Meeting Packet - Commerce Committee, Florida House of Representatives (February 17, 2022)
Summary
Meeting packet for the Commerce Committee of the Florida House of Representatives, Thursday, February 17, 2022. The agenda lists CS/HB 431 Financial Institutions, HB 667 Department of Business and Professional Regulation, HB 705 Mergers and Acquisitions Reporting, HB 1023 Insolvent Insurers and HM 1531, a memorial on a free trade agreement with the United Kingdom. The staff analysis of CS/HB 431 says the bill permits a foreign national to appear by video conference at a hearing and gives the Office of Financial Regulation an additional 90 days to meet the examination requirement if a federal regulator cancels a scheduled examination. The analysis states an indeterminate fiscal impact and a July 1, 2022 effective date.
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“Meeting Packet - Commerce Committee, Florida House of Representatives (February 17, 2022).”
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Commerce Committee
Thursday, February 17, 2022
9:00 AM - 11:00 AM
Webster Hall (212 Knott)
Meeting Packet
Chris Sprowls Blaise Ingoglia
Speaker Chair
The Florida House of Representatives
Commerce Committee
Chris Sprowls Blaise Ingoglia
Speaker Chair
Meeting Agenda
Thursday, February 17, 2022
9:00 AM – 11:00 AM
Webster Hall (212 Knott)
I. Call to Order
II. Roll Call
III. Welcome and Opening Remarks
IV. Consideration of the following bill(s):
• CS/HB 431 Financial Institutions by Insurance & Banking Subcommittee,
Barnaby, Snyder
• CS/HB 453 Officer and Firefighter Physical Examination Requirements and
Records by Criminal Justice & Public Safety Subcommittee, Duggan, Byrd
• HB 667 Department of Business and Professional Regulation by McClain
• CS/HB 685 Rural Development by State Affairs Committee, Drake
• CS/CS/HB 701 Boating and Vessel Safety by Environment, Agriculture &
Flooding Subcommittee, Tourism, Infrastructure & Energy Subcommittee,
McFarland, Botana
• HB 705 Mergers and Acquisitions Reporting by Grall
• CS/HB 907 Florida Seaport Transportation and Economic Development Council
by Tourism, Infrastructure & Energy Subcommittee, Payne
303 House Office Building, 402 South Monroe Street, Tallahassee, FL 32399-1300
(850) 717-4870
• CS/CS/HB 959 Department of Financial Services by Finance & Facilities
Subcommittee, Insurance & Banking Subcommittee, LaMarca
• CS/HB 1005 Advanced Air Mobility by Tourism, Infrastructure & Energy
Subcommittee, Fischer
• HB 1023 Insolvent Insurers by Fabricio
• CS/HB 1233 Online Training for Private Security Officers by Regulatory Reform
Subcommittee, Fine, Willhite
• CS/HB 1411 Floating Solar Facilities by Local Administration & Veterans Affairs
Subcommittee, Avila
• HB 1469 Transportation Facility Designations by Grieco
• HM 1531 Free Trade Agreement Between the United States and the United
Kingdom by Barnaby
V. Closing Remarks
VI. Adjournment
CS/HB 431
HOUSE OF REPRESENTATIVES STAFF ANALYSIS
BILL #: CS/HB 431 Financial Institutions
SPONSOR(S): Insurance & Banking Subcommittee, Barnaby, Snyder and others
TIED BILLS: IDEN./SIM. BILLS: CS/SB 1680
REFERENCE ACTION ANALYST STAFF DIRECTOR or
BUDGET/POLICY CHIEF
1) Insurance & Banking Subcommittee 17 Y, 0 N, As CS Luczynski Hinshelwood
2) State Administration & Technology 14 Y, 0 N Lee Topp
Appropriations Subcommittee
3) Commerce Committee Hinshelwood Hamon
SUMMARY ANALYSIS
The Office of Financial Regulation (OFR) regulates banks, credit unions, other financial institutions, finance
companies, and the securities industry. The OFR’s Division of Financial Institutions charters, licenses, and
regulates various entities that engage in financial institution business in Florida, in accordance with the financial
institutions codes and the rules promulgated thereunder. The bill makes the following changes to the financial
institutions codes:
Permits a foreign national to appear through video conference, rather than in person, at a hearing
regarding the foreign national’s proposal to have a controlling interest in a current or proposed state
bank or trust company.
Provides the OFR an additional 90 days to comply with the examination requirement for financial
institutions if the federal regulator suspends or cancels a scheduled examination.
Requires each director of a financial institution to review and sign a report of examination.
Clarifies provisions relating to a financial institution’s acquisition of another financial institution’s assets
or liabilities.
Amends the definition of “financial institution” for purposes of the Florida Control of Money Laundering
and Terrorist Financing in Financial Institutions Act.
Relocates and clarifies a provision relating to a credit union’s reporting of names and addresses of
newly elected or appointed officers and directors.
Permits OFR to approve a bank or trust company based on the intended “target market” rather than just
the geographic area from which the bank or trust company intends to draw deposits and accounts.
Allows the OFR to waive the experience requirement for a proposed president or CEO of a new bank or
trust company pursuant to specified considerations about the person and the proposed institution.
Provides a process for persons to seek approval to own a controlling interest in a financial institution in
the event of inheritance of such controlling interest.
Defines “de novo branch” in the context of interstate bank branching by state-chartered banks.
Permits certain family trust companies to maintain a deposit account at an insured bank or credit union
located anywhere in the United States, regardless of whether the bank or credit union has a principal
office or branch in Florida.
Amends the deadline for a family trust company to file an annual renewal.
Permits certain international bank offices licensed by OFR to maintain required assets in an insured
bank located anywhere in the United States, not just those banks that are located in Florida.
Updates reference to the name of a list of international jurisdictions that have weak measures to combat
money laundering and terrorist financing, and requires a specified licensed entity to suspend its activities
relating to a jurisdiction on that list.
The bill has an indeterminate fiscal impact. See Fiscal Comments.
The bill provides an effective date of July 1, 2022.
This docum ent does not reflect the intent or official position of the bill sponsor or House of Representatives .
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FULL ANALYSIS
I. SUBSTANTIVE ANALYSIS
A. EFFECT OF PROPOSED CHANGES:
Background
The Office of Financial Regulation (OFR) regulates banks, credit unions, other financial institutions,
finance companies, and the securities industry.1 The OFR’s Division of Financial Institutions charters,
licenses, and regulates various entities that engage in financial institution business in Florida, in
accordance with the financial institutions codes and the rules promulgated thereunder.2 The specific
chapters under the financial institutions codes are:
Chapter 655, F.S. – Financial Institutions Generally
Chapter 657, F.S. – Credit Unions
Chapter 658, F.S. – Banks and Trust Companies
Chapter 660, F.S. – Trust Business
Chapter 662, F.S. – Family Trust Companies
Chapter 663, F.S. – International Banking
Chapter 665, F.S. – Capital Stock Associations
Chapter 667, F.S. – Savings Banks
As of June 30, 2020, the Division of Financial Institutions regulates 197 financial institutions:3
69 banks
66 credit unions
21 international bank offices
15 trust companies
16 family trust companies
10 qualified limited service affiliates
Formation and Regulation of a Florida-Chartered Bank or Trust Company
Under the dual banking system in the United States, banks may be chartered under either state or
federal law:
State-chartered banks are chartered under the laws of the state in which the bank is
headquartered. State-chartered banks have both a state regulator, which for banks chartered by
the state of Florida is the OFR, and a federal regulator. The primary federal regulator for state
banks that are members of the Federal Reserve System is the Board of Governors of the
Federal Reserve System (FRB), and the primary federal regulator for non-member state banks
is the Federal Deposit Insurance Corporation (FDIC). 4
National banks are chartered by the Office of the Comptroller of the Currency (OCC) under the
National Bank Act.5 As such, the OCC is the primary federal regulator for national banks.6
A trust company is a business organization, other than a bank, which is authorized by lawful authority
to engage in the business of acting as a fiduciary. 7 Trust companies are chartered by states, and the
state regulator for trust companies chartered by the state of Florida is the OFR. Trust companies do not
have a federal regulator.
1 S. 20.121(3)(a)2., F.S.
2 Chs. 655, 657, 658, 660, 662, 663, 665, and 667, F.S.; chs. 69U-100 through 69U-162, F.A.C.
3 Office of Financial Regulation, Fast Facts (2021 ed.), https://flofr.gov/sitePages/documents/FastFacts.pdf.
4 12 U.S.C. § 1813(q).
5 12 U.S.C. § 38.
6 12 U.S.C. § 1813(q).
7 S. 658.12(20) and (21), F.S.
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In order to apply for authority to organize a new state-chartered bank or trust company, the proposed
directors must file a written application with the OFR.8 The application includes such information as the
name, residence, and occupation of each proposed director; the name and residence of the proposed
president and chief executive officer, if known; the proposed corporate name; the community, including
the street and number, if available, where the principal office of the proposed bank is to be located; the
total initial capital; the proposed business plan; and pro forma financial statements. 9
The OFR utilizes the information contained in the application in order to make an investigation of:10
1) The character, reputation, financial standing, business experience, and business qualifications
of the proposed officers and directors.
2) The need for bank or trust facilities or additional bank or trust facilities, as the case may be, in
the primary service area11 where the proposed bank or trust company is to be located.
3) The ability of the primary service area to support the proposed bank or trust company and all
other existing bank or trust facilities in the primary service area.
The OFR evaluates the viability of the business plan in light of current conditions in the primary service
area and the metropolitan statistical area or county, as well as in the industry in general.12
After making such investigation, the OFR must approve an application if it finds the following: 13
1) Local conditions indicate reasonable promise of successful operation for the proposed state
bank or trust company.
2) The proposed capitalization is adequate, but at least $8 million for a bank and at least $3 million
for a trust company.
3) The proposed capital structure is in such form as the OFR may require, subject to certain
minimum requirements.
4) Regarding officers and directors:
a. The proposed officers have sufficient financial institution experience, ability, standing,
and reputation and the proposed directors have sufficient business experience, ability,
standing, and reputation to indicate reasonable promise of successful operation.
b. None of the proposed officers or directors has been convicted of, or pled guilty or nolo
contendere to, any violation of s. 655.50, F.S., relating to the control of money
laundering and terrorist financing; ch. 896, F.S., relating to offenses related to financial
institutions; or similar state or federal law.
c. At least two of the proposed directors who are not also proposed officers have had at
least 1 year of direct experience as an executive officer, regulator, or director of a
financial institution within the 5 years before the date of the application. However, if the
applicant demonstrates that at least one of the proposed directors has very substantial
experience as an executive officer, director, or regulator of a financial institution more
than 5 years before the date of the application, the OFR may allow the applicant to have
only one director who has direct financial institution experience within the last 5 years.
d. The proposed president or chief executive officer must have had at least 1 year of direct
experience as an executive officer, director, or regulator of a financial institution within
the last 5 years.
5) The corporate name of the proposed state bank is approved by the OFR.
6) Provision has been made for suitable quarters at the location in the application.
8 S. 658.19(1), F.S.; R. 69U-105.202(1), F.A.C.
9 Id.
10 S. 658.20(1), F.S.
11 “Primary service area” is defined by agency rule as “the smallest geographical area from which the proposed state
bank, savings bank or association expects to draw approximately seventy -five percent of its deposits. Said term also
means the smallest geographical area from which a state trust company expects to draw approximately 75 percent of the
asset value of its fiduciary accounts. It should be drawn around a natural customer base and should not be unrealistically
delineated to exclude competing financial institutions or to include areas of concentrated population.” R. 69U-105.001(9),
F.A.C.
12 Office of Financial Regulation (OFR), Agency Analysis of 2022 Senate Bill 1680 (Jan. 12, 2022).
13 S. 658.21, F.S.
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Due to technological advancements, the banking industry has become increasingly interconnected and
more digitally driven; many customers no longer engage with their bank exclusively through brick and
mortar branches.14 In order to remain competitive, many financial institutions have adopted online
banking platforms and apps.15 Despite the advent of online banking, the financial institutions codes
remain premised on a brick and mortar centric business plan. 16
In recent years, the banking industry both in Florida and nationally has consolidated. 17 As mergers and
acquisitions occur in the banking industry, executives are commonly subjected to non-compete
agreements that may last several years.18 Because a proposed president or chief executive officer
must have requisite experience within a 5-year time frame, the current statutory timeframe narrows the
pool of otherwise qualified potential executive officers who may serve in that capacity at a new Florida-
chartered bank.19 Groups of individuals seeking to organize a new bank have found the 5-year
requirement an impediment to finding quality president or CEO candidates. 20 This timeframe is not
required for nationally chartered banks.21 Further, for existing Florida-chartered banks, the OFR may
waive the timeframe after considering the overall experience and expertise of the proposed officer and
the condition of the bank or trust company.22
Interstate Bank Branching by State-Chartered Banks
A Florida-chartered bank may establish and maintain a de novo branch (new branch) or acquire a
branch in a state other than Florida. To do so, the Florida-chartered bank must submit an application
and fee to the OFR and receive the OFR’s approval.23
A bank chartered by a state other than Florida may establish and maintain a de novo branch or acquire
a branch in Florida upon compliance with Florida’s limited liability company or corporations laws
relating to doing business in Florida as a foreign business entity.24 No application is filed with the OFR.
Currently, Florida law does not contain a definition for “de novo branch”. Under FDIC regulations, “de
novo branch” is defined25 as a branch of a state bank which:
1) Is originally established by the State bank as a branch; and
2) Does not become a branch of such bank as a result of:
a. The acquisition by the bank of an insured depository institution or a branch of an insured
depository institution; or
b. The conversion, merger, or consolidation of any such institution or branch.
Acquisition of Control of a Florida-Chartered Bank or Trust Company
A person or group of persons is considered to have a controlling interest over a state bank or state trust
company if any of the following are true:26
14 OFR, supra note 12.
15 Id.
16 Id.
17 Id.
18 Id.
19 Id.
20 Id.
21 Id.
22 “The president, chief executive officer, or any other person, regardless of title, who has equivalent rank or leads the
overall operations of [an existing] bank or trust company must have had at least 1 year of direct experience as an
executive officer, director, or regulator of a financial institution within the last 5 years. This requirement may be waived by
the office after considering the overall experience and expertise of the proposed officer and the condition of the bank or
trust company, as reflected in the most recent regulatory examination report and other available data.” S. 658.33(5), F.S.
(emphasis added).
23 S. 658.2953(11)(a) and (b), F.S.
24 S. 658.2953(11)(c), F.S.
25 12 U.S.C. § 1828(d)(4)(C).
26 Ss. 658.27(2) and 658.28(2), F.S.
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They directly or indirectly own, control, or have the power to vote 25 percent or more of any
class of voting securities of the institution.
They control, in any manner, the election of a majority of the directors, trustees, or other
governing body of the institution; they own, control, or have the power to vote 10 percent or
more of any class of voting securities and exercise a controlling influence over management or
policies of the institution.
The OFR determines, after notice and opportunity for a hearing, that the person or persons
directly or indirectly exercises a controlling influence.
A person or group of persons who proposes to purchase or acquire a controlling interest in a state bank
or trust company may not acquire such an interest until they have submitted an application to the OFR
and have been approved.27 In order to be approved, an applicant must have the reputation, character,
experience, and financial responsibility to control and operate the bank or trust company in a legal and
proper manner and in such a way that would not jeopardize the interests of the stockholders,
depositors, and creditors of the institution, or the public.28 Conviction for certain crimes, such as money
laundering, is a disqualifier.29
If a foreign national proposes to own or control 10 percent or more of a class of voting securities of a
new state bank or trust company, or proposes to acquire a controlling interest in an existing state bank
or trust company, the OFR must conduct a public hearing at which the foreign national must appear in
person.30 The failure of a foreign national to appear is grounds for denial. 31
In certain situations, the presumption of control may be rebutted. A person or group of persons who
proposes to own, control, or have the power to vote 10 percent or more of any class of voting securities
and exercise a controlling influence over management or policies of the institution may rebut the
presumption of control by notifying the OFR of the proposal and presenting information rebutting control
at an informal conference.32 If, after the conference, the OFR determines that such person or group of
persons will exercise a controlling influence over the bank, such person or persons will be required to
file an application for change of control.33
Florida law does not currently contemplate the acquisition of a controlling interest without prior
approval.34 However, not every such acquisition is planned. 35 Shares may pass to an unapproved
owner by operation of law, such as by way of inheritance. 36 For example, if a controlling shareholder
dies and their shares pass to an unapproved beneficiary, the unapproved beneficiary commits an
unavoidable, technical violation of statute upon becoming the owner of the shares. 37
Formation and Regulation of Credit Unions
Like banks, credit unions accept deposits and make loans, and can be state-chartered or federally-
chartered:
State-chartered credit unions may be formed under the Florida Credit Union Act (FCUA), which
became law in 1980.38 The FCUA provides that “[a] credit union is a cooperative, nonprofit
association, organized . . . for the purposes of encouraging thrift among its members, creating
sources of credit at fair and reasonable rates of interest, and providing an opportunity for its
members to use and control their resources on a democratic basis in order to improve their
27 S. 658.28(1), F.S.
28 S. 658.28(1)(b), F.S.
29 S. 658.28(1)(c), F.S.
30 S. 120.80(3)(a)4., F.S.
31 Id.
32 Ss. 658.27(2)(c) and 658.28(3), F.S.
33 S. 658.28(3), F.S.
34 OFR, supra note 12.
35 Id.
36 Id.
37 Id.
38 Ch. 80-258, Laws of Fla.; codified at ch. 657, F.S.
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economic and social condition.”39 State-chartered credit unions have both a state regulator, the
OFR, and a federal regulator, the National Credit Union Association (NCUA).
Federally-chartered credit unions are chartered under the Federal Credit Union Act of 193440
and are regulated by the NCUA.
For Florida-chartered credit unions, the executive officers are elected by the board of directors at the
organizational meeting, and new officers may be elected at each annual meeting of the board of
directors.41 The terms of executive officers are one year, or until their successors are chosen and have
been duly qualified.42 Within 30 days after election or appointment, a record of the names and
addresses of the members of the board, members of committees, all officers of the credit union, and
the credit manager must be filed with the OFR on forms prescribed by the Financial Services
Commission (commission).43
Formation and Regulation of Family Trust Companies
A family trust company is a corporation or limited liability company that is exclusively owned by family
members, acts as a fiduciary to serve family members, and generally may not serve as a fiduciary for a
person that is not a family.44 Family trust companies are usually formed to manage the wealth of high
net-worth families in lieu of traditional individual or institutional trustee arrangements for a variety of
personal, investment, regulatory, and tax reasons.
There are three types of family trust companies authorized under Florida law:
Licensed family trust companies: A family trust company may elect to be a licensed family trust
company if the company desires to be subject to the regulatory oversight of the OFR, and it
must file an application for licensure with the OFR.45 With respect to a licensed family trust
company, the OFR is responsible for regulating, supervising, and examining the company.46
Foreign licensed family trust company: A foreign licensed family trust company is licensed by
and has its principal place of business in a state other than Florida, is operated in accordance
with applicable laws of its licensing state, is subject to supervision by the state in which the
principal place of business is located, and is not a subsidiary of a foreign country. 47 A foreign
licensed family trust company must register with the OFR before beginning operations in this
state.48 The OFR’s oversight role is limited to ensuring that fiduciary services provided by the
foreign licensed family trust company are restricted to family members and authorized related
interests and not to the general public.49
Registered family trust company: A family trust company that is not a foreign licensed family
trust company and does not apply to become a licensed family trust company must register with
the OFR before beginning operations in this state.50 The OFR’s oversight role is limited to
ensuring that fiduciary services provided by the registered family trust company are restricted to
family members and authorized related interests and not to the general public.51
39 S. 657.003, F.S.
40 Pub. L. No. 73-467, codified at 12 U.S.C. § 1751 et seq.
41 S. 657.022(1), F.S.
42 S. 657.022(2), F.S.
43 S. 657.028(6), F.S. The commission is composed of the Governor, Attorney General, Chief Financial Officer, and
Commissioner of Agriculture. S. 20.121(3), F.S. The commission members serve as OFR’s agency head for the purpose
of rulemaking. S. 20.121(3)(c), F.S.
44 S. 662.111(12), F.S.
45 Ss. 662.102(2) and 662.121, F.S.
46 S. 662.102(3)(a), F.S.
47 S. 662.111(15)(c), F.S.
48 S. 662.122(2), F.S.
49 S. 662.102(3)(b), F.S.
50 S. 662.122(1), F.S.
51 S. 662.102(3)(b), F.S.
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All three types of family trust companies must maintain a deposit account with a state-chartered or
national financial institution that has a principal or branch office in this state. 52
Within 45 days after the end of each calendar year, all three types of family trust companies are
required to file an annual renewal application.53 Currently, the timing of renewal does not account for
when the initial application was filed. Thus, a family trust company may have to submit a renewal
application shortly after becoming licensed or registered in this state.
Formation and Regulation of International Banking Offices
One type of financial institution regulated by the OFR is an international banking corporation (IBC) that
transacts business in Florida. An IBC is “a banking corporation organized and licensed under the laws
of a foreign country.”54 The OFR does not regulate the IBC, i.e., the home-country depository institution,
itself but rather the offices that the IBC establishes in Florida. Florida’s regulation of IBC offices are
designed to provide for appropriate supervision and regulatory oversight to ensure that financial
services activities of IBCs in this state are conducted responsibly and in a safe and sound manner.55
IBCs may operate in Florida through a variety of business models, which must be licensed by the
OFR56 and include the following:
International representative offices - Permissible activities include:57
o Promoting or assisting the deposit-taking, lending, or other financial or banking activities
of an IBC;
o Serving as a liaison in Florida between an IBC and its existing and potential customers;
o Soliciting business for the IBC and its subsidiaries and affiliates;
o Providing information to customers concerning their accounts;
o Answering questions;
o Receiving applications for extensions of credit and other banking services;
o Transmitting documents on behalf of customers; and
o Making arrangements for customers to transact business on their accounts.
However, a representative office may not conduct any banking or trust business in Florida. 58
International administrative offices - Permissible activities include:59
o Administering personnel and operations;
o Engaging in data processing or recordkeeping activities; and
o Negotiating, approving, or servicing loans or extensions of credit and investments.
Additionally, this type of office may engage in any activities permissible for an international
representative office.60
International bank agencies - Permissible activities include: 61
o Making loans, extensions of credit, or investments;
o Acting as custodian;
o Furnishing investment management and investment advisory services to nonresident
persons whose principal places of business or domicile are outside the United States
and to resident persons with respect to international, foreign, or domestic investments;
o Receiving specified types of deposits; and
o With prior authorization from the OFR, accepting appointments as trustee by nonresident
persons and exercising trust powers with respect to such fiduciary accounts.
Additionally, this type of office may engage in any activities permissible for an international
administrative office or international representative office.62
52 S. 662.1225(1)(d) and (2)(d), F.S.
53 S. 662.128(1), F.S.
54 S. 663.01(6), F.S.
55 S. 663.001(2), F.S.
56 Ss. 663.04 and 663.05, F.S.
57 S. 663.062, F.S.
58 Id.
59 S. 663.063, F.S.
60 S. 663.063(2), F.S.
61 S. 663.061, F.S.; R. 69U-140.008, F.A.C.
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International branches - An international branch has the same rights and privileges as a
federally licensed international branch.63 Additionally, this type of office may engage in any
activities permissible for an international bank agency, international administrative office, or
international representative office.64
If an IBC desires to maintain any of the above offices in this state, the IBC is required to meet minimum
licensure requirements, and its offices in Florida are subject to the examination and enforcement
authority of the OFR. The OFR may not issue a license to an IBC for one of the above offices unless
the IBC: 65
In the case of an international bank agency or branch, holds an unrestricted license to receive
deposits from the general public in the foreign country under the laws of which the IBC is
organized and chartered;
Has been authorized by the foreign country's bank regulatory authority to establish the
proposed international bank office;
Is adequately supervised by the central bank or bank regulatory agency in the foreign country in
which the IBC is organized and chartered; and
Meets minimum capital requirements.
International bank agencies and international branches are required to maintain dollar deposits or
investment securities with one or more banks in this state equal to the greater of:66
$4 million; or
7 percent of the total liabilities of the international bank agency or international branch excluding
accrued expenses and amounts due and other liabilities to affiliated branches, offices, agencies,
or entities.
Formation and Regulation of Florida Offices Performing Services for an International Trust Entity
An international trust entity is an international trust company or organization, or any similar business
entity, or an affiliated or subsidiary entity that is licensed, chartered, or similarly permitted to conduct
trust business in a foreign country or countries under the laws where such entity is organized and
supervised.67 A qualified limited service affiliate is a person or entity that is qualified to perform
specified permissible activities related to or for the benefit of one or more affiliated international trust
entities.68 Such permissible activities include:69
1) Marketing and liaison services related to or for the benefit of the affiliated international trust
entities, directed exclusively at professionals and current or prospective nonresident clients of
an affiliated international trust entity;
2) Advertising and marketing at trade, industry, or professional events;
3) Transmission of documents between the international trust entity and its current or prospective
clients or a designee of such clients; and
4) Transmission of information about the trust or trust holdings of current clients between current
clients or their designees and the international trust entity.
A qualified limited service affiliate is prohibited from engaging in the following activities:70
1) Advertising and marketing related to or for the benefit of the international trust entity which are
directed to the general public;
2) Acting as a fiduciary, including, but not limited to, accepting the fiduciary appointment, executing
the fiduciary documents that create the fiduciary relationship, or making discretionary decisions
regarding the investment or distribution of fiduciary accounts;
62 S. 663.061(1), F.S.
63 S. 663.064(2), F.S.
64 S. 663.064(3), F.S.
65 Ss. 663.05(8) and 663.055(1)-(2), F.S.
66 S. 663.07, F.S.
67 S. 663.530(1)(c), F.S.
68 S. 663.530(1)(f), F.S.
69 S. 663.531(1), F.S.
70 S. 663.531(2), F.S.
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3) Accepting custody of any trust property or any other good, asset, or thing of value on behalf of
the affiliated international trust entity, its subsidiaries or affiliates, or subsidiaries and affiliates of
the qualified limited service affiliate;
4) Soliciting business within this state from the general public related to or for the benefit of an
affiliated international trust entity;
5) Adding a director, an executive officer, a principal shareholder, a manager, a managing
member, or an equivalent position to the qualified limited service affiliate without prior written
notification to the OFR;
6) Commencing services for an international trust entity without complying with applicable
requirements;
7) Providing services for any international trust entity that is in bankruptcy, conservatorship,
receivership, liquidation, or a similar status under the laws of any country; or
8) Otherwise conducting banking or trust business.
In order to qualify as a qualified limited service affiliate, a proposed qualified limited service affiliate
must file a written notice that includes the name under which the proposed qualified limited service
affiliate will conduct business in this state; a copy of the articles of incorporation or articles of
organization, or the equivalent, of the proposed qualified limited service affiliate; the physical address
where the proposed qualified limited service affiliate will conduct business; the mailing address of the
proposed qualified limited service affiliate; the name and biographical information of each director,
executive officer, manager, managing member, or equivalent position of the proposed qualified limited
service affiliate; the number of officers and employees of the proposed qualified limited service affiliate;
a detailed list and description of the activities to be conducted by the proposed qualified limited service
affiliate; background information for certain individuals; information related to each international trust
entity for which the proposed qualified limited service affiliate will provide services; and other
information as the office reasonably requires.71 Additionally, the notice to the OFR must include: 72
A declaration under penalty of perjury signed by the executive officer, manager, or managing
member of the proposed qualified limited service affiliate that, to the best of his or her
knowledge the jurisdiction of the international trust entity or its offices, subsidiaries, or any
affiliates that are directly involved in or facilitate the financial services functions, banking, or
fiduciary activities of the international trust entity is not listed on the Financial Action Task Force
Public Statement or on its list of jurisdictions with deficiencies in anti-money laundering or
counterterrorism.
Proof that the jurisdictions where the international trust entity or its offices, subsidiaries, or any
affiliates that are directly involved in or that facilitate the financial services functions, banking, or
fiduciary activities of the international trust entity are not listed on the Financial Action Task
Force Public Statement or on its list of jurisdictions with deficiencies in anti-money laundering
or counterterrorism.
Under current law, the OFR does not have a means of prohibiting the qualified limited service affiliate
from providing services to an international trust entity in a jurisdiction that is included on the Financial
Action Task Force's list of international jurisdictions that have weak measures to combat money
laundering and terrorist financing.
Examination of Florida Financial Institutions
The OFR is required to conduct an examination of the condition of each state financial institution at
least every 18 months, though the OFR may conduct more frequent examinations based upon the risk
profile of the financial institution, prior examination results, or significant changes in the institution or its
operations.73 For state financial institutions that have a federal regulator, the OFR is permitted to accept
an examination performed by the federal regulator or to conduct a joint or concurrent examination of
the state financial institution with the federal regulator.74 The result is that the OFR may alternate with
71 S. 663.532(1), F.S.
72 Id.
73 S. 655.045(1), F.S.
74 S. 655.045(1)(a), F.S.
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the federal regulator such that, while the state financial institution is examined at least every 18 months,
the OFR itself performs the examination every 36 months.
Such alternating, joint, or concurrent examination reduces regulatory burden on the financial institutions
subject to dual regulation, and the OFR works in coordination with these federal agencies when
possible.75 Many of these federal regulators have policies in place authorizing them to alter examination
schedules based on emergency conditions, for example following a major disaster or emergency.76
Many of the documents which the OFR examiners must analyze are kept in paper files. 77 The lack of
digital copies and the confidential nature of these documents often necessitates that examiners be
physically present in the financial institution to perform the examination. 78 Most recently, the COVID-19
pandemic up-ended examination schedules; however, Florida examiners commonly face obstacles
when attempting to perform in-person examinations during hurricane season, where weather hazards
and property damage create an unsafe environment.79 Unlike the federal regulators, the OFR does not
have a method by which it can delay an examination due to such hazards. 80
After the examination of the state financial institution is complete, a copy of the report of examination
must be furnished to the entity examined and must be presented to the board of directors at its next
meeting.
Acquisition of Assets or Liabilities of a Financial Institution
Current law requires the OFR’s approval for a financial entity to acquire all or substantially all of the
assets of, or assume all or any part of the liabilities of, any other financial institution.81 A mutual
financial institution may not sell all or substantially all of its assets to a stock financial institution until it
has first converted into a capital stock financial institution.82 These provisions of current law have
generated confusion for the industry, as the term “substantially all” is not defined.83 The OFR regularly
receives questions from industry participants regarding the application of these provisions; financial
institutions have asked what percentage meets the threshold of “substantially all,” and how to calculate
that percentage.84
Florida Control of Money Laundering and Terrorist Financing in Financial Institutions Act (Act)
The Act is found within the financial institutions codes in s. 655.50, F.S. The purpose of the Act is to
require the submission to the OFR of certain reports and the maintenance of certain records of
customers, accounts, and transactions involving currency or monetary instruments or suspicious
activities if such reports and records deter using financial institutions to conceal, move, or provide
proceeds obtained from or intended for criminal or terrorist activities and if such reports and records
have a high degree of usefulness in criminal, tax, or regulatory investigations or proceedings. 85 The Act
applies to financial institutions as defined under the federal anti-money laundering laws.86 The federal
definition of “financial institution” is very broad and encompasses entities beyond the scope of those
regulated under the financial institutions codes. For example, the federal definition includes entities not
regulated by the OFR at all, such as a travel agency, a casino, and the United States Postal Service. 87
The federal definition also includes entities which the OFR does regulate but does so under different
chapters of law, not the financial institutions codes, such as a broker or dealer in securities (regulated
75 OFR, supra note 12.
76 Id.
77 Id.
78 Id.
79 Id.
80 Id.
81 S. 655.414, F.S.
82 S. 655.414(6), F.S.
83 OFR, supra note 12.
84 Id.
85 S. 655.50(2), F.S.
86 S. 655.50(3)(c), F.S.; 31 U.S.C. § 5312.
87 31 U.S.C. § 5312(a)(2)(Q), (V), and (X).
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by the OFR under ch. 517, F.S.) and various money services businesses (regulated by the OFR under
ch. 560, F.S.).88 Chapter 560, F.S., relating to money services businesses, contains a statute similar to
the Act.89 Thus, both statutes may be read to apply to these entities, which may generate confusion for
the industry.90
Effect of the Bill
Examinations of Florida Financial Institutions (Section 4)
The bill provides the OFR an additional 90 days to comply with the examination requirement for state
financial institutions if the federal regulator suspends or cancels a previously scheduled examination. In
such case, the requirement is deemed met by the federal agency conducting the examination or upon
the OFR conducting the examination instead.
The bill clarifies language within the requirement that the report of examination be furnished to the
entity examined by replacing the term “entity” with “state financial institution”. Additionally, the bill
requires that each director review the report and acknowledge receipt of the report and such review by
signing and dating the prescribed signature page of the report and returning a copy of the signed page
to the OFR.
Acquisition of Assets or Liabilities of a Financial Institution (Section 5)
The bill amends provisions relating to the acquisition of assets and liabilities such that OFR’s approval
is needed if a financial institution acquires 50 percent or more of the assets of, liabilities of, or a
combination of assets and liabilities of, another financial institution. The bill provides that a mutual
financial institution may not sell 50 percent or more of its assets to a stock financial institution until it
has first converted to a capital stock financial institution. These provisions will no longer include the
ambiguous phrase “substantially all”. The bill also provides that the percentages of assets or liabilities
must be calculated based on the most recent quarterly reporting date.
Florida Control of Money Laundering and Terrorist Financing in Financial Institutions Act (Section 6)
The bill amends the definition of “financial institution” for purposes of the Florida Control of Money
Laundering and Terrorist Financing in Financial Institutions Act by pointing to the definition of “financial
institution in s. 655.001, F.S., and removing OFR-regulated entities whose permissible activities do not
involve monetary transactions.
Credit Union Reporting of Elected or Appointed Officers, Directors, Etc. (Sections 7 and 8)
The bill relocates and clarifies a provision relating to a credit union’s reporting of names and addresses
of newly elected or appointed officers, directors, etc. Specifically, the bill provides that, within the 30
days following the annual meeting or any other meeting at which any director, officer, member of the
supervisory or audit committee, member of the credit committee, or credit manager is elected or
appointed, the credit union must submit to the OFR the names and residence addresses of the elected
or appointed person or persons on a form adopted by the commission and provided by the OFR.
Target Market (Sections 9, 10, and 11)
The bill introduces the concept of a “target market” for a proposed state bank or trust company and
defines “target market” as the group of clients or potential clients from whom:
(a) A bank or proposed bank expects to draw deposits and to whom the bank or proposed bank
focuses or intends to focus its marketing efforts; or
88 31 U.S.C. § 5312(a)(2)(H), (J), (K), (R).
89 S. 560.123,F.S.
90 OFR, supra note 12.
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(b) A trust company, a trust department of a bank or association, a proposed trust company, or a
proposed trust department of a bank or association expects to draw its fiduciary accounts and
to whom the trust company, the trust department of a bank or association, the proposed trust
company, or the proposed trust department of a bank or association focuses or intends to
focus its marketing efforts.
In addition to the considerations under current law that are based largely on a geographic location, the
bill allows the OFR to evaluate the following considerations with regard to approving an application for a
new state bank or trust company:
The need for the target market that the proposed state bank or trust company intends to
engage with in business;
The ability of the target market to support the proposed state bank or trust company and all
other existing bank or trust facilities that serve the same target market; and
Whether the target market conditions indicate reasonable promise of successful operations for
the proposed state bank or trust company.
Proposed President or Chief Executive Officer of a New State-Chartered Bank or Trust
Company(Section 11)
The bill allows the OFR to waive the experience requirement for a proposed president or CEO of a new
state bank or trust company after considering:
1) The adequacy of the overall experience and expertise of the proposed president or chief
executive officer;
2) The likelihood of successful operation of the proposed state bank or trust company;
3) The adequacy of the proposed capitalization;
4) The proposed capital structure;
5) The experience of the other proposed officers and directors; and
6) Any other relevant data or information.
Amending this requirement will allow organizers of new state banks the ability to attract higher quality
president or CEO candidates and, therefore, make new bank formations more feasible in today’s
competitive business environment.91
Acquisition of Control of a Florida-Chartered Bank or Trust Company (Sections 1 and 12)
When a hearing is required regarding a foreign national’s proposal to own or control 10 percent or more
of a class of voting securities of a new state bank or trust company, or on a foreign national’s proposal
to acquire a controlling interest in an existing state bank or trust company, the bill permits the foreign
national to participate through video conferencing in lieu of appearing in person.
The bill provides a process for seeking approval to own a controlling interest in a financial institution in
the event of inheritance of such controlling interest. If a person or a group of persons, directly or
indirectly, acquires a controlling interest in a state bank or state trust company, through probate or trust,
the person or group of persons must notify the OFR within 90 days after acquiring such an interest.
Such an interest does not give rise to a presumption of control until the person or group of persons
votes the shares or the OFR has issued a certificate of approval in response to an application for
change in control.
Interstate Bank Branching by State-Chartered Banks (Section 13)
The bill defines “de novo branch” for purposes of Florida law regarding interstate bank branching by
Florida-chartered banks and banks chartered by other states. The definition is based on the definition
for “de novo branch” within FDIC regulations.
91 OFR, supra note 12.
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The bill amends the catchline of a subsection of the statute in order to clarify application of the
subsection. The subsection relates to interstate bank branching by both Florida-chartered banks and
banks chartered by other states. The catchline currently uses the term “state bank”, which is defined to
mean a Florida-chartered bank; the term does not capture banks chartered by other states.
Family Trust Companies (Sections 14 and 15)
The bill expands the banking options of a registered family trust company and a licensed family trust
company by allowing these entities to maintain a deposit account at an insured bank or credit union
located anywhere in the United States, regardless of whether the bank or credit union has a principal
office or branch in Florida.
The bill amends the deadline for a family trust company to file an annual renewal such that the renewal
application is due no later than 45 days after the anniversary of the filing of either the initial application
or the prior year’s renewal application.
Location of an International Bank Agency’s or International Branch’s Required Minimum Assets
(Section 16)
The bill expands the banking options for an international bank agency or an international branch
regarding the location of required minimum dollar deposits or investment securities. The bill permits
these entities to maintain the required assets in an insured bank located anywhere in the United States,
not just those banks that are located in Florida.
Qualified Limited Service Affiliates (Section 17)
The bill updates two references to the name of a list of international jurisdictions that have weak
measures to combat money laundering and terrorist financing. The bill also requires a qualified limited
service affiliate to suspend its activities relating to an international trust entity in a jurisdiction on that
list. Such a suspension must remain in effect until the jurisdiction is removed from the list.
Conforming Changes (Sections 2, 3, 18)
The bill conforms cross-references to reflect amendments to the definitions in s. 658.12, F.S.
Reenactment (Section 19)
The bill reenacts s. 658.165, F.S., for the purpose of incorporating the amendment made by the bill to
s. 658.20, F.S.
Effective Date (Section 20)
The bill provides an effective date of July 1, 2022.
B. SECTION DIRECTORY:
Section 1. Amends s. 120.80, F.S., relating to exceptions and special requirements; agencies.
Section 2. Amends s. 475.01, F.S., relating to definitions.
Section 3. Amends s. 518.117, F.S., relating to permissible investments of fiduciary funds.
Section 4. Amends s. 655.045, F.S., relating to examinations, reports, and internal audits; penalty.
Section 5. Amends s. 655.414, F.S., relating to acquisition of assets; assumption of liabilities.
Section 6. Amends s. 655.50, F.S., relating to Florida Control of Money Laundering and Terrorist
Financing in Financial Institutions Act.
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Section 7. Amends s. 657.021, F.S., relating to board of directors; executive committee.
Section 8. Amends s. 657.028, F.S., relating to activities of directors, officers, committee members,
employees, and agents.
Section 9. Amends s. 658.12, F.S., relating to definitions.
Section 10. Amends s. 658.20, F.S., relating to investigation by office.
Section 11. Amends s. 658.21, F.S., relating to approval of application; findings required.
Section 12. Amends s. 658.28, F.S., relating to acquisition of control of a bank or trust company.
Section 13. Amends s. 658.2953, F.S., relating to interstate branching.
Section 14. Amends s. 662.1225, F.S., relating to Requirements for a family trust company, licensed
family trust company, or foreign licensed family trust company.
Section 15. Amends s. 662.128, F.S., relating to annual renewal.
Section 16. Amends s. 663.07, F.S., relating to asset maintenance or capital equivalency.
Section 17. Amends s. 663.532, F.S., relating to qualification.
Section 18. Amends s. 736.0802, F.S., relating to duty of loyalty.
Section 19. Reenacts s. 658.165, F.S., relating to banker's banks; formation; applicability of financial
institutions codes; exceptions.
Section 20. Provides an effective date of July 1, 2022.
II. FISCAL ANALYSIS & ECONOMIC IMPACT STATEMENT
A. FISCAL IMPACT ON STATE GOVERNMENT:
1. Revenues:
See Fiscal Comments.
2. Expenditures:
See Fiscal Comments.
B. FISCAL IMPACT ON LOCAL GOVERNMENTS:
1. Revenues:
None.
2. Expenditures:
None.
C. DIRECT ECONOMIC IMPACT ON PRIVATE SECTOR:
The bill may encourage and attract the formation of new financial institutions as Florida-chartered
institutions, in which case the bill would have a positive impact on investment, employment, economic
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growth, and consumer access to financial services. However, the impact to the private sector is
indeterminate.
D. FISCAL COMMENTS:
The bill may encourage and attract the formation of new financial institutions as Florida-chartered
institutions, in which case the OFR’s revenues would be positively affected through increased
application fees and annual assessments. OFR’s expenditures would also increase for the cost of
regulation and oversight of such new institutions. However, the overall fiscal impact is indeterminate.
III. COMMENTS
A. CONSTITUTIONAL ISSUES:
1. Applicability of Municipality/County Mandates Provision:
Not Applicable. This bill does not appear to affect county or municipal governments.
2. Other:
None.
B. RULE-MAKING AUTHORITY:
Section 7 requires the commission to adopt a form for a credit union to report to OFR the names and
residence addresses of persons elected or appointed at the credit union’s annual meeting.
C. DRAFTING ISSUES OR OTHER COMMENTS:
Section 14 of the bill expands the banking options of a registered family trust company and a licensed
family trust company but does not do so for a foreign licensed family trust company. The sponsor has
indicated an intent to address this issue.
IV. AMENDMENTS/COMMITTEE SUBSTITUTE CHANGES
On January 19, 2022, the Insurance & Banking Subcommittee considered a proposed committee substitute
and reported the bill favorably as a committee substitute. The committee substitute differs from HB 431 in
the following ways:
Aligns the House bill with the Senate bill by narrowing the scope of the bill to include only provisions
relating to financial institutions.
Amends the bill’s title to reflect the narrower scope of the bill.
Clarifies how the OFR’s examination requirement for a financial institution is met in the event that a
financial institution’s federal regulator suspends or cancels a previously scheduled examination of
the financial institution.
Requires a financial institution’s directors to acknowledge their review, not just receipt, of a report of
examination.
Clarifies provisions relating to a financial institution’s acquisition of another financial institution’s
assets or liabilities.
Allows the OFR to waive the experience requirement for a proposed president or CEO of a new
bank or trust company pursuant to specified considerations about the person and the proposed
institution.
Clarifies the definition of “de novo branch” in the context of interstate bank branching by state-
chartered banks.
Reenacts s. 658.165(1), F.S.
Changes the bill’s effective date from October 1, 2022, to July 1, 2022.
Removes the appropriation and makes other technical changes.
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The staff analysis has been updated to reflect the committee substitute.
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F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
CS/HB 431 2022
1 A bill to be entitled
2 An act relating to financial institutions; amending s.
3 120.80, F.S.; providing that the failure of foreign
4 nationals to participate through video conference in
5 certain hearings is grounds for denial of certain
6 applications; amending s. 475.01, F.S.; conforming a
7 cross-reference; amending s. 518.117, F.S.; conforming
8 a cross-reference; amending s. 655.045, F.S.; revising
9 the circumstances under which the Office of Financial
10 Regulation is required to conduct certain
11 examinations; authorizing the office to delay
12 examinations of state financial institutions under
13 certain circumstances; specifying that examination
14 requirements are deemed met under certain
15 circumstances; requiring copies of certain examination
16 reports to be furnished to state financial
17 institutions; requiring certain directors to review
18 such reports and acknowledge receipt of such reports
19 and reviews; amending s. 655.414, F.S.; revising the
20 entities that may acquire liabilities and assets, and
21 the liabilities and assets that may be acquired,
22 according to certain procedures, conditions, and
23 limitations; specifying the basis for calculating
24 percentages of assets or liabilities; specifying the
25 basis for calculating percentages of assets or
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26 liabilities; revising the quantity of assets a mutual
27 financial institution may not sell to a stock
28 financial institution, subject to certain conditions;
29 amending s. 655.50, F.S.; revising the definition of
30 the term "financial institution"; amending s. 657.021,
31 F.S.; requiring credit unions to submit specified
32 information to the office within a specified timeframe
33 after certain meetings; amending s. 657.028, F.S.;
34 deleting a provision relating to filing specified
35 credit union information with the office; amending s.
36 658.12, F.S.; defining the term "target market";
37 amending s. 658.20, F.S.; requiring the office, upon
38 receiving applications for authority to organize a
39 bank or trust company, to investigate the need for a
40 target market and the ability of the primary service
41 area or target market to support proposed and exis ting
42 bank or trust facilities; amending s. 658.21, F.S.;
43 revising financial institution application approval
44 requirements to include consideration of target market
45 conditions; authorizing the office to waive a
46 requirement that certain proposed financial
47 institution presidents or chief executive officers
48 have certain experience within a specified timeframe
49 under certain circumstances; amending s. 658.28, F.S.;
50 requiring a person or group to notify the office
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51 within a specified timeframe upon acquiring a
52 controlling interest in a state bank or state trust
53 company; amending s. 658.2953, F.S.; defining the term
54 "de novo branch"; amending s. 662.1225, F.S.; revising
55 the type of institution with which certain family
56 trust companies are required to maintain a deposit
57 account; amending s. 662.128, F.S.; revising the
58 timeframe for filing renewal applications for certain
59 family trust companies; amending s. 663.07, F.S.;
60 revising the banks with which international bank
61 agencies and international branches are required to
62 maintain certain deposits or investment securities;
63 amending s. 663.532, F.S.; revising references to
64 lists of jurisdictions used for qualifying qualified
65 limited service affiliates; requiring qualified
66 limited service affiliates to suspend certain
67 permissible activities under certain circumstances;
68 specifying that such suspensions remain in effect
69 until certain conditions are met; amending s.
70 736.0802, F.S.; conforming a cross-reference;
71 reenacting s. 658.165(1), F.S., relating to banker's
72 banks, for the purpose of incorporating amendments
73 made by the act; providing an effective date.
74
75 Be It Enacted by the Legislature of the State of Florida:
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76
77 Section 1. Paragraph (a) of subsection (3) of section
78 120.80, Florida Statutes, is amended to read:
79 120.80 Exceptions and special requirements; agencies.—
80 (3) OFFICE OF FINANCIAL REGULATION.—
81 (a) Notwithstanding s. 120.60(1), in proceedings for the
82 issuance, denial, renewal, or amendment of a license or approval
83 of a merger pursuant to title XXXVIII:
84 1.a. The Office of Financial Regulation of the Financial
85 Services Commission shall have published in the Florida
86 Administrative Register notice of the application within 21 days
87 after receipt.
88 b. Within 21 days after publication of notice, any person
89 may request a hearing. Failure to request a hearing within 21
90 days after notice constitutes a waiver of any right to a
91 hearing. The Office of Financial Regulation or an applicant may
92 request a hearing at any time prior to the issuance of a final
93 order. Hearings shall be conducted pursuant to ss. 120.569 and
94 120.57, except that the Financial Services Commission shall by
95 rule provide for participation by the general public.
96 2. Should a hearing be requested as provided by sub-
97 subparagraph 1.b., the applicant or licensee shall publish at
98 its own cost a notice of the hearing in a newspaper of general
99 circulation in the area affected by the application. The
100 Financial Services Commission may by rule specify the format and
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101 size of the notice.
102 3. Notwithstanding s. 120.60(1), and except as provided in
103 subparagraph 4., an application for license for a new bank, new
104 trust company, new credit union, new savings and loan
105 association, or new licensed family trust company must be
106 approved or denied within 180 days after receipt of the original
107 application or receipt of the timely requested additional
108 information or correction of errors or omissions. An application
109 for such a license or for acquisition of such control which is
110 not approved or denied within the 180-day period or within 30
111 days after conclusion of a public hearing on the application,
112 whichever is later, shall be deemed approved subject to the
113 satisfactory completion of conditions required by statute as a
114 prerequisite to license and approval of insurance of accou nts
115 for a new bank, a new savings and loan association, a new credit
116 union, or a new licensed family trust company by the appropriate
117 insurer.
118 4. In the case of an application for license to establish
119 a new bank, trust company, or capital stock savings a ssociation
120 in which a foreign national proposes to own or control 10
121 percent or more of any class of voting securities, and in the
122 case of an application by a foreign national for approval to
123 acquire control of a bank, trust company, or capital stock
124 savings association, the Office of Financial Regulation shall
125 request that a public hearing be conducted pursuant to ss.
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126 120.569 and 120.57. Notice of such hearing shall be published by
127 the applicant as provided in subparagraph 2. The failure of such
128 foreign national to appear personally at or to participate
129 through video conference in the hearing shall be grounds for
130 denial of the application. Notwithstanding s. 120.60(1) and
131 subparagraph 3., every application involving a foreign national
132 shall be approved or denied within 1 year after receipt of the
133 original application or any timely requested additional
134 information or the correction of any errors or omissions, or
135 within 30 days after the conclusion of the public hearing on the
136 application, whichever is later.
137 Section 2. Subsection (4) of section 475.01, Florida
138 Statutes, is amended to read:
139 475.01 Definitions.—
140 (4) A broker acting as a trustee of a trust created under
141 chapter 689 is subject to the provisions of this chapter unless
142 the trustee is a bank, state or federal association, or trust
143 company possessing trust powers as defined in s. 658.12 s.
144 658.12(23).
145 Section 3. Section 518.117, Florida Statutes, is amended
146 to read:
147 518.117 Permissible investments of fiduciary funds.—A
148 fiduciary that is authorized by lawful authority to engage in
149 trust business as defined in s. 658.12 s. 658.12(20) may invest
150 fiduciary funds in accordance with s. 660.417 so long as the
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151 investment otherwise complies with this chapter.
152 Section 4. Paragraph (a) of subsection (1) and subsection
153 (4) of section 655.045, Florida Statutes, are amended, and
154 paragraph (f) is added to subsection (1) of that section, to
155 read:
156 655.045 Examinations, reports, and internal audits;
157 penalty.—
158 (1) The office shall conduct an examination of the
159 condition of each state financial institution at least every 18
160 months. The office may conduct more frequent examinations based
161 upon the risk profile of the financial institution, prior
162 examination results, or significant changes in the institution
163 or its operations. The office may use continuous, phase, or
164 other flexible scheduling examination methods for very large or
165 complex state financial institutions and financial inst itutions
166 owned or controlled by a multi-financial institution holding
167 company. The office shall consider examination guidelines from
168 federal regulatory agencies in order to facilitate, coordinate,
169 and standardize examination processes.
170 (a) The office may accept an examination of a state
171 financial institution made by an appropriate federal regulatory
172 agency or may conduct a joint or concurrent examination of the
173 institution with the federal agency. However, if the office
174 accepts an examination in accordance with this paragraph, the
175 office shall conduct at least once during each 36-month period
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176 beginning July 1, 2023 2014, a subsequent the office shall
177 conduct an examination of each state financial institution in a
178 manner that allows the preparation of a complete examination
179 report not subject to the right of a federal or other non-
180 Florida entity to limit access to the information contained
181 therein. The office may furnish a copy of all examinations or
182 reviews made of financial institutions or their affiliates to
183 the state or federal agencies participating in the examination,
184 investigation, or review, or as otherwise authorized under s.
185 655.057.
186 (f) In coordinating an examination required under this
187 section, if a federal agency suspends or cancels a previousl y
188 scheduled examination of a state financial institution, the
189 office has an additional 90 days to meet the examination
190 requirement of this section. In such case, the requirement is
191 deemed met by the federal agency conducting the examination or
192 upon the office conducting the examination instead.
193 (4) A copy of the report of each examination must be
194 furnished to the state financial institution entity examined and
195 presented to the board of directors at its next regular or
196 special meeting. Each director shall review the report and
197 acknowledge receipt of the report and such review by signing and
198 dating the prescribed signature page of the report and returning
199 a copy of the signed page to the office.
200 Section 5. Section 655.414, Florida Statutes, is amended
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201 to read:
202 655.414 Acquisition of assets; assumption of liabilities. —
203 With prior approval of the office, and upon such conditions as
204 the commission prescribes by rule, a financial institution
205 entity may acquire 50 percent or more all or substantially all
206 of the assets of, liabilities of, or a combination of assets and
207 or assume all or any part of the liabilities of, any other
208 financial institution in accordance with the procedures and
209 subject to the following conditions and limitations:
210 (1) CALCULATION OF ASSET OR LIABILITY PERCENTAGES.—
211 Percentages of assets or liabilities must be calculated based on
212 the most recent quarterly reporting date.
213 (2) ADOPTION OF A PLAN.—The board of directors of the
214 acquiring or assuming financial entity and the board of
215 directors of the transferring financial institution must adopt,
216 by a majority vote, a plan for such acquisition, assumption, or
217 sale on terms that are mutually agreed upon. The plan must
218 include:
219 (a) The names and types of financial institutions
220 involved.
221 (b) A statement setting forth the material terms of the
222 proposed acquisition, assumption, or sale, including the plan
223 for disposition of all assets and liabilities not subject to the
224 plan.
225 (c) A provision for liquidation, if applicable, of the
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226 transferring financial institution upon execution of the plan,
227 or a provision setting forth the business plan for the continued
228 operation of each financial institution after the execution of
229 the plan.
230 (d) A statement that the entire transaction is subject to
231 written approval of the office and approval of the members or
232 stockholders of the transferring financial institution.
233 (e) If a stock financial institution is the transferring
234 financial institution and the proposed sale is not for cash, a
235 clear and concise statement that dissenting stockholders of the
236 institution are entitled to the rights set forth in s. 658.44(4)
237 and (5).
238 (f) The proposed effective date of the acquisition,
239 assumption, or sale and such other information and provisions as
240 necessary to execute the transaction or as required by the
241 office.
242 (3)(2) APPROVAL OF OFFICE.—Following approval by the board
243 of directors of each participating financial institution, the
244 plan, together with certified copies of the authorizing
245 resolutions adopted by the boards and a completed application
246 with a nonrefundable filing fee, must be forwarded to the office
247 for approval or disapproval. The office shall approve the plan
248 of acquisition, assumption, or sale if it appears that:
249 (a) The resulting financial entity or entities would have
250 an adequate capital structure in relation to their activities
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251 and their deposit liabilities;
252 (b) The plan is fair to all parties; and
253 (c) The plan is not contrary to the public interest.
254
255 If the office disapproves the plan, it shall state its
256 objections and give the parties an opportunity to amend the plan
257 to overcome such objections.
258 (4)(3) VOTE OF MEMBERS OR STOCKHOLDERS.—If the office
259 approves the plan, it may be submitted to the members or
260 stockholders of the transferring financial institution at an
261 annual meeting or at a special meeting called to consider such
262 action. Upon a majority vote of the total number of votes
263 eligible to be cast or, in the case of a credit union, a
264 majority vote of the members present at the meeting, the p lan is
265 adopted.
266 (5)(4) ADOPTED PLAN; CERTIFICATE; ABANDONMENT.—
267 (a) If the plan is adopted by the members or stockholders
268 of the transferring financial institution, the president or vice
269 president and the cashier, manager, or corporate secretary of
270 such institution shall submit the adopted plan to the office,
271 together with a certified copy of the resolution of the members
272 or stockholders approving it.
273 (b) Upon receipt of the certified copies and evidence that
274 the participating financial institutions have complied with all
275 applicable state and federal law and rules, the office shall
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276 certify, in writing, to the participants that the plan has been
277 approved.
278 (c) Notwithstanding approval of the members or
279 stockholders or certification by the office, the board of
280 directors of the transferring financial institution may abandon
281 such a transaction without further action or approval by the
282 members or stockholders, subject to the rights of third parties
283 under any contracts relating thereto.
284 (6)(5) FEDERALLY CHARTERED OR OUT-OF-STATE INSTITUTION AS
285 A PARTICIPANT.—If one of the participants in a transaction under
286 this section is a federally chartered financial institution or
287 an out-of-state financial institution, all participants must
288 also comply with requirements imposed by federal and other state
289 law for the acquisition, assumption, or sale and provide
290 evidence of such compliance to the office as a condition
291 precedent to the issuance of a certificate authorizing the
292 transaction; however, if the purchasing or assuming financial
293 institution is a federal or out-of-state state-chartered
294 financial institution and the transferring state financial
295 entity will be liquidated, approval of the office is not
296 required.
297 (7)(6) STOCK INSTITUTION ACQUIRING MUTUAL INSTITUTION.—A
298 mutual financial institution may not sell 50 percent or more all
299 or substantially all of its assets to a stock financial
300 institution until it has first converted into a capital stock
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301 financial institution in accordance with s. 665.033(1) and (2).
302 For this purpose, references in s. 665.033(1) and (2) to
303 associations also refer to credit unions but, in the case of a
304 credit union, the provision concerning proxy statements does not
305 apply.
306 Section 6. Paragraph (c) of subsection (3) of section
307 655.50, Florida Statutes, is amended to read:
308 655.50 Florida Control of Money Laundering and Terrorist
309 Financing in Financial Institutions Act.—
310 (3) As used in this section, the term:
311 (c) "Financial institution" has the same meaning as in s.
312 655.005(1)(i), excluding an international representative office,
313 an international administrative office, or a qualified limited
314 service affiliate means a financial institution, as defined in
315 31 U.S.C. s. 5312, as amended, including a credit card bank,
316 located in this state.
317 Section 7. Present subsections (2) through (8) of section
318 657.021, Florida Statutes, are redesignated as subsections (3)
319 through (9), respectively, and a new subsection (2) is added to
320 that section, to read:
321 657.021 Board of directors; executive committee
322 responsibilities; oaths; reports to the office.—
323 (2) Within the 30 days following the annual meeting or any
324 other meeting at which any director, officer, member of the
325 supervisory or audit committee, member of the credit committee,
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326 or credit manager is elected or appointed, the credit union
327 shall submit to the office the names and residence addresses of
328 the elected or appointed persons on a form adopted by the
329 commission and provided by the office.
330 Section 8. Subsection (6) of section 657.028, Florida
331 Statutes, is amended to read:
332 657.028 Activities of directors, officers, committee
333 members, employees, and agents.—
334 (6) Within 30 days after election or appointment, a record
335 of the names and addresses of the members of the board, me mbers
336 of committees, all officers of the credit union, and the credit
337 manager shall be filed with the office on forms prescribed by
338 the commission.
339 Section 9. Present subsections (20) through (24) of
340 section 658.12, Florida Statutes, are redesignated as
341 subsections (21) through (25), respectively, and a new
342 subsection (20) is added to that section, to read:
343 658.12 Definitions.—Subject to other definitions contained
344 in the financial institutions codes and unless the context
345 otherwise requires:
346 (20) "Target market" means the group of clients or
347 potential clients from whom:
348 (a) A bank or proposed bank expects to draw deposits and
349 to whom the bank or proposed bank focuses or intends to focus
350 its marketing efforts; or
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351 (b) A trust company, a trust department of a bank or
352 association, a proposed trust company, or a proposed trust
353 department of a bank or association expects to draw its
354 fiduciary accounts and to whom the trust company, the trust
355 department of a bank or association, the proposed trust compa ny,
356 or the proposed trust department of a bank or association
357 focuses or intends to focus its marketing efforts.
358 Section 10. Paragraphs (b) and (c) of subsection (1) of
359 section 658.20, Florida Statutes, are amended to read:
360 658.20 Investigation by office.—
361 (1) Upon the filing of an application, the office shall
362 make an investigation of:
363 (b) The need for bank or trust facilities or additional
364 bank or trust facilities, as the case may be, in the primary
365 service area where the proposed bank or trust company is to be
366 located or the need for the target market that the bank or trust
367 company intends to engage with in business.
368 (c) The ability of the primary service area or target
369 market to support the proposed bank or trust company and all
370 other existing bank or trust facilities that serve the same
371 primary service area or target market in the primary service
372 area.
373 Section 11. Subsections (1) and (4) of section 658.21,
374 Florida Statutes, are amended to read:
375 658.21 Approval of application; findings required.—The
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376 office shall approve the application if it finds that:
377 (1) Local and target market conditions indicate reasonable
378 promise of successful operation for the proposed state bank or
379 trust company. In determining whether an applicant meets the
380 requirements of this subsection, the office shall consider all
381 materially relevant factors, including:
382 (a) The purpose, objectives, and business philosophy of
383 the proposed state bank or trust company.
384 (b) The projected financial performance of the propose d
385 bank or trust company.
386 (c) The feasibility of the proposed bank or trust company,
387 as stated in the business plan, particularly with respect to
388 asset and liability growth and management.
389 (4)(a) The proposed officers have sufficient financial
390 institution experience, ability, standing, and reputation and
391 the proposed directors have sufficient business experience,
392 ability, standing, and reputation to indicate reasonable promise
393 of successful operation, and none of the proposed officers or
394 directors has been convicted of, or pled guilty or nolo
395 contendere to, any violation of s. 655.50, relating to the
396 control of money laundering and terrorist financing; chapter
397 896, relating to offenses related to financial institutions; or
398 similar state or federal law.
399 (b) At least two of the proposed directors who are not
400 also proposed officers must have had at least 1 year of direct
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401 experience as an executive officer, regulator, or director of a
402 financial institution within the 5 years before the date of the
403 application. However, if the applicant demonstrates that at
404 least one of the proposed directors has very substantial
405 experience as an executive officer, director, or regulator of a
406 financial institution more than 5 years before the date of the
407 application, the office may modify the requirement and allow the
408 applicant to have only one director who has direct financial
409 institution experience within the last 5 years.
410 (c) The proposed president or chief executive officer must
411 have had at least 1 year of direct experience as an executive
412 officer, director, or regulator of a financial institution
413 within the last 5 years. The office may waive this requirement
414 after considering:
415 1. The adequacy of the overall experience and expertise of
416 the proposed president or chief executive officer;
417 2. The likelihood of successful operation of the proposed
418 state bank or trust company pursuant to subsection (1);
419 3. The adequacy of the proposed capitalization under
420 subsection (2);
421 4. The proposed capital structure under subsection (3);
422 5. The experience of the other proposed officers and
423 directors; and
424 6. Any other relevant data or information.
425 Section 12. Present subsections (2), (3), and (4) of
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426 section 658.28, Florida Statutes, are redesignated as
427 subsections (3), (4), and (5), respectively, and a new
428 subsection (2) is added to that section, to read:
429 658.28 Acquisition of control of a bank or trust company. —
430 (2) If a person or a group of persons, directly or
431 indirectly, acquires a controlling interest in a state bank o r
432 state trust company, as contemplated by this section, through
433 probate or trust, the person or group of persons shall notify
434 the office within 90 days after acquiring such an interest. Such
435 an interest does not give rise to a presumption of control until
436 the person or group of persons votes the shares or the office
437 has issued a certificate of approval in response to an
438 application pursuant to subsection (1).
439 Section 13. Present paragraphs (a), (b), and (c) of
440 subsection (11) of section 658.2953, Florida Statutes, are
441 redesignated as paragraphs (b), (c), and (d), respectively, and
442 a new paragraph (a) is added to that subsection, to read:
443 658.2953 Interstate branching.—
444 (11) DE NOVO INTERSTATE BRANCHING BY STATE BANKS.—
445 (a) As used in this subsection, the term "de novo branch"
446 means a branch of a bank which is originally established by the
447 bank as a branch and does not become a branch of such bank as a
448 result of:
449 1. The bank's acquisition of another bank or of a branch
450 of another bank; or
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451 2. The conversion, merger, or consolidation of any bank or
452 branch.
453 Section 14. Paragraph (d) of subsection (1) of section
454 662.1225, Florida Statutes, is amended to read:
455 662.1225 Requirements for a family trust company, licensed
456 family trust company, or foreign licensed family trust company.—
457 (1) A family trust company or a licensed family trust
458 company shall maintain:
459 (d) A deposit account with:
460 1. A bank located in the United States and insured by the
461 Federal Deposit Insurance Corporation; or
462 2. A credit union located in the United States and insured
463 by the National Credit Union Administration with a state-
464 chartered or national financial institution that has a principal
465 or branch office in this state.
466 Section 15. Subsection (1) of section 662.128, Florida
467 Statutes, is amended to read:
468 662.128 Annual renewal.—
469 (1) Within 45 days after the end of each calendar year, A
470 family trust company, licensed family trust company, or foreign
471 licensed family trust company shall file an its annual renewal
472 application with the office on an annual basis no later than 45
473 days after the anniversary of the filing of either the initial
474 application or the prior year's renewal application .
475 Section 16. Subsection (1) of section 663.07, Florida
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476 Statutes, is amended to read:
477 663.07 Asset maintenance or capital equivalency.—
478 (1) Each international bank agency and international
479 branch shall:
480 (a) Maintain with one or more banks insured by the Federal
481 Deposit Insurance Corporation and located within the United
482 States in this state, in such amounts as the office specifies,
483 evidence of dollar deposits or investment securities of the type
484 that may be held by a state bank for its own account pursuant to
485 s. 658.67. The aggregate amount of dollar deposits and
486 investment securities for an international bank agency or
487 international branch shall, at a minimum, equal the greater of:
488 1. Four million dollars; or
489 2. Seven percent of the total liabilities of the
490 international bank agency or international branch excluding
491 accrued expenses and amounts due and other liabilities to
492 affiliated branches, offices, agencies, or entities; or
493 (b) Maintain other appropriate reserves, taking into
494 consideration the nature of the business being conducted by the
495 international bank agency or international branch.
496
497 The commission shall prescribe, by rule, the deposit,
498 safekeeping, pledge, withdrawal, recordkeeping, and other
499 arrangements for funds and securities maintained under this
500 subsection. The deposits and securities used to satisfy the
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501 capital equivalency requirements of this subsection shall be
502 held, to the extent feasible, in one or more state or national
503 banks located in this state or in a federal reserve bank.
504 Section 17. Present subsections (4), (5), and (6) of
505 section 663.532, Florida Statutes, are redesignated as
506 subsections (5), (6), and (7), respectively, paragraphs (i) and
507 (j) of subsection (1) are amended, and a new subsection (4) is
508 added to that section, to read:
509 663.532 Qualification.—
510 (1) To qualify as a qualified limited service affiliate
511 under this part, a proposed qualified limited service affiliate
512 must file a written notice with the office, in the manner and on
513 a form prescribed by the commission. Such written notice must
514 include:
515 (i) A declaration under penalty of perjury signed by the
516 executive officer, manager, or managing member of the proposed
517 qualified limited service affiliate that, to the best of his or
518 her knowledge:
519 1. No employee, representative, or agent provides, or will
520 provide, banking services; promotes or sells, or will promote or
521 sell, investments; or accepts, or will accept, custody of
522 assets.
523 2. No employee, representative, or agent acts, or will
524 act, as a fiduciary in this state, which includes, but is not
525 limited to, accepting the fiduciary appointment, executing the
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526 fiduciary documents that create the fiduciary relationship, or
527 making discretionary decisions regarding the investment or
528 distribution of fiduciary accounts.
529 3. The jurisdiction of the international trust entity o r
530 its offices, subsidiaries, or any affiliates that are directly
531 involved in or facilitate the financial services functions,
532 banking, or fiduciary activities of the international trust
533 entity is not listed on the Financial Action Task Force's list
534 of High-Risk Jurisdictions subject to a Call for Action or list
535 of Jurisdictions under Increased Monitoring Force Public
536 Statement or on its list of jurisdictions with deficiencies in
537 anti-money laundering or counterterrorism.
538 (j) For each international trust entity that the proposed
539 qualified limited service affiliate will provide services for in
540 this state, the following:
541 1. The name of the international trust entity;
542 2. A list of the current officers and directors of the
543 international trust entity;
544 3. Any country where the international trust entity is
545 organized or authorized to do business;
546 4. The name of the home-country regulator;
547 5. Proof that the international trust entity has been
548 authorized by charter, license, or similar authorization by its
549 home-country regulator to engage in trust business;
550 6. Proof that the international trust entity lawfully
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551 exists and is in good standing under the laws of the
552 jurisdiction where it is chartered, licensed, or organized;
553 7. A statement that the international trust entity is not
554 in bankruptcy, conservatorship, receivership, liquidation, or in
555 a similar status under the laws of any country;
556 8. Proof that the international trust entity is not
557 operating under the direct control of the government or the
558 regulatory or supervisory authority of the jurisdiction of its
559 incorporation, through government intervention or any other
560 extraordinary actions, and confirmation that it has not been in
561 such a status or under such control at any time within the prior
562 3 years;
563 9. Proof and confirmation that the proposed qualified
564 limited service affiliate is affiliated with the international
565 trust entities provided in the notice; and
566 10. Proof that the jurisdictions where the international
567 trust entity or its offices, subsidiaries, or any affiliates
568 that are directly involved in or that facilitate the financial
569 services functions, banking, or fiduciary activities of the
570 international trust entity are not listed on the Financial
571 Action Task Force's list of High-Risk Jurisdictions subject to a
572 Call for Action or list of Jurisdictions under Increased
573 Monitoring Force Public Statement or on its list of
574 jurisdictions with deficiencies in anti-money laundering or
575 counterterrorism.
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576
577 The proposed qualified limited service affiliate ma y provide
578 additional information in the form of exhibits when attempting
579 to satisfy any of the qualification requirements. All
580 information that the proposed qualified limited service
581 affiliate desires to present to support the written notice must
582 be submitted with the notice.
583 (4) The qualified limited service affiliate shall suspend
584 the permissible activities provided in s. 663.531 relating to a
585 specific jurisdiction if the qualified limited service affiliate
586 becomes aware that the jurisdiction of an international trust
587 entity served by the qualified limited service affiliate is
588 included on the Financial Action Task Force's list of High -Risk
589 Jurisdictions subject to a Call for Action or list of
590 Jurisdictions under Increased Monitoring. Suspensions under this
591 subsection must remain in effect until the jurisdiction is
592 removed from the Financial Action Task Force's list of High-Risk
593 Jurisdictions subject to a Call for Action or list of
594 Jurisdictions under Increased Monitoring.
595 Section 18. Paragraph (a) of subsection (5) of section
596 736.0802, Florida Statutes, is amended to read:
597 736.0802 Duty of loyalty.—
598 (5)(a) An investment by a trustee authorized by lawful
599 authority to engage in trust business, as defined in s. 658.12
600 s. 658.12(20), in investment instruments, as defined in s.
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601 660.25(6), that are owned or controlled by the trustee or its
602 affiliate, or from which the trustee or its affiliate receives
603 compensation for providing services in a capacity other than as
604 trustee, is not presumed to be affected by a conflict between
605 personal and fiduciary interests provided the investment
606 otherwise complies with chapters 518 and 660 and the trustee
607 complies with the requirements of this subsection.
608 Section 19. For the purpose of incorporating the amendment
609 made by this act to section 658.20, Florida Statutes, in
610 references thereto, subsection (1) of section 658.165, Florida
611 Statutes, is reenacted to read:
612 658.165 Banker's banks; formation; applicability of
613 financial institutions codes; exceptions.—
614 (1) If authorized by the office, a corporation may be
615 formed under the laws of this state for the purpose of becoming
616 a banker's bank. An application for authority to organize a
617 banker's bank is subject to ss. 658.19, 658.20, and 658.21,
618 except that s. 658.20(1)(b) and (c) and the minimum stock
619 ownership requirements for the organizing directors provided in
620 s. 658.21(2) do not apply.
621 Section 20. This act shall take effect July 1, 2022.
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CS/HB 431 by Rep. Barnaby
Financial Institutions
AMENDMENT SUMMARY
February 17, 2022
Amendment 1 by Rep. Barnaby (line 465): The amendment expands the banking options for
a foreign licensed family trust company in the same manner that the bill does for a registered
family trust company and a licensed family trust company.
COMMITTEE/SUBCOMMITTEE AMENDMENT
Bill No. CS/HB 431 (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 Barnaby offered the following:
3
4 Amendment (with directory amendment)
5 Between lines 465 and 466, insert:
6 (2) In order to operate in this state, a foreign licensed
7 family trust company must be in good standing in its principal
8 jurisdiction, must be in compliance with the family trust
9 company laws and regulations of its principal jurisdiction, and
10 must maintain:
11 (d) A deposit account with:
12 1. A bank located in the United States and insured by the
13 Federal Deposit Insurance Corporation; or
14 2. A credit union located in the United States and insured
15 by the National Credit Union Administration a state-chartered or
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COMMITTEE/SUBCOMMITTEE AMENDMENT
Bill No. CS/HB 431 (2022)
Amendment No. 1
16 national financial institution that has a principal or branch
17 office in this state.
18
19 -----------------------------------------------------
20 D I R E C T O R Y A M E N D M E N T
21 Remove lines 453-454 and insert:
22 Section 14. Paragraph (d) of subsection (1) and paragraph
23 (d) of subsection (2) of section 662.1225, Florida Statutes, are
24 amended to read:
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CS/HB 453
HOUSE OF REPRESENTATIVES STAFF ANALYSIS
BILL #: CS/HB 453 Records of Physical Examinations of Officers
SPONSOR(S): Criminal Justice & Public Safety Subcommittee, Duggan and Byrd
TIED BILLS: IDEN./SIM. BILLS: CS/SB 1736
REFERENCE ACTION ANALYST STAFF DIRECTOR or
BUDGET/POLICY CHIEF
1) Insurance & Banking Subcommittee 16 Y, 0 N Herendeen Luczynski
2) Criminal Justice & Public Safety Subcommittee 17 Y, 0 N, As CS Frost Hall
3) Appropriations Committee 25 Y, 0 N Lee Pridgeon
4) Commerce Committee Herendeen Hamon
SUMMARY ANALYSIS
In Florida, a law enforcement officer, correctional officer, correctional probation officer, or firefighter who
becomes disabled by tuberculosis, heart disease, or hypertension, is entitled to a presumption that the disease
was contracted in the line of duty, and is therefore compensable under workers’ compensation law. The legal
presumption shifts the burden of proof to the employer, who must prove that the disabling disease is not
related to the officer or firefighter’s job duties or workplace exposures.
To be eligible for the presumption, the officer or firefighter must have taken a pre-employment physical exam
that failed to reveal any evidence of tuberculosis, heart disease, or hypertension.
Law enforcement, correctional, and correctional probation officers must pass a pre-employment physical
examination to be hired by the employing agency, and they are entitled to the benefit of the presumption if the
pre-employment physical examination fails to reveal any evidence of tuberculosis, heart disease, or
hypertension. Such officers may not use a pre-employment physical conducted by a previous employer to
claim the benefit of the presumption when a workers’ compensation claim is disputed by a current employer.
The law does not require a pre-employment physical for firefighters. However, persons who wish to become
firefighters must demonstrate that they are in good physical condition, by passing a medical exam, to enroll in
firefighting training courses and receive a firefighter certification. This medical assessment does not mention
specific screening for tuberculosis, heart disease, or hypertension.
The bill requires the employing agency of a law enforcement, correctional, or correctional probation officer to
maintain records of an employee’s pre-employment physical examination for at least 5 years after the officer
separates from the employing agency. The 5-year records retention requirement also applies to firefighters
who took a pre-employment physical upon employment with the employing fire service provider. If the
employing agency fails to maintain a record of the pre-employment physical, the officer or firefighter is entitled
to the presumption that his or her disability due to tuberculosis, heart disease, or hypertension is compensable
as an occupational disease under workers’ compensation law.
For firefighters who did not undergo a pre-employment physical for the current employer, the firefighter may
support a claim for benefits by using the medical exam required to enroll in training and become certified as a
firefighter, and may be eligible for the presumption so long as the medical exam failed to reveal any evidence
of tuberculosis, heart disease, or hypertension.
The bill has an indeterminate fiscal impact on state and local governments. See Fiscal Comments.
The bill provides an effective date of July 1, 2022.
This docum ent does not reflect the intent or official position of the bill sponsor or House of Representatives .
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FULL ANALYSIS
I. SUBSTANTIVE ANALYSIS
A. EFFECT OF PROPOSED CHANGES:
Background
Workers’ Compensation Presumption
A legal presumption makes it easier for an employee to obtain workers’ compensation benefits by
shifting the burden of proof in a disability determination from the employee to the employer. 1
In general, occupational diseases are compensable if:
A condition peculiar to the occupation causes the disease;
The employee contracts the disease on the job;
The job is associated with a particular hazard of the disease;
The incidence of the disease is substantially higher in the occupation than in the public;
The nature of the employment was a major contributing cause of the disease; and
Epidemiological studies show that exposure to the specific substance involved, at the levels to
which the employee was exposed, may cause the precise disease sustained by the employee. 2
Florida law includes a presumption that treats tuberculosis, heart disease, and hypertension as
occupational diseases associated with firefighters, law enforcement officers, correctional officers, and
correctional probation officers. If these employees become temporarily or partially disabled by
tuberculosis, heart disease, or hypertension, the law presumes that the employee contracted the
disease in the line of duty unless the contrary can be shown by competent evidence. 3
However, firefighters, law enforcement officers, correctional officers, and correctional probation officers
are entitled to the presumption only if the officer or firefighter passed a pre-employment physical exam
that failed to reveal any evidence of tuberculosis, heart disease, or hypertension. 4
If the employee’s pre-employment physical exam failed to reveal any evidence of disease, the
employee must demonstrate the he or she suffers from tuberculosis, heart disease, or hypertension,
but does not have to present evidence of causation that is typically required to demonstrate that an
occupational disease is compensable.5
To overcome the statutory presumption, the employer must present clear and convincing evidence that
the disease was caused by a non-work-related event or exposure.6
Qualifications for Employment as a Law Enforcement, Correctional, or Probation Officer
Florida law sets forth the minimum requirements for any person to be employed or appointed in a full-
or part-time capacity, or in an auxiliary capacity, as a law enforcement officer, correctional officer, or
correctional probation officer; or to be appointed as an auxiliary correctional officer by a private entity
contracting with the Department of Corrections.
1 Caldwell v. Division of Retirement, Florida Dept. of Administration, 372 So. 2d 438 (Fla. 1979).
2 S. 440.151(2), F.S.
3 Ss. 112.18(1)(a) and 175.231, F.S.
4 S. 112.18(1)(a), F.S.
5 McDonald v. City of Jack sonville, 286 So. 3d 792 (Fla. 1st DCA 2019), citing Walters v. State, DOC/Div. of Risk
Management, 100 So. 3d 1173 (Fla. 1st DCA 2019), rehearing denied, review denied 108 So. 3d 654 (The presumption is
an adequate substitute for evidence of occupational causation, and compels the legal result that a claimant has proven
occupational causation).
6 Butler v. City of Jack sonville, 980 So. 2d 1250 (Fla. 1st DCA 2008).
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The applicant must:
Satisfy certain age, education, and citizenship requirements;
Complete a training course;
Pass a certification exam;
Pass a criminal background check; and
Pass a physical examination that includes screening for evidence of tuberculosis, heart disease,
or hypertension.7
Officers are eligible for the presumption of s. 112.18, F.S., only if the physical exam fails to reveal any
evidence of tuberculosis, heart disease, or hypertension. 8
Qualifications for Certification as a Firefighter
To enroll in firefighting training courses and be certified as a firefighter, an applicant must:
Be a high school graduate or the equivalent;
Not have been convicted of specified crimes;
Submit his or her fingerprints to be processed at the state and national level;
Have a good moral character;
Be a nonuser of tobacco or tobacco products for at least one year immediately prior to his or her
application; and
Be in good physical condition as determined by a medical examination given by a physician,
surgeon, or physician assistant; an osteopathic physician, surgeon, or physician assistant; or an
advanced practice registered nurse.9
The law does not mention specific screening for tuberculosis, heart disease, or hypertension. The medical
professional must certify that the applicant is medically fit to engage in firefighting training and does not
have any pre-existing or current condition, illness, injury, or deficiency.10
Records Retention
According to the records retention schedule for state and local government agencies published by the
Florida Department of State, reports of job-related medical examinations must be retained by the Florida
Retirement System (FRS) for 25 years after a participating employee separates from government
employment.11
Local governments that do not participate in the FRS must maintain reports of job-related medical
examinations for 50 years after a participating employee separates from government employment. 12
State agencies that employ people through the Other Personnel Services system, as interns, or on a
voluntary basis must maintain reports of job-related medical examinations for three years after the
employee separates from government employment.13
The Florida State Fraternal Order of Police brought the issue of missing medical records forward
because a vendor hired by the City of Orlando mistakenly destroyed pre-employment physicals for
police officers taken prior to 1998, and the error complicated the city’s ability to provide workers’
7 S. 943.13(6), F.S.
8 Id.
9 Ss. 633.408(6)(a)3. and 633.412(5), F.S.
10 Rule 69A-37.037 and Form DFS-K3-1022.
11 Florida Department of State, Division of Library and Information Services, General Records Schedule GS1-SL for State
and Local Government Agencies, p. 31, https://dos.myflorida.com/library-archives/records-management/general -records-
schedules/ (last visited Feb. 14, 2022).
12 Id. at 32.
13 Id.
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compensation benefits to an officer who suffered Post-Traumatic Stress Disorder after responding to
the Pulse Nightclub shooting that left 50 people dead on June 12, 2016.14
Eligibility for the Workers’ Compensation Presumption
In a disputed workers’ compensation determination, the legal presumption does not apply if a law
enforcement, correctional, or correctional probation officer:
Departed from the course of treatment prescribed by his or her physician, resulting in a
significant aggravation of the disease or disability or need for medical treatment.15
Was previously compensated for the disabling disease and departed from the treatment
prescribed by his or her physician, resulting in disability or increasing the disability or need for
medical treatment.16
Fails to make a claim for benefits prior to or within 180 days after leaving the employment of the
employing agency.17
Firefighters are not subject to the exclusion for prior treatment or compensation and they are not
covered by the claim-filing deadline that lets a law enforcement officer, correctional officer or
correctional probation officer file a claim up to 180 days after leaving the employment.
Instead, a firefighter suffering from tuberculosis, heart disease, or hypertension must advise his or her
employer of the injury within 90 days of the initial manifestation of the disease or 90 days after the
firefighter obtains a medical opinion that the injury (occupational disease) is due to the nature of the
firefighter’s employment.18
The Pre-Employment Physical Is Crucial Evidence
To use the presumption, a “firefighter or law enforcement officer must have successfully passed a
physical examination upon entering into any such service as a firefighter or law enforcement officer,
which examination failed to reveal any evidence of any such condition.” 19
The pre-employment physical examination is required each time the officer or firefighter is employed or
appointed at a new employing agency.20 Firefighters who have attempted to rely on a pre-employment
physical conducted for a prior employer or for certification as a firefighter have been denied benefits. 21
The record of such physical is crucial evidence in a dispute over workers’ compensation benefits.
For example, a single reported elevated blood pressure reading at a law enforcement officer’s pre-
employment physical examination did not constitute evidence of hypertension; thus, the officer was
14 Public testimony of Lisa Henning, representing the Florida State Fraternal Order of Police, Insurance & Banking
Subcommittee hearing on 2022 House Bill 453, Jan. 19, 2022.
15 S. 112.18(1)(b)(1)a., F.S.
16 S. 112.18(1)(b)(1)b., F.S.
17 S. 112.18(1)(b)(4), F.S.
18 Ss. 440.151(6) and 440.185(1), F.S.
19 S. 112.18(1)(a), F.S.
20 “Employing agency” means any agency or unit of government or any municipality or the state or any political subdivision
thereof, or any agent thereof, which has constitutional or statutory authority to employ or appoint persons as officers. The
term also includes any private entity which has contracted with the state or county for the operation and maintenance of a
nonjuvenile detention facility. S. 943.10(4), F.S.
21 See, e.g., Miami-Dade County v. Davis, 26 So. 3d 13, at 17 (Fla. 1st DCA 2009) (A firefighter who passed a certification
examination before he went to work for the City of Gainesville could not rely on benefit of the presumption when he
suffered a heart attack, 30 years later, while working for Miami-Dade County); and Volusia County Fire Services v. Taafe,
27 So. 3d 81, at (Fla. 1st DCA 2009) (Fire captain who was diagnosed with hypertension during a pre-employment
physical, but was otherwise found fit for duty, could not rely on a pre-employment physical conducted 13 years earlier to
demonstrate entitlement to the presumption of s. 112.18, F.S.).
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able to establish the presumption that his hypertension was a result of his job duties and was therefore
compensable under workers’ compensation.22
In the alternative, a law enforcement officer who suffered a heart attack was not eligible for workers’
compensation benefits, even though his pre-employment physical did not reveal evidence of
hypertension or heart disease, because the employer demonstrated that the officer’s heart attack was
caused by a genetic condition that had not been detected in the officer’s pre-employment physical.23
When the parties cannot produce a record of a pre-employment physical, a firefighter or law
enforcement officer cannot use the presumption to establish a compensable occupational disease. This
was the case for a firefighter who did not undergo a physical examination prior to employment, because
the employer did not require a pre-employment physical. The First District Court of Appeal held: “The
statute creating the presumption is very clear and unambiguous and requires a physical examination
upon entering into any service as a fireman as a prerequisite to entitlement to the presumption.”24
Effect of Proposed Changes
The bill amends ss. 112.18 and 943.13, F.S., to require the employing agency of a law enforcement
officer, correctional officer, or correctional probation officer and the employing fire service provider of a
firefighter to maintain records of an employee’s pre-employment physical examination for at least 5
years after he or she separates from the employing agency or fire service provider.
If the employing agency or fire service provider fails to maintain records of an officer’s or firefighter’s
pre-employment physical examination, the officer or firefighter is entitled to the presumption that his or
her disability due to tuberculosis, heart disease, or hypertension is compensable as an occupational
disease under workers’ compensation law.
Because state and local government agencies are already required to retain such records longer than 5
years under Department of State requirements, the records retention requirement under the bill does
not impose any new duties on government employers. However, the bill may encourage such
employers to specifically maintain pre-employment physical examinations more diligently, as failing to
maintain the records will result in an employee receiving the presumption for workers’ compensation
benefits, when his or her physical examination may have proven otherwise.
The bill also authorizes the medical examination required for firefighter certification to satisfy the pre-
employment physical examination required under s. 112.18, F.S., if:
A firefighter’s employer did not require a pre-employment physical examination; and
The certification medical examination did not reveal any evidence of tuberculosis, heart
disease, or hypertension.
A firefighter may only undergo a certification medical examination once in his or her career, as such
examination is only required to begin training and receive certification as a firefighter, and is not
required to take place with each new employer. As such, the bill may encourage fire service providers
to require pre-employment physical examinations of all new employees.
The bill has an effective date of July 1, 2022.
B. SECTION DIRECTORY:
Section 1. Amends s. 112.18, F.S., relating to firefighters and law enforcement or correctional
officers; special provisions relative to disability.
Section 2. Amends s. 943.13, F.S., relating to officers’ minimum qualifications for employment or
22 City of Tavares v. Harper, 230 So. 3d 918 (Fla 1st DCA 2017).
23 Punsk y v. Clay County Sheriff’s Office, 18 So. 3d 577 (Fla. 1st DCA 2009).
24 Cumbie v. City of Milton, 496 So 2d 923 (Fla. 1st DCA, 1986).
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appointment.
Section 3. Provides an effective date of July 1, 2022.
II. FISCAL ANALYSIS & ECONOMIC IMPACT STATEMENT
A. FISCAL IMPACT ON STATE GOVERNMENT:
1. Revenues:
None.
2. Expenditures:
See Fiscal Comments.
B. FISCAL IMPACT ON LOCAL GOVERNMENTS:
1. Revenues:
None.
2. Expenditures:
See Fiscal Comments.
C. DIRECT ECONOMIC IMPACT ON PRIVATE SECTOR:
None.
D. FISCAL COMMENTS:
The bill has an indeterminate fiscal impact on state and local governments. If employing agencies or
fire service providers fail to maintain records of the pre-employment physical examination for 5 years
after the employee’s separation, it is presumed that the employee has met the requirements of s.
112.18(1)(a), F.S. Additionally, firefighters who were not required to undergo pre-employment physical
examinations may use the medical examination required for firefighter certification to satisfy the
presumption requirement, if the medical examination failed to reveal evidence of tuberculosis, heart
disease, or hypertension. This could result in more firefighters and officers qualifying for workers’
compensation benefits under s. 112.18, F.S.
There is likely no fiscal impact on employing state agencies to implement the personnel records
retention requirements of the bill.
III. COMMENTS
A. CONSTITUTIONAL ISSUES:
1. Applicability of Municipality/County Mandates Provision:
Not Applicable. This bill does not appear to require counties or municipalities to spend funds or take
action requiring the expenditures of funds; reduce the authority that counties or municipalities have
to raise revenues in the aggregate; or reduce the percentage of state tax shared with counties or
municipalities.
2. Other:
None.
B. RULE-MAKING AUTHORITY:
The bill does not require rule-making authority and does not affect existing rules.
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C. DRAFTING ISSUES OR OTHER COMMENTS:
None.
IV. AMENDMENTS/COMMITTEE SUBSTITUTE CHANGES
On January 25, 2022, the Criminal Justice & Public Safety Subcommittee adopted a proposed committee
substitute (PCS) and one amendment to the PCS and reported the bill favorably as a committee substitute.
The PCS differed from the original bill as it authorized the medical examination required for firefighter
certification to serve as the pre-employment physical examination required under s. 112.18, F.S., if such
medical examination did not reveal any evidence of tuberculosis, heart disease, or hypertension.
The amendment to the PCS:
Authorized a firefighter’s certification medical examination to satisfy the physical examination
required for the worker’s compensation presumption only if the firefighter did not undergo a pre-
employment physical examination and the certification medical examination did not reveal any
evidence of tuberculosis, heart disease, or hypertension.
Required that if a firefighter underwent a pre-employment physical examination the firefighter’s
employing fire service provider must retain records of the examination for 5 years after the
firefighter’s separation from employment with the fire service provider.
Provided that if the fire service provider fails to retain the records of an employee’s pre-employment
physical examination for the 5-year period, and the firefighter files a claim for worker’s
compensation benefits, the firefighter is entitled to the presumption that his or her disability was
caused by contracting tuberculosis, heart disease, or hypertension in the line of duty.
This analysis is drafted to the committee substitute as passed by the Criminal Justice & Public Safety
Subcommittee.
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F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
CS/HB 453 2022
1 A bill to be entitled
2 An act relating to officer and firefighter physical
3 examination requirements and records; amending s.
4 112.18, F.S.; authorizing the use of a specified
5 physical examination for a presumption; requiring a
6 fire service provider to maintain records of employee
7 physical examinations for a specified period; creating
8 a presumption if records are destroyed before such
9 period has elapsed; amending s. 943.13, F.S.;
10 requiring an employing agency to maintain records of
11 employee physical examinations for a specified period;
12 creating a presumption if records are destroyed before
13 such period has elapsed; providing an effective date.
14
15 Be It Enacted by the Legislature of the State of Florida:
16
17 Section 1. Paragraph (b) of subsection (1) of section
18 112.18, Florida Statutes, is redesignated as paragraph (c),
19 paragraph (a) of that subsection is amended, and a new paragraph
20 (b) is added to that subsection to read:
21 112.18 Firefighters and law enforcement or correctional
22 officers; special provisions relative to disability.—
23 (1)(a) Any condition or impairment of health of any
24 Florida state, municipal, county, port authority, special tax
25 district, or fire control district firefighter or any law
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26 enforcement officer, correctional officer, or correctional
27 probation officer as defined in s. 943.10(1), (2), or (3) caused
28 by tuberculosis, heart disease, or hypertension resulting in
29 total or partial disability or death shall be presumed to have
30 been accidental and to have been suffered in the line of duty
31 unless the contrary be shown by competent evidence. However, any
32 such firefighter, or law enforcement officer, correctional
33 officer, or correctional probation officer must have
34 successfully passed a physical examination upon entering into
35 any such service as a firefighter, or law enforcement officer,
36 correctional officer, or correctional probation officer , which
37 examination failed to reveal any evidence of any such condition.
38 Such presumption does not apply to benefits payable under or
39 granted in a policy of life insurance or disability insurance,
40 unless the insurer and insured have negotiated for such
41 additional benefits to be included in the policy contract.
42 (b)1. If a firefighter did not undergo a pre-employment
43 physical examination, the medical examination required by s.
44 633.412(5) shall be deemed to satisfy the physical examination
45 requirement under paragraph (a), if the medical examination
46 completed pursuant to s. 633.412(5) failed to reveal any
47 evidence of tuberculosis, heart disease, or hypertension.
48 2. If a firefighter underwent a pre-employment physical
49 examination, the employing fire service provider, as defined in
50 s. 633.102, must maintain records of the physical examination
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51 for at least 5 years after the employee's separation from the
52 employing fire service provider. If the employing fire service
53 provider fails to maintain the records of the physical
54 examination for the 5-year period after the employee's
55 separation, it is presumed that the employee has met the
56 requirements of paragraph (a).
57 Section 2. Subsection (6) of section 943.13, Florida
58 Statutes, is amended to read:
59 943.13 Officers' minimum qualifications for employment or
60 appointment.—On or after October 1, 1984, any person employed or
61 appointed as a full-time, part-time, or auxiliary law
62 enforcement officer or correctional officer; on or after October
63 1, 1986, any person employed as a full-time, part-time, or
64 auxiliary correctional probation officer; and on or aft er
65 October 1, 1986, any person employed as a full-time, part-time,
66 or auxiliary correctional officer by a private entity under
67 contract to the Department of Corrections, to a county
68 commission, or to the Department of Management Services shall:
69 (6)(a) Have passed a physical examination by a licensed
70 physician, physician assistant, or licensed advanced practice
71 registered nurse, based on specifications established by the
72 commission. In order to be eligible for the presumption set
73 forth in s. 112.18 while employed with an employing agency, a
74 law enforcement officer, correctional officer, or correctional
75 probation officer must have successfully passed the physical
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76 examination required by this subsection upon entering into
77 service as a law enforcement officer, correctional officer, or
78 correctional probation officer with the employing agency, which
79 examination must have failed to reveal any evidence of
80 tuberculosis, heart disease, or hypertension. A law enforcement
81 officer, correctional officer, or correctional probation officer
82 may not use a physical examination from a former employing
83 agency for purposes of claiming the presumption set forth in s.
84 112.18 against the current employing agency.
85 (b) The employing agency must maintain records of the
86 physical examination for at least 5 years after the employee's
87 separation from the employing agency. If the employing agency
88 fails to maintain the records of the physical examination for
89 the 5-year period after the employee's separation, it is
90 presumed that the employee has met the requirements of paragraph
91 (a).
92 Section 3. This act shall take effect July 1, 2022.
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HB 667
HOUSE OF REPRESENTATIVES STAFF ANALYSIS
BILL #: HB 667 Department of Business and Professional Regulation
SPONSOR(S): McClain
TIED BILLS: IDEN./SIM. BILLS: CS/SB 714
REFERENCE ACTION ANALYST STAFF DIRECTOR or
BUDGET/POLICY CHIEF
1) Regulatory Reform Subcommittee 17 Y, 0 N Wright Anstead
2) State Administration & Technology 14 Y, 0 N Lee Topp
Appropriations Subcommittee
3) Commerce Committee Wright Hamon
SUMMARY ANALYSIS
The Department of Business and Professional Regulation (DBPR) is responsible for licensing and regulating
various businesses and professions throughout the state, including asbestos professionals, mold-related
professionals, electrical contractors, public lodging establishments, and public food service establishments.
Related to mold-related professional licensing regulations, the bill provides a pathway for a person who holds a
license in another state to obtain a Florida license.
Related to asbestos professional licensing regulations, the bill:
provides a limited pathway for a person who holds a license in another state to obtain a Florida license,
and
removes the requirement to show limits of bondability and credit to demonstrate financial stability as
required for initial licensure.
Related to electrical contractors licensing regulations, the bill allows certain local electrical and alarm
contractors to be licensed statewide.
Related to pugilistic exhibitions, the bill removes the maximum participant weight differential requirement for all
exhibition matches. This will allow any exhibition to include participants who are not in the same weight
category.
Related to public lodging establishments and public food service establishments, the bill:
requires licensees to submit certain documents, fees, and communications online;
requires licensees to provide an email address for primary communication with DBPR;
allows notices to be served to the operator of a licensed establishment via email, in addition to in-
person service and by mail;
allows the guest registry at a transient public lodging establishment to be kept online, and guests are no
longer required to sign the registry;
allows 2-year renewals on licenses, instead of only 1-year renewals; and
removes the requirement for a staggered initial license fee schedule.
The bill has a significant negative fiscal impact on state government revenues in the Hotel and Restaurant
Trust Fund. The estimated loss of licensing revenue for the Division of Hotels and Restaurants over three fiscal
years is $5.1 million (6% annually). There is a minimal positive impact on state expenditures. There is no fiscal
impact on local governments and a significant positive fiscal impact on the private sector. See Fiscal Analysis
& Economic Impact Statement.
The bill has an effective date of July 1, 2022.
This docum ent does not reflect the intent or official position of the bill sponsor or House of Representatives .
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FULL ANALYSIS
I. SUBSTANTIVE ANALYSIS
A. EFFECT OF PROPOSED CHANGES:
Department of Business and Professional Regulation
The Florida Department of Business and Professional Regulation (DBPR) regulates and licenses
various businesses and professionals in Florida through the following divisions:
• The Division of Administration,
• The Division of Alcoholic Beverages and Tobacco,
• The Division of Certified Public Accounting,
• The Division of Drugs, Devices, and Cosmetics,
• The Division of Florida Condominiums, Timeshares, and Mobile Homes,
• The Division of Hotels and Restaurants,
• The Division of Pari-mutuel Wagering,
• The Division of Professions,
• The Division of Real Estate,
• The Division of Regulation,
• The Division of Technology, and
• The Division of Service Operations.1
The Division of Professions licenses and regulates various professions through 12 professional boards,
five programs, and one council, including the: 2
• Asbestos Licensing Unit,
• Electrical Contractors’ Licensing Board (ECLB), and
• Mold-Related Services Program.
The Division of Regulation is the enforcement authority for Labor Organizations and Business Agents,
the Florida Athletic Commission (FAC), Farm Labor Program, Child Labor Program, and any
professional boards and programs housed within the Division of Professions.3
The Division of Hotels and Restaurants (H&R) licenses, inspects, and regulates public lodging and food
service establishments in Florida..4
Mold-Related Services
Background
Mold assessors and mold remediators are regulated by ch. 468, part XVI, F.S., and licensed by the
Mold-Related Services Licensing Program 5 in DBPR.
“Mold assessment” means a process performed by a mold assessor that includes the physical sampling
and detailed evaluation of data obtained from a building history and inspection to formulate an initial
hypothesis about the origin, identity, location, and extent of amplification of mold growth of greater than
ten square feet.6
1 S. 20.165, F.S.
2 Florida Department of Business and Professional Regulation, Division of Professions, http://www.myfloridalicense.com/DBPR/division-
of-professions/ (last visited Jan. 14, 2022).
3 Except the Board of Architecture and Interior Design, and the Florida Board of Professional Engineers. Florida Department of
Business and Professional Regulation, Division of Regulation, http://www.myfloridalicense.com/DBPR/division-of-regulation/ (last
visited Jan. 14, 2022).
4 Florida Department of Business and Professional Regulation, D ivision of Hotels and Restaurants,
http://www.myfloridalicense.com/DBPR/hotels-restaurants/ (last visited Jan. 14, 2022).
5 S. 468.84, F.S.
6 S. 468.8411(3), F.S.
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“Mold remediation” means the removal, cleaning, sanitizing, demolition, or other treatment, including
preventive activities, of mold or mold-contaminated matter of greater than ten square feet that was not
purposely grown at that location; however, it may not include work that requires a contractor license
under ch. 489, F.S.7
In order to be licensed as a mold assessor or mold remediator, an applicant must:
be of good moral character,
pass the required DBPR-approved examination offered by a nationally recognized organization
that certifies persons in the specialty of mold assessment or mold remediation,
have required liability insurance, and
complete either:
o at least a two-year associate of arts degree with certain course requirements and a
minimum of one year of experience; or
o a high school diploma or the equivalent with a minimum of four years of experience.8
A person who is licensed in another state is eligible for a license by endorsement in Florida if they:9
are of good moral character;
hold required general liability insurance;
hold a valid license to practice as a mold assessor or mold remediator in another state or
territory of the United States whose educational requirements are substantially equivalent to
Florida; and
have passed a national, regional, state, or territorial licensing examination that is substantially
equivalent to the required Florida examination.
Applicants for a mold-related license pay an initial licensure fee of $230. There are currently 2,700
licensed mold assessors and 2,727 licensed mold remediators in the state. 10
Effect of the Bill
The bill allows applicants who hold a mold-related license in another state to obtain a license by
endorsement in Florida, if they have held a valid license to practice in another state or territory of the
United States for at least ten years before the date of application, without needing to take a Florida-
specific examination or training.
Such applications for a Florida license by endorsement must be made either when the applicant’s
license in another state or territory is active or within two years of when such license was last active.
The bill clarifies the provision relating to licensure examination requirements.
Asbestos Consultants and Contractors
Background
Asbestos consultants and contractors are regulated by ch. 469, F.S., and licensed by the Asbestos
Licensing Unit in DBPR. Florida licensing standards must also comply with the U.S. Environmental
Protection Agency’s Asbestos Model Accreditation Plan for States(MAP), which includes mandatory
nationwide standards for testing and education.11
“Asbestos abatement” means the removal, encapsulation, enclosure, or disposal of asbestos.12
7 S. 468.8411(5), F.S.
8 S. 468.8413(2), F.S.
9 S. 468.8414(3), (4), F.S.
10 Email from Cody McCloud, Legislative Affairs Director, Department of Business and Professional Regulation, RE: HB 667 (Jan. 6 ,
2022).
11 40 C.F.R. § 763 Appendix C to Subpart E.
12 S. 469.001(1), F.S.
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An asbestos consultant may:
• conduct an asbestos survey,
• develop an operation and maintenance plan,
• monitor and evaluate asbestos abatement, and
• prepare asbestos abatement specifications.13
An asbestos contractor may perform the work of an asbestos consultant and conduct asbestos
abatement work.14
In order to be eligible to be licensed as an asbestos consultant or contractor, an applicant must meet
one of the following criteria:15
hold a current, valid, active license as an architect issued under ch. 481, F.S.;
hold a current, valid, active license as a professional engineer issued under ch. 471, F.S.,
hold a current, valid, active license as a professional geologist under ch. 492, F.S.;
be a diplomat of the American Board of Industrial Hygiene; or
have been awarded designation as a Certified Safety Professional by the Board of Certified
Safety Professionals.
An applicant for licensure as either an asbestos consultant or contractor must also:16
if applying for an asbestos consultant license, complete DBPR-approved courses in the
following topics:
o building asbestos surveys and mechanical systems,
o asbestos management planning,
o respiratory protection, and
o project designer.
if applying for an asbestos contractor license, complete courses in the following topics:
o asbestos contractor/supervisor, and
o respiratory protection.
provide evidence of satisfactory work on ten asbestos projects within the last five years,
provide evidence of financial stability, and
pass the DBPR-approved examination.
In order to determine financial stability and adopt standards in related rules, 17 DBPR must use both the
applicant’s credit history and limits of bondability and credit.18
There is no provision which specifically allows or addresses licenses by endorsement for asbestos
licensees of other states.
Applicants for an asbestos license pay a business license fee of $555, an initial licensure fee of $555,
and an examination fee of $340.19 There are currently 119 licensed asbestos contractors and 106
licensed asbestos consultants in the state.20 DBPR has received an average of 33 asbestos
applications per year over the last three fiscal years. 21
Effect of the Bill
The bill allows applicants who hold an asbestos license in another state license to obtain a license by
endorsement in Florida if they have:
passed a written examination in any state that meets the requirements of MAP,
13 S. 469.003, F.S.
14 S. 469.003(3), F.S.
15 S. 469.004(1), F.S.
16 S. 469.005, F.S.
17 The standards for determining an applicant’s financial stability can be found in r. 61E1-4.002, F.A.C.
18 S. 469.006(2)(c)2., F.S.
19 R. 61E1-3.001, F.A.C.
20 DBPR, supra note 10.
21 Department of Business and Professional Regulation (DBPR), Agency Analysis of 2022 Senate Bill 714, p. 9 (Jan. 14, 2022).
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held a license as an asbestos consultant or asbestos contractor issued by another state or
territory of the United States for at least ten years,
demonstrated financial stability, and
completed the required DBPR-approved courses.
Such applicants must apply while they hold an active license in another state or territory or within 2
years after such license was last active.
The bill removes the requirement that applicants show limits of bondability and credit in order to
prove financial stability. Applicants will still need to provide their credit history to meet financial stability
standards.
Electrical Contractors
Background
Statewide electrical, alarm system, and specialty contractors are regulated by of ch. 489, part II, F.S.,
and licensed and regulated by the ECLB within DBPR.22 An electrical contractor engages in business
as a contractor or performs electrical or alarm work for compensation.23
Electrical contractors may work on electrical wiring, fixtures, appliances, apparatus, raceways, and
conduits which generate, transmit, transform, or utilize electrical energy in any form. The scope of an
electrical contractor’s license includes alarm system work.24
Alarm system contractors may lay out, fabricate, install, maintain, alter, repair, monitor, inspect,
replace, or service burglary, fire, robbery, or medical emergency alarm systems.25
In order to become a certified electrical, alarm system, or specialty contractor, an applicant must:26
be at least 18 years of age;
be of good moral character;
pass the certification examination;
have workers’ compensation insurance or an exemption, and public liability and property
damage insurance; and
meet certain training and education criteria.
A registered contractor is an individual that have taken and passed a local competency examination
and can practice the specific category of contracting for which they are approved, only in the local
jurisdiction for which the license is issued.27 Locally registered contractors that are required to hold a
contracting license to practice their profession in accordance with state law must register with DBPR
after obtaining a local license.28
Section 489.514, F.S., created a pathway that allowed registered local electrical and alarm contractors
who met certain criteria to have their local registration converted into a certified statewide license by the
ECLB. The provision required applicants to apply by November 1, 2021, and is thus is no longer
available for use by local registered contractors. This provision is commonly referred to as the
“grandfathering provision.”
Any registered contractor wishing to have their license “grandfathered” into a certified license had to
submit a completed application to the ECLB, pay an appropriate fee, and show evidence of the
following criteria:
22 S. 489.507, F.S.
23 S. 489.505(9), F.S.
24 Ss. 489.505(12) & 489.537(7), F.S.
25 S. 489.505(1)-(2), F.S.
26 S. 489.511(1) & (4), F.S.
27 S. 489.505(21)-(23), F.S.
28 S. 489.513, F.S.
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currently holds a valid registered local license in the certification of electrical contractor, alarm
system contractor, or electrical specialty contractor sought;
has, for the certification category sought, passed a written, proctored examination that the
ECLB finds to be substantially similar to the examination required to be licensed as a certified
contractor;
has at least five years of experience as a contractor in the certification category sought, or as
an inspector or building administrator with oversight over that category. For contractors, only
time periods in which the contractor license is active and the contractor is not on probation
shall count toward the required five years;
has not had the contractor’s license revoked at any time, suspended in the last five years, or
assessed a fine in excess of $500 in the last five years; and
has the required workers’ compensation insurance or an exemption, and public liability and
property damage insurance.29
DBPR received 766 applications from local electrical and alarm contractors for a statewide license
during the last period of grandfathering, from July 1, 2019, through November 1, 2021. 30
Effect of the Bill
The bill reopens the grandfathering provision for locally registered electrical, alarm system, and
specialty contractors to obtain licensure as statewide certified contractors without an expiration date.
Pugilistic Exhibitions
Background
Chapter 548, F.S., governs the FAC under DBPR. The function of the FAC is to license and regulate
pugilistic events and matches, including professional boxing, kickboxing, and mixed martial arts. The
FAC ensures that all matches are conducted in accordance with provisions of state laws and rules.
A match participant, manager, trainer, second, timekeeper, referee, judge, announcer, physician, 31
matchmaker, or promoter must be licensed by FAC before directly or indirectly acting in such capacity
in connection with any match. In order to obtain a license, an applicant must:32
complete an application in a form prescribed by the FAC;
be at least 18 years of age; and
pay an application fee.
An “exhibition” is a boxing, kickboxing, or mixed martial arts engagement in which persons participating
show or display their skill without necessarily striving to win using strikes and blows to the head or other
full-contact maneuvers.33 Participants in an exhibition, except one held solely for training purposes,
must weigh within 12 pounds of each other.34
Effect of the Bill
The bill removes the maximum participant weight differential requirement for all exhibition matches.
This will allow any exhibition to include participants that are more than 12 pounds from each other.
Hotels and Restaurants
29 S. 489.514, F.S.
30 DBPR, supra note 21, at 9.
31 A physician must be licensed pursuant to chapter 458 or chapter 459, must maintain a license in good standing, and must
demonstrate satisfactory medical training or experience in boxing. S. 548.017, F.S.
32 S. 548.021, F.S.
33 S. 548.002(8), F.S.
34 S. 548.043(2), F.S.
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“Public lodging establishment” includes:35
“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; and
“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 hotels, motels, vacation rentals, apartments,
bed and breakfast inns, and timeshare projects.36
“Public food service establishments” means any building, vehicle, place, or structure, or any room or
division thereof, where food is prepared, served, or sold for immediate consumption on or in the vicinity
of the premises; called for or taken out by customers; or prepared prior to being delivered to another
location for consumption, with certain exceptions. 37
Classifications of public food service establishments include permanent food service restaurants,
catering services, mobile food dispensing vehicles, vending machines, theme park carts, culinary
education programs, and temporary food service events. 38
Electronic Communications - Background
While H&R has rulemaking authority to adopt rules to implement ch. 509, F.S., H&R does not have
authority to adopt rules to require electronic submissions for any required document or fee from a
licensee or for H&R to require online communications with a licensee.39 There is also no statutory
requirement that such documents, fees, or communications be transmitted online or for licensees to
provide an email address to H&R.40
Notices that are served by H&R must be delivered to the operator of a licensed establishment by an
H&R agent or by registered mail. If H&R is unable to effect service, the notice may be conspicuously
posted at the licensee’s establishment.41 Inspection reports may be served via electronic means.
Each transient public lodging establishment is required to maintain a register of guests who occupy
rental units in the establishment. The guests must also sign the registry. There is not a specific
allowance that the registry may be kept in an electronic format.
Electronic Communications – Effect of the Bill
The bill gives rulemaking authority to H&R to adopt rules to mandate that certain documents, fees, and
communications must be made online. The bill allows H&R to prescribe requirements and procedures
for exemptions due to a technological or financial hardship.
The bill requires all H&R licensees to provide an email address to function as the primary method of
communication with H&R.
35 S. 509.013(4), F.S.
36 S. 509.242, F.S.
37 S. 509.013(5), F.S.
38 R. 61C-1.002, F.A.C.; Florida Department of Business and Professional Regulation, Hotels and Restaurants – Licensing Guides,
http://www.myfloridalicense.com/DBPR/hotels-restaurants/licensing/licensing-guides/ (last visited Jan. 14, 2022).
39 S. 509.032, F.S.
40 S. 509.091, F.S.
41 S. 509.091(1), F.S.
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The bill allows H&R to serve notices or inspection reports to the operator of licensed establishments via
email, in addition to in-person service and mail.
The bill allows the guest registry at a transient public lodging establishment to be kept online, and will
no longer require guests to sign the registry.
Licensure Fees – Background
Each public lodging establishment and public food service establishment must obtain a license from
H&R. Licenses are renewed annually, and H&R must adopt a rule establishing a staggered schedule
for license renewals.42
The staggered initial license fee schedules require such establishments applying for an initial license to
pay the full license fee if the application is made during the annual renewal period or more than six
months before the next such renewal period, and one-half of the fee if the application is made six
months or less before the next renewal period.43 For example: if an applicant is applying for a hotel
license with between 26 and 50 rental units, the initial license fee is $215, but if such applicant is
applying for the license less than six months before the beginning of the next renewal period, the initial
license fee is $112.50. Such applicant will need to pay the full annual fee when the next renewal period
begins.44
H&R adopts, by rule, a schedule of fees to be paid by each public lodging establishment and public
food service establishment for the issuance or renewal of a license. Such fees are based on the
number of rental units in the public lodging establishment and based on seating capacity and services
offered for public food service establishments. Licenses must be renewed annually.45 License fees
generally range from $91 for a temporary food vendor to $357 for a hotel with 501 or more rental
units.46
Licensure Fees – Effect of the Bill
The bill removes the requirement for a staggered initial license fee schedule for public lodging
establishments and public food service establishments, and instead provides for an initial license that
may be renewed for one or two years. Applications for licensure must be made on forms provided by
H&R, and H&R must adopt a rule for license issuance and renewal procedures.
The bill provides that license renewal fees for public lodging establishments must be based on the
number of rental units in the establishment and whether the renewal is for one or two years. License
renewal fees for public food service establishments must be based on the classification of the license
and whether the renewal is for one or two years.
The bill provides that the statutory maximum fee for a public lodging establishment for a two-year
renewal is set at $2,000, which is double the currently allowed maximum for annual renewals. The
statutory maximum fee for a public food service establishment for a two-year renewal is set at $800,
which is double the currently allowed maximum for annual renewals.
The bill clarifies that all fees be must be paid by the applicant when the license application is submitted
to H&R.
42 S. 509.241(1), F.S.
43 S. 509.251(1), (2), F.S.
44 S. 509.251(1), (2), F.S.; Department of Business and Professional Regulation, Hotel and Restaurants – Hotel-Motel Guide,
http://www.myfloridalicense.com/DBPR/hotels-restaurants/licensing/hotels-and-restaurants-hotel-motel-guide/ (last visited Jan. 14,
2022).
45 S. 509.251(1), (2), F.S.
46 R. 61C-1.008, F.A.C.
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B. SECTION DIRECTORY:
Section 1: Amends s. 468.8414, F.S., revising licensure requirements for mold assessors and
remediators.
Section 2: Amends s. 469.004, F.S., revising licensure requirements for asbestos consultants and
contractors.
Section 3: Amends s. 469.006, F.S., revising licensure requirements for asbestos consultants and
contractors.
Section 4: Amends s. 489.514, F.S., removing a deadline for an electrical contractor licensing
provision.
Section 5: Amends s. 509.032, F.S., providing rulemaking authority for electronic form submissions
for hotels and restaurants.
Section 6: Amends s. 509.091, F.S, revising requirements for hotel and restaurant inspection
reports.
Section 7: Amends s. 509.101, F.S., revising requirements for hotel guest registries.
Section 8: Amends s. 509.241, F.S., revising license provisions for public lodging establishments
and public food service establishments.
Section 9: Amends s. 509.251, F.S., revising fee schedules for public lodging establishments and
public food service establishments.
Section 10: Amends s. 548.043, F.S., revising participant weight differentials for certain pugilistic
exhibitions.
Section 11: Reenacts s. 509.102, F.S., relating to mobile food dispensing vehicles.
Section 12: Provides an effective date.
II. FISCAL ANALYSIS & ECONOMIC IMPACT STATEMENT
A. FISCAL IMPACT ON STATE GOVERNMENT:
1. Revenues:
DBPR expects the following fiscal impacts on revenues:47
Division of Hotels and Restaurants
DBPR’s internal projections for FY 2022-23 indicate the bill would reduce H&R’s license revenues
in the Hotel and Restaurant Trust Fund by approximately $1.7 million (6%) and a total of $5.1
million over the next three fiscal years. These figures assume a 2.81% annual growth rate in H&R
license revenue.
FY22-23 FY23-24 FY24-25
48
Impact of HB 667 on Licensing Revenue $(1,652,302) $(1,698,775) $(1,746,556)
Change as % - 6% - 6% - 6%
Under the current license fee structure, about 58% of new applicants pay an initial license fee for
some fraction of time and then pay H&R again to renew their license within the same fiscal year.
Under the bill, H&R will collect a slightly larger initial license fee and a lower amount of renewal fees
during the first year of licensure for each new license. The bill would eliminate half year prorating of
license fees, replacing it with a full year, which slightly increases revenue, but results in a true
“annual license” from the start with no same fiscal year renewals.
H&R is unable to predict how many licensees will choose a 2-year license or renewal, so it is
unknown how the 2-year option would affect revenue.
Division of Professions
47 DBPR, supra note 21, at 6-7.
48 DBPR, supra note 21, at 10.
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Reopening the grandfathering provision for locally registered electrical, alarm system, and specialty
contractors to obtain licensure as statewide certified contractors would increase revenues between
$150,136 and $399,056 over the next three years based on the potential number of eligible
applicants.
2. Expenditures:
Division of Hotels and Restaurants
The bill has a positive fiscal impact on state expenditures. Due to the reduction of licensing
revenue, the amount transferred to the General Revenue Fund for the 8% service charge from the
Hotel and Restaurant Trust Fund would be reduced by approximately $407,810 over three fiscal
years.49 The division also anticipates a reduction of expenditures for postage and bank fees due to
the reduction in license renewals.50
HB 667 Impact FY 2022-23 FY 2023-24 FY 2024-25
Reduction in 8% Service Charge to General Revenue $132,184 $135,902 $139,724
Cost Savings on Postage and Bank Fees $12,439 $12,789 $13,148
B. FISCAL IMPACT ON LOCAL GOVERNMENTS:
1. Revenues:
Local governments could see an insignificant decrease in revenues associated with renewal and
reciprocity fees if eligible registered contractors choose to apply for the grandfathering provision
created in the bill for ECLB licensees.
2. Expenditures:
None.
C. DIRECT ECONOMIC IMPACT ON PRIVATE SECTOR:
There may be a positive impact on the private sector by expanding the geographical scope of practice
for those registered electrical contractors that choose to take advantage of the grandfathering provision.
Thus, making more electrical contractors available to work across the state.
The removal of the bond and credit limitation proof requirement will likely reduce costs to asbestos
applicants.
The bill will likely generally reduce license fees paid by food and lodging licensees during their first 12
months of licensure. DBPR estimates licensees will save about $1.65 million in Fiscal Year 2022-23.
The decrease comes from eliminating the staggered schedule and outdated prorating system which in
turn provides new licensees with a full year of licensure. Under the current license fee structure, new
applicants often pay for a new license and pay to renew their license within the same fiscal year. 51
D. FISCAL COMMENTS:
The charts below shows the projected impact of the bill52. Despite the reduction of annual licensing
revenues, the Hotel and Restaurant Trust Fund cash balance is sufficient to fund H&R staff and
operations.
Hotel and Restaurant Trust Fund FY 2022-23 FY 2023-24 FY 2024-25
Estimated Revenue - Current Licensing System $27,287,063 $28,054,554 $28,843,632
49 Id.
50 Id.
51 Id.
52 DBPR, supra note 21, at 10.
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Impact of HB 667 on Licensing Revenues -$1,652,302 -$1,698,775 -$1,746,556
Estimated Revenue under Proposed Change $25,634,761 $26,355,779 $27,097,076
Impact of HB 667 on Expenditures $144,623 $148,691 $152,872
Net Impact of HB 667 (Line 2 + Line 4) -$1,507,679 -$1,550,084 -$1,593,684
FY 2022-23 Projections 53
Hotel and Restaurant Trust Fund Current HB 667
Carry Forward Cash Balance - June 30 $23,608,344 $23,608,344
Licensing Revenue $27,287,063 $25,634,761
Other Revenues/Fees $12,506,852 $12,506,852
Less Expenditures for Fiscal Year 2022-23 ($40,668,766) ($40,391,959)
Fiscal Year Ending Balance $22,733,493 $21,357,998
III. COMMENTS
A. CONSTITUTIONAL ISSUES:
1. Applicability of Municipality/County Mandates Provision:
Not applicable. The bill does not appear to require counties or municipalities to spend funds or take
action requiring the expenditure of funds; reduce the authority that counties 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 will require DBPR to amend rules related to asbestos licensing standards and pugilistic
exhibition requirements.
The bill gives rulemaking authority to H&R to adopt rules relating to electronic communications and
license issuance and renewal.
C. DRAFTING ISSUES OR OTHER COMMENTS:
None.
IV. AMENDMENTS/COMMITTEE SUBSTITUTE CHANGES
53 Figures for the Hotel and Restaurant Trust Fund are based on DBPR’s Schedule I submitted on Sept. 15, 2021, on the Florida Fi scal
Portal website available at http://floridafiscalportal.state.fl.us/Document.aspx?ID=23231&DocType=PDF.
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F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
HB 667 2022
1 A bill to be entitled
2 An act relating to the Department of Business and
3 Professional Regulation; amending s. 468.8414, F.S.;
4 requiring the department to certify for licensure
5 qualified individuals who practice mold assessment or
6 mold remediation and hold certain licenses issued by
7 other states or territories; requiring applications to
8 be filed within a specified timeframe after such
9 licensure; amending s. 469.004, F.S.; providing an
10 exception for the issuance of an asbestos consultant's
11 license; requiring the department to certify asbestos
12 consultants and asbestos contractors for licensure who
13 meet certain exam and other state licensure
14 requirements; requiring applications to be filed
15 within a specified timeframe after such licensure;
16 requiring asbestos consultants and asbestos
17 contractors to complete certain courses; amending s.
18 469.006, F.S.; revising the financial responsibility
19 criteria the department must use when issuing
20 consulting or contracting licenses; amending s.
21 489.514, F.S.; removing a time limitation for applying
22 for certain contracting licenses under certain
23 provisions; amending s. 509.032, F.S.; authorizing the
24 Division of Hotels and Restaurants of the department
25 to adopt rules for certain electronic submissions and
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26 exemptions; amending s. 509.091, F.S.; requiring
27 licensees and licensed agents to provide the division
28 with e-mail addresses for contact with the division;
29 authorizing the division to deliver notices and
30 inspection reports by e-mail; amending s. 509.101,
31 F.S.; revising the maintenance requirements an
32 operator must meet for a transient establishment's
33 guest register; amending s. 509.241, F.S.; providing
34 for the expiration of public lodging establishment and
35 public food service establishment licenses;
36 authorizing the licenses to be renewed for specified
37 timeframes; requiring the division to provide forms
38 for license renewals and license applications;
39 amending s. 509.251, F.S.; revising the public lodging
40 establishment and public food service establishment
41 license fees to include an option for 2-year renewals;
42 limiting the fees the division may charge for a 2-year
43 license renewal; requiring license fees to be paid in
44 full at the time of application; amending s. 548.043,
45 F.S.; deleting a requirement limiting the types of
46 boxing exhibitions which require a specified maximum
47 difference in participant weights; reenacting s.
48 509.102(2), F.S., relating to mobile food dispensing
49 vehicles, to incorporate the amendment made to s.
50 509.251, F.S., in a reference thereto; providing an
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51 effective date.
52
53 Be It Enacted by the Legislature of the State of Florida:
54
55 Section 1. Subsection (3) of section 468.8414, Florida
56 Statutes, is amended to read:
57 468.8414 Licensure.—
58 (3) The department shall certify as qualified for a
59 license by endorsement an applicant who is of good moral
60 character, who has the insurance coverage required under s.
61 468.8421, and who:
62 (a) Is qualified to take the examination as set forth in
63 s. 468.8413 and has passed a certification examination offered
64 by a nationally recognized organization that certifies persons
65 in the specialty of mold assessment or mold remediation , and the
66 department that has been approved the certification examination
67 by the department as being substantially equivalent to the
68 requirements of this part and s. 455.217; or
69 (b) Holds a valid license to practice mold assessment or
70 mold remediation issued by another state or territory of the
71 United States if the criteria for issuance of the license were
72 substantially the same as the licensure criteria that is
73 established by this part as determined by the department; or
74 (c) Has held a valid license to practice mold assessment
75 or mold remediation issued by another state or territory of the
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76 United States for at least 10 years before the date of
77 application. The application for licensure must be made either
78 when the license in the other state or territory is active or
79 within 2 years after such license was last active.
80 Section 2. Subsection (3) of section 469.004, Florida
81 Statutes, is renumbered as subsection (4), subsection (1) is
82 amended, and a new subsection (3) is added to that section, to
83 read:
84 469.004 License; asbestos consultant; asbestos
85 contractor.—
86 (1) All asbestos consultants must be licensed by the
87 department. Except for an asbestos consultant's license issued
88 by endorsement as provided under subsection (3) or otherwise
89 expressly provided by law, an asbestos consultant's license may
90 be issued only to an applicant who holds a current, valid,
91 active license as an architect issued under chapter 481; holds a
92 current, valid, active license as a professional engineer issued
93 under chapter 471; holds a current, valid, active license as a
94 professional geologist issued under chapter 492; is a diplomat
95 of the American Board of Industrial Hygiene; or has been awarded
96 designation as a Certified Safety Professional by the Board of
97 Certified Safety Professionals.
98 (3) The department shall certify as qualified for
99 licensure by endorsement any individual applying for licensure
100 who has passed a written examination that meets the requireme nts
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101 of the United States Environmental Protection Agency Asbestos
102 Model Accreditation Plan, has held a valid license to practice
103 as an asbestos consultant or asbestos contractor issued by
104 another state or territory of the United States for at least 10
105 years before the date of application, and is applying for the
106 same or similar license in the state, subject to ss. 469.005(5)
107 and 469.006. The application for licensure must be made either
108 when the license in the other state or territory is active or
109 within 2 years after such license was last active. Asbestos
110 consultants and asbestos contractors must complete courses as
111 required by s. 469.005(2) or (3), respectively, to qualify for
112 licensure by endorsement.
113 Section 3. Paragraph (c) of subsection (2) of sect ion
114 469.006, Florida Statutes, is amended to read:
115 469.006 Licensure of business organizations; qualifying
116 agents.—
117 (2)
118 (c) As a prerequisite to the issuance of a license under
119 this section, the applicant shall submit the following:
120 1. An affidavit on a form provided by the department
121 attesting that the applicant has obtained workers' compensation
122 insurance as required by chapter 440, public liability
123 insurance, and property damage insurance, in amounts determined
124 by department rule. The department shall establish by rule a
125 procedure to verify the accuracy of such affidavits based upon a
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126 random sample method.
127 2. Evidence of financial responsibility. The department
128 shall adopt rules to determine financial responsibility which
129 shall specify grounds on which the department may deny
130 licensure. Such criteria must shall include, but not be limited
131 to, credit history and limits of bondability and credit.
132 Section 4. Subsection (3) of section 489.514, Florida
133 Statutes, is amended to read:
134 489.514 Certification for registered contractors;
135 grandfathering provisions.—
136 (3) An applicant must make application by November 1,
137 2021, to be licensed pursuant to this section.
138 Section 5. Subsection (6) of section 509.032, Florida
139 Statutes, is amended to read:
140 509.032 Duties.—
141 (6) RULEMAKING AUTHORITY.—The division shall adopt such
142 rules as are necessary to carry out the provisions of this
143 chapter. The division may adopt rules requiring electronic
144 submission of any form, document, or fee as required by this
145 chapter. The division may prescribe by rule requirements and
146 procedures for an individual to obtain an exemption due to a
147 technological or financial hardship.
148 Section 6. Section 509.091, Florida Statutes, is amended
149 to read:
150 509.091 Notices; form and service.—
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151 (1) All licensees and licensed agents must provide an e -
152 mail address to the division to function as the primary method
153 of contact for all communication with the division.
154 (2) Each notice or inspection report served by the
155 division pursuant to this chapter must be in writing and must be
156 delivered personally by an agent of the division, be sent by e-
157 mail, or mailed by registered letter to the operator of the
158 public lodging establishment or public food service
159 establishment. If the operator refuses to accept service or
160 evades service or the agent is otherwise unable to effect
161 service after due diligence, the division may post such notice
162 or inspection report in a conspicuous place at the
163 establishment.
164 (2) Notwithstanding subsection (1), the division may
165 deliver lodging inspection reports and food service inspection
166 reports to the operator of the public lodging establishment or
167 public food service establishment by electronic means.
168 Section 7. Subsection (2) of section 509.101, Florida
169 Statutes, is amended to read:
170 509.101 Establishment rules; posting of notice; food
171 service inspection report; maintenance of guest register; mobile
172 food dispensing vehicle registry.—
173 (2) It is the duty of each operator of a transient
174 establishment to maintain at all times a register of, signed by
175 or for guests who occupy rental units within the establishment,
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176 showing the dates upon which the rental units were occupied by
177 such guests and the rates charged for their occupancy. Each
178 operator shall maintain this register shall be maintained in
179 chronological order, shall make the register and available for
180 inspection by the division at any time, and may keep the
181 register in an electronic format. Operators need not make
182 available registers that which are more than 2 years old.
183 Section 8. Section 509.241, Florida Statutes, is amended
184 to read:
185 509.241 Licenses required; exceptions.—
186 (1) LICENSES; ANNUAL RENEWALS.—Each public lodging
187 establishment and public food service establishment shall obtai n
188 a license from the division. Such license may not be transferred
189 from one place or individual to another. It is shall be a
190 misdemeanor of the second degree, punishable as provided in s.
191 775.082 or s. 775.083, for such an establishment to operate
192 without a license. Local law enforcement shall provide immediate
193 assistance in pursuing an illegally operating establishment. The
194 division may refuse a license, or a renewal thereof, to any
195 establishment that is not constructed and maintained in
196 accordance with law and with the rules of the division. The
197 division may refuse to issue a license, or a renewal thereof, to
198 any establishment an operator of which, within the preceding 5
199 years, has been adjudicated guilty of, or has forfeited a bond
200 when charged with, any crime reflecting on professional
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201 character, including soliciting for prostitution, pandering,
202 letting premises for prostitution, keeping a disorderly place,
203 or illegally dealing in controlled substances as defined in
204 chapter 893, whether in this state or in any other jurisdiction
205 within the United States, or has had a license denied, revoked,
206 or suspended pursuant to s. 429.14. Licenses expire if not
207 renewed before the expiration date and may be renewed for 1 or 2
208 years. Licenses must shall be renewed using forms provided by
209 annually, and the division. The division shall adopt a rule
210 establishing procedures a staggered schedule for license
211 issuance and renewals. If any license expires while
212 administrative charges are pending against the license, the
213 proceedings against the license must shall continue to
214 conclusion as if the license were still in effect.
215 (2) APPLICATION FOR LICENSE.—Each person who plans to open
216 a public lodging establishment or a public food service
217 establishment must shall apply for and receive a license from
218 the division using forms provided by the division before
219 commencing prior to the commencement of operation. A condominium
220 association, as defined in s. 718.103, which does not own any
221 units classified as vacation rentals or timeshare p rojects under
222 s. 509.242(1)(c) or (g) is not required to apply for or receive
223 a public lodging establishment license.
224 (3) DISPLAY OF LICENSE.—Any license issued by the division
225 shall be conspicuously displayed in the office or lobby of the
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226 licensed establishment. Public food service establishments that
227 which offer catering services shall display their license number
228 on all advertising for catering services.
229 Section 9. Subsections (1) and (2) of section 509.251,
230 Florida Statutes, are amended to read:
231 509.251 License fees.—
232 (1) The division shall adopt, by rule, a schedule of fees
233 to be paid by each public lodging establishment as a
234 prerequisite to issuance or renewal of a license. Initial
235 license Such fees must shall be based on the number of rental
236 units in the establishment. License renewal fees must be based
237 on the number of rental units in the establishment and whether
238 the renewal is for 1 or 2 years. The aggregate fee per
239 establishment charged any public lodging establishment may not
240 exceed $1,000 for a 1-year license or $2,000 for a 2-year
241 license; however, the fees described in paragraphs (a) and (b)
242 may not be included as part of the aggregate fee subject to this
243 cap. Vacation rental units or timeshare projects within separate
244 buildings or at separate locations but managed by one licensed
245 agent may be combined in a single license application, and the
246 division must shall charge a license fee as if all units in the
247 application are in a single licensed establishment. The fee
248 schedule shall require an establishment which applies for an
249 initial license to pay the full license fee if application is
250 made during the annual renewal period or more than 6 months
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251 before the next such renewal period and one-half of the fee if
252 application is made 6 months or less before such period. The fee
253 schedule must shall include fees collected for the purpose of
254 funding the Hospitality Education Program, pursuant to s.
255 509.302. All fees, which are payable in full for each
256 application at the time regardless of when the application is
257 submitted.
258 (a) Upon making initial application or an application for
259 change of ownership, the applicant shall pay to the division a
260 fee as prescribed by rule, not to exceed $50, in addition to any
261 other fees required by law, which shall cover all costs
262 associated with initiating regulation of the establishment.
263 (b) A license renewal filed with the division after the
264 expiration date shall be accompanied by a delinquent fee as
265 prescribed by rule, not to exceed $50, in addition to the
266 renewal fee and any other fees required by law.
267 (2) The division shall adopt, by rule, a schedule of fees
268 to be paid by each public food service establishment as a
269 prerequisite to issuance or renewal of a license. Initial
270 license fees must be based on the classification of the license.
271 License renewal fees must be based on the classification of the
272 license and whether a renewal is for 1 or 2 years. The fee
273 schedule must shall prescribe a base basic fee and additional
274 fees based on seating capacity and services offered. The
275 aggregate fee per establishment charged any public food service
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276 establishment may not exceed $400 for a 1-year license or $800
277 for a 2-year license; however, the fees described in paragraphs
278 (a) and (b) may not be included as part of the aggregate fee
279 subject to this cap. The fee schedule shall require an
280 establishment which applies for an initial license to pay the
281 full license fee if application is made during the annual
282 renewal period or more than 6 months before the next such
283 renewal period and one-half of the fee if application is made 6
284 months or less before such period. The fee schedule must shall
285 include fees collected for the purpose of funding the
286 Hospitality Education Program, pursuant to s. 509.302. All fees,
287 which are payable in full for each application at the time
288 regardless of when the application is submitted.
289 (a) Upon making initial application or an application for
290 change of ownership, the applicant shall pay to the division a
291 fee as prescribed by rule, not to exceed $50, in addition to any
292 other fees required by law, which shall cover all costs
293 associated with initiating regulation of the establishment.
294 (b) A license renewal filed with the division after the
295 expiration date shall be accompanied by a delinquent fee as
296 prescribed by rule, not to exceed $50, in addition to the
297 renewal fee and any other fees required by law.
298 Section 10. Subsection (2) of section 548.043, Florida
299 Statutes, is amended to read:
300 548.043 Weights and classes, limitations; gloves.—
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301 (2) The commission shall establish by rule the acceptable
302 difference in weight between participants; however, the maximum
303 difference in weight in boxing matches may shall not exceed 12
304 pounds, except matches in the cruiserweight and heavyweight
305 classes and exhibitions held solely for training purposes.
306 Section 11. For the purpose of incorporating the amendment
307 made by this act to section 509.251, Florida Statutes, in a
308 reference thereto, subsection (2) of section 509.102, Florida
309 Statutes, is reenacted to read:
310 509.102 Mobile food dispensing vehicles; preemption. —
311 (2) Regulation of mobile food dispensing vehicles
312 involving licenses, registrations, permits, and fees is
313 preempted to the state. A municipality, county, or other local
314 governmental entity may not require a separate license,
315 registration, or permit other than the license required under s.
316 509.241, or require the payment of any license, registration, or
317 permit fee other than the fee required under s. 509.251, as a
318 condition for the operation of a mobile food dispensing vehicle
319 within the entity's jurisdiction. A municipality, county, or
320 other local governmental entity may not prohibit mobile food
321 dispensing vehicles from operating within the entirety of the
322 entity's jurisdiction.
323 Section 12. This act shall take effect July 1, 2022.
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COMMERCE COMMITTEE
HB 667 by Rep. McClain
Department of Business and Professional Regulation
AMENDMENT SUMMARY
February 17, 2022
Amendment 1 by Rep. Rommel (between lines 182-183):
The amendment allows outdoor ovens at licensed public food service establishments. It
exempts outdoor ovens or outdoor kitchen equipment from certain requirements.
o Specifically:
• “Outdoor kitchen equipment” is defined as equipment used to prepare food, including
a cooking appliance, that is owned by, is adjacent to, and operates in conjunction
with a licensed public food service establishment.
• Such equipment is not required to be separately covered, have overhead protection
or hoods, or to be enclosed.
• Such equipment must meet all other fire safety and sanitation standards.
• Food prepared on such equipment must be kept at required temperatures and
prepared using required sanitation practices.
• A local law, ordinance or regulation may not prohibit the use of outdoor kitchen
equipment.
• DBPR or a local health department may still enforce an order to cease and desist if
the operation is the source of an adulterated food or outbreak of illness caused by
contaminated food.
COMMITTEE/SUBCOMMITTEE AMENDMENT
Bill No. HB 667 (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 Rommel offered the following:
3
4 Amendment (with title amendment)
5 Remove lines 182-183 and insert:
6 Section 7. Section 509.105, Florida Statutes, is created
7 to read:
8 509.105 Outdoor kitchen equipment.—
9 (1) As used in this section, the term “outdoor kitchen
10 equipment” means equipment used to prepare, serve, or sell food
11 for immediate consumption, including a cooking appliance, that
12 is owned by, is adjacent to, and operates in conjunction with a
13 licensed public food service establishment.
14 (2) Notwithstanding any other provision of law, outdoor
15 kitchen equipment:
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Amendment No. 1
16 (a) Is not required to be separately covered, have
17 overhead protection or hoods, or be enclosed. However, outdoor
18 kitchen equipment must meet all other applicable laws, codes,
19 standards, and rules, including for fire safety and sanitation.
20 (b) May be used to prepare, serve, or sell food for
21 immediate consumption as provided in this chapter. Any food that
22 is prepared on outdoor kitchen equipment must be kept at
23 appropriate temperatures and prepared using sanitation
24 practices, as required by this chapter. Such food may not be
25 permanently stored outdoors but is permitted to be temporarily
26 stored outside the licensed food service establishments’
27 enclosure while preparation is taking place on such kitchen
28 equipment.
29 (c) Is subject to all other provisions of this chapter
30 that apply to public food service establishments, including but
31 not limited to, sanitation standards, food safety training,
32 inspections, enforcement, and disciplinary action.
33 (3) A local law, ordinance, or regulation may not
34 prohibit, or have the effect of prohibiting, the use of outdoor
35 kitchen equipment.
36 (4) This section does not prevent the department or a
37 local health department from issuing and enforcing an order to
38 cease and desist use of outdoor kitchen equipment if the
39 equipment is the source of an adulterated food or of an outbreak
40 of illness caused by contaminated food.
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Bill No. HB 667 (2022)
Amendment No. 1
41
42 -----------------------------------------------------
43 T I T L E A M E N D M E N T
44 Remove line 33 and insert:
45 guest register; creating s. 509.105, F.S.; defining
46 "outdoor kitchen equipment"; authorizing certain uses
47 of outdoor kitchen equipment; providing applicability;
48 providing prohibitions; providing enforcement;
49 amending s. 509.241, F.S.; providing
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COMMERCE COMMITTEE
HB 667 by Rep. McClain
Department of Business and Professional Regulation
AMENDMENT SUMMARY
February 17, 2022
Amendment 2 by Rep. Rommel (line 131):
• Allows an employee, agent, or contractor of an animal control authority acting under the
indirect supervision of a veterinarian to administer rabies vaccinations to impounded
animals.
• Defines "indirect supervision," to mean the supervising veterinarian must be available for
consultation through telecommunications but is not required to be on the premises
during such consultation.
o The supervising veterinarian assumes responsibility for the veterinary care given
to the animal by any person working under or at his or her direction and
supervision.
• Authorizes veterinarians who supervise an employee of an animal control authority to
affix his or her signature stamp in lieu of an actual signature on the rabies vaccination
certificate.
• Makes a conforming cross reference.
COMMITTEE/SUBCOMMITTEE AMENDMENT
Bill No. HB 667 (2022)
Amendment No. 2
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 Rommel offered the following:
3
4 Amendment (with title amendment)
5 Between lines 131 and 132, insert:
6 Section 4. Paragraph (a) of subsection (5) of section
7 474.203, Florida Statutes, is amended to read:
8 474.203 Exemptions.—This chapter does not apply to:
9 (5)(a) Any person, or the person's regular employee,
10 administering to the ills or injuries of her or his own animals,
11 including, but not limited to, castration, spaying, and
12 dehorning of herd animals, unless title is transferred or
13 employment provided for the purpose of circumventing this law.
14 This exemption does not apply to any person licensed as a
15 veterinarian in another state or foreign jurisdiction and
16 practicing temporarily in this state. However, except as
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Amendment No. 2
17 provided in s. 828.30, only a veterinarian may immunize or treat
18 an animal for diseases that are communicable to humans and that
19 are of public health significance.
20
21 For the purposes of chapters 465 and 893, persons exempt
22 pursuant to subsection (1), subsection (2), or subsection (4)
23 are deemed to be duly licensed practitioners authorized by the
24 laws of this state to prescribe drugs or medicinal supplies.
25 Between lines 322 and 323, insert:
26 Section 13. Subsections (1) and (3) of section 828.30,
27 Florida Statutes, are amended to read:
28 828.30 Rabies vaccination of dogs, cats, and ferrets.—
29 (1)(a) Except as provided in paragraph (b), all dogs,
30 cats, and ferrets 4 months of age or older must be vaccinated by
31 a licensed veterinarian against rabies with a vaccine that is
32 licensed by the United States Department of Agriculture for use
33 in those species.
34 (b) An employee, agent, or contractor of an animal control
35 authority acting under the indirect supervision of a
36 veterinarian may vaccinate impounded animals that will be
37 transferred, rescued, fostered, adopted, or reclaimed by the
38 owner. As used in this paragraph, the term "indirect
39 supervision" means the supervising veterinarian must be
40 available for consultation through telecommunications but is not
41 required to be on the premises during such consultation. The
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Amendment No. 2
42 supervising veterinarian assumes responsibility for the
43 veterinary care provided to the animal by any person working
44 under or at his or her direction and supervision.
45 (c) The owner of every dog, cat, and ferret shall have the
46 animal revaccinated 12 months after the initial vaccination.
47 Thereafter, the interval between vaccinations shall conform to
48 the vaccine manufacturer's directions. The cost of vaccination
49 must be borne by the animal's owner. Evidence of circulating
50 rabies virus neutralizing antibodies may shall not be used as a
51 substitute for current vaccination in managing rabies exposure
52 or determining the need for booster vaccinations.
53 (3) Upon vaccination against rabies, the licensed
54 veterinarian shall provide the animal's owner and the animal
55 control authority with a rabies vaccination certificate. Each
56 animal control authority and veterinarian shall use the "Rabies
57 Vaccination Certificate" of the National Association of State
58 Public Health Veterinarians (NASPHV) or an equivalent form
59 approved by the local government that contains all the
60 information required by the NASPHV Rabies Vaccination
61 Certificate. The veterinarian who administers the rabies
62 vaccination, or who indirectly supervises an employee, agent, or
63 contractor of an animal control authority who administers the
64 rabies vaccination, vaccine to an animal as required under this
65 section may affix his or her signature stamp in lieu of an
66 actual signature on the rabies vaccination certificate.
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COMMITTEE/SUBCOMMITTEE AMENDMENT
Bill No. HB 667 (2022)
Amendment No. 2
67
68 -----------------------------------------------------
69 T I T L E A M E N D M E N T
70 Remove line 20 and insert:
71 consulting or contracting licenses; amending s.
72 474.203, F.S.; providing an exception to who may
73 immunize or treat an animal for certain diseases;
74 amending s.
75 Remove line 50 and insert:
76 509.251, F.S., in a reference thereto; amending s.
77 828.30, F.S.; authorizing certain employees, agents,
78 or contractors to administer rabies vaccinations under
79 certain circumstances; defining the term "indirect
80 supervision"; providing that a supervising
81 veterinarian assumes responsibility for any person
82 working under or at his or her direction and
83 supervision; authorizing a veterinarian who indirectly
84 supervises the administration of the rabies
85 vaccination to affix his or her signature stamp in
86 lieu of an actual signature on the rabies vaccination
87 certificate; providing an
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CS/HB 685
HOUSE OF REPRESENTATIVES STAFF ANALYSIS
BILL #: CS/HB 685 Rural Development
SPONSOR(S): State Affairs Committee, Drake and others
TIED BILLS: IDEN./SIM. BILLS:
REFERENCE ACTION ANALYST STAFF DIRECTOR or
BUDGET/POLICY CHIEF
1) State Affairs Committee 21 Y, 0 N, As CS Darden Williamson
2) Infrastructure & Tourism Appropriations 12 Y, 0 N Hicks Davis
Subcommittee
3) Commerce Committee Walsh Hamon
SUMMARY ANALYSIS
Florida has enacted a variety of economic grant and loan programs intended to aid the development of rural
and otherwise economically distressed regions of the state, including the Regional Rural Development Grant
Program, the Rural Community Development Revolving Loan Fund, and the Rural Infrastructure Fund. These
programs are administered by the Department of Economic Opportunity (DEO).
The bill reduces the required non-state match amount for the Regional Rural Development Grants Program
from 25 percent to 15 percent and allows in-kind contributions to count toward this threshold.
The bill removes the requirement that repaid funds from the Rural Community Development Revolving Loan
Fund be matched in order to be retained to fund future loans.
Finally, the bill revises the uses of the Rural Infrastructure Fund to remove the requirement that grants be
linked to financing specific projects. It increases the proportion of an infrastructure project that may be covered
by the grant from 50 percent to 75 percent and increases the maximum grant for infrastructure feasibility
studies, design and engineering activities, or other infrastructure planning and preparation activities to
$300,000 for all projects. The bill removes the local match requirement for surveys, feasibility studies, and
other activities related to the identification and preclearance review of land which is suitable for preclearance
review, and removes the requirement that a grant for an employment project create a minimum number of jobs.
The bill does not have a fiscal impact on state government, but may have a positive impact on local
governments. See Fiscal Analysis section for details.
The bill has an effective date of July 1, 2022.
This docum ent does not reflect the intent or official position of the bill sponsor or House of Representatives .
STORAGE NAME: h0685c.COM
DATE: 2/15/2022
FULL ANALYSIS
I. SUBSTANTIVE ANALYSIS
A. EFFECT OF PROPOSED CHANGES:
Background
Rural Areas of Opportunity
A rural area of opportunity (RAO) is a rural community, or region comprised of rural communities,
designated by the Governor, that has been adversely affected by an extraordinary economic event,
severe or chronic distress, or a natural disaster.1 An area may also be designated as an RAO if it
presents a unique economic development opportunity of regional impact. The designation of an RAO
must be agreed upon by the Department of Economic Opportunity (DEO), as well as the county and
municipal governments to be included in the RAO.2
Based on recommendations of the Rural Economic Development Initiative (REDI),3 the Governor may
designate up to three RAOs by executive order.4 This designation establishes these areas as priority
assignments for REDI and allows the Governor, acting through REDI, to waive criteria, requirements, or
similar provisions of any economic development initiative.
Currently, there are three designated RAO areas:
Northwest RAO: Calhoun, Franklin, Gadsden, Gulf, Holmes, Jackson, Liberty, Wakulla, and
Washington counties, and portions of Walton County (the City of Freeport and lands north of the
Choctawhatchee Bay and intercoastal waterway).
South Central RAO: DeSoto, Glades, Hardee, Hendry, Highlands, and Okeechobee counties,
and the cities of Pahokee, Belle Glade, and South Bay in Palm Beach County and the city of
Immokalee in Collier County.
North Central RAO: Baker, Bradford, Columbia, Dixie, Gilchrist, Hamilton, Jefferson, Lafayette,
Levy, Madison, Putnam, Suwannee, Taylor, and Union counties.5
Regional Rural Development Grants Program
The Regional Rural Development Grants Program is a state matching grant program established to
provide funding to build the professional capacity of regional economic development organizations. 6
Grants may be used by an economic development organization to provide technical assistance to
businesses within the rural counties and communities that it serves. 7
Applications submitted to DEO for funding through this program must provide proof:
Of official commitments of support from each local government represented by the regional
organization;
That each local government has made a financial or in-kind commitment to the regional
organization;
That the private sector has made financial or in-kind commitments to the regional organization;
1 S. 288.0656(2)(d), F.S. A “rural community” is any county with a population of 75,000 or fewer, any county with a population of
125,000 or fewer that is contiguous to a county with a population of 75,000 or fewer, a municipality in a county that meets e ither of the
aforementioned criteria, or an unincorporated federal enterprise community or an incorporated rural city with a population of 25,000 or
fewer and an employment base focused on traditional agricultural or resource -based industries, located in a county not defined as rural,
which has at least three or more of the economic distress factors. S. 288.0656(2)(e), F.S.
2 S. 288.0656(7)(b), F.S.
3 REDI is housed within DEO. S. 288.0656, F.S.
4 S. 288.0656(7)(a), F.S.
5 Dept. of Economic Opportunity, Rural Areas of Opportunity, https://floridajobs.org/community-planning-and-development/rural-
community-programs/rural-areas-of-opportunity (last visited Jan. 21, 2022). The economic development organizations for these RAOs
are named Opportunity Florida, Florida’s Heartland Regional Economic Development Initiative, and the North Florida Economic
Development Partnership, respectively.
6 S. 288.018, F.S.
7 S. 288.018(1)(b), F.S.
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That the regional organization is in existence and actively involved in economic development
activities serving the region; and
Of the manner in which the regional organization coordinates its efforts with those of other local
and state organizations.8
An organization may receive up to $50,000 a year or $250,000 if located in an RAO.9 Grants must be
matched by an amount of non-state resources equal to 25 percent of the state contribution. DEO is
authorized to spend up to $750,000 each fiscal year from funds appropriated to the Rural Community
Development Revolving Loan Fund to carry out this program. 10
Rural Infrastructure Fund
The Rural Infrastructure Fund is a grant program created to facilitate the planning, preparation, and
financing of infrastructure projects in rural communities. 11 The program provides access to federal and
state infrastructure funding programs, including, but not limited to, those offered by the United States
Departments of Agriculture and Commerce.12 The program funds total infrastructure project grants,
infrastructure feasibility grants, and preclearance review grants.
DEO may award grants for up to 50 percent of the total infrastructure project cost. Projects must be
related to specific job-creation or job-retention opportunities. Additionally, projects may include
improving any inadequate infrastructure that has resulted in regulatory action that prohibits economic or
community growth, reducing the costs to community users of proposed infrastructure improvements
that exceed such costs in comparable communities, and improving access to and availability of
broadband Internet service.13
Eligible uses of funds include improvements to public infrastructure for industrial or commercial sites,
upgrades to or development of public tourism infrastructure, and improvements to broadband Internet
service and access in unserved or underserved rural communities. 14 Infrastructure can include public or
public-private partnership facilities, like storm water systems, telecommunication facilities, broadband
facilities, roads, and nature-based tourism.15
The infrastructure feasibility grant provides awards of up to 30 percent of the total project costs for
infrastructure feasibility studies, design and engineering activities, or other infrastructure planning and
preparation activities. Maximum awards are dependent on the number of jobs that a business commits
to create and may be up to $300,000 if the project is located in an RAO.16
The preclearance review grant provides awards to help a local government participate in expedited
permitting processes through technical assistance in preparing permit applications and local
comprehensive plan amendments.17 Grants may be used for surveys, feasibility studies, and other
activities related to the identification and preclearance review of land use modifications. Grants are
limited to $75,000 and must be matched 50 percent with local funds. However, projects in an RAO may
receive up to $300,000 and must be matched 33 percent with local funds. 18
Grant applications are reviewed and certified by DEO in consultation with Enterprise Florida, Inc., VISIT
Florida, the Department of Environmental Protection, and the Florida Fish and Wildlife Conservation
8 S. 288.018(2), F.S.
9 S. 288.018(1)(c), F.S.
10 S. 288.018(4), F.S.
11 See s. 288.0655, F.S.
12 S. 288.0655(2)(b), F.S.
13 Id.
14 Id.
15 Broadband Internet service must be provided in partnership with one or more deal ers of communications services. S. 288.0655(2)(b),
F.S.
16 S. 288.0655(2)(c), F.S.
17 S. 288.0655(2)(e), F.S. Expedited permitting is pursuant to s. 403.9739(18), F.S.
18 S. 288.0655(2)(e), F.S.
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Commission. Reviews include an evaluation of the economic benefit of the projects and their long-term
viability.19
Rural Community Development Revolving Loan Fund
The Rural Community Development Revolving Loan Fund Program is a state loan program used to
finance initiatives directed toward maintaining and developing the economic base of rural communities,
especially initiatives addressing employment opportunities. 20 The program provides long-term loans,
loan guarantees, and loan loss reserves to local governments, or economic development organizations
substantially underwritten by local governments, in counties with small populations or those located
within an RAO.21 Loan repayments are generally returned to the loan fund to be made available to
other applicants, but repayments made by an applicant in an RAO may be retained by the applicant if
the repayments are dedicated and matched to fund regionally based economic development
organizations representing the RAO and if retention of funds is approved by DEO.22
Effect of Proposed Changes
Regional Rural Development Grants Program
The bill reduces the required match from non-state resources from 25 percent to 15 percent and allows
for in-kind contributions from all non-state contributors to count toward the match.
Rural Infrastructure Fund
The bill increases the maximum grant award from 50 percent to 75 percent of the total infrastructure
cost and removes the requirement that projects must be linked to specific job-creation or job-retention
opportunities.
The bill increases the maximum grant for infrastructure feasibility studies, design and engineering
activities, or other infrastructure planning and preparation activities to $300,000 for all projects. It
removes the limitation that the grant not exceed 30 percent of the total project cost.
The bill removes the local matching funds requirement for surveys, feasibility studies, and other
activities related to the identification and preclearance review of land which is suitable for preclearance
review. It also removes the requirement that a grant for an employment project create or retain a
minimum number of jobs.
Rural Community Development Revolving Loan Fund
The bill removes the requirement that funds be matched by the local government, or an economic
development organization substantially underwritten by a local government, as long as the funds are
retained for the purpose of funding regionally based economic development organizations representing
the RAO.
B. SECTION DIRECTORY:
Section 1: Amends s. 288.018, F.S., revising eligibility for the Regional Rural Development Grants
Program.
Section 2: Amends s. 288.065, F.S., removing a match requirement from the Rural Community
Development Revolving Loan Fund.
Section 3: Amends s. 288.0655, F.S., revising provisions relating to the Rural Infrastructure Fund.
19 S. 288.0655(3), F.S.
20 S. 288.065(1), F.S.
21 S. 288.065(2)(a), F.S.
22 S. 288.065(2)(c), F.S.
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Section 4: Provides an effective date of July 1, 2022.
II. FISCAL ANALYSIS & ECONOMIC IMPACT STATEMENT
A. FISCAL IMPACT ON STATE GOVERNMENT:
1. Revenues:
None.
2. Expenditures:
None.
B. FISCAL IMPACT ON LOCAL GOVERNMENTS:
1. Revenues:
None.
2. Expenditures:
The bill may reduce local government expenditures to the extent that the match requirement has
been reduced or they are no longer required to provide matching funds for certain projects.
C. DIRECT ECONOMIC IMPACT ON PRIVATE SECTOR:
Removal of the requirement that the projects must be linked to specific job-creation or job-retention
opportunities may impact the local area labor market.
D. FISCAL COMMENTS:
This bill does not affect state revenues or expenditures. However, the reduction or removal of match
requirements and the increase in allowable grant awards may limit the total number of grants awarded
because funding of these programs remains unchanged.
III. COMMENTS
A. CONSTITUTIONAL ISSUES:
1. Applicability of Municipality/County Mandates Provision:
Not applicable. The bill does not appear to require counties or municipalities to spend funds or take
any action requiring the expenditure of funds, reduce the authority that counties or municipalities
have to raise revenue in the aggregate, nor reduce the percentage of state tax shared with counties
or municipalities.
2. Other:
None.
B. RULE-MAKING AUTHORITY:
The bill does not require or authorize rulemaking.
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C. DRAFTING ISSUES OR OTHER COMMENTS:
None.
IV. AMENDMENTS/COMMITTEE SUBSTITUTE CHANGES
On January 26, 2022, the State Affairs Committee adopted a proposed committee substitute (PCS) and
reported the bill favorably as a committee substitute. The PCS differed from the bill in that it removed:
Revisions to exemptions to the sales and use tax and municipal public service tax that applied to
businesses located in opportunity zones instead of enterprise zones;
An expansion of the applicability of an exemption for electrical energy to include propane and
natural gas;
An increase in the value of the Rural Job Tax Credit and the reduction in the number of additional
employees needed to qualify for the credit;
A revision to a set aside of funds appropriated for the Quick-response Training Program that
changed it from being used on businesses located in an enterprise zone or brownfield area to
businesses located in rural areas of opportunity;
Changes to reporting requirements and the responsibilities of state agencies related to the Rural
Economic Development Initiative;
A requirement that funds from the State Economic Enhancement and Development Trust Fund,
when used for affordable housing, be set aside for projects in rural communities; and
Provisions creating the Florida Microfinance Corporation.
This analysis is drafted to the committee substitute adopted by the State Affairs Committee.
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F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
CS/HB 685 2022
1 A bill to be entitled
2 An act relating to rural development; amending s.
3 288.018, F.S.; reducing the required grant match
4 percentage rate and authorizing in-kind contributions
5 under the Regional Rural Development Grants Program;
6 amending s. 288.065, F.S.; removing a match
7 requirement from the Rural Community Development
8 Revolving Loan Fund under specified conditions;
9 amending s. 288.0655, F.S.; revising provisions
10 related to the Rural Infrastructure Fund; increasing
11 the percentage of grants that the Department of
12 Economic Opportunity may award; revising criteria for
13 awarding grants; removing the local match requirement;
14 providing an effective date.
15
16 Be It Enacted by the Legislature of the State of Florida:
17
18 Section 1. Paragraph (d) of subsection (1) of section
19 288.018, Florida Statutes, is amended to read:
20 288.018 Regional Rural Development Grants Program. —
21 (1)
22 (d) Grant funds received by a regional economic
23 development organization must be matched each year by nonstate
24 financial or in-kind contributions resources in an amount equal
25 to 15 25 percent of the state contribution.
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CS/HB 685 2022
26 Section 2. Paragraph (c) of subsection (2) of section
27 288.065, Florida Statutes, is amended to read:
28 288.065 Rural Community Development Revolving Loan Fund.—
29 (2)
30 (c) All repayments of principal and interest shall be
31 returned to the loan fund and made available for loans to other
32 applicants. However, in a rural area of opportunity designat ed
33 by the Governor, and upon approval by the department, repayments
34 of principal and interest may be retained by the applicant if
35 such repayments are dedicated and matched to fund regionally
36 based economic development organizations representing the rural
37 area of opportunity.
38 Section 3. Subsection (1), paragraphs (b), (c), and (e) of
39 subsection (2), and subsection (3) of section 288.0655, Florida
40 Statutes, are amended to read:
41 288.0655 Rural Infrastructure Fund.—
42 (1) There is created within the department the Rural
43 Infrastructure Fund to facilitate the planning, preparing, and
44 financing of infrastructure projects in rural communities which
45 will encourage job creation, capital investment, and the
46 strengthening and diversification of rural economies by
47 promoting tourism, trade, and economic development.
48 (2)
49 (b) To facilitate access of rural communities and rural
50 areas of opportunity as defined by the Rural Economic
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CS/HB 685 2022
51 Development Initiative to infrastructure funding programs of the
52 Federal Government, such as those offered by the United States
53 Department of Agriculture and the United States Department of
54 Commerce, and state programs, including those offered by Rural
55 Economic Development Initiative agencies, and to facilitate
56 local government or private infrastructure funding efforts, the
57 department may award grants for up to 75 50 percent of the total
58 infrastructure project cost. Eligible projects must be related
59 to specific job-creation or job-retention opportunities.
60 Eligible uses of funds projects may also include improving any
61 inadequate infrastructure that has resulted in regulatory action
62 that prohibits economic or community growth, reducing the costs
63 to community users of proposed infrastructure improvements that
64 exceed such costs in comparable communities, and improving
65 access to and the availability of broadband Internet service.
66 Eligible uses of funds shall include improvements to public
67 infrastructure for industrial or commercial sites, upgrades to
68 or development of public tourism infrastructure, and
69 improvements to broadband Internet service and access in
70 unserved or underserved rural communities. Improvements to
71 broadband Internet service and access must be conducted through
72 a partnership or partnerships with one or more dealers, as
73 defined in s. 202.11(2), and the partnership or partnerships
74 must be established through a competitive selection process that
75 is publicly noticed. Authorized infrastructure may include the
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CS/HB 685 2022
76 following public or public-private partnership facilities: storm
77 water systems; telecommunications facilities; broadband
78 facilities; roads or other remedies to transportation
79 impediments; nature-based tourism facilities; or other physical
80 requirements necessary to facilitate tourism, trade, and
81 economic development activities in the community. Authorized
82 infrastructure may also include publicly or privately owned
83 self-powered nature-based tourism facilities, publicly owned
84 telecommunications facilities, and broadband facilities, and
85 additions to the distribution facilities of the existing natural
86 gas utility as defined in s. 366.04(3)(c), the existing electric
87 utility as defined in s. 366.02, or the existing water or
88 wastewater utility as defined in s. 367.021(12), or any other
89 existing water or wastewater facility, which owns a gas or
90 electric distribution system or a water or wastewater system in
91 this state where:
92 1. A contribution-in-aid of construction is required to
93 serve public or public-private partnership facilities under the
94 tariffs of any natural gas, electric, water, or wastewater
95 utility as defined herein; and
96 2. Such utilities as defined herein are willing and able
97 to provide such service.
98 (c) To facilitate timely response and induce the location
99 or expansion of specific job creating opportunities, The
100 department may award grants of up to $300,000 for infrastructure
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101 feasibility studies, design and engineering activities, or other
102 infrastructure planning and preparation activities. Authorized
103 grants shall be up to $50,000 for an employment project wi th a
104 business committed to create at least 100 jobs; up to $150,000
105 for an employment project with a business committed to create at
106 least 300 jobs; and up to $300,000 for a project in a rural area
107 of opportunity. Grants awarded under this paragraph may be used
108 in conjunction with grants awarded under paragraph (b), provided
109 that the total amount of both grants does not exceed 30 percent
110 of the total project cost. In evaluating applications under this
111 paragraph, the department shall consider the extent to w hich the
112 application seeks to minimize administrative and consultant
113 expenses.
114 (e) To enable local governments to access the resources
115 available pursuant to s. 403.973(18), the department may award
116 grants for surveys, feasibility studies, and other activ ities
117 related to the identification and preclearance review of land
118 which is suitable for preclearance review. Authorized grants
119 under this paragraph do not require a local match and may not
120 exceed $75,000 each, except in the case of a project in a rural
121 area of opportunity, in which case the grant may not exceed
122 $300,000. Any funds awarded under this paragraph must be matched
123 at a level of 50 percent with local funds, except that any funds
124 awarded for a project in a rural area of opportunity must be
125 matched at a level of 33 percent with local funds. If an
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126 application for funding is for a catalyst site, as defined in s.
127 288.0656, the requirement for local match may be waived pursuant
128 to the process in s. 288.06561. In evaluating applications under
129 this paragraph, the department shall consider the extent to
130 which the application seeks to minimize administrative and
131 consultant expenses.
132 (3) The department, in consultation with Enterprise
133 Florida, Inc., the Florida Tourism Industry Marketing
134 Corporation, the Department of Environmental Protection, and the
135 Florida Fish and Wildlife Conservation Commission, as
136 appropriate, shall review and certify applications pursuant to
137 s. 288.061. The review shall include an evaluation of the
138 economic benefit of the projects and their long-term viability.
139 The department shall have final approval for any grant under
140 this section.
141 Section 4. This act shall take effect July 1, 2022.
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COMMERCE COMMITTEE
HB 685 by Rep. Drake
Rural Development
AMENDMENT SUMMARY
February 17, 2022
Amendment 1 by Rep. Drake (Lines18-58):
• Removes nonstate matching requirements for the Regional Rural Development
Grants Program and the Rural Community Development Revolving Loan Fund.
• Authorizes grants under the Rural Infrastructure Fund to be awarded for up to
100 percent of the total infrastructure project cost for certain rural communities.
COMMITTEE/SUBCOMMITTEE AMENDMENT
Bill No. CS/HB 685 (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 Drake offered the following:
3
4 Amendment (with title amendment)
5 Remove lines 18-58 and insert:
6 Section 1. Subsections (1) and (2) of section 288.018,
7 Florida Statutes, are amended to read:
8 288.018 Regional Rural Development Grants Program. —
9 (1)(a) For the purposes of this section, the term “regional
10 economic development organization” means an economic development
11 organization located in or contracted to serve a rural area of
12 opportunity, as defined in s. 288.0656(2)(d).
13 (b) The department shall establish a matching grant program
14 to provide funding to regional economic development
15 organizations for the purpose of building the professional
16 capacity of those organizations. Building the professional
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COMMITTEE/SUBCOMMITTEE AMENDMENT
Bill No. CS/HB 685 (2022)
Amendment No. 1
17 capacity of a regional economic development organization
18 includes hiring professional staff to develop, deliver, and
19 provide needed economic development professional services,
20 including technical assistance, education and leadership
21 development, marketing, and project recruitment. Matching Grants
22 may also be used by a regional economic development organization
23 to provide technical assistance to local governments, local
24 economic development organizations, and existing and prospective
25 businesses.
26 (c) A regional economic development organization may apply
27 annually to the department for a matching grant. The department
28 is authorized to approve, on an annual basis, grants to such
29 regional economic development organizations. The maximum amount
30 an organization may receive in any year will be $50,000, or
31 $250,000 for any three regional economic development
32 organizations that serve an entire region of a rural area of
33 opportunity designated pursuant to s. 288.0656(7) if they are
34 recognized by the department as serving such a region.
35 (d) Grant funds received by a regional economic development
36 organization must be matched each year by nonstate resources in
37 an amount equal to 25 percent of the state contribution.
38 (2) In approving the participants, the department shall
39 consider the demonstrated need of the applicant for assistance
40 and require the following:
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COMMITTEE/SUBCOMMITTEE AMENDMENT
Bill No. CS/HB 685 (2022)
Amendment No. 1
41 (a) Documentation of official commitments of support from
42 each of the units of local government represented by the
43 regional organization.
44 (b) Demonstration that each unit of local government has
45 made a financial or in-kind commitment to the regional
46 organization.
47 (c) Demonstration that the private sector has made
48 financial or in-kind commitments to the regional organization.
49 (b)(d) Demonstration that the organization is in existence
50 and actively involved in economic development activities serving
51 the region.
52 (c)(e) Demonstration of the manner in which the
53 organization is or will coordinate its efforts with those of
54 other local and state organizations.
55 Section 2. Paragraph (c) of subsection (2) of section
56 288.065, Florida Statutes, is amended to read:
57 288.065 Rural Community Development Revolving Loan Fund. —
58 (2)
59 (c) All repayments of principal and interest shall be
60 returned to the loan fund and made available for loans to other
61 applicants. However, in a rural area of opportunity designated
62 by the Governor, and upon approval by the department, repayments
63 of principal and interest may be retained by the applicant if
64 such repayments are dedicated and matched to fund regionally
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COMMITTEE/SUBCOMMITTEE AMENDMENT
Bill No. CS/HB 685 (2022)
Amendment No. 1
65 based economic development organizations representing the rural
66 area of opportunity.
67 Section 3. Subsection (1), paragraphs (b), (c), and (e) of
68 subsection (2), and subsection (3) of section 288.0655, Florida
69 Statutes, are amended to read:
70 288.0655 Rural Infrastructure Fund.—
71 (1) There is created within the department the Rural
72 Infrastructure Fund to facilitate the planning, preparing, and
73 financing of infrastructure projects in rural communities which
74 will encourage job creation, capital investment, and the
75 strengthening and diversification of rural economies by
76 promoting tourism, trade, and economic development.
77 (2)
78 (b) To facilitate access of rural communities and rural
79 areas of opportunity as defined by the Rural Economic
80 Development Initiative to infrastructure funding programs of the
81 Federal Government, such as those offered by the United States
82 Department of Agriculture and the United States Department of
83 Commerce, and state programs, including those offered by Rural
84 Economic Development Initiative agencies, and to facilitate
85 local government or private infrastructure funding efforts, the
86 department may award grants for up to 50 75 percent of the total
87 infrastructure project cost, or up to 100 percent of the total
88 infrastructure project cost for a project located in a rural
89 community as defined in s. 288.0656(2)(e) or a rural area of
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COMMITTEE/SUBCOMMITTEE AMENDMENT
Bill No. CS/HB 685 (2022)
Amendment No. 1
90 opportunity as defined in s. 288.0656(2)(d), and is also located
91 in a fiscally constrained county as defined in s. 218.67(1).
92 Eligible projects must be related
93
94 -----------------------------------------------------
95 T I T L E A M E N D M E N T
96 Remove lines 3-4 and insert:
97 288.018, F.S.; removing the required grant match
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CS/CS/HB 701
HOUSE OF REPRESENTATIVES STAFF ANALYSIS
BILL #: CS/CS/HB 701 Boating and Vessel Safety
SPONSOR(S): Environment, Agriculture & Flooding Subcommittee, Tourism, Infrastructure & Energy
Subcommittee, McFarland
TIED BILLS: IDEN./SIM. BILLS: SB 1650
REFERENCE ACTION ANALYST STAFF DIRECTOR or
BUDGET/POLICY CHIEF
1) Tourism, Infrastructure & Energy Subcommittee 18 Y, 0 N, As CS Neuffer Keating
2) Environment, Agriculture & Flooding 18 Y, 0 N, As CS Mamontoff Moore
Subcommittee
3) Commerce Committee Neuffer Hamon
SUMMARY ANALYSIS
The Florida Fish and Wildlife Conservation Commission (FWC) regulates, manages, and conserves the fish
and wildlife resources within the state. Within the FWC, the Division of Law Enforcement enforces boating
rules and regulations, coordinates boating safety campaigns and education, and investigates boating
accidents.
Any person born on or after January 1, 1988, who wishes to operate a vessel powered by a motor 10
horsepower or greater must complete a boating safety education course approved by the National Association
of State Boating Law Administrators (NASBLA). The NASBLA provides minimum standards which are
reviewed every five years and apply to all basic boating courses across the U.S. and its territories.
In 2018, federal law went into effect requiring operators of vessels less than 26 feet in length and with three or
more horsepower to employ an engine cut-off switch if installed on the vessel. Florida has a similar law but with
regard only to jet skis.
The bill may be cited as “Ethan’s Law.”
The bill requires that FWC include as components in boating safety education campaigns and education
material, as appropriate, the following:
The dangers of passengers sitting in areas not designed and designated for seating.
The operation of a boat with persons in the water nearby.
The dangers of starting a vessel with the engine in gear.
The risks of leaving a vessel running while passengers are onboarding or disembarking.
The proper use and benefits of an engine cut-off switch for motorboats and personal watercrafts.
The bill also requires that operators of vessels used in the instruction of water sports or activities use an engine
cut-off switch and wear an operative engine cut-off switch link when people participating in the water sport or
activity are in the water.
The bill does not have an impact on state or local government revenues. The bill does not have an impact on
local government expenditures. The bill may have an insignificant fiscal impact on state government
expenditures.
The bill provides an effective date of October 1, 2022.
This docum ent does not reflect the intent or official position of the bill sponsor or House of Representatives .
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FULL ANALYSIS
I. SUBSTANTIVE ANALYSIS
A. EFFECT OF PROPOSED CHANGES:
Present Situation
The Florida Fish and Wildlife Conservation Commission (FWC) regulates, manages, and conserves the
fish and wildlife resources within the state.1 The Division of Law Enforcement within the FWC is tasked
with the enforcement of boating rules and regulations, coordinating boating safety campaigns and
education, and investigating boating accidents.
In 2020, there were 836 boating accidents in the state of Florida.2 Of those accidents, 79 resulted in
fatalities, with 69% of operators having no formal boater education. 3
Any person born on or after January 1, 1988, must complete a boating safety education course
approved by the National Association of State Boating Law Administrators (NASBLA) in order to
operate a vessel powered by a motor of 10 horsepower or greater. 4 Any operator required by statute to
complete the boating safety education course must carry a boating education ID card and a photo ID
while operating any qualifying vessel.5
NASBLA provides minimum standards that apply to all basic boating courses in the U.S. and its
territories.6 The minimum standards are reviewed every five years with the purpose of establishing a
national standard for all courses across the nation. Under current NASBLA standards, courses must
describe state-required equipment, such as engine cut-off lanyards or bailing devices.7 Courses must
additionally cover boat operation, trip planning, and emergency preparation. 8 There are several courses
within the state of Florida which meet NASBLA’s 8-hour instruction requirement, ranging from no cost
to $50.9 A boating safety education course card is valid for life unless it was obtained through a
temporary examination, in which instance it is valid for only 90 days. 10
Florida law specifies certain equipment and lighting standards for all vessels operated in the waters of
the state, and identifies the equipment which must be carried, stored, maintained, and used in
accordance with current United States Coast Guard (USCG) safety equipment requirements.11
Federal law requires any individual operating a covered recreational vessel 12 to use an engine cut-off
switch link while operating on plane or above displacement speed. 13 Any manufacturer, distributer, or
dealer of propulsion machinery associated with starting controls on a covered recreational vessel must
equip such vessel with an engine cut-off switch and an engine cut-off switch link.14 Engine cut-off
switches are normally coiled bungee cords but can also be electronic wireless devices. They operate to
1 Art. IV, s. 9, Fla. Const.
2 Florida Fish and Wildlife Conservation Commission, 2020 Boating Accident Statistical Report, 2020,
https://myfwc.com/media/26463/2020-basr-booklet.pdf (last visited January 13, 2022).
3Id.
4 See s. 327.395(6)(a)-(g), F.S., (listing exemptions from the boating safety education course requirement).
5 S. 327.395(2), F.S.
6 See ANSI/NASBLA, 103-2016: Basic Boating Knowledge – Power (November 18, 2015).
7 See National Association of State Boating Law Administrators, NASBLA Policy: Basic Boating Education Course
Approval (September 13, 2016) (describing the minimum educational requirements of a boating course for NASBLA
approval).
8 Id.
9 FWC, Boating Safety Courses, https://myfwc.com/boating/safety-education/courses/ (last visited January 4, 2022).
10 S. 327.395(5), F.S.
11 S. 327.50, F.S.
12 See 46 U.S.C. § 4312(e)(1) (defining covered recreational vessel as a recreational vessel that is less than 26 feet
overall in length and capable of developing 115 pounds or more of static thrust); see 46 U.S.C. § 4312(e)(6) (defining
static thrust as the forward or backwards thrust developed by propulsion machinery while stationary).
13 46 U.S.C. § 4312(b).
14 46 U.S.C. § 4312(a).
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shut off the engine if the operator is separated from the operating area, reducing the dangers created
by a runaway vessel or impact with the spinning propeller. 15 A person in violation of this law is liable for
a civil penalty to the United States Government of not more than $100 for the first offense, 16 $250 for
the second offense,17 and $500 for any subsequent offense.18 Although the law did not go into effect
until 2018, most U.S. boat manufacturers had already voluntarily installed engine cut-off switches on
their boats.19 Exceptions are provided for vessels if the main helm is within an enclosed cabin, or if the
vessel is not required to have an engine cut-off switch.20
Florida’s current law provides a similar mandate but only for personal watercraft, commonly identified
as jet skis.21
Effect of Proposed Changes
The bill expands the list of topics that must be covered in FWC boating safety education campaigns
and commission materials to include:
The dangers of passengers sitting in areas not designed and designated for seating.
The operation of a boat with persons in the water nearby.
The dangers of starting a vessel with the engine in gear.
The risks of leaving a vessel running while passengers are onboarding or disembarking.
The proper use and benefits of an engine cut-off switch for motorboats and personal
watercrafts.
The bill also requires the operator of a vessel used in a water sport or activity which causes participants
to be in the water to use an engine cutoff switch and wear an operative link to the switch when
participants are in the water. The bill does not provide a legal penalty for failure to comply with the bill.
B. SECTION DIRECTORY:
Section 1 Provides a short title.
Section 2 Amends s. 327.395, F.S.; relating to boating safety education.
Section 3 Amends s. 327.50, F.S.; relating to vessel safety regulations.
Section 4 Provides an effective date of October 1, 2022.
II. FISCAL ANALYSIS & ECONOMIC IMPACT STATEMENT
A. FISCAL IMPACT ON STATE GOVERNMENT:
1. Revenues:
None.
15 USCG, Engine Cut-Off Switches, supra.
16 46 U.S.C. § 4311(c)(1).
17 46 U.S.C. § 4311(c)(2).
18 46 U.S.C. § 4311(c)(3).
19 United States Coast Guard, Engine Cut-Off Switches, https://uscgboating.org/recreational-boaters/engine-cut-off-
devices.php (last visited January 4, 2022).
20 46 U.S.C. § 4312(b)(2).
21 S. 327.39, F.S.; see s. 327.02(37) (defining “personal watercraft” as a vessel less than 16 feet in length which uses an
inboard motor powering a water jet pump as its primary source of motive power and which is designed to be operated by
a person sitting, standing, or kneeling on the vessel).
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2. Expenditures:
The bill appears to have an insignificant impact to FWC expenditures necessary to incorporate the
required items into education campaigns and materials.
B. FISCAL IMPACT ON LOCAL GOVERNMENTS:
1. Revenues:
None.
2. Expenditures:
None.
C. DIRECT ECONOMIC IMPACT ON PRIVATE SECTOR:
Motorized vessels that are not covered under federal law and which are used for the instruction of
water sports and activities will be required to have an engine cut-off switch installed if not already
equipped with one.
D. FISCAL COMMENTS:
None.
III. COMMENTS
A. CONSTITUTIONAL ISSUES:
1. Applicability of Municipality/County Mandates Provision:
Not applicable. The bill does not appear to require counties or municipalities to spend funds or take
action requiring the 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 18, 2022, the Tourism, Infrastructure & Energy Subcommittee adopted a strike-all amendment and
reported the bill favorably as a committee substitute. The amendment:
Provided the act be designated “Ethan’s Law.”
Clarified that the operator of a vessel used in the instruction of a water sport or activity must use an
engine cutoff switch and operative link.
On February 8, 2022, the Environment, Agriculture & Flooding Subcommittee adopted an amendment and
reported the bill favorably as a committee substitute. The amendment changed the effective date to of October
1, 2022.
This analysis is drafted to the committee substitute as approved by the Environment, Agriculture & Flooding
Subcommittee.
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F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
CS/CS/HB 701 2022
1 A bill to be entitled
2 An act relating to boating and vessel safety;
3 providing a short title; amending s. 327.395, F.S.;
4 requiring certain boating safety education courses and
5 temporary certificate examinations to include
6 specified components; directing the Fish and Wildlife
7 Conservation Commission to include such components in
8 boating safety education campaigns and certain
9 educational materials; amending s. 327.50, F.S.;
10 requiring operators of vessels used in the instruction
11 of water sports and activities to use engine cutoff
12 switches and wear operative links to the switches
13 under certain conditions; providing an effective date.
14
15 Be It Enacted by the Legislature of the State of Florida:
16
17 Section 1. This act may be cited as "Ethan's Law."
18 Section 2. Subsection (4) of section 327.395, Florida
19 Statutes, is amended to read:
20 327.395 Boating safety education.—
21 (4) A commission-approved boating safety education course
22 or temporary certificate examination developed or approved by
23 the commission must include components a component regarding:
24 (a) Diving vessels, awareness of divers in the water,
25 divers-down warning devices, and the requirements of s. 327.331.
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hb0701-02-c2
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/CS/HB 701 2022
26 (b) The danger associated with:
27 1. A passenger riding on a seat back, gunwale, transom,
28 bow, motor cover, or any other vessel area not designed and
29 designated by the manufacturer for seating.
30 2. A passenger falling overboard.
31 3. Operating a vessel with a person in the water near the
32 vessel.
33 4. Starting a vessel with the engine in gear.
34 5. Leaving the vessel running when a passenger is boarding
35 or disembarking.
36 (c) The proper use and lifesaving benefits of an engine
37 cutoff switch for motorboats and personal watercraft.
38
39 The commission must include the components under this subsection
40 in boating safety education campaigns and in educational
41 materials produced by the commission, as appropriate.
42 Section 3. Subsection (4) is added to section 327.50,
43 Florida Statutes, to read:
44 327.50 Vessel safety regulations; equipment and lighting
45 requirements.—
46 (4) The operator of a vessel used in the instruction of a
47 water sport or activity must use an engine cutoff switch and
48 wear an operative link to the switch when a person participating
49 in the water sport or activity is in the water.
50 Section 4. This act shall take effect October 1, 2022.
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hb0701-02-c2
HB 705
HOUSE OF REPRESENTATIVES STAFF ANALYSIS
BILL #: HB 705 Mergers and Acquisitions Reporting
SPONSOR(S): Grall
TIED BILLS: IDEN./SIM. BILLS: SB 1112
REFERENCE ACTION ANALYST STAFF DIRECTOR or
BUDGET/POLICY CHIEF
1) Regulatory Reform Subcommittee 15 Y, 0 N Wright Anstead
2) Appropriations Committee 25 Y, 0 N Saag Pridgeon
3) Commerce Committee Wright Hamon
SUMMARY ANALYSIS
Healthy competition in economic markets keeps prices low and quality high for consumers. When one entity
becomes too strong, it can stifle competition, leading to higher prices and harm to consumers. Antitrust law
exists to protect consumers by promoting competition in the marketplace.
The U.S. Congress, and many states, have passed several laws to help promote competition by outlawing
unfair methods of competition. One such law is the Hart-Scott-Rodino Act (HSRA), which requires entities to
provide certain federal government agencies with information about large mergers and acquisitions before they
occur, in a notification form called the “Notification and Report Form for Certain Mergers and Acquisitions”
(HSRA filing).
Currently, the Florida Office of the Attorney General (OAG) does not receive notice of HSRA filings unless they
are voluntarily provided by the combining entities or discovered through public sources. In addition, such
sources are not generally made publicly available by the federal government.
The bill requires any entity conducting business in the state to provide notice to the OAG that it has submitted
an HSRA filing at the same time the HSRA filing is filed with the federal government.
The bill may have an indeterminate, but likely insignificant impact on workload within the OAG. However, this
minimal impact can be absorbed within existing resources. The bill has no impact on local governments.
The bill provides an effective date of July 1, 2022.
This docum ent does not reflect the intent or official position of the bill sponsor or House of Representatives .
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FULL ANALYSIS
I. SUBSTANTIVE ANALYSIS
A. EFFECT OF PROPOSED CHANGES:
Antitrust Law
Healthy competition in economic markets keeps prices low and quality high for consumers. When one
entity becomes too strong or entertains unfair methods of competition, it can stifle competition, leading
to higher prices and harm to consumers. Antitrust law exists to protect competition, but not necessarily
individual competitors in economic markets, based on the idea that an unregulated market will lead to
the creation of coercive monopolies.1
Federal antitrust law includes the Sherman Antitrust Act, the Clayton Act, and the Federal Trade
Commission Act. These laws are enforced in federal district court2 by the U.S. Department of Justice
(DOJ), the Federal Trade Commission (FTC), state Attorneys General, and private plaintiffs. Antitrust
case law is well-developed, and it is often difficult to distinguish aggressive, pro-competitive conduct—
which is legal—from predatory, anti-competitive conduct.3
The Clayton Act4 prohibits specific business actions, including mergers and acquisitions, which may
substantially lessen competition. To determine whether a merger violates the Clayton Act, a court must
decide whether the merger is likely to create an appreciable danger of anticompetitive effects. 5
The Sherman Antitrust Act6 prohibits any attempt to restrain trade or form a monopoly in a predatory
manner. A monopoly has two elements: (1) monopoly power and (2) willful acquisition or maintenance
of that power, as opposed to power naturally resulting from a superior product, acumen, or historic
accident. Penalties for violating the Sherman Act include up to ten years’ imprisonment and a fine up to
$100 million for a corporation or $1 million for any other person.7
The Florida Antitrust Act of 19808 is intended to complement federal antitrust law in order to foster
effective competition. Implemented by the Office of the Attorney General (OAG), it essentially mirrors the
federal Sherman Act, and prohibits:9
Every contract, combination, or conspiracy in restraint of trade or commerce;10 and
Monopolization or attempted monopolization of any part of trade or commerce. 11
A Florida antitrust law violation is punishable by up to three years' imprisonment and fines up to $1
million for a corporation and $100,000 for any other person.12 There is also a private right of action for
any person injured by certain antitrust violations.13
Florida law does not provide a corollary to the federal Clayton Act, which specifically targets mergers
and acquisitions that may lessen competition. However, the Attorney General considers the Florida
1
John J. Miles, Antitrust Primer, 20140513 AHLA Seminar Papers 1 (2014) (The purpose of antitrust law is to "protect and promote
competition as the primary method by which this country allocates scarce resources to maximize the welfare of consumers.").
2 Steven Fox, Litigation Under Florida's Deceptive and Unfair Trade Practices Act, the Florida Antitrust Act, or Federal Antitrust
Statutes, The Florida Bar, Business Litigation in Florida (2017) (Federal district courts have exclusive jurisdiction over federal antitrust
actions).
3
Animesh Ballabh, Antitrust Law: An Overview, 88 J. Pat. & Trademark Off. Soc'y 877 (2006); John J. Miles, Antitrust Primer, 20140513
AHLA Seminar Papers 1 (2014).
4 15 U.S.C. § 18;
5 See also Olin Corp. v. FTC, 986 F.2d 1295, 1305 (9th Cir. 1993) (discussing how plaintiff’s establishment of a prima facie case on
statistical evidence is first step in a court’s analysis); Chicago Bridge & Iron Co. v. FTC, 534 F.3d 410, 423 (5th Cir. 2008).
6 15 U.S.C. §§ 1 et seq.
7 15 U.S.C. § 1.
8 Ss. 542.15 – 542.36, F.S.
9 S. 542.16, F.S.
10 S. 542.18, F.S.
11 S. 542.19, F.S.
12 S. 542.21, F.S.
13 Ss. 542.21 and 542.22, F.S.
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Antitrust Act of 1980 and the Florida Deceptive and Unfair Trade Practices Act broad enough to
encompass those types of violations.14
Premerger Notification Program
The Hart-Scott-Rodino Act15 (HSRA), an amendment to the Clayton Act, established the federal
Premerger Notification Program (PNP), which provides the FTC and the DOJ with information about
large mergers and acquisitions before they occur.16 The PNP was established to avoid some of the
difficulties and expense that the enforcement agencies encounter when they challenge anticompetitive
acquisitions after they have occurred. Prior review under the PNP enables the FTC and the DOJ to
determine which acquisitions are likely to be anticompetitive and to challenge them at a time when
remedial action is most effective.17
The parties to certain proposed transactions must submit premerger notification to the FTC and DOJ.
Premerger notification involves completing the “Notification and Report Form for Certain Mergers and
Acquisitions” (HSRA filing) with information about each company’s business. 18
HSRA requires persons contemplating proposed business transactions that satisfy certain size
criteria to report their intentions to the enforcement agencies before consummating the
transaction. If the proposed transaction is reportable, then both the acquiring person and the
person whose business is being acquired must submit information about their respective business
operations to the enforcement agencies and wait a specific period of time before consummating
the proposed transaction. During that waiting period, the enforcement agencies review the
antitrust implications of the proposed transaction. Whether a particular transaction is reportable
is determined by application of HSRA, the related rules, and formal and informal staff interpretations.
As a general matter, HSRA and the related rules require both acquiring and acquired persons to file
notifications under the PNP if all of the following conditions are met:19
As a result of the transaction, the acquiring person will hold an aggregate amount of voting
securities, non-corporate interests (NCI) and/or assets of the acquired person valued in excess
of $200 million (as adjusted), regardless of the sales or assets of the acquiring and acquired
persons ; or
As a result of the transaction, the acquiring person will hold an aggregate amount of voting
securities, NCI and/or assets of the acquired person valued in excess of $50 million (as
adjusted) but at $200 million (as adjusted) or less; and
One person has sales or assets of at least $100 million (as adjusted); and
The other person has sales or assets of at least $10 million (as adjusted).
Florida’s Role in Premerger Actions
State Attorneys General, including Florida’s, have power under the Clayton Act to independently sue to
enjoin a merger or acquisition. But, according to industry experts, State Attorneys General (State AGs)
do not have access to the same investigative tools as federal enforcers, such as automatically
receiving HSRA filings. For this reason, State AGs more typically allow the federal agencies to take the
lead in merger investigations and enforcement actions. 20
14 Florida Attorney General, Antitrust, http://myfloridalegal.com/antitrust (last visited Feb. 7, 2022).
15
15 U.S.C. § 18a.
16 Federal Trade Commission, Premerger Notification Program, Premerger Notification Program | Federal Trade Commission (ftc.gov)
(last visited Feb. 7, 2022).
17 FTC Premerger Notification Office, Introductory Guide I, p. 1 (Mar. 2009), Introductory Guide 1- What is the Premerger Notification
Program? An Overview (ftc.gov) (last visited Feb. 7, 2022).
18 FTC, supra note 16.
19 FTC PNO, supra note 17 at 2-3.
20 Bruning Law Group, State Attorneys General and Their Influence on Merger Enforcement, State Attorneys General and Their
Influence on Merger Enforcement - Bruning Law Group (last visited Feb. 7, 2022).
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The HSRA contains confidentiality provisions 21 that prohibit the federal agencies from sharing
information gathered pursuant to the HSR Act with State AGs absent the consent of the merging
parties. According to industry practitioners, in order to avoid the burden of having to comply with
multiple demands for information, the parties generally provide such consent. Upon receiving consent
from the merging parties, the federal agencies are permitted to provide State AGs with copies of any
issued civil investigative demands or second requests. 22
The OAG has expressed that receiving notices of these transactions prior to their consummation will
enable the OAG to stop anticompetitive transactions and preserve competition. 23
Effect of the Bill
The bill requires any entity conducting business in the state to provide notice to the OAG that it has
submitted an HSRA filing at the same time the HSRA filing is filed with the federal government.
B. SECTION DIRECTORY:
Section 1: Provides filing requirements for certain large entities participating in a merger or
acquisition.
Section 2: Provides an effective date.
II. FISCAL ANALYSIS & ECONOMIC IMPACT STATEMENT
A. FISCAL IMPACT ON STATE GOVERNMENT:
1. Revenues:
None.
2. Expenditures:
Receiving an increased amount of HSRA filings may insignificantly increase OAG workload.24
However, any fiscal impacts associated with workload increases can be absorbed within existing
resources.
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:
21 15 U.S.C. § 18A(h).
22 Bruning Law Group, supra note 20.
23 Office of the Attorney General, Agency Analysis of 2022 House Bill 705, Jan. 25, 2022.
24 Id.
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1. Applicability of Municipality/County Mandates Provision:
Not applicable. This bill does not appear to affect county or municipal governments.
2. Other:
None.
B. RULE-MAKING AUTHORITY:
None.
C. DRAFTING ISSUES OR OTHER COMMENTS:
None.
IV. AMENDMENTS/COMMITTEE SUBSTITUTE CHANGES
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F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
HB 705 2022
1 A bill to be entitled
2 An act relating to mergers and acquisitions reporting;
3 creating s. 542.275, F.S.; requiring certain entities
4 to submit written notice of a specified filing to the
5 Office of the Attorney General relating to certain
6 transactions; providing an effective date.
7
8 Be It Enacted by the Legislature of the State of Florida:
9
10 Section 1. Section 542.275, Florida Statutes, is created
11 to read:
12 542.275 Mergers and acquisitions reporting; notice
13 required.—Any entity conducting business in the state which is
14 required to file the Notification and Report Form for Certain
15 Mergers and Acquisitions pursuant to the Hart-Scott-Rodino
16 Antitrust Improvements Act of 1976, 15 U.S.C. s. 18a(a), shall
17 provide written notice of such filing to the Office of the
18 Attorney General at the same time that notice is filed with the
19 Federal Government.
20 Section 2. This act shall take effect July 1, 2022.
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hb0705-00
CS/HB 907
HOUSE OF REPRESENTATIVES STAFF ANALYSIS
BILL #: CS/HB 907 Florida Seaport Transportation and Economic Development Council
SPONSOR(S): Tourism, Infrastructure & Energy Subcommittee, Payne
TIED BILLS: IDEN./SIM. BILLS: SB 1038
REFERENCE ACTION ANALYST STAFF DIRECTOR or
BUDGET/POLICY CHIEF
1) Tourism, Infrastructure & Energy Subcommittee 15 Y, 0 N, As CS Johnson Keating
2) Infrastructure & Tourism Appropriations 12 Y, 0 N Davis Davis
Subcommittee
3) Commerce Committee Johnson Hamon
SUMMARY ANALYSIS
Florida law designates 15 deepwater seaports: Jacksonville, Port Canaveral, Port Citrus, Fort Pierce, Palm
Beach, Port Everglades, Miami, Port Manatee, St. Petersburg, Tampa, Port St. Joe, Panama City, Pensacola,
Key West, and Fernandina. These seaports are represented on the Florida Seaport Transportation Economic
Development (FSTED) Council, which approves specified types of seaport projects and recommends funding
under the FSTED program.
The Putnam County Port District operates an inland river port, located along the St. Johns River in Putnam
County. The county has plans to dredge the channel to the port in order to increase commerce.
The bill adds Putnam County as a member of the FSTED Council.
The bill provides that until July 1, 2024, Putnam County may apply for a grant through the FSTED Council to
perform a study examining the economic, technical, and operational viability of establishing a port in Putnam
County. The FSTED Council must evaluate the grant application pursuant to specified requirements in law and
if approved, the Department of Transportation must include the study in its budget request for FSTED funding.
Upon completion of the study, the FSTED Council must review the study to determine if a port in Putnam
County is viable. If the FSTED Council does not approve the study, Putnam County’s membership on the
council must terminate.
The bill reenacts various statutes that cross-reference the seaports making up the FSTED Council to
incorporate Putnam County into those statutes.
The bill has an indeterminate fiscal impact on state government expenditures, but costs would be limited to
available transportation revenues within the Work Program. See Fiscal Analysis section for details.
The bill has an effective date of July 1, 2022.
This docum ent does not reflect the intent or official position of the bill sponsor or House of Representatives .
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FULL ANALYSIS
I. SUBSTANTIVE ANALYSIS
A. EFFECT OF PROPOSED CHANGES:
Current Situation
Florida is home to 15 deepwater seaports: Jacksonville, Port Canaveral, Port Citrus, Fort Pierce, Palm
Beach, Port Everglades, Miami, Port Manatee, St. Petersburg, Tampa, Port St. Joe, Panama City,
Pensacola, Key West, and Fernandina,1 which are independently governed and operated.2
The Department of Transportation’s (DOT) Seaports Office works with the seaports to assist with
planning and funding strategic seaport projects, as well as assisting with seaport-related issues. DOT’s
Seaports Office is responsible for statewide seaport system planning, coordinating with statewide
freight planning, project management, and coordinating seaport infrastructure projects. 3
Florida Seaport Transportation and Economic Development (FSTED) Program/FSTED Council
Created in 1990,4 the Florida Seaport Transportation and Economic Development (FSTED) Program
within DOT finances port transportation or port facilities projects that will improve the movement and
intermodal transportation of cargo or passengers in commerce and trade and support the interests,
purposes, and requirements of all 15 seaports.5
The FSTED Council is charged with carrying out the state’s economic development mission through
implementation of seaport capital improvement projects at the local level. The FSTED Council is
created within DOT and consists of the port directors of the 15 deepwater seaports and representatives
from DOT and the Department of Economic Opportunity (DEO).6
Under Florida law, a minimum of $25 million per year must be made available from the State
Transportation Trust Fund for the FSTED Program. The FSTED Council must develop guidelines and
recommendations for project funding. Council staff, DOT, and DEO must work in cooperation to review
projects and allocate funds in accordance with the schedule required for DOT to include these projects
in its tentative work program.7
DOT must include FSTED funding in its annual legislative budget request, including funding for FSTED
Council-approved projects which have been determined by DOT and DEO to be consistent with Florida
law. DOT must include the approved FSTED projects during the ensuing fiscal year in its tentative work
program. The total amount of funding to be allocated to the FSTED Program during the successive 4
fiscal years must also be included in DOT’s tentative work program.8
FSTED Program funds must be used to fund approved projects on a 50-50 matching basis with the
relevant deepwater seaport. However, program funds used to fund projects that involve the
rehabilitation of wharves, docks, berths, bulkheads, or similar structures require a 25 percent match of
funds. Program funds may also be used by the FSTED Council for data and analysis that will assist
Florida's seaports and international trade.9
Projects eligible for funding by grants under the FSTED Program are limited to the following port
facilities or port transportation projects:
1 S. 311.09(1), F.S.
2 Department of Transportation (DOT), Agency Analysis of 2022 Senate Bill 1038 p.2. (Dec. 6, 2021).
3 Id.
4 Ch. 90-136, Laws of Fla.
5 S. 311.07(1), F.S.
6 S. 311.09(1), F.S. Florida Ports Council, Florida Seaport Transportation and Economic Development Program,
https://flaports.org/about/florida-seaport-transportation-and-economic-development-program/ (last visited Dec. 15, 2021).
7 S. 311.07(2), F.S. DOT’s work program is developed pursuant to s. 339.135, F.S.
8 S. 311.07(9), F.S.
9 S. 311.07(3)(a), F.S.
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Transportation facilities within the jurisdiction of the port.
The dredging or deepening of channels, turning basins, or harbors.
The construction or rehabilitation of wharves, docks, structures, jetties, piers, storage facilities,
cruise terminals, automated people mover systems, or any facilities necessary or useful in
connection with any of the foregoing.
The acquisition of vessel tracking systems, container cranes, or other mechanized equipment
used in the movement of cargo or passengers in international commerce.
The acquisition of land to be used for port purposes.
The acquisition, improvement, enlargement, or extension of existing port facilities.
Environmental protection projects which are necessary because of requirements imposed by a
state agency as a condition of a permit or other form of state approval; which are necessary for
environmental mitigation required as a condition of a state, federal, or local environmental
permit; which are necessary for the acquisition of spoil disposal sites and improvements to
existing and future spoil sites; or which result from the funding of eligible projects.
Transportation facilities which are not otherwise part of DOT’s adopted work program.
Intermodal access projects.
Construction or rehabilitation of port facilities, excluding any park or recreational facilities, in
ports with operating revenues of $5 million or less, provided that such projects create economic
development opportunities, capital improvements, and positive financial returns to such ports.
Seaport master plan or strategic plan development or updates, including the purchase of data to
support such plans.10
To be eligible for consideration by the FSTED Council, a project must be consistent with the port
comprehensive master plan that is incorporated as part of the approved local government
comprehensive plan.11
Putnam County Port District
Created in 1967 by special act,12 the Putnam County Port District is a dependent special district
consisting of all of Putnam County. Its board consists of the Putnam County Board of County
Commissioners. The district operates an inland river port, located along the St. Johns River in the
county.
Putnam County proposes dredging a 5,000-foot branch channel on the St. Johns River from the current
barge berth to the St. Johns channel and adding a turning basin to enhance both navigability and
safety. The current depth is 7 feet at low water. The proposed dredging will increase the depth to 12
feet at low water, allowing the size and capacity of vessels able to visit the port to increase
substantially.13
Effect of the Bill
The bill adds Putnam County as a member the FSTED Council.
The bill provides that until July 1, 2024, Putnam County may apply for a grant through the FSTED
Council to perform a study examining the economic, technical, and operational viability of establishing a
port in Putnam County. The FSTED Council must evaluate the grant application pursuant to the
statutory provisions that govern the council’s review of other proposed port projects. 14 If approved, DOT
must include the feasibility study in its budget request for FSTED funding. Upon completion, the FSTED
10 S. 311.07(3)(a), F.S.
11 S. 311.07(3)(c), F.S.
12 Ch. 67-1961, Laws of Fla.
13 Attachment to e-mail from SaraLynn Ard, Legislative Aide to Rep. Payne, FW: PowerPoint (Jan. 21, 2022).
14 Sections 311.09(5)-(8), F.S., provide for the review and approval of FSTED projects including reviews for consistency with various
plans, economic benefit, readiness for construction, noncompetition with other Florida ports, and capacity within the seaport system.
The FSTED Council’s recommendations are reviewed by DOT for cons istency with various state-related transportation plans and by
DEO for economic benefits and consistency with the state’s economic goals. The council reviews DOT’s and DEO’s findings, and
projects not found to be consistent may not be funded.
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Council must review the study to determine if a port in Putnam County is viable. If the FSTED Council
does not approve the study, Putnam County’s membership on the council must terminate.
The bill reenacts various statutes which cross-reference the seaports making up the FSTED Council to
incorporate Putnam County into those statutes. These statutes include, but are not limited to, statutes
relating to coastal management, seaport funding, seaport security, the confidentiality of certain records
held by deepwater ports, exemptions from certain laws regarding stormwater management, and port
conceptual permits.
The bill has an effective date of July 1, 2022.
B. SECTION DIRECTORY:
Section 1 Amends s. 311.09, F.S., relating to the Florida Seaport Transportation and Economic
Development Council.
Section 2 Reenacts s. 163.3178, F.S., relating to coastal management.
Section 3 Reenacts s. 189.068, F.S., relating to special districts; authority for oversight; general
oversight review process.
Section 4 Reenacts s. 311.07, F.S., relating to Florida seaport transportation and economic
development funding.
Section 5 Reenacts s. 311.091, F.S., relating to entry into public-private infrastructure project
agreements for port-related public infrastructure projects.
Section 6 Reenacts s. 311.10, F.S., relating to the Strategic Port Investment Initiative.
Section 7 Reenacts s. 311.101, F.S., relating to the Intermodal Logistics Center Infrastructure
Support Program.
Section 8 Reenacts s. 311.12, F.S., relating to seaport security.
Section 9 Reenacts s. 311.121, .F.S., relating to qualifications, training, and certification of
licensed security officers at Florida’s seaports.
Section 10 Reenacts s. 311.14, F.S., relating to seaport planning.
Section 11 Reenacts s. 315.18, F.S., relating to the confidentiality of certain records held by
deepwater ports.
Section 12 Reenacts s. 320.20, F.S., relating to the disposition of license tax moneys.
Section 13 Reenacts s. 334.27, F.S., relating to governmental transportation entities’ property
acquired for transportation purposes; limitation on soil and groundwater contamination
liability.
Section 14 Reenacts s. 337.14, F.S., relating to application for qualification; certificate of
qualification; restrictions; request for hearing.
Section 15 Reenacts s. 373.406, F.S., relating to exemptions regarding the management and
storage of surface waters.
Section 16 Reenacts s. 373.4133, F.S., relating to port conceptual permits.
Section 17 Reenacts s. 373.4136, F.S., relating to the establishment and operation of mitigation
banks.
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Section 18 Reenacts s. 403.061, F.S., relating to department; powers and duties.
Section 19 Provides an effective date.
II. FISCAL ANALYSIS & ECONOMIC IMPACT STATEMENT
A. FISCAL IMPACT ON STATE GOVERNMENT:
1. Revenues:
None.
2. Expenditures:
If a study is approved by the FSTED Council, DOT must include the project as part of its Tentative
Work Program submission to the Legislature in FY 2023-24. The cost of the study is indeterminate
at this time, but any costs would be limited to available transportation revenues within the confines
of the Work Program.
B. FISCAL IMPACT ON LOCAL GOVERNMENTS:
1. Revenues:
None.
2. Expenditures:
None.
C. DIRECT ECONOMIC IMPACT ON PRIVATE SECTOR:
None.
D. FISCAL COMMENTS:
None.
III. COMMENTS
A. CONSTITUTIONAL ISSUES:
1. Applicability of Municipality/County Mandates Provision:
Not applicable. This bill does not appear to 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.
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IV. AMENDMENTS/COMMITTEE SUBSTITUTE CHANGES
On January 25, 2022, the Tourism, Infrastructure & Energy Subcommittee adopted one amendment and
reported the bill favorably as a committee substitute. The amendment:
Clarified that the feasibility study for a port in Putnam County must examine the economic, technical,
and operational viability of the port.
Required the FSTED Council to review the feasibility study and make a determination regarding the
viability of a port in Putnam County.
This analysis is drafted to the committee substitute as approved by the Tourism, Infrastructure & Energy
Subcommittee.
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1 A bill to be entitled
2 An act relating to the Florida Seaport Transportation
3 and Economic Development Council; amending s. 311.09,
4 F.S.; revising the membership of the Florida Seaport
5 Transportation and Economic Development Council to
6 include a representative of Putnam County; authorizing
7 Putnam County to apply for a grant for a port
8 feasibility study through the Florida Seaport
9 Transportation and Economic Development Council;
10 providing for the evaluation of the application;
11 requiring the Department of Transportation to include
12 the study in its budget request under certain
13 circumstances; requiring the council to review the
14 study and make a determination; terminating the
15 membership of Putnam County on the council under
16 certain circumstances; reenacting ss. 163.3178(2)(k),
17 (5), and (6), 189.068(6), 311.07(1) and (3)(a) and
18 (b), 311.091, 311.10(1) and (2), 311.101(2),
19 311.12(2)(a), (3), and (6)(a), 311.121(2) and (3)(a),
20 311.14(1), 315.18, 320.20(3) and (4), 334.27(1),
21 337.14(7), 373.406(12), 373.4133(2) and (10),
22 373.4136(6)(d), and 403.061(38) and (39), F.S.,
23 relating to coastal management, the oversight of
24 deepwater ports, Florida seaport transportation and
25 economic development funding, entry into public-
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26 private infrastructure project agreements for port -
27 related public infrastructure projects, the Strategic
28 Port Investment Initiative within the department, the
29 Intermodal Logistics Center Infrastructure Support
30 Program, seaport security, licensed security officers
31 at Florida seaports, seaport planning, the
32 confidentiality of certain records held by deepwater
33 ports, the disposition of license tax moneys, the
34 definition of the term "governmental transportation
35 entity," seaport contractor services, exemptions for
36 overwater piers, docks, or similar structures in
37 deepwater ports, port conceptual permits, the
38 authorized use of mitigation banks, and the duties of
39 the Department of Environmental Protection in
40 providing environmental resource permits,
41 respectively, to incorporate the amendment made to s.
42 311.09, F.S., in references thereto; providing an
43 effective date.
44
45 Be It Enacted by the Legislature of the State of Florida:
46
47 Section 1. Subsection (1) of section 311.09, Florida
48 Statutes, is amended, and subsection (13) is added to that
49 section, to read:
50 311.09 Florida Seaport Transportation and Economic
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51 Development Council.—
52 (1) The Florida Seaport Transportation and Economic
53 Development Council is created within the Department of
54 Transportation. The council consists of the following 18 17
55 members: the port director, or the port director's designee, of
56 each of the ports of Jacksonville, Port Canaveral, Port Citrus,
57 Fort Pierce, Palm Beach, Port Everglades, Miami, Port Manatee,
58 St. Petersburg, Putnam County, Tampa, Port St. Joe, Panama City,
59 Pensacola, Key West, and Fernandina; the secretary of the
60 Department of Transportation or his or her designee; and the
61 secretary of the Department of Economic Opportunity or his or
62 her designee.
63 (13) Until July 1, 2024, Putnam County may apply for a
64 grant through the Florida Seaport Transportation and Economic
65 Development Council to perform a study examining the economic,
66 technical, and operational viability of the establishment of a
67 port in Putnam County. The council shall evaluate the grant
68 application pursuant to subsections (5)–(8) and, if approved,
69 the Department of Transportation must include the feasibility
70 study in its budget request pursuant to subsection (9). The
71 council shall review the study upon completion to determine if a
72 port in Putnam County is viable. If the council does not approve
73 the study, the membership of Putnam County on the council must
74 terminate.
75 Section 2. For the purpose of incorporating the amendment
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76 made by this act to section 311.09, Florida Statutes, in
77 references thereto, paragraph (k) of subsection (2) and
78 subsections (5) and (6) of section 163.3178, Florida Statutes,
79 are reenacted to read:
80 163.3178 Coastal management.—
81 (2) Each coastal management element required by s.
82 163.3177(6)(g) shall be based on studies, surveys, and data; be
83 consistent with coastal resource plans prepared and adopted
84 pursuant to general or special law; and contain:
85 (k) A component which includes the comprehensive master
86 plan prepared by each deepwater port listed in s. 311.09(1),
87 which addresses existing port facilities and any proposed
88 expansions, and which adequately addresses the applicable
89 requirements of paragraphs (a)-(k) for areas within the port and
90 proposed expansion areas. Such component shall be submitted to
91 the appropriate local government at least 6 months prior to the
92 due date of the local plan and shall be integrated with, and
93 shall meet all criteria specified in, the coastal management
94 element. "The appropriate local government" means the
95 municipality having the responsibility for the area in which the
96 deepwater port lies, except that where no municipality has
97 responsibility, where a municipality and a county each have
98 responsibility, or where two or more municipalities each have
99 responsibility for the area in which the deepwater port lies,
100 "the appropriate local government" means the county which has
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101 responsibility for the area in which the deepwater port lies.
102 Failure by a deepwater port which is not part of a local
103 government to submit its component to the appropriate local
104 government shall not result in a local government being subject
105 to sanctions pursuant to s. 163.3184. However, a deepwater port
106 which is not part of a local government shall be subject to
107 sanctions pursuant to s. 163.3184.
108 (5) The appropriate dispute resolution process provided
109 under s. 186.509 must be used to reconcile inconsistencies
110 between port master plans and local comprehensive plans. In
111 recognition of the state's commitment to deepwater ports, th e
112 state comprehensive plan must include goals, objectives, and
113 policies that establish a statewide strategy for enhancement of
114 existing deepwater ports, ensuring that priority is given to
115 water-dependent land uses. As an incentive for promoting plan
116 consistency, port facilities as defined in s. 315.02(6) on lands
117 owned or controlled by a deepwater port as defined in s.
118 311.09(1), as of the effective date of this act shall not be
119 subject to development-of-regional-impact review provided the
120 port either successfully completes an alternative comprehensive
121 development agreement with a local government pursuant to ss.
122 163.3220-163.3243 or successfully enters into a development
123 agreement with the state land planning agency and applicable
124 local government pursuant to s. 380.032 or, where the port is a
125 department of a local government, successfully enters into a
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126 development agreement with the state land planning agency
127 pursuant to s. 380.032. Port facilities as defined in s.
128 315.02(6) on lands not owned or controlled by a deepwater port
129 as defined in s. 311.09(1) as of the effective date of this act
130 shall not be subject to development-of-regional-impact review
131 provided the port successfully enters into a development
132 agreement with the state land planning agency and applicable
133 local government pursuant to s. 380.032 or, where the port is a
134 department of a local government, successfully enters into a
135 development agreement with the state land planning agency
136 pursuant to s. 380.032.
137 (6) Each port listed in s. 311.09(1) and each local
138 government in the coastal area which has spoil disposal
139 responsibilities shall provide for or identify disposal sites
140 for dredged materials in the future land use and port elements
141 of the local comprehensive plan as needed to assure proper lo ng-
142 term management of material dredged from navigation channels,
143 sufficient long-range disposal capacity, environmental
144 sensitivity and compatibility, and reasonable cost and
145 transportation. The disposal site selection criteria shall be
146 developed in consultation with navigation and inlet districts
147 and other appropriate state and federal agencies and the public.
148 For areas owned or controlled by ports listed in s. 311.09(1)
149 and proposed port expansion areas, compliance with the
150 provisions of this subsection shall be achieved through
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151 comprehensive master plans prepared by each port and integrated
152 with the appropriate local plan pursuant to paragraph (2)(k).
153 Section 3. For the purpose of incorporating the amendment
154 made by this act to section 311.09, Florida Statutes, in a
155 reference thereto, subsection (6) of section 189.068, Florida
156 Statutes, is reenacted to read:
157 189.068 Special districts; authority for oversight;
158 general oversight review process.—
159 (6) This section does not apply to a deepwater port listed
160 in s. 311.09(1) which is in compliance with a port master plan
161 adopted pursuant to s. 163.3178(2)(k), or to an airport
162 authority operating in compliance with an airport master plan
163 approved by the Federal Aviation Administration, or to any
164 special district organized to operate health systems and
165 facilities licensed under chapter 395, chapter 400, or chapter
166 429.
167 Section 4. For the purpose of incorporating the amendment
168 made by this act to section 311.09, Florida Statutes, in
169 references thereto, subsection (1) and paragraphs (a) and (b) of
170 subsection (3) of section 311.07, Florida Statutes, are
171 reenacted to read:
172 311.07 Florida seaport transportation and economic
173 development funding.—
174 (1) There is created the Florida Seaport Transportation
175 and Economic Development Program within the Department of
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176 Transportation to finance port transportation or port facilities
177 projects that will improve the movement and intermodal
178 transportation of cargo or passengers in commerce and trade and
179 support the interests, purposes, and requirements of all ports
180 listed in s. 311.09.
181 (3)(a) Florida Seaport Transportation and Economic
182 Development Program funds shall be used to fund approved
183 projects on a 50-50 matching basis with any of the deepwater
184 ports, as listed in s. 311.09, which is governed by a public
185 body or any other deepwater port which is governed by a public
186 body and which complies with the water quality provisions of s.
187 403.061, the comprehensive master plan requirements of s.
188 163.3178(2)(k), and the local financial management and reporting
189 provisions of part III of chapter 218. However, program funds
190 used to fund projects that involve the rehabilitation of
191 wharves, docks, berths, bulkheads, or similar structures shall
192 require a 25-percent match of funds. Program funds also may be
193 used by the Seaport Transportation and Economic Development
194 Council for data and analysis that will assist Florida's
195 seaports and international trade.
196 (b) Projects eligible for funding by grants under the
197 program are limited to the following port facilities or port
198 transportation projects:
199 1. Transportation facilities within the jurisdiction of
200 the port.
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201 2. The dredging or deepening of channels, turning basins,
202 or harbors.
203 3. The construction or rehabilitation of wharves, do cks,
204 structures, jetties, piers, storage facilities, cruise
205 terminals, automated people mover systems, or any facilities
206 necessary or useful in connection with any of the foregoing.
207 4. The acquisition of vessel tracking systems, container
208 cranes, or other mechanized equipment used in the movement of
209 cargo or passengers in international commerce.
210 5. The acquisition of land to be used for port purposes.
211 6. The acquisition, improvement, enlargement, or extension
212 of existing port facilities.
213 7. Environmental protection projects which are necessary
214 because of requirements imposed by a state agency as a condition
215 of a permit or other form of state approval; which are necessary
216 for environmental mitigation required as a condition of a state,
217 federal, or local environmental permit; which are necessary for
218 the acquisition of spoil disposal sites and improvements to
219 existing and future spoil sites; or which result from the
220 funding of eligible projects listed in this paragraph.
221 8. Transportation facilities as defined in s. 334.03(30)
222 which are not otherwise part of the Department of
223 Transportation's adopted work program.
224 9. Intermodal access projects.
225 10. Construction or rehabilitation of port facilities as
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226 defined in s. 315.02, excluding any park or recreational
227 facilities, in ports listed in s. 311.09(1) with operating
228 revenues of $5 million or less, provided that such projects
229 create economic development opportunities, capital improvements,
230 and positive financial returns to such ports.
231 11. Seaport master plan or strategic plan development or
232 updates, including the purchase of data to support such plans.
233 Section 5. For the purpose of incorporating the amendment
234 made by this act to section 311.09, Florida Statutes, in a
235 reference thereto, section 311.091, Florida Statutes, is
236 reenacted to read:
237 311.091 Entry into public-private infrastructure project
238 agreements for port-related public infrastructure projects.—A
239 seaport listed in s. 311.09(1) may receive or solicit proposals
240 from and enter into a public-private infrastructure project
241 agreement with a private entity, or a consortium of private
242 entities, to build, operate, manage, maintain, or finance a
243 port-related public infrastructure project.
244 Section 6. For the purpose of incorporating the amendme nt
245 made by this act to section 311.09, Florida Statutes, in
246 references thereto, subsections (1) and (2) of section 311.10,
247 Florida Statutes, are reenacted to read:
248 311.10 Strategic Port Investment Initiative.—
249 (1) There is created the Strategic Port Investment
250 Initiative within the Department of Transportation. Beginning in
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251 fiscal year 2012-2013, a minimum of $35 million annually shall
252 be made available from the State Transportation Trust Fund to
253 fund the Strategic Port Investment Initiative. The Department of
254 Transportation shall work with the deepwater ports listed in s.
255 311.09 to develop and maintain a priority list of strategic
256 investment projects. Project selection shall be based on
257 projects that meet the state's economic development goal of
258 becoming a hub for trade, logistics, and export-oriented
259 activities by:
260 (a) Providing important access and major on-port capacity
261 improvements;
262 (b) Providing capital improvements to strategically
263 position the state to maximize opportunities in international
264 trade, logistics, or the cruise industry;
265 (c) Achieving state goals of an integrated intermodal
266 transportation system; and
267 (d) Demonstrating the feasibility and availability of
268 matching funds through local or private partners.
269 (2) Prior to making final project allocations, the
270 Department of Transportation shall schedule a publicly noticed
271 workshop with the Department of Economic Opportunity and the
272 deepwater ports listed in s. 311.09 to review the proposed
273 projects. After considering the comments received, the
274 Department of Transportation shall finalize a prioritized list
275 of potential projects.
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276 Section 7. For the purpose of incorporating the amendment
277 made by this act to section 311.09, Florida Statutes, in a
278 reference thereto, subsection (2) of section 311.101, Florida
279 Statutes, is reenacted to read:
280 311.101 Intermodal Logistics Center Infrastructure Support
281 Program.—
282 (2) For the purposes of this section, the term "intermodal
283 logistics center," including, but not limited to, an "inland
284 port," means a facility or group of facilities serving as a
285 point of intermodal transfer of freight in a specific area
286 physically separated from a seaport where activities relating to
287 transport, logistics, goods distribution, consolidation, or
288 value-added activities are carried out and whose activities and
289 services are designed to support or be supported by conveyance
290 or shipping through one or more seaports listed in s. 311.09.
291 Section 8. For the purpose of incorporating the amendment
292 made by this act to section 311.09, Florida Statutes, in
293 references thereto, paragraph (a) of subsection (2), subsection
294 (3), and paragraph (a) of subsection (6) of section 311.12,
295 Florida Statutes, are reenacted to read:
296 311.12 Seaport security.—
297 (2) SECURITY PLAN.—
298 (a) Each seaport listed in s. 311.09 shall adopt and
299 maintain a security plan specific to that seaport which provides
300 for a secure seaport infrastructure that promotes the safety and
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301 security of state residents and visitors and the flow of
302 legitimate trade and travel.
303 (3) SECURE AND RESTRICTED AREAS.—Each seaport listed in s.
304 311.09 must clearly designate in seaport security plans, and
305 clearly identify with appropriate signs and markers on the
306 premises of a seaport, all secure and restricted areas as
307 defined by 33 C.F.R. part 105.
308 (a)1. All seaport employees and other persons working at
309 the seaport who have regular access to secure or restricted
310 areas must comply with federal access control regulations as
311 prescribed in this section.
312 2. All persons and objects in secure and restricted areas
313 are subject to search by a sworn state-certified law enforcement
314 officer, a Class D seaport security officer certified under
315 Maritime Transportation Security Act of 2002 guidelines, or an
316 employee of the seaport security force certified under the
317 Maritime Transportation Security Act of 2002 guidelines.
318 3. Persons found in these areas without the proper
319 permission are subject to the trespass provisions of ss. 810.08
320 and 810.09.
321 (b) The seaport must provide clear notice of the
322 prohibition against possession of concealed weapons and other
323 contraband material on the premises of the seaport. Any person
324 in a restricted area who has in his or her possession a
325 concealed weapon, or who operates or has possession or control
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326 of a vehicle in or upon which a concealed weapon is placed or
327 stored, commits a misdemeanor of the first degree, punishable as
328 provided in s. 775.082 or s. 775.083. This paragraph does not
329 apply to active-duty certified federal or state law enforcement
330 personnel or persons so designated by the seaport director in
331 writing.
332 (c) During a period of high terrorist threat level, as
333 designated by the United States Department of Homeland Security,
334 the management or controlling authority of the port may
335 temporarily designate any part of the seaport property as a
336 secure or restricted area. The duration of such designation is
337 limited to the period in which the high terrorist threat level
338 is in effect or a port emergency exists.
339 (6) GRANT PROGRAM.—
340 (a) The Florida Seaport Transportation and Economic
341 Development Council shall establish a Seaport Security Grant
342 Program for the purpose of assisting in the implementation of
343 security plans and security measures at the seaports listed in
344 s. 311.09(1). Funds may be used for the purchase of equipment,
345 infrastructure needs, cybersecurity programs, and other security
346 measures identified in a seaport's approved federal security
347 plan. Such grants may not exceed 75 percent of the total cost of
348 the request and are subject to legislative appropriation.
349 Section 9. For the purpose of incorporating the amendment
350 made by this act to section 311.09, Florida Statutes, in
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351 references thereto, subsection (2) and paragraph (a) of
352 subsection (3) of section 311.121, Florida Statutes, are
353 reenacted to read:
354 311.121 Qualifications, training, and certification of
355 licensed security officers at Florida seaports.—
356 (2) The authority or governing board of each seaport
357 identified under s. 311.09 that is subject to the seaport
358 security standards referenced in s. 311.12 shall require that a
359 candidate for certification as a seaport security officer:
360 (a) Has received a Class D license as a security officer
361 under chapter 493.
362 (b) Has successfully completed the certified training
363 curriculum for a Class D license or has been determined by the
364 Department of Agriculture and Consumer Services to have
365 equivalent experience as established by rule of the department.
366 (c) Has completed the training or training equivalency and
367 testing process established by this section for becoming a
368 certified seaport security officer.
369 (3) The Seaport Security Officer Qualification, Training,
370 and Standards Coordinating Council is created under the
371 Department of Law Enforcement.
372 (a) The executive director of the Department of L aw
373 Enforcement shall appoint 11 members to the council, to include:
374 1. The seaport administrator of the Department of Law
375 Enforcement.
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376 2. The Commissioner of Education or his or her designee.
377 3. The director of the Division of Licensing of the
378 Department of Agriculture and Consumer Services.
379 4. The administrator of the Florida Seaport Transportation
380 and Economic Development Council.
381 5. Two seaport security directors from seaports designated
382 under s. 311.09.
383 6. One director of a state law enforcement academy.
384 7. One representative of a local law enforcement agency.
385 8. Two representatives of contract security services.
386 9. One representative of the Department of Highway Safety
387 and Motor Vehicles.
388 Section 10. For the purpose of incorporating the amendment
389 made by this act to section 311.09, Florida Statutes, in a
390 reference thereto, subsection (1) of section 311.14, Florida
391 Statutes, is reenacted to read:
392 311.14 Seaport planning.—
393 (1) The Department of Transportation shall develop, in
394 coordination with the ports listed in s. 311.09(1) and other
395 partners, a Statewide Seaport and Waterways System Plan. This
396 plan shall be consistent with the goals of the Florida
397 Transportation Plan developed pursuant to s. 339.155 and shall
398 consider needs identified in individual port master plans and
399 those from the seaport strategic plans required under this
400 section. The plan will identify 5-year, 10-year, and 20-year
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401 needs for the seaport system and will include seaport, waterway,
402 road, and rail projects that are needed to ensure the success of
403 the transportation system as a whole in supporting state
404 economic development goals.
405 Section 11. For the purpose of incorporating the amendment
406 made by this act to section 311.09, Florida Statutes, in a
407 reference thereto, section 315.18, Florida Statutes, is
408 reenacted to read:
409 315.18 Confidentiality of certain records held by
410 deepwater ports.—Any proposal or counterproposal exchanged
411 between a deepwater port listed in s. 311.09(1) and any
412 nongovernmental entity, relating to the sale, use, or lease of
413 land or of port facilities, and any financial records submitted
414 by any nongovernmental entity to such a deepwater port for the
415 purpose of the sale, use, or lease of land or of port
416 facilities, are confidential and exempt from s. 119.07(1) and s.
417 24(a), Art. I of the State Constitution. However, 30 days before
418 any such proposal or counterproposal is considered for approval
419 by the governing body of such a deepwater port, the proposal or
420 counterproposal shall cease to be exempt. If no proposal or
421 counterproposal is submitted to the governing body for approval,
422 such a proposal or counterproposal shall cease to be exempt 90
423 days after the cessation of negotiations.
424 Section 12. For the purpose of incorporating the amendment
425 made by this act to section 311.09, Florida Statutes, in
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426 references thereto, subsections (3) and (4) of section 320.20,
427 Florida Statutes, are reenacted to read:
428 320.20 Disposition of license tax moneys.—The revenue
429 derived from the registration of motor vehicles, including any
430 delinquent fees and excluding those revenues collected and
431 distributed under the provisions of s. 320.081, must be
432 distributed monthly, as collected, as follows:
433 (3) Notwithstanding any other provision of law except
434 subsections (1) and (2), $15 million shall be deposited annually
435 into the State Transportation Trust Fund solely for the purposes
436 of funding the Florida Seaport Transportation and Economic
437 Development Program as provided in chapter 311. Such revenues
438 shall be distributed on a 50-50 matching basis to any port
439 listed in s. 311.09(1) to be used for funding projects as
440 described in s. 311.07(3)(b). Such revenues may be assigned,
441 pledged, or set aside as a trust for the payment of principal or
442 interest on bonds, tax anticipation certificates, or any other
443 form of indebtedness issued by an individual port or appropriate
444 local government having jurisdiction thereof, or collectively by
445 interlocal agreement among any of the ports, or used to purchase
446 credit support to permit such borrowings. However, such debt is
447 not a general obligation of the state. The state covenants with
448 holders of such revenue bonds or other instruments of
449 indebtedness issued that it will not repeal or impair or amend
450 in any manner that will materially and adversely affect the
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451 rights of such holders so long as bonds authorized by this
452 section are outstanding. Any revenues that are not pledged to
453 the repayment of bonds authorized by this section may be used
454 for purposes authorized under the Florida Seaport Transportation
455 and Economic Development Program. This revenue source is in
456 addition to any amounts provided and appropriated in accordance
457 with s. 311.07. The Florida Seaport Transportation and Economic
458 Development Council shall approve the distribution of funds to
459 ports for projects that have been approved pursuant to s.
460 311.09(5)-(8). The council and the Department of Transportation
461 may perform acts required to facilitate and implement this
462 subsection. To better enable the ports to cooperate to their
463 mutual advantage, the governing body of each port may exercise
464 powers provided to municipalities or counties in s. 163.01(7)(d)
465 subject to chapter 311 and special acts, if any, pertaining to a
466 port. The use of funds provided pursuant to this subsection are
467 limited to eligible projects listed in this subsection. Income
468 derived from a project completed with the use of program funds,
469 beyond operating costs and debt service, is restricted solely to
470 further port capital improvements consistent with maritime
471 purposes. Use of such income for nonmaritime purposes is
472 prohibited. The revenues available under this subsection may not
473 be pledged to the payment of any bonds other than the Florida
474 Ports Financing Commission Series 1996 and Series 1999 Bonds
475 currently outstanding; however, such revenues may be pledged to
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476 secure payment of refunding bonds to refinance the Florida Ports
477 Financing Commission Series 1996 and Series 1999 Bonds.
478 Refunding bonds secured by revenues available under this
479 subsection may not be issued with a final maturity later than
480 the final maturity of the Florida Ports Financing Commission
481 Series 1996 and Series 1999 Bonds or which provide for higher
482 debt service in any year than is currently payable on such
483 bonds. Any revenue bonds or other indebtedness issued after July
484 1, 2000, other than refunding bonds shall be issued by the
485 Division of Bond Finance at the request of the Department of
486 Transportation pursuant to the State Bond Act.
487 (4) Notwithstanding any other provision of law except
488 subsections (1), (2), and (3), $10 million shall be deposited
489 annually into the State Transportation Trust Fund solely for the
490 purposes of funding the Florida Seaport Transportation and
491 Economic Development Program as provided in chapter 311 and for
492 funding seaport intermodal access projects of statewide
493 significance as provided in s. 341.053. Such revenues shall be
494 distributed to any port listed in s. 311.09(1), to be used for
495 funding projects as follows:
496 (a) For any seaport intermodal access projects that are
497 identified in the 1997-1998 Tentative Work Program of the
498 Department of Transportation, up to the amounts needed to offset
499 the funding requirements of this section.
500 (b) For seaport intermodal access projects as described in
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501 s. 341.053(6) which are identified in the 5-year Florida Seaport
502 Mission Plan as provided in s. 311.09(3). Funding for such
503 projects shall be on a matching basis as mutually determined by
504 the Florida Seaport Transportation and Economic Development
505 Council and the Department of Transportation if a minimum of 25
506 percent of total project funds come from any port funds, local
507 funds, private funds, or specifically earmarked federal funds.
508 (c) On a 50-50 matching basis for projects as described in
509 s. 311.07(3)(b).
510 (d) For seaport intermodal access projects that involve
511 the dredging or deepening of channels, turning basins, or
512 harbors; or the rehabilitation of wharves, docks, or similar
513 structures. Funding for such projects requires a 25 percent
514 match of the funds received pursuant to this subsection.
515 Matching funds must come from port funds, federal funds, local
516 funds, or private funds.
517
518 Such revenues may be assigned, pledged, or set aside as a trust
519 for the payment of principal or interest on bonds, tax
520 anticipation certificates, or other form of indebtedness issued
521 by an individual port or appropriate local government having
522 jurisdiction thereof, or collectively by interlocal agreement
523 among any of the ports, or used to purchase credit support to
524 permit such borrowings. However, such debt is not a general
525 obligation of the state. This state covenants with holders of
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526 such revenue bonds or other instruments of indebtedness issued
527 hereunder that it will not repeal, impair, or amend this
528 subsection in a manner that will materially and adver sely affect
529 the rights of holders while bonds authorized by this subsection
530 remain outstanding. Revenues that are not pledged to the
531 repayment of bonds as authorized by this section may be used for
532 purposes authorized under the Florida Seaport Transportati on and
533 Economic Development Program. This revenue source is in addition
534 to any amounts provided for and appropriated in accordance with
535 s. 311.07 and subsection (3). The Florida Seaport Transportation
536 and Economic Development Council shall approve distribu tion of
537 funds to ports for projects that have been approved pursuant to
538 s. 311.09(5)-(8), or for seaport intermodal access projects
539 identified in the 5-year Florida Seaport Mission Plan as
540 provided in s. 311.09(3) and mutually agreed upon by the Florida
541 Seaport Transportation and Economic Development Council and the
542 Department of Transportation. All contracts for actual
543 construction of projects authorized by this subsection must
544 include a provision encouraging employment of participants in
545 the welfare transition program. The goal for such employment is
546 25 percent of all new employees employed specifically for the
547 project, unless the Department of Transportation and the Florida
548 Seaport Transportation and Economic Development Council
549 demonstrate that such a requirement would severely hamper the
550 successful completion of the project. In such an instance,
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551 CareerSource Florida, Inc., shall establish an appropriate
552 percentage of employees who are participants in the welfare
553 transition program. The council and the Department of
554 Transportation may perform such acts as are required to
555 facilitate and implement the provisions of this subsection. To
556 better enable the ports to cooperate to their mutual advantage,
557 the governing body of each port may exercise powers provided to
558 municipalities or counties in s. 163.01(7)(d) subject to the
559 provisions of chapter 311 and special acts, if any, pertaining
560 to a port. The use of funds provided pursuant to this subsection
561 is limited to eligible projects listed in this subsection. The
562 revenues available under this subsection may not be pledged to
563 the payment of any bonds other than the Florida Ports Financing
564 Commission Series 1996 and Series 1999 Bonds currently
565 outstanding; however, such revenues may be pledged to secure
566 payment of refunding bonds to refinance the Florida Ports
567 Financing Commission Series 1996 and Series 1999 Bonds.
568 Refunding bonds secured by revenues available under this
569 subsection may not be issued with a final maturity later than
570 the final maturity of the Florida Ports Financing Commission
571 Series 1996 and Series 1999 Bonds and may not provide for higher
572 debt service in any year than is currently payable on such
573 bonds. Any revenue bonds or other indebtedness issued after July
574 1, 2000, other than refunding bonds shall be issued by the
575 Division of Bond Finance at the request of the Department of
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576 Transportation pursuant to the State Bond Act.
577 Section 13. For the purpose of incorporating the amendment
578 made by this act to section 311.09, Florida Statutes, in a
579 reference thereto, subsection (1) of section 334.27, Florida
580 Statutes, is reenacted to read:
581 334.27 Governmental transportation entities; property
582 acquired for transportation purposes; limitation on soil or
583 groundwater contamination liability.—
584 (1) For the purposes of this section, the term
585 "governmental transportation entity" means the department; an
586 authority created pursuant to chapter 343, chapter 348, or
587 chapter 349; airports as defined in s. 332.004(14); a port
588 enumerated in s. 311.09(1); a county; or a municipality.
589 Section 14. For the purpose of incorporating the amendment
590 made by this act to section 311.09, Florida Statutes, in a
591 reference thereto, subsection (7) of section 337.14, Florida
592 Statutes, is reenacted to read:
593 337.14 Application for qualification; certificate of
594 qualification; restrictions; request for hearing.—
595 (7) A "contractor" as defined in s. 337.165(1)(d) or his
596 or her "affiliate" as defined in s. 337.165(1)(a) qualified with
597 the department under this section may not also qualify u nder s.
598 287.055 or s. 337.105 to provide testing services, construction,
599 engineering, and inspection services to the department. This
600 limitation does not apply to any design-build prequalification
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601 under s. 337.11(7) and does not apply when the department
602 otherwise determines by written order entered at least 30 days
603 before advertisement that the limitation is not in the best
604 interests of the public with respect to a particular contract
605 for testing services, construction, engineering, and inspection
606 services. This subsection does not authorize a contractor to
607 provide testing services, or provide construction, engineering,
608 and inspection services, to the department in connection with a
609 construction contract under which the contractor is performing
610 any work. Notwithstanding any other provision of law to the
611 contrary, for a project that is wholly or partially funded by
612 the department and administered by a local governmental entity,
613 except for a seaport listed in s. 311.09 or an airport as
614 defined in s. 332.004, the entity performing design and
615 construction engineering and inspection services may not be the
616 same entity.
617 Section 15. For the purpose of incorporating the amendment
618 made by this act to section 311.09, Florida Statutes, in a
619 reference thereto, subsection (12) of section 373.406, Florida
620 Statutes, is reenacted to read:
621 373.406 Exemptions.—The following exemptions shall apply:
622 (12) An overwater pier, dock, or a similar structure
623 located in a deepwater port listed in s. 311.09 is not
624 considered to be part of a stormwater management system for
625 which this chapter or chapter 403 requires stormwater from
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626 impervious surfaces to be treated if:
627 (a) The port has a stormwater pollution prevention plan
628 for industrial activities pursuant to the National Pollutant
629 Discharge Elimination System Program; and
630 (b) The stormwater pollution prevention plan also provides
631 similar pollution prevention measures for other activities that
632 are not subject to the National Pollutant Discharge Elimination
633 System Program and that occur on the port's overwater piers,
634 docks, and similar structures.
635 Section 16. For the purpose of incorporating the amendment
636 made by this act to section 311.09, Florida Statutes, in
637 references thereto, subsections (2) and (10) of section
638 373.4133, Florida Statutes, are reenacted to read:
639 373.4133 Port conceptual permits.—
640 (2) Any port listed in s. 311.09(1) may apply to the
641 department for a port conceptual permit, including any
642 applicable authorization under chapter 253 to use sovereignty
643 submerged lands under a joint coastal permit pursuant to s.
644 161.055 or an environmental resource permit issued pursuant to
645 this part, for all or a portion of the area within the
646 geographic boundaries of the port. A private entity with a
647 controlling interest in property used for private industrial
648 marine activities in the immediate vicinity of a port listed in
649 s. 311.09(1) may also apply for a port conceptual permit under
650 this section. A port conceptual permit may be issued for a
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651 period of up to 20 years and extended one time for an additional
652 10 years. A port conceptual permit constitutes the state's
653 conceptual certification of compliance with state water quality
654 standards for purposes of s. 401 of the Clean Water Act and the
655 state's conceptual determination that the activities contained
656 in the port conceptual permit are consistent with the state
657 coastal zone management program.
658 (10) In lieu of meeting the generally applicable
659 stormwater design standards in rules adopted under this part,
660 which create a presumption that stormwater discharged from the
661 system will meet the applicable state water quality standards in
662 the receiving waters, any port listed in s. 311.09(1) may
663 propose alternative stormwater treatment and design criteria for
664 the construction, operation, and maintenance of stormwater
665 management systems serving overwater piers. The proposal shall
666 include such structural components or best management practices
667 to address the stormwater discharge from the pier, including
668 consideration of activities conducted on the pier, as are
669 necessary to provide reasonable assurance that stormwater
670 discharged from the system will meet the applicable state water
671 quality standards in the receiving waters.
672 Section 17. For the purpose of incorporating the amendment
673 made by this act to section 311.09, Florida Statutes, in a
674 reference thereto, paragraph (d) of subsection (6) of section
675 373.4136, Florida Statutes, is reenacted to read:
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676 373.4136 Establishment and operation of mitigation banks. —
677 (6) MITIGATION SERVICE AREA.—The department or water
678 management district shall establish a mitigation service area
679 for each mitigation bank permit. The department or water
680 management district shall notify and consider comments received
681 on the proposed mitigation service area from each local
682 government within the proposed mitigation service area. Except
683 as provided herein, mitigation credits may be withdrawn and used
684 only to offset adverse impacts in the mitigation service area.
685 The boundaries of the mitigation service area shall depend upon
686 the geographic area where the mitigation bank could reasonably
687 be expected to offset adverse impacts. Mitigation service areas
688 may overlap, and mitigation service areas for two or more
689 mitigation banks may be approved for a regional watershed.
690 (d) If the requirements in s. 373.414(1)(b) and (8) are
691 met, the following projects or activities regulated under this
692 part shall be eligible to use a mitigation bank, regardless of
693 whether they are located within the mitigation service area:
694 1. Projects with adverse impacts partially located within
695 the mitigation service area.
696 2. Linear projects, such as roadways, transmission lines,
697 distribution lines, pipelines, railways, or seaports listed in
698 s. 311.09(1).
699 3. Projects with total adverse impacts of less than 1 acre
700 in size.
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701 Section 18. For the purpose of incorporating the amend ment
702 made by this act to section 311.09, Florida Statutes, in
703 references thereto, subsections (38) and (39) of section
704 403.061, Florida Statutes, are reenacted to read:
705 403.061 Department; powers and duties.—The department
706 shall have the power and the duty to control and prohibit
707 pollution of air and water in accordance with the law and rules
708 adopted and promulgated by it and, for this purpose, to:
709 (38) Provide a supplemental permitting process for the
710 issuance of a joint coastal permit pursuant to s. 1 61.055 or
711 environmental resource permit pursuant to part IV of chapter
712 373, to a port listed in s. 311.09(1), for maintenance dredging
713 and the management of dredged materials from maintenance
714 dredging of all navigation channels, port harbors, turning
715 basins, and harbor berths. Such permit shall be issued for a
716 period of 5 years and shall be annually extended for an
717 additional year if the port is in compliance with all permit
718 conditions at the time of extension. The department is
719 authorized to adopt rules to implement this subsection.
720 (39) Provide a supplemental permitting process for the
721 issuance of a conceptual joint coastal permit pursuant to s.
722 161.055 or environmental resource permit pursuant to part IV of
723 chapter 373, to a port listed in s. 311.09(1), for dredging and
724 the management of materials from dredging and for other related
725 activities necessary for development, including the expansion of
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726 navigation channels, port harbors, turning basins, harbor
727 berths, and associated facilities. Such permit shal l be issued
728 for a period of up to 15 years. The department is authorized to
729 adopt rules to implement this subsection.
730
731 The department shall implement such programs in conjunction with
732 its other powers and duties and shall place special emphasis on
733 reducing and eliminating contamination that presents a threat to
734 humans, animals or plants, or to the environment.
735 Section 19. This act shall take effect July 1, 2022.
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CS/CS/HB 959
HOUSE OF REPRESENTATIVES STAFF ANALYSIS
BILL #: CS/CS/HB 959 Department of Financial Services
SPONSOR(S): Finance & Facilities Subcommittee, Insurance & Banking Subcommittee, LaMarca
TIED BILLS: IDEN./SIM. BILLS: CS/SB 1874
REFERENCE ACTION ANALYST STAFF DIRECTOR or
BUDGET/POLICY CHIEF
1) Insurance & Banking Subcommittee 16 Y, 0 N, As CS Herendeen Luczynski
2) Finance & Facilities Subcommittee 18 Y, 0 N, As CS Lloyd Lloyd
3) Appropriations Committee 24 Y, 0 N Lee Pridgeon
4) Commerce Committee Herendeen Hamon
SUMMARY ANALYSIS
The bill makes changes to programs of the Department of Financial Services (DFS):
Amends several laws related to a multi-year upgrade to the state’s financial systems, known as the
PALM Project (Planning, Accounting, and Ledger Management).
Makes Division of Rehabilitation and Liquidation employees part of the State Group Insurance
Program.
Transfers the Stop Inmate Fraud Program from the Division of Public Assistance Fraud to the
Department of Economic Opportunity.
Reduces penalties and creates educational tools within the Division of Workers’ Compensation:
o Changes the definition of “employer” used in workers’ compensation law;
o Requires an online tutorial for persons seeking an exemption from the workers’ compensation law;
o Lengthens a deadline for non-compliant employers to submit payroll records for penalty calculation;
o Reduces penalties for employers with no prior incidents of non-compliance;
o Requests an exemption from the legislative rule ratification process for reimbursement manuals that
govern payments to ambulatory surgical centers, healthcare providers, and hospitals;
o Provides that a required notice of rights may be sent to employees by mail or email; and
o Eliminates a requirement for in-person payroll audits of some construction businesses.
In the Division of State Fire Marshal, the bill updates boiler regulations related to inspections and
deletes a $50 exam fee; makes changes to the certification requirements for firefighters and fire safety
inspectors; and permits the use of grant funding to pay for tools and protective clothing.
Amends licensing requirements for embalmers and funeral directors regulated by the Division of
Funeral, Cemetery, and Consumer Services.
Makes process served upon the Chief Financial Officer (CFO) binding on an insurer when DFS notifies
the insurer that process is available on a secure online portal;
Amends laws of the Division of Insurance Agent and Agency Services to:
o Add an exemption to the examination requirement for the all-lines adjuster license;
o Provide additional authority for investigation of licensees;
o Allow unaffiliated insurance agents to adjust claims without surrendering their appointments;
o Revise statutes related to the use of fingerprints in background checks, to comply with federal law;
o Create notice requirements for insurance agencies that stop doing business;
o Clarify existing laws for title agents and agencies; and
o Modifies existing laws for public adjuster compensation, qualifications and bonding requirements.
Transfers the Florida Patient’s Compensation Fund to the CFO until dissolution by December 31, 2023.
The bill has an indeterminate fiscal impact on state and local government and the private sector.
The bill provides an effective date of July 1, 2022; except otherwise provided.
FULL ANALYSIS
This docum ent does not reflect the intent or official position of the bill sponsor or House of Representatives .
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I. SUBSTANTIVE ANALYSIS
A. EFFECT OF PROPOSED CHANGES:
Planning, Accounting, and Ledger Management (PALM) Project
Since 2014, the Department of Financial Services (DFS) has been upgrading its financial systems,
known as the Cash Management Subsystem (CMS) and the Florida Accounting Information Resource
subsystem (FLAIR), which were developed in the 1970s and implemented in the 1980s. 1
Effect of the Bill
Amendments reflect the transition to the new financial system, called Florida PALM (Planning,
Accounting, and Ledger Management) which has begun. A task force that developed a business plan
for the new financial and cash management system is disbanded. Technical changes are made
because agencies will no longer need to post a journal transfer to notify the Chief Financial Officer
(CFO) that a charge-back is needed. The term “Cash Management Subsystem” is replaced with
“Financial Management Subsystem.” 2
Division of Rehabilitation and Liquidation
The DFS Division of Rehabilitation and Liquidation serves as the receiver whenever an insolvent
Florida insurer is ordered into rehabilitation or liquidation. The division has 51 employees and 14
retirees who participate in the Florida Retirement System; these persons have not been part of the
State Group Insurance Program (SGI Program), because their salaries and benefits are funded by
assets managed by the division rather than state appropriations. To be eligible for participation in the
SGI Program, an employee must be paid by a state warrant. The SGI Program includes health and
welfare insurance benefits for active and retired state employees and their families, including: health
insurance; flexible spending and health savings accounts; life insurance; and dental, vision, and
supplemental insurance products.3
Effect of the Bill
The bill makes full- and part-time state employees, retired employees, and surviving spouses of
employees of the Division of Rehabilitation and Liquidation eligible for the SGI Program, beginning with
the 2023 plan year.
The bill amends the definitions for full- and part-time state employees, retirees, and surviving spouses
to make such persons eligible for benefits even though employees of the Division of Rehabilitation and
Liquidation are not paid by state warrant. The cost of employee health insurance would continue to be
paid by estates that are liquidated by the division; therefore, no state appropriations are needed. The
division would no longer have the administrative burden of procuring health insurance on its own in the
private market.
The division would be responsible for paying the monthly premiums that currently apply to early
retirees, as follows:
1 S. 17.0315, F.S.
2 Florida Department of Financial Services, Florida PALM, https://www.myfloridacfo.com/floridapalm/ (last visited Feb. 14,
2022).
3 S. 110.123, F.S.
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Current Premiums for "Early Retirees"4 Monthly Cost
High Deductible Plan – Individual $736.80
High Deductible Plan – Family $1,632.05
Standard Plan – enhance benefits – Individual $805.12
Standard Plan – enhance benefits – Family $1,801.08
Division of Accounting and Auditing
Every state and local government entity provides its financial information to DFS annually, so DFS can
prepare annual financial statements for the state of Florida and provide an online clearinghouse for the
financial statements of every county, municipality, and special district in Florida. The Florida Open
Financial Statement System is open to public inspection. 5
Effect of the Bill
The bill changes the name of the state’s annual report from “comprehensive annual financial report 6” to
“annual comprehensive financial report.” The bill also specifies the electronic file format (XBRL) local
governments must use to file audits and financial reports with the Florida Open Financial Statement
System. This is intended to create efficiencies in local government financial reporting and implement
the recommendations of the OPPAGA Local Efficiency Task Force. 7
Division of Public Assistance Fraud
Since 2011, DFS has been responsible for investigations of public assistance fraud. 8
The Stop Inmate Fraud Program provides for the sharing of correctional records that are open to public
inspection with state agencies involved in fraud detection, so the state can compare correctional
records with records of the Department of Children and Families (DCF) and the Department of
Economic Opportunity (DEO), to identify inmates receiving benefits or reemployment assistance. 9
Correctional records may also be matched against the client files of any other state or local agency as
needed to identify persons who are wrongfully receiving benefits. 10
Florida law directs DFS to establish procedures and implement the record-sharing program, conduct
database searches, and share relevant results with counties where benefits such as food stamps,
Medicaid, and cash assistance originate.11 Results may also be shared with the Child Support
Enforcement Program of the Department of Revenue to locate persons who are not paying child
support, and to the Social Security Administration, to reduce federal entitlement fraud in Florida. 12
The DFS Division of Public Assistance Fraud (PAF) receives corrections data and transmits the data to
the agencies listed in s. 414.40, F.S., as part of an interagency agreement. DCF performs the initial
screening of incarceration status of persons receiving public assistance. Investigators employed by the
PAF act on referrals from DCF. Investigators can obtain the incarceration status of individuals under
investigation from the website of the Department of Corrections. DFS has not promulgated rules for the
Stop Inmate Fraud Program and does not anticipate any costs associated with the transfer to DEO.
4 Ch. 2021-36, Laws of Fla., pp. 425-426.
5 S. 218.32(1)(h), F.S.
6 S. 216.102(3)(b), F.S.
7 Department of Financial Services (DFS), Agency Analysis of 2022 CS/CS/House Bill 959, pg. 6 (Feb. 1, 2022).
8 SB 2156 (2011) moved the Stop Inmate Fraud Program from the Department of Law Enforcement to the Department of
Financial Services.
9 S. 414.40, F.S.
10 S. 414.40(2)(d), F.S.
11 S. 414.40(2), F.S.
12 S. 414.40(2)(e), F.S.
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Florida law provides two methods for reorganizations within the executive branch: 1) An existing
agency or department may be transferred to another agency or department; or 2) A unit of an existing
agency or department may be merged into another agency or department. Any funds allocated to the
agency, department, or program being transferred move to the agency or department accepting the
transfer. Applicable administrative rules remain in effect until they are changed by rulemaking
promulgated by the agency that accepted the transfer. 13
Effect of the Bill
The bill transfers the Stop Inmate Fraud Program from PAF to DEO by merging the record-sharing
program into the DEO. The bill states that a type two transfer is intended and directs DEO to implement
the Stop Inmate Fraud Program and share the results of data-matching with counties where such
benefits originated. In addition to sharing results with the Child Support Enforcement Program and the
Social Security Administration, DEO may share results with PAF.
There is no funding from either DFS or DEO associated with the transfer, and PAF has not promulgated
rules for the record-sharing program. However, the transfer is proposed in connection with a
recommended appropriation in the Governor’s proposed budget for the 2022-2023 fiscal year14 of $4.2
million in recurring contracted services.
DEO proposes to use a single vendor to monitor state correctional and county jail data for state
agencies that are affected by benefit fraud, including the Agency for Health Care Administration
(Medicaid), DCF (SNAP and TANF), DEO (Reemployment Assistance), and Child Support Enforcement
(Department of Revenue).
Division of Workers’ Compensation
Workers’ compensation is a no-fault system that provides medical benefits and compensation for lost
wages when an employee is injured or killed in the course of employment. Employers must secure
coverage, and may do so by purchasing insurance from an authorized carrier or through an employee-
leasing agreement, qualifying as a self-insurer, or purchasing coverage from the Florida Workers’
Compensation Joint Underwriting Association, Inc. (FWCJUA)15, which is the state-sponsored insurer of
last resort. In return for providing compensation, the employer is relieved of liability for workplace
injuries and may only be sued for intentional acts that result in injury or death. 16
Definition of Employer
Chapter 440, F.S., includes a specific definition of “employer” for the purposes of workers’
compensation, at s. 440.02(16)(a), F.S., which states:
“Employer” means the state and all political subdivisions thereof,
all public and quasi-public corporations therein, every person
carrying on any employment, and the legal representative of a
deceased person or the receiver or trustees of any person.
“Employer” also includes employment agencies, employee leasing
companies, and similar agents who provide employees to other
persons. If the employer is a corporation, parties in actual control
of the corporation, including, but not limited to, the president,
officers who exercise broad corporate powers, directors, and all
13 S. 20.06, F.S.
14 Freedom First Budget for Fiscal Year 2022-23, Department of Economic Opportunity, Stop Inmate Fraud Program,
http://www.freedomfirstbudget.com/web% 20forms/Budget/BudgetIssueDetail.as px?p=Stop% 20inmate%20fraud&AgencyT
itle=ECONOMIC%20OPPORTUNITY% 20%3E%20WORKFORCE%20SERV ICES%20(P rogram)%20%3E%20REEMPLO
YMENT%20ASSISTANCE%20PROGRAM%20% 3E%20&si=40200200&pc=1102000000&icd=8100850&title=S TOP%20I
NMATE%20FRAUD%20P ROGRAM (last visited Feb. 14, 2022).
15 S. 627.311(5)(a), F.S.
16 Ss. 440.015, 440.09, 440.10, 440.38, and 627.313, F.S.
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shareholders who directly or indirectly own a controlling interest in
the corporation, are considered the employer for the purposes of
ss. 440.105, 440.106, and 440.107.
The meaning of the words “similar agents” was disputed in a lawsuit brought against the FWCJUA,
which refused to issue a policy to an out-of-state talent agency doing business in Florida because the
talent agency was not licensed in Florida as an employee leasing company.
The question of whether the FWCJUA was required to issue a policy to the talent agency was not
resolved, but the First District Court of Appeal held that the use of the words “similar agents” in the
definition of employer supported the conclusion that the talent agency was an employer subject to the
workers’ compensation law, even though the talent agency was not an employee leasing company
subject to licensure in Florida.17
Effect of the Bill
The bill deletes the works “similar agents” from the statutory definition of employer used in the Workers’
Compensation Law.18
Exemptions
All private sector non-construction businesses with four or more employees must have workers’
compensation coverage for employees, and may provide coverage by purchasing insurance or
qualifying as a self-insurer. In the construction industry, coverage is required for every employee, even
if a business consists of a sole proprietor.19
Corporate officers identified in a charter or articles of incorporation filed with the Division of
Corporations of the Department of State may elect an exemption from Florida’s Workers’
Compensation Law20 by electronically submitting a form and paying a $50 fee to the DFS Division of
Workers’ Compensation (DWC). By doing so, the exempt officer indicates that he or she is not covered
by workers’ compensation insurance, and not entitled to benefits in the event of injury. In the
construction industry, no more than three corporate officers may elect such exemptions. 21
If a corporate officer elects an exemption, or DWC revokes an exemption, DWC sends a notice to any
carrier the corporate officer identified in his or her application for exemption. 22
Effect of the Bill
The bill adds an online tutorial to the exemption application process to ensure that business owners
receive accurate information and understand the penalties that can result from violations of the
coverage and compliance requirements. Corporate officers would have to complete the online tutorial to
obtain an exemption. DWC has videos on a variety of topics posted on its website.
Additional changes include:
Applicants must provide the Federal Employer Identification Number of their business rather
than a personal Social Security number;
A notice would be added to the Certificate of Election to be Exempt, stating that the certificate is
not a license issued by the Department of Business and Professional Regulation.
17 Florida Work ers’ Compensation Joint Underwriting Association, Inc. v. American Residuals and Talent, Inc. , 284 So.3d
1115, 1119 (Fla. 1st DCA 2019).
18 See ch. 440, F.S.
19 S. 440.02(17)(b)2, F.S.
20 Ch. 440, F.S.
21 Ss. 440.02(15)(a) and 440.05, F.S.
22 S. 440.05(3), F.S.
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A provision that requires exempt corporate officers in the construction industry to maintain
business records would be deleted.
And DWC would send electronic notice that a corporate officer has elected an exemption, or
has been issued a notice of revocation only upon the request of an insurance carrier, and thus
avoid the cost of mailing notices (which can be retrieved online) to any carrier(s) the corporate
officer identified in his or her application for exemption.
The proposed effective date for changes to s. 440.05, F.S., is January 1, 2023.
Compliance
DWC investigators visit worksites around the state to identify businesses that are required to secure the
payment of workers’ compensation for their employees but fail to do so.
If an investigator identifies employees who are not covered by workers’ compensation insurance and do
not have an exemption from the law, the investigator issues a stop-work order and advises the
employer that business records reflecting payroll during the two years prior to the stop-work order are
due within 10 business days.23
If there is reason to believe an employer has materially misrepresented the number of employees on
the payroll, concealed information about injuries or accidents that would affect the amount of premium
due to the insurer, or misclassified employee duties to avoid paying appropriate premium, the
investigator issues a request for business records to determine if a penalty is warranted. If the employer
does not produce business records within 10 business days, the investigator serves a stop-work
order.24
Stop-work orders cannot be released until the employer pays the penalty in full. 25 However, stop-work
orders may be conditionally released if the employer secures compensation for all employees and
provides proof of insurance to DWC, pays a $1,000 down-payment toward the assessed penalty, and
enters into a payment agreement or pays the penalty in full.26 DWC will not enter into a payment
agreement with an employer that has defaulted on a prior payment agreement; in such cases, DWC
reinstates a stop-work order that had been conditionally released.27 DWC posts information about stop-
work orders on its website for five years and is required to update such orders daily. 28
Penalties must be equal to the greater of: two times the premium the employer would have paid,
according to the employer’s payroll records, based on the approved manual rates for every non-exempt
employee who was not covered by workers’ compensation insurance during any period of time within
the two years prior to service of the stop-work order; or $1,000.29
If an employer fails to submit business records for the calculation of a penalty, or the employer’s
business records are not sufficient to determine an employer’s payroll during the two years prior to
issuance of a stop-work order, the law directs DWC to calculate a penalty for each employee, corporate
officer, sole proprietor, or partner based upon the statewide average weekly wage 30 multiplied by 1.5.31
The law provides two credits that may reduce a penalty assessed by DWC:
23 S. 440.107(3)(a)(c) and (f), and 440.107(7)(a), F.S.
24 S. 440.107(3)(a)(b)(c) and (f) and 440.107(7)(a), F.S.
25 S. 440.107(7)(a), F.S.
26 Id.
27 R. 69L-6.025, F.A.C.
28 S. 440.107(7)(a), F.S.
29 S. 440.107(7)(d)1, F.S
30 Pursuant to s. 440.12(2)(b), F.S., the “statewide average weekly wage” means the average weekly wage paid by
employers subject to the Florida Reemployment Assistance Program Law as reported to the Department of Economic
Opportunity (DEO) for the four calendar quarters ending each June 30, which average weekly wage shall be determined
by DEO on or before November 30 of each year and shall be used in determining the maximum weekly compensation
rate with respect to injuries occurring in the calendar year immediately following.
31 S. 440.107(7)(e), F.S.,
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An employer who has not previously been issued a stop-work order or order of penalty
assessment, and has purchased insurance to comply with the workers’ compensation law, may
receive a credit equal to the initial payment of the estimated annual policy premium, so long as
proof of coverage and payment of the initial premium is provided to DWC within 28 days of
service of the stop-work order or penalty assessment.32
An employer who has not previously been issued a stop-work order or order of penalty
assessment may receive a 25 percent reduction in the assessed penalty if the employer
provides business records to DWC within 10 business days of receipt of a written request for
such records.33
DWC must reinstate the stop-work order and make the unpaid penalty immediately due if the employer
fails to pay the penalty or enter into a payment agreement with the division within 28 days of the stop-
work order.34 Penalty orders are rarely calculated and served within 28 days of the stop-work order;
thus, the law requires the employer to enter into a payment agreement before the employer knows the
amount of the penalty.
Effect of the Bill
The bill makes changes to workers’ compensation enforcement and compliance laws to increase the
likelihood of compliance and make penalties better reflect the type of violation the law addresses.
Specifically, the law makes business records due 21 days after receipt of a written request from DWC
(rather than 10 business days), and makes payment of the penalty, or execution of a payment
agreement, due within 21 days of service of the penalty assessment (rather than 28 days after service
of the stop-work order).
The two-year penalty period used for calculation of penalty would be reduced to one year for employers
who have not previously been issued a stop-work order and order of penalty assessment. The penalty
period would remain two years for employers that have previously been issued orders for non-
compliance with workers’ compensation law.
DWC would continue to post stop-work orders on its website for five years, but the requirement that the
website be updated daily would be eliminated.
Credits that may reduce a penalty would be adjusted:
The credit for the initial payment for workers’ compensation insurance would be allowed so long
as proof of payment is provided within 21 days of service of the penalty assessment, rather than
28 days of service of the stop-work order or penalty assessment.
And the 25 percent penalty reduction for employers who have not previously been issued a
stop-work order or order of penalty assessment would be allowed so long as the employer
provides business records within 21 days of receipt of a written request for such records.
The bill creates one new credit: An employer who takes an online tutorial at a DWC worksite, and
correctly answers 80 percent of the questions, may receive an additional 15 percent reduction in the
penalty assessed by DWC.
The bill adds a requirement that an employer cannot enter into a payment agreement if the employer
has previously been assessed a penalty that remains unpaid. This is addressed in rules promulgated
by DWC but has not been required by statute.
DWC is funded by quarterly fees applied to net premiums and paid by insurance carriers and
employers that self-insure to the Workers’ Compensation Administration Trust Fund (WCATF). Fines
32 S. 440.107 (d)1.a., F.S.
33 S. 440.107(d)1.b., F.S.
34 S. 440.107(7)(a), F.S.
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and penalties levied by DWC are also paid to the WCATF. DWC anticipates minimal fiscal impact,
because the collection rate may increase as the cost of assessed penalties decreases. Data provided
by DWC shows that less than one-third of penalties issued by DWC between 2015 and 2019 were paid
in full.
The proposed effective date for changes to s. 440.107, F.S., is January 1, 2023.
Medical Services
DWC is responsible for ensuring that employers provide medically necessary treatment, care, and
attendance for injured workers. Healthcare providers must receive authorization from the insurer before
providing treatment and submit treatment reports to the insurer. Insurers must reimburse healthcare
providers based on statewide schedules of maximum reimbursement allowances developed by the
DWC or an agreed-upon contract price. DWC mediates utilization and reimbursement disputes. 35
In 1980, the Legislature delegated authority over maximum reimbursement allowances to a Three-
Member-Panel which consists of the Insurance Commissioner (as a representative of the Chief
Financial Officer) and two others appointed by the Governor and subject to confirmation by the Senate.
Section 440.13(12)(a), F.S., states: “Annually, the three-member panel shall adopt schedules of
maximum reimbursement allowances for physicians, hospital inpatient care, hospital outpatient care,
ambulatory surgical centers, work-hardening programs, and pain programs.”
The Medical Services Section within the DWC provides administrative support to the panel, which is
statutorily charged with collecting data to evaluate the adequacy of the fee schedule, surveying
healthcare providers to determine the availability and accessibility of healthcare, and surveying carriers
to determine the impact of changes to the reimbursement schedule. 36 According to DWC, medical costs
represent 67 percent of all workers’ compensation costs in Florida.
Maximum reimbursements approved by the Three-Member Panel must be based on the following
statutory requirements:
For inpatient treatment, hospitals must be reimbursed 75 percent of the usual and customary
charges;37
For schedule surgeries, hospitals must be reimbursed 60 percent of the charges; 38
For physicians, reimbursement is 110 percent of the reimbursement allowed by Medicare for an
office visit and 140 percent of the reimbursement allowed by Medicare for a surgical
procedure.39
For prescription medications, reimbursement is the wholesale price plus a $4.18 dispensing fee;
but for repackaged or relabeled prescription medications, reimbursement is 112.5 percent of the
average wholesale price plus an $8 dispensing fee. 40
Healthcare providers cannot recover fees that are higher than those outlined in the schedule. This
applies to treatment, care, and attendance provided by any hospital or other healthcare provider,
ambulatory surgical center, work-hardening program, or pain program.41 Florida courts have enforced
fee schedule limits against healthcare providers who sought higher fees for their services. 42
The law requires reimbursement to medical providers at either the agreed-upon contract price or the
maximum reimbursement allowed in the appropriate schedule.
35 S. 440.13, F.S.
36 S. 440.13(12)(e), F.S.
37 S. 440.13(12)(a), F.S.
38 S. 440.13(12)(b), F.S.
39 Id.
40 S. 440.13(12)(c), F.S
41 S. 440.13(12)(d), F.S.
42 Sun Bank /South Florida, N.A. v. Bak er, 632 So. 2d 669 (Fla. 4th DCA 1994), cause dismissed, 639 So. 2d 982 (Fla.
1994); citing, Easter Elevator Co. v. Hedman, 290 So. 2d 56, 58 (Fla. 1974).
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The Three-Member Panel adopts the schedules as an independent entity, but DWC relies on the
schedules when rendering determinations in reimbursement disputes between healthcare providers
and insurance carriers,43 and when adopting fee schedules for services rendered by medical
providers.44 As a result, DWC adopts the maximum reimbursement schedules through rulemaking, and,
when the cost of a schedule exceeds $1 million in the aggregate within a five-year period, the adopted
rule is subject to legislative ratification.
The Administrative Procedures Act requires a statement of regulatory cost that includes an economic
analysis showing whether the rule directly or indirectly:
1. Is likely to have an adverse impact on economic growth, private sector job
creation or employment, or private sector investment in excess of $1 million in
the aggregate within 5 years after the implementation of the rule;
2. Is likely to have an adverse impact on business competitiveness, including the
ability of persons doing business in the state to compete with persons doing
business in other states or domestic markets, productivity, or innovation in
excess of $1 million in the aggregate within 5 years after the implementation of
the rule; or
3. Is likely to increase regulatory costs, including any transactional costs, in excess
of $1 million in the aggregate within 5 years after the implementation of the rule. 45
The law provides three exemptions to the ratification requirement. Legislative ratification does not apply
to triennial updates of the Florida Building Code and Florida Fire Prevention Code, which are expressly
authorized by statute, or when a state agency adopts federal standards or rules that are needed to
receive federal funds or other benefits under federal law. 46
Stakeholders in Florida’s $4.3 billion workers’ compensation marketplace are using a 2015 manual for
ambulatory surgical centers (ratification was not required because the reimbursement schedule
decreased overall costs by $3 million);47 a 2016 manual for healthcare providers (ratification was not
required because the reimbursement schedule decreased overall costs by 0.1 percent, or $4 million);48
and a 2014 manual for hospitals (which did not require legislative ratification because the overall costs
decreased by 1 percent of $29 million).49
43 S. 440.13(7), F.S.
44 S. 440.13(13), F.S.
45 S. 120.541(2)(a), F.S.
46 S. 120.541(4), F.S.
47 The Florida Workers’ Compensation Reimbursement Manual for Ambulatory Surgical Centers, found at r. 69L -7.100,
F.A.C., was ratified by the Legislature and effective July 1, 2016. See Florida Administrative Code & Florida Administrative
Register, Rule 69L-7.100, https://www.flrules.org/gateway/ruleno.asp?id=69L -7.100&Section= 0 (last visited Feb. 14,
2022). Rulemaking proposals submitted to the Joint Administrative Procedures Committee (JAPC) in 2017 and 2018 were
subsequently withdrawn. See Joint Administrative Procedures Committee, Florida Administrative Law Central Online
Network, Search for Rule 69L-7.100,www.japc.state.fl.us/Pages/res ults.aspx?ruleNumber=69L-
7.100&showAll=True&isTextSearch =False (last visited Feb. 14, 2022).
48 The Florida Workers’ Compensation Health Care Provider Reimbursement Manual, found at r. 69L-7.020, F.A.C., was
effective January 1, 2016, and did not require legislative ratification. See Florida Administrative Code & Florida
Administrative Register, Rule 69L-7.020 69L-7.020 : Florida Workers' Compensation Health Care Provider
Reimbursement Manual - Florida Administrative Rules, Law, Code, Register - FAC, FAR, eRulemaking (flrules.org)
(last visited Feb. 14, 2022). Rulemaking proposals submitted to JAPC in 2017 and 2018 were withdrawn. See Joint
Administrative Procedures Committee, Florida Administrative Law Central Online Network, Search for Rule 69L-7.020
https://www.japc.state.fl.us/Pages/ResultDetails.aspx?controlNumber=R183748& ruleNumber=69L-7.020 (last visited Feb.
14, 2022).
49 The 2014 edition of the Florida Workers’ Compensation Reimbursement Manual for Hospitals, found at r. 69L -7.501,
F.A.C., did not require legislative ratification and was effective January 1, 2015. See Florida Administrative Code & Florida
Administrative Register, Rule 69L-7.501,
https://www.flrules.org/gateway/RuleNo.asp?title=WORKERS%27%27% 20COMPE NSA TION%20ME DICAL%20REIMBU
RSEMENT%20AND%20UTILIZA TION% 20REVIEW&ID=69L-7.501 (last visited Jan. 12, 2022). Rulemaking proposals
submitted to JAPC in 2016 and 2017 were withdrawn. See Joint Administrative Procedures Committee, Florida
Administrative Law Central Online Network, Search for Rule 69L-7.501
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A 2020 reimbursement manual for healthcare providers was adopted on October 22, 2021, but will not
go into effect unless it is ratified by the Legislature. HB 1123 (2022) and SB 1274 (2022) request
legislative ratification for r. 69L-7.020, F.A.C., which contains the reimbursement manual for workers’
compensation healthcare providers.
The Legislature ratified the 2016 manual for healthcare providers, which increased the overall cost of
the workers’ compensation system by 1.8 percent, or $64 million.50
The Legislature declined to ratify reimbursement manuals for:
Ambulatory surgical centers – the 2016 manual proposed an increase of 0.6 percent or $22 million;
the 2017 manual proposed an increase of 1.1 percent or $40 million.51
Healthcare providers – the 2017 manual proposed an increase of 0.1 percent, or $4 million. 52
Hospitals – the 2016 and 2017 manuals proposed increases of 2.2 percent, or $80 million. 53
The Three-Member Panel issues a Biennial Report to the Legislature. The latest report – published in
October 2019 – notes that there is an imbalance between reimbursements to hospitals and ambulatory
surgical centers (which are higher than the national average) and reimbursements to doctors (which are
lower than the national average).54
Effect of the Bill
The bill adds a section within the Administrative Procedures Act related to the statement of estimated
regulatory costs to exempt schedules of maximum reimbursement allowances adopted by the three-
member panel from legislative ratification.
The bill gives DWC explicit rulemaking authority to administer programs related to maximum
reimbursement allowances established by the Three-Member panel.
And, if there is no agreed-upon contract price, the bill permits reimbursement at the lesser of the
maximum reimbursement allowance in the appropriate schedule or the provider’s billed charge.
Notice of Rights to the Employee
When an employee suffers an injury in the course of employment, the employee must notify the
employer of the injury within 30 days, and the employer must report the injury to its insurance carrier
within seven days of such notification. The employer also must mail the injured worker an informational
brochure explaining the employee’s rights, benefits, and obligations, and the process for accessing
workers’ compensation benefits.
Effect of the Bill
The bill permits delivery of the brochure by mail or email and changes the mailing deadline from three
days to three business days.
Payroll Audits
www.japc.state.fl.us/Pages/results.aspx?ruleNumber= 69L-7.501&showAll= True&is Text Search=False (last visited Feb.
14, 2022).
50 Three Member Panel, 2019 Biennial Report,
https://www.myfloridacfo.com/Division/WC/PublicationsFormsManualsReports/Reports/2019 -Biennial-Report.pdf, at 18
(last visited Feb. 14, 2022).
51 Id.
52 Id.
53 Id.
54 Id., at 4.
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The cost of workers’ compensation insurance is based primarily upon an employer’s payroll and the
types of duties employees perform. Employers pay an estimated premium at the commencement of a
workers’ compensation policy and receive a refund or a bill for additional premium due at the end of the
policy year, based on a payroll audit conducted by the insurance carrier.
The law requires payroll audits every other year for non-construction businesses. Businesses in the
construction industry that are large enough to have an experience rating factor applied to their premium
(meaning the policy is based on Florida premium of $5,750 in the prior year or $11,500 in the prior two
years) must be audited annually and the audit must take place at the employer’s worksite.55
The Office of Insurance Regulation (OIR) promulgates rules for payroll audits that are adopted by the
Financial Services Commission. The rules require:
An annual physical audit for policies with premium of $10,000 or more, regardless of governing
classification;
A physical audit for all new businesses that have construction classifications, regardless of
premium; and
An annual physical audit for renewal policies that have construction classifications if the estimated
annual premium is $5,000 or more.56
Other audits may be conducted by mail. Audits conducted by telephone are not permitted in lieu of mail
or physical audits.57
Effect of the Bill
The bill requires in-person audits for construction businesses only if the construction business has an
estimated annual premium of $10,000 or more. Adoption of the bill would require changes to OIR rules
that require physical audits for all new construction businesses and for construction businesses that
have an annual premium of $5,000 or more.
Division of Funeral, Cemetery, and Consumer Services
The Division of Funeral, Cemetery, and Consumer Services has authority over pre-need burial
contracts as well as funerals and burial services. The division licenses funeral directors, embalmers,
and sales agents, and also conducts annual inspections of cemeteries and related facilities. 58
Fees for Services
In general, the price charged for burial rights, merchandise, and burial services is left to the
marketplace, but Florida law places limits on fees charged for certain related services, including the
transfer of burial rights from one purchaser to another, which may not exceed $50. 59
Effect of the Bill
The bill eliminates the $50 limit for fees paid for transferring burial rights, meaning the parties may
agree to a negotiated rate. This change has no impact on DFS revenues.
Licensing of Embalmers
To be licensed as an embalmer in Florida, an applicant must:
55 S. 440.381, F.S.
56 R. 69O-189.003(b)1, F.A.C.
57 R. 69O-189.003(b)3, F.A.C.
58 Ch. 497, F.S.
59 S. 497.277(2), F.S.
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Complete coursework in mortuary science;
Complete coursework in communicable diseases;
Complete a one-year internship under a licensed embalmer;
Pass a written exam on the disposal of dead bodies;
Pass a licensing exam;
Submit fingerprints for a background check; and
Submit an application and pay an application fee.60
For persons who are licensed to practice embalming in a state other than Florida and wish to be
licensed by DFS, there are two options:
Option One: The applicant must have been licensed in a state where the requirements are
substantially equivalent or more stringent than the requirements in Florida, and:
Provide documentation showing coursework in communicable diseases;
Pass a written exam on the disposal of dead bodies;
Submit fingerprints for a background check; and
Submit an application and pay an application fee.61
Option Two: The applicant must have:
Practiced as a licensed embalmer for at least one year;
Passed a state licensing exam during the 10 years prior to application;
Provide documentation showing coursework in communicable diseases;
Pass a written exam on the disposal of dead bodies;
Submit fingerprints for a background check; and
Submit an application and pay an application fee.62
Effect of the Bill
The bill simplifies requirements for persons who are licensed embalmers in another state and wish to
be licensed in Florida under Option One. Instead of demonstrating current licensure in a state where
the requirements are substantially equivalent or more stringent to those in Florida, the applicant must
show that he or she has worked full-time as a licensed embalmer in another state for no less than five
years.
Duties of Funeral Directors
Persons who sell and make financial arrangements for funeral services (including the disposition of
human remains through embalming, cremation or other means) must be licensed as funeral directors
and be affiliated with a licensed funeral establishment. 63
Certain duties may only be performed by licensed funeral directors, including setting the time of
services, acquiring the services of a clergy, obtaining vital information needed to file death certificates,
and obtaining burial transit permits. The funeral director must directly or indirectly supervise any
memorial service held prior to or within 72 hours of burial or cremation, if such memorial service is sold
or arranged by a licensee.
Licensure is not required for persons who perform related services, like ordering flowers, furnishing
price lists, and transporting bodies.64
Effect of the Bill
60 S. 497.368, F.S.
61 S. 497.369(b)1, F.S.
62 S. 497.369(b)2, F.S.
63 S. 497.372, F.S.
64 Id.
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The bill eliminates the requirement that only licensed funeral directors can set the time of services,
acquire the services of a clergy, obtain vital information needed to file death certificates, and obtain
burial transit permits. Additionally, the bill requires that the funeral director directly or indirectly
supervise all memorial services sold or arranged by a licensee.
Licensing of Funeral Directors
To be licensed as a funeral director, an applicant must:
Have an associates’ degree in mortuary science or an associates’ degree in another subject
and also completed an approved course of study in mortuary science;
Complete a course on communicable diseases;
Complete a one-year internship under a licensed funeral director;
Pass an exam on the disposal of dead bodies;
Pass a licensing exam;
Submit fingerprints for a background check; and
Submit an application and pay an application fee.65
For persons who are licensed as a funeral director in a state other than Florida and wish to be licensed
by DFS, there are two options:
Option One: The applicant must have been licensed in a state where the requirements are
substantially equivalent or more stringent than the requirements in Florida, and:
Complete coursework in communicable diseases;
Pass a written exam on the disposal of dead bodies;
Submit fingerprints for a background check;
Submit an application and pay an application fee.66
Option Two: The applicant must have completed a licensing exam in another state that is substantially
equivalent or more stringent than the licensing exam in Florida, and:
Have an associates’ degree in mortuary science or an associates’ degree in another subject
and also completed an approved course of study in mortuary science;
Complete coursework in communicable diseases;
Complete a one-year internship under a licensed funeral director;
Pass a written exam on the disposal of dead bodies;
Submit fingerprints for a background check; and
Submit an application and pay an application fee.67
Effect of the Bill
The bill changes the licensing requirements for persons who are licensed funeral directors in other
states and seek licensure in Florida. Applicants seeking licensure under Option One must show that
they are in good standing in their state of licensure and that they have practiced as a licensed funeral
director for no less than five years. Applicants seeking licensure under Option Two may be licensed if
they hold a certificate from an accredited program in mortuary science but have not earned an
associate’s degree.
Division of State Fire Marshal
65 S. 497.373, F.S.
66 S. 497.374(b)1, F.S.
67 S. 497.374(b)2, F.S.
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The State Fire Marshal protects people and property throughout Florida and has authority to inspect
buildings, structures, equipment, vehicles, and chemicals when there is reasonable cause to believe a
violation of the Florida Fire Code has occurred.68 The State Fire Marshal has two bureaus:
The Bureau of Fire Prevention conducts safety inspections and reviews construction plans for all
state-owned buildings, regulates fireworks and the fire sprinkler industry, inspects and licenses
boilers, and certifies persons working in the fire suppression industry; and
The Bureau of Firefighter Standards and Training approves curricula and training at the Florida
State Fire College and certifies that fire service members meet industry standards. Persons may be
certified as a volunteer firefighter, firefighter, or administrator of a fire service provider (i.e. fire chief,
fire coordinator, fire director, or fire administrator).69
Boiler Inspections
The State Fire Marshal performs inspections to ensure the safety of boilers in public buildings.70
Effect of the Bill
The bill updates boiler inspection requirements to reflect current industry standards:
Requires carbon monoxide detectors in public lodging establishments that use boilers;
Deletes a $50 fee for a required exam that is now offered by the National Board of Boiler and
Pressure Vessel Inspectors;
Clarifies the type of information needed to obtain a boiler permit;
Clarifies that a fee is required if an inspector is required to make a special trip to conduct a testing
and verification inspection; and
Adjusts compliance deadlines if an insurance company authorized to sell boiler and machinery
insurance or an inspection agency accredited by the National Board of Boiler and Pressure Vessel
Inspectors fails to perform required inspections in a timely manner or fails to correct a violation
within 30 days.
Certification of Fire Inspectors
State and local fire inspectors may enter and inspect any buildings subject to fire safety laws.
To be certified as a fire inspector by the State Fire Marshal, a person must complete a 200-hour fire-
safety inspector training program and pass a fire-safety inspector certification examination or
demonstrate that he or she has had equivalent education and training in another state.71 Additionally,
the applicant must be in good physical condition, as determined by a medical examination, and have
good moral character, as determined by a background investigation that includes the processing of
fingerprints for a national criminal background check. The applicant must provide a sworn affidavit
stating that he or she does not use tobacco.72
Certificates are valid for four years; a certified fire safety inspector must complete 54 hours of
continuing education during the four-year period or pass an examination to renew the certificate. 73
Effect of the Bill
68 Chs. 554 and 633, F.S.
69 Department of Financial Services, Division of State Fire Marshal, What We Do, https://myfloridacfo.com/Division/SFM/
(last visited Feb. 14, 2022).
70 Department of Financial Services, Division of State Fire Marshal, Boiler Safety Section,
https://www.myfloridacfo.com/Division/sfm/BFP/BoilerSafety/default.htm (last visited Feb. 14, 2022).
71 S. 633.216, F.S.
72 S. 633.412, F.S.
73 S. 633.216(4), F.S.
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The bill eliminates the option of passing an exam, rather than completing 54 hours of continuing
education, to renew a fire safety certificate. Thus, the fire safety inspector certificate could only be
renewed if the certificate-holder completes 54 hours of continuing education during the four-year
certification period.
Certification of Firefighters and Commanders
To be certified as a firefighter, a person must complete a minimum standards course and exam
established by the State Fire Marshal or show proof of equivalent training in another state, and pass an
exam within one year of completing the minimum standards course. Additionally, the applicant must be
in good physical condition, as determined by a medical examination, and have good moral character,
as determined by a background investigation that includes the processing of fingerprints for a national
criminal background check. The applicant also must provide a sworn affidavit stating that he or she
does not use tobacco.74
To serve as an administrative and command head of a fire service provider, or to work in a position
directing incident outcomes, a certified firefighter must earn a Special Certificate of Compliance. Such
person must be active as a firefighter, maintain a valid fire service instructor certificate and teach at
least 40 hours of instruction during a four-year period, and complete a Firefighter Retention Refresher
Course prior to expiration of the four-year period.75
A certified firefighter who is employed as a fire chief, fire coordinator, fire director, or fire administrator
must obtain a Special Certificate of Compliance within one year of beginning employment. 76
Effect of the Bill
The bill deletes specific requirements for the Special Certificate of Compliance and instead provides
that the requirements to obtain and renew the Special Certificate of Compliance shall be established by
rule.
Renewing a Firefighter’s Certificate
Firefighter certificates of compliance are valid for four years. To renew a certification, a firefighter must:
Be active as a firefighter, meaning the certificate holder was employed as a firefighter or served
as a volunteer firefighter for at least six months during a four-year period; or
Hold a fire service instructor certificate and instruct at least 40 hours during a four-year period,
or
Complete a Firefighter Retention Refresher Course during the six months before the four-year
period expires, or
Retake and pass the Minimum Standards Course examination during the six months before the
four-year period expires.77
Effect of the Bill
The bill provides that the special certificate of compliance has the same renewal requirements as a
firefighter certificate of compliance. The bill also changes the definition of an active firefighter. Instead
of requiring at least six months of active service during a four-year certification period, the bill provides
the following definition:
As used in this section, the term “active” means being employed as a firefighter
or providing service as a volunteer firefighter as evidenced by the individual’s
74 S. 633.408(4), F.S.
75 S. 633.408(6), F.S.
76 Id.
77 S. 633.414, F.S.
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name appearing on a fire service provider’s employment roster in the Florida
State Fire College database or a letter by the fire service provider attesting to
dates of employment.
Thus, to renew a certification, a firefighter would have to be included in a fire service provider’s
employment roster or provide a letter from a fire service provider attesting to the firefighter’s dates of
employment.
Additionally, the bill permits completion of the Firefighter Retention Refresher Course or passage of the
Minimum Standards Course examination at any time prior to expiration of the certificate.
Firefighter Assistance Grants to Local Fire Departments
The Office of the State Fire Marshal also oversees the Firefighter Assistance Grant Program which
awards grants to fire departments based on an annual needs assessment survey and restricts funding
to training, personal protective equipment, breathing equipment, and fire engine pumper equipment. 78
78 S. 633.135, F.S. and R. 69A-37.502, F.A.C.
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Effect of the Bill
The bill expands the types of equipment and tools that can be purchased with funds provided by the
Firefighter Assistance Grant Program. This allows the use of state grant funds for equipment and tools
that improve fire safety and rescue capabilities, and for protective clothing and equipment that complies
with standards of the National Fire Protection Association.
Division of Insurance Agent and Agency Services
The DFS Division of Insurance Agent and Agency Services is responsible for the licensing and
regulation of insurance agents, adjusters, insurance agencies, as well as related personnel and
business entities.79
Service of Process
Every insurer licensed to do business in Florida must appoint the Chief Financial Officer (CFO) as
agent for service of legal process in any civil action or proceeding in Florida and provide the name and
e-mail address of the person to whom process received by the CFO should be forwarded. 80
The CFO also serves as the agent for service of legal process against any nonresident agent,81
reinsurance intermediary,82 nonresident health insurance agent,83 nonresident independent or public
adjuster,84 surplus lines insurer,85 unauthorized insurer,86 and viatical settlement provider.87
Florida law requires that process be served upon a state officer, and then forwarded to the regulated
entity, to ensure that the regulator is aware of lawsuits served upon regulated entities. This is a
standard practice that is recommended by the National Association of Insurance Commissioners and
used in many states.88
Effect of the Bill
The bill amends existing law, to clearly state that service of process is valid and binding on the insurer
on the date the insurer is notified that such information is available on a secure online portal.
Additionally, the bill states that service of process submitted through the secure online portal is the sole
method of service of process upon an insurer authorized to do business in Florida.
Unaffiliated Insurance Agents Adjusting Claims
Unaffiliated insurance agents are licensed agents who work as independent consultants, analyzing
policies and providing advice or recommendations on insurance products for a fee. Such persons may
not be affiliated with an insurer, insurer-appointed insurance agent, or insurance agent contracted with
or employing insurer-appointed insurance agents.89
79 Ch. 626, parts I, II, III,
IV, V, VI, VIII, IX, and XIII, F.S.
80 S. 624.423(3), F.S.
81 S. 626.742, F.S.
82 S. 626.7492, F.S.
83 S. 626.836, F.S.
84 S. 626.8736, F.S.
85 S. 626.937, F.S.
86 S. 626.909, F.S.
87 S. 626.9912, F.S.
88 See National Association of Insurance Commissioners, Company Licensing Best Practices Handbook 2022, at 71
https://content.naic.org/sites/default/files/publication-clh-op-licensing-practices-handbook.pdf (last visited Feb. 14, 2022);
and National Association of Insurance Commissioners, Uniform Consent to Service of Process/Form 12,
https://www.naic.org/documents/industry_ucaa_form12.pdf (last visited Feb. 14, 2022).
89 S. 626.015(20), F.S.
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Insurance agents who are licensed to sell and service insurance must be appointed by an authorized
insurer who sells the type of insurance the agent is authorized to sell. 90
The law was intended to prohibit conflicts of interest that would allow unaffiliated agents to compel
payments for referrals from affiliated agents or companies.91
Effect of the Bill
The bill permits an insurance professional who holds both unaffiliated insurance agent license and an
adjuster license to obtain an adjuster appointment while continuing his or her work as an independent
consultant in the insurance industry. After a catastrophic storm, for example, the adjuster could be
appointed to adjust claims for an insurer without surrendering his or her unaffiliated agent
appointments.
Specifically, the bill amends the definition of unaffiliated insurance agent to state that a licens ed
adjuster who is also an unaffiliated insurance agent may obtain an adjuster appointment while
simultaneously holding an unaffiliated appointment on his or her agent license.
Additionally, the bill amends the scope of the licensing law for insurance agents, to permit unaffiliated
agents who also hold an adjuster license to obtain an adjuster appointment and be compensated for
adjusting claims while maintaining his or her license as an unaffiliated insurance agent.
Fingerprints for Background Checks
The Florida Insurance Code authorizes DFS to investigate any applicant or licensee, and further states
that licensing statutes which require an evaluation of an applicant’s character or fitness must include
the submission of fingerprints for a national criminal records check.92 Applicants and licensees submit
fingerprints to FDLE, which forwards the fingerprints to the FBI for a national background check. 93
National background checks conducted for non-criminal purposes are subject to Public Law 92-544,
which was enacted by Congress in 1972 and permits states to receive criminal history records from the
FBI so long as the state has enacted a law that requires the submission of fingerprints for appropriate
licensing and employment purposes.
The FBI processes fingerprints only if the criteria established by the U.S. Department of Justice has
been satisfied. To satisfy federal law, a state licensing statute must identify the specific categories of
licenses that require the submission of fingerprints as part of an application and expressly state that the
applicant’s fingerprints will be submitted to the FBI or submitted for a national criminal records
background check.
Effect of the Bill
The bill makes technical amendments to licensing laws to ensure compliance with federal law and
continuation of FBI background checks for agents and agencies seeking licensure in Florida.
Seven of the laws being amended set forth the application requirements for persons seeking licensure:
As an insurance agent, customer representative, adjuster, service representative, or reinsurance
intermediary;94
For an insurance agency;95
90 S. 626.112, F.S.
91 S. 626.311(6), F.S.
92 S. 626.201, F.S.
93 S. 624.34, F.S.
94 S. 626.171, F.S.
95 S. 626.172, F.S.
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As a limited lines licensee to transact motor vehicle physical damage and mechanical breakdown
insurance; industrial fire or burglary insurance; travel insurance; motor vehicle rental insurance;
credit insurance; crop hail and multiple-peril crop insurance; in-transit and storage personal property
insurance; and portable electronics insurance;96
As a nonresident all-lines adjustor;97
As an insurance navigator;98
As a bail bond agent;99 or
For temporary licensure (pending examination) as a limited surety agent or professional bail bond
agent.100
Four of the laws being amended:
Provide authority to investigate the character, experience, background, and fitness of licensees and
applicants seeking licensure, and to require the submission of fingerprints as part of such
investigation;101
Require the submission of fingerprints if DFS has reason to believe a licensee has been convicted
of a crime; is the subject of an acquisition; or employs or appoints a new partner, officer, or
director;102
Authorize investigations of allegations of improper conduct by licensed persons and entities
(adjustors, agents, agencies, insurers) and related professionals (mediators and continuing
education providers);103 and
Identify portions of the Insurance Code that are applicable to title agents and agencies. 104
Authority to Investigate Licensees
Applicants seeking licensure by DFS as an insurance agent, insurance agency, or bail bond agent are
subject to a background investigation to determine the applicant’s character, experience, background,
and fitness for the desired license.105
The application process includes the submission of fingerprints for a national criminal background
check and a review of any prior violations of the Insurance Code. DFS may inquire about any matter
that is reasonably related to the character and fitness of a licensee upon application for a license,
renewal of a license, or reinstatement of a license.106
DFS has authority expressly conferred upon it and reasonably implied from the provisions of the
Insurance Code.107 For investigations, the law provides the following express authority:
DFS may investigate any matter to determine whether a violation of the Insurance Code has
occurred, or to secure information that may be useful in the lawful administration of the Insurance
Code.108 This includes the authority to investigate the accounts, records, documents, and
transactions of licensees.109
DFS may investigate the conduct of any licensee, upon its own motion or upon receiving a written
complaint signed by an interested person, so long as there is reasonable cause to believe that a
96 S. 626.321, F.S.
97 S. 626.8734, F.S.
98 S. 626.9953, F.S
99 S. 648.34, F.S.
100 S. 648.355, F.S.
101 S. 626.201, F.S.
102 S. 626.202, F.S.
103 S. 626.601, F.S.
104 S. 626.8411, F.S.
105 Ss. 626.201 and 648.27 F.S.
106 Ss. 626.201, 648.27, 648.34 and 648.355 F.S.
107 S. 624.401(2), F.S.
108 S. 624.307(3), F.S.
109 S. 624.317, F.S.
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licensee has violated a provision of the Insurance Code.110 A licensee that fails to respond to a
written request for documents or other information within 20 days of receipt of such request may be
subject to administrative penalties of up to $2,500.111
Enforcement powers granted to DFS – including authority to issue orders to cease and desist,
administrative complaints to suspend or revoke a license and/or remove affiliated parties – apply to
licensees and their affiliated parties, and to unlicensed persons who engage in activities for which
licensure is required.112
Effect of the Bill
The bill provides explicit authority to investigate licensees for violations of the Insurance Code even if a
license expires, is not renewed, or is surrendered. The bill also states that the withdrawal of a complaint
does not affect DFS’s authority to investigate or take administrative action against a licensee or former
licensee. An alleged violation must have occurred while the licensee held an active license.
Express authority is added to s. 626.201, F.S., which permits DFS to investigate applicants seeking
licensure or appointment in Florida. Identical express authority is added to s. 648.46, F.S., which
permits DFS to take disciplinary actions against licensed bail bond agents.
Closure of an Insurance Agency
Current law does not address the closure of an insurance agency. Some insurance agencies have
abandoned their offices and records, forcing DFS to work with landlords, retrieve records, and complete
unfinished work, like remitting checks to insurers and managing applications that were not filed.
Effect of the Bill
The bill establishes instructions for closure in the event that an insurance agency stops doing business
for a period exceeding 31 days. Within 30 days of the date the insurance agency stops doing business,
the insurance agency must:
Notify DFS of its closure and cancel its agency license;
Notify insurers, policyholders, and premium finance companies of the closure and provide
information about the agency or agent who has taken over the book of business; and
Ensure that all funds held in a fiduciary capacity are properly distributed to the rightful owner(s).
Failure to provide the required notifications could result in an administrative fine up to $10,000 per
violation and suspension or revocation of the agency license.
All-Lines Adjusters
An all-lines adjuster is a person who determines the value of a claim, loss, or damage payable under a
property or casualty insurance contract and tries to negotiate a settlement of such claim, loss, or
damage.113
Such persons must pass a written exam recognized by DFS to be licensed unless they qualify for an
exemption.114 Examination is not required for persons who earn an appropriate designation from a
regionally accredited postsecondary institution in Florida; or certification from a recognized professional
association whose curriculum has been approved by DFS, like the Insurance Institute of America or the
Claims and Litigation Management Alliance.115
110 S. 626.601, F.S.
111 S. 624.307 (10)(b), F.S.
112 Ss. 624.310(2), 624.319(3)-(4) and (8), and 626.016, F.S.
113 S. 626.8548, F.S.
114 Ss. 626.211 and 626.292, F.S.
115 S. 626.221(2)(j), F.S.
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Effect of the Bill
The bill adds the Certified All Lines Adjuster certificate from Kaplan Financial Education to a list of
recognized programs that exempt an applicant from the examination requirement.
Title Agents and Agencies
Title insurance insures property owners against claims related to the ownership of an insured property,
liability for back taxes, and liens or other encumbrances. 116
Effect of the Bill
The bill includes clarifying amendments in six sections related to the sale of title insurance:
A title insurer may not sell policies unless both the agent and the agency are appointed by the
insurer;117
Pre-licensing classes for title insurance agents may be taught online as well as in a classroom;118
Both title agents and title agencies are required to have a separate appointment for each insurer
that has appointed the agent or agency;119
Appointments for title agents and title agencies are renewable every two years; 120
Notice requirements related to the termination of an appointment apply to both title agents and title
agencies;121
Sanctions related to the suspension or revocation of a license apply to both title agents and title
agencies.122
Public Adjusters
Public adjusters file and negotiate insurance claims on behalf of a policyholder, for a fee. Florida law
limits reimbursement to a public adjuster to no more than 20 percent of a claim payment, or no more
than 10 percent of a payment for a claim that arose from an event that was declared a state of
emergency. The law additionally prohibits a public adjuster from offering any gratuity worth more than
$25, or any loan or advance to a client in return for representation in an insurance claim. Further, public
adjusters may not offer residential property owners any type of gratuity or rebate in return for permitting
a roof inspection, or making an insurance claim for roof damage. 123
Persons seeking licensure as a public adjuster must have been licensed and appointed as a public
adjuster apprentice, independent adjuster, or company employee adjuster for at least six months prior
to application.124
Persons seeking licensure as a public adjuster apprentice must be licensed as an all-lines adjuster and
must post a $50,000 bond during his or her appointment to a public adjusting firm and for a year
following termination of such appointment.125
Nonresident public adjusters may be licensed to do business in Florida if they satisfy the application
requirements, including passing a written exam, and demonstrating that they have been licensed and
employed as a public adjuster or insurance company adjuster or independent adjuster in a state other
116 Ch. 626, part V, F.S.
117 S. 626.8412, F.S.
118 S. 626.8417, F.S.
119 S. 626.8421, F.S.
120 S. 626.843, F.S.
121 S. 626.8433, F.S.
122 S. 626.8447, F.S.
123 S. 626.854, F.S.
124 S. 626.865(1)(e), F.S.
125 S. 626.8651(1), F.S.
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than Florida during the six months prior to application. Additionally, the applicant must post a $50,000
bond that may not be terminated without 30 days written notice to DFS. 126
Effect of the Bill
The bill establishes requirements for public adjusting firms and their apprentices, and makes technical
changes to related laws:
Most homeowners, condo, and renter insurance include coverage for additional living expenses a
policyholder incurs if the policyholder cannot live in his or her home due to a covered loss. The bill
prohibits compensation to a public adjuster based on amounts attributable to additional living
expenses unless the public adjuster and the policyholder agree to such compensation in a separate
agreement that includes the following disclosure: "I agree to retain and compensate the public
adjuster for adjusting my additional living expenses and securing payment from my insurer for
amounts attributable to additional living expenses payable under the policy issued on my
(home/mobile home/condominium unit).”
Creates a new provision which states that compensation paid to a public adjuster may not be
increased based on a claim being resolved by litigation.
Requires that adjusting firms seeking licensure include the name and license number of the
designated primary adjuster who is responsible for adjusters at each business location, and
requires fingerprints for background checks of the owner(s) as well as corporate officers and
directors;
Requires that an applicant for licensure as a public adjuster must have been licensed and
appointed in Florida as a non-resident public adjuster, or as an all-lines adjuster, on a continual
basis, during the six months prior to application;
Amends the definition of “public adjuster apprentice” to state that such apprentice must be
employed by a public adjusting firm, rather than employed by a public adjuster;
Requires that a $50,000 bond posted by each public adjuster apprentice remain in effect for one
year after termination of the public adjuster apprentice license, and requires that the public
adjusting firm provide DFS with notice of the primary adjuster who responsible for the supervision of
all adjusters at the firm’s location;
Requires that the $50,000 bond posted by each nonresident public adjuster must remain in effect
for one year following the expiration or termination of the public adjuster license, and also makes
changes to comply with federal law related to the use of fingerprints in national background checks,
discussed above.
126 S. 626.8732, F.S.
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The Florida Patient’s Compensation Fund
Florida experienced a medical malpractice insurance crisis in the mid-1970s when 20 professional
liability insurers responded to rising medical malpractice awards and settlements by cancelling
coverage of Florida physicians and withdrawing from the market. Companies remaining in the market
increased rates dramatically, with the leading insurer at the time requesting and receiving approval for a
100 percent increase in premium rates paid by doctors. 127
The Legislature responded by enacting The Medical Malpractice Reform Act of 1975, which, among
other things, created the Florida Patient’s Compensation Fund (Fund) to limit the risk exposure of
participating health care providers. Participants had to show proof of $100,000 coverage from an
insurer or self-insurance plan and deposit an annual fee into the Fund. The Fund paid the excess over
$100,000 for any judgment or settlement against a member. The Fund was capped at $25 million and
could not pay more than $1 million on a given claim in any single year. 128
The Fund attracted providers and ran smoothly for a few years but was not actuarially sound, so
substantial losses began to accumulate.129 In 1982, the Fund assessed its members to cover deficits,
hospitals dropped out because most of the claims were against physicians, and the Fund was unable to
continue operating.130 During its short tenure, the Fund received $72 million in membership fees and
$280 million in assessments; closed 4,595 claims and paid more than $311 million to victims of medical
malpractice.131
Initially, the Fund was scheduled for sunset in 1991 and repeal in 1995; however, during a special
session in 1991 the Legislature revived and readopted all statutes that had been subject to future
repeal, including s. 766.105, F.S.132 As a result, the law has not been subject to sunset review even
though the Fund has not accepted new members since June 30, 1983.133
All private hospitals were required to join the Fund or demonstrate financial responsibility of at least
$10,000 per bed through self-insurance, by posting a bond or establishing an escrow account, or by
purchasing professional liability insurance. Compliance was delegated to the Agency for Health Care
Administration (AHCA), which required proof of membership or exemption for licensing and license
renewal. The requirement that AHCA determine compliance with s. 766.105(2)(d)2, F.S., remains, so
hospitals must demonstrate that they are exempt from participation in the Fund by providing proof of
financial responsibility through one of the following:
A bond posted in the amount equivalent to $10,000 per claim for each hospital bed, not to exceed a
$2,500,000 annual aggregate.
An escrow account in an amount equivalent to $10,000 per claim for each hospital bed, not to
exceed a $2,500,000 annual aggregate to the satisfaction of AHCA.
127 U.S. General Accounting Office, Medical Malpractice Case Study on Florida, Report to Congressional Requestors,
December 1986, at 8, www.gao.gov/assets/hrd-87-21s-3. pdf, (last visited Feb. 14, 2022); and Florida House of
Representatives Committee on Insurance, The Florida Patient’s Compensation Fund: Status Report on Terminating
Activities of the Fund, December 10, 1994, at 1-7.
128 S. 765,105, F.S.
129 The Florida Patient’s Compensation Fund: Status Report on Terminating Activities of the Fund, supra note 121, at 7.
Section 766.105(3)(h), F.S., provides that the Fund must determine whether it has minimum membership levels to offer
coverage one week prior to the beginning of each fiscal year. The minimum membership thresholds of $5 million for non -
hospital providers and $12.5 million for hospitals could not be met when hospitals stopped participating.
130 Medical Malpractice Case Study on Florida, Report to Congressional Requestors, supra note 121, at 10.
131 The Florida Patient’s Compensation Fund: Status Report on Terminating Activities of the Fund, supra note 121, at 17-
18.
132 Id., at 1.
133 Office of Insurance Regulation, Target Mark et Conduct Final Examination Report of the Florida Patient’s
Compensation Fund, April 25, 2014, at 4, lamainrouge.net/siteDocuments/FLPatientsCompens ationFund 04252014.pdf
(last visited Feb. 14, 2022).
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Professional liability coverage in an amount equivalent to $10,000 or more per claim for each
hospital bed, from a private insurer, the Joint Underwriting Association; or through a plan of self-
insurance as provided in s. 627.357, F.S., not to exceed a $2,500,000 annual aggregate. Include
proof of funding any self-insurance retention.
Sovereign immunity. State Agencies, subdivisions or instrumentalities of the state. No additional
documentation necessary if previously documented. 134
The Fund is an independent, tax-exempt entity created by the state, but OIR has supervisory authority
over the Fund’s Plan of Operation and any changes to the Plan of Operation, including repeal. 135
The law requires that OIR review any request for assessments of plan participants or refunds of plan
participants, and further states that the Fund is required to furnish audited financial reports annually,
upon request, to any fund participant and to the OIR and the Joint Legislative Auditing Committee. 136
The following provides a short history of interactions between the Fund and OIR:
OIR Approved the Fund’s Plan of Operations in 1979; 137
OIR approved member fees in 1981, 1985, 1986 and 1989; 138
OIR ordered 12 assessments of Fund members and approved 11 refunds between 1982 and
2004;139
In 1994, the Fund’s general manager advised the House of Representatives that it would take
about six or seven years to wind down the Fund’s operations, which, at that time, included 69
open claims that were the subject of litigation;140
The Fund rejected a proposal to merge with the Florida Medical Malpractice Joint Underwriting
Association in 2008, but promised to reduce its budget by 20 percent in 2009 and an additional
10 percent in 2010.141
o In response, OIR noted that operating expenses of $325,950 (including $111,000 salary to
the general manager, at that time the Fund’s only employee) were not prudent because the
Fund had not written any new policies in 20 years. OIR suggested that the Fund meet once
per year, via conference call, and outsource the duties of the general manager.142
o In reply, the Fund provided a legal opinion stating that its Articles of Association require a
general manager and that the Fund benefited from the general manager’s knowledge of the
Fund’s history and activities.143
A 2014 market conduct exam conducted by OIR noted that the Fund’s operating expenses were
$330,950 in 2010, $338,700 in 2011, and $359,700 in 2012.
o The increase in operating costs was attributed to a “catastrophic computer failure” that
caused the Fund to lose all digital records related to refunds. A vendor used microfilm
records to restore the Fund’s digital system and the Fund installed automated backup
programs on its one desktop and two laptop computers. 144
By spring 2016, the Fund had negotiated a $3,334,000 deal with Berkshire Hathaway, which
was willing to accept liability for 10 annuities that were owned by the Fund and did not have a
134 Agency for Health Care Administration, Health Quality Assurance Licensure Form3130-8001s, Hospital, at 11,
https://Ahca.myflorida.com/MCHQ/HQALicensureForms (last visited Feb. 14, 2022)
135 S. 766.105(3)(c), F.S.
136 S. 766.105(3)(e)4, F.S
137 Email from Grant Phillips, Director of Legislative Affairs for the Office of Insurance Regulation, FPCF Order Timeline, at
26 (Nov. 16, 2021).
138 Id.
139 Target Mark et Conduct Final Examination Report of the Florida Patient’s Compensation Fund, supra note 127, at 7.
140 Id., at 20-21.
141 Correspondence from Stanley Marguilies, M.D., chairman of the Board of Governors of the Florida Patient’s
Compensation Fund to Insurance Commissioner Kevin McCarty, June 13, 2008.
142 Correspondence from Insurance Commissioner Kevin McCarty to Stanley Marguilies, M.D., chairman of the Board of
Governors of the Florida Patient’s Compensation Fund, Aug. 14, 2008.
143 Legal opinion of Zollie M. Maynard, Esq., general counsel for Florida Pat ient’s Compensation Fund, Sept. 18, 2008.
144 Target Mark et Conduct Final Examination Report of the Florida Patient’s Compensation Fund, supra note 127, at 6-8.
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unified qualified assignment that would have released the Fund from liability in the event an
insurer paying annuitants through a structured settlement became insolvent. A transfer to
Berkshire Hathaway would have allowed the Fund to issue refunds to former members and wind
down its activities. The Fund rejected the deal when final contract language gave OIR
contractual control over most of the Fund’s activities.145
In the fall of 2016, the Fund submitted a request to OIR to issue refunds and wind the Fund
down, but was unable to persuade OIR that it did not have any contingent liability for some of
the annuities that were issued by insurance companies, and continue to be serviced by those
insurance companies, as part of structured settlements negotiated by the Fund decades
earlier.146
In 2019, the Fund obtained releases of contingent liability from five annuitants whose remaining
payments exceed the $300,000 limit of the Florida Life and Health Insurance Guaranty
Association (FLHIGA), which would be responsible for claims in the event an insurer servicing
the annuities became insolvent.147
In 2021, an actuarial report conducted for the Fund found the Fund retains an ownership
interest in 15 annuities that have an aggregate future value of $12,680,687. In the event of an
insurer insolvency, many of the annuities would be covered by FLHIGA, therefore the actuary
concluded that the Fund’s exposure to contingent liability is $2,403,590. About half of the
remaining annuitants were children when their parents entered into structured settlements with
the Fund; therefore, some of the remaining annuities may continue for another 40 years.148
Audited financial reports state that the Fund had total assets of $15,135,541 at the close of 2020; this
includes $14,888,634 held in investment accounts. 149 Thus, it appears that the Fund has enough assets
to cover its liabilities.
Operating costs have increased in recent years, because the Board of Governors approved the general
manager’s request for an assistant in 2015 and approved 4 percent annual salary increases for the two
Fund employees for 2017, 2018, 2019 and 2020.150 The Fund contributes to an employee pension plan
and pays for legal counsel, accounting and auditing, rent and utilities, travel, and insurance. 151
The following comes from financial statements the Fund shared with its governing board and OIR:
2016 2017 2018 2019 2020
Salaries $181,754.00 $213,668.00 $221,600.00 $229,764.00 $240,417.00
Pension Plan $59,684.00 $52,303.00 $55,677.00 $54,424.00 $45,891.00
Rent, Utilities, and Janitorial $20,336.00 $16,704.00 $16,158.00 $16,758.00 $12,841.00
145 Correspondence from OIR Assistant General Counsel Alyssa S. Lathrop to General Manager of the F lorida Patient’s
Compensation Fund Charles J. Portrero, Nov. 17, 2016; and Minutes of the May 18, 2017, meeting of the Florida Patient’s
Compensation Fund Operations Committee.
146 Correspondence from OIR Assistant General Counsel Alyssa S. Lathrop to General Manager of the Florida Patient’s
Compensation Fund Charles J. Portrero, Nov. 17, 2016; and Correspondence from David Yon, Esq., on behalf of the
Florida Patient’s Compensation Fund, to Susan Herendeen, Esq., of the Insurance and Banking Subcommittee of t he
Florida House of Representatives, Dec. 22. 2021.
147 Correspondence from David Yon, Esq., on behalf of the Florida Patient’s Compensation Fund, to Jane Nelson of the
Office of Insurance Regulation, Aug. 4, 2021.
148 Jack Swisher, ACAS, MAAA, Florida Patient’s Compensation Fund Annuity Insolvency Analysis, June 28, 2021, at 4-5;
and Correspondence from David Yon, Esq., on behalf of the Florida Patient’s Compensation Fund, to Jane Nelson of the
Office of Insurance Regulation, Aug. 4, 2021.
149 Carr Riggs & Ingram CPAs and Advisors, Florida Patient’s Compensation Fund Financial Statements , Dec. 31, 2020,
at 4.
150 Memo to the Florida Patient’s Compensation Fund Operating Committee from General Manager Charles Portrero, Nov.
19, 2018.
151 OIR monitors meetings of the Florida Patient’s Compensation Fund by telephone and receives copies of meeting
materials the Fund provides to its Board of Governors. OIR provided copies of meeting materials from 2011-2020 to the
Insurance and Banking Subcommittee.
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General Counsel $3,500.00 $42,195.00 $36,992.00 $35,339.00 $37,065.00
Accounting and Audit $73,513.00 $58,294.00 $52,578.00 $52,821.00 $39,126.00
Travel & Expenses (staff) $1,463.00 $4,087.00 $3,841.00 $1,962.00 $4,404.00
Travel & Expenses (board) $7,124.00 $20,327.00 $17,627.00 $21,905.00 $22,751.00
Effect of the Bill
The bill provides for a two-year wind down of the Fund that will be supervised by the Chief Financial
Officer through the DFS Division of Rehabilitation and Liquidation. DFS must dissolve the Fund on or
before December 31, 2023; ensure that the Fund has met its obligations to former members and
creditors; and make a final accounting for the finances of the Fund. DFS must attempt to return any
property held by the Fund to its owners; property that cannot be returned to the owner will be
transferred to DFS’s Division of Unclaimed Property. Any remaining money or assets of the Fund will
be transferred to the General Revenue Fund.
The bill also moves financial responsibility requirements for hospitals, which are part of s. 766.105,
F.S., to a new section within ch. 395, F.S., and makes conforming changes to retain the definition of
“health care provider” in laws that are cross referenced with s. 766.105, F.S.
The law152 that created the Fund will be repealed on January 1, 2024.
Effective Date
The bill shall be effective upon becoming a law, except as otherwise provided. The effective date for the
educational tutorial that will be part of the workers’ compensation exemption application process is
January 1, 2023. The effective date changes to reduce financial penalties for non-compliance with
workers’ compensation law is October 1, 2022.
B. SECTION DIRECTORY:
Section 1. Repeals s. 17.0315, F.S., Financial and cash management system; task force.
Section 2. Amends s. 48.151, Service on statutory agents for certain persons.
Section 3. Amends s. 110.123, F.S., State Group Insurance Program.
Section 4. Amends s. 110.131, F.S., Other-personal-services employment.
Section 5. Amends s. 120.541, F.S., Statement of estimated regulatory costs.
Section 6. Amends s. 215.34, F.S., State funds; noncollectible items; procedure.
Section 7. Amends s. 215.93, F.S., Florida Financial Management Information System.
Section 8. Amends s. 215.94, F.S., Designation, duties, and responsibilities of functional owners.
Section 9. Amends s. 216.102, F.S., Filing of financial information; handling by Chief Financial Officer;
penalty for noncompliance.
Section 10. Amends s. 218.32, F.S., Annual financial reports; local government entities.
Section 11. Creates s. 395.061, F.S., Professional liability coverage.
Section 12. Amends s. 414.40, F.S., Stop Inmate Fraud Program established; guidelines.
Section 13. Amends s. 440.02, F.S., Definitions.
152 S. 766.105, F.S.
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Section 14. Amends s. 440.05, F.S., Election of exemption; revocation of election; notice; certification.
Section 15. Amends s. 440.107, F.S., Department powers to enforce employer compliance with
coverage requirements.
Section 16. Amends s. 440.13, F.S., Medical services and supplies; penalty for violations; limitations.
Section 17. Amends s. 440.185, F.S., Notice of injury or death; reports; penalties for violations.
Section 18. Amends s. 440.381, F.S., Application for coverage; reporting payroll; payroll audit
procedures; penalties.
Section 19. Amends s. 497.277, F.S., Other charges.
Section 20. Amends s. 497.369, F.S., Embalmers; licensure as an embalmer by endorsement;
licensure of a temporary embalmer.
Section 21. Amends s. 497.372, F.S., Funeral directing; conduct constituting practice of funeral
directing.
Section 22. Amends s. 497.374, F.S., Funeral directing; licensure as a funeral director by endorsement;
licensure of a temporary funeral director.
Section 23. Amends s. 554.108, F.S., Inspection.
Section 24. Amends s. 544.111, F.S., Fees.
Section 25. Amends s. 554.114, F.S., Prohibitions; penalties.
Section 26. Amends s. 624.307, F.S., General powers; duties.
Section 27. Amends s. 624.422, F.S., Service of process; appointment of Chief Financial Officer as
process agent.
Section 28. Amends s. 624.423, F.S. Serving Process.
Section 29. Amends s. 624.610, F.S., Reinsurance.
Section 30. Amends s. 626.015, F.S., Definitions.
Sections 31, 32, 35, 39, 40, 53, 57, 62, and 63. Amend fingerprint requirements for background checks
that are part of the licensing processes detailed in ss. 626.171, 626.172, 626.202, 626.601, 626.8411,
626.8734, 626.9953, 648.34, and 648.355, F.S., Amendments make it clear that the authority for the
use of fingerprints in background checks comes from s. 626.201, F.S.
Section 33. Creates s. 626.173, F.S., Insurance agency closure; cancellation of licenses.
Section 34. Amends s. 626.201, F.S., Investigation.
Section 36. Amends s. 626.221, F.S., Examination requirements; exemptions.
Section 37. Amends s. 626.311, F.S., Scope of license.
Section 38. Amends s. 626.321, F.S., Limited licenses and registration.
Section 41. Amends s. 626.8412, F.S., License and appointments required.
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Section 42. Amends s. 626.8417, F.S., Title insurance agent licensure; exemptions.
Section 43. Amends s. 626.8421, F.S., Number of appointments permitted or required.
Section 44. Amends s. 626.843, F.S., Renewal; continuation; reinstatement; termination of title
insurance agent’s appointment.
Section 45. Amends s. 626.8433, F.S., Filing of reasons for terminating appointment of title insurance
agents; confidential information.
Section 46. Amends s. 626.8447, F.S., Effect of suspension or revocation upon other licensees,
appointees.
Section 47. Amends s. 626.854, F.S., “Public adjuster” defined; prohibitions.
Section 48. Amends s. 626.8561, F.S., “Public adjuster apprentice” defined.
Section 49. Amends s. 626.865, F.S., Public adjuster qualifications, bond.
Section 50. Amends s. 626.8651, F.S., Public adjuster apprentice appointment; qualifications.
Section 51. Amends s. 626.8696, F.S., Application for adjusting firm license.
Section 52. Amends s. 626.8732, F.S., Nonresident public adjuster’s qualifications, bond.
Section 54. Amends s. 626.906, F.S., Acts constituting Chief Financial Officer as process agent.
Section 55. Amends s. 626.912, F.S., Exemptions from ss. 626.904-626.911.
Section 56. Amends s. 626.937, F.S., Actions against insurer; service of process.
Section 58. Amends s. 633.135, F.S., Firefighter Assistant Grant Program.
Section 59. Amends s. 633.216, F.S., Inspection of Buildings and Equipment; orders; firesafety
inspection training requirements; certification; disciplinary action.
Section 60. Amends s. 633.408, F.S., Firefighter and volunteer firefighter training and certification.
Section 61. Amends s. 633.414, F.S., Retention of firefighter and volunteer firefighter certifications.
Section 64. Amends s. 648.46, F.S., Procedure for disciplinary action against licensees.
Section 65. Amends s. 766.105, F.S., Florida Patient’s Compensation Fund.
Section 66: Amends s. 945.6041, F.S., Inmate Medical Services.
Section 67: Amends s. 985.6441, F.S., Health care services.
Section 68. Provides that the transfer of the Stop Inmate Fraud Program from DFS to DEO shall take
place in accordance with s. 20.06, F.S.
Section 69. Provides that the bill shall be effective July 1, 2022, except as otherwise provided. The bill
proposes an effective date of January 1, 2023, for Sections 14 and 15.
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II. FISCAL ANALYSIS & ECONOMIC IMPACT STATEMENT
A. FISCAL IMPACT ON STATE GOVERNMENT:
1. Revenues:
There is an indeterminate, but likely insignificant, fiscal impact on state revenues. DWC anticipates
a minimal impact from changes to the workers’ compensation fines and penalties assessed,
because the collection rate may increase as the cost of assessed penalties decreases.153 The bill
also deletes a $50 exam fee for boiler inspectors, but no loss of revenue is expected, as the exam
is not conducted by the State Fire Marshal.154
2. Expenditures:
The bill will have an indeterminate, but likely insignificant, negative fiscal impact on state
expenditures. See Fiscal Comments.
B. FISCAL IMPACT ON LOCAL GOVERNMENTS:
1. Revenues:
None.
2. Expenditures:
None.
C. DIRECT ECONOMIC IMPACT ON PRIVATE SECTOR:
Reducing the penalty calculation period and increasing credits for businesses that fail to comply with
the workers’ compensation law, so long as the business has not previously failed to provide workers’
compensation coverage for its employees, should reduce the cost of non-compliance for small
businesses, particularly those in the construction industry.
Exempting schedules of maximum reimbursement for ambulatory surgical centers, healthcare
providers, and hospitals from legislative ratification likely would result in increased fees to providers of
healthcare, but could also force insurers to request rate increases to pay such costs.
Permitting payroll audits by mail, rather than in person, for employers in the construction industry that
have an estimated annual workers’ compensation premium of less than $10,000 could result in modest
cost savings for insurance carriers.
Permitting unaffiliated insurance agents to adjust claims, so long as the agent is also a licensed
adjuster, could create employment opportunities for persons who hold both licenses and increase the
pool of adjusters who can respond in the aftermath of a large storm or catastrophic event.
Terminating the Florida Patient’s Compensation Fund could result in refunds to doctors and hospitals
that were members of the Fund in the late 1970s and early 1980s.
D. FISCAL COMMENTS:
The cost of adding employees of the Division of Rehabilitation and Liquidation to the State Group
Insurance Program is indeterminate. Premiums to be paid by the employees of the Division of
Rehabilitation and Liquidation are the same as early retirees.
Before the dissolution of the Florida Patient’s Compensation Fund, DFS must attempt to return property
held by the Fund to its owners. Any property that cannot be returned to the owner will be transferred to
153 Email from Austin Stowers, Director of Legislative
Affairs, Department of Financial Services, RE: CS/CS/HB 959
Information Requested (Feb. 8, 2022).
154 Id. The exam is conducted by the National Board of Boiler and Pressure Vessel Inspectors.
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DFS’s Division of Unclaimed Property. Any remaining money or assets after the termination of the Fund
will be deposited by DFS in the General Revenue Fund. The Fund currently has a balance of $14.9
million and has not paid a claim since the 1980s. 155
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:
Restricting compensation to public adjusters when a claim is resolved by litigation (Section 47 of the
bill) could deter public adjusters from assisting consumers who have complex disputes with a property
insurer and infringe on the public adjuster’s right to bargain for his or her services.
B. RULE-MAKING AUTHORITY:
Section 14. The bill gives DWC explicit rulemaking authority to administer programs related to
maximum reimbursement allowances established by the Three-Member panel in accordance with s.
440.13(12), F.S.
Section 16. Amendments to s. 440.381, F.S., will require revisions to r. 69O-189.003(b)3, F.A.C.,
promulgated by OIR, relating to payroll audits for workers’ compensation insurance.
C. DRAFTING ISSUES OR OTHER COMMENTS:
None.
IV. AMENDMENTS/COMMITTEE SUBSTITUTE CHANGES
On January 19, 2022, the Insurance & Banking Subcommittee considered the bill, adopted four
amendments, and reported the bill favorably as a committee substitute. The amendments made the
following changes to the bill:
Made changes to the requirements for service of process upon the Chief Financial Officer;
Clarified language related to payroll audits for worker’s compensation insurance;
Corrected a scrivener’s error in a provision related to workers’ compensation compliance laws;
Corrected technical bill drafting errors;
Required that the Florida Patient’s Compensation Fund (Fund) be subject to a two-year wind down
supervised by the Chief Financial Officer;
Required dissolution of the Fund by December 31, 2023; and
Repealed the law that created the Fund on January 1, 2024.
Additionally, the amendments moved financial responsibility requirements for hospitals, which are part of
the law that created the Fund, to a new section within ch. 395, F.S., and made conforming changes to
retain the definition of “health care provider” in laws that are cross referenced with s. 766.105, F.S.
On January 27, 2022, the Finance & Facilities Subcommittee adopted an amendment and reported the bill
favorably as a committee substitute. The amendment removes an unnecessary sentence that relates to the
former requirements of the Florida Patient Compensation Fund, which is being prospectively repealed by
the bill.
The analysis is drafted to the committee substitute as passed by the Finance & Facilities Subcommittee.
155 Id.
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F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
CS/CS/HB 959 2022
1 A bill to be entitled
2 An act relating to Department of Financial Services;
3 repealing s. 17.0315, F.S., relating to the financial
4 and cash management system and task force; amending s.
5 48.151, F.S.; providing an exception to service of
6 process on public entities under certain
7 circumstances; requiring the Department of Financial
8 Services to create a secure online portal as the sole
9 means to accept certain service of process; amending
10 s. 110.123, F.S.; revising definitions; authorizing
11 specified persons relating to the Division of
12 Rehabilitation and Liquidation to purchase coverage in
13 a state group health insurance plan at specified
14 premium costs; providing that the enrollment period
15 for the state group insurance program begins with a
16 specified plan year for certain persons relating to
17 the division; amending s. 110.131, F.S.; conforming a
18 cross-reference; amending s. 120.541, F.S.; revising
19 applicability of certain provisions relating to a
20 specified proposed rule; amending s. 215.34, F.S.;
21 deleting the requirement for specified entities
22 receiving certain charged-back items to prepare a
23 journal transfer; amending s. 215.93, F.S.; renaming a
24 subsystem of the Florida Financial Management
25 Information System; amending s. 215.94, F.S.;
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26 conforming a provision to changes made by the act;
27 amending s. 216.102, F.S.; making technical changes;
28 amending s. 218.32, F.S.; revising legislative intent;
29 providing functions of the Florida Open Financial
30 Statement System; requiring local governments to use
31 the system to file specified reports; providing
32 requirements for the system; revising the list of
33 entities with which the Chief Financial Officer may
34 consult with regard to the system; authorizing, rather
35 than requiring, certain local governmental financial
36 statements to be filed in a specified format; deleting
37 certain requirements for such statements; providing
38 construction; providing exceptions; creating s.
39 395.1061, F.S.; providing definitions; requiring
40 certain hospitals and hospital systems to demonstrate
41 financial responsibility for maintaining professional
42 liability coverage; prohibiting the Agency for Health
43 Care Administration from issuing or renewing licenses
44 of hospitals under certain circumstances; providing
45 exemptions from professional liability coverage
46 requirements; amending s. 414.40, F.S.; transferring
47 the Stop Inmate Fraud Program from the Department of
48 Financial Services to the Department of Economic
49 Opportunity; authorizing the program to provide
50 reports of certain data to the Division of Public
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51 Assistance Fraud for a specified purpose; amending s.
52 440.02, F.S.; revising the definition of the term
53 "employer"; amending s. 440.05, F.S.; revising
54 information that must be submitted with the notice of
55 election to be exempt from workers' compensation
56 coverage; providing the circumstance under which the
57 department must send certain electronic notifications
58 to workers' compensation carriers; providing
59 information included in such notification; requiring
60 certificates of election to be exempt to contain
61 certain notice; deleting a provision requiring certain
62 corporation officers to maintain business records;
63 revising applicability of certificates of election to
64 be exempt; amending s. 440.107, F.S.; revising the
65 timeframe for certain employers to produce specified
66 records under certain circumstances; removing the
67 requirement that specified information be updated
68 daily on certain website; prohibiting employers from
69 entering a payment agreement schedule with the
70 department unless a specified condition is met;
71 revising circumstances that result in immediate
72 reinstatement of stop-work orders; revising penalty
73 assessments; amending s. 440.13, F.S.; revising
74 statewide schedules of maximum reimbursement
75 allowances for medically necessary treatment, care,
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76 and attendance; authorizing the department to adopt
77 rules; amending s. 440.185, F.S.; revising the
78 timeline and methods for workers' compensation
79 carriers to send certain informational brochure to
80 injured workers; revising methods by which such
81 informational brochure is sent to employers; amending
82 s. 440.381, F.S.; specifying workers' compensation
83 policies that require physical onsite audits for a
84 specified class; amending s. 497.277, F.S.; deleting a
85 cap on transferring burial rights fees; amending s.
86 497.369, F.S.; revising requirements for licenses by
87 endorsement to practice embalming; amending s.
88 497.372, F.S.; revising the scope of funeral directing
89 practice; amending s. 497.374, F.S.; revising
90 requirements for licenses by endorsement to practice
91 funeral directing; amending s. 554.108, F.S.;
92 requiring boilers manufactured after a specified date,
93 rather than boilers of certain heat input, to be
94 stamped with a specified code symbol; revising the
95 boilers' information that must be filed; requiring
96 that specified spaces and rooms be equipped with
97 carbon monoxide detector devices; amending s. 554.111,
98 F.S.; deleting a requirement for a specified fee for a
99 certificate of competency; requiring applications for
100 boiler permits to include a specified report; revising
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101 the purpose for special trips that the department is
102 required to make for boiler inspections; amending s.
103 554.114, F.S.; revising the schedules of penalties
104 against boiler insurance companies, inspection
105 agencies, and other persons for specified violations;
106 amending s. 624.307, F.S.; providing that certain
107 regulated persons or unauthorized insurers are
108 required to appoint the Chief Financial Officer as
109 their agents, rather than as their attorneys, to
110 receive service of legal process; revising the method
111 by which the Chief Financial Officer makes the process
112 available; amending s. 624.422, F.S.; requiring
113 insurers to file with the department email-addresses,
114 rather than addresses, of specified persons; providing
115 that a specified method by which process is served
116 upon the Chief Financial Officer is the sole method of
117 service; conforming provisions to changes made by the
118 act; amending s. 624.423, F.S.; revising procedures
119 for service of process; requiring the Chief Financial
120 Officer to promptly notify certain persons of the
121 process and to make the process available to such
122 persons through specified means; revising the method
123 by which records are retained; amending s. 624.610,
124 F.S.; conforming provisions to changes made by the
125 act; amending s. 626.015, F.S.; revising the
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126 definition of the term "unaffiliated insurance agent";
127 amending s. 626.171, F.S.; requiring fingerprints for
128 certain licenses to be processed in accordance with
129 specified laws; amending s. 626.172, F.S.; revising
130 the method by which fingerprints for applications for
131 insurance agency licenses are submitted; deleting a
132 fingerprint processing fee; creating s. 626.173, F.S.;
133 requiring insurance agencies' licenses to be
134 immediately cancelled under certain circumstances;
135 providing the method by which such cancellations must
136 be made; providing duties for certain insurance agency
137 persons within a specified timeframe after cessation
138 of insurance transactions; authorizing the department
139 to impose administrative fines against such persons
140 for specified violations; providing a cap on such
141 fines; authorizing the department and the Office of
142 Insurance Regulation to suspend or revoke licenses
143 under certain circumstances; providing requirements
144 for determining penalties and remedies; amending s.
145 626.201, F.S.; conforming a provision to changes made
146 by the act; providing continuation of jurisdiction of
147 the licensing authority to investigate and prosecute
148 specified violations under certain circumstances;
149 amending s. 626.202, F.S.; conforming provisions to
150 changes made by the act; amending s. 626.221, F.S.;
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151 adding a designation to the list of designations that
152 allow applicants for all-lines adjuster license to be
153 exempt from an examination; amending s. 626.311, F.S.;
154 providing an exception to the prohibition against
155 unaffiliated insurance agents' holding appointments
156 from insurers; amending ss. 626.321, 626.601,
157 626.8411, and 626.8412, F.S.; conforming provisions to
158 changes made by the act; amending s. 626.8417, F.S.;
159 revising requirements to qualify for title insurance
160 agent licenses; amending s. 626.8421, F.S.; requiring
161 title agencies to have separate appointments under
162 certain circumstances; amending s. 626.843, F.S.;
163 providing appointments of title insurance agencies;
164 amending s. 626.8433, F.S.; requiring title insurers
165 that terminate appointments of title insurance
166 agencies to file certain information with the
167 department; amending s. 626.8447, F.S.; providing
168 effects of suspension or revocation of title insurance
169 agency licenses; amending s. 626.854, F.S.; providing
170 restrictions on public adjuster compensations;
171 providing exceptions to such restrictions; amending s.
172 626.8561, F.S.; revising the definition of the term
173 "public adjuster apprentice"; amending s. 626.865,
174 F.S.; revising requirements to qualify for public
175 adjuster licenses; requiring that certain bonds remain
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176 in effect for a specified period after expiration of
177 the license; amending s. 626.8651, F.S.; requiring
178 that certain bonds remain in effect for a specified
179 period after expiration of the public adjuster
180 apprentice license; revising requirements for public
181 adjuster apprentices to be, act as, or hold themselves
182 out to be public adjust apprentices; amending s.
183 626.8696, F.S.; revising requirements for adjusting
184 firm license applications; amending s. 626.8732, F.S.;
185 requiring applicants for nonresident public adjuster
186 licenses to maintain certain bonds after the
187 expiration or termination of licenses; amending ss.
188 626.8734, 626.906, 626.912, 626.937, and 626.9953,
189 F.S.; conforming provisions to changes made by the
190 act; amending s. 633.135, F.S.; providing additional
191 uses for firefighter funds; amending s. 633.216, F.S.;
192 revising requirements for renewal of firesafety
193 inspector certificates; amending s. 633.408, F.S.;
194 revising requirements for the issuance of a
195 Firefighter Certificate of Compliance and Special
196 Certificate of Compliance; deleting provisions
197 relating to requirements to retain a Special
198 Certificate of Compliance; amending s. 633.414, F.S.;
199 providing requirements to retain a Special Certificate
200 of Compliance; revising requirements to retain a
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201 Firefighter Certificate of Compliance; providing a
202 definition; amending ss. 648.34 and 648.355, F.S.;
203 conforming provisions to changes made by the act;
204 amending s. 648.46, F.S.; providing continuation of
205 jurisdiction of the licensing authority to investigate
206 and prosecute specified violations under certain
207 circumstances; amending s. 766.105, F.S.; deleting
208 provisions relating to the duties of the Agency for
209 Health Care Administration and to the board of
210 governors of the Florida Patient's Compensation Fund;
211 requiring that the fund be subject to the supervision
212 and approval of the Chief Financial Officer rather
213 than the board of governors and be dissolved on or
214 before a specified date; providing duties of the
215 department before the legal dissolution of the fund;
216 requiring that provisions relating to the fund be
217 repealed on a specified date; amending ss. 945.6041
218 and 985.6441, F.S.; making technical changes;
219 transferring the Stop Inmate Fraud Program within the
220 Department of Financial Services to the Department of
221 Economic Opportunity by a type two transfer; providing
222 effective dates.
223
224 Be It Enacted by the Legislature of the State of Florida:
225
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226 Section 1. Section 17.0315, Florida Statutes, is repealed.
227 Section 2. Subsections (1) and (3) of section 48.151,
228 Florida Statutes, are amended to read:
229 48.151 Service on statutory agents for certain persons. —
230 (1) When any law designates a public officer, board,
231 agency, or commission as the agent for service of process on any
232 person, firm, or corporation, service of process thereunder
233 shall be made by leaving one copy of the process with the public
234 officer, board, agency, or commission or in the office thereof,
235 or by mailing one copy to the public officer, board, agency, or
236 commission, except as provided in subsection (3). The public
237 officer, board, agency, or commission so served shall retain a
238 record copy and promptly send the copy served, by registered or
239 certified mail, to the person to be served as shown by his or
240 her or its records. Proof of service on the public officer,
241 board, agency, or commission shall be by a notice accepting the
242 process which shall be issued by the public officer, board,
243 agency, or commission promptly after service and filed in the
244 court issuing the process. The notice accepting service shall
245 state the date upon which the copy of the process was mailed by
246 the public officer, board, agency, or commission to the person
247 being served and the time for pleading prescribed by the rules
248 of procedure shall run from this date. The service is valid
249 service for all purposes on the person for whom the public
250 officer, board, agency, or commission is statutory agent for
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251 service of process.
252 (3) The Chief Financial Officer or his or her assistant or
253 deputy or another person in charge of the office is the agent
254 for service of process on all insurers applying for authority to
255 transact insurance in this state, all licensed nonresident
256 insurance agents, all nonresident disability insurance agents
257 licensed pursuant to s. 626.835, any unauthorized insurer under
258 s. 626.906 or s. 626.937, domestic reciprocal insurers,
259 fraternal benefit societies under chapter 632, warranty
260 associations under chapter 634, prepaid limited health service
261 organizations under chapter 636, and persons required to file
262 statements under s. 628.461. As an alternative to service of
263 process made by mail or personal service on the Chief Financial
264 Officer, on his or her assistant or deputy, or on another person
265 in charge of the office, The Department of Financial Services
266 shall may create a secure online portal as the sole means an
267 Internet-based transmission system to accept service of process
268 on the Chief Financial Officer under this section by electronic
269 transmission of documents.
270 Section 3. Subsections (9) through (13) of section
271 110.123, Florida Statutes, are renumbered as subsection (10)
272 through (14), respectively, paragraphs (b), (c), (f), (h), (i),
273 and (o) of subsection (2) and paragraph (i) of subsection (5)
274 are amended, and a new subsection (9) is added to that section,
275 to read:
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276 110.123 State group insurance program.—
277 (2) DEFINITIONS.—As used in ss. 110.123-110.1239, the
278 term:
279 (b) "Enrollee" means all state officers and employees,
280 retired state officers and employees, surviving spouses of
281 deceased state officers and employees, and terminated employees
282 or individuals with continuation coverage who are enrolled in an
283 insurance plan offered by the state group insurance program. The
284 term "Enrollee" includes all state university officers and
285 employees, retired state university officers and empl oyees,
286 surviving spouses of deceased state university officers and
287 employees, and terminated state university employees or
288 individuals with continuation coverage who are enrolled in an
289 insurance plan offered by the state group insurance program. As
290 used in this paragraph, state employees and retired state
291 employees also include employees and retired employees of the
292 Division of Rehabilitation and Liquidation.
293 (c) "Full-time state employees" means employees of all
294 branches or agencies of state government holding salaried
295 positions who are paid by state warrant or from agency funds and
296 who work or are expected to work an average of at least 30 or
297 more hours per week; employees of the Division of Rehabilitation
298 and Liquidation who work or are expected to work an average of
299 at least 30 hours per week; employees paid from regular salary
300 appropriations for 8 months' employment, including university
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301 personnel on academic contracts; and employees paid from other-
302 personal-services (OPS) funds as described in subparagraphs 1.
303 and 2. The term includes all full-time employees of the state
304 universities. The term does not include seasonal workers who are
305 paid from OPS funds.
306 1. For persons hired before April 1, 2013, the term
307 includes any person paid from OPS funds who:
308 a. Has worked an average of at least 30 hours or more per
309 week during the initial measurement period from April 1, 2013,
310 through September 30, 2013; or
311 b. Has worked an average of at least 30 hours or more per
312 week during a subsequent measurement period.
313 2. For persons hired after April 1, 2013, the term
314 includes any person paid from OPS funds who:
315 a. Is reasonably expected to work an average of at least
316 30 hours or more per week; or
317 b. Has worked an average of at least 30 hours or more per
318 week during the person's measurement period.
319 (f) "Part-time state employee" means an employee of any
320 branch or agency of state government paid by state warrant from
321 salary appropriations or from agency funds, or an employee of
322 the Division of Rehabilitation and Liquidation, and who is
323 employed for less than an average of 30 hours per week or, if on
324 academic contract or seasonal or other type of employment which
325 is less than year-round, is employed for less than 8 months
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326 during any 12-month period, but does not include a person paid
327 from other-personal-services (OPS) funds. The term includes all
328 part-time employees of the state universities.
329 (h) "Retired state officer or employee" or "retiree" means
330 any state or state university officer or employee, or, beginning
331 with the 2023 plan year, an employee of the Division of
332 Rehabilitation and Liquidation, who retires under a state
333 retirement system or a state optional annuity or retirement
334 program or is placed on disability retirement, and who was
335 insured under the state group insurance program or the Division
336 of Rehabilitation and Liquidation's group insurance program at
337 the time of retirement, and who begins receiving retirement
338 benefits immediately after retirement from state or state
339 university office or employment. The term also includes any
340 state officer or state employee who retires under the Florida
341 Retirement System Investment Plan established under part II of
342 chapter 121 if he or she:
343 1. Meets the age and service requirements to qualify for
344 normal retirement as set forth in s. 121.021(29); or
345 2. Has attained the age specified by s. 72(t)(2)(A)(i) of
346 the Internal Revenue Code and has 6 years of creditable service.
347 (i) "State agency" or "agency" means any branch,
348 department, or agency of state government. "State agency" or
349 "agency" includes any state university and the Division of
350 Rehabilitation and Liquidation for purposes of this section
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351 only.
352 (o) "Surviving spouse" means the widow or widower of a
353 deceased state officer, full-time state employee, part-time
354 state employee, or retiree if such widow or widower was covered
355 as a dependent under the state group health insurance plan,
356 TRICARE supplemental insurance plan, or a health maintenance
357 organization plan established pursuant to this section, or the
358 Division of Rehabilitation and Liquidation's group insurance
359 program at the time of the death of the deceased officer,
360 employee, or retiree. "Surviving spouse" also means any widow or
361 widower who is receiving or eligible to receive a monthly state
362 warrant from a state retirement system as the beneficiary of a
363 state officer, full-time state employee, or retiree who died
364 prior to July 1, 1979. For the purposes of this section, any
365 such widow or widower shall cease to be a surviving spouse upon
366 his or her remarriage.
367 (5) DEPARTMENT POWERS AND DUTIES.—The department is
368 responsible for the administration of the state group insurance
369 program. The department shall initiate and supervise the program
370 as established by this section and shall adopt such rules as are
371 necessary to perform its responsibilities. To implement this
372 program, the department shall, with prior approval by the
373 Legislature:
374 (i) Contract with a single custodian to provide services
375 necessary to implement and administer the health savings
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376 accounts authorized in subsection (13) (12).
377
378 Final decisions concerning enrollment, the existence of
379 coverage, or covered benefits under the state group insurance
380 program shall not be delegated or deemed to have been delegated
381 by the department.
382 (9) COVERAGE AND ENROLLMENT PERIOD FOR EMPLOYEES,
383 RETIREES, AND WIDOWS AND WIDOWERS OF EMPLOYEES AND RETIREES OF
384 THE DIVISION OF REHABILITATION AND LIQUIDATION.—
385 (a) Beginning with the 2023 plan year:
386 1. A retired employee insured under the Division of
387 Rehabilitation and Liquidation's group insurance program, or a
388 widow or widower of an employee or of a retired employee of the
389 Division of Rehabilitation and Liquidation who is covered as a
390 dependent under the Division of Rehabilitation and Liquidation's
391 group insurance program, may purchase coverage in a state group
392 health insurance plan at the same premium cost as that for a
393 retiree or a surviving spouse, respectively, enrolled in the
394 state group insurance program.
395 2. A terminated employee of the Division of Rehabilitation
396 and Liquidation, or an individual with continuing coverage, who
397 is insured under the Division of Rehabilitation and
398 Liquidation's group insurance program, may purchase coverage in
399 a state group health insurance plan at the same premium cost as
400 that for a terminated employee or an individual with
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401 continuation coverage, respectively, enrolled in the state group
402 insurance program.
403 (b) The enrollment period for the state group insurance
404 program begins with the 2023 plan year for:
405 1. Current and retired employees of the Division of
406 Rehabilitation and Liquidation.
407 2. Widows and widowers of employees and of retired
408 employees of the Division of Rehabilitation and Liquidation.
409 3. Terminated employees of the Division of Rehabilitation
410 and Liquidation, or individuals with continuation coverage, who
411 are insured under the Division of Rehabilitation and
412 Liquidation's group insurance program.
413 Section 4. Subsection (5) of section 110.131, Florida
414 Statutes, is amended to read:
415 110.131 Other-personal-services employment.—
416 (5) Beginning January 1, 2014, an other-personal-services
417 (OPS) employee who has worked an average of at least 30 or more
418 hours per week during the measurement period described in s.
419 110.123(14)(c) or (d) s. 110.123(13)(c) or (d), or who is
420 reasonably expected to work an average of at least 30 or more
421 hours per week following his or her employment, is eligible to
422 participate in the state group insurance program as provided
423 under s. 110.123.
424 Section 5. Paragraph (d) is added to subsection (4) of
425 section 120.541, Florida Statutes, and paragraph (a) of
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426 subsection (2) and subsection (3) of that section are
427 republished, to read:
428 120.541 Statement of estimated regulatory costs.—
429 (2) A statement of estimated regulatory costs shall
430 include:
431 (a) An economic analysis showing whether the rule directly
432 or indirectly:
433 1. Is likely to have an adverse impact on economic growth,
434 private sector job creation or employment, or private sector
435 investment in excess of $1 million in the aggregate within 5
436 years after the implementation of the rule;
437 2. Is likely to have an adverse impact on business
438 competitiveness, including the ability of persons doing business
439 in the state to compete with persons doing business in other
440 states or domestic markets, productivity, or innovation in
441 excess of $1 million in the aggregate within 5 years after the
442 implementation of the rule; or
443 3. Is likely to increase regulatory costs, including any
444 transactional costs, in excess of $1 million in the aggregate
445 within 5 years after the implementation of the rule.
446 (3) If the adverse impact or regulatory costs of the rule
447 exceed any of the criteria established in paragraph (2)(a), the
448 rule shall be submitted to the President of the Senate and
449 Speaker of the House of Representatives no later than 30 days
450 prior to the next regular legislative session, and the rule may
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451 not take effect until it is ratified by the Legislature.
452 (4) Subsection (3) does not apply to the adoption of:
453 (d) Schedules of maximum reimbursement allowances by the
454 three-member panel which are expressly authorized by s. 440.13.
455 Section 6. Subsection (1) of section 215.34, Florida
456 Statutes, is amended to read:
457 215.34 State funds; noncollectible items; procedure.—
458 (1) Any check, draft, or other order for the payment of
459 money in payment of any licenses, fees, taxes, commissions, or
460 charges of any sort authorized to be made under the laws of the
461 state and deposited in the State Treasury as provided herein,
462 which may be returned for any reason by the bank or other payor
463 upon which same shall have been drawn shall be forthwith
464 returned by the Chief Financial Officer for collection to the
465 state officer, the state agency, or the entity of the judicial
466 branch making the deposit. In such case, the Chief Financial
467 Officer may issue a debit memorandum charging an account of the
468 agency, officer, or entity of the judicial branch which
469 originally received the payment. The original of the debit
470 memorandum shall state the reason for the return of the check,
471 draft, or other order and shall accompany the item being
472 returned to the officer, agency, or entity of the judicial
473 branch being charged. The officer, agency, or entity of the
474 judicial branch receiving the charged-back item shall prepare a
475 journal transfer which shall debit the charge against the fund
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476 or account to which the same shall have been originally
477 credited. Such procedure for handling noncollectible items shall
478 not be construed as paying funds out of the State Treasury
479 without an appropriation, but shall be considered as an
480 administrative procedure for the efficient handling of state
481 records and accounts.
482 Section 7. Paragraph (c) of subsection (1) of section
483 215.93, Florida Statutes, is amended to read:
484 215.93 Florida Financial Management Information System. —
485 (1) To provide the information necessary to carry out the
486 intent of the Legislature, there shall be a Florida Financial
487 Management Information System. The Florida Financial Management
488 Information System shall be fully implemented and shall be
489 upgraded as necessary to ensure the efficient operation of an
490 integrated financial management information system and to
491 provide necessary information for the effective operation of
492 state government. Upon the recommendation of the coordinating
493 council and approval of the board, the Florida Financial
494 Management Information System may require data from any state
495 agency information system or information subsystem or may
496 request data from any judicial branch information system or
497 information subsystem that the coordinating council and board
498 have determined to have statewide financial management
499 significance. Each functional owner information subsystem within
500 the Florida Financial Management Information System s hall be
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501 developed in such a fashion as to allow for timely, positive,
502 preplanned, and prescribed data transfers between the Florida
503 Financial Management Information System functional owner
504 information subsystems and from other information systems. The
505 principal unit of the system shall be the functional owner
506 information subsystem, and the system shall include, but shall
507 not be limited to, the following:
508 (c) Financial Cash Management Subsystem.
509 Section 8. Subsection (3) of section 215.94, Florida
510 Statutes, is amended to read:
511 215.94 Designation, duties, and responsibilities of
512 functional owners.—
513 (3) The Chief Financial Officer shall be the functional
514 owner of the Financial Cash Management Subsystem. The Chief
515 Financial Officer shall design, implement, and operate the
516 subsystem in accordance with the provisions of ss. 215.90-
517 215.96. The subsystem shall include, but shall not be limited
518 to, functions for:
519 (a) Recording and reconciling credits and debits to
520 treasury fund accounts.
521 (b) Monitoring cash levels and activities in state bank
522 accounts.
523 (c) Monitoring short-term investments of idle cash.
524 (d) Administering the provisions of the Federal Cash
525 Management Improvement Act of 1990.
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526 Section 9. Subsection (3) of section 216.102, Florida
527 Statutes, is amended to read:
528 216.102 Filing of financial information; handling by Chief
529 Financial Officer; penalty for noncompliance.—
530 (3) The Chief Financial Officer shall:
531 (a) Prepare and furnish to the Auditor General annual
532 financial statements for the state on or before December 31 of
533 each year, using generally accepted accounting principles.
534 (b) Prepare and publish an annual a comprehensive annual
535 financial report for the state in accordance with generally
536 accepted accounting principles on or before February 28 of each
537 year.
538 (c) Furnish the Governor, the President of the Senate, and
539 the Speaker of the House of Representatives with a copy of the
540 annual comprehensive annual financial report prepared pursuant
541 to paragraph (b).
542 (d) Notify each agency and the judicial branch of the data
543 that is required to be recorded to enhance accountability for
544 tracking federal financial assistance.
545 (e) Provide reports, as requested, to executive or
546 judicial branch entities, the President of the Senate, the
547 Speaker of the House of Representatives, and the members of the
548 Florida Congressional Delegation, detailing the federal
549 financial assistance received and disbursed by state agencies
550 and the judicial branch.
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551 (f) Consult with and elicit comments from the Exe cutive
552 Office of the Governor on changes to the Florida Accounting
553 Information Resource Subsystem which clearly affect the
554 accounting of federal funds, so as to ensure consistency of
555 information entered into the Federal Aid Tracking System by
556 state executive and judicial branch entities. While efforts
557 shall be made to ensure the compatibility of the Florida
558 Accounting Information Resource Subsystem and the Federal Aid
559 Tracking System, any successive systems serving identical or
560 similar functions shall preserve such compatibility.
561
562 The Chief Financial Officer may furnish and publish in
563 electronic form the financial statements and the annual
564 comprehensive annual financial report required under paragraphs
565 (a), (b), and (c).
566 Section 10. Paragraph (h) of subsection (1) of section
567 218.32, Florida Statutes, is amended, and paragraph (i) is added
568 to subsection (1) of that section, to read:
569 218.32 Annual financial reports; local governmental
570 entities.—
571 (1)
572 (h) It is the intent of the Legislature to create The
573 Florida Open Financial Statement System must serve as, an
574 interactive repository for governmental financial statements.
575 This system serves as the primary reporting location for
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576 government financial information. A local government shall use
577 the system to file with the department copies of all audit
578 reports compiled pursuant to ss. 11.45 and 218.39. The system
579 must be accessible to the public and must be open to inspection
580 at all times by the Legislature, the Auditor General, and the
581 Chief Inspector General.
582 1. The Chief Financial Officer may consult with
583 stakeholders with regard to, including the department, the
584 Auditor General, a representative of a municipality or county, a
585 representative of a special district, a municipal bond investor,
586 and an information technology professional employed in the
587 private sector, for input on the design and implementation of
588 the Florida Open Financial Statement System.
589 2. The Chief Financial Officer may choose contractors to
590 build one or more eXtensible Business Reporting Language (XBRL)
591 taxonomies suitable for state, county, municipal, and special
592 district financial filings and to create a software tool that
593 enables financial statement filers to easily create XBRL
594 documents consistent with such taxonomies. The Chief Financial
595 Officer must recruit and select contractors through an open
596 request for proposals process pursuant to chapter 287.
597 3. The Chief Financial Officer must require that all work
598 products be completed no later than December 31, 2021.
599 4. If the Chief Financial Officer deems the work products
600 adequate, all local governmental financial statements for fiscal
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601 years ending on or after September 1, 2022, may must be filed in
602 XBRL format prescribed by the Chief Financial Officer and must
603 meet the validation requirements of the relevant taxonomy.
604 5. A local government that begins filing in XBRL format
605 may not be required to make filings in Portable Document Format.
606 (i) Each local governmental entity that enters all
607 required information in the Florida Open Financial Statement
608 System is deemed to be compliant with this section, except as
609 otherwise provided in this section.
610 Section 11. 395.1061, Florida Statutes, is created to
611 read:
612 395.1061 Professional liability coverage.—
613 (1) As used in this section, the term:
614 (a) "Committee" means a committee or board of a hospital
615 established to make recommendations, policies, or decisions
616 regarding patient institutional utilization, patient treatment,
617 or institutional staff privileges or to perform other
618 administrative or professional purposes or functions.
619 (b) "Covered individuals" means the officers; trustees;
620 volunteer workers; trainees; committee members, including
621 physicians, osteopathic physicians, podiatric physicians, and
622 dentists; and employees of the hospital other than employed
623 physicians licensed under chapter 458, physician assistants
624 licensed under chapter 458, osteopathic physicians licensed
625 under chapter 459, dentists licensed under chapter 466, and
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626 podiatric physicians licensed under chapter 461. However, with
627 respect to a hospital, the term also includes house physicians,
628 interns, employed physician residents in a resident training
629 program, and physicians performing purely administrative duties
630 for the hospital instead of treating patients.
631 (c) "Hospital system" means two or more hospitals
632 associated by common ownership or corporate affiliation.
633 (d) "House physician" means any physician, osteopathic
634 physician, podiatric physician, or dentist at a hospital,
635 except:
636 1. The physician, osteopathic physician, podiatric
637 physician, or dentist who has staff privileges at a hospital,
638 provides emergency room services, or performs a medical or
639 dental service for a fee; or
640 2. An anesthesiologist, pathologist, or radiologist.
641 (e) "Occurrence" means an accident or incident, including
642 continuous or repeated exposure to certain harmful conditions,
643 which results in patient injuries.
644 (f) "Per claim" means all claims per patient arising out
645 of an occurrence.
646 (2) Each hospital, unless exempted under paragraph (3)(b),
647 must demonstrate financial responsibility for maintaining
648 professional liability coverage to pay claims and costs
649 ancillary thereto arising out of the rendering of or failure to
650 render medical care or services and for bodily injury or
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651 property damage to the person or property of any patient arising
652 out of the activities of the hospital or arising out of the
653 activities of covered individuals, to the satisfaction of the
654 Agency for Health Care Administration, by meeting one of the
655 following requirements:
656 (a) Establish an escrow account in an amount equivalent to
657 $10,000 per claim for each bed in such hospital, not to exceed a
658 $2.5 million annual aggregate.
659 (b) Obtain professional liability coverage in an amount
660 equivalent to $10,000 or more per claim for each bed in such
661 hospital from a private insurer, from the Joint Underwriting
662 Association established under s. 627.351(4), or through a plan
663 of self-insurance as provided in s. 627.357. However, a hospital
664 may not be required to obtain such coverage in an amount
665 exceeding a $2.5 million annual aggregate.
666 (3)(a) Each hospital, unless exempted under paragraph (b),
667 shall provide evidence of compliance and remain in continuous
668 compliance with the professional liability coverage provisions
669 of this section. The Agency for Health Care Administration may
670 not issue or renew the license of any hospital that does not
671 provide evidence of compliance or that provides evidence of
672 insufficient coverage.
673 (b) Any hospital operated by an agency, subdivision, or
674 instrumentality of the state is exempt from the provisions of
675 this section.
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676 (4) A hospital system may meet the professional liability
677 coverage requirement with an escrow account, insurance, or self -
678 insurance policies if the $10,000 per claim and $2.5 million
679 annual aggregate are met for each hospital in the hospital
680 system.
681 Section 12. Section 414.40, Florida Statutes, is amended
682 to read:
683 414.40 Stop Inmate Fraud Program established; guidelines. —
684 (1) There is created within the Department of Economic
685 Opportunity Financial Services a Stop Inmate Fraud Program.
686 (2) The Department of Economic Opportunity Financial
687 Services is directed to implement the Stop Inmate Fraud Program
688 in accordance with the following guidelines:
689 (a) The program shall establish procedures for sharing
690 public records not exempt from the public records law among
691 social services agencies regarding the identities of persons
692 incarcerated in state correctional institutions, as defined in
693 s. 944.02, and or in county, municipal, or regional jails or
694 other detention facilities of local governments under chapters
695 chapter 950 and or chapter 951 who are wrongfully receiving
696 public assistance benefits or entitlement benefits.
697 (b) Pursuant to these procedures, the program shall have
698 access to records containing correctional information not exempt
699 from the public records law on incarcerated persons which have
700 been generated as criminal justice information. As used in this
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701 paragraph, the terms "record" and "criminal justice information"
702 have the same meanings as provided in s. 943.045.
703 (c) Database searches shall be conducted of the inmate
704 population at each correctional institution or other detention
705 facility. A correctional institution or a detention facility
706 shall provide the Stop Inmate Fraud Program with the information
707 necessary to identify persons wrongfully receiving benefits in
708 the medium requested by the Stop Inmate Fraud Program if the
709 correctional institution or detention facility maintains the
710 information in that medium.
711 (d) Data obtained from correctional institutions or other
712 detention facilities shall be compared with the client files of
713 the Department of Children and Families, the Department of
714 Economic Opportunity, and other state or local agencies as
715 needed to identify persons wrongfully obtaining benefits. Data
716 comparisons shall be accomplished during periods of low
717 information demand by agency personnel to minimize inconvenience
718 to the agency.
719 (e) Results of data comparisons shall be furnished to the
720 appropriate office for use in the county in which the data
721 originated. The program may provide reports of the data it
722 obtains to appropriate state, federal, and local government
723 agencies or governmental entities, including, but not limited
724 to:
725 1. The Child Support Enforcement Program of the Department
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726 of Revenue, so that the data may be used as locator information
727 on persons being sought for purposes of child support.
728 2. The Social Security Administration, so that the data
729 may be used to reduce federal entitlement fraud within the
730 state.
731 3. The Division of Public Assistance Fraud of the
732 Department of Financial Services, so that an investigation of
733 the fraudulent receipt of public assistance may be facilitated.
734 (f) Reports by the program to another agency or entity
735 shall be generated bimonthly, or as otherwise directed, and
736 shall be designed to accommodate that agency's or entity's
737 particular needs for data.
738 (g) Only those persons with active cases, or with cases
739 that were active during the incarceration period, s hall be
740 reported, in order that the funding agency or entity, upon
741 verification of the data, may take whatever action is deemed
742 appropriate.
743 (h) For purposes of program review and analysis, each
744 agency or entity receiving data from the program shall submit
745 reports to the program which indicate the results of how the
746 data was used.
747 Section 13. Paragraph (a) of subsection (16) of section
748 440.02, Florida Statutes, is amended to read:
749 440.02 Definitions.—When used in this chapter, unless the
750 context clearly requires otherwise, the following terms shall
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751 have the following meanings:
752 (16)(a) "Employer" means the state and all political
753 subdivisions thereof, all public and quasi-public corporations
754 therein, every person carrying on any employment, and the legal
755 representative of a deceased person or the receiver or trustees
756 of any person. The term "Employer" also includes employment
757 agencies and, employee leasing companies that, and similar
758 agents who provide employees to other business entities or
759 persons. If the employer is a corporation, parties in actual
760 control of the corporation, including, but not limited to, the
761 president, officers who exercise broad corporate powers,
762 directors, and all shareholders who directly or indirectly own a
763 controlling interest in the corporation, are considered the
764 employer for the purposes of ss. 440.105, 440.106, and 440.107.
765 Section 14. Effective January 1, 2023, subsections (11)
766 through (15) of section 440.05, Florida Statutes, are renumbered
767 as subsections (10) through (14), respectively, subsections (3)
768 and (4) and present subsections (10) and (12) of that section
769 are amended, to read:
770 440.05 Election of exemption; revocation of election;
771 notice; certification.—
772 (3) The notice of election to be exempt must be
773 electronically submitted to the department by the officer of a
774 corporation who is allowed to claim an exemption as provided by
775 this chapter and must list the name, date of birth, valid driver
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776 license number or Florida identification card number, and all
777 certified or registered licenses issued pursuant to chapter 489
778 held by the person seeking the exemption, the registration
779 number of the corporation filed with the Division of
780 Corporations of the Department of State, and the percentage of
781 ownership evidencing the required ownership under this chapter.
782 The notice of election to be exempt must identify each
783 corporation that employs the person electing the exemption and
784 must list the social security number or federal tax
785 identification number of each such employer and the additional
786 documentation required by this section. In addition, the notice
787 of election to be exempt must provide that the officer electing
788 an exemption is not entitled to benefits under this chapter,
789 must provide that the election does not exceed exemption limits
790 for officers provided in s. 440.02, and must certify that any
791 employees of the corporation whose officer elects an exemption
792 are covered by workers' compensation insurance, and must certify
793 that the officer electing an exemption has completed an online
794 workers' compensation coverage and compliance tutorial developed
795 by the department. Upon receipt of the notice of the election to
796 be exempt, receipt of all application fees, and a determination
797 by the department that the notice meets the requirements of this
798 subsection, the department shall issue a certification of the
799 election to the officer, unless the department determines that
800 the information contained in the notice is invalid. The
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801 department shall revoke a certificate of election to be exempt
802 from coverage upon a determination by the department that the
803 person does not meet the requirements for exemption or that the
804 information contained in the notice of election to be exempt is
805 invalid. The certificate of election must list the name of the
806 corporation listed in the request for exemption. A new
807 certificate of election must be obtained each time the person is
808 employed by a new or different corporation that is not listed on
809 the certificate of election. Upon written request from a
810 workers' compensation carrier, the department shall send
811 thereafter an electronic notification to the carrier identifying
812 each of its policyholders for which a notice of election to be
813 exempt has been issued or for which a notice of revocation to be
814 exempt has been received A notice of the certificate of election
815 must be sent to each workers' compensation carrier identified in
816 the request for exemption. Upon filing a notice of revocation of
817 election, an officer who is a subcontractor or an officer of a
818 corporate subcontractor must notify her or his contractor. Upon
819 revocation of a certificate of election of exemption by the
820 department, the department shall notify the workers'
821 compensation carriers identified in the request for exemption.
822 (4) The notice of election to be exempt from the
823 provisions of this chapter must contain a notice that clearly
824 states in substance the following: "Any person who, knowingly
825 and with intent to injure, defraud, or deceive the department or
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826 any employer or employee, insurance company, or any other
827 person, files a notice of election to be exempt containing any
828 false or misleading information is guilty of a felony of the
829 third degree." Each person filing a notice of election to be
830 exempt shall personally sign the notice and attest that he or
831 she has reviewed, understands, and acknowledges the foregoing
832 notice. The certificate of election to be exempt must contain
833 the following notice: "This certificate of election to be exempt
834 is NOT a license issued by the Department of Business and
835 Professional Regulation (DBPR). To determine if the
836 certificateholder is required to have a license to perform work
837 or to verify the license of the certificateholder, go to (insert
838 DBPR's website address for where to find this information)."
839 (10) Each officer of a corporation who is actively engaged
840 in the construction industry and who elects an exemption from
841 this chapter shall maintain business records as specified by the
842 department by rule.
843 (11)(12) Certificates of election to be exempt issued
844 under subsection (3) shall apply only to the corporate officer
845 named on the notice of election to be exempt and apply only
846 within the scope of the business or trade listed on the notice
847 of election to be exempt.
848 Section 15. Effective January 1, 2023, paragraphs (a) a nd
849 (d) of subsection (7) of section 440.107, Florida Statutes, are
850 amended to read:
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851 440.107 Department powers to enforce employer compliance
852 with coverage requirements.—
853 (7)(a) Whenever the department determines that an employer
854 who is required to secure the payment to his or her employees of
855 the compensation provided for by this chapter has failed to
856 secure the payment of workers' compensation required by this
857 chapter or to produce the required business records under
858 subsection (5) within 21 10 business days after receipt of the
859 written request of the department, such failure shall be deemed
860 an immediate serious danger to public health, safety, or welfare
861 sufficient to justify service by the department of a stop-work
862 order on the employer, requiring the cessation of all business
863 operations. If the department makes such a determination, the
864 department shall issue a stop-work order within 72 hours. The
865 order shall take effect when served upon the employer or, for a
866 particular employer worksite, when served at that worksite. In
867 addition to serving a stop-work order at a particular worksite
868 which shall be effective immediately, the department shall
869 immediately proceed with service upon the employer which shall
870 be effective upon all employer worksites in the state for which
871 the employer is not in compliance. A stop-work order may be
872 served with regard to an employer's worksite by posting a copy
873 of the stop-work order in a conspicuous location at the
874 worksite. Information related to an employer's stop -work order
875 shall be made available on the division's website, be updated
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876 daily, and remain on the website for at least 5 years. The order
877 shall remain in effect until the department issues an order
878 releasing the stop-work order upon a finding that the employer
879 has come into compliance with the coverage requirements of this
880 chapter and has paid any penalty assessed under this section.
881 The department may issue an order of conditional release from a
882 stop-work order to an employer upon a finding that the employer
883 has complied with the coverage requirements of this chapter,
884 paid a penalty of $1,000 as a down payment, and agreed to remit
885 periodic payments of the remaining penalty amount pursu ant to a
886 payment agreement schedule with the department or pay the
887 remaining penalty amount in full. An employer may not enter into
888 a payment agreement schedule unless the employer has fully paid
889 any previous penalty assessed under this section. If an order of
890 conditional release is issued, failure by the employer to pay
891 the penalty in full or enter into a payment agreement with the
892 department within 21 28 days after service of the first penalty
893 assessment calculation stop-work order upon the employer, or to
894 meet any term or condition of such penalty payment agreement,
895 shall result in the immediate reinstatement of the stop -work
896 order and the entire unpaid balance of the penalty shall become
897 immediately due.
898 (d)1. In addition to any penalty, stop-work order, or
899 injunction, the department shall assess against an any employer
900 who has failed to secure the payment of compensation as required
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901 by this chapter a penalty equal to 2 times the amount the
902 employer would have paid in premium when applying approved
903 manual rates to the employer's payroll during periods for which
904 it failed to secure the payment of workers' compensation
905 required by this chapter within the preceding 12-month 2-year
906 period or $1,000, whichever is greater. However, for an employer
907 who is issued a stop-work order for materially understating or
908 concealing payroll or has been previously issued a stop -work
909 order or order of penalty assessment, the preceding 24-month
910 period shall be used to calculate the penalty as specified in
911 this subparagraph.
912 a. For an employer employers who has have not been
913 previously issued a stop-work order or order of penalty
914 assessment, the department must allow the employer to receive a
915 credit for the initial payment of the estimated annual workers'
916 compensation policy premium, as determined by the carrier, to be
917 applied to the penalty. Before applying the credit to the
918 penalty, the employer must provide the department with
919 documentation reflecting that the employer has secured the
920 payment of compensation pursuant to s. 440.38 and proof of
921 payment to the carrier. In order for the department to apply a
922 credit for an employer that has secured workers' compensation
923 for leased employees by entering into an employee leasing
924 contract with a licensed employee leasing company, the employer
925 must provide the department with a written confirmation, by a
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926 representative from the employee leasing company, of the dollar
927 or percentage amount attributable to the initial estimated
928 workers' compensation expense for leased employees, and proof of
929 payment to the employee leasing company. The credit may not be
930 applied unless the employer provides the documentation and proof
931 of payment to the department within 21 28 days after the
932 employer's receipt of the written request to produce bus iness
933 records for calculating the penalty under this subparagraph
934 service of the stop-work order or first order of penalty
935 assessment upon the employer.
936 b. For an employer employers who has have not been
937 previously issued a stop-work order or order of penalty
938 assessment, the department must reduce the final assessed
939 penalty by 25 percent if the employer has complied with
940 administrative rules adopted pursuant to subsection (5) and has
941 provided such business records to the department within 21 10
942 business days after the employer's receipt of the written
943 request to produce business records for calculating the penalty
944 under this subparagraph.
945 c. For an employer who has not been previously issued a
946 stop-work order or order of penalty assessment, the departmen t
947 must reduce the final assessed penalty by 15 percent if the
948 employer correctly answers at least 80 percent of the questions
949 from an online workers' compensation coverage and compliance
950 tutorial, developed by the department, within 21 days after the
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951 employer's receipt of the written request to produce business
952 records for calculating the penalty under this subparagraph. The
953 online tutorial must be taken in a department office location
954 identified by rule.
955
956 c. The $1,000 penalty shall be assessed against the employer
957 even if the calculated penalty after the credit provided in sub-
958 subparagraph a., the and 25 percent reduction provided in sub-
959 subparagraph b., and the 15 percent reduction provided in sub -
960 subparagraph c., as applicable, have been applied is less than
961 $1,000.
962 2. Any subsequent violation within 5 years after the most
963 recent violation shall, in addition to the penalties set forth
964 in this subsection, be deemed a knowing act within the meaning
965 of s. 440.105.
966 Section 16. Subsection (12) of section 440.13, Florida
967 Statutes, is amended to read:
968 440.13 Medical services and supplies; penalty for
969 violations; limitations.—
970 (12) CREATION OF THREE-MEMBER PANEL; GUIDES OF MAXIMUM
971 REIMBURSEMENT ALLOWANCES.—
972 (a) A three-member panel is created, consisting of the
973 Chief Financial Officer, or the Chief Financial Officer's
974 designee, and two members to be appointed by the Governor,
975 subject to confirmation by the Senate, one member who, on
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976 account of present or previous vocation, employment, or
977 affiliation, shall be classified as a representative of
978 employers, the other member who, on account of previous
979 vocation, employment, or affiliation, shall be classified as a
980 representative of employees. The panel shall determine statewide
981 schedules of maximum reimbursement allowances for medically
982 necessary treatment, care, and attendance provided by
983 physicians, hospitals, ambulatory surgical centers, work -
984 hardening programs, pain programs, and durable medical
985 equipment. The maximum reimbursement allowances for inpatien t
986 hospital care shall be based on a schedule of per diem rates, to
987 be approved by the three-member panel no later than March 1,
988 1994, to be used in conjunction with a precertification manual
989 as determined by the department, including maximum hours in
990 which an outpatient may remain in observation status, which
991 shall not exceed 23 hours. All compensable charges for hospital
992 outpatient care shall be reimbursed at 75 percent of usual and
993 customary charges, except as otherwise provided by this
994 subsection. Annually, the three-member panel shall adopt
995 schedules of maximum reimbursement allowances for physicians,
996 hospital inpatient care, hospital outpatient care, ambulatory
997 surgical centers, work-hardening programs, and pain programs. An
998 individual physician, hospital, ambulatory surgical center, pain
999 program, or work-hardening program shall be reimbursed:
1000 1. either The agreed-upon contract price; or
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1001 2. If there is no agreed-upon contract price, the lesser
1002 of the provider's billed charge or the maximum reimbursement
1003 allowance in the appropriate schedule.
1004 (b) It is the intent of the Legislature to increase the
1005 schedule of maximum reimbursement allowances for selected
1006 physicians effective January 1, 2004, and to pay for the
1007 increases through reductions in payments to hospitals. Revisions
1008 developed pursuant to this subsection are limited to the
1009 following:
1010 1. Payments for outpatient physical, occupational, and
1011 speech therapy provided by hospitals shall be reduced to the
1012 schedule of maximum reimbursement allowances for these services
1013 which applies to nonhospital providers.
1014 2. Payments for scheduled outpatient nonemergency
1015 radiological and clinical laboratory services that are not
1016 provided in conjunction with a surgical procedure shall be
1017 reduced to the schedule of maximum reimbursement allowances for
1018 these services which applies to nonhospital providers.
1019 3. Outpatient reimbursement for scheduled surgeries shall
1020 be reduced from 75 percent of charges to 60 percent of charges.
1021 4. Maximum reimbursement for a physician licensed under
1022 chapter 458 or chapter 459 shall be increased to 110 percent of
1023 the reimbursement allowed by Medicare, using appropriate codes
1024 and modifiers or the medical reimbursement level adopted by the
1025 three-member panel as of January 1, 2003, whichever is greater.
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1026 5. Maximum reimbursement for surgical procedures shall be
1027 increased to 140 percent of the reimbursement allowed by
1028 Medicare or the medical reimbursement level adopted by the
1029 three-member panel as of January 1, 2003, whichever is greater.
1030 (c) As to reimbursement for a prescription medication, the
1031 reimbursement amount for a prescription shall be the average
1032 wholesale price plus $4.18 for the dispensing fee. For
1033 repackaged or relabeled prescription medications dispensed by a
1034 dispensing practitioner as provided in s. 465.0276, the fee
1035 schedule for reimbursement shall be 112.5 percent of the average
1036 wholesale price, plus $8.00 for the dispensing fee. For purposes
1037 of this subsection, the average wholesale price shall be
1038 calculated by multiplying the number of units dispensed times
1039 the per-unit average wholesale price set by the original
1040 manufacturer of the underlying drug dispensed by the
1041 practitioner, based upon the published manufacturer's average
1042 wholesale price published in the Medi-Span Master Drug Database
1043 as of the date of dispensing. All pharmaceutical claims
1044 submitted for repackaged or relabeled prescription medications
1045 must include the National Drug Code of the original
1046 manufacturer. Fees for pharmaceuticals and pharmaceutical
1047 services shall be reimbursable at the applicable fee schedule
1048 amount except where the employer or carrier, or a service
1049 company, third party administrator, or any entity acting on
1050 behalf of the employer or carrier directly contracts with the
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1051 provider seeking reimbursement for a lower amount.
1052 (d) Reimbursement for all fees and other charges for such
1053 treatment, care, and attendance, including treatment, care, and
1054 attendance provided by any hospital or other health care
1055 provider, ambulatory surgical center, work-hardening program, or
1056 pain program, must not exceed the amounts provided by the
1057 uniform schedule of maximum reimbursement allowances as
1058 determined by the panel or as otherwise provided in this
1059 section. This subsection also applies to independent medical
1060 examinations performed by health care providers under this
1061 chapter. In determining the uniform schedule, the panel shall
1062 first approve the data which it finds representative of
1063 prevailing charges in the state for similar treatment, care, and
1064 attendance of injured persons. Each health care provider, health
1065 care facility, ambulatory surgical center, work-hardening
1066 program, or pain program receiving workers' compensation
1067 payments shall maintain records verifying their usual charges.
1068 In establishing the uniform schedule of maximum reimbursement
1069 allowances, the panel must consider:
1070 1. The levels of reimbursement for similar treatment,
1071 care, and attendance made by other health care programs or
1072 third-party providers;
1073 2. The impact upon cost to employers for providin g a level
1074 of reimbursement for treatment, care, and attendance which will
1075 ensure the availability of treatment, care, and attendance
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1076 required by injured workers;
1077 3. The financial impact of the reimbursement allowances
1078 upon health care providers and health care facilities, including
1079 trauma centers as defined in s. 395.4001, and its effect upon
1080 their ability to make available to injured workers such
1081 medically necessary remedial treatment, care, and attendance.
1082 The uniform schedule of maximum reimbursement allowances must be
1083 reasonable, must promote health care cost containment and
1084 efficiency with respect to the workers' compensation health care
1085 delivery system, and must be sufficient to ensure availability
1086 of such medically necessary remedial treatment, care, and
1087 attendance to injured workers; and
1088 4. The most recent average maximum allowable rate of
1089 increase for hospitals determined by the Health Care Board under
1090 chapter 408.
1091 (e) In addition to establishing the uniform schedule of
1092 maximum reimbursement allowances, the panel shall:
1093 1. Take testimony, receive records, and collect data to
1094 evaluate the adequacy of the workers' compensation fee schedule,
1095 nationally recognized fee schedules and alternative methods of
1096 reimbursement to health care providers and health care
1097 facilities for inpatient and outpatient treatment and care.
1098 2. Survey health care providers and health care facilities
1099 to determine the availability and accessibility of workers'
1100 compensation health care delivery systems for injured workers.
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1101 3. Survey carriers to determine the estimated impact on
1102 carrier costs and workers' compensation premium rates by
1103 implementing changes to the carrier reimbursement schedule or
1104 implementing alternative reimbursement methods.
1105 4. Submit recommendations on or before January 15, 2017,
1106 and biennially thereafter, to the President of the Senate and
1107 the Speaker of the House of Representatives on methods to
1108 improve the workers' compensation health care delivery system.
1109
1110 The department, as requested, shall provide data to the panel,
1111 including, but not limited to, utilization trends in the
1112 workers' compensation health care delivery system. The
1113 department shall provide the panel with an annual report
1114 regarding the resolution of medical reimbursement disputes and
1115 any actions pursuant to subsection (8). The department shall
1116 provide administrative support and service to the panel to the
1117 extent requested by the panel and may adopt rules necessary to
1118 administer this subsection. For prescription medication
1119 purchased under the requirements of this subsection, a
1120 dispensing practitioner shall not possess such medication unless
1121 payment has been made by the practitioner, the practitioner's
1122 professional practice, or the practitioner's practice management
1123 company or employer to the supplying manufacturer, wholesaler,
1124 distributor, or drug repackager within 60 days of the dispensing
1125 practitioner taking possession of that medication.
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1126 Section 17. Subsection (3) of section 440.185, Florida
1127 Statutes, is amended to read:
1128 440.185 Notice of injury or death; reports; penalties for
1129 violations.—
1130 (3) Within 3 business days after the employer or the
1131 employee informs the carrier of an injury, the carrier shall
1132 send by regular mail or e-mail to the injured worker an
1133 informational brochure approved by the department which sets
1134 forth in clear and understandable language an explanation of the
1135 rights, benefits, procedures for obtaining benefits and
1136 assistance, criminal penalties, and obligations of injured
1137 workers and their employers under the Florida Workers'
1138 Compensation Law. Annually, the carrier or its third-party
1139 administrator shall send by regular mail or e-mail to the
1140 employer an informational brochure approved by the department
1141 which sets forth in clear and understandable language an
1142 explanation of the rights, benefits, procedures for obtaining
1143 benefits and assistance, criminal penalties, and obligations of
1144 injured workers and their employers under the Florida Workers'
1145 Compensation Law. All such informational brochures shall contain
1146 a notice that clearly states in substance the following: "Any
1147 person who, knowingly and with intent to injure, defraud, or
1148 deceive any employer or employee, insurance company, or self -
1149 insured program, files a statement of claim containing any false
1150 or misleading information commits a felony of the third degree."
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1151 Section 18. Subsection (3) of section 440.381, Florida
1152 Statutes, is amended to read:
1153 440.381 Application for coverage; reporting payroll;
1154 payroll audit procedures; penalties.—
1155 (3) The Financial Services Commission, in consultation
1156 with the department, shall establish by rule minimum
1157 requirements for audits of payroll and classifications in order
1158 to ensure that the appropriate premium is charged for workers'
1159 compensation coverage. The rules must shall ensure that audits
1160 performed by both carriers and employers are adequate to provide
1161 that all sources of payments to employees, subcontractors, and
1162 independent contractors are have been reviewed and that the
1163 accuracy of classification of employees is has been verified.
1164 The rules must require shall provide that employers in all
1165 classes other than the construction class be audited at least
1166 not less frequently than biennially and may provide for more
1167 frequent audits of employers in specified classifications based
1168 on factors such as amount of premium, type of business, loss
1169 ratios, or other relevant factors. In no event shall Employers
1170 in the construction class, generating more than the amount of
1171 premium required to be experience rated must, be audited at
1172 least less than annually. The annual audits required for
1173 construction classes must shall consist of physical onsite
1174 audits for policies only if the estimated annual premium is
1175 $10,000 or more. Payroll verification audit rules must include,
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1176 but need not be limited to, the use of state and federal reports
1177 of employee income, payroll and other accounting records,
1178 certificates of insurance maintained by subcontractors, and
1179 duties of employees. At the completion of an audit, the employer
1180 or officer of the corporation and the auditor must print and
1181 sign their names on the audit document and attach proof of
1182 identification to the audit document.
1183 Section 19. Subsection (2) of section 497.277, Florida
1184 Statutes, is amended to read:
1185 497.277 Other charges.—Other than the fees for the sale of
1186 burial rights, burial merchandise, and burial services, no other
1187 fee may be directly or indirectly charged, contracted for, or
1188 received by a cemetery company as a condition for a cus tomer to
1189 use any burial right, burial merchandise, or burial service,
1190 except for:
1191 (2) Charges paid for transferring burial rights from one
1192 purchaser to another; however, no such fee may exceed $50.
1193 Section 20. Paragraph (b) of subsection (1) of secti on
1194 497.369, Florida Statutes, is amended to read:
1195 497.369 Embalmers; licensure as an embalmer by
1196 endorsement; licensure of a temporary embalmer.—
1197 (1) The licensing authority shall issue a license by
1198 endorsement to practice embalming to an applicant who has
1199 remitted an examination fee set by rule of the licensing
1200 authority not to exceed $200 and who the licensing authority
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1201 certifies:
1202 (b)1. Holds a valid license in good standing to practice
1203 embalming in another state of the United States and has engaged
1204 in the full-time, licensed practice of embalming in that state
1205 for at least 5 years, provided that, when the applicant secured
1206 her or his original license, the requirements for licensure were
1207 substantially equivalent to or more stringent than those
1208 existing in this state; or
1209 2. Meets the qualifications for licensure in s. 497.368,
1210 except that the internship requirement shall be deemed to have
1211 been satisfied by 1 year's practice as a licensed embalmer in
1212 another state, and has, within 10 years before prior to the date
1213 of application, successfully completed a state, regional, or
1214 national examination in mortuary science, which, as determined
1215 by rule of the licensing authority, is substantially equivalent
1216 to or more stringent than the examination given by the licensing
1217 authority.
1218 Section 21. Paragraphs (b) and (f) of subsection (1) of
1219 section 497.372, Florida Statutes, are amended to read:
1220 497.372 Funeral directing; conduct constituting practice
1221 of funeral directing.—
1222 (1) The practice of funeral directing shall be construed
1223 to consist of the following functions, which may be performed
1224 only by a licensed funeral director:
1225 (b) Planning or arranging, on an at-need basis, the
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1226 details of funeral services, embalming, cremation, or other
1227 services relating to the final disposition of human remains, and
1228 including the removal of such remains from the state; setting
1229 the time of the services; establishing the type of services to
1230 be rendered; acquiring the services of the clergy; and obtaining
1231 vital information for the filing of death certificates and
1232 obtaining of burial transit permits.
1233 (f) Directing, being in charge or apparent charge of, or
1234 supervising, directly or indirectly, any memorial service held
1235 prior to or within 72 hours of the burial or cremation, if such
1236 memorial service is sold or arranged by a licensee.
1237 Section 22. Paragraph (b) of subsection (1) of section
1238 497.374, Florida Statutes, is amended to read:
1239 497.374 Funeral directing; licensure as a funeral director
1240 by endorsement; licensure of a temporary funeral director.—
1241 (1) The licensing authority shall issue a license by
1242 endorsement to practice funeral directing to an applicant who
1243 has remitted a fee set by rule of the licensing authority not to
1244 exceed $200 and who:
1245 (b)1. Holds a valid license in good standing to practice
1246 funeral directing in another state of the United States and has
1247 engaged in the full-time, licensed practice of funeral directing
1248 in that state for at least 5 years, provided that, when the
1249 applicant secured her or his original license, the requirements
1250 for licensure were substantially equivalent to or more stringent
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1251 than those existing in this state; or
1252 2. Meets the qualifications for licensure in s. 497.373 ,
1253 except that the applicant need not hold an associate degree or
1254 higher if the applicant holds a diploma or certificate from an
1255 accredited program of mortuary science, and has successfully
1256 completed a state, regional, or national examination in mortuary
1257 science or funeral service arts, which, as determined by rule of
1258 the licensing authority, is substantially equivalent to or more
1259 stringent than the examination given by the licensing authority.
1260 Section 23. Subsection (6) of section 554.108, Florida
1261 Statutes, is renumbered as subsection (7), subsection (1) is
1262 amended, and a new subsection (6) is added to that section, to
1263 read:
1264 554.108 Inspection.—
1265 (1) The inspection requirements of this chapter apply only
1266 to boilers located in public assembly locations. A potable hot
1267 water supply boiler with an a heat input of 200,000 British
1268 thermal units (Btu) per hour and above, up to an a heat input
1269 not exceeding 400,000 Btu per hour, is exempt from inspection ;
1270 however, such an exempt boiler, if manufactured after July 1,
1271 2022, but must be stamped with the A.S.M.E. code symbol.
1272 Additionally, "HLW" and the boiler's A.S.M.E data report of a
1273 boiler with an input of 200,000 to 400,000 Btu per hour must be
1274 filed as required under s. 554.103(2).
1275 (6) Each enclosed space or room containing a boiler
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1276 regulated under this chapter which is fired by the direct
1277 application of energy from the combustion of fuels and which is
1278 located in any portion of a public lodging establishment under
1279 s. 509.242 shall be equipped with one or more carbon monoxide
1280 detector devices.
1281 Section 24. Paragraphs (a) and (e) of subsection (1) and
1282 paragraph (a) of subsection (2) of section 554.111, Florida
1283 Statutes, are amended to read:
1284 554.111 Fees.—
1285 (1) The department shall charge the following fees:
1286 (a) For an applicant for a certificate of competency, the
1287 initial application fee shall be $50, and the annual renewal fee
1288 shall be $30. The fee for examination shall be $50.
1289 (e) An application for a boiler permit must include the
1290 manufacturer's data report applicable certificate inspection fee
1291 provided in paragraph (b).
1292 (2) Not more than an amount equal to one certificate
1293 inspection fee may be charged or collected for any and all
1294 boiler inspections in any inspection period, except as otherwise
1295 provided in this chapter.
1296 (a) When it is necessary to make a special trip for
1297 testing and verification inspections to observe the application
1298 of a hydrostatic test, an additional fee equal to the fee for a
1299 certificate inspection of the boiler must be charged.
1300 Section 25. Subsection (4) of section 554.114, Florida
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1301 Statutes, is amended to read:
1302 554.114 Prohibitions; penalties.—
1303 (4) A boiler insurance company, authorized inspection
1304 agency, or other person in violation of this section for more
1305 than 30 days shall pay a fine of $10 per day for the subsequent
1306 first 10 days of noncompliance, $50 per day for the subsequent
1307 20 days of noncompliance, and $100 per day for each subsequent
1308 day over 20 days of noncompliance thereafter.
1309 Section 26. Subsection (9) of section 624.307, Florida
1310 Statutes, is amended to read:
1311 624.307 General powers; duties.—
1312 (9) Upon receiving service of legal process issued in any
1313 civil action or proceeding in this state against any regulated
1314 person or any unauthorized insurer under s. 626.906 or s.
1315 626.937 that which is required to appoint the Chief Financial
1316 Officer as its agent attorney to receive service of all legal
1317 process, the Chief Financial Officer shall make the process
1318 available through a secure online portal, as attorney, may, in
1319 lieu of sending the process by registered or certified mail,
1320 send the process or make it available by any other verifiable
1321 means, including, but not limited to, making the documents
1322 available by electronic transmission from a secure website
1323 established by the department to the person last designated by
1324 the regulated person or the unauthorized insurer to receive the
1325 process. When process documents are made available
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1326 electronically, the Chief Financial Officer shall promptly send
1327 a notice of receipt of service of process to the person last
1328 designated by the regulated person or unauthorized insurer to
1329 receive legal process. The notice must state the date and manner
1330 in which the copy of the process was made available to the
1331 regulated person or unauthorized insurer being served and
1332 contain the uniform resource locator (URL) where for a hyperlink
1333 to access files and information on the department's website to
1334 obtain a copy of the process may be obtained.
1335 Section 27. Section 624.422, Florida Statutes, is amended
1336 to read:
1337 624.422 Service of process; appointment of Chief Financial
1338 Officer as process agent.—
1339 (1) Each licensed insurer, whether domestic, foreign, or
1340 alien, shall be deemed to have appointed the Chief Financial
1341 Officer and her or his successors in office as its agent
1342 attorney to receive service of all legal process issued against
1343 it in any civil action or proceeding in this state; and process
1344 so served shall be valid and binding upon the insurer.
1345 (2) Before Prior to its authorization to transact
1346 insurance in this state, each insurer shall file with the
1347 department designation of the name and e-mail address of the
1348 person to whom process against it served upon the Chief
1349 Financial Officer is to be made available through the
1350 department's secure online portal forwarded. Each insurer shall
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1351 also file with the department designation of the name and e-mail
1352 address of the person to whom the department shall forward civil
1353 remedy notices filed under s. 624.155. The insurer may change a
1354 designation at any time by a new filing.
1355 (3) Service of process submitted through the department's
1356 secure online portal upon the Chief Financial Officer as the
1357 insurer's agent attorney pursuant to such an appointment shall
1358 be the sole method of service of process upon an authorized
1359 domestic, foreign, or alien insurer in this state.
1360 Section 28. Subsection (1) of section 624.423, Florida
1361 Statutes, is amended to read:
1362 624.423 Serving process.—
1363 (1) Service of process upon the Chief Financial Officer as
1364 process agent of the insurer under s. 624.422 and s. 626.937
1365 shall be made by serving a copy of the process upon the Chief
1366 Financial Officer or upon her or his assistant, deputy, or other
1367 person in charge of her or his office. Service may also be made
1368 by mail or electronically as provided in s. 48.151(3) s. 48.151.
1369 Upon receiving such service, the Chief Financial Officer shall
1370 retain a record of the process copy and promptly notify and make
1371 forward one copy of the process available through the
1372 department's secure online portal by registered or certified
1373 mail or by other verifiable means, as provided under s.
1374 624.307(9), to the person last designated by the insurer to
1375 receive the same, as provided under s. 624.422(2). For purposes
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1376 of this section, records shall may be retained electronically as
1377 paper or electronic copies.
1378 Section 29. Paragraph (f) of subsection (3) and paragraph
1379 (d) of subsection (4) of section 624.610, Florida Statutes, are
1380 amended to read:
1381 624.610 Reinsurance.—
1382 (3)
1383 (f) If the assuming insurer is not authorized or
1384 accredited to transact insurance or reinsurance in this state
1385 pursuant to paragraph (a) or paragraph (b), the credit permitted
1386 by paragraph (c) or paragraph (d) must not be allowed unless the
1387 assuming insurer agrees in the reinsurance agreements:
1388 1.a. That in the event of the failure of the assuming
1389 insurer to perform its obligations under the terms of the
1390 reinsurance agreement, the assuming insurer, at the request of
1391 the ceding insurer, shall submit to the jurisdiction of any
1392 court of competent jurisdiction in any state of the United
1393 States, will comply with all requirements necessary to give the
1394 court jurisdiction, and will abide by the final decision of the
1395 court or of any appellate court in the event of an appeal; and
1396 b. To designate the Chief Financial Officer, pursuant to
1397 s. 48.151(3) s. 48.151, as its true and lawful agent attorney
1398 upon whom may be served any lawful process in any action, suit,
1399 or proceeding instituted by or on behalf of the ceding company.
1400 2. This paragraph is not intended to conflict with or
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1401 override the obligation of the parties to a reinsurance
1402 agreement to arbitrate their disputes, if this obligation is
1403 created in the agreement.
1404 (4) Credit must be allowed when the reinsurance is ceded
1405 to an assuming insurer meeting the requirements of this
1406 subsection.
1407 (d) The assuming insurer must, in a form specified by the
1408 commission:
1409 1. Agree to provide prompt written notice and explanation
1410 to the office if the assuming insurer falls below the minimum
1411 requirements set forth in paragraph (b) or paragraph (c), or if
1412 any regulatory action is taken against it for serious
1413 noncompliance with applicable law of any jurisdiction.
1414 2. Consent in writing to the jurisdiction of the courts of
1415 this state and to the designation of the Chief Financial
1416 Officer, pursuant to s. 48.151(3) s. 48.151, as its true and
1417 lawful agent attorney upon whom may be served any lawful process
1418 in any action, suit, or proceeding instituted by or on behalf of
1419 the ceding insurer. This subparagraph does not limit or alter in
1420 any way the capacity of parties to a reinsurance agreement to
1421 agree to an alternative dispute resolution mechanism, except to
1422 the extent that such agreement is unenforceable under applicable
1423 insolvency or delinquency laws.
1424 3. Consent in writing to pay all final judgments, wherever
1425 enforcement is sought, obtained by a ceding insurer or its legal
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1426 successor which have been declared enforceable in the
1427 jurisdiction where the judgment was obtained.
1428 4. Confirm in writing that it will include in each
1429 reinsurance agreement a provision requiring the assuming insurer
1430 to provide security in an amount equal to 100 percent of the
1431 assuming insurer's liabilities attributable to reinsurance ceded
1432 pursuant to that agreement, if the assuming insurer resists
1433 enforcement of a final judgment that is enforceable under the
1434 law of the jurisdiction in which it was obtained or enforcement
1435 of a properly enforceable arbitration award, whether obtained by
1436 the ceding insurer or by its legal successor on behalf of its
1437 resolution estate.
1438 5. Confirm in writing that it is not presently
1439 participating in any solvent scheme of arrangement which
1440 involves this state's ceding insurers, and agree to notify the
1441 ceding insurer and the office and to provide security in an
1442 amount equal to 100 percent of the assuming insurer's
1443 liabilities to the ceding insurer if the assuming insurer enters
1444 into such a solvent scheme of arrangement. Such security must be
1445 consistent with subsection (5) or as specified by commission
1446 rule.
1447 Section 30. Subsection (20) of section 626.015, Florida
1448 Statutes, is amended to read:
1449 626.015 Definitions.—As used in this part:
1450 (20) "Unaffiliated insurance agent" means a licensed
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1451 insurance agent, except a limited lines agent, who is self -
1452 appointed and who practices as an independent consultant in the
1453 business of analyzing or abstracting insurance policies,
1454 providing insurance advice or counseling, or making specific
1455 recommendations or comparisons of insurance products for a fee
1456 established in advance by written contract signed by the
1457 parties. An unaffiliated insurance agent may not be affiliated
1458 with an insurer, insurer-appointed insurance agent, or insurance
1459 agency contracted with or employing insurer-appointed insurance
1460 agents. A licensed adjuster who is also an unaffiliated
1461 insurance agent may obtain an adjuster appointment in order to
1462 adjust claims while holding an unaffiliated appointment on the
1463 agent license.
1464 Section 31. Subsection (4) of section 626.171, Florida
1465 Statutes, is amended to read:
1466 626.171 Application for license as an agent, customer
1467 representative, adjuster, service representative, or reinsurance
1468 intermediary.—
1469 (4) An applicant for a license under this chapter as an
1470 agent, customer representative, adjuster, service
1471 representative, or reinsurance intermediary must submit a set of
1472 the individual applicant's fingerprints, or, if the applicant is
1473 not an individual, a set of the fingerprints of the sole
1474 proprietor, majority owner, partners, officers, and directors,
1475 to the department and must pay the fingerprint processing fee
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1476 set forth in s. 624.501. Fingerprints must be processed in
1477 accordance with s. 624.34 and used to investigate the
1478 applicant's qualifications pursuant to s. 626.201. The
1479 fingerprints must be taken by a law enforcement agency,
1480 designated examination center, or other department-approved
1481 entity. The department shall require all designated examination
1482 centers to have fingerprinting equipment and to take
1483 fingerprints from any applicant or prospective applicant who
1484 pays the applicable fee. The department may not approve an
1485 application for licensure as an agent, customer service
1486 representative, adjuster, service representative, or reinsurance
1487 intermediary if fingerprints have not been submitted.
1488 Section 32. Paragraph (f) of subsection (2) of section
1489 626.172, Florida Statutes, is amended to read:
1490 626.172 Application for insurance agency license. —
1491 (2) An application for an insurance agency license must be
1492 signed by an individual required to be listed in the application
1493 under paragraph (a). An insurance agency may permit a third
1494 party to complete, submit, and sign an application on the
1495 insurance agency's behalf; however, the insurance agency is
1496 responsible for ensuring that the information on the application
1497 is true and correct and is accountable for any misstatements or
1498 misrepresentations. The application for an insurance agency
1499 license must include:
1500 (f) The fingerprints, submitted in accordance with s.
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1501 626.171(4), of each of the following:
1502 1. A sole proprietor;
1503 2. Each individual required to be listed in the
1504 application under paragraph (a); and
1505 3. Each individual who directs or participates in the
1506 management or control of an incorporated agency whose shares are
1507 not traded on a securities exchange.
1508
1509 Fingerprints must be taken by a law enforcement agency or other
1510 entity approved by the department and must be accompanied by the
1511 fingerprint processing fee specified in s. 624.501. Fingerprints
1512 must be processed in accordance with s. 624.34. However,
1513 Fingerprints need not be filed for an individual who is
1514 currently licensed and appointed under this chapter. This
1515 paragraph does not apply to corporations whose voting shares are
1516 traded on a securities exchange.
1517 Section 33. Section 626.173, Florida Statutes, is created
1518 to read:
1519 626.173 Insurance agency closure; cancellation of
1520 licenses.—
1521 (1) If a licensed insurance agency permanently ceases the
1522 transacting of insurance or ceases the transacting of insurance
1523 for more than 31 days, the agent in charge, director of the
1524 agency, or other officer listed on the original application for
1525 licensure shall immediately cancel the insurance agency's
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1526 license by completing and submitting a form to notify the Bureau
1527 of Licensing of the Division of Insurance Agent and Agency
1528 Services within the department of the cancellation of the
1529 license.
1530 (2) Within 30 days after the agency ceases the transacting
1531 of insurance, the agent in charge, director of the agency, or
1532 other officer listed on the original application for licensure
1533 shall:
1534 (a) Notify all insurers by which the agency or agent in
1535 charge is appointed of the agency's cessation of operations, the
1536 date on which operations ceased, the identity of any agency or
1537 agent to which the agency's current book of business has been
1538 transferred, and the method by which agency records may be
1539 obtained during the time periods specified in ss. 626.561 and
1540 626.748.
1541 (b) Notify all policyholders currently insured by a policy
1542 written, produced, or serviced by the agency of the agency's
1543 cessation of operations; the date on which operations ceased;
1544 and the identity of the agency or agent to which the agency's
1545 current book of business has been transferred or, if no transfer
1546 has occurred, a statement directing the policyholder to contact
1547 the insurance company for assistance in locating a licensed
1548 agent to service the policy.
1549 (c) Notify all premium finance companies through which
1550 active policies are financed of the agency's cessation of
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1551 operations, the date on which operations ceased, and the
1552 identity of the agency or agent to which the agency's current
1553 book of business has been transferred.
1554 (d) Ensure that all funds held in a fiduciary capacity are
1555 properly distributed to the rightful owners.
1556 (3)(a) The department or office may, in a proceeding
1557 initiated pursuant to chapter 120, impose an administrative fine
1558 against the agent in charge or director or officer of the agency
1559 found in the proceeding to have violated any provision of this
1560 section. A proceeding may not be initiated and a fine may not
1561 accrue until after the person has been notified in writing of
1562 the nature of the violation, has been afforded 10 business days
1563 to correct the violation, and has failed to do so.
1564 (b) A fine imposed under this subsection may not exceed
1565 the amounts specified in s. 626.681 per violation.
1566 (c) The department or office may, in addition to the
1567 imposition of an administrative fine under this subsection, also
1568 suspend or revoke the license of the licensee fined under this
1569 subsection.
1570 (d) In imposing any administrative penalty or remedy
1571 provided under this subsection, the department or office shall
1572 take into account the appropriateness of the penalty with
1573 respect to the size of the financial resources and the good
1574 faith of the person charged, the gravity of the violation, the
1575 history of previous violations, and other matters as justice may
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1576 require.
1577 Section 34. Subsection (3) of section 626.201, Florida
1578 Statutes, is amended, and subsection (4) is added to that
1579 section, to read:
1580 626.201 Investigation.—
1581 (3) An inquiry or investigation of the applicant's
1582 qualifications, character, experience, background, and fitness
1583 must include submission of the applicant's fingerprints , in
1584 accordance with s. 626.171(4), to the Department of Law
1585 Enforcement and the Federal Bureau of Investigation and
1586 consideration of any state criminal records, federal criminal
1587 records, or local criminal records obtained from these agencies
1588 or from local law enforcement agencies.
1589 (4) The expiration, nonrenewal, or surrender of a license
1590 under this chapter does not eliminate jurisdiction of the
1591 licensing authority to investigate and prosecute for a violation
1592 committed by the licensee while licensed under this chapter. The
1593 prosecution of any matter may be initiated or continued
1594 notwithstanding the withdrawal of a complaint.
1595 Section 35. Section 626.202, Florida Statutes, is amended
1596 to read:
1597 626.202 Fingerprinting requirements.—
1598 (1) The requirements for completion and submission of
1599 fingerprints under this chapter in accordance with s. 626.171(4)
1600 are deemed to be met when an individual currently licensed under
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1601 this chapter seeks additional licensure and has previously
1602 submitted fingerprints to the department within the past 48
1603 months. However, the department may require the individual to
1604 file fingerprints if it has reason to believe that an applicant
1605 or licensee has been found guilty of, or pleaded guilty or nolo
1606 contendere to, a felony or a crime related to the business of
1607 insurance in this state or any other state or jurisdiction.
1608 (2) If there is a change in ownership or control of any
1609 entity licensed under this chapter, or if a new partner,
1610 officer, or director is employed or appointed, a set of
1611 fingerprints of the new owner, partner, officer, or director
1612 must be filed with the department or office within 30 days after
1613 the change. The acquisition of 10 percent or more of the voting
1614 securities of a licensed entity is considered a change of
1615 ownership or control. The fingerprints must be submitted in
1616 accordance with s. 626.171(4) taken by a law enforcement agency
1617 or other department-approved entity and be accompanied by the
1618 fingerprint processing fee in s. 624.501.
1619 Section 36. Paragraph (j) of subsection (2) of section
1620 626.221, Florida Statutes, is amended to read:
1621 626.221 Examination requirement; exemptions.—
1622 (2) However, an examination is not necessary for any of
1623 the following:
1624 (j) An applicant for license as an all-lines adjuster who
1625 has the designation of Accredited Claims Adjuster (ACA) from a
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1626 regionally accredited postsecondary institution in this state,
1627 Certified All Lines Adjuster (CALA) from Kaplan Financial
1628 Education, Associate in Claims (AIC) from the Insurance
1629 Institute of America, Professional Claims Adjuster (PCA) from
1630 the Professional Career Institute, Professional Property
1631 Insurance Adjuster (PPIA) from the HurriClaim Training Academy,
1632 Certified Adjuster (CA) from ALL LINES Training, Certified
1633 Claims Adjuster (CCA) from AE21 Incorporated, Claims Adjuster
1634 Certified Professional (CACP) from WebCE, Inc., Accredited
1635 Insurance Claims Specialist (AICS) from Encore Claim Services,
1636 or Universal Claims Certification (UCC) from Claims and
1637 Litigation Management Alliance (CLM) whose curriculum has been
1638 approved by the department and which includes comprehensive
1639 analysis of basic property and casualty lines of insurance and
1640 testing at least equal to that of standard department testing
1641 for the all-lines adjuster license. The department shall adopt
1642 rules establishing standards for the approval of curriculum.
1643 Section 37. Subsection (6) of section 626.311, Florida
1644 Statutes, is amended to read:
1645 626.311 Scope of license.—
1646 (6) An agent who appoints his or her license as an
1647 unaffiliated insurance agent may not hold an appointment from an
1648 insurer for any license he or she holds, with the exception of
1649 an adjuster license; transact, solicit, or service an insurance
1650 contract on behalf of an insurer; interfere with commissions
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1651 received or to be received by an insurer-appointed insurance
1652 agent or an insurance agency contracted with or employing
1653 insurer-appointed insurance agents; or receive compensation or
1654 any other thing of value from an insurer, an insurer-appointed
1655 insurance agent, or an insurance agency contracted with or
1656 employing insurer-appointed insurance agents for any transaction
1657 or referral occurring after the date of appointment as an
1658 unaffiliated insurance agent. An unaffiliated insurance agent
1659 may continue to receive commissions on sales that occurred
1660 before the date of appointment as an unaffiliated insurance
1661 agent if the receipt of such commissions is disclosed when
1662 making recommendations or evaluating products for a client that
1663 involve products of the entity from which the commissions are
1664 received. An adjuster who holds an adjuster license and who is
1665 also an unaffiliated insurance agent may obtain an adjuster
1666 appointment while maintaining his or her unaffiliated insurance
1667 agent appointment and may adjust claims and receive compensation
1668 in accordance with the authority granted by the adjuster license
1669 and appointment.
1670 Section 38. Paragraph (h) of subsection (1) of section
1671 626.321, Florida Statutes, is amended to read:
1672 626.321 Limited licenses and registration.—
1673 (1) The department shall issue to a qualified applicant a
1674 license as agent authorized to transact a limited class of
1675 business in any of the following categories of limited lines
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1676 insurance:
1677 (h) Portable electronics insurance.—License for property
1678 insurance or inland marine insurance that covers only loss,
1679 theft, mechanical failure, malfunction, or damage for portable
1680 electronics.
1681 1. The license may be issued only to:
1682 a. Employees or authorized representatives of a licensed
1683 general lines agent; or
1684 b. The lead business location of a retail vendor that
1685 sells portable electronics insurance. The lead business location
1686 must have a contractual relationship with a general lines agent.
1687 2. Employees or authorized representatives of a licensee
1688 under subparagraph 1. may sell or offer for sale portable
1689 electronics coverage without being subject to licensure as an
1690 insurance agent if:
1691 a. Such insurance is sold or offered for sale at a
1692 licensed location or at one of the licensee's branch locations
1693 if the branch location is appointed by the licensed lead
1694 business location or its appointing insurers;
1695 b. The insurer issuing the insurance directly supervises
1696 or appoints a general lines agent to supervise the sale of such
1697 insurance, including the development of a training program for
1698 the employees and authorized representatives of vendors that are
1699 directly engaged in the activity of selling or offering the
1700 insurance; and
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1701 c. At each location where the insurance is offered,
1702 brochures or other written materials that provide the
1703 information required by this subparagraph are made available to
1704 all prospective customers. The brochures or written materials
1705 may include information regarding portable electronics
1706 insurance, service warranty agreements, or other incidental
1707 services or benefits offered by a licensee.
1708 3. Individuals not licensed to sell portable electronics
1709 insurance may not be paid commissions based on the sale of such
1710 coverage. However, a licensee who uses a compensation plan for
1711 employees and authorized representatives which includes
1712 supplemental compensation for the sale of noninsurance products,
1713 in addition to a regular salary or hourly wages, may include
1714 incidental compensation for the sale of portable electronics
1715 insurance as a component of the overall compensation plan.
1716 4. Brochures or other written materials related to
1717 portable electronics insurance must:
1718 a. Disclose that such insurance may duplicate coverage
1719 already provided by a customer's homeowners insurance policy,
1720 renters insurance policy, or other source of coverage;
1721 b. State that enrollment in insurance coverage is not
1722 required in order to purchase or lease portable electronics or
1723 services;
1724 c. Summarize the material terms of the insurance coverage,
1725 including the identity of the insurer, the identity of the
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1726 supervising entity, the amount of any applicable deductible and
1727 how it is to be paid, the benefits of coverage, and key terms
1728 and conditions of coverage, such as whether portable electronics
1729 may be repaired or replaced with similar make and model
1730 reconditioned or nonoriginal manufacturer parts or equipment;
1731 d. Summarize the process for filing a claim, including a
1732 description of how to return portable electronics and the
1733 maximum fee applicable if the customer fails to comply with
1734 equipment return requirements; and
1735 e. State that an enrolled customer may cancel coverage at
1736 any time and that the person paying the premium will receive a
1737 refund of any unearned premium.
1738 5. A licensed and appointed general lines agent is not
1739 required to obtain a portable electronics insurance license to
1740 offer or sell portable electronics insurance at locations
1741 already licensed as an insurance agency, but may apply for a
1742 portable electronics insurance license for branch locations not
1743 otherwise licensed to sell insurance.
1744 6. A portable electronics license authorizes the sale of
1745 individual policies or certificates under a group or master
1746 insurance policy. The license also authorizes the sale of
1747 service warranty agreements covering only portable electronics
1748 to the same extent as if licensed under s. 634.419 or s.
1749 634.420.
1750 7. A licensee may bill and collect the premium for the
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1751 purchase of portable electronics insurance provided that:
1752 a. If the insurance is included with the purchase or lease
1753 of portable electronics or related services, the licensee
1754 clearly and conspicuously discloses that insurance coverage is
1755 included with the purchase. Disclosure of the stand -alone cost
1756 of the premium for same or similar insurance must be made on the
1757 customer's bill and in any marketing materials made available at
1758 the point of sale. If the insurance is not included, the charge
1759 to the customer for the insurance must be separately itemized on
1760 the customer's bill.
1761 b. Premiums are incidental to other fees collected, are
1762 maintained in a manner that is readily identifiable, and are
1763 accounted for and remitted to the insurer or supervising entity
1764 within 60 days of receipt. Licensees are not required to
1765 maintain such funds in a segregated account.
1766 c. All funds received by a licensee from an enrolled
1767 customer for the sale of the insurance are considered funds held
1768 in trust by the licensee in a fiduciary capacity for the benefit
1769 of the insurer. Licensees may receive compensation for billing
1770 and collection services.
1771 8. Notwithstanding any other provision of law, the terms
1772 for the termination or modification of coverage under a policy
1773 of portable electronics insurance are those set forth in the
1774 policy.
1775 9. Notice or correspondence required by the policy, or
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1776 otherwise required by law, may be provided by electronic means
1777 if the insurer or licensee maintains proof that the notice or
1778 correspondence was sent. Such notice or correspondence may be
1779 sent on behalf of the insurer or licensee by the general lines
1780 agent appointed by the insurer to supervise the administration
1781 of the program. For purposes of this subparagraph, an enrolled
1782 customer's provision of an electronic mail address to the
1783 insurer or licensee is deemed to be consent to receive notices
1784 and correspondence by electronic means if a conspicuously
1785 located disclosure is provided to the customer indicating the
1786 same.
1787 10. The provisions of this chapter requiring submission of
1788 fingerprints requirements in s. 626.171(4) do not apply to
1789 licenses issued to qualified entities under this paragra ph.
1790 11. A branch location that sells portable electronics
1791 insurance may, in lieu of obtaining an appointment from an
1792 insurer or warranty association, obtain a single appointment
1793 from the associated lead business location licensee and pay the
1794 prescribed appointment fee under s. 624.501 if the lead business
1795 location has a single appointment from each insurer or warranty
1796 association represented and such appointment applies to the lead
1797 business location and all of its branch locations. Branch
1798 location appointments shall be renewed 24 months after the
1799 initial appointment date of the lead business location and every
1800 24 months thereafter. Notwithstanding s. 624.501, the renewal
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1801 fee applicable to such branch location appointments is $30 per
1802 appointment.
1803 12. For purposes of this paragraph:
1804 a. "Branch location" means any physical location in this
1805 state at which a licensee offers its products or services for
1806 sale.
1807 b. "Portable electronics" means personal, self-contained,
1808 easily carried by an individual, battery-operated electronic
1809 communication, viewing, listening, recording, gaming, computing
1810 or global positioning devices, including cell or satellite
1811 phones, pagers, personal global positioning satellite units,
1812 portable computers, portable audio listening, video viewing or
1813 recording devices, digital cameras, video camcorders, portable
1814 gaming systems, docking stations, automatic answering devices,
1815 and other similar devices and their accessories, and service
1816 related to the use of such devices.
1817 c. "Portable electronics transaction" means the sale or
1818 lease of portable electronics or a related service, including
1819 portable electronics insurance.
1820 Section 39. Subsection (5) of section 626.601, Florida
1821 Statutes, is amended to read:
1822 626.601 Improper conduct; inquiry; fingerprinting.—
1823 (5) If the department or office, after investigation, has
1824 reason to believe that an individual may have been found guilty
1825 of or pleaded guilty or nolo contendere to a felony or a crime
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1826 related to the business of insurance in this or any other state
1827 or jurisdiction, the department or office may require the
1828 individual to file with the department or office a complete set
1829 of his or her fingerprints, in accordance with s. 626.171(4),
1830 which shall be accompanied by the fingerprint processing fee set
1831 forth in s. 624.501. The fingerprints shall be taken by an
1832 authorized law enforcement agency or other department -approved
1833 entity.
1834 Section 40. Paragraph (d) of subsection (2) of section
1835 626.8411, Florida Statutes, is amended, and paragraph (f) is
1836 added to subsection (1) of that section, to read:
1837 626.8411 Application of Florida Insurance Code provisions
1838 to title insurance agents or agencies.—
1839 (1) The following provisions applicable to general lines
1840 agents or agencies also apply to title insurance agents or
1841 agencies:
1842 (f) Section 626.172(2)(f), relating to fingerprints.
1843 (2) The following provisions of part I do not apply to
1844 title insurance agents or title insurance agencies:
1845 (d) Section 626.172, except for paragraph (2)(f) of that
1846 section, relating to agent in full-time charge.
1847 Section 41. Paragraph (b) of subsection (1) of section
1848 626.8412, Florida Statutes, is amended to read:
1849 626.8412 License and appointments required.—
1850 (1) Except as otherwise provided in this part:
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1851 (b) A title insurance agent may not sell a title insurance
1852 policy issued by an insurer for which the agent and the agency
1853 do does not hold a current appointment.
1854 Section 42. Paragraph (a) of subsection (3) of section
1855 626.8417, Florida Statutes, is amended to read:
1856 626.8417 Title insurance agent licensure; exemptions.—
1857 (3) The department may not grant or issue a license as a
1858 title insurance agent to an individual who is found by the
1859 department to be untrustworthy or incompetent, who does not meet
1860 the qualifications for examination specified in s. 626.8414, or
1861 who does not meet the following qualifications:
1862 (a) Within the 4 years immediately preceding the date of
1863 the application for license, the applicant must have completed a
1864 40-hour classroom course in title insurance, 3 hours of which
1865 are on the subject matter of ethics, as approved by the
1866 department, or must have had at least 12 months of experience in
1867 responsible title insurance duties, under the supervision of a
1868 licensed title insurance agent, title insurer, or attorney while
1869 working in the title insurance business as a substantially full -
1870 time, bona fide employee of a title insurance agency, title
1871 insurance agent, title insurer, or attorney who conducts real
1872 estate closing transactions and issues title insurance policies
1873 but who is exempt from licensure under subsection (4). If an
1874 applicant's qualifications are based upon the periods of
1875 employment at responsible title insurance duties, the applicant
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1876 must submit, with the license application, an affidavit of the
1877 applicant and of the employer affirming the period of such
1878 employment, that the employment was substantially full time, and
1879 giving a brief abstract of the nature of the duties performed by
1880 the applicant.
1881 Section 43. Section 626.8421, Florida Statutes, is amended
1882 to read:
1883 626.8421 Number of appointments permitted or required. —A
1884 title agent and a title agency shall be required to have a
1885 separate appointment as to each insurer by which they are he or
1886 she is appointed as agents agent. As a part of each appointment
1887 there shall be a certified statement or affidavit of an
1888 appropriate officer or official of the appointing insurer
1889 stating that to the best of the insurer's knowledge and belief
1890 the applicant, or its principals in the case of a corporation or
1891 other legal entity, has met the requirements of s. 626.8417.
1892 Section 44. Subsections (1) and (2) of section 626.843,
1893 Florida Statutes, are amended to read:
1894 626.843 Renewal, continuation, reinstatement, termination
1895 of title insurance agent's and title insurance agency's
1896 appointments appointment.—
1897 (1) Appointments the appointment of a title insurance
1898 agent and a title insurance agency shall continue in force until
1899 suspended, revoked, or otherwise terminated, but subject to a
1900 renewed request filed by the insurer every 24 months after the
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1901 original issue dates date of the appointments appointment,
1902 accompanied by payments payment of the renewal appointment fees
1903 fee and taxes as prescribed in s. 624.501.
1904 (2) Title insurance agent and title insurance agency
1905 appointments shall be renewed pursuant to s. 626.381 for
1906 insurance representatives in general.
1907 Section 45. Subsection (1) of section 626.8433, Florida
1908 Statutes, is amended to read:
1909 626.8433 Filing of reasons for terminating appointments
1910 appointment of title insurance agent and title insurance agency;
1911 confidential information.—
1912 (1) Any title insurer that is terminating the appointment
1913 of a title insurance agent or title insurance agency, whether
1914 such termination is by direct action of the appointing title
1915 insurer or by failure to renew or continue the appointment as
1916 provided, shall file with the department a statement of the
1917 reasons, if any, for, and the facts relative to, such
1918 termination.
1919 Section 46. Section 626.8447, Florida Statutes, is amended
1920 to read:
1921 626.8447 Effect of suspension or revocation upon other
1922 licensees, appointees.—In case of the suspension or revocation
1923 of the license and appointment of any title insurance agent or
1924 title insurance agency, the licenses and appointments of all
1925 other title insurance agents who knowingly were parties to the
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1926 act that which formed the ground for such suspension or
1927 revocation may likewise be suspended or revoked for the same
1928 period as that of the offending title insurance agent or title
1929 insurance agency, but such suspension or revocation does shall
1930 not prevent any title insurance agent, except the one whose
1931 license and appointment was first suspended or revoked, from
1932 being issued an appointment for some other title insurer.
1933 Section 47. Paragraph (d) of subsection (10) of section
1934 626.854, Florida Statutes, is redesignated as paragraph (f), and
1935 a new paragraph (d) and paragraph (e) are added to subsection
1936 (10) of that section, to read:
1937 626.854 "Public adjuster" defined; prohibitions.—The
1938 Legislature finds that it is necessary for the protection of the
1939 public to regulate public insurance adjusters and to prevent the
1940 unauthorized practice of law.
1941 (10)
1942 (d) Public adjuster compensation may not be based on
1943 amounts attributable to additional living expenses, unless such
1944 compensation is affirmatively agreed to in a separate agreement
1945 that includes a disclosure in substantially the following form:
1946 "I agree to retain and compensate the public adjuster for
1947 adjusting my additional living expenses and securing payment
1948 from my insurer for amounts attributable to additional living
1949 expenses payable under the policy issued on my (home/mobile
1950 home/condominium unit)."
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1951 (e) Public adjuster compensation may not be increased
1952 based on a claim being resolved by litigation.
1953 Section 48. Section 626.8561, Florida Statutes, is amended
1954 to read:
1955 626.8561 "Public adjuster apprentice" defined.—The term
1956 "public adjuster apprentice" means a person licensed as an all-
1957 lines adjuster who:
1958 (1) Is appointed and employed or contracted by a public
1959 adjuster or a public adjusting firm;
1960 (2) Assists the public adjuster or public adjusting firm
1961 in ascertaining and determining the amount of any claim, loss,
1962 or damage payable under an insurance contract, or who undertakes
1963 to effect settlement of such claim, loss, or damage; and
1964 (3) Satisfies the requirements of s. 626.8651.
1965 Section 49. Paragraph (e) of subsection (1) and subsection
1966 (2) of section 626.865, Florida Statutes, are amended to read :
1967 626.865 Public adjuster's qualifications, bond.—
1968 (1) The department shall issue a license to an applicant
1969 for a public adjuster's license upon determining that the
1970 applicant has paid the applicable fees specified in s. 624.501
1971 and possesses the following qualifications:
1972 (e) Has been licensed and appointed in this state as a
1973 nonresident public adjuster on a continual basis for the
1974 previous 6 months, or has been licensed as an all-lines
1975 adjuster, and has been appointed on a continual basis for the
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1976 previous 6 months as a public adjuster apprentice under s.
1977 626.8561, as an independent adjuster under s. 626.855, or as a
1978 company employee adjuster under s. 626.856.
1979 (2) At the time of application for license as a public
1980 adjuster, the applicant shall file with the department a bond
1981 executed and issued by a surety insurer authorized to transact
1982 such business in this state, in the amount of $50,000,
1983 conditioned for the faithful performance of his or her duties as
1984 a public adjuster under the license for which the applicant has
1985 applied, and thereafter maintain the bond unimpaired throughout
1986 the existence of the license and for at least 1 year after
1987 termination of the license.
1988 (a) The bond must shall be in favor of the department and
1989 must shall specifically authorize recovery by the department of
1990 the damages sustained in case the licensee is guilty of fraud or
1991 unfair practices in connection with his or her business as
1992 public adjuster.
1993 (b) The bond must remain in effect for 1 year after the
1994 expiration or termination of the license.
1995 (c) The aggregate liability of the surety for all such
1996 damages may not shall in no event exceed the amount of the bond.
1997 The Such bond may shall not be terminated unless at least 30
1998 days' written notice is given to the licensee and filed with the
1999 department.
2000 Section 50. Paragraph (a) of subsection (1) and subsection
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2001 (3) of section 626.8651, Florida Statutes, are amended to read:
2002 626.8651 Public adjuster apprentice appointment;
2003 qualifications.—
2004 (1)(a) The department shall issue an appointment as a
2005 public adjuster apprentice to a licensee who:
2006 1. Is licensed as an all-lines adjuster under s. 626.866;
2007 2. Has filed with the department a bond executed and
2008 issued by a surety insurer that is authorized to transact such
2009 business in this state in the amount of $50,000, which is
2010 conditioned upon the faithful performance of his or her duties
2011 as a public adjuster apprentice; and
2012 3. Maintains such bond unimpaired throughout the existence
2013 of the appointment. The bond must remain in effect for 1 year
2014 after the expiration or termination of the license and for at
2015 least 1 year after termination of the appointment.
2016 (3) A public adjuster apprentice has the same authority as
2017 the licensed public adjuster or public adjusting firm that
2018 employs the apprentice except that an apprentice may not execute
2019 contracts for the services of a public adjuster or public
2020 adjusting firm. An individual may not be, act as, or hold
2021 himself or herself out to be a public adjuster apprentice unless
2022 the individual is licensed as an all-lines adjuster and holds a
2023 current appointment by a licensed public all-lines adjuster or a
2024 public adjusting firm that has designated with the department a
2025 primary employs a licensed public adjuster as required by s.
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2026 626.8695.
2027 Section 51. Section 626.8696, Florida Statutes, is amended
2028 to read:
2029 626.8696 Application for adjusting firm license.—
2030 (1) The application for an adjusting firm license mu st
2031 include:
2032 (a) The name of each majority owner, partner, officer, and
2033 director of the adjusting firm.
2034 (b) The resident address of each person required to be
2035 listed in the application under paragraph (a).
2036 (c) The name of the adjusting firm and its principal
2037 business address.
2038 (d) The location of each adjusting firm office and the
2039 name under which each office conducts or will conduct business.
2040 (e) The name and license number of the designated primary
2041 adjuster for each adjusting firm location as required in s.
2042 626.8695.
2043 (f) The fingerprints of each individual required to be
2044 listed in the application under paragraph (a), filed in
2045 accordance with s. 626.171(4). However, fingerprints need not be
2046 filed for an individual who is currently licensed and appointed
2047 under this chapter.
2048 (g)(e) Any additional information that the department
2049 requires.
2050 (2) An application for an adjusting firm license must be
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2051 signed by one of the individuals required to be listed in the
2052 application under paragraph (1)(a) each owner of the firm. If
2053 the firm is incorporated, the application must be signed by the
2054 president and secretary of the corporation.
2055 (3) Each application must be accompanied by payment of any
2056 applicable fee as prescribed in s. 624.501.
2057 (4) License fees are not refundable.
2058 (5) An adjusting firm required to be licensed pursuant to
2059 s. 626.8695 must remain so licensed for a period of 3 years from
2060 the date of licensure, unless the license is suspended or
2061 revoked. The department may suspend or revoke the adjusting
2062 firm's authority to do business for activities occurring during
2063 the time the firm is licensed, regardless of whether the
2064 licensing period has terminated.
2065 Section 52. Subsection (3) of section 626.8732, Florida
2066 Statutes, is amended to read:
2067 626.8732 Nonresident public adjuster's qualifications,
2068 bond.—
2069 (3) At the time of application for license as a
2070 nonresident public adjuster, the applicant shall file with the
2071 department a bond executed and issued by a surety insurer
2072 authorized to transact surety business in this state, in the
2073 amount of $50,000, conditioned for the faithful performance of
2074 his or her duties as a nonresident public adjuster under the
2075 license applied for. Thereafter, the applicant shall maintain
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2076 the bond unimpaired throughout the existence of the license and
2077 for 1 year after the expiration or termination of the license.
2078 (a) The bond must be in favor of the department and must
2079 specifically authorize recovery by the department of the damages
2080 sustained if the licensee commits fraud or unfair practices in
2081 connection with his or her business as nonresident public
2082 adjuster.
2083 (b) The aggregate liability of the surety for all the
2084 damages may not exceed the amount of the bond. The bond may not
2085 be terminated unless at least 30 days' written notice is given
2086 to the licensee and filed with the department.
2087 Section 53. Paragraph (a) of subsection (2) of section
2088 626.8734, Florida Statutes, is amended to read:
2089 626.8734 Nonresident all-lines adjuster license
2090 qualifications.—
2091 (2) The applicant must furnish the following with his or
2092 her application:
2093 (a) A complete set of his or her fingerprints in
2094 accordance with s. 626.171(4). The applicant's fingerprints must
2095 be certified by an authorized law enforcement officer.
2096 Section 54. Section 626.906, Florida Statutes, is amended
2097 to read:
2098 626.906 Acts constituting Chief Financial Officer as
2099 process agent.—Any of the following acts in this state, effected
2100 by mail or otherwise, by an unauthorized foreign insurer, alien
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2101 insurer, or person representing or aiding such an insurer is
2102 equivalent to and shall constitute an appointment by such
2103 insurer or person representing or aiding such insurer of the
2104 Chief Financial Officer to be its true and lawful agent
2105 attorney, upon whom may be served all lawful process in any
2106 action, suit, or proceeding instituted by or on behalf of an
2107 insured or beneficiary, arising out of any such contract of
2108 insurance; and any such act shall be signification of the
2109 insurer's or person's agreement that such service of process is
2110 of the same legal force and validity as personal service of
2111 process in this state upon such insurer or person representing
2112 or aiding such insurer:
2113 (1) The issuance or delivery of contracts of insurance to
2114 residents of this state or to corporations authoriz ed to do
2115 business therein;
2116 (2) The solicitation of applications for such contracts;
2117 (3) The collection of premiums, membership fees,
2118 assessments, or other considerations for such contracts; or
2119 (4) Any other transaction of insurance.
2120 Section 55. Subsection (4) of section 626.912, Florida
2121 Statutes, is amended to read:
2122 626.912 Exemptions from ss. 626.904-626.911.—The
2123 provisions of ss. 626.904-626.911 do not apply to any action,
2124 suit, or proceeding against any unauthorized foreign insurer,
2125 alien insurer, or person representing or aiding such an insurer
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2126 arising out of any contract of insurance:
2127 (4) Issued under and in accordance with the Surplus Lines
2128 Law, when such insurer or person representing or aiding such
2129 insurer enters a general appearance or when such contract of
2130 insurance contains a provision designating the Chief Financial
2131 Officer or designating a Florida resident agent to be the true
2132 and lawful agent attorney of such unauthorized insurer or person
2133 representing or aiding such insurer upon whom may be served all
2134 lawful process in any action, suit, or proceeding instituted by
2135 or on behalf of an insured or person representing or aiding such
2136 insurer or beneficiary arising out of any such contract of
2137 insurance; and service of process effected on such Chief
2138 Financial Officer or such resident agent shall be deemed to
2139 confer complete jurisdiction over such unauthorized insurer or
2140 person representing or aiding such insurer in such action.
2141 Section 56. Subsections (3) and (4) of section 626.937,
2142 Florida Statutes, are amended to read:
2143 626.937 Actions against insurer; service of process. —
2144 (3) Each unauthorized insurer requesting eligibility
2145 pursuant to s. 626.918 shall file with the department its
2146 appointment of the Chief Financial Officer, on a form as
2147 furnished by the department, as its agent attorney to receive
2148 service of all legal process issued against it in any civil
2149 action or proceeding in this state, and agreeing that process so
2150 served shall be valid and binding upon the insurer. The
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2151 appointment shall be irrevocable, shall bind the insurer and any
2152 successor in interest as to the assets or liabilities of the
2153 insurer, and shall remain in effect as long as there is
2154 outstanding in this state any obligation or liability of the
2155 insurer resulting from its insurance transactions therein.
2156 (4) At the time of such appointment of the Chief Financia l
2157 Officer as its process agent, the insurer shall file with the
2158 department designation of the name and e-mail address of the
2159 person to whom process against it served upon the Chief
2160 Financial Officer is to be made available through the
2161 department's secure online portal forwarded. The insurer may
2162 change the designation at any time by a new filing.
2163 Section 57. Subsection (5) of section 626.9953, Florida
2164 Statutes, is amended to read:
2165 626.9953 Qualifications for registration; application
2166 required.—
2167 (5) An applicant must submit a set of his or her
2168 fingerprints in accordance with s. 626.171(4) to the department
2169 and pay the processing fee established under s. 624.501(23). The
2170 department shall submit the applicant's fingerprints to the
2171 Department of Law Enforcement for processing state criminal
2172 history records checks and local criminal records checks through
2173 local law enforcement agencies and for forwarding to the Federal
2174 Bureau of Investigation for national criminal history records
2175 checks. The fingerprints shall be taken by a law enforcement
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2176 agency, a designated examination center, or another department-
2177 approved entity. The department may not approve an application
2178 for registration as a navigator if fingerprints have not been
2179 submitted.
2180 Section 58. Paragraphs (e) and (f) are added to subsection
2181 (4) of section 633.135, Florida Statutes, to read:
2182 633.135 Firefighter Assistance Grant Program.—
2183 (4) Funds shall be used to:
2184 (e) Purchase other equipment and tools that improve
2185 firesafety and fire rescue capabilities for firefighters.
2186 (f) Purchase protective clothing and equipment compliant
2187 with NFPA 1977, "Standard on Protective Clothing and Equipment
2188 for Wildland Fire Fighting and Urban Interface Fire Fighting."
2189 Section 59. Subsections (6) through (9) of section
2190 633.216, Florida Statutes, are renumbered as subsections (5)
2191 through (8), respectively, and subsection (4) and present
2192 subsection (5) of that section are amended, to read:
2193 633.216 Inspection of buildings and equipment; orders;
2194 firesafety inspection training requirements; certification;
2195 disciplinary action.—The State Fire Marshal and her or his
2196 agents or persons authorized to enforce laws and rules of the
2197 State Fire Marshal shall, at any reasonable hour, when the State
2198 Fire Marshal has reasonable cause to believe that a violation of
2199 this chapter or s. 509.215, or a rule adopted thereunder, or a
2200 minimum firesafety code adopted by the State Fire Marshal or a
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2201 local authority, may exist, inspect any and all buildings and
2202 structures which are subject to the requirements of this chapter
2203 or s. 509.215 and rules adopted thereunder. The authority to
2204 inspect shall extend to all equipment, vehicles, and chemicals
2205 which are located on or within the premises of any such building
2206 or structure.
2207 (4) Every firesafety inspector certificate is valid for a
2208 period of 4 years from the date of issuance. Renewal of
2209 certification is subject to the affected person's completing
2210 proper application for renewal and meeting all of the
2211 requirements for renewal as established under this chapter or by
2212 rule adopted under this chapter, which must include completion
2213 of at least 54 hours during the preceding 4-year period of
2214 continuing education as required by the rule of the department
2215 or, in lieu thereof, successful passage of an examination as
2216 established by the department.
2217 (5) A previously certified firesafety inspector whose
2218 certification has lapsed for 8 years or more must repeat the
2219 fire safety inspector training as specified by the division.
2220 Section 60. Paragraph (b) of subsection (4) and paragraphs
2221 (a) and (c) of subsection (6) of section 633.408, Florida
2222 Statutes, are amended to read:
2223 633.408 Firefighter and volunteer firefighter training and
2224 certification.—
2225 (4) The division shall issue a Firefighter Certificate of
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2226 Compliance to an individual who does all of the following:
2227 (b) Passes the Minimum Standards Course certification
2228 examination within 12 months after completing the required
2229 courses.
2230 (6)(a) The division may issue a Special Certificate of
2231 Compliance to an individual who does all of the following:
2232 1. Satisfactorily completes the course established by rule
2233 by the division and successfully passes any examination
2234 corresponding to such course in paragraph (1)(b) to obtain a
2235 Special Certificate of Compliance.
2236 2. Passes the examination established in paragraph (1)(b)
2237 to obtain a Special Certificate of Compliance.
2238 2.3. Possesses the qualifications in s. 633.412.
2239 (c) In order to retain a Special Certificate of
2240 Compliance, every 4 years an individual must:
2241 1. Be active as a firefighter;
2242 2. Maintain a current and valid fire service instructor
2243 certificate, instruct at least 40 hours during the 4-year
2244 period, and provide proof of such instruction to the division,
2245 which proof must be registered in an electronic database
2246 designated by the division; or
2247 3. Within 6 months before the 4-year period expires,
2248 successfully complete a Firefighter Retention Refresher Course
2249 consisting of a minimum of 40 hours of training as prescribed by
2250 rule.
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2251 Section 61. Subsections (5), (6), and (7) of section
2252 633.414, Florida Statutes, are renumbered as subsections (4),
2253 (5), and (6) respectively, and subsection (1) and present
2254 subsection (4) of that section are amended, to read:
2255 633.414 Retention of firefighter and volunteer firefighter
2256 certifications.—
2257 (1) In order for a firefighter to retain her or his
2258 Firefighter Certificate of Compliance or Special Certificate of
2259 Compliance, every 4 years he or she must meet the requirements
2260 for renewal provided in this chapter and by rule, which must
2261 include at least one of the following:
2262 (a) Be active as a firefighter. As used in this section,
2263 the term "active" means being employed as a firefighter or
2264 providing service as a volunteer firefighter as evidenced by the
2265 individual's name appearing on a fire service provider's
2266 employment roster in the Florida State Fire College database or
2267 a letter by the fire service provider attesting to dates of
2268 employment.
2269 (b) Maintain a current and valid fire service instructor
2270 certificate, instruct at least 40 hours during the 4-year
2271 period, and provide proof of such instruction to the division,
2272 which proof must be registered in an electronic database
2273 designated by the division.
2274 (c) Before the expiration of the certificate Within 6
2275 months before the 4-year period expires, successfully complete a
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2276 Firefighter Retention Refresher Course consisting of a minimum
2277 of 40 hours of training to be prescribed by rule.
2278 (d) Before the expiration of the certificate Within 6
2279 months before the 4-year period expires, successfully retake and
2280 pass the Minimum Standards Course examination pursuant to s.
2281 633.408.
2282 (4) For the purposes of this section, the term "active"
2283 means being employed as a firefighter or providing service as a
2284 volunteer firefighter for a cumulative period of 6 months within
2285 a 4-year period.
2286
2287 The 4-year period may, in the discretion of the department, be
2288 extended to 12 months after discharge from military service if
2289 the military service does not exceed 3 years, but in no event
2290 more than 6 years from the date of issue or renewal, if
2291 applicable, for an honorably discharged veteran of the United
2292 States Armed Forces or the spouse of such a veteran. A qualified
2293 individual must provide a copy of a military identification
2294 card, military dependent identification card, military service
2295 record, military personnel file, veteran record, discharge
2296 paper, or separation document that indicates such member is
2297 currently in good standing or such veteran is honorably
2298 discharged.
2299 Section 62. Subsection (4) of section 648.34, Florida
2300 Statutes, is amended to read:
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2301 648.34 Bail bond agents; qualifications.—
2302 (4) The applicant shall furnish, with his or her
2303 application, a complete set of his or her fingerprints in
2304 accordance with s. 626.171(4) and a recent credential-sized,
2305 fullface photograph of the applicant. The applicant's
2306 fingerprints shall be certified by an authorized law enforcement
2307 officer. The department shall not authorize an applicant to take
2308 the required examination until the department has received a
2309 report from the Department of Law Enforcement and the Federal
2310 Bureau of Investigation relative to the existence or
2311 nonexistence of a criminal history report based on the
2312 applicant's fingerprints.
2313 Section 63. Subsection (4) of section 648.355, Florida
2314 Statutes, is amended to read:
2315 648.355 Temporary limited license as limited surety agent
2316 or professional bail bond agent; pending examination. —
2317 (4) The applicant shall furnish, with the application for
2318 temporary license, a complete set of the applicant's
2319 fingerprints in accordance with s. 626.171(4) and a recent
2320 credential-sized, fullface photograph of the applicant. The
2321 applicant's fingerprints shall be certified by an authorized law
2322 enforcement officer. The department shall not issue a temporary
2323 license under this section until the department has received a
2324 report from the Department of Law Enforcement and the Federal
2325 Bureau of Investigation relative to the existence or
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2326 nonexistence of a criminal history report based on the
2327 applicant's fingerprints.
2328 Section 64. Subsection (4) is added to section 648.46,
2329 Florida Statutes, to read:
2330 648.46 Procedure for disciplinary action against
2331 licensees.—
2332 (4) The expiration, nonrenewal, or surrender of licensure
2333 under this chapter does not eliminate the jurisdiction of the
2334 licensing authority to investigate and prosecute for a violation
2335 committed by a licensee while licensed under this chapter. The
2336 prosecution of any matter may be initiated or continued
2337 notwithstanding the withdrawal of a complaint.
2338 Section 65. Paragraph (d) of subsection (2) and paragraphs
2339 (b), (c), and (e) of subsection (3) of section 766.105, Florida
2340 Statutes, are amended, and paragraph (i) is added to subsection
2341 (3) and subsection (4) is added to that section, to read:
2342 766.105 Florida Patient's Compensation Fund.—
2343 (2) COVERAGE.—
2344 (d)1. Any health care provider who participates in the
2345 fund and who does not meet the provisions of paragraph (b) shall
2346 not be covered by the fund.
2347 2. Annually, the Agency for Health Care Administration
2348 shall require documentation by each hospital that such hospital
2349 is in compliance, and will remain in compliance, with the
2350 provisions of this section. The agency shall review the
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2351 documentation and then deliver the documentation to the board of
2352 governors. At least 60 days before the time a license will be
2353 issued or renewed, the agency shall request from the board of
2354 governors a certification that each hospital is in compliance
2355 with the provisions of this section. The board of governors
2356 shall not be liable under the law for any erroneous
2357 certification. The agency may not issue or renew the license of
2358 any hospital which has not been certified by the board of
2359 governors. The license of any hospital that fails to remain in
2360 compliance or fails to provide such documentation shall be
2361 revoked or suspended by the agency.
2362 (3) THE FUND.—
2363 (b) Fund administration and operation.—
2364 1. The fund shall operate subject to the supervision and
2365 approval of the Chief Financial Officer or his or her designee a
2366 board of governors consisting of a representative of the
2367 insurance industry appointed by the Chief Financial Officer, an
2368 attorney appointed by The Florida Bar, a representative of
2369 physicians appointed by the Florida Medical Association, a
2370 representative of physicians' insurance appointed by the Chief
2371 Financial Officer, a representative of physicians' self -
2372 insurance appointed by the Chief Financial Officer, two
2373 representatives of hospitals appointed by the Florida Hospital
2374 Association, a representative of hospital insurance appointed by
2375 the Chief Financial Officer, a representative of hospital self-
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2376 insurance appointed by the Chief Financial Officer, a
2377 representative of the osteopathic physicians' or podiatric
2378 physicians' insurance or self-insurance appointed by the Chief
2379 Financial Officer, and a representative of the general public
2380 appointed by the Chief Financial Officer. The board of governors
2381 shall, during the first meeting after June 30 of each year,
2382 choose one of its members to serve as chair of the board and
2383 another member to serve as vice chair of the board. The members
2384 of the board shall be appointed to serve terms of 4 years,
2385 except that the initial appointments of a representative of the
2386 general public by the Chief Financial Officer, an attorney by
2387 The Florida Bar, a representative of physicians by the Florida
2388 Medical Association, and one of the two representatives of the
2389 Florida Hospital Association shall be for terms of 3 years;
2390 thereafter, such representatives shall be appointed for terms of
2391 4 years. Subsequent to initial appointments for 4-year terms,
2392 the representative of the osteopathic physicians' or podiatric
2393 physicians' insurance or self-insurance appointed by the Chief
2394 Financial Officer and the representative of hospital self-
2395 insurance appointed by the Chief Financial Officer shall be
2396 appointed for 2-year terms; thereafter, such representatives
2397 shall be appointed for terms of 4 years. Each appointed member
2398 may designate in writing to the chair an alternate to act in th e
2399 member's absence or incapacity. A member of the board, or the
2400 member's alternate, may be reimbursed from the assets of the
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2401 fund for expenses incurred by him or her as a member, or
2402 alternate member, of the board and for committee work, but he or
2403 she may not otherwise be compensated by the fund for his or her
2404 service as a board member or alternate.
2405 2. There shall be no liability on the part of, and no
2406 cause of action of any nature shall arise against, the fund or
2407 its agents or employees, professional advisers or consultants,
2408 the Chief Financial Officer or his or her designee members of
2409 the board of governors or their alternates, or the Department of
2410 Financial Services or the Office of Insurance Regulation of the
2411 Financial Services Commission or their representatives for any
2412 action taken by them in the performance of their powers and
2413 duties pursuant to this section.
2414 (c) Powers of the fund.—The fund has the power to:
2415 1. Sue and be sued, and appear and defend, in all actions
2416 and proceedings in its name to the same extent as a natural
2417 person.
2418 2. Adopt, change, amend, and repeal a plan of operation,
2419 not inconsistent with law, for the regulation and administration
2420 of the affairs of the fund. The plan and any changes thereto
2421 shall be filed with the Office of Insurance Regulation of the
2422 Financial Services Commission and are all subject to its
2423 approval before implementation by the fund. All fund members,
2424 board members, and employees shall comply with the plan of
2425 operation.
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2426 3. Have and exercise all powers necessary or convenient to
2427 effect any or all of the purposes for which the fund is created.
2428 4. Enter into such contracts as are necessary or proper to
2429 carry out the provisions and purposes of this section.
2430 5. Employ or retain such persons as are necessary to
2431 perform the administrative and financial transactions and
2432 responsibilities of the fund and to perform other necessary or
2433 proper functions unless prohibited by law.
2434 6. Take such legal action as may be necessary to avoid
2435 payment of improper claims.
2436 7. Indemnify any employee, agent, member of the board of
2437 governors or his or her alternate, or person acting on behalf of
2438 the fund in an official capacity, for expenses, including
2439 attorney's fees, judgments, fines, and amounts paid in
2440 settlement actually and reasonably incurred by him or her in
2441 connection with any action, suit, or proceeding, including any
2442 appeal thereof, arising out of his or her capacity in acting on
2443 behalf of the fund, if he or she acted in good faith and in a
2444 manner he or she reasonably believed to be in, or not opposed
2445 to, the best interests of the fund and, with respect to any
2446 criminal action or proceeding, he or she had reasonable cause to
2447 believe his or her conduct was lawful.
2448 (e) Fund accounting and audit.—
2449 1. Money shall be withdrawn from the fund only upon a
2450 voucher as authorized by the Chief Financial Officer or his or
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2451 her designee board of governors.
2452 2. All books, records, and audits of the fund shall be
2453 open for reasonable inspection to the general public, except
2454 that a claim file in possession of the fund, fund members, and
2455 their insurers is confidential and exempt from the provisions of
2456 s. 119.07(1) and s. 24(a), Art. I of the State Constitution
2457 until termination of litigation or settlement of the claim,
2458 although medical records and other portions of the claim file
2459 may remain confidential and exempt as otherwise provided by law.
2460 Any book, record, document, audit, or asset acquired by,
2461 prepared for, or paid for by the fund is subject to the
2462 authority of the Chief Financial Officer or his or her designee
2463 board of governors, which shall be responsible therefor.
2464 3. Persons authorized to receive deposits, issue vouchers,
2465 or withdraw or otherwise disburse any fund moneys shall post a
2466 blanket fidelity bond in an amount reasonably sufficient to
2467 protect fund assets. The cost of such bond shall be paid from
2468 the fund.
2469 4. Annually, the fund shall furnish, upon request, audited
2470 financial reports to any fund participant and to the Office of
2471 Insurance Regulation and the Joint Legislative Auditing
2472 Committee. The reports shall be prepared in accordance with
2473 accepted accounting procedures and shall include income and such
2474 other information as may be required by the Office of Insurance
2475 Regulation or the Joint Legislative Auditing Committee.
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2476 5. Any money held in the fund shall be invested in
2477 interest-bearing investments by the board of governors of the
2478 fund as administrator. However, in no case may any such money be
2479 invested in the stock of any insurer participating in the Joint
2480 Underwriting Association authorized by s. 627.351(4) or in the
2481 parent company of, or company owning a controlling interest in,
2482 such insurer. All income derived from such investments shall be
2483 credited to the fund.
2484 6. Any health care provider participating in the fund m ay
2485 withdraw from such participation only at the end of a fiscal
2486 year; however, such health care provider shall remain subject to
2487 any assessment or any refund pertaining to any year in which
2488 such member participated in the fund.
2489 (i) Dissolution of the fund.—The fund shall operate
2490 subject to the supervision of the Chief Financial Officer or his
2491 or her designee, pursuant to the policies and procedures and
2492 under the auspices of the Department of Financial Services'
2493 Division of Rehabilitation and Liquidation, until the department
2494 executes a legal dissolution of the fund on or before December
2495 31, 2023. Before the legal dissolution of the fund, the
2496 Department of Financial Services must:
2497 1. Obtain all existing records and retain necessary
2498 records of the fund pursuant to law.
2499 2. Identify all remaining property held by the fund and
2500 attempt to return such property to its owners and, for property
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2501 that cannot be returned to the owner, transfer such property to
2502 the Department of Financial Services' Division of Unclai med
2503 Property.
2504 3. Make a final accounting of the finances of the fund.
2505 4. Ensure that the fund has met all its obligations
2506 pursuant to structured settlements, annuities, or other
2507 instruments established to pay covered claims and, if the fund
2508 has not done so, attempt to meet such obligations before final
2509 and complete dissolution of the fund.
2510 5. Sell or otherwise dispose of all physical assets of the
2511 fund.
2512 6. Execute a legal dissolution of the fund.
2513 7. Transfer any remaining money or assets of the fund to
2514 the Chief Financial Officer for deposit in the General Revenue
2515 Fund.
2516 (4) REPEAL.—This section is repealed January 1, 2024.
2517 Section 66. Paragraph (b) of subsection (1) of section
2518 945.6041, Florida Statutes, is amended to read:
2519 945.6041 Inmate medical services.—
2520 (1) As used in this section, the term:
2521 (b) "Health care provider" means:
2522 1. A hospital licensed under chapter 395.
2523 2. A physician or physician assistant licensed under
2524 chapter 458.
2525 3. An osteopathic physician or physician assistant
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2526 licensed under chapter 459.
2527 4. A podiatric physician licensed under chapter 461.
2528 5. A health maintenance organization certificated under
2529 part I of chapter 641.
2530 6. An ambulatory surgical center licensed under chapter
2531 395.
2532 7. A professional association, partnership, corporation,
2533 joint venture, or other association established by the
2534 individuals set forth in subparagraphs 2., 3., and 4. for
2535 professional activity.
2536 8. Other medical facility.
2537 a. As used in this subparagraph, the term "other medical
2538 facility" means:
2539 (I) A facility the primary purpose of which is to provide
2540 human medical diagnostic services, or a facility providing
2541 nonsurgical human medical treatment which discharges patients on
2542 the same working day that the patients are admitted; and
2543 (II) A facility that is not part of a hospital.
2544 b. The term does not include a facility existing for the
2545 primary purpose of performing terminations of pregnancy, or an
2546 office maintained by a physician or dentist for the practice of
2547 medicine has the same meaning as provided in s. 766.105.
2548 Section 67. Paragraph (a) of subsection (1) of section
2549 985.6441, Florida Statutes, is amended to read:
2550 985.6441 Health care services.—
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2551 (1) As used in this section, the term:
2552 (a) "Health care provider" means:
2553 1. A hospital licensed under chapter 395.
2554 2. A physician or physician assistant licensed under
2555 chapter 458.
2556 3. An osteopathic physician or physician assistant
2557 licensed under chapter 459.
2558 4. A podiatric physician licensed under chapter 461.
2559 5. A health maintenance organization certificated under
2560 part I of chapter 641.
2561 6. An ambulatory surgical center licensed under chapter
2562 395.
2563 7. A professional association, partnership, corporation,
2564 joint venture, or other association established by the
2565 individuals set forth in subparagraphs 2., 3., and 4. for
2566 professional activity.
2567 8. Other medical facility.
2568 a. As used in this subparagraph, the term "other medical
2569 facility" means:
2570 (I) A facility the primary purpose of which is to provide
2571 human medical diagnostic services, or a facility providing
2572 nonsurgical human medical treatment which discharges patients on
2573 the same working day that the patients are admitted; and
2574 (II) A facility that is not part of a hospital.
2575 b. The term does not include a facility existing for the
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2576 primary purpose of performing terminations of pregnancy, or an
2577 office maintained by a physician or dentist for the practice of
2578 medicine has the same meaning as provided in s. 766.105.
2579 Section 68. All powers, duties, functions, records,
2580 offices, personnel, associated administrative support positions,
2581 property, pending issues, existing contracts, administrative
2582 authority, and administrative rules relating to the Stop Inmate
2583 Fraud Program within the Department of Financial Services are
2584 transferred by a type two transfer, as defined in s. 20.06(2),
2585 Florida Statutes, to the Department of Economic Opportunity.
2586 Section 69. Except as otherwise expressly provided in this
2587 act, this act shall take effect July 1, 2022.
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COMMERCE COMMITTEE
CS/CS/HB 959 by Rep. LaMarca
Department of Financial Services
AMENDMENT SUMMARY
February 17, 2022
Amendment 1 by Rep. LaMarca (Line 756):
• Makes changes to sections related to the closure of an insurance agency, to conform to
the language of CS/SB 1874;
• Makes clarifying changes related to compensation for public adjusters;
• Amends the definition of “employer” in workers’ compensation law;
• Eliminates a proposed amendment that would have modified the calculation of
reimbursements to health care providers in the workers’ compensation system;
• Amends penalties that may be imposed for violations of laws related to fire protection
systems; and
• Makes minor technical and conforming changes to match the language of CS/SB 1874
throughout the bill.
COMMITTEE/SUBCOMMITTEE AMENDMENT
Bill No. CS/CS/HB 959 (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 LaMarca offered the following:
3
4 Amendment (with title amendment)
5 Remove lines 756-2337 and insert:
6 of any person. The term "Employer" also includes employment
7 agencies, employee leasing companies, as defined in s.
8 468.520(4), and employment agencies similar agents who that
9 provide their own employees to other persons. If the employer is
10 a corporation, parties in actual control of the corporation,
11 including, but not limited to, the president, officers who
12 exercise broad corporate powers, directors, and all shareholders
13 who directly or indirectly own a controlling interest in the
14 corporation, are considered the employer for the purposes of ss.
15 440.105, 440.106, and 440.107.
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Amendment No. 1
16 Section 14. Effective January 1, 2023, subsections (11)
17 through (15) of section 440.05, Florida Statutes, are renumbered
18 as subsections (10) through (14), respectively, subsections (3)
19 and (4) and present subsections (10) and (12) of that section
20 are amended, to read:
21 440.05 Election of exemption; revocation of election;
22 notice; certification.—
23 (3) The notice of election to be exempt must be
24 electronically submitted to the department by the officer of a
25 corporation who is allowed to claim an exemption as provided by
26 this chapter and must list the name, date of birth, valid driver
27 license number or Florida identification card number, and all
28 certified or registered licenses issued pursuant to chapter 489
29 held by the person seeking the exemption, the registration
30 number of the corporation filed with the Division of
31 Corporations of the Department of State, and the percentage of
32 ownership evidencing the required ownership under this chapter.
33 The notice of election to be exempt must identify each
34 corporation that employs the person electing the exemption and
35 must list the social security number or federal tax
36 identification number of each such employer and the additional
37 documentation required by this section. In addition, the notice
38 of election to be exempt must provide that the officer electing
39 an exemption is not entitled to benefits under this chapter,
40 must provide that the election does not exceed exemption limits
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Amendment No. 1
41 for officers provided in s. 440.02, and must certify that any
42 employees of the corporation whose officer elects an exemption
43 are covered by workers' compensation insurance, and must certify
44 that the officer electing an exemption has completed an online
45 workers' compensation coverage and compliance tutorial developed
46 by the department. Upon receipt of the notice of the election to
47 be exempt, receipt of all application fees, and a determination
48 by the department that the notice meets the requirements of this
49 subsection, the department shall issue a certification of the
50 election to the officer, unless the department determines that
51 the information contained in the notice is invalid. The
52 department shall revoke a certificate of election to be exempt
53 from coverage upon a determination by the department that the
54 person does not meet the requirements for exemption or that the
55 information contained in the notice of election to be exempt is
56 invalid. The certificate of election must list the name of the
57 corporation listed in the request for exemption. A new
58 certificate of election must be obtained each time the person is
59 employed by a new or different corporation that is not listed on
60 the certificate of election. Upon written request from a
61 workers' compensation carrier, the department shall send
62 thereafter an electronic notification to the carrier identifying
63 each of its policyholders for which a notice of election to be
64 exempt has been issued or for which a notice of revocation to be
65 exempt has been received A notice of the certificate of election
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Amendment No. 1
66 must be sent to each workers' compensation carrier identified in
67 the request for exemption. Upon filing a notice of revocation of
68 election, an officer who is a subcontractor or an officer of a
69 corporate subcontractor must notify her or his contractor. Upon
70 revocation of a certificate of election of exemption by the
71 department, the department shall notify the workers'
72 compensation carriers identified in the request for exemption.
73 (4) The notice of election to be exempt from the
74 provisions of this chapter must contain a notice that clearly
75 states in substance the following: "Any person who, knowingly
76 and with intent to injure, defraud, or deceive the department or
77 any employer or employee, insurance company, or any other
78 person, files a notice of election to be exempt containing any
79 false or misleading information is guilty of a felony of the
80 third degree." Each person filing a notice of election to be
81 exempt shall personally sign the notice and attest that he or
82 she has reviewed, understands, and acknowledges the foregoing
83 notice. The certificate of election to be exempt must contain
84 the following notice: "This certificate of election to be exempt
85 is NOT a license issued by the Department of Business and
86 Professional Regulation (DBPR). To determine if the
87 certificateholder is required to have a license to perform work
88 or to verify the license of the certificateholder, go to (insert
89 DBPR's website address for where to find this information)."
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Amendment No. 1
90 (10) Each officer of a corporation who is actively engaged
91 in the construction industry and who elects an exemption from
92 this chapter shall maintain business records as specified by the
93 department by rule.
94 (11)(12) Certificates of election to be exempt issued
95 under subsection (3) shall apply only to the corporate officer
96 named on the notice of election to be exempt and apply only
97 within the scope of the business or trade listed on the notice
98 of election to be exempt.
99 Section 15. Effective January 1, 2023, paragraphs (a) and
100 (d) of subsection (7) of section 440.107, Florida Statutes, are
101 amended to read:
102 440.107 Department powers to enforce employer compliance
103 with coverage requirements.—
104 (7)(a) Whenever the department determines that an employer
105 who is required to secure the payment to his or her e mployees of
106 the compensation provided for by this chapter has failed to
107 secure the payment of workers' compensation required by this
108 chapter or to produce the required business records under
109 subsection (5) within 21 10 business days after receipt of the
110 written request of the department, such failure shall be deemed
111 an immediate serious danger to public health, safety, or welfare
112 sufficient to justify service by the department of a stop-work
113 order on the employer, requiring the cessation of all business
114 operations. If the department makes such a determination, the
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Amendment No. 1
115 department shall issue a stop-work order within 72 hours. The
116 order shall take effect when served upon the employer or, for a
117 particular employer worksite, when served at that worksite. In
118 addition to serving a stop-work order at a particular worksite
119 which shall be effective immediately, the department shall
120 immediately proceed with service upon the employer which shall
121 be effective upon all employer worksites in the state for which
122 the employer is not in compliance. A stop-work order may be
123 served with regard to an employer's worksite by posting a copy
124 of the stop-work order in a conspicuous location at the
125 worksite. Information related to an employer's stop -work order
126 shall be made available on the division's website, be updated
127 daily, and remain on the website for at least 5 years. The order
128 shall remain in effect until the department issues an order
129 releasing the stop-work order upon a finding that the employer
130 has come into compliance with the coverage requirements of this
131 chapter and has paid any penalty assessed under this section.
132 The department may issue an order of conditional release from a
133 stop-work order to an employer upon a finding that the employer
134 has complied with the coverage requirements of this chapter,
135 paid a penalty of $1,000 as a down payment, and agreed to remit
136 periodic payments of the remaining penalty amount pursuant to a
137 payment agreement schedule with the department or pay the
138 remaining penalty amount in full. An employer may not enter into
139 a payment agreement schedule unless the employer has fully paid
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Amendment No. 1
140 any previous penalty assessed under this section. If an order of
141 conditional release is issued, failure by the employer to pay
142 the penalty in full or enter into a payment agreement with the
143 department within 21 28 days after service of the first penalty
144 assessment calculation stop-work order upon the employer, or to
145 meet any term or condition of such penalty payment agreement,
146 shall result in the immediate reinstatement of the stop-work
147 order and the entire unpaid balance of the penalty shall become
148 immediately due.
149 (d)1. In addition to any penalty, stop-work order, or
150 injunction, the department shall assess against an any employer
151 who has failed to secure the payment of compensation as required
152 by this chapter a penalty equal to 2 times the amount the
153 employer would have paid in premium when applying approved
154 manual rates to the employer's payroll during periods for which
155 it failed to secure the payment of workers' compensat ion
156 required by this chapter within the preceding 12-month 2-year
157 period or $1,000, whichever is greater. However, for an employer
158 who is issued a stop-work order for materially understating or
159 concealing payroll or has been previously issued a stop -work
160 order or order of penalty assessment, the preceding 24-month
161 period shall be used to calculate the penalty as specified in
162 this subparagraph.
163 a. For an employer employers who has have not been
164 previously issued a stop-work order or order of penalty
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Amendment No. 1
165 assessment, the department must allow the employer to receive a
166 credit for the initial payment of the estimated annual workers'
167 compensation policy premium, as determined by the carrier, to be
168 applied to the penalty. Before applying the credit to the
169 penalty, the employer must provide the department with
170 documentation reflecting that the employer has secured the
171 payment of compensation pursuant to s. 440.38 and proof of
172 payment to the carrier. In order for the department to apply a
173 credit for an employer that has secured workers' compensation
174 for leased employees by entering into an employee leasing
175 contract with a licensed employee leasing company, the employer
176 must provide the department with a written confirmation, by a
177 representative from the employee leasing company, of the dollar
178 or percentage amount attributable to the initial estimated
179 workers' compensation expense for leased employees, and proof of
180 payment to the employee leasing company. The credit may not be
181 applied unless the employer provides the documentation and proof
182 of payment to the department within 21 28 days after the
183 employer's receipt of the written request to produce business
184 records for calculating the penalty under this subparagraph
185 service of the stop-work order or first order of penalty
186 assessment upon the employer.
187 b. For an employer employers who has have not been
188 previously issued a stop-work order or order of penalty
189 assessment, the department must reduce the final assessed
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Amendment No. 1
190 penalty by 25 percent if the employer has complied with
191 administrative rules adopted pursuant to subsection (5) and has
192 provided such business records to the department within 21 10
193 business days after the employer's receipt of the written
194 request to produce business records for calculating the penalty
195 under this subparagraph.
196 c. For an employer who has not been previously issued a
197 stop-work order or order of penalty assessment, the department
198 must reduce the final assessed penalty by 15 percent if the
199 employer correctly answers at least 80 percent of the questions
200 from an online workers' compensation coverage and compliance
201 tutorial, developed by the department, within 21 days after the
202 employer's receipt of the written request to produce business
203 records for calculating the penalty under this subparagraph. The
204 online tutorial must be taken in a department office location
205 identified by rule.
206
207 c. The $1,000 penalty shall be assessed against the employer
208 even if the calculated penalty after the credit provided in sub-
209 subparagraph a., the and 25 percent reduction provided in sub-
210 subparagraph b., and the 15 percent reduction provided in sub -
211 subparagraph c., as applicable, have been applied is less than
212 $1,000.
213 2. Any subsequent violation within 5 years after the most
214 recent violation shall, in addition to the penalties set forth
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215 in this subsection, be deemed a knowing act within the meaning
216 of s. 440.105.
217 Section 16. Subsection (12) of section 440.13, Florida
218 Statutes, is amended to read:
219 440.13 Medical services and supplies; penalty for
220 violations; limitations.—
221 (12) CREATION OF THREE-MEMBER PANEL; GUIDES OF MAXIMUM
222 REIMBURSEMENT ALLOWANCES.—
223 (a) A three-member panel is created, consisting of the
224 Chief Financial Officer, or the Chief Financial Officer's
225 designee, and two members to be appointed by the Governor,
226 subject to confirmation by the Senate, one member who, on
227 account of present or previous vocation, employment, or
228 affiliation, shall be classified as a representative of
229 employers, the other member who, on account of previous
230 vocation, employment, or affiliation, shall be classified as a
231 representative of employees. The panel shall determine statewide
232 schedules of maximum reimbursement allowances for medically
233 necessary treatment, care, and attendance provided by
234 physicians, hospitals, ambulatory surgical centers, work-
235 hardening programs, pain programs, and durable medical
236 equipment. The maximum reimbursement allowances for inpatient
237 hospital care shall be based on a schedule of per diem rates, to
238 be approved by the three-member panel no later than March 1,
239 1994, to be used in conjunction with a precertification manual
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Amendment No. 1
240 as determined by the department, including maximum hours in
241 which an outpatient may remain in observation status, which
242 shall not exceed 23 hours. All compensable charges for hospital
243 outpatient care shall be reimbursed at 75 percent of usual and
244 customary charges, except as otherwise provided by this
245 subsection. Annually, the three-member panel shall adopt
246 schedules of maximum reimbursement allowances for physicians,
247 hospital inpatient care, hospital outpatient care, ambulatory
248 surgical centers, work-hardening programs, and pain programs. An
249 individual physician, hospital, ambulatory surgical center, pain
250 program, or work-hardening program shall be reimbursed either
251 the agreed-upon contract price or the maximum reimbursement
252 allowance in the appropriate schedule.
253 (b) It is the intent of the Legislature to increase the
254 schedule of maximum reimbursement allowances for selected
255 physicians effective January 1, 2004, and to pay for the
256 increases through reductions in payments to hospitals. Revisions
257 developed pursuant to this subsection are limited to the
258 following:
259 1. Payments for outpatient physical, occupational, and
260 speech therapy provided by hospitals shall be reduced to the
261 schedule of maximum reimbursement allowances for these services
262 which applies to nonhospital providers.
263 2. Payments for scheduled outpatient nonemergency
264 radiological and clinical laboratory services that are not
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Amendment No. 1
265 provided in conjunction with a surgical procedure shall be
266 reduced to the schedule of maximum reimbursement allowances for
267 these services which applies to nonhospital providers.
268 3. Outpatient reimbursement for scheduled surgeries shall
269 be reduced from 75 percent of charges to 60 percent of charges.
270 4. Maximum reimbursement for a physician licensed under
271 chapter 458 or chapter 459 shall be increased to 110 percent of
272 the reimbursement allowed by Medicare, using appropriate codes
273 and modifiers or the medical reimbursement level adopted by the
274 three-member panel as of January 1, 2003, whichever is greater.
275 5. Maximum reimbursement for surgical procedures shall be
276 increased to 140 percent of the reimbursement allowed by
277 Medicare or the medical reimbursement level adopted by the
278 three-member panel as of January 1, 2003, whichever is greater.
279 (c) As to reimbursement for a prescription medication, the
280 reimbursement amount for a prescription shall be the average
281 wholesale price plus $4.18 for the dispensing fee. For
282 repackaged or relabeled prescription medications dispensed by a
283 dispensing practitioner as provided in s. 465.0276, the fee
284 schedule for reimbursement shall be 112.5 percent of the average
285 wholesale price, plus $8.00 for the dispensing fee. For purposes
286 of this subsection, the average wholesale price shall be
287 calculated by multiplying the number of units dispensed times
288 the per-unit average wholesale price set by the original
289 manufacturer of the underlying drug dispensed by the
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Amendment No. 1
290 practitioner, based upon the published manufacturer's average
291 wholesale price published in the Medi-Span Master Drug Database
292 as of the date of dispensing. All pharmaceutical claims
293 submitted for repackaged or relabeled prescription medications
294 must include the National Drug Code of the original
295 manufacturer. Fees for pharmaceuticals and pharmaceutical
296 services shall be reimbursable at the applicable fee schedule
297 amount except where the employer or carrier, or a service
298 company, third party administrator, or any entity acting on
299 behalf of the employer or carrier directly contracts with the
300 provider seeking reimbursement for a lower amount.
301 (d) Reimbursement for all fees and other charges for such
302 treatment, care, and attendance, including treatment, care, and
303 attendance provided by any hospital or other health care
304 provider, ambulatory surgical center, work-hardening program, or
305 pain program, must not exceed the amounts provided by the
306 uniform schedule of maximum reimbursement allowances as
307 determined by the panel or as otherwise provided in this
308 section. This subsection also applies to independent medical
309 examinations performed by health care providers under this
310 chapter. In determining the uniform schedule, the panel shall
311 first approve the data which it finds representative of
312 prevailing charges in the state for similar treatment, care, and
313 attendance of injured persons. Each health care provider, health
314 care facility, ambulatory surgical center, work-hardening
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Amendment No. 1
315 program, or pain program receiving workers' compensation
316 payments shall maintain records verifying their usual charges.
317 In establishing the uniform schedule of maximum reimbursement
318 allowances, the panel must consider:
319 1. The levels of reimbursement for similar treatment,
320 care, and attendance made by other health care programs or
321 third-party providers;
322 2. The impact upon cost to employers for providing a level
323 of reimbursement for treatment, care, and attendance which will
324 ensure the availability of treatment, care, and attendance
325 required by injured workers;
326 3. The financial impact of the reimbursement allowances
327 upon health care providers and health care facilities, including
328 trauma centers as defined in s. 395.4001, and its effect upon
329 their ability to make available to injured workers such
330 medically necessary remedial treatment, care, and attendance.
331 The uniform schedule of maximum reimbursement allowances must be
332 reasonable, must promote health care cost containment and
333 efficiency with respect to the workers' compensation health care
334 delivery system, and must be sufficient to ensure availability
335 of such medically necessary remedial treatment, care, and
336 attendance to injured workers; and
337 4. The most recent average maximum allowable rate of
338 increase for hospitals determined by the Health Care Board under
339 chapter 408.
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340 (e) In addition to establishing the uniform schedule of
341 maximum reimbursement allowances, the panel shall:
342 1. Take testimony, receive records, and collect data to
343 evaluate the adequacy of the workers' compensation fee schedule,
344 nationally recognized fee schedules and alternative methods of
345 reimbursement to health care providers and health care
346 facilities for inpatient and outpatient treatment and care.
347 2. Survey health care providers and health care facilities
348 to determine the availability and accessibility of workers'
349 compensation health care delivery systems for injured workers.
350 3. Survey carriers to determine the estimated impact on
351 carrier costs and workers' compensation premium rates by
352 implementing changes to the carrier reimbursement schedule or
353 implementing alternative reimbursement methods.
354 4. Submit recommendations on or before January 15, 2017,
355 and biennially thereafter, to the President of the Senate and
356 the Speaker of the House of Representatives on methods to
357 improve the workers' compensation health care delivery system.
358
359 The department, as requested, shall provide data to the panel,
360 including, but not limited to, utilization trends in the
361 workers' compensation health care delivery system. The
362 department shall provide the panel with an annual report
363 regarding the resolution of medical reimbursement d isputes and
364 any actions pursuant to subsection (8). The department shall
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365 provide administrative support and service to the panel to the
366 extent requested by the panel and may adopt rules necessary to
367 administer this subsection. For prescription medication
368 purchased under the requirements of this subsection, a
369 dispensing practitioner shall not possess such medication unless
370 payment has been made by the practitioner, the practitioner's
371 professional practice, or the practitioner's practice management
372 company or employer to the supplying manufacturer, wholesaler,
373 distributor, or drug repackager within 60 days of the dispensing
374 practitioner taking possession of that medication.
375 Section 17. Subsection (3) of section 440.185, Florida
376 Statutes, is amended to read:
377 440.185 Notice of injury or death; reports; penalties for
378 violations.—
379 (3) Within 3 business days after the employer or the
380 employee informs the carrier of an injury, the carrier shall
381 send by regular mail or e-mail to the injured worker an
382 informational brochure approved by the department which sets
383 forth in clear and understandable language an explanation of the
384 rights, benefits, procedures for obtaining benefits and
385 assistance, criminal penalties, and obligations of injured
386 workers and their employers under the Florida Workers'
387 Compensation Law. Annually, the carrier or its third-party
388 administrator shall send by regular mail or e-mail to the
389 employer an informational brochure approved by the department
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390 which sets forth in clear and understandable language an
391 explanation of the rights, benefits, procedures for obtaining
392 benefits and assistance, criminal penalties, and obligations of
393 injured workers and their employers under the Florida Workers'
394 Compensation Law. All such informational brochures shall contain
395 a notice that clearly states in substance the following: "Any
396 person who, knowingly and with intent to injure, defraud, or
397 deceive any employer or employee, insurance company, or self -
398 insured program, files a statement of claim containing any false
399 or misleading information commits a felony of the third degree."
400 Section 18. Subsection (3) of section 440.381, Florida
401 Statutes, is amended to read:
402 440.381 Application for coverage; reporting payroll;
403 payroll audit procedures; penalties.—
404 (3) The Financial Services Commission, in consultation
405 with the department, shall establish by rule minimum
406 requirements for audits of payroll and classifications in order
407 to ensure that the appropriate premium is charged for workers'
408 compensation coverage. The rules must shall ensure that audits
409 performed by both carriers and employers are adequate to provide
410 that all sources of payments to employees, subcontractors, and
411 independent contractors are have been reviewed and that the
412 accuracy of classification of employees is has been verified.
413 The rules must require shall provide that employers in all
414 classes other than the construction class be audited at least
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415 not less frequently than biennially and may provide for more
416 frequent audits of employers in specified classifications based
417 on factors such as amount of premium, type of business, loss
418 ratios, or other relevant factors. In no event shall Employers
419 in the construction class, generating more than the amount of
420 premium required to be experience rated must, be audited at
421 least less than annually. The annual audits required for
422 construction classes must shall consist of physical onsite
423 audits for policies only if the estimated annual premium is
424 $10,000 or more. Payroll verification audit rules must include,
425 but need not be limited to, the use of state and federal reports
426 of employee income, payroll and other accounting records,
427 certificates of insurance maintained by subcontractors, and
428 duties of employees. At the completion of an audit, the employer
429 or officer of the corporation and the auditor must print and
430 sign their names on the audit document and attach proof of
431 identification to the audit document.
432 Section 19. Subsection (2) of section 497.277, Florida
433 Statutes, is amended to read:
434 497.277 Other charges.—Other than the fees for the sale of
435 burial rights, burial merchandise, and burial services, no other
436 fee may be directly or indirectly charged, contracted for, or
437 received by a cemetery company as a condition for a cus tomer to
438 use any burial right, burial merchandise, or burial service,
439 except for:
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440 (2) Charges paid for transferring burial rights from one
441 purchaser to another; however, no such fee may exceed $50.
442 Section 20. Paragraph (b) of subsection (1) of secti on
443 497.369, Florida Statutes, is amended to read:
444 497.369 Embalmers; licensure as an embalmer by
445 endorsement; licensure of a temporary embalmer.—
446 (1) The licensing authority shall issue a license by
447 endorsement to practice embalming to an applicant who has
448 remitted an examination fee set by rule of the licensing
449 authority not to exceed $200 and who the licensing authority
450 certifies:
451 (b)1. Holds a valid license in good standing to practice
452 embalming in another state of the United States and has engaged
453 in the full-time, licensed practice of embalming in that state
454 for at least 5 years, provided that, when the applicant secured
455 her or his original license, the requirements for licensure were
456 substantially equivalent to or more stringent than those
457 existing in this state; or
458 2. Meets the qualifications for licensure in s. 497.368,
459 except that the internship requirement shall be deemed to have
460 been satisfied by 1 year's practice as a licensed embalmer in
461 another state, and has, within 10 years before prior to the date
462 of application, successfully completed a state, regional, or
463 national examination in mortuary science, which, as determined
464 by rule of the licensing authority, is substantially equivalent
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465 to or more stringent than the examination given by the licensing
466 authority.
467 Section 21. Paragraphs (b) and (f) of subsection (1) of
468 section 497.372, Florida Statutes, are amended to read:
469 497.372 Funeral directing; conduct constituting practice
470 of funeral directing.—
471 (1) The practice of funeral directing shall be construed
472 to consist of the following functions, which may be performed
473 only by a licensed funeral director:
474 (b) Planning or arranging, on an at-need basis, the
475 details of funeral services, embalming, cremation, or other
476 services relating to the final disposition of human remains, and
477 including the removal of such remains from the state; setting
478 the time of the services; establishing the type of services to
479 be rendered; acquiring the services of the clergy; and obtaining
480 vital information for the filing of death certificates and
481 obtaining of burial transit permits.
482 (f) Directing, being in charge or apparent charge of, or
483 supervising, directly or indirectly, any memorial service held
484 prior to or within 72 hours of the burial or cremation, if such
485 memorial service is sold or arranged by a licensee.
486 Section 22. Paragraph (b) of subsection (1) of section
487 497.374, Florida Statutes, is amended to read:
488 497.374 Funeral directing; licensure as a funeral director
489 by endorsement; licensure of a temporary funeral director.—
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490 (1) The licensing authority shall issue a license by
491 endorsement to practice funeral directing to an applicant who
492 has remitted a fee set by rule of the licensing authority not to
493 exceed $200 and who:
494 (b)1. Holds a valid license in good standing to practice
495 funeral directing in another state of the United States and has
496 engaged in the full-time, licensed practice of funeral directing
497 in that state for at least 5 years, provided that, when the
498 applicant secured her or his original license, the requirements
499 for licensure were substantially equivalent to or more stringent
500 than those existing in this state; or
501 2. Meets the qualifications for licensure in s. 497.373 ,
502 except that the applicant need not hold an associate degree or
503 higher if the applicant holds a diploma or certificate from an
504 accredited program of mortuary science, and has successfully
505 completed a state, regional, or national examination in mortuary
506 science or funeral service arts, which, as determined by rule of
507 the licensing authority, is substantially equivalent to or more
508 stringent than the examination given by the licensing authority.
509 Section 23. Subsection (6) of section 554.108, Florida
510 Statutes, is renumbered as subsection (7), subsection (1) is
511 amended, and a new subsection (6) is added to that section, to
512 read:
513 554.108 Inspection.—
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514 (1) The inspection requirements of this chapter apply only
515 to boilers located in public assembly locations. A potable hot
516 water supply boiler with an a heat input of 200,000 British
517 thermal units (Btu) per hour and above, up to an a heat input
518 not exceeding 400,000 Btu per hour, is exempt from inspection ;
519 however, such an exempt boiler, if manufactured after July 1,
520 2022, but must be stamped with the A.S.M.E. code symbol.
521 Additionally, "HLW" and the boiler's A.S.M.E data report of a
522 boiler with an input of 200,000 to 400,000 Btu per hour must be
523 filed as required under s. 554.103(2).
524 (6) Each enclosed space or room containing a boiler
525 regulated under this chapter which is fired by the direct
526 application of energy from the combustion of fuels and which is
527 located in any portion of a public lodging establishment under
528 s. 509.242 shall be equipped with one or more carbon monoxide
529 detector devices.
530 Section 24. Paragraphs (a) and (e) of subsection (1) and
531 paragraph (a) of subsection (2) of section 554.111, Florida
532 Statutes, are amended to read:
533 554.111 Fees.—
534 (1) The department shall charge the following fees:
535 (a) For an applicant for a certificate of competency, the
536 initial application fee shall be $50, and the annual renewal fee
537 shall be $30. The fee for examination shall be $50.
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538 (e) An application for a boiler permit must include the
539 manufacturer's data report applicable certificate inspection fee
540 provided in paragraph (b).
541 (2) Not more than an amount equal to one certificate
542 inspection fee may be charged or collected for any and all
543 boiler inspections in any inspection period, except as otherwise
544 provided in this chapter.
545 (a) When it is necessary to make a special trip for
546 testing and verification inspections to observe the application
547 of a hydrostatic test, an additional fee equal to the fee for a
548 certificate inspection of the boiler must be charged.
549 Section 25. Subsection (4) of section 554.114, Florida
550 Statutes, is amended to read:
551 554.114 Prohibitions; penalties.—
552 (4) A boiler insurance company, authorized inspection
553 agency, or other person in violation of this section for more
554 than 30 days shall pay a fine of $10 per day for the subsequent
555 first 10 days of noncompliance, $50 per day for the subsequent
556 20 days of noncompliance, and $100 per day for each subsequent
557 day over 20 days of noncompliance thereafter.
558 Section 26. Subsection (9) of section 624.307, Florida
559 Statutes, is amended to read:
560 624.307 General powers; duties.—
561 (9) Upon receiving service of legal process issued in any
562 civil action or proceeding in this state against any regulated
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563 person or any unauthorized insurer under s. 626.906 or s.
564 626.937 that which is required to appoint the Chief Financial
565 Officer as its agent attorney to receive service of all legal
566 process, the Chief Financial Officer shall make the process
567 available through a secure online portal, as attorney, may, in
568 lieu of sending the process by registered or certified mail,
569 send the process or make it available by any other verifiable
570 means, including, but not limited to, making the documents
571 available by electronic transmission from a secure website
572 established by the department to the person last designated by
573 the regulated person or the unauthorized insurer to receive the
574 process. When process documents are made available
575 electronically, the Chief Financial Officer shall promptly send
576 a notice of receipt of service of process to the person last
577 designated by the regulated person or unauthorized insurer to
578 receive legal process. The notice must state the date and manner
579 in which the copy of the process was made available to the
580 regulated person or unauthorized insurer being served and
581 contain the uniform resource locator (URL) where for a hyperlink
582 to access files and information on the department's website to
583 obtain a copy of the process may be obtained.
584 Section 27. Section 624.422, Florida Statutes, is am ended
585 to read:
586 624.422 Service of process; appointment of Chief Financial
587 Officer as process agent.—
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588 (1) Each licensed insurer, whether domestic, foreign, or
589 alien, shall be deemed to have appointed the Chief Financial
590 Officer and her or his successors in office as its agent
591 attorney to receive service of all legal process issued against
592 it in any civil action or proceeding in this state; and process
593 so served shall be valid and binding upon the insurer.
594 (2) Before Prior to its authorization to transact
595 insurance in this state, each insurer shall file with the
596 department designation of the name and e-mail address of the
597 person to whom process against it served upon the Chief
598 Financial Officer is to be made available through the
599 department's secure online portal forwarded. Each insurer shall
600 also file with the department designation of the name and e-mail
601 address of the person to whom the department shall forward civil
602 remedy notices filed under s. 624.155. The insurer may change a
603 designation at any time by a new filing.
604 (3) Service of process submitted through the department's
605 secure online portal upon the Chief Financial Officer as the
606 insurer's agent attorney pursuant to such an appointment shall
607 be the sole method of service of process upon an authorized
608 domestic, foreign, or alien insurer in this state.
609 Section 28. Subsection (1) of section 624.423, Florida
610 Statutes, is amended to read:
611 624.423 Serving process.—
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612 (1) Service of process upon the Chief Financial Officer as
613 process agent of the insurer under s. 624.422 and s. 626.937
614 shall be made by serving a copy of the process upon the Chief
615 Financial Officer or upon her or his assistant, deputy, or ot her
616 person in charge of her or his office. Service may also be made
617 by mail or electronically as provided in s. 48.151(3) s. 48.151.
618 Upon receiving such service, the Chief Financial Officer shall
619 retain a record of the process copy and promptly notify and make
620 forward one copy of the process available through the
621 department's secure online portal by registered or certified
622 mail or by other verifiable means, as provided under s.
623 624.307(9), to the person last designated by the insurer to
624 receive the same, as provided under s. 624.422(2). For purposes
625 of this section, records shall may be retained electronically as
626 paper or electronic copies.
627 Section 29. Paragraph (f) of subsection (3) and paragraph
628 (d) of subsection (4) of section 624.610, Florida Statutes, are
629 amended to read:
630 624.610 Reinsurance.—
631 (3)
632 (f) If the assuming insurer is not authorized or
633 accredited to transact insurance or reinsurance in this state
634 pursuant to paragraph (a) or paragraph (b), the credit permitted
635 by paragraph (c) or paragraph (d) must not be allowed unless the
636 assuming insurer agrees in the reinsurance agreements:
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637 1.a. That in the event of the failure of the assuming
638 insurer to perform its obligations under the terms of the
639 reinsurance agreement, the assuming insurer, at the request of
640 the ceding insurer, shall submit to the jurisdiction of any
641 court of competent jurisdiction in any state of the United
642 States, will comply with all requirements necessary to give the
643 court jurisdiction, and will abide by the final decision of the
644 court or of any appellate court in the event of an appeal; and
645 b. To designate the Chief Financial Officer, pursuant to
646 s. 48.151(3) s. 48.151, as its true and lawful agent attorney
647 upon whom may be served any lawful process in any action, suit,
648 or proceeding instituted by or on behalf of the ceding company.
649 2. This paragraph is not intended to conflict with or
650 override the obligation of the parties to a reinsurance
651 agreement to arbitrate their disputes, if this obligation is
652 created in the agreement.
653 (4) Credit must be allowed when the reinsurance is ceded
654 to an assuming insurer meeting the requirements of this
655 subsection.
656 (d) The assuming insurer must, in a form specified by the
657 commission:
658 1. Agree to provide prompt written notice and explanation
659 to the office if the assuming insurer falls below the minimum
660 requirements set forth in paragraph (b) or paragraph (c), or if
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661 any regulatory action is taken against it for serious
662 noncompliance with applicable law of any jurisdiction.
663 2. Consent in writing to the jurisdiction of the courts of
664 this state and to the designation of the Chief Financial
665 Officer, pursuant to s. 48.151(3) s. 48.151, as its true and
666 lawful agent attorney upon whom may be served any lawful process
667 in any action, suit, or proceeding instituted by or on behalf of
668 the ceding insurer. This subparagraph does not limit or alter in
669 any way the capacity of parties to a reinsurance agreement to
670 agree to an alternative dispute resolution mechanism, except to
671 the extent that such agreement is unenforceable under applicable
672 insolvency or delinquency laws.
673 3. Consent in writing to pay all final judgments, wherever
674 enforcement is sought, obtained by a ceding insurer or its legal
675 successor which have been declared enforceable in the
676 jurisdiction where the judgment was obtained.
677 4. Confirm in writing that it will include in each
678 reinsurance agreement a provision requiring the assuming insurer
679 to provide security in an amount equal to 100 percent of the
680 assuming insurer's liabilities attributable to reinsurance ceded
681 pursuant to that agreement, if the assuming insurer resists
682 enforcement of a final judgment that is enforceable under the
683 law of the jurisdiction in which it was obtained or enforcement
684 of a properly enforceable arbitration award, whether obtained by
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685 the ceding insurer or by its legal successor on behalf of its
686 resolution estate.
687 5. Confirm in writing that it is not presently
688 participating in any solvent scheme of arrangement which
689 involves this state's ceding insurers, and agree to notify the
690 ceding insurer and the office and to provide security in an
691 amount equal to 100 percent of the assuming insurer's
692 liabilities to the ceding insurer if the assuming insurer enters
693 into such a solvent scheme of arrangement. Such security must be
694 consistent with subsection (5) or as specified by commission
695 rule.
696 Section 30. Subsection (20) of section 626.015, Florida
697 Statutes, is amended to read:
698 626.015 Definitions.—As used in this part:
699 (20) "Unaffiliated insurance agent" means a licensed
700 insurance agent, except a limited lines agent, who is self -
701 appointed and who practices as an independent consultant in the
702 business of analyzing or abstracting insurance policies,
703 providing insurance advice or counseling, or making specific
704 recommendations or comparisons of insurance products for a fee
705 established in advance by written contract signed by the
706 parties. An unaffiliated insurance agent may not be affiliated
707 with an insurer, insurer-appointed insurance agent, or insurance
708 agency contracted with or employing insurer-appointed insurance
709 agents. A licensed adjuster who is also an unaffiliated
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710 insurance agent may obtain an adjuster appointment in order to
711 adjust claims while holding an unaffiliated appointment on the
712 agent license.
713 Section 31. Subsection (4) of section 626.171, Florida
714 Statutes, is amended to read:
715 626.171 Application for license as an agent, customer
716 representative, adjuster, service representative, or reinsuranc e
717 intermediary.—
718 (4) An applicant for a license issued by the department
719 under this chapter as an agent, customer representative,
720 adjuster, service representative, or reinsurance intermediary
721 must submit a set of the individual applicant's fingerprints,
722 or, if the applicant is not an individual, a set of the
723 fingerprints of the sole proprietor, majority owner, partners,
724 officers, and directors, to the department and must pay the
725 fingerprint processing fee set forth in s. 624.501. Fingerprints
726 must be processed in accordance with s. 624.34 and used to
727 investigate the applicant's qualifications pursuant to s.
728 626.201. The fingerprints must be taken by a law enforcement
729 agency, designated examination center, or other department -
730 approved entity. The department shall require all designated
731 examination centers to have fingerprinting equipment and to take
732 fingerprints from any applicant or prospective applicant who
733 pays the applicable fee. The department may not approve an
734 application for licensure as an agent, customer service
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735 representative, adjuster, service representative, or reinsurance
736 intermediary if fingerprints have not been submitted.
737 Section 32. Paragraph (f) of subsection (2) of section
738 626.172, Florida Statutes, is amended to read:
739 626.172 Application for insurance agency license.—
740 (2) An application for an insurance agency license must be
741 signed by an individual required to be listed in the application
742 under paragraph (a). An insurance agency may permit a third
743 party to complete, submit, and sign an application on the
744 insurance agency's behalf; however, the insurance agency is
745 responsible for ensuring that the information on the application
746 is true and correct and is accountable for any misstatements or
747 misrepresentations. The application for an insurance agency
748 license must include:
749 (f) The fingerprints, submitted in accordance with s.
750 626.171(4), of each of the following:
751 1. A sole proprietor;
752 2. Each individual required to be listed in the
753 application under paragraph (a); and
754 3. Each individual who directs or participates in the
755 management or control of an incorporated agency whose shares are
756 not traded on a securities exchange.
757
758 Fingerprints must be taken by a law enforcement agency or other
759 entity approved by the department and must be accompanied by the
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760 fingerprint processing fee specified in s. 624.501. Fingerprints
761 must be processed in accordance with s. 624.34. However,
762 Fingerprints need not be filed for an individual who is
763 currently licensed and appointed under this chapter. This
764 paragraph does not apply to corporations whose voting shares are
765 traded on a securities exchange.
766 Section 33. Section 626.173, Florida Statutes, is created
767 to read:
768 626.173 Insurance agency closure; cancellation of
769 licenses.—
770 (1) If a licensed insurance agency permanently ceases the
771 transacting of insurance or ceases the transacting of insurance
772 for more than 30 days, the agent in charge, the director of the
773 agency, or other officer listed on the original application for
774 licensure must, within 35 days after the agency first ceases the
775 transacting of insurance, do all of the following:
776 (a) Cancel the insurance agency's license by completing
777 and submitting a form prescribed by the department to notify the
778 department of the cancellation of the license.
779 (b) Notify all insurers by which the agency or agent in
780 charge is appointed of the agency's cessation of operations, the
781 date on which operations ceased, the identity of any agency or
782 agent to which the agency's current book of business has been
783 transferred, and the method by which agency records may be
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784 obtained during the time periods specified in ss. 626.561 and
785 626.748.
786 (c) Notify all policyholders currently insured by a policy
787 written, produced, or serviced by the agency of the agency's
788 cessation of operations; the date on which operations ceased;
789 and the identity of the agency or agent to which the agency's
790 current book of business has been transferred or, if no transfer
791 has occurred, a statement directing the policyholder to contact
792 the insurance company for assistance in locating a licensed
793 agent to service the policy.
794 (d) Notify all premium finance companies through which
795 active policies are financed of the agency's cessation of
796 operations, the date on which operations ceased, and the
797 identity of any agency or agent to which the agency's current
798 book of business has been transferred.
799 (e) Ensure that all funds held in a fiduciary capacity are
800 properly distributed to the rightful owners.
801 (2)(a) The department may, in a proceeding initiated
802 pursuant to chapter 120, impose an administrative fine against
803 the agent in charge or the director or officer of the agency
804 found in the proceeding to have violated any provision of this
805 section. A proceeding may not be initiated and a fine may not
806 accrue until after the person has been notified in writing of
807 the nature of the violation and the person has been afforded 10
808 business days to correct the violation but has failed to do so.
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809 (b) A fine imposed under this subsection may not exceed
810 the amounts specified in s. 626.681 per violation.
811 (c) The department may, in addition to the imposition of
812 an administrative fine under this subsection, also suspend or
813 revoke the license of the licensee fined under this subsection.
814 (d) In imposing any administrative penalty or remedy
815 provided under this subsection, the department shall take into
816 account the appropriateness of the penalty or remedy with
817 respect to the size of the financial resources and the good
818 faith of the person charged, the gravity of the violation, the
819 history of previous violations, and other matters as justice may
820 require.
821 Section 34. Subsection (3) of section 626.201, Florida
822 Statutes, is amended, and subsection (4) is added to that
823 section, to read:
824 626.201 Investigation.—
825 (3) An inquiry or investigation of the applicant's
826 qualifications, character, experience, background, and fitness
827 must include submission of the applicant's fingerprints , in
828 accordance with s. 626.171(4), to the Department of Law
829 Enforcement and the Federal Bureau of Investigation and
830 consideration of any state criminal records, federal criminal
831 records, or local criminal records obtained from these agencies
832 or from local law enforcement agencies.
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Amendment No. 1
833 (4) The expiration, nonrenewal, or surrender of a license
834 under this chapter does not eliminate jurisdiction of the
835 department or office to investigate and prosecute for a
836 violation committed by the licensee while licensed under this
837 chapter. The prosecution of any matter may be initiated or
838 continued notwithstanding the withdrawal of a complaint.
839 Section 35. Section 626.202, Florida Statutes, is amended
840 to read:
841 626.202 Fingerprinting requirements.—
842 (1) The requirements for completion and submission of
843 fingerprints under this chapter in accordance with s. 626.171(4)
844 are deemed to be met when an individual currently licensed under
845 this chapter seeks additional licensure and has previously
846 submitted fingerprints to the department within the past 48
847 months. However, the department may require the individual to
848 file fingerprints if it has reason to believe that an applicant
849 or licensee has been found guilty of, or pleaded guilty or nolo
850 contendere to, a felony or a crime related to the business of
851 insurance in this state or any other state or jurisdiction.
852 (2) If there is a change in ownership or control of any
853 entity licensed under this chapter, or if a new partner,
854 officer, or director is employed or appointed, a set of
855 fingerprints of the new owner, partner, officer, or director
856 must be filed with the department or office within 30 days after
857 the change. The acquisition of 10 percent or more of the voting
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Amendment No. 1
858 securities of a licensed entity is considered a change of
859 ownership or control. The fingerprints must be submitted in
860 accordance with s. 626.171(4) taken by a law enforcement agency
861 or other department-approved entity and be accompanied by the
862 fingerprint processing fee in s. 624.501.
863 Section 36. Paragraph (j) of subsection (2) of section
864 626.221, Florida Statutes, is amended to read:
865 626.221 Examination requirement; exemptions.—
866 (2) However, an examination is not necessary for any of
867 the following:
868 (j) An applicant for license as an all-lines adjuster who
869 has the designation of Accredited Claims Adjuster (ACA) from a
870 regionally accredited postsecondary institution in this state,
871 Certified All Lines Adjuster (CALA) from Kaplan Financial
872 Education, Associate in Claims (AIC) from the Insurance
873 Institute of America, Professional Claims Adjuster (PCA) from
874 the Professional Career Institute, Professional Prope rty
875 Insurance Adjuster (PPIA) from the HurriClaim Training Academy,
876 Certified Adjuster (CA) from ALL LINES Training, Certified
877 Claims Adjuster (CCA) from AE21 Incorporated, Claims Adjuster
878 Certified Professional (CACP) from WebCE, Inc., Accredited
879 Insurance Claims Specialist (AICS) from Encore Claim Services,
880 or Universal Claims Certification (UCC) from Claims and
881 Litigation Management Alliance (CLM) whose curriculum has been
882 approved by the department and which includes comprehensive
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Amendment No. 1
883 analysis of basic property and casualty lines of insurance and
884 testing at least equal to that of standard department testing
885 for the all-lines adjuster license. The department shall adopt
886 rules establishing standards for the approval of curriculum.
887 Section 37. Subsection (6) of section 626.311, Florida
888 Statutes, is amended to read:
889 626.311 Scope of license.—
890 (6) An agent who appoints his or her license as an
891 unaffiliated insurance agent may not hold an appointment from an
892 insurer for any license he or she holds, with the exception of
893 an adjuster license; transact, solicit, or service an insurance
894 contract on behalf of an insurer; interfere with commissions
895 received or to be received by an insurer-appointed insurance
896 agent or an insurance agency contracted with or employin g
897 insurer-appointed insurance agents; or receive compensation or
898 any other thing of value from an insurer, an insurer-appointed
899 insurance agent, or an insurance agency contracted with or
900 employing insurer-appointed insurance agents for any transaction
901 or referral occurring after the date of appointment as an
902 unaffiliated insurance agent. An unaffiliated insurance agent
903 may continue to receive commissions on sales that occurred
904 before the date of appointment as an unaffiliated insurance
905 agent if the receipt of such commissions is disclosed when
906 making recommendations or evaluating products for a client that
907 involve products of the entity from which the commissions are
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Amendment No. 1
908 received. An adjuster who holds an adjuster license and who is
909 also an unaffiliated insurance agent may obtain an adjuster
910 appointment while maintaining his or her unaffiliated insurance
911 agent appointment and may adjust claims and receive compensation
912 in accordance with the authority granted by the adjuster license
913 and appointment.
914 Section 38. Paragraph (h) of subsection (1) of section
915 626.321, Florida Statutes, is amended to read:
916 626.321 Limited licenses and registration.—
917 (1) The department shall issue to a qualified applicant a
918 license as agent authorized to transact a limited class of
919 business in any of the following categories of limited lines
920 insurance:
921 (h) Portable electronics insurance.—License for property
922 insurance or inland marine insurance that covers only loss,
923 theft, mechanical failure, malfunction, or damage for portable
924 electronics.
925 1. The license may be issued only to:
926 a. Employees or authorized representatives of a licensed
927 general lines agent; or
928 b. The lead business location of a retail vendor that
929 sells portable electronics insurance. The lead business location
930 must have a contractual relationship with a general lines agent.
931 2. Employees or authorized representatives of a licensee
932 under subparagraph 1. may sell or offer for sale portable
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Amendment No. 1
933 electronics coverage without being subject to licensure as an
934 insurance agent if:
935 a. Such insurance is sold or offered for sale at a
936 licensed location or at one of the licensee's branch locations
937 if the branch location is appointed by the licensed lead
938 business location or its appointing insurers;
939 b. The insurer issuing the insurance directly supervises
940 or appoints a general lines agent to supervise the sale of such
941 insurance, including the development of a training program for
942 the employees and authorized representatives of vendors that are
943 directly engaged in the activity of selling or offering the
944 insurance; and
945 c. At each location where the insurance is offered,
946 brochures or other written materials that provide the
947 information required by this subparagraph are made available to
948 all prospective customers. The brochures or written materials
949 may include information regarding portable electronics
950 insurance, service warranty agreements, or other incidental
951 services or benefits offered by a licensee.
952 3. Individuals not licensed to sell portable electronics
953 insurance may not be paid commissions based on the sale of such
954 coverage. However, a licensee who uses a compensation plan for
955 employees and authorized representatives which includes
956 supplemental compensation for the sale of noninsurance products,
957 in addition to a regular salary or hourly wages, may include
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Amendment No. 1
958 incidental compensation for the sale of portable electronics
959 insurance as a component of the overall compensation plan.
960 4. Brochures or other written materials related to
961 portable electronics insurance must:
962 a. Disclose that such insurance may duplicate coverage
963 already provided by a customer's homeowners insurance policy,
964 renters insurance policy, or other source of coverage;
965 b. State that enrollment in insurance coverage is not
966 required in order to purchase or lease portable electronics or
967 services;
968 c. Summarize the material terms of the insurance coverage,
969 including the identity of the insurer, the identity of the
970 supervising entity, the amount of any applicable deductible and
971 how it is to be paid, the benefits of coverage, and key terms
972 and conditions of coverage, such as whether portable electronics
973 may be repaired or replaced with similar make and model
974 reconditioned or nonoriginal manufacturer parts or equipment;
975 d. Summarize the process for filing a claim, including a
976 description of how to return portable electronics and the
977 maximum fee applicable if the customer fails to comply with
978 equipment return requirements; and
979 e. State that an enrolled customer may cancel coverage at
980 any time and that the person paying the premium will receive a
981 refund of any unearned premium.
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Amendment No. 1
982 5. A licensed and appointed general lines agent is not
983 required to obtain a portable electronics insurance license to
984 offer or sell portable electronics insurance at locations
985 already licensed as an insurance agency, but may apply for a
986 portable electronics insurance license for branch locations not
987 otherwise licensed to sell insurance.
988 6. A portable electronics license authorizes the sale of
989 individual policies or certificates under a group or master
990 insurance policy. The license also authorizes the sale of
991 service warranty agreements covering only portable electronics
992 to the same extent as if licensed under s. 634.419 or s.
993 634.420.
994 7. A licensee may bill and collect the premium for the
995 purchase of portable electronics insurance provided that:
996 a. If the insurance is included with the purchase or lease
997 of portable electronics or related services, the licensee
998 clearly and conspicuously discloses that insurance coverage is
999 included with the purchase. Disclosure of the stand-alone cost
1000 of the premium for same or similar insurance must be made on the
1001 customer's bill and in any marketing materials made available at
1002 the point of sale. If the insurance is not included, the charge
1003 to the customer for the insurance must be separately itemized on
1004 the customer's bill.
1005 b. Premiums are incidental to other fees collected, are
1006 maintained in a manner that is readily identifiable, and are
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Amendment No. 1
1007 accounted for and remitted to the insurer or supervising entity
1008 within 60 days of receipt. Licensees are not required to
1009 maintain such funds in a segregated account.
1010 c. All funds received by a licensee from an enrolled
1011 customer for the sale of the insurance are considered funds held
1012 in trust by the licensee in a fiduciary capacity for the benefit
1013 of the insurer. Licensees may receive compensation for billing
1014 and collection services.
1015 8. Notwithstanding any other provision of law, the terms
1016 for the termination or modification of coverage under a policy
1017 of portable electronics insurance are those set forth in the
1018 policy.
1019 9. Notice or correspondence required by the policy, or
1020 otherwise required by law, may be provided by electronic means
1021 if the insurer or licensee maintains proof that the notice or
1022 correspondence was sent. Such notice or correspondence may be
1023 sent on behalf of the insurer or licensee by the general lines
1024 agent appointed by the insurer to supervise the administration
1025 of the program. For purposes of this subparagraph, an enrolled
1026 customer's provision of an electronic mail address to the
1027 insurer or licensee is deemed to be consent to receive notices
1028 and correspondence by electronic means if a conspicuously
1029 located disclosure is provided to the customer indicating the
1030 same.
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Amendment No. 1
1031 10. The provisions of this chapter requiring submission of
1032 fingerprints requirements in s. 626.171(4) do not apply to
1033 licenses issued to qualified entities under this paragraph.
1034 11. A branch location that sells portable electronics
1035 insurance may, in lieu of obtaining an appointment from an
1036 insurer or warranty association, obtain a single appointment
1037 from the associated lead business location licensee and pay the
1038 prescribed appointment fee under s. 624.501 if the lead business
1039 location has a single appointment from each insurer or warranty
1040 association represented and such appointment applies to the lead
1041 business location and all of its branch locations. Branch
1042 location appointments shall be renewed 24 months after the
1043 initial appointment date of the lead business location and every
1044 24 months thereafter. Notwithstanding s. 624.501, the renewal
1045 fee applicable to such branch location appointments is $30 per
1046 appointment.
1047 12. For purposes of this paragraph:
1048 a. "Branch location" means any physical location in this
1049 state at which a licensee offers its products or services for
1050 sale.
1051 b. "Portable electronics" means personal, self-contained,
1052 easily carried by an individual, battery-operated electronic
1053 communication, viewing, listening, recording, gaming, computing
1054 or global positioning devices, including cell or satellite
1055 phones, pagers, personal global positioning satellite units,
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Amendment No. 1
1056 portable computers, portable audio listening, video viewing or
1057 recording devices, digital cameras, video camcorders, portable
1058 gaming systems, docking stations, automatic answering devices,
1059 and other similar devices and their accessories, and service
1060 related to the use of such devices.
1061 c. "Portable electronics transaction" means the sale or
1062 lease of portable electronics or a related service, including
1063 portable electronics insurance.
1064 Section 39. Subsection (5) of section 626.601, Florida
1065 Statutes, is amended to read:
1066 626.601 Improper conduct; inquiry; fingerprinting. —
1067 (5) If the department or office, after investigation, has
1068 reason to believe that an individual may have been found guilty
1069 of or pleaded guilty or nolo contendere to a felony or a crime
1070 related to the business of insurance in this or any other state
1071 or jurisdiction, the department or office may require the
1072 individual to file with the department or office a complete set
1073 of his or her fingerprints, in accordance with s. 626.171(4),
1074 which shall be accompanied by the fingerprint processing fee set
1075 forth in s. 624.501. The fingerprints shall be taken by an
1076 authorized law enforcement agency or other department -approved
1077 entity.
1078 Section 40. Paragraph (d) of subsection (2) of section
1079 626.8411, Florida Statutes, is amended, and paragraph (f) is
1080 added to subsection (1) of that section, to read:
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Amendment No. 1
1081 626.8411 Application of Florida Insurance Code provisions
1082 to title insurance agents or agencies.—
1083 (1) The following provisions applicable to general lines
1084 agents or agencies also apply to title insurance agents or
1085 agencies:
1086 (f) Section 626.172(2)(f), relating to fingerprints.
1087 (2) The following provisions of part I do not apply to
1088 title insurance agents or title insurance agencies:
1089 (d) Section 626.172, except for paragraph (2)(f) of that
1090 section, relating to agent in full-time charge.
1091 Section 41. Paragraph (b) of subsection (1) of section
1092 626.8412, Florida Statutes, is amended to read:
1093 626.8412 License and appointments required.—
1094 (1) Except as otherwise provided in this part:
1095 (b) A title insurance agent may not sell a title insurance
1096 policy issued by an insurer for which the agent and the agency
1097 do does not hold a current appointment.
1098 Section 42. Paragraph (a) of subsection (3) of section
1099 626.8417, Florida Statutes, is amended to read:
1100 626.8417 Title insurance agent licensure; exemptions.—
1101 (3) The department may not grant or issue a license as a
1102 title insurance agent to an individual who is found by the
1103 department to be untrustworthy or incompetent, who does not meet
1104 the qualifications for examination specified in s. 626.8414, or
1105 who does not meet the following qualifications:
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1106 (a) Within the 4 years immediately preceding the date of
1107 the application for license, the applicant must have completed a
1108 40-hour classroom course in title insurance, 3 hours of which
1109 are on the subject matter of ethics, as approved by the
1110 department, or must have had at least 12 months of experience in
1111 responsible title insurance duties, under the supervision of a
1112 licensed title insurance agent, title insurer, or attorney while
1113 working in the title insurance business as a substantially full -
1114 time, bona fide employee of a title insurance agency, title
1115 insurance agent, title insurer, or attorney who condu cts real
1116 estate closing transactions and issues title insurance policies
1117 but who is exempt from licensure under subsection (4). If an
1118 applicant's qualifications are based upon the periods of
1119 employment at responsible title insurance duties, the applicant
1120 must submit, with the license application, an affidavit of the
1121 applicant and of the employer affirming the period of such
1122 employment, that the employment was substantially full time, and
1123 giving a brief abstract of the nature of the duties performed by
1124 the applicant.
1125 Section 43. Section 626.8421, Florida Statutes, is amended
1126 to read:
1127 626.8421 Number of appointments permitted or required. —A
1128 title agent and a title agency shall be required to have a
1129 separate appointment as to each insurer by which they are he or
1130 she is appointed as agents agent. As a part of each appointment
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Amendment No. 1
1131 there shall be a certified statement or affidavit of an
1132 appropriate officer or official of the appointing insurer
1133 stating that to the best of the insurer's knowledge and belief
1134 the applicant, or its principals in the case of a corporation or
1135 other legal entity, has met the requirements of s. 626.8417.
1136 Section 44. Subsections (1) and (2) of section 626.843,
1137 Florida Statutes, are amended to read:
1138 626.843 Renewal, continuation, reinstatement, termination
1139 of title insurance agent's and title insurance agency's
1140 appointments appointment.—
1141 (1) Appointments the appointment of a title insurance
1142 agent and a title insurance agency shall continue in force until
1143 suspended, revoked, or otherwise terminated, but subject to a
1144 renewed request filed by the insurer every 24 months after the
1145 original issue dates date of the appointments appointment,
1146 accompanied by payments payment of the renewal appointment fees
1147 fee and taxes as prescribed in s. 624.501.
1148 (2) Title insurance agent and title insurance agency
1149 appointments shall be renewed pursuant to s. 626.381 for
1150 insurance representatives in general.
1151 Section 45. Subsection (1) of section 626.8433, Florida
1152 Statutes, is amended to read:
1153 626.8433 Filing of reasons for terminating appointments
1154 appointment of title insurance agent and title insurance agency;
1155 confidential information.—
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Amendment No. 1
1156 (1) Any title insurer that is terminating the appointment
1157 of a title insurance agent or title insurance agency, whether
1158 such termination is by direct action of the appointing title
1159 insurer or by failure to renew or continue the appointment as
1160 provided, shall file with the department a statement of the
1161 reasons, if any, for, and the facts relative to, such
1162 termination.
1163 Section 46. Section 626.8447, Florida Statutes, is amended
1164 to read:
1165 626.8447 Effect of suspension or revocation upon other
1166 licensees, appointees.—In case of the suspension or revocation
1167 of the license and appointment of any title insurance agent or
1168 title insurance agency, the licenses and appointments of all
1169 other title insurance agents who knowingly were parties to the
1170 act that which formed the ground for such suspension or
1171 revocation may likewise be suspended or revoked for the same
1172 period as that of the offending title insurance agent or title
1173 insurance agency, but such suspension or revocation does shall
1174 not prevent any title insurance agent, except the one whose
1175 license and appointment was first suspended or revoked, from
1176 being issued an appointment for some other title insurer.
1177 Section 47. Paragraph (d) of subsection (10) of section
1178 626.854, Florida Statutes, is redesignated as paragraph (f),
1179 paragraphs (a) and (b) of that subsection are amended, and a new
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Amendment No. 1
1180 paragraph (d) and paragraph (e) are added to that subsection, to
1181 read:
1182 626.854 "Public adjuster" defined; prohibitions.—The
1183 Legislature finds that it is necessary for the protection of the
1184 public to regulate public insurance adjusters and to prevent the
1185 unauthorized practice of law.
1186 (10)(a) If a public adjuster enters into a contract with
1187 an insured or claimant to reopen a claim that seeks additional
1188 payments for a claim that has been previously paid in part or in
1189 full or settled by the insurer, the public adjuster may not
1190 charge, agree to, or accept from any source compensation,
1191 payment, commission, fee, or any other thing of value based on a
1192 previous settlement or previous claim payments by the insurer
1193 for the same cause of loss. The charge, compensation, payment,
1194 commission, fee, or any other thing of value must be based only
1195 on the claim payments or settlements paid to the insured,
1196 exclusive of attorney fees and costs, settlement obtained
1197 through the work of the public adjuster after entering into the
1198 contract with the insured or claimant. Compensation for the
1199 reopened or supplemental claim may not exceed 20 percent of the
1200 reopened or supplemental claim payment. In no event shall the
1201 contracts described in this paragraph exceed the limitations in
1202 paragraph (b).
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Amendment No. 1
1203 (b) A public adjuster may not charge, agree to, or accept
1204 from any source compensation, payment, commission, fee, or any
1205 other thing of value in excess of:
1206 1. Ten percent of the amount of insurance claim payments
1207 or settlements, exclusive of attorney fees and costs, paid to
1208 the insured made by the insurer for claims based on events that
1209 are the subject of a declaration of a state of emergency by the
1210 Governor. This provision applies to claims made during the year
1211 after the declaration of emergency. After that year, the
1212 limitations in subparagraph 2. apply.
1213 2. Twenty percent of the amount of insurance claim
1214 payments or settlements, exclusive of attorney fees and costs,
1215 paid to the insured made by the insurer for claims that are not
1216 based on events that are the subject of a declaration of a state
1217 of emergency by the Governor.
1218 (d) Public adjuster compensation may not be based on
1219 amounts attributable to additional living expenses, unless such
1220 compensation is affirmatively agreed to in a separate agreement
1221 that includes a disclosure in substantially the following form:
1222 "I agree to retain and compensate the public adjuster for
1223 adjusting my additional living expenses and securing payment
1224 from my insurer for amounts attributable to additional living
1225 expenses payable under the policy issued on my (home/mobile
1226 home/condominium unit)."
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Amendment No. 1
1227 (e) Public adjuster rate of compensation may not be
1228 increased based solely on the fact that the claim is litigated.
1229 Section 48. Section 626.8561, Florida Statutes, is amended
1230 to read:
1231 626.8561 "Public adjuster apprentice" defined.—The term
1232 "public adjuster apprentice" means a person licensed as an all-
1233 lines adjuster who:
1234 (1) Is appointed and employed or contracted by a public
1235 adjuster or a public adjusting firm;
1236 (2) Assists the public adjuster or public adjusting firm
1237 in ascertaining and determining the amount of any claim, loss,
1238 or damage payable under an insurance contract, or who undertakes
1239 to effect settlement of such claim, loss, or damage; and
1240 (3) Satisfies the requirements of s. 626.8651.
1241 Section 49. Paragraph (e) of subsection (1) and subsection
1242 (2) of section 626.865, Florida Statutes, are amended to read:
1243 626.865 Public adjuster's qualifications, bond.—
1244 (1) The department shall issue a license to an applicant
1245 for a public adjuster's license upon determining that the
1246 applicant has paid the applicable fees specified in s. 624.501
1247 and possesses the following qualifications:
1248 (e) Has been licensed and appointed in this state as a
1249 nonresident public adjuster on a continual basis for the
1250 previous 6 months, or has been licensed as an all-lines
1251 adjuster, and has been appointed on a continual basis for the
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1252 previous 6 months as a public adjuster apprentice under s.
1253 626.8561, as an independent adjuster under s. 626.855, or as a
1254 company employee adjuster under s. 626.856.
1255 (2) At the time of application for license as a public
1256 adjuster, the applicant shall file with the department a bond
1257 executed and issued by a surety insurer authorized to transact
1258 such business in this state, in the amount of $50,000,
1259 conditioned for the faithful performance of his or her duties as
1260 a public adjuster under the license for which the applicant has
1261 applied, and thereafter maintain the bond unimpaired throughout
1262 the existence of the license and for at least 1 year after
1263 termination of the license.
1264 (a) The bond must shall be in favor of the department and
1265 must shall specifically authorize recovery by the department of
1266 the damages sustained in case the licensee is guilty of fraud or
1267 unfair practices in connection with his or her business as
1268 public adjuster.
1269 (b) The bond must remain in effect for 1 year after the
1270 expiration or termination of the license.
1271 (c) The aggregate liability of the surety for all such
1272 damages may not shall in no event exceed the amount of the bond.
1273 The Such bond may shall not be terminated unless at least 30
1274 days' written notice is given to the licensee and filed with the
1275 department.
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Amendment No. 1
1276 Section 50. Paragraph (a) of subsection (1) and subsection
1277 (3) of section 626.8651, Florida Statutes, are amended to read:
1278 626.8651 Public adjuster apprentice appointment;
1279 qualifications.—
1280 (1)(a) The department shall issue an appointment as a
1281 public adjuster apprentice to a licensee who:
1282 1. Is licensed as an all-lines adjuster under s. 626.866;
1283 2. Has filed with the department a bond executed and
1284 issued by a surety insurer that is authorized to transact such
1285 business in this state in the amount of $50,000, which is
1286 conditioned upon the faithful performance of his or her duties
1287 as a public adjuster apprentice; and
1288 3. Maintains such bond unimpaired throughout the existence
1289 of the appointment. The bond must remain in effect for 1 year
1290 after the expiration or termination of the license and for at
1291 least 1 year after termination of the appointment.
1292 (3) A public adjuster apprentice has the same authority as
1293 the licensed public adjuster or public adjusting firm that
1294 employs the apprentice except that an apprentice may not execute
1295 contracts for the services of a public adjuster or public
1296 adjusting firm. An individual may not be, act as, or hold
1297 himself or herself out to be a public adjuster apprentice unless
1298 the individual is licensed as an all-lines adjuster and holds a
1299 current appointment by a licensed public all-lines adjuster or a
1300 public adjusting firm that has designated with the department a
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Amendment No. 1
1301 primary employs a licensed public adjuster as required by s.
1302 626.8695.
1303 Section 51. Section 626.8696, Florida Statutes, is amended
1304 to read:
1305 626.8696 Application for adjusting firm license.—
1306 (1) The application for an adjusting firm license must
1307 include:
1308 (a) The name of each majority owner, partner, officer, and
1309 director of the adjusting firm.
1310 (b) The resident address of each person required to be
1311 listed in the application under paragraph (a).
1312 (c) The name of the adjusting firm and its principal
1313 business address.
1314 (d) The location of each adjusting firm office and the
1315 name under which each office conducts or will conduct business.
1316 (e) The name and license number of the designated primary
1317 adjuster for each adjusting firm location as required in s.
1318 626.8695.
1319 (f) The fingerprints of each individual required to be
1320 listed in the application under paragraph (a), filed in
1321 accordance with s. 626.171(4). However, fingerprints need not be
1322 filed for an individual who is currently licensed and appointed
1323 under this chapter.
1324 (g)(e) Any additional information that the department
1325 requires.
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Amendment No. 1
1326 (2) An application for an adjusting firm license must be
1327 signed by one of the individuals required to be listed in the
1328 application under paragraph (1)(a) each owner of the firm. If
1329 the firm is incorporated, the application must be signed by the
1330 president and secretary of the corporation.
1331 (3) Each application must be accompanied by payment of any
1332 applicable fee as prescribed in s. 624.501.
1333 (4) License fees are not refundable.
1334 (5) An adjusting firm required to be licensed pursuant to
1335 s. 626.8695 must remain so licensed for a period of 3 years from
1336 the date of licensure, unless the license is suspended or
1337 revoked. The department may suspend or revoke the adjusting
1338 firm's authority to do business for activities occurring during
1339 the time the firm is licensed, regardless of whether the
1340 licensing period has terminated.
1341 Section 52. Subsection (3) of section 626.8732, Florida
1342 Statutes, is amended to read:
1343 626.8732 Nonresident public adjuster's qualifications,
1344 bond.—
1345 (3) At the time of application for license as a
1346 nonresident public adjuster, the applicant shall file with the
1347 department a bond executed and issued by a surety insurer
1348 authorized to transact surety business in this state, in the
1349 amount of $50,000, conditioned for the faithful performance of
1350 his or her duties as a nonresident public adjuster under the
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Amendment No. 1
1351 license applied for. Thereafter, the applicant shall maintain
1352 the bond unimpaired throughout the existence of the license and
1353 for 1 year after the expiration or termination of the license.
1354 (a) The bond must be in favor of the department and must
1355 specifically authorize recovery by the department of the damages
1356 sustained if the licensee commits fraud or unfair practices in
1357 connection with his or her business as nonresident public
1358 adjuster.
1359 (b) The aggregate liability of the surety for all the
1360 damages may not exceed the amount of the bond. The bond may not
1361 be terminated unless at least 30 days' written notice is given
1362 to the licensee and filed with the department.
1363 Section 53. Paragraph (a) of subsection (2) of section
1364 626.8734, Florida Statutes, is amended to read:
1365 626.8734 Nonresident all-lines adjuster license
1366 qualifications.—
1367 (2) The applicant must furnish the following with his or
1368 her application:
1369 (a) A complete set of his or her fingerprints in
1370 accordance with s. 626.171(4). The applicant's fingerprints must
1371 be certified by an authorized law enforcement officer.
1372 Section 54. Section 626.906, Florida Statutes, is amended
1373 to read:
1374 626.906 Acts constituting Chief Financial Officer as
1375 process agent.—Any of the following acts in this state, effected
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Amendment No. 1
1376 by mail or otherwise, by an unauthorized foreign insurer, alien
1377 insurer, or person representing or aiding such an insurer is
1378 equivalent to and shall constitute an appointment by such
1379 insurer or person representing or aiding such insurer of the
1380 Chief Financial Officer to be its true and lawful agent
1381 attorney, upon whom may be served all lawful process in any
1382 action, suit, or proceeding instituted by or on behalf of an
1383 insured or beneficiary, arising out of any such contract of
1384 insurance; and any such act shall be signification of the
1385 insurer's or person's agreement that such service of process is
1386 of the same legal force and validity as personal service of
1387 process in this state upon such insurer or person representing
1388 or aiding such insurer:
1389 (1) The issuance or delivery of contracts of insurance to
1390 residents of this state or to corporations authorized to do
1391 business therein;
1392 (2) The solicitation of applications for such contracts;
1393 (3) The collection of premiums, membership fees,
1394 assessments, or other considerations for such contracts; or
1395 (4) Any other transaction of insurance.
1396 Section 55. Subsection (4) of section 626.912, Florida
1397 Statutes, is amended to read:
1398 626.912 Exemptions from ss. 626.904-626.911.—The
1399 provisions of ss. 626.904-626.911 do not apply to any action,
1400 suit, or proceeding against any unauthorized foreign insurer,
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Amendment No. 1
1401 alien insurer, or person representing or aiding such an insurer
1402 arising out of any contract of insurance:
1403 (4) Issued under and in accordance with the Surplus Lines
1404 Law, when such insurer or person representing or aiding such
1405 insurer enters a general appearance or when such contract of
1406 insurance contains a provision designating the Chief Financial
1407 Officer or designating a Florida resident agent to be the true
1408 and lawful agent attorney of such unauthorized insurer or person
1409 representing or aiding such insurer upon whom may be served all
1410 lawful process in any action, suit, or proceeding instituted by
1411 or on behalf of an insured or person representing or aiding such
1412 insurer or beneficiary arising out of any such contract of
1413 insurance; and service of process effected on such Chief
1414 Financial Officer or such resident agent shall be deemed to
1415 confer complete jurisdiction over such unauthorized insurer or
1416 person representing or aiding such insurer in such action.
1417 Section 56. Subsections (3) and (4) of section 626.937,
1418 Florida Statutes, are amended to read:
1419 626.937 Actions against insurer; service of process. —
1420 (3) Each unauthorized insurer requesting eligibility
1421 pursuant to s. 626.918 shall file with the department its
1422 appointment of the Chief Financial Officer, on a form as
1423 furnished by the department, as its agent attorney to receive
1424 service of all legal process issued against it in any civil
1425 action or proceeding in this state, and agreeing that process so
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Amendment No. 1
1426 served shall be valid and binding upon the insurer. The
1427 appointment shall be irrevocable, shall bind the insurer and any
1428 successor in interest as to the assets or liabilities of the
1429 insurer, and shall remain in effect as long as there is
1430 outstanding in this state any obligation or liability of the
1431 insurer resulting from its insurance transactions therein.
1432 (4) At the time of such appointment of the Chief Financial
1433 Officer as its process agent, the insurer shall file with the
1434 department designation of the name and e-mail address of the
1435 person to whom process against it served upon the Chief
1436 Financial Officer is to be made available through the
1437 department's secure online portal forwarded. The insurer may
1438 change the designation at any time by a new filing.
1439 Section 57. Subsection (5) of section 626.9953, Florida
1440 Statutes, is amended to read:
1441 626.9953 Qualifications for registration; application
1442 required.—
1443 (5) An applicant must submit a set of his or her
1444 fingerprints in accordance with s. 626.171(4) to the department
1445 and pay the processing fee established under s. 624.501(23). The
1446 department shall submit the applicant's fingerprints to the
1447 Department of Law Enforcement for processing state criminal
1448 history records checks and local criminal records checks through
1449 local law enforcement agencies and for forwarding to the Federal
1450 Bureau of Investigation for national criminal history records
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Amendment No. 1
1451 checks. The fingerprints shall be taken by a law enforcement
1452 agency, a designated examination center, or another department-
1453 approved entity. The department may not approve an application
1454 for registration as a navigator if fingerprints have not been
1455 submitted.
1456 Section 58. Paragraphs (e) and (f) are added to subsection
1457 (4) of section 633.135, Florida Statutes, to read:
1458 633.135 Firefighter Assistance Grant Program.—
1459 (4) Funds shall be used to:
1460 (e) Purchase other equipment and tools that improve
1461 firesafety and fire rescue capabilities for firefighters.
1462 (f) Purchase protective clothing and equipment compliant
1463 with NFPA 1977, "Standard on Protective Clothing and Equipment
1464 for Wildland Fire Fighting and Urban Interface Fire F ighting."
1465 Section 59. Subsections (6) through (9) of section
1466 633.216, Florida Statutes, are renumbered as subsections (5)
1467 through (8), respectively, and subsection (4) and present
1468 subsection (5) of that section are amended, to read:
1469 633.216 Inspection of buildings and equipment; orders;
1470 firesafety inspection training requirements; certification;
1471 disciplinary action.—The State Fire Marshal and her or his
1472 agents or persons authorized to enforce laws and rules of the
1473 State Fire Marshal shall, at any reasonable hour, when the State
1474 Fire Marshal has reasonable cause to believe that a violation of
1475 this chapter or s. 509.215, or a rule adopted thereunder, or a
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Amendment No. 1
1476 minimum firesafety code adopted by the State Fire Marshal or a
1477 local authority, may exist, inspect any and all buildings and
1478 structures which are subject to the requirements of this chapter
1479 or s. 509.215 and rules adopted thereunder. The authority to
1480 inspect shall extend to all equipment, vehicles, and chemicals
1481 which are located on or within the premises of any such building
1482 or structure.
1483 (4) Every firesafety inspector certificate is valid for a
1484 period of 4 years from the date of issuance. Renewal of
1485 certification is subject to the affected person's completing
1486 proper application for renewal and meeting all of the
1487 requirements for renewal as established under this chapter or by
1488 rule adopted under this chapter, which must include completion
1489 of at least 54 hours during the preceding 4-year period of
1490 continuing education as required by the rule of the department
1491 or, in lieu thereof, successful passage of an examination as
1492 established by the department.
1493 (5) A previously certified firesafety inspector whose
1494 certification has lapsed for 8 years or more must repeat the
1495 fire safety inspector training as specified by the division.
1496 Section 60. Subsection (5) of section 633.336, Florida
1497 Statutes, is amended to read:
1498 633.336 Contracting without certificate prohibited;
1499 violations; penalty.—
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Amendment No. 1
1500 (5) In addition to the penalties provided in subsection
1501 (4), a fire protection contractor certified under this chapter
1502 who violates any provision of this section or who commits any
1503 act constituting cause for disciplinary action is subject to :
1504 (a) Ssuspension or revocation of the certificate and
1505 administrative fines pursuant to s. 633.338; and
1506 (b) An administrative fine of up to $10,000 in any one
1507 proceeding for violations of subsections (1) or (2), and if
1508 applicable, may be in addition to or in lieu of suspension or
1509 revocation of a certificate.
1510
1511 The State Fire Marshal shall adopt by rule guidelines that
1512 specify a range of designated penalties under this subsection
1513 based upon the severity and repetition of specific offenses and
1514 identify mitigating and aggravating circumstances that allow the
1515 State Fire Marshal to impose a penalty other than that provided
1516 for in the guidelines, and for variations and a range of
1517 penalties permitted under such circumstances.
1518 Section 610. Paragraph (b) of subsection (4) and
1519 paragraphs (a) and (c) of subsection (6) of section 633.408,
1520 Florida Statutes, are amended to read:
1521 633.408 Firefighter and volunteer firefighter training and
1522 certification.—
1523 (4) The division shall issue a Firefighter Certificate of
1524 Compliance to an individual who does all of the following:
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Amendment No. 1
1525 (b) Passes the Minimum Standards Course certification
1526 examination within 12 months after completing the required
1527 courses.
1528 (6)(a) The division may issue a Special Certificate of
1529 Compliance to an individual who does all of the following:
1530 1. Satisfactorily completes the course established by rule
1531 by the division and successfully passes any examination
1532 corresponding to such course in paragraph (1)(b) to obtain a
1533 Special Certificate of Compliance.
1534 2. Passes the examination established in paragraph (1)(b)
1535 to obtain a Special Certificate of Compliance.
1536 2.3. Possesses the qualifications in s. 633.412.
1537 (c) In order to retain a Special Certificate of
1538 Compliance, every 4 years an individual must:
1539 1. Be active as a firefighter;
1540 2. Maintain a current and valid fire service instructor
1541 certificate, instruct at least 40 hours during the 4-year
1542 period, and provide proof of such instruction to the division,
1543 which proof must be registered in an electronic database
1544 designated by the division; or
1545 3. Within 6 months before the 4-year period expires,
1546 successfully complete a Firefighter Retention Refresher Course
1547 consisting of a minimum of 40 hours of training as prescribed by
1548 rule.
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Amendment No. 1
1549 Section 621. Subsections (5), (6), and (7) of section
1550 633.414, Florida Statutes, are renumbered as subsections (4),
1551 (5), and (6) respectively, and subsection (1) and present
1552 subsection (4) of that section are amended, to read:
1553 633.414 Retention of firefighter and volunteer firefighter
1554 certifications.—
1555 (1) In order for a firefighter to retain her or his
1556 Firefighter Certificate of Compliance or Special Certificate of
1557 Compliance, every 4 years he or she must meet the requirements
1558 for renewal provided in this chapter and by rule, which must
1559 include at least one of the following:
1560 (a) Be active as a firefighter. As used in this section,
1561 the term "active" means being employed as a firefighter or
1562 providing service as a volunteer firefighter as evidenced by the
1563 individual's name appearing on a fire service provider's
1564 employment roster in the Florida State Fire College database or
1565 a letter by the fire service provider attesting to dates of
1566 employment.
1567 (b) Maintain a current and valid fire service instructor
1568 certificate, instruct at least 40 hours during the 4-year
1569 period, and provide proof of such instruction to the division,
1570 which proof must be registered in an electronic database
1571 designated by the division.
1572 (c) Before the expiration of the certificate Within 6
1573 months before the 4-year period expires, successfully complete a
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Amendment No. 1
1574 Firefighter Retention Refresher Course consisting of a minimum
1575 of 40 hours of training to be prescribed by rule.
1576 (d) Before the expiration of the certificate Within 6
1577 months before the 4-year period expires, successfully retake and
1578 pass the Minimum Standards Course examination pursuant to s.
1579 633.408.
1580 (4) For the purposes of this section, the term "active"
1581 means being employed as a firefighter or providing service as a
1582 volunteer firefighter for a cumulative period of 6 months within
1583 a 4-year period.
1584
1585 The 4-year period may, in the discretion of the department, be
1586 extended to 12 months after discharge from military service if
1587 the military service does not exceed 3 years, but in no event
1588 more than 6 years from the date of issue or renewal, if
1589 applicable, for an honorably discharged veteran of the United
1590 States Armed Forces or the spouse of such a veteran. A qualified
1591 individual must provide a copy of a military identification
1592 card, military dependent identification card, military service
1593 record, military personnel file, veteran record, discharge
1594 paper, or separation document that indicates such member is
1595 currently in good standing or such veteran is honorably
1596 discharged.
1597 Section 632. Subsection (4) of section 648.34, Florida
1598 Statutes, is amended to read:
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Amendment No. 1
1599 648.34 Bail bond agents; qualifications.—
1600 (4) The applicant shall furnish, with his or her
1601 application, a complete set of his or her fingerprints in
1602 accordance with s. 626.171(4) and a recent credential-sized,
1603 fullface photograph of the applicant. The applicant's
1604 fingerprints shall be certified by an authorized law enforcement
1605 officer. The department shall not authorize an applicant to take
1606 the required examination until the department has received a
1607 report from the Department of Law Enforcement and the Federal
1608 Bureau of Investigation relative to the existence or
1609 nonexistence of a criminal history report based on the
1610 applicant's fingerprints.
1611 Section 643. Subsection (4) of section 648.355, Florida
1612 Statutes, is amended to read:
1613 648.355 Temporary limited license as limited surety agent
1614 or professional bail bond agent; pending examination. —
1615 (4) The applicant shall furnish, with the application for
1616 temporary license, a complete set of the applicant's
1617 fingerprints in accordance with s. 626.171(4) and a recent
1618 credential-sized, fullface photograph of the applicant. The
1619 applicant's fingerprints shall be certified by an authorized law
1620 enforcement officer. The department shall not issue a temporary
1621 license under this section until the department has received a
1622 report from the Department of Law Enforcement and the Federal
1623 Bureau of Investigation relative to the existence or
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Amendment No. 1
1624 nonexistence of a criminal history report based on the
1625 applicant's fingerprints.
1626 Section 654. Subsection (4) is added to section 648.46,
1627 Florida Statutes, to read:
1628 648.46 Procedure for disciplinary action against
1629 licensees.—
1630 (4) The expiration, nonrenewal, or surrender of licensure
1631 under this chapter does not eliminate the jurisdiction of the
1632 department or office to investigate and prosecute for a
1633 violation committed by a licensee while licensed under this
1634 chapter. The prosecution of any matter may be initiated or
1635 continued notwithstanding the withdrawal of a complaint.
1636
1637
1638 -----------------------------------------------------
1639 T I T L E A M E N D M E N T
1640 Remove lines 73-193 and insert:
1641 assessments; amending s. 440.13, F.S.; authorizing the
1642 department to adopt rules; amending s. 440.185, F.S.; revising
1643 the timeline and methods for workers' compensation carriers to
1644 send certain informational brochure to injured workers; revising
1645 methods by which such informational brochure is sent to
1646 employers; amending s. 440.381, F.S.; specifying workers'
1647 compensation policies that require physical onsite audits for a
1648 specified class; amending s. 497.277, F.S.; deleting a cap on
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Bill No. CS/CS/HB 959 (2022)
Amendment No. 1
1649 transferring burial rights fees; amending s. 497.369, F.S.;
1650 revising requirements for licenses by endorsement to practice
1651 embalming; amending s. 497.372, F.S.; revising the scope of
1652 funeral directing practice; amending s. 497.374, F.S.; revising
1653 requirements for licenses by endorsement to practice funeral
1654 directing; amending s. 554.108, F.S.; requiring boilers
1655 manufactured after a specified date, rather than boilers of
1656 certain heat input, to be stamped with a specified code symbol;
1657 revising the boilers' information that must be filed; requiring
1658 that specified spaces and rooms be equipped with carbon monoxide
1659 detector devices; amending s. 554.111, F.S.; deleting a
1660 requirement for a specified fee for a certificate of competency;
1661 requiring applications for boiler permits to include a specified
1662 report; revising the purpose for special trips that the
1663 department is required to make for boiler inspections; ame nding
1664 s. 554.114, F.S.; revising the schedules of penalties against
1665 boiler insurance companies, inspection agencies, and other
1666 persons for specified violations; amending s. 624.307, F.S.;
1667 providing that certain regulated persons or unauthorized
1668 insurers are required to appoint the Chief Financial Officer as
1669 their agents, rather than as their attorneys, to receive service
1670 of legal process; revising the method by which the Chief
1671 Financial Officer makes the process available; amending s.
1672 624.422, F.S.; requiring insurers to file with the department
1673 email-addresses, rather than addresses, of specified persons;
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Amendment No. 1
1674 providing that a specified method by which process is served
1675 upon the Chief Financial Officer is the sole method of service;
1676 conforming provisions to changes made by the act; amending s.
1677 624.423, F.S.; revising procedures for service of process;
1678 requiring the Chief Financial Officer to promptly notify certain
1679 persons of the process and to make the process available to such
1680 persons through specified means; revising the method by which
1681 records are retained; amending s. 624.610, F.S.; conforming
1682 provisions to changes made by the act; amending s. 626.015,
1683 F.S.; revising the definition of the term "unaffiliated
1684 insurance agent"; amending s. 626.171, F.S.; requiring
1685 fingerprints for certain licenses to be processed in accordance
1686 with specified laws; amending s. 626.172, F.S.; revising the
1687 method by which fingerprints for applications for insurance
1688 agency licenses are submitted; deleting a fingerprint processing
1689 fee; creating s. 626.173, F.S.; providing duties for certain
1690 insurance agency persons within a specified timeframe after
1691 cessation of insurance transactions; authorizing the department
1692 or the Office of Insurance Regulation to impose administrative
1693 fines against such persons for specified violations; prohibiting
1694 proceedings from being initiated and fines from accruing unless
1695 specified requirements are met; providing a cap on such fines;
1696 authorizing the department or the office to suspend or revoke
1697 licenses under certain circumstances; providing requirements for
1698 determining penalties and remedies; amending s. 626.201, F.S.;
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Amendment No. 1
1699 conforming a provision to changes made by the act; providing
1700 continuation of jurisdiction of the licensing authority to
1701 investigate and prosecute specified violations under certain
1702 circumstances; amending s. 626.202, F.S.; conforming provisions
1703 to changes made by the act; amending s. 626.221, F.S.; adding a
1704 designation to the list of designations that allow applicants
1705 for all-lines adjuster license to be exempt from an examination;
1706 amending s. 626.311, F.S.; providing an exception to the
1707 prohibition against unaffiliated insurance agents' holding
1708 appointments from insurers; amending ss. 626.321, 626.601,
1709 626.8411, and 626.8412, F.S.; conforming provisions to changes
1710 made by the act; amending s. 626.8417, F.S.; revising
1711 requirements to qualify for title insurance agent licenses;
1712 amending s. 626.8421, F.S.; requiring title agencies to have
1713 separate appointments under certain circumstances; amending s.
1714 626.843, F.S.; providing appointments of title insurance
1715 agencies; amending s. 626.8433, F.S.; requiring title insurers
1716 that terminate appointments of title insurance agencies to file
1717 certain information with the department; amending s. 626.8447,
1718 F.S.; providing effects of suspension or revocation of title
1719 insurance agency licenses; amending s. 626.854, F.S.; revising
1720 restrictions on public adjuster compensations; prohibiting
1721 public adjuster compensations from being based on specified
1722 expenses; providing an exception; prohibiting increases of
1723 public adjuster rates of compensation from being based on a
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Bill No. CS/CS/HB 959 (2022)
Amendment No. 1
1724 specified fact; amending s. 626.8561, F.S.; revising the
1725 definition of the term "public adjuster apprentice"; amending s.
1726 626.865, F.S.; revising requirements to qualify for public
1727 adjuster licenses; requiring that certain bonds remain in effect
1728 for a specified period after expiration of the license; amending
1729 s. 626.8651, F.S.; requiring that certain bonds remain in effect
1730 for a specified period after expiration of the public adjuster
1731 apprentice license; revising requirements for public adjuster
1732 apprentices to be, act as, or hold themselves out to be public
1733 adjust apprentices; amending s. 626.8696, F.S.; revising
1734 requirements for adjusting firm license applications; amending
1735 s. 626.8732, F.S.; requiring applicants for nonresident public
1736 adjuster licenses to maintain certain bonds after the expiration
1737 or termination of licenses; amending ss. 626.8734, 626.906,
1738 626.912, 626.937, and 626.9953, F.S.; conforming provisions to
1739 changes made by the act; amending s. 633.135, F.S.; providing
1740 additional uses for firefighter funds; amending s. 633.216,
1741 F.S.; revising requirements for renewal of firesafety inspector
1742 certificates; amending s. 633.336, F.S.; providing
1743 administrative fines for violations by certified fire protection
1744 contractors; amending s. 633.408, F.S.;
1745
930177 - CSCSHB0959line756.docx
Published On: 2/16/2022 7:13:36 PM
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CS/HB 1005
HOUSE OF REPRESENTATIVES STAFF ANALYSIS
BILL #: CS/HB 1005 Advanced Air Mobility
SPONSOR(S): Tourism, Infrastructure & Energy Subcommittee, Fischer
TIED BILLS: IDEN./SIM. BILLS: CS/SB 728
REFERENCE ACTION ANALYST STAFF DIRECTOR or
BUDGET/POLICY CHIEF
1) Tourism, Infrastructure & Energy Subcommittee 15 Y, 0 N, As CS Neuffer Keating
2) Infrastructure & Tourism Appropriations 12 Y, 0 N Hicks Davis
Subcommittee
3) Commerce Committee Neuffer Hamon
SUMMARY ANALYSIS
The bill creates the Advanced Air Mobility Study Task Force (task force), adjunct to the Florida Department of
Transportation (FDOT), to study the current state of development of the advanced air mobility industry and
related laws, rules, regulations, and other requirements. The bill specifies the composition of the task force to
include the FDOT secretary, or the secretary’s designee, as the chair. The bill sets forth additional members to
be on the task force, either by designation within the bill or by appointment of the Governor. Appointed
members serve at the pleasure of the respective appointing authority. Members are entitled to reimbursement
from the State Transportation Trust Fund for reasonable and necessary travel and per diem expenses incurred
in the performance of their duties.
The FDOT must provide administrative support and facilities for the task force to perform its duties. The task
force is directed to hold public hearings and receive public comment in locations throughout the state, or by
electronic means, such as teleconference, and provide means for active participation. The committee must
meet at the times and locations as the chair determines. Specifically, the task force must focus on:
Assessment of the current state of development of the advanced air mobility industry, including the
deployment of electric vertical take off and landing (eVTOL) aircraft, defined within the bill as a type
of aircraft that uses electric power to hover, take off, and land vertically without a runway.
Identification of federal, state, and local laws, rules, regulations, and other requirements that may
impact the development of the advanced air mobility industry in the state, including the potential
deployment of eVTOL aircraft and infrastructure.
Recommendations for revisions to current state laws and regulations necessary to facilitate the
continued development of the advanced air mobility industry and deployment of eVTOL aircraft and
infrastructure in the state.
The potential integration of advanced air mobility into local government transportation plans.
By October 1, 2023, the task force must submit its report of the findings and recommendations to the
Governor, President of the Senate, and Speaker of the House of Representatives. Any additional material
which the task force deems appropriate may also be included in the report. Upon submission of the report, the
task force is abolished. The bill provides for its expiration on December 31, 2023.
The bill does not appear to have a fiscal impact on state or local government revenues or local government
expenditures. The bill will have a negative, but likely insignificant, fiscal impact on the State Transportation
Trust Fund. These costs can be absorbed within existing resources.
The bill has an effective date of July 1, 2022.
This docum ent does not reflect the intent or official position of the bill sponsor or House of Representatives .
STORAGE NAME: h1005d.COM
DATE: 2/15/2022
FULL ANALYSIS
I. SUBSTANTIVE ANALYSIS
A. EFFECT OF PROPOSED CHANGES:
Present Situation
Electric vertical take off and landing (eVTOL) aircraft are a type of aircraft that use electric power to
hover, take off, and land vertically without a runway. Their ability to maneuver in smaller spaces offers
new opportunities for mobility. Additionally, eVTOL aircraft offer a reduced environmental impact and
noise pollution when compared to other vertical take off and landing (VTOL) aircraft. EVTOL aircraft are
large enough to carry passengers without conventional helicopter flight controls. 1 The aircraft uses
electric propulsion to lift and move itself through the air. The current direction of the industry suggests
the intended use of eVTOL aircraft for urban air mobility, drone delivery, and various industrial
applications.2
At present, eVTOL aircraft remain in the developmental stage. The Federal Aviation Administration
(FAA) has approved certain types of VTOL aircraft, such as helicopters, for commercial use. To date,
no eVTOL aircraft have received final FAA approval. Agreements have been made between private
entities and the FAA for G1 certification, which is the first step toward final approval.3 It is unclear when
the first eVTOL will receive final FAA certification, with Joby Aviation claiming it still has “several years
of aircraft testing ahead of [it].”4
One company, Lilium, has announced plans to build an eVTOL port in Lake Nona, Florida, with an
estimated completion date of 2025.5 The City of Orlando has declared this site as the country’s first
urban and regional air mobility network.6 Lilium’s goal is to connect more than 20 million Floridians
within a 186-mile radius, serving several major cities, and create more than 100 jobs in the Orlando
area with hundreds more following across the state. The company created a “vertiport” architec ture for
its newly proclaimed hub which it claims will offer functional and aesthetically unique characteristics
that can easily be incorporated into existing transportation structures in both urban and suburban
developments.7
Effect of the Bill
The bill creates the Advanced Air Mobility Study Task Force (task force), adjunct to the Florida
Department of Transportation (FDOT), to study the advanced air mobility industry’s current state of
development and related laws and regulations. Task force members are not provided compensation for
their service, but are entitled to receive reimbursement for reasonable and necessary per diem and
travel expenses pursuant to section 112.061, F.S.,8 payable from the State Transportation Trust Fund.
The FDOT is charged with providing administrative support and facilities for the task force to perform its
duties.
The task force is composed of the following members:
The secretary of FDOT or the secretary’s designee, serving as chair of the task force.
1 See Vertical Flight Society, https://evtol.news/ (last visited January
21, 2022).
2 See NASA, Fixed Wing Angle eVTOL, https://technology.nasa.gov/patent/LAR-TOPS-338 (last visited January 21,
2022).
3 See Archer Aviation, FAA Approves G-1 Certification Basis for Archer, Propelling it Forward on its Path to FAA Type
Certification, GlobeNewswire (September 7, 2021), https://www.globenewswire.com/ (last visited January 20, 2022).
4 See Grace Nehls, Joby Aviation accelerates eVTOL aircraft certification, CompositesWorld (February 9, 2021),
https://www.compositesworld.com/news/joby-aviation-accelerates-evtol-aircraft-certification (last visited January 21,
2022).
5 See Lilium, Lilium partners with Tavistock development and City of Orlando to establish first region in the US,
https://lilium.com/newsroom-detail/lilium-partners-wit h-tavistock-and-orlando (last visited January 21, 2022).
6 Id.
7 Id.
8 See s. 112.061, F.S. (governing per diem and travel expenses of public officers, employees, and authorized persons).
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One member of the Senate, appointed by the Senate President.
One member of the House of Representatives, appointed by the House Speaker.
The executive director of the Florida League of Cities or the director’s designee.
The executive director of the Florida Association of Counties or the director’s designee.
The president of Space Florida or the president’s designee.
Fourteen members appointed by the Governor, including:
o Two members, each representing a different city having a population of more than
250,000 persons.
o One member representing a city having a population of fewer than 250,000 persons.
o One member representing a metropolitan planning organization.
o One member representing the State University System.
o Three members representing the advanced air mobility industry.
o Two members representing the business community.
o One member representing an organization in the state which advocates for persons with
disabilities.
o One member representing an organization in the state which advocates for underserved
transportation areas.
o One member representing a public airport located in a county having a population of
more than 1 million persons.
o One member representing a public airport located in a county having a population of
fewer than 1 million persons.
All appointed members serve at the pleasure of the appointing authority.
The task force is directed to hold public hearings and receive public comment in locations throughout
the state, or by electronic means, such as teleconference, and provide means for active participation.
The committee must meet at the times and locations as the chair determines. Specifically, the task
force must focus on:
Assessment of the current state of development of the advanced air mobility industry, including
the deployment of eVTOL aircraft, defined within the bill as a type of aircraft that uses electric
power to hover, take off, and land vertically without a runway.
Identification of federal, state, and local laws, rules, regulations, and other requirements that
may impact the development of the advanced air mobility industry in the state, including the
potential deployment of eVTOL aircraft and infrastructure.
Recommendations for revisions to current state laws and regulations necessary to facilitate the
continued development of the advanced air mobility industry and deployment of eVTOL aircraft
and infrastructure in the state.
The potential integration of advanced air mobility into local government transportation plans.
After completion of its review, but before October 1, 2023, the task force must submit a report of its
findings and recommendations to the Governor, President of the Senate, and Speaker of the House of
Representatives. Any additional material which the task force deems appropriate may also be included
in the report. Upon submission of the report, the task force is abolished. The bill provides for its
expiration on December 31, 2023.
The bill provides an effective date of July 1, 2022.
B. SECTION DIRECTORY:
Section 1: Creates the Advanced Air Mobility Study Task Force; providers for membership and
duties.
Section 2: Provides an effective date.
II. FISCAL ANALYSIS & ECONOMIC IMPACT STATEMENT
A. FISCAL IMPACT ON STATE GOVERNMENT:
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1. Revenues:
None.
2. Expenditures:
The FDOT will incur minor costs to provide staff, assistance, and facilities as deemed necessary for
the task force to perform its duties. In addition, the bill authorizes FDOT to reimburse task force
members for per diem and travel expenses incurred at the discretion of the chair. The task force
has the option to hold public meetings by electronic means and receive public comments through a
website or by mail in lieu of travel. Therefore, travel costs are indeterminate, but likely insignificant.
The bill authorizes expenditures related to the task force to be paid from the State Transportation
Trust Fund. The FDOT has indicated that these costs can be absorbed within existing resources.
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 require counties or municipalities to spend funds or take
action requiring the expenditures of funds; reduce the authority that counties or municipalities have
to raise revenues in the aggregate; or reduce the percentage of state tax shared with counties or
municipalities.
2. Other:
None.
B. RULE-MAKING AUTHORITY:
The bill does not require or authorize rulemaking.
C. DRAFTING ISSUES OR OTHER COMMENTS:
None.
IV. AMENDMENTS/COMMITTEE SUBSTITUTE CHANGES
On January 25, 2022, the Tourism, Infrastructure & Energy Subcommittee adopted one amendment and
reported the bill favorably as a committee substitute. The amendment:
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Clarifies that task force members will be reimbursed from the State Transportation Trust Fund for
reasonable and necessary travel and per diem expenses incurred in serving.
Specifies that the Department of Transportation shall provide staff, assistance, and facilities as are
deemed necessary for the task force.
Clarifies that the chair of the task force will determine the time and location of meetings.
Specifies that eVTOL aircraft are the focus of the task force and defines eVTOL.
Clarifies the matters to be addressed by the task force.
This analysis is drafted to the committee substitute as approved by the Tourism, Infrastructure & Energy
Subcommittee.
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F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
CS/HB 1005 2022
1 A bill to be entitled
2 An act relating to advanced air mobility; creating the
3 Advanced Air Mobility Study Task Force adjunct to the
4 Department of Transportation; specifying the
5 composition of the task force; providing that task
6 force members serve at the pleasure of their
7 appointing authority; providing that task force
8 members shall serve without compensation but are
9 entitled to certain reimbursement; providing for task
10 force funding; specifying duties of the task force;
11 defining the term "eVTOL aircraft"; requiring the task
12 force to submit a certain report to the Governor and
13 the Legislature by a specified date; providing for
14 abolishment of the task force; providing for
15 expiration; providing an effective date.
16
17 Be It Enacted by the Legislature of the State of Florida:
18
19 Section 1. Advanced Air Mobility Study Task Force.—
20 (1) The Advanced Air Mobility Study Task Force, a task
21 force as defined in s. 20.03(8), Florida Statutes, is created
22 adjunct to the Department of Transportation. The task force is
23 composed of the following members:
24 (a) The secretary of the Department of Transportation or
25 the secretary's designee, who shall serve as chair of the task
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26 force.
27 (b) One member of the Senate appointed by the President of
28 the Senate.
29 (c) One member of the House of Representatives appointed
30 by the Speaker of the House of Representatives.
31 (d) The executive director of the Florida League of Cities
32 or the director's designee.
33 (e) The executive director of the Florida Association of
34 Counties or the director's designee.
35 (f) The president of Space Florida or the president's
36 designee.
37 (g) Appointed by the Governor:
38 1. Two members, each representing a different city having
39 a population of more than 250,000 persons.
40 2. One member representing a city having a population of
41 fewer than 250,000 persons.
42 3. One member representing a metropolitan planning
43 organization.
44 4. One member representing the State University System.
45 5. Three members representing the advanced air mobility
46 industry.
47 6. One member representing an organization in this state
48 which advocates for persons with disabilities.
49 7. Two members representing the business community.
50 8. One member representing an organization in this state
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CS/HB 1005 2022
51 which advocates for underserved transportation areas.
52 9. One member representing a public airport located in a
53 county having a population of more than 1 million persons.
54 10. One member representing a public airport located in a
55 county having a population of fewer than 1 million persons.
56 (2) Appointed members shall serve at the pleasure of the
57 appointing authority.
58 (3) Task force members shall serve without compensation
59 but are entitled to reimbursement for reasonable an d necessary
60 per diem and travel expenses incurred in the performance of
61 their duties as provided in s. 112.061, Florida Statutes.
62 (4) The Department of Transportation shall provide staff,
63 assistance, and facilities as are deemed necessary for the task
64 force to perform its duties. Funding for the task force shall be
65 paid from the State Transportation Trust Fund.
66 (5) The task force shall meet at the time and location as
67 the chair determines. The task force shall hold public hearings
68 and receive public comment in locations throughout this state,
69 or by electronic means, such as teleconference, provided that a
70 means for active participation is accommodated.
71 (6) The task force shall:
72 (a) Assess and describe the current state of development
73 of the advanced air mobility industry, specifically the
74 deployment of eVTOL aircraft. As used in this section, the term
75 "eVTOL aircraft" means a type of aircraft that uses electric
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CS/HB 1005 2022
76 power to hover, take off, and land vertically without a runway.
77 (b) Identify federal, state, and local laws, rules,
78 regulations, and other requirements that may impact the
79 development of the advanced air mobility industry in this state,
80 including the potential deployment of eVTOL aircraft and
81 infrastructure.
82 (c) Recommend any changes to state laws and regulations
83 necessary to facilitate the continued development of the
84 advanced air mobility industry and deployment of eVTOL aircraft
85 and infrastructure in this state.
86 (d) Evaluate the potential integration of advanced air
87 mobility into local government transportation plans.
88 (7) By October 1, 2023, the task force shall submit to the
89 Governor, the President of the Senate, and the Speaker of the
90 House of Representatives a report including the information,
91 findings, and recommendations required pursuant to subsection
92 (6) and any other relevant material deemed appropriate by the
93 task force. Upon submission of the report, the task force is
94 abolished.
95 (8) This section expires December 31, 2023.
96 Section 2. This act shall take effect July 1, 2022.
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hb1005-01-c1
HB 1023
HOUSE OF REPRESENTATIVES STAFF ANALYSIS
BILL #: HB 1023 Insolvent Insurers
SPONSOR(S): Fabricio
TIED BILLS: IDEN./SIM. BILLS: CS/SB 1430
REFERENCE ACTION ANALYST STAFF DIRECTOR or
BUDGET/POLICY
CHIEF
1) Insurance & Banking Subcommittee 16 Y, 0 N Herendeen Luczynski
2) State Administration & Technology 13 Y, 0 N Lee Topp
Appropriations Subcommittee
3) Commerce Committee Herendeen Hamon
SUMMARY ANALYSIS
As a condition of selling and servicing insurance in Florida, insurers must be members of a guaranty
association associated with the lines of coverage the insurer sells.
If an admitted insurer becomes unsound or insolvent, the Office of Insurance Regulation (OIR) may place the
insurer in confidential administrative supervision, and, if rehabilitation is impossible, recommend liquidation by
the Department of Financial Services, Division of Rehabilitation and Liquidation (DFS).
Existing insurance policies are cancelled 30 days after a judge issues an order of liquidation and the applicable
guaranty fund becomes responsible for managing any outstanding claims.
The bill makes minor changes to procedures of the Florida Insurance Guaranty Association (FIGA) and Florida
Workers’ Compensation Insurance Guaranty Association (FWCIGA), and requires that claims data from
insolvent insurers be used in the ratemaking process for workers’ compensation insurance.
If the assets of an insolvent estate are not enough to pay covered claims, the applicable guaranty fund may
ask OIR to levy assessments against fund members. The bill makes technical changes to the laws governing
assessments that would allow certain property and casualty insurers to: 1) pay assessments in quarterly
installments rather than one full payment on a date selected by OIR; and 2) decline to recoup the cost of
assessments if the cost of placing a surcharge on policies exceeds the cost of the assessment.
OIR adopts rates for workers’ compensation insurance annually, based on recommendations from the National
Council on Compensation Insurance (NCCI), which evaluates risks associated with more than 500
occupational classes by tracking covered claims of insurers.
Insurers that are in an unsound financial condition or become insolvent do not always report claims to NCCI.
When all claims are not reported, the adequacy of workers’ compensation insurance rates can be affected and
the experience rating modification factor of an individual insured may be inaccurate. When an insurer is
ordered into liquidation, the responsibility for claims data reporting falls to DFS, as court appointed receiver,
and FWCIGA, as administrator of any open claims.
The bill adds the impact of missing claims data from insolvent insurers to a list of factors that are used in the
determination of workers’ compensation rates.
The bill has no fiscal impact on state or local government and a minimal impact on the private sector. The bill
provides an effective date of July 1, 2022.
FULL ANALYSIS
This docum ent does not reflect the intent or official position of the bill sponsor or House of Representatives .
STORAGE NAME: h1023d.COM
DATE: 2/15/2022
I. SUBSTANTIVE ANALYSIS
A. EFFECT OF PROPOSED CHANGES:
Current Situation
Insolvent Insurers
The Office of Insurance Regulation (OIR) monitors the financial strength of insurers authorized to do
business in Florida by reviewing annual and quarterly financial statements submitted to the National
Association of Insurance Commissioners. Florida law establishes required minimum surplus 1 and risk-
based capital requirements 2 for different types of insurers, identifies the types of investments that may be
designated as an admitted asset on the insurer’s financial statements, 3 and places restrictions on the
investments an insurer makes in its subsidiaries or affiliated companies. 4
Insurers Must Belong to a Guaranty Fund
As a condition of selling and servicing insurance in Florida, insurers must be members of the guaranty
association associated with the lines of coverage the insurer sells. The Insurance Code authorizes the:
Florida Insurance Guaranty Association (FIGA), for property and casualty insurances, including
homeowners and automobile insurance;5
Florida Life & Health Guaranty Association (FLAHIGA), for life and health insurance policies,
annuity contracts, and related supplemental insurance contracts; 6 and
Florida Workers’ Compensation Insurance Guaranty Association (FWCIGA), for workers’
compensation and employer liability coverages.7
Similar protections are available to persons who subscribe to Health Maintenance Organizations through
the Health Maintenance Organization Consumer Assistance Plan. 8
Insolvency
If an insurer becomes insolvent,9 OIR may place the insurer in confidential administrative supervision. If the
insurer cannot be rehabilitated, OIR may refer the matter to the Department of Financial Services, Division
of Liquidation and Rehabilitation (DFS), for appointment of a receiver to liquidate the insurance company. 10
When a circuit court judge issues an order of liquidation, the order appoints DFS as receiver for the insolvent
insurer’s estate and requires that the appropriate guaranty fund administer all outstanding claims. 11
Existing policies are cancelled 30 days after the order of liquidation, unless: the policy expires prior to the
30-day deadline; 2) the insured or the receiver finds a replacement policy with another insurer, or 3) the
policyholder terminates the policy.12
1 Ss. 624.407 and 627.408, F.S.
2 S. 624.4085, F.S.
3 Ch. 625, part II, F.S.
4 Ss. 625.325 and 625.332, F.S.
5 Ss. 631.50-631.70, F.S.
6 Ss. 631.711-631.738, F.S.
7 Ss. 631.901-631.932, F.S.
8 Ss. 631.811-631.828, F.S.
9 S. 631.011(14), F.S. states: “Insolvency” means that all the assets of the insurer, if made immediately available, would
not be sufficient to discharge all its liabilities or that the insurer is unable to pay its debts as they become due in the usual
course of business. When the context of any provision of this code so indicates, insolvency also includes and is defined
as “impairment of surplus,” as defined in subsection (13), and “impairment of capit al,” as defined in subsection (12).
10 Ss. 624.81 and 631.051, F.S.
11 S. 631.395, F.S.
12 S. 631.252(1), F.S.
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The applicable guaranty fund becomes responsible for managing any outstanding claims that were pending
upon appointment of the receiver or filed during the 30-day cancellation period.
Assessments
When the assets of an insolvent estate are not enough to pay covered claims, the guaranty fund may ask
OIR to levy assessments against fund members.13
Insurers that belong to FIGA may recoup the cost of assessments by applying a uniform surcharge to all
policies of the kind identified in OIR’s assessment order. 14
Insurers that belong to FLAHIGA may receive a refund of contributions that exceed the amount needed to
carry out the obligations of FLAHIGA, and may offset the cost of assessments against either the insurer’s
liability for premium taxes or corporate income taxes. 15
Insurers that belong to FWCIGA pay assessments by collecting surcharges placed on policies and
remitting the surcharge to FWCIGA.16
Workers’ Compensation Rates
All carriers selling workers’ compensation insurance in Florida subscribe to the National Council on
Compensation Insurance (NCCI), an industry group that develops policy forms, premium rates, and rules
for its members in 37 states.17
NCCI develops rates annually, based on the risks associated with more than 500 occupational classes.
OIR reviews and approves proposed rates in accordance with the standards established by Florida law. 18
The following factors are used in the determination of workers’ compensation insurance rates:
The past loss experience and prospective loss experience within and outside this state;
The conflagration and catastrophe hazards;
A reasonable margin for underwriting profit and contingencies;
Dividends, savings, or unabsorbed premium deposits allowed or returned by insurers to their
policyholders, members, or subscribers;
Investment income on unearned premium reserves and loss reserves;
Past expenses and prospective expenses, both those countrywide and those specific ally applicable to
this state; and
All other relevant factors, including judgment factors, within and outside this state. 19
To calculate premium, the insurer applies rates approved for specific jobs, called class codes, to every
$100 of an employer’s payroll. This results in a manual rate that is adjusted by an experience rating factor
calculated by NCCI, based on the employer’s loss experience in the prior 3 years. An employer with better
than average loss experience may receive a credit; an employer with above average losses will pay more
than the manual rate.20
Insurers report claims to NCCI, so NCCI can track loss experience across industries, identify trends
associated with different types of risks, and adjust rates associated with specific class codes accordingly.21
13 Ss. 631.57, 631.718, and 631.914, F.S.
14 S. 631.57(3), F.S.
15 Ss. 631.718(5) and 631.72(1), F.S.
16 S. 631.914(1), F.S.
17 S. 627.091(3), F.S.
18 Ss. 627.062 and 627.072, F.S.
19 S. 627.072, F.S.
20 National Council on Compensation Insurance, ABCs of Experience Rating,
https://www.ncci.com/Articles/Documents/UW_ABC_Exp_Rating.pdf (last visited Feb. 14, 2022).
21 Id.
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Workers’ Compensation Claims Reporting by Insolvent Insurers
Insurers that are in an unsound financial condition or become insolvent do not always report claims to
NCCI. When all claims are not reported, the adequacy of workers’ compensation insurance rates can be
affected and the experience rating modification factor of an individual insured may be inaccurate. When an
insurer is ordered into liquidation, the responsibility for claims data reporting falls to DFS, as court
appointed receiver, and FWCIGA, as administrator of any open claims.
The impact on missing claims data from insolvent insurers is discussed in an actuarial analysis conducted
for FWCIGA, which focused on the 2017 insolvency of Guarantee Insurance Company. 22 The study
concluded that the insolvency of Guarantee Insurance Company (GIC) – which had 8,600 active policies,
10,500 clams and $487 million in claim liabilities when it was placed into liquidation – did not create
significant market disruption because policyholders were able to obtain coverage in the voluntary market. 23
However, if accurate claims data had been reported to NCCI, workers’ compensation rate decreases
approved in 2016 and 2018 could have been slightly smaller. 24 The claim’s experience GIC reported to
NCCI was slightly worse than average; during liquidation, it was determined that GIC’s actual experience
was understated by nearly $100 million.25
The actuarial analysis warned that missing claims data could impact the overall statewide rate for workers’
compensation insurance if Florida were to experience multiple insolvencies at the same time. Similarly,
missing claims data for one insolvent insurer with a book of business concentrated in a single industry
group or class code could have a material impact the affected industry group or class code. 26
The actuary recommended that the claims data of insolvent insurers be collected and reported to NCCI – to
the extent that such data can be reported consistently and at a reasonable cost – for inclusion in
ratemaking and experience rating.27
NCCI reviews the characteristics of an insolvent carrier (prior premium market share, distribution of
premium writings across individual job classifications, and whether prior employers will be able to obtain
coverage in the voluntary market) to assess the impact the insolvency may have on future worker’s
compensation rates.28 Claims data reported during receivership is subject to data validation checks prior to
being used in ratemaking.29
Effect of the Bill
For FIGA, the bill amends s. 631.57, F.S., to state that property and casualty insurers are not required to
recoup the cost of assessments levied by OIR on behalf of FIGA. Additionally, if the FIGA board of
directors certifies the need for an assessment, the board may ask OIR to permit payments on a quarterly
basis throughout the assessment year, instead of full payment on a date selected by OIR at the
commencement of the assessment year.
For FWCIGA, the bill amends s. 631.914, F.S., to permit payment of assessments in a single payment or
on a quarterly basis, at the discretion of the FWCIGA board based on cash flow needs. Currently, workers’
compensation insurance carriers may pay assessments on a quarterly basis only if the FWCIGA board
22 Perr & Knight, Insolvency Materiality
Analysis for the Florida Work ers’ Compensation Insurance Guaranty Association ,
May 29, 2019.
23 Id. at 4.
24 Memo to the Board of Directors of the Florida Workers’ Compensation Insurance Guaranty Association, Inc., by Tom
Streukens, Sept. 19, 2019.
25 Id.
26 Id. at 17.
27 Id. at 19-20.
28 Email from George Fejoo, Governmental Affairs Consultant with Floridian Partners, RE: FWCIGA Post-Liquidation Data
Reporting (Jan. 19, 2022).
29 Id.
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DATE: 2/15/2022
determines that full payment of the assessment would result in an impairment of an insurer’s required
minimum amount of capital and surplus.
For workers’ compensation rates, the bill amends s. 627.072, F.S., to add the impact of missing data from
insolvent insurers to the list of factors that are used in the determination of workers’ compensation
insurance rates. Due to the difficulty of obtaining and validating claims data of an insolvent insurer, the bill
permits the use of “prior reported data” and “all other relevant information” during the ratemaking process.
B. SECTION DIRECTORY:
Section 1. Amends s. 627.072, F.S., making and use of rates.
Section 2. Amends s. 631.57, F.S., powers and duties of the association.
Section 3. Amends s. 631.914, F.S., assessments.
Section 4. Provides an effective date of July 1, 2022.
II. FISCAL ANALYSIS & ECONOMIC IMPACT STATEMENT
A. FISCAL IMPACT ON STATE GOVERNMENT:
1. Revenues:
None.
2. Expenditures:
None.
B. FISCAL IMPACT ON LOCAL GOVERNMENTS:
1. Revenues:
None.
2. Expenditures:
None.
C. DIRECT ECONOMIC IMPACT ON PRIVATE SECTOR:
The bill provides flexibility to insurance carriers by providing the option of paying assessments on an
annual or quarterly basis. Insurance carriers would not be required to recoup the cost of an assessment
if the administrative cost of recoupment outweighs the benefit of recoupment.
D. FISCAL COMMENTS:
None.
III. COMMENTS
A. CONSTITUTIONAL ISSUES:
1. Applicability of Municipality/County Mandates Provision:
Not Applicable. This bill does not appear to affect county or municipal governments.
2. Other:
None.
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DATE: 2/15/2022
B. RULE-MAKING AUTHORITY:
The bill neither authorizes nor requires administrative rulemaking.
C. DRAFTING ISSUES OR OTHER COMMENTS:
None.
IV. AMENDMENTS/COMMITTEE SUBSTITUTE CHANGES
None.
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DATE: 2/15/2022
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 1023 2022
1 A bill to be entitled
2 An act relating to insolvent insurers; amending s.
3 627.072, F.S.; providing required factors to be used
4 in the determination and fixing of rates for premiums
5 paid to insolvent insurers for specified coverages;
6 amending s. 631.57, F.S.; authorizing insurers to
7 elect not to recoup advance assessments paid to the
8 Florida Insurance Guaranty Association, Incorporated;
9 revising provisions relating to payments of
10 assessments and insurers' reconciliation reports to
11 the association; requiring insurers to treat insureds'
12 failure to pay surcharges, rather than recoupment
13 charges, as failure to pay premiums; revising
14 construction; providing that insurers are liable for
15 surcharges and are not liable for uncollectible
16 surcharges, rather than emergency assessments;
17 deleting a requirement that insurers treat insureds'
18 failure to pay emergency assessments as failure to pay
19 premiums; amending s. 631.914, F.S.; revising
20 provisions relating to insurers' collection of
21 surcharges and payments of assessments to the Florida
22 Workers' Compensation Insurance Guaranty Association,
23 Incorporated; providing an effective date.
24
25 Be It Enacted by the Legislature of the State of Florida:
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26
27 Section 1. Paragraphs (b) through (g) of subsection (1) of
28 section 627.072, Florida Statutes, are redesignated as
29 paragraphs (c) through (h), respectively, and a new paragraph
30 (b) is added to that subsection, to read:
31 627.072 Making and use of rates.—
32 (1) As to workers' compensation and employer's liability
33 insurance, the following factors shall be used in the
34 determination and fixing of rates:
35 (b) The impact resulting from the past loss experience and
36 prospective loss experience for insurers whose data are missing
37 from statewide experience due to insolvency. Prior reported data
38 for such insurers and all other relevant information may be used
39 to assess the impact on rates;
40 Section 2. Paragraph (c) and paragraphs (f) through (i) of
41 subsection (3) of section 631.57, Florida Statutes, are amended
42 to read:
43 631.57 Powers and duties of the association.—
44 (3)
45 (c) The Legislature finds and declares that all
46 assessments paid by an insurer or insurer group as a result of a
47 levy by the office, including assessments levied pursuant to
48 paragraph (a) and emergency assessments levied pursuant to
49 paragraph (e), constitute advances of funds from the insurer to
50 the association. An insurer may fully recoup such advances by
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51 applying the uniform assessment percentage levied by the office
52 to all policies of the same kind or line as were considered by
53 the office in determining the assessment liability of the
54 insurer or insurer group as set forth in paragraph (f). An
55 insurer remitting an assessment to the association as r equired
56 by subparagraph (f)1. or subparagraph (f)2. may elect to not
57 recoup advances.
58 1. Assessments levied under subparagraph (f)1. are paid
59 before policy surcharges are collected and result in a
60 receivable for policy surcharges collected in the future. This
61 amount, to the extent it is likely that it will be realized,
62 meets the definition of an admissible asset as specified in the
63 National Association of Insurance Commissioners' Statement of
64 Statutory Accounting Principles No. 4. The asset shall be
65 established and recorded separately from the liability
66 regardless of whether it is based on a retrospective or
67 prospective premium-based assessment. If an insurer is unable to
68 fully recoup the amount of the assessment because of a reduction
69 in writings or withdrawal from the market, the amount recorded
70 as an asset shall be reduced to the amount reasonably expected
71 to be recouped.
72 2. Assessments levied under subparagraph (f)2. are paid
73 after policy surcharges are collected so that the recognition of
74 assets is based on actual premium written offset by the
75 obligation to the association.
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76 (f)1. The association, office, and insurers remitting
77 assessments pursuant to paragraph (a) or paragraph (e) must
78 comply with the following:
79 a. In the order levying an assessment, the office shall
80 specify the actual percentage amount to be advanced to the
81 association and thereafter collected uniformly from all the
82 policyholders of insurers subject to the assessment and the date
83 on which the assessment year begins, which may not begin before
84 90 days after the association board certifies such an
85 assessment.
86 b. Insurers shall make an initial payment to the
87 association before the beginning of the assessment year on or
88 before the date specified in the order of the office. Each
89 insurer shall have at least 30 days' written notice as to the
90 date on which the initial assessment payment is due and payable.
91 The association may request that the order issued by the office
92 authorize insurers to remit the advance payments in quarterly
93 installments throughout the assessment year.
94 c. Insurers that have written insurance in the calendar
95 year before the year in which the assessment is certified by the
96 board shall make payments an initial payment based on the direct
97 written premium in this state for the classes protected by the
98 account from the previous calendar year as set forth in the
99 insurer's annual statement, multiplied by the uniform percentage
100 of premium specified in the order issued by the office. Insurers
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101 that have not written insurance in the previous calendar year in
102 any of the lines under the account which are being assessed, but
103 which are writing insurance as of, or after, the date the board
104 certifies the assessment to the office, shall pay an amount
105 based on a good faith estimate of the amount of direct written
106 premium anticipated to be written in the subject line s of
107 business for the assessment year, multiplied by the uniform
108 percentage of premium specified in the order issued by the
109 office.
110 d. Insurers shall file one or more a reconciliation
111 reports report with the association which indicate indicates the
112 amount of the initial payment to the association before the
113 assessment year, whether such amount was based on direct written
114 premium contained in a previous calendar year annual statement
115 or a good faith projection, the amount actually collected during
116 the assessment year, and such other information contained on a
117 form and schedule adopted by the association and provided to the
118 insurers in advance. If the insurer collected from policyholders
119 more surcharges than the amount initially paid, the insurer
120 shall pay the excess amount to the association. If the insurer
121 collected surcharges from policyholders in an amount that which
122 is less than the amount initially paid to the association, the
123 association shall credit the insurer that amount against future
124 assessments. Such payment reconciliation report, and any payment
125 of excess amounts collected from policyholders, shall be
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126 completed and remitted to the association within 90 days after
127 the end of the assessment year. The association shall send a
128 final reconciliation report on all insurers to the office within
129 120 days after each assessment year.
130 e. Insurers remitting reconciliation reports under this
131 paragraph to the association are subject to s. 626.9541(1)(e).
132 2. For assessments required under paragraph (a) or
133 paragraph (e), the association may use a quarterly installment
134 method instead of the method described in sub-subparagraphs 1.b.
135 and c. or in combination thereof based on the association's
136 projected cash flow. If the association projects that it has
137 cash on hand for the payment of anticipated claims in the
138 applicable account for at least 6 months, the board may make an
139 estimate of the assessment needed and may recommend to the
140 office the assessment percentage that may be collected as a
141 quarterly assessment. The office may, in the order levying the
142 assessment on insurers, specify that the assessment is due and
143 payable quarterly as the funds are collected from insureds
144 throughout the assessment year, in which case the assessment
145 shall be a uniform percentage of premium collected during the
146 assessment year and shall be collected from all policyholders
147 with policies in the classes protected by the account. All
148 insurers shall collect the assessment without regard to whether
149 the insurers reported premium in the year preceding the
150 assessment. Insurers are not required to advance funds if the
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151 association and the office elect to use the quarterly
152 installment option. All funds collected shall be retained by the
153 association for the payment of current or future claims. This
154 subparagraph does not alter the obligation of an insurer to
155 remit assessments levied pursuant to this subsection to the
156 association. Insurers shall file one or more reconciliation
157 reports with the association which indicate the amount actually
158 collected during the assessment year, and such other information
159 contained on a form and schedule adopted by the association and
160 provided to the insurers in advance.
161 (g) Insurers shall treat the failure of an insured to pay
162 a surcharge recoupment charge as a failure to pay the premium.
163 (h) Assessments levied under this subsection are levied
164 upon insurers. This subsection does not create a cause of action
165 by a policyholder with respect to the levying of, or a
166 policyholder's duty to pay, such assessments and related
167 surcharges.
168 (i) Assessments levied under this subsection are not
169 premium and are not subject to the premium tax, to any fees, or
170 to any commissions. An insurer is liable for any surcharges
171 emergency assessments that the insurer collects and shall treat
172 the failure of an insured to pay an emergency assessment as a
173 failure to pay the premium. An insurer is not liable for
174 uncollectible surcharges emergency assessments.
175 Section 3. Paragraphs (c) and (d) of subsection (1) and
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176 paragraph (c) of subsection (4) of section 631.914, Florida
177 Statutes, are amended to read:
178 631.914 Assessments.—
179 (1)
180 (c) The office shall levy the uniform surcharge percentage
181 on all policies of the same kind or line as were considered by
182 the office in determining the assessment liability of the
183 insurer. Member insurers shall collect policy surcharges at a
184 uniform percentage rate on new and renewal policies issued and
185 effective during the assessment year period of 12 months
186 beginning on January 1, April 1, July 1, or October 1, whichever
187 is the first day of the following calendar quarter as specified
188 in an order issued by the office. The policy surcharge may not
189 begin until 90 days after the board of directors certifies the
190 assessment.
191 (d) The association may use a pass-through an installment
192 method to require the insurer to remit the policy surcharge as
193 collected or may require the insurer to remit the assessment to
194 the association before collecting the policy surcharge.
195 1. If the association elects to use the pass-through
196 installment method, the office may, in the order levying the
197 assessment on insurers, specify that the policy surcharge is due
198 and payable quarterly as collected throughout the assessment
199 year. Insurers shall collect policy surcharges at a uniform
200 percentage rate specified by order as described in paragraph
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201 (c). Insurers are not required to advance funds if the
202 association and the office elect to use the pass-through
203 installment option. Assessments levied under this subparagraph
204 are paid after policy surcharges are collected, and the
205 recognition of assets is based on actual policy surcharges
206 collected offset by the obligation to the association.
207 2. If the association elects to require insurers to remit
208 the assessment before surcharging the policy, the following
209 shall apply:
210 a. On or before the date specified in the order of the
211 office, insurers shall make an initial advance payment to the
212 association of the percentage specified in the order multiplied
213 by the insurer's direct written premiums received in this state
214 for the preceding calendar year for the kinds of insurance
215 included within such account before the beginning of the
216 assessment year. The board may authorize an insurer to pay an
217 assessment in a single payment or on a quarterly basis, based on
218 cash-flow needs.
219 b. The levy order shall provide each insurer so assessed
220 at least 30 days' written notice of the date the initial
221 assessment payment is due and payable by the insurer.
222 c. Insurers shall collect policy surcharges at a uniform
223 percentage rate specified by the order, as described in
224 paragraph (c).
225 d. Assessments levied under this subparagraph and paid by
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226 an insurer constitute advances of funds from the insurer to the
227 association and result in a receivable for policy surcharges to
228 be billed in the future. The amount of billed policy surcharges,
229 to the extent it is likely that it will be realized, meets the
230 definition of an admissible asset as specified in the National
231 Association of Insurance Commissioners' Statement of Statutory
232 Accounting Principles No. 4. The asset shall be established and
233 recorded separately from the liability. If an insurer is unable
234 to fully recoup the amount of the assessment, the amount
235 recorded as an asset shall be reduced to the amount reasonably
236 expected to be recouped.
237 3. Insurers must submit a reconciliation report to the
238 association within 120 days after the end of the 12 -month
239 assessment year period and annually thereafter for a period of 2
240 3 years. The report must indicate the amount of the initial
241 payment or installment payments made to the association and the
242 amount of policy surcharges collected for the assessment year.
243 If the insurer's reconciled obligation is more than the amount
244 paid to the association, the insurer shall pay the excess policy
245 surcharges collected to the association. If the insurer's
246 reconciled obligation is less than the initial amount paid to
247 the association, the association shall return the overpayment to
248 the insurer.
249 (4)
250 (c) The board may allow an insurer to pay an assessment on
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251 a quarterly basis.
252 Section 4. This act shall take effect July 1, 2022.
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COMMERCE COMMITTEE
HB 1023 by Rep. Fabricio
Insolvent Insurers
AMENDMENT SUMMARY
February 17, 2022
Amendment 1 by Rep. Fabricio (Line 71):
• Adds clarifying language relating to the payment of guaranty fund assessments when an
insurer declines to recoup an assessment through policy surcharges; and
• Adds clarifying language relating to the treatment of guaranty fund assessments on an
insurer’s annual financial statement.
COMMITTEE/SUBCOMMITTEE AMENDMENT
Bill No. HB 1023 (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 Fabricio offered the following:
3
4 Amendment (with title amendment)
5 Remove lines 71-160 and insert:
6 to be recouped. If an insurer elects not to recoup advances, the
7 amount recorded as an asset shall be reduced to zero.
8 2. Assessments levied under subparagraph (f)2. are paid
9 after policy surcharges are collected so that the recognition of
10 assets is based on actual premium written offset by the
11 obligation to the association. If an insurer elects not to
12 recoup advances, the amount recorded as an asset shall be
13 reduced to zero.
14 (f)1. The association, office, and insurers remitting
15 assessments pursuant to paragraph (a) or paragraph (e) must
16 comply with the following:
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COMMITTEE/SUBCOMMITTEE AMENDMENT
Bill No. HB 1023 (2022)
Amendment No. 1
17 a. In the order levying an assessment, the office shall
18 specify the actual percentage amount to be advanced to the
19 association and thereafter collected uniformly from all the
20 policyholders of insurers subject to the assessment and the date
21 on which the assessment year begins, which may not begin before
22 90 days after the association board certifies such an
23 assessment.
24 b. Insurers shall make an initial payment to the
25 association before the beginning of the assessment year on or
26 before the date specified in the order of the office. Each
27 insurer shall have at least 30 days' written notice as to the
28 date on which the initial assessment payment is due and payable.
29 The association may request that the order issued by the office
30 authorize insurers to remit the advance payments in quarterly
31 installments.
32 c. Insurers that have written insurance in the calendar
33 year before the year in which the assessment is certified by the
34 board shall make payments an initial payment based on the direct
35 written premium in this state for the classes protected by the
36 account from the previous calendar year as set forth in the
37 insurer's annual statement, multiplied by the uniform percentage
38 of premium specified in the order issued by the office. Insurers
39 that have not written insurance in the previous calendar year in
40 any of the lines under the account which are being assessed, but
41 which are writing insurance as of, or after, the date the board
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COMMITTEE/SUBCOMMITTEE AMENDMENT
Bill No. HB 1023 (2022)
Amendment No. 1
42 certifies the assessment to the office, shall pay an amount
43 based on a good faith estimate of the amount of direct written
44 premium anticipated to be written in the subject lines of
45 business for the assessment year, multiplied by the uniform
46 percentage of premium specified in the order issued by the
47 office.
48 d. Insurers shall file one or more a reconciliation
49 reports report with the association which indicate indicates the
50 amount of the initial payment to the association before the
51 assessment year, whether such amount was based on direct written
52 premium contained in a previous calendar year annual statement
53 or a good faith projection, the amount actually collected during
54 the assessment year, and such other information contained on a
55 form and schedule adopted by the association and provided to the
56 insurers in advance. If the insurer collected from policyholders
57 more surcharges than the amount initially paid, the insurer
58 shall pay the excess amount to the association. If the insurer
59 collected surcharges from policyholders in an amount that which
60 is less than the amount initially paid to the association, the
61 association shall credit the insurer that amount against future
62 assessments. Such payment reconciliation report, and any payment
63 of excess amounts collected from policyholders, shall b e
64 completed and remitted to the association within 90 days after
65 the end of the assessment year. The association shall send a
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COMMITTEE/SUBCOMMITTEE AMENDMENT
Bill No. HB 1023 (2022)
Amendment No. 1
66 final reconciliation report on all insurers to the office within
67 120 days after each assessment year.
68 e. Insurers remitting reconciliation reports under this
69 paragraph to the association are subject to s. 626.9541(1)(e).
70 2. For assessments required under paragraph (a) or
71 paragraph (e), the association may use a quarterly installment
72 method instead of the method described in sub-subparagraphs 1.b.
73 and c. or in combination thereof based on the association's
74 projected cash flow. If the association projects that it has
75 cash on hand for the payment of anticipated claims in the
76 applicable account for at least 6 months, the board may make an
77 estimate of the assessment needed and may recommend to the
78 office the assessment percentage that may be collected as a
79 quarterly assessment. The office may, in the order levying the
80 assessment on insurers, specify that the assessment is due and
81 payable quarterly as the funds are collected from insureds
82 throughout the assessment year, in which case the assessment
83 shall be a uniform percentage of premium collected during the
84 assessment year and shall be collected from all policyholders
85 with policies in the classes protected by the account.
86 a. All insurers shall pay collect the assessment to the
87 association without regard to whether the insurers reported
88 premium in the year preceding the assessment.
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COMMITTEE/SUBCOMMITTEE AMENDMENT
Bill No. HB 1023 (2022)
Amendment No. 1
89 b. Insurers are not required to advance funds if the
90 association and the office elect to use the quarterly
91 installment option.
92 c. An insurer that elects not to recoup the assessment
93 shall make quarterly payments to the association equal to the
94 amount of premium written in the previous quarter for the
95 classes protected by the account, multiplied by the uniform
96 percentage of premium specified in the order issued by the
97 office.
98 d. All funds paid to the association collected shall be
99 retained by the association for the payment of current or future
100 claims.
101 e. Insurers shall file one or more reconciliation reports
102 with the association which indicate the amount actually
103 collected during the assessment year, and such other inf ormation
104 contained on a form and schedule adopted by the association and
105 provided to the insurers in advance.
106
107 This subparagraph does not alter the obligation of an insurer to
108 remit assessments levied pursuant to this subsection to the
109 association.
110
111
112 -----------------------------------------------------
113 T I T L E A M E N D M E N T
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Bill No. HB 1023 (2022)
Amendment No. 1
114 Remove lines 9-11 and insert:
115 providing the calculation of insurers' assets under a
116 specified circumstance; prohibiting insurers' assets
117 from being recorded under a specified circumstance;
118 revising provisions relating to payments of
119 assessments and insurers' reconciliation reports to
120 the association; requiring insurers to pay assessments
121 to the association, rather than to collect such
122 assessments; specifying the payments that certain
123 insurers must make to the association; requiring
124 insurers to treat insureds'
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CS/HB 1233
HOUSE OF REPRESENTATIVES STAFF ANALYSIS
BILL #: CS/HB 1233 Online Training for Private Security Officers
SPONSOR(S): Regulatory Reform Subcommittee, Fine
TIED BILLS: IDEN./SIM. BILLS: CS/SB 1474
REFERENCE ACTION ANALYST STAFF DIRECTOR or
BUDGET/POLICY CHIEF
1) Regulatory Reform Subcommittee 12 Y, 4 N, As Thompson Anstead
CS
2) Agriculture & Natural Resources Appropriations 14 Y, 0 N White Pigott
Subcommittee
3) Commerce Committee Thompson Hamon
SUMMARY ANALYSIS
The Division of Licensing within the Department of Agriculture and Consumer Services (DACS) is responsible
for the licensure and regulation of private investigation, private security, and recovery services, including Class
“D” unarmed Security Officer and Class “G” Statewide Firearm license applicants.
An applicant for a Class “D” unarmed Security Officer license must submit proof of successful completion of a
minimum of 40 hours of professional training at a Class “DS” Security Officer School or Training Facility
licensed by DACS. A Class “D” Security Officer is not permitted to carry a firearm unless such licensee also
obtains a Class “G” Statewide Firearm license.
An applicant for a Class “G” Statewide Firearm license must satisfy minimum training criteria for firearms
established by DACS rule, including 28 hours of range and classroom training taught and administered by a
Class “K” Firearms Instructor licensee. No more than eight hours of such training may consist of range training.
The bill:
Allows 21 of the 28 hour training requirement for a Class “G” Statewide Firearm license to be
conducted in-person or online instead of in the classroom, and no more than eight hours may consist of
range training.
Allows the 40 hour training requirement for Class “D” Security Officer licensure to be conducted in-
person or online.
Requires DACS to verify an applicant’s identity, attendance, and successful completion of the training.
Provides that an online training course must:
o Include security questions to ensure the applicant is using the computer or mobile device.
o Set a minimum amount of time that each applicant must spend on each screen.
o Include randomized test questions.
The bill also requires an online training course for a Class “D” or “G” license to be attached to and conducted
by a licensed school or training facility with a physical location. A firearms instructor teaching an online training
course must work for a licensed school or training facility that has a minimum $1 million insurance policy and is
registered, permitted, or licensed by DACS.
The bill may have an insignificant negative fiscal impact on the state that can be absorbed within existing
resources.
The bill has an effective date of July 1, 2022.
This docum ent does not reflect the intent or official position of the bill sponsor or House of Representatives .
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FULL ANALYSIS
I. SUBSTANTIVE ANALYSIS
A. EFFECT OF PROPOSED CHANGES:
Background
The Department of Agriculture and Consumer Services (DACS) supports and promotes Florida
agriculture, protects the environment, safeguards consumers, and ensures the safety and
wholesomeness of food.1 The Division of Licensing (Division) within DACS administers Florida's
concealed weapon licensing program 2 and oversees Florida's private investigative, private security, and
recovery services industries.3 The Division's regulatory oversight of those services includes licensing,
enforcing compliance standards, and ensuring public protection from unethical business practices and
unlicensed activity.4
Private Investigative and Security Services
Currently, the Division offers 22 different types of private investigative, private security, and recovery
services licenses and four different types of concealed weapon or firearm licenses. As of December 31,
2021, the Division had issued a total of 169,758 private investigative, private security, and recovery
services licenses and 2,459,530 concealed weapon permits, to qualified applicants. The following chart
provides a breakdown of the total number of each license type. 5
License License Title Total
Type
C Private Investigators 6,992
CC Private Investigator Interns 1,333
A Private Investigative Agencies 2,627
AA Private Investigative Agency Branch Offices 21
MA Private Investigative Agency Managers 81
M Private Investigative/Security Agency 473
Managers
D Security Officers 124,996
B Security Agencies 1,836
BB Security Agency Branch Offices 181
MB Security Managers 1,395
AB Security Agency/Private Investigative Agency 19
Branch Offices
DS Security Officer Schools 378
DI Security Officer Instructors 1,705
G Statewide Firearm Licenses 26,026
K Firearms Instructors 617
E Recovery Agents 743
EE Recovery Agent Interns 282
R Recovery Agencies 282
RR Recovery Agency Branch Offices 38
MR Recovery Agency Managers 1
RS Recovery Agent Schools 6
1 Department of Agriculture and Consumer Services , About, http://www.freshfromflorida.co m/About/ (last visited Mar. 7, 2019).
2 S. 790.06, F.S.
3 Ch. 493, F.S.
4 Office of Program Policy Analysis and Government Accountability, Government Program Summaries, Department of Agriculture
and Consumer Services Licensing, https://oppaga.fl.gov/ProgramSummary/ProgramDetail?programNu mber=4101 (last visited Jan.
23, 2022).
5 The Florida Department of Agriculture and Consumer Services, Division of Licensing Statistical Reports,
https://www.fdacs.gov/Divisions -Offices/Licensing/Statistical-Reports (last visited Jan. 23, 2022).
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RI Recovery Agent Instructors 9
Subtotal of Private Investigative, Private Security, and 170,041
Recovery Services Licenses
W Concealed Weapon or Firearm 2,445,471
WJ Concealed Weapon or Firearm/Circuit and 809
County Judges
WR Concealed Weapon or Firearm/Retired Law 13,244
Enforcement and Correctional Officers
WS Concealed Weapon or Firearm/Consular 6
Security Official
Subtotal of Concealed Weapon Licenses 2,459,530
Total Number of Licenses 2,629,571
Class “D” Security Officers
Section 493.6101, F.S., defines the following:
“Security officer” means any individual who, for consideration, advertises as providing or
performs bodyguard services or otherwise guards persons or property; attempts to prevent theft
or unlawful taking of goods, wares, and merchandise; or attempts to prevent the
misappropriation or concealment of goods, wares or merchandise, money, bonds, stocks,
choses in action, notes, or other documents, papers, and articles of value or procurement of the
return thereof. The term also includes armored car personnel and those personnel engaged in
the transportation of prisoners.6
“Security agency” means any person who, for consideration, advertises as providing or is
engaged in the business of furnishing security services, armored car services, or transporting
prisoners.
To become an unarmed security officer in Florida, a Class “D” Private Security license is required.7
“Unarmed” means that no firearm shall be carried while providing security officer services regulated by
ch. 493, F.S.8 In order to carry a firearm in the course of performing such duties, the licensee must also
obtain a Class “G” Statewide Firearm license in addition to the Class “D” Private Security license.9
To qualify for a Class “D” Private Security license, an applicant must:
Be at least 18 years old;
Be one of the following:
o A United States citizen,
o A permanent legal resident, or
o A holder of a work visa from the United States Citizenship and Immigration Service;
Have no disqualifying criminal history;
Be of good moral character;
Have no history of:
o Mental illness,
o Alcohol abuse, or
o Substance abuse;
Submit an application with certain identifying information; 10 and
Complete 40 hours of required training and submit proof thereof to DACS.11
Currently, the required training must take place in-person at a licensed school or training facility that
has a physical location.12 Many states, including California and Georgia, do not prohibit online training
for unarmed security officers.13
6 S. 493.6101(19), F.S.
7 S. 493.6301(5), F.S. Exceptions to the licensure requirement are listed in s. 493.6102, F.S.
8 S. 493.6101(9), F.S.
9 S. 493.6115(2), F.S.
10 S. 493.6105, F.S. and r. 5N-1.100(6), F.A.C.
11 S. 493.6303(4)(a), F.S.
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According to the National Conference of State Legislatures (NCSL), 14 11 states do not require a license
for unarmed security guards.15 Of the states that do require a license, 13 do not have any training
requirements in order to qualify for a license,16 and only nine states explicitly require that training be
provided in a classroom setting.17
Class “G” Statewide Firearm License
In order to carry a firearm in the course of duty, the licensee must also obtain a Class “G” Statewide
Firearm license.18 Only Class “C” Private Investigator, Class “CC” Private Investigator Intern, Class “D”
Security Officer, Class “M” Private Investigative/Security Agency Manager, Class “MA” Private
Investigative Agency Manager, or Class “MB” Security Manager licensees are permitted to bear a
firearm and any such licensee who bears a firearm must also have a Statewide Firearm license.19
An applicant for a Class “G” Statewide Firearm license must satisfy minimum training criteria for
firearms established by DACS rule,20 including, but not limited to, 28 hours of range and classroom
training taught and administered by a Class “K” Firearms Instructor licensee. No more than eight hours
of such training may consist of range training.21
Class “DS” Security Officer Schools and Training Facilities
A Class “DS” license is required for schools and training facilities that provide training services for
Class “D” Security Officer license applicants. An application for a Class “DS” Security Officer School
license must contain the following information:
The name and address of the school or training facility,
The street address of the place where training will be conducted, and
A copy of the curriculum and final exam to be administered, 22 in accordance with the
requirements set forth by DACS.23
The general content and number of hours of each subject area to be taught in a school or training
facility is established by DACS rule.24 Firearms instructors may use audio/video material as an
instructional aide when teaching the classroom portion of the firearms training course, but an instructor
cannot rely solely on the use of audio/video material. Firearms instruction must be presented as live, in-
person classes where the firearms instructor is present to allow for necessary student teacher
interaction when teaching students to use firearms.25
Effect of the Bill
Class “G” Statewide Firearm Licenses
12 Ss. 493.6303(4)(a) and 493.6304, F.S.; and Department of Agriculture and Consumer Services, Class "D" Security Officer License
Requirements, https://www.freshfromflorida.com/Business -Services/Private-Security-Licenses/Class-D-Security-Officer-License-
Requirements (last visited Jan. 24, 2022).
13 Cal. Bus. & Prof. § 7583.6 (2017); Ga. Comp. R. & Regs. r. 509-3-.02; and O.C.G.A. § 43-38-7.1(a).
14 Email from Zach Hermann, MSW, Research Analyst II, Employment, Labor & Retirement Program, National Conference of State
Legislatures, NCSL REPLY: classroom vs online education for unarmed security guard licensure , (Mar. 11, 2019).
15 Colorado, Idaho, Kansas, Kentucky, Massachusetts, Mississippi, Missouri, Nebraska, Rhode Island, South Dakota, and Wyoming.
16 Indiana, Iowa, Maine, Maryland, Michigan, Montana, Nevada, New Hampshire, Ohio, Pennsylvania, Texas, West Virginia, and
Wisconsin.
17 Alabama, Georgia, Illinois, North Carolina, North Dakota, Oregon, Utah, Vermont, and Virginia.
18 S. 493.6115(2), F.S.
19 S. 493.6115(2), F.S.
20 R. 1.132, F.A.C.
21 S. 493.6105(5), F.S.
22 S. 493.6304, F.S.
23 R. 5N-1.134, F.A.C.
24 S. 493.6303(4)(a), F.S.
25 R. 5N-1.132(4)(c), F.A.C.
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The bill revises the minimum firearms training criteria for Class “G” Statewide Firearm license
applicants to require the 28 hours of range and classroom training be conducted by in-person
instruction or online through a secure website of the licensed school or training facility if the applicant's
identity, attendance, and successful completion of training are verified. The applicant must report the
verification to DACS upon completion of the training.
The bill specifies that no more than 21 hours of such training may be conducted in an online classroom,
and no more than eight hours of such training shall consist of range training.
The bill requires DACS, by rule and in accordance with s. 493.6115, F.S., to establish the general
content, the number of hours of each subject area to be taught, the method of delivery and the security
protocols for online training and testing, the reporting requirements for verification of successful
completion of training, and any other rules necessary for the regulation of schools or training facilities
providing in-person or online training.
Class “DS” Security Officer Schools and Training Facilities
The bill requires an online training course for a Class "D" Security Officer license or a Class "G"
Statewide Firearm license to be attached to and conducted by a licensed school or training facility that
maintains a physical location.
The bill requires firearms instructors conducting an online training course to work under a licensed
school or training facility or be employed under a business establishment registered, permitted, or
licensed by DACS with an insurance policy in the minimum amount of $1,000,000.
The bill specifies that an applicant may only be logged into the online training course from one device
at a time.
The bill requires such online training courses to:
Include security questions to ensure that the applicant is actively using the computer or mobile
device and is following along with the online training;
Set a minimum amount of time that each applicant must spend on each screen before moving
on to the next screen; and
Include randomized test questions.
The bill requires online training course certificates to be sequentially numbered for tracking purposes.
Class “D” Security Officer Licenses
The bill revises the 40 hour training requirement for applicants for a Class “D” Security Officer license to
allow the required training to be conducted in-person or online through a secure website of the licensed
school or training facility if the applicant's identity, attendance, and successful completion of training are
verified.
The bill requires applicants to report the verification to DACS upon completion of the training.
Such training is valid only if DACS receives verification of the applicant’s identity, attendance, and
successful completion. DACS is required to establish by rule, and in accordance with s. 493.6103, F.S.,
the following:
General content;
Number of hours of each subject area;
Method of delivery;
Security protocols;
Reporting requirements for verification of successful completion; and
Any other rules necessary for the regulation of schools or training facilities providing in-person
or online training.
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The bill provides that upon completion of such training, the training facility or the instructor must:
Submit proof of completion of training for each applicant to DACS electronically in a manner
prescribed by DACS; and
Provide a copy of the training results to the applicant who completed the training.
B. SECTION DIRECTORY:
Section 1: Amends s. 493.6105, F.S., relating to initial application for license.
Section 2: Creates s. 493.6132, F.S., relating to online training courses.
Section 3: Amends s. 493.6303, F.S., relating to license requirements.
Section 4: Provides an effective date of July 1, 2022.
II. FISCAL ANALYSIS & ECONOMIC IMPACT STATEMENT
A. FISCAL IMPACT ON STATE GOVERNMENT:
1. Revenues:
None.
2. Expenditures:
The bill may have an insignificant negative fiscal impact on DACS that can be absorbed within
existing resources for the rulemaking requirements of the bill.
B. FISCAL IMPACT ON LOCAL GOVERNMENTS:
1. Revenues:
None.
2. Expenditures:
None.
C. DIRECT ECONOMIC IMPACT ON PRIVATE SECTOR:
Online training may make the profession more accessible based on increased ease in obtaining the
required training. Schools and training facilities may also offer training at a lower cost due to reduced
costs from running physical facilities.
D. FISCAL COMMENTS:
None.
III. COMMENTS
A. CONSTITUTIONAL ISSUES:
1. Applicability of Municipality/County Mandates Provision:
Not applicable. This bill does not appear to affect county or municipal governments.
2. Other:
None.
B. RULE-MAKING AUTHORITY:
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The bill requires DACS to develop rules in accordance with ss. 493.6115 and 493.6103, F.S., to
implement the bill.
C. DRAFTING ISSUES OR OTHER COMMENTS:
None.
IV. AMENDMENTS/ COMMITTEE SUBSTITUTE CHANGES
On January 27, 2022, the Regulatory Reform Subcommittee adopted one amendment and reported the bill
favorably as a committee substitute. The committee substitute corrects a reference to DBPR to instead
reference DACS.
This analysis is drafted to the committee substitute as passed by the Regulatory Reform Subcommittee.
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F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
CS/HB 1233 2022
1 A bill to be entitled
2 An act relating to online training for private
3 security officers; amending ss. 493.6105 and 493.6303,
4 F.S.; providing that certain required training
5 criteria for a Class "D" or Class "G" license may be
6 conducted online; providing requirements for such
7 online training; requiring the Department of
8 Agriculture and Consumer Services to establish certain
9 criteria and rules for the regulation of certain
10 entities that provide online training; providing
11 reporting requirements upon completion of the
12 training; creating s. 493.6132, F.S.; providing
13 requirements for online training courses for a Class
14 "D" or Class "G" license; providing an effective date.
15
16 Be It Enacted by the Legislature of the State of Florida:
17
18 Section 1. Subsection (5) of section 493.6105, Florida
19 Statutes, is amended to read:
20 493.6105 Initial application for license.—
21 (5) In addition to the requirements outlined in subsection
22 (3), an applicant for a Class "G" license must satisfy minimum
23 training criteria for firearms established by rule of the
24 department, which training criteria includes, but is not limited
25 to, 28 hours of range and classroom training conducted by in-
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CS/HB 1233 2022
26 person instruction or online through a secure website of the
27 licensed school or training facility if the applicant's
28 identity, attendance, and successful completion of training are
29 verified. The applicant must report the verification to the
30 department upon completion of the training. Training is to be
31 taught and administered by a Class "K" licensee; however, no
32 more than 21 hours may be conducted in an online classroom, and
33 no more than 8 hours of such training shall consist of range
34 training. The department shall by rule and in accordance with s.
35 493.6115 establish the general content, the number of hours of
36 each subject area to be taught, the method of delivery and the
37 security protocols for online training and testing, the
38 reporting requirements for verification of successful completion
39 of training, and any other rules necessary for the regulation of
40 schools or training facilities providing in-person or online
41 training. The department may waive the foregoing firearms
42 training requirement if:
43 (a) The applicant provides proof that he or she is
44 currently certified as a law enforcement officer or correctional
45 officer pursuant to the requirements of the Criminal Justice
46 Standards and Training Commission or has successfully completed
47 the training required for certification within the last 12
48 months.
49 (b) The applicant provides proof that he or she is
50 currently certified as a federal law enforcement officer and has
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51 received law enforcement firearms training administered by a
52 federal law enforcement agency.
53 (c) The applicant submits a valid firearm certificate
54 among those specified in paragraph (6)(a).
55 Section 2. Section 493.6132, Florida Statutes, is created
56 to read:
57 493.6132 Online training courses.—
58 (1) An online training course for a Class "D" or Class "G"
59 license must be attached to and conducted by a licensed school
60 or training facility that maintains a physical location.
61 (2) A firearms instructor conducting an online training
62 course must work under a licensed school or training facility or
63 be employed under a business establishment registered,
64 permitted, or licensed by the department with an insurance
65 policy in the minimum amount of $1,000,000.
66 (3) An applicant may only be logged into the online
67 training course from one device at a time.
68 (4) The online training course must:
69 (a) Include security questions to ensure that the
70 applicant is actively using the computer or mobile device and is
71 following along with the online training.
72 (b) Set a minimum amount of time that each applicant must
73 spend on each screen before moving on to the next screen.
74 (c) Include randomized test questions.
75 (5) Online training course certificates must be
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76 sequentially numbered for tracking purposes.
77 Section 3. Paragraph (a) of subsection (4) of section
78 493.6303, Florida Statutes, is amended to read:
79 493.6303 License requirements.—In addition to the license
80 requirements set forth elsewhere in this chapter, each
81 individual or agency must comply with the following additional
82 requirements:
83 (4)(a) An applicant for a Class "D" license must submit
84 proof of successful completion of a minimum of 40 hours of
85 professional training at a school or training facility licensed
86 by the department. The training may be conducted by in-person
87 instruction or online through a secure website of the licensed
88 school or training facility if the applicant's identity,
89 attendance, and successful completion of training are verified.
90 The applicant must report the verification to the department
91 upon completion of the training. The department shall by rule
92 and in accordance with s. 493.6103 establish the general content
93 and number of hours of each subject area to be taught , the
94 method of delivery and the security protocols for online
95 training and testing, the reporting requirements for
96 verification of successful completion of training, and any other
97 rules necessary for the regulation of schools or training
98 facilities providing in-person or online training. Upon
99 completion of such training, the training facility or the
100 instructor must submit proof of completion of train ing for each
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101 applicant to the department electronically in a manner
102 prescribed by the department. The training facility or the
103 instructor must also provide a copy of the training results to
104 the applicant who completed the training.
105 Section 4. This act shall take effect July 1, 2022.
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COMMERCE COMMITTEE
HB 1233 by Rep. Fine
Online Training for Private Security Officers
AMENDMENT SUMMARY
February 17, 2022
Amendment 1 by Rep. Fine (strike-all):
• Specifies that the 8 hours of in-person training for firearms includes safe handling and
storage of firearms.
• Allows the 28 hours of range and classroom training for Class "G" statewide firearm
licensure applicants to be taught by a Class “K” firearm instructor via secure
website instead of a licensed school or training facility.
• Specifies that the online portion of such training must be live instruction.
• Reduces the 21 hour limit for the online classroom portion of the training to 20 hours.
• Implements similar reporting requirements for Class "G" and Class "D" applicants
who complete their training online, specifically requiring both the applicant and Class “K”
firearms instructor to submit training results to DACS, and requiring the instructor to
provide a hard copy of the certificate to the applicant.
• Removes the requirement that a Class “K” firearm instructor licensee conducting online
training to have insurance.
• Requires an online training course to include a digital record of the applicant's
attendance log along with components required by DACS rule.
• Requires a licensed school or training facility or Class “K” firearm instructor licensee
conducting an online course to:
o Maintain records of all training sessions, including the instructor who taught
each session, compliance with security protocols, and any other required
documentation established by DACS rule.
o Provide live access to the Division for auditing, monitoring or inspection
purposes.
o Allow instructing via recording where an applicant is absent during a portion
of the live online class, as limited by DACS rule; and
• Allows DACS to access each online course for the purpose of auditing, monitoring, and
inspection.
COMMITTEE/SUBCOMMITTEE AMENDMENT
Bill No. CS/HB 1233 (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 Fine offered the following:
3
4 Amendment (with title amendment)
5 Remove everything after the enacting clause and insert:
6 Section 1. Subsection (5) of section 493.6105, Florida
7 Statutes, is amended to read:
8 493.6105 Initial application for license.—
9 (5) In addition to the requirements outlined in subsection
10 (3), an applicant for a Class "G" license must satisfy minimum
11 training criteria for firearms established by rule of the
12 department, including which training criteria includes, but is
13 not limited to, 28 hours of range and classroom training
14 conducted by in-person instruction or live online instruction
15 through a secure website, provided that the applicant's
16 identity, attendance, and successful completion of training are
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COMMITTEE/SUBCOMMITTEE AMENDMENT
Bill No. CS/HB 1233 (2022)
Amendment No. 1
17 verified by the instructor. As part of his or her application,
18 the applicant must submit a training certificate to the
19 department upon completion of the training. Training must be
20 taught and administered by one or more a Class "K" licensees.
21 licensee; however, No more than 20 hours of such training may be
22 conducted in an online classroom, and 8 hours of such training
23 shall consist of in-person range training. including safe
24 handling and storage of firearms. Consistent with s. 493.6115,
25 the department shall by rule establish the general content and
26 the number of hours of each subject area to be taught, the
27 method of delivery and the security protocols for online
28 training and testing, the reporting requirements for
29 verification of successful completion of training, and any other
30 rules necessary for the regulation of Class "K" licensees
31 providing in-person or online training. Upon completion of the
32 training, the instructor must submit results directly to the
33 Division of Licensing in a manner prescribed by the department.
34 The instructor must also provide a copy of the training results
35 to the applicant who completed the training. The department may
36 waive the foregoing firearms training requirement if:
37 (a) The applicant provides proof that he or she is
38 currently certified as a law enforcement officer or correctional
39 officer pursuant to the requirements of the Criminal Justice
40 Standards and Training Commission or has successfully completed
41 the training required for certification within the last 12
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Bill No. CS/HB 1233 (2022)
Amendment No. 1
42 months.
43 (b) The applicant provides proof that he or she is
44 currently certified as a federal law enforcement officer and has
45 received law enforcement firearms training administered by a
46 federal law enforcement agency.
47 (c) The applicant submits a valid firearm certificate
48 listed among those specified in paragraph (6)(a).
49 Section 2. Section 493.6132, Florida Statutes, is created
50 to read:
51 493.6132 Online training courses.—
52 (1) An online training course for a Class "D" license must
53 be conducted live and by a licensed school or training facility
54 that maintains a physical location in this state.
55 (2) A Class "K" licensed firearms instructor conducting an
56 online training course must maintain a physical location in this
57 state and must conduct online classes live at a location in this
58 state.
59 (3) An applicant may only be logged into the online
60 training course from one device at a time.
61 (4) The online training course must include, at a minimum,
62 all of the following:
63 (a) Security questions to ensure that the applicant is
64 actively using the computer or mobile device and is following
65 along with the online training.
66 (b) A minimum amount of time that each applicant must
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67 spend on each screen before moving on to the next screen.
68 (c) Randomized test questions.
69 (d) A digital record of the applicant's attendance log
70 along with any components required by department rule .
71 (5) A licensed school or training facility, or a Class "K"
72 licensee conducting an online course, must maintain records of
73 all training sessions, including the name and license number of
74 the instructor who is present online with the students while the
75 students are receiving instruction, and proof of compliance with
76 all security protocols at the school, facility, or place of
77 business in this state. The records required under this
78 subsection must be made accessible to the department's
79 investigators upon request.
80 (6) A licensed school or training facility, or a Class "K"
81 licensee conducting an online course must provide the Division
82 of Licensing with live access to each course for the purposes of
83 auditing, monitoring, or inspection as deemed necessary by t he
84 division.
85 (7) If an applicant is absent during a portion of a live
86 online class, a licensed school or training facility, or a Class
87 "K" licensee conducting an online course, may deliver
88 instruction in part using recordings, as limited by department
89 rule.
90 Section 3. Paragraph (a) of subsection (4) of section
91 493.6303, Florida Statutes, is amended to read:
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Amendment No. 1
92 493.6303 License requirements.—In addition to the license
93 requirements set forth elsewhere in this chapter, each
94 individual or agency must comply with the following additional
95 requirements:
96 (4)(a) An applicant for a Class "D" license must submit
97 proof of successful completion of a minimum of 40 hours of
98 professional training at a school or training facility licensed
99 by the department. The training may be conducted by in-person
100 instruction or online instruction presented live through a
101 secure website of the licensed school or training facility,
102 provided that the applicant's identity, attendance, and
103 successful completion of training are verified by the
104 instructor. As part of his or her application, the applicant
105 must submit the completed training certificate to the department
106 upon completion of the training. The department shall by rule
107 and in accordance with s. 493.6103 establish the general content
108 and number of hours of each subject area to be taught , the
109 method of delivery and the security protocols for online
110 training and testing, the reporting requirements for
111 verification of successful completion of training, and any other
112 rules necessary for the regulation of schools or training
113 facilities providing in-person or online training. Upon
114 completion of such training, the training facility or the
115 instructor must submit proof of completion of training for each
116 applicant to the department electronically in a manner
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Amendment No. 1
117 prescribed by the department. The training facility or the
118 instructor must also provide a copy of the training results to
119 the applicant who completed the training.
120 Section 4. This act shall take effect July 1, 2022.
121
122 -----------------------------------------------------
123 T I T L E A M E N D M E N T
124 Remove everything before the enacting clause and insert:
125 An act relating to online training for private
126 security officers; amending ss. 493.6105 and 493.6303,
127 F.S.; providing that certain required training
128 criteria for Class "G" and Class "D" licenses,
129 respectively, may be conducted online; providing
130 requirements for such online training; requiring the
131 Department of Agriculture and Consumer Services to
132 establish certain criteria and rules for the
133 regulation of certain entities that provide online
134 training; providing reporting requirements upon
135 completion of the training; creating s. 493.6132,
136 F.S.; providing requirements for online training
137 courses for a Class "D" license; requiring entities
138 offering online training to provide the Division of
139 Licensing with live access to each course; authorizing
140 such entities to deliver online instruction using
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COMMITTEE/SUBCOMMITTEE AMENDMENT
Bill No. CS/HB 1233 (2022)
Amendment No. 1
141 recordings under certain circumstances; providing an
142 effective date.
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CS/HB 1411
HOUSE OF REPRESENTATIVES STAFF ANALYSIS
BILL #: CS/HB 1411 Floating Solar Facilities
SPONSOR(S): Local Administration & Veterans Affairs Subcommittee, Avila
TIED BILLS: IDEN./SIM. BILLS: CS/SB 1338
REFERENCE ACTION ANALYST STAFF DIRECTOR or
BUDGET/POLICY CHIEF
1) Tourism, Infrastructure & Energy Subcommittee 15 Y, 0 N Walsh Keating
2) Local Administration & Veterans Affairs 16 Y, 0 N, As CS Leshko Miller
Subcommittee
3) Commerce Committee Walsh Hamon
SUMMARY ANALYSIS
Florida law declares that it is the intent of the Legislature to promote the development of renewable energy.
Current law states that solar energy is one of the fuel or energy sources, from which energy can be produced,
that qualifies as “renewable energy.”
The Community Planning Act (act) directs the manner in which local governments create and adopt their local
comprehensive plans. Current law requires solar facilities to be a permitted use in all agricultural land use
categories in a local government’s comprehensive plan and all agricultural zoning districts within an
unincorporated area.
Floating solar, also known as floatovoltaics, is a relatively new concept that refers to any type of solar array that
floats atop a body of water. Floating solar panels are affixed to a buoyant structure that keeps them above the
surface of the water. In recent years, different entities around Florida have deployed floating solar facilities.
The bill promotes the use of floating solar facilities by requiring each local government to allow these facilities as
a permitted use under certain conditions and amend its land development regulations to promote the use of
floating solar. Under the bill, counties and municipalities may adopt ordinances specifying buffer and landscaping
requirements for floating solar facilities, however, such requirements may not exceed the requirements for similar
uses involving the construction of other solar facilities that are permitted uses in agricultural land use categories
and zoning districts
The bill states that a floating solar facility may not be constructed in an Everglades Agricultural Area reservoir
project if the local governments involved with the project determine that the facility will have a negative impact
on that project.
Under the bill, the Office of Energy within the Department of Agriculture and Consumer Services is tasked with
submitting recommendations to the Legislature to provide a regulatory framework to private and public sector
entities that implement floating solar facilities.
The bill does not effect state or local government revenues or state government expenditures. The bill may have
an insignificant fiscal impact on local government expenditures.
The bill provides an effective date of July 1, 2022.
This docum ent does not reflect the intent or official position of the bill sponsor or House of Representatives .
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DATE: 2/15/2022
FULL ANALYSIS
I. SUBSTANTIVE ANALYSIS
A. EFFECT OF PROPOSED CHANGES:
Present Situation
Renewable Energy
Florida law declares that it is the intent of the Legislature to:
Promote the development of renewable energy;
Protect the economic viability of Florida’s existing renewable energy facilities;
Diversify the types of fuel used to generate electricity in Florida;
Lessen Florida’s dependence on natural gas and fuel oil for the production of electricity;
Minimize the volatility of fuel costs;
Encourage investment within the state;
Improve environmental conditions; and
Minimize the costs of power supply to electric utilities and their customers.1
Current law defines “renewable energy” as electrical energy produced from a method that
uses one or more of the following fuels or energy sources:
Hydrogen produced from sources other than fossil fuels;
Biomass;
Solar energy;
Geothermal energy;
Wind Energy;
Ocean energy; and
Hydroelectric power.2
Solar Facilities
Florida law defines the term “solar facility” as a production facility for electric power which:
Uses photovoltaic modules to convert solar energy to electricity that may be stored on site,
delivered to a transmission system, and consumed primarily offsite;
Consists principally of photovoltaic modules, a mounting or racking system, power inverters,
transformers, collection systems, battery systems, fire suppression equipment, and associated
components; and
May include accessory administration or maintenance buildings, electric transmission lines,
substations, energy storage equipment, and related accessory uses and structures. 3
A utility-scale solar generation system requires larger quantities of land per unit of power produced than
traditional power plants.4 Solar generation facilities require “at least [ten] times as much land per unit of
power produced than coal or natural gas-fired power plants.”5 As a result of the large scale nature of such
projects, siting solar facilities can be challenging and viewed as unpopular by those who do not want
these large projects near their homes.6
Local Land Development and Comprehensive Plans
1 S. 366.92, F.S. See also S. 377.601(2)(i), F.S.
2 S. 366.91, F.S.
3 S. 163.3205(2), F.S.
4 Samantha Gross, Renewables, land use, and local opposition in the United States ,
https://www.brookings.edu/research/renewables-land-use-and-local-opposition-in-the-united-states/ (last visited Feb. 15,
2022).
5 Id.
6 Id.
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The Community Planning Act (act) directs the manner in which local governments create and adopt
their local comprehensive plans.7 Comprehensive plans prescribe certain principles, guidelines,
standards, and strategies to allow for orderly and balanced future land development.8 Current law
outlines the required and optional elements of a comprehensive plan and includes provisions which
govern agricultural lands and practices.9
Current law requires solar facilities to be a permitted use in all agricultural land use categories in a local
government’s comprehensive plan and all agricultural zoning districts within an unincorporated area. 10
Solar facilities must comply with setback and landscaped buffer area criteria for similar uses in the
agricultural district and allows a county to adopt ordinances specifying buffer and landscaping
requirements for facilities.11 Such requirements may not exceed those for similar uses involving
construction of other facilities permitted in agricultural land use categories and zoning districts .12
Floating Solar Facilities
Floating solar, also known as floatovoltaics, is a relatively new concept that refers to any type of solar
array that floats atop a body of water. Floating solar panels are affixed to a buoyant structure that
keeps them above the surface of the water. Lakes, basins, and manmade bodies of water, such as
reservoirs, are ideal for floating solar, because the waters are generally calm compared to the ocean.
Since the technology was first patented in 2008, floating solar has predominately been installed in
countries such as Japan, China, and the U.K.13
In recent years, floating solar panels have made a splash in Florida waters. For example, the Altamonte
Electric Authority, which serves Altamonte Springs, Florida, unveiled a floating solar array that
generates one megawatt of electricity, making it the largest in Florida and the third largest in the United
States.14 Florida Power and Light Company partnered with Miami-Dade County to launch a 402-panel
floating solar installation near Miami International Airport.15 Orlando International Airport recently
unveiled its first floating solar array, which is a collection of 360 solar panels that can power about 14
homes.16
The Everglades Agricultural Area
The South Florida Water Management District and the U.S. Army Corps of Engineers are working on
the Everglades Agricultural Area Reservoir Project. The project aims to construct a treatment wetland
that will clean water and a reservoir that will store excess water from Lake Okeechobee. 17
The Office of Energy
The Legislature created the Office of Energy within the Department of Agriculture and Consumer
7 S. 163.3167(2), F.S.
8 S. 163.3177, F.S.
9 Ss. 163.3177 and 163.3162, F.S.
10 S. 163.3205(3), F.S.
11 S. 163.3205(3) and (4), F.S.
12 S. 163.3205(4), F.S.
13 Floating solar: what you need to k now, EnergySage, https://news.energysage.com/floating-solar-what -you-need-to-
know/ (last visited Feb. 15, 2022).
14 Altamonte Electric Utility, The City of Altamonte Springs Invests In Renewable Energy to Power the Future, p. 1,
available at http://www.altamonte.org/DocumentCenter/View/8800/AEU -Solar-A rray-Info-S heet (last visited Feb. 15,
2022).
15 Victoria Lewis, FPL launches nation's first floating solar array at Miami International Airport , WPTV (Jan. 29, 2020),
https://www.wptv.com/news/state/fpl-launches -nations-first-floating-solar-array -at-miami-international-airport (last visited
Feb. 15, 2022).
16 Jessica Albert, Orlando International Airport unveils its 1st floating solar array, Fox 35 Orlando (Dec. 10, 2020),
https://www.fox35orlando.com/news/mco-debuts-floating-solar-array (last visited Feb. 15, 2022).
17 Progress Continues on the Everglades Agricultural Area Reservoir Project , South Florida Water Management District,
https://www.sfwmd.gov/our-work/cerp-project-planning/eaa-reservoir (last visited Feb. 15, 2022).
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Services to act as the energy policy and program development office for the State of Florida. The Office
of Energy evaluates energy-related studies, analyses and stakeholder input to recommend energy
policies and programs that will move Florida toward a more diverse, stable, and reliable energy
portfolio.18
Effect of Proposed Changes
The bill promotes the use of floating solar facilities by requiring each local government to allow these
facilities as a permitted use under certain conditions and amend its land development regulations to
promote the use of floating solar.
The bill provides legislative findings that:
Floating solar facilities can be effective tools in harnessing energy in manmade bodies of water;
Siting floating solar facilities on wastewater treatment ponds, abandoned limerock mine areas,
and other water storage reservoirs is a beneficial use of those areas for many reasons; and
Siting floating solar facilities should be encouraged by local governments as appropriate uses of
water and land areas.
The bill defines “floating solar facility” as a solar facility, as defined in s. 163.3205(2), F.S., which is
located on wastewater treatment ponds, abandoned limerock mine areas, or other manmade water
storage reservoirs.
Under the bill, each local government must allow floating solar facilities as a permitted use in the
appropriate land use categories in its comprehensive plan. Each local government must amend its
land development regulations to promote the expanded use of floating solar facilities.
The bill allows counties and municipalities to adopt ordinances specifying buffer and landscaping
requirements for floating solar facilities, however, such requirements may not exceed the requirements
for similar uses involving the construction of other solar facilities that are permitted uses in agricultural
land use categories and zoning districts.
Under the bill, a floating solar facility may not be constructed in an Everglades Agricultural Area
reservoir project if the local governments involved with the project determine that the facility will have a
negative impact on that project.
The bill tasks the Office of Energy within the Department of Agriculture and Consumer Services with
submitting recommendations to the Legislature by December 31, 2022, to provide a regulatory
framework to private and public sector entities that implement floating solar facilities.
18 Office of Energy,Florida Department of Agriculture and Consumer Services, https://www.fdacs.gov/Divisions-
Offices/Energy (last visited Feb. 15, 2022).
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B. SECTION DIRECTORY:
Section 1: Creates s. 163.32051, F.S., relating to floating solar facilities.
Section 2: Provides an effective date of July 1, 2022.
II. FISCAL ANALYSIS & ECONOMIC IMPACT STATEMENT
A. FISCAL IMPACT ON STATE GOVERNMENT:
1. Revenues:
None.
2. Expenditures:
None.
B. FISCAL IMPACT ON LOCAL GOVERNMENTS:
1. Revenues:
None.
2. Expenditures:
The bill may have an insignificant impact on local government expenditures due to the requirement
for local governments to amend their land development regulations.
C. DIRECT ECONOMIC IMPACT ON PRIVATE SECTOR:
None.
D. FISCAL COMMENTS:
None.
III. COMMENTS
A. CONSTITUTIONAL ISSUES:
1. Applicability of Municipality/County Mandates Provision:
Not applicable. This bill does not appear to require counties or municipalities to spend funds or take
action requiring the expenditure of funds; reduce the authority that counties or municipalities have to
raise revenues in the aggregate; or reduce the percentage of state tax shared with counties or
municipalities.
2. Other:
None.
B. RULE-MAKING AUTHORITY:
The bill does not require or authorize rulemaking.
C. DRAFTING ISSUES OR OTHER COMMENTS:
None.
IV. AMENDMENTS/COMMITTEE SUBSTITUTE CHANGES
On February 7, 2022, the Local Administration & Veterans Affairs Subcommittee adopted an amendm ent
and reported the bill favorably as a committee substitute. The amendment allows for a municipality to adopt
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DATE: 2/15/2022
an ordinance regarding buffer and landscaping requirements for floating solar facilities. The amendment
removes the Lake Belt Area as an area where these facilities cannot be constructed if the local government
determines it will have a negative impact. Additionally, the amendment limits the local government input
regarding construction in an Everglades Agricultural Area reservoir project to those governments involved
in the project and specifies they must find that there will be a negative impact on the project, as opposed to
just the area.
This analysis is drafted to the committee substitute as passed by the Local Administration & Veterans
Affairs Subcommittee.
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F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
CS/HB 1411 2022
1 A bill to be entitled
2 An act relating to floating solar facilities; creating
3 s. 163.32051, F.S.; providing legislative findings
4 regarding floating solar facilities; defining the term
5 "floating solar facility"; requiring a floating solar
6 facility to be a permitted use in certain land use
7 categories; requiring local governments to promote
8 expanded uses of floating solar facilities by taking
9 specified actions; authorizing a county or
10 municipality to specify buffer and landscaping
11 requirements; providing exceptions to the construction
12 of floating solar facilities; requiring the Office of
13 Energy within the Department of Agriculture and
14 Consumer Services to submit specified recommendations
15 to the Legislature regarding floating solar facilities
16 for certain entities; providing an effective date.
17
18 Be It Enacted by the Legislature of the State of Florida:
19
20 Section 1. Section 163.32051, Florida Statutes, is created
21 to read:
22 163.32051 Floating solar facilities.—
23 (1)(a) The Legislature finds that floating solar
24 facilities, also known as "floatavoltaics," can be effective
25 tools in harnessing energy in manmade bodies of water.
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hb1411-01-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 1411 2022
26 (b) The Legislature finds that siting floating solar
27 facilities on wastewater treatment ponds, abandoned limerock
28 mine areas, and other water storage reservoirs are beneficial
29 uses of those areas for many reasons, including the fact that
30 the water has a cooling effect on the solar panels which can
31 boost power production and the panels help decrease the amount
32 of water lost to evaporation and the formation of harmful algal
33 blooms.
34 (c) Therefore, the Legislature finds that the siting of
35 floating solar facilities should be encouraged by local
36 governments as appropriate uses of water and land areas.
37 (2) For purposes of this section, the term "floating solar
38 facility" means a solar facility as defined in s. 163.3205(2)
39 which is located on wastewater treatment ponds, abandoned
40 limerock mine areas, or other manmade water storage reservoirs.
41 (3) A floating solar facility shall be a permitted use in
42 the appropriate land use categories in each local government
43 comprehensive plan and each local government must amend its land
44 development regulations to promote the expanded use of floating
45 solar facilities.
46 (4) A county or municipality may adopt an ordinance
47 specifying buffer and landscaping requirements for floating
48 solar facilities. The requirements may not exceed the
49 requirements for similar uses involving the construction of
50 other solar facilities that are permitted uses in agricultural
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F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
CS/HB 1411 2022
51 land use categories and zoning districts.
52 (5) Notwithstanding subsections (3) and (4), a floating
53 solar facility may not be constructed in an Everglades
54 Agricultural Area reservoir project if the local governments
55 involved with the project determine that the floating solar
56 facility will have a negative impact on that project.
57 (6) The Office of Energy within the Department of
58 Agriculture and Consumer Services shall develop and submit
59 recommendations to the Legislature by December 31, 2022, to
60 provide a regulatory framework to private and public sector
61 entities that implement floating solar facilities.
62 Section 2. This act shall take effect July 1, 2022.
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hb1411-01-c1
COMMERCE COMMITTEE
HB 1411 by Rep. Avila
Floating Solar Facilities
AMENDMENT SUMMARY
February 17, 2022
Amendment 1 by Rep. Avila (Lines 23-40):
• Clarifies that a “floating solar facility” includes a solar facility located on a
stormwater treatment pond or a reclaimed water pond and conforms the
legislative findings to reflect this change.
COMMITTEE/SUBCOMMITTEE AMENDMENT
Bill No. CS/HB 1411 (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 Avila offered the following:
3
4 Amendment
5 Remove lines 23-40 and insert:
6 (1)(a) The Legislature finds that floating solar
7 facilities, also known as "floatavoltaics," can be effective
8 tools in harnessing energy in bodies of water that have been
9 permitted for storage.
10 (b) The Legislature finds that siting floating solar
11 facilities on wastewater treatment ponds, abandoned limerock
12 mine areas, stormwater treatment ponds, reclaimed water ponds,
13 and other water storage reservoirs are beneficial uses of those
14 areas for many reasons, including the fact that the water has a
15 cooling effect on the solar panels which can boost power
16 production and the panels help decrease the amount of water lost
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Page 1 of 2
COMMITTEE/SUBCOMMITTEE AMENDMENT
Bill No. CS/HB 1411 (2022)
Amendment No. 1
17 to evaporation and the formation of harmful algal blooms.
18 (c) Therefore, the Legislature finds that the siting of
19 floating solar facilities should be encouraged by local
20 governments as appropriate uses of water and land areas.
21 (2) For purposes of this section, the term "floating solar
22 facility" means a solar facility as defined in s. 163.3205(2)
23 which is located on wastewater treatment ponds, abandoned
24 limerock mine areas, stormwater treatment ponds, reclaimed water
25 ponds, or other water storage reservoirs.
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HB 1469
HOUSE OF REPRESENTATIVES STAFF ANALYSIS
BILL #: HB 1469 Transportation Facility Designations
SPONSOR(S): Grieco
TIED BILLS: IDEN./SIM. BILLS: SB 1682
REFERENCE ACTION ANALYST STAFF DIRECTOR or
BUDGET/POLICY CHIEF
1) Tourism, Infrastructure & Energy Subcommittee 15 Y, 0 N Walsh Keating
2) Infrastructure & Tourism Appropriations 12 Y, 0 N Davis Davis
Subcommittee
3) Commerce Committee Walsh Hamon
SUMMARY ANALYSIS
Under current law, the Legislature may designate a transportation facility, such as a bridge, interchange, or
portion of a road, for honorary or memorial purposes or to distinguish a particular facility. Legislative
designations do not change the official names of the facilities. The Department of Transportation (DOT) erects
markers for each designation, but may not do so until the appropriate city or county commission passes a
resolution in support of the designation.
The bill honors the 98 people who died in the Champlain Towers South collapse in Surfside, Florida, by
designating “98 Points of Light Road” in Miami-Dade County.
The bill will have an insignificant negative fiscal impact to the State Transportation Trust Fund associated with
erecting suitable markers for the designation. The cost can be absorbed within DOT’s existing resources.
The bill provides an effective date of July 1, 2022.
This docum ent does not reflect the intent or official position of the bill sponsor or House of Representatives .
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DATE: 2/15/2022
FULL ANALYSIS
I. SUBSTANTIVE ANALYSIS
A. EFFECT OF PROPOSED CHANGES:
Present Situation
Transportation Facility Designations
Under current law, the Legislature may designate a transportation facility, such as a bridge,
interchange, or portion of a road, for honorary or memorial purposes or to distinguish a particular
facility. Legislative designations do not change the official names of the designated facilities, and do not
require local governments or private entities to change street signs, mailing addresses, or 911
emergency telephone-number system listings to account for the designations.1
Current law sets standards for the naming of state buildings and other facilities. The law provides that
except as specifically provided by law, state buildings, roads, bridges, parks, recreational complexes,
and other similar facilities may not be named for a living person.2
Road Markers
The Department of Transportation (DOT) must place a marker at each terminus or intersection of a
designated road, bridge, or other transportation facility and erect other markers it deems appropriate for
the facility.3 Road markers may not be erected until the appropriate city or county commission passes a
resolution in support of a particular designation. Additionally, if a designated facility extends through
multiple cities or counties, a resolution must be passed by each affected local government before the
road markers can be erected by DOT.4
Champlain Towers South
In the early morning hours of June 24, 2021, a portion of Champlain Towers South collapsed. The
condominium building located in Surfside, Florida, had 136 units, of which 55 were destroyed during the
collapse. At the time, many of the building’s units were occupied by residents who were asleep in their
beds.5 After the collapse, rescue crews spent 29 days searching for victims in the rubble. 6 The final
victim was identified on July 26, 2021, which brought the death toll to 98. 7,8
Effect of the Bill
That portion of S.R. A1A/Collins Avenue between 87th Terrace and 88th Street in Miami-Dade County is
designated as “98 Points of Light Road.” The bill requires DOT to erect suitable markers.
B. SECTION DIRECTORY:
Section 1: Designates “98 Points of Light Road.”
1 S. 334.071(1), F.S.
2 S. 267.062(1), F.S.
3 S. 334.071(2), F.S.
4 S. 334.071(3), F.S.
5 Gina Harkins, What you need to k now about the Florida condo collapse as the search for survivors continues and probe
begins, The Washington Post (July 10, 2021), https://www.washingtonpost.com/nation/2021/06/25/ florida -condo-collapse-
what-you-should-know/ (last visited Feb. 15, 2022).
6 Xander Landen, Surfside Rescue Crews Saluted as Mission Ends 29 Days After Condo Collapse, Newsweek (Jul. 23,
2021), https://www.newsweek.com/surfside-rescue-crews-salut ed-mission-ends-29-days-aft er-condo-collapse-1612697
(last visited Feb. 15, 2022).
7 Remembering those who died in the Champlain Towers condo collapse in Surfside, Florida, The Palm Beach Post (Aug.
11, 2021), https://www.palmbeachpost.com/in-depth/news/2021/06/ 28/surfside-miami-florida-building-collapse-victims-
who-died-obituaries/5365626001/ (last visited Feb. 15, 2022).
8 See also Connie Ogle, Remembering the victims of the Surfside tower collapse, Miami Herald (Dec. 20, 2021),
https://www.miamiherald.com/news/local/community/miami-dade/miami-beach/article253088463.html (last visited Feb. 15,
2022) (provides information about the people who died in the Champlain Towers South collapse).
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Section 2: Provides an effective date of July 1, 2022.
II. FISCAL ANALYSIS & ECONOMIC IMPACT STATEMENT
A. FISCAL IMPACT ON STATE GOVERNMENT:
1. Revenues:
None.
2. Expenditures:
DOT estimates a cost of $1,040 for the appropriate markers, which provides for two signs per
designation at $520 per sign.9 Therefore, the bill has an estimated negative fiscal impact of $1,040
to the State Transportation Trust Fund. This cost can be absorbed within existing DOT resources.
B. FISCAL IMPACT ON LOCAL GOVERNMENTS:
1. Revenues:
None.
2. Expenditures:
None.
C. DIRECT ECONOMIC IMPACT ON PRIVATE SECTOR:
None.
D. FISCAL COMMENTS:
None.
III. COMMENTS
A. CONSTITUTIONAL ISSUES:
1. Applicability of Municipality/County Mandates Provision:
Not applicable. This bill does not appear to affect county or municipal governments.
2. Other:
None.
B. RULE-MAKING AUTHORITY:
The bill does not require or authorize rulemaking.
C. DRAFTING ISSUES OR OTHER COMMENTS:
None.
IV. AMENDMENTS/COMMITTEE SUBSTITUTE CHANGES
Not applicable.
9 Email from Amanda Marsh, Legislative Analyst, Florida Department of Transportation, FDOT Memorial Roadway
Designation Sign Estimate, (Sep. 15, 2021).
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F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
HB 1469 2022
1 A bill to be entitled
2 An act relating to transportation facility
3 designations; providing an honorary designation of a
4 certain transportation facility in a specified county;
5 directing the Department of Transportation to erect
6 suitable markers; providing an effective date.
7
8 Be It Enacted by the Legislature of the State of Florida:
9
10 Section 1. 98 Points of Light Road designated; Department
11 of Transportation to erect suitable markers.—
12 (1) That portion of S.R. A1A/Collins Avenue between 87th
13 Terrace and 88th Street in Miami-Dade County is designated as
14 "98 Points of Light Road."
15 (2) The Department of Transportation is directed to erect
16 suitable markers designating 98 Points of Light Road as
17 described in subsection (1).
18 Section 2. This act shall take effect July 1, 2022.
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hb1469-00
HM 1531
HOUSE OF REPRESENTATIVES STAFF ANALYSIS
BILL #: HM 1531 Free Trade Agreement Between the United States and the United Kingdom
SPONSOR(S): Barnaby
TIED BILLS: IDEN./SIM. BILLS: CS/SM 174
REFERENCE ACTION ANALYST STAFF DIRECTOR or
BUDGET/POLICY CHIEF
1) Tourism, Infrastructure & Energy Subcommittee 14 Y, 0 N Neuffer Keating
2) Commerce Committee Neuffer Hamon
SUMMARY ANALYSIS
The United Kingdom (UK) officially left the European Union (EU) Single Market and Customs Union on January
31, 2020.
Effective on its official departure from the EU, any EU trade agreements, including trade agreements with the
United States (US), no longer applied to the UK. Three separate trade agreements were reached between the
UK and EU prior to the UK’s official exit from the EU.
As the sixth-largest economy in the world and a major financial center, the UK maintains a vital role in assuring
economic stability across the globe. On December 31, 2020, the US and UK entered into the US-UK Trade
and Investment Working Group to ensure no disruption to trade for specific products resulted from Brexit.
Since its decision to leave the EU, the UK has conducted negotiations with the US in an effort to form new,
broader free trade agreements, but negotiations have not been completed.
The US-UK bilateral investment relationship is the largest in the world. In 2019, the US foreign direct
investment (FDI) in the UK was $851.4 billion, and the UK FDI in the US was $505.1 billion. More than 1.27
million Americans are employed by UK-owned firms based in the US. In 2019, US exports of goods and
services to the UK was worth $147.4 billion, and imports of goods and services from the UK was worth $125.6
billion. In 2018, 67,800 citizens of Florida were employed by UK subsidiaries. The UK ranked as the third
largest export market for Florida, with a total value of goods and services exports in 2019 of $5.4 billion.
The memorial urges the Congress of the United States to reenact Trade Promotion Authority laws to guide the
executive branch in pursuing trade agreements. Additionally, it urges the executive branch to complete a timely
and successful free trade negotiation with the UK for Congress to ratify.
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.
This memorial does not have a fiscal impact on 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: h1531b.COM
DATE: 2/15/2022
FULL ANALYSIS
I. SUBSTANTIVE ANALYSIS
A. EFFECT OF PROPOSED CHANGES:
Present Situation
Current Trade Situation
On June 23, 2016, the United Kingdom (UK) held a referendum on the issue of whether to leave the
European Union (EU), which received support from 51.89% of the voters.1 This referendum would later
become known as Brexit.2 The UK officially left the EU Single Market and Customs Union on January
31, 2020.3
Effective on its official departure from the EU, any EU trade agreements, including trade agreements
with the US, no longer applied to the UK. Three separate trade agreements were reached between the
UK and EU prior to the UK’s official exit from the EU.
As the sixth-largest economy in the world and a major financial center, the UK maintains a vital role in
assuring economic stability across the globe. The instability caused by Brexit meant the UK sought to
reinforce its close ties with the United States (US).4 On December 31, 2020, the US and UK entered
into the US-UK Trade and Investment Working Group to ensure Brexit did not disturb the trade of
specific products.5 Since its decision to leave the EU, the UK has conducted negotiations with the US in
an effort to form new, broader, free trade agreements. As the US and UK entered trade agreement
negotiations, Congress expressed its awareness of the implications the UK’s withdrawal from the EU
will mean for the global economy, trade relations, and other political and security issues. 6 That
recognized, the US has expressed grave concern over the impact the 2020 Brexit treaty could have on
the Belfast Agreement, commonly known as the Good Friday Agreement.
The Belfast Agreement was signed on April 10, 1998. It led to the establishment of a system of
government in Northern Ireland and related institutions. 7 The agreement created a political framework
for Northern Ireland centered on power-sharing between competing groups.8 Of importance was the
confirmation that Northern Ireland was part of the UK, but a stipulation set forth that Ireland could be
united only if supported by a vote in both Northern Ireland and the Republic of Ireland. 9 When the UK
voted to leave the EU, the border between Northern Ireland and the Republic of Ireland caused
concern. Since the Belfast Agreement, the border between these two countries, which was once
heavily militarized, has become almost invisible. Following Brexit, an agreement was reached between
1 See Government of the Netherlands, Questions and Answers on Brexit,
https://www.government.nl/topics/brexit/question -and-answer/ what-is-brexit (last visited January 28, 2022).
2 See Id. (explaining the term is a combination of ‘Britain’ and ‘exit’).
3 See Alasdair Sanford, Post-Brexit Guide: Where Are We Now – And How Did We Get Here?, Euronews (January 17,
2022), https://www.euronews.com/2021/06/23/ brexit-draft-deal-first-of-many -hurdles-to-a-smooth-exit (last visited January
28, 2022).
4 Congressional Research Service, The United Kingdom: Back ground, Brexit, and Relations with the United States
(updated April 1, 2021).
5 See Office of the United States Trade Representative, U.S.-UK Trade Agreement Negotiations,
https://ustr.gov/countries-regions/europe-middle-east/europe/ united-kingdom/us -uk-trade-agreement-negotiations (last
visited January 28, 2022).
6 Id.
7 See Citizens Information, The Good Friday Agreement, March 31, 2021,
https://www.citizensinformation.ie/en/government_in_ireland/ireland_and_the_uk/good_friday_agreement.html (last visited
January 25, 2022).
8 See Charles Landow and James McBride, Moving Past the Troubles: The Future of Northern Ireland Peace, Council on
Foreign Relations, April 23, 2021, https://www.cfr.org/backgrounder/moving -past-troubles-future-northern-ireland-peace
(last visited January 25, 2022).
9 Id.
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the EU and UK to avoid the reappearance of a hard border. 10 Stipulated in the agreement, there would
be no new check on goods crossing the border between Northern Ireland and the Republic of Ireland. 11
The current US administration has made clear that a trade deal with the UK will only be considered if
Brexit does not undermine the Belfast Agreement.12 Additional sticking points of the trade agreement
negotiations include the tariffs on steel and aluminum imposed during the previous US administration,
as well as the UK’s regulations on chicken washed in chlorine. 13
US Trade Relations with the UK
The US-UK bilateral investment relationship is one of the largest in the world. In 2019, US foreign direct
investment (FDI) in the UK was $851.4 billion14, and UK FDI in the US was $505.1 billion.15 More than
1.27 million Americans are employed by UK-owned firms based in the US.16 In 2019, US exports of
goods and services to the UK was worth $147.4 billion17, and imports of goods and services from the
UK was worth $125.6 billion.18
In 2018, 67,800 citizens of Florida were employed by UK subsidiaries. 19 The UK ranked as the third
largest export market for Florida, with a total value of exports of goods and services in 2019 reaching
$5.4 billion.20
Trade Promotion Authority
The President of the US has the authority to negotiate treaties with foreign countries, but Congress has
the sole authority to regulate international trade.21 Trade Promotion Authority (TPA) is a time-limited
authority that Congress may use to establish trade negotiating objectives, notification and consultation
requirements, and procedures to consider when implementing legislation for certain reciprocal trade
agreements.22 TPA does not provide new power to the executive branch, but is a legislative procedure
written by Congress, though which it defines US negotiating objectives and sets forth a detailed
oversight and consultation process to be followed during trade negotiations. 23 TPA acts as a fast-track
process made available by Congress to the President for limited periods to enable legislation to
approve and implement certain international trade agreements to be considered under expedited
10 Nidirect, EU Exit and the Northern Ireland Protocol, nidirect government services,
https://www.nidirect.gov.uk/articles/eu-exit-and-northern-ireland-prot ocol (last visited January 25, 2020).
11 Id.
12 Megan Boyanton, How the Post-Brexit U.S.-U.K. Trade Deal Lost Momentum, The Washington Post, October 14, 2021,
https://www.washingtonpost.com/business/how-thepost-brexit-us-uk -trade-deal-lost-momentum/2021/10/14/ 8216a67c-
2cc5-11ec-b17d-985c186de338_story.html (last visited January 25, 2022).
13 Id.
14 Office of the United States Trade Representative, United Kingdom, United States Government,
https://ustr.gov/countries-regions/europe-middle-east/europe/ united-kingdom (last visited January 28, 2022).
15 Id.
16 United States Department of State, U.S. Relations with United Kingdom, United States Government (February 6, 2020),
https://www.state.gov/u-s-relations-with-united-kingdom/ (last visited January 28, 2022).
17 Office of the United States Trade Representative, supra note 18.
18 Id.
19 Enterprise Florida, United Kingdom, https://www.enterpriseflorida.com/for-international-companies/international-
offices/uk/#:~:text=Florida%2DUK%20Bilateral%20Merchandise%20Trade, -
Both%20the%20United&text=A%20Vital%20Trade% 20Relationship% 3A%20The,in% 202019%20reaching%20% 243.5%2
0billion (last visited January 28, 2022).
20 Gov.uk, UK-Florida Trade and Investment Highlights, Government Digital Service (updated June 25, 2021),
https://www.gov.uk/government/publications/uk-florida-trade-and-investment-highlights/uk-florida-trade-and-investment-
highlights (last visited January 28, 2022).
21 U.S. Const. art. 1, § 8.
22 Congressional Research Service, Trade Promotion Authority (TPA), December 14, 2020.
23 Office of the United States Trade Representative, Trade Promotion Authority, United States Government,
https://ustr.gov/trade-topics/trade-promotion-authority (last visited January 28, 2022).
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legislative procedures.24 Under TPA, Congress retains the authority to review and decide whether any
proposed US trade agreement will be implemented.25
The most recent TPA was authorized through July 1, 2021, by the Bipartisan Congressional Trade
Priories Act of 2015.26
Free Trade Agreements
A Free Trade Agreement (FTA) is an agreement between two or more countries where the signed
parties agree on certain trade obligations for the purpose of reducing barriers to trade.27 As a result of
reduced barriers, a more stable and transparent trading environment is created for business actors.
The US currently has FTAs with 20 countries, of which the EU and UK are not included. 28 In 2013, the
US and EU attempted negotiations for the Transatlantic Trade and Investment Partnership (TTIP) but
ended in 2016 without conclusion.29
Effect of the Memorial
The memorial urges:
The Congress of the United States to reenact Trade Promotion Authority laws to guide the
executive branch in pursuing trade agreements
The executive branch to complete a timely and successful free trade negotiation with the UK
The Congress of the United States to ratify the agreement
Copies of the memorial will be sent 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.
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.
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:
24 Congressional Research Center, Trade Promotion Authority (TPA): Frequently Ask ed Questions (updated June 21,
2019).
25 Id.
26 Id.
27 International Trade Administration, Free Trade Agreement Overview, United States Department of Commerce,
https://www.trade.gov/free-t rade-agreement-overview (last visited January 28, 2022).
28 Id.
29 European Commission, United States (updated September 6, 2021), https://ec.europa.eu/trade/policy/countries-and-
regions/countries/united-states/#:~:text=Despite%20the%20US%20being% 20the,at%20the%20end%20of% 202016. (last
visited January 28, 2022).
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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:
None.
B. RULE-MAKING AUTHORITY:
This memorial does not require or authorize rulemaking.
C. DRAFTING ISSUES OR OTHER COMMENTS:
None.
IV. AMENDMENTS/COMMITTEE SUBSTITUTE CHANGES
Not applicable.
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DATE: 2/15/2022
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 1531 2022
1 House Memorial
2 A memorial to the Congress of the United States and
3 the President of the United States encouraging
4 Congress to reenact Trade Promotion Authority laws to
5 guide the executive branch, urging the executive
6 branch to negotiate a comprehensive and mutually
7 beneficial free trade agreement between the United
8 States and the United Kingdom, and urging Congress to
9 ratify such agreement.
10
11 WHEREAS, the United States is the United Kingdom's largest
12 single-country trade partner with a relationship valued at over
13 $200 billion; both countries are each other's largest foreign
14 direct investors, having approximately $1 trillion invested in
15 each other's economies; and the UK-US Trade and Investment
16 Working Group has laid the groundwork to strengthen trade and
17 investment ties for the present and in the future, including
18 through the use of a free trade agreement, and
19 WHEREAS, expansion of global trade, especially with the
20 United Kingdom, is of vital importance to the growth of the
21 United States' economy, small business participation in the
22 international marketplace, and job creation, and
23 WHEREAS, the state would benefit greatly from the
24 ratification of a comprehensive free trade agreement, which,
25 since the United Kingdom is currently the largest foreign direct
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26 employer in the state and is the second largest market for
27 tourism, would create employment opportunities for residents of
28 the state as a direct result of removing and reducing b arriers
29 to trade and free markets, and
30 WHEREAS, the successful implementation of a free trade
31 agreement will increase exports to the United Kingdom from the
32 state, and
33 WHEREAS, the United States Constitution grants the United
34 States Congress exclusive authority to regulate commerce with
35 foreign nations, and
36 WHEREAS, the negotiation of a successful free trade
37 agreement between the United States and the United Kingdom will
38 require bipartisan cooperation between state, federal, and
39 foreign governments, NOW, THEREFORE,
40
41 Be It Resolved by the Legislature of the State of Florida:
42
43 That Congress of the United States is requested to reenact
44 Trade Promotion Authority laws to guide the executive branch in
45 pursuing trade agreements, the executive branch is requ ested to
46 complete a timely and successful negotiation of a comprehensive
47 and mutually beneficial free trade agreement between the United
48 States and the United Kingdom, and the Congress of the United
49 States is further requested to ratify such agreement.
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50 BE IT FURTHER RESOLVED that copies of this memorial be
51 dispatched to the President of the United States, to the
52 President of the United States Senate, to the Speaker of the
53 United States House of Representatives, and to each member of
54 the Florida delegation to the United States Congress.
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