Pandemic Darlings The pandemic economy, in original documents
Home Source documents Meeting Packet - Commerce Committee, Florida House of Representatives (February 1, 2022)

Meeting Packet - Commerce Committee, Florida House of Representatives (February 1, 2022)

Summary

Meeting packet of the Commerce Committee of the Florida House of Representatives for Tuesday, February 1, 2022, 12:30 PM - 2:30 PM, in Webster Hall. The agenda lists CS/HB 123 (Consumer Finance Loans), HB 275 (Loss Run Statements), CS/HB 481 (Temporary Underground Power Panels), HM 641 (Internal Revenue Service Reporting Requirements), CS/HB 831, CS/HB 925 and CS/HB 1439. The staff analysis of CS/HB 123 says the bill authorizes consumer finance lenders to provide a surety bond, certificate of deposit, or letter of credit in lieu of maintaining liquid assets and expressly prohibits prepayment penalties, with an effective date of October 1, 2022.

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

Cite this document

“Meeting Packet - Commerce Committee, Florida House of Representatives (February 1, 2022).” Archived at Pandemic Darlings, https://pandemicdarlings.com/source-documents/2022-02-01-3098-commerce-committee-meeting-packets-fn-com-2-1-22-34458997e0/, SHA-256 6b285c8a3f87cde14eade328c5bd8c5f372175bd742faefa01b3a4f74bba7b70.

Full text

                Commerce Committee
                  Tuesday, February 1, 2022
                     12:30 PM - 2:30 PM
                   Webster Hall (212 Knott)



                    Meeting Packet




Chris Sprowls                                 Blaise Ingoglia
Speaker                                                 Chair
                    The Florida House of Representatives
                                           Commerce Committee

Chris Sprowls                                                                                       Blaise Ingoglia
Speaker                                                                                                      Chair


                                             Meeting Agenda
                                          Tuesday, February 1, 2022
                                            12:30 PM – 2:30 PM
                                          Webster Hall (212 Knott)
  I.   Call to Order

 II.   Roll Call

III.   Welcome and Opening Remarks

IV.    Consideration of the following bill(s):

       •   CS/HB 123 Consumer Finance Loans by Insurance & Banking Subcommittee,
           Stevenson

       •   HB 275 Loss Run Statements by Fernandez-Barquin

       •   CS/HB 481 Temporary Underground Power Panels by Tourism, Infrastructure &
           Energy Subcommittee, Duggan

       •   HM 641 Internal Revenue Service Reporting Requirements by Rommel

       •   CS/HB 831 Licensure Requirements for Land Surveyors and Mappers by Regulatory
           Reform Subcommittee, Mariano

       •   CS/HB 925 Benchmark Replacements for London Interbank Offered Rate by
           Insurance & Banking Subcommittee, Stevenson

       •   CS/HB 1439 Prostitution, Lewdness, Human Trafficking, and Public Lodging by
           Criminal Justice & Public Safety Subcommittee, Toledo, Busatta Cabrera

 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 .
STORAGE NAME: h0123b.COM
DATE: 1/14/2022
                                                     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.
STORAGE NAME: h0123b.COM                                                                                              PAGE: 2
DATE: 1/14/2022
        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.
STORAGE NAME: h0123b.COM                                                                                             PAGE: 3
DATE: 1/14/2022
    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.
STORAGE NAME: h0123b.COM                                                                                                    PAGE: 4
DATE: 1/14/2022
                   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.
STORAGE NAME: h0123b.COM                                                                                        PAGE: 5
DATE: 1/14/2022
        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.
STORAGE NAME: h0123b.COM                                                                                        PAGE: 6
DATE: 1/14/2022
       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

STORAGE NAME: h0123b.COM                                                                                              PAGE: 7
DATE: 1/14/2022
    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.
STORAGE NAME: h0123b.COM                                                                                     PAGE: 8
DATE: 1/14/2022
        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.
STORAGE NAME: h0123b.COM                                                                                      PAGE: 9
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




           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

                                                      Page 2 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




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.

                                                      Page 3 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




 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

                                                       Page 4 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




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.

                                                       Page 5 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




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.—

                                                       Page 6 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




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

                                                       Page 7 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




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

                                                       Page 8 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




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.




                                                       Page 9 of 9

      CODING: Words stricken are deletions; words underlined are additions.
                                                                                                          hb0123-01-c1
HB 275
                                  HOUSE OF REPRESENTATIVES STAFF ANALYSIS
BILL #:     HB 275 Loss Run Statements
SPONSOR(S): Fernandez-Barquin
TIED BILLS:       IDEN./SIM. BILLS: SB 156

    REFERENCE                                                   ACTION                  ANALYST            STAFF DIRECTOR or
                                                                                                           BUDGET/POLICY CHIEF

    1) Insurance & Banking Subcommittee                         15 Y, 0 N               Fortenberry        Luczynski

    2) State Administration & Technology                        12 Y, 0 N               Lee                Topp
       Appropriations Subcommittee

    3) Commerce Committee                                                               Fortenberry        Hamon


                                              SUMMARY ANALYSIS
A loss run statement is a report from an insurer that shows the claims a specific insured has filed under that
insured’s policy during a particular period of time. This report can be provided to a prospective insurer when an
insured is shopping for a new insurance policy. The prospective insurer can use the loss run statement to
review the types, frequency, and dollar value of prior claims in order to determine whether to write a policy for
the prospective insured and what premium to charge for that policy.

Statutes enacted in 2020, established a framework regarding when, and how, insurers must provide loss run
statements to insureds. Pursuant to these statutes, for all lines of insurance written on the admitted and
surplus lines markets, insurers must provide loss run statements with a five-year loss run history within 15 days
of receiving an insured’s written request. If an insured requests a loss run statement regarding a personal lines
policy, an insurer may provide the insured information about how to obtain a loss run statement at no charge
through a consumer reporting agency. However, the insured may still ask the insurer for a loss run statement
even after receiving information from a consumer reporting agency.

The bill amends the loss run statutes that were enacted in 2020, so that they better reflect existing industry
standards. It revises the number of years of loss history that an insurer must provide from a minimum of five
years to a minimum of three years to reflect the industry practice of routinely providing insureds with a three-
year history upon request before the enactment of the 2020 statutes. The bill requires that if a personal lines
insured asks an insurer for a loss run statement after receiving information from a consumer reporting agency,
the insurer must provide that statement within 15 days. It establishes that ss. 626.9202 and 627.444, F.S.,
regarding loss run statements, do not apply to life insurers.

The bill also resolves a conflict between the 2020 statutes and an existing statute regarding loss run
statements for group health insurance policies by repealing the health-specific statute. Repealing this statute,
s. 627.6647, F.S., will create a more seamless process for requesting a loss run statement regardless of the
type of insurance for which the statement is requested. The bill establishes that, as applied to group health
insurance, a loss run statement also includes premiums paid, number of insureds on a monthly basis, and
dependent status. Finally, the bill clarifies that for group health insurance, only plan sponsors, not individual
employees covered by the group policy, may request a loss run statement.

The bill has no impact on state or local government revenues or expenditures and no direct economic impact
on the private sector.

The bill is effective upon becoming law.




This docum ent does not reflect the intent or official position of the bill sponsor or House of Representatives .
STORAGE NAME: h0275d.COM
DATE: 1/28/2022
                                                           FULL ANALYSIS

                                                   I. SUBSTANTIVE ANALYSIS

        A. EFFECT OF PROPOSED CHANGES:
          Background

          A loss run statement1 is a report from an insurer that shows the claims a specific insured has filed
          under that insured’s policy during a particular period of time. 2 This report can be provided to a
          prospective insurer when an insured is shopping for a new insurance policy. 3 The prospective insurer
          can use the loss run statement to review the types, frequency, and dollar value of prior claims in order
          to determine whether to write a policy for the prospective insured and what premium to charge for that
          policy.4 Prospective insurers often want to review loss run statements showing a loss run history from
          three to five years to make decisions about writing insurance policies. 5

          While insureds may request loss run statements for any line of insurance, insureds seeking new
          general liability, business owner’s, commercial property, commercial auto insurance, or workers’
          compensation insurance, often request them to shop for new insurance 6 upon cancelation or
          nonrenewal of a policy by an insurer or when the insured chooses to shop for new insurance at the time
          a policy is up for renewal. Some insurers, especially those providing commercial lines coverage or
          workers’ compensation insurance, have existing loss run systems that allow their insureds to log into a
          portal and to obtain their own detailed reports on claims.7 However, other insurers, in these and other
          lines of insurance, may provide insureds with loss run statements that they have created upon request
          or direct the insureds to obtain such statements from their agents of record or consumer reporting
          agencies.

          Often, personal lines loss history can be obtained from public sources. A Comprehensive Loss
          Underwriting Exchange, or CLUE, report is a claims report generated by the consumer-reporting
          agency, LexisNexis.8 A CLUE report contains claims information reported by insurers for all personal
          auto and personal property claims in which they pay money, set up a file for a possible claim, or deny a
          claim.9 However, CLUE reports and other publicly available reports, may not be completely accurate.10
          Additionally, commercial and health insurance data are not readily available from public sources.

          Statutes enacted in 2020, established a framework regarding when, and how, insurers must provide
          loss run statements to insureds.11 These statutes define “loss run statement” as a report that contains
          the policy number, the period of coverage, the number of claims, the paid losses on all claims, and the
          date of each loss.12 This definition also specifies that a loss run statement does not include supporting
          claim file documents, such as copies of claim files, investigation reports, evaluation statements,
          insureds’ statements, and documents protected by common law or statutory privilege. 13



1 Loss run statements are also referred to as loss runs or loss run reports.
2 Insureon, https://www.insureon.com/insurance-glossary/loss-runs (last visited Nov. 22, 2021).
3 Id.
4 Id.
5 Id.
6 Id.
7 See, e.g., MSIG Loss Runs, https://www.msigusa.com/loss -runs/ and StarStone, http://myaccount.starstoneworkcomp.com/index.htm

(last visited Nov. 22, 2021).
8 Office of the Insurance Commissioner Washington State, https://www.insurance.wa.gov/clue-comprehensive-loss-underwriting-

exchange (last visited Nov. 19, 2021).
9 Id.
10 Florida Association of Insurance Agents, Loss Run Statements, https://www.faia.com/resources -(1)/legislative-summaries/300-

worders/2020-300-worders/loss-run-statements (last visited Dec. 16, 2021). See also Forbes Advisor, What is a C.L.U.E. Report for
Insurance?, https://www.forbes.com/advisor/homeowners -insurance/clue-report/ (last visited Dec. 16, 2021).
11 See ss. 626.9202 and 627.444, F.S.
12 Id.
13 Id.
STORAGE NAME: h0275d.COM                                                                                                    PAGE: 2
DATE: 1/28/2022
         Pursuant to these statutes, for all lines of insurance written on the admitted and surplus lines markets,
         insurers must provide loss run statements with a five-year loss run history within 15 days of receiving
         insured’s written requests.14 If an insured requests a loss run statement regarding a personal lines
         policy, an insurer may provide the insured information about how to obtain a loss run statement at no
         charge through a consumer reporting agency.15 However, the insured may still ask the insurer for a loss
         run statement even after receiving information from a consumer reporting agency.16 An insurer is
         prohibited from charging an insured for the first loss run statement that an insured requests annually. 17
         Additionally, an insurer is not required to provide loss reserve information as part of a loss run
         statement provided to an insured.18

         Effect of the Bill

         The bill amends the loss run statutes that were enacted in 2020, so that they better reflect existing
         industry standards. It revises the number of years of loss history that an insurer must provide from a
         minimum of five years to a minimum of three years to reflect the industry practice of routinely providing
         insureds with a three-year history upon request before the enactment of the 2020 statutes. The bill
         requires that if a personal lines insured asks an insurer for a loss run statement after receiving
         information from a consumer reporting agency, the insurer must provide that statement within 15 days.
         It establishes that ss. 626.9202 and 627.444, F.S., regarding loss run statements, do not apply to life
         insurers.19

         The bill also resolves a conflict between the 2020 statutes and an existing statute regarding loss run
         statements for group health insurance policies by repealing the health-specific statute.20 Repealing this
         statute will create a more seamless process for requesting a loss run statement regardless of the type
         of insurance for which the statement is requested. The bill establishes that, as applied to group health
         insurance, a loss run statement also includes premiums paid, number of insureds on a monthly basis,
         and dependent status. Finally, the bill clarifies that for group health insurance, only plan sponsors, not
         individual employees covered by the group policy, may request a loss run statement.

     B. SECTION DIRECTORY:

         Section 1. Amends s. 626.9202, F.S., relating to loss run statements for all lines of insurance.

         Section 2. Amends s. 627.444, F.S., relating to loss run statements for all lines of insurance.

         Section 3. Repeals s. 627.6647, F.S., relating to release of claims experience.

         Section 4. Provides that the bill is effective upon becoming law.




                               II. FISCAL ANALYSIS & ECONOMIC IMPACT STATEMENT

     A. FISCAL IMPACT ON STATE GOVERNMENT:

         1. Revenues:

             None.

14 Id.
15 Ss. 626.9202(2)(b)   and 627.444(2)(b), F.S.
16 Id.
17 Ss. 626.9202(6)  and 627.444(6), F.S.
18 Ss. 626.9202(5)  and 627.444(5), F.S.
19 Because loss run statements are used to shop for new insurance, and life insurance claims are only made after the death of an

insured, loss run statements are not necessary for this type of policy.
20 See s. 627.6647, F.S.
STORAGE NAME: h0275d.COM                                                                                                       PAGE: 3
DATE: 1/28/2022
       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. The bill does not appear to affect county or municipal governments.

       2. Other:

          None.

   B. RULE-MAKING AUTHORITY:

       The bill neither authorizes nor requires administrative rulemaking.

   C. DRAFTING ISSUES OR OTHER COMMENTS:
       None.

                           IV. AMENDMENTS/COMMITTEE SUBSTITUTE CHANGES




STORAGE NAME: h0275d.COM                                                                       PAGE: 4
DATE: 1/28/2022
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 275                                                                                                2022




    1                                           A bill to be entitled
    2               An act relating to loss run statements; amending ss.
    3               626.9202 and 627.444, F.S.; revising the definition of
    4               the term "loss run statement"; specifying the entities
    5               that must receive requests for loss run statements;
    6               specifying that insurers must provide loss run
    7               statements within a specified timeframe under certain
    8               circumstances; revising the required claims history in
    9               loss run statements; providing applicability; limiting
10                  loss run statement requests with respect to group
11                  health insurance policies to group policyholders;
12                  repealing s. 627.6647, F.S., relating to release of
13                  claims experience; providing an effective date.
14
15         Be It Enacted by the Legislature of the State of Florida:
16
17                  Section 1.          Subsections (1), (2), and (4) of section
18         626.9202, Florida Statutes, are amended, and subsections (7) and
19         (8) are added to that section, to read:
20                  626.9202           Loss run statements for all lines of insurance.—
21                  (1)         As used in this section, the term:
22                  (a)         "Loss run statement" means a report that contains the
23         policy number, the period of coverage, the number of claims, the
24         paid losses on all claims, and the date of each loss. T he term
25         does not include supporting claim file documentation, including,

                                                         Page 1 of 5

        CODING: Words stricken are deletions; words underlined are additions.
                                                                                                                hb0275-00
F   L   O   R    I   D   A      H   O   U   S   E   O    F     R    E   P    R   E   S   E   N   T   A   T    I   V   E   S




        HB 275                                                                                                2022




26      but not limited to, copies of claim files, investigation
27      reports, evaluation statements, insureds' statements, and
28      documents protected by a common law or statutory privilege. As
29      applied to group health insurance, the term means a report that
30      also contains the premiums paid, the number of insureds on a
31      monthly basis, and the dependent status under the reported
32      policy.
33               (b)         "Provide" means to electronically send a document or
34      to allow access through an electronic portal to view or generate
35      a document.
36               (2)         Notwithstanding any other law, an insurer shall
37      provide to an insured within 15 calendar days after an
38      individual or entity designated by the insurer receives receipt
39      of the insured's written request, either:
40               (a)         A loss run statement; or
41               (b)         For personal lines of insurance, information on how to
42      obtain a loss run statement at no charge through a consumer
43      reporting agency. However, this section does not prohibit an
44      insured from requesting a loss run statement after receiving
45      information from a consumer reporting agency, in which case the
46      insurer shall then provide the loss run statement within 15
47      calendar days after the individual or entity designated by the
48      insurer receives the insured's subsequent written request.
49               (4)         A loss run statement provided pursuant to this section
50      must contain a claims history with the insurer for the preceding

                                                      Page 2 of 5

     CODING: Words stricken are deletions; words underlined are additions.
                                                                                                             hb0275-00
F   L   O   R    I   D   A      H   O   U   S   E   O    F     R    E   P    R   E   S   E   N   T   A   T    I   V   E   S




        HB 275                                                                                                2022




51      3 5 years or, if the claims history is less than 3 5 years, a
52      complete claims history with the insurer.
53               (7)         This section does not apply to a life insurer as
54      defined in s. 624.602.
55               (8)         For group health insurance, only the group
56      policyholder may request and be provided a loss run statement
57      pursuant to this section.
58               Section 2.         Subsections (1), (2), and (4) of section
59      627.444, Florida Statutes, are amended, and subsections (7) and
60      (8) are added to that section, to read:
61               627.444        Loss run statements for all lines of insurance. —
62               (1)         As used in this section, the term:
63               (a)         "Loss run statement" means a report that contains the
64      policy number, the period of coverage, the number of claims, the
65      paid losses on all claims, and the date of each loss. The term
66      does not include supporting claim file documentation, including,
67      but not limited to, copies of claim files, investigation
68      reports, evaluation statements, insureds' statements, and
69      documents protected by a common law or statutory privilege. As
70      applied to group health insurance, the term means a report that
71      also contains the premiums paid, the number of insureds on a
72      monthly basis, and the dependent status under the reported
73      policy.
74               (b)         "Provide" means to electronically send a document or
75      to allow access through an electronic portal to view or generate

                                                      Page 3 of 5

     CODING: Words stricken are deletions; words underlined are additions.
                                                                                                             hb0275-00
F   L   O    R    I   D   A      H   O   U   S   E   O    F     R    E   P    R   E   S   E   N   T   A   T    I   V   E   S




         HB 275                                                                                                2022




 76      a document.
 77               (2)         Notwithstanding any other law, an insurer shall
 78      provide to an insured within 15 calendar days after an
 79      individual or entity designated by the insurer receives receipt
 80      of the insured's written request, either:
 81               (a)         A loss run statement; or
 82               (b)         For personal lines of insurance, information on how to
 83      obtain a loss run statement at no charge through a consumer
 84      reporting agency. However, this section does not prohibit an
 85      insured from requesting a loss run statement after receiving
 86      information from a consumer reporting agency, in which case the
 87      insurer shall then provide the loss run statement within 15
 88      calendar days after the individual or entity designated by the
 89      insurer receives the insured's subsequent written request.
 90               (4)         A loss run statement provided pursuant to this section
 91      must contain a claims history with the insurer for the preceding
 92      3 5 years or, if the claims history is less than 3 5 years, a
 93      complete claims history with the insurer.
 94               (7)         This section does not apply to a life insurer as
 95      defined in s. 624.602.
 96               (8)         For group health insurance, only the group
 97      policyholder may request and be provided a loss run statement
 98      pursuant to this section.
 99               Section 3.         Section 627.6647, Florida Statutes, is
100      repealed.

                                                       Page 4 of 5

      CODING: Words stricken are deletions; words underlined are additions.
                                                                                                              hb0275-00
F   L   O    R    I   D   A    H   O   U   S   E     O    F     R    E   P    R   E   S   E   N   T   A   T    I   V   E   S




         HB 275                                                                                                2022




101               Section 4.        This act shall take effect upon becoming a law.




                                                       Page 5 of 5

      CODING: Words stricken are deletions; words underlined are additions.
                                                                                                              hb0275-00
                                COMMERCE COMMITTEE

                           HB 275 by Rep. Fernandez-Barquin
                                 Loss Run Statements

                                AMENDMENT SUMMARY
                                   February 1, 2022


Amendment 1 by Rep. Fernandez-Barquin (line 48):
  • Clarifies that if a surplus lines agent provides a loss run statement to an insured on
     behalf of the insurer, the insurer is considered to have responded to an insured’s request
     for a loss run statement.
                                           COMMITTEE/SUBCOMMITTEE AMENDMENT
                                                     Bill No. HB 275   (2022)
       Amendment No. 1




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


 1     Committee/Subcommittee hearing bill:       Commerce Committee
 2     Representative Fernandez-Barquin offered the following:
 3
 4          Amendment (with title amendment)
 5          Between lines 48 and 49, insert:
 6     The insurer is deemed to be in compliance with this subsection
 7     if the surplus lines agent provides the loss run statement on
 8     behalf of the insurer.
 9
10             -----------------------------------------------------
11                          T I T L E   A M E N D M E N T
12          Remove lines 2-3 and insert:
13     An act relating to loss run statements; amending s. 626.9202,
14     F.S.; revising the definition of the term "loss run statement";
15     specifying the entities that must receive requests for loss run
16     statements; specifying that insurers must provide loss run
     507613 - h0275-line 48.docx
      Published On: 1/31/2022 5:04:29 PM
                                    Page 1 of 2
                                           COMMITTEE/SUBCOMMITTEE AMENDMENT
                                                   Bill No. HB 275   (2022)
       Amendment No. 1


17     statements under certain circumstances; providing construction;
18     revising the required claims history in loss run statements;
19     providing applicability; limiting loss run statement requests
20     with respect to group health insurance policies to group
21     policyholders; amending s. 627.444; revising the definition of




     507613 - h0275-line 48.docx
      Published On: 1/31/2022 5:04:29 PM
                                   Page 2 of 2
CS/HB 481
                                  HOUSE OF REPRESENTATIVES STAFF ANALYSIS
BILL #:     CS/HB 481 Temporary Underground Power Panels
SPONSOR(S): Tourism, Infrastructure & Energy Subcommittee, Duggan
TIED BILLS:       IDEN./SIM. BILLS: SB 1332

    REFERENCE                                                   ACTION                  ANALYST            STAFF DIRECTOR or
                                                                                                           BUDGET/POLICY CHIEF

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

    2) Local Administration & Veterans Affairs                  16 Y, 0 N               Leshko             Miller
       Subcommittee

    3) Commerce Committee                                                               Walsh              Hamon


                                             SUMMARY ANALYSIS
When a residential home is under construction on undeveloped property, the homebuilder may arrange for
temporary electric service to provide power to the property through the construction process. If the residence
is ultimately going to receive power through an underground service line when the resident takes occupancy, a
reduced cost alternative to a temporary power pole on a construction site is temporary underground (TUG)
service.

A TUG service connection is available for underground residential services where the permanent approved
meter socket, meter, and downpipe are configured such that they can be used for temporary service. After the
homeowner takes occupancy of the house, the TUG connection installed during construction is then used to
provide electric service to the residence.

Before installing TUG service on a construction site, a builder must get approval from the county or
municipality, often through the county or municipality’s building department.

The National Electrical Code (NEC) is published by the National Fire Protection Association, and serves to
safeguard persons and property from hazards arising from the use of electricity.

The bill provides that neither counties nor municipalities may enact any ordinance, regulation, or policy that
prevents, or has the effect of preventing, an electric utility from installing a temporary underground power
panel, so long as the panel meets the requirements of Article 590 of the NEC, 2020 edition.

The bill defines the term “temporary underground power panel” and provides that a county or municipality that
has conducted an inspection of a temporary underground power panel may not require a subsequent
inspection of the panel as a condition of issuance of a Certificate of Occupancy.

The bill does not impact state government revenues or expenditures. The bill appears to have an indeterminate
impact on local government revenues and expenditures, as local codes relating to TUG service vary by
jurisdiction.

The bill would be effective July 1, 2022.




This docum ent does not reflect the intent or official position of the bill sponsor or House of Representatives .
STORAGE NAME: h0481d.COM
DATE: 1/28/2022
                                                   FULL ANALYSIS

                                            I. SUBSTANTIVE ANALYSIS

    A. EFFECT OF PROPOSED CHANGES:

        Present Situation

        Temporary Underground Power
        When a residential home is under construction on undeveloped property, the homebuilder may arrange
        for temporary electric service to provide power to the property through the construction process.
        Builders may opt for temporary power poles, which allow them to get enough energy for the necessary
        equipment on the job site.1 If the residence is ultimately going to receive power through an underground
        service line when the resident takes occupancy, a reduced cost alternative to a temporary power pole is
        temporary underground (TUG) service.2

        The TUG alternative is available for underground residential services where the permanent approved
        meter socket, meter, and downpipe are configured such that they can be used for temporary service. 3
        In local jurisdictions that allow TUG service, after construction reaches a certain point and a temporary
        inspection takes place, the electric utility installs the permanent service to the meter socket. 4 The
        installed permanent service is then used for construction until the Certificate of Occupancy is obtained.5
        After the homeowner takes occupancy of the house, the permanent connection installed for TUG
        service during construction is then used to provide electric service to the residence.

        Before installing TUG service on a construction site, a builder must get approval from the county or
        municipality, often through the county or municipality’s building department. 6 Many, but not all, Florida
        counties and municipalities offer TUG agreements. An internet search reflects that some of the counties
        and municipalities that have a TUG program include: Orange County, Osceola County, Palm Beach
        County, Pasco County, Pinellas County, Volusia County, Altamonte Springs, Fort Myers, Melbourne,
        Orlando, and Tarpon Springs.

        National Electrical Code
        The National Electrical Code (NEC) is published by the National Fire Protection Association and is
        updated every couple of years.7 All 50 states have adopted the NEC, as it serves to safeguard persons
        and property from hazards arising from the use of electricity. 8 The most recent version of the NEC was
        published in 2020.9 Article 590 of the NEC covers temporary electrical power and lighting installations. 10




1 Step-by-Step Guide: Temporary     Construction Site Power, PowerPlus, https://www.powerplus.com/industrial-power-
blog/construction-site-temporary-power/ (last visited Jan. 27, 2022).
2 See, e.g., Florida Power and Light, Electric Service Standards (April 2021), at 10.
3 See, e.g., Id.
4 See, e.g., Orlando Utilities Commission, How to Obtain Temporary Underground Service,

https://www.ouc.com/docs/customer-brochures/broc_tug.pdf?sfvrsn=9769e278_6 (last visited Jan. 27, 2022); and Electric
Service Standards at 10.
5 See, e.g., Id.
6 See, e.g., Id.
7 National Fire Protection Association, NFPA 70, https://www.nfpa.org/codes-and-standards/all-codes-and-standards/list-

of-codes-and-standards/det ail?code=70 (last visited Jan. 27, 2022).
8 Id.; National Fire Protection Association, National Electrical Code, 29 (2020), available at https://www.nfpa.org/codes-

and-standards/all-codes-and-standards/list-of-codes-and-standards/detail?c ode= 70 (last visited Jan. 27, 2021).
9 National Fire Protection Association, NFPA 70.
10 National Fire Protection Association, National Electrical Code at 504.
STORAGE NAME: h0481d.COM                                                                                           PAGE: 2
DATE: 1/28/2022
       Effect of the Bill

       The bill provides that neither counties nor municipalities may enact any ordinance, regulation, or policy
       that prevents, or has the effect of preventing, an electric utility from installing a temporary underground
       power panel, so long as the panel meets the requirements of Article 590 of the NEC, 2020 edition.

       The bill defines the term “temporary underground power panel” as a permanent meter base that
       includes a meter socket, meter, and downpipe, to which power is provided through an underground
       service line by an electric utility pursuant to its tariffs or service standards. Per the definition, the
       temporary underground power panel must be permanently attached to a block residential structure and
       be intended for use in providing permanent service to the residential structure upon issuance of the
       Certificate of Occupancy.

       Under the bill, a county or municipality that has conducted an inspection of a temporary underground
       power panel may not require a subsequent inspection of the panel as a condition of issuance of a
       Certificate of Occupancy.

   B. SECTION DIRECTORY:
       Section 1: Creates s. 125.488, F.S., relating to county ordinances, regulations, and policies concerning
       temporary underground power panels.

       Section 2: Creates s. 166.0484, F.S., relating to municipal ordinances, regulations, and policies
       concerning temporary underground power panels.

       Section 3: Provides that the bill shall take effect 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:
           Indeterminate. See Fiscal Comments.

       2. Expenditures:
           Indeterminate. See Fiscal Comments.

   C. DIRECT ECONOMIC IMPACT ON PRIVATE SECTOR:
       Homebuilders may have fewer expenditures on fees associated with TUG inspections.

   D. FISCAL COMMENTS:
       Local government codes relating to TUG service, including fees and inspection requirements, vary
       across the state. Thus, the bill’s impact may vary by jurisdiction.

                                                III. COMMENTS

STORAGE NAME: h0481d.COM                                                                                    PAGE: 3
DATE: 1/28/2022
   A. CONSTITUTIONAL ISSUES:

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

       2. Other:
         None.

   B. RULE-MAKING AUTHORITY:
       The 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 a strike-all amendment
   to the bill and reported the bill favorably as a committee substitute. The amendment defines the term
   “temporary underground power panel,” corrects a reference to the National Electrical Code, and clarifies
   that a county or municipality may not require a subsequent inspection of a temporary underground power
   panel as a condition of issuance of a Certificate of Occupancy.

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




STORAGE NAME: h0481d.COM                                                                                  PAGE: 4
DATE: 1/28/2022
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




           CS/HB 481                                                                                            2022




    1                                         A bill to be entitled
    2              An act relating to temporary underground power panels;
    3              creating ss. 125.488 and 166.0484, F.S.; prohibiting
    4              counties and municipalities from enacting ordinances,
    5              regulations, or policies that prevent certain electric
    6              utilities from installing temporary underground power
    7              panels and from requiring subsequent inspections of
    8              such panels as a condition of a Certificate of
    9              Occupancy under specified conditions; defining the
10                 term "temporary underground power panel"; providing an
11                 effective date.
12
13         Be It Enacted by the Legislature of the State of Florida:
14
15                 Section 1.         Section 125.488, Florida Statutes, is created
16         to read:
17                 125.488        Ordinances, regulations, and policies concerning
18         temporary underground power panels.—
19                 (1)         A county may not enact any ordinance, regulation, or
20         policy that prevents or has the effect of preventing an electric
21         utility, as defined in s. 366.02(2), from installing a temporary
22         underground power panel if the temporary underground power panel
23         meets the requirements of Article 590 of the National Electrical
24         Code, 2020 edition, during the construction and installation of
25         the temporary underground power panel. After the county has

                                                         Page 1 of 3

        CODING: Words stricken are deletions; words underlined are additions.
                                                                                                            hb0481-01-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 481                                                                                            2022




26      conducted an inspection of the temporary underground power
27      panel, the county may not require a subsequent inspection of the
28      temporary underground power panel as a condition of issuance of
29      the Certificate of Occupancy.
30              (2)         As used in this section, the term "temporary
31      underground power panel" means a permanent meter base that
32      includes a meter socket, meter, and downpipe, to which power is
33      provided through an underground service line by an electric
34      utility pursuant to its tariffs or service standards, that is
35      permanently attached to a block residential structure, provides
36      temporary power for construction of the residential structure,
37      and is intended for use in providing permanent service to the
38      residential structure upon issuance of the Certificate of
39      Occupancy.
40              Section 2.          Section 166.0484, Florida Statutes, is created
41      to read:
42              166.0484           Ordinances, regulations, and policies concerning
43      temporary underground power panels.—
44              (1)         A municipality may not enact any ordinance,
45      regulation, or policy that prevents or has the effect of
46      preventing an electric utility, as defined in s. 366.02(2), from
47      installing a temporary underground power panel if the temporary
48      underground power panel meets the requirements of Article 590 of
49      the National Electrical Code, 2020 edition, during the
50      construction and installation of the temporary underground power

                                                      Page 2 of 3

     CODING: Words stricken are deletions; words underlined are additions.
                                                                                                         hb0481-01-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 481                                                                                            2022




51      panel. After the municipality has conducted an inspection of the
52      temporary underground power panel, the municipality may not
53      require a subsequent inspection of the temporary underground
54      power panel as a condition of issuance of the Certificate of
55      Occupancy.
56              (2)         As used in this section, the term "temporary
57      underground power panel" means a permanent meter base that
58      includes a meter socket, meter, and downpipe, to which power is
59      provided through an underground service line by an electric
60      utility pursuant to its tariffs or service standards, that is
61      permanently attached to a block residential structure, provides
62      temporary power for construction of the residential structure,
63      and is intended for use in providing permanent service to the
64      residential structure upon issuance of the Certificate of
65      Occupancy.
66              Section 3.         This act shall take effect July 1, 2022.




                                                      Page 3 of 3

     CODING: Words stricken are deletions; words underlined are additions.
                                                                                                         hb0481-01-c1
HM 641
                                  HOUSE OF REPRESENTATIVES STAFF ANALYSIS
BILL #:     HM 641 Internal Revenue Service Reporting Requirements
SPONSOR(S): Rommel
TIED BILLS:       IDEN./SIM. BILLS: SM 982

  REFERENCE                                                   ACTION                  ANALYST            STAFF DIRECTOR or
                                                                                                         BUDGET/POLICY CHIEF

  1) Ways & Means Committee                                   14 Y, 3 N               LaTorre            Aldridge

  2) Commerce Committee                                                               Hinshelwood        Hamon


                                             SUMMARY ANALYSIS
HM 641 urges the Congress of the United States to oppose the Internal Revenue Service (IRS) reporting
requirements placed on financial institutions, small businesses, and law abiding citizens, which are included in
the Biden administration’s tax increase proposal.

Legislative memorials are not subject to the Governor’s veto power and are not presented to the Governor for
review. Memorials have no force of law, as they are mechanisms for formally petitioning the federal
government to act on a particular subject.

The memorial does not have a fiscal impact on the state or local governments.




This docum ent does not reflect the intent or official position of the bill sponsor or House of Representatives .
STORAGE NAME: h0641b.COM
DATE: 1/28/2022
                                                     FULL ANALYSIS

                                              I. SUBSTANTIVE ANALYSIS

    A. EFFECT OF PROPOSED CHANGES:
        Current Situation

        The Biden Administration Revenue Proposals

        In the Biden Administration’s proposal released in May 2021, a provision provided the IRS increased
        scrutiny over bank accounts.1 The proposal would require banks, credit unions, and other financial
        companies to report to the IRS gross deposits and withdrawals for accounts that have gross deposits or
        withdrawals of more than $600.2 Under a revised proposal, the threshold was raised to $10,000.3 The
        financial institution’s report to the IRS would include a breakdown for physical cash, transactions with a
        foreign account, and transfers to and from another account with the same owner.4

        In the current version of the Build Back Better Act passed by the United States House of
        Representatives on November 19, 2021, the provision requiring additional reporting by banks, credit
        unions, and other financial companies was omitted. 5

        Current Law on Reporting of Cash Transactions and Suspicious Activity

        Current federal law requires a person to report to the IRS cash transactions of more than $10,000
        received in a trade or business.6 “Person” means an individual, company, corporation, partnership,
        association, trust, or estate.7 “Cash” includes coins and currency of the United States or any foreign
        country.8 Cash also includes a cashier’s check, bank draft, traveler’s check, or money order with a face
        amount of $10,000 or less that a person receives for either a designated reporting transaction or any
        transaction in which the person knows the payer is trying to avoid a report.9

        Banks and other financial institutions are required to report each deposit, withdrawal, exchange of
        currency or other payment or transfer, by, though, or to the bank or financial institution which involves a
        transaction in currency of more than $10,000, including cash purchases of cashier’s checks, treasurer’s
        checks, bank checks, bank drafts, traveler’s checks, and money orders with a face value of more than
        $10,000, to the Financial Crimes Enforcement Network (FinCEN), which is a bureau of the United
        States Department of the Treasury.10


1 General Explanations of the Administration’s Fiscal Year 2022 Revenue       Proposals, United States Department of the
Treasury, May 2021, https://home.treasury.gov/system/files/131/General -Explanations-FY 2022.pdf (Last visited Jan. 27,
2022).
2 Id.
3 FACT SHEET: Tax Compliance Proposals Will Improve Tax Fairness While Protecting Taxpayer Privacy, United States

Department of Treasury, Oct. 19, 2021, https://home.treasury.gov/news/press-releases/jy0415 (Last visited Jan. 27,
2022).
4 General Explanations of the Administration’s Fiscal Year 2022 Revenue Proposals , supra note 1.
5 Build Back Better Act, H.R. 5376, 117th Cong. (2021) https://www.congress.gov/bill/117th-congress/house-bill/5376

(Last visited Jan. 27, 2022).
6 Internal Revenue Code (IRC), s. 6050I. Cash payment report helps government combat money laundering, IRS,

https://www.irs.gov/newsroom/cash-payment-report-helps-government -combat-money-laundering (Last visited Jan. 27,
2022).
7 IRC, s. 7701(a)(1).
8 IRC, s. 6050I(d)
9 See IRC, s. 6050I(d) and (f). A “designated reporting transaction” is the retail sale of tangible personal property that’s

generally suited for personal use, expected to last at least one year and has a sales price of more than $10,000, such as
sales of automobiles, jewelry, mobile homes, and furniture, the sale of a collectible, or the sale of travel and entertainment
if the total price of the items for the same trip or entertainment event is more than $10,000. Cash payment report helps
government combat money laundering, IRS, https://www.irs.gov/newsroom/cash-payment-report-helps-government-
combat-moneylaundering, (Last visited Jan. 13, 2022).
10 Id. 31 C.F.R. ss. 1010.306, 1010.311, and 1010.313; and 31 U.S.C. ss. 5312 and 5313
STORAGE NAME: h0641b.COM                                                                                               PAGE: 2
DATE: 1/28/2022
        Banks and other financial institutions are also required to file suspicious activity reports (SARs) with
        FinCEN.11 A SAR is required following the discovery of: insider abuse involving any amount, violations
        aggregating $5,000 or more where a suspect can be identified, violations aggregating $25,000 or more
        regardless of a potential suspect, or transactions aggregating $5,000 or more that involve potential
        money laundering or violations of the Bank Secrecy Act.12

        Leak of Tax Return Data

        On June 8th, 2021, ProPublica published an article which revealed a massive leak of tax return data
        from the IRS and brought into question IRS’s ability to protect taxpayer information.13

        The Infrastructure Investment and Jobs Act

        The Infrastructure Investment and Jobs Act (Act) was signed into law on November 15, 2021.14 The Act
        adds additional reporting requirements for a broker that facilitates the movement of “digital assets,” or
        cryptocurrency.15 Applicable to returns required to be filed and statements required to be furnished after
        December 31, 2023, the Act:
             Expands the definition of broker to include “any person who (for consideration) is responsible for
                regularly providing any service effectuating transfers of digital assets on behalf of another
                person.”16 A broker is required to file a return with the IRS showing the name and address of
                each customer with details regarding gross proceeds and other information.17
             Modifies the definition of “specified security” to include digital assets.
             Requires brokers to report transfers of digital assets that are not otherwise subject to reporting
                to the IRS.18

        The act also expands the definition of cash for purposes of cash reporting to include digital assets. By
        including digital assets in the definition of cash, the Act extends the reporting requirements for
        transactions of more than $10,000 in cash to transactions involving digital assets of more than $10,000.
        The new reporting requirement requires a person that is currently required to comply with cash
        reporting requirements to collect information and report to the IRS details of transactions involving
        digital assets, or cryptocurrency transactions, of more than $10,000.19

        Legislative Memorials

        Legislative memorials are not subject to the Governor’s veto power and are not presented to the
        Governor for review. Memorials have no force of law, as they are mechanisms for formally petitioning
        the federal government to act on a particular subject.




11 12 C.F.R. 21.11; 31 C.F.R. ss. 1010.320 and 1020.320;       s. 655.50, F.S.
12 National Credit  Union Administration, Suspicious Activity Reports, https://www.ncua.gov/regulation-
supervision/manuals-guides/suspicious-activity-report (last visited Jan. 27, 2022).
13 The Secret IRS Files: Trove of Never-Before-Seen Records Reveal How the Wealthiest Avoid Income Tax

https://www.propublica.org/article/the-secret-irs-files-trove-of-never-before-seen-records-reveal-how-the-wealthiest-avoid-
income-tax (last visited Jan. 27, 2022)
14 Infrastructure and Jobs Act, Pub. L. No. 117-58 (2021), § 80603, https://www.congress.gov/bill/117th-congress/house-

bill/3684/text (Last visited Jan. 27, 2022).
15 Id. IRC, s. 6045(g)(3)(D) defines “digital asset” to mean, except as otherwise provided by the [United States] Secretary

[of the Treasury], any digital representation of value which is recorded on a cryptographically secured distributed ledger or
any similar technology as specified by the Secretary .
16 Id. IRC, s. 6045(c)(1)(D).
17 Id. IRC, s. 6045(a).
18 Id. IRC, s. 6045A(d).
19 Id. IRC, s. 6050I(d).
STORAGE NAME: h0641b.COM                                                                                              PAGE: 3
DATE: 1/28/2022
       Proposed Changes

       The House memorial would urge the United States Congress to oppose the reporting requirements
       placed on financial institutions, small businesses, and law abiding citizens, which are included in the
       Biden administration’s tax increase proposal, and would dispatch a message to that effect.

       Copies of the memorial will be sent by Florida’s Secretary of State to the President of the United
       States, the President of the United States Senate, the Speaker of the United States House of
       Representatives, and each member of the Florida delegation to the United States Congress.

       The memorial contains seven whereas clauses. The clauses outline concerns regarding data privacy
       and security relating to a proposed expansion of reporting requirements as well as concerns regarding
       additional regulations imposed on financial institutions.

   B. SECTION DIRECTORY:
       Not applicable.


                         II. FISCAL ANALYSIS & ECONOMIC IMPACT STATEMENT

   A. FISCAL IMPACT ON STATE GOVERNMENT:

       1. Revenues:
           None.

       2. Expenditures:
           None.

   B. FISCAL IMPACT ON LOCAL GOVERNMENTS:

       1. Revenues:
           None.

       2. Expenditures:
           None.

   C. DIRECT ECONOMIC IMPACT ON PRIVATE SECTOR:
       None.

   D. FISCAL COMMENTS:
       None.


                                               III. COMMENTS

   A. CONSTITUTIONAL ISSUES:

       1. Applicability of Municipality/County Mandates Provision:
         Not applicable.

       2. Other:
         N/A

STORAGE NAME: h0641b.COM                                                                                    PAGE: 4
DATE: 1/28/2022
   B. RULE-MAKING AUTHORITY:
       None.

   C. DRAFTING ISSUES OR OTHER COMMENTS:
       None.


                           IV. AMENDMENTS/COMMITTEE SUBSTITUTE CHANGES




STORAGE NAME: h0641b.COM                                                 PAGE: 5
DATE: 1/28/2022
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

                                R E P R E S E N T A T I V E S
           


           HM 641                                                                                                2022


    1                                                House Memorial
    2               A memorial to the Congress of the United States,
    3               urging Congress to oppose the intrusive Internal
    4               Revenue Service reporting requirements placed on
    5               financial institutions included in the Biden
    6               administration's tax increase proposal.
    7
    8               WHEREAS, the Biden administration's tax increase proposal
    9      for fiscal year 2022 includes a number of provisions that would
10         place undue burdens on financial institutions, small businesses,
11         and law-abiding citizens, and
12                  WHEREAS, one proposal seeks to increase tax payment
13         enforcement measures by requiring peer-to-peer payment
14         transaction applications as well as financial institutions to
15         annually report aggregated data on all account inflows and
16         outflows of $10,000 or more to the Internal Revenue Service
17         (IRS), and
18                  WHEREAS, the reports would also disclose whether
19         transactions involved physical cash, foreign accounts, or
20         transfers between accounts with the same owner, negatively
21         impacting the privacy rights of Americans, compliance costs, and
22         low-income communities, and
23                  WHEREAS, the proposal's $10,000 threshold for reporting
24         would ensnare many active financial institution accounts,
25         including those owned by individuals and small businesses,

                                                         Page 1 of 3

        CODING: Words stricken are deletions; words underlined are additions.
                                                                                                                hm0641-00
F   L   O   R    I   D   A    H   O   U   S   E     O    F     R    E   P    R   E   S   E   N   T   A   T    I   V   E   S

                             R E P R E S E N T A T I V E S
        


        HM 641                                                                                                2022


26      requiring the financial data of the majority of those accounts
27      to be sent to the IRS, an agency that experiences more than one
28      billion cyberattacks each year, and
29               WHEREAS, a June 2021 ProPublica article revealed a massive
30      leak of tax return data from the IRS, demonstrating that the
31      agency is unable or unwilling to protect taxpayer information,
32      and given its many vulnerabilities in cybersecurity, the IRS
33      should not be trusted with more private information, and
34               WHEREAS, by holding financial institutions responsible for
35      data collection and reporting, the proposal would force
36      financial institutions to increase spending on additional
37      staffing, technology, and other resources, which could then be
38      passed on to the depositors, thus burdening tax-compliant
39      citizens and small businesses, and
40               WHEREAS, the Biden administration's tax increase proposal
41      fails to consider cybersecurity risks and unjust burdens on law -
42      abiding citizens, financial institutions, and small businesses,
43      and the United States Congress should oppose this unprecedented
44      intrusion into the privacy rights of Americans, NOW, THEREFORE,
45
46      Be It Resolved by the Legislature of the State of Florida:
47
48               That the Congress of the United States is urged to oppose
49      the intrusive Internal Revenue Service reporting requirements



                                                      Page 2 of 3

     CODING: Words stricken are deletions; words underlined are additions.
                                                                                                             hm0641-00
F   L   O   R    I   D   A    H   O   U   S   E     O    F     R    E   P    R   E   S   E   N   T   A   T    I   V   E   S

                             R E P R E S E N T A T I V E S
        


        HM 641                                                                                                2022


50      placed on financial institutions included in the Biden
51      administration's tax increase proposal.
52               BE IT FURTHER RESOLVED that copies of this memorial be
53      dispatched to the President of the United States, to the
54      President of the United States Senate, to the Speaker of the
55      United States House of Representatives, and to each member of
56      the Florida delegation to the United States Congress.




                                                      Page 3 of 3

     CODING: Words stricken are deletions; words underlined are additions.
                                                                                                             hm0641-00
CS/HB 831
                                  HOUSE OF REPRESENTATIVES STAFF ANALYSIS
BILL #:     CS/HB 831 Licensure Requirements for Land Surveyors and Mappers
SPONSOR(S): Regulatory Reform Subcommittee, Mariano
TIED BILLS:       IDEN./SIM. BILLS: SB 1286

  REFERENCE                                                   ACTION                  ANALYST            STAFF DIRECTOR or
                                                                                                         BUDGET/POLICY CHIEF

  1) Regulatory Reform Subcommittee                           12 Y, 5 N, As CS        Thompson           Anstead

  2) Commerce Committee                                                               Thompson           Hamon


                                             SUMMARY ANALYSIS
Chapter 472, F.S., governs the practice of land surveying and mapping in Florida. Through the Florida Board of
Professional Surveyors and Mappers (Board), the Department of Agriculture and Consumer Services (DACS)
licenses and regulates professional surveyors and mappers in the state. Current law provides education and
experience prerequisites that must be met in order to be eligible to take the licensure examination to practice
as a surveyor and mapper.

Currently, applicants must at least have a bachelor’s degree in a related course of study and a minimum of
four years of experience working under a professional surveyor in order to take the licensure examination.

Applicants with a bachelor’s degree in an unrelated course of study must have six years of experience, and
complete a minimum of 25 semester hours from a college or university approved by the board in surveying
and mapping related subjects in order to take the licensure examination.

The bill provides additional pathways to qualify to take the licensure examination as follows:
    Allows applicants with a high school diploma or an associate’s degree, who complete 25 hours of
        coursework in surveying and mapping, and six years of experience under a professional surveyor
        and mapper to be eligible to take the licensure examination.
    Allows applicants who qualified to obtain a surveying and mapping license in another state that hold a
        license to practice in another state and have two years of experience in the active practice of
        surveying and mapping to be eligible to take the licensure examination.
    Allows applicants with a registered apprenticeship certificate in surveying and mapping and an
        experience record of two or more years in the active practice of mapping to be eligible to take the
        licensure examination.

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

The effective date of the bill is July 1, 2022.




This docum ent does not reflect the intent or official position of the bill sponsor or House of Representatives .
STORAGE NAME: h0831b.COM
DATE: 1/28/2022
                                                      FULL ANALYSIS

                                               I. SUBSTANTIVE ANALYSIS

    A. EFFECT OF PROPOSED CHANGES:
         Background

         Land Surveying and Mapping

         Chapter 472, F.S., governs the practice of land surveying and mapping in Florida. Through the Florida
         Board of Professional Surveyors and Mappers (Board), the Department of Agriculture and Consumer
         Services (DACS) licenses and regulates professional surveyors and mappers in the state. 1

         These regulations include, but are not limited to:2
             Examination;
             Licensure, including certificates of authorization;
             Continuing education;
             Seals;
             Standards of practice;
             Prohibitions and penalties;
             Disciplinary guidelines;
             Investigative procedures;
             Power to administer oaths, take depositions, and issue subpoenas;
             Unlicensed activities; and
             Elevation certificates.

         According to DACS, licensed surveyors and mappers make exact measurements and determine
         property boundaries. They provide data relevant to the shape, contour, gravitation, location, elevation
         or dimension of land or land features on or near the earth's surface for engineering, mapmaking,
         mining, land evaluation, construction and other purposes. 3

         The Board has authority to adopt rules to implement ch. 472, F.S., subject to approval by DACS.4
         Effective October 1, 2009, the regulation of professional surveyors and mappers by the Board was
         transferred from the Department of Business and Professional Regulation (DBPR) to DACS.5

         According to DACS, there are 2,579 surveyors and mappers currently licensed in Florida.6

         Licensing Examinations

         Current law provides education and experience prerequisites that must be met in order to be eligible to
         take the licensure examination to practice as a surveyor and mapper or as a surveyor and mapper
         intern.7 All applicants must be approved by the Board prior to taking any examination.

         All pathways to licensure as a professional surveyor and mapper in Florida require at least a four-year
         college degree. The prerequisites to take the licensure examination to practice as a surveyor and
         mapper are as follows:


1 S. 472.007,   F.S.
2 See ch. 472, F.S.
3 Florida Department of Agriculture and Consumer Services, Consumer Services, Surveyors and Mappers,

https://www.fdacs.gov/Business -Services/Surveyors-and-Mappers (last visited Jan. 5, 2022).
4 S. 472.008, F.S.
5 Ch. 2009-66, Laws of Fla.
6 Email from Carlos Nathan, Legislative Affairs Director, Department of Agriculture and Consumer Services, Re: Surveyors Data,

(Jan. 6, 2022).
7 S. 472.013, F.S.
STORAGE NAME: h0831b.COM                                                                                                  PAGE: 2
DATE: 1/28/2022
                   A bachelor’s degree in surveying and mapping or in a similarly titled program:
                       o Four or more years of work experience under a professional surveyor;
                       o All four years of work experience must have been in responsible charge of the accuracy
                          and correctness of the surveying work performed; or
                   A bachelor’s degree in a course of study other than surveying and mapping:
                       o Six or more years of work experience under a professional surveyor;
                       o Five of the six years of experience must have been in responsible charge of the
                          accuracy and correctness of the surveying work performed.
                       o These applicants must also complete a minimum of 25 semester hours from a college
                          or university approved by the board in surveying and mapping subjects or in any
                          combination of courses in civil engineering, surveying, mapping, mathematics,
                          photogrammetry, forestry, or land law and the physical sciences.

          The following is a chart outlining these education and work experience prerequisites:

                         Type of Applicant        Type of Degree               Work Experience


                    Surveyor and Mapper       Surveying and Mapping        4 or more years
                    (Option 1)                Bachelor’s Degree            subordinate to surveyor
                                                                           and mapper and in
                                                                           “responsible charge” of
                                                                           work performed
                    Surveyor and Mapper       Non-Surveying and            6 or more years
                    (Option 2)                Mapping Bachelor’s           subordinate to surveyor
                                              Degree; and                  and mapper of which
                                              25 semester hours            5 years must be in
                                              surveying and mapping        “responsible charge” of
                                              subjects                     work performed


         The board, by rule,8 is authorized to establish fees for examination. The initial application and
         examination fee must not exceed $125 plus the actual per applicant cost to DACS to purchase the
         examination from the National Council of Engineering Examiners or a similar national organization. The
         examination fee must be sufficient to cover the cost of obtaining and administering the examination and
         is refundable if the applicant is found ineligible to sit for the examination. The application fee is
         nonrefundable.9

         Exiled Foreign-Trained Professionals

         Exiled foreign-trained professionals that wish to become surveyors and mappers must have graduated
         with an appropriate college degree from a college or university and must have lawfully practiced the
         profession for at least three years. Specifically, an exiled professional is eligible for examination if the
         exiled professional satisfies all of the following seven requirements:
              Immigrated to the United States after leaving the person’s home country because of political
                 reasons, provided the country is located in the Western Hemisphere and does not have
                 diplomatic relations with the United States;
              Applied to DACS and submits a fee;
              Was a resident of this state immediately preceding the person’s application;
              Demonstrated to DACS, through submission of documentation verified by the applicant’s
                 respective professional association in exile, that the applicant graduated with an appropriate
                 professional or occupational degree from a college or university.



8 R. 5J-17.070,   F.S.
9 S. 472.011,   F.S.
STORAGE NAME: h0831b.COM                                                                                       PAGE: 3
DATE: 1/28/2022
                       o    However, DACS may not require receipt of any documentation from the Republic of
                            Cuba as a condition of eligibility under this section;
                   Lawfully practiced the profession for at least 3 years;
                   Prior to 1980, successfully completed an approved course of study pursuant to chapters 74-105
                    and 75-177, Laws of Florida; and
                   Presented a certificate demonstrating the successful completion of a continuing education
                    program, which offers a course of study that will prepare the applicant for the examination.
                        o The department shall develop rules for the approval of such programs for the board.10

         Upon request of a person who meets the requirements for foreign-trained professionals and submits an
         examination fee, DACS, for the Board, is required to conduct a written practical examination that tests
         the person’s current ability to practice the profession competently in accordance with the actual practice
         of the profession. The fees charged for the examinations are established by DACS, for the board, by
         rule,11 and must be sufficient to develop or to contract for the development of the examination and its
         administration, grading, and grade reviews.12

         Licensure by Endorsement – Out of State Applicants

         The board is required to certify as qualified for a license by endorsement an applicant who, at the time
         of application, holds a valid license to practice surveying and mapping issued by another state or
         territory of the United States, if:
               The license was issued before July 1, 1999; the applicant has passed a national, regional, state,
                  or territorial licensing examination that is substantially equivalent to the examination required by
                  s. 472.013, F.S.; and the applicant has a specific experience record of at least eight years as a
                  subordinate to a registered surveyor and mapper in the active practice of surveying and
                  mapping, six years of which must be of a nature indicating that the applicant was in responsible
                  charge of the accuracy and correctness of the surveying and mapping work performed; or
               The criteria for issuance of the license by another state are substantially the same as the
                  licensure criteria that existed in Florida at the time the license was issued. 13

         All applicants for licensure by endorsement must also pass the Florida law and rules portion of the
         examination prior to licensure.14

         Florida law does not provide practicing surveyors and mappers from other states with less than a four-
         year degree a pathway to licensure unless they were licensed in the other state prior to July 1, 1999,
         or prior to Florida having a four-year degree requirement.

         Recent Trends

         According to the Bureau of Labor Statistics, in 2020 there were 45,000 working surveyors in the U.S.,
         15,000 were 34 years of age or younger, and 11,000 were over the age of 55.15 Many in the profession
         are baby boomers who will be retiring and need to be replaced.16
         The average age of a surveyor in the U.S. is 45 and 69% of surveyors are over the age of 40. In
         addition, reports indicate that 45% of surveyors in the U.S. hold a bachelor’s degree, 42 % hold an
         associate’s degree or a certificate and 18% hold a high school diploma. 17

10 S. 472.001(1),   F.S.
11 R. 5J-17.210,   F.A.C.
12 S. 472.0101, F.S.
13 S. 472.015, F.S.
14 Id.
15 U.S. Bureau of Labor Statistics, Labor Force Statistics from the Current Population Survey, https://www.bls.gov/cps/cpsaat11b.pdf

(last visited Jan. 5, 2022).
16 U.S. Bureau of Labor Statistics, Occupational Outlook Handbook, https://www.bls.gov/ooh/architecture-and-

engineering/surveyors.htm#tab-6 (last visited Jan. 5, 2022).
17 Florida Surveying & Mapping Society, FAQ: How to Become a Licensed Surveyor, https://www.fsms.org/how-to-become-a-

surveyor (Last visited Jan. 21, 2022); See also, Zippa, The Career Expert, Surveyor, Demographics and Statistics in the US,
https://www.zippia.com/surveyor-jobs/demographics/
STORAGE NAME: h0831b.COM                                                                                                    PAGE: 4
DATE: 1/28/2022
         Some in the industry have indicated that a shortage may exist in the profession because of extensive
         education expectations and cost. Many state boards require a four-year degree before beginning work
         in the surveying field. These requirements might hinder those from pursuing a surveying path.
         Nationally there appears to be a decline in the number of students graduating from surveying
         programs.18

         In Florida, the number of licensed surveyors has decreased by 305 licensees, from 2,884 licensees in
         2013 to 2,579 licensees in 2021.19

         Other States

         Each state and territory in the U.S. require those who perform the tasks defined as the practice of
         surveying to hold a professional surveying license. Most states require professional surveyors to meet
         a combination of requirements in education and exams.20

         Generally, while each state board for surveyors has its own requirements for licensure, potential
         licensees will follow a similar path of prerequisites to obtain a license in any state. Prerequisites
         typically include:
              An education requirement - Sometimes a high school diploma but some states also require a
                  four-year degree from an accredited surveying program.
              Successful completion of a Fundamentals of Surveying (FS) written examination - testing an
                  applicant’s breadth of understanding of basic surveying principles.
              Successful completion of a written Principles and Practice of Surveying (PS) examination -
                  testing an applicant's knowledge and competency of surveying skills.
              A requisite amount of surveying experience - which for most states is four years and is usually
                  under the supervision of a professional surveyor.21

         According to research, in 2020, the education and experience requirements in all 50 states appear to
         indicate the following patterns:
              Most states require at least a four-year degree and four years of professional experience.
              Typically, the extent of the degree is relative to the amount of professional experience required.
              Fourteen states provide an option that requires only a high school diploma (or do not have any
                 educational requirements) along with a certain amount of professional experience.
              Six states provide an option that does not require the completion of a degree, but requires the
                 completion of a certain amount of survey and mapping coursework and professional
                 experience.
              The degrees that are required are typically in a surveying and mapping curriculum, a curriculum
                 related to surveying and mapping, or an unrelated curriculum but with a certain amount of
                 coursework in a surveying related curriculum.
              States that allow postgraduate coursework in a surveying curriculum allow the coursework to be
                 substituted for professional experience.
              Twenty-eight states do not provide an education-less alternative method of licensure.22

         One example of a state that allows a number of different pathways to licensure is North Carolina:




18 Nearterm Blog, Is There a Shortage of Land Surveyors? (Nov. 2, 2020),      https://nearterm.com/is-there-a-shortage-of-land-surveyors/
(last visited Jan. 5, 2022).
19 Email from Carlos Nathan, Legislative Affairs Director, Department of Agriculture and Consumer Services, Re: Surveyors Data,

(Jan. 6, 2022).
20 The National Council of Examiners for Engineering and Surveying (NCEES), Surveying Licensure,

https://ncees.org/surveying/surveying-licensure/ (last visited Jan. 5, 2022).
21 The National Council of Examiners for Engineering and Surveying (NCEES), NCEES Member Licensing Boards,

https://ncees.org/member-licensing-boards/ (last visited Jan. 5, 2022).
22 NCEES, supra note 19.
STORAGE NAME: h0831b.COM                                                                                                        PAGE: 5
DATE: 1/28/2022
               Graduates with a Bachelor’s degree can take the licensing exam after two years of practical
                land surveying experience. At least one year of experience must be under the supervision of a
                professional land surveyor.
               Graduates with a two-year Associate’s degree in surveying can take the licensing exam with
                four years of progressive experience.
               Graduates with a high school diploma can take the licensing exam after seven years.23

        Effect of the Bill

        The bill changes language in the licensing requirements that allowed the Board to approve educational
        institutions and coursework to specify that applicants can obtain the required degree from “a college or
        university accredited by an accrediting body recognized by the United States Department of Education.”

        The bill creates additional pathways for people to become licensed as a surveyor and mapper, while
        maintaining the prerequisite to take the licensure examination. Applicants are no longer required to
        obtain a four year bachelor’s degree if the applicant:
             Received an associate degree or a high school diploma and completes a minimum of 25
                 semester hours specific to surveying and mapping at a college or university accredited by an
                 accrediting body recognized by the United States Department of Education.
                     o The hours may be from courses in civil engineering, surveying, mapping, mathematics,
                         photogrammetry, forestry, or land law and the physical sciences.
             Such applicants must have six or more years’ experience as a subordinate to a professional
                 surveyor and mapper in the active practice of surveying and mapping, which experience is of a
                 nature indicating that the applicant was in responsible charge.

        The bill amends the licensure by endorsement requirements allowing an out of state applicant to be
        eligible to take the licensure examination if they:
              Hold a valid license to practice surveying and mapping in another state, jurisdiction, or
                 territory; and
              Have two years of experience in the active practice of surveying and mapping, which
                 experience is of a nature indicating that the applicant was in responsible charge of the accuracy
                 and correctness of the surveying and mapping work performed.

        In addition, the bill creates a pathway to be eligible to take the licensure examination for applicants who
        have:
             Received a registered apprenticeship certificate in surveying and mapping after completing a
                 registered apprenticeship program approved by the Department of Education; and
             Have an experience record of two or more years as a subordinate to a professional surveyor
                 and mapper in the active practice of surveying and mapping, which experience is of a nature
                 indicating that the applicant was in responsible charge of the accuracy and correctness of the
                 surveying and mapping work performed.

        Work experience acquired as a part of the education requirement may not be construed as experience
        in responsible charge.

        The bill allows exiled foreign-trained professionals who have practiced the profession for three years to
        substitute this experience for the current education requirement.

    B. SECTION DIRECTORY:
        Section 1:      amends s. 472.0101, F.S., relating to foreign-trained professionals, special examination
                        and license provisions.

        Section 2:      amends s. 472.013, F.S., relating to examinations, prerequisites.


23 North Carolina Society of Surveyors,
                                      Licensure Requirements in North Carolina,
https://www.ncsurveyors.com/education/licensure_requirements (last visited Jan. 20, 2022).
STORAGE NAME: h0831b.COM                                                                                    PAGE: 6
DATE: 1/28/2022
         Section 3:       amends s. 472.003, F.S., conforming a cross-reference to changes made by the act.

         Section 4:       provides an effective date of July 1, 2022.


                            II. FISCAL ANALYSIS & ECONOMIC IMPACT STATEMENT

     A. FISCAL IMPACT ON STATE GOVERNMENT:

         1. Revenues:
             Indeterminate. The bill may have a positive impact on examination and licensing revenue, to the
             extent that additional individuals will take the licensure examination and become licensed. All funds
             collected are deposited into the DACS General Inspection Trust Fund. According to DACS, the bill
             will not have a fiscal impact on the Department.24

         2. Expenditures:
             Indeterminate. The bill may result in DACS processing additional applications for examination and
             licensure. However, DACS can likely absorb the related cost within existing resources. According to
             DACS, the bill will not have a fiscal impact on the Department.25

     B. FISCAL IMPACT ON LOCAL GOVERNMENTS:

         1. Revenues:
             None.

         2. Expenditures:
             None.

     C. DIRECT ECONOMIC IMPACT ON PRIVATE SECTOR:
         The bill creates additional pathways so that applicants are no longer required to obtain a bachelor’s
         degree to qualify to take the licensure examination to practice as a surveyor and mapper, which will
         lower the cost and time it takes to become licensed, and allow more people to practice their chosen
         profession.

     D. FISCAL COMMENTS:
         None.

                                                      III. COMMENTS

     A. CONSTITUTIONAL ISSUES:

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

         2. Other:
           None.

     B. RULE-MAKING AUTHORITY:



24 Department of Agriculture and Consumer Services, Agency Analysis of 2022 HB 831, p. 3 (Jan. 3, 2022).
25 Id.
STORAGE NAME: h0831b.COM                                                                                    PAGE: 7
DATE: 1/28/2022
       Agency rules may have to be amended to change current education and work experience
       requirements. Current law appears to provide sufficient rulemaking authority for DACS to implement the
       bill.

   C. DRAFTING ISSUES OR OTHER COMMENTS:
       None.

                           IV. AMENDMENTS/ COMMITTEE SUBSTITUTE CHANGES

       On January 20, 2022, the Regulatory Reform Subcommittee adopted two amendments and reported
       the bill favorably as a committee substitute. The committee substitute:
            Removes the definition for “accredited colleges and universities” from the bill.
            Specifies that the colleges and universities referenced in the bill must be accredited by an
                 accrediting body recognized by the United States Department of Education.

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




STORAGE NAME: h0831b.COM                                                                              PAGE: 8
DATE: 1/28/2022
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




           CS/HB 831                                                                                            2022




    1                                         A bill to be entitled
    2              An act relating to licensure requirements for land
    3              surveyors and mappers; amending s. 472.0101, F.S.;
    4              authorizing an exiled professional to substitute a
    5              specified lawful practice of the profession for the
    6              education requirement of the examination; amending s.
    7              472.013, F.S.; revising education requirements for
    8              licensure to include an applicant who has received an
    9              associate degree under certain circumstances;
10                 requiring such education to be from a college or
11                 university accredited by an accrediting body
12                 recognized by the United States Department of
13                 Education; providing that specified experience may be
14                 substituted for education requirements for licensure
15                 as a land surveyor or mapper; providing that an
16                 applicant who holds a valid license from another
17                 state, jurisdiction, or territory, and has certain
18                 experience in the practice of surveying and mapping
19                 may take the licensure examination to practice as a
20                 land surveyor or mapper in this state; providing that
21                 completion of a specified apprenticeship program may
22                 be substituted for education requirements for
23                 licensure as a land surveyor or mapper; amending s.
24                 472.003, F.S.; conforming a cross-reference to changes
25                 made by the act; providing an effective date.

                                                         Page 1 of 7

        CODING: Words stricken are deletions; words underlined are additions.
                                                                                                            hb0831-01-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 831                                                                                            2022




26
27      Be It Enacted by the Legislature of the State of Florida:
28
29              Section 1.          Paragraphs (e) and (f) of subsection (1) of
30      section 472.0101, Florida Statutes are amended, and paragraph
31      (d) of that subsection is republished, to read:
32              472.0101           Foreign-trained professionals; special
33      examination and license provisions.—
34              (1)         When not otherwise provided by law, the department
35      shall by rule provide procedures under which exiled
36      professionals may be examined under this chapter. A person is
37      eligible for the examination if the exiled professional:
38              (d) Demonstrates to the department, through submission of
39      documentation verified by the applicant's respective
40      professional association in exile, that the applicant was
41      graduated with an appropriate professional or occupational
42      degree from a college or university. However, the department may
43      not require receipt of any documentation from the Republic of
44      Cuba as a condition of eligibility under this section;
45              (e)         A person who has lawfully practiced the profession for
46      at least 3 years may substitute such practice of the profession
47      for the education requirement under paragraph (d);
48              (f)         Before Prior to 1980, successfully completed an
49      approved course of study pursuant to chapters 74-105 and 75-177,
50      Laws of Florida; and

                                                      Page 2 of 7

     CODING: Words stricken are deletions; words underlined are additions.
                                                                                                         hb0831-01-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 831                                                                                            2022




51              Section 2.         Subsection (2) of section 472.013, Florida
52      Statutes, is amended to read:
53              472.013        Examinations, prerequisites.—
54              (2)         An applicant shall be entitled to take the licensure
55      examination to practice in this state as a surveyor and mapper
56      if the applicant is of good moral character and has satisfied
57      one of the following requirements:
58              (a)         The applicant has received a bachelor's degree, its
59      equivalent, or higher in surveying and mapping or a similarly
60      titled program, including, but not limited to, geomatics,
61      geomatics engineering, and land surveying, from a college or
62      university accredited by an accrediting body recognized by the
63      United States Department of Education board and has a specific
64      experience record of 4 or more years as a subordinate to a
65      professional surveyor and mapper in the active practice of
66      surveying and mapping, which experience is of a nature
67      indicating that the applicant was in responsible charge of the
68      accuracy and correctness of the surveying and mapping work
69      performed. Work experience acquired as a part of the education
70      requirement may not be construed as experience in responsible
71      charge.
72              (b)         The applicant has received a bachelor's degree, its
73      equivalent, or higher in a course of study, other than in
74      surveying and mapping, at a an accredited college or university
75      accredited by an accrediting body recognized by the United

                                                      Page 3 of 7

     CODING: Words stricken are deletions; words underlined are additions.
                                                                                                         hb0831-01-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 831                                                                                            2022




 76      States Department of Education and has a specific experience
 77      record of 6 or more years as a subordinate to a registered
 78      surveyor and mapper in the active practice of surveying and
 79      mapping, which experience is 5 years of which shall be of a
 80      nature indicating that the applicant was in responsible charge
 81      of the accuracy and correctness of the surveying and mapping
 82      work performed. The applicant must have completed a minimum of
 83      25 semester hours from a college or university accredited by an
 84      accrediting body recognized by the United States Department of
 85      Education approved by the board in surveying and mapping
 86      subjects or in any combination of courses in civil engineering,
 87      surveying, mapping, mathematics, photogrammetry, forestry, or
 88      land law and the physical sciences. Any of the required 25
 89      semester hours of study completed not as a part of the
 90      bachelor's degree, its equivalent, or higher may be approved at
 91      the discretion of the board. Work experience acquired as a part
 92      of the education requirement may not be construed as experience
 93      in responsible charge.
 94              (c)         The applicant has received an associate degree and has
 95      a specific experience record of 6 or more years as a subordinate
 96      to a professional surveyor and mapper in the active practice of
 97      surveying and mapping, which experience is of a nature
 98      indicating that the applicant was in responsible charge of the
 99      accuracy and correctness of the surveying and mapping work
100      performed. The applicant must have completed a minimum of 25

                                                       Page 4 of 7

      CODING: Words stricken are deletions; words underlined are additions.
                                                                                                          hb0831-01-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 831                                                                                            2022




101      semester hours from a college or university accredited by an
102      accrediting body recognized by the United States Department of
103      Education in surveying and mapping subjects or in any
104      combination of courses in civil engineering, surveying, mapping,
105      mathematics, photogrammetry, forestry, or land law and the
106      physical sciences. Work experience acquired as a part of the
107      education requirement may not be construed as experience in
108      responsible charge.
109              (d)         The applicant has received a high school diploma, or
110      its equivalent, and has a specific experience record of 6 or
111      more years as a subordinate to a professional surveyor and
112      mapper in the active practice of surveying and mapping, which
113      experience is of a nature indicating that the applicant was in
114      responsible charge of the accuracy and correctness of the
115      surveying and mapping work performed. The applicant must have
116      completed a minimum of 25 semester hours from a college or
117      university accredited by an accrediting body recognized by the
118      United States Department of Education in surveying and mapping
119      subjects or in any combination of courses in civil engineering,
120      surveying, mapping, mathematics, photogrammetry, forestry, or
121      land law and the physical sciences. Work experience acquired as
122      a part of the education requirement may not be construed as
123      experience in responsible charge.
124              (e)         The applicant holds a valid license to practice
125      surveying and mapping in another state, jurisdiction, or

                                                       Page 5 of 7

      CODING: Words stricken are deletions; words underlined are additions.
                                                                                                          hb0831-01-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 831                                                                                            2022




126      territory, and has 2 years of experience in the active practice
127      of surveying and mapping, which experience is of a nature
128      indicating that the applicant was in responsible charge of the
129      accuracy and correctness of the surveying and mapping work
130      performed.
131              (f)         The applicant has received a registered apprenticeship
132      certificate in surveying and mapping after completing a
133      registered apprenticeship program approved by the Department of
134      Education and has a specified experience record of 2 or more
135      years as a subordinate to a professional surveyor and mapper in
136      the active practice of surveying and mapping, which experience
137      is of a nature indicating that the applicant was in responsible
138      charge of the accuracy and correctness of the surveying and
139      mapping work performed. Work experience acquired as a part of
140      the education requirement may not be construed as experience in
141      responsible charge.
142              Section 3.         Subsection (4) of section 472.003, Florida
143      Statutes, is amended to read:
144              472.003        Persons not affected by ss. 472.001-472.037.—
145      Sections 472.001-472.037 do not apply to:
146              (4)         Persons employed by county property appraisers, as
147      defined at s. 192.001(3), and persons employed by the Department
148      of Revenue, to prepare maps for property appraisal purposes
149      only, but only to the extent that they perform mapping services
150      which do not include any surveying activities as described in s.

                                                       Page 6 of 7

      CODING: Words stricken are deletions; words underlined are additions.
                                                                                                          hb0831-01-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 831                                                                                            2022




151      472.005 s. 472.005(4)(a) and (b).
152              Section 4.         This act shall take effect July 1, 2022.




                                                       Page 7 of 7

      CODING: Words stricken are deletions; words underlined are additions.
                                                                                                          hb0831-01-c1
                                COMMERCE COMMITTEE

                             HB 831 by Rep. Mariano
             Licensure Requirements for Land Surveyors and Mappers

                                AMENDMENT SUMMARY
                                   February 1, 2022


Amendment 1 by Rep. Mariano (lines 72-123):
  • Revises the work experience requirements for applicants for the surveying and mapping
     state licensure examination to be six or more years total work experience, five years of
     which must be in responsible charge of the work performed. This applies to applicants
     who have:
         o A bachelor’s degree in non-surveying and mapping subjects.
         o An associate degree.
         o A high school diploma.
                                           COMMITTEE/SUBCOMMITTEE AMENDMENT
                                                 Bill No. CS/HB 831   (2022)
       Amendment No. 1




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


 1     Committee/Subcommittee hearing bill:      Commerce Committee
 2     Representative Mariano offered the following:
 3
 4          Amendment
 5          Remove lines 72-123 and insert:
 6          (b)    The applicant has received a bachelor's degree, its
 7     equivalent, or higher in a course of study, other than in
 8     surveying and mapping, at a an accredited college or university
 9     accredited by an accrediting body recognized by the United
10     States Department of Education and has a specific experience
11     record of 6 or more years as a subordinate to a registered
12     surveyor and mapper in the active practice of surveying and
13     mapping, 5 years of which shall be of a nature indicating that
14     the applicant was in responsible charge of the accuracy and
15     correctness of the surveying and mapping work performed. The
16     applicant must have completed a minimum of 25 semester hours
     341993 - h0831-lines 72-123.docx
      Published On: 1/31/2022 5:44:38 PM
                                   Page 1 of 3
                                           COMMITTEE/SUBCOMMITTEE AMENDMENT
                                                Bill No. CS/HB 831   (2022)
       Amendment No. 1


17     from a college or university accredited by an accrediting body
18     recognized by the United States Department of Education approved
19     by the board in surveying and mapping subjects or in any
20     combination of courses in civil engineering, surveying, mapping,
21     mathematics, photogrammetry, forestry, or land law and the
22     physical sciences. Any of the required 25 semester hours of
23     study completed not as a part of the bachelor's degree, its
24     equivalent, or higher may be approved at the discretion of the
25     board. Work experience acquired as a part of the education
26     requirement may not be construed as experience in responsible
27     charge.
28          (c)   The applicant has received an associate degree and has
29     a specific experience record of 6 or more years as a subordinate
30     to a professional surveyor and mapper in the active practice of
31     surveying and mapping, 5 years of which shall be of a nature
32     indicating that the applicant was in responsible charge of the
33     accuracy and correctness of the surveying and mapping work
34     performed. The applicant must have completed a minimum of 25
35     semester hours from a college or university accredited by an
36     accrediting body recognized by the United States Department of
37     Education in surveying and mapping subjects or in any
38     combination of courses in civil engineering, surveying, mapping,
39     mathematics, photogrammetry, forestry, or land law and the
40     physical sciences. Work experience acquired as a part of the
41     education requirement may not be construed as experience in
     341993 - h0831-lines 72-123.docx
      Published On: 1/31/2022 5:44:38 PM
                                  Page 2 of 3
                                           COMMITTEE/SUBCOMMITTEE AMENDMENT
                                                Bill No. CS/HB 831   (2022)
       Amendment No. 1


42     responsible charge.
43          (d)   The applicant has received a high school diploma, or
44     its equivalent, and has a specific experience record of 6 or
45     more years as a subordinate to a professional surveyor and
46     mapper in the active practice of surveying and mapping, 5 years
47     of which shall be of a nature indicating that the applicant was
48     in responsible charge of the accuracy and correctness of the
49     surveying and mapping work performed. The applicant must have
50     completed a minimum of 25 semester hours from a college or
51     university accredited by an accrediting body recognized by the
52     United States Department of Education in surveying and mapping
53     subjects or in any combination of courses in civil engineering,
54     surveying, mapping, mathematics, photogrammetry, forestry, or
55     land law and the physical sciences. Work experience acquired as
56     a part of the education requirement may not be construed as
57     experience in responsible charge.




     341993 - h0831-lines 72-123.docx
      Published On: 1/31/2022 5:44:38 PM
                                  Page 3 of 3
CS/HB 925
                                  HOUSE OF REPRESENTATIVES STAFF ANALYSIS
BILL #:     CS/HB 925 Benchmark Replacements for London Interbank Offered Rate
SPONSOR(S): Insurance & Banking Subcommittee, Stevenson
TIED BILLS:       IDEN./SIM. BILLS: SB 1246

  REFERENCE                                                   ACTION                  ANALYST            STAFF DIRECTOR or
                                                                                                         BUDGET/POLICY CHIEF

  1) Insurance & Banking Subcommittee                         15 Y, 0 N, As CS        Hinshelwood        Luczynski

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

  3) Commerce Committee                                                               Hinshelwood        Hamon


                                             SUMMARY ANALYSIS
The London Interbank Offered Rate (LIBOR) is the reference rate at which large banks indicate that they can
borrow short-term wholesale funds from one another on an unsecured basis in the interbank market. LIBOR
has been used in setting interest rates for adjustable rate mortgages, asset-backed securities, municipal
bonds, credit default swaps, private student loans, and other types of debt. Prior to the end of 2021, LIBOR
was calculated in five currencies (UK Pound Sterling, the Swiss Franc, the Euro, the Japanese Yen, and the
U.S. Dollar), and LIBOR was produced in seven maturity terms or “tenors” (overnight/spot next, 1-week, 1-
month, 2-month, 3-month, 6-month, and 12-month).

In 2014, the Federal Reserve Board and the Federal Reserve Bank of New York convened the Alternative
Reference Rates Committee (ARRC) to address already-known risks related to the U.S. Dollar LIBOR. In
2017, the entity regulating LIBOR stated that LIBOR would cease after the end of 2021. However, most U.S.
Dollar LIBOR tenors have been extended to the end of June 2023 to enable time for the market to transition
away from LIBOR, and in 2017, the ARRC identified the Secured Overnight Financing Rate (SOFR) as its
recommended alternative to the U.S. Dollar LIBOR. The Federal Reserve Bank of New York currently
publishes SOFR data daily, as well as SOFR Averages and a SOFR Index.

The total exposure to the U.S. Dollar LIBOR, as of the fourth quarter of 2020, was $223 trillion. Although the
derivatives market accounts for a large majority of the outstanding value of all financial products referencing
the U.S. Dollar LIBOR, LIBOR is also referenced in several trillion dollars of corporate loans, floating-rate
mortgages, floating-rate notes, and securitized products. While an estimated 67 percent of current LIBOR
exposures will mature before LIBOR ceases at the end of June 2023, an estimated $74 trillion will remain
outstanding. This fact underscores the importance of finding solutions for legacy contracts, including legacy
LIBOR contracts that have no provisions to replace LIBOR upon its cessation.

For contracts and instruments lacking transition provisions, the bill provides for a transition to SOFR as the
replacement rate for LIBOR; provides for conforming changes to be made to the contract or instrument; voids
fallback provisions based on LIBOR; and provides for construction of rights and duties under contracts affected
by the bill. The bill also precludes liability, a claim, or a cause of action arising out of or related to the selection
or use of a recommended benchmark replacement or the determination, implementation, or performance of a
benchmark replacement conforming change. The bill provides a statement demonstrating the overpowering
public necessity for the bill and a finding that there are no alternative means to meet this public necessity.
Additionally, the bill contains a statement of legislative intent indicating that the bill is remedial in nature and
applies retroactively to all contracts, agreements, mortgages, deeds of trust, leases, instruments, obligations,
or securities, whether representing debt or equity, and including all interests in a corporation, partnership, or
limited liability company, in existence on December 31, 2021.

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

The bill will take effect upon becoming law.



This docum ent does not reflect the intent or official position of the bill sponsor or House of Representatives .
STORAGE NAME: h0925d.COM
DATE: 1/28/2022
                                                   FULL ANALYSIS

                                            I. SUBSTANTIVE ANALYSIS

    A. EFFECT OF PROPOSED CHANGES:
          Background

          The London Interbank Offered Rate (LIBOR) is the reference rate at which large banks indicate that
          they can borrow short-term wholesale funds from one another on an unsecured basis in the interbank
          market.1 The origins of LIBOR can be traced back to a loan transaction in 1969 in which multiple banks
          were joint lenders (i.e., a syndicated loan) on a large loan of $80 million. 2 The interest rate of the loan
          was based on the weighted average of the funding costs for each of the participating banks plus a
          spread for profit.3 The rate was recalculated periodically; hence, the rate was variable and reflected
          market conditions.4 The idea caught on, and eventually nearly all syndicated loans used LIBOR to
          calculate the interest charged.5 Soon the rate was adopted by bankers outside the loan market who
          were looking for an elegant proxy for bank borrowing costs that was simple, fair, and appeared to be
          independent.6

          In addition to providing loans at rates tied to LIBOR, banks whose submissions determined the fixing of
          LIBOR had also begun to borrow heavily using LIBOR-based contracts by the mid-1980s, creating an
          incentive to underreport funding costs.7 As a result, the British Bankers’ Association (BBA) took control
          of the rate in 1986 to formalize the data collection and governance process.8 In that year, LIBOR
          settings were calculated for the U.S. dollar, the British pound, and the Japanese yen.9 Over time, the
          inclusion of additional currencies and integration of existing currencies into the euro left the BBA with
          oversight of settings for over ten currencies as of 2012.10 Fifteen maturity terms were reported for each
          currency, ranging from overnight to a 1 year term.11

          Today, LIBOR is calculated daily by the Intercontinental Exchange (ICE) Benchmark Administration.12
          Eighteen international banks submit rates that each bank believes it would pay, not what it actually
          pays, if it had to borrow money from another bank on the interbank lending market in London. 13 The
          four highest and four lowest submissions are then removed in order to calculate LIBOR. 14 Prior to the
          end of 2021, the ICE Benchmark Administration calculated the rate in five currencies (UK Pound
          Sterling, the Swiss Franc, the Euro, Japanese Yen, and the U.S. Dollar), and LIBOR was produced in
          seven maturity terms or “tenors” (overnight/spot next, 1-week, 1-month, 2-month, 3-month, 6-month,
          and 12-month).15




1 David   Hou & David Skeie, LIBOR: Origins, Economics, Crisis, Scandal, and Reform, Federal Reserve Bank of New York
Staff Reports (Mar. 2014), https://www.newyorkfed.org/medialibrary/media/research/staff_reports/sr667.pdf (last visited
Jan. 21, 2022).
2 Id.
3 Gavin Finch and Liam Vaughan, The Man Who Invented the World’s Most Important Number (Nov. 29, 2016),

https://www.bloomberg.com/news/features/2016-11-29/the-man-who-invented-libor-iw3fpmed (last visited Jan. 21, 2022).
4 Id.
5 Id.
6 Id.
7 David Hou & David Skeie, supra note 1.
8 Id.
9 Id.
10 Id.
11 Id.
12 Miranda Marquit and Benjamin Curry, What Is Libor And Why Is It Being Abandoned?, Forbes (Dec. 16, 2020),

https://www.forbes.com/advisor/investing/what-is-libor/ (last visited Jan. 21, 2022).
13 Id.
14 Id.
15 Id.; Financial Conduct Authority, About LIBOR Transition, https://www.fca.org.uk/markets/libor-transition (last visited

Jan. 21, 2022).
STORAGE NAME: h0925d.COM                                                                                           PAGE: 2
DATE: 1/28/2022
        LIBOR has come under increasing scrutiny from regulators and financial markets alike following the
        2008 financial crisis as well as documented patterns of manipulation by participating banks. 16 Others
        have noted the declining correlations between LIBOR and actual bank funding costs.17 In 2017, the
        entity that regulates LIBOR, the Financial Conduct Authority (FCA) of the United Kingdom, stated that
        LIBOR would cease after the end of 2021.18 However, most U.S. Dollar LIBOR tenors have been
        extended to the end of June 2023 to enable time for the market to transition away from LIBOR.19 The 1-
        week and 2-month U.S. Dollar LIBOR ended at the end of 2021.20 The FCA has recommended
        transitions to alternative rates before these dates.21

        In 2014, the Federal Reserve Board and the Federal Reserve Bank of New York convened the
        Alternative Reference Rates Committee (ARRC) to address risks related to the U.S. Dollar LIBOR.22
        The ARRC’s initial objectives were to identify risk-free alternative reference rates for the U.S. Dollar
        LIBOR, identify best practices for contract robustness, and create an implementation plan with metrics
        of success and a timeline to support an orderly adoption.23 The ARCC was reconstituted in 2018 with
        an expanded membership to serve as a forum to coordinate planning across cash and derivatives
        products as well as market participants currently using the U.S. Dollar LIBOR.24 The ARRC is
        comprised of a diverse set of private-sector entities, each with an important presence in markets
        affected by the U.S. Dollar LIBOR, and a wide array of official-sector entities, including banking and
        financial sector regulators, as ex-officio members.25

        In 2017, the ARRC identified the Secured Overnight Financing Rate (SOFR) as its recommended
        alternative to the U.S. Dollar LIBOR.26 SOFR is fully-transaction based and is a broad measure of the
        cost of borrowing cash overnight collateralized by U.S. Treasury securities.27 SOFR is based on
        transaction data from three segments of the Treasury repurchase agreement market: (1) tri-party
        repurchase agreements, (2) General Collateral Finance repurchase agreements; and (3) bilateral
        repurchase agreement transactions cleared through the Fixed Income Clearing Corporation. 28 The
        Federal Reserve Bank of New York currently publishes SOFR data daily, as well as SOFR Averages
        and a SOFR Index.29

        LIBOR has been used in setting interest rates for adjustable rate mortgages, asset-backed securities,
        municipal bonds, credit default swaps, private student loans, and other types of debt. 30 The total
        exposure to the U.S. Dollar LIBOR, as of the fourth quarter of 2020, was $223 trillion.31 Although the
        derivatives market accounts for a large majority of the outstanding value of all financial products
        referencing the U.S. Dollar LIBOR, LIBOR is also referenced in several trillion dollars of corporate
        loans, floating-rate mortgages, floating-rate notes, and securitized products.32
        Financial institutions and other market participants have been in the process of assessing their
        exposure to the discontinuation of LIBOR, and various financial regulators have discouraged the use of


16 Marquit and Curry, supra note 12.
17 Bowman et al., How Correlated   is LIBOR with Bank Funding Costs? (June 29, 2020),
https://www.federalreserve.gov/econres/notes/feds-notes/how-correlated-is-libor-with-bank-funding-c osts-20200629.htm
(last visited Jan. 21, 2022).
18 Financial Conduct Authority, supra note 15.
19 Id.
20 Id.
21 Id.
22 Alternative Reference Rates Committee, Frequently Ask ed Questions (Aug. 27, 2021),

https://www.newyorkfed.org/medialibrary/Microsites/arrc/files/ARRC-faq.pdf (last visited Jan. 21, 2022).
23 Id.
24 Id.
25 Id.
26 Id.
27 Id.
28 Id.
29 Id.
30 Marquit and Curry, supra note 12.
31 Alternative Reference Rates Committee, supra note 22.
32 Id.
STORAGE NAME: h0925d.COM                                                                                        PAGE: 3
DATE: 1/28/2022
        LIBOR as a reference rate in new contracts after December 31, 2021. 33 Some financial contracts that
        reference LIBOR include robust fallback language that contemplates a replacement interest rate index
        or replacement interest rate calculation in the event that the rate referenced in the contract is
        discontinued. While an estimated 67 percent of current LIBOR exposures will mature before LIBOR
        ceases at the end of June 2023, an estimated $74 trillion will remain outstanding.34 This fact
        underscores the importance of finding solutions for legacy contracts, including legacy LIBOR contracts
        that have no provisions to replace LIBOR upon its cessation.35 The ARRC believes that legislation is a
        necessary step to address those contracts.36

        Similar to the bill, federal legislation (H.R. 4616) has been proposed that would provide for the transition
        of certain financial contracts away from LIBOR.37 In the event a contract referencing LIBOR does not
        have a fallback or replacement rate provision in effect when LIBOR is retired, or a replacement rate is
        not selected by a determining person as defined by H.R. 4616, H.R. 4616 provides for a transition to
        SOFR as the replacement rate.38 H.R. 4616 also provides for conforming changes to these contracts,
        the continuity and enforceability of these contracts, and protections against liability as a result of such a
        transition.39 H.R. 4616 passed the House but has not yet been acted upon in the Senate.40

        New York41 and Alabama42 have passed similar legislation.

        Effect of Proposed Changes

        The bill provides the following legislative finding:

                 The Legislature finds that the discontinuation of [LIBOR]43 as a viable interest rate
                 threatens the continued viability of certain contracts, securities, and instruments and the
                 rights of the parties to those contracts, securities, or instruments. Furthermore, the threat
                 of unknown and potentially unbounded liability and the viability of contracts, securities,
                 and instruments threatens the state's economy and has created an overpowering public
                 necessity to provide an immediate and remedial legislative solution. Therefore, the
                 Legislature intends for parties to certain contracts, securities, or instruments, as provided
                 in [the bill], to enjoy heightened legal protections as a result of the discontinuation of
                 LIBOR. The Legislature also finds that there are no alternative means to meet this public
                 necessity. The Legislature finds that the public interest as a whole is best served by
                 providing certainty to these contracts, securities, and instruments and the parties
                 thereto, so that these contracts, securities, and instruments may remain viable and
                 continue to be enforceable in the state.


33 See, e.g., U.S. Securities and Exchange Commission Office of Compliance Inspections and Examinations,           Risk Alert
(June 18, 2020), https://www.sec.gov/files/Risk%20Alert%20-%20OCIE%20LIBOR%20Initiative_1.pdf (last visited Jan.
21, 2022); Board of Governors of the Federal Reserve System et al., Statement on LIBOR Transition (Nov. 30, 2020),
https://www.federalreserve.gov/newsevents/pressreleases/files/bcreg20201130a1.pdf (last visited Jan. 21, 2022); Rohit
Chopra, Joint Statement on Managing the LIBOR Transition (Oct. 20, 2021), https://www.consumerfinance.gov/ about-
us/newsroom/joint-statement-on-managing-the-libor-transition/#note5 (last visited Jan. 21, 2022).
34 Alternative Reference Rates Committee, supra note 22.
35 Id.
36 Id.
37 Adjustable Interest Rate (LIBOR) Act of 2021, H.R. 4616, 117th Cong., https://www.congress.gov/bill/117th-

congress/house-bill/4616/text (last visited Jan. 21, 2022).
38 Id.
39 Id.
40 Id.
41 Discontinuance of the London interbank offered rate, Assembly Bill 164B,

https://legislation.nysenate.gov/pdf/bills/2021/A164B (last visited Jan. 21, 2022).
42 Financial transactions, Senate Bill 279, https://legiscan.com/AL/text/SB279/id/2379813 (last visited Jan. 21, 2022).
43 "LIBOR" means, for purposes of the application of the bill to any particular contract, security, or instrument, the United

States Dollar LIBOR, formerly known as the London Interbank Offered Rate, as administered by ICE Benchmark
Administration, or any predecessor or successor thereof, or any tenor thereof, as applicable, that is used in making any
calculation or determination of benchmark rates.
STORAGE NAME: h0925d.COM                                                                                                PAGE: 4
DATE: 1/28/2022
        Under the bill, various LIBOR discontinuance events 44 trigger a LIBOR replacement date45 for a
        contract, security, or instrument46 that uses LIBOR as a benchmark47 and that:
            Does not contain a fallback provision;48 or
            Contains fallback provisions resulting in a benchmark replacement49 that is based in any way on
               a LIBOR value.

        For such a contract, security, or instrument, on the LIBOR replacement date, the recommended
        benchmark replacement will be the benchmark replacement by operation of law. The recommended
        benchmark is a benchmark replacement based on SOFR 50 and must include any recommended spread
        adjustment51 and any benchmark replacement conforming change52 that have been selected or


44 "LIBOR discontinuance event"      means the earliest to occur of any of the following:
          a. A public statement or publication of information by, or on behalf of, the administrator of LIBOR announcing that
the administrator has ceased or will cease to provide LIBOR permanently or indefinitely, if, at the time of the statement or
publication, there is no successor administrator that will continue to provide LIBOR.
          b. A public statement or publication of information by the regulatory supervisor for the administrator of LIBOR, the
Federal Reserve System, an insolvency official with jurisdiction over the administrator of LIBOR, a resolution authority
with jurisdiction over the administrator of LIBOR, or a court or an entity with similar insolvency or resolution authority over
the administrator of LIBOR, announcing that the administrator of LIBOR has ceased or will cease to provide LIBOR
permanently or indefinitely, if, at the time of the statement or publication, there is no successor administrator that will
continue to provide LIBOR.
          c. A public statement or publication of information by the regulatory supervisor for the administrator of LIBOR
announcing that LIBOR is no longer representative.

A public statement or publication of information that affects one or more tenors of LIBOR does not constitute a LIBOR
discontinuance event with respect to a contract, security, or instrument that:
         a. Provides for only one tenor of LIBOR, if the contract, security, or instrument requires interpolation and the
tenor can be interpolated from LIBOR tenors that are not so affected; or
         b. Allows a party to choose from more than one tenor of LIBOR and any of the tenors is not so affected or, if the
contract, security, or instrument requires interpolation, can be interpolated from LIBOR tenors that are not so affected.
45 "LIBOR replacement date" means:

         a. In the case of a LIBOR discontinuance event described in a. or b. (supra note 44), the later of:
         (I) The date of the public statement or publication of information referenced in a. or b. (supra note 44); or
         (II) The date on which the administrator of LIBOR permanently or indefinitely ceases to provide LIBOR.
         b. In the case of a LIBOR discontinuance event described in c. (supra note 44), the date of the public statement
or publication of information referenced in c. (supra note 44).
         2. A date that affects one or more tenors of LIBOR does not constitute a LIBOR replacement date with respect to
a contract, security, or instrument that:
         a. Provides for only one tenor of LIBOR, if the contract, security, or instrument requires interpolation and the
tenor can be interpolated from LIBOR tenors that are not so affected; or
         b. Allows a party to choose from more than one tenor of LIBOR and any of the tenors is not so affected or, if the
contract, security, or instrument requires interpolation, can be interpolated from LIBOR tenors that are not so affected.
46 "Contract, security, or instrument" includes, without limitation, any contract, agreement, mortgage, deed of trust, lease,

instrument, obligation, or security, whether representing debt or equity, and including any interest in a corporation,
partnership, or limited liability company.
47 "Benchmark" means an index of interest rates or dividend rates that is used, in whole or in part, as the basis of, or as a

reference for, calculating or determining a valuation, payment, or other measurement under or with respect to a contract,
security, or instrument.
48 "Fallback provision" means a term in a contract, security, or instrument which sets forth a methodology or procedure for

determining a benchmark replacement, including any term relating to the date on which the benchmark replacement
becomes effective, without regard to whether a benchmark replacement can be determined in accordance with the
methodology or procedure.
49 "Benchmark replacement" means a benchmark, an interest rate, or a dividend rate that may or may not be based, in

whole or in part, on a prior setting of LIBOR, to replace LIBOR or any interest rate or dividend rate based on LIBOR,
whether on a temporary, permanent, or indefinite basis, under or with respect to a contract, security, or instrument.
50 "SOFR" means, with respect to any day, the secured overnight financing rate published for the day by the Federal

Reserve Bank of New York as the administrator of the benchmark, or a successor administrator, on the Federal Reserve
Bank of New York's website.
51 "Recommended spread adjustment" means a spread adjustment, or method for calculating or determining the spread

adjustment, which has been selected or recommended by a relevant recommending body for a recommended benchmark
replacement for a particular type of contract, security, or instrument and for a particular term to account for the effects o f
STORAGE NAME: h0925d.COM                                                                                                PAGE: 5
DATE: 1/28/2022
        recommended by a relevant recommending body53 with respect to the type of contract, security, or
        instrument.

        After the occurrence of a LIBOR discontinuance event, any fallback provisions in a contract, security, or
        instrument which provide for a benchmark replacement based on or otherwise involving a poll, survey,
        or inquiry for quotes or information concerning interbank lending rates or any interest rate or dividend
        rate based on LIBOR will be void and of no force or effect.

        For any contract, security, or instrument that uses LIBOR as a benchmark and that contains fallback
        provisions allowing or requiring the selection of a benchmark replacement that is based in any way on a
        LIBOR value or a benchmark replacement that is similar to LIBOR, a determining person54 may, but is
        not required to, select the recommended benchmark replacement as the benchmark replacement after
        the occurrence of a LIBOR discontinuance event. In such case, the selection of the recommended
        benchmark replacement must be:
             Irrevocable;
             Made by the earlier of the LIBOR replacement date or the latest date for selecting a benchmark
                replacement according to the contract, security, or instrument; and
             Used in any determination of the benchmark under or with respect to the contract, security, or
                instrument occurring on and after the LIBOR replacement date.

        If a recommended benchmark replacement becomes the benchmark replacement for a contract,
        security, or instrument under the bill, then all benchmark replacement conforming changes that are
        applicable to the recommended benchmark replacement must become an integral part of the contract,
        security, or instrument by operation of law.

        The selection or use of a recommended benchmark replacement as a benchmark replacement under
        or with respect to a contract, security, or instrument, by operation of the bill, constitutes:
             A commercially reasonable replacement for and a commercially substantial equivalent to
                LIBOR.


the transition or change from LIBOR to a recommended benchmark replacement. This term may be a positive or negative
value or zero.
52 "Benchmark replacement conforming change" means, with respect to any type of contract, security, or instrument, a

technical, administrative, or operational change, alteration, or modification that is associated with and reasonably
necessary to the use, adoption, calculation, or implementation of a recommended benchmark replacement and that has
been selected or recommended by a relevant recommending body. However, if, in the reasonable judgment of a
calculating person, the change, alteration, or modification selected or recommended by a relevant recommending body
does not apply to the contract, security, or instrument or is insufficient to allow administration and calculation of the
recommended benchmark replacement, the benchmark replacement conforming change may include other changes,
alterations, or modifications that, in the reasonable judgment of the calculating person:
         1. Are necessary to allow administration and calculation of the recommended benchmark replacement under or
with respect to the contract, security, or instrument in a manner consistent with market practice for substantially similar
contracts, securities, or instruments and, to the extent practicable, the manner in which t he contract, security, or
instrument was administered immediately before the LIBOR replacement date.
         2. Would not result in a disposition of the contract, security, or instrument for federal income tax purposes.

"Calculating person" means, with respect to any contract, security, or instrument, a person responsible for calculating or
determining a valuation, payment, or other measurement based on a benchmark. This person may be the determining
person. See infra note 54 for the definition of “determining person”.
53 "Relevant recommending body" means the Federal Reserve Board, the Federal Reserve Bank of New York, the ARRC,

or a successor to any of these.
54 "Determining person" means, with respect to any contract, security, or instrument, the following persons in decreasing

order of priority:
         1. A person so specified.
         2. A person with the authority, right, or obligation to do any of the following:
         a. Determine the benchmark replacement that will take effect on the LIBOR replacement date.
         b. Calculate or determine a valuation, payment, or other measurement based on a benchmark.
         c. Notify other persons of the occurrence of a LIBOR discontinuance event, a LIBOR replacement date, or a
benchmark replacement.
STORAGE NAME: h0925d.COM                                                                                             PAGE: 6
DATE: 1/28/2022
              A reasonable, comparable, or analogous term for LIBOR under or with respect to the contract,
               security, or instrument.
              A replacement that is based on a methodology or information that is similar or comparable to
               LIBOR.
              Substantial performance by any person of any right or obligation relating to or based on LIBOR
               under or with respect to a contract, security, or instrument.

       A LIBOR discontinuance event, a LIBOR replacement date, the selection or use of a recommended
       benchmark replacement as a benchmark replacement, or the determination, implementation, or
       performance of a benchmark replacement conforming change, in each case, by operation of the bill,
       may not:
            Be deemed to impair or affect the right of any person to receive a payment, or affect the amount
              or timing of the payment, under a contract, security, or instrument;
            Have the effect of discharging or excusing performance under a contract, security, or instrument
              for any reason, claim, or defense, including, but not limited to, any force majeure or other
              provision in a contract, security, or instrument;
            Have the effect of giving any person the right to unilaterally terminate or suspend performance
              under a contract, security, or instrument;
            Have the effect of constituting a breach of a contract, security, or instrument; or
            Have the effect of voiding or nullifying a contract, security, or instrument.

       A person is not liable for damages to any other person, and is not subject to any claim or request for
       equitable relief, arising out of or related to the selection or use of a recommended benchmark
       replacement or the determination, implementation, or performance of a benchmark replacement
       conforming change, in each case, by operation of the bill. The selection or use of the recommended
       benchmark replacement or the determination, implementation, or performance of a benchmark
       replacement conforming change may not give rise to any claim or cause of action by any person in law
       or in equity.

       The selection or use of a recommended benchmark replacement or the determination, implementation,
       or performance of a benchmark replacement conforming change, by operation of the bill, may not be
       deemed to:
            Be an amendment or modification of a contract, security, or instrument.
            Prejudice, impair, or affect a person's rights, interests, or obligations under or with respect to a
               contract, security, or instrument.

       Except as otherwise provided in the bill, the bill may not be interpreted as creating a negative inference
       or negative presumption regarding the validity or enforceability of any of the following:
            A benchmark replacement that is not a recommended benchmark replacement.
            A spread adjustment, or method for calculating or determining a spread adjustment, which is not
              a recommended spread adjustment.
            A change, alteration, or modification to or with respect to a contract, security, or instrument
              which is not a benchmark replacement conforming change.




STORAGE NAME: h0925d.COM                                                                                   PAGE: 7
DATE: 1/28/2022
        The bill does not alter or impair any of the following:
            A written agreement by all requisite parties 55 which, retrospectively or prospectively, provides
                that a contract, security, or instrument is not subject to the bill without necessarily referring
                specifically to the statute created by the bill.
            A contract, security, or instrument that contains fallback provisions that would result in a
                benchmark replacement that is not based on LIBOR, including, but not limited to, the prime rate
                or the federal funds rate. However, after the occurrence of a LIBOR discontinuance event, any
                fallback provisions in a contract, security, or instrument which provide for a benchmark
                replacement based on or otherwise involving a poll, survey, or inquiry for quotes or information
                concerning interbank lending rates or any interest rate or dividend rate based on LIBOR will be
                void and of no force or effect.
            A contract, security, or instrument as to which a determining person does not elect to use a
                recommended benchmark replacement or as to which a determining person elects to use a
                recommended benchmark replacement before the occurrence of a LIBOR discontinuance
                event. However, after the occurrence of a LIBOR discontinuance event, any fallback provisions
                in a contract, security, or instrument which provide for a benchmark replacement based on or
                otherwise involving a poll, survey, or inquiry for quotes or information concerning interbank
                lending rates or any interest rate or dividend rate based on LIBOR will be void and of no force or
                effect.
            The application to a recommended benchmark replacement of any cap, floor, modifier, or
                spread adjustment to which LIBOR had been subject pursuant to the terms of a contract,
                security, or instrument.

        Notwithstanding the Uniform Commercial Code56 or any other law of this state, and except as otherwise
        provided in the bill, the bill applies to all contracts, securities, and instruments, including contracts with
        respect to commercial transactions, and may not be superseded by any other law of this state.

        The bill provides that it is remedial in nature and applies retroactively to all contracts, agreements,
        mortgages, deeds of trust, leases, instruments, obligations, or securities, whether representing debt or
        equity, and including all interests in a corporation, partnership, or limited liability company, in existence
        on December 31, 2021.

        The bill takes effect upon becoming a law.

    B. SECTION DIRECTORY:
        Section 1. Amends s. 687.15, F.S., relating to benchmark replacements for the London Interbank
                   Offered Rate.
        Section 2. Provides that this act is remedial in nature and applies retroactively.
        Section 3. Provides that this act shall take effect upon becoming a law.

                           II. FICAL ANALYSIS & ECONOMIC IMPACT STATEMENT

    A. FISCAL IMPACT ON STATE GOVERNMENT:

        1. Revenues:
            None.

        2. Expenditures:
            None.

    B. FISCAL IMPACT ON LOCAL GOVERNMENTS:


55 "Requisite parties" means all parties required to amend the terms and provisions
                                                                                of a contract, security, or instrument
that would otherwise be altered or affected by the bill.
56 Chapters 670-680, F.S., comprise the Uniform Commercial Code. s. 671.101, F.S.
STORAGE NAME: h0925d.COM                                                                                         PAGE: 8
DATE: 1/28/2022
          1. Revenues:
               None.

          2. Expenditures:
               None.

     C. DIRECT ECONOMIC IMPACT ON PRIVATE SECTOR:
          The bill has an indeterminate impact on the private sector. The bill may have both positive and negative
          impacts on private sector entities. Replacing LIBOR with SOFR could result in a different interest rate
          under the contract or instrument, though the ARCC has recommended spread adjustments for various
          types of financial contracts and instruments for which SOFR replaces LIBOR. Additionally, the bill could
          prevent an aggrieved party from bringing a claim in court relating to the replacement of LIBOR with
          SOFR and any accompanying conforming changes, but elimination of such liability and claims may
          have the effect of quieting financial markets.

     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:
             Impairment of Contracts and Due Process

             Both the Florida and the United States Constitutions prohibit the state from passing a law impairing
             contractual obligations.57 However, the Legislature may provide that a non-criminal law, including
             one that affects existing contractual obligations, applies retroactively in certain situations. 58 In
             determining whether a law may be applied retroactively, courts first determine whether the law is
             procedural, remedial, or substantive in nature.59 A purely procedural or remedial law may apply
             retroactively without offending the Constitution, but a substantive law generally may not apply
             retroactively absent clear legislative intent to the contrary. 60 However, even where the Legislature
             has expressly stated that a law will have retroactive application, a court may reject that application if
             the law impairs a vested right, creates a new obligation, or imposes a new penalty. 61 Further, where
             a law is designed to serve a remedial purpose, a court may decide not to apply the law retroactively
             where doing so “would attach new legal consequences to events completed before its enactment.” 62

             Moreover, both the Florida and United States Constitutions prohibit the taking of life, liberty, or
             property without due process of law.63 The right to contract, as long as no fraud or deception is
             involved and the contract is otherwise legal, is both a liberty and a property right subject to due


57 U.S. Const. art. I, s. 10; Art. I, s. 10, Fla. Const.
58 U.S. Const. art. I, ss. 9 and 10; Art. 1, s. 10, Fla. Const.
59 A procedural law merely establishes the means and methods for applying or enforcing existing duties or rights. A remedial law

confers or changes a remedy, i.e., the means employed in enforcing an existing right or in redressing an injury. A substantive law
creates, alters, or impairs existing substantive rights. Windom v. State, 656 So. 2d 432 (Fla. 1995); St. John’s Village I, Ltd. v. Dept. of
State, 497 So. 2d 990 (Fla. 5th DCA 1986); McMillen v. State Dept. of Revenue, 74 So. 2d 1234 (Fla. 1st DCA 1999).
60 State Farm Mutual Automob ile Ins. Co. v. Laforet, 658 So. 2d 55 (Fla. 1995).
61 Menendez v. Progressive Exp. Ins. Co., Inc., 35 So. 3d 873 (Fla. 2010).
62 L. Ross, Inc. v. R.W. Rob erts Const. Co., 481 So. 2d 484 (Fla. 1986).
63 U.S. Const. amends. V and XIV; Art. I, s. 21, Fla. Const.

STORAGE NAME: h0925d.COM                                                                                                             PAGE: 9
DATE: 1/28/2022
            process protections, and the impairment of contracts may, in certain instances, be viewed as the
            taking of property without due process.64

             For certain contracts and instruments, the bill provides for a transition to SOFR as the replacement
             rate for LIBOR, provides for conforming changes to be made to the contract or instrument, voids
             fallback provisions that are based on LIBOR, and provides for construction of rights and duties under
             contracts affected by the bill. Additionally, the bill contains a statement of legislative intent indicating
             that the bill is remedial in nature and applies retroactively to all contracts, agreements, mortgages,
             deeds of trust, leases, instruments, obligations, or securities, whether representing debt or equity,
             and including all interests in a corporation, partnership, or limited liability company, in existence on
             December 31, 2021. Whether the Legislature’s retroactive modification of such contracts and
             instruments is procedural, remedial, or substantive, and whether such modification implicates the
             constitutional right to contract or the constitutional right to due process, is for the courts to decide.

            Access to Courts

             In Kluger v. White,65 the Florida Supreme Court evaluated to what extent the Legislature may alter a
             civil cause of action. The Court stated that it would not completely prohibit the Legislature from
             altering a cause of action, but neither would it allow the Legislature "to destroy a traditional and long-
             standing cause of action upon mere legislative whim . . . ." The takeaway from Kluger and other
             relevant case law is that the Legislature may:
                    Reduce the right to bring a cause of action as long as the right is not entirely abolished.66
                    Abolish a cause of action that is not "traditional and long-standing" – that is, a cause of
                      action that did not exist at common law, and that did not exist in statute before the adoption
                      of the Florida Constitution's Declaration of Rights. 67
                    Abolish a cause of action if the Legislature either:
                           o Provides a reasonable commensurate benefit in exchange; 68 or
                           o Shows an "overpowering public necessity for the abolishment of such right, and no
                              alternative method of meeting such public necessity can be shown."69

            The bill precludes liability, a claim, or a cause of action arising out of or related to the selection or
            use of a recommended benchmark replacement or the determination, implementation, or
            performance of a benchmark replacement conforming change. The bill also provides a statement
            demonstrating the overpowering public necessity for the bill and a finding that there are no
            alternative means to meet this public necessity.

    B. RULE-MAKING AUTHORITY:
         None.


64 Miles v. City of Edgewater Police Dept., 190 So. 3d 171 (Fla. 1st DCA 2016); s ee, e.g., Griffin v. Sharpe, 65 So. 2d 751 (Fla. 1953)

(finding that a statute removing a specific deed restriction’s expiration date both impaired contracts and constituted a taking of private
property without due process).
65 Kluger, 281 So. 2d 1 (Fla. 1973).
66 See Achord v. Osceola Farms Co., 52 So. 3d 699 (Fla. 2010).
67 See Anderson v. Gannett Comp., 994 So. 2d 1048 (Fla. 2008) (false light was not actionable under the common law); McPhail v.

Jenkins, 382 So. 2d 1329 (Fla. 1980) (wrongful death was not actionable under the common law); see also Kluger, 281 So. 2d at 4
("We hold, therefore, that where a right of access to the courts for redress for a particular injury has been provided by sta tutory law
predating the adoption of the Declaration of Rights of the Constitution of the State of Florida, or where such right has become a p a rt o f
the common law of the State . . . the Legislature is without power to abolish such a right without providing a reasonable alt ern a ti ve . . .
unless the Legislature can show an overpowering public necessity . . .").
68 Kluger, 281 So. 2d at 4; see Univ. of Miami v. Echarte, 618 So. 2d 189 (Fla. 1993) (upholding statutory cap on medical malpractice

damages because the Legislature provided arbitration, which is a "commensurate benefit" for a claimant); accord Lasky v. Sta te Fa rm
Ins. Co., 296 So. 2d 9 (Fla. 1974); b ut see Smith v. Dept. of Ins., 507 So. 2d 1080 (Fla. 1992) (striking down noneconomic cap on
damages, which, although not wholly abolishing a cause of action, did not provide a commensurate benefit).
69 Kluger, 281 So. 2d at 4-5 (noting that in 1945, the Legislature abolished the right to sue for several causes of action, but successfu l ly

demonstrated "the public necessity required for the total abolition of a right to sue") (citing Rotwein v. Gersten, 36 So. 2d 419 (Fla.
1948); see Echarte, 618 So. 2d at 195 ("Even if the medical malpractice arbitration statutes at issue did not provide a commensurate
benefit, we would find that the statutes satisfy the second prong of Kluger which requires a legislative finding that an 'overpowering
public necessity' exists, and further that 'no alternative method of meeting such public necessity can be shown'").
STORAGE NAME: h0925d.COM                                                                                                             PAGE: 10
DATE: 1/28/2022
   C. DRAFTING ISSUES OR OTHER COMMENTS:
       None.


                           IV. AMENDMENTS/COMMITTEE SUBSTITUTE CHANGES

   On January 13, 2022, the Insurance & Banking Subcommittee considered one amendment, which was
   adopted, and reported the bill favorably as a committee substitute. The committee substitute:
       Clarifies the definition of “benchmark replacement conforming change” to reflect that subparagraph
          2 (relating to a calculating person’s discretion to choose benchmark replacement conforming
          changes) is permissive rather than a mandatory requirement for every contract, security, or
          instrument subject to the bill.
       Amends s. 687.15(7), F.S., as created in the bill, to clarify that the bill deems the statements in
          paragraphs (a) – (d) to be true when a recommended benchmark replacement is selected or used.
       Changes the phrase “recommended replacement benchmark” to “recommended benchmark
          replacement,” as “recommended benchmark replacement” is the defined term.

   The staff analysis has been updated to reflect the committee substitute as passed by the Insurance &
   Banking Subcommittee.




STORAGE NAME: h0925d.COM                                                                             PAGE: 11
DATE: 1/28/2022
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




           CS/HB 925                                                                                            2022




    1                                         A bill to be entitled
    2              An act relating to benchmark replacements for London
    3              Interbank Offered Rate; creating s. 687.15, F.S.;
    4              providing legislative findings and intent and a
    5              statement of public interest; providing definitions;
    6              requiring that recommended benchmark replacements
    7              selected or recommended by specified persons be
    8              benchmark replacements on the United States dollar
    9              London Interbank Offered Rate (LIBOR) replacement date
10                 for certain contracts, securities, and instruments;
11                 requiring certain fallback provisions in contracts,
12                 securities, and instruments providing specified
13                 benchmark replacements to be disregarded and void;
14                 authorizing specified persons to select benchmark
15                 replacements under certain circumstances; providing
16                 requirements for such selection; providing
17                 applicability; requiring benchmark replacement
18                 conforming changes to become an integral part of
19                 contracts, securities, and instruments under certain
20                 circumstances; providing construction; providing that
21                 a person is not liable for damages and is not subject
22                 to claims and requests for equitable relief under
23                 certain circumstances; providing applicability;
24                 prohibiting other laws from superseding specified
25                 provisions; providing that the act is remedial in

                                                        Page 1 of 14

        CODING: Words stricken are deletions; words underlined are additions.
                                                                                                            hb0925-01-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 925                                                                                            2022




26              nature; providing retroactive applicability; providing
27              an effective date.
28
29      Be It Enacted by the Legislature of the State of Florida:
30
31              Section 1.         Section 687.15, Florida Statutes, is created to
32      read:
33              687.15        Benchmark replacements for the London Interbank
34      Offered Rate.—
35              (1)         The Legislature finds that the discontinuation of the
36      London Interbank Offered Rate (LIBOR) as a viable interest rate
37      threatens the continued viability of certain contracts,
38      securities, and instruments and the rights of the parties to
39      those contracts, securities, or instruments. Furthermore, the
40      threat of unknown and potentially unbounded liability and the
41      viability of contracts, securities, and instruments threatens
42      the state's economy and has created an overpowering public
43      necessity to provide an immediate and remedial legislative
44      solution. Therefore, the Legislature intends for parties to
45      certain contracts, securities, or instruments, as provided in
46      this section, to enjoy heightened legal protections as a result
47      of the discontinuation of LIBOR. The Legislature also finds that
48      there are no alternative means to meet this public necessity.
49      The Legislature finds that the public interest as a whole is
50      best served by providing certainty to these contracts,

                                                     Page 2 of 14

     CODING: Words stricken are deletions; words underlined are additions.
                                                                                                         hb0925-01-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 925                                                                                            2022




51      securities, and instruments and the parties thereto, so that
52      these contracts, securities, and instruments may remain viable
53      and continue to be enforceable in the state.
54              (2)         As used in this section, the term:
55              (a)         "Benchmark" means an index of interest rates or
56      dividend rates that is used, in whole or in part, as the basis
57      of, or as a reference for, calculating or determining a
58      valuation, payment, or other measurement under or with respect
59      to a contract, security, or instrument.
60              (b)         "Benchmark replacement" means a benchmark, an interest
61      rate, or a dividend rate that may or may not be based, in who le
62      or in part, on a prior setting of LIBOR, to replace LIBOR or any
63      interest rate or dividend rate based on LIBOR, whether on a
64      temporary, permanent, or indefinite basis, under or with respect
65      to a contract, security, or instrument.
66              (c)         "Benchmark replacement conforming change" means, with
67      respect to any type of contract, security, or instrument, a
68      technical, administrative, or operational change, alteration, or
69      modification that is associated with and reasonably necessary to
70      the use, adoption, calculation, or implementation of a
71      recommended benchmark replacement and that has been selected or
72      recommended by a relevant recommending body. However, if, in the
73      reasonable judgment of a calculating person, the change,
74      alteration, or modification selected or recommended by a
75      relevant recommending body does not apply to the contract,

                                                     Page 3 of 14

     CODING: Words stricken are deletions; words underlined are additions.
                                                                                                         hb0925-01-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 925                                                                                            2022




 76      security, or instrument or is insufficient to allow
 77      administration and calculation of the recommended benchmark
 78      replacement, the benchmark replacement conforming change may
 79      include other changes, alterations, or modifications that, in
 80      the reasonable judgment of the calculating person:
 81              1.      Are necessary to allow administration and calculation
 82      of the recommended benchmark replacement under or with respect
 83      to the contract, security, or instrument in a manner consistent
 84      with market practice for substantially similar contracts,
 85      securities, or instruments and, to the extent practicable, the
 86      manner in which the contract, security, or instrument was
 87      administered immediately before the LIBOR replacement date.
 88              2.      Would not result in a disposition of the contract,
 89      security, or instrument for federal income tax purposes.
 90              (d)         "Calculating person" means, with respect to any
 91      contract, security, or instrument, a person responsible for
 92      calculating or determining a valuation, payment, or other
 93      measurement based on a benchmark. This person may be the
 94      determining person.
 95              (e)         "Contract, security, or instrument" includes, without
 96      limitation, any contract, agreement, mortgage, deed of trust,
 97      lease, instrument, obligation, or security, whether representing
 98      debt or equity, and including any interest in a corporation,
 99      partnership, or limited liability company.
100              (f)         "Determining person" means, with respect to any

                                                      Page 4 of 14

      CODING: Words stricken are deletions; words underlined are additions.
                                                                                                          hb0925-01-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 925                                                                                            2022




101      contract, security, or instrument, the following persons in
102      decreasing order of priority:
103              1.      A person so specified.
104              2.      A person with the authority, right, or obligation to do
105      any of the following:
106              a.      Determine the benchmark replacement that will take
107      effect on the LIBOR replacement date.
108              b.      Calculate or determine a valuation, payment, or other
109      measurement based on a benchmark.
110              c.      Notify other persons of the occurrence of a LIBOR
111      discontinuance event, a LIBOR replacement date, or a benchmark
112      replacement.
113              (g)         "Fallback provision" means a term in a contract,
114      security, or instrument which sets forth a methodology or
115      procedure for determining a benchmark replacement, including any
116      term relating to the date on which the benchmark replacement
117      becomes effective, without regard to whether a benchmark
118      replacement can be determined in accordance with the methodology
119      or procedure.
120              (h)         "LIBOR" means, for purposes of the application of this
121      section to any particular contract, security, or instrument, the
122      United States dollar LIBOR, formerly known as the London
123      Interbank Offered Rate, as administered by ICE Benchmark
124      Administration, or any predecessor or successor thereof, or any
125      tenor thereof, as applicable, that is used in making any

                                                      Page 5 of 14

      CODING: Words stricken are deletions; words underlined are additions.
                                                                                                          hb0925-01-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 925                                                                                            2022




126      calculation or determination of benchmark rates.
127              (i)1.       "LIBOR discontinuance event" means the earliest to
128      occur of any of the following:
129              a.      A public statement or publication of information by, or
130      on behalf of, the administrator of LIBOR announcing that the
131      administrator has ceased or will cease to provide LIBOR
132      permanently or indefinitely, if, at the time of the statement or
133      publication, there is no successor administrator that will
134      continue to provide LIBOR.
135              b.      A public statement or publication of information by the
136      regulatory supervisor for the administrator of LIBOR, the
137      Federal Reserve System, an insolvency official with jurisdiction
138      over the administrator of LIBOR, a resolution authority with
139      jurisdiction over the administrator of LIBOR, or a court or an
140      entity with similar insolvency or resolution authority over t he
141      administrator of LIBOR, announcing that the administrator of
142      LIBOR has ceased or will cease to provide LIBOR permanently or
143      indefinitely, if, at the time of the statement or publication,
144      there is no successor administrator that will continue to
145      provide LIBOR.
146              c.      A public statement or publication of information by the
147      regulatory supervisor for the administrator of LIBOR announcing
148      that LIBOR is no longer representative.
149              2.      A public statement or publication of information that
150      affects one or more tenors of LIBOR does not constitute a LIBOR

                                                      Page 6 of 14

      CODING: Words stricken are deletions; words underlined are additions.
                                                                                                          hb0925-01-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 925                                                                                            2022




151      discontinuance event with respect to a contract, security, or
152      instrument that:
153              a.      Provides for only one tenor of LIBOR, if the contract,
154      security, or instrument requires interpolation and the tenor can
155      be interpolated from LIBOR tenors that are not so affected; or
156              b.      Allows a party to choose from more than one tenor of
157      LIBOR and any of the tenors is not so affected or, if the
158      contract, security, or instrument requires interpolation, can be
159      interpolated from LIBOR tenors that are not so affected.
160              (j)1.        "LIBOR replacement date" means:
161              a.      In the case of a LIBOR discontinuance event described
162      in sub-subparagraph (i)1.a. or sub-subparagraph (i)1.b., the
163      later of:
164              (I)         The date of the public statement or publication of
165      information referenced in sub-subparagraph (i)1.a. or sub-
166      subparagraph (i)1.b.; or
167              (II)        The date on which the administrator of LIBOR
168      permanently or indefinitely ceases to provide LIBOR.
169              b.      In the case of a LIBOR discontinuance event described
170      in sub-subparagraph (i)1.c., the date of the public statement or
171      publication of information referenced in sub-subparagraph
172      (i)1.c.
173              2.      A date that affects one or more tenors of LIBOR does
174      not constitute a LIBOR replacement date with respect to a
175      contract, security, or instrument that:

                                                      Page 7 of 14

      CODING: Words stricken are deletions; words underlined are additions.
                                                                                                          hb0925-01-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 925                                                                                            2022




176              a.      Provides for only one tenor of LIBOR, if the contract,
177      security, or instrument requires interpolation and the tenor can
178      be interpolated from LIBOR tenors that are not so affected; or
179              b.      Allows a party to choose from more than one tenor of
180      LIBOR and any of the tenors is not so affected or, if the
181      contract, security, or instrument requires interpolation, can be
182      interpolated from LIBOR tenors that are not so affected.
183              (k)         "Recommended benchmark replacement" means, with
184      respect to any particular type of contract, security, or
185      instrument, a benchmark replacement based on SOFR that must
186      include any recommended spread adjustment and any benchmark
187      replacement conforming change that have been selected or
188      recommended by a relevant recommending body with respect to the
189      type of contract, security, or instrument.
190              (l)         "Recommended spread adjustment" means a spread
191      adjustment, or method for calculating or determining the spread
192      adjustment, which has been selected or recommended by a relev ant
193      recommending body for a recommended benchmark replacement for a
194      particular type of contract, security, or instrument and for a
195      particular term to account for the effects of the transition or
196      change from LIBOR to a recommended benchmark replacement. Thi s
197      term may be a positive or negative value or zero.
198              (m)         "Relevant recommending body" means the Federal Reserve
199      Board, the Federal Reserve Bank of New York, the Alternative
200      Reference Rates Committee, or a successor to any of them.

                                                      Page 8 of 14

      CODING: Words stricken are deletions; words underlined are additions.
                                                                                                          hb0925-01-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 925                                                                                            2022




201              (n)         "SOFR" means, with respect to any day, the secured
202      overnight financing rate published for the day by the Federal
203      Reserve Bank of New York as the administrator of the benchmark,
204      or a successor administrator, on the Federal Reserve Bank of New
205      York's website.
206              (3)         On the LIBOR replacement date, the recommended
207      benchmark replacement, by operation of law, shall be the
208      benchmark replacement for a contract, security, or instrument
209      that uses LIBOR as a benchmark and that:
210              (a)         Does not contain a fallback provision; or
211              (b)         Contains fallback provisions resulting in a benchmark
212      replacement, other than a recommended benchmark replacement,
213      that is based in any way on a LIBOR value.
214              (4)         After the occurrence of a LIBOR discontinuance event,
215      any fallback provisions in a contract, security, or instrument
216      which provide for a benchmark replacement based on or otherwise
217      involving a poll, survey, or inquiry for quotes or information
218      concerning interbank lending rates or any interest rate or
219      dividend rate based on LIBOR shall be void and of no force or
220      effect.
221              (5)(a)        A determining person may, but is not required to,
222      select the recommended benchmark replacement as the benchmark
223      replacement after the occurrence of a LIBOR discontinuance
224      event. The selection of the recommended benchmark replacement
225      must be:

                                                      Page 9 of 14

      CODING: Words stricken are deletions; words underlined are additions.
                                                                                                          hb0925-01-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 925                                                                                            2022




226              1.      Irrevocable;
227              2.      Made by the earlier of the LIBOR replacement date or
228      the latest date for selecting a benchmark replacement according
229      to the contract, security, or instrument; and
230              3.      Used in any determination of the benchmark under or
231      with respect to the contract, security, or instrument occurring
232      on and after the LIBOR replacement date.
233              (b)         Paragraph (a) applies to a contract, security, or
234      instrument that uses LIBOR as a benchmark and that contains
235      fallback provisions allowing or requiring the selection of a
236      benchmark replacement that is:
237              1.      Based in any way on a LIBOR value; or
238              2.      The substantive equivalent of paragraph (7)(a),
239      paragraph (7)(b), or paragraph (7)(c).
240              (6)         If a recommended benchmark replacement becomes the
241      benchmark replacement for a contract, security, or instrument
242      under this section, then all benchmark replacement conforming
243      changes that are applicable to the recommended benchmark
244      replacement must become an integral part of the contract,
245      security, or instrument by operation of law.
246              (7)         The selection or use of a recommended benchmark
247      replacement as a benchmark replacement under or with respect to
248      a contract, security, or instrument by operation of this section
249      constitutes all of the following:
250              (a)         A commercially reasonable replacement for and a

                                                      Page 10 of 14

      CODING: Words stricken are deletions; words underlined are additions.
                                                                                                          hb0925-01-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 925                                                                                            2022




251      commercially substantial equivalent to LIBOR.
252              (b)         A reasonable, comparable, or analogous term for LIBOR
253      under or with respect to the contract, security, or instrument.
254              (c)         A replacement that is based on a methodology or
255      information that is similar or comparable to LIBOR.
256              (d)         Substantial performance by any person of any right or
257      obligation relating to or based on LIBOR under or with respect
258      to a contract, security, or instrument.
259              (8)         A LIBOR discontinuance event, a LIBOR replacement
260      date, the selection or use of a recommended benchmark
261      replacement as a benchmark replacement, or the determination,
262      implementation, or performance of a benchmark replacement
263      conforming change, in each case, by operation of this s ection,
264      may not:
265              (a)         Be deemed to impair or affect the right of any person
266      to receive a payment, or affect the amount or timing of the
267      payment, under a contract, security, or instrument;
268              (b)         Have the effect of discharging or excusing performance
269      under a contract, security, or instrument for any reason, claim,
270      or defense, including, but not limited to, any force majeure or
271      other provision in a contract, security, or instrument;
272              (c)         Have the effect of giving any person the right to
273      unilaterally terminate or suspend performance under a contract,
274      security, or instrument;
275              (d)         Have the effect of constituting a breach of a

                                                      Page 11 of 14

      CODING: Words stricken are deletions; words underlined are additions.
                                                                                                          hb0925-01-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 925                                                                                            2022




276      contract, security, or instrument; or
277              (e)         Have the effect of voiding or nullifying a contract,
278      security, or instrument.
279              (9)         A person is not liable for damages to any other
280      person, and is not subject to any claim or request for equitable
281      relief, arising out of or related to the selection or use of a
282      recommended benchmark replacement or the determination,
283      implementation, or performance of a benchmark replacement
284      conforming change, in each case, by operation of this section.
285      The selection or use of the recommended benchmark replacement or
286      the determination, implementation, or performance of a benchmark
287      replacement conforming change may not give rise to any claim or
288      cause of action by any person in law or in equity.
289              (10)        The selection or use of a recommended benchmark
290      replacement or the determination, implementation, or performance
291      of a benchmark replacement conforming change, by operation of
292      this section, may not be deemed to:
293              (a)         Be an amendment or modification of a contract,
294      security, or instrument.
295              (b)         Prejudice, impair, or affect a person's rights,
296      interests, or obligations under or with respect to a contract,
297      security, or instrument.
298              (11)        Except as provided in subsection (3) or subsection
299      (5), this section may not be interpreted as creating a negative
300      inference or negative presumption regarding the validity or

                                                      Page 12 of 14

      CODING: Words stricken are deletions; words underlined are additions.
                                                                                                          hb0925-01-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 925                                                                                            2022




301      enforceability of any of the following:
302              (a)         A benchmark replacement that is not a recommended
303      benchmark replacement.
304              (b)         A spread adjustment, or method for calculating or
305      determining a spread adjustment, which is not a recommended
306      spread adjustment.
307              (c)         A change, alteration, or modification to or with
308      respect to a contract, security, or instrument which is not a
309      benchmark replacement conforming change.
310              (12)        This section does not alter or impair any of the
311      following:
312              (a)         A written agreement by all requisite parties which,
313      retrospectively or prospectively, provides that a contract,
314      security, or instrument is not subject to this section without
315      necessarily referring specifically to this section. As used in
316      this paragraph, the term "requisite parties" means all parties
317      required to amend the terms and provisions of a contract,
318      security, or instrument that would otherwise be altered or
319      affected by this section.
320              (b)         A contract, security, or instrument that contains
321      fallback provisions that would result in a benchmark replacement
322      that is not based on LIBOR, including, but not limited to, the
323      prime rate or the federal funds rate. However, the contract,
324      security, or instrument is subject to subsection (4).
325              (c)         A contract, security, or instrument subject to

                                                      Page 13 of 14

      CODING: Words stricken are deletions; words underlined are additions.
                                                                                                          hb0925-01-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 925                                                                                            2022




326      subsection (5) as to which a determining person does not elect
327      to use a recommended benchmark replacement or as to which a
328      determining person elects to use a recommended benchmark
329      replacement before the occurrence of a LIBOR discontinuance
330      event. However, the contract, security, or instrument is subject
331      to subsection (4).
332              (d)         The application to a recommended benchmark replacement
333      of any cap, floor, modifier, or spread adjustment to which LIBOR
334      had been subject pursuant to the terms of a contract, security,
335      or instrument.
336              (13)        Notwithstanding the Uniform Commercial Code or any
337      other law of this state, and except as otherwise provided in
338      this section, this section applies to all contracts, securities,
339      and instruments, including contracts with respect to commercial
340      transactions, and may not be superseded by any other law o f this
341      state.
342              Section 2.         This act is remedial in nature and applies
343      retroactively to all contracts, agreements, mortgages, deeds of
344      trust, leases, instruments, obligations, or securities, whether
345      representing debt or equity, and including all interests in a
346      corporation, partnership, or limited liability company, in
347      existence on December 31, 2021.
348              Section 3.         This act shall take effect upon becoming a law.




                                                      Page 14 of 14

      CODING: Words stricken are deletions; words underlined are additions.
                                                                                                          hb0925-01-c1
CS/HB 1439
                                  HOUSE OF REPRESENTATIVES STAFF ANALYSIS
BILL #:     CS/HB 1439 Prostitution, Lewdness, Human Trafficking, and Public Lodging
SPONSOR(S): Criminal Justice & Public Safety Subcommittee, Toledo and others
TIED BILLS: HB 1441      IDEN./SIM. BILLS:

    REFERENCE                                                   ACTION                  ANALYST            STAFF DIRECTOR or
                                                                                                           BUDGET/POLICY CHIEF

    1) Criminal Justice & Public Safety Subcommittee            16 Y, 0 N, As CS        Mathews            Hall

    2) Commerce Committee                                                               Wright             Hamon

    3) Justice Appropriations Subcommittee

    4) Judiciary Committee

                                                     SUMMARY ANALYSIS
Human trafficking is modern day slavery which involves the transporting, soliciting, recruiting, harboring,
providing, enticing, maintaining, or obtaining another person for the purpose of exploiting that person. Victims
can be exploited for commercial sex in numerous contexts and traffickers frequently leverage and exploit
legitimate businesses or institutions such as social media, financial institutions, transportation systems, and
hotels or motels to carry out illegal activities.

In Florida, public lodging establishments, including vacation rentals, are regulated by the Division of Hotels and
Restaurants of the Department of Business and Professional Regulation. Florida law does not currently prohibit
operators of public lodging establishments from offering hourly rates for accommodations to customers. CS/HB
1439 prohibits an operator of a public lodging establishment from offering an hourly rate for an
accommodation, and requires a guest of a public lodging establishment to provide positive proof of
identification to the operator of the establishment at the time of occupancy.

Current law provides that a person who solicits, induces, or procures another person to commit prostitution,
lewdness, or assignation commits a first degree misdemeanor for a first violation. A person who purchases the
services of another person engaged in prostitution commits a second degree misdemeanor for a first violation.
The bill amends increases the penalties for soliciting, enticing, or procuring another person to commit
prostitution, lewdness, or assignation, and purchasing the services of any person engaged in prostitution.
Under the bill, a first offense for either crime is a third degree felony.

A victim of human trafficking is eligible for expunction of their criminal record related to a human trafficking
scheme of which the person was a victim or when the offense was committed at the direction of an operator of
the scheme. However, certain violent felony offenses are not eligible for expunction. CS/HB 1439 authorizes a
victim to seek expunction for an arrest or charges filed for such criminal offenses, so long as he or she was not
found guilty of, or did not plead guilty or nolo contendere to, the offense.

Currently, there is no singular statewide data repository for human trafficking data and reports. The bill creates
the Statewide Data Repository for Anonymous Human Trafficking Data (Repository). The bill requires the TIP
Lab to work with law enforcement and required reporting entities to collect, analyze, and distribute data relating
to human trafficking in Florida.

The bill may have an indeterminate positive impact on prison beds by creating new felony offenses and
increasing penalties for current felony offenses.

The bill is effective upon becoming a law.




This docum ent does not reflect the intent or official position of the bill sponsor or House of Representatives .
STORAGE NAME: h1439a.COM
DATE: 1/28/2022
                                                         FULL ANALYSIS

                                                 I. SUBSTANTIVE ANALYSIS

    A. EFFECT OF PROPOSED CHANGES:

         Background

         Human trafficking is modern day slavery which involves the transporting, soliciting, recruiting,
         harboring, providing, enticing, maintaining, or obtaining another person for the purpose of exploiting
         that person. Victims may be exploited for commercial sex in numerous contexts, including street
         prostitution, illicit massage parlors, brothels, escort services, and online advertising. Further, traffickers
         frequently leverage and exploit legitimate businesses or institutions such as social media, financial
         institutions, transportation systems, and hotels or motels.

         Public Lodging Establishments and Vacation Rentals

                  Background

         According to research, human trafficking for commercial sexual activity commonly takes place in hotels
         or motels.1 In Florida, public lodging establishments and vacation rentals are regulated by the Division
         of Hotels and Restaurants (H&R) of the Department of Business and Professional Regulation, under
         ch. 509, F.S. Each public lodging establishment must obtain a license from H&R and is subject to
         inspections.2

         “Public lodging establishment” includes:3
             “Transient public lodging establishments,” which means any unit, group of units, dwelling,
                 building, or group of buildings within a single complex of buildings which is rented to guests
                 more than three times in a calendar year for periods of less than 30 days, or 1 calendar month,
                 whichever is less, or which is advertised or held out to the public as a place regularly rented to
                 guests.
                     o “Vacation rental” is defined as any unit or group of units in a condominium or cooperative
                         or any individually or collectively owned single-family, two-family, three-family, or four-
                         family house or dwelling unit that is also a transient public lodging establishment but that
                         is not a timeshare project.4
             “Nontransient public lodging establishments,” which means any unit, group of units, dwelling,
                 building, or group of buildings within a single complex of buildings which is rented to guests for
                 periods of at least 30 days or 1 calendar month, whichever is less, or which is advertised or held
                 out to the public as a place regularly rented to guests for periods of at least 30 days or 1
                 calendar month.

         Classifications of public lodging establishments include apartments, hotels, motels, vacation rentals,
         bed and breakfast inns, and timeshare projects.5

         If a public lodging establishment operates in violation of ch. 509, F.S., or H&R rules, H&R may impose
         the following disciplinary actions:6
               Fines not to exceed $1,000 per offense; and
               The suspension, revocation, or refusal of a license.


1 The Polaris Project, The Typology of Modern Slavery: Defining Sex and Lab or Trafficking in the United States , (March 2017)

https://polarisproject.org/wp-content/uploads/2019/09/Polaris-Typology-of-Modern-Slavery-1.pdf (last visited January 25, 2022).
2 S. 509.241(1), F.S.
3 S. 509.013(4), F.S.
4 S. 509.242(1)(c), F.S.
5 S. 509.242, F.S.
6 S. 509.261(1), F.S.

STORAGE NAME: h1439a.COM                                                                                                          PAGE: 2
DATE: 1/28/2022
         Each operator of a transient establishment7 must maintain a register, signed by or for guests who
         occupy rental units within the establishment, showing the dates upon which the rental units were
         occupied by such guests and the rates charged for their occupancy. This register must contain records
         from the last two years, be maintained in chronological order, and be available for inspection by H&R at
         any time.8

         Currently, public lodging establishments are not prohibited from offering hourly rates for
         accommodations to customers. Also, under ch. 509, F.S., public lodging establishments do not need to
         require guests to prove their identification when they occupy the premises.

                  Effect of Proposed Changes

         CS/HB 1439 creates s. 509.098, F.S., to:
             Prohibit an operator of a public lodging establishment or vacation rental from offering an hourly
               rate for an accommodation, and
             Require a guest of a public lodging establishment or vacation rental to provide positive proof of
               identification to the operator of the establishment at the time of occupancy.

         The bill defines “vacation rental” in the same manner as it is currently defined in ch. 509, F.S.

        Soliciting or Purchasing Prostitution

                  Background

         Section 796.07, F.S., defines prostitution as the giving or receiving of the body for sexual activity for
         hire.9

         Under s. 796.07(2)(a)-(e) and (g)-(i), F.S., it is a second degree misdemeanor:10
             To own, establish, maintain, or operate any place, structure, building, or conveyance for the
                purpose of lewdness, assignation, or prostitution;
             To offer, or to offer or agree to secure, another for the purpose of prostitution or for any other
                lewd or indecent act;
             To receive, or to offer or agree to receive, any person into any place, structure, building, or
                conveyance for the purpose of prostitution, lewdness, or assignation, or to permit any person to
                remain there for such purpose;
             To direct, take, or transport, or to offer or agree to direct, take, or transport, any person to any
                place, structure, or building, or to any other person, with knowledge or reasonable cause to
                believe that the purpose of such directing, taking, or transporting is prostitution, lewdness, or
                assignation;
             For a person 18 years of age or older to offer to commit, or to commit, or to engage in,
                prostitution, lewdness, or assignation;
             To reside in, enter, or remain in, any place, structure, or building, or to enter or remain in any
                conveyance, for the purpose of prostitution, lewdness, or assignation;
             To aid, abet, or participate in any of the acts or things listed above; or
             To purchase the services of any person engaged in prostitution. 11

         The penalty for a violation listed above is reclassified to a first degree misdemeanor for a second
         violation, and a third degree felony for any third or subsequent violation.12


7 “Transient establishment” means any public lodging establishment that is rented or leased to guests by an operator whose intention is

that such guests’ occupancy will be temporary. S. 509.013(11), F.S.
8 S. 509.101(2), F.S.
9 This definition excludes sexual activity between spouses. S. 796.07(1)(a), F.S.
10 A second degree misdemeanor is punishable by up to 60 days in county jail and a fine not exceeding $500. Ss. 775.082 and

775.083, F.S.
11 S. 796.07(2), F.S.
12 S. 796.07(4), F.S.

STORAGE NAME: h1439a.COM                                                                                                       PAGE: 3
DATE: 1/28/2022
        Additionally, under s. 796.07(f), F.S., a person who solicits, induces, or procures another person to
        commit prostitution, lewdness,13 or assignation14 commits a first degree misdemeanor for a first
        violation, a third degree felony for a second violation, and a second degree felony for a third or
        subsequent violation. 15

                 Effect of Proposed Changes

        CS/HB 1439 amends s. 796.07, F.S., to increase the penalties for both the offenses of soliciting,
        enticing, or procuring another person to commit prostitution, lewdness, or assignation, and for
        purchasing the services of any person engaged in prostitution. Under the bill, the penalties for soliciting,
        inducing, enticing, or procuring another person to commit prostitution increase from a:
             First degree misdemeanor to a third degree felony for a first violation.
             Third degree felony to a second degree felony for a second violation.
             Second degree felony to a first degree felony for a third or subsequent violation.

        The penalties for purchasing the services of any person engaged in prostitution increase from a:
            Second degree misdemeanor to a third degree felony for a first violation.
            First degree misdemeanor to a second degree felony for a second violation.
            Third degree felony to a first degree felony for a third or subsequent violation.

        Human Trafficking

                 Human Trafficking Victim Expunction

                          Background

        In 2013, the Legislature created a process authorizing a victim of human trafficking to petition a court
        for the expunction of a criminal history record resulting from his or her arrest or filing of charges,
        regardless of the disposition of the arrest or charges, for an offense committed or reported to have
        been committed while he or she was a victim of human trafficking. For purposes of human trafficking
        victim expunction, “victim of human trafficking” means a person subjected to coercion 16 for the purpose
        of being used in human trafficking, a child or person believed to be a child under 18 years of age
        subjected to human trafficking, or an individual subjected to human trafficking as defined by federal law.

        To be eligible for expunction, the criminal offense must be related to a human trafficking scheme of
        which the person was a victim or the offense must have been committed at the direction of an operator
        of the scheme,17 and must not be one of the following offenses:
             Arson;
             Sexual battery;
             Robbery;
             Kidnapping;
             Aggravated child abuse;
             Aggravated abuse of an elderly person or disabled adult;
             Aggravated assault with a deadly weapon;
             Murder;
             Manslaughter;
             Aggravated manslaughter of an elderly person or disabled adult;
             Aggravated manslaughter of a child;
             Unlawful throwing, placing, or discharging of a destructive device or bomb;
             Armed burglary;

13 Lewdness means any indecent or obscene act. S. 796.07(1)(b), F.S.
14 Assignation means the making of any appointment or engagement for prostitution or lewdness, or any act in furtherance of such

appointment or engagement. S. 796.07(1)(c), F.S.
15 S. 796.07(2)(f), F.S.
16 As defined in s. 787.06, F.S.
17 S. 943.0583, F.S.

STORAGE NAME: h1439a.COM                                                                                                     PAGE: 4
DATE: 1/28/2022
                   Aggravated battery; or
                   Aggravated stalking.

           The court with original jurisdiction over the crime the human trafficking victim seeks to expunge is the
           court designated to hear the victim’s petition.18 A petition must be initiated by the petitioner with due
           diligence after he or she is no longer a victim of human trafficking or has sought human trafficking
           services.19 The petition must be accompanied by the following:
                 A sworn statement attesting that the petitioner is eligible for an expunction to the best of his or
                   her knowledge and does not have other petitions to expunge or seal pending before any court;
                   and
                 Official documentation of the petitioner’s status as a human trafficking victim, if any exists.20

           Under s. 943.0583, F.S., a petition for expunction that includes official documentation of the victim’s
           status as a human trafficking victim, though not required, creates a presumption that his or her
           participation in the offense was a result of having been a human trafficking victim. A determination on a
           petition for expunction with official documentation of victim status requires a showing of a
           preponderance of the evidence.21 22 For a petition for expunction that does not include official
           documentation of the victim’s status, a determination of expunction requires a showing of clear and
           convincing evidence.23 Clear and convincing evidence is a higher burden of proof than a
           preponderance of the evidence.

           Any criminal history record of a person that is ordered expunged under s. 943.0583, F.S., must be
           physically destroyed by any criminal justice agency having custody of such record. 24 However, any
           criminal history record in the custody of FDLE must be retained in all cases. 25 A human trafficking victim
           may lawfully deny or fail to acknowledge any expunged record unless he or she is applying for a job
           with a criminal justice agency or is a defendant in a subsequent criminal prosecution. 26

                            Effect of Proposed Changes

           The bill expands the types of offenses for which human trafficking victim is available by authorizing a
           human trafficking victim to seek expunction for an arrest or charges filed for the following offenses, so
           long as he or she was not found guilty of, or plead guilty or nolo contendere to, the offense:
                Arson;
                Sexual battery;
                Robbery;
                Kidnapping;
                Aggravated child abuse;
                Aggravated abuse of an elderly person or disabled adult;
                Aggravated assault with a deadly weapon;
                Murder;
                Manslaughter;
                Aggravated manslaughter of an elderly person or disabled adult;
                Aggravated manslaughter of a child;

18 S. 943.0583(2), F.S.
19 S. 943.0583(4), F.S.
20
     S. 943.0583(6), F.S.
21 S. 943.0583(3), F.S.
22 Under the preponderance standard, the burden of proof is met when the party with the burden convinces the fact finder that th ere is a

greater than 50% chance that the claim is true. Cornell Law School: Legal Information Institute, Preponderance of the Evidence,
https://www.law.cornell.edu/wex/preponderance_of_the_evidence (last visited Jan. 23, 2022).
23 According to the Supreme Court in Colorado v. New Mexico, 467 U.S. 310 (1984), "clear and convincing” means that the evidence is

highly and substantially more likely to be true than untrue; the fact finder must be convinced that the contention is highly probable.
Cornell Law School: Legal Information Institute, Clear and Convincing Evidence,
https://www.law.cornell.edu/wex/clear_and_convincing_evidence#:~:text=Definition,the%20contention%20is%20highly%20probable .
(last visited Jan. 23, 2022).
24 S. 943.0583(8), F.S.
25 Id.
26 S. 943.0583(8)(b), F.S.

STORAGE NAME: h1439a.COM                                                                                                         PAGE: 5
DATE: 1/28/2022
                 Unlawful throwing, placing, or discharging of a destructive device or bomb;
                 Armed burglary;
                 Aggravated battery; or
                 Aggravated stalking.

         The bill removes the requirement that petitions submitted without official documentation of the victim’s
         status include a showing of clear and convincing evidence. As such, the burden of proof reverts to the
         standard requirement of a preponderance of the evidence, lowering the evidentiary threshold a victim
         must meet in order to obtain an expunction without official documentation of his or her victim status.

                  Statewide Data Repository for Anonymous Human Trafficking Data

                           Background

         Currently, human trafficking data is collected across multiple agencies and entities. However, there is
         no singular, uniform statewide data repository for human trafficking data.

         FDLE’s Uniform Crime Report (UCR) system provides standardized reports on crime statistics based
         on statewide data.27 The fundamental objectives of the Florida UCR Program are to:
              Collect accurate summary crime data from all law enforcement agencies in the state;
              Maintain agency crime statistics in a statewide database and provide a barometer of the
                 frequency and clearance rates of certain crimes;
              Publish semi-annual and annual reports to the FDLE Commissioner, Florida Governor, Florida
                 Legislature, and the public of the various crime trends in the state;
              Collect the number of offenses known to UCR Program contributors for murder, manslaughter,
                 forcible rape, robbery, aggravated assault, burglary, larceny, motor vehicle theft, arson, simple
                 assault, domestic violence, and other offenses and related arrest information. 28

         The Florida Incident Based Reporting System (FIBRS) is a statewide database for incident based
         reporting. FIBRS streamlines several data collection efforts into one system which includes data
         collections from:
              NIBRS (National Incident Based Reporting System);
              Hate Crimes;
              Cargo Theft;
              Human Trafficking;
              Use-of-Force;
              Law Enforcement Information Exchange (LInX); and
              Police Employee Counts.29

         The University of South Florida recently established its Trafficking in Persons – Risk to Resilience Lab
         (TIP Lab), which is dedicated to eradicating human trafficking in the Tampa Bay area.30 The TIP Lab
         conducts innovative and interdisciplinary research to address human trafficking issues and trends and
         shares knowledge and resources with the community through the establishment of a data depository for
         use by human trafficking researchers.31 Prior to the creation of the TIP Lab, Florida did not have a
         unified data center for human trafficking.32

                           Effect of Proposed Changes

27 FDLE, Uniform Crime Report, https://www.fdle.state.fl.us/FSAC/Uniform-Crime-Report (last visited Jan. 25, 2022).
28 FDLE, Uniform Crime Reports Guide Manual (November 2018), https://www.fdle.state.fl.us/FSAC/UCR/UCRGuideManual.aspx (last

visited Jan. 25, 2022).
29 FDLE, Florida Incident-Based Reporting System (FIBRS), https://www.fdle.state.fl.us/UCR/QR/FIBRS (last visited Jan. 25, 2022).
30 University of South Florida, USF Trafficking in Persons – Risk to Resilience Lab , https://tiplab.cbcs.usf.edu/index.php (last visited

January 25, 2022).
31 Id.
32 University of South Florida St. Petersburg Campus, Grand Opening of New Research Lab to Comb at Human Trafficking in Florida ,

(September 15, 2021), https://www.stpetersburg.usf.edu/news/2021/grand-opening-human-trafficing-lab.aspx (last visited Jan. 25,
2022).
STORAGE NAME: h1439a.COM                                                                                                           PAGE: 6
DATE: 1/28/2022
       CS/HB 1439 creates s. 1004.343, F.S., to create the Statewide Data Repository for Anonymous Human
       Trafficking Data (Repository) to be housed under the University of South Florida Trafficking in Persons
       – Risk to Resilience Lab (TIP Lab).

       The bill requires the Repository to collect anonymous data on human trafficking to: identify trends in the
       state over time, evaluate the effectiveness of various state initiatives and interventions, and
       disseminate relevant data to law enforcement agencies, state agencies, and other entities to assist in
       combatting human trafficking and apprehending and prosecuting persons responsible for conducting
       human trafficking.

       Under the bill, the TIP Lab is responsible for designing, operating, maintaining and protecting the
       integrity of the Repository and the data collected. The bill requires the TIP Lab to work with the Florida
       Department of Law Enforcement (FDLE) and other law enforcement partners to launch a no cost, user-
       friendly reporting system by which reporting entities may make reports.

       The bill designates the following agencies and entities as required reporting entities:
           Law enforcement agencies operating with state or local government tax proceeds, including, but
               not limited to, municipal police departments, county sheriffs, and state attorneys;
           FDLE and any other state agency that holds data related to human trafficking; and
           Service providers and other nongovernmental organizations that serve human trafficking victims
               and receive state or federal funding to do so.

       The bill exempts a required reporting entity that submits relevant data to FDLE through the Uniform
       Crime Report System (UCR) or through the Florida Incident Based Reporting System (FIBRS). The bill
       requires FDLE to provide such data to the Repository on a quarterly basis.

       A required reporting entity must submit the following data to the Repository:
            The alleged human trafficking offense and description of the prohibited conduct;
            The age, gender, and race or ethnicity of each suspect or defendant;
            The age, gender, and race or ethnicity of the victim;
            The date, time, and location of the alleged offense;
            The type of human trafficking involved, whether for labor or services or commercial sexual
              activity;
            Any other alleged offense related to the human trafficking offense;
            Information about any victim services referrals provided to the victim, if available; and
            The disposition of the investigation or prosecution.

       The bill requires reporting entities in a county with a population of 500,000 or more to begin reporting to
       the Repository by July 1, 2023. Required reporting entities in a county with a population less than
       500,000 must begin reporting to the Repository by July 1, 2024.

       The bill is effective upon becoming a law.

   B. SECTION DIRECTORY:
       Section 1: Provides the act may be cited as the “Human Trafficking Reduction Act.”
       Section 2: Creates s. 509.098, F.S., relating to prohibition of hourly rates; proof of identification.
       Section 3: Amends s. 796.07, F.S., relating to prohibiting prostitution and related acts.
       Section 4: Amends s. 943.0583, F.S., relating to human trafficking victim expunction.
       Section 5: Creates s. 1004.343, F.S., relating to Statewide Data Repository for Anonymous Human
                  Trafficking Data.
       Section 6: Provides that the bill is effective upon becoming a law.


                        II. FISCAL ANALYSIS & ECONOMIC IMPACT STATEMENT

STORAGE NAME: h1439a.COM                                                                                   PAGE: 7
DATE: 1/28/2022
   A. FISCAL IMPACT ON STATE GOVERNMENT:

       1. Revenues:
           None.

       2. Expenditures:
           The bill may have an indeterminate positive impact on prison beds by creating new felony offenses
           and increasing penalties for current felony offenses.

           The bill requires that a system for reporting anonymous human trafficking data to the Repository be
           made available by the TIP Lab to required reporting entities at no additional cost to the entity. The
           bill may have an indeterminate impact on state government due to an increased workload for the
           TIP Lab.

   B. FISCAL IMPACT ON LOCAL GOVERNMENTS:

       1. Revenues:
           None.

       2. Expenditures:
           The bill requires that a system for reporting anonymous human trafficking data to the Repository be
           made available by the TIP Lab to required reporting entities at no additional cost to the entity. As
           such, the bill should not have a fiscal impact on local government entities required to report data to
           the Repository.

   C. DIRECT ECONOMIC IMPACT ON PRIVATE SECTOR:
       The bill may have an indeterminate fiscal impact on the private sector by prohibiting hourly rates for
       public lodging establishments. Those consumers who currently rent public lodging establishments by
       the hour may have to pay the daily rate, which may increase revenues for public lodging
       establishments, but cost more for consumers.

   D. FISCAL COMMENTS:
       The bill requires the TIP LAB to house and operate the Repository, but does not address how the
       Repository will be funded. As such, the fiscal impact to the TIP Lab is indeterminate.


                                               III. COMMENTS

   A. CONSTITUTIONAL ISSUES:

       1. Applicability of Municipality/County Mandates Provision:
         None.

       2. Other:
         None.

   B. RULE-MAKING AUTHORITY:
       None.

   C. DRAFTING ISSUES OR OTHER COMMENTS:
       None.


STORAGE NAME: h1439a.COM                                                                                   PAGE: 8
DATE: 1/28/2022
                           IV. AMENDMENTS/COMMITTEE SUBSTITUTE CHANGES
   On January 25, 2022, the Criminal Justice & Public Safety Subcommittee adopted a proposed committee
   substitute (PCS) and reported the bill favorably as a committee substitute. The PCS differed from the
   original bill as it:
        Included a definition of the term “vacation rental” in s. 509.098, F.S.;
        Deleted a requirement for case numbers to be reported to the Repository; and
        Made other technical revisions for clarity.

   This analysis is drafted to the committee substitute as passed by the Criminal Justice & Public Safety
   Subcommittee.




STORAGE NAME: h1439a.COM                                                                                PAGE: 9
DATE: 1/28/2022
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




           CS/HB 1439                                                                                           2022




    1                                         A bill to be entitled
    2              An act relating to prostitution, lewdness, human
    3              trafficking, and public lodging; providing a short
    4              title; creating s. 509.098, F.S.; providing a
    5              definition; prohibiting an operator of a public
    6              lodging establishment or a vacation rental from
    7              offering an hourly rate for an accommodation;
    8              requiring a guest of a public lodging establishment or
    9              a vacation rental to provide positive proof of
10                 identification to such operator at the time of
11                 occupancy; amending s. 796.07, F.S.; increasing
12                 criminal penalties for soliciting or procuring another
13                 person to commit prostitution or other specified
14                 offenses or purchasing the services of a person
15                 engaged in prostitution; amending s. 943.0583, F.S.;
16                 providing that human trafficking victim expunction of
17                 criminal history records does not apply to specified
18                 offenses; deleting a requirement for a specific
19                 evidentiary standard when determining human
20                 trafficking victim status in the absence of official
21                 documentation; creating s. 1004.343, F.S.; creating
22                 the Statewide Data Repository for Anonymous Human
23                 Trafficking Data at the University of South Florida;
24                 providing purposes of the data repository; specifying
25                 duties of the university; designating required

                                                         Page 1 of 9

        CODING: Words stricken are deletions; words underlined are additions.
                                                                                                            hb1439-01-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 1439                                                                                           2022




26              reporting entities; requiring specified information to
27              be reported; providing timeframes for reporting;
28              providing an effective date.
29
30      Be It Enacted by the Legislature of the State of Florida:
31
32              Section 1.         This act may be cited as the "Human Trafficking
33      Reduction Act."
34              Section 2.         Section 509.098, Florida Statutes, is created
35      to read:
36              509.098        Prohibition of hourly rates; proof of
37      identification.—
38              (1)         For purposes of this section, the term "vacation
39      rental" has the same meaning as provided in s. 509.242(1)(c).
40              (2)         An operator of a public lodging establishment or a
41      vacation rental may not offer an hourly rate for an
42      accommodation.
43              (3)         A guest of a public lodging establishment or a
44      vacation rental must provide positive proof of identification to
45      the operator of the public lodging establishment or the vacation
46      rental at the time of his or her occupancy of the accommodation.
47              Section 3.         Paragraph (a) of subsection (5) of section
48      796.07, Florida Statutes, is amended, and paragraphs (f) and (i)
49      of subsection (2) of that section are republished, to read:
50              796.07        Prohibiting prostitution and related acts.—

                                                      Page 2 of 9

     CODING: Words stricken are deletions; words underlined are additions.
                                                                                                         hb1439-01-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 1439                                                                                           2022




51              (2)         It is unlawful:
52              (f)         To solicit, induce, entice, or procure another to
53      commit prostitution, lewdness, or assignation.
54              (i)         To purchase the services of any person engaged in
55      prostitution.
56              (5)(a)        A person who violates paragraph (2)(f) or paragraph
57      (2)(i) commits:
58              1.      A felony of the third misdemeanor of the first degree
59      for a first violation, punishable as provided in s. 775.082, or
60      s. 775.083, or s. 775.084.
61              2.      A felony of the second third degree for a second
62      violation, punishable as provided in s. 775.082, s. 775.083, or
63      s. 775.084.
64              3.      A felony of the first second degree for a third or
65      subsequent violation, punishable as provided in s. 775.082, s.
66      775.083, or s. 775.084.
67              Section 4.          Subsections (3) and (5) of section 943.0583,
68      Florida Statutes, are amended to read:
69              943.0583           Human trafficking victim expunction.—
70              (3)(a)        Except as provided in paragraph (b), a person who
71      is a victim of human trafficking may petition for the expunction
72      of a criminal history record resulting from the arrest or filing
73      of charges for one or more offenses committed or reported to
74      have been committed while the person was a victim of human
75      trafficking, which offense was committed or reported to have

                                                      Page 3 of 9

     CODING: Words stricken are deletions; words underlined are additions.
                                                                                                         hb1439-01-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 1439                                                                                           2022




 76      been committed as a part of the human trafficking scheme of
 77      which the person was a victim or at the direction of an operator
 78      of the scheme, including, but not limited to, violations under
 79      chapters 796 and 847, without regard to the disposition of the
 80      arrest or of any charges.
 81              (b)         However, This section does not apply to any offense
 82      listed in s. 775.084(1)(b)1. if the defendant was found guilty
 83      of, or pled guilty or nolo contendere to, any such offense.
 84              (c)         Determination of the petition under this section
 85      should be by a preponderance of the evidence. A conviction
 86      expunged under this section is deemed to have been vacated due
 87      to a substantive defect in the underlying criminal proceedings.
 88      If a person is adjudicated not guilty by reason of insanity or
 89      is found to be incompetent to stand trial for any such charge,
 90      the expunction of the criminal history record may not prevent
 91      the entry of the judgment or finding in state and national
 92      databases for use in determining eligibility to purchase or
 93      possess a firearm or to carry a concealed firearm, as authorized
 94      in s. 790.065(2)(a)4.c. and 18 U.S.C. s. 922(t), nor shall it
 95      prevent any governmental agency that is authorized by state or
 96      federal law to determine eligibility to purchase or possess a
 97      firearm or to carry a concealed firearm from accessing or using
 98      the record of the judgment or finding in the course of such
 99      agency's official duties.
100              (5)         Official documentation of the victim's status creates

                                                       Page 4 of 9

      CODING: Words stricken are deletions; words underlined are additions.
                                                                                                          hb1439-01-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 1439                                                                                           2022




101      a presumption that his or her participation in the offense was a
102      result of having been a victim of human trafficking but is not
103      required for granting a petition under this section. A
104      determination made without such official documentation must be
105      made by a showing of clear and convincing evidence.
106              Section 5.          Section 1004.343, Florida Statutes, is created
107      to read:
108              1004.343           Statewide Data Repository for Anonymous Human
109      Trafficking Data.—
110              (1)         There is created the Statewide Data Repository for
111      Anonymous Human Trafficking Data. The repository shall be housed
112      in and operated by the University of South Florida Trafficking
113      in Persons - Risk to Resilience Lab.
114              (a)         The Statewide Data Repository for Anonymous Human
115      Trafficking Data shall:
116              1.      Collect and analyze anonymous human trafficking data to
117      identify trends in human trafficking in the state over time.
118              2.      Evaluate the effectiveness of various state-funded
119      initiatives to combat human trafficking to enable the state to
120      make evidence-based decisions in funding future initiatives.
121              3.      Disseminate relevant data to law enforcement agencies,
122      state agencies, and other entities to assist in combatting human
123      trafficking and apprehending and prosecuting persons responsible
124      for conducting human trafficking.
125              4.      Evaluate the effectiveness of interventions and

                                                       Page 5 of 9

      CODING: Words stricken are deletions; words underlined are additions.
                                                                                                          hb1439-01-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 1439                                                                                           2022




126      services provided to assist human trafficking victims.
127              (b)         The University of South Florida Trafficking in Persons
128      – Risk to Resilience Lab shall:
129              1.      Design, operate, maintain, and protect the integrity of
130      the Statewide Data Repository for Anonymous Human Trafficking
131      Data.
132              2.      Design, in consultation with the Department of Law
133      Enforcement and other law enforcement partners, and launch a
134      user-friendly system for efficiently reporting anonymous human
135      trafficking data to the Statewide Data Repository for Anonymous
136      Human Trafficking Data at no additional cost to reporting
137      entities.
138              3.      Analyze anonymous human trafficking data to identify
139      initiatives and interventions that are effective in combatting
140      human trafficking, apprehending and prosecuting persons
141      responsible for conducting human trafficking, and assisting
142      human trafficking victims.
143              4.      Work with law enforcement agencies and state agencies
144      to report data on human trafficking investigations and
145      prosecutions which can aid such agencies in combatting human
146      trafficking and apprehending and prosecuting persons responsible
147      for conducting human trafficking.
148              (2)(a)        Except as provided in paragraph (b), the following
149      agencies and entities shall report anonymous human trafficking
150      data required under this section:

                                                       Page 6 of 9

      CODING: Words stricken are deletions; words underlined are additions.
                                                                                                          hb1439-01-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 1439                                                                                           2022




151              1.      Law enforcement agencies operating with state or local
152      government tax proceeds, including, but not limited to,
153      municipal police departments, county sheriffs, and state
154      attorneys.
155              2.      The Department of Law Enforcement and any other state
156      agency that holds data related to human trafficking.
157              3.      Service providers and other nongovernmental
158      organizations that serve human trafficking victims and receive
159      state or federal funding for such purpose.
160              (b)         A required reporting entity that submits the data
161      required under subsection (3) to the Department of Law
162      Enforcement's Uniform Crime Report system or Florida Incident -
163      Based Reporting System may, but is not required to, submit any
164      additional data to the Statewide Data Repository for Anonymous
165      Human Trafficking Data. The Department of Law Enforcement shall
166      report to the Statewide Data Repository for Anonymous Human
167      Trafficking Data, at least quarterly, the data required under
168      subsection (3) that has been reported by a required reporting
169      entity to the department.
170              (3)         A required reporting entity shall submit the following
171      data to the Statewide Data Repository for Anonymous Human
172      Trafficking Data unless such entity is exempt from the reporting
173      requirement under paragraph (2)(b):
174              (a)         The alleged human trafficking offense that was
175      investigated or prosecuted and a description of the alleged

                                                       Page 7 of 9

      CODING: Words stricken are deletions; words underlined are additions.
                                                                                                          hb1439-01-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 1439                                                                                           2022




176      prohibited conduct.
177              (b)         The age, gender, and race or ethnicity of each suspect
178      or defendant and victim.
179              (c)         The date, time, and location of the alleged offense.
180              (d)         The type of human trafficking involved, whether for
181      labor or services or commercial sexual activity.
182              (e)         Any other alleged offense related to the human
183      trafficking offense that was investigated or prosecuted.
184              (f)         Information regarding any victim services organization
185      or related program to which the victim was referred, if
186      available.
187              (g)         The disposition of the investigation or prosecution,
188      regardless of the manner of disposition.
189              (4)(a)        A required reporting entity located in a county
190      with a population of more than 500,000 must begin reporting data
191      required by this section to the Statewide Data Repository for
192      Anonymous Human Trafficking Data, or to the Department of Law
193      Enforcement as authorized under paragraph (2)(b), on or before
194      July 1, 2023, and at least quarterly each year thereafter.
195              (b)         A required reporting entity located in a county with a
196      population of 500,000 or fewer must begin reporting data
197      required by this section to the Statewide Data Repository for
198      Anonymous Human Trafficking Data, or to the Department of Law
199      Enforcement as authorized under paragraph (2)(b), on or before
200      July 1, 2024, and at least biannually each year thereafter.

                                                       Page 8 of 9

      CODING: Words stricken are deletions; words underlined are additions.
                                                                                                          hb1439-01-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 1439                                                                                           2022




201              Section 6.         This act shall take effect upon becoming a law.




                                                       Page 9 of 9

      CODING: Words stricken are deletions; words underlined are additions.
                                                                                                          hb1439-01-c1


File and source

File
2022-02-01_3098_commerce-committee_meeting-packets_fn-com-2-1-22.pdf
Size
2,730,576 bytes
SHA-256
6b285c8a3f87cde14eade328c5bd8c5f372175bd742faefa01b3a4f74bba7b70
Our copy
2022-02-01_3098_commerce-committee_meeting-packets_fn-com-2-1-22.pdf
Original
No public link identified.
Back to top