to make secured or unsecured
loans up to $25,000 with a tiered interest rate structure such that the maximum annual interest rate allowed on
each tier decreases as principle amounts increase:
30 percent on the first $3,000.
24 percent on principal above $3,000 and up to $4,000.
18 percent on principal above $4,000 and up to $25,000.
Consumer finance lenders must maintain liquid assets of at least $25,000 per location. The bill authorizes
consumer finance lenders to provide a surety bond, certificate of deposit, or letter of credit of a specified amount
in lieu of maintaining liquid assets.
Consumer finance lenders are permitted to charge a borrower certain fees, including up to $25 for investigating
the credit and character of the borrower. The exclusion of “prepayment penalties” from the list of permissible
fees implies that consumer finance lenders are prohibited from charging prepayment penalties. The bill provides
an express prohibition on prepayment penalties for consumer finance loans.
The bill has no fiscal impact on state or local governments and an indeterminate but likely positive impact on the
private sector.
The bill provides an effective date of October 1, 2022.
This docum ent does not reflect the intent or official position of the bill sponsor or House of Representatives .
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FULL ANALYSIS
I. SUBSTANTIVE ANALYSIS
A. EFFECT OF PROPOSED CHANGES:
Consumer Finance Loans
The Office of Financial Regulation’s (OFR’s) Division of Consumer Finance is responsible for the
licensing and regulation of non-depository financial service entities and individuals, and conducts
examinations and complaint investigations for licensed entities to determine compliance with Florida
law.
One of the loan products regulated by the OFR’s Division of Consumer Finance is the Florida
Consumer Finance Act, ch. 516, F.S. (“the Act”). Loans permitted under the Act are commonly referred
to as “consumer finance loans”, which are “loan[s] of money, credit, goods, or choses in action,1
including, except as otherwise specifically indicated, provision of a line of credit, in an amount or to a
value of $25,000 or less for which the lender charges, contracts for, collects, or receives interest at a
rate greater than 18 percent per annum.”2 Although consumer finance loans may be secured or
unsecured, the Act prohibits lenders from taking a security interest in certain types of collateral. 3
Consumer finance loans made pursuant to the Act must be repaid in periodic installments as nearly
equal as mathematically practicable, except that the final payment may be less than the amount of the
prior installments.4 Installments may be due every two weeks, semimonthly, or monthly.5 There is no
minimum or maximum loan term under the Act. Consumer finance loans have a tiered interest rate
structure such that the maximum annual interest rate allowed on each tier decreases as principle
amounts increase:
30 percent on the first $3,000.
24 percent on principal above $3,000 and up to $4,000.
18 percent on principal above $4,000 and up to $25,000.6
The original principal amount is the amount financed, as defined by the federal Truth in Lending Act
(TILA)7 and TILA’s federal implementing regulations.8 For the purpose of determining compliance with
these statutory maximum interest rates, the interest rate computations used must be simple interest. 9 In
the event that two or more interest rates are applied to the principal amount of a loan, 10 a lender may
charge interest at a single annual percentage rate (APR) which would produce at maturity the total
amount of interest as permitted by the tiered interest rate structure above. 11 The APR charged by a
lender may not exceed the APR that must be computed and disclosed according to TILA and its
1 “Chose in action” is defined as “1. A property right in personam, such as a debt owed by another person . . . 2. The right
to bring an action to recover a debt, money, or thing. 3. Personal property that one person owns but another person
possesses, the owner being able to regain possession through a lawsuit.” BLACK’S LAW DICTIONARY 101 (3d ed. 1996).
2 S. 516.01(2), F.S.
3 See s. 516.031(1), F.S. (prohibition on taking a security interest in land for a loan less than $1,000); s. 516.17, F.S.
(prohibition on assignment of, or order for payment of, wages given to secure a loan).
4 S. 516.36, F.S. This section does not apply to lines of credit.
5 Id.
6 S. 516.031(1), F.S.
7 Codified at 15 U.S.C. § 1601 et seq.
8 Currently, the statute references TILA’s implementing regulations as “Regulation Z of the Board of Governors of the
Federal Reserve System.” s. 516.031(1), F.S. However, the Dodd-Frank Wall Street Reform and Consumer Protection
Act, Pub. L. No. 111-203, H.R. 4173, 124 Stat. 1376-2223, 111th Cong. (July 21, 2010), commonly referred to as the
“Dodd-Frank Act”, transferred rulemaking authority for TILA to the Bureau of Consumer Financial Protection, effective July
21, 2011. See also Truth in Lending (Regulation Z), 76 Fed. Reg. 79768 (Dec. 22, 2011).
9 Id.
10 For example, on a principle amount of $3,500, an interest rate of 30 percent per annum may be applied to $3,000 of the
principle amount, and an interest rate of 24 percent per annum may be applied to the remaining $500 of the principal
amount.
11 S. 516.031(1), F.S.
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implementing regulations.12 A licensee may not induce or permit a borrower to divide a loan and may
not induce or permit a person to become obligated to the licensee under more than one loan contract
for the purpose of obtaining a greater finance charge than would otherwise be permitted under the
parameters described above.13
If consideration for a new loan contract includes the unpaid principal balance of a prior loan with the
licensee, then the principal amount of the new loan contract may not include more than 60 days’ unpaid
interest accrued on the prior loan.14
The Act prohibits lenders from directly or indirectly charging borrowers additional fees as a condition to
the grant of a loan, except for the following allowable fees:
Up to $25 for investigating the credit and character of the borrower;
A $25 annual fee on the anniversary date of each line-of-credit account;
Brokerage fees for certain loans, title insurance, and appraisals of real property offered as
security;
Intangible personal property tax on the loan note or obligation if secured by a lien on real
property;
Documentary excise tax and lawful fees for filing, recording, or releasing an instrument securing
the loan;
The premium for any insurance in lieu of perfecting a security interest otherwise required by the
licensee in connection with the loan;
Actual and reasonable attorney fees and court costs;
Actual and commercially reasonable expenses for repossession, storing, repairing and placing
in condition for sale, and selling of any property pledged as security;
Depending on the frequency of payments, a delinquency charge of up to $15 for each payment
in default for at least 10 days, if agreed upon in writing before the charge is imposed; and
A bad check charge of up to $20.15
The exclusion of “prepayment penalties” from the list of permissible fees implies that consumer finance
lenders are prohibited from charging prepayment penalties.16
Optional credit property, credit life, and disability insurance may be provided at the borrower’s expense
via a deduction from the principal amount of the loan.17
Licenses granted under the Act are for a single place of business 18 and must be renewed every two
years.19 As of October 28, 2021, there are 188 licensed consumer finance loan companies operating
across a total of 389 locations in Florida.20
The historical yearly licensing data for ch. 516, F.S., is contained in the charts below.
Chapter 516, F.S., Licenses by Year
00-01 01-02 02-03 03-04 04-05 05-06 06-07 07-08 08-09 09-10
Applications Received 318 44 136 82 48 72 192 30 52 32
Applications Approved 228 136 125 76 43 64 95 29 18 19
Active Licenses 589 607 568 609 532 584 626 600 390 386
12 S. 516.031(2), F.S.
13 S. 516.031(4), F.S.
14 S. 516.031(5), F.S.
15 S. 516.031(3), F.S.
16 Id.; Office of Financial Regulation, Agency Analysis of 2022 Senate Bill 546, pp. 2-3 (Nov. 19, 2021).
17 S. 516.35(2), F.S.
18 Ss. 516.01(1) and 516.05(3), F.S.
19 Ss. 516.03(1) and 516.05(1) & (2), F.S.
20 Office of Financial Regulation, supra note 16 at p. 2.
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Renewals & Reactivations 496 1 542 0 523 1 569 0 388 0
Chapter 516, F.S., Licenses by Year (Cont'd)
10-11 11-12 12-13 13-14 14-15 15-16 16-17 17-18 18-19 19-20
Applications Received 175 41 82 116 66 102 55 96 109 100
Applications Approved 137 37 53 113 37 81 36 83 104 98
Active Licenses 347 303 293 349 331 349 338 373 348 390
Renewals & Reactivations 226 0 258 0 312 0 326 0 342 0
An application to become a consumer finance lender must be accompanied by a nonrefundable
application fee of $625 and a nonrefundable investigation fee of $200. 21 Licenses must be renewed
biennially, at which time the licensee must pay a nonrefundable biennial license fee of $625. 22 At the
time of application, the applicant must provide evidence of liquid assets of at least $25,000, and a
licensee must at all times maintain such liquid assets.23 Each location of a consumer finance lender
must be separately licensed.24
The Act does not apply to persons doing business under state or federal laws governing banks, savings
banks, trust companies, building and loan associations, credit unions, or industrial loan and investment
companies.25
Deferred Presentment Transactions (Payday Loans)
Although the bill relates only to consumer finance loans under ch. 516, F.S., questions often arise as to
how consumer finance loans compare to other consumer loans authorized in statute, particularly
payday loans. Deferred presentment transactions, commonly referred to as “payday loans”, are a small-
dollar loan product under the OFR’s regulatory authority. These transactions are governed by ch. 560,
part IV, F.S.
A deferred presentment transaction means providing currency or a payment instrument in exchange for
a drawer’s (borrower’s) check and agreeing to hold the check for a number of days until depositing,
presenting, or redeeming the payment instrument.26 The only persons who may engage in deferred
presentment transactions are financial institutions as defined in s. 655.005, F.S., 27 and money services
business licensed under ch. 560, part II28 or part III,29 F.S.
There are two types of payday loan products permitted in Florida:
21 S. 516.03(1), F.S.
22 Id.; s. 516.05(1),F.S.
23 Ss. 516.03(1) and 516.07(1)(b), F.S.
24 S. 516.05(3), F.S.
25 S. 516.02(4), F.S.
26 S. 560.402(2) & (3), F.S.
27 Section 655.005, F.S., defines a “financial institution” to mean a state or federal savings or thrift association, bank,
savings back, trust company, international bank agency, international banking corporation, international branch,
international representative office, international administrative office, international trust entity, international trust com pany
representative office, qualified limited service affiliate, credit union, or an agreement corporat ion operating pursuant to s.
25 of the Federal Reserve Act, 12 U.S.C. ss. 601 et seq. or Edge Act corporation organized pursuant to s. 25(a) of the
Federal Reserve Act, 12 U.S.C. ss. 611 et seq.
28 Licensure as a money transmitter. A money transmitter is defined by s. 560.103(23), F.S., as a corporation, limited
liability company, limited liability partnership, or foreign entity qualified to do business in this state which receives
currency, monetary value, or payment instruments for the purpose of transmitt ing the same by any means, including
transmission by wire, facsimile, electronic transfer, courier, the Internet, or through bill payment services or other
businesses that facilitate such transfer within this country, or to or from this country. Money transmitters may engage in
check cashing under ch. 560, part III, F.S.
29 Licensure as a check casher. A check casher is defined by s. 560.103(6), F.S., as a person who sells currency in
exchange for payment instruments received, except travelers checks.
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Deferred presentment transaction not repayable in installments: The face amount of a check
taken for deferred presentment may not exceed $500, exclusive of fees. 30 Fees may not exceed
10 percent of the payment provided to the drawer plus a verification fee of up to $5.31 The term
of a deferred presentment agreement may not be less than seven days or greater than 31
days.32
Deferred presentment installment transaction: A deferred presentment installment transaction is
repayable in installments, has a term of 60 to 90 days, and may have an outstanding transaction
balance (exclusive of fees) of up to $1,000.33 The permissible fees are a verification fee of up to
$5 and up to 8 percent of the outstanding transaction balance on a biweekly basis.34 The
installment periods must be 13 days to one calendar month, except that the first installment
period may be longer than the remaining installment periods by not more than 15 days. 35
Prepayment penalties are prohibited.36
A deferred presentment provider may not enter into a deferred presentment transaction with a drawer
who has an outstanding deferred presentment transaction with any provider or within 24 hours of the
termination of a previous transaction.37 In order to enforce this restriction, the OFR maintains a
database against which a deferred presentment provider must verify each transaction before entering
into the deferred presentment agreement.38 A deferred presentment provider may not engage in the
rollover of a deferred presentment agreement and may not redeem, extend, or otherwise consolidate a
deferred presentment agreement with the proceeds of another deferred presentment transaction made
by it or an affiliate.39
For deferred presentment transactions not repayable in installments, if the drawer, by the end of the
deferment period, informs the deferred presentment provider in person that the drawer cannot redeem
or pay in full in cash the amount due, the drawer must be given a grace period that extends the term of
the agreement for 60 additional days.40 As a condition of receiving the grace period, the drawer must
make an appointment with a consumer credit counseling agency within seven days after the end of the
deferment period and complete counseling by the end of the grace period.41
If the drawer in a deferred presentment installment transaction informs the deferred presentment
provider in writing or in person by noon of the business day before a scheduled payment that the
drawer cannot pay in full the scheduled payment, the provider must give the drawer one opportunity to
defer a scheduled payment for no additional fee or charge. 42 The deferred payment is due after the last
scheduled installment payment, at an interval which is no shorter than the intervals between the
originally scheduled payments.43 Thus, for a deferred presentment installment transaction in which
payments are due once every two weeks, the deferred payment would be due at least two weeks after
the final installment payment is due.
A deferred presentment provider may not include in the agreement a hold harmless clause, a
confession of judgment clause, an assignment of or order for payment of wages or other compensation
for services, or a provision in which the drawer waives any claim or defense arising out of the
agreement or any provision of ch. 560, part IV, F.S.44 A deferred presentment provider must comply
30 S. 560.404(5), F.S.
31 S. 560.404(6), F.S.
32 S. 560.404(8), F.S.
33 S. 560.404(5) & (8), F.S.
34 S. 560.404(6), F.S.
35 S. 560.404(26), F.S.
36 S. 560.404(6)(c), F.S.
37 S. 560.404(19), F.S.
38 S. 560.404(19)(a) & (23), F.S.
39 S. 560.404(18), F.S.
40 S. 560.404(22), F.S.
41 Id.
42 S. 560.404, F.S.
43 Id.
44 S. 560.404(10), F.S.
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with state and federal disclosure requirements.45
Effect of the Bill
The bill amends various provisions related to consumer finance loans under ch. 516, F.S.
Surety Bond, Certificate of Deposit, or Letter of Credit in Lieu of Liquid Assets
The bill authorizes consumer finance lenders to provide the OFR a surety bond, certificate of deposit, or
irrevocable letter of credit in lieu of maintaining liquid assets. The surety bond must be issued by a
bonding company or insurance company authorized to do business in this state. The certificate of
deposit must be deposited in a financial institution.46 The letter of credit must be issued by a financial
institution.47
The surety bond, certificate of deposit, or letter of credit must be in the amount of at least $25,000.
However, a company with multiple licensed locations is authorized to provide a rider or surety bond,
certificate of deposit, or letter of credit in the amount of at least $5,000 for each additional license after
the first. The aggregate amount of the surety bond, certificate of deposit, or letter of credit required for a
company with multiple licenses is capped at $100,000.
The surety bond, certificate of deposit, or letter of credit must name the OFR as beneficiary and must
be for the use and benefit of any borrower who is injured by acts of a licensee involving fraud,
misrepresentation, or deceit, including willful imposition of illegal or excessive charges; or
misrepresentation, circumvention, or concealment of any matter required to be stated or furnished to a
borrower, where such acts are in connection with making a consumer finance loan. The OFR, or any
claimant, may bring an action in a court of competent jurisdiction on the surety bond, certificate of
deposit, or letter of credit. The surety bond, certificate of deposit, or letter of credit must be payable on
a pro rata basis, but the aggregate amount may not exceed the amount of the surety bond, certificate of
deposit, or letter of credit.
The surety bond, certificate of deposit, or letter of credit may not be canceled by the licensee, bonding
or insurance company, or financial institution except upon notice to the OFR by certified mail. A
cancellation may not take effect until 30 calendar days after receipt by the OFR of the written notice.
If the bonding or insurance company or financial institution pays a claim, it must give written notice by
certified mail to the OFR within 10 calendar days after it pays the claim. The notice must contain details
sufficient to identify the claimant and the claim or judgment paid. If the principal sum of the surety bond,
certificate of deposit, or letter of credit is reduced by one or more recoveries or payments, the
consumer finance lender must furnish to the OFR a new or additional surety bond, certificate of deposit,
or letter of credit so that the total or aggregate principal sum equals the required amount. Alternatively,
a licensee may furnish an endorsement executed by the bonding or insurance company or financial
institution reinstating the required principal amount.
The required surety bond, certificate of deposit, or letter of credit must remain in place for two years
after the consumer finance lender ceases licensed operations in this state. During the two-year period,
the OFR may allow for a reduction or elimination of the surety bond, certificate of deposit, or letter of
credit to the extent the consumer finance lender’s outstanding consumer finance loans in this state are
reduced.
Failure to maintain the existing liquid asset requirement or the proposed alternatives of the surety bond,
certificate of deposit, or letter of credit in the required amount is grounds for denial of license application
and grounds for disciplinary action against a consumer finance lender.
45 S. 560.404(13) & (20), F.S.
46 As defined in s. 655.005(1)(i), F.S.
47 As defined in s. 655.005(1)(i), F.S.
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The bill makes conforming changes under the Financial Technology Sandbox in s. 559.952, F.S.
Express Prohibition on Prepayment Penalties
The bill provides an express prohibition on prepayment penalties for consumer finance loans.
Effective Date
The bill provides an effective date of October 1, 2022.
Comparison Chart
Below is a chart comparing existing law regarding payday loans and consumer finance loans with the
changes proposed by the bill.
Payday Loans Consumer Finance Loans
(Ch. 560, Part IV, F.S.) (Ch. 516, F.S.)
Payday Loans Payday Loans HB 123
Current Law
(Non-Installment) (Installment) Proposed Changes
Loan
$500 (max) $1,000 (max) $25,000 (max) (No change)
Amount
Length of
7 - 31 days 60 - 90 days No min. or max. (No change)
Term
Lump sum at end Installments with Installments due
of loan term 13 days to 1 month monthly, semi-
in between each, monthly, or every 2
except that the first weeks
installment period
Payments (No change)
may be longer than
the remaining
installment periods
by a maximum of 15
days
APR equivalent 8% biweekly on 30% per year on
(assuming $500 loan the outstanding the first $3,000 of
amount and $5 transaction balance principal
verification fee): APR equivalent: 24% per year on
129.52% for a 31 day approx. 208% (will be principal above
Interest Rate loan, 573.57% for a 7 slightly higher as a $3,000 and up to (No change)
day loan result of the $5 $4,000
verification fee) 18% per year on
principal above
$4,000 and up to
$25,000
10% of loan $5 verification fee Fees specified in s. Adds express
amount No additional fees 516.031(3), F.S., prohibition on
$5 verification fee permitted including up to $25 prepayment
Other
No additional fees for investigating the penalties
Upfront Fees credit and character
permitted
Permitted of the borrower
No additional fees
permitted
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B. SECTION DIRECTORY:
Section 1. Amends s. 516.03, F.S., relating to application for license; fees; etc.
Section 2. Amends s. 516.031, F.S., relating to finance charge; maximum rates.
Section 3. Amends s. 516.05, F.S., relating to license.
Section 4. Amends s. 516.07, F.S., relating to grounds for denial of license or for disciplinary action.
Section 5. Amends s. 559.952, F.S., relating to Financial Technology Sandbox.
Section 6. Provides an effective date of October 1, 2022.
II. FISCAL ANALYSIS & ECONOMIC IMPACT STATEMENT
A. FISCAL IMPACT ON STATE GOVERNMENT:
1. Revenues:
None.
2. Expenditures:
None. The bill will require minimal changes to the OFR’s Regulatory Enforcement and Licensing
(REAL) system, but the cost of such changes can be implemented as part of the OFR’s existing
budget resources.48
B. FISCAL IMPACT ON LOCAL GOVERNMENTS:
1. Revenues:
None.
2. Expenditures:
None.
C. DIRECT ECONOMIC IMPACT ON PRIVATE SECTOR:
The bill’s provisions that would allow a consumer finance lender to provide a surety bond, certificate of
deposit, or letter of credit in lieu of liquid assets may have a positive impact on consumer finance
lenders and consumers. Shifting from maintaining liquid assets will free up capital for lending activity. In
the event that consumer harm coincides with a consumer finance lender’s bankruptcy, the surety bond,
certificate of deposit, or letter of credit may provide consumers greater means of compensation as
compared to the liquid assets. The bill’s overall impact on the private sector, while likely positive, is
indeterminate.
D. FISCAL COMMENTS:
None.
III. COMMENTS
A. CONSTITUTIONAL ISSUES:
1. Applicability of Municipality/County Mandates Provision:
Not applicable. The bill does not appear to affect county or municipal governments.
48 Office of Financial Regulation, supra note 16 at p. 5.
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2. Other:
None.
B. RULE-MAKING AUTHORITY:
The bill expressly grants the Financial Services Commission49 authority to prescribe by rule forms and
procedures to implement the provisions relating to a consumer finance lender providing a surety bond,
certificate of deposit, or letter of credit in lieu of liquid assets.
C. DRAFTING ISSUES OR OTHER COMMENTS:
None.
IV. AMENDMENTS/ COMMITTEE SUBSTITUTE CHANGES
On December 1, 2021, the Insurance & Banking Subcommittee considered one amendment, which was
adopted, and reported the bill favorably as a committee substitute. The bill authorizes a consumer finance
lender to provide a letter of credit in lieu of the current statutory requirement to maintain liquid assets. The
committee substitute clarifies that such letter of credit must be issued by a financial institution.
The staff analysis has been updated to reflect the committee substitute.
49 The Financial ServicesCommission (commission) is composed of the Governor, Attorney General, Chief Financial
Officer, and Commissioner of Agriculture. S. 20.121(3), F.S. The commission members are the OFR’s agency head for
the purpose of rulemaking. S. 20.121(3)(c), F.S.
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F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
CS/HB 123 2022
1 A bill to be entitled
2 An act relating to consumer finance loans; amending s.
3 516.03, F.S.; authorizing an applicant for a license
4 to make and collect loans under the Florida Consumer
5 Finance Act to provide a surety bond, certificate of
6 deposit, or letter of credit in lieu of liquid assets;
7 amending s. 516.031, F.S.; prohibiting a person
8 licensed to make and collect consumer finance loans
9 from charging prepayment penalties for loans; amending
10 s. 516.05, F.S.; authorizing an applicant for a
11 license to make and collect consumer finance loans or
12 a licensee to provide a surety bond, certificate of
13 deposit, or letter of credit in lieu of liquid assets;
14 providing requirements for such bonds, certificates of
15 deposit, and letters of credit; providing rulemaking
16 authority; amending s. 516.07, F.S.; revising grounds
17 for denial of license or disciplinary action; amending
18 s. 559.952, F.S.; revising exceptions for a licensee
19 during the Financial Technology Sandbox period;
20 providing an effective date.
21
22 Be It Enacted by the Legislature of the State of Florida:
23
24 Section 1. Subsection (1) of section 516.03, Florida
25 Statutes, is amended to read:
Page 1 of 9
CODING: Words stricken are deletions; words underlined are additions.
hb0123-01-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 123 2022
26 516.03 Application for license; fees; assets, bonds,
27 certificates of deposit, or letters of credit; etc.—
28 (1) APPLICATION.—Application for a license to make loans
29 under this chapter shall be in the form prescribed by rule of
30 the commission. The commission may require each applicant to
31 provide any information reasonably necessary to determine the
32 applicant's eligibility for licensure. The applicant shall also
33 provide information that the office requires concerning any
34 officer, director, control person, member, partner, or joint
35 venturer of the applicant or any person having the same or
36 substantially similar status or performing substantially similar
37 functions or concerning any individual who is the ultimate
38 equitable owner of a 10-percent or greater interest in the
39 applicant. The office may require information concerning any
40 such applicant or person, including, but not limited to, his or
41 her full name and any other names by which he or she may have
42 been known, age, social security number, residential history,
43 qualifications, educational and business history, and
44 disciplinary and criminal history. The applicant must provide
45 evidence of liquid assets of at least $25,000 or documents
46 satisfying the requirements in s. 516.05(10). At the time of
47 making such application the applicant shall pay to the office a
48 nonrefundable biennial license fee of $625. Applications, except
49 for applications to renew or reactivate a license, must also be
50 accompanied by a nonrefundable investigation fee of $200. An
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51 application is considered received for purposes of s. 120.60
52 upon receipt of a completed application form as prescribed by
53 commission rule, a nonrefundable application fee of $625, and
54 any other fee prescribed by law. The commission may adopt rules
55 requiring electronic submission of any form, document, or fee
56 required by this act if such rules reasonably accommodate
57 technological or financial hardship. The commission may
58 prescribe by rule requirements and procedures for obtaining an
59 exemption due to a technological or financial hardship.
60 Section 2. Subsection (6) is added to section 516.031,
61 Florida Statutes, to read:
62 516.031 Finance charge; maximum rates.—
63 (6) PREPAYMENT PENALTIES PROHIBITED.—A licensee may not
64 require a borrower to pay a prepayment penalty for paying all or
65 part of the loan principal before the date on which the payment
66 is due.
67 Section 3. Subsection (10) is added to section 516.05,
68 Florida Statutes, to read:
69 516.05 License.—
70 (10)(a) In lieu of the $25,000 liquid asset requirement in
71 s. 516.03(1):
72 1. An applicant or a licensee may provide to the office a
73 surety bond in the amount of at least $25,000, issued by a
74 bonding company or insurance company authorized to do business
75 in this state.
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76 2. A company with at least one currently licensed location
77 must provide to the office a rider or surety bond, in the amount
78 of at least $5,000 for each additional license, issued by a
79 bonding company or insurance company authorized to do business
80 in this state. However, in no event may the aggregate amount of
81 the surety bond required for a company with multipl e licenses
82 exceed $100,000.
83 (b) In lieu of a surety bond, the applicant or the
84 licensee may provide evidence of a certificate of deposit or an
85 irrevocable letter of credit in the same amount of the surety
86 bond required under paragraph (a). The certificate of deposit
87 must be deposited in a financial institution, as defined in s.
88 655.005(1)(i). The letter of credit must be issued by a
89 financial institution, as defined in s. 655.005(1)(i).
90 (c) The original surety bond, certificate of deposit, or
91 letter of credit must be filed with the office, and the office
92 must be named as beneficiary. The surety bond, certificate of
93 deposit, or letter of credit must be for the use and benefit of
94 any borrower who is injured by acts of a licensee involving
95 fraud, misrepresentation, or deceit, including willful
96 imposition of illegal or excessive charges; or
97 misrepresentation, circumvention, or concealment of any matter
98 required to be stated or furnished to a borrower, where such
99 acts are in connection with a loan made under this chapter. The
100 office, or any claimant, may bring an action in a court of
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101 competent jurisdiction on the surety bond, certificate of
102 deposit, or letter of credit. The surety bond, certificate of
103 deposit, or letter of credit must be payable on a pro rata
104 basis, but the aggregate amount may not exceed the amount of the
105 surety bond, certificate of deposit, or letter of credit.
106 (d) The surety bond, certificate of deposit, or letter of
107 credit may not be canceled by the licensee, bonding or insurance
108 company, or financial institution except upon notice to the
109 office by certified mail. A cancellation may not take effect
110 until 30 calendar days after receipt by the office of the
111 notice.
112 (e) The bonding or insurance company or financial
113 institution must, within 10 calendar days after it pays a claim,
114 give notice to the office by certified mail of such payment with
115 details sufficient to identify the claimant and the claim or
116 judgment paid.
117 (f) If the principal sum of the surety bond, certificate
118 of deposit, or letter of credit is reduced by one or more
119 recoveries or payments, the licensee must furnish to the office
120 a new or additional surety bond, certificate of deposit, or
121 letter of credit so that the total or aggregate principal sum
122 equals the amount required under this subsection. Alternatively,
123 a licensee may furnish an endorsement executed by the bonding or
124 insurance company or financial institution reinstating the
125 required principal amount.
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126 (g) The required surety bond, certificate of deposit, or
127 letter of credit must remain in place for 2 years after the
128 licensee ceases licensed operations in this state. During the 2 -
129 year period, the office may allow for a reduction or elimination
130 of the surety bond, certificate of deposit, or letter of credit
131 to the extent the licensee's outstanding consumer finance loans
132 in the state are reduced.
133 (h) The commission may prescribe by rule forms and
134 procedures to implement this subsection.
135 Section 4. Paragraph (b) of subsection (1) of section
136 516.07, Florida Statutes, is amended to read:
137 516.07 Grounds for denial of license or for disciplinary
138 action.—
139 (1) The following acts are violations of this chapter and
140 constitute grounds for denial of an application for a license to
141 make consumer finance loans and grounds for any of the
142 disciplinary actions specified in subsection (2):
143 (b) Failure to maintain liquid assets of at least $25,000
144 or a surety bond, certificate of deposit, or letter of credit in
145 the amount required by s. 516.05(10) at all times for the
146 operation of business at a licensed location or proposed
147 location.
148 Section 5. Paragraph (a) of subsection (4) of section
149 559.952, Florida Statutes, is amended to read:
150 559.952 Financial Technology Sandbox.—
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151 (4) EXCEPTIONS TO GENERAL LAW AND WAIVERS OF RULE
152 REQUIREMENTS.—
153 (a) Notwithstanding any other law, upon approval of a
154 Financial Technology Sandbox application, the following
155 provisions and corresponding rule requirements are not
156 applicable to the licensee during the sandbox period:
157 1. Section 516.03(1), except for the application fee, the
158 investigation fee, the requirement to provide the social
159 security numbers of control persons, evidence of liquid assets
160 of at least $25,000 or documents satisfying the requirements in
161 s. 516.05(10), and the office's authority to investigate the
162 applicant's background. The office may prorate the license
163 renewal fee for an extension granted under subsection (7).
164 2. Section 516.05(1) and (2), except that the office shall
165 investigate the applicant's background.
166 3. Section 560.109, only to the extent that the section
167 requires the office to examine a licensee at least once every 5
168 years.
169 4. Section 560.118(2).
170 5. Section 560.125(1), only to the extent that the
171 subsection would prohibit a licensee from engaging in the
172 business of a money transmitter or payment instrument seller
173 during the sandbox period.
174 6. Section 560.125(2), only to the extent that the
175 subsection would prohibit a licensee from appointing an
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176 authorized vendor during the sandbox period. Any authorized
177 vendor of such a licensee during the sandbox period remains
178 liable to the holder or remitter.
179 7. Section 560.128.
180 8. Section 560.141, except for s. 560.141(1)(a)1., 3., 7. -
181 10. and (b), (c), and (d).
182 9. Section 560.142(1) and (2), except that the office may
183 prorate, but may not entirely eliminate, the license renewal
184 fees in s. 560.143 for an extension granted under subsection
185 (7).
186 10. Section 560.143(2), only to the extent necessary for
187 proration of the renewal fee under subparagraph 9.
188 11. Section 560.204(1), only to the extent that the
189 subsection would prohibit a licensee from engaging in, or
190 advertising that it engages in, the selling or issuing of
191 payment instruments or in the activity of a money transmitter
192 during the sandbox period.
193 12. Section 560.205(2).
194 13. Section 560.208(2).
195 14. Section 560.209, only to the extent that the office
196 may modify, but may not entirely eliminate, the net worth,
197 corporate surety bond, and collateral deposit amounts required
198 under that section. The modified amounts must be in such lower
199 amounts that the office determines to be commensurate with the
200 factors under paragraph (5)(c) and the maximum number of
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201 consumers authorized to receive the financial product or service
202 under this section.
203 Section 6. This act shall take effect October 1, 2022.
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CS/HB 223
HOUSE OF REPRESENTATIVES STAFF ANALYSIS
BILL #: CS/HB 223 Mobile Home Registration Periods
SPONSOR(S): Tourism, Infrastructure & Energy Subcommittee, Maney
TIED BILLS: IDEN./SIM. BILLS: CS/SB 754
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
Under Florida law, a mobile home is taxed as real property if the owner of the mobile home also owns the land
on which the mobile home is permanently affixed. Mobile homes not taxed as real property must be registered
with the Department of Highway Safety and Motor Vehicles (DHSMV) and pay a license tax. Based on the
length of the mobile home, license taxes range from $20 to 80 per year.
The registration period for a mobile home is from January 1 through December 31, and the renewal period
begins 31 days prior to expiration. For most motor vehicles owned by natural persons, the registration period is
the first day of the owner’s birth month through the last day of the month immediately preceding the owner’s
birth month in the succeeding year.
The bill revises the registration period for mobile homes owned by natural persons to match the registration
period for most other motor vehicles. This new registration period will run from the first day of the owner’s birth
month through the last day of the month immediately preceding the owner’s birth month in the succeeding
year. For mobile homes not owned by a natural person (i.e., registered to a business), the registration period
remains January 1 through December 31, with the renewal period the 31-day period before expiration.
In order to implement the change in registration periods, the bill requires DHSMV to give customers the option
to renew their registrations on their dates of birth in 2024 or 2025.
The bill will have an insignificant negative fiscal impact on interest earned by state and local governments due
to the change in timing of mobile home registration revenues. DSHMV will also incur programming costs
associated with the change in registration periods, but these costs can be absorbed using exis ting resources.
The bill has an effective date of September 1, 2023.
This docum ent does not reflect the intent or official position of the bill sponsor or House of Representatives .
STORAGE NAME: h0223b.COM
DATE: 1/14/2022
FULL ANALYSIS
I. SUBSTANTIVE ANALYSIS
A. EFFECT OF PROPOSED CHANGES:
Current Situation
Under Florida law, a mobile home is defined as a structure, transportable in one or more sections,
which is eight body feet or more in width and which is built on an integral chassis and designed to be
used as a dwelling when connected to the required utilities and includes the plumbing, heating, air-
conditioning, and electrical systems contained therein. 1
A mobile home is taxed as real property if the owner of the mobile home also owns the land on which
the mobile home is permanently affixed. A mobile home taxed as real property is issued an “RP” series
sticker to affix onto the mobile home.2 In this situation, a mobile home owner must obtain a Declaration
of Real Property from the county property appraiser. Then, the owner must present this declaration to
the county tax collector and purchase an RP decal for his or her mobile home. 3
A mobile home not taxed as real property must have a current license plate, issued by the Department
of Highway Safety and Motor Vehicles (DHSMV), and pay the appropriate registration fee.4
Section 320.08(11), F.S., requires the following annual license tax to be paid for mobile homes required
to have a license plate, based on the length of the mobile home:
Length of Mobile Home Annual License Tax
Not exceeding 35 feet $20
Over 35 feet, but not exceeding 40 feet $25
Over 40 feet, but not exceeding 45 feet $30
Over 45 feet, but not exceeding 50 feet $35
Over 50 feet, but not exceeding 55 feet $40
Over 55 feet, but not exceeding 60 feet $45
Over 60 feet, but not exceeding 65 feet $50
Over 65 feet $80
For mobile homes subject to registration with DHSMV, the registration period begins January 1 and
ends December 31, with the renewal period being the 31 days before expiration. 5 Therefore, all mobile
homes registered with DHSMV must have their registration renewed in December. It is a violation of
law to fail to display a current registration decal. Mobile homes that fail to properly display a current
decal are subject to late fees or tangible personal property taxes. Mobile home registration and decal
renewals may be conducted online, by mail, or at a county tax collector’s office. 6
According to DHSMV, during Fiscal Year 2020-2021, it processed 312,224 mobile home registration
renewal transactions. Of these, 73,979 are registered to businesses. Additionally, approximately
600,000 mobile homes are registered as real property.7
For most motor vehicles owned by a natural person, the registration period begins the first day of the
owner’s birth month and ends the last day of the month immediately preceding the owner's birth month
in the succeeding year. If the vehicle is registered in the name of more than one person, the birth
month of the person whose name first appears on the registration is used to determine the registration
1 S. 320.01(2)(a), F.S.
2 S. 193.075(1), F.S. This provision does not apply to a mobile home that is being held for display by a licensed mobile home d ealer or
a licensed mobile home manufacturer and that is not rented or occupied.
3 Department of Highway Safety and Motor Vehicles (DHSMV), Agency Analysis of 2022 House Bill 223, p. 2. (Nov. 29, 2021).
4 See s. 320.08(11), F.S.
5 S. 322.055(2), F.S.
6 DHSMV, supra note 3.
7 Id. at 3.
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period. For vehicles subject to this registration period, the renewal period is the 30-day period ending at
midnight on the vehicle owner's date of birth.8
Effect of the Bill
The bill changes the registration period of a mobile home owned by a natural person to the first day of
the birth month of the owner through the last day of the month immediately preceding the owner's birth
month in the succeeding year. If the vehicle is registered in the name of more than one person, the
birth month of the person whose name first appears on the registration is used to determine the
registration period. For a vehicle subject to this registration period, the renewal period is the 30-day
period ending at midnight on the vehicle owner's date of birth. Thus, the bill conforms the registration
period for mobile homes owned by natural persons to the registration period for most motor vehicles
owned by natural persons.
For mobile homes not owned by a natural person (i.e., registered to a business), the registration period
remains January 1 through December 31, with the renewal period the 31-day period before expiration.
Registration renewals for these mobile homes will continue to take place in December.
The bill requires that beginning September 1, 2023, in order to implement the changes in registration
periods, DHSMV give customers the option to renew their registrations on their dates of birth in 2024 or
2025. Customers whose dates of birth occur in the months of January through June may choose to
renew for 1 to 18 months. Customers whose dates of birth occur in the months of July through
December may choose to renew for 7 to 24 months.
The bill has an effective date of September 1, 2023.
B. SECTION DIRECTORY:
Section 1 Amends s. 320.055, F.S., relating to registration periods; renewal periods.
Section 2 Provides an effective date.
II. FISCAL ANALYSIS & ECONOMIC IMPACT STATEMENT
A. FISCAL IMPACT ON STATE GOVERNMENT:
1. Revenues:
On December 3, 2021, the Revenue Estimating Conference determined that the bill will have an
insignificant negative fiscal impact on state government revenues. This impact is associated with
changes to interest revenues due to changes in the timing of registration renewals. 9
2. Expenditures:
DSHMV will incur programming costs related to its various computer systems; however, this
programming can be done using existing DHSMV resources. 10
B. FISCAL IMPACT ON LOCAL GOVERNMENTS:
1. Revenues:
8 S. 320.01(1)(a), F.S.
9 Revenue Estimating Conference (REC), Results of CS SB 754 (Dec. 3, 2021)
http://edr.state.fl.us/Content/conferences/revenueimpact/archives/2022/_pdf/page71-73.pdf (Dec. 3, 2021). (last visited Jan. 11, 2021).
10 Email from Kevin Jacobs, Legislative Affairs Director, DHSMV, RE: HB 223 Mobile Home Registra tion-Fiscal (Jan. 10, 2022)
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On December 3, 2021, the Revenue Estimating Conference determined that will have an
insignificant negative fiscal impact on local government revenues. This impact is associated with
changes to interest revenues due to changes in the timing of registration renewals.11
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 require counties or municipalities to spend funds or take
action requiring the expenditure of funds; reduce the authority that counties or municipalities have to
raise revenues in the aggregate; or reduce the percentage of state tax shared with counties or
municipalities.
2. Other:
None.
B. RULE-MAKING AUTHORITY:
This bill does not require or authorize rulemaking.
C. DRAFTING ISSUES OR OTHER COMMENTS:
None.
IV. AMENDMENTS/ COMMITTEE SUBSTITUTE CHANGES
On January 12, 2022, the Tourism, Infrastructure & Energy Subcommittee adopted one amendment and
reported the bill favorably as a committee substitute. The amendment:
Required DHSMV to give customers the option to renew their mobile home registration on their dates of
birth in 2024 or 2025 so that the registration fees can be prorated.
Changed the effective date of the bill to September 1, 2023.
This analysis is drafted to the committee substitute as approved by the Tourism, Infrastructure & Energy
Subcommittee.
11 REC, supra note 9.
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F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
CS/HB 223 2022
1 A bill to be entitled
2 An act relating to mobile home registration periods;
3 amending s. 320.055, F.S.; revising the registration
4 and registration renewal periods for a mobile home
5 owned by a natural person; requiring the Department of
6 Highway Safety and Motor Vehicles, beginning on a
7 specified date, to give customers the option to renew
8 their registrations on their dates of birth in certain
9 years; specifying permissible renewal periods for such
10 renewals; providing an effective date.
11
12 Be It Enacted by the Legislature of the State of Florida:
13
14 Section 1. Paragraph (a) of subsection (1) and subsection
15 (2) of section 320.055, Florida Statutes, are amended to read:
16 320.055 Registration periods; renewal periods.—The
17 following registration periods and renewal periods are
18 established:
19 (1)(a) For a motor vehicle subject to registration under
20 s. 320.08(1), (2), (3), (4)(a) or (b), (5)(b), (c), (d), or (f),
21 (6)(a), (7), (8), (9), or (10), or (11) and owned by a natural
22 person, the registration period begins the first day of the
23 birth month of the owner and ends the last day of the month
24 immediately preceding the owner's birth month in the succeeding
25 year. If such vehicle is registered in the name of more than one
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26 person, the birth month of the person whose name first appears
27 on the registration shall be used to determine the registration
28 period. For a vehicle subject to this registration period, the
29 renewal period is the 30-day period ending at midnight on the
30 vehicle owner's date of birth.
31 (2) For a vehicle subject to registration under s.
32 320.08(11) and not owned by a natural person, the registration
33 period begins January 1 and ends December 31. For a vehicle
34 subject to this registration period, the renewal period is the
35 31-day period before prior to expiration.
36 Section 2. Beginning September 1, 2023, in order to
37 implement the amendment made by this act to s. 320.055, Florida
38 Statutes, the Department of Highway Safety and Motor Vehicles
39 shall give customers the option to renew their registrations on
40 their dates of birth in 2024 or 2025. Customers whose dates of
41 birth occur in the months of January through June may choose to
42 renew for 1 to 18 months. Customers whose dates of birth occur
43 in the months of July through December may choose to renew for 7
44 to 24 months.
45 Section 3. This act shall take effect September 1, 2023.
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HB 267
HOUSE OF REPRESENTATIVES STAFF ANALYSIS
BILL #: HB 267 Swimming Pool Specialty Contracting Services
SPONSOR(S): McClure
TIED BILLS: IDEN./SIM. BILLS: SB 222
REFERENCE ACTION ANALYST STAFF DIRECTOR or
BUDGET/POLICY CHIEF
1) Regulatory Reform Subcommittee 13 Y, 0 N 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, nor require the unlicensed person to be an
employee of the supervising pool/spa contractor.
The bill does not appear to have a fiscal impact on state and local governments.
The bill provides for an effective date of July 1, 2022.
This docum ent does not reflect the intent or official position of the bill sponsor or House of Representatives .
STORAGE NAME: h0267b.COM
DATE: 1/14/2022
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, and 489.113, F.S.
6 S. 489.105(3)(j), F.S.
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work for commercial pool/spa contractors; however, residential pool/spa contractors may only work on
residential swimming pools, hot tubs, and spas. 7
“Swimming pool/spa servicing contractors” are individuals who are certified or registered to repair and
service any public or private swimming pool, hot tub, or spa including:8
Repairing or replacing existing equipment;
Cleaning or equipment sanitizing that requires at least a partial disassembling, excluding filter
changes;
Installing new pool/spa equipment and interior refinishing;
Reinstalling or adding pool heaters;
Repairing or replacing perimeter piping and filter piping;
Repairing equipment rooms or housing for pool/spa equipment; and
Substantially or completing draining a swimming pool, or hot tub or spa, for the purpose of
repair or renovation.
The scope of work for all three types of swimming pool/spa contractors does not include direct
connections to a sanitary sewer system or to potable water lines.9
Water treatment or cleaning a pool or spa does not require a license unless the structural integrity of
the pool or spa is affected, or equipment attached to the pool or spa must be substantially or completely
disassembled or replaced in order to treat the water or clean the pool. Installing an aboveground pool
also does not require a license.10
A contractor, including pool/spa contractors, must subcontract all electrical, mechanical, plumbing,
roofing, sheet metal, and air-conditioning work, to a contractor certified or registered in the respective
category, unless the pool/spa contractor also holds a state certificate or registration in the respective
category.11
In order to obtain certification as one of the swimming pool/spa contractors, a person must:12
Apply to DBPR in writing;
Be 18 years of age;
Be of good moral character;
Pass the examination for the certification sought; and
Have one of the following:
o A bachelor degree from a four year college in the appropriate field of engineering,
architecture, or building construction, and one year of proven experience;
o Four years of experience as a foreman or a skilled worker with at least one year as a
foreman;
o A combination of college and experience as a foreman or skilled worker that equals four
years with at least one of the years as a foreman; or
o One year of experience and 60 hours of instruction courses approved by the CILB;
however, this only applies to swimming pool/spa servicing contractors.
7 S. 489.105(3)(k), F.S.
8 S. 489.105(3)(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 Oct. 26, 2021).
11 S. 489.113(3), F.S.
12 Ss. 489.111, & 489.113, F.S.
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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
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
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 Cody McCloud, Legislative Affairs Director, DBPR, RE: Pool Contractor Information,
(Oct. 26, 2021).
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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.
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 24 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.
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 wit h
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 featu re 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).
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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 performing the specialty contracting
services, or require the unlicensed person to be an employee of the supervising pool/spa contractor.
The bill provides that it does not limit other current exemptions to licensure. The bill also provides that it
may not be construed to expand the scope of work allowed by a licensed commercial or residential
pool/spa contractor or swimming pool/spa servicing contractor to provide plumbing or electrical
services, which requires a separate contractor license.
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, 2022.
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
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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:
No.
IV. AMENDMENTS/ COMMITTEE SUBSTITUTE CHANGES
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F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
HB 267 2022
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 and spas; providing that such supervision does not
9 require a direct contract between those persons;
10 providing construction; 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), (k), or (l) for the construction, remodeling,
22 repair, or improvement of commercial or residential swimming
23 pools, interactive water features as defined in the Florida
24 Building Code, hot tubs, and spas without obtaining a local
25 license or certification as a specialty contractor if he or she
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F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
HB 267 2022
26 is supervised by a contractor who is certified or registered
27 under s. 489.105(3)(j), (k), or (l); the work is within the
28 scope of the supervising contractor's license; the supervising
29 contractor is responsible for the work; and the work does not
30 require certification or registration under s. 489.105(3)(d)-
31 (i), (m)-(o), or s. 489.505. Such supervision does not require a
32 direct contract between the contractor certified or registered
33 under s. 489.105(3)(j), (k), or (l) and the person performing
34 the work, or for the person performing the work to be an
35 employee of the contractor certified or registered under s.
36 489.105(3)(j), (k), or (l). This paragraph does not limit the
37 exemptions provided in s. 489.103 and may not be construed to
38 expand the scope of a contractor certified or registered under
39 s. 489.105(3)(j), (k), or (l) to provide plumbing or electrical
40 services for which certification or registration is required by
41 this part or part II.
42 Section 2. This act shall take effect July 1, 2022.
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hb0267-00
HB 269
HOUSE OF REPRESENTATIVES STAFF ANALYSIS
BILL #: HB 269 Natural Gas and Public Utility Petitions for Rate Relief
SPONSOR(S): Byrd and others
TIED BILLS: IDEN./SIM. BILLS: SB 350
REFERENCE ACTION ANALYST STAFF DIRECTOR or
BUDGET/POLICY CHIEF
1) Tourism, Infrastructure & Energy Subcommittee 16 Y, 0 N Neuffer Keating
2) State Administration & Technology 14 Y, 0 N Lee Topp
Appropriations Subcommittee
3) Commerce Committee Neuffer Hamon
SUMMARY ANALYSIS
The bill increases the threshold under which investor-owned electric utilities (IOUs) are eligible to have a
petition for rate relief considered by the Florida Public Service Commission (PSC) under informal procedures
referred to as proposed agency action (PAA) procedures. Under current law, only IOUs with less than 500
gigawatt hours (GWh) in annual electricity sales are eligible to request use of these PAA procedures for rate
cases. No Florida IOU currently has annual sales below this threshold. The bill increases the annual sales
threshold to 1,000 GWh, which will make one IOU, Florida Public Utilities Company (FPUC), eligible to request
use of PAA procedures for a rate case.
The bill may have an insignificant positive impact on state government expenditures. The bill will not impact
state government revenues or local government revenues or expenditures.
The bill has an effective date of July 1, 2022.
This docum ent does not reflect the intent or official position of the bill sponsor or House of Representatives .
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DATE: 1/14/2022
FULL ANALYSIS
I. SUBSTANTIVE ANALYSIS
A. EFFECT OF PROPOSED CHANGES:
Present Situation
The Florida Public Service Commission (PSC) is an arm of the Legislature, created to oversee utility
services to the people of Florida.1 Among its powers, the PSC has broad jurisdiction over the rates and
service of investor-owned electric utilities (IOUs) in Florida.2 As required by law, the PSC sets base
rates that are designed to allow each IOU to recover its legitimate costs of providing service, 3 including
a return on the IOU’s prudent capital investments.4
Base rates are changed through “rate case” proceedings on an as-needed basis. When an IOU aims to
change its base rates, it must petition the PSC and file documents that satisfy the minimum filing
requirements (MFRs) established by the PSC for a rate case. 5 A formal hearing process ensues,
including a discovery process, an evidentiary hearing, customer service hearings, and post-hearing
brief submissions. The PSC must take final action and issue its final order on the IOU’s petition within
twelve months of the IOU’s completed MFR filing,6 though the PSC typically takes final action and
issues its final order within eight months. This rate case process is typically resource intensive.
Because an IOU’s rate case expenses are considered a legitimate cost of providing service, these
expenses are recovered through customer rates.
Under current law, an IOU with less than 500 gigawatt hours (GWh) in annual sales may reques t that
its rate case be handled by the PSC under informal procedures referred to as proposed agency action
(PAA) procedures. PAA procedures require less time and resources than the formal hearing process.
Under PAA procedures, the IOU still must file documents that satisfy the MFRs, and customer service
hearings are still held in the IOU’s service territory. PSC staff may request data from the IOU, and the
Office of Public Counsel7 may appear as a party in the case and conduct discovery. Discovery from
third parties is not permitted under PAA procedures. After the PSC hears input from its staff, the IOU,
and any other interested persons, it votes on the IOU’s rate request and memorializes its vote in writing
as a PAA order. The order must be issued within five months of the IOU’s completed filing of the
MFRs.8 Any person whose substantial interests are affected by the PAA order may protest the order
and initiate the formal hearing process with respect to the specific matters protested. If no such protest
is filed, the order shall be entered and become final agency action, subject only to appeal. 9
At present, no IOU has annual sales below the 500 GWh threshold. When the threshold was enacted,
Florida Public Utilities Company (FPUC), an IOU, operated two separate divisions, one in Marianna
and one in Fernandina Beach. Each division was regulated as a separate entity for the purpose of
setting rates. In 2004, the PSC approved a rate settlement agreement consolidating the rates and
charges of the two divisions into one entity. From the time that the 500 GWh threshold was enacted
until FPUC’s consolidation in 2004, the two independent divisions of FPUC were the only IOUs eligible
1 S. 350.001, F.S.
2 See, e.g., ss. 366.01, 366.04(1),366.041, 366.05(1), and 366.06, F.S. There are four IOUs in Florida: Florida Power &
Light Company, Duke Energy Florida, Tampa Electric Company, and Florida Public Utilities Company. The former Gulf
Power Company merged into Florida Power & Light Company as of January 1, 2021.
3 Base rates make up just one component of an IOU’s rates. Other mechanisms are established by statute or PSC rule or
order to allow IOUs to recover specific types of costs not included in base rates, such as fuel costs and certain
environmental compliance costs.
4 Ss. 366.041(1) and 366.06(1), F.S.
5 See Rr. 25-6.043 and 25-6.140, F.A.C.
6 S. 366.06(3), F.S.
7 See S. 350.0611, F.S. (tasking the Office of the Public Counsel with providing legal representation for the general public
of Florida in proceedings before the PSC and in other utility related matters).
8 See S. 366.06(4), F.S.
9 See Order Nos. PSC-08-0436-PAA-GU (PAA Order) and PSC-08-0849-CO-GU (Consummating Order), issued July 8
and August 1, 2008, in Docket No. 20070592-GU, In re: Petition for rate increase by St. Joe Natural Gas Company, Inc.
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DATE: 1/14/2022
to request use of PAA procedures for rate cases. After the consolidation, FPUC’s annual sales
surpassed the 500 GWh threshold, and it became ineligible to request use of PAA procedures for its
rate cases.10
As shown in the following table, FPUC’s annual electricity sales are substantially less than any other
IOU within the state:
2020 Florida IOU Electricity Sales
IOU Sales (GWh)
Florida Power & Light 113,531
Duke Energy Florida 39,230
Tampa Electric 19,954
Gulf Power 10,635
FPUC 650
Effect of Proposed Changes
The bill increases the eligibility threshold under which an IOU may request that its rate case be handled
informally through PAA procedures, from 500 GWh to 1,000 GWh. Under this change, Florida Public
Utilities Company (FPUC) would regain its eligibility to use the PAA procedures.
B. SECTION DIRECTORY:
Section 1. Amends s. 366.06, F.S., relating to the procedures for fixing and changing rates.
Section 2. Provides an effective date of July 1, 2022.
II. FISCAL ANALYSIS & ECONOMIC IMPACT STATEMENT
A. FISCAL IMPACT ON STATE GOVERNMENT:
1. Revenues:
None.
2. Expenditures:
The bill will likely have an insignificant positive fiscal impact on PSC expenditures due to potential
cost savings realized by utilizing a proposed agency action (PAA) procedure, which is a more
expedited disposition of a petition for rate relief, instead of a lengthy direct-to-hearing rate case that
requires more time and staffing resources.11
B. FISCAL IMPACT ON LOCAL GOVERNMENTS:
1. Revenues:
None.
2. Expenditures:
None.
C. DIRECT ECONOMIC IMPACT ON PRIVATE SECTOR:
10 Email from Kaley Slattery, Legislative
Director, Florida Public Service Commission, RE: Recorded year that FPUC
exceeded 500 GWh in annual sales (Oct. 27, 2021).
11 Florida Public Service Commission, Agency Analysis of 2022 House Bill 269, pg. 3 (Oct. 21, 2021).
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To the extent that FPUC is able to reduce its rate case expenses through the use of PAA procedures,
these savings will be passed along to its ratepayers. The bill could also offer potential benefits to
newly-qualifying utilities resulting from a PAA instead of a direct-to-hearing rate case.12
D. FISCAL COMMENTS:
None.
III. COMMENTS
A. CONSTITUTIONAL ISSUES:
1. Applicability of Municipality/County Mandates Provision:
Not applicable. This bill does not appear to affect county or municipal governments.
2. Other:
None.
B. RULE-MAKING AUTHORITY:
The bill does not require or authorize rulemaking.
C. DRAFTING ISSUES OR OTHER COMMENTS:
None.
IV. AMENDMENTS/COMMITTEE SUBSTITUTE CHANGES
None.
12 Id.
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F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
HB 269 2022
1 A bill to be entitled
2 An act relating to natural gas and public utility
3 petitions for rate relief; amending s. 366.06, F.S.;
4 revising the number of gigawatt hours that certain
5 utilities must sell to petition for rate relief using
6 the Public Service Commission's proposed agency action
7 procedure; providing an effective date.
8
9 Be It Enacted by the Legislature of the State of Florida:
10
11 Section 1. Subsection (4) of section 366.06, Florida
12 Statutes, is amended to read:
13 366.06 Rates; procedure for fixing and changing.—
14 (4) A natural gas utility or a public electric utility
15 whose annual sales to end-use customers amount to less than 1000
16 500 gigawatt hours may specifically request the commission to
17 process its petition for rate relief using the agency's proposed
18 agency action procedure, as prescribed by commission rule. The
19 commission shall enter its vote on the proposed agency action
20 within 5 months of the commencement date for final agency
21 action. If the commission's proposed action is protested, the
22 final decision must be rendered by the commission within 8
23 months of the date the protest is filed. At the expiration of 5
24 months following the commencement date for final agency action,
25 if the commission has not taken action or if the commission's
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HB 269 2022
26 action is protested by a party other than the utility, the
27 utility may place its requested rates into effect under bond,
28 escrow, or corporate undertaking subject to refund, upon notice
29 to the commission and upon filing the appropriate tariffs. The
30 utility must keep accurate records of amounts received as
31 provided by subsection (3).
32 Section 2. This act shall take effect July 1, 2022.
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hb0269-00
CS/HB 273
HOUSE OF REPRESENTATIVES STAFF ANALYSIS
BILL #: CS/HB 273 Money Services Businesses
SPONSOR(S): Insurance & Banking Subcommittee, Aloupis
TIED BILLS: IDEN./SIM. BILLS: SB 486
REFERENCE ACTION ANALYST STAFF DIRECTOR or
BUDGET/POLICY CHIEF
1) Insurance & Banking Subcommittee 14 Y, 0 N, As CS Hinshelwood Luczynski
2) Commerce Committee Hinshelwood Hamon
SUMMARY ANALYSIS
The Office of Financial Regulation’s (OFR) Division of Consumer Finance licenses and regulates various
aspects of the non-depository financial services industries, including money services businesses (MSBs)
regulated under ch. 560, F.S. Money transmitters and payment instrument sellers are two types of MSBs.
Currently, virtual currency is not expressly within ch. 560, F.S., though in the last 7 years OFR has received
over 70 petitions for declaratory statement relating to whether and how virtual currency is regulated under that
chapter.
Virtual currency is a digital representation of value that functions as a medium of exchange, a unit of account,
and/or a store of value. In some environments, it operates like “fiat” currency (i.e., the coin and paper money of
the United States or of any other country that is designated as legal tender, circulates, and is customarily used
and accepted as a medium of exchange in the country of issuance), but it does not have legal tender status in
any jurisdiction. Bitcoin is one example of a virtual currency.
In a recent case, the Third District Court of Appeal’s holdings related to bitcoin illustrate the need to expressly
provide whether and how virtual currency falls within ch. 560, F.S., as well as the need to clarify certain
definitions in that chapter. In particular, the court held that the definition of “money transmitter” requires
licensure for third-party intermediaries as well as for individuals in a two-party transaction.
Within ch. 560, F.S., the bill adds a definition for “virtual currency” and amends the definitions of “electronic
instrument”, “monetary value”, “money transmitter”, “payment instrument”, and “stored value”. The
amendments to these definitions provide clarity as to their meaning; make virtual currency expressly subject to
money transmitter regulations but not regulations for other types of licenses under ch. 560, F.S.; and clarify
that a money transmitter license is only required for a person acting as an intermediary between two parties,
meaning that neither person in a two-party transaction is required to be licensed. As a result of the addition of
virtual currency to ch. 560, F.S., the bill makes conforming changes to the prohibition on unlicensed activity,
adds rulemaking authority for recordkeeping requirements related to virtual currency, and amends the
permissible investments statute. Without a change to the permissible investments statute, the effect would be
to require a money transmitter that transmits virtual currency to not only have control over the virtual currency
being transmitted but also hold the equivalent value in cash or other enumerated assets. Instead, the bill would
only require that, during the period of transmission, the money transmitter must hold virtual currency of the
same type and amount owed or obligated to the other location or person on the receiving end of the
transmission. Lastly, the bill makes conforming changes under the Financial Technology Sandbox in s.
559.952, F.S., as well as other conforming changes within ch. 560, F.S., to reflect the addition of virtual
currency to money transmitter regulations.
The bill has no fiscal impact on local governments and an indeterminate fiscal impact on the private sector and
the state. See Fiscal Analysis & Economic Impact Statement.
The bill provides an effective date of January 1, 2023.
This docum ent does not reflect the intent or official position of the bill sponsor or House of Representatives .
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DATE: 1/14/2022
FULL ANALYSIS
I. SUBSTANTIVE ANALYSIS
A. EFFECT OF PROPOSED CHANGES:
Background
Regulation of Money Transmitters and Payment Instrument Sellers
State Regulation
The Office of Financial Regulation (OFR) regulates banks, credit unions, other financial institutions,
finance companies, and the securities industry.1 The Division of Consumer Finance within OFR
licenses and regulates various aspects of the non-depository financial services industries, including
money services businesses (MSBs) regulated under ch. 560, F.S. Money transmitters and payment
instrument sellers are two types of MSBs, and both are regulated under part II of ch. 560, F.S.
A money transmitter receives currency,2 monetary value,3 or payment instruments 4 for the purpose of
transmitting the same by any means, including transmission by wire, facsimile, electronic transfer,
courier, the Internet, or through bill payment services or other businesses that facilitate such transfer
within this country, or to or from this country.5 A payment instrument seller sells, issues, provides, or
delivers a payment instrument.6 State and federally chartered depository institutions, such as banks
and credit unions, are exempt from licensure as an MSB.7 Currently, virtual currency is not expressly
within ch. 560, F.S., though in the last 7 years OFR has received over 70 petitions for declaratory
statement relating to whether and how virtual currency is regulated under that chapter.
An applicant for an MSB license under ch. 560, F.S., must file an application with OFR and pay an
application fee of $375.8 The license must be renewed every 2 years by paying a renewal fee of $750.9
Money transmitters and payment instrument sellers may operate through authorized vendors by
providing OFR with specified information about the authorized vendor and by paying a fee of $38 per
authorized vendor location at the time of application and renewal. 10 A money transmitter or payment
instrument seller may also engage in the activities authorized for check cashers 11 and foreign currency
exchangers 12 without paying additional licensing fees.13
1 S. 20.121(3)(a)2., F.S.
2 The term “currency” means the coin and paper money of the United States or of any other country which is designated
as legal tender and which circulates and is customarily used and accepted as a medium of exchange in the country of
issuance. Currency includes United States silver certificates, United States notes, and Federal Reserve notes. Currency
also includes official foreign bank notes that are customarily used and accepted as a medium of exchange in a foreign
country. S. 560.103(11), F.S.
3 The term “monetary value” means a medium of exchange, whether or not redeemable in currency. S. 560.103(21), F.S.
4 The term “payment instrument” means a check, draft, warrant, money order, travelers check, electronic instrument, or
other instrument, payment of money, or monetary value whether or not negotiable. The term does not include an
instrument that is redeemable by the issuer in merchandise or service, a credit card voucher, or a letter of credit. S.
560.103(29), F.S.
5 S. 560.103(23), F.S.
6 S. 560.103(30) and (34), F.S.; definition of “payment instrument”, supra note 4.
7 S. 560.104, F.S.
8 Ss. 560.141 and 560.143, F.S.
9 Id.; s. 560.142, F.S.
10 Id.; ss. 560.203, 560.205, and 560.208, F.S.
11 The term “check casher” means a person who sells currency in exchange for payment instruments received, except
travelers checks. S. 560.103(6), F.S.
12 The term “foreign currency exchanger” means a person who exchanges, for compensation, currency of the United
States or a foreign government to currency of another government. S. 560.103(17), F.S.
13 S. 560.204(2), F.S.
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A money transmitter or payment instrument seller must at all times:
Have a net worth of at least $100,000 and an additional net worth of $10,000 per location in this
state, up to a maximum of $2 million.14
Have a corporate surety bond in an amount between $50,000 and $2 million depending on the
financial condition, number of locations, and anticipated volume of the licensee.15 In lieu of a
corporate surety bond, the licensee may deposit collateral such as cash or interest-bearing
stocks and bonds with a federally insured financial institution. 16
Possess permissible investments, such as cash and certificates of deposit, with an aggregate
market value of at least the aggregate face amount of all outstanding money transmissions and
payment instruments issued or sold by the licensee or an authorized vendor in the United
States.17 OFR may waive the permissible investments requirement if the dollar value of a
licensee’s outstanding payment instruments and money transmitted do not exceed the bond or
collateral deposit.18
While MSBs are generally subject to federal anti-money laundering laws,19 Florida law contains many
of the same anti-money laundering reporting requirements and recordkeeping requirements with the
added benefit of state enforcement. An MSB applicant must have an anti-money laundering program
that meets the requirements of federal law.20
Pursuant to the Florida Control of Money Laundering in Money Services Business Act, an MSB must
maintain certain records of each transaction involving currency or payment instruments in order to deter
the use of a money services business to conceal proceeds from criminal activity and to ensure the
availability of such records for criminal, tax, or regulatory investigations or proceedings. 21 An MSB must
keep records of each transaction occurring in this state that it knows to involve currency or other
payment instruments having a greater value than $10,000; to involve the proceeds of specified unlawful
activity; or to be designed to evade the reporting requirements of ch. 896, F.S., or the Florida Control of
Money Laundering in Money Services Business Act. 22 OFR may take administrative action against an
MSB for failure to maintain or produce documents required by ch. 560, F.S., or federal anti-money
laundering laws.23 OFR may also take administrative action against an MSB for other violations of
federal anti-money laundering laws such as failure to file suspicious activity reports.24
A money transmitter or payment instrument seller must maintain specified records for at least 5 years,
including the following:25
A daily record of payment instruments sold and money transmitted.
A general ledger containing all asset, liability, capital, income, and expense accounts, which
must be posted at least monthly.
Daily settlement records received from authorized vendors.
Monthly financial institution statements and reconciliation records.
Records of outstanding payment instruments and money transmitted.
Records of each payment instrument paid and money transmission delivered.
A list of the names and addresses of the licensee’s authorized vendors.
Records that document the establishment, monitoring, and termination of relationships with
authorized vendors and foreign affiliates.
Any additional records, as prescribed by rule, designed to detect and prevent money
laundering.
14 S. 560.209, F.S.
15 Id.
16 Id.
17 S. 560.210, F.S.
18 Id.
19 31 C.F.R. pt. 1022.
20 S. 560.1401, F.S.
21 S. 560.123, F.S.
22 Id.
23 S. 560.114, F.S.
24 Id.
25 Ss. 560.1105 and 560.211, F.S.
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Recent Case Law: State v. Espinoza
Through an online directory of buyers and sellers of bitcoin, a detective with the Miami Beach Police
Department arranged to meet a person with the username Michelhack, which turned out to be the
defendant Michell Espinoza, in order to purchase bitcoin. 26 The detective arranged multiple
transactions with the defendant as follows:
During the course of the first transaction, the detective made clear his desire to remain
anonymous and implied that he was involved in illicit activity. 27 The detective paid Mr. Espinoza
$500 in cash and received a portion of a bitcoin valued at $416.12, thus earning Mr. Espinoza a
profit of $83.67.28
The detective arranged a second transaction with Mr. Espinoza during which he told Mr.
Espinoza that he needed the bitcoins to pay for stolen credit card numbers, since he was in the
business of buying and selling stolen credit card numbers from Russian sellers. 29 The detective
paid Mr. Espinoza $1,000 in cash and received one bitcoin, thus earning Mr. Espinoza a profit
of approximately $167.56.30
The detective then arranged a third transaction with Mr. Espinoza.31 The detective inquired how
fast the transaction could be completed because his “Russian buddies” would not send him his
“[stuff] until they get the coin.”32 The detective deposited $500 into Mr. Espinoza’s bank account,
and Mr. Espinoza transferred 0.54347826 bitcoins to the detective. 33
In the fourth and final transaction, the detective negotiated the transfer of bitcoins worth $30,000
and represented to Mr. Espinoza that it was to pay for a new batch of stolen credit card
numbers acquired from a recent data breach.34 Although Mr. Espinoza questioned the
authenticity of the $30,000 roll of money that the detective gave him, he otherwise remained
ready and willing to consummate the entire transaction.35 Mr. Espinoza was then taken into
custody.36
Mr. Espinoza was charged with: (1) one count of unlawfully engaging in the business of a money
transmitter and acting as a payment instrument seller as a result of not being licensed to conduct such
activity (Count one); and (2) two counts of money laundering (Counts two and three).37 Mr. Espinoza
filed a motion to dismiss as to all counts, which the trial court granted for the following reasons:
As to Count one, the trial court found that neither bitcoin nor Mr. Espinoza’s conduct fell within
the ambit of ch. 560, F.S., requiring registration as a money services business. 38 Regarding Mr.
Espinoza’s conduct, the trial court reasoned that a “money transmitter” would necessarily
operate like a middleman in a financial transaction, much like how Western Union accepts
money from person A, and at the direction of person A, transmits it to person or entity B. 39 Mr.
Espinoza was not acting as a middleman; rather the transactions with the detective were two-
party transactions in which Mr. Espinoza sold his own bitcoin to the detective and received U.S.
Dollars in return.
As to Counts two and three, the trial court found that the conduct at issue qualifies as a
“financial transaction” under the money laundering statutes but that Mr. Espinoza lacked the
requisite intent to be guilty of money laundering.40
26 State v. Espinoza, 264 So. 3d 1055, 1059-60 (Fla. 3d DCA 2019).
27 Id. at 1060.
28 Id.
29 Id.
30 Id.
31 Id.
32 Id.
33 Id.
34 Id. at 1060-61.
35 Id. at 1061.
36 Id.
37 Id. at 1057 and 1061.
38 Id. at 1057 and 1061.
39 Id. at 1065.
40 Id. at 1057 and 1061.
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The state then appealed the trial court’s dismissal of the information. 41 On appeal, the Third District
Court of Appeal (court) held that:
The trial court erred in dismissing Count one because Mr. Espinoza acted as both a money
transmitter and a payment instrument seller and, as such, was required to be licensed as a
money services business.42
The trial court erred in dismissing Counts two and three on the basis that Espinoza lacked the
requisite intent to be guilty of money laundering.43
In the reasoning as to Count one, the court determined that bitcoin is both “monetary value” and a
“payment instrument” under ch. 560, F.S.44 This interpretation illustrates the need to expressly provide
whether and how virtual currency falls within ch. 560, F.S. The court’s interpretation also illustrates the
need to clarify the definition of “payment instrument”. “Monetary value” is akin to “currency” within ch.
560, F.S. Conceptually, a payment instrument is an instrument denominated in currency (or monetary
value), but currency and monetary value should not in and of themselves be a payment instrument.
Another important aspect of the Espinoza case is that in determining that Mr. Espinoza acted as a
money transmitter, the court addressed whether the definition of “money transmitter” covers only third-
party intermediaries, in which case Mr. Espinoza selling his own bitcoins to the detective would not
have run afoul of the prohibition on unlicensed money transmission.45 On this point, the court held that
“[t]he statute's plain language clearly contains no third party transmission requirement in order for an
individual's conduct to fall under the ‘money transmitter’ definition. As such, we decline to add any third
party or ‘middleman’ requirement to the money transmitter definition found in section 560.103(23).” 46
The court’s holding illustrates the need to clarify the definition of “money transmitter” such that a money
transmitter license is only required for a person acting an intermediary between two parties, but neither
person in a two-party transaction is required to be licensed.47
Virtual Currency
Virtual currency is a digital representation of value that functions as a medium of exchange, a unit of
account, and/or a store of value.48 In some environments, it operates like “real” currency49 (i.e., the coin
and paper money of the United States or of any other country that is designated as legal tender,
circulates, and is customarily used and accepted as a medium of exchange in the country of issuance),
but it does not have legal tender status in any jurisdiction. 50 Virtual currency that has an equivalent
value in real currency, or that acts as a substitute for real currency, is referred to as “convertible” virtual
currency.51 Bitcoin is one example of a convertible virtual currency, as it can be digitally traded between
users and can be purchased for, or exchanged into, U.S. dollars, Euros, and other real or virtual
currencies.52
Virtual currencies generally consist of computers operating the network software (nodes) that enable,
validate, and store transaction records on a distributed digital ledger (a blockchain).53 To transfer an
41 Id. at 1061.
42 Id. at 1057 and 1061-62.
43 Id.
44 Id. at 1064.
45 Id. at 1065.
46 Id. (citations omitted).
47 This is consistent with the historical interpretation of the money transmitter definition by OFR and industry, and it avoids
the untenable result of requiring persons in a two-party transaction to be licensed. Additionally, this is consistent with the
substance of the money transmitter regulations.
48 IRS, Virtual Currencies: What is virtual currency?, https://www.irs.gov/businesses/small-businesses-self-
employed/virtual-currencies (last visited Jan. 13, 2022).
49 Also often referred to as “fiat” currency.
50 IRS, supra note 48.
51 Id.
52 Id.
53 FinCEN, Notice of Proposed Rulemak ing: Requirements for Certain Transactions Involving Convertible Virtual Currency
or Digital Assets, https://www.govinfo.gov/content/pkg/FR-2020-12-23/pdf/2020-28437.pdf (last visited Jan. 13, 2022).
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asset on a blockchain, a person enters an alphanumeric code known only to the transferor (a private
key) into a cryptographic hash function enabled by the network software, which allows the transferor to
request that the network software validate a new entry on the ledger showing that control of an asset
has been assigned to the recipient.54 Once the network software has validated this transfer, the ledger
is altered and the recipient may transfer the asset to another recipient using their own private key.55
Ledger entries are cryptographically secured, and accounts are identified on a blockchain by
alphanumeric ‘‘public keys’’—not by the owner’s name.56
Some persons use the services of a third-party to acquire or transact in virtual currency.57 For example,
certain third-parties provide custody services for their customers’ virtual currency in so called ‘‘hosted
wallets.’’58 In such arrangements, the third-party wallet host may execute transactions on a blockchain
on behalf of a customer using a private key controlled by the third-party wallet host.59 Other persons do
not use the services of such a third-party, in which case they use the private key controlling their virtual
currency to transact directly on a blockchain.60 Such persons may store the private key in a software
program or written record, often referred to as an ‘‘unhosted wallet.’’61
Virtual currency networks present opportunities as well as risks.62 The G7 Finance Ministers and
Central Bank Governors recently noted that ‘‘[t]he widespread adoption of digital payments . . . has the
potential to address frictions in existing payment systems by improving access to financial services,
reducing inefficiencies, and lowering costs.’’63 At the same time, however, virtual currencies are used in
illicit financial activity that presents substantial national security concerns.64
Determining the true amount of illicit activity that is conducted in virtual currency is challenging.65 One
industry estimate is that approximately 1 percent of overall market transaction volume, or $10 billion, in
virtual currency activity conducted globally in 2019 was illicit.66 This figure, however, may
underestimate such illicit activity.67 Despite significant underreporting due to compliance challenges in
parts of the virtual currency sector, in 2019, FinCEN received approximately $119 billion in suspicious
activity reporting associated with virtual currency activity taking place wholly or in substantial part in the
United States.68 By industry measures, this would equate to approximately 11.9 percent of total virtual
currency market activity being relevant to a possible violation of law or regulation.69
Virtual Currency in Florida Statutes
Currently, Florida law includes virtual currency as a type of monetary instrument under the Florida
Money Laundering Act.70 Thus, Florida law criminalizes the use of virtual currency for illicit purposes in
the same manner that the law criminalizes use of fiat currency for illicit purposes. Under that act,
“‘virtual currency’ means a medium of exchange in electronic or digital format that is not a coin or
54 Id.
55 Id.
56 Id.
57 Id.
58 Id.
59 Id.
60 Id.
61 Id.
62 Id.
63 Id. (citing the G7 Finance Ministers and Central Bank Governors’ Statement on Digital Payments on Oct. 13, 2020).
64 FinCEN Notice of Proposed Rulemaking, supra note 53.
65 Id.
66 Id. (citing Chainalysis, 2020 Crypto Crime Report (Jan. 2020), https://go.chainalysis.com/2020-CryptoCrime-
Report.html).
67 FinCEN Notice of Proposed Rulemaking, supra note 53.
68 Id. FinCEN notes that a significant majority of this $119 billion related to suspicious activity that to ok place before 2019
based on subsequent lookbacks. Id. FinCEN anticipates that in the future it will receive additional suspicious activity
reporting for activity that took place in 2019 but that has not yet been recognized as suspicious. Id.
69 Id. Suspicious activity is not a clear indication of a crime but is activity that is potentially illicit. Id.
70 S. 896.101, F.S.
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currency of the United States or any other country.”71 This definition was added in 201772 and is the
only instance of “virtual currency” in Florida Statutes.
Federal Regulation of MSBs
The Financial Crimes Enforcement Network of the United States Department of Treasury (FinCEN)
serves as the nation’s financial intelligence unit and is charged with safeguarding the United States
financial system from the abuses of money laundering, terrorist financing, and other financial crimes.73
The basic concept underlying FinCEN's core activities is “follow the money” because criminals leave
financial trails as they try to launder the proceeds of crimes or attempt to spend their ill-gotten profits.74
To that end, FinCEN administers the Bank Secrecy Act (BSA).75 BSA regulations require banks and
other financial institutions, including MSBs, to take a number of precautions against financial crime.76
BSA regulations require financial institutions to establish an anti-money laundering program (such as
verifying customer identity), maintain certain records (such as transaction related data), and file reports
(such as suspicious activity reports and currency transaction reports) that have been determined to
have a high degree of usefulness in criminal, tax, and regulatory investigations, as well as in certain
intelligence and counter-terrorism matters.77
Generally, an MSB is required to register with FinCEN, regardless of whether the MSB is licensed with
the state, if it conducts more than $1,000 in business with one person in one or more transactions on
the same day, in one or more of the following services: money orders, traveler’s checks, check cashing,
currency dealing, or exchange.78 However, an MSB must register with FinCEN if it provides money
transfer services in any amount.79
BSA regulations define “money transmission services” as “the acceptance of currency, funds, or other
value that substitutes for currency from one person and the transmission of currency, funds, or other
value that substitutes for currency to another location or person by any means.”80 Depending on the
facts and circumstances surrounding a transaction, a person transmitting virtual currency may fall
under FinCEN’s BSA regulations.81
Federal law criminalizes money transmission if the money transmitting business:82
Is operated without a license in a state where such unlicensed activity is subject to criminal
sanctions;
Fails to register with FinCEN; or
Otherwise involves the transportation or transmission of funds that are known to have been
derived from a criminal offense or are intended to be used to promote or support unlawful
activity.
Effect of the Bill
Definitions (Section 2)
71 Id.
72 Ch. 2017-155, Laws of Fla.
73 FinCEN, What We Do, https://www.fincen.gov/what -we-do (last visited Jan. 13, 2022).
74 Id.
75 Many of the federalprovisions of the BSA have been codified in ch. 560, F.S., which has provided OFR with additional
compliance and enforcement tools.
76 FinCEN, supra note 73.
77 Id.
78 31 C.F.R. §§ 1010.100 and 1022.380.
79 Id.
80 31 C.F.R. § 1010.100 (emphasis added).
81 FinCEN Guidance, Application of FinCEN’s Regulations to Certain Business Models Involving Convertible Virtual
Currencies, FIN-2019-G001 (May 9, 2019), https://www.fincen.gov/sites/default/files/2019 -
05/FinCEN%20Guidance%20CV C%20FINAL% 20508.pdf (last visited Jan. 13, 2022); FinCEN Notice of Proposed
Rulemaking, supra note 53.
82 31 U.S.C. § 1960.
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The bill makes the following changes to definitions in ch. 560, F.S.:
Amends the definition of “electronic instrument” to replace the undefined term “money” with the
defined term “currency”. Leaving an undefined term such as “money” in statute may lead to
confusion as to whether the term includes virtual currency. The definition of “electronic
instrument” is also reworded for clarity.
Excludes virtual currency from the definition of “monetary value” in order to narrow the
regulation of virtual currency to only regulations for money transmitters but not other types of
licenses under ch. 560, F.S.
Amends the definition of “money transmitter” to expressly include virtual currency and to clarify
that a money transmitter license is only required for a person acting an intermediary between
two parties if the intermediary has the ability to unilaterally execute or indefinitely prevent a
transaction; neither person in a two-party transaction is required to be licensed.
Amends the definition of “payment instrument” to replace the undefined term “money” with the
defined term “currency”. Leaving an undefined term such as “money” in statute may lead to
confusion as to whether the term includes virtual currency. The definition of “payment
instrument” is also amended to clarify that the term means an instrument that is used for the
transmission, exchange, or payment of currency or monetary value, but a payment instrument is
not the currency or monetary value itself.
Amends the definition of “stored value” to replace the undefined term “funds” with the defined
term “currency”. Leaving an undefined term such as “funds” in statute may lead to confusion as
to whether the term includes virtual currency.
Adds the following definition of “virtual currency” – Virtual currency means a medium of
exchange in electronic or digital format that is not currency. The term does not include a
medium of exchange in electronic or digital format that is used:
o Solely within online gaming platforms with no market or application outside such gaming
platforms; or
o Exclusively as part of a consumer affinity or rewards program and can be applied solely
as payment for purchases with the issuer or other designated merchants but cannot be
converted into or redeemed for currency or another medium of exchange.
Prohibition on Unlicensed Activity (Section 5)
The bill amends the prohibition on unlicensed money transmitter activity and payment instrument
selling in order to better align the wording with the definition of payment instrument seller. One element
of the prohibition is that a person is doing such activity for compensation, and “compensation” includes
profit or loss on the exchange of currency. The bill adds that “compensation” includes profit or loss on
the exchange of monetary value or virtual currency.
Permissible Investments (Section 8)
The bill amends the permissible investments statute in relation to virtual currency. Under current law, a
money transmitter must possess permissible investments, such as cash and certificates of deposit, with
an aggregate market value of at least the aggregate face amount of all outstanding money
transmissions. Without an amendment to this statute, the effect would be to require a money
transmitter that transmits virtual currency to not only have control over the virtual currency being
transmitted but also hold the equivalent value in cash or other enumerated assets. Instead, the bill
would only require that, during the period of transmission, the money transmitter must hold virtual
currency of the same type and amount owed or obligated to the other location or person on the
receiving end of the transmission.
Required Records (Section 9)
The bill adds rulemaking authority for recordkeeping requirements related to virtual currency.
Conforming Changes (Sections 1, 3, 4, 6, 7, 9, 10)
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The bill amends the Financial Technology Sandbox in s. 559.952, F.S., in order to conform to changes
made to s. 560.204, F.S. The bill also conforms portions of ss. 560.123, 560.125, 560.208, 560.2085,
560.211, 560.212, F.S., to reflect the addition of virtual currency to money transmitter regulations.
Effective Date (Section 11)
The bill provides an effective date of January 1, 2023.
B. SECTION DIRECTORY:
Section 1. Amends s. 559.952, F.S., relating to Financial Technology Sandbox.
Section 2. Amends s. 560.103, F.S., relating to definitions.
Section 3. Amends s. 560.123, F.S., relating to Florida Control of Money Laundering in Money
Services Business Act.
Section 4. Amends s. 560.125, F.S., relating to unlicensed activity; penalties.
Section 5. Amends s. 560.204, F.S., relating to license required.
Section 6. Amends s. 560.208, F.S., relating to conduct of business.
Section 7. Amends s. 560.2085, F.S., relating to authorized vendors.
Section 8. Amends s. 560.210, F.S., relating to permissible investments.
Section 9. Amends s. 560.211, F.S., relating to required records.
Section 10. Amends s. 560.212, F.S., relating to financial liability.
Section 11. Provides an effective date of January 1, 2023.
II. FISCAL ANALYSIS & ECONOMIC IMPACT STATEMENT
A. FISCAL IMPACT ON STATE GOVERNMENT:
1. Revenues:
See Fiscal Comments.
2. Expenditures:
See Fiscal Comments.
B. FISCAL IMPACT ON LOCAL GOVERNMENTS:
1. Revenues:
None.
2. Expenditures:
None.
C. DIRECT ECONOMIC IMPACT ON PRIVATE SECTOR:
The bill’s overall impact on the private sector, while likely positive, is indeterminate. The bill provides
regulatory clarity as to the way in which virtual currency is regulated under ch. 560, F.S. To the extent
that the Espinoza case may have caused some businesses to become licensed out of an abundance of
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caution when buying and selling virtual currency in two-party transactions, the regulatory clarity
provided by the bill may result in such businesses foregoing licensure. Additionally, the bill may lead to
greater protection for consumers transacting in virtual currency through third-party intermediaries. The
regulatory clarity provided by the bill may lead to more money transmitter licensees, especially those
that deal in virtual currency. Businesses that apply for a money transmitter license would be subject to
fees for initial licensure ($375), biannual renewal ($750), fingerprinting of control persons
(approximately $65 per individual for initial fingerprinting plus $6 per individual biannually for fingerprint
retention), and examination expenses every 5 years (approximately $3,800).83
D. FISCAL COMMENTS:
The fiscal impact on OFR is indeterminate. The regulatory clarity provided by the bill may lead to more
money transmitter licensees, especially those that deal in virtual currency. This may increase revenues
in the Regulatory Trust Fund, though OFR would incur additional costs for examination expenses
associated with the new licensees. However, to the extent that the Espinoza case may have caused
some businesses to become licensed out of an abundance of caution when buying and selling virtual
currency in two-party transactions, the regulatory clarity provided by the bill may result in such
businesses foregoing licensure.
Since the potential number of additional licensees and corresponding expenses for oversight is
unknown, the fiscal impact on the Regulatory Trust Fund is indeterminate. OFR has noted that
additional staff and funding may be required in the future if the number of new licensees dealing in
virtual currency significantly increases beyond its capacity to absorb the additional workload.84
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:
The bill adds rulemaking authority for recordkeeping requirements related to virtual currency. Other
changes made by the bill may necessitate amendment to current rules.
C. DRAFTING ISSUES OR OTHER COMMENTS:
None.
IV. AMENDMENTS/ COMMITTEE SUBSTITUTE CHANGES
On December 1, 2021, the Insurance & Banking Subcommittee considered one amendment, which was
adopted, and reported the bill favorably as a committee substitute. The committee substitute amends the
definition of “virtual currency” to clarify the exclusion of consumer affinity or rewards programs.
The staff analysis has been updated to reflect the committee substitute.
83 Office of Financial Regulation (OFR), Agency Analysis of 2022 Senate Bill 486, pp. 9-10 (Nov. 19, 2021).
84 OFR, supra note 83, at p. 9.
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F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
CS/HB 273 2022
1 A bill to be entitled
2 An act relating to money services businesses; amending
3 s. 559.952, F.S.; revising exceptions for a licensee
4 during the Financial Technology Sandbox period;
5 amending s. 560.103, F.S.; revising and providing
6 definitions; amending s. 560.123, F.S.; revising t he
7 purpose of the Florida Control of Money Laundering in
8 Money Services Business Act; revising duties of money
9 services businesses; revising provisions related to
10 violations of money services business activities and
11 penalties for such violations; amending s. 560.125,
12 F.S.; revising provisions related to violations of
13 money services business activities and penalties for
14 such violations; amending s. 560.204, F.S.; revising
15 provisions related to certain prohibited activities
16 without a license; revising the definition of the term
17 "compensation"; amending s. 560.208, F.S.; revising
18 requirements for a money transmitter or payment
19 instrument seller to conduct business; amending s.
20 560.2085, F.S.; revising requirements for a written
21 contract between a money transmitter or payment
22 instrument seller and an authorized vendor; amending
23 s. 560.210, F.S.; providing requirements for a money
24 transmitter that receives virtual currency; excluding
25 virtual currency in the calculation of permissible
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26 investments under certain circumstances; amending s.
27 560.211, F.S.; revising recordkeeping requirements for
28 a money transmitter or payment instrument seller;
29 amending s. 560.212, F.S.; revising financial
30 liability requirements for a money transmitter or
31 payment instrument seller; providing an effective
32 date.
33
34 Be It Enacted by the Legislature of the State of Florida:
35
36 Section 1. Paragraph (a) of subsection (4) of section
37 559.952, Florida Statutes, is amended to read:
38 559.952 Financial Technology Sandbox.—
39 (4) EXCEPTIONS TO GENERAL LAW AND WAIVERS OF RULE
40 REQUIREMENTS.—
41 (a) Notwithstanding any other law, upon approval of a
42 Financial Technology Sandbox application, the following
43 provisions and corresponding rule requirements are not
44 applicable to the licensee during the sandbox period:
45 1. Section 516.03(1), except for the application fee, the
46 investigation fee, the requirement to provide the social
47 security numbers of control persons, evidence of liquid assets
48 of at least $25,000, and the office's authority to investigate
49 the applicant's background. The office may prorate the license
50 renewal fee for an extension granted under subsection (7).
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51 2. Section 516.05(1) and (2), except that the office shall
52 investigate the applicant's background.
53 3. Section 560.109, only to the extent that the section
54 requires the office to examine a licensee at least once every 5
55 years.
56 4. Section 560.118(2).
57 5. Section 560.125(1), only to the extent that the
58 subsection would prohibit a licensee from engaging in the
59 business of a money transmitter or payment instrument seller
60 during the sandbox period.
61 6. Section 560.125(2), only to the extent that the
62 subsection would prohibit a licensee from appointing an
63 authorized vendor during the sandbox period. Any authorized
64 vendor of such a licensee during the sandbox period remains
65 liable to the holder or remitter.
66 7. Section 560.128.
67 8. Section 560.141, except for s. 560.141(1)(a)1., 3., 7. -
68 10. and (b), (c), and (d).
69 9. Section 560.142(1) and (2), except that the office may
70 prorate, but may not entirely eliminate, the license renewal
71 fees in s. 560.143 for an extension granted under subsection
72 (7).
73 10. Section 560.143(2), only to the extent necessary for
74 proration of the renewal fee under subparagraph 9.
75 11. Section 560.204(1), only to the extent that the
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76 subsection would prohibit a licensee from engaging in, or
77 advertising that it engages in, the selling or issuing of
78 payment instruments or in the activity of a payment instrument
79 seller or money transmitter during the sandbox period.
80 12. Section 560.205(2).
81 13. Section 560.208(2).
82 14. Section 560.209, only to the extent that the office
83 may modify, but may not entirely eliminate, the net worth,
84 corporate surety bond, and collateral deposit amounts required
85 under that section. The modified amounts must be in such lower
86 amounts that the office determines to be commensurate with the
87 factors under paragraph (5)(c) and the maximum number of
88 consumers authorized to receive the financial product or service
89 under this section.
90 Section 2. Subsections (14), (21), (23), (29), and (35) of
91 section 560.103, Florida Statutes, are amended, and subsection
92 (36) is added to that section, to read:
93 560.103 Definitions.—As used in this chapter, the term:
94 (14) "Electronic instrument" means a card, tangible
95 object, or other form of electronic payment used for the
96 transmission, or payment, of money or the exchange of currency
97 or monetary value, including a stored value card or device that
98 contains a microprocessor chip, magnetic stripe, or other means
99 for storing information; that is prefunded; and for which the
100 value is decremented upon each use.
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101 (21) "Monetary value" means a medium of exchange, other
102 than virtual currency, regardless of whether it is or not
103 redeemable in currency.
104 (23) "Money transmitter" means a corporation, limited
105 liability company, limited liability partnership, or foreign
106 entity qualified to do business in this state which receives
107 currency, monetary value, a or payment instrument, or virtual
108 currency instruments for the purpose of acting as an
109 intermediary to transmit currency, monetary value, a payment
110 instrument, or virtual currency from one person to another
111 location or person transmitting the same by any means, including
112 transmission by wire, facsimile, electronic transfer, courier,
113 the Internet, or through bill payment services or other
114 businesses that facilitate such transfer within this country, or
115 to or from this country. The term includes only an intermediary
116 that has the ability to unilaterally execute or indefinitely
117 prevent a transaction.
118 (29) "Payment instrument" means a check, draft, warrant,
119 money order, travelers check, electronic instrument, or other
120 instrument used for the transmission, exchange, or payment of
121 currency money, or monetary value, regardless of whether it is
122 or not negotiable. The term does not include an instrument that
123 is redeemable by the issuer in merchandise or service, a credit
124 card voucher, or a letter of credit.
125 (35) "Stored value" means currency funds or monetary value
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126 represented in digital electronic format, regardless of whether
127 it is or not specially encrypted, and stored or capable of
128 storage on electronic media in such a way as to be retrievable
129 and transferred electronically.
130 (36) "Virtual currency" means a medium of exchange in
131 electronic or digital format that is not currency. The term does
132 not include a medium of exchange in electronic or digital format
133 that is used:
134 (a) Solely within online gaming platforms with no market
135 or application outside such gaming platforms; or
136 (b) Exclusively as part of a consumer affinity or rewards
137 program and can be applied solely as payment for purchases with
138 the issuer or other designated merchants but cannot be converted
139 into or redeemed for currency or another medium of exchange.
140 Section 3. Subsections (2), (3), and (4) and paragraphs
141 (b), (c), and (d) of subsection (8) of section 560.123, Florida
142 Statutes, are amended to read:
143 560.123 Florida Control of Money Laundering in Money
144 Services Business Act.—
145 (2) The purpose of this section is to require the
146 maintenance of certain records of transactions involving
147 currency, monetary value, or payment instruments, or virtual
148 currency in order to deter the use of a money services business
149 to conceal proceeds from criminal activity and to ensure the
150 availability of such records for criminal, tax, or regulatory
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151 investigations or proceedings.
152 (3) A money services business shall keep a record , as
153 prescribed by the commission, of each financial transaction
154 occurring in this state which it knows to involve currency ,
155 monetary value, a or other payment instrument, or virtual
156 currency as prescribed by the commission, having a value greater
157 than $10,000; to involve the proceeds of specified unlawful
158 activity; or to be designed to evade the reporting requirements
159 of this section or chapter 896. The money services business must
160 maintain appropriate procedures to ensure compliance with this
161 section and chapter 896.
162 (a) Multiple financial transactions shall be treated as a
163 single transaction if the money services business has knowledge
164 that they are made by or on behalf of any one person and result
165 in value cash in or value cash out totaling a value of more than
166 $10,000 during any day.
167 (b) A money services business may keep a record of any
168 financial transaction occurring in this state, regardless of the
169 value, if it suspects that the transaction involves the proceeds
170 of unlawful activity.
171 (c) The money services business must file a report with
172 the office of any records required by this subsection, at such
173 time and containing such information as required by rule. The
174 timely filing of the report required by 31 U.S.C. s. 5313 with
175 the appropriate federal agency shall be deemed compliance with
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176 the reporting requirements of this subsection unless the reports
177 are not regularly and comprehensively transmitted by the federal
178 agency to the office.
179 (d) A money services business, or officer, employee, or
180 agent thereof, that files a report in good faith pursuant to
181 this section is not liable to any person for loss or damage
182 caused in whole or in part by the making, filing, or
183 governmental use of the report, or any information contained
184 therein.
185 (4) A money services business must comply with the money
186 laundering, enforcement, and reporting provisions of s. 655.50
187 relating to reports of transactions involving currency
188 transactions and payment instruments, as applicable, and of
189 chapter 896 concerning offenses relating to financial
190 transactions.
191 (8)
192 (b) A person who willfully violates any provision of this
193 section, if the violation involves:
194 1. Currency, monetary value, or payment instruments, or
195 virtual currency of a value exceeding $300 but less than $20,000
196 in any 12-month period, commits a felony of the third degree,
197 punishable as provided in s. 775.082, s. 775.083, or s. 775.084.
198 2. Currency, monetary value, or payment instruments, or
199 virtual currency of a value totaling or exceeding $20,000 but
200 less than $100,000 in any 12-month period, commits a felony of
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201 the second degree, punishable as provided in s. 775.082, s.
202 775.083, or s. 775.084.
203 3. Currency, monetary value, or payment instruments, or
204 virtual currency of a value totaling or exceeding $100,000 in
205 any 12-month period, commits a felony of the first degree,
206 punishable as provided in s. 775.082, s. 775.083, or s. 775.084.
207 (c) In addition to the penalties authorized by s. 775.082,
208 s. 775.083, or s. 775.084, a person who has been convicted of,
209 or entered a plea of guilty or nolo contendere, regardless of
210 adjudication, to having violated paragraph (b) may be sentenced
211 to pay a fine of up to the greater of $250,000 or twice the
212 value of the currency, monetary value, or payment instruments,
213 or virtual currency whichever is greater, except that on a
214 second or subsequent conviction for or plea of guilty or nolo
215 contendere, regardless of adjudication, to a violation of
216 paragraph (b), the fine may be up to the greater of $500,000 or
217 quintuple the value of the currency, monetary value, or payment
218 instruments, or virtual currency whichever is greater.
219 (d) A person who violates this section is also liable for
220 a civil penalty of up to not more than the greater of the value
221 of the currency, monetary value, or payment instruments, or
222 virtual currency involved or $25,000.
223 Section 4. Subsections (5), (6), and (7) of section
224 560.125, Florida Statutes, are amended to read:
225 560.125 Unlicensed activity; penalties.—
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226 (5) A person who violates this section, if the violation
227 involves:
228 (a) Currency, monetary value, or payment instruments, or
229 virtual currency of a value exceeding $300 but less than $20,000
230 in any 12-month period, commits a felony of the third degree,
231 punishable as provided in s. 775.082, s. 775.083, or s. 775.084.
232 (b) Currency, monetary value, or payment instruments, or
233 virtual currency of a value totaling or exceeding $20,000 but
234 less than $100,000 in any 12-month period, commits a felony of
235 the second degree, punishable as provided in s. 775.082, s.
236 775.083, or s. 775.084.
237 (c) Currency, monetary value, or payment instruments, or
238 virtual currency of a value totaling or exceeding $100,000 in
239 any 12-month period, commits a felony of the first degree,
240 punishable as provided in s. 775.082, s. 775.083, or s. 775.084.
241 (6) In addition to the penalties authorized by s. 775.082,
242 s. 775.083, or s. 775.084, a person who has been convicted of,
243 or entered a plea of guilty or nolo contendere to, having
244 violated this section may be sentenced to pay a fine of up to
245 the greater of $250,000 or twice the value of the currency,
246 monetary value, or payment instruments, or virtual currency
247 whichever is greater, except that on a second or subsequent
248 violation of this section, the fine may be up to the greater of
249 $500,000 or quintuple the value of the currency, monetary value,
250 or payment instruments, or virtual currency whichever is
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251 greater.
252 (7) A person who violates this section is also liable for
253 a civil penalty of up to the greater of not more than the value
254 of the currency, monetary value, or payment instruments, or
255 virtual currency involved or $25,000, whichever is greater.
256 Section 5. Subsection (1) of section 560.204, Florida
257 Statutes, is amended to read:
258 560.204 License required.—
259 (1) Unless exempted, a person may not engage in, or in any
260 manner advertise that they engage in, the selling or issuing of
261 payment instruments or in the activity of a payment instrument
262 seller or money transmitter, for compensation, without first
263 obtaining a license under this part. For purposes of this
264 subsection section, the term "compensation" includes profit or
265 loss on the exchange of currency, monetary value, or virtual
266 currency.
267 Section 6. Subsections (5) and (6) of section 560 .208,
268 Florida Statutes, are amended to read:
269 560.208 Conduct of business.—In addition to the
270 requirements specified in s. 560.1401, a licensee under this
271 part:
272 (5) Shall, in the normal course of business, ensure that
273 currency, monetary value, payment instruments, or virtual
274 currency money transmitted is available to the designated
275 recipient within 10 business days after receipt.
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276 (6) Shall immediately upon receipt of currency, monetary
277 value, a or payment instrument, or virtual currency provide a
278 confirmation or sequence number to the customer verbally, by
279 paper, or electronically.
280 Section 7. Paragraph (b) of subsection (2) of section
281 560.2085, Florida Statutes, is amended to read:
282 560.2085 Authorized vendors.—A licensee under this part
283 shall:
284 (2) Enter into a written contract, signed by the licensee
285 and the authorized vendor, which:
286 (b) Includes contract provisions that require the
287 authorized vendor to:
288 1. Report to the licensee, immediately upon discovery, the
289 theft or loss of currency, monetary value, a payment instrument,
290 or virtual currency received for a transmission or for a payment
291 instrument sold;
292 2. Display a notice to the public, in such form as
293 prescribed by rule, that the vendor is the authorized vendor of
294 the licensee;
295 3. Remit all amounts owed to the licensee for all
296 transmissions accepted and all payment instruments sold in
297 accordance with the contract between the licensee and the
298 authorized vendor;
299 4. Hold in trust all currency, monetary value, or payment
300 instruments, or virtual currency received for transmissions or
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301 for the purchase of payment instruments from the time of receipt
302 by the licensee or authorized vendor until the time the
303 transmission obligation is completed;
304 5. Not commingle the currency, monetary value, payment
305 instruments, or virtual currency money received for
306 transmissions accepted or payment instruments sold on behalf of
307 the licensee with the assets money or property of the authorized
308 vendor, except for making change in the ordinary course of the
309 vendor's business;, and
310 6. Ensure that the currency, monetary value, payment
311 instruments, or virtual currency received for transmissions
312 accepted or payment instruments sold money is accounted for at
313 the end of the business day;
314 7.6. Consent to examination or investigation by the
315 office;
316 8.7. Adhere to the applicable state and federal laws and
317 rules pertaining to a money services business; and
318 9.8. Provide such other information or disclosure as may
319 be required by rule.
320 Section 8. Subsections (2) and (3) of section 560.210,
321 Florida Statutes, are renumbered as subsections (3) and (4),
322 respectively, and a new subsection (2) is added to that section
323 to read:
324 560.210 Permissible investments.—
325 (2) Each money transmitter that receives virtual currency,
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326 either directly or through an authorized vendor, for the purpose
327 of transmitting such virtual currency from one person to another
328 location or person must at all times, until the transmission
329 obligation is completed, hold virtual currency of the same type
330 and amount owed or obligated to the other location or person.
331 Virtual currency received and held under this subsection is not
332 included in the amount of outstanding money transmissions for
333 purposes of calculating the permissible investments required by
334 subsection (1).
335 Section 9. Paragraphs (a), (e), and (f) of subsection (1)
336 of section 560.211, Florida Statutes, are amended, and paragraph
337 (j) is added to subsection (1) of that section, to read:
338 560.211 Required records.—
339 (1) In addition to the record retention requirements under
340 s. 560.1105, each licensee under this part must make, keep, and
341 preserve the following books, accounts, records, and documents
342 for 5 years:
343 (a) A daily record of payment instruments sold and of
344 currency, monetary value, payment instruments, or virtual
345 currency money transmitted.
346 (e) Records of outstanding payment instruments and of
347 currency, monetary value, payment instruments, or virtual
348 currency money transmitted.
349 (f) Records of each payment instrument paid and of
350 currency, monetary value, payment instruments, or virtual
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351 currency transmitted money transmission delivered.
352 (j) Any additional records, as prescribed by rule, related
353 to virtual currency.
354 Section 10. Section 560.212, Florida Statutes, is amended
355 to read:
356 560.212 Financial liability.—A licensee under this part is
357 liable for the payment of all currency, monetary value, payment
358 instruments, or virtual currency money transmitted and payment
359 instruments that it sells, in whatever form and whether directly
360 or through an authorized vendor, as the maker, drawer, or
361 principal thereof, regardless of whether such items are item is
362 negotiable or nonnegotiable.
363 Section 11. This act shall take effect January 1, 2023.
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HB 381
HOUSE OF REPRESENTATIVES STAFF ANALYSIS
BILL #: HB 381 Breach of Bond Costs
SPONSOR(S): Maney
TIED BILLS: IDEN./SIM. BILLS: SB 1182
REFERENCE ACTION ANALYST STAFF DIRECTOR or
BUDGET/POLICY CHIEF
1) Criminal Justice & Public Safety Subcommittee 17 Y, 0 N Padgett Hall
2) Commerce Committee Hinshelwood Hamon
3) Judiciary Committee
SUMMARY ANALYSIS
Bail is a common monetary condition of pretrial release, governed by ch. 903, F.S. Bail requires an arrestee to
pay a set sum of money to the court to be released from jail. As an alternative to posting the entire bail amount,
a defendant may use a criminal surety bail bond executed by a bail bond agent. To use the services of a bail
bond agent, an incarcerated person must pay a nonrefundable fee to the bail bond agent equal to 10 percent
of the bond amount set by the court. This contract obligates the bail bond agent to ensure a defendant appears
at all required court appearances. If a defendant fails to appear at a required court appearance, the bond is
breached, and the court is required to issue an order forfeiting the bond posted by the bail bond agent.
A bail bond agent is exonerated of any further liability on a bail bond if, prior to a breach of the bond, the bail
bond agent agrees to pay the transportation cost of returning a defendant who is incarcerated in another
county jail or prison to the jurisdiction of the court. Surrendering an incarcerated defendant prior to the breach
of the bond eliminates the need for a bail bond agent to go through the bond forfeiture and discharge process,
and absolves the bail bond agent of future liability on the bond. The term “transportation cost” is not defined in
statute. However, the Second District Court of Appeal has interpreted the term narrowly, applying only to actual
transportation expenses. This does not include ancillary costs associated with transportation, such as the
salary of the officers involved in transporting the defendant, vehicle costs, meals, and lodging.
The “jurisdiction” to which the bail bond agent must return the defendant under s. 903.21(3), F.S., is any county
within the judicial circuit of the court which issued the bond. For example, to be exonerated from liability on the
bond, if a defendant is released on bail in Franklin County (Apalachicola) and is subsequently arrested and
detained in Duval County (Jacksonville), the bail bond agent is only required to pay transportation costs to
return the defendant to Jefferson County, the nearest county to Jacksonville that is in the same judicial circuit
as Franklin County. The Franklin County Sheriff’s Office is then responsible for the costs associated with
transporting the defendant from Jefferson County to Franklin County.
HB 381 amends the definition of “jurisdiction” in s. 903.21(3), F.S., to require a bail bond agent to transport an
incarcerated defendant to the county from which the defendant was released on bail, rather than any county in
the same judicial circuit, in order to be exonerated from liability on a bond prior to a breach. The bill also
requires a bail bond agent to pay all costs and expenses incurred in returning a defendant to the court’s
jurisdiction, rather than just the cost of transportation. Requiring a bail bond agent to transport to a defendant
to the county where he or she was released on bond shifts the cost of transporting a defendant from the sheriff
to the bail bond agent who is profiting off the bond.
The bill may reduce expenditures incurred by sheriffs from transporting a defendant from a county within a
judicial circuit to the county from which the defendant was released on bail.
The bill provides an effective date of July 1, 2022.
This docum ent does not reflect the intent or official position of the bill sponsor or House of Representatives .
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FULL ANALYSIS
I. SUBSTANTIVE ANALYSIS
A. EFFECT OF PROPOSED CHANGES:
Background
Pretrial Release
Article I, section 14, of the Florida Constitution provides, with some exceptions, that every person
charged with a crime or violation of a municipal or county ordinance is entitled to pretrial release on
reasonable grounds. A judge is required to presume that nonmonetary conditions 1 are sufficient for any
person to be granted pretrial release who is not charged with a dangerous crime. 2 Although a court has
the authority to impose any number of pretrial release conditions, it must impose conditions of release
that require the defendant to refrain from criminal activity and to refrain from contact with the victim.3 If
a defendant violates the pretrial release conditions, he or she may be arrested and held to answer
before the court having jurisdiction to try the defendant.4
Bail Bonds
Issuance of a Bail Bond
Bail is a common monetary condition of pretrial release that requires an arrestee to pay a set sum of
money to the court to be released from jail.5 As an alternative to posting the entire bail amount, a
defendant may use a criminal surety bail bond executed by a bail bond agent licensed under ch. 648,
F.S. 6 Generally, to use the services of a bail bond agent, an incarcerated person must pay a
nonrefundable fee to the bail bond agent equal to 10 percent of the bond amount set by the court.7 This
contract obligates the bail bond agent to ensure a defendant appears at all required court
appearances.8
Breach and Forfeiture of a Bail Bond
If a defendant fails to appear in court or violates any pretrial release conditions, he or she breaches the
bond and a court generally must declare the bond and any money deposited to be forfeited. 9 However,
this forfeiture requirement does not apply, even if there is a breach of the bond, when the information,
indictment, or affidavit in the criminal case was not filed within six months of arrest, or the clerk of the
court failed to provide the agent with at least 72 hours’ notice of the time and date of the required
appearance for the defendant.10 Within five days after forfeiture of a bond, the court must mail or
electronically transmit a notice to the bail bond agent and the surety company. 11 The value of the
1 Nonmonetary conditions include any condition that does not require the payment of a financial guarantee, such as releasing th e
arrestee on his or her recognizance, placement in a pretrial release program, or placing restrictions on the arrestee’s trave l, association,
or place of abode. See Fla. R. Crim. P. 3.131.
2 S. 907.041(3), F.S. “Dangerous crimes” include: arson; aggravated assault; aggravated battery; illegal use of explosives; child a b u s e
or aggravated child abuse; abuse or aggravated abuse of an e lderly person or disabled adult; aircraft piracy; kidnapping; homicide;
manslaughter; sexual battery; robbery; carjacking; lewd, lascivious, or indecent assault or act upon or in presence of a chil d u n d e r th e
age of 16 years; sexual activity with a child, who is 12 years of age or older but less than 18 years of age, by or at solicitation of pers o n
in familial or custodial authority; burglary of a dwelling; stalking and aggravated stalking; act of domestic violence as def ined in s.
741.28, F.S.; home invasion robbery; act of terrorism as defined in s. 775.30, F.S.; manufacturing any substances in violation of chapter
893; attempting or conspiring to commit any such crime; and human trafficking. s. 907.041, F.S.
3 S. 903.047, F.S.
4 Ss. 903.0471 and 907.041, F.S.
5 S. 903.011, F.S.
6 S. 903.105, F.S.
7 Id. See also Florida Dept. of Financial Services, Bail Bonds Overview
https://www.myfloridacfo.com/division/consumers/understandingcoverage/bailbondsoverview.htm (last visited Jan. 13, 2022).
8 S. 903.045, F.S.
9 S. 903.26(2)(a), F.S.
10 S. 903.26(1), F.S.
11 S. 903.26(2)(a), F.S.
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forfeited bond must be paid by the bail bond agent within 60 days of the date the notice was mailed or
transmitted.12
Exoneration of Liability
A bail bond agent is exonerated of any further liability on a bail bond if, prior to a breach of the bond,
the bail bond agent agrees to pay the transportation cost of returning a defendant who is incarcerated in
another county jail or prison to the jurisdiction of the court. 13 Surrendering an incarcerated defendant
prior to the breach of the bond eliminates the need for a bail bond agent to go through the bond
forfeiture and discharge process, and absolves the bail bond agent of future liability on the bond. The
term “transportation cost” is not defined in statute. However, the Second District Court of Appeal has
interpreted the term narrowly, applying only to actual transportation expenses.14 This does not include
ancillary costs associated with transportation, such as the salary of the officers involved in transporting
the defendant, vehicle costs, meals, and lodging.15
The “jurisdiction” to which the bail bond agent must return the defendant under s. 903.21(3), F.S., is any
county within the judicial circuit of the court which issued the bond. 16 This means a bail bond agent is
only required to pay the cost to return a defendant to the closest county from where the defendant is
incarcerated which lies within the same judicial circuit as the court that issued the bond. 17 For example,
to be exonerated from liability on the bond, if a defendant is released on bail in Franklin County
(Apalachicola) and is subsequently arrested and detained in Duval County (Jacksonville), the bail bond
agent is only required to pay transportation costs to return the defendant to Jefferson County, the
nearest county to Jacksonville that is in the same judicial circuit as Franklin County. The Franklin
County Sheriff’s Office is then responsible for the costs associated with transporting the defendant the
remaining 93 miles from Jefferson County to Franklin County. 18
Effect of Proposed Changes
HB 381 amends the definition of “jurisdiction” in s. 903.21(3), F.S., to require a bail bond agent to
transport an incarcerated defendant to the county from which the defendant was released on bail,
rather than any county in the same judicial circuit, in order to be exonerated from liability on a bond
prior to a breach. The bill also requires a bail bond agent to pay all costs and expenses incurred in
returning a defendant to the court’s jurisdiction, rather than just the cost of transportation. Requiring a
12 Id.
13 S. 903.21(3), F.S.
14 Easy Bail Bonds v. Polk County, 784 So. 2d 1173, 1177 (Fla. 2d DCA 2001).
15 Id. at 1176.
16 S. 903.21(3), F.S.
17
Section 26.021, F.S., provides Florida’s circuit courts are divided into 20 judicial circuits as follows:
First Circuit - Escambia, Okaloosa, Santa Rosa and Walton Counties.
Second Circuit - Franklin, Gadsden, Jefferson, Leon, Liberty and Wakulla Counties.
Third Circuit - Columbia, Dixie, Hamilton, Lafayette, Madison, Suwannee and Taylor Counties.
Fourth Circuit - Clay, Duval and Nassau Counties.
Fifth Circuit - Citrus, Hernando, Lake, Marion and Sumter
Sixth Circuit - Pasco and Pinellas Counties.
Seventh Circuit - Flagler, Putnam, St. Johns and Volusia Counties.
Eighth Circuit - Alachua, Baker, Bradford, Gilchrist, Levy and Union Counties.
Ninth Circuit - Orange and Osceola Counties.
Tenth Circuit - Hardee, Highlands and Polk Counties.
Eleventh Circuit - Miami-Dade County.
Twelfth Circuit - DeSoto, Manatee and Sarasota Counties.
Thirteenth Circuit – Hillsborough County.
Fourteenth Circuit - Bay, Calhoun, Gulf, Holmes, Jackson and Washington Counties.
Fifteenth Circuit - Palm Beach County.
Sixteenth Circuit – Monroe County.
Seventeenth Circuit – Broward County.
Eighteenth Circuit - Brevard and Seminole Counties.
Nineteenth Circuit - Indian River, Martin, Okeechobee and St. Lucie Counties.
Twentieth Circuit - Charlotte, Collier, Glades, Hendry and Lee Counties.
18 Google Maps, http://www.google.com/maps/dir (last visited Jan. 13, 2022).
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DATE: 1/17/2022
bail bond agent to transport a defendant to the county where he or she was released on bond shifts the
cost of transporting a defendant from the sheriff to the bail bond agent who is profiting off the bond.
The bill provides an effective date of July 1, 2022.
B. SECTION DIRECTORY:
Section 1: Amends s. 903.21, F.S., relating to method of surrender; exoneration of obligors.
Section 2: Provides an effective date of July 1, 2022.
II. FISCAL ANALYSIS & ECONOMIC IMPACT STATEMENT
A. FISCAL IMPACT ON STATE GOVERNMENT:
1. Revenues:
None.
2. Expenditures:
None.
B. FISCAL IMPACT ON LOCAL GOVERNMENTS:
1. Revenues:
None.
2. Expenditures:
The bill may reduce expenditures incurred by sheriffs from transporting a defendant from a county
within a judicial circuit to the county from which a defendant was released on bail.
C. DIRECT ECONOMIC IMPACT ON PRIVATE SECTOR:
The bill may require a bail bond agent to transport a defendant a greater distance, thereby shifting the
cost of transporting a defendant from the sheriff to the bail bond agent.
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:
Not applicable.
C. DRAFTING ISSUES OR OTHER COMMENTS:
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None.
IV. AMENDMENTS/COMMITTEE SUBSTITUTE CHANGES
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F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
HB 381 2022
1 A bill to be entitled
2 An act relating to breach of bond costs; amending s.
3 903.21, F.S.; requiring sureties to pay costs and
4 expenses incurred in returning a defendant to the
5 jurisdiction of the court; revising the definition of
6 the term "jurisdiction" to which the defendant must be
7 returned; providing an effective date.
8
9 Be It Enacted by the Legislature of the State of Florida:
10
11 Section 1. Subsection (3) of section 903.21, Florida
12 Statutes, is amended to read:
13 903.21 Method of surrender; exoneration of obligors. —
14 (3) The surety shall be exonerated of liability on the
15 bond if it is determined prior to breach of the bond that the
16 defendant is in any jail or prison and the surety agrees in
17 writing to pay the costs and expenses incurred in transportation
18 cost of returning the defendant to the jurisdiction of the
19 court. For purposes of this subsection, "jurisdiction" means the
20 county from which the defendant was released on bail within the
21 judicial circuit as prescribed by law.
22 Section 2. This act shall take effect July 1, 2022.
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hb0381-00
HB 789
HOUSE OF REPRESENTATIVES STAFF ANALYSIS
BILL #: HB 789 Lifeline Services
SPONSOR(S): Payne
TIED BILLS: IDEN./SIM. BILLS:
REFERENCE ACTION ANALYST STAFF DIRECTOR or
BUDGET/POLICY CHIEF
1) Tourism, Infrastructure & Energy Subcommittee 15 Y, 0 N Johnson Keating
2) Commerce Committee Johnson Hamon
SUMMARY ANALYSIS
Since 1985, the Lifeline program (Lifeline) has provided telecommunications service discounts for qualifying
low-income consumers. The Federal Communications Commission (FCC) has designated the Universal
Service Administrative Company (USAC), an independent not-for-profit corporation, as the program’s
administrator. Consumers can qualify for Lifeline either through program-based or income-based eligibility
standards.
In Florida, the Public Service Commission (PSC) oversees Lifeline. Under Florida law, an eligible
telecommunications carrier (ETC) must provide Lifeline to qualified residential subscribers. Florida law
provides for automatic enrollment in Lifeline for individuals already enrolled in a qualifying program.
The bill updates Florida’s Lifeline statute to be consistent with federal Lifeline regulations. In summary, the bill:
Clarifies that an ETC must notify a Lifeline subscriber of impending termination of Lifeline service if it
has reason to believe that the subscriber no longer qualifies for Lifeline.
Provides that a Lifeline subscriber upon request, must provide proof of continued eligibility for Lifeline to
the ETC, the FCC, or the FCC’s designee.
Removes obsolete references to state agencies no longer involved in Lifeline.
Clarifies that the only government entities involved in Lifeline are the PSC, the Department of Children
and Families, and the FCC.
Removes state standards for the provision of Lifeline that are inconsistent with the FCC’s ETC eligibility
requirements.
Authorizes certain information exempt from public records laws to be released to the FCC or its
designee as required to administer Lifeline.
The bill does not have a fiscal impact on state or local governments.
The bill has an effective date of July 1, 2022.
This docum ent does not reflect the intent or official position of the bill sponsor or House of Representatives .
STORAGE NAME: h0789b.COM
DATE: 1/14/2022
FULL ANALYSIS
I. SUBSTANTIVE ANALYSIS
A. EFFECT OF PROPOSED CHANGES:
Current Situation
Lifeline Program
Since 1985, the Lifeline program (Lifeline) has provided telecommunications service discounts for
qualifying low-income consumers. Lifeline’s initial goal was to ensure that all Americans had the
opportunity and security that basic phone service provides. Over time, that goal has evolved to include
broadband Internet service. Qualifying households can receive up to a $9.25 discount on their monthly
phone or broadband Internet bills from wireline service providers that have been designated as eligible
telecommunications carriers (ETCs). Alternatively, consumers may choose to receive monthly wireless
minutes and/or measured data service from designated wireless providers. 1
The Federal Communications Commission (FCC) establishes rules governing Lifeline. The FCC has
designated the Universal Service Administrative Company (USAC), an independent not-for-profit
corporation, as Lifeline’s administrator. USAC is responsible for data collection and maintenance,
support calculation, and disbursement for Lifeline.2
Consumers may qualify to participate in Lifeline either through program-based or income-based
eligibility standards. Program-based eligibility is determined by a customer’s enrollment in specific
qualifying programs. Customers can qualify for Lifeline by being enrolled in any of the following
programs:
Supplemental Nutrition Assistance Program (SNAP)
Medicaid
Federal Public Housing Assistance
Supplemental Security Income
Veterans or Survivors Pension Program
Bureau of Indian Affairs Programs, including Tribal Temporary Assistance to Needy Families,
Head Start Subsidy, and National School Lunch Program.3
Consumers whose total household income is less than 135 percent of the Federal Poverty Guidelines
may participate in Lifeline under the income-based standard. The Federal Poverty Guidelines are
annually updated by the United States Department of Health and Human Services.4
Florida Lifeline Law
In Florida, the Public Service Commission (PSC) oversees Lifeline. Under Florida law, an ETC5 must
provide Lifeline service to qualified residential subscribers, as defined in the ETC's published
schedules.6
Each local exchange telecommunications company7 with more than one million access lines and which
is designated as an ETC must, and any wireless service provider designated as an ETC8 may, upon
1 Public Service Commission (PSC), 2021 Florida Lifeline Assistance Report, December 2021, p. 3.
http://floridapsc.com/Files/PDF/Publications/Reports/Telecommunication/LifelineReport/2021.pdf (last visited Dec. 16, 2021)
2 Id.
3 Id.
4 Id. at 4.
5 Section 364.10(1)(a), F.S., defines the term “eligible telecommunications carrier” to mean a telecommunications company, as defined
by s. 364.02, F.S., which is designated as an eligible telecommunications carrier by the PSC pursuant to 47 C.F.R. s. 54.201.
6 S. 364.10(1)(a), F.S.
7 Section 364.02(8), F.S., defines the term “local exchange telecommunications company” to mean any company certificated by the
commission to provide local exchange telecommunications service in this state on or before June 30, 1995.
8 Since 2016, no wireline carriers in Florida have had more than a million access lines. Wireless ETCs are given more flexibility in that
they “may” provide Lifeline services at the 150 percent threshold. However, it is unlikely that any wireless ETC is currently qualifying
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filing a notice of election to do so with the PSC, provide Lifeline to any otherwise eligible customer or
potential customer whose household income is 150 percent or less of the federal poverty guidelines for
Lifeline. The Office of Public Counsel (OPC)9 certifies and maintains claims submitted by customers for
Lifeline eligibility under the income test.10 Customers may also be eligible for Lifeline under the eligibility
standards established by federal law based on participation in certain low-income assistance
programs.11
Additionally, each intrastate interexchange telecommunications company12 must file or publish a
schedule providing at a minimum the intrastate interexchange telecommunications company's current
Lifeline benefits and exemptions to Lifeline customers who meet the income eligibility test. 13
Each state agency which provides benefits to persons eligible for Lifeline service, in cooperation with
the Department of Children and Families (DCF), the Department of Education (DOE), the PSC, the
OPC, and ETCs must develop procedures to promote Lifeline participation. The departments, the PSC,
and OPC may exchange sufficient information with the appropriate ETCs, such as a person's name,
date of birth, service address, and telephone number, so that the ETCs can identify and enroll an
eligible person in Lifeline. This information is confidential and exempt from public disclosure but may be
released to the applicable ETC for purposes of determining eligibility and enrollment in the Lifeline
programs.14
If any state agency determines that a person is eligible for Lifeline services, the agency must
immediately forward the information to the PSC to ensure that the person is automatically enrolled in
the program with the appropriate ETC. The state agency must include an option for an eligible
customer to choose not to subscribe to the Lifeline service. The PSC and DCF must adopt rules
creating procedures to automatically enroll eligible customers in Lifeline service. 15
Current law requires the PSC, DCF, OPC, and each ETC offering Lifeline to convene a workgroup to
discuss how the eligible subscriber information will be shared, the obligations of each party with respect
to the use of that information, and the procedures to be implemented to increase enrollment and verify
eligibility.16
Under Florida law, an ETC must notify a Lifeline subscriber of impending termination of Lifeline service
if the ETC reasonably believes that the subscriber no longer qualifies for Lifeline service. This
notification must be sent in a letter that is separate from the subscriber's bill. The ETC must allow a
subscriber 60 days following the date of the pending termination letter to demonstrate continued
eligibility, and the subscriber must present proof of continued eligibility. The ETC may transfer a
subscriber off of Lifeline service if the subscriber fails to demonstrate continued eligibility. 17
Lifeline Modernization
In April 2016, the FCC released its Lifeline Modernization Order (2016 Order) to modernize Lifeline by
including broadband as a supported service, designating minimum service standards for Lifeline, and
establishing the National Verifier.18
customers using this expanded criterion because those customers would not qualify for reimbursement from USAC under the 135
percent guideline.
9 The Office of Public Counsel provides representation for the people of the state in proceedings in front of the PSC. (S. 350.0611,
F.S.).
10 S. 364.10(2)(a), F.S.
11 S. 364.10(2)(a), F.S.
12 Section 364.02 (7) defines the term “intrastate interexchange telecommunications company” to mean any entity that provides
intrastate interexchange telecommunications services.
13 S. 364.10(2)(a), F.S.
14 S. 364.10(2)(g)1., F.S.
15 S. 364.10(2)(g)2., F.S.
16 S. 364.10(2)(g)3., F.S.
17 S. 364.10(1)(e), F.S.
18 PSC supra note 1 at 15.
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Prior to the FCC’s 2016 Order, a state that mandated Lifeline support could establish its own
qualification criteria. Therefore, a state could have income eligibility standards different from the FCC’s
or include additional state qualifying programs. The FCC’s 2016 Order eliminated this provision to
simplify the administration of the Lifeline program and establish eligibility criteria that do not vary from
state to state.19
Further, the 2016 Order directed the USAC to develop a national Lifeline eligibility verifier as a way to
fight waste, fraud, and abuse. The National Verifier’s purpose is to determine initial subscriber eligibility,
conduct annual recertification, populate a national database consisting of Lifeline customers, and
provide support payments to providers serving these customers.20
The National Verifier’s efficiency is contingent upon the establishment of automated verification
interface processes connected to qualifying program databases. To assist in Florida’s transition to the
National Verifier, in 2019, the PSC coordinated an informal meeting between DCF and USAC. The
meeting established the groundwork for an automated verification process that would allow USAC to
interface with DCF’s qualifying program database. The DCF database would provide USAC with
confirmation that a customer is a participant in a qualifying program without revealing the program itself
or any other customer information. Once a customer is verified as a qualifying program participant
through this process, they are enrolled in the Lifeline program with no need for any further
documentation. As of January 2021, USAC’s connection to the DCF database has been established.21
Effect of the Bill
The bill conforms Florida’s Lifeline laws to be consistent with federal Lifeline regulations.
The bill clarifies that an ETC must notify a Lifeline subscriber of impending termination of Lifeline
service if it has reason to believe that the subscriber no longer qualifies for Lifeline service. The bill
requires the subscriber to provide proof of continued eligibility for Lifeline service upon request to the
ETC, the FCC, or the FCC’s designee.
The bill also removes references to OPC and DOE because neither entity remains involved in Lifeline.
The bill clarifies that the only entities involved in Lifeline are the PSC, DCF, and the FCC. The bill also
eliminates state eligibility standards that conflict with the FCC’s eligibility standards.
The bill also removes an obsolete Lifeline working group consisting of the PSC, DCF, OPC, and ETCs
to discuss procedures regarding the implementation the Lifeline program.
The bill amends the Lifeline public records exemption, authorizing certain information to be released to
the FCC or its designee as required to administer the program.
The bill has an effective date of July 1, 2022.
B. SECTION DIRECTORY:
Section 1 Amends s. 364.10, F.S., relating to Lifeline Service.
Section 2 Amends s. 364.107, F.S., relating to a public records exemption for Lifeline Assistance
Plan participants.
Section 3 Provides an effective date.
II. FISCAL ANALYSIS & ECONOMIC IMPACT STATEMENT
19 Id.
20 Id. at 17.
21 Id.
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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 impact county or municipal governments.
2. Other:
None.
B. RULE-MAKING AUTHORITY:
The bill repeals a requirement that the PSC and DCF adopt rules creating procedures to automatically
enroll eligible customers in Lifeline service.
The PSC may need to revise its existing Lifeline rules to conform to provisions of the bill.
C. DRAFTING ISSUES OR OTHER COMMENTS:
None.
IV. AMENDMENTS/COMMITTEE SUBSTITUTE CHANGES
Not applicable.
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DATE: 1/14/2022
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 789 2022
1 A bill to be entitled
2 An act relating to Lifeline services; amending s.
3 364.10, F.S.; removing a provision requiring eligible
4 telecommunications carriers to provide a specified
5 number of days to allow a subscriber to demonstrate
6 continued eligibility after a termination letter is
7 sent; requiring subscribers to present proof of
8 continued eligibility upon request of specified
9 entities; removing provisions that specify
10 circumstances under which a telecommunications carrier
11 must credit a consumer's bill with the Lifeline
12 Assistance credit; removing provisions specifying
13 conditions under which certain telecommunications
14 carriers and commercial mobile radio service providers
15 may or must provide Lifeline services to specified
16 customers; removing the Department of Education and
17 the Office of Public Counsel from being entities with
18 whom state agencies must cooperate in developing
19 procedures to promote Lifeline participation;
20 providing that certain information is exempt as well
21 as confidential; revising procedures that state
22 agencies must use in determining a person's
23 eligibility for a Lifeline qualifying program;
24 amending s. 364.107, F.S.; authorizing certain
25 confidential and exempt information to be released to
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HB 789 2022
26 the Federal Communications Commission or designee;
27 providing an effective date.
28
29 Be It Enacted by the Legislature of the State of Florida:
30
31 Section 1. Paragraphs (e) and (f) of subsection (1) and
32 subsection (2) of section 364.10, Florida Statutes, are amended
33 to read:
34 364.10 Lifeline service.—
35 (1)
36 (e)1. An eligible telecommunications carrier must notify a
37 Lifeline subscriber of impending termination of Lifeline service
38 if the company has a reasonable basis for believing that the
39 subscriber no longer qualifies for the service. Notification of
40 pending termination must be in the form of a letter that is
41 separate from the subscriber's bill.
42 2. An eligible telecommunications carrier shall allow a
43 subscriber 60 days following the date of the pending termination
44 letter to demonstrate continued eligibility. The subscriber must
45 present proof of continued eligibility upon request of the
46 eligible telecommunications carrier or the Federal
47 Communications Commission or its designee. An eligible
48 telecommunications carrier may transfer a subscriber off of
49 Lifeline service, pursuant to its tariff, if the subscriber
50 fails to demonstrate continued eligibility.
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HB 789 2022
51 3. The commission shall establish procedures for such
52 notification and termination.
53 (f) An eligible telecommunications carrier shall timely
54 credit a consumer's bill with the Lifeline Assistance credit as
55 soon as practicable, but no later than 60 days following receipt
56 of notice of eligibility from the Office of Public Counsel or
57 proof of eligibility from the consumer.
58 (2)(a) Each local exchange telecommunications company that
59 has more than 1 million access lines and that is designated as
60 an eligible telecommunications carrier shall, and any commercial
61 mobile radio service provider designated as an eligible
62 telecommunications carrier pursuant to 47 U.S.C. s. 214(e) may,
63 upon filing a notice of election to do so with the commission,
64 provide Lifeline service to any otherwise eligible customer or
65 potential customer who meets an income eligibility test at 150
66 percent or less of the federal poverty income guidelines for
67 Lifeline customers. Such a test for eligibility must augment,
68 rather than replace, the eligibility standards established by
69 federal law and based on participation in certain low -income
70 assistance programs. Each intrastate interexchange
71 telecommunications company shall file or publish a schedule
72 providing at a minimum the intrastate interexchange
73 telecommunications company's current Lifeline benefits and
74 exemptions to Lifeline customers who meet the income eligibility
75 test set forth in this subsection. The Office of Public Co unsel
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HB 789 2022
76 shall certify and maintain claims submitted by a customer for
77 eligibility under the income test authorized by this subsection.
78 (a)(b) Each eligible telecommunications carrier subject to
79 this subsection shall provide to each state and federal agency
80 providing benefits to persons eligible for Lifeline service
81 applications, brochures, pamphlets, or other materials that
82 inform the persons of their eligibility for Lifeline, and each
83 state agency providing the benefits shall furnish the materials
84 to affected persons at the time they apply for benefits.
85 (b)(c) An eligible telecommunications carrier may not
86 discontinue basic local telecommunications service to a
87 subscriber who receives Lifeline service because of nonpayment
88 by the subscriber of charges for nonbasic services billed by the
89 telecommunications company, including long-distance service. A
90 subscriber who receives Lifeline service shall pay all
91 applicable basic local telecommunications service fees,
92 including the subscriber line charge, E-911, telephone relay
93 system charges, and applicable state and federal taxes.
94 (c)(d) An eligible telecommunications carrier may not
95 refuse to connect, reconnect, or provide Lifeline service
96 because of unpaid toll charges or nonbasic charges other than
97 basic local telecommunications service.
98 (d)(e) An eligible telecommunications carrier may require
99 that payment arrangements be made for outstanding debt
100 associated with basic local telecommunications service,
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101 subscriber line charges, E-911, telephone relay system charges,
102 and applicable state and federal taxes.
103 (e)(f) An eligible telecommunications carrier may block a
104 Lifeline service subscriber's access to all long-distance
105 service, except for toll-free numbers, and may block the ability
106 to accept collect calls if when the subscriber owes an
107 outstanding amount for long-distance service or amounts
108 resulting from collect calls. However, the eligible
109 telecommunications carrier may not impose a charge for blocking
110 long-distance service. The eligible telecommunications carrier
111 shall remove the block at the request of the subscriber without
112 additional cost to the subscriber upon payment of the
113 outstanding amount. An eligible telecommunications carrier may
114 charge a service deposit before removing the block.
115 (f)(g)1. Each state agency that provides benefits to
116 persons eligible for Lifeline service shall undertake, in
117 cooperation with the Department of Children and Families, the
118 Department of Education, the commission, the Office of Public
119 Counsel, and telecommunications companies designated eligible
120 telecommunications carriers providing Lifeline services, the
121 development of procedures to promote Lifeline participation. The
122 department and departments, the commission, and the Office of
123 Public Counsel may exchange sufficient information with the
124 appropriate eligible telecommunications carriers or the Federal
125 Communications Commission or its designee and any commercial
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126 mobile radio service provider electing to provide Lifeline
127 service under paragraph (a), such as a person's name, date of
128 birth, service address, and telephone number, so that eligible
129 customers can be enrolled the carriers can identify and enroll
130 an eligible person in the Lifeline and Link-Up programs. The
131 information remains confidential and exempt pursuant to s.
132 364.107 and may only be used for purposes of determining
133 eligibility and enrollment in the Lifeline and Link -Up programs.
134 2. If any state agency determines that a person is
135 eligible for a Lifeline qualifying program Lifeline services,
136 the agency must coordinate with the Federal Communications
137 Commission or its designee to verify eligibility for the
138 Lifeline program shall immediately forward the information to
139 the commission to ensure that the person is automatically
140 enrolled in the program with the appropriate eligible
141 telecommunications carrier. The state agency shall include an
142 option for an eligible customer to choose not to subscribe to
143 the Lifeline service. The Public Service Commission and the
144 Department of Children and Families shall adopt rules creating
145 procedures to automatically enroll eligible customers in
146 Lifeline service.
147 3. The commission, the Department of Children and
148 Families, the Office of Public Counsel, and each eligible
149 telecommunications carrier offering Lifeline and Link -Up
150 services shall convene a Lifeline Workgroup to discuss how the
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151 eligible subscriber information in subparagraph 1. will be
152 shared, the obligations of each party with respect to the use of
153 that information, and the procedures to be implemented to
154 increase enrollment and verify eligibility in these programs.
155 (g)(h) The commission shall report to the Governor, the
156 President of the Senate, and the Speaker of the House of
157 Representatives by December 31 each year on the number of
158 customers who are subscribing to Lifeline service and the
159 effectiveness of any procedures to promote participation.
160 (h)(i) The commission may undertake appropriate measures
161 to inform low-income consumers of the availability of the
162 Lifeline and Link-Up programs.
163 (i)(j) The commission shall adopt rules to administer this
164 section.
165 Section 2. Subsection (2) of section 364.107, Florida
166 Statutes, is amended to read:
167 364.107 Public records exemption; Lifeline Assistance Plan
168 participants.—
169 (2) Information made confidential and exempt under
170 subsection (1) may be released to the applicable
171 telecommunications carrier or the Federal Communications
172 Commission or its designee for purposes directly connected with
173 eligibility for, verification related to, or auditing of a
174 Lifeline Assistance Plan.
175 Section 3. This act shall take effect July 1, 2022.
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HB 6031
HOUSE OF REPRESENTATIVES STAFF ANALYSIS
BILL #: HB 6031 Individual Wine Containers
SPONSOR(S): LaMarca
TIED BILLS: IDEN./SIM. BILLS: SB 384
REFERENCE ACTION ANALYST STAFF DIRECTOR or
BUDGET/POLICY CHIEF
1) Regulatory Reform Subcommittee 13 Y, 0 N Thompson Anstead
2) Commerce Committee Thompson Hamon
SUMMARY ANALYSIS
In Florida, the Beverage Law regulates the manufacture, distribution, and sale of wine, beer, and liquor by
manufacturers, distributors, and vendors. The Division of Alcoholic Beverages and Tobacco in the Department
of Business and Professional Regulation administers and enforces the Beverage Law.
Current law addressing limitations on the size of individual wine containers provides the following:
The sale of wine in an individual container that holds more than one gallon of wine is prohibited.
Wine may be sold in a reusable container of 5.16 gallons.
Distributors and manufacturers are allowed to sell wine to other distributors and manufacturers in
containers of any size.
Except for restaurants in certain situations, wine sold or offered for sale by a licensed vendor to be
consumed off the premises must be in the unopened original container.
Violations are a second-degree misdemeanor.
The bill repeals the law relating to limitations on the size of individual wine containers.
The bill does not appear to have a fiscal impact on state or local governments.
The bill provides an effective date of July 1, 2022.
This docum ent does not reflect the intent or official position of the bill sponsor or House of Representatives .
STORAGE NAME: h6031b.COM
DATE: 1/14/2022
FULL ANALYSIS
I. SUBSTANTIVE ANALYSIS
A. EFFECT OF PROPOSED CHANGES:
Current Situation
Beverage Law
In Florida, the Beverage Law 1 regulates the manufacture, distribution, and sale of wine, beer, and liquor
by manufacturers, distributors, and vendors.2 The Division of Alcoholic Beverages and Tobacco
(Division) in the Department of Business and Professional Regulation (DBPR) administers and
enforces the Beverage Law.3
“Alcoholic beverages” are defined as “distilled spirits and all beverages containing one-half of 1 percent
or more alcohol by volume.” “Malt beverages” are brewed alcoholic beverages containing malt. 4
The license and registration classifications used in the Beverage Law include the following:
“Manufacturers” are those “licensed to manufacture alcoholic beverages and distribute the same
at wholesale to licensed distributors and to no one else within the state, unless authorized by
statute.”
“Distributors” are those “licensed to sell and distribute alcoholic beverages at wholesale to
persons who are licensed to sell alcoholic beverages.”
“Importers” are those licensed to sell, or to cause to be sold, shipped, and invoiced, alcoholic
beverages to licensed manufacturers or licensed distributors, and to no one else in this state. 5
“Vendors” are those “licensed to sell alcoholic beverages at retail only” and may not “purchase
or acquire in any manner for the purpose of resale any alcoholic beverages from any person not
licensed as a vendor, manufacturer, bottler, or distributor under the Beverage Law.” 6
Wine Container Limitations
“Wine” is defined as all beverages made from fresh fruits, berries, or grapes, either by natural
fermentation or by natural fermentation with brandy added, in the manner required by the laws and
regulations of the United States, and includes all sparkling wines, champagnes, combination of the
aforesaid beverages, sake, vermouths, and like products. Sugar, flavors, and coloring materials may be
added to wine to make it conform to the consumer’s taste, except that the ultimate flavor or the color of
the product may not be altered to imitate a beverage other than wine or to change the character of the
wine.7
Current law governing limitations of the size of wine containers: 8
Prohibits the sale of wine in an individual container that holds more than one gallon. However,
allows wine to be sold in a reusable container of 5.16 gallons.
Authorizes qualified distributors and manufacturers to sell wine to other qualified distributors
and manufacturers in any size container.9
Except for restaurants in certain situations,10 requires wine sold or offered for sale by a licensed
vendor to be consumed off-premises to be in the unopened original container.
1 Section 561.01(6), F.S., provides that the “The Beverage Law” includes chs. 561, 562, 563, 564, 565, 567, and 568, F.S.
2 See s. 561.14, F.S.
3 S. 561.02, F.S.
4 S. 563.01, F.S.
5 S. 561.01(5), F.S.
6 S. 561.14, F.S.
7 S. 564.01(1), F.S.
8 S. 564.05, F.S.
9 Id.
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DATE: 1/14/2022
Provides that violations are a second-degree misdemeanor, punishable by a maximum $500
fine11 and 60 days in prison.12
Effect of the Bill
The bill repeals s. 564.05, F.S., relating to limitations on the size of individual wine containers.
B. SECTION DIRECTORY:
Section 1 Repeals s. 564.05, F.S., relating to limitations on the size of individual wine containers.
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 will allow the sale of wine in an individual container of any size. This may have a positive fiscal
impact on businesses that sell wine.
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.
10 S. 564.09, F.S. The exception allows restaurant patrons to leave the premises with “one unsealed bottle of wine for consumption off
the premises,” provided certain conditions are met. The wine bottle must be partially consumed with a full course meal, securely
resealed by the licensee or one of its employees, secured in a bag or container, wrapped in a way that shows it was previously opened,
attached to a dated receipt indicating the full course meal, and transported in a locked ve hicle glove compartment, locked trunk, or
behind the last upright seat of a motor vehicle that is not equipped with a trunk.
11 S. 775.083(1)(e), F.S.
12 S. 775.082(4)(b), F.S.
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DATE: 1/14/2022
2. Other:
None.
B. RULE-MAKING AUTHORITY:
The bill does not appear to create a need for rulemaking or rulemaking authority.
C. DRAFTING ISSUES OR OTHER COMMENTS:
None.
IV. AMENDMENTS/ COMMITTEE SUBSTITUTE CHANGES
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DATE: 1/14/2022
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 6031 2022
1 A bill to be entitled
2 An act relating to individual wine containers;
3 repealing s. 564.05, F.S., relating to the limitation
4 of size of individual wine containers; providing an
5 effective date.
6
7 Be It Enacted by the Legislature of the State of Florida:
8
9 Section 1. Section 564.05, Florida Statutes, is repealed.
10 Section 2. This act shall take effect July 1, 2022.
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CODING: Words stricken are deletions; words underlined are additions.
hb6031-00
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