Meeting Packet — Commerce Committee, The Florida House of Representatives (February 23, 2022)
Summary
This is the meeting packet of The Florida House of Representatives Commerce Committee for Wednesday, February 23, 2022, 9:00 AM to 12:00 PM, at Webster Hall (212 Knott), with Chris Sprowls as Speaker and Blaise Ingoglia as Chair. The agenda lists consideration of CS/HB 91 Digital License Plates, CS/CS/HB 353 Mortgage Payoff Letters, CS/CS/HB 389 Money Services Businesses, CS/HB 503 Insurance, HB 951 Domestic Surplus Lines Insurers, and HB 7063 Identification Cards, among others, plus five proposed committee substitutes. The staff analysis of CS/HB 91 says the bill would require DHSMV to allow digital license plates in lieu of physical plates by October 1, 2023, and notes that one provider, Reviver, prices its plates starting at $899. The packet also includes a committee amendment to PCS for CS/HB 741 on net metering, with an effective date of July 1, 2022.
Summary drafted by a model from the document's text below and checked by script against that text before publication. It is a navigation aid, not a reading of what the document proves. Where AI is used
Cite this document
“Meeting Packet — Commerce Committee, The Florida House of Representatives (February 23, 2022).”
Archived at Pandemic Darlings, https://pandemicdarlings.com/source-documents/2022-02-23-3098-commerce-committee-meeting-packets-mtg13492-fe6a0224b0/
, SHA-256 bd3fa212bdcfee12fa5ebe288fb789f6aab61a6e2c04b0759eed909bc57d0404.Full text
Commerce Committee
Wednesday, February 23, 2022
9:00 AM - 12:00 PM
Webster Hall (212 Knott)
Meeting Packet
Chris Sprowls Blaise Ingoglia
Speaker Chair
The Florida House of Representatives
Commerce Committee
Chris Sprowls Blaise Ingoglia
Speaker Chair
Meeting Agenda
Wednesday, February 23, 2022
9:00 AM – 12:00 PM
Webster Hall (212 Knott)
I. Call to Order
II. Roll Call
III. Welcome and Opening Remarks
IV. Consideration of the following bill(s):
• CS/HB 91 Digital License Plates by Tourism, Infrastructure & Energy Subcommittee,
Duran
• CS/CS/HB 353 Mortgage Payoff Letters by Civil Justice & Property Rights
Subcommittee, Insurance & Banking Subcommittee, Fabricio
• CS/HB 375 Structural Engineering Recognition Program for Professional Engineers
by Regulatory Reform Subcommittee, Toledo, Silvers
• CS/CS/HB 389 Money Services Businesses by State Administration & Technology
Appropriations Subcommittee, Insurance & Banking Subcommittee, Zika
• CS/HB 503 Insurance by Insurance & Banking Subcommittee, Gregory
• CS/HB 557 Fire Investigator Cancer Treatment Benefits by Government Operations
Subcommittee, Salzman
• CS/CS/HB 749 Fraud Prevention by State Administration & Technology
Appropriations Subcommittee, Insurance & Banking Subcommittee, Clemons
303 House Office Building, 402 South Monroe Street, Tallahassee, FL 32399-1300
(850) 717-4870
• CS/CS/HB 763 Tax Exemptions for Charges for Private Investigators by Ways &
Means Committee, Regulatory Reform Subcommittee, Casello, Caruso
• CS/HB 785 Two-way Radio Communication Enhancement Systems by Insurance &
Banking Subcommittee, Botana
• CS/CS/HB 837 Hurricane Loss Mitigation Program by Infrastructure & Tourism
Appropriations Subcommittee, Insurance & Banking Subcommittee, Willhite
• CS/HB 871 Department of Highway Safety and Motor Vehicles by Infrastructure &
Tourism Appropriations Subcommittee, Brannan
• CS/HB 915 Commercial Motor Vehicle Registration by Tourism, Infrastructure &
Energy Subcommittee, Melo
• HB 951 Domestic Surplus Lines Insurers by Gregory
• CS/CS/HB 1095 Telephone Solicitation by Civil Justice & Property Rights
Subcommittee, Regulatory Reform Subcommittee, Beltran
• CS/CS/HB 1121 Pub. Rec./Crash Reports and Traffic Citations by Government
Operations Subcommittee, Tourism, Infrastructure & Energy Subcommittee, Brannan
• CS/HB 1307 Citizens Property Insurance Corporation by Insurance & Banking
Subcommittee, Gregory, Giallombardo
• HB 7063 Identification Cards by Public Integrity & Elections Committee, Perez
Consideration of the following proposed committee substitute(s):
• PCS for CS/HB 67 -- Specialty License Plates
• PCS for CS/HB 157 – Transportation
• PCS for HB 315 -- Transportation Facility Designations
• PCS for CS/HB 423 -- Building Regulation
• PCS for CS/HB 741 -- Net Metering
V. Closing Remarks
VI. Adjournment
CS/HB 91
HOUSE OF REPRESENTATIVES STAFF ANALYSIS
BILL #: CS/HB 91 Digital License Plates
SPONSOR(S): Tourism, Infrastructure & Energy Subcommittee, Duran and others
TIED BILLS: IDEN./SIM. BILLS: CS/SB 1178
REFERENCE ACTION ANALYST STAFF DIRECTOR or
BUDGET/POLICY CHIEF
1) Tourism, Infrastructure & Energy Subcommittee 16 Y, 0 N, As CS Walsh Keating
2) Commerce Committee Walsh Hamon
SUMMARY ANALYSIS
Current law requires motor vehicle license plates to be made out of metal retroreflective material and meet
certain statutory requirements regarding size and number of characters allowed on the plate. License plates
must be securely fastened to a vehicle and be free of defacement, mutilation, grease, and other obscuring
matter, so that the plate is always plainly visible and legible. The Department of Highway Safety and Motor
Vehicles (DHSMV) may conduct a pilot program on government vehicles to evaluate alternative license plates.
Digital license plates are dynamic screens, which may be used to replace the current metal license plate. They
are able to display information such as a license plate number and annual validation of the current license
plate. A digital license plate may also be used for applications such as electronic tolling and broadcasting
emergency alerts.
The bill eliminates DHSMV’s authority to evaluate alternative license plates through a pilot program . The bill
defines digital license plate as an electronic display that is designed to display the information required by law
to be included on a physical license plate, designed to be placed on a motor vehicle in lieu of a physical license
plate, and has been determined by the Department of Transportation to have a display that is readable by
current automated license plate readers. The bill requires DHSMV to allow a registered motor vehicle to be
equipped with a digital license plate in lieu of a physical license plate by October 1, 2023, pursuant to a
contract between DHSMV and a digital license plate provider. DHSMV is authorized to adopt implementing
rules.
The bill provides that except as otherwise specified in the bill or a DHSMV rule, a digital license plate is subject
to Florida’s laws applicable to a physical license plate; however, digital license plates are exempt from the
statutory design requirements. The bill requires that, before purchasing a digital license plate, the vehicle
owner must purchase a metal license plate from DHSMV and pay all applicable motor vehicle fees.
The bill authorizes DHSMV to contract with digital license plate providers. DHSMV may authorize the display of
a plate number and validation sticker on a digital license plate. DHSMV may authorize the use of digital license
plates for toll collection, if approved by the Department of Transportation or other appropriate tolling authority,
and parking permits. DHSMV may establish procedures for displaying emergency alerts, static logo displays,
and other displays on the license plate. The bill also provides requirements for the digital license plate and
requires providers to maintain an inventory of digital license plates, make available digital versions of each
specialty license plate, and update the vehicle’s registration in real time.
The bill does not appear to impact state or local government revenues or local government expenditures. The
bill appears to have an indeterminate impact on state government expenditures, depending on whether
DHSMV is expected to program connectivity.
The bill is effective upon becoming a law.
This docum ent does not reflect the intent or official position of the bill sponsor or House of Representatives .
STORAGE NAME: h0091b.COM
DATE: 2/21/2022
FULL ANALYSIS
I. SUBSTANTIVE ANALYSIS
A. EFFECT OF PROPOSED CHANGES:
Present Situation
Florida law requires motor vehicle registration license plates to be made of metal specially treated with
a retroreflection material. The license plate must be designed to increase nighttime visibility and
legibility and must be at least 6 inches tall and not less than 12 inches wide, unless a plate with
reduced dimensions is deemed necessary by the Department of Highway Safety and Motor Vehicles
(DHSMV) to accommodate motorcycles, mopeds, or similar smaller vehicles. Annual validation stickers
must also be treated with a retroreflection material and must adhere to the license plate. 1
The license plate must be imprinted with a combination of bold letters and numerals, not to exceed
seven digits, so as to identify the license plate number. The license plate must be imprinted with the
word “Florida” at the top and the name of the county in which it is sold, the state motto, or the words
“Sunshine State” at the bottom. Any county may, upon majority vote of the county commission, elect to
have the county name removed from the license plates sold in that county. If the county votes as such,
the state motto or the words “Sunshine State” must be printed in lieu of the county name. 2
Current law requires that every vehicle display a license plate securely fastened to the vehicle’s rear 3 in
a manner to prevent the plate from swinging. All letters, numerals, printing, writing, the registration
decal, and the alphanumeric designation of the registration license plate must be clear, distinct, and
free from defacement, mutilation, grease, and other obscuring matter, so that the plate is always plainly
visible and legible from 100 feet away.4
Florida law provides for the expiration of a motor vehicle registration and the required renewal. Law
provides penalties for operating a motor vehicle without a registration license plate or validation sticker.
The penalties are as follows:
Any person whose motor vehicle or mobile home registration has been expired for a period of
six months or less commits a noncriminal traffic infraction, punishable as a nonmoving violation.
Any person whose motor vehicle or mobile home registration has been expired for more than
six months, upon a first offense, is subject to the penalty provided in s. 318.14, F.S.5
Any person whose motor vehicle or mobile home registration has been expired for more than
six months, upon a second or subsequent offense, commits a misdemeanor of the second
degree.6
Current law provides that DHSMV may conduct a pilot program to evaluate the designs, concepts, and
technologies for alternative license plates. For purposes of the pilot program, DHSMV must investigate
the feasibility and use of alternative license plate technologies and the long-term cost impact to the
consumer. A pilot program is limited to license plates that are used on government-owned motor
vehicles. Such license plates are exempt from statutory design and material requirements for license
plates.7 DHSMV has had this authority since 2012, and currently has six digital license plates installed
on vehicles.8
1 S. 320.06(3)(a), F.S.
2 Id.
3 An additional front facing plate is required
by law for some vehicles , and such plates must meet the same requirements
as rear facing plates. See s. 316.605(1), F.S.
4 S. 316.605(1), F.S.
5 Section 318.14, F.S., provides certain exceptions to noncriminal traffic infractions and provides for court appearances,
payment plans, and authorizes proof of compliance with motor vehic le registration requirements.
6 S. 320.07(3), F.S.
7 S. 320.06(5), F.S.
8 Florida Department of Highway Safety and Motor Vehicles, Agency Analysis of 2022 House Bill 91, p. 3 (Dec. 1, 2021).
STORAGE NAME: h0091b.COM PAGE: 2
DATE: 2/21/2022
Under current law, PRIDE, Inc.,9 may manufacture license plates and validation stickers for DHSMV.
DHSMV is not required to obtain competitive bids in order to contract with the corporation. 10
Digital License Plates
Digital license plates are dynamic screens that may replace current physical license plate. The digital
license plates can display information such as a license plate number and validation of the current
license plate. Digital license plates also have the capability to work with a vehicle’s computer system
and communicate with outside sources that may access it remotely. 11 The license plate may be used
for applications such as electronic tolling and broadcasting emergency alerts. 12
Digital license plates are currently available in California and Arizona. 13 One digital license plate
provider, Reviver, prices their digital license plates starting at $899. 14
Effect of the Bill
The bill repeals DHSMV’s authority to conduct a pilot program to evaluate the designs, concepts, and
technologies of alternative license plates.
Under the bill, “digital license plate” is defined as an electronic display that:
Is designed to display the information required to be included on a physical license plate;
Is designed to be placed on a motor vehicle registered under ch. 320, F.S. in lieu of a physical
license plate; and
Has been determined by the Department of Transportation to have a display that is readable by
current automated license plate recognition systems.
The bill requires DHSMV to allow a registered motor vehicle to be equipped with a digital license plate
in lieu of a physical license plate by October 1, 2023, pursuant to a contract entered into by the
department and a digital license plate provider. Before obtaining a digital license plate, the purchaser
must first obtain a physical license plate from DHSMV.
Under the bill, DHSMV is authorized to adopt rules for digital license plates as outlined in the bill.
The bill also provides that the owner of a digital license plate is not subject to the penalties in s. 320.07,
F.S., for failure to display a validation sticker if the vehicle was operated in compliance with ch. 320,
F.S., and any DHSMV rules governing the placement of digital license plates and registration renewal.
Under the bill, DHSMV may authorize the display of the motor vehicle’s validation on each digital
license plate in lieu of the validation sticker. The validation must display the owner’s birth month, the
license plate number, and the year of expiration or appropriate renewal period if the owner is not a
natural person. The validation must be displayed in the upper right corner of the digital license plate.
The bill provides that except as otherwise specified in the bill or a DHSMV rule, a digital license plate is
subject to Florida’s laws applicable to a physical license plate; however, digital license plates are
exempt from the statutory design requirements.
The bill also allows DHSMV to authorize the use of a digital license plate for electronic toll collection, if
such use has been approved by the Department of Transportation or other appropriate tolling authority
or to display a parking permit.
9 PRIDE, Inc., is the corporation organized under ch. 947, F.S., relating to inmate work programs.
10 S. 320.06(4), F.S.
11 Florida Department of Highway Safety and Motor Vehicles, Agency Analysis of 2022 House Bill 91, p. 2 (Dec. 1, 2021).
12 Reviver, https://reviver.com/shop/ (last visited Feb. 19, 2022).
13 Jacob Ogles, Digital License Plates Could Come to Florida Roads, Florida Politics (Mar. 3, 2021),
https://floridapolitics.com/archives/409080-digital-license-plates-could-come-to-florida-roads/ (last visited Feb. 19, 2022).
14 Reviver, https://reviver.com/shop/ (last visited Feb. 3, 2022).
STORAGE NAME: h0091b.COM PAGE: 3
DATE: 2/21/2022
Further, DHSMV may establish procedures for displaying the following information on a digital license
plate:
An emergency alert, including an alert regarding a missing child or missing adult;
Other displays that DHSMV, in consultation with law enforcement agencies, determines are in
the interest of public safety; and
Static logo displays, including:
o Displays for fleet license plates,
o Digital versions of specialty license plates, pursuant to procedures adopted by DHSMV,
o Special license plates for military service, and
o Special license plates for the Governor and federal and state legislators.
The bills states that a digital license plate must:
Meet the requirements and specifications previously described;
Include the same information required to be included on a physical license plate and legibly
display that information at all times and in all light conditions; and
Have wireless connectivity capability.
Under the bill, DHSMV may contract with digital license plate providers 15 for the issuance of digital
license plates, including any services related to the issuance of digital license plates. The contract must
include provisions governing the protection of personal and motor vehicle registration data, including
geolocation data, obtained by a digital license plate provider in the performance of its services.
A digital license plate provider with whom DHSMV contracts must:
Maintain an inventory of digital license plates in this state;
Make available a digital version of each specialty license plate authorized by DHSMV; and
If a digital license plate displays a validation to reflect the current registration period for the
motor vehicle, and upon DHSMV request, suspend the display of the validation or indicate in the
digital license plate that the motor vehicle’s registration has expired.
The bill provides that a consumer who chooses to purchase a digital license plate must purchase it
directly from the digital license plate provider. In addition to any fees associated with the purchase of
the digital license plate, the consumer is also responsible for paying to DHSMV all applicable m otor
vehicle fees, including the annual use fee associated with any specialty license plate the consumer
wishes to display on the digital license plate.
The bill is effective upon becoming a law.
B. SECTION DIRECTORY:
Section 1: Amends s. 320.06, F.S., relating to registration certificates, license plates, and validation
stickers.
Section 2: Amends s. 320.07, F.S., relating to expiration of registration, renewal required.
Section 3: Creates s. 320.08069, F.S., relating to digital license plates.
Section 4: Provides that the bill is effective upon becoming a law.
II. FISCAL ANALYSIS & ECONOMIC IMPACT STATEMENT
A. FISCAL IMPACT ON STATE GOVERNMENT:
1. Revenues:
15 The bill defines
“digital license plate provider” as a person or an entity engaged in the business of providing digital
license plate hardware and services to motor vehicle owners.
STORAGE NAME: h0091b.COM PAGE: 4
DATE: 2/21/2022
None. Since purchasers of digital license plates are also required to pay the statutorily required
motor vehicle fees, the bill does not appear to impact state government revenues.
2. Expenditures:
Indeterminate. Assuming that most of the connectivity programming is between the digital license
plate provider and the consumer, the bill will have an insignificant impact on DHSMV expenditures .
If DHSMV is expected to provide connectivity, DHSMV asserts that this will require a significant
amount of programming to multiple major DHSMV computer systems.16
B. FISCAL IMPACT ON LOCAL GOVERNMENTS:
1. Revenues:
None.
2. Expenditures:
None.
C. DIRECT ECONOMIC IMPACT ON PRIVATE SECTOR:
Digital license plate providers may see additional revenues associated with the program.
D. FISCAL COMMENTS:
None.
III. COMMENTS
A. CONSTITUTIONAL ISSUES:
1. Applicability of Municipality/County Mandates Provision:
Not applicable. The bill does not appear to impact county or municipal governments.
2. Other:
None.
B. RULE-MAKING AUTHORITY:
The bill eliminates DHSMV’s current authority to conduct a license plate pilot program and authorizes
DHSMV to adopt rules to implement digital license plates.
C. DRAFTING ISSUES OR OTHER COMMENTS:
None.
IV. AMENDMENTS/ COMMITTEE SUBSTITUTE CHANGES
On February 3, 2022, the Tourism, Infrastructure & Energy Subcommittee adopted an amendment to the
bill and reported the bill favorably as a committee substitute. The amendment clarifies that:
A digital license plate must be determined by the Department of Transportation to have a display that is
readable by current automated license plate readers,
DHSMV must allow digital license plates issued pursuant to a contract between the digital license plate
provider and the department,
Geolocation data must be protected as personal data under any contract entered into by the
department with a digital license plate provider, and
16 Florida Department of Highway Safety and Motor Vehicles, Agency Analysis of 2022 House Bill 91, p. 7 (Dec. 1, 2021).
STORAGE NAME: h0091b.COM PAGE: 5
DATE: 2/21/2022
Specialty license plates offered by digital license plate providers must comply with department
procedures.
This analysis is drafted to the committee substitute as approved by the Tourism, Infrastructure & Energy
Subcommittee.
STORAGE NAME: h0091b.COM PAGE: 6
DATE: 2/21/2022
F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
CS/HB 91 2022
1 A bill to be entitled
2 An act relating to digital license plates; amending s.
3 320.06, F.S.; deleting provisions relating to the
4 authority of the Department of Highway Safety and
5 Motor Vehicles to conduct a pilot program to evaluate
6 the designs, concepts, and technologies for
7 alternative license plates; amending s. 320.07, F.S.;
8 exempting owners of digital license plates from
9 certain penalties; creating s. 320.08069, F.S.;
10 providing definitions; providing applicability;
11 authorizing motor vehicles to be equipped with digital
12 license plates by a certain date; authorizing the
13 department to contract with digital license plate
14 providers; providing department authority relating to
15 the display and use of digital license plates;
16 specifying requirements for digital license plates,
17 digital license plate providers, and digital license
18 plate consumers; authorizing the department to adopt
19 rules; providing an effective date.
20
21 Be It Enacted by the Legislature of the State of Florida:
22
23 Section 1. Subsection (5) of section 320.06, Florida
24 Statutes, is amended to read:
25 320.06 Registration certificates, license plates, and
Page 1 of 6
CODING: Words stricken are deletions; words underlined are additions.
hb0091-01-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 91 2022
26 validation stickers generally.—
27 (5) The department may conduct a pilot program to evaluate
28 the designs, concepts, and technologies for alternative license
29 plates. For purposes of the pilot program, the department shall
30 investigate the feasibility and use of alternative license plate
31 technologies and the long-term cost impact to the consumer. The
32 pilot program shall be limited to license plates that are used
33 on government-owned motor vehicles as described in s. 320.0655.
34 Such license plates are exempt from the requirements in
35 paragraph (3)(a).
36 Section 2. Subsection (7) is added to section 320.07,
37 Florida Statutes, to read:
38 320.07 Expiration of registration; renewal required;
39 penalties.—
40 (7) An owner of a digital license plate as described in s.
41 320.08069 is not subject to the penalties in this section for
42 failure to display a validation sticker if the vehicle was
43 operated in compliance with this chapter and any rules adopted
44 by the department governing the placement of digital license
45 plates and registration renewal.
46 Section 3. Section 320.08069, Florida Statutes, is crea ted
47 to read:
48 320.08069 Digital license plates.—
49 (1) DEFINITIONS.—As used in this section, the term:
50 (a) "Digital license plate" means an electronic display
Page 2 of 6
CODING: Words stricken are deletions; words underlined are additions.
hb0091-01-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 91 2022
51 that:
52 1. Is designed to display the information required in this
53 chapter to be included on a physical license plate;
54 2. Is designed to be placed on a motor vehicle registered
55 under this chapter in lieu of a physical license plate; and
56 3. Has been determined by the Department of Transportation
57 to have a display that is readable by current automated license
58 plate recognition hardware and software.
59 (b) "Digital license plate provider" means a person or an
60 entity engaged in the business of providing digital license
61 plate hardware and services to motor vehicle owners.
62 (2) APPLICABILITY.—Except as otherwise provided in this
63 section or a rule adopted under this section, a digital license
64 plate issued under this section is subject to the laws of this
65 state applicable to a physical license plate. However, digital
66 license plates issued under this section are exempt from s.
67 320.06(3)(a).
68 (3) DIGITAL LICENSE PLATE ISSUANCE.—
69 (a) By October 1, 2023, the department shall allow a motor
70 vehicle registered under this chapter to be equipped with a
71 digital license plate in lieu of a physical license plate issued
72 under s. 320.06 pursuant to a contract entered into by the
73 department and a digital license plate provider under paragraph
74 (b). However, the purchaser of a digital license plate must
75 first obtain a physical license plate from the department before
Page 3 of 6
CODING: Words stricken are deletions; words underlined are additions.
hb0091-01-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 91 2022
76 obtaining a digital license plate from a digital license plate
77 provider.
78 (b) The department may contract with digital license plate
79 providers for the issuance of digital license plates, including
80 any services related to the issuance of digital license plates.
81 The contract must include provisions governing the protection of
82 personal and motor vehicle registration data, including
83 geolocation data, obtained by a digital license plate provider
84 in the performance of its services.
85 (c) The department may authorize the display of the motor
86 vehicle's validation on each digital license plate in lieu of
87 the validation sticker. The validation must display the owner's
88 birth month, the license plate number, and the year of
89 expiration or appropriate renewal period if the owner is not a
90 natural person. The validation must be displayed in the upper
91 right corner of the digital license plate.
92 (d) The department may authorize the use of a digital
93 license plate for electronic toll collection, if such use has
94 been approved by the Department of Transportation or other
95 appropriate tolling authority, or to display a parking permit.
96 (e) The department may establish procedures for displaying
97 the following information on a digital license plate:
98 1. An emergency alert or other public safety alert issued
99 by a governmental entity, including an alert pursuant to s.
100 937.021.
Page 4 of 6
CODING: Words stricken are deletions; words underlined are additions.
hb0091-01-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 91 2022
101 2. Static logo displays, including unique displays for
102 fleet license plates as described in s. 320.0657 and digital
103 versions of specialty license plates as described in s.
104 320.08058, special license plates for military service as
105 authorized in s. 320.089, and special license plates for the
106 Governor and federal and state legislators as authorized in s.
107 320.0807.
108 3. Other displays that the department, in consultation
109 with law enforcement agencies, determines are in the interest of
110 public safety.
111 (4) DIGITAL LICENSE PLATE REQUIREMENTS.—A digital license
112 plate issued under this section must:
113 (a) Meet the specifications and requirements adopted under
114 subsection (3).
115 (b) Include the same information required to be included
116 on a physical license plate and legibly display that information
117 at all times and in all light conditions.
118 (c) Have wireless connectivity capability.
119 (5) DIGITAL LICENSE PLATE PROVIDERS.—A digital license
120 plate provider with whom the department contracts shall:
121 (a) Maintain an inventory of digital license plates issued
122 in this state by the digital license plate provider.
123 (b) Make available a digital version of each specialty
124 license plate authorized by the department, pursuant to
125 procedures adopted by the department under paragraph (3)(e).
Page 5 of 6
CODING: Words stricken are deletions; words underlined are additions.
hb0091-01-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 91 2022
126 (c) If a digital license plate displays a validation,
127 promptly update the display of the validation to reflect the
128 current registration period for the motor vehicle and, upon
129 request of the department, suspend the display of the validation
130 or indicate on the digital license plate that the registration
131 for the motor vehicle has expired.
132 (6) DIGITAL LICENSE PLATE CONSUMERS.—A consumer who
133 chooses to purchase a digital license plate must purchase a
134 digital license plate directly from a digital license plate
135 provider. In addition to any fees associated with the purchase
136 of a digital license plate, the consumer is also responsible for
137 paying to the department all applicable motor vehicle fees
138 required by this chapter, including any annual use fees pursuant
139 to s. 320.08056 associated with any specialty license plate the
140 consumer wishes to display on the digital license plate.
141 (7) RULEMAKING.—The department may adopt rules to
142 implement this section.
143 Section 4. This act shall take effect upon becoming a law.
Page 6 of 6
CODING: Words stricken are deletions; words underlined are additions.
hb0091-01-c1
COMMERCE COMMITTEE
CS/HB 91 by Rep. Duran
Digital License Plates
AMENDMENT SUMMARY
February 23, 2022
Amendment 1 by Rep. Duran (strike-all):
• Clarifies the definition of a “digital license plate” to provide that a digital license
plate must be designed to display any other information that the department, in
consultation with law enforcement, determines may improve public safety.
• Removes the definition for “digital license plate provider.”
• Permits the Department of Highway Safety and Motor Vehicles (DHSMV) to
conduct a pilot program for the purpose of evaluating the designs, concepts, and
technologies of digital license plates.
• Requires that in any pilot program conducted by DHSMV, the digital license plate
designs, concepts, and technologies must be able to:
o Display the information required for a metal or paper license plate;
o Display safety alerts issued by a governmental entity;
o Display static logos, including unique displays for fleet license plates and
digital versions of specialty license plates and special license plates;
o Display the registration status of the motor vehicle;
o Display any other information that the department, in consultation with law
enforcement agencies, determines may improve public safety;
o Be readable by current toll collection systems and current law
enforcement automated license plate recognition hardware and software,
as determined by the Department of Transportation;
o Connect to the Internet; and
o Add and transfer data at the direction of DHSMV.
• Provides a civil penalty for a digital license plate provider that stores, sells, or
shares geolocation data collected from the digital license plate.
• Requires DHSMV to allow a registered motor vehicle to display a digital license
plate in lieu of a physical license plate and creates a framework for
implementation.
COMMITTEE/SUBCOMMITTEE AMENDMENT
Bill No. CS/HB 91 (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 Duran offered the following:
3
4 Amendment (with title amendment)
5 Remove everything after the enacting clause and insert:
6 Section 1. Subsection (46) is added to section 320.01,
7 Florida Statutes, to read:
8 320.01 Definitions, general.—As used in the Florida
9 Statutes, except as otherwise provided, the term:
10 (46) "Digital license plate" means an electronic display
11 meeting all specifications required by the department, which
12 must, at a minimum:
13 (a) Be designed to display the information required in
14 this chapter to be included on a physical license plate;
15 (b) Be designed to be placed on a motor vehicle registered
16 under this chapter in lieu of a physical license plate;
601987 - h0091-strike.docx
Published On: 2/22/2022 8:31:13 PM
Page 1 of 10
COMMITTEE/SUBCOMMITTEE AMENDMENT
Bill No. CS/HB 91 (2022)
Amendment No. 1
17 (c) Be designed to display any other information that the
18 department, in consultation with law enforcement agencies,
19 determines may improve public safety; and
20 (d) Have been determined by the Department of
21 Transportation to have a display readable by current toll
22 collection systems and current law enforcement automated license
23 plate recognition hardware and software.
24 Section 2. Present subsection (6) of section 320.06,
25 Florida Statutes, is redesignated as subsection (7), a new
26 subsection (6) is added to that section, and subsection (5) of
27 that section is amended, to read:
28 320.06 Registration certificates, license plates, and
29 validation stickers generally.—
30 (5) The department may conduct a pilot program to evaluate
31 the designs, concepts, and technologies for digital alternative
32 license plates as provided for in subsection (6). For purposes
33 of the pilot program, the department may shall investigate the
34 feasibility and use of digital alternative license plate
35 technologies that modernize license plates used in this state
36 and improve public safety, and the long-term cost impact to the
37 consumer. The pilot program shall be limited to license plates
38 that are used on government-owned motor vehicles as described in
39 s. 320.0655. Such license plates are exempt from the
40 requirements in paragraph (3)(a). For the purposes of this
41 subsection, digital license plate designs, concepts, and
601987 - h0091-strike.docx
Published On: 2/22/2022 8:31:13 PM
Page 2 of 10
COMMITTEE/SUBCOMMITTEE AMENDMENT
Bill No. CS/HB 91 (2022)
Amendment No. 1
42 technologies that the department may investigate the feasibility
43 and use of must include, but are not limited to, the ability to:
44 (a) Display information required to be included on a metal
45 or paper license plate.
46 (b) Display safety alerts issued by a governmental entity,
47 such as emergency alerts, Amber Alerts, and Silver Alerts.
48 (c) Display static logos, including unique displays for
49 fleet license plates, digital versions of specialty license
50 plates, and special license plates.
51 (d) Display the registration status of the motor vehicle
52 to which the plate is affixed.
53 (e) Display any other information that the department, in
54 consultation with law enforcement agencies, determines may
55 improve public safety.
56 (f) Be readable by current toll collection systems and
57 current law enforcement automated license plate recognition
58 hardware and software, as determined by the Department of
59 Transportation.
60 (g) Connect to the Internet.
61 (h) Add and transfer data at the direction and discretion
62 of the department.
63 (6)(a) The department may conduct a pilot program for the
64 purpose of evaluating the designs, concepts, and technologies of
65 digital license plates for use in this state and allowing
66 government-owned vehicles registered under this chapter to be
601987 - h0091-strike.docx
Published On: 2/22/2022 8:31:13 PM
Page 3 of 10
COMMITTEE/SUBCOMMITTEE AMENDMENT
Bill No. CS/HB 91 (2022)
Amendment No. 1
67 equipped with a digital license plate in addition to being
68 issued a physical license plate.
69 (b) If the department conducts the pilot program, it must
70 administer the program and allow government-owned motor vehicles
71 registered under this chapter to be equipped with a digital
72 license plate in addition to being issued a physical license
73 plate under this section.
74 1. The department may contract with digital license plate
75 providers to participate in the pilot program.
76 2. For each digital license plate provider contracted by
77 the department to participate in the pilot program, the
78 department shall select at least two geographic regions of this
79 state and use at least 10 digital license plates in each region.
80 The pilot program must be implemented in at least one urban
81 region and one rural region of this state.
82 3. For each digital license plate provider contracted by
83 the department to participate in the pilot program, the
84 evaluation of the digital license plate designs, concepts, and
85 technologies must conclude within 6 months after the execution
86 of a contract for participation in the pilot program. Within 8
87 months after the execution of a contract to participate in the
88 pilot program for the evaluation of the digital license plate
89 designs, concepts, and technologies, the department shall make
90 written recommendations to the Governor, the President of the
91 Senate, and the Speaker of the House of Representatives
601987 - h0091-strike.docx
Published On: 2/22/2022 8:31:13 PM
Page 4 of 10
COMMITTEE/SUBCOMMITTEE AMENDMENT
Bill No. CS/HB 91 (2022)
Amendment No. 1
92 regarding the implementation and use of the digital license
93 plate designs, concepts, and technologies.
94 (c) The department may adopt rules to implement this
95 subsection.
96 Section 3. Effective July 1, 2023, subsection (7) is added
97 to section 320.07, Florida Statutes, to read:
98 320.07 Expiration of registration; renewal required;
99 penalties.—
100 (7) An owner of a digital license plate as defined in s.
101 320.01(46) is not subject to the penalties in this section for
102 failure to display a validation sticker if the vehicle was
103 operated in compliance with this chapter and any rules adopted
104 by the department governing the placement of digital license
105 plates and registration renewal.
106 Section 4. Effective July 1, 2023, section 320.08069,
107 Florida Statutes, is created to read:
108 320.08069 Digital license plates.—
109 (1) APPLICABILITY.—Except as otherwise provided in this
110 section or rules adopted under this section, a digital license
111 plate issued under this section is subject to the laws of this
112 state applicable to a physical license plate. Physical license
113 plates must be renewed in accordance with the requirements of s.
114 320.06 relating to all fees due on an annual or semiannual
115 basis. However, digital license plates issued under this section
116 are exempt from s. 320.06(3)(a).
601987 - h0091-strike.docx
Published On: 2/22/2022 8:31:13 PM
Page 5 of 10
COMMITTEE/SUBCOMMITTEE AMENDMENT
Bill No. CS/HB 91 (2022)
Amendment No. 1
117 (2) DIGITAL LICENSE PLATE ISSUANCE.—
118 (a) The department may allow a motor vehicle registered
119 under this chapter to be equipped with a department -approved
120 digital license plate in lieu of a physical license plate issued
121 under s. 320.06. However, the purchaser of a digital license
122 plate must first obtain a physical license plate from the
123 department before obtaining a digital license plate. Physical
124 license plates must be renewed in accordance with the
125 requirements of s. 320.06 relating to all fees due on an annual
126 or semiannual basis.
127 (b) The department may contract with digital license plate
128 providers for the issuance of digital license plates, including
129 any services related to the issuance of digital license plates.
130 The contract must include provisions governing the protection of
131 personal and motor vehicle registration data obtained by a
132 digital license plate provider in the performance of its
133 services. A digital license plate provider may not sell or share
134 personal or motor vehicle registration data and may not store,
135 sell, or share geolocation data from the use of a digital
136 license plate. A digital license plate provider that violates
137 this paragraph is subject to a civil penalty not to exceed
138 $5,000 per occurrence.
139 (c) The department may authorize the display of the motor
140 vehicle's validation on each digital license plate in lieu of
141 the validation sticker. The validation must display the owner's
601987 - h0091-strike.docx
Published On: 2/22/2022 8:31:13 PM
Page 6 of 10
COMMITTEE/SUBCOMMITTEE AMENDMENT
Bill No. CS/HB 91 (2022)
Amendment No. 1
142 birth month, the license plate number, and the year of
143 expiration or the appropriate renewal period if the owner is not
144 a natural person. The validation must be displayed in the upper
145 right corner of the digital license plate.
146 (d) The department may authorize the use of a digital
147 license plate for electronic toll collection, if such use has
148 been approved by the Department of Transportation or other
149 appropriate tolling authority, or to display a parking permit.
150 (e) The department shall establish procedures for
151 displaying information on a digital license plate, which may
152 include, but not be limited to:
153 1. An emergency alert or other public safety alert issued
154 by a governmental entity, including an alert pursuant to s.
155 937.021.
156 2. A company name or logo and unit number for fleet
157 license plates as described in s. 320.0657 and digital versions
158 of specialty license plates as described in s. 320.08058,
159 special license plates for military service as authorized in s.
160 320.089, and special license plates for the Governor and federal
161 and state legislators as authorized in s. 320.0807.
162 3. Other displays that the department, in consultation
163 with law enforcement agencies, determines are in the interest of
164 public safety.
165 (3) DIGITAL LICENSE PLATE REQUIREMENTS.—A digital license
166 plate issued under this section must:
601987 - h0091-strike.docx
Published On: 2/22/2022 8:31:13 PM
Page 7 of 10
COMMITTEE/SUBCOMMITTEE AMENDMENT
Bill No. CS/HB 91 (2022)
Amendment No. 1
167 (a) Meet the specifications and requirements adopted under
168 subsection (2).
169 (b) Include the same information required to be included
170 on a physical license plate and legibly display that information
171 at all times and in all light conditions.
172 (c) Have wireless connectivity capability.
173 (4) DIGITAL LICENSE PLATE PROVIDERS.—A digital license
174 plate provider with whom the department contracts shall:
175 (a) Maintain an inventory of digital license plates issued
176 in this state by the digital license plate provider.
177 (b) Make available a digital version of each specialty
178 license plate authorized by the department.
179 (c) If a digital license plate displays a validation,
180 promptly update the display of the validation to reflect the
181 current registration period for the motor vehicle and, upon
182 request of the department, suspend the display of the validation
183 or indicate on the digital license plate that the registration
184 for the motor vehicle has expired.
185 (5) DIGITAL LICENSE PLATE CONSUMERS.—In addition to any
186 fees associated with the purchase of a digital license plate,
187 the consumer is also responsible for paying to the department
188 all applicable motor vehicle fees required by this chapter,
189 including any annual use fees pursuant to s. 320.08056
190 associated with any specialty license plate the consumer wishes
191 to display on the digital license plate.
601987 - h0091-strike.docx
Published On: 2/22/2022 8:31:13 PM
Page 8 of 10
COMMITTEE/SUBCOMMITTEE AMENDMENT
Bill No. CS/HB 91 (2022)
Amendment No. 1
192 (6) RULEMAKING.—The department may adopt rules to
193 implement this section.
194 Section 5. Except as otherwise expressly provided in this
195 act, this act shall take effect July 1, 2022.
196
197 -----------------------------------------------------
198 T I T L E A M E N D M E N T
199 Remove everything before the enacting clause and insert:
200 An act relating to digital license plates; amending s. 320.01,
201 F.S.; defining the term "digital license plate"; amending s.
202 320.06, F.S.; authorizing the Department of Highway Safety and
203 Motor Vehicles to conduct a pilot program to evaluate designs,
204 concepts, and technologies for a digital, rather than an
205 alternative, license plate pilot program; authorizing the
206 department to investigate the feasibility of digital license
207 plate designs, concepts, and technologies that, at a minimum,
208 meet certain prerequisites; requiring the department to
209 administer any such pilot program and to contract with digital
210 license plate providers in implementing such a program;
211 providing timeframes for any such program; requiring the
212 department to make written recommendations to the Governor and
213 the Legislature; authorizing the department to adopt rules;
214 amending s. 320.07, F.S.; providing that an owner of a digital
215 license plate is not subject to penalties for failure to display
216 a validation sticker if certain conditions are met; creating s.
601987 - h0091-strike.docx
Published On: 2/22/2022 8:31:13 PM
Page 9 of 10
COMMITTEE/SUBCOMMITTEE AMENDMENT
Bill No. CS/HB 91 (2022)
Amendment No. 1
217 320.08069, F.S.; providing applicability; authorizing the
218 department to allow a registered motor vehicle to be equipped
219 with an approved digital license plate in lieu of a physical
220 license plate by a certain date; providing requirements for
221 purchasers of digital license plates; authorizing the department
222 to contract with digital license plate providers for certain
223 purposes; providing a requirement for such contract; specifying
224 prohibited acts of digital license plate providers; providing a
225 civil penalty for violations; authorizing the department to
226 authorize digital license plates to display a motor vehicle's
227 validation and to be used for electronic toll collection and to
228 display parking permits, subject to certain requirements;
229 requiring the department to establish procedures for displaying
230 information on digital license plates; specifying requirements
231 for digital license plates, digital license plate providers, and
232 consumers; authorizing the department to adopt rules; providing
233 effective dates.
601987 - h0091-strike.docx
Published On: 2/22/2022 8:31:13 PM
Page 10 of 10
CS/CS/HB 353
HOUSE OF REPRESENTATIVES STAFF ANALYSIS
BILL #: CS/CS/HB 353 Mortgage Payoff Letters
SPONSOR(S): Civil Justice & Property Rights Subcommittee, Insurance & Banking Subcommittee, Fabricio
TIED BILLS: IDEN./SIM. BILLS: CS/SB 1016
REFERENCE ACTION ANALYST STAFF DIRECTOR or
BUDGET/POLICY CHIEF
1) Insurance & Banking Subcommittee 16 Y, 0 N, As CS Hinshelwood Luczynski
2) Civil Justice & Property Rights Subcommittee 17 Y, 0 N, As CS Mathews Jones
3) Commerce Committee Hinshelwood Hamon
SUMMARY ANALYSIS
A mortgage payoff letter may be requested by a mortgagor who is selling the property that is collateral for the
mortgage loan, refinancing the mortgage loan, or paying off the mortgage loan. Florida law requires that a mortgage
lender or servicer deliver to the requestor, within 14 days after rece ipt of a written request, a mortgage payoff letter
with the unpaid balance of the loan. When a mortgage loan has been fully paid, the mortgage lender or servicer
must execute in writing an instrument acknowledging satisfaction of the mortgage and have the instrument
acknowledged and duly entered in the official records of the proper county. Within 60 days after receiving full
payment of the mortgage loan, the mortgage lender or servicer must send the borrower the recorded satisfaction.
A mortgage payoff letter may sometimes include language reserving the mortgage servicer’s or lender’s right to
change the amounts listed in the payoff letter and disclaiming the reliance of others on the payoff letter. In the event
that the mortgage lender or servicer determines after sending the mortgage payoff letter that the borrower owes
additional money, the mortgage lender or servicer may sometimes return the funds received from the closing which
were sent in reliance on the amount stated in the mortgage payoff letter. In turn, this may cause continued accrual of
interest and potential fees during the pendency of resolving the discrepancy in the amount owed. Further, as long as
the discrepancy or dispute remains unresolved, there may not be clear title to the property.
The bill:
Includes legislative findings that a mortgage payoff letter’s accuracy and timeliness are critical, and that the
addition of disclaimer language within such letters creates unnecessary delays within the real estate market.
Reduces from 14 days to 10 days the timeframe within which a lender or servicer must send a requested
mortgage payoff letter.
Standardizes the contents of the mortgage payoff letter as to all of the authorized requestors.
Except where the property is in foreclosure or the borrower is in bankruptcy, prohibits the lender or servicer,
from qualifying, reserving the right to change, or conditioning or disclaiming the reliance of others on the
information provided in a mortgage payoff letter; and provides that any attempt to do so is void and
unenforceable.
Allows the lender or mortgage servicer to send a corrected mortgage payoff letter supersed ing a prior payoff
letter so long as the corrected payoff letter is received by 3 p.m. at least one business day before payment is
made in reliance on the payoff letter.
Prohibits the lender or servicer from denying the accuracy of the mortgage payoff letter against any person
who relied on it.
Requires the lender or servicer to promptly apply a payment received in reliance on the payoff letter.
Specifies the process by which a mortgage payoff letter may be requested and sent.
Requires the lender or servicer, within 60 days after the mortgage loan has been paid pursuant to the
mortgage payoff letter, to execute, have duly entered in the official records of the proper county, and send to
the mortgagor or record title owner an instrument acknowledging satisfaction of the mortgage.
The bill has no fiscal impact on state and local governments and an indeterminate fiscal impact on th e private sector.
The bill provides an effective date of October 1, 2022, and states that it applies to all mortgages existing as of such
effective date or entered into afterwards, as well as to all loans secured by such mortgages .
This docum ent does not reflect the intent or official position of the bill sponsor or House of Representatives .
STORAGE NAME: h0353b.COM
DATE: 2/21/2022
FULL ANALYSIS
I. SUBSTANTIVE ANALYSIS
A. EFFECT OF PROPOSED CHANGES:
Background
Estoppel Letters
In general, an estoppel letter (or estoppel certificate) is a legal document provided by one party that
enables another party to rely on the document’s accuracy, and that prevents the first party from later
claiming different facts or terms regarding an agreement. 1 With respect to real estate, these types of
letters are typically used to confirm amounts of moneys owed that attach to a certain piece of property,
such as mortgage debt, condominium association fees, homeowners’ association fees, and outstanding
claims or deposits due to tenants. These types of letters are often sought prior to closing on a real
estate transaction as part of due diligence to confirm proper amounts due that can affect the settlement
of such transaction.
Mortgage Payoff Letters
In Florida, s. 701.04, F.S., provides the requirements for estoppel letters with respect to real estate
mortgages; such letters are also commonly known as “mortgage payoff letters.”2 A mortgage payoff
letter3 may be requested by a mortgagor4 who is selling the property that is collateral for the mortgage
loan, refinancing the mortgage loan, or paying off the mortgage loan. Florida law requires that a
mortgage lender or servicer deliver to the requestor, within 14 days after receipt of a written request, a
mortgage payoff letter setting forth the unpaid balance of the loan secured by the mortgage. 5 The
request may be made by a mortgagor, a record title owner of the property, a fiduciary or trustee lawfully
acting on behalf of a record title owner, or any other person lawfully authorized to act on behalf of a
mortgagor or record title owner of the property.6
Florida law specifies the information that must be contained in the mortgage payoff letter, depending on
who requests the letter, as follows:7
If the mortgagor, or any person lawfully authorized to act on behalf of the mortgagor, makes the
request, the mortgage payoff letter must include an itemization of the principal, interest, and any
other charges properly due under or secured by the mortgage and interest on a per-day basis
for the unpaid balance.
If a record title owner of the property, or any person lawfully authorized to act on behalf of a
mortgagor or record title owner of the property, makes the request, the mortgage payoff letter
may include the itemization of the information required above, but must at a minimum include
the total unpaid balance due under or secured by the mortgage on a per-day basis.
When the amount of money due on any mortgage loan has been fully paid, the mortgage lender or
servicer must execute a written instrument acknowledging satisfaction of the mortgage and have the
instrument acknowledged, or proven, and duly entered in the official records of the proper county. 8
Within 60 days after receiving full payment of the mortgage loan, the person required to acknowledge
satisfaction of the mortgage must send or cause to be sent the recorded satisfaction to the person who
1 CREPedia, Estoppel Letter, https://www.crepedia.com/dictionary/definitions/estoppel-letter/ (last visited Feb. 14, 2022); Redfin, What
is an Estoppel Certificate, https://www.redfin.com/definition/estoppel-certificate (last visited Feb. 14, 2022).
2 S. 701.041, F.S., defines an estoppel letter in regards to mortgages as a statement of the amount of the unpaid balance of a loan
secured by a mortgage, including principal, interest, and any other charges properly due under or secured by the mortgage; and the
interest on a per-day basis for the unpaid balance.
3 Referred to as an “estoppel letter” in Florida statutes. See ss. 701.04 and 701.041, F.S.
4 Mortgagor means “[s]omeone who mortgages property; the mortgage -debtor, or borrower.” Black's Law Dictionary (11th ed. 2019).
5 S. 701.04(1), F.S.
6 Id.
7 Id.
8 S. 701.04(2), F.S.
STORAGE NAME: h0353b.COM PAGE: 2
DATE: 2/21/2022
has made the full payment.9 In a civil action arising out of this requirement, the prevailing party is
entitled to attorney fees and costs.
Section 701.04(2), F.S., requires the full payment of the mortgage, not the amount specified in an
estoppel letter provided pursuant to 701.04(1), F.S. This is in contrast with homeowners’ association
estoppel certificates in Florida, where s. 720.30851(3), F.S., specifically states that a homeowners’
association “waives the right to collect any moneys owed in excess of the amounts specified in the
estoppel certificate from any person who in good faith relies upon the estoppel certificate and from the
person’s successors and assigns.” Sections 718.116(8)(c), and 719.108(6)(c), F.S., provide similar
language regarding estoppel certificates for any unpaid condominium association assessments and
unpaid rents, and assessments due to cooperatives (“co-ops”), respectively.10 A mortgagee is not
necessarily held to the same waiver of rights to collect additional moneys from a mortgagor upon the
provision of an estoppel letter, as s. 701.04, F.S., does not provide a similar waiver provision as those
applying to homeowners’ associations, condominium associations, and cooperatives. 11
Some mortgage servicers and lenders, when sending the estoppel letter required under s. 701.04(2),
F.S., include language which seeks to reserve that servicer’s or lender’s right to change the amounts
listed in the payoff letter or disclaiming the reliance of others on the information in the payoff letter.
Examples of such language include the following statements:
“The payoff figures provided are subject to final verification by the Note Holder. The noteholder
reserves the right to adjust these figures and refuse or accept any funds which are insufficient to
satisfy the full indebtedness for any reason.”
“The payoff amount is subject to our final verification once we receive payoff funds.… If the
payoff funds received are insufficient to pay off the account in full for any reason including, but
not limited to, error in calculation, NSF, or additional escrow disbursements and/or adjustments.
[We] reserve the right to decline to pay the account in full. In addition, any and all interest will be
due at the time of payoff.”
“All payoff figures are subject to final verification of the mortgage lender. We may adjust any
portion of this payoff statement, at any time, for the following reasons, including but not limited to:
escrow disbursements made on behalf of the loan holder(s), fee advances, items returned by
your financial institution including previously made payments, additional fees or charges, and any
good faith and/or inadvertent clerical errors.”
“We will not be bound by errors and/or omissions contained herein.”
“Agent hereby reserves the right to adjust Payoff Amount or the Per Diem Amount in the event
that we discover a mathematical, typographical, bookkeeping or clerical error.”
“Borrower forever releases and discharges Agent, the Lenders, and their respective officers,
directors, employees, agents, representatives, successors and assigns…from any and all claims,
causes of action, damages and liabilities of any nature whatsoever, known or unknown, which
such person ever had, now has or might hereafter have against [the parties] which relates,
directly or indirectly, to any of the Loan Documents or the Loan.”12
Such language can frustrate the parties involved in a real estate transaction since such language
essentially attempts to remove the mortgagee’s right to rely on the amounts provided therein. In the
event that the mortgage lender or servicer determines after sending an estoppel letter that the borrower
9 Id.
10 S. 701.116(8)(c) states that a condominium association “waives the right to collect any moneys owed in excess of the amounts
specified in the estoppel certificate from any person who in good faith relies upon the estoppel certificate and from the per son's
successors and assigns.” 719.108(6)(c), F.S. states that a cooperative association “waives the right to collect any moneys owed in
excess of the amounts specified in the estoppel certificate from any person who in good faith relies upon the estoppel certif icate and
from the person's successors and assigns.”
11 But see, Rissman on Behalf of Rissman Inv. Co. v. Kilb ourne, 643 So. 2d 1136, 1139 (Fla. 1st DCA 1994), where the 1 st District
Court of Appeal found that a lender could be estopped from claiming additional moneys after an estoppel letter. The facts of this case,
however, were rather unique. As the court mentioned, the mortgagee regularly reaffirmed the amount given in th e estoppel letter over a
number of years. In addition, the mortgagor made a number of transactions based in detrimental reliance on the amount provide d by
the mortgagee.
12 See Email from Melissa Murphy, Executive Vice President, Chief Legal Officer & Gene ral Counsel, The Fund (Feb. 4, 2022, 11:46
EST) (on file with the Senate Banking and Insurance Committee), which provided samples of escrow letters that were sent to Fl orida
borrowers.
STORAGE NAME: h0353b.COM PAGE: 3
DATE: 2/21/2022
owes additional money beyond that provided in the estoppel letter, some mortgage lenders or servicers
return all of the funds received from the closing and demand full payment, even if such funds were sent
in reliance on an estoppel letter that was never corrected or revised by the lender or servicer. This can
result in the continued accrual of interest on the full amount of the mortgage (not just the amount in
dispute) during the pendency of resolving the discrepancy in the amount owed. Further, as long as the
discrepancy or dispute continues, there may not be clear title to the property. 13
Effect of the Bill
The bill reduces from 14 days to 10 days the timeframe within which a mortgage lender or servicer must
send a requested mortgage payoff letter setting forth the unpaid balance of the mortgage loan. If the
request for a mortgage payoff letter is made by a person other than the mortgagor,14 the request must
include a copy of the instrument showing such person’s title in the property or other lawful
authorization, and the mortgage lender or servicer must notify the mortgagor of the request.
The bill standardizes the information that must be contained in the mortgage payoff letter, regardless of
whether the requestor is the mortgagor, a record title owner, or a person lawfully authorized to act on
behalf of the mortgagor or record title owner. The letter must at least include the unpaid balance of the
loan properly due under or secured by the mortgage as of the date specified in the letter, including an
itemization of the principal, interest, and any other charges comprising the unpaid balance.
The bill specifies the process for requesting a mortgage payoff letter. A written request for a mortgage
payoff letter must be sent to the mortgage lender or servicer by first-class mail, postage prepaid; by
common carrier delivery service; or by e-mail, facsimile, or other electronic means at the address made
available by the mortgage lender or servicer for such purpose, or through an automated system
provided by the mortgage lender or servicer for requesting a mortgage payoff letter. The request is
considered received:
Five business days after the request sent by first-class mail is deposited with the United States
Postal Service;
The day the request is delivered by a common carrier delivery service; or
The day the request is sent by e-mail, facsimile, or other electronic means or through an
automated system provided by the mortgage lender or servicer for requesting a mortgage
payoff letter.
If any of the foregoing days fall on a Saturday, Sunday, or legal holiday, the request for a mortgage
payoff letter is considered timely received by the mortgagee or mortgage servicer on the next business
day.
The bill also specifies the process by which a mortgage payoff letter must be sent. The mortgage
lender or servicer must send a mortgage payoff letter by first-class mail; by common carrier delivery
service; or by e-mail, facsimile, or other electronic means, as directed in the written request, or through
an automated system provided by the mortgage lender or servicer for this purpose. However, the
mortgage lender or servicer is not required to pay for a common carrier delivery service. If the 10-day
period after a written request is received by the mortgage lender or servicer ends on a Saturday,
Sunday, or legal holiday, the mortgage payoff letter is considered timely if it is sent by the close of
business on the next business day.
The bill prohibits the mortgage lender or servicer from qualifying, reserving the right to change, or
conditioning or disclaiming the reliance of others on the information provided in a mortgage payoff
letter, and any attempt to do so is void and unenforceable. However, this prohibition does not apply to
13 Id.
14 Definition of “mortgagor”, supra note 4.
STORAGE NAME: h0353b.COM PAGE: 4
DATE: 2/21/2022
mortgages for which a notice of lis pendens 15 in a foreclosure action or a suggestion of bankruptcy16
has been properly filed and recorded.
If the mortgage lender or servicer determines that any of the information in the mortgage payoff letter
was inaccurate, the mortgage lender or servicer may send a corrected mortgage payoff letter. The
corrected mortgage payoff letter supersedes any prior mortgage payoff letter so long as the corrected
payoff letter is received by 3:00 p.m.17 at least one business day before payment is made in reliance on
the mortgage payoff letter. The bill provides that the corrected estoppel letter is considered received by
the person who requested the original estoppel letter:
Five business days after the corrected estoppel letter sent by first-class mail is deposited with
the United States Postal Service;
The day the corrected estoppel letter is delivered by a common carrier delivery service; or
The day the corrected estoppel letter is sent by e-mail, facsimile, or other electronic means or
through an automated system provided by the mortgagee or mortgage servicer for requesting
an estoppel letter.
If any of the information in the mortgage payoff letter was inaccurate and there was not a timely
corrected payoff letter, the bill prohibits the mortgage lender or servicer from denying the accuracy of
the mortgage payoff letter against any person who relied on it.
If a payment is received at the location and in the manner specified by the mortgage lender or servicer,
the mortgage lender or servicer must accept, and may not return, any payment received in reliance on
the mortgage payoff letter, and the mortgage lender or servicer must promptly apply such payment to
the unpaid balance of the mortgage loan.
The bill requires the mortgage lender or servicer, within 60 days after the mortgage loan has been fully
paid or paid pursuant to the mortgage payoff letter, to execute, send for recording in the official records
of the proper county, and send to the mortgagor or record title owner an instrument acknowledging
satisfaction of the mortgage. The prevailing party in a civil action brought against the mortgage lender
or servicer to enforce this requirement is entitled to reasonable attorney fees and costs.
The bill conforms the definition of “estoppel letter” in s. 701.041, F.S., to the estoppel letter
requirements in s. 701.04, F.S.
The bill provides a statement of legislative intent and clarifies that the bill is applicable to all mortgages
existing at the time of the effective date of the bill and to all mortgages entered into on or after the
effective date as well as to all loans secured by such mortgages.
The bill provides an effective date of October 1, 2022.
B. SECTION DIRECTORY:
Section 1. Amends s. 701.04, F.S., relating to cancellation of mortgages, liens, and judgments.
Section 2. Amends s. 701.041, F.S., relating to title insurer; mortgage release certificate.
Section 3. Provides a statement of legislative intent.
15
A notice of lis pendens is “[a] notice, recorded in the chain of title to real property, required or permitted in some jurisdictions to warn
all persons that certain property is the subject matter of litigation, and that any interests acquired during the pendency of the suit are
subject to its outcome. Black's Law Dictionary (11th ed. 2019). See also s. 48.23, F.S., relating to lis pendens.
16 “Suggestion of bankruptcy is a document filed with a court to put it on notice that the defendant in a pending lawsuit has fi led a
bankruptcy case. A party can file a suggestion of bankruptcy whenever a party believes that the bankruptcy or automatic stay provision
of bankruptcy code has an effect on a state court case.” US Legal, https://definitions.uslegal.com/s/suggestion-of-bankruptcy/ (last
visited Feb. 14, 2022).
17 The corrected estoppel letter must be received by the person who requested the original estoppel letter by 3:00 p.m. in such person’s
time zone.
STORAGE NAME: h0353b.COM PAGE: 5
DATE: 2/21/2022
Section 4. Provides that the bill applies to all mortgages entered into before and after the effective
date.
Section 5. Provides an effective date of October 1, 2022.
II. FISCAL ANALYSIS & ECONOMIC IMPACT STATEMENT
A. FISCAL IMPACT ON STATE GOVERNMENT:
1. Revenues:
None.
2. Expenditures:
None.
B. FISCAL IMPACT ON LOCAL GOVERNMENTS:
1. Revenues:
None.
2. Expenditures:
None.
C. DIRECT ECONOMIC IMPACT ON PRIVATE SECTOR:
The bill has an indeterminate impact on the private sector. The bill may lead to smoother real estate
closings to the extent that mortgage lenders or servicers provide more accurate information in
mortgage payoff letters. Additionally, the bill may help ensure clear title to the property.
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:
Due in part to the federal and state constitutional Contracts Clauses, the Legislature generally may
not impair existing contractual obligations.18 Florida courts have generally interpreted the state’s
Contract Clause to mirror the U.S. Constitution's Contract Clause; thus, Florida courts have
sometimes struck down laws retroactively burdening or altering contracts.19 The bill states that it
applies to all mortgages that are in existence as of its effective date. Whether the Contracts Clauses
or other constitutional provisions may be implicated by this provision will likely depend on the facts of
each particular case.
B. RULE-MAKING AUTHORITY:
None.
18 Art. I, s. 10, U.S. Const.; art. I, s. 10, Fla. Const.; see also U.S. Const. amends. V and XIV (prohibitions against violating due process).
19 See, e.g., Citrus Cnty. Hosp. Bd. v. Citrus Mem'l Health Found., Inc., 150 So. 3d 1102, 1108 (Fla. 2014).
STORAGE NAME: h0353b.COM PAGE: 6
DATE: 2/21/2022
C. DRAFTING ISSUES OR OTHER COMMENTS:
None.
IV. AMENDMENTS/COMMITTEE SUBSTITUTE CHANGES
On January 27, 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 353 in
the following ways:
Amends the process for requesting and sending a mortgage payoff letter.
Exempts mortgages for which a foreclosure action or a suggestion of bankruptcy is filed from the
prohibition on a mortgage lender or servicer sending a payoff letter that qualifies, reserves the right
to change, or conditions or disclaims the reliance of others on the information provided in the payoff
letter.
Amends provisions relating to sending a corrected payoff letter.
States certain rights and defenses of parties.
Amends the provision requiring a mortgage lender or servicer to promptly apply funds received in
reliance on the payoff letter.
Removes a cause of action and related damages.
Amends the definition of “estoppel letter”.
Makes other technical changes.
On February 16, 2022, the Civil Justice & Property Rights Subcommittee considered a proposed committee
substitute and reported the bill favorably as a committee substitute. The committee substitute differs from
CS/HB 353 in that it:
Provides the circumstances by which the corrected estoppel letter is considered to be received by
the party who requested the original estoppel letter;
Removes a provision specifying that the bill does not affect the right or a mortgagee to recover any
sum that it did not include in an estoppel letter from any person liable for the payment of the loan;
Removes a provision which provided that the recorded release of the mortgage does not relieve the
mortgagor from any personal liability on the loan;
Provides a statement of legislative intent;
Clarifies that the bill applies to all mortgages, not just mortgages entered into after the effective
date; and
Makes other clarifying and technical changes.
This analysis has been updated to reflect the committee substitute as passed by the Civil Justice &
Property Rights Subcommittee.
STORAGE NAME: h0353b.COM PAGE: 7
DATE: 2/21/2022
F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
CS/CS/HB 353 2022
1 A bill to be entitled
2 An act relating to mortgage payoff letters; amending
3 s. 701.04, F.S.; revising the timeframe within which a
4 mortgagee or mortgage servicer must send or cause to
5 be sent an estoppel letter containing specified
6 information; revising the circumstances under which a
7 copy of the instrument showing title in the property
8 or other lawful authorization must be included in a
9 request for an estoppel letter; requiring notice to
10 the mortgagor of a request for an estoppel letter
11 under certain circumstances; revising requirements for
12 an estoppel letter; prohibiting certain actions by the
13 mortgagee or mortgage servicer; authorizing the
14 mortgagee or mortgage servicer to send a corrected
15 estoppel letter under certain circumstances; providing
16 that a corrected estoppel letter supersedes any
17 previous estoppel letter under certain circumstances;
18 providing methods for sending a corrected estoppel
19 letter; prohibiting the mortgagee or mortgage servicer
20 from denying the accuracy of certain information
21 provided in an estoppel letter under certain
22 circumstances; prohibiting payments received pursuant
23 to an estoppel letter from being returned and
24 requiring such payments to be promptly applied to any
25 unpaid balance of the loan properly due under or
Page 1 of 11
CODING: Words stricken are deletions; words underlined are additions.
hb0353-02-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 353 2022
26 secured by a mortgage; providing methods for sending a
27 written request for an estoppel letter and for sending
28 an estoppel letter; providing that the mortgagee or
29 mortgage servicer is not required to pay for a common
30 carrier delivery service; requiring the mortgagee or
31 mortgage servicer to take certain actions within a
32 specified time after the unpaid balance of a loan
33 properly secured by a mortgage has been fully paid or
34 paid pursuant to an estoppel letter; authorizing
35 reasonable attorney fees and costs; amending s.
36 701.041, F.S.; revising the definition of the term
37 "estoppel letter"; conforming provisions to changes
38 made by the act; providing legislative findings;
39 providing for retroactive applicability; providing an
40 effective date.
41
42 Be It Enacted by the Legislature of the State of Florida:
43
44 Section 1. Section 701.04, Florida Statutes, is amended to
45 read:
46 701.04 Cancellation of mortgages, liens, and judgments. —
47 (1)(a) Within 10 14 days after receipt of the written
48 request of a mortgagor, a record title owner of the property, a
49 fiduciary or trustee lawfully acting on behalf of a record title
50 owner, or any other person lawfully authorized to act on behalf
Page 2 of 11
CODING: Words stricken are deletions; words underlined are additions.
hb0353-02-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 353 2022
51 of a mortgagor or record title owner of the property, the
52 mortgagee holder of a mortgage shall deliver or mortgage cause
53 the servicer shall send or cause to be sent of the mortgage to
54 deliver to the person making the request at a place designated
55 in the written request an estoppel letter setting forth the
56 unpaid balance of the loan secured by the mortgage. If the
57 written request is made by a person other than the mortgagor,
58 the request must include a copy of the instrument showing such
59 person's title in the property or other lawful authorization,
60 and the mortgagee or mortgage servicer must notify the mortgagor
61 of the request.
62 (a) If the mortgagor, or any person lawfully authorized to
63 act on behalf of the mortgagor, makes the request, the estoppel
64 letter must include an itemization of the principal, interest,
65 and any other charges properly due under or secured by the
66 mortgage and interest on a per-day basis for the unpaid balance.
67 (b) If a record title owner of the property, or any person
68 lawfully authorized to act on behalf of a mortgagor or record
69 title owner of the property, makes the request:
70 1. The request must include a copy of the instrument
71 showing title in the property or lawful authorization.
72 2. The estoppel letter may include the itemization of
73 information required under paragraph (a), but must at a minimum
74 include:
75 1. The total unpaid balance of the loan properly due under
Page 3 of 11
CODING: Words stricken are deletions; words underlined are additions.
hb0353-02-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 353 2022
76 or secured by the mortgage as of the date specified in the
77 estoppel letter, including an itemization of the principal,
78 interest, and any other charges comprising the unpaid balance.
79 2. Interest accruing on a per-day basis for the unpaid
80 balance, if applicable.
81 (c)1. Except for mortgages for which a notice of lis
82 pendens in a foreclosure action or a suggestion of bankruptcy
83 has been properly filed and recorded, the mortgagee or mortgage
84 servicer may not qualify, reserve the right to change, or
85 condition or disclaim the reliance of others on the information
86 provided in an estoppel letter under paragraph (b), and any
87 attempt to do so is void and unenforceable. However, if the
88 mortgagee or mortgage servicer determines that any of the
89 information provided in the estoppel letter under paragraph (b)
90 was inaccurate, the mortgagee or mortgage servicer may send a
91 corrected estoppel letter to the person who requested the
92 estoppel letter.
93 2. If the person who requested the original estoppel
94 letter under paragraph (a) receives a corrected estoppel letter
95 by 3 p.m. in such person's time zone at least 1 business day
96 before a payment is issued in reliance on the previous estoppel
97 letter, the corrected estoppel letter supersedes all prior
98 estoppel letters. The corrected estoppel letter is considered
99 received by the person who requested the original estoppel
100 letter:
Page 4 of 11
CODING: Words stricken are deletions; words underlined are additions.
hb0353-02-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 353 2022
101 a. Five business days after the corrected estoppel letter,
102 which is to be sent by first-class mail, is deposited with the
103 United States Postal Service;
104 b. The day the corrected estoppel letter is delivered by a
105 common carrier delivery service; or
106 c. The day the corrected estoppel letter is sent by e-
107 mail, facsimile, or other electronic means or through an
108 automated system provided by the mortgagee or mortg age servicer
109 for requesting an estoppel letter.
110 3. If any of the information provided in the estoppel
111 letter under paragraph (b) was inaccurate, but the person who
112 requested the estoppel letter did not timely receive a corrected
113 estoppel letter as provided in subparagraph 2., the mortgagee or
114 mortgage servicer may not deny the accuracy of such information
115 as against any person who relied on it.
116 (d)3. The mortgagee or mortgage servicer of the mortgagee
117 acting in accordance with a request in substantial compliance
118 with this subsection paragraph is expressly discharged from any
119 obligation or liability to any person on account of the release
120 of the requested information, other than the obligation to
121 comply with the terms of the estoppel letter.
122 (e) If a payment is received at the location and in the
123 manner specified by the mortgagee or mortgage servicer, the
124 mortgagee or mortgage servicer must accept, and may not return,
125 any payment received in reliance on an estoppel letter and must
Page 5 of 11
CODING: Words stricken are deletions; words underlined are additions.
hb0353-02-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 353 2022
126 promptly apply such payment to the unpaid balance of the loan
127 properly due under or secured by the mortgage.
128 (f)1. A written request for an estoppel letter under
129 paragraph (a) must be sent to the mortgagee or mortgage servicer
130 by first-class mail, postage prepaid; by common carrier delivery
131 service; or by e-mail, facsimile, or other electronic means at
132 the address made available by the mortgagee or mortgage servicer
133 for such purpose or through an automated system provided by the
134 mortgagee or mortgage servicer for requesting an estoppel
135 letter. The written request is considered received by the
136 mortgagee or mortgage servicer:
137 a. Five business days after the request sent by first-
138 class mail is deposited with the United States Postal Service;
139 b. The day the request is delivered by a common carrier
140 delivery service; or
141 c. The day the request is sent by e-mail, facsimile, or
142 other electronic means or through an automated system provided
143 by the mortgagee or mortgage servicer for requesting an estoppel
144 letter.
145
146 If any of the days in sub-subparagraph a., sub-subparagraph b.,
147 or sub-subparagraph c. falls on a Saturday, Sunday, or legal
148 holiday under the laws of the state or the United States, the
149 request for an estoppel letter is considered timely received by
150 the mortgagee or mortgage servicer on the next business day.
Page 6 of 11
CODING: Words stricken are deletions; words underlined are additions.
hb0353-02-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 353 2022
151 2. The mortgagee or mortgage servicer must send an
152 estoppel letter by first-class mail; by common carrier delivery
153 service; or by e-mail, facsimile, or other electronic means, as
154 directed in the written request, or through an automated system
155 provided by the mortgagee or mortgage servicer for this purpose.
156 However, the mortgagee or mortgage servicer is not required to
157 pay for a common carrier delivery service. If the 10-day period
158 after a written request is received by the mortgagee or mortgage
159 servicer ends on a Saturday, Sunday, or legal holiday under the
160 laws of the state or the United States, the estoppel letter is
161 considered timely if it is sent by the close of business on the
162 next business day.
163 (g)(c) Notwithstanding s. 655.059, a mortgagee or mortgage
164 servicer mortgage holder may provide the financial information
165 required under this subsection to a person authorized under this
166 subsection to request the financial information notwithstanding
167 s. 655.059.
168 (2) Within 60 days after the unpaid balance of a loan
169 secured by a mortgage has been fully paid or paid pursuant to an
170 estoppel letter under subsection (1), whichever is earlier, the
171 mortgagee or mortgage servicer shall execute in writing an
172 instrument acknowledging satisfaction of the mortgage; have the
173 instrument acknowledged, or proven, and send it or cause it to
174 be sent for recording in the official records of the proper
175 county; and send or cause to be sent the recorded satisfaction
Page 7 of 11
CODING: Words stricken are deletions; words underlined are additions.
hb0353-02-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 353 2022
176 to the mortgagor or record title owner of the property. The
177 prevailing party in a civil action brought against the mortgagee
178 or mortgage servicer to enforce the requirements of this
179 subsection is entitled to reasonable attorney fees and costs.
180 (3)(2) Within 60 days after the unpaid balance Whenever
181 the amount of money due on a any mortgage, lien, or judgment has
182 been fully paid to the person or party entitled to the payment
183 thereof, the mortgagee, creditor, or assignee, or the attorney
184 of record in the case of a judgment, to whom the payment was
185 made, shall execute in writing an instrument acknowledging
186 satisfaction of the mortgage, lien, or judgment; and have the
187 instrument acknowledged, or proven, and send it or cause it to
188 be sent for recording duly entered in the official records of
189 the proper county; and. Within 60 days after the date of receipt
190 of the full payment of the mortgage, lien, or judgment, the
191 person required to acknowledge satisfaction of the mortgage,
192 lien, or judgment shall send or cause to be sent the recorded
193 satisfaction to the person who has made the full payment. In the
194 case of a civil action arising out of this section, The
195 prevailing party in a civil action brought against the creditor
196 or assignee, or the attorney of record in the case of a
197 judgment, to enforce the requirements of this subsection is
198 entitled to reasonable attorney fees and costs.
199 (4)(3) When Whenever a writ of execution has been issued,
200 docketed, and indexed with a sheriff and the judgment upon which
Page 8 of 11
CODING: Words stricken are deletions; words underlined are additions.
hb0353-02-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 353 2022
201 it was issued has been fully paid, it is the responsibility of
202 the person party receiving payment to request, in writing,
203 addressed to the sheriff, return of the writ of execution as
204 fully satisfied.
205 Section 2. Paragraph (a) of subsection (1) and subsection
206 (2) of section 701.041, Florida Statutes, are amended to read:
207 701.041 Title insurer; mortgage release certificate. —
208 (1) DEFINITIONS.—For purposes of this section:
209 (a) "Estoppel letter" means a statement containing, at a
210 minimum, the information required in s. 701.04(1)(b) of the
211 amount of:
212 1. The unpaid balance of a loan secured by a mortgage,
213 including principal, interest, and any other charges properly
214 due under or secured by the mortgage.
215 2. Interest on a per-day basis for the unpaid balance.
216 (2) CERTIFICATE OF RELEASE.—An officer or duly appointed
217 agent of a title insurer may, on behalf of a mortgagor or a
218 person who acquired from the mortgagor title to all or a part of
219 the property described in a mortgage, execute a certificate of
220 release that complies with the requirements of this section and
221 record the certificate of release in the real property records
222 of each county in which the mortgage is recorded if a
223 satisfaction or release of the mortgage has not been executed
224 and recorded after the date payment in full of the loan properly
225 due under or secured by the mortgage was made in accordance with
Page 9 of 11
CODING: Words stricken are deletions; words underlined are additions.
hb0353-02-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 353 2022
226 an estoppel letter a payoff statement furnished by the mortgagee
227 or the mortgage servicer.
228 Section 3. The Legislature finds that the timeliness and
229 accuracy of an estoppel letter is critical because the parties
230 to a real estate transaction must rely on the estoppel letter to
231 establish the loan payoff amount necessary to release the
232 mortgage, which in turn will allow the owner to confer clean
233 title to a buyer or to refinance the property. The Legislature
234 further finds that estoppel letters increasingly contain
235 conditional language disclaiming the ability of an owner to rely
236 on the stated loan payoff amounts, extending even to the return
237 of such payments submitted by owners, creating unnecessary
238 delays in the efficient operation of the state's real estate
239 market, which is a vital economic contributor to the state, and
240 imposing needless costs and burdens on property owners and
241 buyers. Additionally, the Legislature finds that real estate
242 lending, mortgages, real estate transactions, and estoppel
243 letters are extensively regulated under both state and federal
244 law. The Legislature finds and determines that this act makes
245 changes to state law that appropriately balance the parties'
246 interests, are reasonable and necessary to serve and achieve an
247 important state interest, are necessary for the prosperity and
248 welfare of the state and its property owners and inhabitants,
249 and must be applied to existing mortgages in order to provide
250 effective relief.
Page 10 of 11
CODING: Words stricken are deletions; words underlined are additions.
hb0353-02-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 353 2022
251 Section 4. This act applies to all mortgages, and all
252 loans secured by such mortgages, existing as of, or entered into
253 on or after, October 1, 2022.
254 Section 5. This act shall take effect October 1, 2022.
Page 11 of 11
CODING: Words stricken are deletions; words underlined are additions.
hb0353-02-c2
CS/HB 375
HOUSE OF REPRESENTATIVES STAFF ANALYSIS
BILL #: CS/HB 375 Structural Engineering Recognition Program for Professional Engineers
SPONSOR(S): Regulatory Reform Subcommittee, Toledo and others
TIED BILLS: HB 565 IDEN./SIM. BILLS: SB 940
REFERENCE ACTION ANALYST STAFF DIRECTOR or
BUDGET/POLICY CHIEF
1) Regulatory Reform Subcommittee 17 Y, 0 N, As CS Thompson Anstead
2) Commerce Committee Thompson Hamon
SUMMARY ANALYSIS
The practice of engineering is regulated by the Florida Board of Professional Engineers (Board) under the
Department of Business and Professional Regulation (DBPR) Division of Professions. The Board is
responsible for reviewing applications, administering exams, licensing qualified applicants, and regulating and
enforcing the proper practice of engineering in the state. The administrative, investigative, and prosecutorial
services for the Board are administered by the Florida Engineers Management Corporation (FEMC). FEMC is
a non-profit, single purpose corporation that operates through a contract with DBPR.
Current law requires that applicants for licensure as a professional engineer have certain qualifications,
including passing a fundamentals examination and a principles and practice examination, having good moral
character, obtaining a degree from a four year engineering curriculum, and having four years of engineering
experience.
The bill:
Establishes the “Structural Engineering Recognition Program for Professional Engineers” (Program).
Requires the Board to recognize any licensed professional engineer who:
o Has successfully passed the National Council of Examiners for Engineering and Surveying
Structural Engineering 16-hour PE Structural examination or any other examination approved by
the Board.
o Specializes in structural engineering based on alternative criteria determined by the Board.
Provides that upon application to the Board, a professional engineer who has the minimum program
requirements must be recognized as a professional engineer who has gone above and beyond in the
field of structural engineering.
Prohibits the Board from collecting a fee for the application or for recognition by the Program.
Authorizes a professional engineer who is recognized by the Program to identify the recognition in her
or his professional practice, including in marketing and advertising materials.
Provides that recognition by the Program is not required for a professional engineer to practice
structural engineering.
Requires the Board to adopt rules to implement these requirements.
The bill does not appear to have a fiscal impact on state or local government.
The effective date of the bill is July 1, 2022.
This docum ent does not reflect the intent or official position of the bill sponsor or House of Representatives .
STORAGE NAME: h0375a.COM
DATE: 2/21/2022
FULL ANALYSIS
I. SUBSTANTIVE ANALYSIS
A. EFFECT OF PROPOSED CHANGES:
Background
Professional Engineering
The practice of engineering1 is regulated by the Florida Board of Professional Engineers (Board) under
the Department of Business and Professional Regulation (DBPR) Division of Professions. 2 The Board
is responsible for reviewing applications, administering exams, licensing qualified applicants, and
regulating and enforcing the proper practice of engineering in the state. The administrative,
investigative, and prosecutorial services for the Board are administered by the Florida Engineers
Management Corporation (FEMC).3 FEMC is a non-profit, single purpose corporation that operates
through a contract with DBPR.
There were 62,909 licensed professional engineers in Fiscal Year 2020-2021.4 The FEMC processed
231 complaints regarding engineering practices during that period, with 137 of the complaints found to
be legally sufficient to proceed, and filed 68 administrative complaints in cases where probable cause
was found relating to a violation of the practice act.5
License Qualifications and Exemptions
Current law provides for license qualifications for a professional engineer to practice in the state.6 In
order to be licensed as a professional engineer, a person must successfully pass two examinations : the
fundamentals examination and the principles and practices examination. Prior to being permitted to sit
for the fundamentals examination, an applicant must have graduated from: 7
An approved engineering science curriculum of four years or more in a board-approved school,
college, or university; or
An approved engineering technology curriculum of four years or more in a board-approved
school, college, or university.
The FEMC is required to issue a license to any applicant who the board certifies is qualified to practice
engineering and who has passed the fundamentals and the principles and practice examination.8
The board is required to certify for licensure any applicant who has submitted proof of being at least 18
years old and has the required engineering experience. 9 For graduates of an approved engineering
science curriculum, the applicant must have a record of at least four years of active engineering
experience sufficient to indicate competence to be in responsible charge of engineering. Graduates of
1 Ch. 471, F.S., governs the licensing and regulation of professional engineers.
2 S. 20.165(4)(a)11., F.S.
3 S. 471.038(3), F.S.
4 Department of Business and Professional Regulation, Annual Report, Fiscal Year 2020-2021, for the Divisions of Certified Public
Accounting, Professions, Real Estate, and Regulation (2020-2021 Annual Report) at p. 20,
http://www.myfloridalicense.com/DBPR/os/documents/DivisionAnnualReport_FY2021.pdf (last visited Feb. 02, 2022).
5 See the Annual Report of the FEMC for FY 2020-2021, available at https://fbpe.org/wp-content/uploads/2021/10/2020-21-FEM C-
Annual-Report.pdf, p. 2 (last visited Jan. 19, 2022). The FEMC also filed 89 Final Orders with the DBPR; entered into three
negotiations, and tried one administrative hearing; dismissed two cases after re-consideration; issued 16 reprimands, three
suspensions, four probations, three project reviews, and three license restrictions; and imposed $44,765.23 in administrative costs and
$58,500 in fines. The board also issued 88 Final Orders against licensees.
6 S. 471.013, F.S.,
7 S. 471.013(1), F.S.
8 S. 471.015(1), F.S.
9 S. 471.015(2), F.S.
STORAGE NAME: h0375a.COM PAGE: 2
DATE: 2/21/2022
an approved engineering technology curriculum must have a record of at least six years of such
qualified experience.10
The law also identifies certain persons who are exempted from the licensing requirements. 11
Special Inspectors of Threshold Buildings
The board is authorized to establish by rule the qualifications for certification of licensees as inspectors
of threshold buildings.12 A “threshold building” is “any building which is greater than three stories or 50
feet in height, or which has an assembly occupancy classification as defined in the Florida Building
Code which exceeds 5,000 square feet in area and an occupant content of greater than 500 persons.” 13
The board is also authorized to establish minimum qualifications for the qualified representative of the
special inspector who is authorized to perform inspections of threshold buildings on behalf of the
special inspector.14
The agency charged with enforcing the building code (enforcing agency) 15 must require a special
inspector to perform structural inspections on a threshold building pursuant to a structural inspection
plan prepared by the engineer or architect of record.16
Engineer Seals
The board is authorized to prescribe, by rule, one or more forms of seal to be used by licensed
engineers.17 Each licensee must obtain at least one seal.18 All final drawings, specifications, plans,
reports, or documents prepared or issued by the licensee and filed for public record and all final
documents provided to the owner or the owner’s representative must be signed by the licensee, dated,
and sealed with the seal.19 The signature, date, and seal are evidence of the authenticity of the
document to which they are affixed.20
A licensee may not affix or permit to be affixed his or her seal, name, or digital signature to any plan,
specification, drawing, final bid document, or other document that depicts work which he or she is not
licensed to perform or which is beyond his or her profession or specialty. 21
A successor engineer seeking to reuse documents previously sealed by another engineer must be able
to independently re-create all of the work done by the original engineer, and assumes full professional
and legal responsibility by signing and affixing his or her seal to the assumed documents. 22
Descriptive Titles
Current law sets forth the permissible and prohibited titles for persons licensed under ch. 471, F.S., and
for persons who are otherwise exempted from such licensure. 23 With certain exceptions for persons
10 See ss. 471.015(2)(a)1. and 2., F.S.
11 S. 471.003(2), F.S.
12 S. 471.015(7), F.S.
13 See s. 553.71(12), F.S.
14 See s. 471.015(7), F.S.
15 See s. 553.71(5), F.S., which defines the term “local enforcement agency” to mean “an agency of local government, a local school
board, a community college board of trustees, or a university board of trustees in the State University System with jurisdict ion to make
inspections of buildings and to enforce the codes which establish standards for design, construction, erection, alteration, repair ,
modification, or demolition of public or private buildings, structures, or facilities.”
16 S. 553.79(5)(a), F.S.
17 S. 471.025(1), F.S.
18 S. 471.025(1), F.S.
19 Id.
20 Id.
21 S. 471.025(3), F.S.
22 S. 471.025(4), F.S. The original engineer is released from any professional responsibility or civil liability for work that is assumed.
23 S. 471.031, F.S.
STORAGE NAME: h0375a.COM PAGE: 3
DATE: 2/21/2022
exempted from licensure, the use of the name “professional engineer” or any other title, designation,
abbreviation, or indication that a person holds an active license as an engineer when the person is not
licensed under ch. 471, F.S., is prohibited, along with use of the following titles:
Agricultural engineer;
Air-conditioning engineer;
Architectural engineer;
Building engineer;
Chemical engineer;
Civil engineer;
Control systems engineer;
Electrical engineer;
Environmental engineer;
Fire protection engineer;
Industrial engineer;
Manufacturing engineer;
Mechanical engineer;
Metallurgical engineer;
Mining engineer;
Minerals engineer;
Marine engineer;
Nuclear engineer;
Petroleum engineer;
Plumbing engineer;
Structural engineer;
Transportation engineer;
Software engineer;
Computer hardware engineer; and
Systems engineer.24
Violations are a first degree misdemeanor punishable as provided in ss. 775.082 or 775.083, F.S. 25
Discipline by the Board
Current law outlines the conduct that constitutes grounds for the imposition of discipline by the board. 26
Such discipline includes denial of an application for licensure, suspension or revocation of a license,
imposition of fines, reprimands, probation, or restitution, and restriction of the authorized scope of
practice of a licensee.
Voluntary Structural Engineer Associations
The Florida Structural Engineers Association (FSEA) provides input on building codes and enforcement
and sponsors technical seminars to address common concerns of the profession. 27 Members of FSEA
become members of the National Council of Structural Engineers Associations (NCSEA).28 The
NCSEA was formed to improve the standard level of practice of the structural engineering profession
and provide an identifiable resource for seeking communication with the profession. 29 It advocates for
the practice of structural engineering on behalf of its 44 member organizations.30 According to the
24 See s. 471.031(1)(b ), F.S.
25 See s. 471.031(2), F.S.
26 S. 471.033, F.S.
27 Facebook, Florida Structural Engineers Association, https://www.facebook.com/pages/category/Local-business/Florida-Structural-
Engineering-Association-242110399280593/ (last visited Feb. 02, 2022).
28 National Council of Structural Engineers Associations, About Us, http://www.ncsea.com/about/ (last visited Feb. 02, 2022).
29 See http://www.ncsea.com/about/ (last visited Jan. 19, 2022).
30 Id.
STORAGE NAME: h0375a.COM PAGE: 4
DATE: 2/21/2022
NCSEA, two states restrict who may use the title “structural engineer,” 31 eight states have a partial
practice act for structural engineers,32 and two states have a full practice act for structural engineers.33
The National Council of Examiners for Engineering and Surveying is a nonprofit organization composed
of 69 engineering and surveying licensing boards from all 50 states, the District of Columbia, Guam,
Northern Mariana Islands, Puerto Rico, and the U.S. Virgin Islands.34 It provides services including
engineering examinations, surveying examinations, exam preparation materials, records programs, and
credentials evaluations among other services to licensing jurisdictions. 35
Legislative History Related to Structural Engineers
In 2015, the Governor vetoed36 legislation that created a separate license type for “structural
engineers.” Under the proposed legislation, structural engineers would have been licensed and
regulated similar to licensed professional engineers.
The veto letter pointed out that the bill:
Contained additional requirements and a new license for current and future engineers who wish
to practice structural engineering.
Required passing 16 hours of exams, and an unwarranted mechanism to exempt currently
licensed engineers from having to take and pass the qualifying exams.
Effect of the Bill
The bill establishes the Structural Engineering Recognition Program for Professional Engineers
(Program).
The bill requires the Board to:
Recognize professional engineers who specialize in structural engineering and have gone
above and beyond the required minimum professional engineer licensing standards.
Establish minimum requirements to receive recognition through the Program.
Recognize any licensed professional engineer who has successfully passed the National
Council of Examiners for Engineering and Surveying Structural Engineering 16-hour PE
Structural examination or any other examination approved by the Board.
The bill authorizes the Board to recognize any licensed professional engineer who specializes in
structural engineering based on alternative criteria determined by the Board.
The bill prohibits the Board from collecting a fee for the application or for recognition by the Program.
The bill authorizes a professional engineer who is recognized by the Program to identify the recognition
in her or his professional practice, including in marketing and advertising materials.
Recognition by the Program is not required for a professional engineer to practice structural
engineering.
The bill requires the Board to adopt rules to implement these requirements.
B. SECTION DIRECTORY:
31 Idaho and Nebraska. See http://www.ncsea.com/resources/licensure/ (last visited Jan. 19, 2022).
32 Alaska, California, Georgia, Nevada, Oklahoma, Oregon, Utah, and Washington.
33 Illinois and Hawaii.
34 See The National Council of Examiners for Engineering and Surveying (ncees.org) (last visited Jan. 19, 2022).
35 Id.
36 Veto Letter from Governor Rick Scott to Secretary of State Kenneth W. Detzner, House Bill 217 (2015),
https://www.flgov.com/wp-content/uploads/2015/06/Transmittal-Letter-6.11.15-HB-217.pdf (last visited Feb. 02, 2022).
STORAGE NAME: h0375a.COM PAGE: 5
DATE: 2/21/2022
Section 1: Creates s. 471.055, F.S., relating to the Structural Engineering Recognition Program for
Professional Engineers.
Section 2: Provides an effective date.
II. FISCAL ANALYSIS & ECONOMIC IMPACT STATEMENT
A. FISCAL IMPACT ON STATE GOVERNMENT:
1. Revenues:
None.
2. Expenditures:
None.
B. FISCAL IMPACT ON LOCAL GOVERNMENTS:
1. Revenues:
None.
2. Expenditures:
None.
C. DIRECT ECONOMIC IMPACT ON PRIVATE SECTOR:
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 requires the Board to adopt rules to implement the provisions in the bill.
C. DRAFTING ISSUES OR OTHER COMMENTS:
None.
IV. AMENDMENTS/COMMITTEE SUBSTITUTE CHANGES
On Tuesday, February 8, 2022, the Regulatory Reform Subcommittee considered a proposed committee
substitute and reported the bill favorably as a committee substitute. The committee substitute differs from
HB 375 in the following ways:
STORAGE NAME: h0375a.COM PAGE: 6
DATE: 2/21/2022
Establishes the “Structural Engineering Recognition Program for Professional Engineers .”
Requires the Board to recognize licensed professional engineers who pass the national structural
engineering examination or any other examination as determined by the Board, or specialize in
structural engineering or other criteria as determined by the Board.
Requires the Board to recognize professional engineers who have the minimum program
requirements as having gone above and beyond in the field of structural engineering.
Prohibits the Board from collecting a fee to administer the program.
Authorizes professional engineers to identify their recognition in their professional practice.
Provides that such recognition is not required to practice structural engineering.
Requires the Board to adopt rules to implement the program.
Removes the licensing provisions for structural engineers created in the original bill.
The analysis is drafted to the committee substitute as passed by the Regulatory Reform Subcommittee.
STORAGE NAME: h0375a.COM PAGE: 7
DATE: 2/21/2022
F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
CS/HB 375 2022
1 A bill to be entitled
2 An act relating to Structural Engineering Recognition
3 Program for Professional Engineers; creating s.
4 471.055, F.S.; establishing the Structural Engineering
5 Recognition Program for Professional Engineers;
6 requiring the Board of Professional Engineers to
7 recognize a licensed professional engineer who has
8 successfully passed a specified examination; providing
9 requirements for application and recognition;
10 prohibiting a fee for such application or for
11 recognition; authorizing a professional engineer
12 recognized by the program to identify such recognition
13 in her or his professional practice and marketing and
14 advertising materials; providing that recognition by
15 the program is not required to practice structural
16 engineering; requiring rulemaking; providing an
17 effective date.
18
19 Be It Enacted by the Legislature of the State of Florida:
20
21 Section 1. Section 471.055, Florida Statutes, is created
22 to read:
23 471.055 Structural Engineering Recognition Program for
24 Professional Engineers.—
25 (1) The board shall establish the Structural Engineering
Page 1 of 2
CODING: Words stricken are deletions; words underlined are additions.
hb0375-01-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 375 2022
26 Recognition Program for Professional Engineers to recognize
27 professional engineers who specialize in structural engineering
28 and have gone above and beyond the required minimum professional
29 engineer licensing standards. The board shall establish minimum
30 requirements to receive recognition through the program. The
31 board must recognize any licensed professional engineer who has
32 successfully passed the National Council of Examiners for
33 Engineering and Surveying Structural Engineering 16 -hour PE
34 Structural examination or any other examination approved by the
35 board. In addition, the board may recognize any licensed
36 professional engineer who specializes in structural engineering
37 based on alternative criteria determined by the board.
38 (2) Upon application to the board, a professional engineer
39 who has the minimum program requirements shall be recognized as
40 a professional engineer who has gone above and beyond in the
41 field of structural engineering. The board may not collect a fee
42 for such application or for recognition by the program.
43 (3) A professional engineer who is recognized by the
44 program may identify such recognition in her or his pro fessional
45 practice, including in marketing and advertising materials.
46 (4) Recognition by the program is not required for a
47 professional engineer to practice structural engineering.
48 (5) The board shall adopt rules to implement this section.
49 Section 2. This act shall take effect July 1, 2022.
Page 2 of 2
CODING: Words stricken are deletions; words underlined are additions.
hb0375-01-c1
CS/CS/HB 389
HOUSE OF REPRESENTATIVES STAFF ANALYSIS
BILL #: CS/CS/HB 389 Money Services Businesses
SPONSOR(S): State Administration & Technology Appropriations Subcommittee, Insurance & Banking
Subcommittee, Zika
TIED BILLS: IDEN./SIM. BILLS: CS/CS/SB 1536
REFERENCE ACTION ANALYST STAFF DIRECTOR or
BUDGET/POLICY CHIEF
1) Insurance & Banking Subcommittee 15 Y, 0 N, As CS Hinshelwood Luczynski
2) State Administration & Technology 13 Y, 0 N, As CS Lee Topp
Appropriations Subcommittee
3) Commerce Committee Hinshelwood Hamon
SUMMARY ANALYSIS
The Office of Financial Regulation’s (OFR) Division of Consumer Finance licenses and regulates various aspects of
the non-depository financial services industries, including money services businesses (MSBs) regulated under ch.
560, F.S. MSB applicants must submit fingerprints to the Florida Department of Law Enforcement (FDLE) for a state
criminal history background check, and the fingerprints must be submitted to the Federal Bureau of Investigation
(FBI) for a federal criminal history background check. The OFR must review the results of the state and federal
criminal history background checks and determine whether the applicant meets licensure requirements.
Access to the FBI’s criminal history record information (CHRI) system is authorized for fingerprints pursuant to ch.
560, F.S. However, in order to obtain CHRI for applicants to the recently created Financial Technology Sandbox,
FDLE sent correspondence to the FBI’s Criminal Justice Information Law Unit (CJILU) to obtain an Or iginating
Agency Identifier (ORI). The ORI validates legal authorization to obtain criminal justice information and identifies the
specific agency requesting the information. CJILU responded to this request stating that the MSB licensing statute
does not qualify for access to CHRI because the terms “responsible person” and “control of a money services
business”, as used in that statute to specify persons who are required to submit fingerprints, are overly broad and,
thus, do not sufficiently define the categories of people subject to the background check. The CJILU acknowledged
that MSB fingerprinting was previously approved by the CJILU, and that the FBI will continue to honor fingerprints
submitted for MSB licensure. However, the CJILU has placed MSB finge rprinting on a grace period of unspecified
length in order to allow Florida to amend MSB fingerprinting statutes such that the statutes specifically identify the
categories of licensees or employees falling within the purview of the statutes; CJILU will no t allow fingerprinting of
additional categories of applicants (i.e., those applying under the Financial Technology Sandbox) during this grace
period.
The bill creates the term “control person” and repeals the definitions of “officer” and “responsible p erson”. Some of
the elements from these repealed definitions are made part of the “control person” definition. The bill inserts “control
person” throughout ch. 560, F.S., in place of these repealed definitions as well as other positions within an MSB that
are consolidated under the newly defined term “control person”. A person who meets the definition of “control
person”, as defined in the bill, must submit fingerprints and be vetted by the OFR. The bill clarifies the OFR’s duties
associated with fingerprinting control persons who are added to existing MSBs. The bill relocates the definition of
“publicly traded” such that the definition applies to all current uses of the term “publicly traded” throughout the
chapter regulating MSBs.
The bill has no fiscal impact on the state, local governments, or the private sector.
The bill provides an effective date of October 1, 2022.
This docum ent does not reflect the intent or official position of the bill sponsor or House of Representatives .
STORAGE NAME: h0389c.COM
DATE: 2/21/2022
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 Division of Consumer Finance within the OFR
licenses and regulates various aspects of the non-depository financial services industries, including
money services businesses (MSBs) regulated under ch. 560, F.S. An MSB is any person located in or
doing business in this state, from this state, or into this state from locations outside this state or country
who acts as the following:2
Payment instrument seller: A payment instrument seller sells, issues, provides, or delivers
payment instruments.3
Foreign currency exchanger: A foreign currency exchanger exchanges, for compensation,
currency4 of the United States or a foreign government to currency of another government. 5
Check casher: A check casher sells, issues, provides, or delivers currency6 in exchange for
payment instruments 7 received, except travelers checks.8
Money transmitter: A money transmitter receives currency,9 monetary value,10 or payment
instruments 11 for the purpose of transmitting the same by any means, including transmission by
wire, facsimile, electronic transfer, courier, the Internet, or through bill payment services or other
businesses that facilitate such transfer within this country, or to or from this country. 12
An MSB may engage in deferred presentment transactions, commonly known as “payday loans”, by
filing a declaration of intent to engage in deferred presentment transactions with the OFR.13 A money
transmitter or payment instrument seller may engage in the activities authorized for check cashers and
foreign currency exchangers without paying additional licensing fees.14 State and federally chartered
depository institutions, such as banks and credit unions, are exempt from licensure as an MSB. 15
An applicant for an MSB license must submit the following to the OFR:
An application;16
A nonrefundable application fee;17
1 S. 20.121(3)(a)2., F.S.
2 S. 560.103(22), F.S.
3 S. 560.103(30) and (34), F.S. The term “payment instrument” means a check, draft, warrant, money order, travelers
check, electronic instrument, or other instrument, payment of money, or monetary value whether or not negotiable. The
term does not include an instrument that is redeemable by the issuer in merchandise or service, a credit card voucher, or
a letter of credit. S. 560.103(29), F.S.
4 The term “currency” means the coin and paper money of the United States or of any other country which is designated
as legal tender and which circulates and is customarily used and accepted as a medium of exchange in the country of
issuance. Currency includes United States silver certificates, United States notes, and Federal Reserve notes. Currency
also includes official foreign bank notes that are customarily used and accepted as a medium of exchange in a foreign
country. S. 560.103(11), F.S.
5 S. 560.103(17), F.S.
6 Definition of “currency”, supra note 4.
7 Definition of “payment instrument”, supra note 3.
8 S. 560.103(6) and (34), F.S.
9 Definition of “currency”, supra note 4.
10 The term “monetary value” means a medium of exchange, whether or not redeemable in currency. S. 560.103(21), F.S.
11 Definition of “payment instrument”, supra note 3.
12 S. 560.103(23), F.S.
13 S. 560.403, F.S.
14 S. 560.204(2), F.S.
15 S. 560.104, F.S.
16 S. 560.141(1)(a), F.S.
17 Ss. 560.141(1)(b) and 560.143, F.S.
STORAGE NAME: h0389c.COM PAGE: 2
DATE: 2/21/2022
A copy of the applicant’s written anti-money laundering program required by federal law;18 and
Fingerprints for the following individuals:19
o An officer, which is defined as an individual, other than a director, who participates in, or
has authority to participate in, the major policymaking functions of an MSB, regardless
of whether the individual has an official title or receives a salary or other
compensation.20
o A director.
o A responsible person, which is defined as an individual who is employed by or affiliated
with an MSB and who has principal active management authority over the business
decisions, actions, and activities of the MSB in this state.21 In turn, “affiliated party”
means a director, officer, responsible person, employee, or foreign affiliate of an MSB,
or a person who has a controlling interest in an MSB.22
o The compliance officer, which is defined as the individual in charge of overseeing,
managing, and ensuring that an MSB is in compliance with all state and federal laws
and rules relating to MSBs, as applicable, including all money laundering laws and
rules.23
o A controlling shareholder.
o Any other person who has a controlling interest, meaning a person who:24
Possesses the power, directly or indirectly, to direct the management or policies
of the MSB, whether through ownership, by contract, or otherwise;
Directly or indirectly may vote 25 percent or more of a class of a voting security
or sell or direct the sale of 25 percent or more of a class of voting securities; or
In the case of a partnership, may receive upon dissolution or has contributed 25
percent or more of the capital.
Fingerprints are not required if the applicant is a publicly traded corporation. 25 If fingerprints are
required, the fingerprints must be submitted for live-scan processing.26 Live-scan is a device that
electronically takes fingerprints and other information and uploads that information to the Florida
Department of Law Enforcement (FDLE) who, in turn, sends the fingerprints to the Federal Bureau of
Investigation (FBI) for a fingerprint background check.27 The fingerprints may be submitted through a
third-party vendor authorized by FDLE to provide live-scan fingerprinting.28 FDLE must conduct the
state criminal history background check, and a federal criminal history background check must be
conducted through the FBI.29 The costs of fingerprint processing, including the cost of retaining the
fingerprints, must be borne by the person subject to the background check. 30 The OFR must review the
results of the state and federal criminal history background checks and determine whether the applicant
meets licensure requirements.31
An MSB license must be renewed every two years.32
18 S. 560.141(d), F.S.
19 Ss. 560.141(c) and 560.127, F.S.
20 S. 560.103(26), F.S.
21 S. 560.103(33), F.S.
22 S. 560.103(1), F.S.
23 S. 560.103(8), F.S.
24 S. 560.127, F.S.
25 S. 560.141(1)(c)6., F.S.
26 S. 560.141(1)(c), F.S.
27 Florida Live Scan,
https://livescanflorida.com/#:~:text=LiveScan%20is%20a% 20device%20t hat,for%20a%20fingerprint%20background%20c
heck. (last visited Jan. 25, 2022).
28 S. 560.141(1)(c)1., F.S.
29 S. 560.141(1)(c)2., F.S.
30 S. 560.141(1)(c)4., F.S.
31 S. 560.141(1)(c)5., F.S.
32 Ss. 560.141(2) and 560.142, F.S.
STORAGE NAME: h0389c.COM PAGE: 3
DATE: 2/21/2022
Once licensed, an MSB is required to report any change in the partners, officers, members, joint
venturers, directors, controlling shareholders, or responsible persons. 33 If such person does not have a
controlling interest in the MSB, then the person must simply comply with fingerprint requirements and
be vetted by the OFR.34 If any person, directly or indirectly or acting by or through one or more persons,
proposes to purchase or acquire a controlling interest in an MSB, such person or group must submit a
new application for licensure at least 30 days before such purchase or acquisition.35 Such a change of
control application is not required where the person or group of persons has previously complied with
applicable licensing provisions, provided that they are currently affiliated with the MSB, or where the
person or group of persons is currently licensed with the OFR as an MSB.36 A change of control
application must be accompanied by the payment of an initial licensing fee and a fee per branch or
authorized vendor, up to a maximum of $20,000.37
As previously mentioned, when fingerprinting is required, the fingerprints must be submitted to FDLE
for a state and federal criminal history background check. The federal background check is conducted
through the FBI’s criminal history record information (CHRI) system. Federal law Pub. L. 92-544
authorizes the exchange of CHRI with officials of state and local governmental agencies for licensing
and employment purposes.38 One of the primary purposes for enacting Pub. L. 92-544 was to establish
a national policy with adequate sanctions and administrative safeguards regarding the dissemination of
FBI’s CHRI to state and local governments for non-criminal justice licensing and employment
purposes.39 The FBI, with the assistance of the United States Department of Justice, has determined
the parameters of Pub. L. 92-544.40 The criteria for granting access to the FBI’s CHRI are as follows:
a. The state’s statute requiring fingerprinting must exist as a result of a legislative enactment;
b. It must require the fingerprinting of applicants who are to be subjected to a national criminal
history background check;
c. It must, expressly (“submit to the FBI”) or by implication (“submit for a national check”),
authorize the use of FBI records for the screening of applicants;
d. It must identify the specific category(ies) of licensees/employees falling within its purview,
thereby avoiding over breadth;
e. It must not be against public policy; and
f. It may not authorize receipt of the CHRI by a private entity.
Access to the FBI’s CHRI is authorized for fingerprints pursuant to ch. 560, F.S. However, in order to
obtain CHRI for applicants to the recently created Financial Technology Sandbox under s. 559.952,
F.S., created in the 2020 legislative session,41 FDLE sent correspondence to the FBI’s Criminal Justice
Information Law Unit (CJILU) to obtain an Originating Agency Identifier (ORI). The ORI validates legal
authorization to obtain criminal justice information and identifies the specific agency requesting the
information. CJILU reviewed s. 559.952, F.S., which derives its fingerprinting authority from s. 560.141,
F.S. CJILU responded to this request stating that s. 560.141, F.S., does not qualify for access to CHRI
because the terms “responsible person” and “control of a money services business” as used in s.
560.141, F.S., are overly broad and, thus, do not sufficiently define the categories of people subject to
the background check.42 The CJILU acknowledged that MSB fingerprinting was previously approved by
the CJILU and that the FBI will continue to honor fingerprints submitted for MSB licensure.43 However,
the CJILU has placed MSB fingerprinting on a grace period of unspecified length in order to allow
33 S. 560.126(3), F.S.
34 S. 560.126(3)(b), F.S.
35 S. 560.126(3)(a), F.S.; r. 69v-560.201(3), F.A.C.
36 S. 560.126(3)(c), F.S.; r. 69v-560.201(6), F.A.C.
37 Ss. 560.126(3) and 560.143(1), F.S.
38 20 C.F.R. § 20.33.
39 Federal Bureau of Investigation, Testimony of Dennis Lormel Before the House Financial Services Committee (Mar. 06,
2001), https://archives.fbi.gov/archives/news/testimony/fbis-pers pective-on-criminal-history-record-information-checks-on-
individuals-conducting-insuranc e-business (last visited Jan. 25, 2022).
40 Email from Heather R. Postlethwait, FBI Office of the General Counsel, to Nathan Pate, Florida Department of Law
Enforcement, RE: ORI Request - Florida Office of Financial Regulation (Mar. 22, 2021).
41 Ch. 2020-161, Laws of Fla.
42 Email from Heather R. Postlethwait, supra note 40.
43 Id.
STORAGE NAME: h0389c.COM PAGE: 4
DATE: 2/21/2022
Florida to amend MSB fingerprinting statutes such that the statutes specifically identify the categories
of licensees or employees falling within the purview of the statutes; CJILU will not allow fingerprinting of
additional categories of applicants (i.e., those applying under the Financial Technology Sandbox)
during this grace period.44
Effect of the Bill
The bill creates the term “control person” and defines the term as any of the following:
A person who holds the title of president, chief executive officer, chief financial officer, chief
operations officer, chief legal officer, or compliance officer for an MSB.
A person who holds any of the officer positions named in the MSB’s governing documents.
A person who holds any position named by the MSB's liability insurance coverage for directors
and officers, if the business has such coverage.
A director of the MSB's board of directors.
A person who directs the affairs of an MSB or who participates in, or has authority to participate
in, the major policymaking functions of an MSB, regardless of whether the person has an
official title or receives a salary or other compensation.
For an MSB that is a corporation, all shareholders that, directly or indirectly, own 25 percent or
more or that have the power to vote 25 percent or more of a class of voting securities.
For an MSB that is a partnership, all general partners, and those limited or special partners that
have contributed 25 percent or more or that have the right to receive upon dissolution 25
percent or more of the partnership's capital.
For an MSB that is a limited liability company, all managers, and those members that have
contributed 25 percent or more or that have the right to receive upon dissolution 25 percent or
more of the limited liability company's capital.
The bill repeals the definitions of “officer” and “responsible person”, and some of the elements from
these repealed definitions are made part of the “control person” definition. The bill inserts “control
person” throughout ch. 560, F.S., in place of these repealed definitions as well as other positions within
an MSB that are consolidated under the newly defined term “control person”.
A person who meets the definition of “control person”, as defined in the bill, must submit fingerprints
and be vetted by the OFR. The bill clarifies the OFR’s duties associated with fingerprinting control
persons who are added to existing MSBs. Upon the addition of a control person, the OFR must
evaluate the added control person and ensure that such person has submitted fingerprints for
processing. If the OFR determines that addition of the control person would cause the MSB to no
longer meet the licensure requirements under ch. 560, F.S., the OFR may bring an administrative
action to enforce the provisions of the chapter.
The bill relocates the definition of “publicly traded” from within s. 560.141(1)(c)6., F.S., to the main
definitions statute of ch. 560, F.S., such that the definition applies to all current uses of the term
“publicly traded” throughout the chapter.
The bill provides an effective date of October 1, 2022.
B. SECTION DIRECTORY:
Section 1. Amends s. 560.103, F.S., relating to definitions.
Section 2. Amends s. 560.118, F.S., relating to reports.
Section 3. Amends s. 560.123, F.S., relating to Florida Control of Money Laundering in Money
Services Business Act.
Section 4. Amends s. 560.126, F.S., required notice by licensee.
44 Id.
STORAGE NAME: h0389c.COM PAGE: 5
DATE: 2/21/2022
Section 5. Amends s. 560.141, F.S., relating to license application.
Section 6 Reenacts s. 559.952, F.S., relating to Financial Technology Sandbox.
Section 7. Reenacts s. 560.114, F.S., disciplinary actions; penalties.
Section 8. Provides an effective date of October 1, 2022.
II. FISCAL ANALYSIS & ECONOMIC IMPACT STATEMENT
A. FISCAL IMPACT ON STATE GOVERNMENT:
1. Revenues:
None.
2. Expenditures:
None.
B. FISCAL IMPACT ON LOCAL GOVERNMENTS:
1. Revenues:
None.
2. Expenditures:
None.
C. DIRECT ECONOMIC IMPACT ON PRIVATE SECTOR:
None.
D. FISCAL COMMENTS:
None.
III. COMMENTS
A. CONSTITUTIONAL ISSUES:
1. Applicability of Municipality/County Mandates Provision:
Not applicable. The bill does not appear to affect county or municipal governments.
2. Other:
None.
B. RULE-MAKING AUTHORITY:
The Financial Services Commission (commission) 45 will need to amend rules to conform to changes
made by the bill.
C. DRAFTING ISSUES OR OTHER COMMENTS:
45 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 are the OFR’s agency head for the purpose of
rulemaking. S. 20.121(3)(c), F.S.
STORAGE NAME: h0389c.COM PAGE: 6
DATE: 2/21/2022
The changes proposed by the bill have not yet been reviewed by the FBI. Continued access to national
criminal history record information for persons required to submit fingerprints pursuant to ch. 560, F.S.,
is reliant upon the FBI’s approval of the changes made by the bill.46
IV. AMENDMENTS/ COMMITTEE SUBSTITUTE CHANGES
On January 27, 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 389 in
the following ways:
Amends definitions.
Removes provisions relating to permanent or temporary bars to licensure or suspension of a
license.
Makes other technical and conforming changes.
On February 15, 2022, the State Administration & Technology Appropriations Subcommittee considered
one amendment, which was adopted, and reported the bill favorably as a committee subs titute. The
committee substitute:
Removes the fiscal impact of the bill by restoring current law relating to an application for change of
control of a money services business.
Further clarifies the fingerprint provisions for money services businesses.
The staff analysis has been updated to reflect the committee substitute as passed by the State
Administration & Technology Appropriations Subcommittee.
46 Florida Department of Law Enforcement, Agency Analysis of 2022 Senate Bill 1536 (Jan. 10, 2022).
STORAGE NAME: h0389c.COM PAGE: 7
DATE: 2/21/2022
F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
CS/CS/HB 389 2022
1 A bill to be entitled
2 An act relating to money services businesses; amending
3 s. 560.103, F.S.; defining the terms "control person"
4 and "publicly traded"; revising and deleting
5 definitions; amending s. 560.118, F.S.; providing that
6 a rule may require certain reports to the Office of
7 Financial Regulation to contain declarations by
8 control persons, rather than officers or other
9 responsible persons; amending s. 560.123, F.S.;
10 providing that control persons, rather than officers,
11 are not liable for loss or damages under certain
12 circumstances; amending s. 560.126, F.S.; requiring
13 licensees to report changes in control persons, rather
14 than in certain other entities or persons; providing
15 that the addition of a control person, rather than
16 certain other entities or persons, is subject to
17 certain requirements; amending s. 560.141, F.S.;
18 revising requirements for applications for licensure
19 as a money services business; deleting the definition
20 of the term "publicly traded"; reenacting s.
21 559.952(4)(a), F.S., relating to the Financial
22 Technology Sandbox, to incorporate the amendments made
23 to ss. 560.118 and 560.141, F.S., in references
24 thereto; reenacting s. 560.114(2)(c), F.S., relating
25 to disciplinary actions and penalties, to incorporate
Page 1 of 20
CODING: Words stricken are deletions; words underlined are additions.
hb0389-02-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 389 2022
26 the amendment made to s. 560.141, F.S., in a reference
27 thereto; providing an effective date.
28
29 Be It Enacted by the Legislature of the State of Florida:
30
31 Section 1. Section 560.103, Florida Statutes, is amended
32 to read:
33 560.103 Definitions.—As used in this chapter, the term:
34 (1) "Affiliated party" means a control director, officer,
35 responsible person, employee, or foreign affiliate of a money
36 services business, or a person who has a controlling interest in
37 a money services business as provided in s. 560.127.
38 (2) "Appropriate regulator" means a state, federal, or
39 foreign agency that has been granted authority to enforce state,
40 federal, or foreign laws related to a money services business or
41 deferred presentment provider.
42 (3) "Authorized vendor" means a person designated by a
43 money services business licensed under part II of this chapter
44 to act on behalf of the licensee at locations in this state
45 pursuant to a written contract with the licensee.
46 (4) "Branch office" means the physical location, other
47 than the principal place of business, of a money services
48 business operated by a licensee under this chapter.
49 (5) "Cashing" means providing currency for payment
50 instruments except for travelers checks.
Page 2 of 20
CODING: Words stricken are deletions; words underlined are additions.
hb0389-02-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 389 2022
51 (6) "Check casher" means a person who sells currency in
52 exchange for payment instruments received, except travelers
53 checks.
54 (7) "Commission" means the Financial Services Commission.
55 (8) "Compliance officer" means the individual in charge of
56 overseeing, managing, and ensuring that a money services
57 business is in compliance with all state and federal laws and
58 rules relating to money services businesses, as applicable,
59 including all money laundering laws and rules.
60 (9) "Conductor" means a natural person who presents
61 himself or herself to a licensee for purposes of cashing a
62 payment instrument.
63 (10) "Control person" means any of the following:
64 (a) A person who holds the title of president, chief
65 executive officer, chief financial officer, chief operations
66 officer, chief legal officer, or compliance officer for a money
67 services business.
68 (b) A person who holds any of the officer positions named
69 in the money services business's governing documents.
70 (c) A person who holds any position named by the money
71 services business's liability insurance coverage for directors
72 and officers, if the business has such coverage.
73 (d) A director of the money services business's board of
74 directors.
75 (e) A person who directs the affairs of a money services
Page 3 of 20
CODING: Words stricken are deletions; words underlined are additions.
hb0389-02-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 389 2022
76 business or who participates in, or has authority to participate
77 in, the major policymaking functions of a money services
78 business, regardless of whether the person has an official title
79 or receives a salary or other compensation.
80 (f) For a money services business that is a corporation,
81 all shareholders that, directly or indirectly, own 25 percent or
82 more or that have the power to vote 25 percent or more of a
83 class of voting securities.
84 (g) For a money services business that is a partnership,
85 all general partners, and those limited or special partners that
86 have contributed 25 percent or more or that have the right to
87 receive upon dissolution 25 percent or more of the partnership's
88 capital.
89 (h) For a money services business that is a limited
90 liability company, all managers, and those members that have
91 contributed 25 percent or more or that have the right to receive
92 upon dissolution 25 percent or more of the limited liability
93 company's capital.
94 (11)(10) "Corporate payment instrument" means a payment
95 instrument on which the payee named on the instrument's face is
96 other than a natural person.
97 (12)(11) "Currency" means the coin and paper money of the
98 United States or of any other country which is designated as
99 legal tender and which circulates and is customarily used and
100 accepted as a medium of exchange in the country of issuance.
Page 4 of 20
CODING: Words stricken are deletions; words underlined are additions.
hb0389-02-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 389 2022
101 Currency includes United States silver certificates, United
102 States notes, and Federal Reserve notes. Currency also includes
103 official foreign bank notes that are customarily used and
104 accepted as a medium of exchange in a foreign country.
105 (13)(12) "Deferred presentment provider" means a person
106 who is licensed under part II or part III of this chapter and
107 has filed a declaration of intent with the office to engage in
108 deferred presentment transactions as provided under part IV of
109 this chapter.
110 (14)(13) "Department" means the Department of Financial
111 Services.
112 (15)(14) "Electronic instrument" means a card, tangible
113 object, or other form of electronic payment for the transmission
114 or payment of money or the exchange of monetary value, including
115 a stored value card or device that contains a microprocessor
116 chip, magnetic stripe, or other means for storing information;
117 that is prefunded; and for which the value is decremented upon
118 each use.
119 (16)(15) "Financial audit report" means a report prepared
120 in connection with a financial audit that is conducted in
121 accordance with generally accepted auditing standards prescribed
122 by the American Institute of Certified Public Accountants by a
123 certified public accountant licensed to do business in the
124 United States, and which must include:
125 (a) Financial statements, including notes related to the
Page 5 of 20
CODING: Words stricken are deletions; words underlined are additions.
hb0389-02-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 389 2022
126 financial statements and required supplementary information,
127 prepared in conformity with accounting principles generally
128 accepted in the United States. The notes must, at a minimum,
129 include detailed disclosures regarding receivables that are
130 greater than 90 days, if the total amount of such receivables
131 represents more than 2 percent of the licensee's total assets.
132 (b) An expression of opinion regarding whether the
133 financial statements are presented in conformity with accounting
134 principles generally accepted in the United States, or an
135 assertion to the effect that such an opinion cannot be expressed
136 and the reasons.
137 (17)(16) "Foreign affiliate" means a person located
138 outside this state who has been designated by a licensee to make
139 payments on behalf of the licensee to persons who reside outside
140 this state. The term also includes a person located outside of
141 this state for whom the licensee has been designated to make
142 payments in this state.
143 (18)(17) "Foreign currency exchanger" means a person who
144 exchanges, for compensation, currency of the United States or a
145 foreign government to currency of another government.
146 (19)(18) "Fraudulent identification paraphernalia" means
147 all equipment, products, or materials of any kind that are used,
148 intended for use, or designed for use in the misrepresentation
149 of a customer's identity. The term includes, but is not limited
150 to:
Page 6 of 20
CODING: Words stricken are deletions; words underlined are additions.
hb0389-02-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 389 2022
151 (a) A signature stamp, thumbprint stamp, or other tool or
152 device used to forge a customer's personal identification
153 information.
154 (b) An original of any type of personal identification
155 listed in s. 560.310(2)(b) which is blank, stolen, or unlawfully
156 issued.
157 (c) A blank, forged, fictitious, or counterfeit instrument
158 in the similitude of any type of personal identification listed
159 in s. 560.310(2)(b) which would in context lead a reasonably
160 prudent person to believe that such instrument is an authentic
161 original of such personal identification.
162 (d) Counterfeit, fictitious, or fabricated information in
163 the similitude of a customer's personal identification
164 information that, although not authentic, would in context lead
165 a reasonably prudent person to credit its authenticity.
166 (20)(19) "Licensee" means a person licensed under this
167 chapter.
168 (21)(20) "Location" means a branch office, mobile
169 location, or location of an authorized vendor whose business
170 activity is regulated under this chapter.
171 (22)(21) "Monetary value" means a medium of exchange,
172 whether or not redeemable in currency.
173 (23)(22) "Money services business" means any person
174 located in or doing business in this state, from this state, or
175 into this state from locations outside this state or country who
Page 7 of 20
CODING: Words stricken are deletions; words underlined are additions.
hb0389-02-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 389 2022
176 acts as a payment instrument seller, foreign currency exchanger,
177 check casher, or money transmitter.
178 (24)(23) "Money transmitter" means a corporation, limited
179 liability company, limited liability partnership, or foreign
180 entity qualified to do business in this state which receives
181 currency, monetary value, or payment instruments for the purpose
182 of transmitting the same by any means, including transmission by
183 wire, facsimile, electronic transfer, courier, the Internet, or
184 through bill payment services or other businesses that
185 facilitate such transfer within this country, or to or from this
186 country.
187 (25)(24) "Net worth" means assets minus liabilities,
188 determined in accordance with United States generally accepted
189 accounting principles.
190 (26)(25) "Office" means the Office of Financial Regulation
191 of the commission.
192 (26) "Officer" means an individual, other than a director,
193 who participates in, or has authority to participate in, the
194 major policymaking functions of a money services business,
195 regardless of whether the individual has an official title or
196 receives a salary or other compensation.
197 (27) "Outstanding money transmission" means a money
198 transmission to a designated recipient or a refund to a sender
199 that has not been completed.
200 (28) "Outstanding payment instrument" means an unpaid
Page 8 of 20
CODING: Words stricken are deletions; words underlined are additions.
hb0389-02-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 389 2022
201 payment instrument whose sale has been reported to a licensee.
202 (29) "Payment instrument" means a check, draft, warrant,
203 money order, travelers check, electronic instrument, or other
204 instrument, payment of money, or monetary value whether or not
205 negotiable. The term does not include an instrument that is
206 redeemable by the issuer in merchandise or service, a credit
207 card voucher, or a letter of credit.
208 (30) "Payment instrument seller" means a corporation,
209 limited liability company, limited liability partnership, or
210 foreign entity qualified to do business in this state which
211 sells a payment instrument.
212 (31) "Person" means an individual, partnership,
213 association, trust, corporation, limited liability company, or
214 other group, however organized, but does not include a public
215 agency or instrumentality thereof.
216 (32) "Personal identification information" means a
217 customer's name that, alone or together with any of the
218 following information, may be used to identify that specific
219 customer:
220 (a) Customer's signature.
221 (b) Photograph, digital image, or other likeness of the
222 customer.
223 (c) Unique biometric data, such as the customer's
224 thumbprint or fingerprint, voice print, retina or iris image, or
225 other unique physical representation of the customer.
Page 9 of 20
CODING: Words stricken are deletions; words underlined are additions.
hb0389-02-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 389 2022
226 (33) "Responsible person" means an individual who is
227 employed by or affiliated with a money services business and who
228 has principal active management authority over the business
229 decisions, actions, and activities of the money services
230 business in this state.
231 (33) "Publicly traded" means a stock is currently traded
232 on a national securities exchange registered with the Securities
233 and Exchange Commission, or traded on an exchange in a country
234 other than the United States regulated by a regulator equivalent
235 to the Securities and Exchange Commission and the disclosure and
236 reporting requirements of such regulator are substantially
237 similar to those of the Securities and Exchange Commission.
238 (34) "Sells" means to sell, issue, provide, or deliver.
239 (35) "Stored value" means funds or monetary value
240 represented in digital electronic format, whether or not
241 specially encrypted, and stored or capable of storage on
242 electronic media in such a way as to be retrievable and
243 transferred electronically.
244 Section 2. Subsection (2) of section 560.118, Florida
245 Statutes, is amended to read:
246 560.118 Reports.—
247 (2) Each licensee must submit quarterly reports to the
248 office in a format and include information as specified by rule.
249 The rule may require the report to contain a declaration by a
250 control an officer, or any other responsible person authorized
Page 10 of 20
CODING: Words stricken are deletions; words underlined are additions.
hb0389-02-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 389 2022
251 to make such declaration, that the report is true and correct to
252 the best of her or his knowledge and belief.
253 Section 3. Paragraph (d) of subsection (3) of section
254 560.123, Florida Statutes, is amended to read:
255 560.123 Florida Control of Money Laundering in Money
256 Services Business Act.—
257 (3) A money services business shall keep a record of each
258 financial transaction occurring in this state which it knows to
259 involve currency or other payment instrument, as prescribed by
260 the commission, having a value greater than $10,000; to involve
261 the proceeds of specified unlawful activity; or to be designed
262 to evade the reporting requirements of this section or chapter
263 896. The money services business must maintain appropriate
264 procedures to ensure compliance with this section and chapter
265 896.
266 (d) A money services business, or control person officer,
267 employee, or agent thereof, that files a report in good faith
268 pursuant to this section is not liable to any person for loss or
269 damage caused in whole or in part by the making, filing, or
270 governmental use of the report, or any information contained
271 therein.
272 Section 4. Subsection (3) of section 560.126, Florida
273 Statutes, is amended to read:
274 560.126 Required notice by licensee.—
275 (3) Each licensee must report any change in the control
Page 11 of 20
CODING: Words stricken are deletions; words underlined are additions.
hb0389-02-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 389 2022
276 partners, officers, members, joint venturers, directors,
277 controlling shareholders, or responsible persons of the licensee
278 or changes in the form of business organization by written
279 amendment in such form and at such time as specified by rule.
280 (a) If any person, directly or indirectly or acting by or
281 through one or more persons, proposes to purchase or acquire a
282 controlling interest in a licensee, such person or group must
283 submit an application for licensure as a money services business
284 or deferred presentment provider before such purchase or
285 acquisition at such time and in such form as prescribed by rule.
286 As used in this subsection, the term "controlling interest"
287 means the same as described in s. 560.127.
288 (b) Upon the addition of a control person, the office
289 shall evaluate the added control person and ensure that such
290 person has submitted fingerprints for processing pursuant to s.
291 560.141(1)(c) partner, officer, member, joint venturer,
292 director, controlling shareholder, or responsible person of the
293 applicant who does not have a controlling interest and who has
294 not previously complied with the applicable provisions of ss.
295 560.1401 and 560.141 is subject to such provisions. If the
296 office determines that the addition of the control person would
297 cause the money services business to no longer the licensee does
298 not continue to meet the licensure requirements under this
299 chapter, the office may bring an administrative action in
300 accordance with s. 560.114 to enforce the provisions of this
Page 12 of 20
CODING: Words stricken are deletions; words underlined are additions.
hb0389-02-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 389 2022
301 chapter.
302 (c) The commission shall adopt rules providing for the
303 waiver of the license application required by this subsection if
304 the person or group of persons proposing to purchase or acquire
305 a controlling interest in a licensee has previously complied
306 with the applicable provisions of ss. 560.1401 and 560.141 under
307 the same legal entity or is currently licensed under this
308 chapter.
309 Section 5. Paragraphs (a) and (c) of subsection (1) of
310 section 560.141, Florida Statutes, are amended to read:
311 560.141 License application.—
312 (1) To apply for a license as a money services business
313 under this chapter, the applicant must submit:
314 (a) An application to the office on forms prescribed by
315 rule which includes the following information:
316 1. The legal name and address of the applicant, including
317 any fictitious or trade names used by the applicant in the
318 conduct of its business.
319 2. The date of the applicant's formation and the state in
320 which the applicant was formed, if applicable.
321 3. The name, social security number, alien identification
322 or taxpayer identification number, business and residence
323 addresses, and employment history for the past 5 years for each
324 control person officer, director, responsible person, the
325 compliance officer, each controlling shareholder, and any other
Page 13 of 20
CODING: Words stricken are deletions; words underlined are additions.
hb0389-02-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 389 2022
326 person who has a controlling interest in the money services
327 business as provided in s. 560.127.
328 4. A description of the organizational structure of the
329 applicant, including the identity of any parent or subsidiary of
330 the applicant, and the disclosure of whether any parent or
331 subsidiary is publicly traded.
332 5. The applicant's history of operations in other states
333 if applicable and a description of the money services business
334 or deferred presentment provider activities proposed to be
335 conducted by the applicant in this state.
336 6. If the applicant or its parent is a publicly traded
337 company, copies of all filings made by the applicant with the
338 United States Securities and Exchange Commission, or with a
339 similar regulator in a country other than the United States,
340 within the preceding year.
341 7. The location at which the applicant proposes to
342 establish its principal place of business and any other
343 location, including branch offices and authorized vendors
344 operating in this state. For each branch office and each
345 location of an authorized vendor, the applicant shall include
346 the nonrefundable fee required by s. 560.143.
347 8. The name and address of the clearing financial
348 institution or financial institutions through which the
349 applicant's payment instruments are drawn or through which the
350 payment instruments are payable.
Page 14 of 20
CODING: Words stricken are deletions; words underlined are additions.
hb0389-02-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 389 2022
351 9. The history of the applicant's material litigation,
352 criminal convictions, pleas of nolo contendere, and cases of
353 adjudication withheld.
354 10. The history of material litigation, arrests, criminal
355 convictions, pleas of nolo contendere, and cases of adjudication
356 withheld for each control executive officer, director,
357 controlling shareholder, and responsible person.
358 11. The name of the registered agent in this state for
359 service of process unless the applicant is a sole proprietor.
360 12. Any other information specified in this chapter or by
361 rule.
362 (c) Fingerprints for each person listed in subparagraph
363 (a)3. for live-scan processing in accordance with rules adopted
364 by the commission.
365 1. The fingerprints may be submitted through a third -party
366 vendor authorized by the Department of Law Enforcement to
367 provide live-scan fingerprinting.
368 2. The Department of Law Enforcement must conduct the
369 state criminal history background check, and a federal criminal
370 history background check must be conducted through the Federal
371 Bureau of Investigation.
372 3. All fingerprints submitted to the Department of Law
373 Enforcement must be submitted electronically and entered into
374 the statewide automated fingerprint identification system
375 established in s. 943.05(2)(b) and available for use in
Page 15 of 20
CODING: Words stricken are deletions; words underlined are additions.
hb0389-02-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 389 2022
376 accordance with s. 943.05(2)(g) and (h). The office shall pay an
377 annual fee to the Department of Law Enforcement to participate
378 in the system and shall inform the Department of Law Enforcement
379 of any person whose fingerprints no longer must be retained.
380 4. The costs of fingerprint processing, including the cost
381 of retaining the fingerprints, shall be borne by the person
382 subject to the background check.
383 5. The office shall review the results of the state and
384 federal criminal history background checks and determine whether
385 the applicant meets licensure requirements.
386 6. For purposes of this paragraph, fingerprints are not
387 required to be submitted if the applicant is a publicly traded
388 corporation or is exempted from this chapter under s.
389 560.104(1). The term "publicly traded" means a stock is
390 currently traded on a national securities exchange registered
391 with the federal Securities and Exchange Commission or traded on
392 an exchange in a country other than the United States regulated
393 by a regulator equivalent to the Securities and Exchange
394 Commission and the disclosure and reporting requirements of such
395 regulator are substantially similar to those of the commission.
396 7. Licensees initially approved before October 1, 2013,
397 who are seeking renewal must submit fingerprints for each person
398 listed in subparagraph (a)3. for live-scan processing pursuant
399 to this paragraph. Such fingerprints must be submitted before
400 renewing a license that is scheduled to expire between April 30,
Page 16 of 20
CODING: Words stricken are deletions; words underlined are additions.
hb0389-02-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 389 2022
401 2014, and December 31, 2015.
402 Section 6. For the purpose of incorporating the amendments
403 made by this act to sections 560.118 and 560.141, Florida
404 Statutes, in references thereto, paragraph (a) of subsection (4)
405 of section 559.952, Florida Statutes, is reenacted to read:
406 559.952 Financial Technology Sandbox.—
407 (4) EXCEPTIONS TO GENERAL LAW AND WAIVERS OF RULE
408 REQUIREMENTS.—
409 (a) Notwithstanding any other law, upon approval of a
410 Financial Technology Sandbox application, the following
411 provisions and corresponding rule requirements are not
412 applicable to the licensee during the sandbox period:
413 1. Section 516.03(1), except for the application fee, the
414 investigation fee, the requirement to provide the social
415 security numbers of control persons, evidence of liquid assets
416 of at least $25,000, and the office's authority to investigate
417 the applicant's background. The office may prorate the license
418 renewal fee for an extension granted under subsection ( 7).
419 2. Section 516.05(1) and (2), except that the office shall
420 investigate the applicant's background.
421 3. Section 560.109, only to the extent that the section
422 requires the office to examine a licensee at least once every 5
423 years.
424 4. Section 560.118(2).
425 5. Section 560.125(1), only to the extent that the
Page 17 of 20
CODING: Words stricken are deletions; words underlined are additions.
hb0389-02-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 389 2022
426 subsection would prohibit a licensee from engaging in the
427 business of a money transmitter or payment instrument seller
428 during the sandbox period.
429 6. Section 560.125(2), only to the extent that the
430 subsection would prohibit a licensee from appointing an
431 authorized vendor during the sandbox period. Any authorized
432 vendor of such a licensee during the sandbox period remains
433 liable to the holder or remitter.
434 7. Section 560.128.
435 8. Section 560.141, except for s. 560.141(1)(a)1., 3., 7.-
436 10. and (b), (c), and (d).
437 9. Section 560.142(1) and (2), except that the office may
438 prorate, but may not entirely eliminate, the license renewal
439 fees in s. 560.143 for an extension granted under subsection
440 (7).
441 10. Section 560.143(2), only to the extent necessary for
442 proration of the renewal fee under subparagraph 9.
443 11. Section 560.204(1), only to the extent that the
444 subsection would prohibit a licensee from engaging in, or
445 advertising that it engages in, the selling or issuing of
446 payment instruments or in the activity of a money transmitter
447 during the sandbox period.
448 12. Section 560.205(2).
449 13. Section 560.208(2).
450 14. Section 560.209, only to the extent that the office
Page 18 of 20
CODING: Words stricken are deletions; words underlined are additions.
hb0389-02-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 389 2022
451 may modify, but may not entirely eliminate, the net worth,
452 corporate surety bond, and collateral deposit amounts required
453 under that section. The modified amounts must be in such lower
454 amounts that the office determines to be commensurate with the
455 factors under paragraph (5)(c) and the maximum number of
456 consumers authorized to receive the financial product or service
457 under this section.
458 Section 7. For the purpose of incorporating the amendment
459 made by this act to section 560.141, Florida Statutes, in a
460 reference thereto, paragraph (c) of subsection (2) of section
461 560.114, Florida Statutes, is reenacted, to read:
462 560.114 Disciplinary actions; penalties.—
463 (2) Pursuant to s. 120.60(6), the office may summarily
464 suspend the license of a money services business if the office
465 finds that a licensee poses an immediate, serious danger to the
466 public health, safety, and welfare. A proceeding in which the
467 office seeks the issuance of a final order for the summary
468 suspension of a licensee shall be conducted by the commissioner
469 of the office, or his or her designee, who shall issue such
470 order. The following acts are deemed to constitute an immediate
471 and serious danger to the public health, safety, and welfare,
472 and the office may immediately suspend the license of a money
473 services business if:
474 (c) A natural person required to be listed on the license
475 application for a money services business pursuant to s.
Page 19 of 20
CODING: Words stricken are deletions; words underlined are additions.
hb0389-02-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 389 2022
476 560.141(1)(a)3. is criminally charged with, or arrested for, a
477 crime described in paragraph (1)(o), paragraph (1)(p), or
478 paragraph(1)(q).
479 Section 8. This act shall take effect October 1, 2022.
Page 20 of 20
CODING: Words stricken are deletions; words underlined are additions.
hb0389-02-c2
CS/HB 503
HOUSE OF REPRESENTATIVES STAFF ANALYSIS
BILL #: CS/HB 503 Insurance
SPONSOR(S): Insurance & Banking Subcommittee, Gregory
TIED BILLS: IDEN./SIM. BILLS: CS/CS/SB 468
REFERENCE ACTION ANALYST STAFF DIRECTOR or
BUDGET/POLICY
CHIEF
1) Insurance & Banking Subcommittee 15 Y, 0 N, As CS Fortenberry Luczynski
2) Commerce Committee Fortenberry Hamon
SUMMARY ANALYSIS
The bill makes the following changes regarding insurance:
Florida Hurricane Catastrophe (FHCF) Coverage – modifies when a collateral protection insurance policy is
eligible for FHCF coverage.
Worker’s Compensation Payroll Audits – modifies the requirement that the annual audit for construction
businesses be conducted onsite to only be onsite if the estimated annual premium is $10,000 or more.
Meeting Requirements – authorizes associations, trusts, and pools that provide self-insurance for public entities
to use communications media technology to establish a quorum and conduct public business.
Adjusters and Agents – adds an additional professional designation to the list of designations that exempt an
applicant for all-lines adjuster licensure from the requirement to pass a written examination before being licensed;
adds adjusters employed by an insurer’s affiliate to the definition of company employee adjuster; allows licensed
general or personal lines agents to sell service agreements or warranties without a salesperson or sales
representative license.
Hurricane Modeling – provides that a property insurer may use a weighted or straight average of two or more
approved hurricane models in a rate filing.
Mitigation Credits in Residential Property Insurance Rate Filings – allows insurers to give mitigation credit for
evaluation by, and compliance with, standards developed by an independent, not -for-profit, scientific research
organization.
Automatic Withdrawal of Premium – modifies the notice requirement for a change in the amount of premium by
automatic bank withdrawal from an increase of any amount to increases greater than $10.
Citizens Property Insurance Corporation (Citizens) – allows Citizens the option to insure residential
condominiums under commercial residential wind-only coverage if the units are intended for residential use, but
are rented on a short-term basis.
Policy Documents – authorizes electronic transmission of policy documents and revises notice requirements for
certain automobile insurance policies.
Method to Reject/Exclude Certain Property Insurance Deductibles/Coverages – permits the required
statements related to waiving the 10 percent limit on hurricane deductibles, excluding windstorm coverage, and
excluding contents coverage, to be either personally written or typed by the policyholder.
Assignment Agreements – adds inspection to the definition of assignment agreement, specifies that the list of
services that is specified in the definition of assignment agreement is not exhaustive, specifies that fees charged
by a public adjuster are not included in the definition of assignment agreement, and establishes where the pre-suit
notice required before filing a suit over a claim with an assignment agreement must be sent, whether sent by
certified mail or email.
The bill has no impact on state or local government revenues or expenditures. It has an unknown direct economic impact
on the private sector.
The bill has an effective date of July 1, 2022, except as otherwise provided.
This docum ent does not reflect the intent or official position of the bill sponsor or House of Representatives .
STORAGE NAME: h0503b.COM
DATE: 2/21/2022
FULL ANALYSIS
I. SUBSTANTIVE ANALYSIS
A. EFFECT OF PROPOSED CHANGES:
Hurricane Catastrophe Fund – Collateral Protection Insurance
The Florida Hurricane Catastrophe Fund (FHCF) is a tax-exempt trust fund created by the Legislature
in 1993 as a form of reinsurance for residential property insurance losses.1 The purpose of the FHCF is
to protect and advance the state’s interest in maintaining insurance capacity in Florida by providing
reimbursements to insurers for a portion of their catastrophic losses. 2 The FHCF is administered by the
State Board of Administration and reimburses property insurers for a selected percentage of hurricane
losses to residential property when those losses exceed the insurer’s retention (deductible). 3 As a
condition of transacting insurance business in the state, residential property insurers are required to
enter reimbursement contracts with the FHCF.
The FHCF reimburses participating insurers for losses under covered polices, subject to limitations. 4
Covered policies include collateral protection5 insurance policies covering personal residences that
protect both the borrower’s and the lender’s financial interest in an amount at least equal to coverage
for the dwelling in place under a lapsed homeowner’s policy, if such policies meet certain statutory
conditions.6
Collateral protection insurance is placed by an insurer when a homeowner’s policy on the property has
lapsed. Sometimes, the insurer is unable to obtain correct information from the homeowner and places
coverage at an amount other than the amount of the homeowner’s lapsed policy. This can create a
discrepancy between the coverage in place and the amount of the homeowner’s lapsed policy, which
makes the policy ineligible for FHCF coverage.
Effect of the Bill
The bill amends the conditions under which a collateral protection insurance policy can be considered a
“covered policy” and, thus, eligible for FHCF coverage. The bill provides that a collateral protection
insurance policy is eligible for FHCF coverage if it is placed for the amount of the last known coverage,
the amount that the homeowner was notified of by the collateral protection insurer, or the amount that
the homeowner requests from the collateral protection insurer.
Workers’ Compensation – Payroll Audit Procedures
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.
1 See s. 215.555, F.S.
22 See id.
3 Id.
4 S. 215.555(2)(d), F.S.
5 “Collateral protection insurance” means commercial property insurance of which a creditor is the primary beneficiary and
policyholder and which protects or covers an interest of the creditor arising out of a credit transaction secured by real or
personal property. Initiation of such coverage is triggered by the mortgagor’s failure to maintain insurance coverage as
required by the mortgage or other lending document. Collateral protection insurance is not residential coverage. Ss.
215.555(15) and 624.6085, F.S.
6 S. 215.555(2)(c), F.S.
STORAGE NAME: h0503b.COM PAGE: 2
DATE: 2/21/2022
The law requires that the Financial Services Commission7 establish by rule the minimum requirements
for audits of payroll and classifications 8 to ensure that the appropriate premium is charged for workers’
compensation coverage. The rules shall require payroll audits no less than 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 estimated
annual premium of $5,750 or more9) must be audited annually and the audit must take place at the
employer’s worksite.10
The Office of Insurance Regulation (OIR) has promulgated rules for payroll audits that were adopted by
the Financial Services Commission. The rules require:
An annual physical audit for policies with an estimated annual premium of $10,000 or more,
regardless of governing classification;
An annual mail or physical audit for policies with an estimated annual premium of $1 to $9,999;
A physical audit for all new businesses that have construction classifications, regardless of
premium;
An annual physical audit for renewal policies that have construction classifications if the estimated
annual premium is $5,000 or more;11 and
A mail or physical audit not less than every other year for per capita policies, which use the number
of workers during the policy period to measure exposure.
Audits conducted by telephone are not permitted in lieu of mail or physical audits. 12
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. Passage 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.
Meeting Requirements – Risk Management Mechanisms and Self-Insurance Pools
Current law does not address whether associations, trusts, and pools formed to provide self-insurance
for public entities can establish a quorum, and conduct public business, virtually. The authority to
conduct business virtually has become a greater issue as COVID-19 has forced private and public
entities to work remotely.
Effect of the Bill
The bill authorizes associations, trusts, and pools formed to provide self-insurance for public entities to
establish a quorum, and to conduct public business, through communications media technology.
Adjusters and Agents
7 The Financial Services Commission (commission) is composed of the Governor, Attorney General, Chief Financial
Officer, and Commissioner of Agriculture. S. 20.121(3), F.S. The commission members are OIR’s agency head for the
purpose of rulemaking. S. 20.121(3)(c), F.S.
8 Classifications, or classification codes, are three- or four-digit codes used to identify types of work so that risk can be
estimated when establishing workers’ compensation insurance rates. The Hartford, Work ers’ Comp Class Codes,
https://www.thehartford.com/workers-compensation/workers-comp-class-codes (last visited Jan. 5, 2022).
9 OIR, 2020 Workers’ Compensation Annual Report, p. 32 (Jan. 15, 2021), 2020WorkersCompensationAnnualReport.pdf
(floir.com) (last visited Jan. 5, 2022).
10 S. 440.381, F.S.
11 R. 69O-189.003(4)(b)1, F.A.C.
12 R. 69O-189.003(4)(b)3, F.A.C.
STORAGE NAME: h0503b.COM PAGE: 3
DATE: 2/21/2022
All-lines Adjuster
Ordinarily, any applicant to the Department of Financial Services for licensure as an all-lines adjuster
must pass a written examination in order to receive licensure. However, an applicant who has a
professional designation listed in s. 626.221(2)(j), F.S., is exempt from the examination requirement.
Effect of the Bill
The bill adds an additional professional designation to the list of designations under which an applicant
to become a licensed all-lines adjuster is exempt from the licensure examination requirement.
Company Employee Adjuster
A “company employee adjuster” is a licensed insurance adjuster who is appointed and employed on an
insurer’s adjusting staff or a wholly owned subsidiary of the insurer. 13 The duties of such an adjuster
include determining the amount of a claim, loss, or damage payable under an insurance policy, and
settling the claim, loss, or damage.14
Effect of the Bill
The bill adds adjusters employed by an insurer’s affiliate to the definition of company employee
adjuster.
Agent Licensing
General Lines Agent
A general lines agent15 is one who sells the following lines of insurance: property; 16 casualty,17 including
commercial liability insurance underwritten by a risk retention group, a commercial self-insurance
fund,18 or a workers’ compensation self-insurance fund;19 surety;20 health;21 and, marine.22 The general
lines agent may only transact health insurance for an insurer that the general lines agent also
represents for property and casualty insurance. If the general lines agent wishes to represent health
insurers that are not also property and casualty insurers, they must be licensed as a health insurance
agent.23
Personal Lines Agent
A personal lines agent is a general lines agent who is limited to transacting business related to property
and casualty insurance sold to individuals and families for noncommercial purposes.24
Motor Vehicle Servicing Agreements
Motor vehicle service agreements provide vehicle owners with protection when the manufacturer’s
warranty expires. A motor vehicle service agreement indemnifies the vehicle owner (or holder of the
13 S. 626.856, F.S.
14 Id.
15 S. 626.015(5), F.S.
16 S. 624.604, F.S.
17 S. 624.605, F.S.
18 S. 624.462, F.S.
19 S. 624.4621, F.S.
20 S. 626.606, F.S.
21 Ss. 624.603 and 627.6482, F.S.
22 S. 624.607, F.S.
23 S. 626.829, F.S.
24 S. 626.015(17), F.S.
STORAGE NAME: h0503b.COM PAGE: 4
DATE: 2/21/2022
agreement) against loss caused by failure of any mechanical or other component part, or any
mechanical or other component part that does not function as it was originally intended. 25 Motor vehicle
service agreements can only be sold by a licensed and appointed salesperson. Salespersons are
licensed in the same manner as insurance representatives under ch. 626, F.S., with some exceptions
to the requirements applied to insurance representatives.
Service Warranty Associations
Service warranty associations are entities, other than insurers, which issue service warranties. A
service warranty is an agreement or maintenance service contract equal to or greater than 1 year in
length to repair, replace, or maintain a consumer product, or for indemnification for repair, replacement,
or maintenance, for operational or structural failure due to a defect in materials or workmanship, normal
wear and tear, power surge, or accidental damage from handling in return for the payment of a
segregated charge by the consumer.26 No person or entity shall solicit, negotiate, advertise, or
effectuate service warranty contracts in this state unless such person or entity is licensed and
appointed as a sales representative.27
Home Warranty Contracts
A home warranty association is any corporation or any other organization, other than an authorized
insurer, issuing home warranties. A home warranty is any contract or agreement whereby a person
undertakes to indemnify the warranty holder against the cost of repair or replacement, or actually
furnishes repair or replacement, of any structural component or appliance of a home, necessitated by
wear and tear or an inherent defect of any such structural component or appliance or necessitated by
the failure of an inspection to detect the likelihood of any such loss. No person may solicit, negotiate, or
effectuate home warranty contracts for remuneration in this state unless such person is licensed and
appointed as a sales representative.28
Effect of the Bill
The bill allows a licensed general lines agent or licensed personal lines agent to advertise, solicit,
negotiate, or sell motor vehicle service agreements, home warranty contracts, or service warranty
contracts without being separately licensed as a sales representative or insurance representative, as
applicable.
Use of Hurricane Models in Residential Property Insurance Rate Filings
The law regarding OIR’s review and approval of residential property insurance rate filings requires that
a rate filing consider mitigation measures that policyholders undertake to reduce hurricane losses.29 It
sets forth the criteria under which OIR may disapprove rate filings, including disapproval of rates that it
determines to be excessive, inadequate, or unfairly discriminatory. 30 The law also establishes criteria
for the Florida Commission on Hurricane Loss Projection Methodology’s (Commission) consideration,
and approval, of hurricane loss models and prescribes how those models affect OIR’s approval of
property insurance rate filings.31
25 S. 634.011(8), F.S.
26 S. 634.401(13).
27 S. 634.419, F.S. A “sales representative” is any person, retail store, corporation, partnership, or sole proprietorship
utilized by an insurer or service warranty association for the purpose of selling or issuing service warranties. However, in
the case of service warranty associations selling service warranties from one or more business locations, the person in
charge of each location may be considered the sales representative. S. 634.401(12), F.S.
28 S. 634.317, F.S. “Sales representative” is any person with whom an insurer or home inspection or warranty association
has a contract and who is utilized by such insurer or association for the purpose of selling or issuing home wa rranties. The
term includes all employees of an insurer or association engaged directly in the sale or issuance of home warranties. S.
634.301(12), F.S
29 S. 627.062(2)(j), F.S.
30 S. 627.062(2)(b), F.S.
31 Ss. 627.0628-627.06281, F.S.
STORAGE NAME: h0503b.COM PAGE: 5
DATE: 2/21/2022
Effect of the Bill
The bill provides parameters for OIR’s approval or disapproval of rate filings by providing that, with
respect to residential property insurance rate filings, the rate filing may use a modeling indication that is
the weighted or straight average of two or more hurricane loss models found to be accurate or reliable
by the Commission.
Mitigation Credits in Residential Property Insurance Rate Filings
Current law requires residential property insurers to include “positive and negative rate factors that
reflect the manner in which building code enforcement in a particular jurisdiction addresses the risk of
wind damage” in their rate filings that are filed with, and approved by, OIR. 32 Insurers utilize factors
from statewide organizations’ building code rating factor plans that evaluate how building code
enforcement in particular jurisdictions evaluate risk.33 Often times these ratings are flawed and not an
accurate depiction of actual building code enforcement activity in a jurisdiction.
Since 2003, residential property insurers have been required to provide credits, discounts, and other
rate differentials to reduce insurance premiums for properties with mitigation features. 34 Mitigation
features are construction techniques used or items installed to protect a structure against windstorm
damage or loss.35 Examples of mitigation features include hurricane shutters, a hip roof, or a specific
type of roof covering.
Code-plus programs help property owners avoid or reduce damage caused by natural hazards and
other risks by implementing additional levels of resilience to hazards beyond those required by building
codes.36 Presently, insurers are unable to submit rating plans for review and approval by OIR that
include mitigation credits for those insureds that are evaluated by, and comply with, code-plus
standards established by independent, not-for-profit, scientific research organizations.37
Effect of the Bill
The bill allows insurers to file a rating plan with OIR in which it offers additional windstorm mitigation
credits based on standards established by an independent, not-for-profit, scientific research
organization that meets the requirements of the rate filing statute.
Notification of Automatic Withdrawal of Insurance Premiums
Insurers issuing personal lines residential and commercial property policies are required to provide
premium payment options for quarterly and semiannual payments. They may, but are not required to,
offer monthly payment plans.38 Insurers and policyholders may enter into automatic bank withdrawal
agreements for paying insurance premiums.39 Current law requires insurers to provide the policyholder
with 15 days advance written notice prior to any automatic bank withdrawal if the premium payment
increases from the previous withdrawal period by any amount.
32 S. 627.0629(2)(b), F.S.
33 See, e.g., ISO Mitigation, ISO’s Building Code Effectiveness Grading Schedule (BCEGS),
https://www.isomitigation.com/bcegs/ (last visited Dec. 16, 2021). BCEGS is a program that provides these rating factors.
34 See s. 627.0629, F.S.
35 See id.
36 Whole Building Design Guide, Code-Plus Program for Disaster Resistance, https://www.wbdg.org/resources/code-plus-
programs-disaster-resistance (last visited Dec. 16, 2021).
37 See, e.g., Insurance Institute of Business & Home Safety, https://ibhs.org/ (last visited Dec. 16, 2021).
38 S. 627.4035(1)(a), F.S.
39 S. 627.0665, F.S.
STORAGE NAME: h0503b.COM PAGE: 6
DATE: 2/21/2022
Federal law gives consumers the option of receiving notice of a change in an automatic bank
withdrawal only when the withdrawal differs from the most recent withdrawal by more than an agreed-
upon amount.40
Effect of the Bill
The bill changes the 15-day written notice requirement of any increase in policy premiums to require
the notice only if the increase in policy premiums results in the next automatic withdrawal being
increased by more than $10.
Citizens Property Insurance Corporation
Citizens is a state-created, not-for-profit, tax-exempt government entity that is an integral part of the
state, whose public purpose is to provide property insurance to those unable to find affordable
coverage in the private market.41 Citizens offers property insurance in three separate accounts: the
personal lines account; the commercial lines account; and the coastal account. The commercial lines
account offers commercial lines residential and nonresidential policies. Currently, residential
condominiums are ineligible for coverage as “commercial residential” if 50 percent or more of the units
are rented more than eight times in a calendar year for a rental agreement period of less than 30
days.42
Effect of the Bill
The bill allows Citizens the option to insure residential condominiums under commercial residential
wind-only coverage if the units are intended for residential use, but are rented on a short-term basis.
Delivery of Policy Documents
The law requires that an insurance policy be mailed, delivered, or electronically transmitted to an
insured or other person entitled to receive the policy (designated person) within 60 days of the policy
taking effect.43 An insurer may allow a personal lines policyholder to elect delivery of policy documents
by electronic means instead of by mail.44 Electronic delivery of commercial risks constitutes delivery to
the insured or designated person, unless the insured or designated person notifies the insurer that he
or she does not agree to electronic delivery.45 However, if a policy is delivered electronically, the insurer
must include with the policy, a notice of the right to receive the policy by mail rather than
electronically.46 Additionally, an insurer must provide a paper copy of an insurance policy to an insured
or designated person upon his or her request.47
Effect of the Bill
The bill eliminates the requirement that an insurer provide notice with the policy of the right to receive
the policy by mail. It also eliminates the requirement that a paper copy of a policy be provided to the
insured or designated person upon request. The proposed change does not prevent an insured or
designated person from requesting a paper copy of a policy; the insurer may, but would not be required
to, provide a paper copy, unless the insured or designated person communicated to the insurer that he
or she no longer agrees to delivery by electronic means.
Method to Reject/Exclude Certain Property Insurance Deductibles/Coverages
40 12 CFR 1005(10)(d).
41 S. 627.351(6)(a)1., F.S.
42 S. 627.351(6), F.S.
43 S. 627.421(1), F.S.
44 Id.
45 Id.
46 Id.
47 Id.
STORAGE NAME: h0503b.COM PAGE: 7
DATE: 2/21/2022
With certain exceptions, prior to issuing a personal lines residential property insurance policy, the
insurer must offer alternative deductible amounts applicable to hurricane losses equal to $500, 2
percent, 5 percent, and 10 percent of the policy dwelling limits. For such policies covering a risk valued
at less than $500,000, a hurricane deductible may not be greater than 10 percent of the policy dwelling
limits unless the policyholder personally writes and provides to the insurer, in his or her own
handwriting the following statement: “I do not want the insurance on my home to pay for the first
(specify dollar value) of the damage from hurricanes. I will pay those costs. My insurance will not.”
An insurer issuing a residential property insurance policy must provide windstorm coverage; however,
the insurer must also make available, at the option of the policyholder, an exclusion for the windstorm
coverage.48 To exclude windstorm coverage, the policyholder must personally write and provide to the
insurer, in his or her own handwriting, the following statement: “I do not want the insurance on my
(home/mobile home/condominium unit) to pay for damage from windstorms. I will pay those costs. My
insurance will not.”49
An insurer issuing a residential property insurance policy, except for a condominium unit owner policy
or a tenant policy, must make available, at the option of the policyholder, an exclusion of contents
coverage.50 To exclude contents coverage, the policyholder must personally write and provide to the
insurer, in his or her own handwriting, the following statement: “I do not want the insurance on my
(home/mobile home) to pay for the costs to repair or replace any contents that are damaged. I will pay
those costs. My insurance will not.” 51
.
Effect of the Bill
For the above three provisions related to waiving the 10 percent limit on hurricane deductibles,
excluding windstorm coverage, and excluding contents coverage, the bill permits the required
statements to be either personally written or typed by the policyholder. The proposed change should
give insurers and policyholders more options for conducting business electronically.
Assignment Agreements
An assignment is the voluntary transfer of the rights of one party under a contract to another party.
Current law generally allows a policyholder to assign the post-loss benefits of the policy, such as the
right to be paid, to another party. This assignment is often called an assignment of benefits (AOB). An
assignment agreement is an instrument that assigns or transfers post-loss benefits under a residential
or commercial property insurance policy to or from a person who protects, repairs, restores, or replaces
property or mitigates against further property damage.52
Once an assignment agreement is executed, the assignee can take action to enforce the insurance
policy. Accordingly, if an insurer refuses to pay an assignee for a claim submitted under the policy, the
assignee may file a lawsuit against the insurer. An assignee must give an insurer and the assignor prior
written notice of at least 10 business days before filing suit on a claim (pre-suit notice).53 The pre-suit
notice may not be served before the insurer has made a determination of coverage. 54 It must specify
the damages in dispute, the amount claimed, and a pre-suit settlement demand, and must include an
itemized, detailed, written invoice or estimate of the work performed or to be performed. 55
The law requires pre-suit notice to be sent by certified mail, return receipt requested, or by electronic
delivery, but does not specify the mailing address or email address where the pre-suit notice must be
48 S. 627.712(1)-(2), F.S.
49 S. 627.712(2)(a)1., F.S.
50 S. 627.712(3), F.S.
51 Id.
52 S. 627.7152(1)(b), F.S.
53 S. 627.7152(9)(b), F.S.
54 Id.
55 Id.
STORAGE NAME: h0503b.COM PAGE: 8
DATE: 2/21/2022
sent.56 The lack of a specific address may delay an insurer’s or assignor’s receipt of the notice, and
thus reduce an insurer’s time to respond to the notice.
Effect of the Bill
The bill adds inspection to the list of services included in the definition of assignment agreement to
address the concern that certain individuals providing services, but who did not otherwise engage in
protecting, repairing, restoring, or replacing insured property following a loss, were not subject to the
requirements of s. 627.7152, F.S. The bill establishes that the list of services in s. 627.7152, F.S., is not
exhaustive. The bill specifies that fees charged by a public adjuster are not included in the definition of
assignment agreement. Additionally, the bill requires that the pre-suit notice, if sent by certified mail, be
sent to the name and mailing address specified by an insurer in its policy forms, and if sent by email, be
sent to the email address specified by an insurer in its policy forms.
Limited Coverage Notice Requirements
Automobile insurance policies that do not contain coverage for bodily injury and property damage 57
must be stamped on the policy declarations page with the following language in a font larger than the
largest font otherwise used in the declarations page (notice):
THIS POLICY DOES NOT PROVIDE BODILY INJURY AND PROPERTY DAMAGE
LIABILITY INSURANCE OR ANY OTHER COVERAGE FOR WHICH A SPECIFIC
PREMIUM CHARGE IS NOT MADE, AND DOES NOT COMPLY WITH ANY FINANCIAL
RESPONSIBILITY LAW.
The stamping requirement is antiquated and prevents these types of policies from being delivered
electronically.
Effect of the Bill
The bill eliminates the requirement that the notice be stamped on the declarations page of limited
coverage automobile policies. Instead, the notice must accompany the declarations page and must be
typed in a font at least as large as the font used in the declarations page. This change will allow these
types of policies to be delivered electronically.
B. SECTION DIRECTORY:
Section 1. Amends s. 215.555, F.S., relating to Florida Hurricane Catastrophe Fund.
Section 2. Amends s. 440.381, F.S., relating to application for coverage; reporting payroll; payroll audit
procedures; penalties.
Section 3. Creates s. 624.46227, F.S., relating to meeting requirements.
Section 4. Amends s. 626.221, F.S., relating to examination requirement; exemptions.
Section 5. Amends s. 626.856, F.S., relating to “company employee adjuster” defined.
Section 6. Amends. 627.062, F.S., relating to rate standards.
Section 7. Amends s. 627.0629, F.S., relating to residential property insurance; rate filings.
Section 8. Amends s. 627.0665, F.S., relating to automatic bank withdrawal agreements; notification
required.
56 See id.
57 S. 627.7276, F.S. These limited policies are typically issued to certain antique cars.
STORAGE NAME: h0503b.COM PAGE: 9
DATE: 2/21/2022
Section 9. Amends s. 627.351, F.S., relating to insurance risk apportionment plans.
Section 10. Amends s. 627.421, F.S., relating to delivery of policy.
Section 11. Amends s. 627.701, F.S., relating to liability of insureds; coinsurance; deductibles.
Section 12. Amends s. 627.712, F.S., relating to residential windstorm coverage required; availability of
exclusions for windstorm or contents.
Section 13. Amends s. 627.7152, F.S., relating to assignment agreements.
Section 14. Amends s. 627.7276, F.S., relating to notice of limited coverage.
Section 15. Amends s. 634.171, F.S., relating to salesperson to be licensed and appointed.
Section 16. Amends s. 634.317, F.S., relating to license and appointment required.
Section 17. Amends s. 634.419, F.S., relating to license and appointment required.
Section 18. Reenacts s. 624.424, F.S., relating to annual statement and other information.
Section 19. Reenacts s. 627.351, F.S., relating to insurance risk apportionment plans.
Section 20. Reenacts s. 626.865, F.S., relating to public adjuster’s qualifications, bond.
Section 21. Reenacts s. 626.8734, F.S., relating to nonresident all-lines adjuster license qualifications.
Section 22. Reenacts s. 627.7153, F.S., relating to policies restricting assignment of post-loss benefits
under a property insurance policy.
Section 23. Provides an effective date of July 1, 2022, except as otherwise provided.
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:
STORAGE NAME: h0503b.COM PAGE: 10
DATE: 2/21/2022
OIR has indicated that the bill may have a positive economic impact for policyholders, who may benefit
from lower collateral protection insurance costs if more policies are eligible for coverage from the
FHCF.58
D. FISCAL COMMENTS:
None.
III. COMMENTS
A. CONSTITUTIONAL ISSUES:
1. Applicability of Municipality/County Mandates Provision:
Not applicable. The bill does not appear to affect county or municipal governments.
2. Other:
None.
B. RULE-MAKING AUTHORITY:
The bill will require modification of the rule related to workers’ compensation payroll audit procedures to
reflect the changes to audits for businesses with construction classifications. 59
C. DRAFTING ISSUES OR OTHER COMMENTS:
None.
IV. AMENDMENTS/COMMITTEE SUBSTITUTE CHANGES
On January 13, 2022, the Insurance and Banking Subcommittee considered the bill, adopted one amendment,
and reported the bill favorably as a committee substitute. The amendment made the following changes to the
bill:
Removed the section of the bill addressing service of process on an insurer.
Added an additional professional designation to the list of designations under which an applicant to
become a licensed all-lines adjuster is exempt from the written examination normally required to be
passed to receive licensure.
Made various formatting and minor technical wording changes for clarity.
The analysis is drafted to the committee substitute as passed by the Insurance and Banking Subcommittee.
58 OIR Agency Analysis of House Bill 815, p. 6 (Feb. 23, 2021). House Bill 815 from the 2021 Legislative Session is
largely the same as this bill.
59 R. 69O-189.003, F.A.C.
STORAGE NAME: h0503b.COM PAGE: 11
DATE: 2/21/2022
F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
CS/HB 503 2022
1 A bill to be entitled
2 An act relating to insurance; amending s. 215.555,
3 F.S.; revising the definition of the term "covered
4 policy" under the Florida Hurricane Catastrophe Fund
5 in relation to certain collateral protection insurance
6 policies; amending s. 440.381, F.S.; revising the
7 annual audit requirement for construction classes to
8 apply to policies having estimated annual premiums of
9 at least a specified amount; creating s. 624.46227,
10 F.S.; authorizing any association, trust, or pool
11 created for the purpose of forming a risk management
12 mechanism or providing self-insurance for a public
13 entity to use communications media technology to
14 establish a quorum and conduct public business;
15 amending s. 626.221, F.S.; exempting certain
16 applicants for licensure as all-lines adjusters from a
17 required examination; amending s. 626.856, F.S.;
18 revising the definition of the term "company employee
19 adjuster"; amending s. 627.062, F.S.; authorizing the
20 use of a certain modeling indication for residential
21 property insurance rate filings; amending s. 627.0629,
22 F.S.; authorizing insurers to file certain insurance
23 rating plans based on certain windstorm mitigation
24 construction standards, if certain requirements are
25 met; amending s. 627.0665, F.S.; revising notification
Page 1 of 31
CODING: Words stricken are deletions; words underlined are additions.
hb0503-01-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 503 2022
26 requirements for insurers who have automatic bank
27 withdrawal agreements with insureds to include notices
28 when withdrawal amounts increase above a specified
29 threshold; amending s. 627.351, F.S.; revising
30 conditions for determining the ineligibility of
31 condominiums for wind-only coverage; amending s.
32 627.421, F.S.; deleting a requirement for electronic
33 transmission of certain documents to include specified
34 notices; deleting a requirement that paper copies of
35 policies be provided upon request; amending ss.
36 627.701 and 627.712, F.S.; revising policyholder
37 acknowledgment statement requirements for property
38 insurance policies having certain hurricane
39 deductibles or windstorm or contents coverage
40 exclusions, respectively; amending s. 627.7152, F.S.;
41 revising the definition of the term "assignment
42 agreement"; specifying the addresses to which a notice
43 of intent must be served; amending s. 627.7276, F.S.;
44 revising notice requirements for motor vehicle
45 policies that do not provide coverage for bodily
46 injury and property damage liability; amending ss.
47 634.171, 634.317, and 634.419, F.S.; authorizing
48 licensed personal lines or general lines agents to
49 solicit, negotiate, advertise, or sell motor vehicle
50 service agreements, home warranty contracts, and
Page 2 of 31
CODING: Words stricken are deletions; words underlined are additions.
hb0503-01-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 503 2022
51 service warranty contracts, respectively, without a
52 sales representative license; making technical
53 changes; reenacting ss. 624.424(10) and 627.351(6)(v),
54 F.S., relating to annual statements and other
55 information and Citizens Property Insurance
56 Corporation, respectively, to incorporate the
57 amendment made to s. 215.555, F.S., in references
58 thereto; reenacting s. 626.865(1)(e), F.S., relating
59 to public adjuster's qualifications, to incorporate
60 the amendment made to s. 626.856, F.S., in a reference
61 thereto; reenacting s. 626.8734(1)(b), F.S., relating
62 to nonresident all-lines adjuster license
63 qualifications, to incorporate the amendment made to
64 s. 626.221, F.S., in a reference thereto; reenacting
65 s. 627.7153(1) and (2)(d), F.S., relating to policies
66 restricting assignment of post-loss benefits under a
67 property insurance policy, to incorporate the
68 amendment made to s. 627.7152, F.S., in references
69 thereto; providing effective dates.
70
71 Be It Enacted by the Legislature of the State of Florida:
72
73 Section 1. Effective June 1, 2023, paragraph (c) of
74 subsection (2) of section 215.555, Florida Statutes, is amended
75 to read:
Page 3 of 31
CODING: Words stricken are deletions; words underlined are additions.
hb0503-01-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 503 2022
76 215.555 Florida Hurricane Catastrophe Fund.—
77 (2) DEFINITIONS.—As used in this section:
78 (c) "Covered policy" means any insurance policy covering
79 residential property in this state, including, but not limited
80 to, any homeowner, mobile home owner, farm owner, condominium
81 association, condominium unit owner, tenant, or apartment
82 building policy, or any other policy covering a residential
83 structure or its contents issued by any authorized insurer,
84 including a commercial self-insurance fund holding a certificate
85 of authority issued by the Office of Insurance Regulation under
86 s. 624.462, the Citizens Property Insurance Corporation, and any
87 joint underwriting association or similar entity created under
88 law. The term "covered policy" includes any collateral
89 protection insurance policy covering personal residences which
90 protects both the borrower's and the lender's financial
91 interests, in an amount at least equal to the coverage amount
92 for the dwelling in place under the lapsed homeowner's policy,
93 the coverage amount that the homeowner has been notified of by
94 the collateral protection insurer, or the coverage amount the
95 homeowner requests from the collateral protection insurer, if
96 such collateral protection insurance policy can be accurately
97 reported as required in subsection (5). Additionally, covered
98 policies include policies covering the peril of wind removed
99 from the Florida Residential Property and Casualty Joint
100 Underwriting Association or from the Citizens Property Insurance
Page 4 of 31
CODING: Words stricken are deletions; words underlined are additions.
hb0503-01-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 503 2022
101 Corporation, created under s. 627.351(6), or from the Florida
102 Windstorm Underwriting Association, created under s. 627.351(2),
103 by an authorized insurer under the terms and conditions of an
104 executed assumption agreement between the authorized insurer and
105 such association or Citizens Property Insurance Corporation.
106 Each assumption agreement between the association and such
107 authorized insurer or Citizens Property Insurance Corporation
108 must be approved by the Office of Insurance Regulatio n before
109 the effective date of the assumption, and the Office of
110 Insurance Regulation must provide written notification to the
111 board within 15 working days after such approval. "Covered
112 policy" does not include any policy that excludes wind coverage
113 or hurricane coverage or any reinsurance agreement and does not
114 include any policy otherwise meeting this definition which is
115 issued by a surplus lines insurer or a reinsurer. All commercial
116 residential excess policies and all deductible buy-back policies
117 that, based on sound actuarial principles, require individual
118 ratemaking must shall be excluded by rule if the actuarial
119 soundness of the fund is not jeopardized. For this purpose, the
120 term "excess policy" means a policy that provides insurance
121 protection for large commercial property risks and that provides
122 a layer of coverage above a primary layer insured by another
123 insurer.
124 Section 2. Subsection (3) of section 440.381, Florida
125 Statutes, is amended to read:
Page 5 of 31
CODING: Words stricken are deletions; words underlined are additions.
hb0503-01-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 503 2022
126 440.381 Application for coverage; reporting payroll;
127 payroll audit procedures; penalties.—
128 (3) The Financial Services Commission, in consultation
129 with the department, shall establish by rule minimum
130 requirements for audits of payroll and classifications in order
131 to ensure that the appropriate premium is charged for workers'
132 compensation coverage. The rules must shall ensure that audits
133 performed by both carriers and employers are adequate to provide
134 that all sources of payments to employees, subcontractors, and
135 independent contractors are have been reviewed and that the
136 accuracy of classification of employees is has been verified.
137 The rules must require shall provide that employers in all
138 classes other than the construction class be audited at least
139 not less frequently than biennially and may provide for more
140 frequent audits of employers in specified classifications based
141 on factors such as amount of premium, type of business, loss
142 ratios, or other relevant factors. In no event shall Employers
143 in the construction class, generating more than the amount of
144 premium required to be experience rated must, be audited at
145 least less than annually. The annual audits required for
146 construction classes must shall consist of physical onsite
147 audits of policies only if the estimated annual premium is
148 $10,000 or more. Payroll verification audit rules must include,
149 but need not be limited to, the use of state and federal reports
150 of employee income, payroll and other accounting records,
Page 6 of 31
CODING: Words stricken are deletions; words underlined are additions.
hb0503-01-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 503 2022
151 certificates of insurance maintained by subcontractors, and
152 duties of employees. At the completion of an audit, the employer
153 or officer of the corporation and the auditor must print and
154 sign their names on the audit document and attach proof of
155 identification to the audit document.
156 Section 3. Section 624.46227, Florida Statutes, is created
157 to read:
158 624.46227 Meeting requirements.—Any association, trust, or
159 pool authorized by state law and created for the purpose of
160 forming a risk management mechanism or providing self -insurance
161 for public entities in this state may use communications medi a
162 technology to establish a quorum and conduct public business.
163 Section 4. Paragraph (j) of subsection (2) of section
164 626.221, Florida Statutes, is amended, and subsection (1) of
165 that section is republished, to read:
166 626.221 Examination requirement; exemptions.—
167 (1) The department may not issue any license as agent or
168 adjuster to any individual who has not qualified for, taken, and
169 passed to the satisfaction of the department a written
170 examination of the scope prescribed in s. 626.241.
171 (2) However, an examination is not necessary for any of
172 the following:
173 (j) An applicant for license as an all-lines adjuster who
174 has the designation of Accredited Claims Adjuster (ACA) from a
175 regionally accredited postsecondary institution in this state,
Page 7 of 31
CODING: Words stricken are deletions; words underlined are additions.
hb0503-01-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 503 2022
176 Certified All Lines Adjuster (CALA) from Kaplan, Associate in
177 Claims (AIC) from the Insurance Institute of America,
178 Professional Claims Adjuster (PCA) from the Professional Career
179 Institute, Professional Property Insurance Adjuster (PPIA) from
180 the HurriClaim Training Academy, Certified Adjuster (CA) fro m
181 ALL LINES Training, Certified Claims Adjuster (CCA) from AE21
182 Incorporated, Claims Adjuster Certified Professional (CACP) from
183 WebCE, Inc., Accredited Insurance Claims Specialist (AICS) from
184 Encore Claim Services, or Universal Claims Certification (UCC)
185 from Claims and Litigation Management Alliance (CLM) whose
186 curriculum has been approved by the department and which
187 includes comprehensive analysis of basic property and casualty
188 lines of insurance and testing at least equal to that of
189 standard department testing for the all-lines adjuster license.
190 The department shall adopt rules establishing standards for the
191 approval of curriculum.
192 Section 5. Section 626.856, Florida Statutes, is amended
193 to read:
194 626.856 "Company employee adjuster" defined.—A "company
195 employee adjuster" means a person licensed as an all-lines
196 adjuster who is appointed and employed on an insurer's staff of
197 adjusters, by an affiliate, or by a wholly owned subsidiary of
198 the insurer, and who undertakes on behalf of such insurer or
199 other insurers under common control or ownership to ascertain
200 and determine the amount of any claim, loss, or damage payable
Page 8 of 31
CODING: Words stricken are deletions; words underlined are additions.
hb0503-01-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 503 2022
201 under a contract of insurance, or undertakes to effect
202 settlement of such claim, loss, or damage.
203 Section 6. Paragraph (j) of subsection (2) of section
204 627.062, Florida Statutes, is amended to read:
205 627.062 Rate standards.—
206 (2) As to all such classes of insurance:
207 (j) With respect to residential property insurance rate
208 filings, the rate filing:
209 1. Must account for mitigation measures undertaken by
210 policyholders to reduce hurricane losses.
211 2. May use a modeling indication that is the weighted or
212 straight average of two or more hurricane loss projection models
213 found by the commission to be accurate or reliable pursuant to
214 s. 627.0628.
215
216 The provisions of this subsection do not apply to workers'
217 compensation, employer's liability insurance, and motor vehicle
218 insurance.
219 Section 7. Subsection (9) is added to section 627.0629,
220 Florida Statutes, to read:
221 627.0629 Residential property insurance; rate filings.—
222 (9) An insurer may file with the office a personal lines
223 residential property insurance rating plan that provides
224 justified premium discounts, credits, or other rate
225 differentials based on windstorm mitigation construction
Page 9 of 31
CODING: Words stricken are deletions; words underlined are additions.
hb0503-01-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 503 2022
226 standards developed by an independent, not-for-profit scientific
227 research organization, if such standards meet the requirements
228 of this section.
229 Section 8. Section 627.0665, Florida Statutes, is amended
230 to read:
231 627.0665 Automatic bank withdrawal agreements;
232 notification required.—Any insurer licensed to issue insurance
233 in this the state who has an automatic bank withdrawal agreement
234 with an insured party for the payment of insurance premiums for
235 any type of insurance shall give the named insured at l east 15
236 days advance written notice of any increase in policy premiums
237 that results in the next automatic bank withdrawal being
238 increased by more than $10. Such notice must be provided before
239 prior to any automatic bank withdrawal containing the of an
240 increased premium amount.
241 Section 9. Paragraph (a) of subsection (6) of section
242 627.351, Florida Statutes, is amended to read:
243 627.351 Insurance risk apportionment plans.—
244 (6) CITIZENS PROPERTY INSURANCE CORPORATION.—
245 (a) The public purpose of this subsection is to ensure
246 that there is an orderly market for property insurance for
247 residents and businesses of this state.
248 1. The Legislature finds that private insurers are
249 unwilling or unable to provide affordable property insurance
250 coverage in this state to the extent sought and needed. The
Page 10 of 31
CODING: Words stricken are deletions; words underlined are additions.
hb0503-01-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 503 2022
251 absence of affordable property insurance threatens the public
252 health, safety, and welfare and likewise threatens the economic
253 health of the state. The state therefore has a compelling public
254 interest and a public purpose to assist in assuring that
255 property in this the state is insured and that it is insured at
256 affordable rates so as to facilitate the remediation,
257 reconstruction, and replacement of damaged or destroyed property
258 in order to reduce or avoid the negative effects otherwise
259 resulting to the public health, safety, and welfare, to the
260 economy of the state, and to the revenues of the state and local
261 governments which are needed to provide for the public welfare.
262 It is necessary, therefore, to provide affordable property
263 insurance to applicants who are in good faith entitled to
264 procure insurance through the voluntary market but are unable to
265 do so. The Legislature intends, therefore, that affordable
266 property insurance be provided and that it continue to be
267 provided, as long as necessary, through Citizens Property
268 Insurance Corporation, a government entity that is an integral
269 part of the state, and that is not a private insurance company.
270 To that end, the corporation shall strive to increase the
271 availability of affordable property insurance in this state,
272 while achieving efficiencies and economies, and while providing
273 service to policyholders, applicants, and agents which is no
274 less than the quality generally provided in the voluntary
275 market, for the achievement of the foregoing public purposes.
Page 11 of 31
CODING: Words stricken are deletions; words underlined are additions.
hb0503-01-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 503 2022
276 Because it is essential for this government entity to have the
277 maximum financial resources to pay claims following a
278 catastrophic hurricane, it is the intent of the Legislature that
279 the corporation continue to be an integral part of the state and
280 that the income of the corporation be exempt from federal income
281 taxation and that interest on the debt obligations issued by the
282 corporation be exempt from federal income taxation.
283 2. The Residential Property and Casualty Joint
284 Underwriting Association originally created by this statute
285 shall be known as the Citizens Property Insurance Corporation.
286 The corporation shall provide insurance for residential and
287 commercial property, for applicants who are entitled, but, in
288 good faith, are unable to procure insurance through the
289 voluntary market. The corporation shall operate pursuant to a
290 plan of operation approved by order of the Financial Services
291 Commission. The plan is subject to continuous review by the
292 commission. The commission may, by order, withdraw approval of
293 all or part of a plan if the commission determines that
294 conditions have changed since approval was granted and that the
295 purposes of the plan require changes in the plan. For the
296 purposes of this subsection, residential coverage includes both
297 personal lines residential coverage, which consists of the type
298 of coverage provided by homeowner, mobile home owner, dwelling,
299 tenant, condominium unit owner, and similar policies; and
300 commercial lines residential coverage, which consis ts of the
Page 12 of 31
CODING: Words stricken are deletions; words underlined are additions.
hb0503-01-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 503 2022
301 type of coverage provided by condominium association, apartment
302 building, and similar policies.
303 3. With respect to coverage for personal lines residential
304 structures:
305 a. Effective January 1, 2014, a structure that has a
306 dwelling replacement cost of $1 million or more, or a single
307 condominium unit that has a combined dwelling and contents
308 replacement cost of $1 million or more, is not eligible for
309 coverage by the corporation. Such dwellings insured by the
310 corporation on December 31, 2013, may continue to be covered by
311 the corporation until the end of the policy term. The office
312 shall approve the method used by the corporation for valuing the
313 dwelling replacement cost for the purposes of this subparagraph.
314 If a policyholder is insured by the corporation before being
315 determined to be ineligible pursuant to this subparagraph and
316 such policyholder files a lawsuit challenging the determination,
317 the policyholder may remain insured by the corporation until the
318 conclusion of the litigation.
319 b. Effective January 1, 2015, a structure that has a
320 dwelling replacement cost of $900,000 or more, or a single
321 condominium unit that has a combined dwelling and contents
322 replacement cost of $900,000 or more, is not eligible for
323 coverage by the corporation. Such dwellings insured by the
324 corporation on December 31, 2014, may continue to be covered by
325 the corporation only until the end of the policy term.
Page 13 of 31
CODING: Words stricken are deletions; words underlined are additions.
hb0503-01-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 503 2022
326 c. Effective January 1, 2016, a structure that has a
327 dwelling replacement cost of $800,000 or more, or a single
328 condominium unit that has a combined dwelling and contents
329 replacement cost of $800,000 or more, is not eligible for
330 coverage by the corporation. Such dwellings insured by the
331 corporation on December 31, 2015, may continue to be covered by
332 the corporation until the end of the policy term.
333 d. Effective January 1, 2017, a structure that has a
334 dwelling replacement cost of $700,000 or more, or a single
335 condominium unit that has a combined dwelling and contents
336 replacement cost of $700,000 or more, is not eligib le for
337 coverage by the corporation. Such dwellings insured by the
338 corporation on December 31, 2016, may continue to be covered by
339 the corporation until the end of the policy term.
340
341 The requirements of sub-subparagraphs b.-d. do not apply in
342 counties where the office determines there is not a reasonable
343 degree of competition. In such counties a personal lines
344 residential structure that has a dwelling replacement cost of
345 less than $1 million, or a single condominium unit that has a
346 combined dwelling and contents replacement cost of less than $1
347 million, is eligible for coverage by the corporation.
348 4. It is the intent of the Legislature that policyholders,
349 applicants, and agents of the corporation receive service and
350 treatment of the highest possible level but never less than that
Page 14 of 31
CODING: Words stricken are deletions; words underlined are additions.
hb0503-01-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 503 2022
351 generally provided in the voluntary market. It is also intended
352 that the corporation be held to service standards no less than
353 those applied to insurers in the voluntary market by the office
354 with respect to responsiveness, timeliness, customer courtesy,
355 and overall dealings with policyholders, applicants, or agents
356 of the corporation.
357 5.a. Effective January 1, 2009, a personal lines
358 residential structure that is located in the "wind-borne debris
359 region," as defined in s. 1609.2, International Building Code
360 (2006), and that has an insured value on the structure of
361 $750,000 or more is not eligible for coverage by the corporation
362 unless the structure has opening protections as required under
363 the Florida Building Code for a newly constructed residential
364 structure in that area. A residential structure is deemed to
365 comply with this sub-subparagraph if it has shutters or opening
366 protections on all openings and if such opening protections
367 complied with the Florida Building Code at the time they were
368 installed.
369 b. Any major structure, as defined in s. 161.54(6)(a),
370 that is newly constructed, or rebuilt, repaired, restored, or
371 remodeled to increase the total square footage of finished area
372 by more than 25 percent, pursuant to a permit applied for after
373 July 1, 2015, is not eligible for coverage by the corporation if
374 the structure is seaward of the coastal construction control
375 line established pursuant to s. 161.053 or is within the Coastal
Page 15 of 31
CODING: Words stricken are deletions; words underlined are additions.
hb0503-01-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 503 2022
376 Barrier Resources System as designated by 16 U.S.C. ss. 3501-
377 3510.
378 6. With respect to wind-only coverage for commercial lines
379 residential condominiums, effective July 1, 2014, a condominium
380 may shall be deemed ineligible for coverage when if 50 percent
381 or more of the units are rented more than eight times in a
382 calendar year for a rental agreement period of less than 30
383 days.
384 Section 10. Subsection (1) of section 627.421, Florida
385 Statutes, is amended to read:
386 627.421 Delivery of policy.—
387 (1) Subject to the insurer's requirement as to payment of
388 premium, every policy shall be mailed, delivered, or
389 electronically transmitted to the insured or to the person
390 entitled thereto not later than 60 days after the effectuation
391 of coverage. Notwithstanding any other provision of law, an
392 insurer may allow a policyholder of personal lines insurance to
393 affirmatively elect delivery of the policy documents, including,
394 but not limited to, policies, endorsements, notices, or
395 documents, by electronic means in lieu of delivery by mail.
396 Electronic transmission of a policy for commercial risks,
397 including, but not limited to, workers' compensation and
398 employers' liability, commercial automobile liability,
399 commercial automobile physical damage, commercial lines
400 residential property, commercial nonresidential property,
Page 16 of 31
CODING: Words stricken are deletions; words underlined are additions.
hb0503-01-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 503 2022
401 farmowners insurance, and the types of commercial lines risks
402 set forth in s. 627.062(3)(d), constitutes delivery to the
403 insured or to the person entitled to delivery, unless the
404 insured or the person entitled to delivery communicates to the
405 insurer in writing or electronically that he or she does not
406 agree to delivery by electronic means. Electronic transmission
407 shall include a notice to the insured or to the person entitled
408 to delivery of a policy of his or her right to receive the
409 policy via United States mail rather than via electronic
410 transmission. A paper copy of the policy shall be provided to
411 the insured or to the person entitled to delivery at his or her
412 request.
413 Section 11. Paragraph (d) of subsection (4) of section
414 627.701, Florida Statutes, is amended to read:
415 627.701 Liability of insureds; coinsurance; deductibles.—
416 (4)
417 (d)1. A personal lines residential property insurance
418 policy covering a risk valued at less than $500,000 may not have
419 a hurricane deductible in excess of 10 percent of the policy
420 dwelling limits, unless the following conditions are met:
421 a. The policyholder must personally write or type and
422 provide to the insurer the following statement in his or her own
423 handwriting and sign his or her name, which must also be signed
424 by every other named insured on the policy, and dated: "I do not
425 want the insurance on my home to pay for the first (specify
Page 17 of 31
CODING: Words stricken are deletions; words underlined are additions.
hb0503-01-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 503 2022
426 dollar value) of damage from hurricanes. I will pay those costs.
427 My insurance will not."
428 b. If the structure insured by the policy is subject t o a
429 mortgage or lien, the policyholder must provide the insurer with
430 a written statement from the mortgageholder or lienholder
431 indicating that the mortgageholder or lienholder approves the
432 policyholder electing to have the specified deductible.
433 2. A deductible subject to the requirements of this
434 paragraph applies for the term of the policy and for each
435 renewal thereafter. Changes to the deductible percentage may be
436 implemented only as of the date of renewal.
437 3. An insurer shall keep the original copy of the signed
438 statement required by this paragraph, electronically or
439 otherwise, and provide a copy to the policyholder providing the
440 signed statement. A signed statement meeting the requirements of
441 this paragraph creates a presumption that there was an informed,
442 knowing election of coverage.
443 4. The commission shall adopt rules providing appropriate
444 alternative methods for providing the statements required by
445 this section for policyholders who have a handicapping or
446 disabling condition that prevents them from providing a
447 handwritten statement.
448 Section 12. Paragraph (a) of subsection (2) and subsection
449 (3) of section 627.712, Florida Statutes, are amended to read:
450 627.712 Residential windstorm coverage required;
Page 18 of 31
CODING: Words stricken are deletions; words underlined are additions.
hb0503-01-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 503 2022
451 availability of exclusions for windstorm or contents.—
452 (2) A property insurer must make available, at the option
453 of the policyholder, an exclusion of windstorm coverage.
454 (a) The coverage may be excluded only if:
455 1. When the policyholder is a natural person, the
456 policyholder personally writes or types and provides to the
457 insurer the following statement in his or her own handwriting
458 and signs his or her name, which must also be signed by every
459 other named insured on the policy, and dated: "I do not want the
460 insurance on my (home/mobile home/condominium unit) to pay for
461 damage from windstorms. I will pay those costs. My insurance
462 will not."
463 2. When the policyholder is other than a natural person,
464 the policyholder provides to the insurer on the policyholder's
465 letterhead the following statement that must be signed by the
466 policyholder's authorized representative and dated: "...(Name of
467 entity)... does not want the insurance on its ...(type of
468 structure)... to pay for damage from windstorms. ...(Name of
469 entity)... will be responsible for these costs. ...(Name of
470 entity's)... insurance will not."
471 (3) An insurer issuing a residential property insurance
472 policy, except for a condominium unit owner policy or a tenant
473 policy, must make available, at the option of the policyholder,
474 an exclusion of coverage for the contents. The coverage may be
475 excluded only if the policyholder personally writes or types and
Page 19 of 31
CODING: Words stricken are deletions; words underlined are additions.
hb0503-01-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 503 2022
476 provides to the insurer the following statement in his or her
477 own handwriting and signs his or her signature, which must also
478 be signed by every other named insured on the policy, and dated:
479 "I do not want the insurance on my (home/mobile home) to pay for
480 the costs to repair or replace any contents that are damaged. I
481 will pay those costs. My insurance will not."
482 Section 13. Effective upon this act becoming a law,
483 paragraph (b) of subsection (1) and paragraph (a) of subsection
484 (9) of section 627.7152, Florida Statutes, are amended to read:
485 627.7152 Assignment agreements.—
486 (1) As used in this section, the term:
487 (b) "Assignment agreement" means any instrument by which
488 post-loss benefits under a residential property insurance policy
489 or commercial property insurance policy, as that term is defined
490 in s. 627.0625(1), are assigned or transferred, or acquired in
491 any manner, in whole or in part, to or from a person providing
492 services, including, but not limited to, inspecting, protecting,
493 repairing, restoring, or replacing the protect, repair, restore,
494 or replace property or mitigating to mitigate against further
495 damage to the property. The term does not include fees collected
496 by a public adjuster, as defined in s. 626.854(1).
497 (9)(a) An assignee must provide the named insured,
498 insurer, and the assignor, if not the named insured, with a
499 written notice of intent to initiate litigation before filing
500 suit under the policy. Such notice must be served at least 10
Page 20 of 31
CODING: Words stricken are deletions; words underlined are additions.
hb0503-01-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 503 2022
501 business days before filing suit, but not before the insurer has
502 made a determination of coverage under s. 627.70131, by
503 certified mail, return receipt requested, to the name and
504 mailing address designated by the insurer in the policy forms or
505 by electronic delivery to the e-mail address designated by the
506 insurer in the policy forms at least 10 business days before
507 filing suit, but may not be served before the insurer has made a
508 determination of coverage under s. 627.70131. The notice must
509 specify the damages in dispute, the amount claimed, and a
510 presuit settlement demand. Concurrent with the notice, and as a
511 precondition to filing suit, the assignee must provide the named
512 insured, insurer, and the assignor, if not the named insured, a
513 detailed written invoice or estimate of services, including
514 itemized information on equipment, materials, and supplies; the
515 number of labor hours; and, in the case of work performed, proof
516 that the work has been performed in accordance with accepted
517 industry standards.
518 Section 14. Section 627.7276, Florida Statutes, is amended
519 to read:
520 627.7276 Notice of limited coverage.—
521 (1) An automobile policy that does not contain coverage
522 for bodily injury and property damage must include a notice be
523 clearly stamped or printed to the effect that such coverage is
524 not included in the policy in the following manner:
525
Page 21 of 31
CODING: Words stricken are deletions; words underlined are additions.
hb0503-01-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 503 2022
526 "THIS POLICY DOES NOT PROVIDE BODILY INJURY AND
527 PROPERTY DAMAGE LIABILITY INSURANCE OR ANY OTHER
528 COVERAGE FOR WHICH A SPECIFIC PREMIUM CHARGE IS NOT
529 MADE, AND DOES NOT COMPLY WITH ANY FINANCIAL
530 RESPONSIBILITY LAW."
531
532 (2) This notice legend must accompany appear on the policy
533 declarations declaration page and on the filing back of the
534 policy and be printed in a contrasting color from that used on
535 the policy and in type size at least as large as the type size
536 used on the declarations page larger than the largest type used
537 in the text thereof, as an overprint or by a rubber stamp
538 impression.
539 Section 15. Section 634.171, Florida Statutes, is amended
540 to read:
541 634.171 Salesperson to be licensed and appointed;
542 exemptions.—Salespersons for motor vehicle service agreement
543 companies and insurers must shall be licensed, appointed,
544 renewed, continued, reinstated, or terminated as prescribed in
545 chapter 626 for insurance representatives in general. However,
546 they are shall be exempt from all other provisions of chapter
547 626, including those relating to fingerprinting, photo
548 identification, education, and examination provisions.
549 Applicable license, appointment, and other fees are as shall be
550 those prescribed in s. 624.501. A licensed and appointed
Page 22 of 31
CODING: Words stricken are deletions; words underlined are additions.
hb0503-01-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 503 2022
551 salesperson is shall be directly responsible and accountable for
552 all acts of her or his employees and other representatives. Each
553 service agreement company or insurer shall, on forms prescribed
554 by the department, within 30 days after termination of the
555 appointment, notify the department of such termination. An No
556 employee or a salesperson of a motor vehicle service agreement
557 company or an insurer may not directly or indirectly solicit or
558 negotiate insurance contracts, or hold herself or himself out in
559 any manner to be an insurance agent, unless so qualified,
560 licensed, and appointed therefor under the Florida Insurance
561 Code. A licensed personal lines or general lines agent is not
562 required to be licensed as a salesperson under this section to
563 solicit, negotiate, advertise, or sell motor vehicle service
564 agreements. A motor vehicle service agreement company is not
565 required to be licensed as a salesperson to solicit, sell,
566 issue, or otherwise transact the motor vehicle service
567 agreements issued by the motor vehicle service agreement
568 company.
569 Section 16. Section 634.317, Florida Statutes, is amended
570 to read:
571 634.317 License and appointment required; exemptions.—A No
572 person may not solicit, negotiate, or effectuate home warranty
573 contracts for remuneration in this state unless such person is
574 licensed and appointed as a sales representative. A licensed and
575 appointed sales representative is shall be directly responsible
Page 23 of 31
CODING: Words stricken are deletions; words underlined are additions.
hb0503-01-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 503 2022
576 and accountable for all acts of the licensee's employees. A
577 licensed personal lines or general lines agent is not required
578 to be licensed as a sales representative under this section to
579 solicit, negotiate, advertise, or sell home warranty contracts.
580 Section 17. Section 634.419, Florida Statutes, is amended
581 to read:
582 634.419 License and appointment required; exemptions.—A No
583 person or an entity may not shall solicit, negotiate, advertise,
584 or effectuate service warranty contracts in this state unless
585 such person or entity is licensed and appointed as a sales
586 representative. Sales representatives are shall be responsible
587 for the actions of persons under their supervision. However, a
588 service warranty association licensed as such under this part is
589 shall not be required to be licensed and appointed as a sales
590 representative to solicit, negotiate, advertise, or effectuate
591 its products. A licensed personal lines or general lines agent
592 is not required to be licensed as a sales representative under
593 this section to solicit, negotiate, advertise, or sell service
594 warranty contracts.
595 Section 18. Effective June 1, 2023, for the purpose of
596 incorporating the amendment made by this act to section 215.555,
597 Florida Statutes, in a reference thereto, subsection (10) of
598 section 624.424, Florida Statutes, is reenacted to read:
599 624.424 Annual statement and other information.—
600 (10) Each insurer or insurer group doing business in this
Page 24 of 31
CODING: Words stricken are deletions; words underlined are additions.
hb0503-01-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 503 2022
601 state shall file on a quarterly basis in conjunction with
602 financial reports required by paragraph (1)(a) a supplemental
603 report on an individual and group basis on a form prescribed by
604 the commission with information on personal lines and commercial
605 lines residential property insurance policies in this state. The
606 supplemental report shall include separate information for
607 personal lines property policies and for commercial lines
608 property policies and totals for each item specified, including
609 premiums written for each of the property lines of business as
610 described in ss. 215.555(2)(c) and 627.351(6)(a). The report
611 shall include the following information for each county on a
612 monthly basis:
613 (a) Total number of policies in force at the end of each
614 month.
615 (b) Total number of policies canceled.
616 (c) Total number of policies nonrenewed.
617 (d) Number of policies canceled due to hurricane risk.
618 (e) Number of policies nonrenewed due to hurricane risk.
619 (f) Number of new policies written.
620 (g) Total dollar value of structure exposure under
621 policies that include wind coverage.
622 (h) Number of policies that exclude wind coverage.
623 Section 19. Effective June 1, 2023, for the purpose of
624 incorporating the amendment made by this act to section 215.555,
625 Florida Statutes, in a reference thereto, paragraph (v) of
Page 25 of 31
CODING: Words stricken are deletions; words underlined are additions.
hb0503-01-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 503 2022
626 subsection (6) of section 627.351, Florida Statutes, is
627 reenacted to read:
628 627.351 Insurance risk apportionment plans.—
629 (6) CITIZENS PROPERTY INSURANCE CORPORATION.—
630 (v)1. Effective July 1, 2002, policies of the Residential
631 Property and Casualty Joint Underwriting Association become
632 policies of the corporation. All obligations, rights, assets and
633 liabilities of the association, including bonds, note and debt
634 obligations, and the financing documents pertaining to them
635 become those of the corporation as of July 1, 2002. The
636 corporation is not required to issue endorsements or
637 certificates of assumption to insureds during the remaining term
638 of in-force transferred policies.
639 2. Effective July 1, 2002, policies of the Florida
640 Windstorm Underwriting Association are transferred to the
641 corporation and become policies of the corporation. All
642 obligations, rights, assets, and liabilities of the association,
643 including bonds, note and debt obligations, and the financing
644 documents pertaining to them are transferred to and assumed by
645 the corporation on July 1, 2002. The corporation is not required
646 to issue endorsements or certificates of assumption to insureds
647 during the remaining term of in-force transferred policies.
648 3. The Florida Windstorm Underwriting Association and the
649 Residential Property and Casualty Joint Underwriting Association
650 shall take all actions necessary to further evidence the
Page 26 of 31
CODING: Words stricken are deletions; words underlined are additions.
hb0503-01-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 503 2022
651 transfers and provide the documents and instruments of further
652 assurance as may reasonably be requested by the corporation for
653 that purpose. The corporation shall execute assumptions and
654 instruments as the trustees or other parties to the financing
655 documents of the Florida Windstorm Underwriting Association or
656 the Residential Property and Casualty Joint Underwriting
657 Association may reasonably request to further evidence the
658 transfers and assumptions, which transfers and assumptions,
659 however, are effective on the date provided under this paragraph
660 whether or not, and regardless of the date on which, the
661 assumptions or instruments are executed by the corporation.
662 Subject to the relevant financing documents pertaining to their
663 outstanding bonds, notes, indebtedness, or other financing
664 obligations, the moneys, investments, receivables, choses in
665 action, and other intangibles of the Florida Windstorm
666 Underwriting Association shall be credited to the coastal
667 account of the corporation, and those of the personal lines
668 residential coverage account and the commercial lines
669 residential coverage account of the Residential Property and
670 Casualty Joint Underwriting Association shall be credited to the
671 personal lines account and the commercial lines account,
672 respectively, of the corporation.
673 4. Effective July 1, 2002, a new applicant for property
674 insurance coverage who would otherwise have been eligible for
675 coverage in the Florida Windstorm Underwriting Association is
Page 27 of 31
CODING: Words stricken are deletions; words underlined are additions.
hb0503-01-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 503 2022
676 eligible for coverage from the corporation as provided in this
677 subsection.
678 5. The transfer of all policies, obligations, rights,
679 assets, and liabilities from the Florida Windstorm Underwriting
680 Association to the corporation and the renaming of the
681 Residential Property and Casualty Joint Underwriting Association
682 as the corporation does not affect the coverage with respect to
683 covered policies as defined in s. 215.555(2)(c) provided to
684 these entities by the Florida Hurricane Catastrophe Fund. The
685 coverage provided by the fund to the Florida Windstorm
686 Underwriting Association based on its exposures as of June 30,
687 2002, and each June 30 thereafter shall be redesignated as
688 coverage for the coastal account of the corporation.
689 Notwithstanding any other provision of law, the coverage
690 provided by the fund to the Residential Property and Casualty
691 Joint Underwriting Association based on its exposures as of June
692 30, 2002, and each June 30 thereafter shall be transferred to
693 the personal lines account and the commercial lines account of
694 the corporation. Notwithstanding any other provision of law, the
695 coastal account shall be treated, for all Florida Hurricane
696 Catastrophe Fund purposes, as if it were a separate
697 participating insurer with its own exposures, reimbursement
698 premium, and loss reimbursement. Likewise, the personal lines
699 and commercial lines accounts shall be viewed together, for all
700 fund purposes, as if the two accounts were one and represent a
Page 28 of 31
CODING: Words stricken are deletions; words underlined are additions.
hb0503-01-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 503 2022
701 single, separate participating insurer with its own exposures,
702 reimbursement premium, and loss reimbursement. The coverage
703 provided by the fund to the corporation shall constitute and
704 operate as a full transfer of coverage from the Florida
705 Windstorm Underwriting Association and Residential Propert y and
706 Casualty Joint Underwriting Association to the corporation.
707 Section 20. For the purpose of incorporating the amendment
708 made by this act to section 626.856, Florida Statutes, in a
709 reference thereto, paragraph (e) of subsection (1) of section
710 626.865, Florida Statutes, is reenacted to read:
711 626.865 Public adjuster's qualifications, bond.—
712 (1) The department shall issue a license to an applicant
713 for a public adjuster's license upon determining that the
714 applicant has paid the applicable fees specified in s. 624.501
715 and possesses the following qualifications:
716 (e) Has been licensed in this state as an all-lines
717 adjuster, and has been appointed on a continual basis for the
718 previous 6 months as a public adjuster apprentice under s.
719 626.8561, as an independent adjuster under s. 626.855, or as a
720 company employee adjuster under s. 626.856.
721 Section 21. For the purpose of incorporating the amendment
722 made by this act to section 626.221, Florida Statutes, in a
723 reference thereto, paragraph (b) of subsection (1) of section
724 626.8734, Florida Statutes, is reenacted to read:
725 626.8734 Nonresident all-lines adjuster license
Page 29 of 31
CODING: Words stricken are deletions; words underlined are additions.
hb0503-01-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 503 2022
726 qualifications.—
727 (1) The department shall issue a license to an applicant
728 for a nonresident all-lines adjuster license upon determining
729 that the applicant has paid the applicable license fees required
730 under s. 624.501 and:
731 (b) Has passed to the satisfaction of the department a
732 written Florida all-lines adjuster examination of the scope
733 prescribed in s. 626.241(6); however, the requirement for the
734 examination does not apply to:
735 1. An applicant who is licensed as an all-lines adjuster
736 in his or her home state if that state has entered into a
737 reciprocal agreement with the department;
738 2. An applicant who is licensed as a nonresident all -lines
739 adjuster in a state other than his or her home state and a
740 reciprocal agreement with the appropriate official of the state
741 of licensure has been entered into with the department; or
742 3. An applicant who holds a certification set forth in s.
743 626.221(2)(j).
744 Section 22. Effective upon this act becoming a law, for
745 the purpose of incorporating the amendment made by this act to
746 section 627.7152, Florida Statutes, in references thereto,
747 subsection (1) and paragraph (d) of subsection (2) of section
748 627.7153, Florida Statutes, are reenacted to read:
749 627.7153 Policies restricting assignment of post-loss
750 benefits under a property insurance policy.—
Page 30 of 31
CODING: Words stricken are deletions; words underlined are additions.
hb0503-01-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 503 2022
751 (1) As used in this section, the term "assignment
752 agreement" has the same meaning as provided in s. 627.7152 .
753 (2) An insurer may make available a policy that restricts
754 in whole or in part an insured's right to execute an assignment
755 agreement only if all of the following conditions are met:
756 (d) Each restricted policy include on its face the
757 following notice in 18-point uppercase and boldfaced type:
758
759 THIS POLICY DOES NOT ALLOW THE UNRESTRICTED ASSIGNMENT
760 OF POST-LOSS INSURANCE BENEFITS. BY SELECTING THIS
761 POLICY, YOU WAIVE YOUR RIGHT TO FREELY ASSIGN OR
762 TRANSFER THE POST-LOSS PROPERTY INSURANCE BENEFITS
763 AVAILABLE UNDER THIS POLICY TO A THIRD PARTY OR TO
764 OTHERWISE FREELY ENTER INTO AN ASSIGNMENT AGREEMENT AS
765 THE TERM IS DEFINED IN SECTION 627.7152 OF THE FLORIDA
766 STATUTES.
767 Section 23. Except as otherwise expressly provided in this
768 act and except for this section, which shall take effect upon
769 this act becoming a law, this act shall take effect July 1,
770 2022.
Page 31 of 31
CODING: Words stricken are deletions; words underlined are additions.
hb0503-01-c1
COMMERCE COMMITTEE
CS/HB 503 by Rep. Gregory
Insurance
AMENDMENT SUMMARY
February 23, 2022
Amendment 1 by Gregory (line 155): Allows the Office of Insurance Regulation (OIR) to
conduct background checks on person who maintain citizenship from, reside in, or are domiciled
in, the same jurisdiction outside the United States if the aggregate ownership by such persons
exceeds 10% of either:
• A newly established insurer applying for a certificate of authority from OIR; or
• An existing stock insurer possessing a certificate of authority from OIR.
Amendment 2 by Gregory (line 218): provides that a designee of the Director of the Division
of Emergency Management may be a member of the Florida Commission on Hurricane Loss
Projection Methodology in lieu of the Director.
Amendment 3 by Gregory (line 235): amends from 15 to 10 the number of days’ notice that an
insurer must give a policyholder before a change in the amount of premium automatically
withdrawn from a policyholders’ account in order to comply with federal law.
COMMITTEE/SUBCOMMITTEE AMENDMENT
Bill No. CS/HB 503 (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 Gregory offered the following:
3
4 Amendment (with title amendment)
5 Between lines 155 and 156, insert:
6 Section 3. Subsection (3) is added to of section 624.413,
7 Florida Statutes, to read:
8 624.413 Application for certificate of authority. —
9 (3)(a) If the aggregate percentage of ownership by persons
10 maintaining citizenship from, residing in, or domiciled in, the
11 same jurisdiction outside the United States exceeds 10 percent
12 or more of an applicant for a certificate of authority from the
13 office, or if such persons acquire or intend to acquire in the
14 aggregate more than 10 percent ownership in an existing stock
15 insurer possessing a certificate of authority from the office,
16 then such persons may be:
122505 - h0503-line 155.docx
Published On: 2/22/2022 9:34:38 PM
Page 1 of 3
COMMITTEE/SUBCOMMITTEE AMENDMENT
Bill No. CS/HB 503 (2022)
Amendment No. 1
17 1. Deemed to have control; and
18 2. Subject to the requirements of a sworn biographical
19 statements, copies of fingerprints, and authority for rele ase of
20 information in regarding to the investigation of such persons'
21 backgrounds as specified in s. 628.051(2)(b).
22 (b) The office may apply the same criteria described in
23 paragraph (a) to each of the following applications to determine
24 if a person is deemed to have control and is subject to the
25 requirements of a sworn biographical statement, copies of
26 fingerprints, and authority for release of information as
27 specified in s. 628.051(2)(b):
28 1. A certificate of authority to form multiple-employer
29 welfare arrangements under s. 624.437;
30 2. A certificate of authority to act as insurance
31 administrators under s. 626.8805;
32 3. A permit to form insurers under s. 628.051;
33 4. An acquisition under s. 628.461;
34 5. A specialty acquisition under s. 628.4615;
35 6. A certificate of authority to transact insurance as a
36 reciprocal insurer under s. 629.081;
37 7. A license to issue motor vehicle service agreements
38 under s. 634.014;
39 8. A license to issue home warranties under s. 634.304;
40 9. A icense to issue service warranties under s. 634.404;
122505 - h0503-line 155.docx
Published On: 2/22/2022 9:34:38 PM
Page 2 of 3
COMMITTEE/SUBCOMMITTEE AMENDMENT
Bill No. CS/HB 503 (2022)
Amendment No. 1
41 10. A certificate of authority to operate as a prepaid
42 limited health service organization under s. 636.008;
43 11. A license to operate as a discount plan organization
44 under s. 636.204;
45 12. A certificate for a health maintenance organization
46 under s. 641.21;
47 13. A certificate of authority to operate a prepaid health
48 clinics under s. 641.405; and
49 14. A certificate of authority to offer continuing care
50 contracts under ss. 651.022–651.0245.
51
52
53 -----------------------------------------------------
54 T I T L E A M E N D M E N T
55 Remove line 9 and insert:
56 at least a specified amount; amending s. 624.413, F.S.;
57 providing circumstances under which certain persons are deemed
58 to have control; revising the Office of Insurance Regulation's
59 authority to conduct background checks on certain persons;
60 creating s. 624.46227,
122505 - h0503-line 155.docx
Published On: 2/22/2022 9:34:38 PM
Page 3 of 3
COMMITTEE/SUBCOMMITTEE AMENDMENT
Bill No. CS/HB 503 (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 Gregory offered the following:
3
4 Amendment (with title amendment)
5 Between lines 218 and 219, insert:
6 Section 7. Paragraph (b) of subsection (2) of section
7 627.0628, Florida Statutes, is amended to read:
8 627.0628 Florida Commission on Hurricane Loss Projection
9 Methodology; public records exemption; public meetings
10 exemption.—
11 (2) COMMISSION CREATED.—
12 (b) The commission shall consist of the following 12
13 members:
14 1. The insurance consumer advocate.
032023 - h0503-line 218.docx
Published On: 2/22/2022 9:36:07 PM
Page 1 of 3
COMMITTEE/SUBCOMMITTEE AMENDMENT
Bill No. CS/HB 503 (2022)
Amendment No. 2
15 2. The senior employee of the State Board of
16 Administration responsible for operations of the Florida
17 Hurricane Catastrophe Fund.
18 3. The Executive Director of the Citizens Property
19 Insurance Corporation.
20 4. The Director of the Division of Emergency Management ,
21 or the director's designee, provided such designee is a full -
22 time employee of the division.
23 5. The actuary member of the Florida Hurricane Catastrophe
24 Fund Advisory Council.
25 6. An employee of the office who is an actuary responsible
26 for property insurance rate filings and who is appointed by the
27 director of the office.
28 7. Five members appointed by the Chief Financial Officer,
29 as follows:
30 a. An actuary who is employed full time by a property and
31 casualty insurer that was responsible for at least 1 percent of
32 the aggregate statewide direct written premium for homeowner
33 insurance in the calendar year preceding the member's
34 appointment to the commission.
35 b. An expert in insurance finance who is a full-time
36 member of the faculty of the State University System and who has
37 a background in actuarial science.
032023 - h0503-line 218.docx
Published On: 2/22/2022 9:36:07 PM
Page 2 of 3
COMMITTEE/SUBCOMMITTEE AMENDMENT
Bill No. CS/HB 503 (2022)
Amendment No. 2
38 c. An expert in statistics who is a full-time member of
39 the faculty of the State University System and who has a
40 background in insurance.
41 d. An expert in computer system design who is a full -time
42 member of the faculty of the State University System.
43 e. An expert in meteorology who is a full-time member of
44 the faculty of the State University System and who specializes
45 in hurricanes.
46 8. A licensed professional structural engineer who is a
47 full-time faculty member in the State University System and who
48 has expertise in wind mitigation techniques. This appointment
49 shall be made by the Governor.
50
51 -----------------------------------------------------
52 T I T L E A M E N D M E N T
53 Remove line 21 and insert:
54 property insurance rate filings; amending s. 627.0628, F.S.;
55 revising the membership of the Florida Commission on Hurricane
56 Loss Projection Methodology; amending s. 627.0629,
032023 - h0503-line 218.docx
Published On: 2/22/2022 9:36:07 PM
Page 3 of 3
COMMITTEE/SUBCOMMITTEE AMENDMENT
Bill No. CS/HB 503 (2022)
Amendment No. 3
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 Gregory offered the following:
3
4 Amendment (with title amendment)
5 Remove line 235 and insert:
6 any type of insurance shall give the named insured at least 10
7 15
8
9 -----------------------------------------------------
10 T I T L E A M E N D M E N T
11 Remove line 25 and insert:
12 met; amending s. 627.0665, F.S.; revising the number of days
13 advance written notice that an insurer must give a named insured
14 when a policy premium is increased; revising notification
935133 - h0503-line 235.docx
Published On: 2/22/2022 9:36:50 PM
Page 1 of 1
CS/HB 557
HOUSE OF REPRESENTATIVES STAFF ANALYSIS
BILL #: CS/HB 557 Fire Investigator Cancer Treatment Benefits
SPONSOR(S): Government Operations Subcommittee, Salzman & others
TIED BILLS: IDEN./SIM. BILLS: CS/SB 838
REFERENCE ACTION ANALYST STAFF DIRECTOR or
BUDGET/POLICY CHIEF
1) Insurance & Banking Subcommittee 17 Y, 0 N Herendeen Luczynski
2) Government Operations Subcommittee 16 Y, 0 N, As CS Roth Toliver
3) Appropriations Committee 23 Y, 0 N Lee Pridgeon
4) Commerce Committee Herendeen Hamon
SUMMARY ANALYSIS
In 2019, the Legislature created a special benefit package for firefighters suffering from certain types of cancer,
because studies have demonstrated a link between firefighting and cancer. The special benefit package is an
alternative to filing a workers’ compensation claim, which requires proof that workplace exposures are the
cause of a firefighter’s occupational disease. Like firefighters, fire investigators sustain significant exposure to
hazardous vapors, gases and particles that are known to contribute to chronic health conditions, including
cancer; however, fire investigators are not eligible for the special benefit package.
The special benefit package provides that firefighters who are diagnosed with certain types of cancer are
eligible for a one-time payment of $25,000 and employer-sponsored health insurance, including reimbursement
for any deductible, co-payment, or co-insurance costs the firefighter incurs for the treatment of cancer. To
qualify for these benefits, a firefighter must: (1) have been working full-time as a firefighter, for a government
employer, for at least 5 continuous years; (2) have not used tobacco products for at least the 5 years prior to
the cancer diagnosis; and (3) have not been employed in any other position which is proven to create a high
risk of cancer during the 5 years prior to the cancer diagnosis.
Employment-sponsored health benefits must be made available for 10 years after the firefighter terminates
employment, so long as the firefighter is not subsequently re-employed as a firefighter.
If a firefighter becomes disabled or dies due to cancer, the employer must consider the cancer diagnosis as an
injury or illness incurred in the line of duty. This makes the firefighter eligible for line-of-duty disability retirement
benefits and also makes surviving family members eligible for line-of-duty death benefits.
The number of Florida-certified fire investigators working full-time for state and local governments, including
special fire districts, is unclear. The Florida State Fire College has certified 1,740 fire investigators since 2005,
and about half of these people also hold certifications as firefighters. The State Fire Marshal employs 104 fire
investigators; 86 of these fire investigators are Florida-certified or in the process of becoming certified.
The bill amends the definition of “firefighter” to include Florida-certified fire investigators, making fire
investigators eligible for the special benefit package related to a cancer diagnosis. The costs to provide the
enhanced benefits under s. 112.118, F.S., must be borne by the employer.
The bill has an indeterminate significant negative fiscal impact on state and local governments, which are
responsible for the cost of the special benefit package. See Fiscal & Analysis & Economic Impact Statement.
The effective date of the bill is July 1, 2022.
This docum ent does not reflect the intent or official position of the bill sponsor or House of Representatives .
STORAGE NAME: h0557g.COM
DATE: 2/21/2022
FULL ANALYSIS
I. SUBSTANTIVE ANALYSIS
A. EFFECT OF PROPOSED CHANGES:
Present Situation
Firefighters Face an Increased Risk of Cancer
A two-part study by the Centers for Disease Control and Prevention/National Institute for Occupational
Health and Safety (NIOSH) concluded that firefighters have a nine percent greater risk of being diagnosed
with cancer – and a 14 percent greater risk of dying from cancer – than the general population of the
United States.1
The study was launched in 2010 and reviewed records of nearly 30,000 career firefighters who served in
Chicago, Philadelphia, and San Francisco fire departments between 1950 and 2009.2
In 2013, researchers reported statistically significant mortality and incidence rates of cancers of the
esophagus, intestine, lung, kidney, and oral cavity, as well as increased mesothelioma for
firefighters compared with the general population, and excess risk of bladder and prostate cancer at
younger ages.3
In 2015, researchers reported that the risk of developing lung cancer and leukemia increases with
exposure to smoke and hazardous chemicals that are released from burning materials, asbestos,
and diesel exhaust.4
In 2018, the federal government directed the Centers for Disease Control to create a National Firefighter
Registry that, with voluntary participation from firefighters, will track cancer and occupational risk factors to
help researchers and the medical community better understand the causes of disease and death among
firefighters.5
Special Benefit Package for Firefighters in Lieu of Workers’ Compensation Benefits
The Legislature took action in 2019 by creating s. 112.1816, F.S.6 Instead of seeking benefits through the
workers’ compensation system,7 where the employee must prove that workplace exposures caused
cancer, a firefighter diagnosed with certain types of cancer is entitled to certain benefits. An affected
firefighter may receive a one-time cash payment of $25,000 and a guarantee that their employer-
sponsored health insurance will continue while the firefighter remains on the job and for 10 years after the
firefighter terminates employment, so long as the firefighter is not subsequently re-employed as a
firefighter. The employer must reimburse the firefighter for any deductible, co-payment, or co-insurance
costs paid for the treatment of cancer.
1 Centers for Disease Control and Prevention/National Institute for Occupational Health and Safety, Findings from a Study
of Cancer among U.S. Fire Fighters, cdc.gov/niosh/pgms/worknotify/pdfs/ff-cancer-factsheet-final-508.pdf (last visited
Feb.18, 2022).
2 Id.
3 Centers for Disease Control and Prevention/National Institute for Occupational Health and Safety, Mortality and cancer
incidence in a pooled cohort of US firefighters from San Francisco, Chicago and Philadelphia (1950− 2009),
http://www.cdc.gov/niosh/firefighters/pdfs/OEM_FF_Ca_Study_10-2013.pdf (last visited Feb. 18, 2022).
4 Centers for Disease Control and Prevention/National Institute for Occupational Health and Safety, Exposure–response
relationships for select cancer and non-cancer health outcomes in a cohort of US firefighters from San Francisco, Chicago
and Philadelphia (1950–2009), https://stacks.cdc.gov/view/cdc/34054, (last visited Feb. 18, 2022).
5 Centers for Disease Control and Prevention/National Institute for Occupational Health and Safety, National Firefighter
Registry, https://www.cdc.gov/niosh/firefighters/registry.html (last visited Feb. 18, 2022).
6 Ch. 2019-21, Laws of Fla.
7 See ch. 440, F.S.
STORAGE NAME: h0557g.COM PAGE: 2
DATE: 2/21/2022
Every state board, commission, department, division, bureau, agency, county, municipality, or other
political subdivision of the state that employs firefighters,8 including fire control districts, must make these
benefits available to firefighters who are employed on a full-time basis. There are approximately 650 state-
employed firefighters currently covered by the State Risk Management Trust Fund (SRMTF). 9
Eligibility Requirements
To be eligible, a firefighter must be diagnosed with one of the following types of cancer: bladder cancer,
brain cancer, breast cancer, cervical cancer, colon cancer, esophageal cancer, invasive skin cancer,
kidney cancer, large intestinal cancer, lung cancer, malignant melanoma, mesothelioma, multiple myeloma,
non-Hodgkin’s lymphoma, oral cavity and pharynx cancer, ovarian cancer, prostate cancer, rectal cancer,
stomach cancer, testicular cancer, and thyroid cancer. 10 Additionally, the firefighter:
Must have been employed by his or her employer for at least 5 continuous years;
Must not have used tobacco products for at least the 5 years preceding the cancer diagnosis; and
Must not have been employed in any other position in the 5 years preceding the cancer diagnosis
which is proven to create a higher risk for any cancer. 11
Line-of-Duty Disability Retirement and Death Benefits
Many firefighters are members of the Florida Retirement System (FRS), which provides retirement benefits
to 980 participating employers, including all state and county government agencies, school boards, state
universities and community colleges, as well as many cities and special districts.12 Firefighters who are
members of the FRS are included in a special risk class whose members receive enhanced benefits, due
to the unique challenges and risks of their jobs.13
Municipalities and special fire districts that do not participate in the FRS offer retirement plans that are
secured by the Firefighters’ Pension Trust Fund (FPTF)14, which must meet minimum requirements
established by the Division of Retirement of the Department of Management Services. 15
When a firefighter diagnosed with cancer qualifies for the $25,000 cash payment and health benefits, the
employer must consider a firefighter’s cancer diagnosis as an injury incurred in the line of duty. 16
If the firefighter becomes totally and permanently disabled by cancer, the firefighter is entitled to a line-of-
duty retirement,17 as follows:
Under the FRS, a line-of-duty disability retirement results in payment of 65 percent of the
firefighter’s average final compensation for the remainder of his or her life; 18
8 S. 112.191(1)(a), F.S.
9 Florida Department of Financial Services (DFS), Agency Analysis of 2022 CS/House Bill 557, p. 1 (Feb. 7, 2022).
10 S. 112.1816(1)(a), F.S.
11 S. 112.1816(2), F.S.
12 Department of Management Services, Division of Retirement, Florida Retirement System Pension Plan and other State
Administered Systems, Comprehensive Annual Financial Report FY 2019-2020, p. 8, Annual Reports / Publications /
Retirement / Workforce Operations / Florida Department of Management Services - DMS (myflorida.com) (last visited
Feb. 18, 2022).
13 S. 121.0515, F.S.
14 S. 175.041, F.S.
15 Ss. 175.021, and 175.351, F.S.; also see Department of Management Services, Municipal Police and Fire
Plans/Overview, Overview / Municipal Police and Fire Plans / Local Retirement Plans / Retirement / Workforce Operations
/ Florida Department of Management Services - DMS (myflorida.com) (last visited Feb. 18, 2022).
16 S. 112.1816(2)(b), F.S.
17 S. 112.1816(3), F.S.
18 Department of Management Services, supra note 12, at 39. Under s. 121.091(4)(b), F.S., an employee is totally and
permanently disabled if he or she cannot render useful and efficient service as an officer or employee.
STORAGE NAME: h0557g.COM PAGE: 3
DATE: 2/21/2022
Under the FPTF, a line-of-duty disability retirement results in payment of at least 42 percent of the
firefighters’ average monthly compensation for the remainder of his or her life; 19 and
If the firefighter did not participate in a retirement plan, the employer must pay 42 percent of the
firefighters’ most recent annual salary, for life.20
If the firefighter dies due to cancer or the treatment of cancer, the firefighter’s beneficiary is entitled to line-
of-duty death benefits,21 as follows:
Under the FRS, a line-of-duty death benefit provides a lifetime monthly benefit equal to the
firefighter’s salary at death to the surviving spouse. If the spouse dies, the benefit is paid on behalf
of the member’s dependent children until the youngest reaches age 18, and the benefit may be
extended until the youngest child reaches age 25 if the child is unmarried and a full-time student.22
State law does not require a line-of-duty death benefit for the FPTF. However, if a firefighter with 10
years of service dies prior to retirement, the firefighter’s beneficiary receives either early or normal
retirement benefits for 10 years.23
If the firefighter did not participate in a retirement plan, the employer must provide a death benefit of
at least 42 percent of the firefighters’ most recent annual salary to the beneficiary, for at least 10
years.24
Additionally, the firefighter’s beneficiary is eligible for a death benefit of $75,000. 25
The employer is required to pay the costs of the special benefit package without increasing employee
contributions to a retirement plan.26
Workers’ Compensation Benefits
A firefighter who declines the special benefit package may instead file a claim for workers’ compensation
benefits. 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.
The Employee Must Demonstrate Causation
In addition to on-the-job injuries, employers may be required to pay compensation for lost wages or furnish
benefits (such as medical care, medical devices, attendant care) if an occupational disease causes
disablement, is due to the nature of the employee’s occupation, and the employee contracted the disease
during the course of his or her employment.27 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 presents 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.28
19 S. 175.191, F.S., states that an employee is totally and permanently disabled if he or she cannot render useful and
efficient service as a firefighter and is likely to remain so disabled continuously and permanently.
20 S. 112.1816(3)(b), F.S.
21 S. 112.1816(3)(a), F.S
22 Department of Management Services, supra note 12, at 39.
23 S. 175.201, F.S.
24 S. 112.1816(3)(b), F.S.
25 S. 112.191(2)(a), F.S.
26 S. 112.1816(5), F.S.
27 Ss. 440.09 and 440.151, F.S.
28 S. 440.151(2), F.S.
STORAGE NAME: h0557g.COM PAGE: 4
DATE: 2/21/2022
Thus, under the workers’ compensation system, a firefighter suffering from cancer must show a causal
relationship between the diagnosis of cancer and his or her work as a firefighter to receive medical benefits
and compensation for lost work time.
Temporary Disability
Disability is defined as the incapacity to earn wages the employee was receiving at the time of injury. 29 It is
a measure of the earning capacity that is lost as a result of a work-related injury.30 Disability may be
temporary or permanent, and partial or total.31
When an authorized doctor declares an injured employee to be temporarily but totally disabled, the
employee is eligible for up to 260 weeks (5 years) of disability benefits.32
Injured workers who earn less than the statewide average weekly wage 33 are paid two thirds of their
average weekly salary, typically beginning on the 8th day after the employee loses time from work.34 The
minimum payment is $20 per week and the maximum payment is 100 percent of the statewide average
weekly wage; thus, payments to injured workers who earn more than the statewide average weekly wage
are capped at the statewide average weekly wage that was in effect on the date of injury. 35
Temporary disability benefits end when the injured worker’s doctor indicates that the employee can work in
some capacity and the employee returns to work, or when the employee reaches the maximum medical
improvement and the carrier has paid 5 years of benefits.36
Total and Permanent Disability
When an employee is totally and permanently disabled after the date of maximum medical improvement,
the employee who is not able to work in any job, for any employer, must be paid 66 2/3 percent of the
employee’s average weekly wage at the time of injury, or up to 100 percent of the statewide average
weekly wage, until age 75, or until the end of the injured workers’ life if the injury prevented the worker from
working sufficient quarters to be eligible for Social Security disability. 37
An order of compensation may require lifetime medical benefits for a catastrophic injury. Additionally,
people who are disabled prior to age 65 are eligible for Medicare.38 If a totally and permanently disabled
worker receives Social Security disability benefits, the federal benefit may offset some or all of the benefits
paid by the workers’ compensation system.39
Death Benefits
29 S. 440.02(13), F.S.
30 Metropolitan Stevedore Co. v. Rambo, 521 U.S. 121 (1997).
31 S. 440.15, F.S.
32 S. 440.15(2)(a), F.S., limits disability benefits to 104 weeks (2 years), but the Florida Supreme Court held that this limit
was unconstitutional and directed that a prior limit of 260 weeks (5 years) be reinstated. See Westphal v. City of St.
Petersburg, 194 So. 3d 311 (Fla. 2016).
33 S. 440.12(2), F.S., defines the “statewide average weekly wage” as the average weekly wage paid by employers
subject to the Florida Reemployment Assistance Program Law as reported to the Department of Economic Opportunity.
34 S. 440.14(1), F.S.
35 S. 440.12(2), F.S.
36 S. 440.15(3)(d), F.S.
37 S. 440.15(1)(a) and (b), F.S.
38 Department of Management Services, myBenefits, Frequently Ask ed Questions-Retirees,
https://www.mybenefits.myflorida.com/health/res ourc es/faq_s/frequently_asked_questions_retirees (last visited Feb. 18,
2022).
39 S. 440.15(1)(b) and (f), F.S.
STORAGE NAME: h0557g.COM PAGE: 5
DATE: 2/21/2022
In the event that an injured worker dies within one year of an accident that causes injury or within 5 years
of continuous disability, the employer must pay up to $7,500 for funeral expenses and compensation up to
$150,000.40
The surviving spouse may also receive payment for up to 1,800 classroom hours at a college or career
center, or 80 semester hours at a community college. If the deceased was a state employee, the spouse is
entitled to a full tuition waiver at a state university or community college. 41
In cases that involve a compensable occupational disease, death benefits are provided to surviving
beneficiaries, if the employee demonstrates causation and sufficient exposure to a specific harmful
substance shown to be present in the workplace, and the employee dies within 350 weeks (6.7 years) after
the last exposure to the harmful substance.42
Statutory Presumptions
Florida law includes several statutory presumptions that make a disability due to certain communicable
diseases compensable under workers’ compensation law, for first responders, unless the employer can
prove that the disease was caused by a non-work related event or exposure. For firefighters, these laws
include heart disease, hypertension, hepatitis, meningococcal meningitis, and tuberculosis. 43
Workers’ compensation law does not include any statutory presumption for firefighters who are diagnosed
with cancer.
Florida-certified Fire Investigators
Fire investigators determine the origin and cause of fires and explosions, preserve evidence and ensure
that the chain of custody is maintained, and create a record of the investigation. They also support law
enforcement in the detection and apprehension of persons suspected of arson and explosive-related
crimes.
According to experts in the field, the best evidence of the cause and origin of a fire may be found after a
fire has been suppressed and before the process of “overhaul” begins. Overhaul involves detecting and
extinguishing hidden fires or hot spots that may rekindle. Thus, fire investigators, like firefighters, face
significant exposure to hazardous vapors, gases, and dangerous chemicals and carcinogens that
contribute to chronic health conditions, including cancer. 44 Respiratory protective equipment is crucial to
first responders working in and around a fire scene.45
The Florida State Fire College provides training for firefighters, fire inspectors, fire investigators, and a
variety of administrative positions within the fire service. 46 Certified firefighters, certified law enforcement
officers, law enforcement crime scene technicians, and certified fire safety inspectors who have fire
investigation responsibilities may become certified fire investigators by completing a 360-hour certification
40 S. 440.16(1)(a)-(b), F.S., states that compensation is based on 50 percent of the statewide average weekly wage to the
surviving spouse if there are no children, and 66 2/3 percent of the statewide average weekly wage if the injured worker
had a surviving spouse and children.
41 S. 440.16(1)(c), F.S.
42 S. 440.151(1)(a), F.S.
43 Ss. 112.18, 112.181 and 175.231, F.S.
44 International Association of Arson Investigators, Inc., Fire Investigator Health and Safety Best Practices, May 4, 2020,
FireInvestigatorHealthS afetyBestPracticesSecond.pdf, (last visited Feb. 18, 2022); and FireRescue1, It’s in the smok e:
cancer-causing compounds and contaminates, August 31, 2018, www.firerescue1.com/fire-
products/turnoutgear/articles/its-in-the-smoke-cancer-causing-compounds-and-contaminates-oNwVFdIZBpJIUZMr/ (last
visited Feb. 18, 2022).
45 ScienceDirect, The “Warm Zone” Cases: Environmental Monitoring Immediately Outside the Fire Incident Response
Arena by Firefighters, September 2018, at 352-355, The “Warm Zone” Cases: Environmental Monitoring Immediately
Outside the Fire Incident Response Arena by Firefighters - ScienceDirect (last visited Feb. 18, 2022).
46 Department of Financial Services, Division of State Fire Marshal, Certification and Testing,
www.myfloridacfo.com/Division/SFM/BFST/Standards/default.htm (last visited Feb. 18, 2022).
STORAGE NAME: h0557g.COM PAGE: 6
DATE: 2/21/2022
program and passing a certification exam.47 The program includes coursework on fire chemistry, fire origin
and cause, fire protection systems, building construction, latent investigation, arson investigation, post blast
investigation, and legal issues for fire investigators.48
Since 2005, the Florida State Fire College has certified 1,740 fire investigators; 947 of these persons also
hold a firefighter certification.49 The number of certified investigators working as full-time fire investigators
for state and local governments is not known.
The State Fire Marshal’s Division of Investigative and Forensic Services, Bureau of Fire and Arson
Investigation employs 104 fire investigators and 86 of these employees are either Florida-certified or in the
process of becoming certified. These fire investigators respond to fire scenes throughout the state, on the
day of a fire or within 3 days of a fire, and spend an average of 3 hours on site for each investigation.50
They handled an average of 39 fires per fire investigator in 2019, and 33 fires per investigator in 2020. 51
The State Fire Marshal conducts investigations when:
A local agency does not have an organized fire department or arson investigators within its law
enforcement agency;
An initial investigation gives reason to believe a fire or explosion was the result of an intentional or
reckless act, or the cause of a fire or explosion is not readily determined by the initial investigation;
A firefighter is injured or killed in the line of duty;
A civilian is injured or killed by a fire or explosion;
The cost of a fire or explosion exceeds $1 million; or
A fire or explosion may be due to the failure of a fire suppression or detection device.52
According to the U.S. Fire Administration, firefighters in Florida spent about 1.8 percent of their time
fighting fires, and 73.2 percent of their time responding to requests for emergency medical services. 53
Thus, fire investigators employed by the State Fire Marshal likely have as much exposure to cancer-
causing carcinogens as the 19,000 firefighters who respond to the scenes of active fires in Florida. 54
According to the Department of Management Services, which oversees the FRS, some employers that
participate in FRS consider fire investigators to be members of the special risk class, while others place fire
investigators in the regular class.55 Employees in the special risk class receive enhanced benefits. For
example, a line-of-duty disability retirement benefit for a member of the special risk class is 65 percent of
the employee’s monthly salary, while an employee in the regular class receives 42 percent of his or her
monthly salary.56 If a fire investigator placed in the regular class wishes to receive the increased benefits of
the special risk class, he or she must complete an application and his or her employer must certify that the
fire inspectors’ duties include on-the-scene firefighting, fire prevention, or fire training, or the supervision of
persons who have such responsibilities.57
47 Department of Financial Services, Division of State Fire Marshal, Bureau of Fire Standards & Training, Fire
Investigation Certification, https://www.myfloridacfo.com/division/sfm/bfst/Standards/FireInvestigator.pdf (last visited Feb.
18, 2022).
48 R. 69A-37.065(3), F.A.C.
49 DFS, supra note 9, at 2.
50 DFS, supra note 9, at 1.
51 Email from Austin Stowers, Director of Legislative Affairs, Department of Financial Services, RE: HB 557 / SB 838 (Jan.
11, 2021).
52 S. 633.112, F.S., and R. 69D-4.001, F.A.C.
53 U.S. Fire Administration, Florida Fire Loss and Fire Department Profile,
https://www.usfa.fema.gov/ data/statistics/states/florida.html (last visited Feb. 18, 2022). The U.S. Fire Administration is an
entity of the U.S. Department of Homeland Security’s Federal Emergency Management Agency.
54 U.S. Bureau of Labor Statistics, Occupational Employment and Wage Statistics, May 2020, Firefighters,
https://www.bls.gov/oes/current/oes332011.htm (last visited Feb. 18, 2022).
55 Email from Sam Kerce, Deputy Director of Legislative Affairs, Department of Management Services, RE: Qualifying for
Special Risk (Feb. 1, 2022).
56 S. 121.091(4)(f), F.S.
57 S. 121.0515(3)(b), F.S., and R. 60S-1.005, F.A.C.
STORAGE NAME: h0557g.COM PAGE: 7
DATE: 2/21/2022
A fire investigator who is diagnosed with cancer may file a petition for workers’ compensation benefits. If
the fire investigator’s cancer is compensable as an occupational disease, the fire investigator is eligible for
temporary disability benefits described above, based on his or her level of impairment, and may be
deemed totally and permanently disabled if he or she is unable to work in any job for any employer.
A fire investigator who is disabled by cancer, but denied workers’ compensation benefits, may be eligible
for a general disability retirement rather than a line-of-duty retirement, so long as the fire investigator has
completed 8 years of service as a member of the FRS or 10 years of service as a member of the FPTF.
The fire investigator would be paid 25 percent of his or her average monthly compensation. 58
Effect of the Bill
The bill amends the definition of “firefighter” to make full-time fire investigators certified by the Florida State
Fire College eligible for the special benefit package provided by s. 112.1816, F.S.
The bill also expands the duties of firefighters to include the investigation of fires and explosives in addition
to the prevention and extinguishing of fires, the protection of life and property, and the enforcement of fire
prevention codes and laws.
The special benefit package would be available to any full-time firefighter or certified fire investigator who
has been employed by the state or a local government, including special fire districts, for at least 5
continuous years and is diagnosed with one of 21 types of cancer discussed above. Additionally, the fire
investigator must not have used tobacco products and cannot have been employed in any other position
which is proven to create a high risk of cancer during the 5 years prior to diagnosis.
A certified fire investigator who qualifies for the special benefit package would be presumed to have
developed cancer in the course of employment, due to the exposures of the job, and be eligible for a line-
of-duty disability retirement (discussed above) if he or she became unable to work as a firefighter.
If a certified fire investigator qualifies for the special benefit package and dies due to cancer or the
treatment of cancer, his or her beneficiaries would be eligible for line-of-duty death benefits (discussed
above). The fire investigator’s beneficiary would also be eligible for a $75,000 death benefit paid by the
employer or the employer’s liability insurance carrier.
The cost of the benefits would be paid by the employer;59 the employer would not be permitted to increase
employee contributions required to participate in a retirement plan or system to pay for the enhanced
retirement benefits.60
58 Ss. 121.091(4)(f) and 175.191(1), F.S.
59 S. 112.1816(5)(a) and (c), F.S.
60 S. 112.1816(5)(c), F.S.
STORAGE NAME: h0557g.COM PAGE: 8
DATE: 2/21/2022
B. SECTION DIRECTORY:
Section 1. Amends s. 112.1816, F.S., relating to firefighters; cancer diagnosis.
Section 2. Provides a statement of important state interest.
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:
State agencies that employ certified fire investigators would pay the full costs of the enhanced
benefits and may not raise employee contributions to an employer-sponsored retirement plan to do
so.61 Costs include the $25,000 payment; continuation of health insurance for 10 years after the
firefighter separates from employment; reimbursement for all co-payments, deductibles, and co-
insurance payments related to the treatment of cancer; and the cost of any line-of-duty disability or
death benefits that may be required. The state employing agency would also pay a $75,000
survivor’s benefit if a fire investigator is eligible for the benefits in s. 112.1816, F.S., and dies from
cancer.
Since s. 112.1816, F.S., went into effect on July 1, 2019, there have been three cancer claims with
payments totaling $66,308 from the State Risk Management Trust Fund (SRMTF) reported by state
agencies that employ firefighters.62 Two claimants received the $25,000 cash payment and
compensation for medical benefits, and one claim was settled for $15,000. 63 The Department of
Financial Services (DFS) currently employs 104 fire investigators within the Division of Investigative
and Forensic Services, 86 of which are Florida-certified fire investigators or in the process of
becoming certified.64 The bill has an indeterminate negative fiscal impact on the SRMTF; however,
the impact is likely significant.
B. FISCAL IMPACT ON LOCAL GOVERNMENTS:
1. Revenues:
None.
2. Expenditures:
Local governments that employ certified fire investigators, including special fire districts, are
responsible for the costs of the special benefits package and may not raise employee contributions
to an employer-sponsored retirement plan to do so.65 Costs include the $25,000 payment;
continuation of health insurance for 10 years after the firefighter separates from employment;
reimbursement for all co-payments, deductibles, and co-insurance payments related to the
treatment of cancer; and the cost of any line-of-duty disability or death benefits that may be
required. The local government employer also would pay a $75,000 survivor’s benefit if a fire
investigator is eligible for the benefits in s. 112.1816, F.S., and dies from cancer.
The total number of fire investigators employed by local governments or special fire districts is
unknown. Since 2005, the State Fire College has certified 1,740 individuals as a fire investigator.
Of those 1,740 individuals, 947 individuals also hold firefighter certifications covered by the current
61 Id.
62 DFS, supra note 9, at 1.
63 Email from Austin Stowers, Director of Legislative Affairs, Department of Financial Services, RE: HB 557 (Dec. 22,
2021).
64 DFS, supra note 9, at 1.
65 S. 112.1816(5), F.S.
STORAGE NAME: h0557g.COM PAGE: 9
DATE: 2/21/2022
definition of firefighter in s. 112.1816, F.S.66 Under the bill, the remaining 793 certified fire
investigators could potentially be eligible for the special benefits package. Therefore, the bill has an
indeterminate, but likely significant, fiscal impact on local governments.
C. DIRECT ECONOMIC IMPACT ON PRIVATE SECTOR:
None.
D. FISCAL COMMENTS:
None.
III. COMMENTS
A. CONSTITUTIONAL ISSUES:
1. Applicability of Municipality/County Mandates Provision:
The county/municipality mandates provision of Art. VII, section 18, of the Florida Constitution may
apply because this bill requires cities and counties and special districts to spend money or take an
action that requires the expenditure of money; however, an exemption may apply as the Legislature
has determined that this bill satisfies an important state interest and similarly situated persons are
all required to comply.
2. Other:
Actuarial Requirements
Article X, s. 14 of the Florida Constitution provides:
A governmental unit responsible for any retirement or pension system supported in
whole or in part by public funds shall not after January 1, 1977, provide any increase in
the benefits to the members or beneficiaries of such system unless such unit has m ade
or concurrently makes provision for the funding of the increase in benefits on a sound
actuarial basis.
Article X, s. 14 of the State Constitution is implemented by statute under part VII of ch. 112, F.S., the
“Florida Protection of Public Employee Retirement Benefits Act” (Act). The Act establishes minimum
standards for the operation and funding of public employee retirement systems and plans in the State
of Florida. It prohibits the use of any procedure, methodology, or assumptions the effect of which is to
transfer to future taxpayers any portion of the costs which may reasonably have been expected to be
paid by the current taxpayers.
B. RULE-MAKING AUTHORITY:
The bill does not alter existing rulemaking authority or require additional rulemaking authority.
C. DRAFTING ISSUES OR OTHER COMMENTS:
None.
IV. AMENDMENTS/COMMITTEE SUBSTITUTE CHANGES
On February 3, 2022, the Government Operations Subcommittee adopted an amendment and reported the bill
favorably as a committee substitute. The amendment clarified that fire investigators have separate
responsibilities from those of other firefighters by moving the language “the investigation of fires and
explosives” to the end of the paragraph.
This analysis is drafted to the committee substitute as adopted by the Government Operations Subcommittee.
66 DFS, supra note 9, at 2.
STORAGE NAME: h0557g.COM PAGE: 10
DATE: 2/21/2022
F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
CS/HB 557 2022
1 A bill to be entitled
2 An act relating to fire investigator cancer treatment
3 benefits; amending s. 112.1816, F.S.; revising the
4 definition of the term "firefighter" to include full-
5 time, Florida-certified fire investigators for the
6 purpose of expanding eligibility for certain cancer
7 treatment benefits to include such investigators;
8 providing a declaration of important state interest;
9 providing an effective date.
10
11 Be It Enacted by the Legislature of the State of Florida:
12
13 Section 1. Paragraph (c) of subsection (1) of section
14 112.1816, Florida Statutes, is amended to read:
15 112.1816 Firefighters; cancer diagnosis.—
16 (1) As used in this section, the term:
17 (c) "Firefighter" means an individual employed as a full-
18 time firefighter or full-time, Florida-certified fire
19 investigator within the fire department or public safety
20 department of an employer whose primary responsibilities are the
21 prevention and extinguishing of fires; the protection of life
22 and property; and the enforcement of municipal, county, and
23 state fire prevention codes and laws pertaining to the
24 prevention and control of fires; or the investigation of fires
25 and explosives.
Page 1 of 2
CODING: Words stricken are deletions; words underlined are additions.
hb0557-01-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 557 2022
26 Section 2. The Legislature determines and declares that
27 this act fulfills an important state interest.
28 Section 3. This act shall take effect July 1, 2022.
Page 2 of 2
CODING: Words stricken are deletions; words underlined are additions.
hb0557-01-c1
CS/CS/HB 749
HOUSE OF REPRESENTATIVES STAFF ANALYSIS
BILL #: CS/CS/HB 749 Fraud Prevention
SPONSOR(S): State Administration & Technology Appropriations Subcommittee, Insurance & Banking
Subcommittee, Clemons and others
TIED BILLS: IDEN./SIM. BILLS: CS/SB 1292
REFERENCE ACTION ANALYST STAFF DIRECTOR or
BUDGET/POLICY CHIEF
1) Insurance & Banking Subcommittee 16 Y, 0 N, As CS Fortenberry Luczynski
2) State Administration & Technology 13 Y, 0 N, As CS Lee Topp
Appropriations Subcommittee
3) Commerce Committee Fortenberry Hamon
SUMMARY ANALYSIS
The bill makes the following changes to existing law to help prevent insurance fraud:
Electronic Insurance Verification – requires that, in addition to driver licenses and identification cards, the
Department of Highway Safety and Motor Vehicle’s (DHSMV) electronic credentialing system display vehicle
registration and insurance information, provide a driver with notification of any lapse in insurance coverage,
and allow the driver to update policy information in the system; requires DHSMV to provide the Legislature
with recommendations by October 1, 2023, regarding electronic verification of drivers’ compliance with
financial responsibility laws.
Service Contracts and Agreements
o Contracts – establishes that sellers of service contracts that include automatic renewal provisions must
allow consumers to cancel these contracts in the same manner and by the same means as the
consumers entered the contracts;
o Agreements – expands the advertising violations for which a service agreement company or
salesperson can be subject to licensure discipline or criminal penalties; requires a service agreement
company’s or salesperson’s disclosures in written advertisements meet certain requirements; requires
such company or salesperson disclose the company’s or salesperson’s full name in radio or television
advertisements; requires that a service agreement salesperson provide his or her full legal name and
license number when beginning a solicitation call and his or her telephone number when ending a call.
Public Adjusters and Public Adjuster Apprentices – establishes a new maximum fine amount, not to
exceed $20,000 per act, for a public adjusters or public adjuster apprentices who commit certain prohibited
acts during a state of emergency declared by the Governor; implements the same penalties for unlicensed
individuals who engage in these prohibited acts.
Investigation by the Division of Investigative and Forensic Services (DIFS) and t he State Fire Marshal
(SFM) – deletes a provision that makes it a misdemeanor to violate a statute regarding the investigation of
fraudulent insurance claims and crimes related to a fire or explosion loss; establishes that Department of
Financial Services (DFS) may fine insurers up to $2,000 per day if the insurer fails or refuses to comply with
the investigation of a fraudulent insurance act by DIFS, or a fire or explosion by the SFM.
Prosecution of False and Fraudulent Insurance Claims – replaces the word “and” with the word “or” so
that violations of certain statutes are separate crimes, and criminal prosecution for violation of either section
must begin within 5 years of the violation; allows an insurer that has been damaged by a false or fraudulent
insurance act to recover investigation and litigation expenses, including attorney fees, if the insurer reported
the false or fraudulent act to DIFS and there was a criminal adjudication of guilt.
For Fiscal Year 2022-23, the bill directs DFS to transfer funds from the Insurance Regulatory Trust Fund to the
DHSMV’s Highway Safety Operating Trust Fund and appropriates a nonrecurring sum of $1,413,270 to DHSMV for
the implementation of the electronic insurance verification provisions of the bill. See Fiscal Analysis & Economic
Impact Statement.
The bill is effective upon becoming law except as otherwise provided within the bill.
This docum ent does not reflect the intent or official position of the bill sponsor or House of Representatives .
STORAGE NAME: h0749d.COM
DATE: 2/21/2022
FULL ANALYSIS
I. SUBSTANTIVE ANALYSIS
A. EFFECT OF PROPOSED CHANGES:
Electronic Insurance Verification
Current law requires that the Department of Highway Safety and Motor Vehicles (DHSMV) establish a
secure and uniform electronic credentialing system (system) for displaying driver licenses 1 and
identification cards. The system is defined as “a computer system accessed using a computer, a
cellular telephone, or any other personal device which queries” DHSMV’s driver license and
identification card records, displays or transmits digital proof of driver licenses and identification cards,
and verifies the authenticity of driver licenses and identification cards.2
Effect of the Bill
The bill requires by July 1, 2023, that, in addition to driver licenses and identification cards, the system
must display vehicle registration and insurance information, provide a driver with notification of any
lapse in insurance coverage needed to meet financial responsibility requirements, and allow the driver
to update policy information in the system. The bill also requires DHSMV to provide the Legislature with
recommendations by October 1, 2023, regarding electronic verification of drivers’ compliance with
financial responsibility laws.3
Service Contracts and Agreements
A service contract is a written contract for the performance of services over a fixed time period or for a
specific duration of time.4 A service agreement is a contract or agreement indemnifying the agreement
holder for the motor vehicle listed on the agreement and arising out of the ownership, operation, and
use of the motor vehicle against loss caused by failure of any mechanical or other component part, or
any mechanical or other component part that does not function as it was originally intended. 5
Cancellation of Service Contracts
A consumer may enter a service contract in a variety of ways. Sometimes entering a service contract is
accomplished easily by a consumer, but the consumer may have difficulty cancelling the contract
because the service contract requires cancellation by a different method. 6 Any seller that sells or offers
to sell a service contract to a consumer that has an automatic renewal provision must “disclose the
automatic renewal provision clearly and conspicuously in the contract or contract offer.” 7 However,
current law does not require that a service contract or offer for a contract to provide a specific method
of contract cancellation.8
Effect of the Bill
The bill establishes that sellers of service contracts that include automatic renewal provisions must
allow consumers to cancel these contracts in the same manner and by the same means as the
consumers entered into the contracts.
Advertising Disclosures by Service Agreement Companies and Salespersons
1 S. 322.032, F.S.
2 S. 322.032(c), F.S.
3 Ch. 324, F.S.
4 S. 501.165(1)(d), F.S. This statute does not apply to warranty associations licensed under ch. 634, F.S.
5 S. 634.011(8), F.S.
6 Department of Financial Services (DFS), Agency Analysis of 2022 House Bill 749, p. 1 (Dec. 16, 2021).
7 S. 501.165(2)(a), F.S.
8 DFS, supra note 6.
STORAGE NAME: h0749d.COM PAGE: 2
DATE: 2/21/2022
Current law provides that a service agreement company or salesperson that engages in certain acts is
subject to denial, suspension, revocation, or refusal to renew or continue any appointment or license, or
is guilty of a second-degree misdemeanor.9 These acts include limited violations of advertising
requirements.10
Effect of the Bill
The bill expands the advertising violations for which a service agreement company or salesperson can
be subject to licensure discipline or criminal penalties. The bill requires that a service agreement
company or salesperson make disclosures in written advertisements in at least 12-point, boldface type.
Such written advertisements must include a Florida Company Code in addition to the name and
address of the company. The bill requires that a service agreement company or salesperson disclose
the full legal name of the company or salesperson in radio or television advertisements. Additionally,
the bill requires a service agreement salesperson to identify his or her full legal name and license
number when beginning a solicitation call and his or her telephone number when ending such a call.
The bill specifies that the phone number may be either the telephone number on file with the
Department of Financial Service (DFS) or another number at which the salesperson may be reached.
Violation of any of these requirements by a company or a salesperson may result in the denial,
suspension, revocation, or refusal to renew or continue an appointment or license, or a second-degree
misdemeanor. These portions of the bill are effective January 1, 2023.
Public Adjusters and Public Adjuster Apprentices
Public adjusters and public adjuster apprentices are prohibited from engaging in a list of practices in
current law and can be fined up to $10,000 per act for engaging in these practices at any time,
including a declared state of emergency.11 Any person who engages in the same acts, but is not a
public adjuster or public adjuster apprentice, and who is not otherwise exempt from licensure, is guilty
of the unlicensed practice of public adjusting and may also be subject to the same fines. 12
Effect of the Bill
The bill establishes a new maximum fine amount, not to exceed $20,000 per act, for a public adjusters
or public adjuster apprentices who commit certain prohibited acts during a state of emergency declared
by the Governor through an executive order or proclamation. The bill implements the same penalties for
individuals who engage in these prohibited acts, but are not public adjusters or public adjuster
apprentices, and are not otherwise exempt from licensure.
Investigations by the Division of Investigative and Forensic Services (DIFS) and the State Fire
Marshal (SFM)
Current law requires insurers to report to the SFM if the insurance company has reason to suspect that
a fire or explosion loss was caused by intentional means. 13 However, these statutes do not provide
consequences for an insurer’s failure to report this knowledge.
Effect of the Bill
The bill specifies that DFS may fine an insurer up to $2,000 per day, until it deems the insurer to be
compliant, if an insurer fails or refuses to comply with the DIFS investigation of a fraudulent insurance
act or SFM’s investigation of a fire or explosion, including the requirement to report fraudulent acts to
9 S. 634.095, F.S.
10 S. 634.095(3), F.S.
11 S. 626.854(22), F.S.
12 S. 626.854(22)(c), F.S.
13 S. 633.126(2), F.S.
STORAGE NAME: h0749d.COM PAGE: 3
DATE: 2/21/2022
DFS. The bill deletes a provision that makes it a misdemeanor to violate a statute regarding the
investigation of fraudulent insurance claims and crimes related to a fire or explosion loss.
Prosecution of False and Fraudulent Insurance Claims and Crimes
Criminal Charges for Insurance Fraud
Section 775.15(11), F.S., provides that a felony violation of a workers’ compensation and an insurance
fraud statute must be commenced within 5 years after the violation is committed. The statute states “[a]
prosecution for a felony violation of ss. 440.105 and 817.234 must be commenced within 5 years after
the violation is committed.” The plain language of the statute could be read to require the violation of
both statutes before there may be a prosecution for a felony violation of s. 775.15(11), F.S.
Effect of the Bill
The bill replaces the word “and” with the word “or” between two statutory sections to clarify that a
violation of either section is a separate crime, and that criminal prosecution for violation of either section
must begin within 5 years of the violation of that section.
Recovery of Costs by Insurers
Section 817.234, F.S., provides criminal penalties for any person who commits insurance fraud by
engaging in certain acts with intent to injure, defraud, or deceive any insurer. An insurer that has been
damaged as a result of a violation of this statute has a cause of action to recover compensatory
damages, plus reasonable investigation and litigation expenses, including attorney fees, at a trial or
appellate court, if the violation has resulted in a criminal adjudication of guilt. 14
Effect of the Bill
In addition to the requirement under existing law that there has been a criminal adjudication of guilt, the
bill adds the requirement that, in order to recover reasonable investigation and litigation expenses,
including attorney fees when it has been damaged due to a false or fraudulent insurance claim, an
insurer must have reported the false or fraudulent claim to DIFS.
B. SECTION DIRECTORY:
Section 1. Creates s. 324.252, F.S., relating to electronic insurance verification.
Section 2. Amends s. 501.165, F.S., relating to automatic renewal of service contracts.
Section 3. Amends s. 626.854, F.S., relating to “public adjuster” defined; prohibitions.
Section 4. Amends s. 626.989, F.S., relating to investigation by department or Division of
Investigative and Forensic Services; compliance; immunity. Confidential information;
reports to division; division investigator’s power of arrest.
Section 5. Amends s. 633.126, F.S., relating to Investigation of fraudulent insurance claims
and crimes; immunity of insurance companies supplying information.
Section 6. Amends s. 634.095, F.S., relating to prohibited acts.
Section 7. Amends s. 775.15, F.S., relating to time limitations; general time limitations; exceptions.
Section 8. Amends s. 817.234, F.S., relating to false and fraudulent insurance claims.
Section 9. Provides a transfer of funds.
14 S. 817.235(5), F.S.
STORAGE NAME: h0749d.COM PAGE: 4
DATE: 2/21/2022
Section 10. Provides an appropriation.
Section 11. Provides that the bill is effective upon becoming law except as otherwise provided.
II. FISCAL ANALYSIS & ECONOMIC IMPACT STATEMENT
A. FISCAL IMPACT ON STATE GOVERNMENT:
1. Revenues:
Department of Financial Services (DFS)
Section 3 of the bill increases the cap on fines for unlicensed activity from $10,000 to $20,000
during a state of emergency. DFS anticipates this will have a minimal positive fiscal impact on
revenues.15
The bill also authorizes DFS to assess fines against insurers who do not comply with reporting
requirements, but DFS does not anticipate a significant fiscal impact from this change.16
2. Expenditures:
DFS
For Fiscal Year 2022-23, the bill directs DFS to transfer $1,413,270 from the Insurance Regulatory
Trust Fund to the Highway Safety Operating Trust Fund of the Department of Highway Safety and
Motor Vehicles (DHSMV) to implement s. 324.252, F.S.
DHSMV
The bill appropriates funds for the purpose of implementing the electronic insurance verification
provisions in s. 324.252, F.S. For Fiscal Year 2022-23, the bill appropriates a nonrecurring sum of
$1,413,270 to the Information Systems Administration budget entity in DHSMV for the costs to
modify its digital driver’s license system to require that it also display and verify driver vehicle
registration and insurance information by July 1, 2023. The estimated annual cost of system
operations and maintenance is $200,000;17 however, DHSMV can absorb the recurring costs within
existing resources.18
B. FISCAL IMPACT ON LOCAL GOVERNMENTS:
1. Revenues:
None.
2. Expenditures:
None.
C. DIRECT ECONOMIC IMPACT ON PRIVATE SECTOR:
To the extent that the DHSMV system updates result in additional tickets or fines issued to drivers, the
bill could have an indeterminate negative impact on the private sector.
D. FISCAL COMMENTS:
15 Department of Financial Services, Agency Analysis of 2022 CS/House Bill 749, p. 4 (Jan. 26, 2022).
16 Id.
17 Email from Pace Callaway,Chief Financial Officer, Department of Highway Safety and Motor Vehicles (DHSMV), RE:
Copy of Insurance Estimate Final.xlsx (Jan. 28, 2022).
18 Id.
STORAGE NAME: h0749d.COM PAGE: 5
DATE: 2/21/2022
None.
III. COMMENTS
A. CONSTITUTIONAL ISSUES:
1. Applicability of Municipality/County Mandates Provision:
Not applicable. The bill does not appear to affect county or municipal governments.
2. Other:
None.
B. RULE-MAKING AUTHORITY:
The bill requires DIFS to adopt rules to administer the statutory sections regarding investigation of
fraudulent insurance acts and fire or explosion claims or crimes, but the bill provides DIFS with the
authority necessary to adopt these rules.
C. DRAFTING ISSUES OR OTHER COMMENTS:
None.
IV. AMENDMENTS/COMMITTEE SUBSTITUTE CHANGES
On January 19, 2022, the Insurance & Banking Subcommittee considered the bill, adopted a strike-all
amendment, and reported the bill favorably as a committee substitute. The strike-all amendment contained the
substance of the bill as originally filed and made the following modifications and clarifications:
Requires the DHSMV electronic credentialing system (system) to display vehicle registration and
insurance information, provide a driver with notification of any lapse in insurance coverage needed
to meet financial responsibility requirements, and allow the driver to update policy information by
the system.
Requires DHSMV to provide the Legislature with recommendations regarding electronic verification
of drivers’ compliance with financial responsibility laws.
Removed the sections of the bill that change the definition of “active” so that the current definitions
of “active” investigations by DIFS and SFM will remain unchanged.
Made various formatting and minor technical wording changes for clarity.
On February 15, 2022, the State Administration & Technology Appropriations Subcommittee adopted an
amendment and reported the bill favorably as a committee substitute for a committee substitute. The
amendment added two sections to the bill and provided funding for Fiscal Year 2022-23, as follows:
Directs DFS to transfer $1,413,270 from the Insurance Regulatory Trust Fund to the Highway
Safety Operating Trust Fund in the DHSMV.
Appropriates a nonrecurring sum of $1,413,270 from the Highway Safety Operating Trust Fund to
the Information Systems Administration budget entity in the DHSMV for the implementation of the
electronic insurance verification provisions of s. 324.252, F.S.
The analysis is drafted to the committee substitute as passed by the State Administration & Technology
Appropriations Subcommittee.
STORAGE NAME: h0749d.COM PAGE: 6
DATE: 2/21/2022
F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
CS/CS/HB 749 2022
1 A bill to be entitled
2 An act relating to fraud prevention; creating s.
3 324.252, F.S.; requiring that the electronic
4 credentialing system display certain vehicle
5 information, provide certain notification for a
6 specified purpose, and allow drivers to update certain
7 information by a specified date; requiring the
8 Department of Highway Safety and Motor Vehicles to
9 provide the Legislature with recommendations for
10 compliance verification with certain financial
11 responsibility requirements by a specified date;
12 amending s. 501.165, F.S.; requiring sellers to allow
13 consumers to cancel in a specified manner and by
14 specified means service contracts that have automatic
15 renewal provisions; amending s. 626.854, F.S.;
16 revising maximum fines for public adjusters and public
17 adjuster apprentices for certain violations under a
18 specified circumstance; revising maximum fines for
19 certain violations by certain persons under a
20 specified circumstance; amending s. 626.989, F.S.;
21 authorizing the Department of Financial Services to
22 impose an administrative fine on insurers under
23 certain circumstances; authorizing the Division of
24 Investigative and Forensic Services to adopt certain
25 rules; amending s. 633.126, F.S.; authorizing the
Page 1 of 13
CODING: Words stricken are deletions; words underlined are additions.
hb0749-02-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 749 2022
26 department to impose an administrative fine on
27 insurance companies under certain circumstances;
28 deleting criminal penalties; authorizing the division
29 to adopt certain rules; amending s. 634.095, F.S.;
30 revising requirements for advertisements issued or
31 caused to be issued by service agreement companies or
32 salespersons; amending s. 775.15, F.S.; revising
33 felony violations for which prosecutions must be
34 commenced within a specified timeframe; amending s.
35 817.234, F.S.; providing that certain insurers are
36 entitled to recover specified expenses at the trial
37 and appellate courts under certain circumstances;
38 providing a transfer of funds; providing an
39 appropriation; providing effective dates.
40
41 Be It Enacted by the Legislature of the State of Florida:
42
43 Section 1. Section 324.252, Florida Statutes, is created
44 to read:
45 324.252 Electronic insurance verification.—
46 (1) In order to empower drivers in this state and reduce
47 the incidence of automobile insurance fraud within this state,
48 by July 1, 2023, the electronic credentialing system, as defined
49 in s. 322.032(1), must display driver vehicle registration and
50 insurance information, provide a driver with notification of any
Page 2 of 13
CODING: Words stricken are deletions; words underlined are additions.
hb0749-02-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 749 2022
51 lapse in his or her insurance coverage needed for compl iance
52 with the financial responsibility requirements of this chapter,
53 and allow the driver to update his or her policy information via
54 the system.
55 (2) By October 1, 2023, the department shall provide the
56 Legislature with recommendations on the means by which the
57 department, law enforcement agencies, and other entities
58 authorized by the department may electronically verify a
59 driver's compliance with the financial responsibility
60 requirements of this chapter.
61 Section 2. Subsection (2) of section 501.165, Florida
62 Statutes, is amended to read:
63 501.165 Automatic renewal of service contracts.—
64 (2) SERVICE CONTRACTS WITH AUTOMATIC RENEWAL PROVISIONS.—
65 (a) A Any seller that sells, leases, or offers to sell or
66 lease any service to a consumer pursuant to a service contract
67 that has an automatic renewal provision, unless the consumer
68 cancels that contract, shall disclose the automatic renewal
69 provision clearly and conspicuously in the contract or contract
70 offer.
71 (b) A Any seller that sells or offers to sell any service
72 to a consumer pursuant to a service contract the term of which
73 is a specified period of 12 months or more and that
74 automatically renews for a specified period of more than 1
75 month, unless the consumer cancels the contract, shall provide
Page 3 of 13
CODING: Words stricken are deletions; words underlined are additions.
hb0749-02-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 749 2022
76 the consumer with written or electronic notification of the
77 automatic renewal provision. Notification shall be provided to
78 the consumer no less than 30 days or no more than 60 days before
79 the cancellation deadline pursuant to the automatic renewal
80 provision. Such notification shall disclose clearly and
81 conspicuously:
82 1. That unless the consumer cancels the contract the
83 contract will automatically renew.
84 2. Methods by which the consumer may obtain details of the
85 automatic renewal provision and cancellation procedure, whether
86 by contacting the seller at a specified telephone number or
87 address, by referring to the contract, or by any other method.
88 (c) A seller that fails to comply with the requirements of
89 this subsection violates is in violation of this subsection
90 unless the seller demonstrates that:
91 1. As part of the seller's routine business practice, the
92 seller has established and implemented written procedures to
93 comply with this section and enforces compliance with the
94 procedures;
95 2. Any failure to comply with this subsection is the
96 result of error; and
97 3. As part of the seller's routine business practice,
98 where an error has caused the failure to comply with this
99 subsection, the unearned portion of the contract subject to the
100 automatic renewal provision is refunded as of the date on which
Page 4 of 13
CODING: Words stricken are deletions; words underlined are additions.
hb0749-02-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 749 2022
101 the seller is notified of the error.
102 (d) A seller shall allow a consumer to cancel a service
103 contract that has an automatic renewal provision in the same
104 manner, and by the same means, as the service contract was
105 entered into.
106 (e) This subsection does not apply to:
107 1. A financial institution as defined in s. 655.005 or any
108 depository institution as defined in 12 U.S.C. s. 1813(c)(2).
109 2. A foreign bank maintaining a branch or agency licensed
110 under the laws of any state of the United States.
111 3. Any subsidiary or affiliate of an entity described in
112 subparagraph 1. or subparagraph 2.
113 4. A health studio as defined in s. 501.0125.
114 5. Any entity licensed under chapter 624, chapter 627,
115 chapter 634, chapter 636, or chapter 641.
116 6. Any electric utility as defined in s. 366.02.
117 7. Any private company as defined in s. 180.05 providing
118 services described in chapter 180 which is competing against a
119 governmental entity or has a governmental entity providing
120 billing services on its behalf.
121 (f)(e) A violation of this subsection renders the
122 automatic renewal provision void and unenforceable.
123 Section 3. Paragraphs (b) and (c) of subsection (22) of
124 section 626.854, Florida Statutes, are amended, and paragraph
125 (a) of that subsection is republished, to read:
Page 5 of 13
CODING: Words stricken are deletions; words underlined are additions.
hb0749-02-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 749 2022
126 626.854 "Public adjuster" defined; prohibitions.—The
127 Legislature finds that it is necessary for the protection of the
128 public to regulate public insurance adjusters and to prevent the
129 unauthorized practice of law.
130 (22)(a) Any following act by a public adjuster, a public
131 adjuster apprentice, or a person acting on behalf of a public
132 adjuster or public adjuster apprentice is prohibited and shall
133 result in discipline as applicable under this part:
134 1. Offering to a residential property owner a rebate,
135 gift, gift card, cash, coupon, waiver of any insurance
136 deductible, or any other thing of value in exchange for:
137 a. Allowing a contractor, a public adjuster, a public
138 adjuster apprentice, or a person acting on behalf of a public
139 adjuster or public adjuster apprentice to conduct an inspection
140 of the residential property owner's roof; or
141 b. Making an insurance claim for damage to the residential
142 property owner's roof.
143 2. Offering, delivering, receiving, or accepting any
144 compensation, inducement, or reward for the referral of any
145 services for which property insurance proceeds would be used for
146 roofing repairs or replacement.
147 (b) Notwithstanding the fine set forth in s. 626.8698, a
148 public adjuster or public adjuster apprentice may be subject to
149 a fine not to exceed $10,000 per act for a violation of this
150 subsection and a fine not to exceed $20,000 per act for a
Page 6 of 13
CODING: Words stricken are deletions; words underlined are additions.
hb0749-02-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 749 2022
151 violation of this subsection that occurs during a state of
152 emergency declared by executive order or proclamation of the
153 Governor pursuant to s. 252.36.
154 (c) A person who engages in an act prohibited by this
155 subsection and who is not a public adjuster or a public adjuster
156 apprentice, or is not otherwise exempt from licensure, is guilty
157 of the unlicensed practice of public adjusting and may be:
158 1. Subject to all applicable penalties set forth in this
159 part.
160 2. Notwithstanding subparagraph 1., subject to a fine not
161 to exceed $10,000 per act for a violation of this subsection and
162 a fine not to exceed $20,000 per act for a violation of this
163 subsection that occurs during a state of emergency declared by
164 executive order or proclamation of the Governor pursuant to s.
165 252.36.
166 Section 4. Present subsections (7), (8), and (9) of
167 section 626.989, Florida Statutes, are redesignated as
168 subsections (9), (10), and (11), respectively, new subsections
169 (7) and (8) and subsection (12) are added to that section, and
170 subsection (6) of that section is amended, to read:
171 626.989 Investigation by department or Division of
172 Investigative and Forensic Services; compliance; immunity;
173 confidential information; reports to division; division
174 investigator's power of arrest.—
175 (6) Any person, other than an insurer, agent, or other
Page 7 of 13
CODING: Words stricken are deletions; words underlined are additions.
hb0749-02-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 749 2022
176 person licensed under the code, or an employee thereof, having
177 knowledge or who believes that a fraudulent insurance act or any
178 other act or practice which, upon conviction, constitutes a
179 felony or a misdemeanor under the code, or under s. 817.234, is
180 being or has been committed may send to the Division of
181 Investigative and Forensic Services a report or information
182 pertinent to such knowledge or belief and such additional
183 information relative thereto as the department may request. Any
184 professional practitioner licensed or regulated by the
185 Department of Business and Professional Regulation, except as
186 otherwise provided by law, any medical review committee as
187 defined in s. 766.101, any private medical review committee, and
188 any insurer, agent, or other person licensed under the code, or
189 an employee thereof, having knowledge or who believes that a
190 fraudulent insurance act or any other act or practice which,
191 upon conviction, constitutes a felony or a misdemeanor under the
192 code, or under s. 817.234, is being or has been committed shall
193 send to the Division of Investigative and Forensic Services a
194 report or information pertinent to such knowledge or belief and
195 such additional information relative thereto as the department
196 may require.
197 (7) If an insurer fails or otherwise refuses to comply
198 with this section, the department may impose an administrative
199 fine of not more than $2,000 per day for such failure until the
200 department deems the insurer to be in compliance.
Page 8 of 13
CODING: Words stricken are deletions; words underlined are additions.
hb0749-02-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 749 2022
201 (8) The Division of Investigative and Forensic Services
202 shall review such information or reports and select such
203 information or reports as, in its judgment, may require further
204 investigation. It shall then cause an independent examination of
205 the facts surrounding such information or report to be made to
206 determine the extent, if any, to which a fraudulent insurance
207 act or any other act or practice which, upon conviction,
208 constitutes a felony or a misdemeanor under the code, or under
209 s. 817.234, is being committed. The Division of Investigative
210 and Forensic Services shall report any alleged violatio ns of law
211 which its investigations disclose to the appropriate licensing
212 agency and state attorney or other prosecuting agency having
213 jurisdiction with respect to any such violation, as provided in
214 s. 624.310. If prosecution by the state attorney or other
215 prosecuting agency having jurisdiction with respect to such
216 violation is not begun within 60 days of the division's report,
217 the state attorney or other prosecuting agency having
218 jurisdiction with respect to such violation shall inform the
219 division of the reasons for the lack of prosecution.
220 (12) The Division of Investigative and Forensic Services
221 may adopt reasonable rules as are necessary to administer this
222 section. Such rules must meet all of the following requirements:
223 (a) They may not enlarge upon or extend the provisions of
224 this section.
225 (b) They must identify specific factors that determine the
Page 9 of 13
CODING: Words stricken are deletions; words underlined are additions.
hb0749-02-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 749 2022
226 grades of penalty.
227 (c) They must specify mitigating and aggravating factors
228 for a violation of this section.
229 Section 5. Subsection (9) of section 633.126, Florida
230 Statutes, is amended, subsection (10) is added to that section,
231 and subsection (2) of that section is republished, to read:
232 633.126 Investigation of fraudulent insurance claims and
233 crimes; immunity of insurance companies supplying information.—
234 (2) If an insurance company has reason to suspect that a
235 fire or explosion loss to its insured's real or personal
236 property was caused by intentional means, the company shall
237 notify the State Fire Marshal and shall furnish her or him with
238 all material acquired by the company during its investigation.
239 The State Fire Marshal may adopt rules to implement this
240 subsection.
241 (9) If an insurance company fails or otherwise refuses to
242 comply with this section, the department may impose an
243 administrative fine of not more than $2,000 per day for such
244 failure until the department deems the insurance company to be
245 in compliance A person who willfully violates this section
246 commits a misdemeanor of the first degree, punishable as
247 provided in s. 775.082 or s. 775.083.
248 (10) The Division of Investigative and Forensic Services
249 may adopt reasonable rules as are necessary to administer this
250 section. Such rules must meet all of the following requirements:
Page 10 of 13
CODING: Words stricken are deletions; words underlined are additions.
hb0749-02-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 749 2022
251 (a) They may not enlarge upon or extend the provisions of
252 this section.
253 (b) They must identify specific factors that determine the
254 grades of penalty.
255 (c) They must specify mitigating and aggravating factors
256 for a violation of this section.
257 Section 6. Effective January 1, 2023, present paragraphs
258 (b), (c), and (d) of subsection (3) of section 634.095, Florida
259 Statutes, are redesignated as paragraphs (d), (e), and (f),
260 respectively, new paragraphs (b) and (c) are added to that
261 subsection, and paragraph (a) of that subsection is amen ded, to
262 read:
263 634.095 Prohibited acts.—Any service agreement company or
264 salesperson that engages in one or more of the following acts
265 is, in addition to any applicable denial, suspension,
266 revocation, or refusal to renew or continue any appointment or
267 license, guilty of a misdemeanor of the second degree,
268 punishable as provided in s. 775.082 or s. 775.083:
269 (3) Issuing or causing to be issued any advertisement that
270 which:
271 (a) Does not fully disclose in a written advertisement, in
272 at least 12-point, boldfaced type, the name, address, and
273 Florida Company Code license number of the service agreement
274 company.
275 (b) Does not fully disclose in a radio or television
Page 11 of 13
CODING: Words stricken are deletions; words underlined are additions.
hb0749-02-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 749 2022
276 advertisement the full legal name of the licensed salesperson or
277 the service agreement company.
278 (c) Does not fully identify the soliciting licensed
279 salesperson's full legal name and license number when the
280 salesperson begins, and the soliciting salesperson's telephone
281 number when the salesperson concludes, each outbound telephone
282 solicitation. For the purposes of this paragraph, the actual
283 telephone number of the salesperson may be the number on file
284 with the department or the number at which the salesperson may
285 be contacted.
286 Section 7. Subsection (11) of section 775.15, Florid a
287 Statutes, is amended to read:
288 775.15 Time limitations; general time limitations;
289 exceptions.—
290 (11) A prosecution for a felony violation of s. 440.105 or
291 s. 817.234 ss. 440.105 and 817.234 must be commenced within 5
292 years after the violation is committed.
293 Section 8. Subsection (5) of section 817.234, Florida
294 Statutes, is amended to read:
295 817.234 False and fraudulent insurance claims.—
296 (5)(a) Any insurer damaged as a result of a violation of
297 any provision of this section when there has been a criminal
298 adjudication of guilt shall have a cause of action to recover
299 compensatory damages, plus all reasonable investigation and
300 litigation expenses, including attorney attorneys' fees, at the
Page 12 of 13
CODING: Words stricken are deletions; words underlined are additions.
hb0749-02-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 749 2022
301 trial and appellate courts.
302 (b) If an insurer damaged as a result of a violation of
303 any provision of this section has reported the possible
304 fraudulent insurance act to the Division of Investigative and
305 Forensic Services pursuant to s. 626.9891 and if there has been
306 a criminal adjudication of guilt, the insurer is en titled to
307 recover reasonable investigation and litigation expenses,
308 including attorney fees, at the trial and appellate courts.
309 Section 9. The nonrecurring sum of $1,413,270 for Fiscal
310 Year 2022-2023 shall be transferred by nonoperating budget
311 authority from the Insurance Regulatory Trust Fund of the
312 Department of Financial Services to the Highway Safety Operating
313 Trust Fund of the Department of Highway Safety and Motor
314 Vehicles to implement the electronic insurance verification
315 provisions of s. 324.252, Florida Statutes.
316 Section 10. For the 2022-2023 fiscal year, the
317 nonrecurring sum of $1,413,270 from the Highway Safety Operating
318 Trust Fund is appropriated to the Information Systems
319 Administration budget entity in the Department of Highway Safety
320 and Motor Vehicles to implement the electronic insurance
321 verification provisions required under s. 324.252, Florida
322 Statutes.
323 Section 11. Except as otherwise expressly provided in this
324 act, this act shall take effect upon becoming a law.
Page 13 of 13
CODING: Words stricken are deletions; words underlined are additions.
hb0749-02-c2
COMMERCE COMMITTEE
CS/CS/HB 749 by Rep. Clemons
Fraud Prevention
AMENDMENT SUMMARY
February 23, 2022
Amendment 1 by Clemons (line 102): clarifies a consumer’s right to cancel a service contract
with an automatic renewal provision in the same manner and the same means the consumer
entered the contract.
Amendment 2 by Clemons (line 166): removes the section of the bill that allows the
Department of Financial Services (DFS) to fine an insurer up to $2,000 per day for failure to
comply with the statute regarding investigation of insurance fraud by the DFS Division of
Investigative and Forensic Services.
Amendment 3 by Clemons (line 257): changes the effective date for new provisions regarding
solicitation by service agreement companies and sales people from January 1, 2023, to March
1, 2023.
COMMITTEE/SUBCOMMITTEE AMENDMENT
Bill No. CS/CS/HB 749 (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 Clemons offered the following:
3
4 Amendment
5 Remove lines 102-105 and insert:
6 (d) A seller who enters into or renews any service contract
7 with a consumer which includes an automatic renewal provision
8 must allow the consumer to cancel the service contract in the
9 same manner, and by the same means, as the consumer manifested
10 his or her acceptance of the service contract.
120805 - h0749-line 102.docx
Published On: 2/22/2022 9:16:06 PM
Page 1 of 1
COMMITTEE/SUBCOMMITTEE AMENDMENT
Bill No. CS/CS/HB 749 (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 Clemons offered the following:
3
4 Amendment (with title amendment)
5 Remove lines 166-228
6
7
8 -----------------------------------------------------
9 T I T L E A M E N D M E N T
10 Remove lines 20-25 and insert:
11 specified circumstance; amending s. 633.126, F.S.; authorizing
12 the
435673 - h0749-line 166.docx
Published On: 2/22/2022 9:16:56 PM
Page 1 of 1
COMMITTEE/SUBCOMMITTEE AMENDMENT
Bill No. CS/CS/HB 749 (2022)
Amendment No. 3
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 Clemons offered the following:
3
4 Amendment
5 Remove line 257 and insert:
6 Section 6. Effective March 1, 2023, present paragraphs
7
464227 - h0749-line 257.docx
Published On: 2/22/2022 9:17:31 PM
Page 1 of 1
CS/CS/HB 763
HOUSE OF REPRESENTATIVES STAFF ANALYSIS
BILL #: CS/CS/HB 763 Tax Exemption for Charges for Private Investigations
SPONSOR(S): Ways & Means Committee, Regulatory Reform Subcommittee, Casello and others
TIED BILLS: IDEN./SIM. BILLS: CS/SB 1146
REFERENCE ACTION ANALYST STAFF DIRECTOR or
BUDGET/POLICY CHIEF
1) Regulatory Reform Subcommittee 17 Y, 0 N, As CS Thompson Anstead
2) Ways & Means Committee 15 Y, 0 N, As CS Berg Aldridge
3) Commerce Committee Thompson Hamon
SUMMARY ANALYSIS
Florida levies a six percent sales and use tax on the sale or rental of most tangible personal property,
admissions, transient rentals, and a limited number of services. Chapter 212, F.S., contains provisions
authorizing the levy and collection of Florida’s sales and use tax, as well as the exemptions and credits
applicable to certain items or uses under specified circumstances. Sales tax is added to the price of the taxable
good or service and collected from the purchaser at the time of sale.
The state of Florida does not usually collect sales tax from the vast majority of services performed. Currently,
charges for detective, burglar protection, and other protection services listed under the North American
Industry Classification System (NAICS), including investigative services, security guards and patrol services,
armored car services, and security systems services, except locksmiths, are subject to the 6 percent sales and
use tax.
The bill exempts charges for private investigative services provided by a small private investigative agency
from the sales and use tax.
The bill defines the term "small private investigative agency" as a licensed private investigator that employs
three or fewer employees and reported less than $150,000 in taxable sales during the preceding calendar year
for providing private investigative services.
The bill provides emergency rulemaking authority for the Department of Revenue.
The Revenue Estimating Conference (REC) estimated that the bill as filed would have a negative cash and
recurring impact on General Revenue of $0.3 million in FY 2022-23, and a negative cash and recurring impact
on local government revenues of $0.1 million in FY 2022-23. The REC has not reviewed the bill as amended;
however, staff estimates that the amended bill may have a larger negative revenue impact due to additional
entities that would qualify for the exemption.
The effective date of the bill is July 1, 2022.
This docum ent does not reflect the intent or official position of the bill sponsor or House of Representatives .
STORAGE NAME: h0763d.COM
DATE: 2/21/2022
FULL ANALYSIS
I. SUBSTANTIVE ANALYSIS
A. EFFECT OF PROPOSED CHANGES:
Background
Florida Sales and Use Tax
Florida levies a six percent sales and use tax on the sale or rental of most tangible personal property, 1
admissions,2 transient rentals,3 and a limited number of services. Chapter 212, F.S., authorizes the levy
and collection of Florida’s sales and use tax and provides the exemptions and credits applicable to
certain items or uses under specified circumstances. Sales tax is added to the price of the taxable good
or service and collected from the purchaser at the time of sale.4
The state of Florida does not usually collect sales tax from the vast majority of services performed. An
example of taxed services would be investigative and crime protection services, interior nonresidential
cleaning services, nonresidential pest control services, or a service which includes repairing or creating
a product. This means that a yoga instructor would not be required to collect sales tax, while a janitor or
private investigator may be required to collect sales tax.
Counties are authorized to impose local discretionary sales surtaxes in addition to the state sales tax. 5
A surtax applies to “all transactions occurring in the county which transactions are subject to the state
tax imposed on sales, use, services, rentals, admissions, and other transactions by [ch. 212, F.S.], and
communications services as defined in ch. 202, F.S.”6 The discretionary sales surtax is based on the
tax rate imposed by the county where the taxable goods or services are sold or delivered. Discretionary
sales surtax rates currently being levied vary by county in a range of 0.5 to 1.5 percent.7
Currently, charges for detective, burglar protection, and other protection services listed under the North
American Industry Classification System (NAICS) National Numbers 561611 (investigative services),
561612 (security guards and patrol services), 561613 (armored car services), and 561621 (security
systems services, except locksmiths) are subject to the 6 percent sales and use tax. 8 Fingerprint
services required under s. 790.06, F.S., or s. 790.062, F.S., are not subject to the tax.
Law enforcement9 and public safety services are not subject to tax irrespective of whether the duty is
characterized as “extra duty,” “off-duty,” or “secondary employment,” and irrespective of whether the
officer is paid directly or through the officer’s agency by an outside source.
Charges for detective, burglar protection, and other protection security services performed in this state
but used outside this state are exempt from taxation. Charges for detective, burglar protection, and
other protection security services performed outside this state and used in this state are subject to
tax.10
1 S. 212.05(1)(a)1.a., F.S.
2 S. 212.04(1)(b), F.S.
3 S. 212.03(1)(a), F.S.
4 S. 212.07(2), F.S.
5 S. 212.055, F.S.
6 Section 212.054(2)(a), F.S.
7 Office of Economic and Demographic Research, Florida Tax Handbook, 227-228 (2021),
http://edr.state.fl.us/Content/revenues/reports/tax-handbook/taxhandbook2021.pdf (last visited Feb. 02, 2022).
8 S. 212.05(1)(i)1., F.S.
9 S. 943.10(1), F.S., defines “law enforcement officer” as any person who is elected, appointed, or employed full time by any
municipality or the state or any political subdivision thereof; who is vested with authority to bear arms and make arrests; a nd whose
primary responsibility is the prevention and detection of crime or the enforcement of the penal, criminal, traffic, or highway laws of
the state.
10 S. 212.05(1)(i)3., F.S.
STORAGE NAME: h0763d.COM PAGE: 2
DATE: 2/21/2022
Private Investigative Services
The Division of Licensing within the Department of Agriculture and Consumer Services (DACS)
oversees the regulation of licensing of private investigative services. 11 As of December 31, 2021, the
Division has issued 2,627 private investigative agency licenses and 6,992 private investigator
licenses.12
A “private investigator” is defined as any individual who, for consideration, advertises as providing or
performs private investigations.13 A “private investigative agency” means any person who, for
consideration, advertises as providing or is engaged in the business of furnishing privation
investigations.14 “Private investigation” is defined as an investigation to obtain information on any of the
following matters:
Crime or wrongs done or threatened against the United States or any state or territory of the
United States, when operating under express written authority of the governmental official
responsible for authorizing such investigation.
The identity, habits, conduct, movements, whereabouts, affiliations, associations, transactions,
reputation, or character of any society, person, or group of persons.
The credibility of witnesses or other persons.
The whereabouts of missing persons, owners of unclaimed property or escheated property, or
heirs to estates.
The location or recovery of lost or stolen property.
The causes and origin of, or responsibility for, fires, libels, slanders, losses, accidents, damage,
or injuries to real or personal property.
The business of securing evidence to be used before investigating committees or boards of
award or arbitration or in the trial of civil or criminal cases and the preparation thereof. 15
Applicants for licensure as a private investigator must complete and submit an application to DACS and
meet certain requirements. 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; and
Submit an application with certain identifying information; 16 and
Complete 40 hours of required training and submit proof thereof to DACS. 17
Any person, firm, company, partnership, or corporation which engages in business as a private
investigative agency shall have a Class “A” license. 18 To become a private investigator in Florida, a
Class “C” Private Investigator license is required.19 An applicant for the Class "C" Private Investigator
license must have two years of lawfully gained, verifiable, full-time experience to qualify for the
11 Ch. 493, F.S.
12 Department of Agriculture and Consumer Services, Division of Licensing Statistical Reports (as of December 31, 2021), available
at https://www.fdacs.gov/Divisions -Offices/Licensing/Statistical-Reports (last visited Jan. 28, 2022).
13 Section 493.6101(16), F.S.
14 Section 493.6101(15), F.S.
15 Section 493.6101(17), F.S.
16 S. 493.6105, F.S.
17 S. 493.6303(4)(a), F.S.
18 S. 493.6201(1), F.S.
19 S. 493.6201(5), F.S.
STORAGE NAME: h0763d.COM PAGE: 3
DATE: 2/21/2022
license.20 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 “C” Private Investigator license. 21
Effect of the Bill
The bill exempts charges for investigative services provided by a “small private investigative agency”
from the sales and use tax.
The bill defines the term "small private investigative agency" as:
A private investigator licensed as under s. 493.6201, F.S., that:
Employs three or fewer full-time or part-time employees, including those performing
services pursuant to an employment leasing arrangement as defined in s. 468.520(4),
F.S., and
Reported less than $150,000 in taxable sales during the preceding calendar year for
providing private investigative services for all businesses related through common
ownership.
The bill grants emergency rulemaking authority to the Department of Revenue.
The bill takes effect July 1, 2022.
B. SECTION DIRECTORY:
Section 1: Amends s. 212.08, F.S., to exempt private investigative services provided by a small
private investigative agency.
Section 2: Provides an effective date.
II. FISCAL ANALYSIS & ECONOMIC IMPACT STATEMENT
A. FISCAL IMPACT ON STATE GOVERNMENT:
1. Revenues:
The Revenue Estimating conference estimated that the bill will have a negative cash and recurring
impact on General Revenue of $0.3 million in FY 2022-23.22 The REC has not reviewed the bill as
amended; however, staff estimates that the amended bill may have a larger negative revenue
impact due to additional entities that would qualify for the exemption.
2. Expenditures:
None.
20 S. 493.6203, F.S.
21 S. 493.6115(2), F.S.
22 2022 Regular Session Revenue Estimating Conference, Impact Conference Results (Jan. 07, 2022), ps. 173-175,
http://edr.state.fl.us/content/conferences/revenueimpact/archives/2022/_pdf/Impact0107.pdf (last visited Feb. 02, 2022).
STORAGE NAME: h0763d.COM PAGE: 4
DATE: 2/21/2022
B. FISCAL IMPACT ON LOCAL GOVERNMENTS:
1. Revenues:
The Revenue Estimating conference estimated that the bill as filed would have a negative cash and
recurring impact on local government revenues of $0.1 million in FY 2022-23.23 The REC has not
reviewed the bill as amended; however, staff estimates that the amended bill may have a larger
negative revenue impact due to additional entities that would qualify for the exemption.
2. Expenditures:
None.
C. DIRECT ECONOMIC IMPACT ON PRIVATE SECTOR:
Charges for private investigations provided by small private investigative agencies will be exempt from
sales tax.
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 Department of Revenue is granted emergency rulemaking authority.
C. DRAFTING ISSUES OR OTHER COMMENTS:
None.
23 Id.
STORAGE NAME: h0763d.COM PAGE: 5
DATE: 2/21/2022
IV. AMENDMENTS/COMMITTEE SUBSTITUTE CHANGES
On Tuesday, February 8, 2022, the Regulatory Reform Subcommittee adopted one amendment and
reported the bill favorably as a committee substitute. The committee substitute:
Clarified that the sales tax exemption applies to “private investigative agencies.”
Applied the $50,000 compensation threshold to each of the three or fewer employees, instead
of to the business as a whole, and specifies that it must be “taxable” compensation.
On Thursday, February 17, 2022, the Ways & Means Committee adopted a strike-all amendment and
reported the bill favorable as a committee substitute. The committee substitute:
Revised the location of the exemption, from s. 212.05 to s. 212.08.
Clarified that the definition of “small private investigative agency” was limited to agencies with a
total of less than $150,000 in taxable services in the prior calendar year.
Provided emergency rulemaking authority to the Department of Revenue.
The analysis is drafted to the committee substitute as passed by the Ways & Means Committee.
STORAGE NAME: h0763d.COM PAGE: 6
DATE: 2/21/2022
F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
CS/CS/HB 763 2022
1 A bill to be entitled
2 An act relating to tax exemption for charges for
3 private investigations; amending s. 212.08, F.S.;
4 defining the term "small private investigative
5 agency"; providing an exemption from the state tax on
6 sales, use, and other transactions for investigative
7 services provided by a small private investigative
8 agency; authorizing the Department of Revenue to adopt
9 emergency rules to implement the act; providing
10 effective dates.
11
12 Be It Enacted by the Legislature of the State of Florida:
13
14 Section 1. Paragraph (ppp) is added to subsection (7) of
15 section 212.08, Florida Statutes, to read:
16 212.08 Sales, rental, use, consumption, distribution, and
17 storage tax; specified exemptions.—The sale at retail, the
18 rental, the use, the consumption, the distribution, and the
19 storage to be used or consumed in this state of the following
20 are hereby specifically exempt from the tax imposed by this
21 chapter.
22 (7) MISCELLANEOUS EXEMPTIONS.—Exemptions provided to any
23 entity by this chapter do not inure to any transaction that is
24 otherwise taxable under this chapter when payment is made by a
25 representative or employee of the entity by any means,
Page 1 of 3
CODING: Words stricken are deletions; words underlined are additions.
hb0763-02-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 763 2022
26 including, but not limited to, cash, check, or credit card, even
27 when that representative or employee is subsequently reimbursed
28 by the entity. In addition, exemptions provided to any entity by
29 this subsection do not inure to any transaction that is
30 otherwise taxable under this chapter unless the entity has
31 obtained a sales tax exemption certificate from the department
32 or the entity obtains or provides other documentation as
33 required by the department. Eligible purchases or leases made
34 with such a certificate must be in strict compliance with this
35 subsection and departmental rules, and any person who makes an
36 exempt purchase with a certificate that is not in strict
37 compliance with this subsection and the rules is liable for and
38 shall pay the tax. The department may adopt rules to administer
39 this subsection.
40 (ppp) Small private investigative agencies.—
41 1. As used in this paragraph, the term "small private
42 investigative agency" means a private investigator licensed
43 under s. 493.6201 which:
44 a. Employs three or fewer full-time or part-time
45 employees, including those performing services pursuant to an
46 employee leasing arrangement as defined in s. 468.520(4), in
47 total; and
48 b. Reported less than $150,000 in taxable sales during the
49 previous calendar year for providing private investigative
50 services as defined in s. 493.6101(17) for all its businesses
Page 2 of 3
CODING: Words stricken are deletions; words underlined are additions.
hb0763-02-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 763 2022
51 related through common ownership.
52 2. The sale of investigative services by a small private
53 investigative agency to a client is exempt from the tax imposed
54 by this chapter.
55 Section 2. (1) The Department of Revenue may, and all
56 conditions are deemed met to, adopt emergency rules pursuant to
57 s. 120.54(4), Florida Statutes, for the purpose of implementing
58 the amendment made by this act to s. 212.08, Florida Statutes.
59 (2) Notwithstanding any other law, emergency rules adopted
60 pursuant to this subsection are effective for 6 months after
61 adoption and may be renewed during the pendency of procedures to
62 adopt permanent rules addressing the subject of the emergency
63 rules.
64 (3) This section shall take effect upon this act becoming
65 a law and expires January 1, 2026.
66 Section 3. Except as otherwise expressly provided in this
67 act and except for this section, which shall take effect upon
68 this act becoming a law, this act shall take effect July 1,
69 2022.
Page 3 of 3
CODING: Words stricken are deletions; words underlined are additions.
hb0763-02-c2
CS/HB 785
HOUSE OF REPRESENTATIVES STAFF ANALYSIS
BILL #: CS/HB 785 Two-way Radio Communication Enhancement Systems
SPONSOR(S): Insurance & Banking Subcommittee, Botana
TIED BILLS: IDEN./SIM. BILLS: CS/SB 1190
REFERENCE ACTION ANALYST STAFF DIRECTOR or
BUDGET/POLICY CHIEF
1) Insurance & Banking Subcommittee 14 Y, 0 N, As CS Fortenberry Luczynski
2) Commerce Committee Fortenberry Hamon
SUMMARY ANALYSIS
Chapter 633, F.S., Fire Prevention and Control, designates the Chief Financial Officer (CFO) as the State Fire
Marshal (SFM). The SFM, through the Division of the State Fire Marshal within the Department of Financial
Services (DFS), is charged with enforcing the provisions of ch. 633, F.S., and all other applicable laws relating
to fire safety. The SFM adopts by rule the Florida Fire Prevention Code (FFPC), which contains all fire safety
laws and rules that pertain to the design, construction, erection, alteration, modification, repair, and demolition
of public and private buildings, structures, and facilities and the enforcement of such fire safety laws and rules ,
and is the minimum fire prevention code deemed adopted in each municipality, county, and special district with
firesafety responsibilities. Local fire authorities (authorities having jurisdiction) set standards for radio signal
strength throughout buildings within their jurisdiction to ensure consistent fire and rescue communication
capabilities.
Two-way radio communication enhancement systems are devices installed after a building is constructed that
accept, and then amplify, radio signals used by first responders. The generally desired effect is that the radio
signal strength at ground level, where a fire rescue operation might be based, is equal to the radio signal
strength in all locations throughout the building, to ensure consistent communication. Several devices are
available to boost signal strength to meet required radio signal strength. Amendments to the FFPC, effective
January 1, 2018, provided that all new and existing buildings must maintain minimum radio signal strength at a
level determined by the authority having jurisdiction.
Section 633.202(18), F.S., enacted in 2016, provides that authorities having jurisdiction shall determine
minimum radio signal strength for fire department communications in all new and existing high-rise buildings.
The FFPC defines a high-rise building as a building where the floor of an occupiable story is greater than 75
feet above the lowest level of fire department vehicle access. Currently, existing high-rise buildings are not
required to comply with minimum radio strength for fire department communications and two-way radio
communication enhancement systems as required by the FFPC until January 1, 2025. By January 1, 2024, an
existing building that is not in compliance with the requirements for minimum radio strength for fire department
communications must apply to the local government agency having jurisdiction for an appropriate permit for the
required system installation. Such an existing building must demonstrate that the building will become
compliant with the FFPC by January 1, 2025.
The bill establishes that two-way radio communication enhancement, or equivalent systems may be used to
comply with the minimum radio signal strength requirements for fire department communications. However,
the bill also establishes that these systems are not required in apartment buildings that are 75 feet or less in
height with exterior components constructed of wood frame. The bill also establishes that evidence of wood
frame construction shall be shown by the property owner providing building permit documentation that confirms
this type of construction.
The bill has no impact on state or local government revenues or expenditures, and may have an indeterminate,
positive impact on the private sector.
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: h0785b.COM
DATE: 2/21/2022
FULL ANALYSIS
I. SUBSTANTIVE ANALYSIS
A. EFFECT OF PROPOSED CHANGES:
Background
State Fire Marshal
Chapter 633, F.S., Fire Prevention and Control, designates the Chief Financial Officer (CFO) as the
State Fire Marshal (SFM). The SFM, through the Division of the State Fire Marshal within the
Department of Financial Services (DFS), is charged with enforcing the provisions of ch. 633, F.S., and
all other applicable laws relating to fire safety.1 The SFM also has the responsibility to minimize the
loss of life and property due to fire.2 Pursuant to this authority, the SFM regulates, trains, and certifies
fire service personnel and firesafety inspectors; investigates the causes of fires; enforces arson laws;
regulates the installation of fire equipment; conducts firesafety inspections of state property; and
operates the Florida State Fire College.
Florida Fire Prevention Code
The SFM adopts by rule the Florida Fire Prevention Code (FFPC), which contains all fire safety laws
and rules that pertain to the design, construction, erection, alteration, modification, repair, and
demolition of public and private buildings, structures, and facilities and the enforcement of such fire
safety laws and rules.3 The SFM adopts a new edition of the FFPC every three years 4 and the 7th
edition of the FFPC took effect on December 31, 2020. 5 The FFPC is largely based on the National Fire
Protection Association’s (NFPA) Standard 1, Fire Prevention Code, along with the current edition of the
NFPA’s Life Safety Code, NFPA 101.6
The FFPC is the minimum fire prevention code deemed adopted in each municipality, county, and
special district with firesafety responsibilities, and applies to every building and structure throughout the
state with few exceptions.7 Municipalities, counties, and special districts with firesafety responsibilities
may supplement the FFPC with more stringent standards. 8 Local fire authorities (authorities having
jurisdiction) set standards for radio signal strength throughout buildings within their jurisdiction to
ensure consistent fire and rescue communication capabilities.
Radio Signal Strength for Fire Department Communications
The life safety of firefighters and citizens depends on reliable, functional communication tools that work
in the harshest and most hostile of environments.9 “All firefighters, professional and volunteer, operate
in extreme environments that are markedly different from those of any other radio users.”10 The radio
connects the firefighters to command and outside assistance in the most desperate of situations.11 The
focus on radio signal strength stems from difficulties firefighters experienced when attempting rescue
operations on September 11, 2001, in the World Trade Center Towers. 12 These firefighters found that in
1 S. 633.104 F.S.
2 Id.
3 Ch. 69A, F.A.C.
4 S. 633.202, F.S.
5 See Florida Fire Prevention Code (FFPC),
https://www.myfloridacfo.com/division/sfm/bfp/ floridafirepreventioncodepage.htm (last visited Jan. 28, 2022).
6 S. 633.202(2), F.S.
7 S. 633.208, F.S. and R. 69A-60.002(1), F.A.C.
8 S. 633.208(3), F.S., and 69A-60.002(2), F.A.C.
9 U.S. Fire Administration, Voice Radio Communications Guide for the Fire Service (June 2016),
https://www.usfa.fema.gov/ downloads/pdf/publications/Voice_R adio_Communications_Guide_for_the_Fire_S ervice.pdf
(last visited Jan. 28, 2022).
10 Id.
11 Id.
12 See National Fire Protection Association, Assessment of Total Evacuation Systems for Tall Buildings: Literature
Review, evacsystemstallbuildingsliteraturereviewexecsum.ashx (nfpa.org) (last visited Jan. 29, 2022).
STORAGE NAME: h0785b.COM PAGE: 2
DATE: 2/21/2022
certain areas of the buildings their radio signal degraded, making live communications difficult or
impossible.13
Two-way radio communication enhancement systems are devices installed after a building is
constructed that accept, and then amplify, radio signals used by first responders. A radio frequency site
survey may be conducted in a building to determine areas where radio signal strength drops due to
materials used in construction, such as thick walls, metal construction, underground structures, and
low-emissivity glass windows. The generally desired effect is that the radio signal strength at ground
level, where a fire rescue operation might be based, is equal to the radio signal strength in all locations
throughout the building, to ensure consistent communication. Several devices are available to boost
signal strength to meet required radio signal strength. These include bi-directional amplifiers and
networks of indoor antennae, referred to collectively as a distributed antenna system. 14
Florida Fire Code Minimum Radio Signal Strength
Amendments to the FFPC, effective January 1, 2018, provided that all new and existing buildings must
maintain minimum radio signal strength at a level determined by the authority having jurisdiction. 15
Where required by a local fire authority, two-way radio communication enhancement systems must
comply with federal standards for installation and upkeep. 16 Additionally, if a two-way radio
communication enhancement system would have a negative impact on the operations of a facility, the
local fire authority may accept an automatically activated emergency responder radio coverage system
in the alternative.17
Minimum Radio Signal Strength for High-Rise Buildings
Section 633.202(18), F.S., enacted in 2016,18 provides that authorities having jurisdiction shall
determine minimum radio signal strength for fire department communications in all new and existing
high-rise buildings. The FFPC defines a high-rise building as a building where the floor of an occupiable
story is greater than 75 feet above the lowest level of fire department vehicle access.19 Currently,
existing high-rise buildings are not required to comply with minimum radio strength for fire department
communications and two-way radio communication enhancement systems as required by the FFPC
until January 1, 2025.20 By January 1, 2024, an existing building that is not in compliance with the
requirements for minimum radio strength for fire department communications must apply to the local
government agency having jurisdiction for an appropriate permit for the required system installation.21
Such an existing building must demonstrate that the building will become compliant with the FFPC by
January 1, 2025.22
Effect of the Bill
13 Id.
14 See City of Treasure Island, Florida, Two-Way Radio Communications Enhancement Systems Requirements (Apr. 20,
2019), High-Rise Public Safety System Integrators (mytreasureisland.org) (last visited Jan. 29, 2022); see also East Lake
Tarpon Special Fire Control District, Information Bulletin: Two-Way Radio Communication Enhancement System
Requirements, Bulletin+East+Lake+Two+Way+Communications.pdf (elfr.org) (last visited Jan. 29, 2022).
15 Florida Fire Prevention Code (7th ed. 2020) s. 11.10.1, https://www.nfpa.org/codes-and-standards/all-codes-and-
standards/codes-and-standards/free-access?mode= view (last visited Jan. 29, 2022).
16 Florida Fire Prevention Code (7th ed. 2020) s. 11.10.2, https://www.nfpa.org/codes-and-standards/all-codes-and-
standards/codes-and-standards/free-access?mode= view (last visited Jan. 29, 2022).
17 Florida Fire Prevention Code (7th ed. 2020) s. 11.10.3, https://www.nfpa.org/codes-and-standards/all-codes-and-
standards/codes-and-standards/free-access?mode= view (last visited Jan. 29, 2022).
18 Ch. 2016-129, s. 27, Laws of Fla.
19 Florida Fire Prevention Code (7th ed. 2020) s. 3.3.29.6, https://www.nfpa.org/codes-and-standards/all -codes-and-
standards/codes-and-standards/free-access?mode= view (last visited Jan. 29, 2022).
20 S. 633.202(18), F.S. Under current law, the compliance dates for existing apartment buildings are the same as those for
all other high-rise buildings.
21 Id.
22 Id.
STORAGE NAME: h0785b.COM PAGE: 3
DATE: 2/21/2022
The bill establishes that two-way radio communication enhancement, or equivalent, systems may be
used to comply with the minimum radio signal strength requirements for fire department
communications. The bill also establishes that these systems are not required in apartment buildings
that are 75 feet or less in height with exterior components constructed of wood frame. The bill also
establishes that evidence of wood frame construction shall be shown by the property owner providing
building permit documentation that confirms this type of construction.
B. SECTION DIRECTORY:
Section 1. Amends s. 633.202, F.S., relating to Fire Prevention Code.
Section 2. Provides and 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 has an indeterminate, but potentially positive impact on the private sector. Certain apartment
buildings will be made exempt from putting in two-way radio systems and will save the cost associated
with putting in those systems.
D. FISCAL COMMENTS:
None.
III. COMMENTS
A. CONSTITUTIONAL ISSUES:
1. Applicability of Municipality/County Mandates Provision:
Not applicable. The bill does not appear to affect county or municipal governments.
2. Other:
None.
B. RULE-MAKING AUTHORITY:
STORAGE NAME: h0785b.COM PAGE: 4
DATE: 2/21/2022
The bill neither authorizes nor requires administrative rulemaking.
C. DRAFTING ISSUES OR OTHER COMMENTS:
While the bill states that two-way radio communication enhancement systems are not required in
buildings that are 75 feet or less in height with exterior components constructed of wood frame,
language not changed by the bill in s. 633.202(18), F.S., reads as though all existing apartment
buildings are required to comply with the communication requirements. It is suggested that a
clarification be made to the statutory language not changed by the bill to address compliance by
apartment buildings greater than 75 feet, apartment buildings less than 75 feet that are wood frame,
and apartment buildings less than 75 feet that are not wood frame.
IV. AMENDMENTS/COMMITTEE SUBSTITUTE CHANGES
On February 2, 2022, the Insurance & Banking Subcommittee Considered the bill, adopted one
amendment, and reported the bill favorably as a committee substitute. The amendment made the following
modifications to the bill:
Established that apartment buildings that are 75 feet or less in height with exterior components
constructed of wood frame are exempt from the requirement to install two-way radio communication
enhancement, or equivalent, systems.
Established that evidence of wood-frame construction shall be shown by the property owner
providing building permit documentation that confirms this type of construction.
The analysis is drafted to the committee substitute as passed by the Insurance & Banking Subcommittee.
STORAGE NAME: h0785b.COM PAGE: 5
DATE: 2/21/2022
F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
CS/HB 785 2022
1 A bill to be entitled
2 An act relating to two-way radio communication
3 enhancement systems; amending s. 633.202, F.S.;
4 authorizing the use of two-way radio communication
5 enhancement systems to comply with certain radio
6 signal strength requirements in the Florida Fire
7 Prevention Code; exempting certain apartment buildings
8 from requiring two-way radio communication enhancement
9 systems; providing an effective date.
10
11 Be It Enacted by the Legislature of the State of Florida:
12
13 Section 1. Subsection (18) of section 633.202, Florida
14 Statutes, is amended to read:
15 633.202 Florida Fire Prevention Code.—
16 (18) The authority having jurisdiction shall determine the
17 minimum radio signal strength for fire department communications
18 in all new high-rise and existing high-rise buildings. Two-way
19 radio communication enhancement systems or equivalent systems
20 may be used to comply with the minimum radio signal strength
21 requirements. However, two-way radio communication enhancement
22 systems or equivalent systems are not required in apartment
23 buildings 75 feet or less in height with the exterior components
24 constructed of wood frame. Evidence of wood frame construction
25 shall be shown by the property owner providing building permit
Page 1 of 2
CODING: Words stricken are deletions; words underlined are additions.
hb0785-01-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 785 2022
26 documentation which identifies the construction type as wood
27 frame. Existing buildings are not required to comply with
28 minimum radio strength for fire department communications and
29 two-way radio communication enhancement systems system
30 enhancement communications as required by the Florida Fire
31 Prevention Code until January 1, 2025. However, by January 1,
32 2024, an existing building that is not in compliance with the
33 requirements for minimum radio strength for fire department
34 communications must apply for an appropriate permit for the
35 required installation with the local government agency having
36 jurisdiction and must demonstrate that the building will become
37 compliant by January 1, 2025. Existing apartment buildings are
38 not required to comply until January 1, 2025. However, existing
39 apartment buildings are required to apply for the appropriate
40 permit for the required communications installation by January
41 1, 2024.
42 Section 2. This act shall take effect July 1, 2022.
Page 2 of 2
CODING: Words stricken are deletions; words underlined are additions.
hb0785-01-c1
COMMERCE COMMITTEE
CS/HB 785 by Rep. Botana
Two-way Radio Communication Enhancement Systems
AMENDMENT SUMMARY
February 23, 2022
Amendment 1 by Botana (strike-all): The strike-all amendment contains the current provisions
of the bill and makes the following modifications and clarifications:
• Clarifies that the authority having jurisdiction to determine the minimum radio signal
strength for fire department communications has jurisdiction over buildings of any height,
not just high-rise buildings.
• Establishes that apartment buildings that are 75 feet or less in height and constructed of
wood frame must also meet the following in order to be exempt from the requirement to
install two-way radio communication enhancement systems or equivalent systems:
o The building has 150 or less dwelling units; and
o All dwelling units in the building discharge to the exterior or to a corridor that
leads directly to an exit as defined in the Florida Building Code.
• Provides clarification about which buildings, other than apartment buildings 75 feet or
less in height must comply with the requirements for minimum radio signal strength.
COMMITTEE/SUBCOMMITTEE AMENDMENT
Bill No. CS/HB 785 (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 Botana offered the following:
3
4 Amendment
5 Remove everything after the enacting clause and insert:
6 Section 1. Subsection (18) of section 633.202, Florida
7 Statutes, is amended to read:
8 633.202 Florida Fire Prevention Code.—
9 (18) The authority having jurisdiction shall determine the
10 minimum radio signal strength for fire department communications
11 in all new high-rise and existing high-rise buildings. Two-way
12 radio communication enhancement systems or equivalent systems
13 may be used to comply with the minimum radio signal strength
14 requirements. However, two-way radio communication enhancement
15 systems or equivalent systems are not required in apartment
16 buildings 75 feet or less in height that are constructed using
945875 - h0785-strike.docx
Published On: 2/22/2022 9:18:58 PM
Page 1 of 2
COMMITTEE/SUBCOMMITTEE AMENDMENT
Bill No. CS/HB 785 (2022)
Amendment No. 1
17 wood framing, provided that the building has less than 150
18 dwelling units and that all dwelling units discharge to the
19 exterior or to a corridor that leads directly to an exit as
20 defined by the Florida Building Code. Evidence of wood frame
21 construction shall be shown by the owner providing building
22 permit documentation which identifies the construction type as
23 wood frame. Existing high-rise buildings, as defined by the
24 Florida Building code are not required to comply with minimum
25 radio strength for fire department communications and two-way
26 radio communication enhancement systems system enhancement
27 communications as required by the Florida Fire Prevention Code
28 until January 1, 2025. However, by January 1, 2024, an existing
29 high-rise building that is not in compliance with the
30 requirements for minimum radio strength for fire department
31 communications must apply for an appropriate permit for the
32 required installation with the local government agency having
33 jurisdiction and must demonstrate that the building will become
34 compliant by January 1, 2025. Existing high-rise apartment
35 buildings are not required to comply until January 1, 2025.
36 However, existing high-rise apartment buildings are required to
37 apply for the appropriate permit for the required communications
38 installation by January 1, 2024.
39 Section 2. This act shall take effect July 1, 2022.
945875 - h0785-strike.docx
Published On: 2/22/2022 9:18:58 PM
Page 2 of 2
CS/CS/HB 837
HOUSE OF REPRESENTATIVES STAFF ANALYSIS
BILL #: CS/CS/HB 837 Hurricane Loss Mitigation Program
SPONSOR(S): Infrastructure & Tourism Appropriations Subcommittee and Insurance & Banking
Subcommittee, Willhite
TIED BILLS: IDEN./SIM. BILLS: CS/CS/SB 578
REFERENCE ACTION ANALYST STAFF DIRECTOR or
BUDGET/POLICY CHIEF
1) Insurance & Banking Subcommittee 16 Y, 0 N, As CS Fortenberry Luczynski
2) Infrastructure & Tourism Appropriations 13 Y, 0 N, As CS Hicks Davis
Subcommittee
3) Commerce Committee Fortenberry Hamon
SUMMARY ANALYSIS
The Legislature created the Florida Hurricane Catastrophe Fund (FHCF), a tax-exempt trust fund, in 1993, in
response to problems that developed in the residential property insurance industry following a series of catastrophic
events, including Hurricane Andrew in 1992. When the Internal Revenue Service granted tax-exempt status to the
FHCF, it required a certain amount of FHCF funds be appropriated for hurricane mitigation purposes.
Since Fiscal Year 1997-1998 and annually thereafter, Florida law directs the Legislature to appropriate no less than
$10 million and no more than 35 percent of the FHCF’s investment income from the prior fiscal year for the purpose
of providing funding to state agencies, local governments, public and private educational institu tions, and nonprofit
organizations to support programs intended to:
Improve hurricane preparedness;
Reduce potential losses in the event of a hurricane;
Provide research into means to reduce such losses;
Assist the public in determining the appropriateness of upgrades to structures or in the financing of; or
Protect local infrastructure from potential hurricane damage.
In 1999, the Legislature created the Hurricane Loss Mitigation Program (HLMP). The HLMP is funded by the annual
appropriation of $10 million from the FHCF. The funds are to be used as follows:
$3 million for retrofitting public facilities for use as hurricane shelters.
$7 million for programs to improve the wind resistance of residences and mobile homes, education
concerning the Florida Building Code’s cooperative programs with local governments and the Federal
Government, and other efforts to prevent or reduce losses or reduce the cost of rebuilding after a disaster.
These funds are further directed as follows:
o $2.8 million to the Mobile Home Tie-Down Program (MHTDP);
o $700,000 to the Florida International University center for hurricane research; and
o $3.5 million to the Hurricane Loss Mitigation Program Retrofit Grant for the purpose of improving
community resiliency.
The bill establishes that funds currently appropriated for the retrofitting of hurricane shelters may also be used for
the construction of hurricane shelters. The bill transfers the Manufactured Housing and Mobile Home Mitigation and
Enhancement Program, including the MHTDP, from Tallahassee Community College to Gulf Coast State College.
This transfer includes all powers, duties, records and unspent appropriation balances of the programs. The bill
saves the HLMP from repeal by extending its expiration date to June 30, 2032.
The bill maintains the annual $10 million transfer of investment income from the FHCF to the Division of Emergency
Management to support the expenditures associated with the HLMP. This bill conforms to HB 5001, the proposed
House of Representatives General Appropriations Act for Fiscal Year 2022-2023. See Fiscal Analysis Section.
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: h0837d.COM
DATE: 2/21/2022
FULL ANALYSIS
I. SUBSTANTIVE ANALYSIS
A. EFFECT OF PROPOSED CHANGES:
Background
The Legislature created the Florida Hurricane Catastrophe Fund (FHCF), a tax-exempt trust fund, in
1993.1 The creation of the FHCF stemmed from issues that developed in the residential property
insurance market following property losses due to a series of catastrophic events, including Hurricane
Andrew in 1992.2 State action was required to correct the inability of the private insurance and
reinsurance markets to maintain sufficient capacity.3 The FHCF is intended to provide a stable and
ongoing source of reimbursement to insurers for a portion of their catastrophic hurricane losses,
creating additional insurance capacity for the state.4 The FHCF is administered by the State Board of
Administration, which is governed by a three-member Board of Trustees, comprised of the Governor,
who serves as the chair, the Chief Financial Officer, and the Attorney General. 5
The Internal Revenue Service issued a private letter ruling (PLR) 6 granting tax-exempt status to the
FHCF, which requires a certain amount of FHCF funds to be appropriated for hurricane mitigation
purposes.7 Annually since Fiscal Year 1997-1998, Florida law directs the Legislature to appropriate no
less than $10 million, but not more than 35 percent, from the investment income of the FHCF from the
prior fiscal year.8 The FHCF appropriation is for the purpose of providing funding for state agencies,
local governments, public and private educational institutions, and nonprofit organizations to support
programs intended to:
Improve hurricane preparedness;
Reduce potential losses in the event of a hurricane;
Provide research into means to reduce such losses;
Assist the public in determining the appropriateness of upgrades to structures or in the financing of
upgrades; or
Protect local infrastructure from potential hurricane damage. 9
In 1999,10 the Legislature created the Hurricane Loss Mitigation Program (HLMP) within the
Department of Community Affairs (DCA); however, the HLMP is currently located in the Division of
Emergency Management (DEM) as the DCA was dissolved. 11 The HLMP is funded by the annual
transfer of $10 million of investment income from the FHCF to the DEM, which is appropriated for the
program.
1 Chapter 93-409, Laws of Florida.
2 See s. 215.555(1)(b), F.S.
3 S. 215.555(1)(c), F.S.
4 S. 215.555(1)(e), F.S.
5 Ss. 215.555(3) and 215.44(1), F.S.
6 A “private letter ruling,” or PLR, is a written statement issued to a taxpayer that interprets and applies tax laws to the
taxpayer’s specific set of facts. A PLR is issued to establish with certainty the federal tax consequences of a particular
transaction before the transaction is consummated or before the taxpayer’s return is filed. A PLR is issued in response to
a written request submitted by a taxpayer and is binding on the IRS if the taxpayer fully and accurately described the
proposed transaction in the request and carries out the transaction as described. Internal Revenue Service, Tax Exempt
Bonds Private Letter Rulings: Some Basic Concepts, https://www.irs.gov/tax-exempt-bonds/teb-private-letter-ruling-some-
basic-concepts#:~:text=A%20private%20letter%20ruling%2C%20or,taxpayers%20or%20by%20IRS%20pers onnel . (Last
visited Jan. 21, 2022).
7 State Board of Administration of Florida, Florida Hurricane Catastrophe Fund Fiscal Year 2008-2009 Annual Report, p.
16,
https://www.sbafla.com/fhcf/Portals/FHCF/Content/Reports/Annual/20100413_SBA _CA TF_Annual_Report.pdf?ver=2016 -
06-08-121914-787 (last visited Feb. 26, 2021).
8 S. 215.555(7)(c), F.S.
9 Id.
10 Chapter 99-305, Laws of Florida.
11 S. 215.559, F.S.
STORAGE NAME: h0837d.COM PAGE: 2
DATE: 2/21/2022
Of the $10 million annually appropriated to the HLMP, $3 million is directed towards retrofitting public
facilities for use as hurricane shelters. DEM must prioritize funds for projects included in the annual
Shelter Retrofit Report and projects in regional planning council areas with shelter deficits.12
DEM’s 2020 Shelter Retrofit Report indicates that significant success has been made toward reducing
the deficit of safe13 public hurricane evacuation shelter space (shelter space). 14 The combination of
existing building surveys, retrofit projects, and the availability of retrofit and mitigation-related funds, as
well as the application of enhanced hurricane resistance design and construction standards has
increased the number of shelter spaces.15 As of 2020, there are 1,060,767 shelter spaces.16 Available
shelter spaces were projected to increase to 1,120,174 by August 2021.17
The remaining $7 million of the $10 million appropriation must be used for programs that:
o Improve the wind resistance of residences and mobile homes, through loans, subsidies, grants,
demonstration projects, and direct assistance;
o Educate persons concerning the Florida Building Code cooperative programs with local
governments and the Federal Government; and
o Prevent or reduce losses or costs of rebuilding after a disaster.18
The $7 million is allocated to three programs. Forty percent ($2.8 million) is directed to the Mobile
Home Tie-Down Program (MHTDP)19, which is administered by Tallahassee Community College
(TCC). The MHTDP is used to mitigate future losses for mobile homes and to provide tie-downs for
mobile homes in communities throughout the state.20
Over the years, the MHTDP has been reviewed and audited. In 2016, the Department of Financial
Services Bureau of Auditing (Bureau) audited the MHTDP and determined that a contractual agreement
should exist between DEM and TCC because the allocated funds are classified as “grant and aid.” 21
The Bureau recommended a written agreement that incorporates the relevant statutory requirements, a
clear scope of work, deliverables, monitoring, and financial consequences for failure to perform the
minimum level of service.22 DEM and TCC subsequently executed a written agreement for the program
that incorporated the Bureau’s recommendations, including a scope of work. 23 The program’s scope of
work requires the mobile home tie-down improvements under this program to meet or exceed the
12 S. 215.559(1)(b), F.S.
13 “‘Safe’ is defined as meeting the intent of American Red Cross (ARC) Hurricane Evacuation Shelter Selectio n
Standards (June 2018).” Florida Division of Emergency Management, 2020 State Retrofit Report (Nov. 2020),
https://portal.floridadisaster.org/shelters/External/ Current/2020%20S RR/2020%20Shelt er%20Retrofit%20Report.pdf (last
visited Jan. 21, 2022).
14 Id.
15 Id.
16 Id.
17 Id. As of the date of this analysis, a 2021 State Retrofit Report has not been published by the Division. Therefore,
confirmation of the available increase in shelter space is currently unavailable.
18 S. 215.559(1)(a), F.S.
19 S. 215.555(2)(a), F.S.
20 Florida Division of Emergency Management, Florida Hurricane Loss Mitigation Program 2020 Annual Report (Jan. 1,
2021),
https://portal.floridadisaster.org/mitigation/HLMP/Internet%20Documents/Reports/2020%20HLMP% 20Annual%20Report.
pdf (last visited Jan. 21, 2022).
21 May 10, 2016 Letter from Department of Financial Services Bureau of Auditing to Division of Emergency Management
Director Bryan Koon, https://www.myfloridacfo.com/division/aa/Aud_Act/docs/DEM%20Report%20dtd%205 -10-
2016_Redacted.pdf (last visited Jan. 21, 2022).
22 Id.
23 Id.
STORAGE NAME: h0837d.COM PAGE: 3
DATE: 2/21/2022
standards established in Rules 15C-1.0101 through 15C-1.0109, F.A.C.24 However, the program is not
intended to bring an existing mobile home up to building code standards.25
In Fiscal Year 2020-2021, nine counties (Brevard, Charlotte, Collier, Lake, Lee, Marion, Osceola,
Pinellas, and Polk) benefitted from the Mobile Home Tie-Down Program. A total of 686 manufactured or
mobile homes were retrofitted.26 Currently, the program is not accepting new applications, as the
waiting list exceeds 5 years; new applications will be accepted once the waiting list is reduced to 3
years.27
Ten percent ($700,000) of the $7 million allocation is directed to the Florida International University
(FIU) center for hurricane research.28 During Fiscal Year 2020-2021, FIU conducted research including
the following:
o Quantification of Wind Driven Rain Intrusion Through Shuttered Sliding Glass Door
Systems;
o Aerodynamic Loading of Residential Buildings Subject to Experimental Downbursts and
Hurricanes;
o Codification Wind-induced Loads on Irregular Shape Buildings Phase II;
o Development of Integrated Storm Tide and Freshwater Flooding Model Phase 4;
o Improving Individual Preparedness for Hurricanes; Lessons to be Learned from Longitudinal
Survey Data Collected from Florida; and
o Education and Outreach Programs to Convey the Benefits of Various Hurricane Loss
Mitigation Devices and Techniques.29
The remaining 50 percent ($3.5 million) of the $7 million allocation is used to fund the Hurricane Loss
Mitigation Program Retrofit Grant (Grant) for the purpose of improving community resiliency. 30 Funded
activities include inspections, retrofits, and construction or modification of building components
designed to increase a structure’s ability to withstand hurricane conditions. 31
Under this Grant, eligible applicants are nonprofit organizations, qualified for-profit organizations, and
governmental entities.32 Homeowners are not eligible, but may partner with an eligible local
government.33 In Fiscal Year 2020-2021, 13 recipients received the grant to conduct wind mitigation
retrofits to homes. These recipients included:
o Calhoun County;
o Carrabelle;
o Centro Campesino;
o City of Bradenton;
o City of Deerfield Beach;
o City of Lauderdale Lakes;
o Franklin County;
o Gulf County;
o Memorial Health;
o Miami Dade Community Action & Human Services Department;
o North Lauderdale;
24 Department of Financial Services, Original Contract - D9042 (executed Aug. 7, 2018),
https://facts.fldfs.com/Search/ContractDetail.aspx?AgencyId= 310000&ContractId= D9042 (last visited Jan. 21, 2022).
25 Tallahassee Community College, Mobile Home Tie-Down Program, https://www.tcc.fl.edu/about/college/administrative-
services/sponsored-programs/mobile-home-tie-down-program/ (last visited Jan. 21, 2022).
26 Florida Division of Emergency Management, Florida Hurricane Loss Mitigation Program 2021 Annual Report (Jan. 1,
2022). According to TCC, the number of mobile homes completed during the 2020-2021 fiscal year was significantly
impacted by COVID-19.
27 Tallahassee Community College, supra note 25.
28 S. 215.559(3), F.S.
29 Florida Division of Emergency Management, supra note 26.
30 Florida Division of Emergency Management, Hurricane Loss Mitigation Program,
https://www.floridadisaster.org/dem/mitigation/hurricane -loss-mitigation-program/ (last visited Jan. 21, 2022).
31 Id.
32 Id.
33 Id.
STORAGE NAME: h0837d.COM PAGE: 4
DATE: 2/21/2022
o Pompano Beach; and
o St. Lucie Habitat for Humanity.34
Six additional projects were funded that did not involve residential wind retrofitting, including the
following: Banyan Health, City of Edgewater, City of Flagler Beach, City of Panama City, DeSoto
County Board of County Commissioners, and West Palm Beach Housing Authority.35
Current law requires DEM, with the exception of the hurricane research program conducted by FIU, to
develop these programs in consultation with an advisory council (Council). 36 The Council also reviews
and approves FIU’s hurricane research work plan.37 The Council must consist of one representative
designated by each of the following:
Chief Financial Officer;
Florida Homebuilders Association;
Florida Insurance Council;
Federation of Manufactured Home Owners;
Florida Association of Counties; and
Florida Manufactured Housing Association.38
DEM is required to submit a full report and evaluation of these activities on January 1st each year.39 The
report must be submitted to the Speaker of the House of Representatives, the President of the Senate,
and the Majority and Minority Leaders of the House of Representatives and the Senate. 40 The Office of
Insurance Regulation (OIR) must review the report and make recommendations to the insurance
industry as deemed appropriate by the OIR.41 The recommendations may be used by insurers for
potential discounts or rebates.42
Below are the Hurricane Loss Mitigation Program Activities for Fiscal Year 2020-2021:
Hurricane Loss Mitigation Program Activities for Fiscal Year 2020-
202143
Shelter Retrofit Program $3,000,000
HLMP Retrofit Grant $3,500,000
Manufactured Homes $2,800,000
Hurricane Mitigation Research $700,000
TOTAL $10,000,000
The statute that created the HLMP, also created the Manufactured Housing and Mobile Home
Mitigation and Enhancement Program (MHMHMEP) to mitigate or enhance manufactured and mobile
homes in specified areas of the state.44 However, the MHMHMEP does not share in the $10 million
appropriated from the FHCF and is not currently funded. The MHMHMEP also references an obsolete
rate standard for mobile home insurance policies issued by Citizens Property Insurance Corporation.45
Section 215.559, F.S., relating to the HLMP is scheduled to be repealed on June 30, 2022.46
34 Florida Division of Emergency Management, supra note 26.
35 Id.
36 S. 215.559(4), F.S.
37 S. 215.559(3), F.S.
38 S. 215.559(4), F.S.
39 S. 215.559(6), F.S.
40 Id.
41 Id.
42 Id.
43 Florida Division of Emergency Management, supra note 26.
44 S. 215.559(2)(b), F.S.
45 S. 215.559(2)(b)3., F.S.
46 S. 215.559(7), F.S.
STORAGE NAME: h0837d.COM PAGE: 5
DATE: 2/21/2022
Effect of the Bill
The bill establishes that the funds currently appropriated for the retrofitting of hurricane shelters may
also be used for the construction of hurricane shelters. The bill transfers the MHMHMEP and the
MHTDP, from Tallahassee Community College to Gulf Coast State College. Effective July 1, 2022, all
powers, duties, functions, records, property, pending issues and unspent appropriations balances of the
programs are transferred from Tallahassee Community College to Gulf Coast State College.
The bill saves the HLMP from repeal by extending the expiration date of the relevant statute to June 30,
2032.
In relation to the mobile home program, the bill also removes obsolete rate standard language
regarding mobile home insurance policies issued by Citizens.
B. SECTION DIRECTORY:
Section 1. Amends s. 215.559, F.S., related to Hurricane Loss Mitigation Program.
Section 2. Provides for the transfer of powers, records and unspent funding to Gulf Coast State
College.
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:
Annually, $10 million of investment income is transferred from the FHCF to DEM and is
appropriated for the HLMP. This recurring appropriation would continue to be available for the
program until June 30, 2032, and conforms to HB 5001, the proposed House of Representatives
General Appropriations Act for Fiscal Year 2022-2023.
B. FISCAL IMPACT ON LOCAL GOVERNMENTS:
1. Revenues:
None.
2. Expenditures:
None.
C. DIRECT ECONOMIC IMPACT ON PRIVATE SECTOR:
To the extent that research and program activities conducted through the HLMP strengthen structures,
educate the public, and reduce property losses, the private sector will benefit. However, the impact is
indeterminate.
D. FISCAL COMMENTS:
STORAGE NAME: h0837d.COM PAGE: 6
DATE: 2/21/2022
Current law specifies that the Legislature must appropriate no less than $10 million, but not more than
35 percent, from the investment income of the FHCF from the prior fiscal year for hurricane mitigation
effort. Pursuant to the PLR, failure to spend FHCF funds on hurricane loss mitigation efforts could
jeopardize the tax-exempt status of the FHCF.
III. COMMENTS
A. CONSTITUTIONAL ISSUES:
1. Applicability of Municipality/County Mandates Provision:
Not applicable. The bill does not appear to affect county or municipal governments.
2. Other:
None.
B. RULE-MAKING AUTHORITY:
The bill neither authorizes nor requires administrative rulemaking.
C. DRAFTING ISSUES OR OTHER COMMENTS:
IV. AMENDMENTS/COMMITTEE SUBSTITUTE CHANGES
On February 2, 2022, the Insurance & Banking Subcommittee considered the bill, adopted a strike-all
amendment, and reported the bill favorably as a committee substitute. The amendment made the following
modifications to the bill:
Established that the funds currently appropriated for the retrofitting of hurricane shelters may also
be used for the construction of hurricane shelters.
Transferred the MHMHMEP and the MHTDP from Tallahassee Community College to Gulf Coast
State College.
On February 16, 2022, the Infrastructure & Tourism Appropriations Subcommittee considered the bill,
adopted an amendment with an adhering amendment, and reported the bill favorably as a committee
substitute. The amendments provided for the transfer of all powers, duties, functions, records, property,
pending issues and unspent appropriations balances of the MHMHMEP and the MHTDP programs from
Tallahassee Community College to Gulf Coast State College. The amendment further changed the bill’s
effective date to July 1, 2022.
The analysis is drafted to the committee substitute as passed by the Infrastructure & Tourism
Appropriations Subcommittee.
STORAGE NAME: h0837d.COM PAGE: 7
DATE: 2/21/2022
F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
CS/CS/HB 837 2022
1 A bill to be entitled
2 An act relating to the Hurricane Loss Mitigation
3 Program; amending s. 215.559, F.S.; revising the use
4 of certain funds from the Florida Hurricane
5 Catastrophe Fund to include construction of certain
6 facilities; revising the title of a certain annual
7 report; revising provisions to require the
8 Manufactured Housing and Mobile Home Mitigation and
9 Enhancement Program to be operated by Gulf Coast State
10 College; deleting construction related to Citizens
11 Property Insurance Corporation coverage rates;
12 delaying the future repeal of the Hurricane Loss
13 Mitigation Program; directing the transfer of
14 specified powers, duties, functions, records,
15 property, issues, and funds relating to the
16 Manufactured Housing and Mobile Home Mitigation and
17 Enhancement Program from Tallahassee Community College
18 to the Gulf Coast State College; providing an
19 effective date.
20
21 Be It Enacted by the Legislature of the State of Florida:
22
23 Section 1. Paragraph (b) of subsection (1), subsection
24 (2), and subsection (7) of section 215.559, Florida Statutes,
25 are amended to read:
Page 1 of 5
CODING: Words stricken are deletions; words underlined are additions.
hb0837-02-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 837 2022
26 215.559 Hurricane Loss Mitigation Program.—A Hurricane
27 Loss Mitigation Program is established in the Division of
28 Emergency Management.
29 (1) The Legislature shall annually appropriate $10 million
30 of the moneys authorized for appropriation under s.
31 215.555(7)(c) from the Florida Hurricane Catastrophe Fund to the
32 division for the purposes set forth in this section. Of the
33 amount:
34 (b) Three million dollars in funds shall be used to
35 construct or retrofit existing facilities used as public
36 hurricane shelters. Each year the division shall prioritize the
37 use of these funds for projects included in the annual report of
38 the Shelter Development Retrofit Report prepared in accordance
39 with s. 252.385(3). The division must give funding priority to
40 projects in regional planning council regions that have shelter
41 deficits and to projects that maximize the use of state funds.
42 (2)(a) Forty percent of the total appropriation in
43 paragraph (1)(a) shall be used to inspect and improve tie-downs
44 for mobile homes.
45 (b)1. The Manufactured Housing and Mobile Home Mitigation
46 and Enhancement Program is established. The program shall
47 require the mitigation of damage to or the enhancement of homes
48 for the areas of concern raised by the Department of Highway
49 Safety and Motor Vehicles in the 2004-2005 Hurricane Reports on
50 the effects of the 2004 and 2005 hurricanes on manufactured and
Page 2 of 5
CODING: Words stricken are deletions; words underlined are additions.
hb0837-02-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 837 2022
51 mobile homes in this state. The mitigation or enhancement must
52 include, but need not be limited to, problems associated with
53 weakened trusses, studs, and other structural components caused
54 by wood rot or termite damage; site-built additions; or tie-down
55 systems and may also address any other issues deemed appropriate
56 by the Gulf Coast State College Tallahassee Community College,
57 the Federation of Manufactured Home Owners of Florida, Inc., the
58 Florida Manufactured Housing Association, and the Department of
59 Highway Safety and Motor Vehicles. The program shall include an
60 education and outreach component to ensure that owners of
61 manufactured and mobile homes are aware of the benefits of
62 participation.
63 2. The program shall be a grant program that ensures that
64 entire manufactured home communities and mobile home parks may
65 be improved wherever practicable. The moneys appropriated for
66 this program shall be distributed directly to the Gulf Coast
67 State College Tallahassee Community College for the uses set
68 forth under this subsection.
69 3. Upon evidence of completion of the program, the
70 Citizens Property Insurance Corporation shall grant, on a pro
71 rata basis, actuarially reasonable discounts, credits, or other
72 rate differentials or appropriate reductions in deductibles for
73 the properties of owners of manufactured homes or mobile homes
74 on which fixtures or construction techniques that have been
75 demonstrated to reduce the amount of loss in a windstorm have
Page 3 of 5
CODING: Words stricken are deletions; words underlined are additions.
hb0837-02-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 837 2022
76 been installed or implemented. The discount on the premium must
77 be applied to subsequent renewal premium amounts. Premiums of
78 the Citizens Property Insurance Corporation must reflect the
79 location of the home and the fact that the home has been
80 installed in compliance with building codes adopted after
81 Hurricane Andrew. Rates resulting from the completion of the
82 Manufactured Housing and Mobile Home Mitigation and Enhancement
83 Program are not considered competitive rates for the purposes of
84 s. 627.351(6)(d)1. and 2.
85 4. On or before January 1 of each year, the Gulf Coast
86 State College Tallahassee Community College shall provide a
87 report of activities under this subsection to the Governor, the
88 President of the Senate, and the Speaker of the House of
89 Representatives. The report must set forth the number of homes
90 that have taken advantage of the program, the types of
91 enhancements and improvements made to the manufactured or mobile
92 homes and attachments to such homes, and whether there has been
93 an increase in availability of insurance products to owners of
94 manufactured or mobile homes.
95
96 The Gulf Coast State College Tallahassee Community College shall
97 develop the programs set forth in this subsection in
98 consultation with the Federation of Manufactured Home Owners of
99 Florida, Inc., the Florida Manufactured Housing Association, and
100 the Department of Highway Safety and Motor Vehicles. The moneys
Page 4 of 5
CODING: Words stricken are deletions; words underlined are additions.
hb0837-02-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 837 2022
101 appropriated for the programs set forth in this subsection shall
102 be distributed directly to the Gulf Coast State College
103 Tallahassee Community College to be used as set forth in this
104 subsection.
105 (7) This section is repealed June 30, 2032 2022.
106 Section 2. Effective July 1, 2022, all powers, duties,
107 functions, records, property, pending issues, and unexpended
108 balances of appropriations, allocations, and other funds in
109 Tallahassee Community College related to the programs authorized
110 under s. 215.559(2), Florida Statutes, are transferred to the
111 Gulf Coast State College.
112 Section 3. This act shall take effect July 1, 2022.
Page 5 of 5
CODING: Words stricken are deletions; words underlined are additions.
hb0837-02-c2
CS/HB 871
HOUSE OF REPRESENTATIVES STAFF ANALYSIS
BILL #: CS/HB 871 Department of Highway Safety and Motor Vehicles
SPONSOR(S): Infrastructure & Tourism Appropriations Subcommittee, Brannan
TIED BILLS: IDEN./SIM. BILLS: SB 914
REFERENCE ACTION ANALYST STAFF DIRECTOR or
BUDGET/POLICY CHIEF
1) Tourism, Infrastructure & Energy Subcommittee 16 Y, 0 N Johnson Keating
2) Infrastructure & Tourism Appropriations 14 Y, 0 N, As CS Hicks Davis
Subcommittee
3) Commerce Committee Johnson Hamon
SUMMARY ANALYSIS
The bill addresses several matters involving the Department of Highway Safety and Motor Vehicles (DHSMV).
The bill:
Provides law enforcement agencies additional time to submit required data concerning violations of the
Ban on Texting While Driving Law and provides DHSMV additional time to compile this information and
submit an annual report.
Requires any operator of a motor vehicle to provide proof of insurance when requested by a law
enforcement officer.
Extends the private rebuilt vehicle inspection program, currently only authorized in Miami-Dade County,
to 11 additional counties.
Provides that a charter bus is an “apportionable vehicle” to make Florida law consistent with the
International Registration Plan.
Prohibits persons with certain unpaid violations from obtaining a replacement motor vehicle registration
or license plate to avoid a registration stop.
Establishes timeframes within which various dealers and manufacturers of recreational vehicles and
mobile homes must report to DHSMV changes in required insurance and surety bonds.
Adds minimum insurance requirements for commercial motor vehicles carrying passengers, referring to
requirements in federal regulations.
The bill will have an indeterminate fiscal impact on local and state government revenues and an insignificant
impact on state government expenditures. It does not appear to impact local government expenditures. See
Fiscal Analysis section.
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: h0871d.COM
DATE: 2/21/2022
FULL ANALYSIS
I. SUBSTANTIVE ANALYSIS
A. EFFECT OF PROPOSED CHANGES:
Texting While Driving Report Due Date
Current Situation
Florida’s Ban on Texting While Driving Law prohibits, with specified exceptions, a person from
operating a motor vehicle while manually typing or entering multiple letters, numbers, symbols, or other
characters into a wireless communications device1 or while sending or reading data on such a device
for the purpose of nonvoice interpersonal communication. This includes texting, e-mailing, and instant
messaging.2
When a law enforcement officer issues a citation for a violation of this law, the officer must record the
race and ethnicity of the violator. All law enforcement agencies must maintain and report such
information to the Department of Highway Safety and Motor Vehicles (DHSMV). DHSMV must
annually, by February 1 of each year, report the data collected to the Governor, the President of the
Senate, and the Speaker of the House of Representatives. This data must be reported at least by
statewide totals for local law enforcement agencies, state law enforcement agencies, and state
university law enforcement agencies. The statewide total for local law enforcement agencies must
combine the data for the county sheriffs and the municipal law enforcement agencies. 3
Effect of the Bill
The bill revises the deadline for DHSMV’s annual report on violations of the Ban on Texting While
Driving Law. It requires law enforcement agencies to provide the race and ethnicity of violators to
DHSMV by April 1 of each year. On July, 1, 2023, and on July 1 of each year thereafter, DHSMV must
report the data to the Governor, the President of the Senate, and the Speaker of the House of
Representatives.
Proof of Motor Vehicle Insurance
Current Situation
Under Florida law, any person required to carry motor vehicle insurance must have proof of such
insurance in his or her immediate possession while operating a motor vehicle.4
If it appears to a law enforcement officer or other person authorized to issue traffic citations that the
vehicle operator is also the owner or registrant of the vehicle, the operator must show proper proof of
insurance upon demand.5
Effect of the Bill
The bill requires any operator of a motor vehicle, regardless of whether the person is the owner of the
vehicle, to show proof of insurance upon the demand of a law enforcement officer or other person
authorized to issue traffic violations.
1 For purposes of s. 316.305, F.S., the term “wireless communications device” means any handheld device used or capable of bein g
used in a handheld manner, that is designed or intended to receive or transmit text or character -based messages, access or store data,
or connect to the Internet or any communications service and that allows text communications.
2 S. 316.305(3), F.S.
3 S. 316.305(5), F.S. A copy of the report for January 1, 2020, through December 31, 2020 is available at:
https://www3.flhsmv.gov/pdf/cabinetreports/TextingWhileDrivingReport_2020.pdf (last visited Jan. 12, 2022).
4 S. 316.646(1), F.S.
5 S. 316.646(2), F.S.
STORAGE NAME: h0871d.COM PAGE: 2
DATE: 2/21/2022
Private Rebuilt Vehicle Inspection Program
Current Situation
A rebuilt vehicle inspection is an examination of a rebuilt vehicle, specified documents, photographs of
damage, receipts and invoices of certain repairs made, and proof that notice of rebuilding of the vehicle
has been reported to the National Motor Vehicle Title Information System. 6
In 2013, the Legislature directed DHSMV to implement and evaluate a pilot program allowing rebuilt
vehicle inspection services to be offered by the private sector. The Private Rebuilt Vehicle Inspection
Program (PRVIP) was implemented in Miami-Dade County from October 1, 2013, through June 30,
2015, and was subsequently extended through June 30, 2018. The program expired on July 1, 2018,
since no legislation was enacted to continue it. Consequently, all rebuilt vehicle inspections reverted to
DHSMV, resulting in an increase in DHSMV-provided rebuilt vehicle inspection services for Fiscal Year
2018-2019.7 In 2019, the pilot program was reenacted and amended.8 The program still applies to only
Miami-Dade County.9
A PRVIP participant must sign a memorandum of understanding with DHSMV allowing the participant
to conduct rebuilt motor vehicle inspections and specifying the requirements for oversight, bonding and
insurance, procedures, and forms, and requiring the electronic transmission of documents. The annual
authorization period for PRVIP participation runs from October 1 through September 30 each year and
requires participants to annually renew their authorizations. Currently, there are 14 authorized facilities
operating under PRVIP.10
Under PRVIP, DHSMV must conduct an onsite facility inspection at least once per quarter and must
immediately terminate any participant from the program who fails to meet the minimum eligibility
requirements.11
In July 2021, DHSMV issued its report on the effectiveness of the PRVIP Program. Although the
program was only authorized for Miami-Dade County, customers from other counties also utilize the
PRVIPs. Therefore, to meet customer demand, DHSMV recommended that locations in additional
counties be authorized in statute. In addition to Miami-Dade County, DHSMV has offices in Escambia,
Bay, Leon, Marion, Duval, Orange, Hillsborough, Volusia, Palm Beach, Broward and Manatee counties
and could provide required oversight to prospective PRVIPs in those counties. 12
Effect of the Bill
The bill requires DHSMV, by October 1, 2022, to expand the PRVIP to Bay, Broward, Duval, Escambia,
Hillsborough, Leon, Manatee, Marion, Orange, Palm Beach and Volusia counties.
The bill also removes an obsolete requirement that DHSMV, by July 1, 2021, submit a report on
PRVIP.
Charter Buses/Apportionable Vehicles
Current Situation
The International Registration Plan (IRP) is a reciprocity agreement among states of the United States,
the District of Columbia, and provinces of Canada which recognizes the registration of commercial
6 S. 319.141(1)(b), F.S.
7 Department of Highway Safety and Motor Vehicles (DHSMV), Private Reb uilt Inspection Program, July 1, 2021. p. 2.
https://www.flhsmv.gov/pdf/cabinetreports/privaterebuiltreport.pdf (last visited Dec. 16, 2021).
8 Chapter 2019-169, Laws of Florida.
9 S. 319.141(2), F.S.
10 DHSMV, supra note 7.
11 S. 319.141(8), F.S.
12 DHSMV supra note 7 at 4.
STORAGE NAME: h0871d.COM PAGE: 3
DATE: 2/21/2022
motor vehicles (CMVs) registered by other jurisdictions. The plan provides for payment of apportioned
licensing fees based on the total distance that these vehicles are operated in all member jurisdictions.13
For purposes of motor vehicle licensing, Florida law defines the term “apportionable vehicle” as any
vehicle, except recreational vehicles, vehicles displaying restricted plates, city pickup and delivery
vehicles, buses used in transportation of chartered parties, and government-owned vehicles, which is
used or intended for use in two or more IRP member jurisdictions that allocate or proportionally register
vehicles and which is used for the transportation of persons for hire or is designed, used, or maintained
primarily for the transportation of property and meets certain weight and axle requirements.14
In 2016, the IRP removed the charter bus exemption from its definition of apportionable vehicle.
Therefore, Florida statutes are inconsistent with the current IRP definitions.15
Effect of the Bill
The bill provides that charter buses are no longer exempted from the statutory definition of
“apportionable vehicle,” making Florida’s statutory definition consistent with the IRP.
Motor Vehicle Registration Stop
Current Situation
Under Florida law, if the name of an applicant for a motor vehicle registration appears on a DHSMV list
of persons with unpaid tolls,16 unpaid parking fines,17 unpaid red light camera violations,18 or wrecker
liens,19 a license plate or revalidation sticker may not be issued until that person's name no longer
appears on the list or until the person presents a receipt from the governmental entity or the clerk of
court showing that the outstanding fines have been paid or liens have been satisfied. This applies only
to the annual renewal of a motor vehicle registration and does not apply to the transfer of a registration
of a motor vehicle sold by a licensed motor vehicle dealer, except for the transfer of registrations which
include the annual renewals.20
While current law prohibits individuals with the above stops from renewing their registration, the law lets
them obtain a replacement license plate, allowing them to circumvent the collection process.21
According to DHSMV, between October 2019 and October 2021, 3,994 registrations had their license
plates replaced via a “replace registration” transaction while an open stop existed. Of these, over 3,700
were for unpaid toll violations.22
Effect of the Bill
The bill provides that these prohibitions against renewing a motor vehicle registration apply both to an
annual renewal of a registration and the replacement of the motor vehicle registration or license plate.
Garage Liability Insurance/Surety Bonds
Current Situation
13 International Registration Plan, Inc., Welcome to IRP, Inc. https://www.irponline.org/ (last visited Nov. 3, 2021).
14 S. 320.01(24), F.S.
15 DHSMV, Agency Analysis of 2022 House Bill 871, p. 3. (Dec. 17, 2021).
16 S. 316.1001(4), F.S.
17 S. 316.1967(6), F.S.
18 S. 318.15(3), F.S.
19 S. 713.78(13), F.S.
20 S. 320.03(8), F.S.
21 Attachment to E-mail from Kevin Jacobs, Legislative Affairs Director, DHSMV, 2022 Legislative Concepts, p. 1. (Jan. 25, 2022).
22 Email from Kevin Jacobs, Legislative Affairs Director, DHSMV, fyi – toll stop legislation part of HSMV bill (Jan. 10, 2022).
STORAGE NAME: h0871d.COM PAGE: 4
DATE: 2/21/2022
Florida law requires mobile home dealers, recreational vehicle dealers, mobile home manufacturers,
and recreational vehicle manufacturers, distributors, or importers to provide certain surety bonds, cash
bonds, or irrevocable letters of credit to DHSMV, which must be conditioned on the dealer,
manufacturer, distributor, or importer’s compliance with specified laws and certain provisions in
contracts regarding the sale of mobile homes or recreational vehicles. 23
An application for a license as a recreational vehicle dealer must contain a statement that the applicant
is insured under a garage liability insurance24 policy, which must include, at a minimum, $25,000
combined single limit liability coverage, including bodily injury and property damage protection, and
$10,000 personal injury protection, if the applicant is to be licensed as a dealer in, or intends to sell,
recreational vehicles.25
Current law does not provide a timeframe for mobile home dealers, recreational vehicle dealers, mobile
home manufacturers, or recreational vehicle manufacturers, importers, or distributors to submit to
DHSMV the required surety or cash bonds or irrevocable letters of credit. Further, there is no required
timeframe for recreational vehicle dealers to submit to DHSMV the required proof of garage liability
insurance. Thus, DHSMV often must contact these entities to obtain this information. Failure to have
the required garage liability insurance or surety bond, cash bond, or letter of credit submitted violates
Florida law and may expose consumers and other stakeholders to financial loss. 26
In 2021, the Legislature codified insurance and surety bond requirements for motor vehicle dealers but
did not include mobile home dealers, or recreational vehicle dealers, manufacturers, importers, and
distributors.27
Effect of the Bill
The bill requires that, within 10 calendar days of any renewal or continuation of or material change in a
surety bond, a cash bond, or irrevocable letter of credit or issuance of a new surety bond, mobile home
dealers and mobile home and recreational vehicle manufacturers, distributors, and importers must
deliver to DHSMV, in a DHSMV-prescribed manner, a copy of the renewed, continued, changed, or
new surety bond, cash bond, or irrevocable letter of credit.
The bill requires recreational vehicle dealers and mobile home dealers who deal in recreational
vehicles to carry garage liability insurance for the period of their DHSMV license and within 10 calendar
days after any renewal, continuation of, or material change to such policy, or issuance of a new policy,
to deliver to DHSMV, in a DHSMV-prescribed manner, the new policy.
According to DHSMV, this timeframe will help ensure that mobile home and recreational vehicle
manufacturers, distributors, and importers submit and maintain any required garage liability insurance
or surety bonds, cash bonds, or letters of credit in place at the time of an original application or renewal
of a dealer license and when changes take place during the period of DHSMV licensure.28
Commercial Motor Vehicle – Liability Insurance
Current Situation
Under Florida law, commercial motor vehicles must be insured with the following minimum levels of
combined bodily liability insurance and property damage liability insurance in addition to any other
insurance requirements:
23 Ss. 320.77(16), 320.771(16), and 320.8225(5), F.S.
24 Garage liability insurance is specifically designed for automotive repair shops, dealerships, towing companies, and service s tations.
This insurance includes general liability which covers bodily injury and property damage for others.
25 S. 320.771(3)(j), F.S.
26 DHSMV, supra note 15 at 4.
27 Attachment to E-mail from Kevin Jacobs, Legislative Affairs Director, DHSMV, 2022 Legislative Concepts, p. 2. (Jan. 25, 2022).
28 DSHMV, supra note 15 at 6.
STORAGE NAME: h0871d.COM PAGE: 5
DATE: 2/21/2022
$50,000 per occurrence for a commercial motor vehicle with a gross vehicle weight of 26,000
pounds or more, but less than 35,000 pounds.
$100,000 per occurrence for a commercial motor vehicle with a gross vehicle weight of 35,000
pounds or more, but less than 44,000 pounds.
$300,000 per occurrence for a commercial motor vehicle with a gross vehicle weight of 44,000
pounds or more.
All commercial motor vehicles subject to regulations of the United States Department of
Transportation must be insured in an amount equivalent to the minimum levels of financial
responsibility as set forth in those regulations.
A violation is a noncriminal traffic infraction, punishable as a nonmoving violation. 29
Federal regulations separately provide the minimum required levels of financial responsibility for motor
carriers carrying property and for motor carriers carrying passengers.30 The minimum levels currently
required by federal regulations for-hire motor carriers of passengers operating in interstate or foreign
commerce are:31
Minimum
Vehicle Seating Capacity
Limits
(1) Any vehicle with a seating capacity of 16 passengers $5,000,000
or more, including the driver
(2) Any vehicle with a seating capacity of 15 passengers
$1,500,000
or less, including the driver
Current law does not incorporate these federal regulations; therefore; Florida law does not conform to
federal regulations.
Effect of the Bill
The bill requires all commercial motor vehicles subject to the regulations of the United States
Department of Transportation, 49 C.F.R., part 387, subpart B, relating to motor carriers of passengers,
as these regulations may be amended, to be insured in an amount equivalent to the minimum levels of
financial responsibility set forth in federal regulations. This will allow DHSMV to enforce federal
insurance requirements on buses and other commercial motor vehicles carrying passengers. 32
Effective Date
The bill has an effective date of July 1, 2022.
B. SECTION DIRECTORY:
Section 1: Amends s. 316.305, F.S., relating to wireless communications devices; prohibition.
Section 2: Amends s. 316.646, F.S., relating to security required; proof of security and display
thereof.
Section 3: Amends s. 319.141, F.S., relating to the rebuilt motor vehicle inspection program.
Section 4: Amends s. 320.01, F.S., providing definitions.
29 S. 627.7415, F.S.
30 49 C.FR. part 387, subpart A, provides minimum levels of financial responsibility for commercial motor carriers carrying property.
Subpart B, provides minimum levels of financial responsibility for motor carriers carrying passengers.
31 80 FR 63709, Oct. 21, 2015, as amended at 83 FR 22876, May 17, 2018.
32 DHSMV, supra note 15 at 6.
STORAGE NAME: h0871d.COM PAGE: 6
DATE: 2/21/2022
Section 5: Amends s. 320.03, F.S., relating to registration; duties of tax collectors; International
Registration Plan.
Section 6: Amends s. 320.77, F.S., relating to license required of mobile home dealers.
Section 7: Amends s. 320.771, F.S., relating to license required of recreational vehicle dealers.
Section 8: Amends s. 320.8225, F.S., relating to mobile home and recreational vehicle
manufacturer, distributor, and importer license.
Section 9: Amends s. 627.7415, F.S., relating to commercial motor vehicles, additional liability
insurance coverage.
Section 10: Provides an effective date.
II. FISCAL ANALYSIS & ECONOMIC IMPACT STATEMENT
A. FISCAL IMPACT ON STATE GOVERNMENT:
1. Revenues:
The bill will have the following indeterminate impacts on state revenues:
Including charter buses in the definition of an apportionable vehicle may result in an
indeterminate decrease in revenues to DHSMV, as registration fees for charter buses will be
apportioned between the states within which these vehicles operate.
Prohibiting individuals who have motor vehicle registration stops from replacing their vehicle
registration and license plate until satisfying the stop may result in increased payments of
fees and fines resulting in an indeterminate increase in revenues to the state.
2. Expenditures:
Expanding PRVIP could impact staffing and resources at regional offices where the program is
implemented, but these needs would be determined based on the number of authorized PRVIP
facilities in each region. This oversight can be accomplished using existing resources.33
Programming would be required to prevent a license plate from being replaced when there is an
existing toll stop; however, the programming costs can be absorbed within existing resources.
B. FISCAL IMPACT ON LOCAL GOVERNMENTS:
1. Revenues:
Prohibiting a license plate from being replaced when there is an existing toll stop may result in an
indeterminate increase in revenues to tax collectors.
2. Expenditures:
None.
C. DIRECT ECONOMIC IMPACT ON PRIVATE SECTOR:
Expanding the PRVIP to additional counties may have a positive impact on business opportunities for
residents in those counties and simultaneously may have a negative impact on PRVIP operators in
33 DHSMV supra note 15 at 4.
STORAGE NAME: h0871d.COM PAGE: 7
DATE: 2/21/2022
Miami-Dade County, as vehicles may be inspected at locations in counties closer to the registered
owner’s location.
D. FISCAL COMMENTS:
According to DHSMV, the bill will have a moderate impact on its technology resources and resources
dedicated to its motorist modernization projects.34 These costs are associated with training, updated
procedures, and programming costs. However, these costs can be absorbed using existing
resources.35
III. COMMENTS
A. CONSTITUTIONAL ISSUES:
1. Applicability of Municipality/County Mandates Provision:
Not applicable. This bill does not appear to impact county or municipal governments.
2. Other:
None.
B. RULE-MAKING AUTHORITY:
The bill does not require or authorize rulemaking.
C. DRAFTING ISSUES OR OTHER COMMENTS:
None.
IV. AMENDMENTS/COMMITTEE SUBSTITUTE CHANGES
On February 16, 2022, the Infrastructure & Tourism Appropriations Subcommittee adopted one amendment to
the bill and reported the bill favorably as a committee substitute. The amendment removed a provision in the
bill that would allow a surviving spouse to transfer a motor vehicle title into his or her name, at no charge, when
only the deceased spouse’s name is listed on the title.
This analysis is drafted to the committee substitute as approved by the Infrastructure & Tourism Appropriations
Subcommittee.
34 DSHMV, supra note 15 at 8.
35 Email from Kevin Jacobs, Legislative Affairs Director, DHSMV, RE: HB 871 DHSMV Package (Jan. 3, 20 22).
STORAGE NAME: h0871d.COM PAGE: 8
DATE: 2/21/2022
F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
CS/HB 871 2022
1 A bill to be entitled
2 An act relating to the Department of Highway Safety
3 and Motor Vehicles; amending s. 316.305, F.S.;
4 requiring law enforcement agencies to annually report
5 race and ethnicity data of certain violators to the
6 department; revising the date by which the departme nt
7 must begin annually reporting such data to the
8 Governor and the Legislature; amending s. 316.646,
9 F.S.; deleting a precondition to a requirement that
10 the operator of a motor vehicle display proof of
11 maintenance of security to a law enforcement officer
12 or certain other persons; amending s. 319.141, F.S.;
13 extending the date by which the department must
14 implement a rebuilt motor vehicle inspection program;
15 adding counties where the program must be implemented;
16 deleting an obsolete provision; amending s. 320.01,
17 F.S.; revising the definition of the term
18 "apportionable vehicle"; amending s. 320.03, F.S.;
19 revising applicability; amending s. 320.77, F.S.;
20 requiring licensed mobile home dealers to deliver
21 certain documents to the department within a certain
22 timeframe; amending s. 320.771, F.S.; specifying the
23 required term of a certain garage liability insurance
24 policy; requiring licensed recreational vehicle
25 dealers to deliver certain documents to the department
Page 1 of 13
CODING: Words stricken are deletions; words underlined are additions.
hb0871-01-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 871 2022
26 within a certain timeframe; amending s. 320.8225,
27 F.S.; requiring licensed mobile home manufacturers and
28 recreational vehicle manufacturers, distributors, and
29 importers to submit certain documents to the
30 department within a certain timeframe; amending s.
31 627.7415, F.S.; requiring that certain commercial
32 motor vehicles meet certain federal financial
33 responsibility requirements; providing an effective
34 date.
35
36 Be It Enacted by the Legislature of the State of Florida:
37
38 Section 1. Subsection (5) of section 316.305, Florida
39 Statutes, is amended to read:
40 316.305 Wireless communications devices; prohibition.—
41 (5) When a law enforcement officer issues a citation for a
42 violation of this section, the law enforcement officer must
43 record the race and ethnicity of the violator. All law
44 enforcement agencies must maintain such information and report
45 the information to the department by April 1 annually in a form
46 and manner determined by the department. Beginning July 1, 2023
47 February 1, 2020, the department shall annually report the data
48 collected under this subsection to the Governor, the President
49 of the Senate, and the Speaker of the House of Representatives.
50 The data collected must be reported at least by statewide totals
Page 2 of 13
CODING: Words stricken are deletions; words underlined are additions.
hb0871-01-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 871 2022
51 for local law enforcement agencies, state law enforcement
52 agencies, and state university law enforcement agencies. The
53 statewide total for local law enforcement agencies shall combine
54 the data for the county sheriffs and the municipal law
55 enforcement agencies.
56 Section 2. Subsection (2) of section 316.646, Florida
57 Statutes, is amended to read:
58 316.646 Security required; proof of security and display
59 thereof.—
60 (2) If, upon a comparison of the vehicle registration
61 certificate or other evidence of registration or ownership with
62 the operator's driver license or other evidence of personal
63 identity, it appears to a law enforcement officer or other
64 person authorized to issue traffic citations that the operator
65 is also the owner or registrant of the vehicle, Upon the demand
66 of a the law enforcement officer or other person authorized to
67 issue traffic citations, the operator shall display proper proof
68 of maintenance of security as specified by subsection (1).
69 Section 3. Subsections (2) and (10) of section 319.141,
70 Florida Statutes, are amended to read:
71 319.141 Rebuilt motor vehicle inspection program.—
72 (2) By October 1, 2022 2019, the department shall
73 implement a program in Bay, Broward, Duval, Escambia,
74 Hillsborough, Leon, Manatee, Marion, Miami-Dade, Orange, Palm
75 Beach, and Volusia Counties County for rebuilt inspection
Page 3 of 13
CODING: Words stricken are deletions; words underlined are additions.
hb0871-01-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 871 2022
76 services offered by private sector participants.
77 (10) On or before July 1, 2021, the department shall
78 submit a written report to the President of the Senate and the
79 Speaker of the House of Representatives evaluating the
80 effectiveness of the program and whether to expand the program
81 to other counties.
82 Section 4. Subsection (24) of section 320.01, Florida
83 Statutes, is amended to read:
84 320.01 Definitions, general.—As used in the Florida
85 Statutes, except as otherwise provided, the term:
86 (24) "Apportionable vehicle" means any vehicle, except
87 recreational vehicles, vehicles displaying restricted plates,
88 city pickup and delivery vehicles, buses used in transportation
89 of chartered parties, and government-owned vehicles, which is
90 used or intended for use in two or more member jurisdictions
91 that allocate or proportionally register vehicles and which is
92 used for the transportation of persons for hire or is designed,
93 used, or maintained primarily for the transportation of property
94 and:
95 (a) Is a power unit having a gross vehicle weight in
96 excess of 26,000 pounds;
97 (b) Is a power unit having three or more axles, regardless
98 of weight; or
99 (c) Is used in combination, when the weight of such
100 combination exceeds 26,000 pounds gross vehicle weight.
Page 4 of 13
CODING: Words stricken are deletions; words underlined are additions.
hb0871-01-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 871 2022
101
102 Vehicles, or combinations thereof, having a gross vehicle weight
103 of 26,000 pounds or less and two-axle vehicles may be
104 proportionally registered.
105 Section 5. Subsection (8) of section 320.03, Florida
106 Statutes, is amended to read:
107 320.03 Registration; duties of tax collectors;
108 International Registration Plan.—
109 (8) If the applicant's name appears on the list referred
110 to in s. 316.1001(4), s. 316.1967(6), s. 318.15(3), or s.
111 713.78(13), a license plate or revalidation sticker may not be
112 issued until that person's name no longer appears on the list or
113 until the person presents a receipt from the governmental entity
114 or the clerk of court that provided the data showing that the
115 fines outstanding have been paid. This subsection does not apply
116 to the owner of a leased vehicle if the vehicle is registered in
117 the name of the lessee of the vehicle. The tax collector and the
118 clerk of the court are each entitled to receive monthly, as
119 costs for implementing and administering this subsection, 10
120 percent of the civil penalties and fines recovered from such
121 persons. As used in this subsection, the term "civil penalties
122 and fines" does not include a wrecker operator's lien as
123 described in s. 713.78(13). If the tax collector has private tag
124 agents, such tag agents are entitled to receive a pro rata share
125 of the amount paid to the tax collector, based upon the
Page 5 of 13
CODING: Words stricken are deletions; words underlined are additions.
hb0871-01-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 871 2022
126 percentage of license plates and revalidation stickers issued by
127 the tag agent compared to the total issued within the county.
128 The authority of any private agent to issue license plates shall
129 be revoked, after notice and a hearing as provided in chapter
130 120, if he or she issues any license plate or revalidation
131 sticker contrary to the provisions of this subsection. This
132 section applies both only to the annual renewal in the owner's
133 birth month of a motor vehicle registration and the replacement
134 of the motor vehicle registration or license plate, but does not
135 apply to the transfer of a registration of a motor vehicle sold
136 by a motor vehicle dealer licensed under this chapter, except
137 for the transfer of registrations which includes the annual
138 renewals. This section does not affect the issuance of the title
139 to a motor vehicle, notwithstanding s. 319.23(8)(b).
140 Section 6. Paragraph (a) of subsection (16) of section
141 320.77, Florida Statutes, is amended to read:
142 320.77 License required of mobile home dealers.—
143 (16) SURETY BOND, CASH BOND, OR IRREVOCABLE LETTER OF
144 CREDIT REQUIRED.—
145 (a) Before any license shall be issued or renewed, the
146 applicant or licensee shall deliver to the department a good and
147 sufficient surety bond, cash bond, or irrevocable letter of
148 credit, executed by the applicant or licensee as principal.
149 Within 10 calendar days after any renewal or continuation of or
150 material change in such surety bond, cash bond, or irrevocable
Page 6 of 13
CODING: Words stricken are deletions; words underlined are additions.
hb0871-01-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 871 2022
151 letter of credit or issuance of a new surety bond, a licensee
152 shall deliver to the department, in a manner prescribed by the
153 department, a copy of the renewed, continued, changed, or new
154 surety bond, cash bond, or irrevocable letter of credit. The
155 bond or irrevocable letter of credit shall be in a form to be
156 approved by the department and shall be conditioned upon the
157 dealer's complying with the conditions of any written contract
158 made by the dealer in connection with the sale, exchang e, or
159 improvement of any mobile home and his or her not violating any
160 of the provisions of chapter 319 or this chapter in the conduct
161 of the business for which the dealer is licensed. The bond or
162 irrevocable letter of credit shall be to the department and in
163 favor of any retail customer who shall suffer any loss as a
164 result of any violation of the conditions contained in this
165 section. The bond or irrevocable letter of credit shall be for
166 the license period, and a new bond or irrevocable letter of
167 credit or a proper continuation certificate shall be delivered
168 to the department at the beginning of each license period.
169 However, the aggregate liability of the surety in any one
170 license year shall in no event exceed the sum of such bond, or,
171 in the case of a letter of credit, the aggregate liability of
172 the issuing bank shall not exceed the sum of the credit. The
173 amount of the bond required shall be as follows:
174 1. A single dealer who buys, sells, or deals in mobile
175 homes and who has four or fewer supplemental licenses shall
Page 7 of 13
CODING: Words stricken are deletions; words underlined are additions.
hb0871-01-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 871 2022
176 provide a surety bond, cash bond, or irrevocable letter of
177 credit executed by the dealer applicant or licensee in the
178 amount of $25,000.
179 2. A single dealer who buys, sells, or deals in mobile
180 homes and who has more than four supplemental licen ses shall
181 provide a surety bond, cash bond, or irrevocable letter of
182 credit executed by the dealer applicant or licensee in the
183 amount of $50,000.
184
185 For the purposes of this paragraph, any person who buys, sells,
186 or deals in both mobile homes and recreational vehicles shall
187 provide the same surety bond required of dealers who buy, sell,
188 or deal in mobile homes only.
189 Section 7. Paragraph (j) of subsection (3) and paragraph
190 (a) of subsection (16) of section 320.771, Florida Statutes, are
191 amended to read:
192 320.771 License required of recreational vehicle dealers. —
193 (3) APPLICATION.—The application for such license shall be
194 in the form prescribed by the department and subject to such
195 rules as may be prescribed by it. The application shall be
196 verified by oath or affirmation and shall contain:
197 (j) Evidence A statement that the applicant is insured
198 under a garage liability insurance policy, which shall include,
199 at a minimum, $25,000 combined single-limit liability coverage,
200 including bodily injury and property damage protection, and
Page 8 of 13
CODING: Words stricken are deletions; words underlined are additions.
hb0871-01-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 871 2022
201 $10,000 personal injury protection, if the applicant is to be
202 licensed as a dealer in, or intends to sell, recreational
203 vehicles. Such policy must be for the license period. Within 10
204 calendar days after any renewal or continuation of or material
205 change in such policy or issuance of a new policy, the licensee
206 shall deliver to the department, in a manner prescribed by the
207 department, a copy of such renewed, continued, changed, or new
208 policy. However, a garage liability policy is not required for
209 the licensure of a mobile home dealer who sells only park
210 trailers.
211
212 The department shall, if it deems necessary, cause an
213 investigation to be made to ascertain if the facts set forth in
214 the application are true and shall not issue a license t o the
215 applicant until it is satisfied that the facts set forth in the
216 application are true.
217 (16) BOND.—
218 (a) Before any license shall be issued or renewed, the
219 applicant shall deliver to the department a good and sufficient
220 surety bond, executed by the applicant as principal and by a
221 surety company qualified to do business in the state as surety.
222 Within 10 calendar days after any renewal or continuation of or
223 material change in such surety bond or issuance of a new surety
224 bond, a licensee shall deliver to the department, in a manner
225 prescribed by the department, a copy of such renewed, continued,
Page 9 of 13
CODING: Words stricken are deletions; words underlined are additions.
hb0871-01-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 871 2022
226 changed, or new surety bond. The bond shall be in a form to be
227 approved by the department and shall be conditioned upon the
228 dealer's complying with the conditions of any written contract
229 made by that dealer in connection with the sale, exchange, or
230 improvement of any recreational vehicle and his or her not
231 violating any of the provisions of chapter 319 or this chapter
232 in the conduct of the business for which he or she is licensed.
233 The bond shall be to the department and in favor of any retail
234 customer who shall suffer any loss as a result of any violation
235 of the conditions hereinabove contained. The bond shall be for
236 the license period, and a new bond or a proper continuation
237 certificate shall be delivered to the department at the
238 beginning of each license period. However, the aggregate
239 liability of the surety in any one license year shall in no
240 event exceed the sum of such bond. The amount of the bond
241 required shall be as follows:
242 1. A single dealer who buys, sells, or deals in
243 recreational vehicles and has four or fewer supplemental
244 licenses shall provide a surety bond in the amount of $10,000.
245 2. A single dealer who buys, sells, or deals in
246 recreational vehicles and who has more than four supplemental
247 licenses shall provide a surety bond in the amount of $20,000.
248
249 For the purposes of this paragraph, any person who buys, sells,
250 or deals in both mobile homes and recreational vehicles shall
Page 10 of 13
CODING: Words stricken are deletions; words underlined are additions.
hb0871-01-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 871 2022
251 provide the same surety bond required of dealers who buy, sell,
252 or deal in mobile homes only.
253 Section 8. Paragraphs (a) and (b) of subsection (5) of
254 section 320.8225, Florida Statutes, are amended to read:
255 320.8225 Mobile home and recreational vehicle
256 manufacturer, distributor, and importer license.—
257 (5) REQUIREMENT OF ASSURANCE.—
258 (a) Annually, prior to the receipt of a license to
259 manufacture mobile homes, the applicant or licensee shall submit
260 a surety bond, cash bond, or letter of credit from a financial
261 institution, or a proper continuation certificate, sufficient to
262 assure satisfaction of claims against the licensee for failure
263 to comply with appropriate code standards, failure to provide
264 warranty service, or violation of any provisions of this
265 section. The amount of the surety bond, cash bond, or letter of
266 credit must be $50,000. Only one surety bond, cash bond, or
267 letter of credit shall be required for each manufacturer,
268 regardless of the number of factory locations. The surety bond,
269 cash bond, or letter of credit must be to the department, in
270 favor of any retail customer who suffers a loss arising out of
271 noncompliance with code standards or failure to honor or provide
272 warranty service. The department may disapprove any bond or
273 letter of credit that does not provide assurance as provided in
274 this section. Within 10 calendar days after any renewal or
275 continuation of or material change in such surety bond, cash
Page 11 of 13
CODING: Words stricken are deletions; words underlined are additions.
hb0871-01-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 871 2022
276 bond, or letter of credit or issuance of a new surety bond, cash
277 bond, or letter of credit, a licensee shall deliver to the
278 department, in a manner prescribed by the department, a copy of
279 such renewed, continued, changed, or new surety bond, cash bond,
280 or letter of credit.
281 (b) Annually, prior to the receipt of a license to
282 manufacture, distribute, or import recreational vehicles, the
283 applicant or licensee shall submit a surety bond, or a proper
284 continuation certificate, sufficient to assure satisfaction of
285 claims against the licensee for failure to comply with
286 appropriate code standards, failure to provide warranty service,
287 or violation of any provisions of this section. The amount of
288 the surety bond must be $10,000 per year. The surety bond must
289 be to the department, in favor of any retail customer who
290 suffers loss arising out of noncompliance with code sta ndards or
291 failure to honor or provide warranty service. The department may
292 disapprove any bond that does not provide assurance as provided
293 in this section. Within 10 calendar days after any renewal or
294 continuation of or material change in such surety bond or
295 issuance of a new surety bond, a licensee shall deliver to the
296 department, in a manner prescribed by the department, a copy of
297 such renewed, continued, changed, or new surety bond.
298 Section 9. Subsection (4) of section 627.7415, Florida
299 Statutes, is amended to read:
300 627.7415 Commercial motor vehicles; additional liability
Page 12 of 13
CODING: Words stricken are deletions; words underlined are additions.
hb0871-01-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 871 2022
301 insurance coverage.—Commercial motor vehicles, as defined in s.
302 207.002 or s. 320.01, operated upon the roads and highways of
303 this state shall be insured with the following minimum levels of
304 combined bodily liability insurance and property damage
305 liability insurance in addition to any other insurance
306 requirements:
307 (4) All commercial motor vehicles subject to regulations
308 of the United States Department of Transportation, 49 C.F.R.
309 part 387, subparts subpart A and B, and as may be hereinafter
310 amended, shall be insured in an amount equivalent to the minimum
311 levels of financial responsibility as set forth in such
312 regulations.
313
314 A violation of this section is a noncriminal traffic infraction,
315 punishable as a nonmoving violation as provided in chapter 318.
316 Section 10. This act shall take effect July 1, 2022.
Page 13 of 13
CODING: Words stricken are deletions; words underlined are additions.
hb0871-01-c1
COMMERCE COMMITTEE
CS/HB 871 by Rep. Brannan
Department of Highway Safety and Motor Vehicles
AMENDMENT SUMMARY
February 23, 2022
Amendment 1 by Rep. Brannan (Line 68):
• Clarifies that if the operator of a vehicle is not the registered owner of the vehicle,
he or she may not be cited for failure to maintain the required insurance on the
vehicle, but may still be cited for failure to display proof of insurance.
• Requires driver license and identification card numbers, beginning November 1,
2023, to have a minimum of four randomly generated digits. This applies to
original, renewal, or replacement driver licenses or identification cards.
COMMITTEE/SUBCOMMITTEE AMENDMENT
Bill No. CS/HB 871 (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 Brannan offered the following:
3
4 Amendment (with directory and title amendments)
5 Between lines 68 and 69, insert:
6 (3)(a) Any operator who is the owner or registrant of the
7 vehicle he or she is operating and person who violates this
8 section commits a nonmoving traffic infraction subject to the
9 penalty provided in chapter 318 and shall be required to furnish
10 proof of security as provided in this section. If any operator
11 who is the owner or registrant of the vehicle he or she is
12 operating and who is person charged with a violation of this
13 section fails to furnish proof at or before the scheduled court
14 appearance date that security was in effect at the time of the
15 violation, the court shall, upon conviction, notify the
16 department to suspend the registration and driver license of
410301 - h0871-line 68.docx
Published On: 2/22/2022 4:07:25 PM
Page 1 of 4
COMMITTEE/SUBCOMMITTEE AMENDMENT
Bill No. CS/HB 871 (2022)
Amendment No. 1
17 such operator person. If the court fails to order the suspension
18 of such operator's the person's registration and driver license
19 for a conviction of this section at the time of sentencing, the
20 department shall, upon receiving notice of the conviction from
21 the court, suspend such operator's the person's registration and
22 driver license for the violation of this section. Such license
23 and registration may be reinstated only as provided in s.
24 324.0221.
25 (b) Any operator who is not the owner or registrant of the
26 vehicle he or she is operating and who violates this section
27 commits a nonmoving traffic infraction subject to the penalty
28 provided in chapter 318.
29 (4) Any operator person presenting proof of insurance as
30 required in subsection (1) who knows that the insurance as
31 represented by such proof of insurance is not currently in force
32 is guilty of a misdemeanor of the first degree, punishable as
33 provided in s. 775.082 or s. 775.083.
34 Section 3. Paragraph (a) of subsection (8) of section
35 322.051, Florida Statutes, is amended to read:
36 322.051 Identification cards.—
37 (8)(a) The department shall, upon receipt of the required
38 fee, issue to each qualified applicant for an identification
39 card a color photographic or digital image identification card
40 bearing a fullface photograph or digital image of the
41 identification cardholder. Notwithstanding chapter 761 or s.
410301 - h0871-line 68.docx
Published On: 2/22/2022 4:07:25 PM
Page 2 of 4
COMMITTEE/SUBCOMMITTEE AMENDMENT
Bill No. CS/HB 871 (2022)
Amendment No. 1
42 761.05, the requirement for a fullface photograph or digital
43 image of the identification cardholder may not be waived. A
44 space shall be provided upon which the identification cardholder
45 shall affix his or her usual signature, as required in s.
46 322.14, in the presence of an authorized agent of the department
47 so as to ensure that such signature becomes a part of the
48 identification card. Beginning November 1, 2023, each
49 distinguishing number assigned to an original, renewal, or
50 replacement identification card must have a minimum of four
51 randomly generated digits.
52 Section 4. Paragraph (a) of subsection (1) of section
53 322.14, Florida Statutes, is amended to read:
54 322.14 Licenses issued to drivers.—
55 (1)(a) The department shall, upon successful completion of
56 all required examinations and payment of the required fee, issue
57 to every qualified applicant a printed driver license that must
58 bear a color photograph or digital image of the licensee; the
59 name of the state; a distinguishing number assigned to the
60 licensee, which, beginning November 1, 2023, must have a minimum
61 of four randomly generated digits on each original, renewal, or
62 replacement driver license; and the licensee's full name, date
63 of birth, and residence address; a brief description of the
64 licensee, including, but not limited to, the licensee's gender
65 and height; and the dates of issuance and expiration of the
66 license. A space shall be provided upon which the licensee shall
410301 - h0871-line 68.docx
Published On: 2/22/2022 4:07:25 PM
Page 3 of 4
COMMITTEE/SUBCOMMITTEE AMENDMENT
Bill No. CS/HB 871 (2022)
Amendment No. 1
67 affix his or her usual signature. A license is invalid until it
68 has been signed by the licensee except that the signature of the
69 licensee is not required if it appears thereon in facsimile or
70 if the licensee is not present within the state at the time of
71 issuance.
72
73 -----------------------------------------------------
74 D I R E C T O R Y A M E N D M E N T
75 Remove lines 56-57 and insert:
76 Section 2. Subsections (2), (3), and (4) of section
77 316.646, Florida Statutes, are amended to read:
78
79 -----------------------------------------------------
80 T I T L E A M E N D M E N T
81 Remove line 12 and insert:
82 or certain other persons; removing a requirement for certain
83 motor vehicle operators to subsequently furnish proof of
84 security after a certain violation; amending ss. 322.051 and
85 322.14, F.S.; requiring that distinguishing numbers assigned to
86 identification cards and driver licenses, respectively, have a
87 specified minimum number of randomly generated digits beginning
88 on a specified date; amending s. 319.141, F.S.;
410301 - h0871-line 68.docx
Published On: 2/22/2022 4:07:25 PM
Page 4 of 4
CS/HB 915
HOUSE OF REPRESENTATIVES STAFF ANALYSIS
BILL #: CS/HB 915 Commercial Motor Vehicle Registration
SPONSOR(S): Tourism, Infrastructure & Energy Subcommittee, Melo and others
TIED BILLS: IDEN./SIM. BILLS: SB 1582
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 14 Y, 0 N Hicks Davis
Subcommittee
3) Commerce Committee Johnson Hamon
SUMMARY ANALYSIS
Under current law, each commercial motor vehicle (CMV) registered under the International Registration Plan
(IRP) must pay a $28 fee annually for a new license plate along with a cab card denoting its declared vehicle
weight.
Effective January 1, 2024, the bill requires vehicles registered under the IRP to be issued a license plate for a
three-year period. At the end of the three-year period, the plate must be replaced upon renewal. Each license
plate must include a validation sticker reflecting the month that the plate expires. Under the bill, an annually
issued cab card, including payment of a $28 annual fee, is still required. The bill provides that the $28 annual
fee must be deposited into the Highway Safety Operating Trust Fund and authorizes the Department of
Highway Safety and Motor Vehicles (DHSMV) to replace a damaged or worn license plate at no cost to an
applicant surrendering the current license plate.
The bill will likely have an insignificant positive impact on DHSMV expenditures due to the CMV license plate
renewal cycle changing from an annual renewal to a three-year renewal cycle. There is no change in annual
revenues. See Fiscal Analysis section.
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: h0915c.COM
DATE: 2/21/2022
FULL ANALYSIS
I. SUBSTANTIVE ANALYSIS
A. EFFECT OF PROPOSED CHANGES:
Current Situation
The International Registration Plan (IRP) is a reciprocity agreement among states of the United States,
the District of Columbia and provinces of Canada which recognizes the registration of commercial
motor vehicles (CMVs) 1 registered by other jurisdictions. The plan provides for payment of apportioned
licensing fees based on the total distance operated in all member jurisdictions. 2
Current law requires the Department of Highway Safety and Motor Vehicles (DHSMV), upon receipt of
an application and payment of the appropriate fees, to issue to a vehicle owner or lessee a certificate of
registration and a license plate.3 License plates are issued for a ten-year period and must be replaced
upon renewal at the end of the ten-year period. The fee for license plate replacement is $28, $2.80 of
which is paid each year before the plate is replaced, and such fees must be deposited into the Highway
Safety Operating Trust Fund. A validation sticker must also be issued, reflecting the owner’s birth
month, license plate number, and the year of expiration, or the appropriate renewal period if the owner
is not a natural person.4
CMVs registered in accordance with the IRP,5 known as “apportioned vehicles,”6 are issued an annual
license plate, as well as a cab card denoting the declared gross vehicle weight for each apportioned
jurisdiction in which the vehicle is authorized to operate. 7 The $28 license plate replacement fee is paid
annually upon initial registration and subsequent renewal and includes issuance of a cab card.
Effect of the Bill
The bill removes the requirement that vehicles registered under the IRP must be issued an annual
license plate and cab card effective December 31, 2023.
The bill provides that effective January 1, 2024, apportioned vehicles must be issued a license plate for
a three-year period. The license plate must be replaced upon renewal at the end of the three-year
period and, as under current law, each license plate must include a validation sticker reflecting the
month that the license plate expires.
Under the bill, an annually issued cab card, including payment of a $28 annual fee, is still required. The
$28 fee must be deposited into Highway Safety Operating Trust Fund.
Finally, the bill provides that if the license plate is damaged or worn, the license plate may be replaced
at no charge by applying to DHSMV and surrendering the current license plate.
The bill has an effective date of July 1, 2022.
1 Section 320.01(25), F.S., defines the term “commercial motor vehicle’ to mean any vehicle not owned or operated by a governmental
entity, which uses special fuel or motor fuel on the public highways, and which has a gross vehicle weight of 26,001 pounds o r more, or
has three or more axles regardless of weight, or is used in combination when the weight of such combination exceeds 26,001 po unds
gross vehicle weight.
2 International Registration Plan, Inc., Welcome to IRP, Inc. https://www.irponline.org/ (las t visited Nov. 3, 2021).
3 Section 320.06(1)(a), F.S. See s. 320.0706, F.S., for license plate display requirements for commercial trucks with a gross vehicle
weight of 26,001 pounds or more, and for dump trucks and truck tractors.
4 Section 320.06(1)(b), F.S.
5 Department of Highway Safety and Motor Vehicles, Commercial Motor Vehicle Drivers, International Registration Plan, available at
https://www.flhsmv.gov/driver-licenses-id-cards/commercial-motor-vehicle-drivers/international-registration-plan/ (last visited Jan 28,
2022).
6 Section 320.0715(1), F.S., requires all apportionable vehicles domiciled in this state to be registered in accordance with th e
International Registration Plan and to display license plates.
7 Section 316.06(1)(b), F.S.
STORAGE NAME: h0915c.COM PAGE: 2
DATE: 2/21/2022
B. SECTION DIRECTORY:
Section 1: Amends s. 320.06, F.S., relating to registration certificates, license plates, and validation
stickers generally.
Section 2: Provides an effective date.
II. FISCAL ANALYSIS & ECONOMIC IMPACT STATEMENT
A. FISCAL IMPACT ON STATE GOVERNMENT:
1. Revenues:
None.
2. Expenditures:
DHSMV will likely see an insignificant reduction in expenditures associated with changing the
issuance of CMV license plates from an annual renewal to a three-year renewal cycle, effective
January 1, 2024.
B. FISCAL IMPACT ON LOCAL GOVERNMENTS:
1. Revenues:
None.
2. Expenditures:
None.
C. DIRECT ECONOMIC IMPACT ON PRIVATE SECTOR:
D. FISCAL COMMENTS:
None.
III. COMMENTS
A. CONSTITUTIONAL ISSUES:
1. Applicability of Municipality/County Mandates Provision:
Not applicable. This bill does not appear to impact county or municipal governments.
2. Other:
None
B. RULE-MAKING AUTHORITY:
This bill does not require or authorize rulemaking.
C. DRAFTING ISSUES OR OTHER COMMENTS:
None
IV. AMENDMENTS/COMMITTEE SUBSTITUTE CHANGES
On February 3, 2022, the Tourism, Infrastructure & Energy Subcommittee considered a proposed committee
substitute and reported the bill favorably as a committee substitute. The proposed committee substitute:
STORAGE NAME: h0915c.COM PAGE: 3
DATE: 2/21/2022
Removed provisions providing that a motor carrier’s requirement to add certain safety improvements to
a vehicle may not be considered when evaluating an individual’s status as an employee or independent
contractor.
Authorized CMVs registered under the IRP to replace their license plates once every three years.
Authorized CMV license plates to be replaced free of charge if, prior to the end of the three-year
replacement period, they become damaged or worn.
This analysis is drafted to the committee substitute as approved by the Tourism, Infrastructure & Energy
Subcommittee.
STORAGE NAME: h0915c.COM PAGE: 4
DATE: 2/21/2022
F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
CS/HB 915 2022
1 A bill to be entitled
2 An act relating to commercial motor vehicle
3 registration; amending s. 320.06, F.S.; providing for
4 future expiration of a provision relating to vehicles
5 with apportioned registrations; providing, beginning
6 on a specified date, license plate and cab card
7 requirements for vehicles registered in accordance
8 with the International Registration Plan; specifying
9 the fee for an original or renewal cab card and the
10 trust fund where the fee is deposited; providing for
11 the replacement at no charge of damaged or worn
12 license plates; providing an effective date.
13
14 Be It Enacted by the Legislature of the State of Florida:
15
16 Section 1. Paragraph (b) of subsection (1) of section
17 320.06, Florida Statutes, is amended to read:
18 320.06 Registration certificates, license plates, and
19 validation stickers generally.—
20 (1)
21 (b)1. Registration license plates bearing a graphic symbol
22 and the alphanumeric system of identification shall be issued
23 for a 10-year period. At the end of the 10-year period, upon
24 renewal, the plate shall be replaced. The department shall
25 extend the scheduled license plate replacement date from a 6 -
Page 1 of 3
CODING: Words stricken are deletions; words underlined are additions.
hb0915-01-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 915 2022
26 year period to a 10-year period. The fee for such replacement is
27 $28, $2.80 of which shall be paid each year before the plate is
28 replaced, to be credited toward the next $28 replacement fee.
29 The fees shall be deposited into the Highway Safety Operating
30 Trust Fund. A credit or refund may not be given for any prior
31 years' payments of the prorated replacement fee if the plate is
32 replaced or surrendered before the end of the 10-year period,
33 except that a credit may be given if a registrant is required by
34 the department to replace a license plate under s.
35 320.08056(8)(a). With each license plate, a validation sticker
36 shall be issued showing the owner's birth month, license plate
37 number, and the year of expiration or the appropriate renewal
38 period if the owner is not a natural person. The validation
39 sticker shall be placed on the upper right corner of the license
40 plate. The license plate and validation sticker shall be issued
41 based on the applicant's appropriate renewal period. The
42 registration period is 12 months, the extended registration
43 period is 24 months, and all expirations occur based on the
44 applicant's appropriate registration period. Rental vehicles
45 taxed pursuant to s. 320.08(6)(a) may elect a permanent
46 registration period, provided payment of the appropriate license
47 taxes and fees occurs annually.
48 2. A vehicle that has an apportioned registration shall be
49 issued an annual license plate and a cab card that denote the
50 declared gross vehicle weight for each apportioned jurisdiction
Page 2 of 3
CODING: Words stricken are deletions; words underlined are additions.
hb0915-01-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 915 2022
51 in which the vehicle is authorized to operate. This subparagraph
52 expires December 31, 2023.
53 3. Beginning January 1, 2024, a vehicle registered in
54 accordance with the International Registration Plan must be
55 issued a license plate for a 3-year period. At the end of the 3-
56 year period, upon renewal, the license plate must be replaced.
57 Each license plate must include a validation sticker showing the
58 month of expiration. A cab card denoting the declared gross
59 vehicle weight for each apportioned jurisdiction must be issued
60 annually. The fee for an original or a renewal cab card is $28,
61 which must be deposited into the Highway Safety Operating Trust
62 Fund. If the license plate is damaged or worn, it may be
63 replaced at no charge by applying to the department and
64 surrendering the current license plate.
65 4.2. In order to retain the efficient administration of
66 the taxes and fees imposed by this chapter, the 80-cent fee
67 increase in the replacement fee imposed by chapter 2009 -71, Laws
68 of Florida, is negated as provided in s. 320.0804.
69 Section 2. This act shall take effect July 1, 2022.
Page 3 of 3
CODING: Words stricken are deletions; words underlined are additions.
hb0915-01-c1
COMMERCE COMMITTEE
CS/HB 915 by Rep. Melo
Commercial Motor Vehicle Registration
AMENDMENT SUMMARY
February 23, 2022
Amendment 1 by Rep. Melo (Line 52):
• Changes the start date of the three-year license plate replacement period from
January 1, 2024, to July 1, 2024.
COMMITTEE/SUBCOMMITTEE AMENDMENT
Bill No. CS/HB 915 (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 Melo offered the following:
3
4 Amendment
5 Remove lines 52-53 and insert:
6 expires June 30, 2024.
7 3. Beginning July 1, 2024, a vehicle registered in
716871 - h0915-line 52.docx
Published On: 2/22/2022 4:11:13 PM
Page 1 of 1
HB 951
HOUSE OF REPRESENTATIVES STAFF ANALYSIS
BILL #: HB 951 Domestic Surplus Lines Insurers
SPONSOR(S): Gregory
TIED BILLS: IDEN./SIM. BILLS:
REFERENCE ACTION ANALYST STAFF DIRECTOR or
BUDGET/POLICY CHIEF
1) Insurance & Banking Subcommittee 15 Y, 0 N Fortenberry Luczynski
2) Ways & Means Committee 17 Y, 0 N LaTorre Aldridge
3) Commerce Committee Fortenberry Hamon
SUMMARY ANALYSIS
With certain exceptions, Florida law requires any person transacting insurance to have a certificate of authority
issued by the Office of Insurance Regulation (OIR). There are risks for which insurance in the admitted market are
not available because insurers are unable or unwilling to write policies for them. Therefore, states allow insurers that
are not otherwise authorized to transact insurance to sell surplus lines insurance if they meet certain requirements.
Historically, surplus lines insurers generally are not permitted to write surplus lines insurance in their states of
domicile. However, some states have enacted laws authorizing domestic surplus lines insurers ( DSLI) in recent
years. These are surplus lines insurers that offer surplus lines p olicies in their states of domicile. Prior to the creation
of laws allowing DSLI, a surplus lines insurer seeking to transact surplus lines in its state of domicile had to form a
second company domiciled in a different state which would then offer surplus lines policies in the insurer’s original
state of domicile. Over 20 states have authorized domestic surplus lines insurance.
The bill defines “domestic surplus lines insurer” as a nonadmitted insurer domiciled in this state that OIR has
authorized to write surplus lines insurance. The bill creates a statutory framework to allow a DSLI to issue surplus
lines policies in this state, by establishing certain requirements, which include:
A nonadmitted insurer possessing a policyholder surplus of at least $15 million may be authorized to
transact insurance as a DSLI under a resolution by its board and with approval of OIR.
Such nonadmitted insurers are authorized to write surplus lines insurance in any jurisdiction,
including this state, and that this authorization is not contingent upon holding a certificate of
authority.
Eligible surplus lines insurers may write any kind of insurance that unauthorized insurers not
domiciled in this state are eligible to write.
A DSLI may only write surplus lines insurance in Florida and may only sell policies through a surplus
lines agent.
Unless specifically exempt, a DSLI is subject to all financial and solvency requirements imposed on
admitted domestic insurers under state law. However, a DSLI is exempt from the surplus
requirements applied to admitted insurers.
A policy issued by a DSLI is exempt from all statutory requirements relating to insurance rating,
policy forms, premiums, cancellations, nonrenewals, and renewals, and from any other statutory
requirements that do not apply to surplus lines policies issued by surplus lines insurers domiciled in
another state.
The Revenue Estimating Conference has not estimated the potential revenue impact s of the bill. Staff estimates that
the bill may have a positive/negative indeterminate impact on General Revenue and state trust fund revenue. The
potential revenue impacts may be indirect. The impact may be positive if the bill leads to additional policies being
written in the state, resulting in increased surplus lines tax collections. The impact may be negative if additional
competition leads to lower premium rates overall, resulting in decreased surplus lines tax collections.
The bill is effective on July 1, 2022.
This docum ent does not reflect the intent or official position of the bill sponsor or House of Representatives .
STORAGE NAME: h0951d.COM
DATE: 2/21/2022
FULL ANALYSIS
I. SUBSTANTIVE ANALYSIS
A. EFFECT OF PROPOSED CHANGES:
Background
With certain exceptions, Florida law requires any person transacting insurance to have a certificate of
authority issued by the Office of Insurance Regulation (OIR). 1 The term “admitted market” refers to
insurers that have a certificate of authority issued by OIR. 2 Such insurers are also referred to as
“authorized insurers.”
Authorized insurers in Florida are subject to the provisions of the Florida Insurance Code 3 and
regulation primarily by OIR.4 OIR’s regulatory authority over authorized insurers includes solvency and
financial strength, insurance policy forms and rates, and market conduct of insurers.
Surplus Lines Insurance
There are risks for which insurance in the admitted market are not available because insurers are
unable or unwilling to write policies for them. Therefore, states allow insurers that are not otherwise
authorized to transact insurance to sell surplus lines insurance if they meet certain requirements. The
three basic categories of risks typically written by surplus lines insurers are:
Specialty risks that admitted insurers do not desire to write;
Risks for which admitted carriers do not have approved policy forms or rates; and
Risks where a policyholder needs higher coverage limits than those available on the admitted
market.
The Florida Surplus Lines Service Office (FSLSO) administers surplus lines business in this state. 5 A
certificate of authority is not required of an insurer with respect to lawfully written surplus lines policies.6
Surplus lines insurers are still considered “unauthorized” insurers,7 and may write only surplus lines
policies if they are made “eligible” by OIR. Except as specifically stated, surplus lines insurers are not
subject to regulation by OIR under ch. 627, F.S., which includes statutory provisions regarding rating
standards and insurance policy forms.8 Surplus lines insurers are subject to the Unfair Insurance
Trade Practices Act.9
Surplus Lines Law10
Florida’s Surplus Lines Law is designed to provide orderly access to unauthorized insurers who provide
surplus lines policies. Four general requirements must be met for insurance to be exported (to place a
policy in an unauthorized insurer under the Surplus Lines Law) to a surplus lines insurer:11
The insurance must be eligible for export under s. 626.916, F.S. or 626.917, F.S.;
The insurer must be an eligible surplus lines insurer under s. 626.917, F.S. or 626.918, F.S.;
1 S. 624.401, F.S. In the Florida Insurance Code (FIC), a person also includes a business entity such as an insurer.
2 S. 624.404, F.S.
3 Section 624.404, F.S., provides that an insurer must be in compliance with the FIC to qualify for and hold authority to
transact insurance in the state. The FIC is chapters 624-632, 634, 635, 636,641, 642, 648, and 651, F.S. S. 624.01, F.S.
4 In general, OIR has regulatory authority over insurers and the Department of Financial Services (DFS) has regulatory
authority over insurance agents and agencies.
5 S. 626.921, F.S.
6 S. 624.402, F.S.
7 S. 624.09(2), F.S.
8 S. 626.913(4), F.S.
9 Ss. 626.951 – 626.99, F.S. Under s. 626.9521, F.S., no person may engage in this state in any unfair insurance trade
practice. “Person” is defined by s. 626.9511(1), F.S., to mean any individual, corporation, association, partnershi p, or any
entity involved in the business of insurance.
10 Sections 626.913 – 626.937, F.S., constitute and may be referred as the “Surplus Lines Law.”
11 S. 626.915, F.S.
STORAGE NAME: h0951d.COM PAGE: 2
DATE: 2/21/2022
The insurance must be placed through a licensed Florida Surplus Lines Agent; and
All other applicable provisions of the Surplus Lines Law must be met.
Eligibility for Export to a Surplus Lines Insurer
Insurance coverage is eligible for export to a surplus lines insurer only if:
The insurance cannot be obtained from an authorized insurer after the agent has made a
diligent effort to place the insurance with an authorized insurer. 12 The surplus lines agent must
verify that a diligent effort was made by requiring a properly documented statement of diligent
effort from the agent.13 A “diligent effort” means seeking coverage from, and having been
rejected by, at least three authorized insurers currently writing the same type of coverage and
documenting these rejections.14 However, if a residential structure has a dwelling replacement
cost of $700,000 or more, coverage need only be sought from one authorized insurer. 15
The premium rate for the surplus lines coverage may not be lower than the rate currently used
by a majority of authorized insurers for the same coverage on a similar risk. 16
The surplus lines coverage may not be more favorable to the insured than under similar
contracts currently used by the majority of authorized insurers writing similar coverage on
similar risks.17
The surplus lines policy must not provide a deductible that is generally unavailable from
authorized insurers, except as applicable to extended coverage for fire or windstorm
insurance.18
Requirements for Eligibility of Surplus Lines Insurers
An unauthorized insurer may only become an eligible surplus lines insurer if it meets the following
requirements:19
The insurer must currently be an authorized insurer in its state or country of domicile as to the
kinds of insurance it would transact in Florida. In general, the insurer must have transacted such
insurance for 3 years in its state of domicile.20 However, OIR may waive this requirement if the
insurer has capital and surplus of at least $25 million and either is offering a product not readily
available in Florida or has operated successfully for at least the immediately preceding year.21
OIR receives an authenticated copy of its current annual financial statement. 22
The insurer must maintain surplus as to policyholders of not less than $15 million,23 with the
exception of:
o Insurance exchanges created by the laws of a state, if they meet the state’s capital and
surplus requirements or maintain a capital and surplus of at least $50 million; 24 and
o A surplus lines insurer that is a member of an insurance holding company that includes a
member which is a Florida domestic insurer, may instead meet the surplus and capital
requirements applicable to authorized insurers under s. 624.408, F.S., and must comply
with ch. 625, F.S., regarding accounting, investments, and deposits by insurers. 25
12 S. 626.916(1)(a), F.S.
13 Id.
14 S. 626.914(4), F.S.
15 Id.
16 S. 626.916(1)(b), F.S.
17 S. 626.916(1)(c), F.S.
18 S. 626.916(1)(d), F.S.
19 S. 626.918, F.S.
20 Id. Alternatively, the insurer may be a wholly owned subsidiary of such an insurer.
21 Id.
22 S. 626.918(2)(b), F.S.
23 S. 626.918(2)(c), F.S. An alien insurer (insurer domiciled in a foreign country) must also have and maintain a trust fund
in the United States under terms approved by OIR, in an account of at least $5.4 million.
24 S. 626.918(2)(c)1.c., F.S.
25 S. 626.918(2)(c)1.d., F.S.
STORAGE NAME: h0951d.COM PAGE: 3
DATE: 2/21/2022
The insurer must have a good reputation regarding service to its policyholders and payment of
losses and claims.26
The management, officers, and directors of the insurer must meet the requirements of
competence and trustworthiness required by s. 624.404(3), F.S. 27
The Surplus Lines Law specifies that OIR does not have any duty to determine the actual financial
condition or claims practices of any unauthorized insurer. 28 OIR, when determining whether a surplus
lines insurer is eligible bases that decision on the insurer appearing to be financially sound and having
satisfactory claims practices, and not having any credible evidence to the contrary. 29
Requirement to Place Surplus Lines Insurance Through a Licensed Florida Surplus Lines Agent
A Florida-licensed surplus lines insurance agent must place surplus lines insurance policies.30 A
Florida-licensed general lines agent may obtain licensure as a surplus lines agent if such an agent has
at least 1 year of experience working for a licensed surplus lines agent or successfully completes at
least 60 class hours in surplus and excess lines and passes a licensure exam. 31 This licensure is solely
for the purpose of placing property, marine, casualty, or surety coverages originated by general lines
agents with surplus lines insurers.32
Nonresidents licensed in their home state as resident general lines and surplus lines agents may obtain
licensure as nonresident surplus lines agents if their home states have similar licensure requirements
as Florida and provide reciprocity regarding residents of Florida obtaining licensure as nonresident
surplus lines agents in those states.33
Mandatory Disclosures
Surplus lines agents must disclose in writing that surplus lines insurance carriers do not have the
protection of the Florida Insurance Guaranty Association Act34 and that surplus lines rates and policy
forms are not subject to regulation by any Florida agency. 35 When a policy is exported to surplus lines,
the insured must also sign or provide documented knowledge of the following disclosure:
You are agreeing to place coverage in the surplus lines market. Coverage may be
available in the admitted market. Persons insured by surplus lines carriers are not
protected under the Florida Insurance Guaranty [Association] Act with respect to
any right of recovery for the obligation of an insolvent unlicensed insurer.36
The Florida Surplus Lines Service Office (FSLSO)
The FSLSO is a self-regulating, nonprofit association designed to act as a “self-regulating organization”
to permit better access by consumers to approved surplus lines insurers.37 The FSLSO’s
responsibilities include monitoring activities and compliance of the licensed surplus lines agents
conducting business in Florida and of the eligible surplus lines insurers. 38 All Florida-licensed surplus
lines agents are deemed members of the FSLSO and must register with it. 39
26 S. 626.918(2)(d), F.S.
27 S. 626.918(2)(e), F.S.
28 S. 626.918(4), F.S.
29 Id.
30 See s. 926.927, F.S.
31 Id.
32 Id.
33 S. 626.9272, F.S.
34 Ss. 631.50– 631.70, F.S., are known as the Florida Insurance Guaranty Association Act, and establish the framework
for the Florida Insurance Guaranty Association.
35 S. 626.924, F.S.
36 S. 626.916(1)(e), F.S.
37 S. 626.921, F.S.
38 See id.
39 S. 626.921(2), F.S.
STORAGE NAME: h0951d.COM PAGE: 4
DATE: 2/21/2022
The FSLSO must conduct the following activities:
Receive, record and review all surplus lines insurance policies;
Maintain records of the policies reported to the FSLSO and prepare reports as required by the
Financial Services Commission;40
Prepare and deliver to each surplus lines agent quarterly reports of each agent’s business;
Collect and remit surplus lines tax to the Department of Financial Services;
Reconcile the policies provided by non-admitted insurers with the policies reports to the FSLSO
by agents; and
Other activities specified by statute.41
Domestic Surplus Lines Insurance
Historically, surplus lines insurers generally are not permitted to write surplus lines insurance in their
states of domicile. However, some states have enacted laws authorizing domestic surplus lines
insurers (DSLI) in recent years. These are surplus lines insurers that offer surplus lines policies in their
states of domicile.
Prior to the creation of laws allowing DSLI, a surplus lines insurer seeking to transact surplus lines in its
state of domicile had to form a second company domiciled in a different state which would then offer
surplus lines policies in the original insurer’s state of domicile. Over 20 states have authorized DSLI.42
A review of the state laws authorizing DSLI show that laws authorizing the formation of domestic
surplus lines insurance often have certain requirements in common:
The DSLI must meet a policyholder surplus requirement, usually $15 million or $20 million;
The DSLI must be an eligible surplus lines insurer in at least one jurisdiction other than its state
of domicile;
The board of directors of the DSLI must pass a resolution seeking to be a DSLI; and
The insurance commissioner of the DSLI must make it eligible in its state of domicile.
Certain commonalities are also present regarding how state and federal insurance laws generally
applicable to authorized insurers apply to DSLI:
DSLI are subject to the state’s solvency requirements for authorized domestic insurers, unless a
DSLI is specifically exempted;
DSLI are exempt from requirements relating to rates, forms, and policy cancellations;
Policies written by DSLI must be placed on the surplus lines market in accordance with the
requirements of the state’s surplus lines law; and
Policies written by DSLI are not covered by any of the state’s guaranty associations.
The number of DSLIs has increased from 15 in 2011, to over 70, with the majority domiciled in Illinois or
Delaware.43
Federal Nonadmitted and Reinsurance Reform Act of 2010 (NRRA)
Pursuant to the NRRA, the surplus lines insurance and surplus lines brokers are subject only to the
statutory and regulatory requirements of the insured’s home state. 44 The NRRA provides that only the
home state of an insured may require any premium tax payment for surplus lines insurance. 45 States
40 The Financial Services Commission consists of the Governor, the Chief Financial Officer, the Attorney General, and the
Commissioner of Agriculture. S. 20.121, F.S.
41 See generally s. 626.921(3), F.S.
42 See e.g., Arizona (s. 20-407.01, Az. S.), Texas (s. 981.071-981.074, Tex. Ins. Code), and Vermont (s. 8 V.S.A. s.
5023a).
43 John N. Emmanuel and Zachary N. Lerner, Lock e Lord Excess and Surplus Lines Laws Manual, p. 1.6 (2021),
https://surplusmanual.lockelord.com/ (last visited Feb. 02, 2022).
44 15 U.S.C. § 8202.
45 15 U.S.C. § 8201(a).
STORAGE NAME: h0951d.COM PAGE: 5
DATE: 2/21/2022
are authorized to establish procedures to allocate tax revenues properly to other states for multi-state
risks and an insured’s home state may require surplus lines brokers and insureds to file annual tax
allocation reports detailing the portion of the policy premium attributable to the exposure located each in
state.
States must participate in the National Association of Insurance Commissioners’ (NAIC) database or an
equivalent uniform national database for the licensure of surplus lines brokers, and a state that does
not participate is prohibited from collecting fees related to licensing surplus lines brokers. 46 Unless a
state adopts requirements that comply with the NRRA’s requirements regarding allocation of
nonadmitted premium taxes that include alternative nationwide uniform eligibility requirements, the
eligibility requirements for a state’s surplus lines insurers must conform to the NAIC’s Non-Admitted
Insurance Model Act.47 The NRRA also prohibits state laws from requiring a due diligence search to
determine if the insurance can be obtained from an admitted insurer before placing a risk for an exempt
commercial purchaser48 on the surplus lines market if certain disclosures are made.49
Florida Insurance Guaranty Association (FIGA)
FIGA provides a “mechanism for the payment of covered claims under certain insurance policies to
avoid excessive delay in payment and to avoid financial loss to claimants or policyholders because of
the insolvency of an insurer.”50 It issues guaranty fund payments and provides related services for all
lines of property and casualty insurance51 with certain exceptions.52 FIGA is only obligated to pay the
portions of claims made to insolvent property and casualty insurers, which are less than $300,000. 53
For policies providing homeowners insurance, FIGA provides for up to an additional $200,000 for the
portion of a covered claim, which relates to damage to structure and contents. 54
Florida Life and Health Insurance Guaranty Association (FLAHIGA)
FLAHIGA exists to “protect policyholders, insureds, beneficiaries, annuitants, payees, and assignees of
life insurance policies, health insurance policies, annuity contracts, and supplemental contracts, subject
to certain limitations, against the future of an insurer issuing such policies or contracts to perform its
contractual obligations due to its impairment or insolvency.” 55 The maximum obligation of FLAHIGA to
provide payment for any covered claim or policy is the following:
For life insurance, $100,000 in net cash surrender and net cash withdrawal values.
For deferred annuity contracts, $250,000 in net cash surrender and net cash withdrawal values.
For basic hospital expense health insurance policies, basic medical-surgical health insurance
policies, or major medical expense health insurance policies, but not including long-term care
policies, $500,000.
For all other benefits, including in long-term care policies, $300,000, including cash values.56
Florida Workers’ Compensation Insurance Guaranty Association (FWCIGA)
FWCIGA “provides a mechanism for the payment of covered claims” under ch. 440, F.S., to avoid delay
46 15 U.S.C. § 8203.
47 15 U.S.C. § 8204.
48 15 U.S.C. § 8206(5) defines a commercial purchaser as a person purchasing commercial insurance if such person has
a qualified risk manager to negotiate insurance coverage, has paid nationwide property and casualty insurance premiums
in excess of $100,000 in the preceding 12 months, and meets one of five specified requirements regarding net worth,
annual revenues, number of employees, not-for-profit annual budgeted expenditures, or status as a municipality.
49 15 U.S.C. § 8205.
50 S. 631.51, F.S.
51 S. 631.57(3)(a), F.S. As established in s. 632.52, F.S., FIGA covers “all kinds of direct insurance” with certain
exceptions, such as life, annuity, health, disability, workers’ compensation, and surplus lines insurance.
52 Id.
53 S. 631.57(1), F.S.
54 Id.
55 S. 631.712, F.S.
56 S. 631.717(12), F.S.
STORAGE NAME: h0951d.COM PAGE: 6
DATE: 2/21/2022
and financial loss to claimants due to the insolvency of a workers’ compensation insurer. 57 FWCIGA
services workers’ compensation claims against insolvent workers’ compensation insurers 58 and self-
insurance funds.59 For purposes of FWCIGA, “covered claim” includes unpaid claims under any
employer liability coverage of a workers’ compensation policy limited to the lesser of $300,000 or the
limits of the policy.60
Effect of the Bill
The bill defines “domestic surplus lines insurer” as a nonadmitted insurer domiciled in this state that
OIR has authorized to write surplus lines insurance. The bill creates a statutory framework to allow a
DSLI to issue surplus lines policies in this state, in addition to issuing policies in other jurisdictions, by
establishing the following:
The term “nonadmitted insurer” has the same meaning as provided in the NRRA.
A nonadmitted insurer possessing a policyholder surplus of at least $15 million may be
authorized to transact insurance as a DSLI under a resolution by its board and with approval of
OIR.
Such nonadmitted insurers are authorized to write surplus lines insurance in any jurisdiction,
including this state, and that this authorization is not contingent upon holding a certificate of
authority.
A DSLI shall be deemed an eligible surplus lines insurer and be included in the list of eligible
surplus lines insurers required under current statutes.
Eligible surplus lines insurers may write any kind of insurance that unauthorized insurers not
domiciled in this state are eligible to write.
A DSLI is an unauthorized insurer for the purposes of writing surplus lines insurance under the
Surplus Lines Law.
A DSLI is a nonadmitted insurer for the purposes of the federal NRRA.
A DSLI may only write surplus lines insurance in Florida and may only sell policies through a
surplus lines agent.
Unless specifically exempt, a DSLI is subject to all financial and solvency requirements imposed
on admitted domestic insurers under state law. However, a DSLI is exempt from the surplus
requirements applied to admitted insurers.61
A policy issued by a DSLI is exempt from all statutory requirements relating to insurance rating,
policy forms, premiums, cancellations, nonrenewals, and renewals, and from any other statutory
requirements that do not apply to surplus lines policies issued by surplus lines insurers
domiciled in another state.
A policy issued by a DSLI is subject to taxes assessed on surplus lines policies issued by
nonadmitted insurers, including surplus lines premium taxes, but it is not subject to other taxes
levied upon domestic or foreign admitted insurers.
A policy issued by a DSLI is not subject to the protections or requirements of FIGA, FLAHIGA,
or FWCIGA.
The bill also contains technical amendments to several statutes to conform cross -references to this
new statutory framework.
57 S. 631.902, F.S.
58 “Insurer means an insurance carrier or self-insurance fund authorized to insure under ch. 440, F.S. For the purposes of
this act, ‘insurer’ does not include a qualified local government self-insurance fund, as defined in s. 624.4622 or an
individual self-insurer as defined in s. 440.385.” S. 631.904(5), F.S.
59 “‘Self-insurance fund’ means a group self-insurance fund authorized under s. 624.4621, a commercial self-insurance
fund writing workers’ compensation insurance authorized under s. 624.462, or an assessable mutual insurer authorized
under s. 628.6011. For purposes of this act, the term “self-insurance fund” does not include a qualified local government
self-insurance fund, as defined in s. 624.4622, an independent educational institution self-insurance fund as defined in s.
624.4623, an electric cooperative self-insurance fund as described in s. 624.4626, or an individual self-insurer as defined
in s. 440.385.” S. 631.904(6), F.S.
60 S. 631.904(2), F.S.
61 These requirements are set forth in s. 624.408, F.S.
STORAGE NAME: h0951d.COM PAGE: 7
DATE: 2/21/2022
B. SECTION DIRECTORY:
Section 1. Amends s. 626.914, F.S., relating to definitions.
Section 2. Creates s. 626.91805, F.S., relating to domestic surplus lines insurers.
Section 3. Amends s. 458.320, F.S., relating to financial responsibility.
Section 4. Amends s. 459.0085, F.S., relating to financial responsibility.
Section 5. Amends s. 464.0123, F.S., relating to autonomous practice by an advanced practice
registered nurse.
Section 6. Amends s. 629.401, F.S., relating to insurance exchange.
Section 7. Provides an effective date of July 1, 2022.
II. FISCAL ANALYSIS & ECONOMIC IMPACT STATEMENT
A. FISCAL IMPACT ON STATE GOVERNMENT:
1. Revenues:
The Revenue Estimating Conference has not estimated the potential revenue impacts of the bill.
Staff estimates that the bill may have a positive/negative indeterminate impact on General Revenue
and state trust fund revenue. The potential revenue impacts may be indirect. The impact may be
positive if the bill leads to additional policies being written in the state, resulting in increased surplus
lines tax collections. The impact may be negative if additional competition leads to lower premium
rates overall, resulting in decreased surplus lines tax collections.
2. Expenditures:
None.
B. FISCAL IMPACT ON LOCAL GOVERNMENTS:
1. Revenues:
None.
2. Expenditures:
None.
C. DIRECT ECONOMIC IMPACT ON PRIVATE SECTOR:
To the extent that consumers have additional options for coverage from surplus lines carriers which
results in more competitive insurance rates, the bill may have a positive indeterminate impact on the
private sector.
D. FISCAL COMMENTS:
None.
III. COMMENTS
A. CONSTITUTIONAL ISSUES:
STORAGE NAME: h0951d.COM PAGE: 8
DATE: 2/21/2022
1. Applicability of Municipality/County Mandates Provision:
Not applicable. The bill does not appear to affect county or municipal governments.
2. Other:
None.
B. RULE-MAKING AUTHORITY:
The bill neither authorizes nor requires administrative rulemaking.
C. DRAFTING ISSUES OR OTHER COMMENTS:
None.
IV. AMENDMENTS/COMMITTEE SUBSTITUTE CHANGES
STORAGE NAME: h0951d.COM PAGE: 9
DATE: 2/21/2022
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 951 2022
1 A bill to be entitled
2 An act relating to domestic surplus lines insurers;
3 amending s. 626.914, F.S.; revising the definition of
4 the term "eligible surplus lines insurer" to include
5 domestic surplus lines insurers; defining the term
6 "domestic surplus line insurer"; creating s.
7 626.91805, F.S.; defining the term "nonadmitted
8 insurer"; authorizing specified nonadmitted insurers
9 to transact insurance as domestic surplus lines
10 insurers under certain circumstances; authorizing such
11 insurers to write surplus lines insurance in any
12 jurisdiction; providing that such authorization is not
13 contingent on the existence of a certificate of
14 authority; requiring domestic surplus lines insurers
15 to be deemed eligible surplus lines insurers and to be
16 included in the list of eligible surplus lines
17 insurers; authorizing such insurers to write certain
18 kinds of insurance; requiring domestic surplus lines
19 insurers to be considered unauthorized insurers for
20 specified purposes; requiring domestic surplus lines
21 insurers to be considered nonadmitted insurers for
22 specified purposes; authorizing domestic surplus lines
23 insurers to write only surplus lines insurance;
24 limiting the circumstances under which such insurers
25 may write surplus lines insurance; providing
Page 1 of 44
CODING: Words stricken are deletions; words underlined are additions.
hb0951-00
F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
HB 951 2022
26 applicability of specified financial and solvency
27 requirements to domestic surplus lines insurers;
28 providing an exception; providing an exemption from a
29 specified law for domestic surplus lines insurers;
30 providing exemptions from specified requirements for
31 surplus lines insurance policies issued by such
32 insurers; providing that such policies are subject to
33 specified taxes but are not subject to certain other
34 taxes; providing that such policies are not subject to
35 the protections and requirements of specified acts;
36 amending ss. 458.320, 459.0085, and 464.0123, F.S.;
37 conforming cross-references; amending s. 629.401,
38 F.S.; specifying cross-references; providing an
39 effective date.
40
41 Be It Enacted by the Legislature of the State of Florida:
42
43 Section 1. Section 626.914, Florida Statutes, is amended
44 to read:
45 626.914 Definitions.—As used in this Surplus Lines Law,
46 the term:
47 (1)(4) "Diligent effort" means seeking coverage from and
48 having been rejected by at least three authorized insurers
49 currently writing this type of coverage and documenting these
50 rejections. However, if the residential structure has a dwelling
Page 2 of 44
CODING: Words stricken are deletions; words underlined are additions.
hb0951-00
F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
HB 951 2022
51 replacement cost of $700,000 or more, the term means seeking
52 coverage from and having been rejected by at least one
53 authorized insurer currently writing this type of coverage and
54 documenting this rejection.
55 (2) "Domestic surplus lines insurer" means a nonadmitted
56 insurer domiciled in this state that has been authorized by the
57 office to write surplus lines insurance.
58 (3)(2) "Eligible surplus lines insurer" means:
59 (a) An unauthorized insurer that which has been made
60 eligible by the office to issue insurance coverage under this
61 Surplus Lines Law; or
62 (b) A domestic surplus lines insurer.
63 (4)(3) "Export" "To export" means to place, in an
64 unauthorized insurer under this Surplus Lines Law, insurance
65 covering a subject of insurance resident, located, or to be
66 performed in this state.
67 (5)(1) "Surplus lines agent" means an individual licensed
68 as provided in this part to handle the placement of insurance
69 coverages with unauthorized insurers and to place such coverages
70 with authorized insurers as to which the licensee is not
71 licensed as an agent.
72 Section 2. Section 626.91805, Florida Statutes, is created
73 to read:
74 626.91805 Domestic surplus lines insurers.—
75 (1) As used in this section, the term "nonadmitted
Page 3 of 44
CODING: Words stricken are deletions; words underlined are additions.
hb0951-00
F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
HB 951 2022
76 insurer" has the same meaning as provided in the federal
77 Nonadmitted and Reinsurance Reform Act of 2010.
78 (2) Notwithstanding any other law, a nonadmitted insurer
79 possessing a policyholder surplus of at least $15 million may,
80 under a resolution by its board of directors and with the
81 written approval of the office, be authorized to transact
82 insurance as a domestic surplus lines insurer. Such insurers are
83 authorized to write surplus lines insurance in any jurisdiction,
84 including this state, and such authorization is not contingent
85 on the company's holding of an existing certificate of
86 authority.
87 (3) Notwithstanding s. 626.918(2), a domestic surplus
88 lines insurer shall be deemed an eligible surplus lines insurer
89 and shall be included in the list of eligible surplus lines
90 insurers required by s. 626.918(3). Eligible surplus lines
91 insurers listed in s. 626.918(3) may write any kind of insurance
92 that an unauthorized insurer not domiciled in this state is
93 eligible to write.
94 (4) For purposes of writing surplus lines insurance
95 pursuant to the Surplus Lines Law, a domestic surplus lines
96 insurer shall be considered an unauthorized insurer.
97 (5) For purposes of the federal Nonadmitted and
98 Reinsurance Reform Act of 2010, a domestic surplus lines insurer
99 shall be considered a nonadmitted insurer.
100 (6) A domestic surplus lines insurer may write only
Page 4 of 44
CODING: Words stricken are deletions; words underlined are additions.
hb0951-00
F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
HB 951 2022
101 surplus lines insurance in this state and only if procured from
102 a surplus lines agent pursuant to the Surplus Lines Law.
103 (7) All financial and solvency requirements imposed by
104 this state's laws on admitted domestic insurers apply to
105 domestic surplus lines insurers unless domestic surplus lines
106 insurers are otherwise specifically exempted.
107 (8) A domestic surplus lines insurer is exempt from s.
108 624.408.
109 (9) A surplus lines insurance policy issued by a domestic
110 surplus lines insurer is exempt from all statutory requirements
111 relating to insurance rating and rating plans; policy forms;
112 premiums charged to insureds; policy cancellation, nonrenewal,
113 and renewal; and other statutory requirements in the same manner
114 and to the same extent as surplus lines policies issued by a
115 surplus lines insurer domiciled in another state.
116 (10) Notwithstanding any other law, a policy issued by a
117 domestic surplus lines insurer is subject to taxes assessed upon
118 surplus lines policies issued by nonadmitted insurers, including
119 surplus lines premium taxes, but is not subject to other taxes
120 levied upon admitted insurers, whether domestic or foreign.
121 (11) A policy issued by a domestic surplus lines insurer
122 is not subject to the protections or requirements of the Florida
123 Insurance Guaranty Association Act, the Florida Life and Health
124 Insurance Guaranty Association Act, or the Florida Workers'
125 Compensation Insurance Guaranty Association Act.
Page 5 of 44
CODING: Words stricken are deletions; words underlined are additions.
hb0951-00
F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
HB 951 2022
126 Section 3. Paragraph (b) of subsection (1) and paragraph
127 (b) of subsection (2) of section 458.320, Florida Statutes, are
128 amended to read:
129 458.320 Financial responsibility.—
130 (1) As a condition of licensing and maintaining an active
131 license, and prior to the issuance or renewal of an active
132 license or reactivation of an inactive license for the practice
133 of medicine, an applicant must by one of the following methods
134 demonstrate to the satisfaction of the board and the department
135 financial responsibility to pay claims and costs ancillary
136 thereto arising out of the rendering of, or the failure to
137 render, medical care or services:
138 (b) Obtaining and maintaining professional liability
139 coverage in an amount not less than $100,000 per claim, with a
140 minimum annual aggregate of not less than $300,000, from an
141 authorized insurer as defined under s. 624.09, from a surplus
142 lines insurer as defined under s. 626.914 s. 626.914(2), from a
143 risk retention group as defined under s. 627.942, from the Joint
144 Underwriting Association established under s. 627.351(4), or
145 through a plan of self-insurance as provided in s. 627.357. The
146 required coverage amount set forth in this paragraph may not be
147 used for litigation costs or attorney's fees for the defense of
148 any medical malpractice claim.
149 (2) Physicians who perform surgery in an ambulatory
150 surgical center licensed under chapter 395 and, as a continuing
Page 6 of 44
CODING: Words stricken are deletions; words underlined are additions.
hb0951-00
F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
HB 951 2022
151 condition of hospital staff privileges, physicians who have
152 staff privileges must also establish financial responsibility b y
153 one of the following methods:
154 (b) Obtaining and maintaining professional liability
155 coverage in an amount not less than $250,000 per claim, with a
156 minimum annual aggregate of not less than $750,000 from an
157 authorized insurer as defined under s. 624.09, from a surplus
158 lines insurer as defined under s. 626.914 s. 626.914(2), from a
159 risk retention group as defined under s. 627.942, from the Joint
160 Underwriting Association established under s. 627.351(4),
161 through a plan of self-insurance as provided in s. 627.357, or
162 through a plan of self-insurance which meets the conditions
163 specified for satisfying financial responsibility in s. 766.110.
164 The required coverage amount set forth in this paragraph may not
165 be used for litigation costs or attorney's fees for the defense
166 of any medical malpractice claim.
167
168 This subsection shall be inclusive of the coverage in subsection
169 (1).
170 Section 4. Paragraph (b) of subsection (1) and paragraph
171 (b) of subsection (2) of section 459.0085, Florida Statutes, are
172 amended to read:
173 459.0085 Financial responsibility.—
174 (1) As a condition of licensing and maintaining an active
175 license, and prior to the issuance or renewal of an active
Page 7 of 44
CODING: Words stricken are deletions; words underlined are additions.
hb0951-00
F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
HB 951 2022
176 license or reactivation of an inactive license for the practice
177 of osteopathic medicine, an applicant must by one of the
178 following methods demonstrate to the satisfaction of the board
179 and the department financial responsibility to pay claims and
180 costs ancillary thereto arising out of the rendering of, or the
181 failure to render, medical care or services:
182 (b) Obtaining and maintaining professional liability
183 coverage in an amount not less than $100,000 per claim, with a
184 minimum annual aggregate of not less than $300,000, from an
185 authorized insurer as defined under s. 624.09, from a surplus
186 lines insurer as defined under s. 626.914 s. 626.914(2), from a
187 risk retention group as defined under s. 627.942, from the Joint
188 Underwriting Association established under s. 627.351(4), or
189 through a plan of self-insurance as provided in s. 627.357. The
190 required coverage amount set forth in this paragraph may not be
191 used for litigation costs or attorney's fees for the defense of
192 any medical malpractice claim.
193 (2) Osteopathic physicians who perform surgery in an
194 ambulatory surgical center licensed under chapter 395 and, as a
195 continuing condition of hospital staff privileges, osteopathic
196 physicians who have staff privileges must also establish
197 financial responsibility by one of the following methods:
198 (b) Obtaining and maintaining professional liability
199 coverage in an amount not less than $250,000 per claim, with a
200 minimum annual aggregate of not less than $750,000 from an
Page 8 of 44
CODING: Words stricken are deletions; words underlined are additions.
hb0951-00
F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
HB 951 2022
201 authorized insurer as defined under s. 624.09, from a surplus
202 lines insurer as defined under s. 626.914 s. 626.914(2), from a
203 risk retention group as defined under s. 627.942, from the Joint
204 Underwriting Association established under s. 627.351(4),
205 through a plan of self-insurance as provided in s. 627.357, or
206 through a plan of self-insurance that meets the conditions
207 specified for satisfying financial responsibility in s. 766.110.
208 The required coverage amount set forth in this paragraph may not
209 be used for litigation costs or attorney's fees for the defense
210 of any medical malpractice claim.
211
212 This subsection shall be inclusive of the coverage in subsection
213 (1).
214 Section 5. Paragraph (a) of subsection (2) of section
215 464.0123, Florida Statutes, is amended to read:
216 464.0123 Autonomous practice by an advanced practice
217 registered nurse.—
218 (2) FINANCIAL RESPONSIBILITY.—
219 (a) An advanced practice registered nurse registered under
220 this section must, by one of the following methods, demonstrate
221 to the satisfaction of the board and the department financial
222 responsibility to pay claims and costs ancillary thereto arising
223 out of the rendering of, or the failure to render, nursing care,
224 treatment, or services:
225 1. Obtaining and maintaining professional liability
Page 9 of 44
CODING: Words stricken are deletions; words underlined are additions.
hb0951-00
F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
HB 951 2022
226 coverage in an amount not less than $100,000 per claim, with a
227 minimum annual aggregate of not less than $300,000, from an
228 authorized insurer as defined in s. 624.09, from a surplus lines
229 insurer as defined in s. 626.914 s. 626.914(2), from a risk
230 retention group as defined in s. 627.942, from the Joint
231 Underwriting Association established under s. 627.351(4), or
232 through a plan of self-insurance as provided in s. 627.357; or
233 2. Obtaining and maintaining an unexpired, irrevocable
234 letter of credit, established pursuant to chapter 675, in an
235 amount of not less than $100,000 per claim, with a minimum
236 aggregate availability of credit of not less than $300,000. T he
237 letter of credit must be payable to the advanced practice
238 registered nurse as beneficiary upon presentment of a final
239 judgment indicating liability and awarding damages to be paid by
240 the advanced practice registered nurse or upon presentment of a
241 settlement agreement signed by all parties to such agreement
242 when such final judgment or settlement is a result of a claim
243 arising out of the rendering of, or the failure to render,
244 nursing care and services.
245 Section 6. Paragraph (b) of subsection (6) of sec tion
246 629.401, Florida Statutes, is amended to read:
247 629.401 Insurance exchange.—
248 (6)
249 (b) In addition to the insurance laws specified in
250 paragraph (a), the office shall regulate the exchange pursuant
Page 10 of 44
CODING: Words stricken are deletions; words underlined are additions.
hb0951-00
F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
HB 951 2022
251 to the following powers, rights, and duties:
252 1. General examination powers.—The office shall examine
253 the affairs, transactions, accounts, records, and assets of any
254 security fund, exchange, members, and associate brokers as often
255 as it deems advisable. The examination may be conducted by the
256 accredited examiners of the office at the offices of the entity
257 or person being examined. The office shall examine in like
258 manner each prospective member or associate broker applying for
259 membership in an exchange.
260 2. Office approval and applications of underwriting
261 members.—No underwriting member shall commence operation without
262 the approval of the office. Before commencing operation, an
263 underwriting member shall provide a written application
264 containing:
265 a. Name, type, and purpose of the underwriting member.
266 b. Name, residence address, business background, and
267 qualifications of each person associated or to be associated in
268 the formation or financing of the underwriting member.
269 c. Full disclosure of the terms of all understandings and
270 agreements existing or proposed among persons so associated
271 relative to the underwriting member, or the formation or
272 financing thereof, accompanied by a copy of each such agreement
273 or understanding.
274 d. Full disclosure of the terms of all understandings and
275 agreements existing or proposed for management or exclusive
Page 11 of 44
CODING: Words stricken are deletions; words underlined are additions.
hb0951-00
F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
HB 951 2022
276 agency contracts.
277 3. Investigation of underwriting member applications.—In
278 connection with any proposal to establish an underwriting
279 member, the office shall make an investigation of:
280 a. The character, reputation, financial standing, and
281 motives of the organizers, incorporators, or subscribers
282 organizing the proposed underwriting member.
283 b. The character, financial responsibility, insurance
284 experience, and business qualifications of its proposed
285 officers.
286 c. The character, financial responsibility, business
287 experience, and standing of the proposed stockholders and
288 directors, or owners.
289 4. Notice of management changes.—An underwriting member
290 shall promptly give the office written notice of any change
291 among the directors or principal officers of the underwriting
292 member within 30 days after such change. The office shall
293 investigate the new directors or principal officers of the
294 underwriting member. The office's investigation shall include an
295 investigation of the character, financial responsibility,
296 insurance experience, and business qualifications of any new
297 directors or principal officers. As a result of the
298 investigation, the office may require the underwriting member to
299 replace any new directors or principal officers.
300 5. Alternate financial statement.—In lieu of any financial
Page 12 of 44
CODING: Words stricken are deletions; words underlined are additions.
hb0951-00
F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
HB 951 2022
301 examination, the office may accept an audited financial
302 statement.
303 6. Correction and reconstruction of records.—If the office
304 finds any accounts or records to be inadequate, or inadequately
305 kept or posted, it may employ experts to reconstruct, rewrite,
306 post, or balance them at the expense of the person or entity
307 being examined if such person or entity has failed to maintain,
308 complete, or correct such records or accounts after the office
309 has given him or her or it notice and reasonable opportunity to
310 do so.
311 7. Obstruction of examinations.—Any person or entity who
312 or which willfully obstructs the office or its examiner in an
313 examination is guilty of a misdemeanor of the second degree,
314 punishable as provided in s. 775.082 or s. 775.083.
315 8. Filing of annual statement.—Each underwriting member
316 shall file with the office a full and true statement of its
317 financial condition, transactions, and affairs. The statement
318 shall be filed on or before March 1 of each year, or within such
319 extension of time as the office for good cause grants, and shall
320 be for the preceding calendar year. The statement shall contain
321 information generally included in insurer financial statements
322 prepared in accordance with generally accepted insurance
323 accounting principles and practices and in a form generally
324 utilized by insurers for financial statements, sworn to by at
325 least two executive officers of the underwriting member. The
Page 13 of 44
CODING: Words stricken are deletions; words underlined are additions.
hb0951-00
F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
HB 951 2022
326 form of the financial statements shall be the approved form of
327 the National Association of Insurance Commissioners or its
328 successor organization. The commission may by rule require each
329 insurer to submit any part of the information contained in the
330 financial statement in a computer-readable form compatible with
331 the office's electronic data processing system. In addition to
332 information furnished in connection with its annual statement,
333 an underwriting member must furnish to the office as soon as
334 reasonably possible such information about its transactions or
335 affairs as the office requests in writing. All information
336 furnished pursuant to the office's request must be verified by
337 the oath of two executive officers of the underwriting member.
338 9. Record maintenance.—Each underwriting member shall have
339 and maintain its principal place of business in this state and
340 shall keep therein complete records of its assets, transactions,
341 and affairs in accordance with such methods and systems as are
342 customary for or suitable to the kind or kinds of insurance
343 transacted.
344 10. Examination of agents.—If the department has reason to
345 believe that any agent, as defined in s. 626.015 or s.
346 626.914(5) s. 626.914, has violated or is violating any
347 provision of the insurance law, or upon receipt of a written
348 complaint signed by any interested person indicating that any
349 such violation may exist, the department shall conduct such
350 examination as it deems necessary of the accounts, records,
Page 14 of 44
CODING: Words stricken are deletions; words underlined are additions.
hb0951-00
F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
HB 951 2022
351 documents, and transactions pertaining to or affecting the
352 insurance affairs of such agent.
353 11. Written reports of office.—The office or its examiner
354 shall make a full and true written report of any examination.
355 The report shall contain only information obtained from
356 examination of the records, accounts, files, and documents of or
357 relative to the person or entity examined or from testimony of
358 individuals under oath, together with relevant conclusions and
359 recommendations of the examiner based thereon. The office shall
360 furnish a copy of the report to the person or entity examined
361 not less than 30 days prior to filing the report in its office.
362 If such person or entity so requests in writing within such 30-
363 day period, the office shall grant a hearing with respect to the
364 report and shall not file the report until after the hearing and
365 after such modifications have been made therein as the office
366 deems proper.
367 12. Admissibility of reports.—The report of an examination
368 when filed shall be admissible in evidence in any action or
369 proceeding brought by the office against the person or entity
370 examined, or against his or her or its officers, employees, or
371 agents. The office or its examiners may at any time testify and
372 offer other proper evidence as to information secured or matters
373 discovered during the course of an examination, whether or not a
374 written report of the examination has been either made,
375 furnished, or filed in the office.
Page 15 of 44
CODING: Words stricken are deletions; words underlined are additions.
hb0951-00
F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
HB 951 2022
376 13. Publication of reports.—After an examination report
377 has been filed, the office may publish the results of any such
378 examination in one or more newspapers published in this state
379 whenever it deems it to be in the public interest.
380 14. Consideration of examination reports by entity
381 examined.—After the examination report of an underwriting member
382 has been filed, an affidavit shall be filed with the office, not
383 more than 30 days after the report has been filed, on a form
384 furnished by the office and signed by the person or a
385 representative of any entity examined, stating that the report
386 has been read and that the recommendations made in the report
387 will be considered within a reasonable time.
388 15. Examination costs.—Each person or entity examined by
389 the office shall pay to the office the expenses incurred in such
390 examination.
391 16. Exchange costs.—An exchange shall reimburse the office
392 for any expenses incurred by it relating to the regulation of
393 the exchange and its members, except as specified in
394 subparagraph 15.
395 17. Powers of examiners.—Any examiner appointed by the
396 office, as to the subject of any examination, investigation, or
397 hearing being conducted by him or her, may administ er oaths,
398 examine and cross-examine witnesses, and receive oral and
399 documentary evidence, and shall have the power to subpoena
400 witnesses, compel their attendance and testimony, and require by
Page 16 of 44
CODING: Words stricken are deletions; words underlined are additions.
hb0951-00
F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
HB 951 2022
401 subpoena the production of books, papers, records, files,
402 correspondence, documents, or other evidence which the examiner
403 deems relevant to the inquiry. If any person refuses to comply
404 with any such subpoena or to testify as to any matter concerning
405 which he or she may be lawfully interrogated, the Circuit Court
406 of Leon County or the circuit court of the county wherein such
407 examination, investigation, or hearing is being conducted, or of
408 the county wherein such person resides, on the office's
409 application may issue an order requiring such person to comply
410 with the subpoena and to testify; and any failure to obey such
411 an order of the court may be punished by the court as a contempt
412 thereof. Subpoenas shall be served, and proof of such service
413 made, in the same manner as if issued by a circuit court.
414 Witness fees and mileage, if claimed, shall be allowed the same
415 as for testimony in a circuit court.
416 18. False testimony.—Any person willfully testifying
417 falsely under oath as to any matter material to any examination,
418 investigation, or hearing shall upon conviction thereof be
419 guilty of perjury and shall be punished accordingly.
420 19. Self-incrimination.—
421 a. If any person asks to be excused from attending or
422 testifying or from producing any books, papers, records,
423 contracts, documents, or other evidence in connection with any
424 examination, hearing, or investigation being conducted by the
425 office or its examiner, on the ground that the testimony or
Page 17 of 44
CODING: Words stricken are deletions; words underlined are additions.
hb0951-00
F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
HB 951 2022
426 evidence required of the person may tend to incriminate him or
427 her or subject him or her to a penalty or forfeiture, and the
428 person notwithstanding is directed to give such testimony or
429 produce such evidence, he or she shall, if so directed by the
430 office and the Department of Legal Affairs, nonetheless comply
431 with such direction; but the person shall not thereafter be
432 prosecuted or subjected to any penalty or forfeiture for or on
433 account of any transaction, matter, or thing concerning which he
434 or she may have so testified or produced evidence, and no
435 testimony so given or evidence so produced shall be received
436 against him or her upon any criminal action, investigation, or
437 proceeding; except that no such person so testifying shall be
438 exempt from prosecution or punishment for any perjury committed
439 by him or her in such testimony, and the testimony or evidence
440 so given or produced shall be admissible against him or her upon
441 any criminal action, investigation, or proceeding concerning
442 such perjury, nor shall he or she be exempt from the refusal,
443 suspension, or revocation of any license, permission, or
444 authority conferred, or to be conferred, pursuant to the
445 insurance law.
446 b. Any such individual may execute, acknowledge, and file
447 with the office a statement expressly waiving such immunity or
448 privilege in respect to any transaction, matter, or thing
449 specified in such statement, and thereupon the testimony of such
450 individual or such evidence in relation to such transaction,
Page 18 of 44
CODING: Words stricken are deletions; words underlined are additions.
hb0951-00
F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
HB 951 2022
451 matter, or thing may be received or produced before any judge or
452 justice, court, tribunal, grand jury, or otherwise; and if such
453 testimony or evidence is so received or produced, such
454 individual shall not be entitled to any immunity or privileges
455 on account of any testimony so given or evidence so produced.
456 20. Penalty for failure to testify.—Any person who refuses
457 or fails, without lawful cause, to testify relative to the
458 affairs of any member, associate broker, or other person when
459 subpoenaed and requested by the office to so testify, as
460 provided in subparagraph 17., shall, in addition to the penalty
461 provided in subparagraph 17., be guilty of a misdemeanor of the
462 second degree, punishable as provided in s. 775.082 or s.
463 775.083.
464 21. Name selection.—No underwriting member shall be formed
465 or authorized to transact insurance in this state under a name
466 which is the same as that of any authorized insurer or is so
467 nearly similar thereto as to cause or tend to cause confusion or
468 under a name which would tend to mislead as to the type of
469 organization of the insurer. Before incorporating under or using
470 any name, the underwriting syndicate or proposed underwriting
471 syndicate shall submit its name or proposed name to the office
472 for the approval of the office.
473 22. Capitalization.—An underwriting member approved on or
474 after July 2, 1987, shall provide an initial paid-in capital and
475 surplus of $3 million and thereafter shall maintain a mi nimum
Page 19 of 44
CODING: Words stricken are deletions; words underlined are additions.
hb0951-00
F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
HB 951 2022
476 policyholder surplus of $2 million in order to be permitted to
477 write insurance. Underwriting members approved prior to July 2,
478 1987, shall maintain a minimum policyholder surplus of $1
479 million. After June 29, 1988, underwriting members approved
480 prior to July 2, 1987, must maintain a minimum policyholder
481 surplus of $1.5 million to write insurance. After June 29, 1989,
482 underwriting members approved prior to July 2, 1987, must
483 maintain a minimum policyholder surplus of $1.75 million to
484 write insurance. After December 30, 1989, all underwriting
485 members, regardless of the date they were approved, must
486 maintain a minimum policyholder surplus of $2 million to write
487 insurance. Except for that portion of the paid-in capital and
488 surplus which shall be maintained in a security fund of an
489 exchange, the paid-in capital and surplus shall be invested by
490 an underwriting member in a manner consistent with ss. 625.301-
491 625.340. The portion of the paid-in capital and surplus in any
492 security fund of an exchange shall be invested in a manner
493 limited to investments for life insurance companies under the
494 Florida insurance laws.
495 23. Limitations on coverage written.—
496 a. Limit of risk.—No underwriting member shall expose
497 itself to any loss on any one risk in an amount exceedin g 10
498 percent of its surplus to policyholders. Any risk or portion of
499 any risk which shall have been reinsured in an assuming
500 reinsurer authorized or approved to do such business in this
Page 20 of 44
CODING: Words stricken are deletions; words underlined are additions.
hb0951-00
F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
HB 951 2022
501 state shall be deducted in determining the limitation of risk
502 prescribed in this section.
503 b. Restrictions on premiums written.—If the office has
504 reason to believe that the underwriting member's ratio of actual
505 or projected annual gross written premiums to policyholder
506 surplus exceeds 8 to 1 or the underwriting member's rat io of
507 actual or projected annual net premiums to policyholder surplus
508 exceeds 4 to 1, the office may establish maximum gross or net
509 annual premiums to be written by the underwriting member
510 consistent with maintaining the ratios specified in this sub -
511 subparagraph.
512 (I) Projected annual net or gross premiums shall be based
513 on the actual writings to date for the underwriting member's
514 current calendar year, its writings for the previous calendar
515 year, or both. Ratios shall be computed on an annualized basis.
516 (II) For purposes of this sub-subparagraph, the term
517 "gross written premiums" means direct premiums written and
518 reinsurance assumed.
519 c. Surplus as to policyholders.—For the purpose of
520 determining the limitation on coverage written, surplus as to
521 policyholders shall be deemed to include any voluntary reserves,
522 or any part thereof, which are not required by or pursuant to
523 law and shall be determined from the last sworn statement of
524 such underwriting member with the office, or by the last report
525 or examination filed by the office, whichever is more recent at
Page 21 of 44
CODING: Words stricken are deletions; words underlined are additions.
hb0951-00
F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
HB 951 2022
526 the time of assumption of such risk.
527 24. Unearned premium reserves.—An underwriting member must
528 at all times maintain an unearned premium reserve equal to 50
529 percent of the net written premiums of the subscribers on
530 policies having 1 year or less to run, and pro rata on those for
531 longer periods, except that all premiums on any marine or
532 transportation insurance trip risk shall be deemed unearned
533 until the trip is terminated. For the purpose of this
534 subparagraph, the term "net written premiums" means the premium
535 payments made by subscribers plus the premiums due from
536 subscribers, after deducting the amounts specifically provided
537 in the subscribers' agreements for expenses, including
538 reinsurance costs and fees paid to the attorney in fact,
539 provided that the power of attorney agreement contains an
540 explicit provision requiring the attorney in fact to refund any
541 unearned subscribers fees on a pro-rata basis for canceled
542 policies. If there is no such provision, the unearned premium
543 reserve shall be calculated without any adjustment for fees paid
544 to the attorney in fact. If the unearned premium reserves at any
545 time do not amount to $100,000, there shall be maintained on
546 deposit at the exchange at all times additional funds in cash or
547 eligible securities which, together with the unearned premium
548 reserves, equal $100,000. In calculating the foregoing reserves,
549 the amount of the attorney's bond, as filed with the office and
550 as required by s. 629.121, shall be included in such reserves.
Page 22 of 44
CODING: Words stricken are deletions; words underlined are additions.
hb0951-00
F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
HB 951 2022
551 If at any time the unearned premium reserves are less than the
552 foregoing requirements, the subscribers, or the attorney in
553 fact, shall advance funds to make up the deficiency. Such
554 advances shall only be repaid out of the surplus of the exchange
555 and only after receiving written approval from the office.
556 25. Loss reserves.—All underwriting members of an exchange
557 shall maintain loss reserves, including a reserve for incurred
558 but not reported claims. The reserves shall be subject to revie w
559 by the office, and, if loss experience shows that an
560 underwriting member's loss reserves are inadequate, the office
561 shall require the underwriting member to maintain loss reserves
562 in such additional amount as is needed to make them adequate.
563 26. Distribution of profits.—An underwriting member shall
564 not distribute any profits in the form of cash or other assets
565 to owners except out of that part of its available and
566 accumulated surplus funds which is derived from realized net
567 operating profits on its business and realized capital gains. In
568 any one year such payments to owners shall not exceed 30 percent
569 of such surplus as of December 31 of the immediately preceding
570 year, unless otherwise approved by the office. No distribution
571 of profits shall be made that would render an underwriting
572 member either impaired or insolvent.
573 27. Stock dividends.—A stock dividend may be paid by an
574 underwriting member out of any available surplus funds in excess
575 of the aggregate amount of surplus advanced to the underwriting
Page 23 of 44
CODING: Words stricken are deletions; words underlined are additions.
hb0951-00
F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
HB 951 2022
576 member under subparagraph 29.
577 28. Dividends from earned surplus.—A dividend otherwise
578 lawful may be payable out of an underwriting member's earned
579 surplus even though the total surplus of the underwriting member
580 is then less than the aggregate of its past contributed surplus
581 resulting from issuance of its capital stock at a price in
582 excess of the par value thereof.
583 29. Borrowing of money by underwriting members.—
584 a. An underwriting member may borrow money to defray the
585 expenses of its organization, provide it with surplus funds, or
586 for any purpose of its business, upon a written agreement that
587 such money is required to be repaid only out of the underwriting
588 member's surplus in excess of that stipulated in such agreement.
589 The agreement may provide for interest not exceeding 15 percent
590 simple interest per annum. The interest shall or shall not
591 constitute a liability of the underwriting member as to its
592 funds other than such excess of surplus, as stipulated in the
593 agreement. No commission or promotion expense shall be paid in
594 connection with any such loan. The use of any surplus note and
595 any repayments thereof shall be subject to the approval of the
596 office.
597 b. Money so borrowed, together with any interest thereon
598 if so stipulated in the agreement, shall not form a part of the
599 underwriting member's legal liabilities except as to its surplus
600 in excess of the amount thereof stipulated in the agreement, nor
Page 24 of 44
CODING: Words stricken are deletions; words underlined are additions.
hb0951-00
F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
HB 951 2022
601 be the basis of any setoff; but until repayment, financial
602 statements filed or published by an underwriting member shall
603 show as a footnote thereto the amount thereof then unpaid,
604 together with any interest thereon accrued but unpaid.
605 30. Liquidation, rehabilitation, and restrictions. —The
606 office, upon a showing that a member or associate broker of an
607 exchange has met one or more of the grounds contained in part I
608 of chapter 631, may restrict sales by type of risk, policy or
609 contract limits, premium levels, or policy or contract
610 provisions; increase surplus or capital requirements of
611 underwriting members; issue cease and desist orders; suspend or
612 restrict a member's or associate broker's right to transact
613 business; place an underwriting member under conservatorship or
614 rehabilitation; or seek an order of liquidation as authorized by
615 part I of chapter 631.
616 31. Prohibited conduct.—The following acts by a member,
617 associate broker, or affiliated person shall constitute
618 prohibited conduct:
619 a. Fraud.
620 b. Fraudulent or dishonest acts committed by a member or
621 associate broker prior to admission to an exchange, if the facts
622 and circumstances were not disclosed to the office upon
623 application to become a member or associate broker.
624 c. Conduct detrimental to the welfare of an exchange.
625 d. Unethical or improper practices or conduct,
Page 25 of 44
CODING: Words stricken are deletions; words underlined are additions.
hb0951-00
F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
HB 951 2022
626 inconsistent with just and equitable principles of trade as set
627 forth in, but not limited to, ss. 626.951-626.9641 and 626.973.
628 e. Failure to use due diligence to ascertain the insurance
629 needs of a client or a principal.
630 f. Misstatements made under oath or upon an application
631 for membership on an exchange.
632 g. Failure to testify or produce documents when requested
633 by the office.
634 h. Willful violation of any law of this state.
635 i. Failure of an officer or principal to testify under
636 oath concerning a member, associate broker, or other person's
637 affairs as they relate to the operation of an exchange.
638 j. Violation of the constitution and bylaws of the
639 exchange.
640 32. Penalties for participating in prohibited conduct. —
641 a. The office may order the suspension of further
642 transaction of business on the exchange of any member or
643 associate broker found to have engaged in prohibited conduct. In
644 addition, any member or associate broker found to have engaged
645 in prohibited conduct may be subject to reprimand, censure,
646 and/or a fine not exceeding $25,000 imposed by the office.
647 b. Any member which has an affiliated person who is found
648 to have engaged in prohibited conduct shall be subject to
649 involuntary withdrawal or in addition thereto may be subject to
650 suspension, reprimand, censure, and/or a fine not exceeding
Page 26 of 44
CODING: Words stricken are deletions; words underlined are additions.
hb0951-00
F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
HB 951 2022
651 $25,000.
652 33. Reduction of penalties.—Any suspension, reprimand,
653 censure, or fine may be remitted or reduced by the office on
654 such terms and conditions as are deemed fair and equitable.
655 34. Other offenses.—Any member or associate broker that is
656 suspended shall be deprived, during the period of suspension, of
657 all rights and privileges of a member or of an associate broker
658 and may be proceeded against by the office for any offense
659 committed either before or after the date of suspension .
660 35. Reinstatement.—Any member or associate broker that is
661 suspended may be reinstated at any time on such terms and
662 conditions as the office may specify.
663 36. Remittance of fines.—Fines imposed under this section
664 shall be remitted to the office and shall be paid into the
665 Insurance Regulatory Trust Fund.
666 37. Failure to pay fines.—When a member or associate
667 broker has failed to pay a fine for 15 days after it becomes
668 payable, such member or associate broker shall be suspended,
669 unless the office has granted an extension of time to pay such
670 fine.
671 38. Changes in ownership or assets.—In the event of a
672 major change in the ownership or a major change in the assets of
673 an underwriting member, the underwriting member shall report
674 such change in writing to the office within 30 days of the
675 effective date thereof. The report shall set forth the details
Page 27 of 44
CODING: Words stricken are deletions; words underlined are additions.
hb0951-00
F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
HB 951 2022
676 of the change. Any change in ownership or assets of more than 5
677 percent shall be considered a major change.
678 39. Retaliation.—
679 a. When by or pursuant to the laws of any other state or
680 foreign country any taxes, licenses, or other fees, in the
681 aggregate, and any fines, penalties, deposit requirements, or
682 other material obligations, prohibitions, or restrictions are or
683 would be imposed upon an exchange or upon the agents or
684 representatives of such exchange which are in excess of such
685 taxes, licenses, and other fees, in the aggregate, or which are
686 in excess of such fines, penalties, deposit requirements, or
687 other obligations, prohibitions, or restrictions directly
688 imposed upon similar exchanges or upon the agents or
689 representatives of such exchanges of such other state or country
690 under the statutes of this state, so long as such laws of such
691 other state or country continue in force or are so applied, the
692 same taxes, licenses, and other fees, in the aggregate, or
693 fines, penalties, deposit requirements, or other material
694 obligations, prohibitions, or restrictions of whatever kind
695 shall be imposed by the office upon the exchanges, or upon the
696 agents or representatives of such exchanges, of such other state
697 or country doing business or seeking to do business in this
698 state.
699 b. Any tax, license, or other obligation imposed by any
700 city, county, or other political subdivision or agency of a
Page 28 of 44
CODING: Words stricken are deletions; words underlined are additions.
hb0951-00
F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
HB 951 2022
701 state, jurisdiction, or foreign country on an exchange, or on
702 the agents or representatives on an exchange, shall be deemed to
703 be imposed by such state, jurisdiction, or foreign country
704 within the meaning of sub-subparagraph a.
705 40. Agents.—
706 a. Agents as defined in ss. 626.015 and 626.914(5) 626.914
707 who are broker members or associate broker members of an
708 exchange shall be allowed only to place on an exchange the same
709 kind or kinds of business that the agent is licensed to place
710 pursuant to Florida law. Direct Florida business as defined i n
711 s. 626.916 or s. 626.917 shall be written through a broker
712 member who is a surplus lines agent as defined in s. 626.914.
713 The activities of each broker member or associate broker with
714 regard to an exchange shall be subject to all applicable
715 provisions of the insurance laws of this state, and all such
716 activities shall constitute transactions under his or her
717 license as an insurance agent for purposes of the Florida
718 insurance law.
719 b. Premium payments and other requirements.—If an
720 underwriting member has assumed the risk as to a surplus lines
721 coverage and if the premium therefor has been received by the
722 surplus lines agent who placed such insurance, then in all
723 questions thereafter arising under the coverage as between the
724 underwriting member and the insured, the underwriting member
725 shall be deemed to have received the premium due to it for such
Page 29 of 44
CODING: Words stricken are deletions; words underlined are additions.
hb0951-00
F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
HB 951 2022
726 coverage; and the underwriting member shall be liable to the
727 insured as to losses covered by such insurance, and for unearned
728 premiums which may become payable to the insured upon
729 cancellation of such insurance, whether or not in fact the
730 surplus lines agent is indebted to the underwriting member with
731 respect to such insurance or for any other cause.
732 41. Improperly issued contracts, riders, and
733 endorsements.—
734 a. Any insurance policy, rider, or endorsement issued by
735 an underwriting member and otherwise valid which contains any
736 condition or provision not in compliance with the requirements
737 of this section shall not be thereby rendered invalid, except as
738 provided in s. 627.415, but shall be construed and applied in
739 accordance with such conditions and provisions as would have
740 applied had such policy, rider, or endorsement been in full
741 compliance with this section. In the event an underwriting
742 member issues or delivers any policy for an amount which exceeds
743 any limitations otherwise provided in this section, the
744 underwriting member shall be liable to the insured or his or her
745 beneficiary for the full amount stated in the policy in addition
746 to any other penalties that may be imposed.
747 b. Any insurance contract delivered or issued for delivery
748 in this state governing a subject or subjects of insurance
749 resident, located, or to be performed in this state which,
750 pursuant to the provisions of this section, the underwriting
Page 30 of 44
CODING: Words stricken are deletions; words underlined are additions.
hb0951-00
F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
HB 951 2022
751 member may not lawfully insure under such a contract shall be
752 cancelable at any time by the underwriting member, any provision
753 of the contract to the contrary notwithstanding; and the
754 underwriting member shall promptly cancel the contract in
755 accordance with the request of the office therefor. No such
756 illegality or cancellation shall be deemed to relieve the
757 underwriting syndicate of any liability incurred by it under the
758 contract while in force or to prohibit the underwriting
759 syndicate from retaining the pro rata earned premium thereon.
760 This provision does not relieve the underwriting syndicate from
761 any penalty otherwise incurred by the underwriting syndicate.
762 42. Satisfaction of judgments.—
763 a. Every judgment or decree for the recovery of money
764 heretofore or hereafter entered in any court of competent
765 jurisdiction against any underwriting member shall be fully
766 satisfied within 60 days from and after the entry thereof or, in
767 the case of an appeal from such judgment or decree, within 60
768 days from and after the affirmance of the judgment or decree by
769 the appellate court.
770 b. If the judgment or decree is not satisfied as required
771 under sub-subparagraph a., and proof of such failure to satisfy
772 is made by filing with the office a certified transcript of the
773 docket of the judgment or the decree together with a certificate
774 by the clerk of the court wherein the judgment or decree remains
775 unsatisfied, in whole or in part, after the time provided in
Page 31 of 44
CODING: Words stricken are deletions; words underlined are additions.
hb0951-00
F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
HB 951 2022
776 sub-subparagraph a., the office shall forthwith prohibit the
777 underwriting member from transacting business. The office shall
778 not permit such underwriting member to write any new business
779 until the judgment or decree is wholly paid and satisfied and
780 proof thereof is filed with the office under the official
781 certificate of the clerk of the court wherein the judgment was
782 recovered, showing that the judgment or decree is satisfied of
783 record, and until the expenses and fees incurred in the case are
784 also paid by the underwriting syndicate.
785 43. Tender and exchange offers.—No person shall conclude a
786 tender offer or an exchange offer or otherwise acquire 5 percent
787 or more of the outstanding voting securities of an underwriting
788 member or controlling company or purchase 5 percent or more of
789 the ownership of an underwriting member or controlling company
790 unless such person has filed with, and obtained the approval of,
791 the office and sent to such underwriting member a statement
792 setting forth:
793 a. The identity of, and background information on, each
794 person by whom, or on whose behalf, the acquisition is to be
795 made; and, if the acquisition is to be made by or on behalf of a
796 corporation, association, or trust, the identity of and
797 background information on each director, officer, trustee, or
798 other natural person performing duties similar to those of a
799 director, officer, or trustee for the corporation, association,
800 or trust.
Page 32 of 44
CODING: Words stricken are deletions; words underlined are additions.
hb0951-00
F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
HB 951 2022
801 b. The source and amount of the funds or other
802 consideration used, or to be used, in making the acquisition.
803 c. Any plans or proposals which such person may have to
804 liquidate such member, to sell its assets, or to merge or
805 consolidate it.
806 d. The percentage of ownership which such person proposes
807 to acquire and the terms of the offer or exchange, as the case
808 may be.
809 e. Information as to any contracts, arrangements, or
810 understandings with any party with respect to any securities of
811 such member or controlling company, including, but not limited
812 to, information relating to the transfer of any securities,
813 option arrangements, or puts or calls or the giving or
814 withholding of proxies, naming the party with whom such
815 contract, arrangements, or understandings have been entered and
816 giving the details thereof.
817 f. The office may disapprove any acquisition subject to
818 the provisions of this subparagraph by any person or any
819 affiliated person of such person who:
820 (I) Willfully violates this subparagraph;
821 (II) In violation of an order of the office issued
822 pursuant to sub-subparagraph j., fails to divest himself or
823 herself of any stock obtained in violation of this subparagraph,
824 or fails to divest himself or herself of any direct or indirect
825 control of such stock, within 25 days after such order; or
Page 33 of 44
CODING: Words stricken are deletions; words underlined are additions.
hb0951-00
F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
HB 951 2022
826 (III) In violation of an order issued by the office
827 pursuant to sub-subparagraph j., acquires additional stock of
828 the underwriting member or controlling company, or direct or
829 indirect control of such stock, without complying with this
830 subparagraph.
831 g. The person or persons filing the statement required by
832 this subparagraph have the burden of proof. The office shall
833 approve any such acquisition if it finds, on the basis of the
834 record made during any proceeding or on the basis of the filed
835 statement if no proceeding is conducted, that:
836 (I) Upon completion of the acquisition, the underwriting
837 member will be able to satisfy the requirements for the approval
838 to write the line or lines of insurance for which it is
839 presently approved;
840 (II) The financial condition of the acquiring person or
841 persons will not jeopardize the financial stability of the
842 underwriting member or prejudice the interests of its
843 policyholders or the public;
844 (III) Any plan or proposal which the acquiring person has,
845 or acquiring persons have, made:
846 (A) To liquidate the insurer, sell its assets, or merge or
847 consolidate it with any person, or to make any other major
848 change in its business or corporate structure or management; or
849 (B) To liquidate any controlling company, sell its assets,
850 or merge or consolidate it with any person, or to make any major
Page 34 of 44
CODING: Words stricken are deletions; words underlined are additions.
hb0951-00
F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
HB 951 2022
851 change in its business or corporate structure or management
852 which would have an effect upon the underwriting member
853
854 is fair and free of prejudice to the policyholders of the
855 underwriting member or to the public;
856 (IV) The competence, experience, and integrity of those
857 persons who will control directly or indirectly the operation of
858 the underwriting member indicate that the acquisition is in the
859 best interest of the policyholders of the underwriting member
860 and in the public interest;
861 (V) The natural persons for whom background information is
862 required to be furnished pursuant to this subparagraph have such
863 backgrounds as to indicate that it is in the best interests of
864 the policyholders of the underwriting member, and in the public
865 interest, to permit such persons to exercise control over such
866 underwriting member;
867 (VI) The officers and directors to be employed after the
868 acquisition have sufficient insurance experience and ability to
869 assure reasonable promise of successful operation;
870 (VII) The management of the underwriting member after the
871 acquisition will be competent and trustworthy and will possess
872 sufficient managerial experience so as to make the proposed
873 operation of the underwriting member not hazardous to the
874 insurance-buying public;
875 (VIII) The management of the underwriting member after the
Page 35 of 44
CODING: Words stricken are deletions; words underlined are additions.
hb0951-00
F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
HB 951 2022
876 acquisition will not include any person who has directly or
877 indirectly through ownership, control, reinsurance transactions,
878 or other insurance or business relations unlawfully manipulated
879 the assets, accounts, finances, or books of any insurer or
880 underwriting member or otherwise acted in bad faith with respect
881 thereto;
882 (IX) The acquisition is not likely to be hazardous or
883 prejudicial to the underwriting member's policyholders or the
884 public; and
885 (X) The effect of the acquisition of control would not
886 substantially lessen competition in insurance in this state or
887 would not tend to create a monopoly therein.
888 h. No vote by the stockholder of record, or by any other
889 person, of any security acquired in contravention of the
890 provisions of this subparagraph is valid. Any acqui sition of any
891 security contrary to the provisions of this subparagraph is
892 void. Upon the petition of the underwriting member or
893 controlling company, the circuit court for the county in which
894 the principal office of such underwriting member is located may,
895 without limiting the generality of its authority, order the
896 issuance or entry of an injunction or other order to enforce the
897 provisions of this subparagraph. There shall be a private right
898 of action in favor of the underwriting member or controlling
899 company to enforce the provisions of this subparagraph. No
900 demand upon the office that it perform its functions shall be
Page 36 of 44
CODING: Words stricken are deletions; words underlined are additions.
hb0951-00
F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
HB 951 2022
901 required as a prerequisite to any suit by the underwriting
902 member or controlling company against any other person, and in
903 no case shall the office be deemed a necessary party to any
904 action by such underwriting member or controlling company to
905 enforce the provisions of this subparagraph. Any person who
906 makes or proposes an acquisition requiring the filing of a
907 statement pursuant to this subparagraph, or who files such a
908 statement, shall be deemed to have thereby designated the Chief
909 Financial Officer as such person's agent for service of process
910 under this subparagraph and shall thereby be deemed to have
911 submitted himself or herself to the administrative jurisdiction
912 of the office and to the jurisdiction of the circuit court.
913 i. Any approval by the office under this subparagraph does
914 not constitute a recommendation by the office for an
915 acquisition, tender offer, or exchange offer. It is unlawful for
916 a person to represent that the office's approval constitutes a
917 recommendation. A person who violates the provisions of this
918 sub-subparagraph is guilty of a felony of the third degree,
919 punishable as provided in s. 775.082, s. 775.083, or s. 775.084.
920 The statute-of-limitations period for the prosecution of an
921 offense committed under this sub-subparagraph is 5 years.
922 j. Upon notification to the office by the underwriting
923 member or a controlling company that any person or any
924 affiliated person of such person has acquired 5 percent or more
925 of the outstanding voting securities of the underwriting member
Page 37 of 44
CODING: Words stricken are deletions; words underlined are additions.
hb0951-00
F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
HB 951 2022
926 or controlling company without complying with the provisions of
927 this subparagraph, the office shall order that the person and
928 any affiliated person of such person cease acquisition of any
929 further securities of the underwriting member or controlling
930 company; however, the person or any affiliated person of such
931 person may request a proceeding, which proceeding shall be
932 convened within 7 days after the rendering of the order for the
933 sole purpose of determining whether the person, individually or
934 in connection with any affiliated person of such person, has
935 acquired 5 percent or more of the outstanding voting securities
936 of an underwriting member or controlling company. Upon the
937 failure of the person or affiliated person to request a hearing
938 within 7 days, or upon a determination at a hearing convened
939 pursuant to this sub-subparagraph that the person or affiliated
940 person has acquired voting securities of an underwrit ing member
941 or controlling company in violation of this subparagraph, the
942 office may order the person and affiliated person to divest
943 themselves of any voting securities so acquired.
944 k.(I) The office shall, if necessary to protect the public
945 interest, suspend or revoke the certificate of authority of any
946 underwriting member or controlling company:
947 (A) The control of which is acquired in violation of this
948 subparagraph;
949 (B) That is controlled, directly or indirectly, by any
950 person or any affiliated person of such person who, in violation
Page 38 of 44
CODING: Words stricken are deletions; words underlined are additions.
hb0951-00
F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
HB 951 2022
951 of this subparagraph, has obtained control of an underwriting
952 member or controlling company; or
953 (C) That is controlled, directly or indirectly, by any
954 person who, directly or indirectly, controls any other person
955 who, in violation of this subparagraph, acquires control of an
956 underwriting member or controlling company.
957 (II) If any underwriting member is subject to suspension
958 or revocation pursuant to sub-sub-subparagraph (I), the
959 underwriting member shall be deemed to be in such condition, or
960 to be using or to have been subject to such methods or practices
961 in the conduct of its business, as to render its further
962 transaction of insurance presently or prospectively hazardous to
963 its policyholders, creditors, or stockholders or to the public.
964 l.(I) For the purpose of this sub-sub-subparagraph, the
965 term "affiliated person" of another person means:
966 (A) The spouse of such other person;
967 (B) The parents of such other person and their lineal
968 descendants and the parents of such other person's spouse and
969 their lineal descendants;
970 (C) Any person who directly or indirectly owns or
971 controls, or holds with power to vote, 5 percent or more of the
972 outstanding voting securities of such other person;
973 (D) Any person 5 percent or more of the outstanding voting
974 securities of which are directly or indirectly owned or
975 controlled, or held with power to vote, by such other person;
Page 39 of 44
CODING: Words stricken are deletions; words underlined are additions.
hb0951-00
F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
HB 951 2022
976 (E) Any person or group of persons who directly or
977 indirectly control, are controlled by, or are under common
978 control with such other person; or any officer, director,
979 partner, copartner, or employee of such other person;
980 (F) If such other person is an investment company, any
981 investment adviser of such company or any member of an advisory
982 board of such company;
983 (G) If such other person is an unincorporated investment
984 company not having a board of directors, the depositor of such
985 company; or
986 (H) Any person who has entered into an agreement, written
987 or unwritten, to act in concert with such other person in
988 acquiring or limiting the disposition of securities of an
989 underwriting member or controlling company.
990 (II) For the purposes of this section, the term
991 "controlling company" means any corporation, trust, or
992 association owning, directly or indirectly, 25 perc ent or more
993 of the voting securities of one or more underwriting members.
994 m. The commission may adopt, amend, or repeal rules that
995 are necessary to implement the provisions of this subparagraph,
996 pursuant to chapter 120.
997 44. Background information.—The information as to the
998 background and identity of each person about whom information is
999 required to be furnished pursuant to sub-subparagraph 43.a.
1000 shall include, but shall not be limited to:
Page 40 of 44
CODING: Words stricken are deletions; words underlined are additions.
hb0951-00
F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
HB 951 2022
1001 a. Such person's occupations, positions of employment, and
1002 offices held during the past 10 years.
1003 b. The principal business and address of any business,
1004 corporation, or other organization in which each such office was
1005 held or in which such occupation or position of employment was
1006 carried on.
1007 c. Whether, at any time during such 10-year period, such
1008 person was convicted of any crime other than a traffic
1009 violation.
1010 d. Whether, during such 10-year period, such person has
1011 been the subject of any proceeding for the revocation of any
1012 license and, if so, the nature of such proceeding and the
1013 disposition thereof.
1014 e. Whether, during such 10-year period, such person has
1015 been the subject of any proceeding under the federal Bankruptcy
1016 Act or whether, during such 10-year period, any corporation,
1017 partnership, firm, trust, or association in which such person
1018 was a director, officer, trustee, partner, or other official has
1019 been subject to any such proceeding, either during the time in
1020 which such person was a director, officer, trustee, partner, or
1021 other official, or within 12 months thereafter.
1022 f. Whether, during such 10-year period, such person has
1023 been enjoined, either temporarily or permanently, by a court of
1024 competent jurisdiction from violating any federal or state law
1025 regulating the business of insurance, securities, or ba nking, or
Page 41 of 44
CODING: Words stricken are deletions; words underlined are additions.
hb0951-00
F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
HB 951 2022
1026 from carrying out any particular practice or practices in the
1027 course of the business of insurance, securities, or banking,
1028 together with details of any such event.
1029 45. Security fund.—All underwriting members shall be
1030 members of the security fund of any exchange.
1031 46. Underwriting member defined.—Whenever the term
1032 "underwriting member" is used in this subsection, it shall be
1033 construed to mean "underwriting syndicate."
1034 47. Offsets.—Any action, requirement, or constraint
1035 imposed by the office shall reduce or offset similar actions,
1036 requirements, or constraints of any exchange.
1037 48. Restriction on member ownership.—
1038 a. Investments existing prior to July 2, 1987.—The
1039 investment in any member by brokers, agents, and intermediaries
1040 transacting business on the exchange, and the investment in any
1041 such broker, agent, or intermediary by any member, directly or
1042 indirectly, shall in each case be limited in the aggregate to
1043 less than 20 percent of the total investment in such member,
1044 broker, agent, or intermediary, as the case may be. After
1045 December 31, 1987, the aggregate percent of the total investment
1046 in such member by any broker, agent, or intermediary and the
1047 aggregate percent of the total investment in any such broker,
1048 agent, or intermediary by any member, directly or indirectly,
1049 shall not exceed 15 percent. After June 30, 1988, such aggregate
1050 percent shall not exceed 10 percent and after December 31, 1988,
Page 42 of 44
CODING: Words stricken are deletions; words underlined are additions.
hb0951-00
F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
HB 951 2022
1051 such aggregate percent shall not exceed 5 percent.
1052 b. Investments arising on or after July 2, 1987.—The
1053 investment in any underwriting member by brokers, agents, or
1054 intermediaries transacting business on the exchange, and the
1055 investment in any such broker, agent, or intermediary by any
1056 underwriting member, directly or indirectly, shall in each case
1057 be limited in the aggregate to less than 5 percent of the total
1058 investment in such underwriting member, broker, agent, or
1059 intermediary.
1060 49. "Underwriting manager" defined.—"Underwriting manager"
1061 as used in this subparagraph includes any person, partnership,
1062 corporation, or organization providing any of the following
1063 services to underwriting members of the exchange:
1064 a. Office management and allied services, including
1065 correspondence and secretarial services.
1066 b. Accounting services, including bookkeeping and
1067 financial report preparation.
1068 c. Investment and banking consultations and services.
1069 d. Underwriting functions and services including the
1070 acceptance, rejection, placement, and marketing of risk.
1071 50. Prohibition of underwriting manager investment.—Any
1072 direct or indirect investment in any underwriting manager by a
1073 broker member or any affiliated person of a broker member or any
1074 direct or indirect investment in a broker member by an
1075 underwriting manager or any affiliated person of an underwriting
Page 43 of 44
CODING: Words stricken are deletions; words underlined are additions.
hb0951-00
F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
HB 951 2022
1076 manager is prohibited. "Affiliated person" for purposes of this
1077 subparagraph is defined in subparagraph 43.
1078 51. An underwriting member may not accept reinsurance on
1079 an assumed basis from an affiliate or a controlling company, nor
1080 may a broker member or management company place reinsurance from
1081 an affiliate or controlling company of theirs with an
1082 underwriting member. "Affiliate and controlling company" for
1083 purposes of this subparagraph is defined in subpara graph 43.
1084 52. Premium defined.—"Premium" is the consideration for
1085 insurance, by whatever name called. Any "assessment" or any
1086 "membership," "policy," "survey," "inspection," "service" fee or
1087 charge or similar fee or charge in consideration for an
1088 insurance contract is deemed part of the premium.
1089 53. Rules.—The commission shall adopt rules necessary for
1090 or as an aid to the effectuation of any provision of this
1091 section.
1092 Section 7. This act shall take effect July 1, 2022.
Page 44 of 44
CODING: Words stricken are deletions; words underlined are additions.
hb0951-00
COMMERCE COMMITTEE
HB 951 by Rep. Gregory
Domestic Surplus Lines Insurers
AMENDMENT SUMMARY
February 23, 2022
Amendment 1 by Gregory (line 55): The amendment:
• Clarifies that a domestic surplus lines insurer is not considered an authorized insurer as
that term is defined in the Insurance Code, but is authorized to write surplus lines
insurance in any jurisdiction including Florida.
• Establishes that a domestic surplus lines insurer must maintain a surplus of at least $15
million at all times.
• Clarifies that a domestic surplus lines insurer may not hold a certificate of authority
authorizing it to operate as an admitted insurer.
• Establishes that a domestic surplus lines insurer may not issue a homeowners policy
covering residential property located in Florida if such policy was non-renewed or
cancelled by an admitted insurer’s affiliate within twelve months following the effective
date of the non-renewal or cancellation.
• Establishes that a domestic surplus lines insurer may not issue a policy designed to
satisfy motor vehicle financial responsibility or worker’s compensation coverage.
COMMITTEE/SUBCOMMITTEE AMENDMENT
Bill No. HB 951 (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 Gregory offered the following:
3
4 Amendment (with title amendment)
5 Remove lines 55-229 and insert:
6 (2) "Domestic surplus lines insurer" means a nonadmitted
7 insurer domiciled in this state that has been deemed eligible
8 and authorized by the office to write surplus lines insurance. A
9 domestic surplus lines insurer is not an "authorized insurer" as
10 defined in s. 624.09(1), but is authorized to write surplus
11 lines insurance in any jurisdiction, including this state, and
12 such authorization is not contingent on the company's holding of
13 an existing certificate of authority.
14 (3)(2) "Eligible surplus lines insurer" means:
198569 - h0951-line 55.docx
Published On: 2/22/2022 9:40:17 PM
Page 1 of 11
COMMITTEE/SUBCOMMITTEE AMENDMENT
Bill No. HB 951 (2022)
Amendment No. 1
15 (a) An unauthorized insurer that which has been made
16 eligible by the office to issue insurance coverage under this
17 Surplus Lines Law; or
18 (b) A domestic surplus lines insurer.
19 (4)(3) "Export" "To export" means to place, in an
20 unauthorized insurer under this Surplus Lines Law, insurance
21 covering a subject of insurance resident, located, or to be
22 performed in this state.
23 (5)(1) "Surplus lines agent" means an individual licensed
24 as provided in this part to handle the placement of insurance
25 coverages with unauthorized insurers and to place such coverages
26 with authorized insurers as to which the licensee is not
27 licensed as an agent.
28 Section 2. Section 626.91805, Florida Statutes, is created
29 to read:
30 626.91805 Domestic surplus lines insurers.—
31 (1) As used in this section, the term "nonadmitted
32 insurer" has the same meaning as provided in the federal
33 Nonadmitted and Reinsurance Reform Act of 2010.
34 (2) Notwithstanding any other law, a nonadmitted insurer
35 possessing a policyholder surplus of at least $15 million may,
36 under a resolution by its board of directors and with the
37 written approval of the office, be eligible to transact
38 insurance as a domestic surplus lines insurer. A domestic
198569 - h0951-line 55.docx
Published On: 2/22/2022 9:40:17 PM
Page 2 of 11
COMMITTEE/SUBCOMMITTEE AMENDMENT
Bill No. HB 951 (2022)
Amendment No. 1
39 surplus lines insurer must maintain surplus of at least $15
40 million at all times.
41 (3) Notwithstanding s. 626.918(2), a domestic surplus
42 lines insurer shall be deemed an eligible surplus lines insurer
43 and shall be included in the list of eligible surplus lines
44 insurers required by s. 626.918(3). Eligible surplus lines
45 insurers listed in s. 626.918(3) may write any kind of insurance
46 that an unauthorized insurer not domiciled in this state is
47 eligible to write.
48 (4) For purposes of writing surplus lines insurance
49 pursuant to the Surplus Lines Law, a domestic surplus lines
50 insurer shall be considered an unauthorized insurer.
51 (5) For purposes of the federal Nonadmitted and
52 Reinsurance Reform Act of 2010, a domestic surplus lines insurer
53 shall be considered a nonadmitted insurer.
54 (6) A domestic surplus lines insurer may write only
55 surplus lines insurance in this state and only if procured from
56 a surplus lines agent pursuant to the Surplus Lines Law. Such
57 insurer is also prohibited from simultaneously holding any
58 certificate of authority authorizing it to operate as an
59 admitted insurer.
60 (7) A domestic surplus lines insurer is authorized to
61 write surplus lines insurance in any other jurisdiction if the
62 domestic surplus lines insurer complies with any requirements of
63 that jurisdiction.
198569 - h0951-line 55.docx
Published On: 2/22/2022 9:40:17 PM
Page 3 of 11
COMMITTEE/SUBCOMMITTEE AMENDMENT
Bill No. HB 951 (2022)
Amendment No. 1
64 (8) All requirements imposed by the Florida Insurance Code
65 on admitted domestic insurers apply to domestic surplus lines
66 insurers unless domestic surplus lines insurers are otherwise
67 specifically exempted in this section.
68 (9) A domestic surplus lines insurer is exempt from s.
69 624.408.
70 (10) A surplus lines insurance policy issued by a domestic
71 surplus lines insurer is exempt from all statutory requirements
72 relating to insurance rating and rating plans; policy forms;
73 premiums charged to insureds; policy cancellation, nonrenewal,
74 and renewal; and other statutory requirements in the same manner
75 and to the same extent as surplus lines policies issued by a
76 surplus lines insurer domiciled in another state.
77 (11) Notwithstanding any other law, a policy issued by a
78 domestic surplus lines insurer is subject to taxes assessed upon
79 surplus lines policies issued by nonadmitted insurers, including
80 surplus lines premium taxes, but is not subject to other taxes
81 levied upon admitted insurers, whether domestic or foreign .
82 (12) A policy issued by a domestic surplus lines insurer
83 is not subject to the protections or requirements of the Florida
84 Insurance Guaranty Association Act, the Florida Life and Health
85 Insurance Guaranty Association Act, the Florida Workers'
86 Compensation Insurance Guaranty Association Act, or the Florida
87 Hurricane Catastrophe Fund.
198569 - h0951-line 55.docx
Published On: 2/22/2022 9:40:17 PM
Page 4 of 11
COMMITTEE/SUBCOMMITTEE AMENDMENT
Bill No. HB 951 (2022)
Amendment No. 1
88 (13) A domestic surplus lines insurer may not issue a
89 homeowners policy covering personal residential property located
90 in Florida if such policy was non-renewed or cancelled by an
91 admitted carrier "affiliate" as that term is defined in s.
92 624.10 within 12 months following the effective date of the non -
93 renewal or cancellation. This restriction shall not apply to
94 non-renewals or cancellations provided at the insured's request .
95 A domestic surplus lines insurer may not issue a policy designed
96 to satisfy the motor vehicle financial responsibility
97 requirements of this state under chapter 324, the Workers'
98 Compensation Law under chapter 440, or any other law of this
99 state mandating insurance coverage by an admitted insurer.
100 Section 3. Paragraph (b) of subsection (1) and paragraph
101 (b) of subsection (2) of section 458.320, Florida Statutes, are
102 amended to read:
103 458.320 Financial responsibility.—
104 (1) As a condition of licensing and maintaining an active
105 license, and prior to the issuance or renewal of an active
106 license or reactivation of an inactive license for the practice
107 of medicine, an applicant must by one of the following methods
108 demonstrate to the satisfaction of the board and the department
109 financial responsibility to pay claims and costs ancillary
110 thereto arising out of the rendering of, or the failure to
111 render, medical care or services:
198569 - h0951-line 55.docx
Published On: 2/22/2022 9:40:17 PM
Page 5 of 11
COMMITTEE/SUBCOMMITTEE AMENDMENT
Bill No. HB 951 (2022)
Amendment No. 1
112 (b) Obtaining and maintaining professional liability
113 coverage in an amount not less than $100,000 per claim, with a
114 minimum annual aggregate of not less than $300,000, from an
115 authorized insurer as defined under s. 624.09, from a surplus
116 lines insurer as defined under s. 626.914 s. 626.914(2), from a
117 risk retention group as defined under s. 627.942, from the Joint
118 Underwriting Association established under s. 627.351(4), or
119 through a plan of self-insurance as provided in s. 627.357. The
120 required coverage amount set forth in this paragraph may not be
121 used for litigation costs or attorney's fees for the defense of
122 any medical malpractice claim.
123 (2) Physicians who perform surgery in an ambulatory
124 surgical center licensed under chapter 395 and, as a continuing
125 condition of hospital staff privileges, physicians who have
126 staff privileges must also establish financial responsibility by
127 one of the following methods:
128 (b) Obtaining and maintaining professional liability
129 coverage in an amount not less than $250,000 per claim, with a
130 minimum annual aggregate of not less than $750,000 from an
131 authorized insurer as defined under s. 624.09, from a surplus
132 lines insurer as defined under s. 626.914 s. 626.914(2), from a
133 risk retention group as defined under s. 627.942, from the Joint
134 Underwriting Association established under s. 627.351(4),
135 through a plan of self-insurance as provided in s. 627.357, or
136 through a plan of self-insurance which meets the conditions
198569 - h0951-line 55.docx
Published On: 2/22/2022 9:40:17 PM
Page 6 of 11
COMMITTEE/SUBCOMMITTEE AMENDMENT
Bill No. HB 951 (2022)
Amendment No. 1
137 specified for satisfying financial responsibility in s. 766.110.
138 The required coverage amount set forth in this paragraph may not
139 be used for litigation costs or attorney's fees for the defense
140 of any medical malpractice claim.
141
142 This subsection shall be inclusive of the coverage in subsection
143 (1).
144 Section 4. Paragraph (b) of subsection (1) and paragraph
145 (b) of subsection (2) of section 459.0085, Florida Statutes, are
146 amended to read:
147 459.0085 Financial responsibility.—
148 (1) As a condition of licensing and maintaining an active
149 license, and prior to the issuance or renewal of an active
150 license or reactivation of an inactive license for the practi ce
151 of osteopathic medicine, an applicant must by one of the
152 following methods demonstrate to the satisfaction of the board
153 and the department financial responsibility to pay claims and
154 costs ancillary thereto arising out of the rendering of, or the
155 failure to render, medical care or services:
156 (b) Obtaining and maintaining professional liability
157 coverage in an amount not less than $100,000 per claim, with a
158 minimum annual aggregate of not less than $300,000, from an
159 authorized insurer as defined under s. 624.09, from a surplus
160 lines insurer as defined under s. 626.914 s. 626.914(2), from a
161 risk retention group as defined under s. 627.942, from the Joint
198569 - h0951-line 55.docx
Published On: 2/22/2022 9:40:17 PM
Page 7 of 11
COMMITTEE/SUBCOMMITTEE AMENDMENT
Bill No. HB 951 (2022)
Amendment No. 1
162 Underwriting Association established under s. 627.351(4), or
163 through a plan of self-insurance as provided in s. 627.357. The
164 required coverage amount set forth in this paragraph may not be
165 used for litigation costs or attorney's fees for the defense of
166 any medical malpractice claim.
167 (2) Osteopathic physicians who perform surgery in an
168 ambulatory surgical center licensed under chapter 395 and, as a
169 continuing condition of hospital staff privileges, osteopathic
170 physicians who have staff privileges must also establish
171 financial responsibility by one of the following methods:
172 (b) Obtaining and maintaining professional liability
173 coverage in an amount not less than $250,000 per claim, with a
174 minimum annual aggregate of not less than $750,000 from an
175 authorized insurer as defined under s. 624.09, from a surplus
176 lines insurer as defined under s. 626.914 s. 626.914(2), from a
177 risk retention group as defined under s. 627.942, from the Joint
178 Underwriting Association established under s. 627.351(4),
179 through a plan of self-insurance as provided in s. 627.357, or
180 through a plan of self-insurance that meets the conditions
181 specified for satisfying financial responsibility in s. 766.110.
182 The required coverage amount set forth in this paragraph may not
183 be used for litigation costs or attorney's fees for the defense
184 of any medical malpractice claim.
185
198569 - h0951-line 55.docx
Published On: 2/22/2022 9:40:17 PM
Page 8 of 11
COMMITTEE/SUBCOMMITTEE AMENDMENT
Bill No. HB 951 (2022)
Amendment No. 1
186 This subsection shall be inclusive of the coverage in subsection
187 (1).
188 Section 5. Paragraph (a) of subsection (2) of section
189 464.0123, Florida Statutes, is amended to read:
190 464.0123 Autonomous practice by an advanced practice
191 registered nurse.—
192 (2) FINANCIAL RESPONSIBILITY.—
193 (a) An advanced practice registered nurse registered under
194 this section must, by one of the following methods, demonstrate
195 to the satisfaction of the board and the department financial
196 responsibility to pay claims and costs ancillary thereto arising
197 out of the rendering of, or the failure to render, nursing care,
198 treatment, or services:
199 1. Obtaining and maintaining professional liability
200 coverage in an amount not less than $100,000 per claim, with a
201 minimum annual aggregate of not less than $300,000, fro m an
202 authorized insurer as defined in s. 624.09, from a surplus lines
203 insurer as defined in s. 626.914(3) s. 626.914(2), from a risk
204
205 -----------------------------------------------------
206 T I T L E A M E N D M E N T
207 Remove lines 6-35 and insert:
208 "domestic surplus lines insurer"; clarifying that domestic
209 surplus lines insurers are not "authorized insurers"; creating
210 s. 626.91805, F.S.; defining the term "nonadmitted insurer";
198569 - h0951-line 55.docx
Published On: 2/22/2022 9:40:17 PM
Page 9 of 11
COMMITTEE/SUBCOMMITTEE AMENDMENT
Bill No. HB 951 (2022)
Amendment No. 1
211 authorizing specified nonadmitted insurers to transact insura nce
212 as domestic surplus lines insurers under certain circumstances;
213 authorizing such insurers to write surplus lines insurance in
214 any jurisdiction; requiring such insurers to maintain a minimum
215 surplus amount; requiring domestic surplus lines insurers to be
216 deemed eligible surplus lines insurers and to be included in the
217 list of eligible surplus lines insurers; authorizing such
218 insurers to write certain kinds of insurance; requiring domestic
219 surplus lines insurers to be considered unauthorized insurers
220 for specified purposes; requiring domestic surplus lines
221 insurers to be considered nonadmitted insurers for specified
222 purposes; authorizing domestic surplus lines insurers to write
223 only surplus lines insurance; limiting the circumstances under
224 which such insurers may write surplus lines insurance;
225 prohibiting such insurers from holding any certificate of
226 authority to operate as an admitted insurer; providing
227 applicability of specified provisions of the Florida Insurance
228 Code to domestic surplus lines insurers; providing an exception;
229 providing an exemption from a specified law for domestic surplus
230 lines insurers; providing exemptions from specified requirements
231 for surplus lines insurance policies issued by such insurers;
232 providing that such policies are subject to specified taxes but
233 are not subject to certain other taxes; providing that such
234 policies are not subject to the protections and requirements of
235 specified acts or funds; specifying domestic surplus lines
198569 - h0951-line 55.docx
Published On: 2/22/2022 9:40:17 PM
Page 10 of 11
COMMITTEE/SUBCOMMITTEE AMENDMENT
Bill No. HB 951 (2022)
Amendment No. 1
236 insurers may not write homeowners policies, motor vehicle
237 coverage, or workers compensation coverage under certain
238 circumstances;
198569 - h0951-line 55.docx
Published On: 2/22/2022 9:40:17 PM
Page 11 of 11
CS/CS/HB 1095
HOUSE OF REPRESENTATIVES STAFF ANALYSIS
BILL #: CS/CS/HB 1095 Telephone Solicitation
SPONSOR(S): Civil Justice & Property Rights Subcommittee, Regulatory Reform Subcommittee, Beltran
TIED BILLS: IDEN./SIM. BILLS:
REFERENCE ACTION ANALYST STAFF DIRECTOR or
BUDGET/POLICY CHIEF
1) Regulatory Reform Subcommittee 17 Y, 0 N, As CS Thompson Anstead
2) Civil Justice & Property Rights Subcommittee 16 Y, 2 N, As CS Mathews Jones
3) Commerce Committee Thompson Hamon
SUMMARY ANALYSIS
Chapter 501, part IV, the Florida Telemarketing Act (FTA), regulates telemarketers and requires non-exempt
businesses engaged in telemarketing and their salespeople to be licensed by the Florida Department of
Agriculture and Consumer Services (DACS) before operating in Florida. Florida law also prohibits telephonic
sales calls that use an automated system for the selection or dialing of telephone numbers or the playing of a
recorded message (robocall) when a connection is completed without the prior express written consent of the
called party, with some exceptions.
Florida prohibits unsolicited telephonic sales calls and text messages from telemarketers. Residents who do
not wish to receive unsolicited telephonic sales calls may have their residential, mobile, or paging device
telephone number included on the Do Not Call List.
The bill:
Revises the prohibition on telephonic sales calls that use an automated system to specifically include
an automated system for the selection and dialing of telephone numbers.
Clarifies that “the transmission of a text message” is allowed when the called party has given prior
express written consent.
Revises the definition of “unsolicited telephonic sales call" to mean a telephonic sales call other than a
call made within 120 days after an express request of the called party, a call made to a caller who has
previously given prior express consent, or a call made for certain polling purposes.
Clarifies and limits calls or messages made solely in response to an inquiry initiated by the called party
to three such calls or messages in response to each inquiry.
Clarifies that in order for a prevailing party to be awarded attorney fees and costs from a non-prevailing
party in civil litigation cases, such litigation must result from a violation, instead of a transaction
involving a violation.
Prohibits a telephone solicitor from causing any unsolicited telephonic sales call to be initiated by the
use of any automated system.
Prohibits a telephone solicitor from causing any other person other than the caller to initiate a sales call.
The bill provides that it applies retroactively to July 1, 2021, and to any proceeding pending or commenced on
or after July 1, 2021. However, the amendments made to s. 501.059(11), F.S., relating to attorney fees are not
retroactive.
The bill does not appear to have a fiscal impact on state or local government.
The effective date of the bill is July 1, 2022.
This docum ent does not reflect the intent or official position of the bill sponsor or House of Representatives .
STORAGE NAME: h1095d.COM
DATE: 2/21/2022
FULL ANALYSIS
I. SUBSTANTIVE ANALYSIS
A. EFFECT OF PROPOSED CHANGES:
Background
Florida Telemarketing Act
Chapter 501, part IV, the Florida Telemarketing Act (FTA), requires non-exempt businesses engaged in
telemarketing and their salespeople to be licensed by the Florida Department of Agriculture and
Consumer Services (DACS) before operating in Florida. Certain exempt entities must have a valid
affidavit of exemption on file prior to operating in Florida. There are approximately 28 exemptions,
including: soliciting for religious, charitable, political or educational purposes; research companies;
newspapers; book and video clubs; cable television; and persons or companies with whom the
consumer has a prior business relationship.1
The FTA generally requires businesses that solicit the sale of consumer goods or services to:
Be licensed;2
Post a form of security;3
License all of their salespeople;4 and
Provide DACS with a list of all telephone numbers used to make sales calls. 5
An application for licensure as a telemarketer must include several pieces of information, including the
applicant’s identifying information, prior experience in the field, criminal and administrative history
(especially relating to fraud, theft, or unfair and deceptive trade practices), phone numbers from which
the telemarketer will make sales calls, and parent or affiliate entity under which it will transact business,
if applicable.6
Additionally, an applicant for licensure as a telemarketer must submit:
A script that will be used by its salespersons during calls, or other related literature;
The identity, address, date of birth, and alias of each of the applicant’s principal officers,
directors, trustees, shareholders, owners, partners, office managers, and salespersons who are
employed by or affiliated with the applicant; and
A $1,500 licensing fee.7
In Florida, it is unlawful for telemarketers to:
Accept novelty payments.8
Employ or be affiliated with an unlicensed salesperson.
Be employed by or affiliated with an unlicensed commercial telephone seller.
Operate without a license.
Make calls before 8 a.m. or after 8 p.m. local time at the called person’s time zone.
Fail to provide the call recipient with their name and telephone number.9
1 S. 501.604, F.S.
2 S. 501.605, F.S.
3 S. 501.611, F.S., requires a $50,000 bond, irrevocable letter of credit issued for the applicant, or a certificate of deposit in favor of
the Department for payment on findings of fraud, misrepresentation, breach of contract, or other v iolation by the applicant.
4 S. 501.607, F.S.
5 S. 501.605, F.S.
6 S. 501.605(2), F.S.
7 S. 501.605(5)(b), F.S.
8 S. 501.603(8), F.S., defines a “novelty payment” as a payment method that does not have systematic monitoring and includes
remotely created checks, remotely created payment orders, cash -to-cash money transfers (such as Western Union) and cash reload
mechanisms (such as MoneyPak or ReloadIt). Novelty payment methods are not systematically monitored, have little to no consumer
protection in the case of fraud or theft, and are used frequently in scams and other fraudulent activity.
9 S. 501.616, F.S.
STORAGE NAME: h1095d.COM PAGE: 2
DATE: 2/21/2022
Violations of the FTA are punishable by a civil fine of up to $10,000 per violation,10 the imposition of
criminal penalties, and up to a third degree felony. Repeat violations are enhanced to a second degree
felony.11 DACS and the office of the state attorney have investigative authority, including the power to
subpoena witnesses if a violation occurs.12 Reasonable attorney fees and costs may be awarded to the
prevailing party in a civil action as part of a judgment or administrative order. 13
Telephone Solicitations
Do Not Call List
Section 501.059, F.S., governs telephone solicitations. The law includes the Florida Do Not Call Act,
also known as the "Do Not Call” list (DNC list), which prohibits unsolicited telephonic sales calls and
text messages from telemarketers.14 Residents who do not wish to receive unsolicited telephonic sales
calls may have their residential, mobile, or paging device telephone number included on the DNC list.
DACS maintains the DNC list, it is free to register, and a registered number remains on the DNC list
indefinitely.15
An “unsolicited telephonic sales call” is defined as a telephonic sales call other than a call made:
In response to an express request of the person called;
Primarily in connection with an existing debt or contract, if payment or performance of such debt
or contract has not been completed at the time of such call;
To a person with whom the telephone solicitor has a prior or existing business relationship; or
By a newspaper publisher or his or her agent or employee in connection with his or her
business.16
Telephone solicitors 17 are prohibited from making telephonic sales calls 18 to consumers who register for
the DNC list. A “telephonic sales call” means a telephone call, text message, or voicemail transmission
to a consumer for the purpose of soliciting a sale of consumer goods or services, soliciting an extens ion
of credit for consumer goods or services, or obtaining information that will or may be used for the direct
solicitation of a sale of consumer goods or services or an extension of credit for such purposes .19
In addition to those consumers who are registered for the DNC list, a telephone solicitor may not call or
text a consumer who previously communicated to the telephone solicitor that he or she does not wish
to be contacted. Businesses and charities are required to maintain a list of consumers who have made
a do-not-call registration request. It is a violation of the Florida Do Not Call Act to call a consumer who
has requested placement on the company's do-not-call list.20
When a telephone number is made available through a caller ID service during a telephonic sales call,
the solicitor must ensure that the number is capable of receiving phone calls, and that the dialing of the
10 S. 501.619, F.S.
11 S. 501.623, F.S.
12 S. 501.617, F.S.
13 S. 501.621, F.S.
14 See s. 501.059, F.S.
15 Department of Agriculture and Consumer Services, Florida Do Not Call, https://www.fdacs.gov/Consumer-Resources/Florida-Do-
Not-Call (last visited Feb. 7, 2022).
16 S. 501.059(1)(k), F.S.
17 S. 501.059(1)(i), F.S., defines “telephone solicitor” as “a natural person, firm, organization, partnership, association, or corporation,
or a subsidiary or affiliate thereof, doing business in this state, who makes or causes to be made a telephonic sales call, in cluding, but
not limited to, calls made by use of automated dialing or recorded message devices.”
18 S. 501.059(1)(j), F.S., defines “telephonic sales call” as a telephone call, text message, or voicemail transmission to a consumer for
the purpose of soliciting a sale of any consumer goods or services, soliciting an extension of credit for consumer goods or s ervices, or
obtaining information that will or may be used for the direct solicitation of a sale of consumer goods or services or an extension of
credit for such purposes.
19 S. 501.059(1)(j), F.S.
20 S. 501.059(5), F.S.
STORAGE NAME: h1095d.COM PAGE: 3
DATE: 2/21/2022
number will connect the call recipient with the telephone solicitor or the seller on behalf of which the
phone call was placed.21
Anyone who receives an unsolicited sales call can report the call to DACS using the online Do Not Call
Complaint Form.22
Prior Express Written Consent
The law governing telephone solicitations also prohibits automated telephonic sales calls without the
prior express written consent of the called party.23
"Prior express written consent" is defined as a written agreement that:
Bears the signature of the called party;
Clearly authorizes the person making or allowing the placement of a telephonic sales c all by
telephone call, text message, or voicemail transmission to deliver or cause to be delivered to the
called party a telephonic sales call using an automated system for the selection or dialing of
telephone numbers, the playing of a recorded message when a connection is completed to a
number called, or the transmission of a prerecorded voicemail; and
Includes the telephone number to which the signatory authorizes a telephonic sales call to be
delivered.24
Prior express written consent must include a clear and conspicuous disclosure informing the called
party that:
By executing the agreement, the called party authorizes the person making or allowing the
placement of a telephonic sales call to deliver or cause to be delivered a telephonic sales call to
the called party using an automated system for the selection or dialing of telephone numbers or
the playing of a recorded message when a connection is completed to a number called; and
He or she is not required to directly or indirectly sign the written agreement or to agree to enter
into such an agreement as a condition of purchasing any property, goods, or services. 25
There is a rebuttable presumption that a telephonic sales call made to any Florida area code is a call
made to a Florida resident or to a person in Florida at the time of the call.26
Violations
A telephone solicitor who violates the provisions of Florida’s “Do Not Call” program is subject to an
injunction and a civil penalty27 with a maximum fine of $10,000 per violation, or an administrative fine28
with a maximum of $1,000 per violation. Additionally, a telephone solicitor may be subject to
responsibility for the consumer’s attorney fees and costs. 29
A party who was called in violation of the Do Not Call Act may bring an action for an injunction and
actual damages or $500, whichever is greater.30
Courts that find that a defendant willfully or knowingly violated these provisions are authorized to,
increase the amount of the award to not more than three times the amount of damages.31
21 S. 501.059(8)(b), F.S.
22 DACS, Florida Do Not Call, https://www.fdacs.gov/Consumer-Resources/Florida-Do-Not-Call (last visited Feb. 7, 2022).
23 S. 501.059(8)(a), F.S.
24 S. 501.059(1)(g), F.S.
25 S. 501.059(1)(g)4., F.S.
26 S. 501.059(8)(d), F.S.
27 S. 501.059(9)(a), F.S.
28 S. 501.059(9)(b), F.S.
29 S. 501.059(11), F.S.
30 S. 501.059(10)(a), F.S.
31 S. 501.059(10)(b ), F.S.
STORAGE NAME: h1095d.COM PAGE: 4
DATE: 2/21/2022
Federal Telephone Consumer Protection Act (TCPA) History
In an effort to address a growing number of telephone marketing calls, Congress enacted the
Telephone Consumer Protection Act (TCPA) in 1991. The TCPA restricts the making of telemarketing
calls and the use of automatic telephone dialing systems and artificial or prerecorded voice messages.
The rules apply to common carriers as well as to other marketers. In 1992, the Commission adopted
rules to implement the TCPA, including the requirement that entities making telephone solicitations
institute procedures for maintaining company-specific do-not-call lists.32
In July 2015, the Federal Communications Commission (FCC) established rules indicating that
telephone carriers can block unwanted calls at the request of consumers. 33 Following the FCC’s ruling,
the National Association of Attorneys General (NAAG) called upon the major telephone carriers to do
more to provide these services to consumers.34 Currently there are a number of call-blocking
applications that provide some relief from unwanted and spam calls. 35
On November 16, 2017, the FCC adopted new rules to allow voice service providers to proactively
block certain types of robocalls that are likely to be fraudulent because they come from certain types of
phone numbers, including those that do not or cannot make outgoing calls. 36 For example, perpetrators
have used IRS phone numbers that do not dial out to impersonate the tax agency, informing the people
who answer that they are calling to collect money owed to the U.S. government. Such calls appear
legitimate to the person who receives them and may often result in fraud or identity theft. Service
providers can now block such calls, as well as calls from invalid or illegitimate numbers.37
The FCC requires telemarketers to transmit caller identification information, including the number and
name of the caller. The telephone number provided must permit any individual to make a do-not-call
request during regular business hours. It also provides that any person or entity that engages in
telemarketing is prohibited from blocking the transmission of caller identification information. However,
tax-exempt nonprofit organizations are exempt from compliance with these rules.38
With regard to telephone carriers, the FCC allows carriers to offer their customers external call-blocking
applications on their landlines and allows carriers to directly block certain illegal robocalls. In December
2019, Congress enacted the “TRACED Act” to aid enforcement efforts between law enforcement
agencies and the private sector on traceback issues, and required the FCC to issue rules “for the
registration of a single consortium that conducts private-led efforts to trace back the origin of suspected
unlawful robocalls.”39 In July of 2020, the FCC designated the US Telecom-led Industry Traceback
Group (ITG) as the Official Consortium for coordinating industry-led efforts to trace back the origin of
suspected unlawful robocalls.40
32 Federal Communications Commission, FCC Actions on Robocalls, Telemarketing, https://www.fcc.gov/general/telemarketing-and-
robocalls (last visited Feb. 7, 2022).
33 Declaratory Ruling and Order, In the Matter of Rules and Regulations Implementing the Telecommunications Consumer Protection
Act of 1991, 30 FCC Rcd. 7961 (July 10, 2015).
34 National Association of Attorneys General, Do Not Call: The History of Do Not Call and How Telemarketing Has Evolved,
https://www.naag.org/consumer-protection/attorney-general-journal/do-not-call-the-history-of-do-not-call-and-how-telemarketing-
has-evolved/ (last visited Feb. 7, 2022).
35 CTIA, The Wireless Association, How to Stop Robocalls, https://www.ctia.org/consumer-tips/robocalls (last visited Feb. 7, 2022).
36 32 FCC Rcd 9706 (11).
37 FCC, Stop Unwanted Calls and Texts, https://www.fcc.gov/consumers/guides/stop-unwanted-calls-and-texts (last visited Feb. 7,
2022).
38 47 C.F.R. s. 64.1601.
39 Pallone-Thune Telephone Robocall Abuse Criminal Enforcement and Deterrence Act, Pub. L. No. 116 -105, 133 Stat. 3274 (2019).
40
USTelecom The Broadband Association, FCC Names USTelecom’s Industry Traceback Group as Official Robocall Traceback
Consortium, https://www.ustelecom.org/fcc-names-ustelecoms-industry-traceback-group-as-official-robocall-traceback-consortium/
(last visited Feb. 7, 2022).
STORAGE NAME: h1095d.COM PAGE: 5
DATE: 2/21/2022
According to the ITG’s first annual report, over 100 companies participated in over 1,000 ITG traceback
investigations in 2019, identifying more than 10 million illegal robocalls and resulting in more than 20
subpoenas and/or civil investigative demands from federal and state enforcement agencies. 41
The ITG reported in a letter to the FCC on November 13, 2020, that about 100 providers had failed to
cooperate with the ITG, including approximately 30 based in the United States. 42 The ITG encouraged
the FCC to bring aggressive enforcement against robocallers and voice service providers that routinely
refuse to participate in the traceback process.43
In its Fourth Report and Order on Advanced Methods to Target and Eliminate Unlawful Robocalls
released on December 30, 2020, the FCC required “all voice service providers to respond to traceback
requests from the FCC, civil and criminal law enforcement and the Consortium.” 44
The TRACED Act requires the FCC to issue an annual public notice seeking applicants to serve as the
registered consortium.45 On August 25, 2021, the FCC selected the Traceback Group to continue as
the registered consortium.46
National Do Not Call Registry
Although individual states were first to address consumers’ requests to stop unwanted telemarketing
calls,47 the federal government soon followed with a National Do Not Call Registry in 2003. 48 In July
2003, the federal government issued a report and order establishing the National Do Not Call registry.
The national registry covers all telemarketers (with the exception of certain nonprofit organizations),
and applies to both interstate and intrastate calls. The registry is administered by the FTC. To reduce
the number of hang-up and dead air calls consumers experience, the Commission’s telemarketing rules
also contain restrictions on the use of autodialers and requirements for transmitting caller ID
information.
As the National Do Not Call Registry has gained popularity, some states have decided to forgo the
expense of maintaining their own lists. Currently, only 12 states maintain their own Do Not Call lists:
Colorado, Florida, Indiana, Louisiana, Massachusetts, Mississippi, Missouri, Oklahoma, Pennsylvania,
Tennessee, Texas and Wyoming.49
Constitutionality of Do Not Call Registries
Do Not Call registries have been subject to numerous state and federal lawsuits challenging their
constitutionality. Such lawsuits have been unsuccessful, and the National Registry has been upheld as
constitutional. The courts have found the Do Not Call Registry is a reasonable restriction on
commercial speech and that the FTC is authorized to promulgate rules for the registry. The Tenth
Circuit Court of Appeals stated, “the do-not-call registry prohibits only telemarketing calls aimed at
consumers who have affirmatively indicated that they do not want to receive such calls and for whom
such calls would constitute and invasion of privacy.” Thus, the government has a role in restricting the
41 InsideArm, The Latest Developments in the World of Call Delivery, https://www.insidearm.com/news/00047073-latest-
developments-world-call-delivery/ (last visited Feb. 7, 2022).
42 USTelecom, Enforcement Bureau Requests Information on the Status of Private -Led
Traceback Efforts of Suspected Unlawful Robocalls, EB Docket No. 20-195, Nov. 13, 2020,
https://docs.fcc.gov/public/attachments/DOC-368957A2.pdf (last visited Feb. 7, 2022).
43 InsideArm, The Latest Developments in the World of Call Delivery, https://www.insidearm.com/news/00047073-latest-
developments-world-call-delivery/ (last visited Feb. 7, 2022).
44 FCC, Fourth Report and Order (Dec. 29, 2020) https://docs.fcc.gov/public/attachments/FCC-20-187A1.pdf (last visited Feb. 7,
2022).
45 TRACED Act, s. 13(d)(2).
46 FCC, Report and Order DA 21-1047 (Aug. 25, 2021) https://www.fcc.gov/document/fcc-retains-industry-traceback-group-robocall-
consortium (last visited Feb. 7, 2022).
47 At least 28 states, starting with Florida in 1987, have implemented Do Not Call registries.
48 Federal Trade Commission, National Do Not Call Registry, https://www.donotcall.gov/ (last visited Feb. 7, 2022).
49 Contact Compliance Center Corporation, State Do Not Call Lists, https://www.dnc.com/faq/state-do-not-call-lists?page=1 (last
visited Feb. 7, 2022).
STORAGE NAME: h1095d.COM PAGE: 6
DATE: 2/21/2022
ability of a telemarketer to reach a household via telephone, and because the government has left the
ultimate decision of whether or not to be placed on the registry up to the individual, the government has
not restricted the First Amendment rights of the solicitor.50
Claims of preemption have also been unsuccessful. The TCPA’s non-preemption clause,51 often
referred to as the savings clause, has been relied upon by courts to uphold states’ Do Not Call
Registries. The clause states that “[n]othing in this section or in the regulations prescribed under this
section shall preempt any State law that imposes more restrictive intrastate requirements or regulation.”
The clause indicates specific types of actions that a state may prohibit or place more restrictive
regulations on, such as sending unsolicited advertisements via fax, using of automatic dialing systems
and prerecorded messages, and making telephone solicitations. 52
The TPCA is silent on a state’s ability to place regulations that are more stringent than the TCPA
requirements for interstate calls.53 However, at least one federal court of appeals has held that state
regulations and prohibitions of telemarketing that cross state boundaries are valid.54
Caller ID and “Spoofing”
“Spoofing” is the practice of altering or manipulating the caller ID information that is received in
conjunction with an incoming telephone call. In the past, caller ID services were not common and
spoofing required special equipment or a relatively high degree of technical sophistication. However,
advances in technology, such as the proliferation of cellular phones, cell phone applications, and the
widespread availability of Voice over Internet Protocol (VoIP) allows anyone to inexpensively spoof his
or her caller ID using the services of a third-party spoofing provider.55 For example, one such spoofing
provider allows a consumer to download an app on his or her smartphone, purchase credits towards
call time, and simply input the number that he or she wants displayed on the receiving end in order to
place an untraceable, spoofed call.56
In response to the growing practice of spoofing, Congress amended the TCPA to add the Truth in
Caller ID Act of 2009. Under the Act and FCC rules, a person or entity is prohibited from transmitting
false or misleading caller ID information “with the intent to defraud, cause harm, or wrongly obtain
anything of value,” with a penalty of up to $10,000 for each violation.57 However, spoofing is not illegal
when no harm is intended or caused, or if the caller has legitimate reasons to hide his or her
information. Examples may include law enforcement agencies working on a case, a victim of domestic
abuse, or a doctor who wishes to discuss private medical matters with a patient.58
In 2008, Florida passed its own anti-spoofing legislation, The Florida Caller ID Anti-Spoofing Act
(2008).59 The Act prohibits any person from:
Making a call with knowledge that false information was entered into a telephone caller ID
system with the intent to deceive, defraud, or mislead the call’s recipient; and
Entering false information into a telephone caller ID system “with the intent to deceive,
defraud, or mislead” the call’s recipient.
50 Mainstream Marketing Services Inc v. Federal Trade Commission, 358 F.3d 1228 (10th Cir. 2004).
51 47 U.S.C. s. 227(f)(1).
52 National Association of Attorneys General, Do Not Call: The History of Do Not Call and How Telemarketing Has Evolved ,
NAGTRI Journal, Vol. 1 No. 4.
53 47 U.S.C. s. 227 (f)(1).
54 See Patriotic Veterans, Inc. v. Indiana, 736 F.3d 1041 at 1044-45 (7th Cir. 2013) and Patriotic Veterans, Inc. v. State of Indiana,
No. 16-2059 (7th Cir. 2017)( “Preventing automated messages to persons who don’t want their peace and quiet disturbed is a valid
time, place, and manner restriction.”).
55 See FCC 11-100, Rules and Regulations Implementing the Truth in Caller ID Act of 2009 , WC Docket No. 11-39, (June 22, 2011),
at 9116, https://apps.fcc.gov/edocs_public/attachmatch/FCC-11-100A1_Rcd.pdf (last visited Feb. 7, 2022).
56 Business Insider, It’s Surprisingly Easy for a Hacker to Call Anyone From Your Personal Phone Number (March 1, 2016),
http://www.businessinsider.com/phone-number-spoofing-2016-2 (last visited Feb. 7, 2022).
57 47 U.S.C. s. 227(e).
58 FCC, Caller ID Spoofing, https://www.fcc.gov/consumers/guides/spoofing-and-caller-id (last visited Feb. 7, 2022).
59 S. 817.487, F.S. (2008).
STORAGE NAME: h1095d.COM PAGE: 7
DATE: 2/21/2022
However, a U.S. District Court in Miami found that Florida’s Caller ID Anti-Spoofing Act (2008) violated
the Commerce Clause of the United State Constitution because it had the effect of controlling spoofing
practices that took place entirely outside the state.60 Similarly, in 2011, a federal court in Mississippi
struck down Mississippi’s anti-spoofing law, which was substantially similar to Florida’s. 61
Spam Robocalls
According to the American Association of Retired Persons (AARP), robocalls have become an
epidemic. YouMail, a company that provides call-blocking and call-management services, estimates
that there were 58.5 billion robocalls in the U.S. in 2019 and that 44% of them were placed by
scammers.62
A February 2021 survey found that 46% of Americans reported receiving spam phone calls on their cell
phone every day, and another 24% receiving them multiple times per week.63
Scammers often use caller ID spoofing to mask their true location and make it appear the call is from a
legitimate or local number to raise the odds of getting an answer. What follows is a robotic voice on the
other end claiming to represent a utility, a name-brand company, or a government agency (such as the
Social Security Administration or the Internal Revenue Service). It might offer a free cruise, inexpensive
health insurance, or a low-interest loan. Answering or engaging with the call may lead to a live
scammer, who realizes he or she has found a “live” number, and thus may call repeatedly.64
Many robocalls are legal. The FCC allows such robocalls for informational or noncommercial purposes,
such as polling, political campaigning and outreach by nonprofit groups.
Advances in technology have magnified fundamental flaws in the American phone system , enabling
unrelenting robocalls from untraceable origins. As a result, it is incredibly profitable to use spam calls to
drive business regardless of whether the caller is perpetuating a scam or is a legitimate business using
telemarketing to increase sales.65
Consent and Revocation
The TCPA prohibits a telemarketer from using an automatic telephone dialing system (ATDS) to place
a call or send a text message to a cell phone without the recipient’s “prior express consent.”66 The
type of consent depends on the nature of the call or text. Consent generally can be revoked by any
reasonable method. However, some courts recently have considered whether revocation may be
restricted in circumstances where the consent is included on a bilateral agreement. 67
There are two types of prior consent provided for under the TCPA:
Prior express consent is required to place autodialed, non-solicitation calls or texts to a cell
phone.
60 TelTech Systems, Inc. v. McCollum, No. 08-61664-CIV-MARTINEZ-BROWN (S.D. Fla. Filed Oct. 16, 2008).
61 TelTech Systems, Inc. v. Barbour, 866 F. Supp. 2d 571 (S.D. Miss. 2011), aff’d sub nom Teltech Systems, Inc. v. Bryant, 702 F.2d
232 (5th Cir. 2012).
62 AARP, Robocalls, https://www.aarp.org/money/scams -fraud/info-2019/robocalls.html?CM P=KNC-DSO-Adobe-Google-FRD-
Ongoing-Robocalls-NonBrand-Exact-
Robocalls&gclid=EAIaIQobChMIlv mq_4Sr7wIVFYv ICh 2RAwjqEAA YA iAAEgJD4v D_BwE&gclsrc=aw.ds (last visited Feb. 7,
2022).
63 Simon van Zuylen-Wood, How Robo-Callers Outwitted the Government and Completely Wrecked the Do Not Call List (Jan. 11,
2018), https://www.washingtonpost.com/lifestyle/magazine/how-robo-call-moguls-outwitted-the-government-and-completely-
wrecked-the-do-not-call-list/2018/01/09/52c769b6-df7a-11e7-bbd0-9dfb 2e37492a_story.html?ut m_term=.8a6e6ea55f32 (Last visited
Feb. 7, 2022).
64 AARP, supra note 62.
65 AARP, supra note 62.
66 47 U.S.C. s. 227(b)(1)(A)(iii).
67 The National Law Review, Consent and Revocation Under the TCPA, https://www.natlawreview.com/print/article/consent-and-
revocation-under-tcpa (last visited Feb. 7, 2022).
STORAGE NAME: h1095d.COM PAGE: 8
DATE: 2/21/2022
Prior express written consent is a heightened form of consent, must be evidenced by a written
agreement signed by the call recipient, and is required to place autodialed telemarketing or
advertising calls or texts to a cell phone. The written agreement must include a clear and
conspicuous disclosure informing the consumer signing that:
o By signing the agreement, the consumer is authorizing autodialed telemarketing or
advertising calls or texts; and
o The consumer is not required to sign the agreement as a condition of purchasing any
property, goods, or services.68
Prior express consent can be written or verbal. Voluntarily providing one’s cellular number also
constitutes prior express consent where:
The individual gives “prior express consent” to be called or texted at the number provided;
The individual has provided his or her number to the party calling or texting; and
There is some relation between the communications and the reason for which an individual
provided his or her number.69
Prior express written consent is required for calls or texts to cell phones that introduce an
advertisement,70 or constitute “telemarketing”71 and are sent using an ATDS. The TCPA’s advertising
prong merely requires introducing, at the most basic level, the commercial availability of a service. In
similar fashion, telemarketing occurs when the context of a text or call indicates that it was initiated and
transmitted to a person for promoting property, goods, or services. Neither the TCPA nor its
implementing regulations requires an explicit mention of a good, product, or service where the
implication of an improper purpose is clear from the context.72
Revocation of consent is controlled by the consenting party, and may be communicated orally or in
writing by any reasonable means. However, where consent is contractually provided, as is the case in
credit agreements, the parties can bargain to require mutuality or particular revocation methods.
Recently, a number of courts have addressed whether a consumer may unilaterally revoke consent
when it is a term in a bargained-for contract.73
In 2017, the federal Second Circuit Court of Appeal held that a consumer may not unilaterally revoke
consent in a bargained-for, bilateral contract.74 The court based its decision on “black-letter” contract
law, referring to a fundamental aspect of contractual relationships that one party may not alter or
revoke a term of a bilateral agreement without the other party’s consent. The court found that a
consumer, having consented to be contacted via an auto-dialer, could not unilaterally revoke consent
without the caller’s permission. Notably, the court distinguished case law from the Third and Eleventh
Circuit Courts of Appeal, where consumers retained their ability to revoke consent because it was given
in credit applications, rather than as part of a bilateral contract. 75
In 2018, a United States District Court in Florida also held that consent provided by contract cannot be
unilaterally revoked.76 The court noted that no provision in the TCPA indicates that contractually-
granted consent can be unilaterally revoked where it would contradict black-letter contract law. The
court held that a consumer who has consented to auto-dialed communication in a contract for services
cannot later revoke such consent.77
68 Id.
69 Federal Communications Commission, Rules & Regulations Implementing the TCP Act of 1991 et al., 30 FCC Rcd at 7991–92.
70 47 C.F.R. s. 64.1200(f)(1), defines an “advertisement” as “any material advertising the commercial availability or quality of any
property, goods, or services,” and “telemarketing” is defined as “the initiation of a telephone call or message for the purpo se of
encouraging the purchase or rental of, or investment in, property, goods, or services, which is transmitted to any person.”
71 47 C.F.R. s. 64.1200(f)(12).
72 The National Law Review, supra note 67.
73 Id.
74 Reyes v. Lincoln Auto. Fin. Servs., 861 F.3d 51, 53 (2d Cir. 2017).
75 The National Law Review, supra note 67.
76 Medley v. Dish Network, LLC, Case No. 8:16-cv-2534-T-36TBM, 2018 WL 4092120, at *10 (M.D. Fla. Aug. 27, 2018).
77 The National Law Review, supra note 67.
STORAGE NAME: h1095d.COM PAGE: 9
DATE: 2/21/2022
However, other courts have disagreed, rejecting the argument that consent is irrevocable. In 2018, a
United States District Court in Tennessee adopted the general rule that consumer consent may be
revoked at any time by “any reasonable means.” 78 The court held that consumers retain the ability to
revoke their prior consent despite having a bilateral agreement with the caller. Other courts have also
allowed for revocation of consent by any means in the absence of a contractual restriction on the
means by which a consumer may revoke consent.79
In December 2020, the U.S. Supreme Court heard oral arguments in a landmark case regarding
whether consumers can sue a company for using an ATDS to text or call the consumers at a phone
number saved in the company’s system. At issue was the meaning of the TCPA’s prohibition on using
an ATDS to transmit communications to cell phones. The question before the Supreme Court was
“whether the definition of ATDS in the TCPA encompasses any device that can ‘store’ and
‘automatically dial’ telephone numbers, even if the device does not use a random or sequential number
generator.”80
On April 1, 2021, the Court ruled that to qualify as an ATDS under the TCPA, a device must have the
capacity to either store a telephone number using a random or sequential number generator or produce
a telephone number using a random or sequential number generator. The Court concluded that merely
having the capacity to store numbers and dial them automatically is not enough to make a device
qualify as an ATDS.81
Specifically, related to consent, the TCPA rules require telemarketers to:
Obtain prior express written consent from consumers before robocalling them;
No longer be able to use an "established business relationship" to bypass the consent
requirement; and
Require an automated, interactive "opt-out" mechanism to be used during each robocall so
consumers can immediately tell the telemarketer to stop calling. 82
The TCPA includes a private right of action.83 A caller who places a call to a cell phone without consent
using an ATDS is subject to $500 in damages per call. The damages amount is $1,500 per call if the
court finds that the defendant willfully or knowingly committed the violation. 84
Specifically, related to consent, the Florida telephone solicitation law:85
Prohibits robocalls without the prior express written consent of the called party.
When the called party has given such consent, only allows robocalls in certain circumstances
through the use of an “automated system for the selection or dialing of telephone numbers or
the playing of a recorded message” when a connection is completed to a number called.
78 Ammons v. Ally Fin., Inc., Case No. 3:17-cv-00505, 2018 WL 3134619, at *15 (M.D. Tenn. June 27, 2018).
79 Few v. Receivables Performance Mgmt., Case No. 1:17-CV-2038-KOB, 2018 WL 5923765 at *1 (N.D. Ala. Nov. 13, 2018).
80 Facebook, Inc., Petitioner vs. Noah Duguid, et al., U.S., No. 19-511.
81 Id.
82 FCC, supra note 32.
83 47 U.S.C. s. 227(b)(3).
84 Id. at s. 227(b)(3)(B)-(C).
85 S. 501.059(8), F.S.
STORAGE NAME: h1095d.COM PAGE: 10
DATE: 2/21/2022
Effect of Proposed Changes
The bill defines an “automated system” as a computerized, mechanical, or other technological system
or device that creates a phone number, stores or selects any phone number from any database or list,
and then causes that number to be called.
The bill specifies that an automated system includes any system which operates by “click to call” or
where the caller or other person selects numbers off of a list to call. An automated system does not
include a situation where a user selects numbers from a contact list or phone log.
The bill defines a “caller” as a natural person who causes a call to be made and who is ready to speak
to the caller at the time the call is made.
The bill clarifies that “consumer goods or services” include services that are related to personal, family,
or household purposes.
The bill revises the definition of “prior written consent” as it is relates to the type of automated calling
system that is utilized. As such, the bill clarifies that prior written consent means a written agreement
that:
Bears the signature of the called party,
Clearly authorizes the person making or allowing placement of a sales call or text using an
automated system for the selection and dialing of the number or the transmission of a text
message;
Includes a number to which the signatory authorizes a sales call to be delivered; and
Includes certain clear and conspicuous disclosures to the called party.
The bill provides that a signature line with a specified notice to the consumer is presumptively
satisfactory under the requirements established for prior written consent. The notice must be within two
inches of the signature line and must include in at least 12-point bold font, the following language:
By signing below, you authorize [NAME] to place a telephonic sales call to you at
[TELEPHONE PHONE NUMBER] by way of telephone calls, text messages, or voicemail
transmissions using an automated system for the selection and/or dialing of telephone
numbers or the playing of a recorded message when a connection is completed to your phone
number. YOU ARE NOT REQUIRED TO PROVIDE SUCH AUTHORIZATION AS A
CONDITION OF PURCHASING ANY PROPERTY, GOODS, OR SERVICES.
The bill revises the definition of a “signature” to include agreements obtained via a compliant email,
website form, text message, telephone keystroke, or voice recording.
The bill also revises the definition of “unsolicited telephonic sales call" to exclude a telephonic sales call
made within 120 days after an express request of the called party and limits the number of calls and
STORAGE NAME: h1095d.COM PAGE: 11
DATE: 2/21/2022
messages to three calls or messages in response to each response to an inquiry initiated by a called
party.
The bill adds a definition of “selection,” to mean to store or randomly produce telephone numbers to be
called and to create a list of called parties without manual intervention. The bill clarifies that the use of
an automated telephone dialing system includes the transmission of live messages or text messages.
Further, the bill provides that in order for a prevailing party to be awarded attorney fees and costs in
civil litigation cases, the subject litigation must result from a violation, rather than from a transaction
involving a violation.
The bill prohibits a telephone solicitor from causing any unsolicited telephonic sales call to be initiated
by the use of any automated system. The bill further prohibits a telephone solicitor from causing any
person other than the caller to initiate a sales call.
The bill provides that it is remedial in nature and applies retroactively to July 1, 2021, and to any
proceeding pending or commenced on or after July 1, 2021. However, the bill specifies that the
provisions under s. 501.059(11), F.S., relating to attorney fees, are not retroactive and only apply
prospectively.
B. SECTION DIRECTORY:
Section 1: Amends s. 501.059, F.S., relating to telephone solicitation.
Section 2: Provides an effective date.
II. FISCAL ANALYSIS & ECONOMIC IMPACT STATEMENT
A. FISCAL IMPACT ON STATE GOVERNMENT:
1. Revenues:
None.
2. Expenditures:
None.
B. FISCAL IMPACT ON LOCAL GOVERNMENTS:
1. Revenues:
None.
2. Expenditures:
None.
C. DIRECT ECONOMIC IMPACT ON PRIVATE SECTOR:
The bill may have an indeterminate negative fiscal impact on legitimate telemarketers to the extent they
do not currently engage in business practices consistent with the requirements in the bill.
The bill may protect consumers from unwanted and fraudulent telephone solicitations.
D. FISCAL COMMENTS:
None.
STORAGE NAME: h1095d.COM PAGE: 12
DATE: 2/21/2022
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 appear to create a need for rulemaking or rulemaking authority.
C. DRAFTING ISSUES OR OTHER COMMENTS:
None.
IV. AMENDMENTS/ COMMITTEE SUBSTITUTE CHANGES
On January 20, 2022, the Regulatory Reform Subcommittee adopted one strike-all amendment, and
one amendment to the strike-all amendment, and reported the bill favorably as a committee substitute.
The committee substitute:
Provides that the bill is remedial in nature and applies retroactively to July 1, 2021, and to any
proceeding pending or commenced on or after July 1, 2021.
On February 7, 2022, the Civil Justice and Property Rights Subcommittee adopted one strike-all
amendment and reported the bill favorably as a committee substitute. The committee substitute:
Provided definitions for the terms “automated system,” “caller,” and “selection” and amended the
definition for “signature” to include agreements obtained via a compliant email, text message,
telephone keypress, or voice recording.
Provided that a designated signature line with a specific notice is presumptively satisfactory to
meet the requirements of prior express written consent.
Amended the exceptions to an unsolicited telephonic sales call to include a call to a person who
has provided prior express written consent, and to include calls for the purpose of polling or
soliciting ideas and opinions when such polling is done by text message.
Provided that the bill does not prohibit the use of an automated system for the selection and
dialing of phone numbers with live messages or live text messages so long as the call or
message is made in response to an inquiry initiated by the called party. Only three such calls or
messages may be made in response to each inquiry.
Prohibited a telephone solicitor from causing any unsolicited telephonic sales c all to be initiated
by the use of any automated system.
Prohibited a telephone solicitor from initiating any calls by anyone other than the caller.
Clarified that the bill is remedial in nature and applies retroactively to July 1, 2021; but, specified
that the amendments made to section 501.059, F.S., relating to attorney fees are prospective
only.
This analysis is drafted to the committee substitute as passed by the Civil Justice and Property Rights
Subcommittee.
STORAGE NAME: h1095d.COM PAGE: 13
DATE: 2/21/2022
F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
CS/CS/HB 1095 2022
1 A bill to be entitled
2 An act relating to telephone solicitation; amending s.
3 501.059, F.S.; providing and revising definitions;
4 conforming provisions; authorizing the use of
5 automated systems with live messages or text messages
6 in response to certain inquiries; providing a
7 limitation; prohibiting certain telephonic sales
8 calls; revising provisions for the award of attorney
9 fees and costs; providing retroactive applicability;
10 providing an effective date.
11
12 Be It Enacted by the Legislature of the State of Florida:
13
14 Section 1. Subsections (9) through (13) of section
15 501.059, Florida Statutes, are renumbered as subsections (10)
16 through (14), respectively, subsections (1) and (2), par agraph
17 (a) of subsection (8), and paragraphs (a), (d), and (e) of
18 present subsection (11) are amended, paragraph (e) is added to
19 subsection (8), and a new subsection (9) is added to that
20 section, to read:
21 501.059 Telephone solicitation.—
22 (1) As used in this section, the term:
23 (a) "Automated system" means a computerized, mechanical,
24 or other technological system or device that creates a telephone
25 number, stores or selects any telephone number from any database
Page 1 of 8
CODING: Words stricken are deletions; words underlined are additions.
hb1095-02-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 1095 2022
26 or list, and then causes that telephone number to be called. The
27 term includes any system which the caller or any other person
28 operates by click-to-call or which the caller or any other
29 person selects telephone numbers from a list to call. The term
30 does not include a user selecting telephone numbers from a
31 contact list or telephone log on a cellular, handheld, or
32 landline device.
33 (b)(a) "Called party" means a person who is the regular
34 user of the telephone number that receives a telephonic sales
35 call.
36 (c) "Caller" means a natural person who causes a call to
37 be made and who is ready to speak to the called party at the
38 time the call is made.
39 (d)(b) "Consumer" means an actual or prospective
40 purchaser, lessee, or recipient of consumer goods or services.
41 (e)(c) "Consumer goods or services" means real property or
42 tangible or intangible personal property or services that are is
43 normally used for personal, family, or household purposes. The
44 term includes, including, but is not limited to, any such
45 property intended to be attached to or installed in a ny real
46 property without regard to whether it is so attached or
47 installed, as well as cemetery lots and timeshare estates, and
48 any related services related to such property.
49 (f)(d) "Department" means the Department of Agriculture
50 and Consumer Services.
Page 2 of 8
CODING: Words stricken are deletions; words underlined are additions.
hb1095-02-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 1095 2022
51 (g)(e) "Doing business in this state" means businesses
52 that conduct telephonic sales calls from a location in Florida
53 or from other states or nations to consumers located in Florida.
54 (h)(f) "Merchant" means a person who, directly or
55 indirectly, offers or makes available to consumers any consumer
56 goods or services.
57 (i)(g) "Prior express written consent" means a written
58 agreement that:
59 1. Bears the signature of the called party;
60 2. Clearly authorizes the person making or allowing the
61 placement of a telephonic sales call by telephone call, text
62 message, or voicemail transmission to deliver or cause to be
63 delivered to the called party a telephonic sales call using an
64 automated system for the selection and or dialing of telephone
65 numbers, the playing of a recorded message when a connection is
66 completed to a number called, the transmission of a text
67 message, or the transmission of a prerecorded voicemail;
68 3. Includes the telephone number to which the signatory
69 authorizes a telephonic sales call to be delivered; and
70 4. Includes a clear and conspicuous disclosure informing
71 the called party that:
72 a. By executing the agreement, the called party authorizes
73 the person making or allowing the placement of a telephonic
74 sales call to deliver or cause to be delivered a telephonic
75 sales call to the called party using an automated system for the
Page 3 of 8
CODING: Words stricken are deletions; words underlined are additions.
hb1095-02-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 1095 2022
76 selection and or dialing of telephone numbers or the playing of
77 a recorded message when a connection is completed to a number
78 called, the transmission of a text message, or the transmission
79 of a prerecorded voicemail; and
80 b. He or she is not required to directly or indirectly
81 sign the written agreement or to agree to enter into such an
82 agreement as a condition of purchasing any property, goods, or
83 services.
84
85 For purposes of subparagraph 4., a designated signature line
86 with the following notice in at least 12-point bold font within
87 2 inches of the signature is presumptively satisfactory in form:
88
89 By signing below, you authorize [NAME] to place a
90 telephonic sales call to you at [TELEPHONE NUMBER] by way
91 of telephone calls, text messages, or voicemail
92 transmissions using an automated system for the selection
93 and/or dialing of telephone numbers or the playing of a
94 recorded message when a connection is completed to your
95 telephone number. YOU ARE NOT REQUIRED TO PROVIDE SUCH
96 AUTHORIZATION AS A CONDITION OF PURCHASING ANY PROPERTY,
97 GOODS, OR SERVICES.
98
99 (j) "Selection" means to store or randomly produce
100 telephone numbers to be called and to create a list of called
Page 4 of 8
CODING: Words stricken are deletions; words underlined are additions.
hb1095-02-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 1095 2022
101 parties without manual intervention.
102 (k)(h) "Signature" includes an electronic or digital
103 signature, including agreements obtained through a compliant e-
104 mail, website form, text message, telephone keypress, or voice
105 recording, to the extent that such form of signature is
106 recognized as a valid signature under applicable federal law or
107 state contract law.
108 (l)(i) "Telephone solicitor" means a natural person, firm,
109 organization, partnership, association, or corporation, or a
110 subsidiary or affiliate thereof, doing business in this state,
111 who makes or causes to be made a telephonic sales call,
112 including, but not limited to, calls made by use of automated
113 dialing or recorded message devices.
114 (m)(j) "Telephonic sales call" means a telephone call,
115 text message, or voicemail transmission to a consumer for the
116 purpose of soliciting a sale or acquisition of any consumer
117 goods or services, soliciting an extension of credit for
118 consumer goods or services, or obtaining information that will
119 or may be used for the direct solicitation of a sale or
120 acquisition of consumer goods or services or an extension of
121 credit for such purposes.
122 (n)(k) "Unsolicited telephonic sales call" means a
123 telephonic sales call other than a call made:
124 1. Within 120 days after In response to an express request
125 of the person called party;
Page 5 of 8
CODING: Words stricken are deletions; words underlined are additions.
hb1095-02-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 1095 2022
126 2. Primarily in connection with an existing debt or
127 contract, if payment or performance of such debt or contract has
128 not been completed at the time of such call;
129 3. To a person with whom the telephone solicitor has a
130 prior or existing business relationship; or
131 4. By a newspaper publisher or his or her agent or
132 employee in connection with his or her business;
133 5. To a person who has provided prior express written
134 consent to be contacted; or
135 6. For the purpose of polling or soliciting the expression
136 of ideas, opinions, or votes, including when such polling or
137 soliciting is made by text message.
138 (o)(l) "Voicemail transmission" means technologies that
139 deliver a voice message directly to a voicemail application,
140 service, or device.
141 (2) Any telephone solicitor who makes an unsolicited
142 telephonic sales call to a called party residential, mobile, or
143 telephonic paging device telephone number shall identify himself
144 or herself by his or her true first and last names and the
145 business on whose behalf he or she is soliciting immediately
146 upon making contact by telephone with the called party person
147 who is the object of the telephone solicitation.
148 (8)(a) A telephone solicitor person may not make or
149 knowingly allow an unsolicited a telephonic sales call to be
150 made if such call involves an automated system for the selection
Page 6 of 8
CODING: Words stricken are deletions; words underlined are additions.
hb1095-02-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 1095 2022
151 and or dialing of telephone numbers or the playing of a recorded
152 message when a connection is completed to a number called, the
153 transmission of a text message, or the transmission of a
154 prerecorded voicemail without the prior express written consent
155 of the called party.
156 (e) This subsection does not prohibit the use of an
157 automated system for the selection and dialing of telephone
158 numbers with live messages or text messages if the call or
159 message is made solely in response to an inquiry initiated by
160 the called party. However, only three such calls or messages may
161 be made in response to each inquiry.
162 (9)(a) A telephone solicitor may not cause any unsolicited
163 telephonic sales call to be initiated by use of any automated
164 system.
165 (b) A telephone solicitor may not cause any telephonic
166 sales call to be initiated by any person other than the caller.
167 (12)(11)(a) In any civil litigation resulting from a
168 transaction involving a violation of this section, the
169 prevailing party, after judgment in the trial court and
170 exhaustion of all appeals, if any, shall receive his or her
171 reasonable attorney attorney's fees and costs from the
172 nonprevailing party.
173 (d) Any award of attorney attorney's fees or costs shall
174 become a part of the judgment and subject to execution as the
175 law allows.
Page 7 of 8
CODING: Words stricken are deletions; words underlined are additions.
hb1095-02-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 1095 2022
176 (e) In any civil litigation initiated by the department or
177 the Department of Legal Affairs, the court may award to the
178 prevailing party reasonable attorney attorney's fees and costs
179 if the court finds that there was a complete absence of a
180 justiciable issue of either law or fact raised by the losing
181 party or if the court finds bad faith on the part of the losing
182 party.
183 Section 2. The amendments made by this act are remedial in
184 nature and apply retroactively to July 1, 2021, and to any
185 proceeding pending or commenced on or after July 1, 2021, except
186 that the amendments made by this act to s. 501.059(12), Florida
187 Statutes, relating to attorney fees and costs, do not apply
188 retroactively.
189 Section 3. This act shall take effect July 1, 2022.
Page 8 of 8
CODING: Words stricken are deletions; words underlined are additions.
hb1095-02-c2
COMMERCE COMMITTEE
HB 1095 by Rep. Beltran
Telephone Solicitation
AMENDMENT SUMMARY
February 23, 2022
Amendment 1 by Rep. Beltran (strike-all):
• Defines “express request” and revises the definition for “automated system.”
• Clarifies that the definition for “telephonic sales call” includes a telephone call, text
message, or voicemail transmission to a consumer for the purpose of soliciting a “lease”
of any consumer goods or services.
• Further clarifies the notice required to be given prior to obtaining express written
consent.
• Makes attorney fees and costs optional rather than mandatory.
• Provides that the provisions of this section of law, if held invalid, are severable.
• Prohibits action for damages if the caller confirms in writing to the called party within 30
days after receiving a called party’s request to remove their number from the telephone
solicitor’s lists, that the number was removed.
• Specifies that a called party is not required to provide an express request or prior
express written consent as a condition of purchasing any property, goods, or services.
• Specifies that the limit to make only three calls or messages applies to each express
request or prior express written consent, unless such request or consent indicates a
different number of calls or messages or a specific time period.
• Makes other clarifying and technical changes.
COMMITTEE/SUBCOMMITTEE AMENDMENT
Bill No. CS/CS/HB 1095 (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 Beltran offered the following:
3
4 Amendment (with title amendment)
5 Remove everything after the enacting clause and insert:
6 Section 1. Subsections (9) through (13) of section
7 501.059, Florida Statutes, are renumbered as subsections (10)
8 through (14), respectively, subsections (1) and (2), paragraph
9 (a) of subsection (8), present subsection (10), and paragraphs
10 (a), (c), (d), and (e) of present subsection (11) are amended,
11 paragraphs (e) and (f) are added to subsection (8), and new
12 subsections (9) and (15) are added to that section, to read:
13 501.059 Telephone solicitation.—
14 (1) As used in this section, the term:
15 (a) "Automated system" means a computerized, mechanical,
16 or other technological system or device that creates a telephone
672399 - h1095-strike.docx
Published On: 2/22/2022 9:07:07 PM
Page 1 of 10
COMMITTEE/SUBCOMMITTEE AMENDMENT
Bill No. CS/CS/HB 1095 (2022)
Amendment No. 1
17 number, or stores or selects any telephone number from any
18 database or list, and then causes that telephone number to be
19 called. The term also includes any system which the live caller,
20 or any other person, operates by click-to-call. The term does
21 not include a live caller manually selecting and calling
22 telephone numbers using only a contact list or telephone log.
23 (b)(a) "Called party" means a person who is the regular
24 user of the telephone number that receives a telephonic sales
25 call.
26 (c) "Live caller" means a natural person who causes a call
27 to be made and who is ready to speak to the called party at t he
28 time the call is made.
29 (d)(b) "Consumer" means an actual or prospective
30 purchaser, lessee, or recipient of consumer goods or services.
31 (e)(c) "Consumer goods or services" means real property or
32 tangible or intangible personal property or services that are is
33 normally used for personal, family, or household purposes. The
34 term includes, including, but is not limited to, any such
35 property intended to be attached to or installed in any real
36 property without regard to whether it is so attached or
37 installed, as well as cemetery lots and timeshare estates, and
38 any related services related to such property.
39 (f)(d) "Department" means the Department of Agriculture
40 and Consumer Services.
41 (g)(e) "Doing business in this state" means businesses
672399 - h1095-strike.docx
Published On: 2/22/2022 9:07:07 PM
Page 2 of 10
COMMITTEE/SUBCOMMITTEE AMENDMENT
Bill No. CS/CS/HB 1095 (2022)
Amendment No. 1
42 that conduct telephonic sales calls from a location in Florida
43 or from other states or nations to consumers located in Fl orida.
44 (h) "Express request" means a prior oral or written
45 request, invitation, consent or permission from a called party
46 made directly or indirectly to the live caller or telephone
47 solicitor, for calls or text messages regarding the live
48 caller's or telephone solicitor’s goods, services or products.
49 (i)(f) "Merchant" means a person who, directly or
50 indirectly, offers or makes available to consumers any consumer
51 goods or services.
52 (j)(g) "Prior express written consent" means a written
53 agreement that:
54 1. Bears the signature of the called party;
55 2. Clearly authorizes the person making or allowing the
56 placement of a telephonic sales call by telephone call, text
57 message, or voicemail transmission to deliver or cause to be
58 delivered to the called party a telephonic sales call using an
59 automated system for the selection and or dialing of telephone
60 numbers, the playing of a recorded message when a connection is
61 completed to a number called, the transmission of a text
62 message, or the transmission of a prerecorded voicemail;
63 3. Includes the telephone number to which the signatory
64 authorizes a telephonic sales call to be delivered; and
65 4. Includes a clear and conspicuous disclosure informing
66 the called party that:
672399 - h1095-strike.docx
Published On: 2/22/2022 9:07:07 PM
Page 3 of 10
COMMITTEE/SUBCOMMITTEE AMENDMENT
Bill No. CS/CS/HB 1095 (2022)
Amendment No. 1
67 a. By executing the agreement, the called party authorizes
68 the person making or allowing the placement of a telephonic
69 sales call to deliver or cause to be delivered a telephonic
70 sales call to the called party using an automated system for the
71 selection and or dialing of telephone numbers or the playing of
72 a recorded message when a connection is completed to a number
73 called, the transmission of a text message, or the transmission
74 of a prerecorded voicemail; and
75 b. He or she is not required to directly or indirectly
76 sign the written agreement or to agree to enter into such an
77 agreement as a condition of purchasing any property, goods, or
78 services.
79
80 For purposes of subparagraph 4., a designated signature line
81 with the following notice placed directly above the designated
82 signature line that is prominent and robust in at least 12-point
83 bold font, is presumptively compliant:
84
85 By signing below, you authorize [NAME] to place a
86 telephonic sales call to you at [TELEPHONE NUMBER] by way
87 of telephone calls, text messages, or voicemail
88 transmissions using an automated system for the selection
89 and/or dialing of telephone numbers or the playing of a
90 recorded message when a connection is completed to your
91 telephone number. YOU ARE NOT REQUIRED TO PROVIDE SUCH
672399 - h1095-strike.docx
Published On: 2/22/2022 9:07:07 PM
Page 4 of 10
COMMITTEE/SUBCOMMITTEE AMENDMENT
Bill No. CS/CS/HB 1095 (2022)
Amendment No. 1
92 AUTHORIZATION AS A CONDITION OF PURCHASING ANY PROPERTY,
93 GOODS, OR SERVICES.
94
95 (k)(h) "Signature" includes an electronic or digital
96 signature, including agreements obtained through a compliant e-
97 mail, website form, text message, telephone keypress, or voice
98 recording, or any to the extent that such form of signature that
99 is recognized as a valid signature under applicable federal law
100 or state contract law.
101 (l)(i) "Telephone solicitor" means a natural person, firm,
102 organization, partnership, association, or corporation, or a
103 subsidiary or affiliate thereof, doing business in this state,
104 who makes or causes to be made a telephonic sales call,
105 including, but not limited to, calls made by use of automated
106 systems, automated dialing or recorded message devices.
107 (m)(j) "Telephonic sales call" means a telephone call,
108 text message, or voicemail transmission, including, but not
109 limited to, calls made by the use of automated systems, or
110 automated dialing or recorded message devices, to a consumer for
111 the purpose of soliciting a sale, lease, or acquisition of any
112 consumer goods or services, soliciting an extension of credit
113 for consumer goods or services, or obtaining information that
114 will or may be used for the direct solicitation of a sale,
115 lease, or acquisition of consumer goods or services or an
116 extension of credit for such purposes.
672399 - h1095-strike.docx
Published On: 2/22/2022 9:07:07 PM
Page 5 of 10
COMMITTEE/SUBCOMMITTEE AMENDMENT
Bill No. CS/CS/HB 1095 (2022)
Amendment No. 1
117 (n)(k) "Unsolicited telephonic sales call" means a
118 telephonic sales call other than a call made:
119 1. Within 120 days after In response to an express request
120 of the person called party;
121 2. Primarily in connection with an existing debt or
122 contract, if payment or performance of such debt or contract has
123 not been completed at the time of such call;
124 3. To a person with whom the telephone solicitor has a
125 prior or existing business relationship; or
126 4. By a newspaper publisher or his or her agent or
127 employee in connection with his or her business;
128 5. To a person who has provided prior express written
129 consent to be contacted; or
130 6. For the purpose of polling or soliciting the expression
131 of ideas, opinions, or votes, including when such polling or
132 soliciting is made by text message.
133 (o)(l) "Voicemail transmission" means technologies that
134 deliver a voice message directly to a voicemail application,
135 service, or device.
136 (2) Any telephone solicitor who makes an unsolicited
137 telephonic sales call to a called party residential, mobile, or
138 telephonic paging device telephone number shall identify himself
139 or herself by his or her true first and last names and the
140 business on whose behalf he or she is soliciting immediately
141 upon making contact by telephone with the called party person
672399 - h1095-strike.docx
Published On: 2/22/2022 9:07:07 PM
Page 6 of 10
COMMITTEE/SUBCOMMITTEE AMENDMENT
Bill No. CS/CS/HB 1095 (2022)
Amendment No. 1
142 who is the object of the telephone solicitation.
143 (8)(a) A telephone solicitor or live caller person may not
144 make or knowingly allow an unsolicited a telephonic sales call
145 to be made if such call involves an automated system for the
146 selection and or dialing of telephone numbers or the playing of
147 a recorded message when a connection is completed to a number
148 called, the transmission of a text message, or the transmission
149 of a prerecorded voicemail without the prior express written
150 consent of the called party.
151 (e) This subsection does not prohibit the use of an
152 automated system for the selection and dialing of telephone
153 numbers with a live caller or text messages if the call or
154 message is made solely in response to an express request
155 initiated by the called party, or prior express written consent
156 by the called party, and the live caller or telephone solicitor
157 maintains evidence of the called party's express request or
158 prior express written consent. However, only three such calls or
159 messages may be made in response to each express request or
160 prior express written consent, unless such express request or
161 prior express written consent specifically indicates a different
162 number of calls or messages that are authorized or a specific
163 time period that such calls or messages are authorized to be
164 made.
165 (f) A merchant, telephone solicitor, live caller, or other
166 person may not require any consumer or called party to provide
672399 - h1095-strike.docx
Published On: 2/22/2022 9:07:07 PM
Page 7 of 10
COMMITTEE/SUBCOMMITTEE AMENDMENT
Bill No. CS/CS/HB 1095 (2022)
Amendment No. 1
167 an express request or prior express written consent a s a
168 condition of any transaction.
169 (9)(a) A telephone solicitor may not cause any unsolicited
170 telephonic sales call to be initiated by use of any automated
171 system.
172 (b) A telephone solicitor may not cause any telephonic
173 sales call to be initiated by any person or device other than a
174 live caller.
175 (12)(11)(a) In any civil litigation resulting from a
176 transaction involving a violation of this section, the
177 prevailing party, after judgment in the trial court and
178 exhaustion of all appeals, if any, may shall receive his or her
179 reasonable attorney attorney's fees and costs from the
180 nonprevailing party.
181 (c) The trial judge may shall award the prevailing party
182 the sum of reasonable costs incurred in the action plus a
183 reasonable legal fee for the hours actually spent on the case as
184 sworn to in an affidavit.
185 (d) Any award of attorney attorney's fees or costs shall
186 become a part of the judgment and subject to execution as the
187 law allows.
188 (e) In any civil litigation initiated by the department or
189 the Department of Legal Affairs, the court may award to the
190 prevailing party reasonable attorney attorney's fees and costs
191 if the court finds that there was a complete absence of a
672399 - h1095-strike.docx
Published On: 2/22/2022 9:07:07 PM
Page 8 of 10
COMMITTEE/SUBCOMMITTEE AMENDMENT
Bill No. CS/CS/HB 1095 (2022)
Amendment No. 1
192 justiciable issue of either law or fact raised by the losing
193 party or if the court finds bad faith on the part of the losing
194 party.
195 (15) If any provision of this section or its application
196 to any person or circumstance is held invalid, the invalidity
197 does not affect other provisions or applications of this section
198 that can be given effect without the invalid provision or
199 application, and to this end the provisions of this section are
200 severable.
201 Section 2. The amendments made by this act are remedial in
202 nature and apply retroactively to July 1, 2021, and to any
203 proceeding pending or commenced on or after July 1, 2021, except
204 that the amendments made by this act to s. 501.059 (8)(e) and
205 (9) relating to violations, and (12), relating to attorney fees
206 and costs, do not apply retroactively.
207 Section 3. This act shall take effect July 1, 2022 .
208
209 -----------------------------------------------------
210 T I T L E A M E N D M E N T
211 Remove everything before the enacting clause and insert:
212 An act relating to telephone solicitation; amending s.
213 501.059, F.S.; providing and revising definitions;
214 conforming provisions; authorizing the use of
215 automated systems with live messages or text messages
216 in response to certain inquiries; providing a
672399 - h1095-strike.docx
Published On: 2/22/2022 9:07:07 PM
Page 9 of 10
COMMITTEE/SUBCOMMITTEE AMENDMENT
Bill No. CS/CS/HB 1095 (2022)
Amendment No. 1
217 limitation; providing an exception to the limitation
218 of such calls or messages under certain circumstances;
219 authorizing the purchase of any property, goods, or
220 services without the express request or prior written
221 consent of a called party; prohibiting certain
222 telephonic sales calls; prohibiting any action for
223 damages if a called party provides an express request
224 or prior written consent to remove his or her number
225 from specified lists; authorizing such requests to be
226 made at certain times; revising provisions for the
227 award of attorney fees and costs; providing
228 severability; providing retroactive applicability;
229 providing an effective date.
672399 - h1095-strike.docx
Published On: 2/22/2022 9:07:07 PM
Page 10 of 10
CS/CS/HB 1121
HOUSE OF REPRESENTATIVES STAFF ANALYSIS
BILL #: CS/CS/HB 1121 Pub. Rec./Crash Reports and Traffic Citations
SPONSOR(S): Government Operations Subcommittee, Tourism, Infrastructure & Energy Subcommittee,
Brannan
TIED BILLS: IDEN./SIM. BILLS: CS/SB 1614
REFERENCE ACTION ANALYST STAFF DIRECTOR or
BUDGET/POLICY CHIEF
1) Tourism, Infrastructure & Energy Subcommittee 15 Y, 0 N, As CS Johnson Keating
2) Government Operations Subcommittee 16 Y, 0 N, As CS Roth Toliver
3) Commerce Committee Johnson Hamon
SUMMARY ANALYSIS
Under current law, motor vehicle crash reports held by agencies that regularly receive or prepare motor vehicle
crash reports are exempt from disclosure as public records for 60 days after the reports have been filed. The
law provides a list of entities that may receive crash reports during that 60-day period. Under current law, traffic
citations are considered public records.
The bill revises the public record exemption for written crash reports to:
Provide that personal information contained in a crash report remains exempt from disclosure after the
60-day exemption period for the entire report has expired.
Provide that the exemption applies to crash reports held by any agency subject to the public record law.
Revise the list of entities to which the reports may be made available.
Require certain entities to enter into memoranda of understanding in order to obtain such information.
Revise conditions required to access the reports.
Exempt certain computerized crash report data.
Authorize the agency to provide a redacted crash report to the media.
The bill also creates a public record exemption for certain driver information contained in a traffic citation and
authorizes the release of this information as provided in the federal Driver Privacy Protection Act.
The bill provides that these public record exemptions are subject to repeal under the Open Government Sunset
Review Act unless the Legislature reviews and reenacts the exemptions by October 2, 2027.
The bill provides a public necessity statement for each exemption as required by the Florida Constitution.
The bill has an effective date of March 1, 2023.
Article I, s. 24(c) of the Florida Constitution requires a two-thirds vote of the members present and
voting for final passage of a newly created or expanded public record or public meeting exemption.
The bill creates a public record exemption; thus, it requires a two-thirds vote for final passage.
This docum ent does not reflect the intent or official position of the bill sponsor or House of Representatives .
STORAGE NAME: h1121d.COM
DATE: 2/21/2022
FULL ANALYSIS
I. SUBSTANTIVE ANALYSIS
A. EFFECT OF PROPOSED CHANGES:
Current Situation
Public Records
Article I, s. 24(a) of the Florida Constitution sets forth the state’s public policy regarding access to
government records. This section guarantees every person a right to inspect or copy any public record
of the legislative, executive, and judicial branches of government. The Legislature, however, may
provide by general law for exemption from public records requirements provided the exemption passes
by two-thirds vote of each chamber, states with specificity the public necessity justifying the exemption,
and is no broader than necessary to meet its public purpose. 1
The Florida Statutes also address the public policy regarding access to government records. Section
119.07(1), F.S., guarantees every person a right to inspect and copy any state, county, or municipal
record, unless the record is exempt. Furthermore, the Open Government Sunset Review Act 2 provides
that a public record exemption may be created or maintained only if it serves an identifiable public
purpose and the “Legislature finds that the purpose is sufficiently compelling to override the strong
public policy of open government and cannot be accomplished without the exemption.” 3 An identifiable
public purpose is served if the exemption meets one of the following purposes:
Allow the state or its political subdivisions to effectively and efficiently administer a
governmental program, which administration would be significantly impaired without the
exemption.
Protect sensitive personal information that, if released, would be defamatory or would
jeopardize an individual’s safety; however, only the identity of an individual may be exempted
under this provision.
Protect trade or business secrets.4
Pursuant to s. 119.15(3), F.S., a new public records exemption or substantial amendment of an existing
public records exemption is repealed on October 2 of the fifth year following enactment, unless the
Legislature reenacts the exemption.
Federal Driver Privacy Protection Act
Motorist personal information, when held by the Department of Highway Safety and Motor Vehicles
(DHSMV) in motor vehicle records, is confidential pursuant to the federal Driver Privacy Protection Act
(DPPA).5 Personal information covered by the DPPA includes: social security number, driver license or
identification card number, name, address, telephone number and a person’s medical or disability
information.6
Under DPPA, personal information in motor vehicle and driver license records may be released for the
following purposes:7
1 Art. I, s. 24(c), FLA. C ONST.
2 S. 119.15, F.S.
3 Section 119.15(6)(b), F.S.
4 Id.
5 18 U.S.C. ss. 2721 et seq., and s. 119.0712(2), F.S.
6 Department of Highway Safety and Motor Vehicles (DHSMV), Privacy Statement Driver Privacy Protection Act, available at
https://www.flhsmv.gov/privacy-statement/driver-privacy-protection-act/ (last visited on Jan. 28, 2022).
718 U.S.C. ss. 2721 et seq., and s. 119.0712(2), F.S. ; Florida Department of Highway Safety and Motor Vehicles forms HSMV 90511
(Revised 11/19) available at https://www.flhsmv.gov/pdf/forms/90511.pdf (last visited Jan. 28, 2022) an d HSMV 90510 (Revised 03/19)
available at https://www.flhsmv.gov/pdf/forms/90510.pdf (last visited Jan. 28, 2022).
STORAGE NAME: h1121d.COM PAGE: 2
DATE: 2/21/2022
For use by any government agency, including any court or law enforcement agency, in carrying
out its functions, or any private person or entity acting on behalf of a government agency in
carrying out its functions;
For use in connection with matters of motor vehicle or driver safety and theft; motor vehicle
emissions; motor vehicle product alterations, recalls, or advisories; performance monitoring of
motor vehicles, motor vehicle parts and dealers; motor vehicle market research activities; and
removal of non-owner records from the original owner records of motor vehicle manufacturers;
For use in the normal course of business by a legitimate business or its agents, employees, or
contractors, to verify the accuracy of personal information submitted by the individual, and if
such information is incorrect, to obtain the correct information, but only for the purposes of
preventing fraud by, pursuing legal remedies against, or recovering on a debt or security
interest against, the individual;
For use in connection with any civil, criminal, administrative, or arbitral proceeding in any court
or agency or before any self-regulatory body, including service of process, investigation in
anticipation of litigation, and execution or enforcement of judgments and orders, or pursuant to
an order of a court;
For use in research activities and producing statistical reports;
For use by any insurer or insurance support organization, or by a self-insured entity, or its
agents, employees, or contractors, in connection with claims investigation activities, antifraud
activities, rating, or underwriting;
For use in providing notice to the owners of towed or impounded vehicles;
For use by any licensed private investigative agency or licensed security service for any
purpose permitted by DPPA;
For use by an employer or its agent or insurer to obtain or verify information relating to a holder
of a commercial driver's license;
For use in connection with the operation of private toll facilities;
For any other use in response to requests for individual motor vehicle records if the state has
obtained the express consent of the person to whom such personal information pertains;
For bulk distribution for surveys, marketing, or solicitations if the state has obtained the express
consent of the person to whom such personal information pertains;
For use by any requester, if the requester demonstrates it has obtained the written consent of
the individual to whom the information pertains; and
For any other use specifically authorized under the law of the state that holds the record, if such
use is related to the operation of a motor vehicle or public safety.
Information that is not covered by DPPA is non-personal information. Under Florida law, such non-
personal information contained in motor vehicle and driver license records, such as vehicular crash
records, driving violations, and driver status information is considered public information.8
Motor Vehicle Crash Reports in Florida
Florida law requires written reports of motor vehicle crashes, which must contain the following
information:
The date, time, and location of the crash.
A description of the vehicles involved.
The names and addresses of the parties involved, including all drivers and passengers, and the
identification of the vehicle in which each was a driver or a passenger.
The names and addresses of witnesses.
The name, badge number, and law enforcement agency of the officer investigating the crash.
The names of the insurance companies for the respective parties involved in the crash. 9
An investigating law enforcement agency must submit a written crash report to DHSMV within 10 days
after completing the investigation of a traffic crash that results in death or personal injury, involves a
8 DHSMV, supra note 6.
9 Ss. 316.066(1)(b) and (c), F.S.
STORAGE NAME: h1121d.COM PAGE: 3
DATE: 2/21/2022
violation of leaving the scene or driving under the influence, renders a vehicle inoperable to a degree
that a wrecker must remove it from the scene, or involves a commercial motor vehicle. 10 Approximately
94 percent of crash reports are submitted by law enforcement agencies to DHSMV electronically, while
about six percent of reports are submitted to DHSMV on paper and must be scanned and converted
into an electronic format.11
Crash reports contain various personal information about the parties to a crash, witnesses, and others
whose property is damaged in a crash, including names, addresses, telephone numbers, dates of birth,
driver license numbers, and certain insurance information. 12
In 2001, the Legislature limited access to crash reports during the 60-day period after a crash report is
filed.13 During that 60-day period, crash reports may only be released to parties involved in the crash,
their legal representatives, their licensed insurance agents, their insurers or insurers to which they have
applied for coverage, persons under contract with such insurers to provide claims or underwriting
information, prosecutorial authorities, law enforcement agencies, the Department of Transportation,
county traffic operations, victim services programs, radio and television stations, and certain
newspapers.14
Additionally, any local, state, or federal agency authorized by law to have access to crash reports must
be granted such access in the furtherance of its statutory duties. 15
To access a crash report within the 60-day time frame, a person must demonstrate his or her
qualifications to access that information and file a written sworn statement with the state or local
agency in possession of the information stating that information from the report will not be used for any
commercial solicitation of accident victims, or knowingly disclosed to any third party for the purpose of
such solicitation, during the period of time that the information remains confidential and exempt. 16
According to the public necessity statement supporting this exemption, the 60-day exemption was
created to protect the public from unscrupulous individuals who promote the filing of fraudulent
insurance claims by obtaining such information immediately after a crash and exploiting the individual
at a time of emotional distress.17
The Florida Highway Patrol (FHP)18 routinely receives public records requests for its crash reports. In
addition, DHSMV routinely makes crash reports available to the public through the Florida Crash
Portal.19 The portal comprises crash reports transmitted by FHP, county sheriff offices, local police
departments, and other law enforcement agencies throughout the state. Crash reports provided by
DHSMV are subject to a statutory fee of $10 per report.20
To facilitate releasing crash reports to authorized persons within the 60-day exemption period, DHSMV
has prescribed a Sworn Statement to Obtain Traffic Crash Report Information (DHSMV Form 94010).21
In lieu of the printed form, users of the Florida Crash Portal may electronically submit the sworn
statement when obtaining a crash report through the portal.22
10 S. 316.066(1)(a), F.S.
11 Department of Highway Safety and Motor Vehicle (DHSMV), Agency Analysis of 2022 Senate Bill 1614 p.2 (Jan 14, 2022).
12
See, e.g., DHSMV, Uniform Traffic Crash Report Manual (90010S) (Rev. Feb. 5, 2019), availab le at
https://www.flhsmv.gov/pdf/courts/crash/CrashManualComplete.pdf. (last visited Jan. 28, 2022).
13 Ch. 2001-163, Laws of Fla.
14 S. 316.066(2)(b), F.S.
15 S. 316.066(2)(c),F.S.
16 S. 316.066(2)(d), F.S.
17 Ch. 2001-163, Laws of Fla.
18 The Florida Highway Patrol is a division of DHSMV.
19 DHSMV, Florida Crash Portal, at https://www.flhsmv.gov/traffic-crash-reports (last visited Jan. 28, 2022).
20 S. 321.23(2)(a), F.S.; DHSMV, Agency Analysis of 2022 Senate Bill 1614. P.3.
21 See DHSMV, Sworn Statement to Ob tain Traffic Crash Report Information (HSMV Form 94010), availab le at
https://www.flhsmv.gov/pdf/forms/94010.pdf. (last visited Jan. 28, 2022).
22 DHSMV, Agency Analysis of 2022 Senate Bill 1614. P.3.
STORAGE NAME: h1121d.COM PAGE: 4
DATE: 2/21/2022
In addition to providing crash reports in their original format, crash reports transmitted to the Florida
Crash Portal are maintained in a computerized database. The database contains all of the original
report elements except for the law enforcement officer’s narrative description of the crash and any
crash diagrams.23
In 2021, 671,993 crash reports were completed in Florida, which included information on 1,839,532
individuals (drivers, passengers, witnesses, and pedestrians). 24
Uniform Traffic Citations
Under Florida law, DHSMV has the duty of prescribing and providing to every traffic enforcement
agency in the state prenumbered traffic citation books.25 In lieu of using printed citation books, traffic
enforcement agencies may produce uniform traffic citations by electronic means.26 FHP is among the
agencies who routinely prepare citations electronically.27
Traffic citations contain various personal information about drivers who are issued citations, including
their names, dates of birth, addresses, telephone numbers, and driver license numbers. 28
Traffic enforcement agencies, including FHP, submit traffic citations to the clerks of court. The clerks
routinely provide searchable traffic court dockets on their Internet websites, which typically allow for
viewing and downloading of unredacted copies of uniform traffic citations. 29
Electronic citation data is also transmitted to the clerks through the Comprehensive Case Information
System maintained by the Florida Association of Court Clerks and Comptrollers, Inc.30 Uniform traffic
citation, arrest, disposition, and criminal financial obligation files are electronically transmitted by the
clerks to DHSMV through the Traffic Citation Accounting and Transmission System. These files are
used by DHSMV to post court dispositions to the driver history records of individual drivers. 31
Under current law, all traffic citations, including all personal identifying information on the citations, is a
public record and can be freely distributed.
In 2021, 2,428,821 traffic citations were issued in Florida. 32
Effect of the Bill
Motor Vehicle Crash Reports
The bill provides that crash reports that reveal personal information33 concerning the parties involved in
a crash, and that are held by an agency,34 are confidential and exempt35 from public record laws for a
23 Id.
24 E-mail from Kevin Jacobs, DSHMV Legislative Affairs Director, RE. 1125 Question. (Jan. 14, 2022)
25 S 316.650(1)(a), Fla. Stat.
26
S 316.650(1)(c), Fla. Stat.
27 DHSMV, Agency Analysis of 2022 Senate Bill 1614 p.3 (Jan 14, 2022).
28 See, e.g., DHSMV, Uniform Traffic Citation Procedures Manual (Rev. Nov. 2019), availab le at
https://www.flhsmv.gov/pdf/courts/utc/UTCCombinedManual.pdf. (last visited Jan. 28, 2022).
29 DHSMV, Agency Analysis of 2022 Senate Bill 1614 p.3 (Jan 14, 2022).
30
See s 28.2405, F.S.
31 DHSMV, Agency Analysis of 2022 Senate Bill 1614 p.3 (Jan 14, 2022).
32 E-mail from Kevin Jacobs, DSHMV Legislative Affairs Director, RE. 1125 Question. (Jan 14, 2022)
33 The bill defines “personal information” as defined in 18 U.S.C. s. 2725(3), to mean, information that identifies an individual, including
an individual’s photograph, social security number, driver identification number, name, address (but not the 5 -digit zip code), telephone
number, and medical or disability information, but does not include information on vehicular accidents, driving violations, and driver’s
status.
34 The bill defines the term “agency” to mean any state, county, district, authority, or municipal officer, department, division , board,
bureau, commission, or other separate unit of government created or establis hed by law including, for the purposes of this chapter, the
Commission on Ethics, the Public Service Commission, and the Office of Public Counsel, and any other public or private agency,
person, partnership, corporation, or business entity acting on behalf of any public agency. See s. 119.011, F.S.
35 There is a difference between records the Legislature designates exempt from public record requirements and those the Legislature
deems confidential and exempt. A record classified as exempt from public disclo sure may be disclosed under certain circumstances.
STORAGE NAME: h1121d.COM PAGE: 5
DATE: 2/21/2022
period of 60 days after the report is filed. However, an agency is authorized to make the crash reports
available immediately to the parties involved in the crash, their legal representatives, their licensed
insurance agents, their insurers, underwriters, victim services programs, any federal, state, or local
governmental agency or any private person or entity acting on behalf of such agency.
Crash reports held by an agency that do not contain the home or employment street addresses, driver
license or identification card numbers, dates of birth, and home and employment telephone numbers of
the parties involved in the crash may also be made immediately available to radio and television
stations licensed by the Federal Communications Commission (FCC)36 and newspapers qualified to
publish legal notices.37 In addition, a crash report may be made available to any third party acting on
behalf of a person or entity authorized to access a crash report as long as the third party only discloses
the crash report to the person on whose behalf the third party has sought the report.
The bill authorizes, pursuant to a memorandum of understanding (MOU), an agency to provide data
derived from crash reports to a third party solely for the purpose of identifying vehicles involved in
crashes if such data does not reveal the identity, home or employment telephone number, or home or
employment address, or other personal information of the parties involved in the crash.
The bill removes the 60-day requirement from the date the report is filed in which individuals must
present photographic identification, proof of status, or other identification that demonstrates his or her
qualifications and a written sworn statement to access a crash report. The bill provides that in lieu of a
written sworn statement, an agency may provide crash reports to third-party vendors under contract
with an insurer by electronic means pursuant to an MOU.
The bill provides that after 60 days from when the crash report is filed, a crash report held by an agency
may be made available to any person or entity eligible to access crash reports within the 60 days as
well as any person or entity with any of the permissible uses or who abides by the resale and
redisclosure requirements in the DPPA.38
The bill provides that if crash reports are created by or submitted to an agency electronically as data
elements within a computerized database, or if personal information from a crash report is entered into
a computerized database, such crash data held by an agency is confidential and exempt from public
record requirements. However, 60 days after the date the crash report is filed, an agency may provide
crash data derived from the crash report which includes personal information, pursuant to an MOU, to
eligible entities or to any person or entity with any of the permissible uses or who abides by the resale
and redisclosure requirements in the DPPA.
These exemptions stand repealed on October 2, 2027, unless reviewed and saved from repeal through
reenactment by the Legislature, pursuant to the Open Government Sunset Review Act.
The bill removes obsolete statutory language prohibiting some free newspapers from receiving certain
crash report information. This language was repealed on October 2, 2019, under the Open Government
Sunset Review Act since this part of the public records exemption was not saved from repeal through
reenactment by the Legislature.
The bill revises current penalty provisions and provides that use of confidential and exempt information
in violation of an MOU is a third-degree felony. In addition, the bill creates penalties for a person who
See WFTV, Inc. v. Sch. Bd. of Seminole, 874 So.2d 48, 53 (Fla. 5th DCA 2004), review denied 892 So.2d 1015 (Fla. 2004); City of
Rivera Beach v. Barfield, 642 So.2d 1135 (Fla. 4th DCA 1994); Williams v. City of Minneola, 575 So.2d 683, 687 (Fla. 5th DCA 1991). If
the Legislature designates a record as confidential and exempt from public disclosure, such record may not be released by the
custodian of public records to anyone other than the persons or entities specifically designated in statute. See Op. Att’y Gen. Fla. 04-
09 (2004).
36 The Federal Communications Commission regulates interstate and international communications by radio, television, wire, satel lite,
and cable in all 50 states, the District of Columbia and U.S. territories. An independent U.S. government agency overseen by Congress,
the Commission is the federal agency responsible for implementing and enforcing America’s communications law and regulations.
Federal Communications Commission, Ab out the FCC, available at https://www.fcc.gov/about/overview (last visited Feb. 9, 2022).
37 See ss. 50.011 and 50.031, F.S., for qualifications to publish legal notices.
38 See 18 U.S.C. s. 2721(b) and (c).
STORAGE NAME: h1121d.COM PAGE: 6
DATE: 2/21/2022
obtains a crash report, or crash data, and who knowingly discloses or knowingly uses personal
information revealed in the report for a purpose not permitted by DPPA. The person is liable to the
individual to whom the information pertains, who may bring a civil action in any court of competent
jurisdiction. The court may award:
Actual damages, but not less than liquidated damages in the amount of $2,500.
Punitive damages upon proof of willful or reckless disregard of the law.
Reasonable attorney fees and other litigation costs reasonably incurred.
Such other preliminary and equitable relief as the court determines to be appropriate.
However, these penalties do not apply to radio and television stations licensed by the FCC and
newspapers qualified to publish legal notices.
The bill provides a public necessity statement as required by art. I, s. 24(c) of the Florida Constitution.
The statement provides that:
Crash reports reveal significant personal information concerning parties, passengers, and
witnesses to a crash.
Use of the Internet and related technologies allows those with malicious purposes to exploit the
use of personal information, such as a party's, passenger’s, or witness’ date of birth, driver
license number, and address, threatening privacy and security.
Increasing use of information technology for the preparation, submission, and management of
crash reports has led agencies to hold vast repositories of computerized crash report data,
which includes such personal information.
Personal information, when held by DHSMV in motor vehicle records, is confidential pursuant to
the federal DPPA and s. 119.0712(2), F.S.
Restrictions on disclosure of motorist personal information have not applied to personal
information contained in crash reports.
When crash reports and computerized crash report data are made available to the public,
because they comprise much of the same personal information contained in driver license and
motor vehicle records, the protections afforded by the federal DPPA are undermined, eroding
the privacy and safety of motorists.
Uniform Traffic Citations
The bill provides that driver information contained in a traffic citation is exempt from public record laws.
The bill defines the term “driver information” to mean a driver’s date of birth, driver license or
identification card number, address (excluding the five-digit zip code), telephone number, motor vehicle
license plate number, and trailer tag number. The term does not include the driver’s name.
An agency may release driver information in accordance with any of the permissible uses listed in
DPPA in the same manner applicable to the release of personal information contained in a motor
vehicle record pursuant to s. 119.0712(2)(b), F.S.
This exemption applies retroactively to records already held by an agency. This exemption is subject to
the Open Government Sunset Review Act and stands repealed on October 2, 2027, unless reviewed
and saved from repeal by the Legislature.
The bill provides a public necessity statement as required by art. I, s. 24(c) of the Florida Constitution.
The statement provides that:
Uniform traffic citations reveal significant personal information about drivers issued a
citation.
Use of the Internet and related technologies allows those with malicious purpose to exploit
the use of personal information, such as a motorist’s date of birth, driver license number,
and address, threatening motorist’s privacy and security.
A driver’s personal information, when held by DHSMV in driver license and motor vehicle
records, is confidential pursuant to DPPA and s. 119.0712(2), F.S.
STORAGE NAME: h1121d.COM PAGE: 7
DATE: 2/21/2022
Restrictions on disclosure of motorist personal information have not applied to driver
information contained in uniform traffic citations.
When driver information contained in uniform traffic citations is made available to the public,
the protections are afforded by federal DPPA are undermined, eroding the privacy and
safety of motorists.
Effective Date
The bill has an effective date of March 1, 2023.
B. SECTION DIRECTORY:
Section 1 Amends s. 316.066, F.S., relating to written reports of crashes.
Section 2 Amends s. 316.650, F.S., relating to traffic citations.
Section 3 Provides statements of public necessity as required by the Florida Constitution.
Section 4 Provides an effective date.
II. FISCAL ANALYSIS & ECONOMIC IMPACT STATEMENT
A. FISCAL IMPACT ON STATE GOVERNMENT:
1. Revenues:
Indeterminate. Under current law, DSHMV-provided crash reports are subject to a statutory fee of
$10 per report.39 It is not known how many crash reports subject to the statutory fee would be
exempt from disclosure as public records under the bill.
2. Expenditures:
The bill may have an insignificant negative fiscal impact on various state agencies because state
agency staff responsible for complying with public record requests may require training related to
the newly created public record exemption. These costs, however, would be absorbed, as they are
part of the day-to-day responsibilities of each state agency.
B. FISCAL IMPACT ON LOCAL GOVERNMENTS:
1. Revenues:
None.
2. Expenditures:
The bill may have an insignificant negative fiscal impact on local government agencies because
agency staff responsible for complying with public record request may require training related to the
newly created public record exemption. These costs, however, would be absorbed, as they are part
of the day-to-day responsibilities of each agency.
C. DIRECT ECONOMIC IMPACT ON PRIVATE SECTOR:
None.
D. FISCAL COMMENTS:
None.
39 S. 321.23(2)(a), F.S.
STORAGE NAME: h1121d.COM PAGE: 8
DATE: 2/21/2022
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:
Vote Requirement
Article I, s. 24(c) of the Florida Constitution requires a two-thirds vote of the members present and
voting for final passage of a newly created or expanded public record or public meeting exemption.
The bill creates a public record exemption; thus, it requires a two-thirds vote for final passage.
Public Necessity Statement
Article I, s. 24(c) of the Florida Constitution requires a public necessity statement for a newly created
or expanded public record or public meeting exemption. The bill includes a public necessity
statement for each newly created exemption in the bill.
Breadth of Exemption
Article I, s. 24(c) of the Florida Constitution requires a newly created or expanded public record or
public meeting exemption to be no broader than necessary to accomplish the stated purpose of the
law. The bill provides a public record exemption for the personal information of parties included in
motor vehicle crash reports to protect these individuals from misuse of their personal information.
This information includes an individual’s photograph, social security number, driver license or
identification card number, name, home or employment address (excluding the five-digit zip code),
home or employment telephone number, and medical or disability information. However, names of
persons from the crash report are available to the media in a redacted crash report. As such, the bill
does not appear to be broader than necessary to accomplish the stated purpose of the law.
Further, the bill provides a public record exemption for specified driver information in traffic citations
to protect drivers from misuse of their personal information. This information includes a driver’s date
of birth, driver license or identification card number, address (excluding the five-digit zip code),
telephone number, motor vehicle license plate number, and trailer tag number. The term does not
include the driver’s name. As such, the bill does not appear to be broader than necessary to
accomplish the stated purpose of the law.
B. RULE-MAKING AUTHORITY:
This bill does not require or authorize rulemaking.
C. DRAFTING ISSUES OR OTHER COMMENTS:
None.
IV. AMENDMENTS/COMMITTEE SUBSTITUTE CHANGES
On January 25, 2022, the Tourism, Infrastructure & Energy Subcommittee adopted a strike-all amendment and
reported the bill favorably as a committee substitute. The amendment:
Defined the term personal information as it relates to motor vehicle crash reports.
Added passengers and witnesses as persons whose personal information is protected from disclosure
in a crash report.
Provided that personal information revealed in crash reports remains confidential and exempt from
disclosure after the 60-day exemption period for the entire crash report.
STORAGE NAME: h1121d.COM PAGE: 9
DATE: 2/21/2022
Clarified current practice with respect to third parties acting on behalf of entities authorized to access
crash report data.
Clarified that crash reports may not be disclosed for commercial solicitation.
Required agencies, upon request, to provide a crash report summary to news media, subject to any
other public records exemption.
Corrected an incorrect Open Government Sunset Review date.
Revised statements of public necessity to conform to the amendment.
On February 8, 2022, the Government Operations Subcommittee adopted a strike-all amendment and reported
the bill favorably as a committee substitute. The amendment:
Specified the persons or entities to which an agency is immediately authorized to make crash reports
available.
Removed the requirement for an agency to provide certain media with a summary of a crash report in
lieu of providing certain media with a redacted crash report.
Authorized an agency to provide certain data to a third party, pursuant to an MOU.
Removed the 60-day requirement for individuals to demonstrate their qualifications to access a crash
report or file a sworn statement with a local agency.
Authorized an agency to provide crash reports to third-party vendors under contract with an insurer by
electronic means, pursuant to an MOU.
Authorized an agency to provide crash reports after 60 days to any person or entity authorized by
DPPA.
Authorized an agency to provide crash reports from a computerized data base to certain persons or
entities, pursuant to an MOU.
Provided additional penalties, but specified that the penalties do not apply to certain media.
Added identification card to the definition of “driver information” for traffic citations.
Changed the effective date from July 1, 2022, to March 1, 2023.
This analysis is drafted to the committee substitute as approved by the Government Operations Subcommittee.
STORAGE NAME: h1121d.COM PAGE: 10
DATE: 2/21/2022
F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
CS/CS/HB 1121 2022
1 A bill to be entitled
2 An act relating to public records; amending s.
3 316.066, F.S.; revising an exemption from public
4 records requirements for certain written reports of
5 crashes; revising the agencies to which the exemption
6 applies; revising the entities to which such reports
7 may be made available; providing construction;
8 requiring certain entities to enter into a memorandum
9 of understanding; providing for future review and
10 repeal; providing penalties; authorizing certain
11 individuals to bring a civil action and be awarded
12 certain relief; providing applicability; amending s.
13 316.650, F.S.; defining the term "driver information";
14 providing an exemption from public records
15 requirements for driver information contained in a
16 uniform traffic citation; providing applicability;
17 authorizing release of driver information under
18 certain circumstances; providing for future review and
19 repeal; providing statements of public necessity;
20 providing an effective date.
21
22 Be It Enacted by the Legislature of the State of Florida:
23
24 Section 1. Subsections (2) and (3) of section 316.066,
25 Florida Statutes, are amended to read:
Page 1 of 12
CODING: Words stricken are deletions; words underlined are additions.
hb1121-02-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 1121 2022
26 316.066 Written reports of crashes.—
27 (2)(a) Crash reports that reveal the identity, home or
28 employment telephone number or home or employment address of, or
29 other personal information concerning the parties involved in
30 the crash and that are held by an any agency, as defined in s.
31 119.011, that regularly receives or prepares information from or
32 concerning the parties to motor vehicle crashes are confidential
33 and exempt from s. 119.07(1) and s. 24(a), Art. I of the State
34 Constitution for a period of 60 days after the date the report
35 is filed.
36 (b) Crash reports held by an agency under paragraph (a)
37 may be made immediately available to the parties involved in the
38 crash, their legal representatives, their licensed insurance
39 agents, their insurers or insurers to which they have applied
40 for coverage, persons under contract with such insurers to
41 provide claims or underwriting information, prosecutorial
42 authorities, law enforcement agencies, the Department of
43 Transportation, county traffic operations, victim services
44 programs, radio and television stations licensed by the Federal
45 Communications Commission, newspapers qualified to publish legal
46 notices under ss. 50.011 and 50.031, and any federal, state, or
47 local governmental agency or any private person or entity acting
48 on behalf of a federal, state, or local governmental agency in
49 carrying out its functions, but not for redistribution to any
50 person or entity not listed in this paragraph. Crash reports
Page 2 of 12
CODING: Words stricken are deletions; words underlined are additions.
hb1121-02-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 1121 2022
51 held by an agency under paragraph (a) that do not contain the
52 home or employment street addresses, driver license or
53 identification card numbers, dates of birth, and home and
54 employment telephone numbers of the parties involved in the
55 crash may be made immediately available to radio and television
56 stations licensed by the Federal Communications Commission and
57 newspapers qualified to publish legal notices under ss. 50.011
58 and 50.031. A crash report may also be made available to any
59 third party acting on behalf of a person or entity authorized
60 under this section to access the crash report, except that the
61 third party may disclose the crash report only to the person or
62 entity authorized to access the crash report under this section
63 on whose behalf the third party has sought the report. This
64 section does not prevent an agency, pursuant to a memorandum of
65 understanding, from providing data derived from crash reports to
66 a third party solely for the purpose of identifying vehicles
67 involved in crashes if such data does not reveal the identities,
68 home or employment telephone numbers or home or employment
69 addresses, or other personal information, as defined in s.
70 119.0712(2)(b) and 18 U.S.C. s. 2725(3), of the parties involved
71 in the crash, in accordance with paragraph (f), free newspapers
72 of general circulation, published once a week or more often, of
73 which at least 7,500 copies are distributed by mail or by
74 carrier as verified by a postal statement or by a notarized
75 printer's statement of press run, which are intended to be
Page 3 of 12
CODING: Words stricken are deletions; words underlined are additions.
hb1121-02-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 1121 2022
76 generally distributed and circulated, and which contain news of
77 general interest with at least 10 pages per publication,
78 available and of interest to the public generally for the
79 dissemination of news. For the purposes of this section, the
80 following products or publications are not newspapers as
81 referred to in this section: those intended primarily for
82 members of a particular profession or occupational group; those
83 with the primary purpose of distributing advertising; and those
84 with the primary purpose of publishing names and other personal
85 identifying information concerning parties to motor vehicle
86 crashes.
87 (c) Any local, state, or federal agency that is authorized
88 to have access to crash reports by any provision of law shall be
89 granted such access in the furtherance of the agency's statutory
90 duties.
91 (d) As a condition precedent to accessing a crash report
92 within 60 days after the date the report is filed, a person must
93 present a valid driver license or other photographic
94 identification, proof of status, or identification that
95 demonstrates his or her qualifications to access that
96 information and file a written sworn statement with the state or
97 local agency in possession of the information stating that
98 information from a crash report made confidential and exempt by
99 this section will not be used for any commercial solicitation of
100 accident victims, or knowingly disclosed to any third party for
Page 4 of 12
CODING: Words stricken are deletions; words underlined are additions.
hb1121-02-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 1121 2022
101 the purpose of such solicitation, during the period of time that
102 the information remains confidential and exempt. Such written
103 sworn statement must be completed and sworn to by the requesting
104 party for each individual crash report that is being reque sted
105 within 60 days after the report is filed. In lieu of requiring
106 the written sworn statement, an agency may provide crash reports
107 by electronic means pursuant to a memorandum of understanding to
108 third-party vendors under contract with one or more insure rs,
109 but only when such contract states that information from a crash
110 report made confidential and exempt by this section will not be
111 used for any commercial solicitation of accident victims by the
112 vendors, or knowingly disclosed by the vendors to any third
113 party for the purpose of such solicitation, during the period of
114 time that the information remains confidential and exempt, and
115 only when a copy of such contract is furnished to the agency as
116 proof of the vendor's claimed status.
117 (e) This subsection does not prevent the dissemination or
118 publication of news to the general public by any legitimate
119 media entitled to access confidential and exempt information
120 pursuant to this section.
121 (f) Crash reports held by an agency under paragraph (a)
122 may be made available 60 days after the date the report is filed
123 to any person or entity eligible to access crash reports under
124 paragraph (b), or in accordance with any of the permissible uses
125 listed in 18 U.S.C. s. 2721(b) and pursuant to the resale and
Page 5 of 12
CODING: Words stricken are deletions; words underlined are additions.
hb1121-02-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 1121 2022
126 redisclosure requirements in 18 U.S.C. s. 2721(c).
127 (g) If crash reports are created by or submitted to an
128 agency electronically as data elements within a computerized
129 database, or if personal information from a crash report is
130 entered into a computerized database, such crash data held by an
131 agency is confidential and exempt from s. 119.07(1) and s.
132 24(a), Art. I of the State Constitution. Sixty days after the
133 date the crash report is filed, an agency may provide crash data
134 derived from the crash report which includes personal
135 information to entities eligible to access crash reports under
136 paragraph (b), or in accordance with any of the permissible uses
137 listed in 18 U.S.C. s. 2721(b) and pursuant to the resale and
138 redisclosure requirements in 18 U.S.C. s. 2721(c). Such data
139 shall be provided pursuant to a memorandum of understanding.
140 Free newspapers of general circulation published once a week or
141 more often, of which at least 7,500 copies are distributed by
142 mail or by carrier as verified by a postal statement or by a
143 notarized printer's statement of press run, which are intended
144 to be generally distributed and circulated, which contain news
145 of general interest with at least 10 pages per publication,
146 available and of interest to the public generally for the
147 dissemination of news, and which request 10 or more crash
148 reports within a 24-hour period before 60 days have elapsed
149 after the report is filed may not have access to the home,
150 cellular, employment, or other telephone number or the home or
Page 6 of 12
CODING: Words stricken are deletions; words underlined are additions.
hb1121-02-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 1121 2022
151 employment address of any of the parties involved in the crash.
152 (h) This subsection paragraph is subject to the Open
153 Government Sunset Review Act in accordance with s. 119.15 and
154 shall stand repealed on October 2, 2027 2019, unless reviewed
155 and saved from repeal through reenactment by the Legislature.
156 (3)(a) Any driver failing to file the written report
157 required under subsection (1) commits a noncriminal traffic
158 infraction, punishable as a nonmoving violation as provided in
159 chapter 318.
160 (b) Any employee of a state or local agency in pos session
161 of information made confidential and exempt by this section who
162 knowingly discloses such confidential and exempt information to
163 a person not entitled to access such information under this
164 section commits a felony of the third degree, punishable as
165 provided in s. 775.082, s. 775.083, or s. 775.084.
166 (c) Any person, knowing that he or she is not entitled to
167 obtain information made confidential and exempt by this section,
168 who obtains or attempts to obtain such information commits a
169 felony of the third degree, punishable as provided in s.
170 775.082, s. 775.083, or s. 775.084.
171 (d) Any person who knowingly uses confidential and exempt
172 information in violation of a filed written sworn statement,
173 memorandum of understanding, or contractual agreement required
174 by this section commits a felony of the third degree, punishable
175 as provided in s. 775.082, s. 775.083, or s. 775.084.
Page 7 of 12
CODING: Words stricken are deletions; words underlined are additions.
hb1121-02-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 1121 2022
176 (e) In addition to penalties outlined in paragraphs (c)
177 and (d), a person who obtains a crash report or crash data and
178 who knowingly discloses or knowingly uses personal information
179 revealed in the report for a purpose not permitted under 18
180 U.S.C. s. 2721(b) is liable to the individual to whom the
181 information pertains, who may bring a civil action in any court
182 of competent jurisdiction. The court may award:
183 1. Actual damages, but not less than liquidated damages in
184 the amount of $2,500.
185 2. Punitive damages upon proof of willful or reckless
186 disregard of the law.
187 3. Reasonable attorney fees and other litigation costs
188 reasonably incurred.
189 4. Such other preliminary and equitable relief as the
190 court determines to be appropriate.
191
192 This paragraph does not apply to radio and television stations
193 licensed by the Federal Communications Commission and newspapers
194 qualified to publish legal notices under ss. 50.011 and 50.031.
195 Section 2. Subsection (11) of section 316.650, Florida
196 Statutes, is amended to read:
197 316.650 Traffic citations.—
198 (11)(a) As used in this subsection, the term "driver
199 information" means a driver's date of birth, driver license or
200 identification card number, address excluding the five-digit zip
Page 8 of 12
CODING: Words stricken are deletions; words underlined are additions.
hb1121-02-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 1121 2022
201 code, telephone number, motor vehicle license plate number, and
202 trailer tag number. The term does not include the driver's name.
203 (b)1. Driver information contained in a uniform traffic
204 citation held by an agency is exempt from s. 119.07(1) and s.
205 24(a), Art. I of the State Constitution. This paragraph applies
206 to driver information held by an agency before, on, or after the
207 effective date of the exemption.
208 2. An agency may release driver information in accordance
209 with any of the permissible uses listed in 18 U.S.C. s. 2721(b)
210 in the same manner applicable to the release of personal
211 information contained in a motor vehicle record pursuant to s.
212 119.0712(2)(b).
213 3. This paragraph is subject to the Open Government Sunset
214 Review Act in accordance with s. 119.15 and shall stand repealed
215 on October 2, 2027, unless reviewed and saved from repeal
216 through reenactment by the Legislature.
217 (c) Driver information contained in a uniform traffic
218 citation, including which includes but is not limited to, the
219 accused person's name and address, shall not be used for
220 commercial solicitation purposes. However, the use of such
221 driver information contained in a uniform traffic citation shall
222 not be considered a commercial purpose when used for publication
223 in a newspaper or other news periodical, when used for broadcast
224 by radio or television, or when used to inform a person of the
225 availability of driver safety training.
Page 9 of 12
CODING: Words stricken are deletions; words underlined are additions.
hb1121-02-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 1121 2022
226 Section 3. (1) The Legislature finds that it is a public
227 necessity that crash reports that reveal personal information
228 concerning parties, passengers, and witnesses to a crash for a
229 period of 60 days after the date the crash report is filed with
230 an agency; such personal information revealed in crash reports
231 held by an agency following the 60-day period; and computerized
232 crash report data held by an agency be confidential and exempt
233 from s. 119.07(1), Florida Statutes, and s. 24(a), Article I of
234 the State Constitution. Crash reports reveal significant
235 personal information, not only about parties involved in a crash
236 but also about passengers and other witnesses to the crash.
237 Pervasive use of the Internet and related technologies abet
238 those with malicious purposes in exploiting the use of personal
239 information revealed in crash reports, such as a party's,
240 passenger's, or witness's date of birth, driver license number,
241 and address, creating ever-expanding threats to privacy and
242 security never envisioned in generations past. Moreover, ever-
243 increasing use of information technology for the preparation,
244 submission, and management of crash reports has led agencies to
245 hold vast repositories of computerized crash report data, which
246 includes such personal information. Personal information, when
247 held by the Department of Highway Safety and Motor Vehicles in
248 driver license and motor vehicle records, is confidential
249 pursuant to the federal Driver's Privacy Protection Act of 1994,
250 18 U.S.C. ss. 2721 et seq., and s. 119.0712(2), Florida
Page 10 of 12
CODING: Words stricken are deletions; words underlined are additions.
hb1121-02-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 1121 2022
251 Statutes. These restrictions on disclosure of personal
252 information, however, have not applied to personal information
253 revealed in crash reports. When personal information revealed in
254 crash reports or computerized crash report data is made
255 available to the public, because it comprises much of the same
256 personal information contained in driver license and motor
257 vehicle records, the protections afforded by the federal
258 Driver's Privacy Protection Act of 1994 are significantly
259 undermined, eroding the privacy and safety of drivers.
260 Therefore, the Legislature finds that it is a public necessity
261 to make confidential and exempt from public records requirements
262 crash reports that reveal personal information concerning
263 parties, passengers, and witnesses to a crash for a period of 60
264 days after the date the crash report is filed with an agency;
265 such personal information revealed in crash reports held by an
266 agency following the 60-day period; and computerized crash
267 report data held by an agency.
268 (2) The Legislature finds that it is a public necessity
269 that driver information contained in a uniform traffic citation
270 held by an agency be exempt from s. 119.07(1), Florida Statutes,
271 and s. 24(a), Article I of the State Constitution. Uniform
272 traffic citations reveal significant personal information about
273 drivers issued a citation. Pervasive use of the Internet and
274 related technologies abet those with malicious purposes in
275 exploiting the use of personal information contained in traffic
Page 11 of 12
CODING: Words stricken are deletions; words underlined are additions.
hb1121-02-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 1121 2022
276 citations, such as a driver's date of birth, driver license
277 number, and address, creating ever-expanding threats to privacy
278 and security never envisioned in generations past. Driver
279 information, when held by the Department of Highway Safety and
280 Motor Vehicles in driver license and motor vehicle records, is
281 confidential pursuant to the federal Driver's Privacy Protection
282 Act of 1994, 18 U.S.C. ss. 2721 et seq., and s. 119.0712(2),
283 Florida Statutes. These restrictions on disclosure of personal
284 information, however, have not applied to driver information
285 contained in uniform traffic citations. When driver information
286 contained in uniform traffic citations is made available to the
287 public, because it comprises much of the same personal
288 information contained in driver license and motor vehicle
289 records, the protections afforded by the federal Driver's
290 Privacy Protection Act of 1994 are significantly undermined,
291 eroding the privacy and safety of drivers. Therefore, the
292 Legislature finds that it is a public necessity to make exempt
293 from public records requirements driver information contained in
294 uniform traffic citations.
295 Section 4. This act shall take effect March 1, 2023.
Page 12 of 12
CODING: Words stricken are deletions; words underlined are additions.
hb1121-02-c2
COMMERCE COMMITTEE
CS/CS/HB 1121 by Rep. Brannan
Public Records/Crash Reports and Traffic Citations
AMENDMENT SUMMARY
February 23, 2022
Amendment 1 by Rep. Brannan (Line 55):
• Clarifies that a redacted crash report shall, upon request, be provided to the
media.
COMMITTEE/SUBCOMMITTEE AMENDMENT
Bill No. CS/CS/HB 1121 (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 Brannan offered the following:
3
4 Amendment
5 Remove line 55 and insert:
6 crash shall, upon request, be made immediately available to
7 radio and television
422773 - h1121-line 55.docx
Published On: 2/22/2022 4:15:45 PM
Page 1 of 1
CS/HB 1307
HOUSE OF REPRESENTATIVES STAFF ANALYSIS
BILL #: CS/HB 1307 Citizens Property Insurance Corporation
SPONSOR(S): Insurance & Banking Subcommittee, Gregory and others
TIED BILLS: IDEN./SIM. BILLS:
REFERENCE ACTION ANALYST STAFF DIRECTOR or
BUDGET/POLICY CHIEF
1) Insurance & Banking Subcommittee 17 Y, 0 N, As CS Fortenberry Luczynski
2) Commerce Committee Fortenberry Hamon
SUMMARY ANALYSIS
The bill makes several changes to the operations of, and requirements for, Citizens Property Insurance
Corporation (Citizens), the state-run property insurer:
Establishes that the Office of Insurance Regulation (OIR) must approve the method that Citizens uses
to value dwelling replacement cost.
Establishes Citizens must charge policyholders a surcharge to offset a projected deficit according to a
schedule based upon the number of Citizens’ policyholders.
Defines “demonstrated expertise in insurance” for the purpose of board appointments as at least ten
years of responsible experience in specific areas of the insurance industry.
Establishes that, at the time of appointment, Citizens’ executive director must have the experience,
character, and qualifications sufficient to qualify as a chief executive officer of an insurer in accordance
with the requirements for managers, officers, and directors of private insurers.
Establishes that when Citizens’ personal lines residential or commercial lines residential policyholders
receive offers of coverage at renewal from authorized insurers, the risks are not eligible for coverage
from Citizens unless the premiums from the authorized insurers are more than a set percentage
greater than the renewal premiums for comparable coverage from Citizens. This percentage begins at
5 percent and increases incrementally to 20 percent by 2026.
Establishes that for new applications for commercial lines residential risks, the risk is not eligible for
coverage by Citizens unless the premium for coverage from an authorized insurer is more than 20
percent greater than the premium for Citizens. SB 76 (2021) made the change from 15 percent to 20
percent for personal lines residential risks, but the change was not made for commercial lines
residential risks in that bill.
Eliminates the ability of Citizens to include the cost of reinsurance in its rate calculations if it does not
purchase reinsurance.
Establishes that when Citizens’ policyholders receive take-out offers from authorized insurers that
include premiums that are not more than a set percentage greater than Citizens’ premium for
comparable coverage, they are no longer eligible for Citizens’ coverage. This percentage begins at 5
percent and increases incrementally to 20 percent by 2026. The bill also requires that Citizens’ notify
policyholders of the fact that they have received such an offer and that the offer renders their risks
ineligible for Citizens’ coverage.
Establishes that surplus lines insurers may participate in Citizens’ take-out program subject to the
insurers meeting certain financial requirements and having a depopulation, take-out, or keep-out plan
(plan) approved by OIR.
The bill has no effect on state or local government revenues or expenditures. It may have an indeterminate
negative impact on the private sector.
The bill is effective on July 1, 2022.
This docum ent does not reflect the intent or official position of the bill sponsor or House of Representatives .
STORAGE NAME: h1307b.COM
DATE: 2/21/2022
FULL ANALYSIS
I. SUBSTANTIVE ANALYSIS
A. EFFECT OF PROPOSED CHANGES:
Citizens Property Insurance Corporation (Citizens)
Citizens is a state-created, not-for-profit, tax-exempt government entity that is an integral part of the
state, whose public purpose is to provide property insurance to those unable to find affordable
coverage in the private market.1 Citizens is overseen by a board of directors (board) and operated by
an executive director. Citizens writes both personal and commercial property policies, including the
following:
Standard personal lines policies that are comprehensive multiperil policies providing full
coverage of residential property equivalent to the coverage provided in the private insurance
market;
Basic personal lines policies that are similar to dwelling fire policies that provide coverage
meeting the requirements of the secondary mortgage market, but are more limited in coverage
than under a standard policy;
Commercial lines residential and nonresidential policies that are generally similar to the basic
perils of full coverage obtainable for commercial residential structures and commercial
nonresidential structures in the private market;
Personal lines and commercial lines residential property insurance policies that cover the peril
of wind only;
Commercial lines nonresidential property insurance policies that cover the peril of wind only. 2
Dwelling Valuation
Background
Dwelling coverage, sometimes called “dwelling insurance,” is the part of a homeowners policy that pays
for the rebuilding or repair of the physical structure of the home if it is damaged by a covered peril. 3
Coverage may be provided on a replacement cost or actual cash-value basis. Replacement cost
includes the cost of materials and labor necessary to rebuild or repair the home. Actual cash value is
calculated by subtracting depreciation from replacement cost.
Since January 1, 2017, with certain exceptions, a structure that has a dwelling replacement cost of
$700,000 or more, or a single condominium that has a combined dwelling and contents replacement
cost of $700,000 or more, is not eligible for Citizens’ coverage. 4 However, in counties where the Office
of Insurance Regulation (OIR) has determined there is not a reasonable degree of competition in the
availability of property insurance, the limit for the dwelling replacement cost of a structure, or the
dwelling and contents replacement cost of a single condominium eligible for coverage is $1,000,000.5
Insurance companies typically use information on a customer’s application, proprietary formulas, and
third-party data to calculate dwelling replacement costs, which differ from market value. 6 Current law
does not specify the method by which Citizens must calculate dwelling replacement cost and does not
involve OIR in the process of completing such calculations.
1 S. 627.351(6)(a)1., F.S.
2 S. 627.351(6)(c)1., F.S.
3 Allstate, What is Dwelling Insurance Coverage?, https://www.allstate.com/tr/home-insurance/dwelling-insurance.aspx
(last visited Jan. 29, 2022).
4 S. 627.351(6)(a)3.d., F.S.
5 Id.
6 Kin, What is a Replacement Cost Estimate?, https://www.kin.com/faq/replacement-cost-estimate (last visited Jan. 29,
2022).
STORAGE NAME: h1307b.COM PAGE: 2
DATE: 2/21/2022
Effect of the Bill
The bill establishes that OIR must approve the method that Citizens uses to value dwelling replacement
cost. It also removes obsolete language regarding dwelling and contents coverage provided by
Citizens.
Policyholder Surcharge
Background
All of Citizens’ revenues, assets, liabilities, losses, and expenses are divided into three accounts as
follows:
A personal lines account for personal residential policies issued by Citizens which provides
comprehensive, multiperil coverage on risks that are not located in the areas covered by the
coastal account and for policies that do not provide coverage for the peril of wind on risks
located in the areas covered by the coastal account;
A commercial lines account for commercial residential and commercial nonresidential policies
issued by Citizens which provides coverage for basic property perils on risks that are not
located in areas covered by the coastal account and do not provide coverage for the peril of
wind only risks located in the areas covered by the coastal account; and
A coastal account for personal residential policies, and commercial residential and commercial
nonresidential property policies issued by Citizens which provides coverage for the peril of wind
only risks that are located in the coastal areas. 7
Upon a determination by the board that an account has a projected deficit, the board must levy a
surcharge against all Citizens’ policyholders.8 The surcharge must be levied as a uniform percentage of
the premium for the policy, up to 15 percent of the premium, and must be used to offset the deficit. 9 The
surcharge is payable upon cancellation or termination of the policy, upon renewal of the policy, or upon
issuance of new policy by Citizens within the first 12 months after the levy or the period of time
necessary to fully collect the surcharge.10 The surcharge is not considered premium and is not subject
to commissions, fees, or premium taxes.11 However, failure of the insured to pay the surcharge is
considered failure to pay premium.12
Effect of the Bill
The bill establishes Citizens must charge policyholders a surcharge to offset a projected deficit
according to the following schedule:
If the total number of Citizens’ policyholders is less than one million, a surcharge of 15 percent
of the premium;
If the total number of Citizens’ policyholders is at least one million but less than 1.5 million, a
surcharge of 20 percent of the premium; and
If the total number of Citizens’ policyholders is at least 1.5 million, a surcharge of 25 percent of
the premium.
Primary Residence
Background
7 S. 627.351(6)(b)2.a., F.S.
8 S. 627.351(6)(b)2.i., F.S.
9 S. 627.351(6)(b)2.i.(I), F.S.
10 S. 627.351(6)(b)2.i.(II), F.S.
11 S. 627.351(6)(b)2.i.(IV), F.S.
12 Id.
STORAGE NAME: h1307b.COM PAGE: 3
DATE: 2/21/2022
Currently Florida statutes regarding Citizens do not define or otherwise mention a primary residence or
establish different rates or coverage based upon whether a property is an insured’s primary residence.
Effect of the Bill
The bill defines “primary residence” as a residential dwelling that an insured has listed as a homestead
either on an insurance application or has informed Citizens of by other means and is owned by a citizen
of, or lawful permanent resident of, the United States. However, the definition is not utilized in any
current provisions of law or new provisions of the bill.
Qualifications of Citizens’ Board Members
Background
Citizens is overseen by its board, which consists of nine individuals who must be residents of different
geographical areas of Florida.13 The Governor, Chief Financial Officer, President of the Senate, and
Speaker of the House, each appoint two members of the board. 14 The Governor appoints one
additional member who serves solely to advocate on behalf of consumers. 15 At least one of the two
members appointed by each appointing officer must have demonstrated experience in insurance. 16
However, current law does not define the insurance experience that the board members must have in
order to qualify for their board positions.
Effect of the Bill
The bill defines “demonstrated expertise in insurance” as at least ten years of responsible experience:
In property and casualty insurance as a full-time employee, an officer or owner of a licensed
insurance agency, or an insurer writing residential property insurance; or
As an insurance regulator or an executive or officer of an insurance trade association.
Qualifications of Citizens’ Executive Director
Background
Citizens is run by an executive director that is engaged by the board and serves “at the pleasure of the
board.”17 The executive director is subject to confirmation by the Senate. 18 He or she is responsible for
employing other staff as Citizens requires, subject to review and agreement by the board.19 However,
current law does not specify the experience, character, or qualifications that an individual must have in
order to be qualified to serve as Citizens’ executive director.
Florida law provides guidance regarding the qualifications necessary for individuals to serve as officers
and directors of private insurers within the state.20 In general, OIR must not grant or continue to grant
authority to transact insurance to any insurer, which has management, officers, or directors that it finds
to be incompetent or untrustworthy, or “so lacking in insurance company managerial experience as to
make the proposed operation hazardous to the insurance-buying public.”21 Additionally, OIR must not
grant or continue authority to transact insurance to any insurer if any person in control of the insurer
“does not possess the financial standing and business experience for the successful operation of the
insurer.”22
13 S. 627.351(6)(c)4., F.S.
14 Id.
15 Id.
16 Id.
17 Id.
18 Id.
19 Id.
20 See s. 624.404(3), F.S.
21 S. 624.404(3)(a), F.S.
22 S. 624.404(3)(b), F.S.
STORAGE NAME: h1307b.COM PAGE: 4
DATE: 2/21/2022
Effect of the Bill
The bill establishes that, at the time of appointment, Citizens’ executive director must have the
experience, character, and qualifications sufficient to qualify as a chief executive officer of an insurer in
accordance with s. 624.404(3), F.S.
Competitiveness of Citizens’ Rates and Eligibility for Coverage
Current law requires Citizens to provide a procedure for determining the eligibility of a potential risk for
coverage from Citizens and provides specific eligibility requirements based on premium amounts, value
of the property insured, and the location of the property. Risks not meeting the statutory eligibility
requirements cannot be insured by Citizens. Citizens also has additional eligibility requirements set out
in their underwriting rules. These rules are approved by OIR and set out in Citizens’ underwriting
manuals.23
Citizens’ rate cap, also known as the “glide path,” is not closing the gap between Citizens rates and
private market rates. Instead, because of the rate cap and the increasing rates of private property
insurance, the gap is growing and making Citizens more like a competitor to private insurers than an
insurer of last resort. Because Citizens’ rates are often well below those of private carriers, Citizens
may be more competitive than otherwise intended. Due to Citizens’ structure, its rates do not contain
certain elements that the rates of private insurers contain. Citizens does not pay taxes like private
insurers and does not need to purchase as much reinsurance as private insurers because of Citizens’
higher levels of capital and surplus.
Eligibility for Personal and Commercial Lines Residential Coverage at Renewal
Background
Both personal lines residential and commercial lines residential policyholders cannot renew Citizens’
insurance policies if an authorized insurer offers to insure their property at a premium equal to or less
than Citizens’ renewal premium.24 Additionally, the insurance from the authorized insurer must be
comparable to the insurance from Citizens in order for the renewal premium eligibility requirement to
apply.25
Effect of the Bill
The bill establishes that when Citizens’ personal lines residential or commercial lines residential
policyholders receive offers of coverage at renewal from authorized insurers, the risks are not eligible
for coverage from Citizens unless the premiums from the authorized insurers are more than the
following percent greater than the renewal premiums for comparable coverage from Citizens:
5 percent for policies that renew during 2023.
10 percent for policies that renew during 2024.
15 percent for policies that renew during 2025.
20 percent for policies that renew during 2026 and during all subsequent years.
The bill also establishes that policies removed from Citizens under an assumption agreement may
remain on Citizen’s policy forms through the end of the assumption period so that Citizens may
continue to provide service to the policyholder for the claims that are payable by the assuming insurer.
Eligibility for New Commercial Lines Residential Coverage
23 See Citizens Property Insurance Corporation, Revised Underwriting Manuals, https://www.citizensfla.com/-/20160329-
revised-underwriting-manuals (last visited Jan. 30, 2022).
24 S. 627.351(6)(c)5., F.S.
25 Id.
STORAGE NAME: h1307b.COM PAGE: 5
DATE: 2/21/2022
Background
New applicants are eligible for commercial lines residential coverage from Citizens if no authorized
insurer will write them a policy for a premium that is less than 15 percent greater than what Citizens
would offer them for comparable coverage.26 However, new applicants are eligible for personal lines
residential coverage if no authorized insurer will write them a policy for a premium that is less than 20
percent greater than what Citizens would offer them for comparable coverage. 27
Effect of the Bill
The bill establishes that for new applications for commercial lines residential risks, the risk is not eligible
for coverage by Citizens unless the premium for coverage from an authorized insurer is more than 20
percent greater than the premium for Citizens.28
Purchase of Reinsurance
Background
Current law requires that Citizens make its best efforts to procure catastrophe reinsurance at
reasonable rates to cover its projected 100-year probable maximum loss (PML).29 Due to the high cost
of reinsurance in recent years, some years Citizens has determined that reinsurance is not available at
reasonable rates and has not purchased it. If catastrophe reinsurance is not available at reasonable
rates, Citizens need not purchase it, but Citizens shall include the costs of reinsurance to cover its
projected 100-year PML in its rate calculations even it if does not purchase it. 30
Effect of the Bill
The bill changes existing statutory language regarding Citizens’ purchase of reinsurance so that
Citizens shall no longer include the cost of reinsurance in its rate calculations if it does not purchase
reinsurance.
26 S. 627.351(6)(c)5., F.S.
27 Id.
28 SB 76 (2021) made the change from 15 percent to 20 percent for personal lines residential risks, but the change was
not made for commercial lines residential risks in that bill.
29 S. 627.351(6)(c)9., F.S. Probable maximum loss refers to the value that may be reasonably expected to be lost in a
single casualty. IRMI, https://www.irmi.com/term/insurance-definitions/probable-maximum-loss (last visited Feb. 3, 2022).
If an insurer is buying reinsurance to cover its 100-year probable maximum loss, it is purchasing reinsurance to cover the
maximum loss that has a chance of occurring once in 100 years.
30 Id.
STORAGE NAME: h1307b.COM PAGE: 6
DATE: 2/21/2022
Citizens’ Take-out Program/Depopulation
Eligibility After a Take-out Offer
Background
Florida law requires that Citizens create programs to help return its policyholders to the private property
insurance market and to reduce the risk of additional assessments for all Floridians in the even that
Citizens is unable to meet its obligations.31 In 2016, the Legislature passed requirements that by
January 1, 2017, Citizens amend its operations relating to take-out agreements, whereby private
insurers remove policies from Citizens.32 As part of these requirements, a policy may not be taken out
of Citizens unless Citizens:
Publishes a periodic schedule of cycles during which an insurer may identify, and notify Citizens
of, policies the insurer requests to take out;33
Maintains and makes available to the agent of record a consolidated list of all insurers
requesting to take out a policy; the list must include a description of the coverage offered and
the estimated premium for each take-out request;
Provides written notice to the policyholder and the agent of record regarding all insurers
requesting to take-out the policy and regarding the policyholder’s option to accept a take-out
offer or to reject all take-out offers and to remain with Citizens. The notice must be in a format
prescribed by Citizens and include, for each take-out offer:
o The amount of the estimated premium;
o A description of coverage; and
o A comparison of the estimated premium and coverage offered by the insurer to the
estimated premium and coverage provided by Citizens. 34
Effect of the Bill
The bill establishes that when Citizens’ policyholders receive take-out offers from authorized insurers
that include premiums that are not more than the following percent greater than Citizens’ renewal
premium for comparable coverage, they are no longer eligible for Citizens’ coverage:
5 percent for policies effective on or after January 1, 2023.
10 percent for policies effective on or after January 1, 2024.
15 percent for policies effective on or after January 1, 2025.
20 percent for policies effective on or after January 1, 2026, and in all subsequent years.
The bill requires that Citizens’ notify policyholders that they have received such an offer and that the
offer renders their risks ineligible for Citizens’ coverage.
The bill also eliminates a 36-month exception where a policyholder whose policy has been taken-out of
Citizens can still be considered a renewal if the authorized insurer that took the policy raises the
policyholder’s rates.
31 S. 627.351(6)(q)3.a., F.S.
32 Ch. 2016-229, Laws of Fla.
33 These requests from insurers must include a description of the coverage offered and an estimated premium for it and
must be submitted to Citizens in a form prescribed by Citizens.
34 S. 627.351(6)(ii), F.S.
STORAGE NAME: h1307b.COM PAGE: 7
DATE: 2/21/2022
Surplus Lines Insurer Participation in Citizens’ Take-out Program
Background
With certain exceptions, Florida law requires any person transacting insurance to have a certificate of
authority issued by the OIR.35 Authorized insurers in Florida are subject to the provisions of the Florida
Insurance Code36 and regulation primarily by OIR.37 OIR’s regulatory authority over authorized insurers
includes solvency and financial strength, insurance policy forms and rates, and market conduct of the
insurers. There are risks for which insurance in the admitted market are not available because insurers
are unable or unwilling to write policies for them. Therefore, states allow insurers that are not otherwise
authorized to sell policies to sell surplus lines insurance if they meet certain requirements.
Surplus lines insurers are still considered “unauthorized” insurers 38, and may write only surplus lines
policies if they are made “eligible” by OIR. Except as specifically stated, surplus lines insurers are not
subject to regulation by OIR under ch. 627, F.S., which includes statutory provisions regarding rating
standards and insurance policy forms.39 Currently, surplus lines insurers are not permitted to participate
in Citizens’ take-out program.
Effect of the Bill
The bill establishes that surplus lines insurers may participate in Citizens’ take-out program subject to
the insurers meeting certain financial requirements and having a depopulation, take-out, or keep-out
plan (plan) approved by OIR. In considering a surplus lines insurer’s request for approval of its plan,
OIR must determine whether the surplus lines insurer:
Maintains a surplus of $50 million on a company or pooled basis;
Has a superior, excellent, exceptional, or equivalent financial strength rating by a rating agency
acceptable to OIR;
Maintains reserves, surplus, reinsurance, and reinsurance equivalents sufficient to cover the
insurer’s 100-year probable maximum hurricane loss at least twice in a single hurricane season
and submits such reinsurance to OIR to review for purposes of the plan;
Provides prominent notice to the policyholder before the assumption of the policy that surplus
lines policies do not receive coverage from the Florida Insurance Guaranty Association 40 and
provides an outline of any substantial differences in coverage between the existing policy and
the policy it is offering to the policyholder;
Provides policy coverage similar to the coverage that Citizens provides.
The bill establishes that to obtain approval of a plan, the surplus lines insurer must file the following
information with OIR:
Information OIR requests to demonstrate that the insurer complies with the statutory requirements
regarding competence and trustworthiness of its officers; 41
A service-of-process consent and agreement form executed by the insurer;
Proof that the insurer has been an eligible or authorized insurer for at least 3 years;
An authenticated copy of the insurer’s current audited financial statement;
A completed certified copy of the latest official financial statement required by the insurer’s
domiciliary state, if different from the audited financial statement;
A copy of the insurer’s United States trust account agreement, if applicable.
35 S. 624.401, F.S. In the Florida Insurance Code (FIC), a person also includes a business entity such as an insurer.
36 Section 624.404, F.S., provides that an insurer must be in compliance with the FIC to qualify for and hold authority to
transact insurance in the state. The FIC is chapters 624-632, 634, 635, 636, 641, 642, 648, and 651, F.S. S. 624.01, F.S.
37 In general, OIR has regulatory authority over insurers and the Department of Financial Services (DFS ) has regulatory
authority over insurance agents and agencies.
38 S. 624.09(2), F.S.
39 S. 626.913(4), F.S.
40 The Florida Insurance Guaranty Association provides a “mechanism for the payment of covered claims under certain
insurance policies to avoid excessive delay in payment and to avoid financial loss to claimants or policyholders because
of the insolvency of an insurer.” S. 631.51, F.S.
41 See s. 624.404(3), F.S. and s. 624.34, F.S.
STORAGE NAME: h1307b.COM PAGE: 8
DATE: 2/21/2022
The bill also establishes that, within 10 days after the date of assumption of policies that it has taken-out
from Citizens, the surplus lines insurer must remit to the Bureau of Collateral Management (BCM) within
the Department of Financial Services (DFS) a special deposit equal to the unearned premium, minus
unearned commissions, on the assumed policies. According to the bill, the surplus lines insurer is also
required to provide the BCM with an accounting of the policies assumed within 10 days of the assumption,
a quarterly filing with the BCM regarding the unearned premium on the policies in force for those assumed
from Citizens, and additional deposits if the deposit previously made to the BCM is insufficient to cover the
unearned premium on the assumed policies.
The bill provides that, if an order of liquidation is entered in any state against the surplus lines insurer, DFS
may use the special deposit for payment of unearned premium or policy claims, return all or part of the
deposit to the receiver in the surplus lines insurer’s state of domicile, or use the funds in accordance with
any action authorized under ch. 631, part I, F.S.,42 or in compliance with an order from a court having
jurisdiction over the insolvency.
According to the bill, before a surplus lines insurer assumes a policy from Citizens, surplus lines brokers
representing the surplus lines insurer shall obtain written or email confirmation from each producing agent
stating that the agent is willing to participate in the take-out program with that surplus lines insurer. The bill
further establishes that if both a surplus lines insurer and an authorized insurer select a policyholder for
removal from Citizens, Citizens must give priority to the offer from the authorized insurer.
The bill provides that the following risks are not eligible for Citizens coverage if they are offered comparable
coverage from qualified surplus lines insurer at a premium no greater than 15 percent above the premium
charged by Citizens:
A risk that has a dwelling replacement cost of $700,000 or more.
A single condominium unit that has a dwelling and content replacement cost of $700,000 or more.
However, the bill also establishes that a risk that has a dwelling replacement cost below $700,000, or a
single condominium unit that has a combined dwelling and contents replacement cost below $700,000
remains eligible for Citizens coverage if a qualified surplus lines insurer offers it coverage.
B. SECTION DIRECTORY:
Section 1. Amends s. 627.022, F.S., relating to scope of this part.
Section 2. Amends s. 627.351, F.S., relating to insurance risk apportionment plans.
Section 3. Amends s. 627.3517, F.S., relating to consumer choice.
Section 4. Amends s. 627.3518, F.S., relating to Citizens Property Insurance Corporation policyholder
eligibility clearinghouse program.
Section 5. 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.
42 Ch. 631, part 1, F.S., establishes the requirements for rehabilitation and liquidation of insolvent insurers in Florida.
STORAGE NAME: h1307b.COM PAGE: 9
DATE: 2/21/2022
B. FISCAL IMPACT ON LOCAL GOVERNMENTS:
1. Revenues:
None.
2. Expenditures:
None.
C. DIRECT ECONOMIC IMPACT ON PRIVATE SECTOR:
To the extent that less policyholders are eligible for Citizens’ coverage, they may pay more in insurance
premiums on the private market. Therefore, the bill may have an indeterminate negative impact on the
private sector.
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 neither authorizes nor requires administrative rulemaking.
C. DRAFTING ISSUES OR OTHER COMMENTS:
Lines 573-576 of the bill define the term “primary residence.” However, that term is not used elsewhere
in the bill and the definition may be unnecessary. Additionally, as written, the definition is unclear as to
whether the primary residence must be owned by the insured or may be owned by another citizen of
the United States or lawful permanent resident and declared a homestead by someone other than the
owner. If the bill is amended to use the term elsewhere, it is recommended to amend the definition for
clarity about who may own the property that is declared to be a homestead.
IV. AMENDMENTS/COMMITTEE SUBSTITUTE CHANGES
On February 2, 2022, the Insurance & Banking Subcommittee considered the bill, adopted three
amendments, and reported the bill favorably as a committee substitute. The amendments made the
following changes to the bill:
Phased in the percentage, by which an authorized insurer’s renewal offer for a Citizens’
policyholder may exceed Citizens’ premium and make a policyholder ineligible for Citizens’
coverage, by 5 percent per year until it reaches 20 percent in 2026.
Clarified that a policy removed from Citizens under an assumption agreement may remain on
Citizens’ policy forms for the remainder of the assumption period so that Citizens may continue to
provide service to the policyholder for the claims that are payable by the assuming insurer.
Changed existing statutory language regarding Citizens’ purchase of reinsurance so that Citizens
shall no longer include the cost of reinsurance in its rate calculations if it does not purchase
reinsurance.
Phased in the percentage, by which an authorized insurer’s take-out offer may exceed Citizens’
premium and make a policyholder ineligible for Citizens’ coverage, by 5 percent per year until it
reaches 20 percent in 2026.
STORAGE NAME: h1307b.COM PAGE: 10
DATE: 2/21/2022
Eliminated language that creates a 36-month exception whereby a policyholder whose policy has
been taken-out of Citizens can still be considered a renewal if the authorized insurer that took the
policy raises the policyholder’s rates.
The analysis is drafted to the committee substitute as passed by the Insurance & Banking Subcommittee.
STORAGE NAME: h1307b.COM PAGE: 11
DATE: 2/21/2022
F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
CS/HB 1307 2022
1 A bill to be entitled
2 An act relating to Citizens Property Insurance
3 Corporation; amending s. 627.021, F.S.; revising
4 applicability; amending s. 627.351, F.S.; deleting
5 obsolete language; requiring the Office of Insurance
6 Regulation to approve the method used by Citizens
7 Property Insurance Corporation for valuing the
8 dwelling replacement costs; revising the method for
9 determining the amounts of potential surcharges to be
10 levied against policyholders under certain
11 circumstances; defining the term "primary residence";
12 specifying qualification requirements for certain
13 members of the corporation's board of governors at the
14 time of appointment and reappointment; defining the
15 term "demonstrated expertise in insurance" to specify
16 the qualifications of some appointees for the board
17 membership; revising thresholds for determining
18 eligibility of a risk for coverage by the corporation;
19 providing that policyholders removed from the
20 corporation through an assumption agreement do not
21 remain eligible for coverage from the corporation but
22 may remain on the corporation's policy forms for a
23 specified time for a specified purpose; eliminating
24 costs of reinsurance in rates under certain
25 circumstances; making technical changes; specifying
Page 1 of 78
CODING: Words stricken are deletions; words underlined are additions.
hb1307-01-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 1307 2022
26 the qualifications for an appointee as the executive
27 director of the corporation; providing that eligible
28 surplus lines insurers may participate, in the same
29 manner and on the same terms as authorized insurers,
30 in depopulation, take-out, or keep-out programs
31 relating to policies removed from the corporation;
32 providing certain exceptions, conditions, and
33 requirements relating to such participation by surplus
34 lines insurers in the corporation's depopulation,
35 take-out, or keep-out programs; providing thresholds
36 for eligibility for coverage by the corporation for
37 risks that are offered coverage from qualified surplus
38 lines insurers; revising circumstances under which
39 information from underwriting files and confidential
40 claims files may be released by the corporation;
41 revising the list of entities that such files may be
42 released to; specifying that only the corporation's
43 transfer of a policy file to an insurer, rather than
44 the transfer of any file, changes the file's public
45 record status; providing thresholds for determining
46 eligibility for coverage by the corporation for
47 policyholders who receive take-out offers from
48 authorized insurers; revising the notice that must be
49 provided by the corporation when insurers request to
50 take out a policy; amending s. 627.3517, F.S.; making
Page 2 of 78
CODING: Words stricken are deletions; words underlined are additions.
hb1307-01-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 1307 2022
51 technical changes; amending s. 627.3518, F.S.;
52 deleting obsolete provisions relating to the purpose
53 of the corporation's clearinghouse program and
54 reporting requirements; revising procedures for
55 determining eligibility of a risk for coverage with
56 the corporation; deleting provisions relating to
57 renewal status for coverage by the corporation;
58 providing an effective date.
59
60 Be It Enacted by the Legislature of the State of Florida:
61
62 Section 1. Subsection (2) of section 627.021, Florida
63 Statutes, is amended to read:
64 627.021 Scope of this part.—
65 (2) This part does not apply to:
66 (a) Reinsurance, except joint reinsurance as provided in
67 s. 627.311.
68 (b) Insurance against loss of or damage to aircraft, their
69 hulls, accessories, or equipment, or against liability, other
70 than workers' compensation and employer's liability, arising out
71 of the ownership, maintenance, or use of aircraft.
72 (c) Insurance of vessels or craft, their cargoes, marine
73 builders' risks, marine protection and indemnity, or other risks
74 commonly insured under marine insurance policies.
75 (d) Commercial inland marine insurance.
Page 3 of 78
CODING: Words stricken are deletions; words underlined are additions.
hb1307-01-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 1307 2022
76 (e) Except as may be specifically stated to apply, surplus
77 lines insurance placed under the provisions of ss. 626.913-
78 626.937.
79 Section 2. Paragraphs (a), (b), (c), (d), (n), (q), (x),
80 and (ii) of subsection (6) of section 627.351, Florida Statutes,
81 are amended to read:
82 627.351 Insurance risk apportionment plans.—
83 (6) CITIZENS PROPERTY INSURANCE CORPORATION.—
84 (a) The public purpose of this subsection is to ensure
85 that there is an orderly market for property insurance for
86 residents and businesses of this state.
87 1. The Legislature finds that private insurers are
88 unwilling or unable to provide affordable property insurance
89 coverage in this state to the extent sought and needed. The
90 absence of affordable property insurance threatens the public
91 health, safety, and welfare and likewise threatens the economic
92 health of the state. The state therefore has a compelling public
93 interest and a public purpose to assist in assuring that
94 property in the state is insured and that it is insured at
95 affordable rates so as to facilitate the remediation,
96 reconstruction, and replacement of damaged or destroyed property
97 in order to reduce or avoid the negative effects otherwise
98 resulting to the public health, safety, and welfare, to the
99 economy of the state, and to the revenues of the state and local
100 governments which are needed to provide for the public welfare.
Page 4 of 78
CODING: Words stricken are deletions; words underlined are additions.
hb1307-01-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 1307 2022
101 It is necessary, therefore, to provide affordable property
102 insurance to applicants who are in good faith entitled to
103 procure insurance through the voluntary market but are unabl e to
104 do so. The Legislature intends, therefore, that affordable
105 property insurance be provided and that it continue to be
106 provided, as long as necessary, through Citizens Property
107 Insurance Corporation, a government entity that is an integral
108 part of the state, and that is not a private insurance company.
109 To that end, the corporation shall strive to increase the
110 availability of affordable property insurance in this state,
111 while achieving efficiencies and economies, and while providing
112 service to policyholders, applicants, and agents which is no
113 less than the quality generally provided in the voluntary
114 market, for the achievement of the foregoing public purposes.
115 Because it is essential for this government entity to have the
116 maximum financial resources to pay claims following a
117 catastrophic hurricane, it is the intent of the Legislature that
118 the corporation continue to be an integral part of the state and
119 that the income of the corporation be exempt from federal income
120 taxation and that interest on the debt obligations issued by the
121 corporation be exempt from federal income taxation.
122 2. The Residential Property and Casualty Joint
123 Underwriting Association originally created by this statute
124 shall be known as the Citizens Property Insurance Corporation.
125 The corporation shall provide insurance for residential and
Page 5 of 78
CODING: Words stricken are deletions; words underlined are additions.
hb1307-01-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 1307 2022
126 commercial property, for applicants who are entitled, but, in
127 good faith, are unable to procure insurance through the
128 voluntary market. The corporation shall operate pursuant to a
129 plan of operation approved by order of the Financial Services
130 Commission. The plan is subject to continuous review by the
131 commission. The commission may, by order, withdraw approval of
132 all or part of a plan if the commission determines that
133 conditions have changed since approval was granted and that the
134 purposes of the plan require changes in the plan. For the
135 purposes of this subsection, residential coverage includes both
136 personal lines residential coverage, which consists of the type
137 of coverage provided by homeowner, mobile home owner, dwelling,
138 tenant, condominium unit owner, and similar policies; and
139 commercial lines residential coverage, which consists of the
140 type of coverage provided by condominium association, apartment
141 building, and similar policies.
142 3. With respect to coverage for personal lines residential
143 structures,:
144 a. Effective January 1, 2014, a structure that has a
145 dwelling replacement cost of $1 million or more, or a single
146 condominium unit that has a combined dwelling and contents
147 replacement cost of $1 million or more, is not eligible for
148 coverage by the corporation. Such dwellings insured by the
149 corporation on December 31, 2013, may continue to be covered by
150 the corporation until the end of the policy term. The office
Page 6 of 78
CODING: Words stricken are deletions; words underlined are additions.
hb1307-01-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 1307 2022
151 shall approve the method used by the corporation for valuing the
152 dwelling replacement cost for the purposes of this subparagraph.
153 If a policyholder is insured by the corporation before being
154 determined to be ineligible pursuant to this subparagraph and
155 such policyholder files a lawsuit challenging the determination,
156 the policyholder may remain insured by the corporation until the
157 conclusion of the litigation.
158 b. Effective January 1, 2015, a structure that has a
159 dwelling replacement cost of $900,000 or more, or a single
160 condominium unit that has a combined dwelling and contents
161 replacement cost of $900,000 or more, is not eligible for
162 coverage by the corporation. Such dwellings insured by the
163 corporation on December 31, 2014, may continue to be covered by
164 the corporation only until the end of the policy term.
165 c. Effective January 1, 2016, a structure that has a
166 dwelling replacement cost of $800,000 or more, or a single
167 condominium unit that has a combined dwelling and contents
168 replacement cost of $800,000 or more, is not eligible for
169 coverage by the corporation. Such dwellings insured by the
170 corporation on December 31, 2015, may continue to be covered by
171 the corporation until the end of the policy term.
172 d. effective January 1, 2017, a structure that has a
173 dwelling replacement cost of $700,000 or more, or a single
174 condominium unit that has a combined dwelling and contents
175 replacement cost of $700,000 or more, is not eligible for
Page 7 of 78
CODING: Words stricken are deletions; words underlined are additions.
hb1307-01-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 1307 2022
176 coverage by the corporation. The office shall approve the method
177 used by the corporation for valuing the dwelling replac ement
178 cost Such dwellings insured by the corporation on December 31,
179 2016, may continue to be covered by the corporation until the
180 end of the policy term. The requirements of this subparagraph
181 sub-subparagraphs b.-d. do not apply in counties where the
182 office determines there is not a reasonable degree of
183 competition. In such counties a personal lines residential
184 structure that has a dwelling replacement cost of less than $1
185 million, or a single condominium unit that has a combined
186 dwelling and contents replacement cost of less than $1 million,
187 is eligible for coverage by the corporation.
188 4. It is the intent of the Legislature that policyholders,
189 applicants, and agents of the corporation receive service and
190 treatment of the highest possible level but never less than that
191 generally provided in the voluntary market. It is also intended
192 that the corporation be held to service standards no less than
193 those applied to insurers in the voluntary market by the office
194 with respect to responsiveness, timeliness, customer courtesy,
195 and overall dealings with policyholders, applicants, or agents
196 of the corporation.
197 5.a. Effective January 1, 2009, a personal lines
198 residential structure that is located in the "wind-borne debris
199 region," as defined in s. 1609.2, International Building Code
200 (2006), and that has an insured value on the structure of
Page 8 of 78
CODING: Words stricken are deletions; words underlined are additions.
hb1307-01-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 1307 2022
201 $750,000 or more is not eligible for coverage by the corporation
202 unless the structure has opening protections as required under
203 the Florida Building Code for a newly constructed res idential
204 structure in that area. A residential structure is deemed to
205 comply with this sub-subparagraph if it has shutters or opening
206 protections on all openings and if such opening protections
207 complied with the Florida Building Code at the time they were
208 installed.
209 b. Any major structure, as defined in s. 161.54(6)(a),
210 that is newly constructed, or rebuilt, repaired, restored, or
211 remodeled to increase the total square footage of finished area
212 by more than 25 percent, pursuant to a permit applied for after
213 July 1, 2015, is not eligible for coverage by the corporation if
214 the structure is seaward of the coastal construction control
215 line established pursuant to s. 161.053 or is within the Coastal
216 Barrier Resources System as designated by 16 U.S.C. ss. 3501 -
217 3510.
218 6. With respect to wind-only coverage for commercial lines
219 residential condominiums, effective July 1, 2014, a condominium
220 shall be deemed ineligible for coverage if 50 percent or more of
221 the units are rented more than eight times in a calendar year
222 for a rental agreement period of less than 30 days.
223 (b)1. All insurers authorized to write one or more subject
224 lines of business in this state are subject to assessment by the
225 corporation and, for the purposes of this subsection, are
Page 9 of 78
CODING: Words stricken are deletions; words underlined are additions.
hb1307-01-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 1307 2022
226 referred to collectively as "assessable insurers." Insurers
227 writing one or more subject lines of business in this state
228 pursuant to part VIII of chapter 626 are not assessable
229 insurers; however, insureds who procure one or more subject
230 lines of business in this state pursuant to part VIII of chapter
231 626 are subject to assessment by the corporation and are
232 referred to collectively as "assessable insureds." An insurer's
233 assessment liability begins on the first day of the calendar
234 year following the year in which the insurer was issued a
235 certificate of authority to transact insurance for subject lines
236 of business in this state and terminates 1 year after the end of
237 the first calendar year during which the insurer no longer holds
238 a certificate of authority to transact insurance for subject
239 lines of business in this state.
240 2.a. All revenues, assets, liabilities, losses, and
241 expenses of the corporation shall be divided into three separate
242 accounts as follows:
243 (I) A personal lines account for personal residential
244 policies issued by the corporation which provides comprehensive,
245 multiperil coverage on risks that are not located in areas
246 eligible for coverage by the Florida Windstorm Underwriting
247 Association as those areas were defined on January 1, 2002, and
248 for policies that do not provide coverage for the peril of wind
249 on risks that are located in such areas;
250 (II) A commercial lines account for commercial residential
Page 10 of 78
CODING: Words stricken are deletions; words underlined are additions.
hb1307-01-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 1307 2022
251 and commercial nonresidential policies issued by the corporation
252 which provides coverage for basic property perils o n risks that
253 are not located in areas eligible for coverage by the Florida
254 Windstorm Underwriting Association as those areas were defined
255 on January 1, 2002, and for policies that do not provide
256 coverage for the peril of wind on risks that are located in s uch
257 areas; and
258 (III) A coastal account for personal residential policies
259 and commercial residential and commercial nonresidential
260 property policies issued by the corporation which provides
261 coverage for the peril of wind on risks that are located in
262 areas eligible for coverage by the Florida Windstorm
263 Underwriting Association as those areas were defined on January
264 1, 2002. The corporation may offer policies that provide
265 multiperil coverage and shall offer policies that provide
266 coverage only for the peril of wind for risks located in areas
267 eligible for coverage in the coastal account. Effective July 1,
268 2014, the corporation shall cease offering new commercial
269 residential policies providing multiperil coverage and shall
270 instead continue to offer commercial residential wind-only
271 policies, and may offer commercial residential policies
272 excluding wind. The corporation may, however, continue to renew
273 a commercial residential multiperil policy on a building that is
274 insured by the corporation on June 30, 2014, under a multiperil
275 policy. In issuing multiperil coverage, the corporation may use
Page 11 of 78
CODING: Words stricken are deletions; words underlined are additions.
hb1307-01-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 1307 2022
276 its approved policy forms and rates for the personal lines
277 account. An applicant or insured who is eligible to purchase a
278 multiperil policy from the corporation may purchase a multiperil
279 policy from an authorized insurer without prejudice to the
280 applicant's or insured's eligibility to prospectively purchase a
281 policy that provides coverage only for the peril of wind from
282 the corporation. An applicant or insured who is eligible for a
283 corporation policy that provides coverage only for the peril of
284 wind may elect to purchase or retain such policy and also
285 purchase or retain coverage excluding wind from an authorized
286 insurer without prejudice to the applicant's or insured's
287 eligibility to prospectively purchase a policy that provides
288 multiperil coverage from the corporation. It is the goal of the
289 Legislature that there be an overall average savings of 10
290 percent or more for a policyholder who currently has a wind-only
291 policy with the corporation, and an ex-wind policy with a
292 voluntary insurer or the corporation, and who obtains a
293 multiperil policy from the corporation. It is the intent of the
294 Legislature that the offer of multiperil coverage in the coastal
295 account be made and implemented in a manner that does not
296 adversely affect the tax-exempt status of the corporation or
297 creditworthiness of or security for currently outstanding
298 financing obligations or credit facilities of the coastal
299 account, the personal lines account, or the commercial lines
300 account. The coastal account must also include quota share
Page 12 of 78
CODING: Words stricken are deletions; words underlined are additions.
hb1307-01-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 1307 2022
301 primary insurance under subparagraph (c)2. The area eligible for
302 coverage under the coastal account also includes the area within
303 Port Canaveral, which is bordered on the south by the City of
304 Cape Canaveral, bordered on the west by the Banana River, and
305 bordered on the north by Federal Government property.
306 b. The three separate accounts must be maintained as long
307 as financing obligations entered into by the Florida Windstorm
308 Underwriting Association or Residential Property and Casualty
309 Joint Underwriting Association are outstanding, in accordance
310 with the terms of the corresponding financing documents. If the
311 financing obligations are no longer outstanding, the corporation
312 may use a single account for all revenues, assets, liabilities,
313 losses, and expenses of the corporation. Consistent with this
314 subparagraph and prudent investment policies that minimize the
315 cost of carrying debt, the board shall exercise its best efforts
316 to retire existing debt or obtain the approval of necessary
317 parties to amend the terms of existing debt, so as to structure
318 the most efficient plan for consolidating the three separate
319 accounts into a single account.
320 c. Creditors of the Residential Property and Casualty
321 Joint Underwriting Association and the accounts specified in
322 sub-sub-subparagraphs a.(I) and (II) may have a claim against,
323 and recourse to, those accounts and no claim against, or
324 recourse to, the account referred to in sub-sub-subparagraph
325 a.(III). Creditors of the Florida Windstorm Underwriting
Page 13 of 78
CODING: Words stricken are deletions; words underlined are additions.
hb1307-01-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 1307 2022
326 Association have a claim against, and recourse to, the account
327 referred to in sub-sub-subparagraph a.(III) and no claim
328 against, or recourse to, the accounts referred to in sub -sub-
329 subparagraphs a.(I) and (II).
330 d. Revenues, assets, liabilities, losses, and expenses not
331 attributable to particular accounts shall be prorated among the
332 accounts.
333 e. The Legislature finds that the revenues of the
334 corporation are revenues that are necessary to meet the
335 requirements set forth in documents authorizing the issuance of
336 bonds under this subsection.
337 f. The income of the corporation may not inure to the
338 benefit of any private person.
339 3. With respect to a deficit in an account:
340 a. After accounting for the Citizens policyholder
341 surcharge imposed under sub-subparagraph i., if the remaining
342 projected deficit incurred in the coastal account in a
343 particular calendar year:
344 (I) Is not greater than 2 percent of the aggregate
345 statewide direct written premium for the subject lines o f
346 business for the prior calendar year, the entire deficit shall
347 be recovered through regular assessments of assessable insurers
348 under paragraph (q) and assessable insureds.
349 (II) Exceeds 2 percent of the aggregate statewide direct
350 written premium for the subject lines of business for the prior
Page 14 of 78
CODING: Words stricken are deletions; words underlined are additions.
hb1307-01-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 1307 2022
351 calendar year, the corporation shall levy regular assessments on
352 assessable insurers under paragraph (q) and on assessable
353 insureds in an amount equal to the greater of 2 percent of the
354 projected deficit or 2 percent of the aggregate statewide direct
355 written premium for the subject lines of business for the prior
356 calendar year. Any remaining projected deficit shall be
357 recovered through emergency assessments under sub-subparagraph
358 d.
359 b. Each assessable insurer's share of the amount being
360 assessed under sub-subparagraph a. must be in the proportion
361 that the assessable insurer's direct written premium for the
362 subject lines of business for the year preceding the assessment
363 bears to the aggregate statewide direct written premium for the
364 subject lines of business for that year. The assessment
365 percentage applicable to each assessable insured is the ratio of
366 the amount being assessed under sub-subparagraph a. to the
367 aggregate statewide direct written premium for the subject lines
368 of business for the prior year. Assessments levied by the
369 corporation on assessable insurers under sub-subparagraph a.
370 must be paid as required by the corporation's plan of operation
371 and paragraph (q). Assessments levied by the corporation on
372 assessable insureds under sub-subparagraph a. shall be collected
373 by the surplus lines agent at the time the surplus lines agent
374 collects the surplus lines tax required by s. 626.932, and paid
375 to the Florida Surplus Lines Service Office at the time the
Page 15 of 78
CODING: Words stricken are deletions; words underlined are additions.
hb1307-01-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 1307 2022
376 surplus lines agent pays the surplus lines tax to that office.
377 Upon receipt of regular assessments from surplus lines agents,
378 the Florida Surplus Lines Service Office shall transfer the
379 assessments directly to the corporation as determined by the
380 corporation.
381 c. After accounting for the Citizens policyholder
382 surcharge imposed under sub-subparagraph i., the remaining
383 projected deficits in the personal lines account and in the
384 commercial lines account in a particular calendar year shall be
385 recovered through emergency assessments under sub-subparagraph
386 d.
387 d. Upon a determination by the board of governors that a
388 projected deficit in an account exceeds the amount that is
389 expected to be recovered through regular assessments under sub-
390 subparagraph a., plus the amount that is expected to be
391 recovered through surcharges under sub-subparagraph i., the
392 board, after verification by the office, shall levy emergency
393 assessments for as many years as necessary to cover the
394 deficits, to be collected by assessable insurers and the
395 corporation and collected from assessable insureds upon issuance
396 or renewal of policies for subject lines of business, excluding
397 National Flood Insurance policies. The amount collected in a
398 particular year must be a uniform percentage of that year's
399 direct written premium for subject lines of business and all
400 accounts of the corporation, excluding National Flood Insurance
Page 16 of 78
CODING: Words stricken are deletions; words underlined are additions.
hb1307-01-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 1307 2022
401 Program policy premiums, as annually determined by the board and
402 verified by the office. The office shall verify the arithmetic
403 calculations involved in the board's determination within 30
404 days after receipt of the information on which the determination
405 was based. The office shall notify assessable insurers and the
406 Florida Surplus Lines Service Office of the date on which
407 assessable insurers shall begin to collect and assessable
408 insureds shall begin to pay such assessment. The date must be at
409 least 90 days after the date the corporation levies emergency
410 assessments pursuant to this sub-subparagraph. Notwithstanding
411 any other provision of law, the corporation and each assessable
412 insurer that writes subject lines of business shall collect
413 emergency assessments from its policyholders without such
414 obligation being affected by any credit, limitation, exemption,
415 or deferment. Emergency assessments levied by the corporation on
416 assessable insureds shall be collected by the surplus lines
417 agent at the time the surplus lines agent collects the surplus
418 lines tax required by s. 626.932 and paid to the Florida Surplus
419 Lines Service Office at the time the surplus lines agent pays
420 the surplus lines tax to that office. The emergency assessments
421 collected shall be transferred directly to the corporation on a
422 periodic basis as determined by the corporation and held by the
423 corporation solely in the applicable account. The aggregate
424 amount of emergency assessments levied for an account in any
425 calendar year may be less than but may not exceed the greater of
Page 17 of 78
CODING: Words stricken are deletions; words underlined are additions.
hb1307-01-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 1307 2022
426 10 percent of the amount needed to cover the deficit, plus
427 interest, fees, commissions, required reserves, and other costs
428 associated with financing the original deficit, or 10 percent of
429 the aggregate statewide direct written premium for subject lines
430 of business and all accounts of the corporation for the prior
431 year, plus interest, fees, commissions, required reserves, and
432 other costs associated with financing the deficit.
433 e. The corporation may pledge the proceeds of assessments,
434 projected recoveries from the Florida Hurricane Catastrophe
435 Fund, other insurance and reinsurance recoverables, policyholder
436 surcharges and other surcharges, and other funds available to
437 the corporation as the source of revenue for and to secure bonds
438 issued under paragraph (q), bonds or other indebtedness issued
439 under subparagraph (c)3., or lines of credit or other financing
440 mechanisms issued or created under this subsection, or to retire
441 any other debt incurred as a result of deficits or events giving
442 rise to deficits, or in any other way that the board determines
443 will efficiently recover such deficits. The purpose of the lines
444 of credit or other financing mechanisms is to provide additional
445 resources to assist the corporation in covering claims and
446 expenses attributable to a catastrophe. As used in this
447 subsection, the term "assessments" includes regular assessments
448 under sub-subparagraph a. or subparagraph (q)1. and emergency
449 assessments under sub-subparagraph d. Emergency assessments
450 collected under sub-subparagraph d. are not part of an insurer's
Page 18 of 78
CODING: Words stricken are deletions; words underlined are additions.
hb1307-01-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 1307 2022
451 rates, are not premium, and are not subject to premium tax,
452 fees, or commissions; however, failure to pay the emergency
453 assessment shall be treated as failure to pay premium. The
454 emergency assessments shall continue as long as any bonds issued
455 or other indebtedness incurred with respect to a deficit for
456 which the assessment was imposed remain outstanding, unless
457 adequate provision has been made for the payment of such bonds
458 or other indebtedness pursuant to the documents governing such
459 bonds or indebtedness.
460 f. As used in this subsection for purposes of any deficit
461 incurred on or after January 25, 2007, the term "subject lines
462 of business" means insurance written by assessable insurers or
463 procured by assessable insureds for all property and casualty
464 lines of business in this state, but not including workers'
465 compensation or medical malpractice. As used in this sub-
466 subparagraph, the term "property and casualty lines of business"
467 includes all lines of business identified on Form 2, Exhibit of
468 Premiums and Losses, in the annual statement required of
469 authorized insurers under s. 624.424 and any rule adopted under
470 this section, except for those lines identified as accident and
471 health insurance and except for policies written under the
472 National Flood Insurance Program or the Federal Crop Insurance
473 Program. For purposes of this sub-subparagraph, the term
474 "workers' compensation" includes both workers' compensation
475 insurance and excess workers' compensation insurance.
Page 19 of 78
CODING: Words stricken are deletions; words underlined are additions.
hb1307-01-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 1307 2022
476 g. The Florida Surplus Lines Service Office shall
477 determine annually the aggregate statewide written premium in
478 subject lines of business procured by assessable insureds and
479 report that information to the corporation in a form and at a
480 time the corporation specifies to ensure that the corporation
481 can meet the requirements of this subsection and the
482 corporation's financing obligations.
483 h. The Florida Surplus Lines Service Office shall verify
484 the proper application by surplus lines agents of assessment
485 percentages for regular assessments and emergency assessments
486 levied under this subparagraph on assessable insureds and assist
487 the corporation in ensuring the accurate, timely collection and
488 payment of assessments by surplus lines agents as required by
489 the corporation.
490 i. Upon determination by the board of governors that an
491 account has a projected deficit, the board shall levy a Citizens
492 policyholder surcharge against all policyholders of the
493 corporation.
494 (I) The surcharge must shall be levied as a uniform
495 percentage of the premium for the policy of up to 15 percent of
496 such premium, and must which funds shall be used to offset the
497 deficit, as follows:
498 (A) If the total number of policyholders of the
499 corporation is less than 1 million, a surcharge of 15 percent of
500 the premium.
Page 20 of 78
CODING: Words stricken are deletions; words underlined are additions.
hb1307-01-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 1307 2022
501 (B) If the total number of policyholders of the
502 corporation is at least 1 million but less than 1.5 million, a
503 surcharge of 20 percent of the premium.
504 (C) If the total number of policyholders of the
505 corporation is at least 1.5 million, a surcharge of 25 percent
506 of the premium.
507 (II) The surcharge is payable upon cancellation or
508 termination of the policy, upon renewal of the policy, or upon
509 issuance of a new policy by the corporation within the first 12
510 months after the date of the levy or the period of time
511 necessary to fully collect the surcharge amount.
512 (III) The corporation may not levy any regular assessments
513 under paragraph (q) pursuant to sub-subparagraph a. or sub-
514 subparagraph b. with respect to a particular year's deficit
515 until the corporation has first levied the full amount of the
516 surcharge authorized by this sub-subparagraph.
517 (IV) The surcharge is not considered premium and is not
518 subject to commissions, fees, or premium taxes. However, failure
519 to pay the surcharge shall be treated as failure to pay premium.
520 j. If the amount of any assessments or surcharges
521 collected from corporation policyholders, assessable insurers or
522 their policyholders, or assessable insureds exceeds the amount
523 of the deficits, such excess amounts shall be remitted to and
524 retained by the corporation in a reserve to be used by the
525 corporation, as determined by the board of governors and
Page 21 of 78
CODING: Words stricken are deletions; words underlined are additions.
hb1307-01-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 1307 2022
526 approved by the office, to pay claims or reduce any past,
527 present, or future plan-year deficits or to reduce outstanding
528 debt.
529 (c) The corporation's plan of operation:
530 1. Must provide for adoption of residential property and
531 casualty insurance policy forms and commercial residential and
532 nonresidential property insurance forms, which must be approved
533 by the office before use. The corporation shall adopt the
534 following policy forms:
535 a. Standard personal lines policy forms that are
536 comprehensive multiperil policies providing full coverage of a
537 residential property equivalent to the coverage provided in the
538 private insurance market under an HO-3, HO-4, or HO-6 policy.
539 b. Basic personal lines policy forms that are policies
540 similar to an HO-8 policy or a dwelling fire policy that provide
541 coverage meeting the requirements of the secondary mortgage
542 market, but which is more limited than the coverage under a
543 standard policy.
544 c. Commercial lines residential and nonresidential policy
545 forms that are generally similar to the basic perils of full
546 coverage obtainable for commercial residential structures and
547 commercial nonresidential structures in the admitted voluntary
548 market.
549 d. Personal lines and commercial lines residential
550 property insurance forms that cover the peril of wind only. The
Page 22 of 78
CODING: Words stricken are deletions; words underlined are additions.
hb1307-01-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 1307 2022
551 forms are applicable only to residential properties located in
552 areas eligible for coverage under the coastal account referred
553 to in sub-subparagraph (b)2.a.
554 e. Commercial lines nonresidential property insurance
555 forms that cover the peril of wind only. The forms are
556 applicable only to nonresidential properties located in areas
557 eligible for coverage under the coastal account referred to in
558 sub-subparagraph (b)2.a.
559 f. The corporation may adopt variations of the policy
560 forms listed in sub-subparagraphs a.-e. which contain more
561 restrictive coverage.
562 g. Effective January 1, 2013, the corporation shall offer
563 a basic personal lines policy similar to an HO-8 policy with
564 dwelling repair based on common construction materials and
565 methods.
566 2. Must provide that the corporation adopt a program in
567 which the corporation and authorized insurers enter into quota
568 share primary insurance agreements for hurricane coverage, as
569 defined in s. 627.4025(2)(a), for eligible risks, and adopt
570 property insurance forms for eligible risks which cover the
571 peril of wind only.
572 a. As used in this subsection, the term:
573 (II) "Primary residence" means the residential dwelling
574 that the insured has represented as homestead on an insurance
575 application or otherwise to the corporation which is owned by a
Page 23 of 78
CODING: Words stricken are deletions; words underlined are additions.
hb1307-01-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 1307 2022
576 citizen of the United States or a lawful permanent resident.
577 (III)(I) "Quota share primary insurance" means an
578 arrangement in which the primary hurricane coverage of an
579 eligible risk is provided in specified percentages by the
580 corporation and an authorized insurer. The corporation and
581 authorized insurer are each solely responsible for a specified
582 percentage of hurricane coverage of an eligible risk as set
583 forth in a quota share primary insurance agreement betw een the
584 corporation and an authorized insurer and the insurance
585 contract. The responsibility of the corporation or authorized
586 insurer to pay its specified percentage of hurricane losses of
587 an eligible risk, as set forth in the agreement, may not be
588 altered by the inability of the other party to pay its specified
589 percentage of losses. Eligible risks that are provided hurricane
590 coverage through a quota share primary insurance arrangement
591 must be provided policy forms that set forth the obligations of
592 the corporation and authorized insurer under the arrangement,
593 clearly specify the percentages of quota share primary insurance
594 provided by the corporation and authorized insurer, and
595 conspicuously and clearly state that the authorized insurer and
596 the corporation may not be held responsible beyond their
597 specified percentage of coverage of hurricane losses.
598 (I)(II) "Eligible risks" means personal lines residential
599 and commercial lines residential risks that meet the
600 underwriting criteria of the corporation and are located in
Page 24 of 78
CODING: Words stricken are deletions; words underlined are additions.
hb1307-01-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 1307 2022
601 areas that were eligible for coverage by the Florida Windstorm
602 Underwriting Association on January 1, 2002.
603 b. The corporation may enter into quota share primary
604 insurance agreements with authorized insurers at corporation
605 coverage levels of 90 percent and 50 percent.
606 c. If the corporation determines that additional coverage
607 levels are necessary to maximize participation in quota share
608 primary insurance agreements by authorized insurers, the
609 corporation may establish additional coverage level s. However,
610 the corporation's quota share primary insurance coverage level
611 may not exceed 90 percent.
612 d. Any quota share primary insurance agreement entered
613 into between an authorized insurer and the corporation must
614 provide for a uniform specified percentage of coverage of
615 hurricane losses, by county or territory as set forth by the
616 corporation board, for all eligible risks of the authorized
617 insurer covered under the agreement.
618 e. Any quota share primary insurance agreement entered
619 into between an authorized insurer and the corporation is
620 subject to review and approval by the office. However, such
621 agreement shall be authorized only as to insurance contracts
622 entered into between an authorized insurer and an insured who is
623 already insured by the corporation for wind coverage.
624 f. For all eligible risks covered under quota share
625 primary insurance agreements, the exposure and coverage levels
Page 25 of 78
CODING: Words stricken are deletions; words underlined are additions.
hb1307-01-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 1307 2022
626 for both the corporation and authorized insurers shall be
627 reported by the corporation to the Florida Hurricane Ca tastrophe
628 Fund. For all policies of eligible risks covered under such
629 agreements, the corporation and the authorized insurer must
630 maintain complete and accurate records for the purpose of
631 exposure and loss reimbursement audits as required by fund
632 rules. The corporation and the authorized insurer shall each
633 maintain duplicate copies of policy declaration pages and
634 supporting claims documents.
635 g. The corporation board shall establish in its plan of
636 operation standards for quota share agreements which ensure that
637 there is no discriminatory application among insurers as to the
638 terms of the agreements, pricing of the agreements, incentive
639 provisions if any, and consideration paid for servicing policies
640 or adjusting claims.
641 h. The quota share primary insurance agreement between the
642 corporation and an authorized insurer must set forth the
643 specific terms under which coverage is provided, including, but
644 not limited to, the sale and servicing of policies issued under
645 the agreement by the insurance agent of the authorized insurer
646 producing the business, the reporting of information concerning
647 eligible risks, the payment of premium to the corporation, and
648 arrangements for the adjustment and payment of hurricane claims
649 incurred on eligible risks by the claims adjuster and personnel
650 of the authorized insurer. Entering into a quota sharing
Page 26 of 78
CODING: Words stricken are deletions; words underlined are additions.
hb1307-01-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 1307 2022
651 insurance agreement between the corporation and an authorized
652 insurer is voluntary and at the discretion of the authorized
653 insurer.
654 3. May provide that the corporation may employ or
655 otherwise contract with individuals or other entities to provide
656 administrative or professional services that may be appropriate
657 to effectuate the plan. The corporation may borrow funds by
658 issuing bonds or by incurring other indebtedness, and shall have
659 other powers reasonably necessary to effectuate the requirements
660 of this subsection, including, without limitation, the power to
661 issue bonds and incur other indebtedness in order to refinance
662 outstanding bonds or other indebtedness. The corporation may
663 seek judicial validation of its bonds or other indebtedness
664 under chapter 75. The corporation may issue bonds or incur other
665 indebtedness, or have bonds issued on its behalf by a unit of
666 local government pursuant to subparagraph (q)2. in the absence
667 of a hurricane or other weather-related event, upon a
668 determination by the corporation, subject to approval by the
669 office, that such action would enable it to efficiently meet the
670 financial obligations of the corporation and that such
671 financings are reasonably necessary to effectuate the
672 requirements of this subsection. The corporation may take all
673 actions needed to facilitate tax-free status for such bonds or
674 indebtedness, including formation of trusts or other affiliated
675 entities. The corporation may pledge assessments, projected
Page 27 of 78
CODING: Words stricken are deletions; words underlined are additions.
hb1307-01-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 1307 2022
676 recoveries from the Florida Hurricane Catastrophe Fund, other
677 reinsurance recoverables, policyholder surcharges and other
678 surcharges, and other funds available to the corporation as
679 security for bonds or other indebtedness. In recognition of s.
680 10, Art. I of the State Constitution, prohibiting the impairment
681 of obligations of contracts, it is the intent of the Legislature
682 that no action be taken whose purpose is to impair any bond
683 indenture or financing agreement or any revenue source committe d
684 by contract to such bond or other indebtedness.
685 4. Must require that the corporation operate subject to
686 the supervision and approval of a board of governors consisting
687 of nine individuals who are residents of this state and who are
688 from different geographical areas of this the state, one of whom
689 is appointed by the Governor and serves solely to advocate on
690 behalf of the consumer. The appointment of a consumer
691 representative by the Governor is deemed to be within the scope
692 of the exemption provided in s. 112.313(7)(b) and is in addition
693 to the appointments authorized under sub-subparagraph a.
694 a. The Governor, the Chief Financial Officer, the
695 President of the Senate, and the Speaker of the House of
696 Representatives shall each appoint two members of the bo ard. At
697 least one of the two members appointed by each appointing
698 officer must have demonstrated expertise in insurance and be
699 deemed to be within the scope of the exemption provided in s.
700 112.313(7)(b) at the time of appointment or reappointment. The
Page 28 of 78
CODING: Words stricken are deletions; words underlined are additions.
hb1307-01-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 1307 2022
701 Chief Financial Officer shall designate one of the appointees as
702 chair. All board members serve at the pleasure of the appointing
703 officer. All members of the board are subject to removal at will
704 by the officers who appointed them. All board members, including
705 the chair, must be appointed to serve for 3-year terms beginning
706 annually on a date designated by the plan. However, for the
707 first term beginning on or after July 1, 2009, each appointing
708 officer shall appoint one member of the board for a 2 -year term
709 and one member for a 3-year term. A board vacancy shall be
710 filled for the unexpired term by the appointing officer. The
711 Chief Financial Officer shall appoint a technical advisory group
712 to provide information and advice to the board in connection
713 with the board's duties under this subsection. The executive
714 director and senior managers of the corporation shall be engaged
715 by the board and serve at the pleasure of the board. Any
716 executive director appointed on or after July 1, 2006, is
717 subject to confirmation by the Senate. The executive director is
718 responsible for employing other staff as the corporation may
719 require, subject to review and concurrence by the board. As used
720 in this sub-subparagraph, the term "demonstrated expertise in
721 insurance" means at least 10 years of responsible experience:
722 (I) In property and casualty insurance as a full-time
723 employee, an officer or owner of a licensed insurance agency, or
724 an insurer writing residential property coverage; or
725 (II) As an insurance regulator or an executive or officer
Page 29 of 78
CODING: Words stricken are deletions; words underlined are additions.
hb1307-01-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 1307 2022
726 of an insurance trade association.
727 b. The board shall create a Market Accountability Advisory
728 Committee to assist the corporation in developing awareness of
729 its rates and its customer and agent service levels in
730 relationship to the voluntary market insurers writing similar
731 coverage.
732 (I) The members of the advisory committee consist of the
733 following 11 persons, one of whom must be elected chair by the
734 members of the committee: four representatives, one appointed by
735 the Florida Association of Insurance Agents, one by the Florida
736 Association of Insurance and Financial Advisors, one by the
737 Professional Insurance Agents of Florida, and one by the Latin
738 American Association of Insurance Agencies; three
739 representatives appointed by the insurers with the three highest
740 voluntary market share of residential property insurance
741 business in this the state; one representative from the Office
742 of Insurance Regulation; one consumer appointed by the board who
743 is insured by the corporation at the time of appointment to the
744 committee; one representative appointed by the Florida
745 Association of Realtors; and one representative appointed by the
746 Florida Bankers Association. All members shall be appointed to
747 3-year terms and may serve for consecutive terms.
748 (II) The committee shall report to the corporation at each
749 board meeting on insurance market issues that which may include
750 rates and rate competition with the voluntary market; service,
Page 30 of 78
CODING: Words stricken are deletions; words underlined are additions.
hb1307-01-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 1307 2022
751 including policy issuance, claims processing, and general
752 responsiveness to policyholders, applicants, and agents; and
753 matters relating to depopulation.
754 5. Must provide a procedure for determining the
755 eligibility of a risk for coverage, as follows:
756 a. Subject to s. 627.3517, with respect to personal lines
757 residential risks, if the risk is offered coverage from an
758 authorized insurer at the insurer's approved rate under a
759 standard policy including wind coverage or, if consistent with
760 the insurer's underwriting rules as filed with the office, a
761 basic policy including wind coverage, for a new application to
762 the corporation for coverage, the risk is not eligible for any
763 policy issued by the corporation unless the premium for coverage
764 from the authorized insurer is more than 20 percent greater than
765 the premium for comparable coverage from the corporation.
766 (I) Whenever an offer of coverage for a personal lines
767 residential risk is received for a policyholder of the
768 corporation at renewal from an authorized insurer, if the offer
769 is equal to or less than the corporation's renewal premium for
770 comparable coverage, the risk is not eligible for coverage with
771 the corporation unless the premium for coverage from the
772 authorized insurer is more than the following percent greater
773 than the renewal premium for comparable coverage from the
774 corporation:
775 (A) Five percent for policies that renew during 2023.
Page 31 of 78
CODING: Words stricken are deletions; words underlined are additions.
hb1307-01-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 1307 2022
776 (B) Ten percent for policies that renew during 2024.
777 (C) Fifteen percent for policies that renew during 2025.
778 (D) Twenty percent for polices that renew during 2026 and
779 during all subsequent years.
780
781 If the risk is not able to obtain such offers offer, the risk is
782 eligible for a standard policy including wind coverage or a
783 basic policy including wind coverage issued by the corporation;
784 however, if the risk could not be insured under a standard
785 policy including wind coverage regardless of market conditions,
786 the risk is eligible for a basic policy including wind coverage
787 unless rejected under subparagraph 8. However, a policyholder
788 removed from the corporation through an assumption agreement
789 remains eligible for coverage from the corporation until the end
790 of the assumption period. The corporation shall determine the
791 type of policy to be provided on the basis of objective
792 standards specified in the underwriting manual and based on
793 generally accepted underwriting practices. A policyholder
794 removed from the corporation through an assumption agreement
795 does not remain eligible for coverage from the corporation.
796 However, any policy removed from the corporation through an
797 assumption agreement may remain on the corporation's policy
798 forms through the end of the assumption period so that the
799 corporation may continue to provide service to the policyholder
800 for the claims that are payable by the assuming insurer.
Page 32 of 78
CODING: Words stricken are deletions; words underlined are additions.
hb1307-01-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 1307 2022
801 (II)(I) If the risk accepts an offer of coverage through
802 the market assistance plan or through a mechanism established by
803 the corporation other than a plan established by s. 627.3518,
804 before a policy is issued to the risk by the corporation or
805 during the first 30 days of coverage by the corporation, and the
806 producing agent who submitted the application to the plan or to
807 the corporation is not currently appointed by the insurer, the
808 insurer shall:
809 (A) Pay to the producing agent of record of the policy for
810 the first year, an amount that is the greater of the insurer's
811 usual and customary commission for the type of policy written or
812 a fee equal to the usual and customary commission of the
813 corporation; or
814 (B) Offer to allow the producing agent of record of the
815 policy to continue servicing the policy for at least 1 year and
816 offer to pay the agent the greater of the insurer's or the
817 corporation's usual and customary commission for the type of
818 policy written.
819
820 If the producing agent is unwilling or unable to accept
821 appointment, the new insurer shall pay the agent in a ccordance
822 with sub-sub-sub-subparagraph (A).
823 (III)(II) If the corporation enters into a contractual
824 agreement for a take-out plan, the producing agent of record of
825 the corporation policy is entitled to retain any unearned
Page 33 of 78
CODING: Words stricken are deletions; words underlined are additions.
hb1307-01-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 1307 2022
826 commission on the policy, and the insurer shall:
827 (A) Pay to the producing agent of record, for the first
828 year, an amount that is the greater of the insurer's usual and
829 customary commission for the type of policy written or a fee
830 equal to the usual and customary commission of the corporation;
831 or
832 (B) Offer to allow the producing agent of record to
833 continue servicing the policy for at least 1 year and offer to
834 pay the agent the greater of the insurer's or the corporation's
835 usual and customary commission for the type of policy written.
836
837 If the producing agent is unwilling or unable to accept
838 appointment, the new insurer shall pay the agent in accordance
839 with sub-sub-sub-subparagraph (A).
840 b. With respect to commercial lines residential risks, for
841 a new application to the corporation for coverage, if the risk
842 is offered coverage under a policy including wind coverage from
843 an authorized insurer at its approved rate, the risk is not
844 eligible for a policy issued by the corporation unless the
845 premium for coverage from the authorized insurer is more than 20
846 15 percent greater than the premium for comparable coverage from
847 the corporation.
848 (I) Whenever an offer of coverage for a commercial lines
849 residential risk is received for a policyholder of the
850 corporation at renewal from an authorized insurer, if the offer
Page 34 of 78
CODING: Words stricken are deletions; words underlined are additions.
hb1307-01-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 1307 2022
851 is equal to or less than the corporation's renewal premium for
852 comparable coverage, the risk is not eligible for coverage with
853 the corporation unless the premium for coverage from the
854 authorized insurer is more than the following percent greater
855 than the renewal premium for comparable coverage from the
856 corporation:
857 (A) Five percent for policies that renew during 2023.
858 (B) Ten percent for policies that renew during 2024.
859 (C) Fifteen percent for policies that renew during 2025.
860 (D) Twenty percent for policies that renew during 2026 and
861 during all subsequent years.
862
863 If the risk is not able to obtain any such offers offer, the
864 risk is eligible for a policy including wind coverage issued by
865 the corporation. However, A policyholder removed from the
866 corporation through an assumption agreement does not remain
867 remains eligible for coverage from the corporation until the end
868 of the assumption period. However, any policy removed from the
869 corporation through an assumption agreement may remain on the
870 corporation's policy forms through the end of the assumption
871 period so that the corporation may continue to provide service
872 to the policyholder for the claims that are payable by the
873 assuming insurer.
874 (II)(I) If the risk accepts an offer of coverage through
875 the market assistance plan or through a mechanism established by
Page 35 of 78
CODING: Words stricken are deletions; words underlined are additions.
hb1307-01-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 1307 2022
876 the corporation other than a plan established by s. 627.3518,
877 before a policy is issued to the risk by the corporation or
878 during the first 30 days of coverage by the corporation, and the
879 producing agent who submitted the application to the plan or the
880 corporation is not currently appointed by the insurer, the
881 insurer shall:
882 (A) Pay to the producing agent of record of the policy,
883 for the first year, an amount that is the greater of the
884 insurer's usual and customary commission for the type of policy
885 written or a fee equal to the usual and customary commission of
886 the corporation; or
887 (B) Offer to allow the producing agent of record of the
888 policy to continue servicing the policy for at least 1 year and
889 offer to pay the agent the greater of the insurer's or the
890 corporation's usual and customary commission for the type of
891 policy written.
892
893 If the producing agent is unwilling or unable to accept
894 appointment, the new insurer shall pay the agent in accordance
895 with sub-sub-sub-subparagraph (A).
896 (III)(II) If the corporation enters into a contractual
897 agreement for a take-out plan, the producing agent of record of
898 the corporation policy is entitled to retain any unearned
899 commission on the policy, and the insurer shall:
900 (A) Pay to the producing agent of record, for the first
Page 36 of 78
CODING: Words stricken are deletions; words underlined are additions.
hb1307-01-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 1307 2022
901 year, an amount that is the greater of the insurer's usual and
902 customary commission for the type of policy written or a fee
903 equal to the usual and customary commission of the corporation;
904 or
905 (B) Offer to allow the producing agent of record to
906 continue servicing the policy for at least 1 year and offer to
907 pay the agent the greater of the insurer's or the corporation's
908 usual and customary commission for the type of policy writ ten.
909
910 If the producing agent is unwilling or unable to accept
911 appointment, the new insurer shall pay the agent in accordance
912 with sub-sub-sub-subparagraph (A).
913 c. For purposes of determining comparable coverage under
914 sub-subparagraphs a. and b., the comparison must be based on
915 those forms and coverages that are reasonably comparable. The
916 corporation may rely on a determination of comparable coverage
917 and premium made by the producing agent who submits the
918 application to the corporation, made in the agent's capacity as
919 the corporation's agent. A comparison may be made solely of the
920 premium with respect to the main building or structure only on
921 the following basis: the same coverage A or other building
922 limits; the same percentage hurricane deductible that applies on
923 an annual basis or that applies to each hurricane for commercial
924 residential property; the same percentage of ordinance and law
925 coverage, if the same limit is offered by both the corporation
Page 37 of 78
CODING: Words stricken are deletions; words underlined are additions.
hb1307-01-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 1307 2022
926 and the authorized insurer; the same mitigation credits, to the
927 extent the same types of credits are offered both by the
928 corporation and the authorized insurer; the same method for loss
929 payment, such as replacement cost or actual cash value, if the
930 same method is offered both by the corporation and the
931 authorized insurer in accordance with underwriting rules; and
932 any other form or coverage that is reasonably comparable as
933 determined by the board. If an application is submitted to the
934 corporation for wind-only coverage in the coastal account, the
935 premium for the corporation's wind-only policy plus the premium
936 for the ex-wind policy that is offered by an authorized insurer
937 to the applicant must be compared to the premium for multiperil
938 coverage offered by an authorized insurer, subject to the
939 standards for comparison specified in this subparagraph. If the
940 corporation or the applicant requests from the authorized
941 insurer a breakdown of the premium of the offer by types of
942 coverage so that a comparison may be made by the corporation or
943 its agent and the authorized insurer refuses or is unable to
944 provide such information, the corporation may treat the offer as
945 not being an offer of coverage from an authorized insurer at the
946 insurer's approved rate.
947 6. Must include rules for classifications of risks and
948 rates.
949 7. Must provide that if premium and investment income for
950 an account attributable to a particular calendar year are in
Page 38 of 78
CODING: Words stricken are deletions; words underlined are additions.
hb1307-01-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 1307 2022
951 excess of projected losses and expenses for the account
952 attributable to that year, such excess shall be held in surplus
953 in the account. Such surplus must be available to defray
954 deficits in that account as to future years and used for that
955 purpose before assessing assessable insurers and assessable
956 insureds as to any calendar year.
957 8. Must provide objective criteria and procedures to be
958 uniformly applied to all applicants in determining whether an
959 individual risk is so hazardous as to be uninsurable. In making
960 this determination and in establishing the criteria and
961 procedures, the following must be considered:
962 a. Whether the likelihood of a loss for the individual
963 risk is substantially higher than for other risks of the same
964 class; and
965 b. Whether the uncertainty associated with the individual
966 risk is such that an appropriate premium cannot be determined.
967
968 The acceptance or rejection of a risk by the corporation must
969 shall be construed as the private placement of insurance, and
970 the provisions of chapter 120 does do not apply.
971 9. Must provide that the corporation make its best efforts
972 to procure catastrophe reinsurance at reasonable rates, to co ver
973 its projected 100-year probable maximum loss as determined by
974 the board of governors. If catastrophe reinsurance is not
975 available at reasonable rates, the corporation need not purchase
Page 39 of 78
CODING: Words stricken are deletions; words underlined are additions.
hb1307-01-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 1307 2022
976 it, but the corporation shall include the costs of reinsurance
977 to cover its projected 100-year probable maximum loss in its
978 rate calculations even if it does not purchase catastrophe
979 reinsurance.
980 10. The policies issued by the corporation Must provide
981 that if the corporation or the market assistance plan obtains an
982 offer from an authorized insurer to cover the risk at its
983 approved rates, the risk is no longer eligible for renewal
984 through the corporation, except as otherwise provided in thi s
985 subsection.
986 11. Corporation policies and applications Must include a
987 notice that the corporation policy could, under this section, be
988 replaced with a policy issued by an authorized insurer which
989 does not provide coverage identical to the coverage provided by
990 the corporation. The notice must also specify that acceptance of
991 corporation coverage creates a conclusive presumption that the
992 applicant or policyholder is aware of this potential.
993 12. May establish, subject to approval by the office,
994 different eligibility requirements and operational procedures
995 for any line or type of coverage for any specified county or
996 area if the board determines that such changes are justified due
997 to the voluntary market being sufficiently stable and
998 competitive in such area or for such line or type of coverage
999 and that consumers who, in good faith, are unable to obtain
1000 insurance through the voluntary market through ordinary methods
Page 40 of 78
CODING: Words stricken are deletions; words underlined are additions.
hb1307-01-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 1307 2022
1001 continue to have access to coverage from the corporation. If
1002 coverage is sought in connection with a real property transfer,
1003 the requirements and procedures may not provide an effective
1004 date of coverage later than the date of the closing of the
1005 transfer as established by the transferor, the transferee, and,
1006 if applicable, the lender.
1007 13. Must provide that, with respect to the coastal
1008 account, any assessable insurer with a surplus as to
1009 policyholders of $25 million or less writing 25 percent or more
1010 of its total countrywide property insurance premiums in this
1011 state may petition the office, within the first 90 days of each
1012 calendar year, to qualify as a limited apportionment company. A
1013 regular assessment levied by the corporation on a limited
1014 apportionment company for a deficit incurred by the corporation
1015 for the coastal account may be paid to the corporation on a
1016 monthly basis as the assessments are collected by the limited
1017 apportionment company from its insureds, but a limited
1018 apportionment company must begin collecting the regular
1019 assessments not later than 90 days after the regular assessments
1020 are levied by the corporation, and the regular assessments must
1021 be paid in full within 15 months after being levied by the
1022 corporation. A limited apportionment company shall collect from
1023 its policyholders any emergency assessment imposed under sub -
1024 subparagraph (b)3.d. The plan must provide that, if the office
1025 determines that any regular assessment will result in an
Page 41 of 78
CODING: Words stricken are deletions; words underlined are additions.
hb1307-01-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 1307 2022
1026 impairment of the surplus of a limited apportionment company,
1027 the office may direct that all or part of such assessment be
1028 deferred as provided in subparagraph (q)4. However, an emergency
1029 assessment to be collected from policyholders under sub -
1030 subparagraph (b)3.d. may not be limited or deferred.
1031 14. Must provide that the corporation appoint as its
1032 licensed agents only those agents who throughout such
1033 appointments also hold an appointment as defined in s. 626.015
1034 by an insurer who is authorized to write and is actually writing
1035 or renewing personal lines residential property coverage,
1036 commercial residential property coverage, or commercial
1037 nonresidential property coverage within this the state.
1038 15. Must provide a premium payment plan option to its
1039 policyholders which, at a minimum, allows for quarterly and
1040 semiannual payment of premiums. A monthly payment plan may, but
1041 is not required to, be offered.
1042 16. Must limit coverage on mobile homes or manufactured
1043 homes built before 1994 to actual cash value of the dwelling
1044 rather than replacement costs of the dwelling.
1045 17. Must provide coverage for manufactured or mobile home
1046 dwellings. Such coverage must also include the following
1047 attached structures:
1048 a. Screened enclosures that are aluminum framed or
1049 screened enclosures that are not covered by the same or
1050 substantially the same materials as those of the primary
Page 42 of 78
CODING: Words stricken are deletions; words underlined are additions.
hb1307-01-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 1307 2022
1051 dwelling;
1052 b. Carports that are aluminum or carports that are not
1053 covered by the same or substantially the same materials as those
1054 of the primary dwelling; and
1055 c. Patios that have a roof covering that is constructed of
1056 materials that are not the same or substantially the same
1057 materials as those of the primary dwelling.
1058
1059 The corporation shall make available a policy for mobile homes
1060 or manufactured homes for a minimum insured value of at least
1061 $3,000.
1062 18. May provide such limits of coverage as the board
1063 determines, consistent with the requirements of this subsection.
1064 19. May require commercial property to meet specified
1065 hurricane mitigation construction features as a condition of
1066 eligibility for coverage.
1067 20. Must provide that new or renewal policies issued by
1068 the corporation on or after January 1, 2012, which cover
1069 sinkhole loss do not include coverage for any loss to
1070 appurtenant structures, driveways, sidewalks, decks, or patios
1071 that are directly or indirectly caused by sinkhole activity. The
1072 corporation shall exclude such coverage using a notice of
1073 coverage change, which may be included with the policy renewal,
1074 and not by issuance of a notice of nonrenewal of the excluded
1075 coverage upon renewal of the current policy.
Page 43 of 78
CODING: Words stricken are deletions; words underlined are additions.
hb1307-01-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 1307 2022
1076 21. As of January 1, 2012, must require that the agent
1077 obtain from an applicant for coverage from the corporation an
1078 acknowledgment signed by the applicant, which includes, at a
1079 minimum, the following statement:
1080 ACKNOWLEDGMENT OF POTENTIAL SURCHARGE
1081 AND ASSESSMENT LIABILITY:
1082 1. AS A POLICYHOLDER OF CITIZENS PROPERTY INSURANCE
1083 CORPORATION, I UNDERSTAND THAT IF THE CORPORATION SUSTAINS A
1084 DEFICIT AS A RESULT OF HURRICANE LOSSES OR FOR ANY OTHER REASON,
1085 MY POLICY COULD BE SUBJECT TO SURCHARGES, WHICH WILL BE DUE AND
1086 PAYABLE UPON RENEWAL, CANCELLATION, OR TERMINATION OF THE
1087 POLICY, AND THAT THE SURCHARGES COULD BE AS HIGH AS 45 PERCENT
1088 OF MY PREMIUM, OR A DIFFERENT AMOUNT AS IMPOSED BY THE FLORIDA
1089 LEGISLATURE.
1090 2. I UNDERSTAND THAT I CAN AVOID THE CITIZENS POLICYHOLDER
1091 SURCHARGE, WHICH COULD BE AS HIGH AS 45 PERCENT OF MY PREMIUM,
1092 BY OBTAINING COVERAGE FROM A PRIVATE MARKET INSURER AND THAT TO
1093 BE ELIGIBLE FOR COVERAGE BY CITIZENS, I MUST FIRST TRY TO OBTAIN
1094 PRIVATE MARKET COVERAGE BEFORE APPLYING FOR OR RENEWING COVERAGE
1095 WITH CITIZENS. I UNDERSTAND THAT PRIVATE MARKET INSURANCE RATES
1096 ARE REGULATED AND APPROVED BY THE STATE.
1097 3. I UNDERSTAND THAT I MAY BE SUBJECT TO EMERGENCY
1098 ASSESSMENTS TO THE SAME EXTENT AS POLICYHOLDERS OF OTHER
1099 INSURANCE COMPANIES, OR A DIFFERENT AMOUNT AS IMPOSED BY THE
1100 FLORIDA LEGISLATURE.
Page 44 of 78
CODING: Words stricken are deletions; words underlined are additions.
hb1307-01-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 1307 2022
1101 4. I ALSO UNDERSTAND THAT CITIZENS PROPERTY INSURANCE
1102 CORPORATION IS NOT SUPPORTED BY THE FULL FAITH AND CREDIT OF THE
1103 STATE OF FLORIDA.
1104 a. The corporation shall maintain, in electronic format or
1105 otherwise, a copy of the applicant's signed acknowledgment and
1106 provide a copy of the statement to the policyholder as part of
1107 the first renewal after the effective date of this subparagraph.
1108 b. The signed acknowledgment form creates a conclusive
1109 presumption that the policyholder understood and accepted his or
1110 her potential surcharge and assessment liability as a
1111 policyholder of the corporation.
1112 (d)1. All prospective employees for senior management
1113 positions, as defined by the plan of operation, are subject to
1114 background checks as a prerequisite for employment. The office
1115 shall conduct the background checks pursuant to ss. 624.34,
1116 624.404(3), and 628.261.
1117 2. On or before July 1 of each year, employees of the
1118 corporation must sign and submit a statement attesting that they
1119 do not have a conflict of interest, as defined in part III of
1120 chapter 112. As a condition of employment, all prospective
1121 employees must sign and submit to the corporation a conflict -of-
1122 interest statement.
1123 3. The executive director, senior managers, and members of
1124 the board of governors are subject to part III of chapter 112,
1125 including, but not limited to, the code of ethics and public
Page 45 of 78
CODING: Words stricken are deletions; words underlined are additions.
hb1307-01-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 1307 2022
1126 disclosure and reporting of financial interests, pursuant to s.
1127 112.3145. For purposes of applying part III of chapter 112 to
1128 activities of the executive director, senior managers , and
1129 members of the board of governors, those persons shall be
1130 considered public officers or employees and the corporation
1131 shall be considered their agency. Notwithstanding s.
1132 112.3143(2), a board member may not vote on any measure that
1133 would inure to his or her special private gain or loss; that he
1134 or she knows would inure to the special private gain or loss of
1135 any principal by whom he or she is retained or to the parent
1136 organization or subsidiary of a corporate principal by which he
1137 or she is retained, other than an agency as defined in s.
1138 112.312; or that he or she knows would inure to the special
1139 private gain or loss of a relative or business associate of the
1140 public officer. Before the vote is taken, such member shall
1141 publicly state to the assembly the nature of his or her interest
1142 in the matter from which he or she is abstaining from voting
1143 and, within 15 days after the vote occurs, disclose the nature
1144 of his or her interest as a public record in a memorandum filed
1145 with the person responsible for recording the minutes of the
1146 meeting, who shall incorporate the memorandum in the minutes.
1147 Senior managers and board members are also required to file such
1148 disclosures with the Commission on Ethics and the Office of
1149 Insurance Regulation. The executive director of the corporation
1150 or his or her designee shall notify each existing and newly
Page 46 of 78
CODING: Words stricken are deletions; words underlined are additions.
hb1307-01-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 1307 2022
1151 appointed member of the board of governors and senior managers
1152 of their duty to comply with the reporting requirements of part
1153 III of chapter 112. At least quarterly, the executi ve director
1154 or his or her designee shall submit to the Commission on Ethics
1155 a list of names of the senior managers and members of the board
1156 of governors who are subject to the public disclosure
1157 requirements under s. 112.3145.
1158 4. Notwithstanding s. 112.3148, s. 112.3149, or any other
1159 provision of law, an employee or board member may not knowingly
1160 accept, directly or indirectly, any gift or expenditure from a
1161 person or entity, or an employee or representative of such
1162 person or entity, which has a contractual relationship with the
1163 corporation or who is under consideration for a contract. An
1164 employee or board member who fails to comply with subparagraph
1165 3. or this subparagraph is subject to penalties provided under
1166 ss. 112.317 and 112.3173.
1167 5. Any senior manager of the corporation who is employed
1168 on or after January 1, 2007, regardless of the date of hire, who
1169 subsequently retires or terminates employment is prohibited from
1170 representing another person or entity before the corporation for
1171 2 years after retirement or termination of employment from the
1172 corporation.
1173 6. The executive director, members of the board of
1174 governors, and senior managers of the corporation are prohibited
1175 from having any employment or contractual relationship for 2
Page 47 of 78
CODING: Words stricken are deletions; words underlined are additions.
hb1307-01-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 1307 2022
1176 years after retirement from or termination of service to the
1177 corporation with an insurer that has entered into a take -out
1178 bonus agreement with the corporation.
1179 7. At the time of appointment, the executive director must
1180 have the experience, character, and qualifications sufficient to
1181 qualify as a chief executive officer of an insurer in accordance
1182 with s. 624.404(3).
1183 (n)1. Rates for coverage provided by the corporation must
1184 be actuarially sound and subject to s. 627.062, except as
1185 otherwise provided in this paragraph. The corporation shall file
1186 its recommended rates with the office at least annually. The
1187 corporation shall provide any additional information regarding
1188 the rates which the office requires. The office shall consider
1189 the recommendations of the board and issue a final order
1190 establishing the rates for the corporation within 45 days after
1191 the recommended rates are filed. The corporation may not pursue
1192 an administrative challenge or judicial review of the final
1193 order of the office.
1194 2. In addition to the rates otherwise determined pursuant
1195 to this paragraph, the corporation shall impose and collect an
1196 amount equal to the premium tax provided in s. 624.509 to
1197 augment the financial resources of the corporation.
1198 3. If After the public hurricane loss-projection model
1199 under s. 627.06281 is has been found to be accurate and reliable
1200 by the Florida Commission on Hurricane Loss Projection
Page 48 of 78
CODING: Words stricken are deletions; words underlined are additions.
hb1307-01-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 1307 2022
1201 Methodology, it must the model shall be considered when
1202 establishing the windstorm portion of the corporation's rates.
1203 The corporation may use the public model results in combination
1204 with the results of private models to calculate rates for the
1205 windstorm portion of the corporation's rates. This subparagraph
1206 does not require or allow the corporation to adopt rates lower
1207 than the rates otherwise required or allowed by this paragraph.
1208 4. The corporation must make a recommended actuarially
1209 sound rate filing for each personal and commercial line of
1210 business it writes.
1211 5. Notwithstanding the board's recommended rates and the
1212 office's final order regarding the corporation's filed rates
1213 under subparagraph 1., the corporation shall annually implement
1214 a rate increase that which, except for sinkhole coverage, does
1215 not exceed the following for any single policy issued by the
1216 corporation, excluding coverage changes and surcharges:
1217 a. Eleven percent for 2022.
1218 b. Twelve percent for 2023.
1219 c. Thirteen percent for 2024.
1220 d. Fourteen percent for 2025.
1221 e. Fifteen percent for 2026 and all subsequent years.
1222 6. The corporation may also implement an increase to
1223 reflect the effect on the corporation of the cash buildup factor
1224 pursuant to s. 215.555(5)(b).
1225 7. The corporation's implementation of rates as prescribed
Page 49 of 78
CODING: Words stricken are deletions; words underlined are additions.
hb1307-01-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 1307 2022
1226 in subparagraph 5. must shall cease for any line of business
1227 written by the corporation upon the corporation's implementation
1228 of actuarially sound rates. Thereafter, the corporation shall
1229 annually make a recommended actuarially sound rate filing for
1230 each commercial and personal line of business the corporation
1231 writes.
1232 (q)1. The corporation shall certify to the office its
1233 needs for annual assessments as to a particular calendar year,
1234 and for any interim assessments that it deems to be necessary to
1235 sustain operations as to a particular year pending the receipt
1236 of annual assessments. Upon verification, the office shall
1237 approve such certification, and the corporation shall levy such
1238 annual or interim assessments. Such assessments shall be
1239 prorated as provided in paragraph (b). The corporation shall
1240 take all reasonable and prudent steps necessary to collect the
1241 amount of assessments due from each assessable insurer,
1242 including, if prudent, filing suit to collect the assessments,
1243 and the office may provide such assistance to the corporation it
1244 deems appropriate. If the corporation is unable to collect an
1245 assessment from any assessable insurer, the uncollected
1246 assessments shall be levied as an additional assessment against
1247 the assessable insurers and any assessable insurer required to
1248 pay an additional assessment as a result of such failure to pay
1249 shall have a cause of action against such nonpaying assessable
1250 insurer. Assessments shall be included as an appropriate factor
Page 50 of 78
CODING: Words stricken are deletions; words underlined are additions.
hb1307-01-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 1307 2022
1251 in the making of rates. The failure of a surplus lines agent to
1252 collect and remit any regular or emergency assessment levied by
1253 the corporation is considered to be a violation of s. 626.936
1254 and subjects the surplus lines agent to the penalties provided
1255 in that section.
1256 2. The governing body of any unit of local government, any
1257 residents of which are insured by the corporation, may issue
1258 bonds as defined in s. 125.013 or s. 166.101 from time to time
1259 to fund an assistance program, in conjunction with the
1260 corporation, for the purpose of defraying deficits of the
1261 corporation. In order to avoid needless and indiscriminate
1262 proliferation, duplication, and fragmentation of such assistance
1263 programs, any unit of local government, any residents of which
1264 are insured by the corporation, may provide for the payment of
1265 losses, regardless of whether or not the losses occurred within
1266 or outside of the territorial jurisdiction of the local
1267 government. Revenue bonds under this subparagraph may not be
1268 issued until validated pursuant to chapter 75, unless a state of
1269 emergency is declared by executive order or proclamation of the
1270 Governor pursuant to s. 252.36 making such findings as are
1271 necessary to determine that it is in the best interests of, and
1272 necessary for, the protection of the public health, safety, and
1273 general welfare of residents of this state and declaring it an
1274 essential public purpose to permit certain municipalities or
1275 counties to issue such bonds as will permit relief to claimants
Page 51 of 78
CODING: Words stricken are deletions; words underlined are additions.
hb1307-01-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 1307 2022
1276 and policyholders of the corporation. Any such unit of local
1277 government may enter into such contracts with the corporation
1278 and with any other entity created pursuant to this subsection as
1279 are necessary to carry out this paragraph. Any bonds issued
1280 under this subparagraph shall be payable from and secured by
1281 moneys received by the corporation from emergency assessments
1282 under sub-subparagraph (b)3.d., and assigned and pledged to or
1283 on behalf of the unit of local government for the benefit of the
1284 holders of such bonds. The funds, credit, property, and taxing
1285 power of the state or of the unit of local government may shall
1286 not be pledged for the payment of such bonds.
1287 3.a. The corporation shall adopt one or more programs
1288 subject to approval by the office for the reduction of both new
1289 and renewal writings in the corporation. Beginning January 1,
1290 2008, any program the corporation adopts for the payment of
1291 bonuses to an insurer for each risk the insurer removes from the
1292 corporation shall comply with s. 627.3511(2) and may not exceed
1293 the amount referenced in s. 627.3511(2) for each risk removed.
1294 The corporation may consider any prudent and not unfairly
1295 discriminatory approach to reducing corporation writings, and
1296 may adopt a credit against assessment liability or other
1297 liability that provides an incentive for insurers to take risks
1298 out of the corporation and to keep risks out of the corporation
1299 by maintaining or increasing voluntary writings in counties or
1300 areas in which corporation risks are highly concentrated and a
Page 52 of 78
CODING: Words stricken are deletions; words underlined are additions.
hb1307-01-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 1307 2022
1301 program to provide a formula under which an insurer voluntarily
1302 taking risks out of the corporation by maintaining or increasing
1303 voluntary writings will be relieved wholly or partially from
1304 assessments under sub-subparagraph (b) 3.a. However, any "take-
1305 out bonus" or payment to an insurer must be conditioned on the
1306 property being insured for at least 5 years by the insurer,
1307 unless canceled or nonrenewed by the policyholder. If the policy
1308 is canceled or nonrenewed by the policyholder before the end of
1309 the 5-year period, the amount of the take-out bonus must be
1310 prorated for the time period the policy was insured. When the
1311 corporation enters into a contractual agreement for a take -out
1312 plan, the producing agent of record of the corporation policy is
1313 entitled to retain any unearned commission on such policy, and
1314 the insurer shall either:
1315 (I) Pay to the producing agent of record of the policy,
1316 for the first year, an amount which is the greater of the
1317 insurer's usual and customary commission for the type of policy
1318 written or a policy fee equal to the usual and customary
1319 commission of the corporation; or
1320 (II) Offer to allow the producing agent of record of the
1321 policy to continue servicing the policy for a period of not less
1322 than 1 year and offer to pay the agent the insurer's usual and
1323 customary commission for the type of policy written. If the
1324 producing agent is unwilling or unable to accept appointment by
1325 the new insurer, the new insurer shall pay the agent in
Page 53 of 78
CODING: Words stricken are deletions; words underlined are additions.
hb1307-01-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 1307 2022
1326 accordance with sub-sub-subparagraph (I).
1327 b. Any credit or exemption from regular assessments
1328 adopted under this subparagraph shall last no longer than the 3
1329 years following the cancellation or expiration of the policy by
1330 the corporation. With the approval of the office, the board may
1331 extend such credits for an additional year if the insurer
1332 guarantees an additional year of renewability for all policies
1333 removed from the corporation, or for 2 additional years if the
1334 insurer guarantees 2 additional years of renewability for all
1335 policies so removed.
1336 c. There shall be no credit, limitation, exemption, or
1337 deferment from emergency assessments to be collected from
1338 policyholders pursuant to sub-subparagraph (b)3.d.
1339 d. Notwithstanding any other law, for purposes of a
1340 depopulation, take-out, or keep-out program adopted by the
1341 corporation, including an initial or renewal offer of coverage
1342 made to a policyholder removed from the corporation pursuant to
1343 such program, an eligible surplus lines insurer may participate
1344 in the program in the same manner and on the same terms as an
1345 authorized insurer, except as provided under this sub -
1346 subparagraph.
1347 (I) To qualify for participation, the surplus lines
1348 insurer must first obtain approval from the office for its
1349 depopulation, take-out, or keep-out plan and then comply with
1350 all of the corporation's requirements for the plan applicable to
Page 54 of 78
CODING: Words stricken are deletions; words underlined are additions.
hb1307-01-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 1307 2022
1351 admitted insurers and with all statutory provisions applicable
1352 to the removal of policies from the corporation.
1353 (II) In considering a surplus lines insurer's request for
1354 approval for its plan, the office shall determine whether the
1355 surplus lines insurer meets the following requirements:
1356 (A) Maintains a surplus of $50 million on a company or
1357 pooled basis;
1358 (B) Has a superior, excellent, exceptional, or equivalent
1359 financial strength rating by a rating agency acceptable to the
1360 office;
1361 (C) Maintains reserves, surplus, reinsurance, and
1362 reinsurance equivalents sufficient to cover the insurer's 100 -
1363 year probable maximum hurricane loss at least twice in a single
1364 hurricane season and submits such reinsurance to the office to
1365 review for purposes of the take-out;
1366 (D) Provides prominent notice to the policyholder before
1367 the assumption of the policy that surplus lines policies are not
1368 provided coverage by the Florida Insurance Guaranty Association
1369 and provides an outline of any substantial differences in
1370 coverage between the existing policy and the policy being
1371 offered to the policyholder; and
1372 (E) Provides policy coverage similar to that provided by
1373 the corporation.
1374 (III) To obtain approval for a plan, the surplus lines
1375 insurer must file the following with the office:
Page 55 of 78
CODING: Words stricken are deletions; words underlined are additions.
hb1307-01-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 1307 2022
1376 (A) Information requested by the office to demonstrate
1377 compliance with s. 624.404(3), including biographical
1378 affidavits, fingerprints processed pursuant to s. 624.34, and
1379 the results of criminal history records checks for officers and
1380 directors of the insurer and its parent or holding company;
1381 (B) A service-of-process consent and agreement form
1382 executed by the insurer;
1383 (C) Proof that the insurer has been an eligible or
1384 authorized insurer for at least 3 years;
1385 (D) A duly authenticated copy of the insurer's current
1386 audited financial statement, in English, which, in the case of
1387 statements originally made in the currencies of other countries,
1388 expresses all monetary values in United States dollars, at an
1389 exchange rate then current and shown in the statement, and
1390 including any additional information relative to the insurer as
1391 the office may request;
1392 (E) A complete certified copy of the latest official
1393 financial statement required by the insurer's domiciliary state,
1394 if different from the statement required by sub-sub-sub-
1395 subparagraph (D); and
1396 (F) If applicable, a copy of the United States trust
1397 account agreement.
1398
1399 This sub-sub-subparagraph does not subject any surplus lines
1400 insurer to requirements in addition to part VIII of chapter 626.
Page 56 of 78
CODING: Words stricken are deletions; words underlined are additions.
hb1307-01-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 1307 2022
1401 Surplus lines brokers making an offer of coverage under this
1402 sub-sub-subparagraph are not required to comply with s.
1403 626.916(1)(a), (b), (c), or (e).
1404 (IV) Within 10 days after the date of assumption, the
1405 surplus lines insurer assuming policies from the corporation
1406 shall remit to the Bureau of Collateral Management within the
1407 Department of Financial Services a special deposit equal to the
1408 unearned premium net of unearned commissions on the assumed
1409 block of business. The surplus lines insurer shall submit to the
1410 office, along with the special deposit, an accounting of the
1411 policies assumed and the amount of unearned premium for such
1412 policies and a sworn affidavit attesting to the accuracy of the
1413 accounting by an officer of the surplus lines insurer.
1414 Thereafter, the surplus lines insurer shall make a filing within
1415 10 days after the end of each calendar quarter attesting to the
1416 unearned premium in force for the previous quarter on policies
1417 assumed from the corporation and shall submit additional funds
1418 with that filing if the special deposit is insufficient to cover
1419 the unearned premium on assumed policies, or shall receive a
1420 return of funds within 60 days if the special deposit exceeds
1421 the amount of unearned premium required for assumed policies.
1422 The special deposit is an asset of the surplus lines insurer
1423 which is held by the department for the benefit of state
1424 policyholders of the surplus lines insurer in the event of the
1425 insolvency of the surplus lines insurer. If an order of
Page 57 of 78
CODING: Words stricken are deletions; words underlined are additions.
hb1307-01-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 1307 2022
1426 liquidation is entered in any state against the surplus lines
1427 insurer, the department may use the special deposit for payment
1428 of unearned premium or policy claims, return all or part of the
1429 deposit to the domiciliary receiver, or use the funds in
1430 accordance with any action authorized under part I of chapter
1431 631 or in compliance with any order of a court having
1432 jurisdiction over the insolvency.
1433 (V) In advance of a surplus lines insurer assuming a
1434 policy, surplus lines brokers representing a surplus lines
1435 insurer on a take-out program shall obtain confirmation, in
1436 written or e-mail form, from each producing agent stating that
1437 the agent is willing to participate in the take-out program with
1438 the surplus lines insurer engaging in the take-out program. The
1439 take-out program is also subject to s. 627.3517. If a
1440 policyholder is selected for removal from the corporation by a
1441 surplus lines insurer and an authorized insurer, the corporation
1442 must give priority to the offer of coverage from the authorized
1443 insurer.
1444 (VI)(A) A risk that has a dwelling replacement cost of
1445 $700,000 or more or a single condominium unit that has a
1446 combined dwelling and contents replacement cost of $700,000 or
1447 more is not eligible for coverage by the corporation if it is
1448 offered comparable coverage from a qualified surplus lines
1449 insurer at a premium no greater than 15 percent above the
1450 premium charged by the corporation.
Page 58 of 78
CODING: Words stricken are deletions; words underlined are additions.
hb1307-01-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 1307 2022
1451 (B) A risk that has a dwelling replacement cost below
1452 $700,000 or a single condominium unit that has a combined
1453 dwelling and contents replacement cost below $700,000 re mains
1454 eligible for coverage by the corporation if it is offered
1455 coverage from a qualified surplus lines insurer.
1456 4. The plan shall provide for the deferment, in whole or
1457 in part, of the assessment of an assessable insurer, other than
1458 an emergency assessment collected from policyholders pursuant to
1459 sub-subparagraph (b)3.d., if the office finds that payment of
1460 the assessment would endanger or impair the solvency of the
1461 insurer. In the event an assessment against an assessable
1462 insurer is deferred in whole or in part, the amount by which
1463 such assessment is deferred may be assessed against the other
1464 assessable insurers in a manner consistent with the basis for
1465 assessments set forth in paragraph (b).
1466 5. Effective July 1, 2007, in order to evaluate the costs
1467 and benefits of approved take-out plans, if the corporation pays
1468 a bonus or other payment to an insurer for an approved take-out
1469 plan, it shall maintain a record of the address or such other
1470 identifying information on the property or risk removed in order
1471 to track if and when the property or risk is later insured by
1472 the corporation.
1473 6. Any policy taken out, assumed, or removed from the
1474 corporation is, as of the effective date of the take-out,
1475 assumption, or removal, direct insurance issued by the insurer
Page 59 of 78
CODING: Words stricken are deletions; words underlined are additions.
hb1307-01-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 1307 2022
1476 and not by the corporation, even if the corporation continues to
1477 service the policies. This subparagraph applies to policies of
1478 the corporation and not policies taken out, assumed, or removed
1479 from any other entity.
1480 7. For a policy taken out, assumed, or removed from the
1481 corporation, the insurer may, for a period of no more than 3
1482 years, continue to use any of the corporation's policy forms or
1483 endorsements that apply to the policy taken out, removed, or
1484 assumed without obtaining approval from the office for use of
1485 such policy form or endorsement.
1486 (x)1. The following records of the corporation are
1487 confidential and exempt from the provisions of s. 119.07(1) and
1488 s. 24(a), Art. I of the State Constitution:
1489 a. Underwriting files, except that a policyholder or an
1490 applicant shall have access to his or her own underwriting
1491 files. Confidential and exempt underwriting file records may
1492 also be released to other governmental agencies upon written
1493 request and demonstration of need; such records held by the
1494 receiving agency remain confidential and exempt as provided
1495 herein.
1496 b. Claims files, until termination of all litigation and
1497 settlement of all claims arising out of the same incident,
1498 although portions of the claims files may remain exempt, as
1499 otherwise provided by law. Confidential and exempt claims file
1500 records may be released to other governmental agencies upon
Page 60 of 78
CODING: Words stricken are deletions; words underlined are additions.
hb1307-01-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 1307 2022
1501 written request and demonstration of need; such records held by
1502 the receiving agency remain confidential and exempt as provided
1503 herein.
1504 c. Records obtained or generated by an internal auditor
1505 pursuant to a routine audit, until the audit is completed, or if
1506 the audit is conducted as part of an investigation, until the
1507 investigation is closed or ceases to be active. An investigation
1508 is considered "active" while the investigation is being
1509 conducted with a reasonable, good faith belief that it could
1510 lead to the filing of administrative, civil, or criminal
1511 proceedings.
1512 d. Matters reasonably encompassed in privileged attorney-
1513 client communications.
1514 e. Proprietary information licensed to the corporation
1515 under contract and the contract provides for the confidentiality
1516 of such proprietary information.
1517 f. All information relating to the medical condition or
1518 medical status of a corporation employee which is not r elevant
1519 to the employee's capacity to perform his or her duties, except
1520 as otherwise provided in this paragraph. Information that is
1521 exempt includes shall include, but is not limited to,
1522 information relating to workers' compensation, insurance
1523 benefits, and retirement or disability benefits.
1524 g. Upon an employee's entrance into the employee
1525 assistance program, a program to assist any employee who has a
Page 61 of 78
CODING: Words stricken are deletions; words underlined are additions.
hb1307-01-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 1307 2022
1526 behavioral or medical disorder, substance abuse problem, or
1527 emotional difficulty that affects the employee's job
1528 performance, all records relative to that participation are
1529 shall be confidential and exempt from the provisions of s.
1530 119.07(1) and s. 24(a), Art. I of the State Constitution, except
1531 as otherwise provided in s. 112.0455(11).
1532 h. Information relating to negotiations for financing,
1533 reinsurance, depopulation, or contractual services, until the
1534 conclusion of the negotiations.
1535 i. Minutes of closed meetings regarding underwriting
1536 files, and minutes of closed meetings regarding an open claims
1537 file until termination of all litigation and settlement of all
1538 claims with regard to that claim, except that information
1539 otherwise confidential or exempt by law must shall be redacted.
1540 2. If an authorized insurer, a reinsurance intermediary,
1541 an eligible surplus lines insurer, or an entity that has filed
1542 an application with the office for licensure as a property and
1543 casualty insurer in this state is considering writing or
1544 assisting in the underwriting of a risk insured by the
1545 corporation, relevant information from both the underwriting
1546 files and confidential claims files may be released to the
1547 insurer, reinsurance intermediary, eligible surplus lines
1548 insurer, or entity that has been created to seek authority to
1549 write property and casualty insurance in this state, provided
1550 that the recipient insurer agrees in writing, notarized and
Page 62 of 78
CODING: Words stricken are deletions; words underlined are additions.
hb1307-01-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 1307 2022
1551 under oath, to maintain the confidentiality of such files. If a
1552 policy file is transferred to an insurer, that policy file is no
1553 longer a public record because it is not held by an agency
1554 subject to the provisions of the public records law.
1555 Underwriting files and confidential claims files may also be
1556 released to staff and the board of governors of the market
1557 assistance plan established pursuant to s. 627.3515, who must
1558 retain the confidentiality of such files, except such files may
1559 be released to authorized insurers that are considering assuming
1560 the risks to which the files apply, provided the insurer agrees
1561 in writing, notarized and under oath, to maintain the
1562 confidentiality of such files. Finally, the corporation or the
1563 board or staff of the market assistance plan may make the
1564 following information obtained from underwriting files and
1565 confidential claims files available to an entity that has
1566 obtained a permit to become an authorized insurer, a reinsurer
1567 that may provide reinsurance under s. 624.610, a licensed
1568 reinsurance broker, a licensed rating organization, a modeling
1569 company, or a licensed general lines insurance agent: name,
1570 address, and telephone number of the residential property owner
1571 or insured; location of the risk; rating information; loss
1572 history; and policy type. The receiving person must retain the
1573 confidentiality of the information received and may use the
1574 information only for the purposes of developing a take-out plan
1575 or a rating plan to be submitted to the office for approval or
Page 63 of 78
CODING: Words stricken are deletions; words underlined are additions.
hb1307-01-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 1307 2022
1576 otherwise analyzing the underwriting of a risk or risks insured
1577 by the corporation on behalf of the private insurance market. A
1578 licensed general lines insurance agent may not use such
1579 information for the direct solicitation of policyholders.
1580 3. A policyholder who has filed suit against the
1581 corporation has the right to discover the contents of his or her
1582 own claims file to the same extent that discovery of such
1583 contents would be available from a private insurer in litigation
1584 as provided by the Florida Rules of Civil Procedure, the Florida
1585 Evidence Code, and other applicable law. Pursuant to subpoena, a
1586 third party has the right to discover the contents of an
1587 insured's or applicant's underwriting or claims file to the same
1588 extent that discovery of such contents would be available from a
1589 private insurer by subpoena as provided by the Florida Rules of
1590 Civil Procedure, the Florida Evidence Code, and other applicable
1591 law, and subject to any confidentiality protections requested by
1592 the corporation and agreed to by the seeking party or ordered by
1593 the court. The corporation may release confidential underwriting
1594 and claims file contents and information as it deems necessary
1595 and appropriate to underwrite or service insurance policies and
1596 claims, subject to any confidentiality protections deemed
1597 necessary and appropriate by the corporation.
1598 4. Portions of meetings of the corporation are exempt from
1599 the provisions of s. 286.011 and s. 24(b), Art. I of the State
1600 Constitution wherein confidential underwriting files or
Page 64 of 78
CODING: Words stricken are deletions; words underlined are additions.
hb1307-01-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 1307 2022
1601 confidential open claims files are discussed. All portions of
1602 corporation meetings which are closed to the public shall be
1603 recorded by a court reporter. The court reporter shall record
1604 the times of commencement and termination of the meeting, all
1605 discussion and proceedings, the names of all persons present at
1606 any time, and the names of all persons speaking. No portion of
1607 any closed meeting shall be off the record. Subject to the
1608 provisions hereof and s. 119.07(1)(d)-(f), the court reporter's
1609 notes of any closed meeting shall be retained by the corporation
1610 for a minimum of 5 years. A copy of the transcript, less any
1611 exempt matters, of any closed meeting wherein claims are
1612 discussed shall become public as to individual claims after
1613 settlement of the claim.
1614 (ii) The corporation shall revise the programs adopted
1615 pursuant to sub-subparagraph (q)3.a. for personal lines
1616 residential policies to maximize policyholder options and
1617 encourage increased participation by insurers and agents. After
1618 January 1, 2017, a policy may not be taken out of the
1619 corporation unless the provisions of this paragraph are met.
1620 1. The corporation must publish a periodic schedule of
1621 cycles during which an insurer may identify, and notify the
1622 corporation of, policies that the insurer is requesting to take
1623 out. A request must include a description of the coverage
1624 offered and an estimated premium and must be submitted to the
1625 corporation in a form and manner prescribed by the corporation.
Page 65 of 78
CODING: Words stricken are deletions; words underlined are additions.
hb1307-01-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 1307 2022
1626 2. The corporation must maintain and make available to the
1627 agent of record a consolidated list of all insurers requesting
1628 to take out a policy. The list must include a description of the
1629 coverage offered and the estimated premium for each take -out
1630 request.
1631 3. If a policyholder receives a take-out offer from an
1632 authorized insurer, the risk is no longer eligible for coverage
1633 with the corporation unless the premium for coverage from the
1634 authorized insurer is more than the following percent greater
1635 than the renewal premium for comparable coverage from the
1636 corporation:
1637 a. Five percent for policies effective on or after January
1638 1, 2023.
1639 b. Ten percent for policies effective on or after January
1640 1, 2024.
1641 c. Fifteen percent for policies effective on or after
1642 January 1, 2025.
1643 d. Twenty percent for policies effective on or after
1644 January 1, 2026 and in all subsequent years.
1645 4.3. The corporation must provide written notice to the
1646 policyholder and the agent of record regarding all insurers
1647 requesting to take out the policy, which and regarding the
1648 policyholder's option to accept a take-out offer or to reject
1649 all take-out offers and to remain with the corporation. The
1650 notice must be in a format prescribed by the corporation and
Page 66 of 78
CODING: Words stricken are deletions; words underlined are additions.
hb1307-01-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 1307 2022
1651 include, for each take-out offer:
1652 a. The amount of the estimated premium;
1653 b. A description of the coverage; and
1654 c. A comparison of the estimated premium and coverage
1655 offered by the insurer to the estimated premium and coverage
1656 provided by the corporation.
1657 Section 3. Section 627.3517, Florida Statutes, is amended
1658 to read:
1659 627.3517 Consumer choice.—No provision of s. 627.351, s.
1660 627.3511, or s. 627.3515 shall be construed to impair the right
1661 of any insurance risk apportionment plan policyholder, upon
1662 receipt of any keep-out keepout or take-out offer, to retain his
1663 or her current agent, so long as that agent is duly licensed and
1664 appointed by the insurance risk apportionment plan or otherwise
1665 authorized to place business with the insurance risk
1666 apportionment plan. This right may shall not be canceled,
1667 suspended, impeded, abridged, or otherwise compromised by any
1668 rule, plan of operation, or depopulation plan, whether through
1669 keep-out keepout, take-out, midterm assumption, or any other
1670 means, of any insurance risk apportionment plan or depopulation
1671 plan, including, but not limited to, those described in s.
1672 627.351, s. 627.3511, or s. 627.3515. The commission shall adopt
1673 any rules necessary to cause any insurance risk apportionment
1674 plan or market assistance plan under such sections to
1675 demonstrate that the operations of the plan do not interfere
Page 67 of 78
CODING: Words stricken are deletions; words underlined are additions.
hb1307-01-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 1307 2022
1676 with, promote, or allow interference with the rights created
1677 under this section. If the policyholder's current agent is
1678 unable or unwilling to be appointed with the insurer making the
1679 take-out or keep-out keepout offer, the policyholder is shall
1680 not be disqualified from participation in the appropriate
1681 insurance risk apportionment plan because of an offer of
1682 coverage in the voluntary market. An offer of full property
1683 insurance coverage by the insurer currently insuring either the
1684 ex-wind or wind-only coverage on the policy to which the offer
1685 applies is shall not be considered a take-out or keep-out
1686 keepout offer. Any rule, plan of operation, or plan of
1687 depopulation, through keep-out keepout, take-out, midterm
1688 assumption, or any other means, of any property insurance risk
1689 apportionment plan under s. 627.351(2) or (6) is subject to ss.
1690 627.351(2)(b) and (6)(c) and 627.3511(4).
1691 Section 4. Section 627.3518, Florida Statutes, is amended
1692 to read:
1693 627.3518 Citizens Property Insurance Corporation
1694 policyholder eligibility clearinghouse program.—The purpose of
1695 this section is to provide a framework for the corporation to
1696 implement a clearinghouse program by January 1, 2014.
1697 (1) As used in this section, the term:
1698 (a) "Corporation" means Citizens Property Insurance
1699 Corporation.
1700 (b) "Exclusive agent" means any licensed insurance agent
Page 68 of 78
CODING: Words stricken are deletions; words underlined are additions.
hb1307-01-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 1307 2022
1701 that has, by contract, agreed to act exclusively for one company
1702 or group of affiliated insurance companies and is disallowed by
1703 the provisions of that contract to directly write for any other
1704 unaffiliated insurer absent express consent from the company or
1705 group of affiliated insurance companies.
1706 (c) "Independent agent" means any licensed insurance agent
1707 not described in paragraph (b).
1708 (d) "Program" means the clearinghouse created under this
1709 section.
1710 (2) In order to confirm eligibility with the corporation
1711 and to enhance access of new applicants for coverage and
1712 existing policyholders of the corporation to offers of coverage
1713 from authorized insurers, the corporation shall establish a
1714 program for personal residential risks in order to facilitate
1715 the diversion of ineligible applicants and existing
1716 policyholders from the corporation into the voluntary insurance
1717 market. The corporation shall also develop appropriate
1718 procedures for facilitating the diversion of ineligible
1719 applicants and existing policyholders for commercial residential
1720 coverage into the private insurance market and shall report such
1721 procedures to the President of the Senate and the Speaker of the
1722 House of Representatives by January 1, 2014.
1723 (3) The corporation board shall establish the
1724 clearinghouse program as an organizational unit within the
1725 corporation. The program shall have all the rights and
Page 69 of 78
CODING: Words stricken are deletions; words underlined are additions.
hb1307-01-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 1307 2022
1726 responsibilities in carrying out its duties as a licensed
1727 general lines agent, but may not be required to employ or engage
1728 a licensed general lines agent or to maintain an insurance
1729 agency license to carry out its activities in the solicitation
1730 and placement of insurance coverage. In establishing the
1731 program, the corporation may:
1732 (a) Require all new applications, and all policies due for
1733 renewal, to be submitted for coverage to the program in order to
1734 facilitate obtaining an offer of coverage from an authorized
1735 insurer before binding or renewing coverage by the corporation.
1736 (b) Employ or otherwise contract with individuals or other
1737 entities for appropriate administrative or professional services
1738 to effectuate the plan within the corporation in accordance with
1739 the applicable purchasing requirements under s. 627.351.
1740 (c) Enter into contracts with any authorized insurer to
1741 participate in the program and accept an appointment by such
1742 insurer.
1743 (d) Provide funds to operate the program. Insurers and
1744 agents participating in the program are not required to pay a
1745 fee to offset or partially offset the cost of the program or use
1746 the program for renewal of policies initially written through
1747 the clearinghouse.
1748 (e) Develop an enhanced application that includes
1749 information to assist private insurers in determining whether to
1750 make an offer of coverage through the program.
Page 70 of 78
CODING: Words stricken are deletions; words underlined are additions.
hb1307-01-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 1307 2022
1751 (f) For personal lines residential risks, require, before
1752 approving all new applications for coverage by the corporation,
1753 that every application be subject to a period of 2 business days
1754 when any insurer participating in the program may select the
1755 application for coverage. The insurer may issue a binder on any
1756 policy selected for coverage for a period of at least 30 days
1757 but not more than 60 days.
1758 (4) Any authorized insurer may participate in the program;
1759 however, participation is not mandatory for any insurer.
1760 Insurers making offers of coverage to new applicants or renewal
1761 policyholders through the program:
1762 (a) May not be required to individually appoint any agent
1763 whose customer is underwritten and bound through the program.
1764 Notwithstanding s. 626.112, insurers are not required to appoint
1765 any agent on a policy underwritten through the program for as
1766 long as that policy remains with the insurer. Insurers may, at
1767 their election, appoint any agent whose customer is initially
1768 underwritten and bound through the program. In the event an
1769 insurer accepts a policy from an agent who is not appointed
1770 pursuant to this paragraph, and thereafter elects to accept a
1771 policy from such agent, the provisions of s. 626.112 requiring
1772 appointment apply to the agent.
1773 (b) Must enter into a limited agency agreement with each
1774 agent that is not appointed in accordance with paragraph (a) and
1775 whose customer is underwritten and bound through the program.
Page 71 of 78
CODING: Words stricken are deletions; words underlined are additions.
hb1307-01-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 1307 2022
1776 (c) Must enter into its standard agency agreement with
1777 each agent whose customer is underwritten and bound through the
1778 program when that agent has been appointed by the insurer
1779 pursuant to s. 626.112.
1780 (d) Must comply with s. 627.4133(2).
1781 (e) May participate through their single-designated
1782 managing general agent or broker; however, the provisions of
1783 paragraph (6)(a) regarding ownership, control, and use of the
1784 expirations continue to apply.
1785 (f) Must pay to the producing agent a commission equal to
1786 that paid by the corporation or the usual and customary
1787 commission paid by the insurer for that line of business,
1788 whichever is greater.
1789 (5) Notwithstanding s. 627.3517, any applicant for new
1790 coverage from the corporation is not eligible for coverage from
1791 the corporation if provided an offer of coverage from an
1792 authorized insurer through the program at a premium that is at
1793 or below the eligibility threshold established in s.
1794 627.351(6)(c)5.a. Whenever an offer of coverage for a personal
1795 lines risk is received for a policyholder of the corporation at
1796 renewal from an authorized insurer through the program, if the
1797 offer is equal to or less than the corporation's renewal premium
1798 for comparable coverage, the risk is not eligible for coverage
1799 with the corporation if the offer is at or below the eligibility
1800 threshold specified in s. 627.351(6)(c)5.a. In the event that an
Page 72 of 78
CODING: Words stricken are deletions; words underlined are additions.
hb1307-01-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 1307 2022
1801 offer of coverage for a new applicant is received from an
1802 authorized insurer through the program, and the premium offered
1803 exceeds the eligibility threshold specified contained in s.
1804 627.351(6)(c)5.a., the applicant or insured may elect to accept
1805 such coverage, or may elect to accept or continue coverage with
1806 the corporation. In the event that an offer of coverage for a
1807 personal lines risk is received from an authorized insurer at
1808 renewal through the program, and the premium offered is at or
1809 below the eligibility threshold specified in s.
1810 627.351(6)(c)5.a. more than the corporation's renewal premium
1811 for comparable coverage, the insured is not eligible to may
1812 elect to accept such coverage, or may elect to accept or
1813 continue coverage with the corporation. Section
1814 627.351(6)(c)5.a.(I) does not apply to an offer of coverage from
1815 an authorized insurer obtained through the program. An applicant
1816 for coverage from the corporation who was declared ineligible
1817 for coverage at renewal by the corporation in the previous 36
1818 months due to an offer of coverage pursuant to this subsection
1819 shall be considered a renewal under this section if the
1820 corporation determines that the authorized insurer making the
1821 offer of coverage pursuant to this subsection continues to
1822 insure the applicant and increased the rate on the policy in
1823 excess of the increase allowed for the corporation under s.
1824 627.351(6)(n)5.
1825 (6) Independent insurance agents submitting new
Page 73 of 78
CODING: Words stricken are deletions; words underlined are additions.
hb1307-01-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 1307 2022
1826 applications for coverage or that are the agent of record on a
1827 renewal policy submitted to the program:
1828 (a) Are granted and must maintain ownership and the
1829 exclusive use of expirations, records, or other written or
1830 electronic information directly related to such applications or
1831 renewals written through the corporation or through an insurer
1832 participating in the program, notwithstanding s.
1833 627.351(6)(c)5.a.(I)(B) and (II)(B). Such ownership is granted
1834 for as long as the insured remains with the agency or until sold
1835 or surrendered in writing by the agent. Contracts with the
1836 corporation or required by the corporation must not amend,
1837 modify, interfere with, or limit such rights of ownership. Such
1838 expirations, records, or other written or electronic information
1839 may be used to review an application, issue a policy, or for any
1840 other purpose necessary for placing such business through the
1841 program.
1842 (b) May not be required to be appointed by any insurer
1843 participating in the program for policies written solely through
1844 the program, notwithstanding the provisions of s. 626.112.
1845 (c) May accept an appointment from any insurer
1846 participating in the program.
1847 (d) May enter into either a standard or limited agency
1848 agreement with the insurer, at the insurer's option.
1849
1850 Applicants ineligible for coverage in accordance with subsection
Page 74 of 78
CODING: Words stricken are deletions; words underlined are additions.
hb1307-01-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 1307 2022
1851 (5) remain ineligible if their independent agent is unwilling or
1852 unable to enter into a standard or limited agency agreement with
1853 an insurer participating in the program.
1854 (7) Exclusive agents submitting new applications for
1855 coverage or that are the agent of record on a renewal policy
1856 submitted to the program:
1857 (a) Must maintain ownership and the exclusive use of
1858 expirations, records, or other written or electronic information
1859 directly related to such applications or renewals written
1860 through the corporation or through an insurer participating in
1861 the program, notwithstanding s. 627.351(6)(c)5.a.(I)(B) and
1862 (II)(B). Contracts with the corporation or required by the
1863 corporation must not amend, modify, interfere with, or limit
1864 such rights of ownership. Such expirations, records, or other
1865 written or electronic information may be used to review an
1866 application, issue a policy, or for any other purpose necessary
1867 for placing such business through the program.
1868 (b) May not be required to be appointed by any insurer
1869 participating in the program for policies written solely through
1870 the program, notwithstanding the provisions of s. 626.112.
1871 (c) Must only facilitate the placement of an offer of
1872 coverage from an insurer whose limited servicing agreement is
1873 approved by that exclusive agent's exclusive insurer.
1874 (d) May enter into a limited servicing agreement with the
1875 insurer making an offer of coverage, and only after the
Page 75 of 78
CODING: Words stricken are deletions; words underlined are additions.
hb1307-01-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 1307 2022
1876 exclusive agent's insurer has approved the limited servicing
1877 agreement terms. The exclusive agent's insurer must approve a
1878 limited service agreement for the program for any insurer for
1879 which it has approved a service agreement for other purposes.
1880
1881 Applicants ineligible for coverage in accordance with subsection
1882 (5) remain ineligible if their exclusive agent is unwilling or
1883 unable to enter into a standard or limited agency agreement with
1884 an insurer making an offer of coverage to that applicant.
1885 (8) Submission of an application for coverage by the
1886 corporation to the program does not constitute the binding of
1887 coverage by the corporation, and failure of the program to
1888 obtain an offer of coverage by an insurer may not be considered
1889 acceptance of coverage of the risk by the corporation.
1890 (9) The 45-day notice of nonrenewal requirement set forth
1891 in s. 627.4133(2)(b)5. applies when a policy is nonrenewed by
1892 the corporation because the risk has received an offer of
1893 coverage pursuant to this section which renders the risk
1894 ineligible for coverage by the corporation.
1895 (10) The program may not include commercial nonresidential
1896 policies.
1897 (11) Proprietary business information provided to the
1898 corporation's clearinghouse by insurers with respect to
1899 identifying and selecting risks for an offer of coverage is
1900 confidential and exempt from s. 119.07(1) and s. 24(a), Art. I
Page 76 of 78
CODING: Words stricken are deletions; words underlined are additions.
hb1307-01-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 1307 2022
1901 of the State Constitution.
1902 (a) As used in this subsection, the term "proprietary
1903 business information" means information, regardless of form or
1904 characteristics, which is owned or controlled by an insurer and:
1905 1. Is identified by the insurer as proprietary business
1906 information and is intended to be and is treated by the insurer
1907 as private in that the disclosure of the information would cause
1908 harm to the insurer, an individual, or the company's business
1909 operations and has not been disclosed unless disclosed pursuant
1910 to a statutory requirement, an order of a court or
1911 administrative body, or a private agreement that provides that
1912 the information will not be released to the public;
1913 2. Is not otherwise readily ascertainable or publicly
1914 available by proper means by other persons from another source
1915 in the same configuration as provided to the clearinghouse; and
1916 3. Includes:
1917 a. Trade secrets, as defined in s. 688.002.
1918 b. Information relating to competitive interests, the
1919 disclosure of which would impair the competitive business of the
1920 provider of the information.
1921
1922 Proprietary business information may be found in underwriting
1923 criteria or instructions which are used to identify and se lect
1924 risks through the program for an offer of coverage and are
1925 shared with the clearinghouse to facilitate the shopping of
Page 77 of 78
CODING: Words stricken are deletions; words underlined are additions.
hb1307-01-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 1307 2022
1926 risks with the insurer.
1927 (b) The clearinghouse may disclose confidential and exempt
1928 proprietary business information:
1929 1. If the insurer to which it pertains gives prior written
1930 consent;
1931 2. Pursuant to a court order; or
1932 3. To another state agency in this or another state or to
1933 a federal agency if the recipient agrees in writing to maintain
1934 the confidential and exempt status of the document, material, or
1935 other information and has verified in writing its legal
1936 authority to maintain such confidentiality.
1937 Section 5. This act shall take effect July 1, 2022.
Page 78 of 78
CODING: Words stricken are deletions; words underlined are additions.
hb1307-01-c1
COMMERCE COMMITTEE
CS/HB 1307 by Rep. Gregory
Citizens Property Insurance
AMENDMENT SUMMARY
February 23, 2022
Amendment 1 by Gregory (line 490):
• Removes language from the bill that increased the surcharge on Citizens’ policyholders
based upon Citizens’ overall policy count.
• Extends the implementation of the percentage by which an authorized insurer’s renewal
offer for a Citizens’ policyholder or an authorized insurer’s take-out offer for a Citizens’
policyholder may exceed Citizens’ premium and make the policyholder ineligible for
Citizens’ coverage from 5% per year to 4% per year.
• Removes the definition, but not the requirement, of “demonstrated expertise in
insurance” that is required of one of the two Citizens’ board members appointed by the
Governor, Chief Financial Officer, Senate President, and Speaker of the House.
• Removes language allowing surplus lines insurers to participate in Citizens’ take-out
program.
• Removes the definition of primary residence that was in the bill as filed, but not actually
utilized in the bill.
• Adds language that prohibits a registered lobbyist from being a member of Citizens’
board.
COMMITTEE/SUBCOMMITTEE AMENDMENT
Bill No. CS/HB 1307 (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 Gregory offered the following:
3
4 Amendment (with title amendment)
5 Remove lines 490-1644 and insert:
6 (c) The corporation's plan of operation:
7 1. Must provide for adoption of residential property and
8 casualty insurance policy forms and commercial residential and
9 nonresidential property insurance forms, which must be approved
10 by the office before use. The corporation shall adopt the
11 following policy forms:
12 a. Standard personal lines policy forms that are
13 comprehensive multiperil policies providing full coverage of a
14 residential property equivalent to the coverage provided in the
15 private insurance market under an HO-3, HO-4, or HO-6 policy.
980307 - h1307-line 490.docx
Published On: 2/22/2022 10:21:06 PM
Page 1 of 31
COMMITTEE/SUBCOMMITTEE AMENDMENT
Bill No. CS/HB 1307 (2022)
Amendment No. 1
16 b. Basic personal lines policy forms that are policies
17 similar to an HO-8 policy or a dwelling fire policy that provide
18 coverage meeting the requirements of the secondary mortgage
19 market, but which is more limited than the coverage under a
20 standard policy.
21 c. Commercial lines residential and nonresidential policy
22 forms that are generally similar to the basic perils of full
23 coverage obtainable for commercial residential structures and
24 commercial nonresidential structures in the admitted voluntary
25 market.
26 d. Personal lines and commercial lines residential
27 property insurance forms that cover the peril of wind only. The
28 forms are applicable only to residential properties located in
29 areas eligible for coverage under the coastal account referred
30 to in sub-subparagraph (b)2.a.
31 e. Commercial lines nonresidential property insurance
32 forms that cover the peril of wind only. The forms are
33 applicable only to nonresidential properties located in areas
34 eligible for coverage under the coastal account referred to in
35 sub-subparagraph (b)2.a.
36 f. The corporation may adopt variations of the policy
37 forms listed in sub-subparagraphs a.-e. which contain more
38 restrictive coverage.
39 g. Effective January 1, 2013, the corporation shall offer
40 a basic personal lines policy similar to an HO-8 policy with
980307 - h1307-line 490.docx
Published On: 2/22/2022 10:21:06 PM
Page 2 of 31
COMMITTEE/SUBCOMMITTEE AMENDMENT
Bill No. CS/HB 1307 (2022)
Amendment No. 1
41 dwelling repair based on common construction materials and
42 methods.
43 4. Must require that the corporation operate subject to
44 the supervision and approval of a board of governors consisting
45 of nine individuals who are residents of this state and who are
46 from different geographical areas of this the state, one of whom
47 is appointed by the Governor and serves solely to advocate on
48 behalf of the consumer. The appointment of a consumer
49 representative by the Governor is deemed to be within the scope
50 of the exemption provided in s. 112.313(7)(b) and is in addition
51 to the appointments authorized under sub-subparagraph a. A
52 registered lobbyist for executive or legislative branch may not
53 be a member of the board.
54 a. The Governor, the Chief Financial Officer, the
55 President of the Senate, and the Speaker of the House of
56 Representatives shall each appoint two members of the board. At
57 least one of the two members appointed by each appointing
58 officer must have demonstrated expertise in insurance and be
59 deemed to be within the scope of the exemption provided in s.
60 112.313(7)(b) at the time of appointment or reappointment. The
61 Chief Financial Officer shall designate one of the appointees as
62 chair. All board members serve at the pleasure of the appointing
63 officer. All members of the board are subject to removal at will
64 by the officers who appointed them. All board members, including
65 the chair, must be appointed to serve for 3-year terms beginning
980307 - h1307-line 490.docx
Published On: 2/22/2022 10:21:06 PM
Page 3 of 31
COMMITTEE/SUBCOMMITTEE AMENDMENT
Bill No. CS/HB 1307 (2022)
Amendment No. 1
66 annually on a date designated by the plan. However, for the
67 first term beginning on or after July 1, 2009, each appointing
68 officer shall appoint one member of the board for a 2 -year term
69 and one member for a 3-year term. A board vacancy shall be
70 filled for the unexpired term by the appointing officer. The
71 Chief Financial Officer shall appoint a technical advisory group
72 to provide information and advice to the board in connection
73 with the board's duties under this subsection. The executive
74 director and senior managers of the corporation shall be engaged
75 by the board and serve at the pleasure of the board. Any
76 executive director appointed on or after July 1, 2006, is
77 subject to confirmation by the Senate. The executive director is
78 responsible for employing other staff as the corporation may
79 require, subject to review and concurrence by the board.
80 b. The board shall create a Market Accountability Advisory
81 Committee to assist the corporation in developing awareness of
82 its rates and its customer and agent service levels in
83 relationship to the voluntary market insurers writing similar
84 coverage.
85 (I) The members of the advisory committee consist of the
86 following 11 persons, one of whom must be elected chair by the
87 members of the committee: four representatives, one appointed by
88 the Florida Association of Insurance Agents, one by the Florida
89 Association of Insurance and Financial Advisors, one by the
90 Professional Insurance Agents of Florida, and one by the Latin
980307 - h1307-line 490.docx
Published On: 2/22/2022 10:21:06 PM
Page 4 of 31
COMMITTEE/SUBCOMMITTEE AMENDMENT
Bill No. CS/HB 1307 (2022)
Amendment No. 1
91 American Association of Insurance Agencies; three
92 representatives appointed by the insurers with the three highest
93 voluntary market share of residential property insurance
94 business in this the state; one representative from the Office
95 of Insurance Regulation; one consumer appointed by the board who
96 is insured by the corporation at the time of appointment to the
97 committee; one representative appointed by the Florida
98 Association of Realtors; and one representative appointed by the
99 Florida Bankers Association. All members shall be appointed to
100 3-year terms and may serve for consecutive terms.
101 (II) The committee shall report to the corporation at each
102 board meeting on insurance market issues that which may include
103 rates and rate competition with the voluntary market; service,
104 including policy issuance, claims processing, and general
105 responsiveness to policyholders, applicants, and agents; and
106 matters relating to depopulation.
107 5. Must provide a procedure for determining the
108 eligibility of a risk for coverage, as follows:
109 a. Subject to s. 627.3517, with respect to personal lines
110 residential risks, if the risk is offered coverage from an
111 authorized insurer at the insurer's approved rate under a
112 standard policy including wind coverage or, if consistent with
113 the insurer's underwriting rules as filed with the office, a
114 basic policy including wind coverage, for a new application to
115 the corporation for coverage, the risk is not eligible for any
980307 - h1307-line 490.docx
Published On: 2/22/2022 10:21:06 PM
Page 5 of 31
COMMITTEE/SUBCOMMITTEE AMENDMENT
Bill No. CS/HB 1307 (2022)
Amendment No. 1
116 policy issued by the corporation unless the premium for coverage
117 from the authorized insurer is more than 20 percent greater than
118 the premium for comparable coverage from the corporation.
119 (I) Whenever an offer of coverage for a personal lines
120 residential risk is received for a policyholder of the
121 corporation at renewal from an authorized insurer, if the offer
122 is equal to or less than the corporation's renewal premium for
123 comparable coverage, the risk is not eligible for coverage with
124 the corporation unless the premium for coverage from the
125 authorized insurer is more than the following percent greater
126 than the renewal premium for comparable coverage from the
127 corporation:
128 (A) Four percent for policies that renew during 2023.
129 (B) Eight percent for policies that renew during 2024.
130 (C) Twelve percent for policies that renew during 2025.
131 (D) Sixteen percent for polices that renew during 2026.
132 (E) Twenty percent for policies that renew during 2027 and
133 during all subsequent years.
134
135 If the risk is not able to obtain such offers offer, the risk is
136 eligible for a standard policy including wind coverage or a
137 basic policy including wind coverage issued by the corporation;
138 however, if the risk could not be insured under a standard
139 policy including wind coverage regardless of market conditions,
140 the risk is eligible for a basic policy including wind coverage
980307 - h1307-line 490.docx
Published On: 2/22/2022 10:21:06 PM
Page 6 of 31
COMMITTEE/SUBCOMMITTEE AMENDMENT
Bill No. CS/HB 1307 (2022)
Amendment No. 1
141 unless rejected under subparagraph 8. However, a policyholder
142 removed from the corporation through an assumption agreement
143 remains eligible for coverage from the corporation until the end
144 of the assumption period. The corporation shall determine the
145 type of policy to be provided on the basis of objective
146 standards specified in the underwriting manual and based on
147 generally accepted underwriting practices. A policyholder
148 removed from the corporation through an assumption agreement
149 does not remain eligible for coverage from the corporation
150 beyond the end of the policy term. However, any policy removed
151 from the corporation through an assumption agreement shall
152 remain on the corporation's policy forms through the end of the
153 policy term.
154 (II)(I) If the risk accepts an offer of coverage through
155 the market assistance plan or through a mechanism established by
156 the corporation other than a plan established by s. 627.3518,
157 before a policy is issued to the risk by the corporation or
158 during the first 30 days of coverage by the corporation, and the
159 producing agent who submitted the application to the plan or to
160 the corporation is not currently appointed by the insurer, the
161 insurer shall:
162 (A) Pay to the producing agent of record of the policy for
163 the first year, an amount that is the greater of the insurer's
164 usual and customary commission for the type of policy written or
980307 - h1307-line 490.docx
Published On: 2/22/2022 10:21:06 PM
Page 7 of 31
COMMITTEE/SUBCOMMITTEE AMENDMENT
Bill No. CS/HB 1307 (2022)
Amendment No. 1
165 a fee equal to the usual and customary commission of the
166 corporation; or
167 (B) Offer to allow the producing agent of record of the
168 policy to continue servicing the policy for at least 1 year and
169 offer to pay the agent the greater of the insurer's or the
170 corporation's usual and customary commission for the type of
171 policy written.
172
173 If the producing agent is unwilling or unable to accept
174 appointment, the new insurer shall pay the agent in accordance
175 with sub-sub-sub-subparagraph (A).
176 (III)(II) If the corporation enters into a contractual
177 agreement for a take-out plan, the producing agent of record of
178 the corporation policy is entitled to retain any unearned
179 commission on the policy, and the insurer shall:
180 (A) Pay to the producing agent of record, for the first
181 year, an amount that is the greater of the insurer's usual and
182 customary commission for the type of policy written or a fee
183 equal to the usual and customary commission of the corporation;
184 or
185 (B) Offer to allow the producing agent of record to
186 continue servicing the policy for at least 1 year and offer to
187 pay the agent the greater of the insurer's or the corporation's
188 usual and customary commission for the type of policy written.
189
980307 - h1307-line 490.docx
Published On: 2/22/2022 10:21:06 PM
Page 8 of 31
COMMITTEE/SUBCOMMITTEE AMENDMENT
Bill No. CS/HB 1307 (2022)
Amendment No. 1
190 If the producing agent is unwilling or unable to accept
191 appointment, the new insurer shall pay the agent in accordance
192 with sub-sub-sub-subparagraph (A).
193 b. With respect to commercial lines residential risks, for
194 a new application to the corporation for coverage, if the risk
195 is offered coverage under a policy including wind coverage from
196 an authorized insurer at its approved rate, the risk is not
197 eligible for a policy issued by the corporation unless the
198 premium for coverage from the authorized insurer is more than 20
199 15 percent greater than the premium for comparable coverage from
200 the corporation.
201 (I) Whenever an offer of coverage for a commercial lines
202 residential risk is received for a policyholder of the
203 corporation at renewal from an authorized insurer, if the offer
204 is equal to or less than the corporation's renewal premium for
205 comparable coverage, the risk is not eligible for coverage with
206 the corporation unless the premium for coverage from the
207 authorized insurer is more than the following percent greater
208 than the renewal premium for comparable coverage from the
209 corporation:
210 (A) Four percent for policies that renew during 2023.
211 (B) Eight percent for policies that renew during 2024.
212 (C) Twelve percent for policies that renew during 2025.
213 (D) Sixteen percent for policies that renew during 2026.
980307 - h1307-line 490.docx
Published On: 2/22/2022 10:21:06 PM
Page 9 of 31
COMMITTEE/SUBCOMMITTEE AMENDMENT
Bill No. CS/HB 1307 (2022)
Amendment No. 1
214 (E) Twenty percent for policies that renew during 2027 and
215 during all subsequent years.
216
217 If the risk is not able to obtain any such offers offer, the
218 risk is eligible for a policy including wind coverage issued by
219 the corporation. However, A policyholder removed from the
220 corporation through an assumption agreement does not remain
221 remains eligible for coverage from the corporation beyond the
222 end of the policy term until the end of the assumption period.
223 However, any policy removed from the corporation through an
224 assumption agreement shall remain on the corporation's policy
225 forms through the end of the policy term.
226 (II)(I) If the risk accepts an offer of coverage through
227 the market assistance plan or through a mechanism established by
228 the corporation other than a plan established by s. 627.3518,
229 before a policy is issued to the risk by the corporation or
230 during the first 30 days of coverage by the corporation, and the
231 producing agent who submitted the application to the plan or the
232 corporation is not currently appointed by the insurer, the
233 insurer shall:
234 (A) Pay to the producing agent of record of the policy,
235 for the first year, an amount that is the greater of the
236 insurer's usual and customary commission for the type of policy
237 written or a fee equal to the usual and customary commission of
238 the corporation; or
980307 - h1307-line 490.docx
Published On: 2/22/2022 10:21:06 PM
Page 10 of 31
COMMITTEE/SUBCOMMITTEE AMENDMENT
Bill No. CS/HB 1307 (2022)
Amendment No. 1
239 (B) Offer to allow the producing agent of record of the
240 policy to continue servicing the policy for at least 1 year and
241 offer to pay the agent the greater of the insurer's or the
242 corporation's usual and customary commission for the type of
243 policy written.
244
245 If the producing agent is unwilling or unable to accept
246 appointment, the new insurer shall pay the agent in accordance
247 with sub-sub-sub-subparagraph (A).
248 c. For purposes of determining comparable coverage under
249 sub-subparagraphs a. and b., the comparison must be based on
250 those forms and coverages that are reasonably comparable. The
251 corporation may rely on a determination of comparable coverage
252 and premium made by the producing agent who submits the
253 application to the corporation, made in the agent's capacity as
254 the corporation's agent. A comparison may be made solely of the
255 premium with respect to the main building or structure only on
256 the following basis: the same coverage A or other building
257 limits; the same percentage hurricane deductible that applies on
258 an annual basis or that applies to each hurricane for commercial
259 residential property; the same percentage of ordinance and law
260 coverage, if the same limit is offered by both the corporation
261 and the authorized insurer; the same mitigation credits, to the
262 extent the same types of credits are offered both by the
263 corporation and the authorized insurer; the same method for loss
980307 - h1307-line 490.docx
Published On: 2/22/2022 10:21:06 PM
Page 11 of 31
COMMITTEE/SUBCOMMITTEE AMENDMENT
Bill No. CS/HB 1307 (2022)
Amendment No. 1
264 payment, such as replacement cost or actual cash value, if the
265 same method is offered both by the corporation and the
266 authorized insurer in accordance with underwriting rules; and
267 any other form or coverage that is reasonably comparable as
268 determined by the board. If an application is submitted to the
269 corporation for wind-only coverage in the coastal account, the
270 premium for the corporation's wind-only policy plus the premium
271 for the ex-wind policy that is offered by an authorized insurer
272 to the applicant must be compared to the premium for multiperil
273 coverage offered by an authorized insurer, subject to the
274 standards for comparison specified in this subparagraph. If the
275 corporation or the applicant requests from the authorized
276 insurer a breakdown of the premium of the offer by types of
277 coverage so that a comparison may be made by the corporation or
278 its agent and the authorized insurer refuses or is unable to
279 provide such information, the corporation may treat the offer as
280 not being an offer of coverage from an authorized insurer at the
281 insurer's approved rate.
282 6. Must include rules for classifications of risks and
283 rates.
284 7. Must provide that if premium and investment income for
285 an account attributable to a particular calendar year are in
286 excess of projected losses and expenses for the account
287 attributable to that year, such excess shall be held in surplus
288 in the account. Such surplus must be available to defray
980307 - h1307-line 490.docx
Published On: 2/22/2022 10:21:06 PM
Page 12 of 31
COMMITTEE/SUBCOMMITTEE AMENDMENT
Bill No. CS/HB 1307 (2022)
Amendment No. 1
289 deficits in that account as to future years and used for that
290 purpose before assessing assessable insurers and assessable
291 insureds as to any calendar year.
292 8. Must provide objective criteria and procedures to be
293 uniformly applied to all applicants in determining whether an
294 individual risk is so hazardous as to be uninsurable. In making
295 this determination and in establishing the criteria and
296 procedures, the following must be considered:
297 a. Whether the likelihood of a loss for the individual
298 risk is substantially higher than for other risks of the same
299 class; and
300 b. Whether the uncertainty associated with the individual
301 risk is such that an appropriate premium cannot be determined.
302
303 The acceptance or rejection of a risk by the corporation must
304 shall be construed as the private placement of insurance, and
305 the provisions of chapter 120 does do not apply.
306 9. Must provide that the corporation make its best e fforts
307 to procure catastrophe reinsurance at reasonable rates, to cover
308 its projected 100-year probable maximum loss as determined by
309 the board of governors. If catastrophe reinsurance is not
310 available at reasonable rates, the corporation need not purchase
311 it, but the corporation shall include the costs of reinsurance
312 to cover its projected 100-year probable maximum loss in its
980307 - h1307-line 490.docx
Published On: 2/22/2022 10:21:06 PM
Page 13 of 31
COMMITTEE/SUBCOMMITTEE AMENDMENT
Bill No. CS/HB 1307 (2022)
Amendment No. 1
313 rate calculations even if it does not purchase catastrophe
314 reinsurance.
315 10. The policies issued by the corporation Must provide
316 that if the corporation or the market assistance plan obtains an
317 offer from an authorized insurer to cover the risk at its
318 approved rates, the risk is no longer eligible for renewal
319 through the corporation, except as otherwise provided in this
320 subsection.
321 11. Corporation policies and applications Must include a
322 notice that the corporation policy could, under this section, be
323 replaced with a policy issued by an authorized insurer which
324 does not provide coverage identical to the coverage provided by
325 the corporation. The notice must also specify that acceptance of
326 corporation coverage creates a conclusive presumption that the
327 applicant or policyholder is aware of this potential.
328 12. May establish, subject to approval by the office,
329 different eligibility requirements and operational procedures
330 for any line or type of coverage for any specified county or
331 area if the board determines that such changes are justified due
332 to the voluntary market being sufficiently stable and
333 competitive in such area or for such line or type of coverage
334 and that consumers who, in good faith, are unable to obtain
335 insurance through the voluntary market through ordinary methods
336 continue to have access to coverage from the corporation. If
337 coverage is sought in connection with a real property transfer,
980307 - h1307-line 490.docx
Published On: 2/22/2022 10:21:06 PM
Page 14 of 31
COMMITTEE/SUBCOMMITTEE AMENDMENT
Bill No. CS/HB 1307 (2022)
Amendment No. 1
338 the requirements and procedures may not provide an effective
339 date of coverage later than the date of the closing of the
340 transfer as established by the transferor, the transferee, and,
341 if applicable, the lender.
342 13. Must provide that, with respect to the coastal
343 account, any assessable insurer with a surplus as to
344 policyholders of $25 million or less writing 25 percent or more
345 of its total countrywide property insurance premiums in this
346 state may petition the office, within the first 90 days of each
347 calendar year, to qualify as a limited apportionment company. A
348 regular assessment levied by the corporation on a limited
349 apportionment company for a deficit incurred by the corporation
350 for the coastal account may be paid to the corporation on a
351 monthly basis as the assessments are collected by the limited
352 apportionment company from its insureds, but a limited
353 apportionment company must begin collecting the regular
354 assessments not later than 90 days after the regular assessments
355 are levied by the corporation, and the regular assessments must
356 be paid in full within 15 months after being levied by the
357 corporation. A limited apportionment company shall collect from
358 its policyholders any emergency assessment imposed under sub -
359 subparagraph (b)3.d. The plan must provide that, if the office
360 determines that any regular assessment will result in an
361 impairment of the surplus of a limited apportionment company,
362 the office may direct that all or part of such assessment be
980307 - h1307-line 490.docx
Published On: 2/22/2022 10:21:06 PM
Page 15 of 31
COMMITTEE/SUBCOMMITTEE AMENDMENT
Bill No. CS/HB 1307 (2022)
Amendment No. 1
363 deferred as provided in subparagraph (q)4. However, an emergency
364 assessment to be collected from policyholders under sub -
365 subparagraph (b)3.d. may not be limited or deferred.
366 14. Must provide that the corporation appoint as its
367 licensed agents only those agents who throughout such
368 appointments also hold an appointment as defined in s. 626.015
369 by an insurer who is authorized to write and is actually writing
370 or renewing personal lines residential property coverage,
371 commercial residential property coverage, or commercial
372 nonresidential property coverage within this the state.
373 15. Must provide a premium payment plan option to its
374 policyholders which, at a minimum, allows for quarterly and
375 semiannual payment of premiums. A monthly payment plan may, but
376 is not required to, be offered.
377 16. Must limit coverage on mobile homes or manufactured
378 homes built before 1994 to actual cash value of the dwelling
379 rather than replacement costs of the dwelling.
380 17. Must provide coverage for manufactured or mobile home
381 dwellings. Such coverage must also include the following
382 attached structures:
383 a. Screened enclosures that are aluminum framed or
384 screened enclosures that are not covered by the same or
385 substantially the same materials as those of the primary
386 dwelling;
980307 - h1307-line 490.docx
Published On: 2/22/2022 10:21:06 PM
Page 16 of 31
COMMITTEE/SUBCOMMITTEE AMENDMENT
Bill No. CS/HB 1307 (2022)
Amendment No. 1
387 b. Carports that are aluminum or carports that are not
388 covered by the same or substantially the same materials as those
389 of the primary dwelling; and
390 c. Patios that have a roof covering that is constructed of
391 materials that are not the same or substantially the same
392 materials as those of the primary dwelling.
393
394 The corporation shall make available a policy for mobile homes
395 or manufactured homes for a minimum insured value of at least
396 $3,000.
397 18. May provide such limits of coverage as the board
398 determines, consistent with the requirements of this subsection.
399 19. May require commercial property to meet specified
400 hurricane mitigation construction features as a condition of
401 eligibility for coverage.
402 20. Must provide that new or renewal policies issued by
403 the corporation on or after January 1, 2012, which cover
404 sinkhole loss do not include coverage for any loss to
405 appurtenant structures, driveways, sidewalks, decks, or patios
406 that are directly or indirectly caused by sinkhole activity. The
407 corporation shall exclude such coverage using a notice of
408 coverage change, which may be included with the policy renewal,
409 and not by issuance of a notice of nonrenewal of the excluded
410 coverage upon renewal of the current policy.
980307 - h1307-line 490.docx
Published On: 2/22/2022 10:21:06 PM
Page 17 of 31
COMMITTEE/SUBCOMMITTEE AMENDMENT
Bill No. CS/HB 1307 (2022)
Amendment No. 1
411 21. As of January 1, 2012, must require that the agent
412 obtain from an applicant for coverage from the corporation an
413 acknowledgment signed by the applicant, which includes, at a
414 minimum, the following statement:
415 ACKNOWLEDGMENT OF POTENTIAL SURCHARGE
416 AND ASSESSMENT LIABILITY:
417 1. AS A POLICYHOLDER OF CITIZENS PROPERTY INSURANCE
418 CORPORATION, I UNDERSTAND THAT IF THE CORPORATION SUSTAINS A
419 DEFICIT AS A RESULT OF HURRICANE LOSSES OR FOR ANY OTHER REASON,
420 MY POLICY COULD BE SUBJECT TO SURCHARGES, WHICH WILL BE DUE AND
421 PAYABLE UPON RENEWAL, CANCELLATION, OR TERMINATION OF THE
422 POLICY, AND THAT THE SURCHARGES COULD BE AS HIGH AS 45 PERCENT
423 OF MY PREMIUM, OR A DIFFERENT AMOUNT AS IMPOSED BY THE FLORIDA
424 LEGISLATURE.
425 2. I UNDERSTAND THAT I CAN AVOID THE CITIZENS POLICYHOLDER
426 SURCHARGE, WHICH COULD BE AS HIGH AS 45 PERCENT OF MY PREMIUM,
427 BY OBTAINING COVERAGE FROM A PRIVATE MARKET INSURER AND THAT TO
428 BE ELIGIBLE FOR COVERAGE BY CITIZENS, I MUST FIRST TRY TO OBTAIN
429 PRIVATE MARKET COVERAGE BEFORE APPLYING FOR OR RENEWING COVERAGE
430 WITH CITIZENS. I UNDERSTAND THAT PRIVATE MARKET INSURANCE RATES
431 ARE REGULATED AND APPROVED BY THE STATE.
432 3. I UNDERSTAND THAT I MAY BE SUBJECT TO EMERGENCY
433 ASSESSMENTS TO THE SAME EXTENT AS POLICYHOLDERS OF OTHER
434 INSURANCE COMPANIES, OR A DIFFERENT AMOUNT AS IMPOSED BY THE
435 FLORIDA LEGISLATURE.
980307 - h1307-line 490.docx
Published On: 2/22/2022 10:21:06 PM
Page 18 of 31
COMMITTEE/SUBCOMMITTEE AMENDMENT
Bill No. CS/HB 1307 (2022)
Amendment No. 1
436 4. I ALSO UNDERSTAND THAT CITIZENS PROPERTY INSURANCE
437 CORPORATION IS NOT SUPPORTED BY THE FULL FAITH AND CREDIT OF THE
438 STATE OF FLORIDA.
439 a. The corporation shall maintain, in electronic format or
440 otherwise, a copy of the applicant's signed acknowledgment and
441 provide a copy of the statement to the policyholder as part of
442 the first renewal after the effective date of this subparagraph.
443 b. The signed acknowledgment form creates a conclusive
444 presumption that the policyholder understood and accepted his or
445 her potential surcharge and assessment liability as a
446 policyholder of the corporation.
447 (d)1. All prospective employees for senior management
448 positions, as defined by the plan of operation, are subject to
449 background checks as a prerequisite for employment. The office
450 shall conduct the background checks pursuant to ss. 624.34,
451 624.404(3), and 628.261.
452 2. On or before July 1 of each year, employees of the
453 corporation must sign and submit a statement attesting that they
454 do not have a conflict of interest, as defined in part III of
455 chapter 112. As a condition of employment, all prospective
456 employees must sign and submit to the corporation a conflict -of-
457 interest statement.
458 3. The executive director, senior managers, and members of
459 the board of governors are subject to part III of chapter 112,
460 including, but not limited to, the code of ethics and public
980307 - h1307-line 490.docx
Published On: 2/22/2022 10:21:06 PM
Page 19 of 31
COMMITTEE/SUBCOMMITTEE AMENDMENT
Bill No. CS/HB 1307 (2022)
Amendment No. 1
461 disclosure and reporting of financial interests, pursuant to s.
462 112.3145. For purposes of applying part III of chapter 112 to
463 activities of the executive director, senior managers, and
464 members of the board of governors, those persons shall be
465 considered public officers or employees and the corporation
466 shall be considered their agency. Notwithstanding s.
467 112.3143(2), a board member may not vote on any measure that
468 would inure to his or her special private gain or loss; that he
469 or she knows would inure to the special private gain or loss of
470 any principal by whom he or she is retained or to the parent
471 organization or subsidiary of a corporate principal by which he
472 or she is retained, other than an agency as defined in s.
473 112.312; or that he or she knows would inure to the special
474 private gain or loss of a relative or business associate of the
475 public officer. Before the vote is taken, such member shall
476 publicly state to the assembly the nature of his or her interest
477 in the matter from which he or she is abstaining from voting
478 and, within 15 days after the vote occurs, disclose the nature
479 of his or her interest as a public record in a memorandum filed
480 with the person responsible for recording the minutes of the
481 meeting, who shall incorporate the memorandum in the minutes.
482 Senior managers and board members are also required to file such
483 disclosures with the Commission on Ethics and the Office of
484 Insurance Regulation. The executive director of the corpor ation
485 or his or her designee shall notify each existing and newly
980307 - h1307-line 490.docx
Published On: 2/22/2022 10:21:06 PM
Page 20 of 31
COMMITTEE/SUBCOMMITTEE AMENDMENT
Bill No. CS/HB 1307 (2022)
Amendment No. 1
486 appointed member of the board of governors and senior managers
487 of their duty to comply with the reporting requirements of part
488 III of chapter 112. At least quarterly, the executive director
489 or his or her designee shall submit to the Commission on Ethics
490 a list of names of the senior managers and members of the board
491 of governors who are subject to the public disclosure
492 requirements under s. 112.3145.
493 4. Notwithstanding s. 112.3148, s. 112.3149, or any other
494 provision of law, an employee or board member may not knowingly
495 accept, directly or indirectly, any gift or expenditure from a
496 person or entity, or an employee or representative of such
497 person or entity, which has a contractual relationship with the
498 corporation or who is under consideration for a contract. An
499 employee or board member who fails to comply with subparagraph
500 3. or this subparagraph is subject to penalties provided under
501 ss. 112.317 and 112.3173.
502 5. Any senior manager of the corporation who is employed
503 on or after January 1, 2007, regardless of the date of hire, who
504 subsequently retires or terminates employment is prohibited from
505 representing another person or entity before the corporation for
506 2 years after retirement or termination of employment from the
507 corporation.
508 6. The executive director, members of the board of
509 governors, and senior managers of the corporation are prohibited
510 from having any employment or contractual relationship for 2
980307 - h1307-line 490.docx
Published On: 2/22/2022 10:21:06 PM
Page 21 of 31
COMMITTEE/SUBCOMMITTEE AMENDMENT
Bill No. CS/HB 1307 (2022)
Amendment No. 1
511 years after retirement from or termination of service to the
512 corporation with an insurer that has entered into a take -out
513 bonus agreement with the corporation.
514 7. At the time of appointment, the executive director must
515 have the experience, character, and qualifications sufficient to
516 qualify as a chief executive officer of an insurer in accordance
517 with s. 624.404(3).
518 (n)1. Rates for coverage provided by the corporation must
519 be actuarially sound and subject to s. 627.062, except as
520 otherwise provided in this paragraph. The corporation shall file
521 its recommended rates with the office at least annually. The
522 corporation shall provide any additional information regarding
523 the rates which the office requires. The office shall consider
524 the recommendations of the board and issue a final order
525 establishing the rates for the corporation within 45 days after
526 the recommended rates are filed. The corporation may not pursue
527 an administrative challenge or judicial review of the final
528 order of the office.
529 2. In addition to the rates otherwise determined pursuant
530 to this paragraph, the corporation shall impose and collect an
531 amount equal to the premium tax provided in s. 624.509 to
532 augment the financial resources of the corporation.
533 3. If After the public hurricane loss-projection model
534 under s. 627.06281 is has been found to be accurate and reliable
535 by the Florida Commission on Hurricane Loss Projection
980307 - h1307-line 490.docx
Published On: 2/22/2022 10:21:06 PM
Page 22 of 31
COMMITTEE/SUBCOMMITTEE AMENDMENT
Bill No. CS/HB 1307 (2022)
Amendment No. 1
536 Methodology, it must the model shall be considered when
537 establishing the windstorm portion of the corporation's rates.
538 The corporation may use the public model results in combination
539 with the results of private models to calculate rates for the
540 windstorm portion of the corporation's rates. This subparagraph
541 does not require or allow the corporation to adopt rates lower
542 than the rates otherwise required or allowed by this paragraph.
543 4. The corporation must make a recommended actuarially
544 sound rate filing for each personal and commercial line of
545 business it writes.
546 5. Notwithstanding the board's recommended rates and the
547 office's final order regarding the corporation's filed rates
548 under subparagraph 1., the corporation shall annually implement
549 a rate increase that which, except for sinkhole coverage, does
550 not exceed the following for any single policy issued by the
551 corporation, excluding coverage changes and surcharges:
552 a. Eleven percent for 2022.
553 b. Twelve percent for 2023.
554 c. Thirteen percent for 2024.
555 d. Fourteen percent for 2025.
556 e. Fifteen percent for 2026 and all subsequent years.
557 6. The corporation may also implement an increase to
558 reflect the effect on the corporation of the cash buildup factor
559 pursuant to s. 215.555(5)(b).
980307 - h1307-line 490.docx
Published On: 2/22/2022 10:21:06 PM
Page 23 of 31
COMMITTEE/SUBCOMMITTEE AMENDMENT
Bill No. CS/HB 1307 (2022)
Amendment No. 1
560 7. The corporation's implementation of rates as prescribed
561 in subparagraph 5. must shall cease for any line of business
562 written by the corporation upon the corporation's implementation
563 of actuarially sound rates. Thereafter, the corporation shall
564 annually make a recommended actuarially sound rate filing for
565 each commercial and personal line of business the corporation
566 writes.
567 (x)1. The following records of the corporation are
568 confidential and exempt from the provisions of s. 119.07(1) and
569 s. 24(a), Art. I of the State Constitution:
570 a. Underwriting files, except that a policyholder or an
571 applicant shall have access to his or her own underwriting
572 files. Confidential and exempt underwriting file records may
573 also be released to other governmental agencies upon written
574 request and demonstration of need; such records held by the
575 receiving agency remain confidential and exempt as provided
576 herein.
577 b. Claims files, until termination of all litigation and
578 settlement of all claims arising out of the same incident,
579 although portions of the claims files may remain exempt, as
580 otherwise provided by law. Confidential and exempt claims file
581 records may be released to other governmental agencies upon
582 written request and demonstration of need; such records held by
583 the receiving agency remain confidential and exempt as provided
584 herein.
980307 - h1307-line 490.docx
Published On: 2/22/2022 10:21:06 PM
Page 24 of 31
COMMITTEE/SUBCOMMITTEE AMENDMENT
Bill No. CS/HB 1307 (2022)
Amendment No. 1
585 c. Records obtained or generated by an internal auditor
586 pursuant to a routine audit, until the audit is completed, or if
587 the audit is conducted as part of an investigation, until the
588 investigation is closed or ceases to be active. An investigation
589 is considered "active" while the investigation is being
590 conducted with a reasonable, good faith belief that it could
591 lead to the filing of administrative, civil, or criminal
592 proceedings.
593 d. Matters reasonably encompassed in privileged attorney-
594 client communications.
595 e. Proprietary information licensed to the corporation
596 under contract and the contract provides for the confidentiality
597 of such proprietary information.
598 f. All information relating to the medical condition or
599 medical status of a corporation employee which is not relevant
600 to the employee's capacity to perform his or her duties, except
601 as otherwise provided in this paragraph. Information that is
602 exempt includes shall include, but is not limited to,
603 information relating to workers' compensation, insurance
604 benefits, and retirement or disability benefits.
605 g. Upon an employee's entrance into the employee
606 assistance program, a program to assist any employee who has a
607 behavioral or medical disorder, substance abuse problem, or
608 emotional difficulty that affects the employee's job
609 performance, all records relative to that participation are
980307 - h1307-line 490.docx
Published On: 2/22/2022 10:21:06 PM
Page 25 of 31
COMMITTEE/SUBCOMMITTEE AMENDMENT
Bill No. CS/HB 1307 (2022)
Amendment No. 1
610 shall be confidential and exempt from the provisions of s.
611 119.07(1) and s. 24(a), Art. I of the State Constitution, except
612 as otherwise provided in s. 112.0455(11).
613 h. Information relating to negotiations for financing,
614 reinsurance, depopulation, or contractual services, until the
615 conclusion of the negotiations.
616 i. Minutes of closed meetings regarding underwriting
617 files, and minutes of closed meetings regarding an open claims
618 file until termination of all litigation and settlement of all
619 claims with regard to that claim, except that information
620 otherwise confidential or exempt by law must shall be redacted.
621 2. If an authorized insurer is considering underwriting a
622 risk insured by the corporation, relevant underwriting files and
623 confidential claims files may be released to the insurer
624 provided the insurer agrees in writing, notarized and under
625 oath, to maintain the confidentiality of such files. If a policy
626 file is transferred to an insurer, that policy file is no longer
627 a public record because it is not held by an agency subject to
628 the provisions of the public records law. Underwriting files and
629 confidential claims files may also be released to staff and the
630 board of governors of the market assistance plan established
631 pursuant to s. 627.3515, who must retain the confidentiality of
632 such files, except such files may be released to authorized
633 insurers that are considering assuming the risks to which the
634 files apply, provided the insurer agrees in writing, notarized
980307 - h1307-line 490.docx
Published On: 2/22/2022 10:21:06 PM
Page 26 of 31
COMMITTEE/SUBCOMMITTEE AMENDMENT
Bill No. CS/HB 1307 (2022)
Amendment No. 1
635 and under oath, to maintain the confidentiality of such files.
636 Finally, the corporation or the board or staff of the market
637 assistance plan may make the following information obtained from
638 underwriting files and confidential claims files available to an
639 entity that has obtained a permit to become an authorized
640 insurer, a reinsurer that may provide reinsurance under s.
641 624.610, a licensed reinsurance broker, a licensed rating
642 organization, a modeling company, or a licensed general lines
643 insurance agent: name, address, and telephone number of the
644 residential property owner or insured; location of the risk;
645 rating information; loss history; and policy type. The receiving
646 person must retain the confidentiality of the information
647 received and may use the information only for the purposes of
648 developing a take-out plan or a rating plan to be submitted to
649 the office for approval or otherwise analyzing the underwriting
650 of a risk or risks insured by the corporation on behalf of the
651 private insurance market. A licensed general lines insurance
652 agent may not use such information for the direct solicitation
653 of policyholders.
654 3. A policyholder who has filed suit against the
655 corporation has the right to discover the contents of his or her
656 own claims file to the same extent that discovery of such
657 contents would be available from a private insurer in litigation
658 as provided by the Florida Rules of Civil Procedure, the Florida
659 Evidence Code, and other applicable law. Pursuant to subpoena, a
980307 - h1307-line 490.docx
Published On: 2/22/2022 10:21:06 PM
Page 27 of 31
COMMITTEE/SUBCOMMITTEE AMENDMENT
Bill No. CS/HB 1307 (2022)
Amendment No. 1
660 third party has the right to discover the contents of an
661 insured's or applicant's underwriting or claims file to the same
662 extent that discovery of such contents would be available from a
663 private insurer by subpoena as provided by the Florida Rules of
664 Civil Procedure, the Florida Evidence Code, and other applicable
665 law, and subject to any confidentiality protections requested by
666 the corporation and agreed to by the seeking party or ordered by
667 the court. The corporation may release confidential underwriting
668 and claims file contents and information as it deems necessary
669 and appropriate to underwrite or service insurance policies and
670 claims, subject to any confidentiality protections deemed
671 necessary and appropriate by the corporation.
672 4. Portions of meetings of the corporation are exempt from
673 the provisions of s. 286.011 and s. 24(b), Art. I of the State
674 Constitution wherein confidential underwriting files or
675 confidential open claims files are discussed. All portions of
676 corporation meetings which are closed to the public shall be
677 recorded by a court reporter. The court reporter shall record
678 the times of commencement and termination of the meeting, all
679 discussion and proceedings, the names of all persons present at
680 any time, and the names of all persons speaking. No portion of
681 any closed meeting shall be off the record. Subject to the
682 provisions hereof and s. 119.07(1)(d)-(f), the court reporter's
683 notes of any closed meeting shall be retained by the corporation
684 for a minimum of 5 years. A copy of the transcript, less any
980307 - h1307-line 490.docx
Published On: 2/22/2022 10:21:06 PM
Page 28 of 31
COMMITTEE/SUBCOMMITTEE AMENDMENT
Bill No. CS/HB 1307 (2022)
Amendment No. 1
685 exempt matters, of any closed meeting wherein claims are
686 discussed shall become public as to individual claims after
687 settlement of the claim.
688 (ii) The corporation shall revise the programs adopted
689 pursuant to sub-subparagraph (q)3.a. for personal lines
690 residential policies to maximize policyholder options and
691 encourage increased participation by insurers and agents. After
692 January 1, 2017, a policy may not be taken out of the
693 corporation unless the provisions of this paragraph are met.
694 1. The corporation must publish a periodic schedule of
695 cycles during which an insurer may identify, and notify the
696 corporation of, policies that the insurer is requesting to take
697 out. A request must include a description of the coverage
698 offered and an estimated premium and must be submitted to the
699 corporation in a form and manner prescribed by the corporation.
700 2. The corporation must maintain and make available to the
701 agent of record a consolidated list of all insurers requesting
702 to take out a policy. The list must include a description of the
703 coverage offered and the estimated premium for each take -out
704 request.
705 3. If a policyholder receives a take-out offer from an
706 authorized insurer, the risk is no longer eligible for coverage
707 with the corporation unless the premium for coverage from the
708 authorized insurer is more than the following percent greate r
980307 - h1307-line 490.docx
Published On: 2/22/2022 10:21:06 PM
Page 29 of 31
COMMITTEE/SUBCOMMITTEE AMENDMENT
Bill No. CS/HB 1307 (2022)
Amendment No. 1
709 than the renewal premium for comparable coverage from the
710 corporation:
711 a. Four percent for policies effective on or after January
712 1, 2023.
713 b. Eight percent for policies effective on or after
714 January 1, 2024.
715 c. Twelve percent for policies effective on or after
716 January 1, 2025.
717 d. Sixteen percent for policies effective on or after
718 January 1, 2026.
719 e. Twenty percent for policies effective on or after
720 January 1, 2027 and in all subsequent years.
721
722
723 -----------------------------------------------------
724 T I T L E A M E N D M E N T
725 Remove lines 8-38 and insert:
726 dwelling replacement costs; specifying that a registered
727 lobbyist may not be a member of the corporation's board of
728 governors; specifying qualification requirements for certain
729 members of the corporation's board of governors at the time of
730 appointment and reappointment; revising thresholds for
731 determining eligibility of a risk for coverage by the
732 corporation; providing that policyholders removed from the
733 corporation through an assumption agreement do not remain
980307 - h1307-line 490.docx
Published On: 2/22/2022 10:21:06 PM
Page 30 of 31
COMMITTEE/SUBCOMMITTEE AMENDMENT
Bill No. CS/HB 1307 (2022)
Amendment No. 1
734 eligible for coverage from the corporation but may remain on the
735 corporation's policy forms for a specified time for a specified
736 purpose; eliminating costs of reinsurance in rates under certain
737 circumstances; making technical changes; specifying the
738 qualifications for an appointee as the executive director of the
739 corporation; revising circumstances under which
980307 - h1307-line 490.docx
Published On: 2/22/2022 10:21:06 PM
Page 31 of 31
HB 7063
HOUSE OF REPRESENTATIVES STAFF ANALYSIS
BILL #: HB 7063 PCB PIE 22-05 Identification Cards
SPONSOR(S): Public Integrity & Elections Committee, Perez
TIED BILLS: IDEN./SIM. BILLS: SB 144
REFERENCE ACTION ANALYST STAFF DIRECTOR or
BUDGET/POLICY CHIEF
Orig. Comm.: Public Integrity & Elections 18 Y, 0 N Friant Rubottom
Committee
1) Infrastructure & Tourism Appropriations 12 Y, 0 N Hicks Davis
Subcommittee
2) Commerce Committee Johnson Hamon
SUMMARY ANALYSIS
Florida law authorizes any person who is five years of age or older, or any person who has a disability
regardless of age, to be issued an identification card by the Department of Highway Safety and Motor Vehicles
(DHSMV) upon completion of an application and payment of a $25 application fee. Of this amount, $7 is
deposited into the Highway Safety Operating Trust Fund or retained by the county tax collector, and $18 is
deposited into the General Revenue Fund.
Under current law, DHSMV must issue identification cards at no charge to certain persons. This exemption is
limited to applicants who present satisfactory evidence of homelessness, as well as specified juvenile
offenders and prison inmates upon the expiration of their sentence.
The bill adds the following individuals to whom DHSMV must issue a Florida identification card at no charge:
A person who presents a valid Florida voter’s registration card and attests that he or she is
experiencing a financial hardship. DHSMV may not require such persons to present evidence of
financial hardship.
Persons 80 years of age or older whose driving privilege is denied due to failure to pass a vision test.
The bill may have a significant negative fiscal impact on local and state government revenues as a result of
adding these two new statutory fee exemptions relating to the issuance of identification cards. However, it is
unknown how many individuals would qualify for the exemptions. See Fiscal Analysis.
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: h7063b.COM
DATE: 2/21/2022
FULL ANALYSIS
I. SUBSTANTIVE ANALYSIS
A. EFFECT OF PROPOSED CHANGES:
Current Situation
Chapter 322, F.S, governs the issuance of Florida driver licenses and identification cards. Florida
identification cards provide the same reliable photographic identification as Florida driver licenses. In
Florida identification cards are interchangeable with driver licenses for purposes of commercial air
travel, banking, and voter registration.
Florida law authorizes any person who is five years of age or older, or any person who has a disability,
regardless of age, who applies for a disabled parking permit, to be issued an identification card by the
Department of Highway Safety and Motor Vehicles (DHSMV) upon completion of an application and
payment of an application fee.1 The cost for an original, renewal, or replacement identification card is
$25. Of this amount, $7 is deposited into the Highway Safety Operating Trust Fund or retained by the
county tax collector,2 and $18 is deposited into the General Revenue Fund.3
Under Florida law, DHSMV must issue identification cards at no charge to certain persons. The
exemption is limited to applicants who present satisfactory evidence of homelessness, as well as
specified juvenile offenders and prison inmates upon the expiration of their sentence.4
In 2020, Florida ranked second in the nation for the percentage of state population aged 65 or older. At
the time of the last census, it was determined that over 21 percent of Florida citizens are in this
category.5
Florida law requires driver licenses to be renewed every eight years, except drivers who are 80 years or
older are required to renew every six years. Mandatory vision tests are required for drivers 80 years or
older at each renewal.6
Effect of the Bill
The bill adds the following persons to the list of persons to whom DHSMV must issue a Florida
identification card at no charge:
A person who presents a valid Florida voter’s registration card and attests that he or she is
experiencing a financial hardship. DHSMV may not require such persons to present evidence of
financial hardship.
Persons 80 years of age or older whose driving privilege is denied due to failure to pass a vision
test.
The bill authorizes DHSMV to issue a replacement or renewal identification card to registered voters
experiencing financial hardship and prohibits the department from requiring evidence of a financial
hardship.
Finally, the bill would require the DHSMV to issue identification cards to drivers who are 80 years of
age or older and have been denied driving privileges due to failure to pass a vision test. This removes
the identification burden imposed on such Floridians when they lose their driving privilege due to a
vision disability.
The bill has an effective date of July 1, 2022.
1 S. 322.051(1), F.S.
2 This is based on whether DHSMV or the county tax collector issues the identification card.
3 S. 322.21(1)(f), F.S.
.4 s. 322.051(9)
5 https://www.prb.org/resources/which-us-states-are-the-oldest/ (last accessed: Feb. 1, 2022).
6 S. 322.18(2)(a) and (b), F.S.
STORAGE NAME: h7063b.COM PAGE: 2
DATE: 2/21/2022
B. SECTION DIRECTORY:
Section 1: Amends s. 322.051, F.S., relating to identification cards.
Section 2: Amends s. 322.18, F.S., relating to original applications, licenses, and renewals;
expiration of licenses; delinquent licenses.
Section 3: Amends s. 322.21, F.S., relating to license fees.
Section 4: Provides an effective date.
II. FISCAL ANALYSIS & ECONOMIC IMPACT STATEMENT
A. FISCAL IMPACT ON STATE GOVERNMENT:
1. Revenues:
The bill creates two new groups that qualify for the issuance of an identification card at no charge. It
is unknown how many individuals would claim a hardship and seek an identification card at no
charge. For Fiscal Year 2022-2023, DHSMV projects a likely significant decrease in revenues as a
result of these two new statutory fee exemptions: $4.3 million impact to the General Revenue Fund
and $381,794 impact to the Highway Safety Operating Trust Fund. However, these impacts are
indeterminate, as this bill has not been reviewed in an official revenue estimating conference to
determine a consensus cost estimate, and it is indeterminate how many would qualify for a fee
exemption.
2. Expenditures:
None.
B. FISCAL IMPACT ON LOCAL GOVERNMENTS:
1. Revenues:
The creation of the two new groups that can receive an identification card at no charge is projected
to reduce revenues collected by tax collectors by $315,919. This projection is based upon
DHSMV’s calculations as the bill has not been reviewed in an official revenue estimating
conference to determine a consensus cost estimate. It is unknown how many individuals would
claim a hardship and seek an identification card at no charge.
2. Expenditures:
None.
C. DIRECT ECONOMIC IMPACT ON PRIVATE SECTOR:
Individuals who attest to experiencing financial hardship and those at least 80 years of age will benefit
from being able to receive an identification card at no charge to them.
D. FISCAL COMMENTS:
None.
STORAGE NAME: h7063b.COM PAGE: 3
DATE: 2/21/2022
III. COMMENTS
A. CONSTITUTIONAL ISSUES:
1. Applicability of Municipality/County Mandates Provision:
Not applicable.
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.
STORAGE NAME: h7063b.COM PAGE: 4
DATE: 2/21/2022
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 7063 2022
1 A bill to be entitled
2 An act relating to identification cards; amending s.
3 322.051, F.S.; requiring the Department of Highway
4 Safety and Motor Vehicles to issue or renew
5 identification cards at no charge to persons
6 presenting a valid voter's registration card and
7 attesting to financial hardship; prohibiting the
8 department from requiring such persons to present
9 certain evidence; requiring the department to issue
10 identification cards at no charge to certain other
11 persons; conforming cross-references; amending ss.
12 322.18 and 322.21, F.S.; conforming provisions to
13 changes made by the act; providing an effective date.
14
15 Be It Enacted by the Legislature of the State of Florida :
16
17 Section 1. Paragraphs (b), (c), and (d) of subsection (8)
18 and subsection (9) of section 322.051, Florida Statutes, are
19 amended, and subsection (10) is added to that section, to read:
20 322.051 Identification cards.—
21 (8)
22 (b)1. The word "Veteran" must be exhibited on the
23 identification card of a veteran upon the presentation of a copy
24 of the person's:
25 a. DD Form 214, issued by the United States Department of
Page 1 of 8
CODING: Words stricken are deletions; words underlined are additions.
hb7063-00
F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
HB 7063 2022
26 Defense;
27 b. Veteran health identification card, issued by the
28 United States Department of Veterans Affairs;
29 c. Veteran identification card, issued by the United
30 States Department of Veterans Affairs pursuant to the Veterans
31 Identification Card Act of 2015, Pub. L. No. 114-31; or
32 d. Other acceptable form specified by the Department of
33 Veterans' Affairs.
34 2. Until a veteran's identification card is next renewed,
35 the veteran may have the word "Veteran" added to his or her
36 identification card upon surrender of his or her current
37 identification card and presentation of any of the forms of
38 identification specified in subparagraph 1. If the applicant is
39 not conducting any other transaction affecting the
40 identification card, a replacement identification card must be
41 issued with the word "Veteran" without payment of the fee
42 required in s. 322.21(1)(f)3.c. s. 322.21(1)(f)3.
43 (c) The international symbol for the deaf and hard of
44 hearing shall be exhibited on the identification card of a
45 person who is deaf or hard of hearing upon the payment of an
46 additional $1 fee for the identification card and the
47 presentation of sufficient proof that the person is deaf or hard
48 of hearing as determined by the department. Until a person's
49 identification card is next renewed, the person may have the
50 symbol added to his or her identification card upon surrender of
Page 2 of 8
CODING: Words stricken are deletions; words underlined are additions.
hb7063-00
F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
HB 7063 2022
51 his or her current identification card, payment of a $2 fee to
52 be deposited into the Highway Safety Operating Trust Fund, and
53 presentation of sufficient proof that the person is deaf or hard
54 of hearing as determined by the department. If the applicant is
55 not conducting any other transaction affecting the
56 identification card, a replacement identification card may be
57 issued with the symbol without payment of the fee required in s.
58 322.21(1)(f)3.c. s. 322.21(1)(f)3. For purposes of this
59 paragraph, the international symbol for the deaf and hard of
60 hearing is substantially as follows:
61
62
63
64 (d) The department shall include symbols representing the
65 following on an identification card upon the payment of an
66 additional $1 fee by an applicant who meets the requirements of
67 subsection (1) and presents his or her:
68 1. Lifetime freshwater fishing license;
69 2. Lifetime saltwater fishing license;
70 3. Lifetime hunting license;
71 4. Lifetime sportsman's license; or
72 5. Lifetime boater safety identification card.
Page 3 of 8
CODING: Words stricken are deletions; words underlined are additions.
hb7063-00
F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
HB 7063 2022
73
74 A person may replace his or her identification card before its
75 expiration date with a card that includes his or her status as a
76 lifetime licensee or boater safety cardholder upon surrender of
77 his or her current identification card, payment of a $2 fee to
78 be deposited into the Highway Safety Operating Trust Fund, and
79 presentation of the person's lifetime license or card. If the
80 sole purpose of the replacement identification card is the
81 inclusion of the applicant's status as a lifetime licensee or
82 cardholder, the replacement identification card must be issued
83 without payment of the fee required in s. 322.21(1)(f)3.c. s.
84 322.21(1)(f)3.
85 (9)(a) Notwithstanding any other provision of this section
86 or s. 322.21 to the contrary, the department shall issue or
87 renew a card at no charge to:
88 1. A person who presents a valid Florida voter's
89 registration card to the department and attests that he or she
90 is experiencing a financial hardship. The department may not
91 require such person to present evidence of a financial hardship.
92 2. A person who presents evidence satisfactory to the
93 department that he or she is homeless as defined in s.
94 414.0252(7).
95 3., to A juvenile offender who is in the custody or under
96 the supervision of the Department of Juvenile Justice and
97 receiving services pursuant to s. 985.461.
Page 4 of 8
CODING: Words stricken are deletions; words underlined are additions.
hb7063-00
F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
HB 7063 2022
98 4., to An inmate receiving a card issued pursuant to s.
99 944.605(7), or, if necessary, to an inmate receiving a
100 replacement card if the department determines that he or she has
101 a valid state identification card. If the replacement state
102 identification card is scheduled to expire within 6 months, the
103 department may also issue a temporary permit valid for at least
104 6 months after the release date.
105 (b) The department's mobile issuing units shall process
106 the identification cards for juvenile offenders and inmates at
107 no charge, as provided by s. 944.605 (7)(a) and (b).
108 (10) Notwithstanding any other provision of this section
109 or s. 322.21 to the contrary, the department shall issue an
110 identification card at no charge to a person who is 80 years of
111 age or older and whose driving privilege is denied due to
112 failure to pass a vision test administered pursuant to s.
113 322.18(5).
114 Section 2. Paragraph (c) is added to subsection (5) of
115 section 322.18, Florida Statutes, to read:
116 322.18 Original applications, licenses, and renewals;
117 expiration of licenses; delinquent licenses.—
118 (5) All renewal driver licenses may be issued after the
119 applicant licensee has been determined to be eligible by the
120 department.
121 (c) The department shall issue an identification card
122 under s. 322.051 at no charge to a licensee who is at least 80
Page 5 of 8
CODING: Words stricken are deletions; words underlined are additions.
hb7063-00
F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
HB 7063 2022
123 years of age and whose driving privilege is denied due to
124 failure to pass a vision test pursuant to this subsection.
125 Section 3. Paragraph (f) of subsection (1) of sectio n
126 322.21, Florida Statutes, is amended to read:
127 322.21 License fees; procedure for handling and collecting
128 fees.—
129 (1) Except as otherwise provided herein, the fee for:
130 (f) An original, renewal, or replacement identification
131 card issued pursuant to s. 322.051 is $25.
132 1., except that An applicant who meets any of the
133 following criteria is exempt from the fee under this paragraph
134 for an original, renewal, or replacement identification card:
135 a. The applicant presents a valid Florida voter's
136 registration card to the department and attests that he or she
137 is experiencing a financial hardship.
138 b. The applicant presents evidence satisfactory to the
139 department that he or she is homeless as defined in s.
140 414.0252(7).
141 c. The applicant presents evidence satisfactory to the
142 department that; his or her annual income is at or below 100
143 percent of the federal poverty level.
144 d. The applicant; or he or she is a juvenile offender who
145 is in the custody or under the supervision of the Department of
146 Juvenile Justice, who is receiving services pursuant to s.
147 985.461, and whose identification card is issued by the
Page 6 of 8
CODING: Words stricken are deletions; words underlined are additions.
hb7063-00
F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
HB 7063 2022
148 department's mobile issuing units is exempt from such fee.
149 2. Pursuant to s. 322.051(10), an applicant who is 80
150 years of age or older and whose driving privilege is denied due
151 to failure to pass a vision test administered pursuant to s.
152 322.18(5) is exempt from the fee under this paragraph for an
153 original identification card.
154 3. Funds collected from fees for original, renewal, or
155 replacement identification cards shall be distributed as
156 follows:
157 a.1. For an original identification card issued pursuant
158 to s. 322.051, the fee shall be deposited into the General
159 Revenue Fund.
160 b.2. For a renewal identification card issued pursuant to
161 s. 322.051, $6 shall be deposited into the Highway Safety
162 Operating Trust Fund, and $19 shall be deposited into the
163 General Revenue Fund.
164 c.3. For a replacement identification card issued pursuant
165 to s. 322.051, $9 shall be deposited into the Highway Safety
166 Operating Trust Fund, and $16 shall be deposited into the
167 General Revenue Fund. Beginning July 1, 2015, or upon completion
168 of the transition of the driver license issuance services, if
169 the replacement identification card is issued by the tax
170 collector, the tax collector shall retain the $9 that would
171 otherwise be deposited into the Highway Safety Operating Trust
172 Fund and the remaining revenues shall be deposited into the
Page 7 of 8
CODING: Words stricken are deletions; words underlined are additions.
hb7063-00
F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
HB 7063 2022
173 General Revenue Fund.
174 Section 4. This act shall take effect July 1, 2022.
Page 8 of 8
CODING: Words stricken are deletions; words underlined are additions.
hb7063-00
PCS for CS/HB 67
HOUSE OF REPRESENTATIVES STAFF ANALYSIS
BILL #: PCS for CS/HB 67 Specialty License Plates
SPONSOR(S): Commerce Committee
TIED BILLS: IDEN./SIM. BILLS:
REFERENCE ACTION ANALYST STAFF DIRECTOR or
BUDGET/POLICY CHIEF
Orig. Comm.: Commerce Committee Johnson Hamon
SUMMARY ANALYSIS
Currently, 123 specialty license plates and one motorcycle specialty license plate are available to any owner or
lessee of a motor vehicle who is willing to pay the additional annual use fee for such plate. The collected fees
are distributed by the Department of Highway Safety and Motor Vehicles (DHSMV) to statutorily designated
organizations in support of a particular cause or charity.
The bill creates the following new specialty license plates:
Inter Miami CF
Florida Swims
Down Syndrome Awareness
Gopher Tortoise
Take Stock in Children
The bill also creates a Blue Angels motorcycle specialty license plate.
The bill establishes the authorized uses of the annual use fees from the sale of these plates.
The bill also amends the authorized distribution of proceeds from the existing Live the Dream specialty license
plate.
According to the DHSMV, the bill may have a negative, but insignificant, fiscal impact associated with
programming costs. These costs can be absorbed within existing resources.
The bill has an effective date of October 1, 2022.
This docum ent does not reflect the intent or official position of the bill sponsor or House of Representatives .
STORAGE NAME: pcs0067.COM
DATE: 2/21/2022
FULL ANALYSIS
I. SUBSTANTIVE ANALYSIS
A. EFFECT OF PROPOSED CHANGES:
Current Situation
The first Florida specialty license plates were created by law in 1986 and included the creation of the
Challenger plate and ten Florida collegiate plates. Today, there are 159 legislatively authorized
specialty license plates, with 123 available for sale and an additional 36 in presale. 1 Specialty license
plates are available to any owner or lessee of a motor vehicle who is willing to pay the additional use
fee for the privilege, typically $25 annually.2 Current law provides that if the Legislature3 has approved
150 or more specialty license plates, the Department of Highway Safety and Motor Vehicles (DHMSV)
may not issue any new specialty license plates until a sufficient number of plates are discontinued 4 so
that the number of plates being issued does not exceed 150. 5
Establishment of Specialty License Plates
If a specialty license plate requested by an organization is approved by law, the organization submits
its proposed art design to DHSMV as soon as practicable, but no later than 60 days after the act
approving the plate becomes a law.6
Within 120 days after the act approving the specialty license plate becomes law, DHSMV must
establish a method to issue a voucher allowing for the presale of the plate. A $5 processing fee, 7 a
service charge and branch fee,8 and an annual use fee for the specialty license plate are charged for
the voucher. All other applicable fees are charged at the time the license plate is issued. 9
Within 24 months after establishing a presale specialty license plate voucher, a minimum of 3,000
voucher sales of the plate must be recorded with DHSMV10 before the license plate may be
manufactured. If the minimum sales requirement is not met at the conclusion of the 24-month presale
period, the specialty license plate is deauthorized and DHSMV discontinues the plate’s development
and the issuance of presale vouchers. Upon deauthorization of the license plate or if the plate has met
the presale requirement but has not been issued, a purchaser of the license plate voucher may use the
annual use fee paid as a credit towards any other specialty license plate or may apply for a refund.11
New specialty license plates that have been approved by law, but are awaiting issuance, will be issued
in the order they appear in s. 320.08058, F.S.,12 if all statutory requirements, including the presale
requirement, have been met. If the next awaiting specialty license plate has not met its presale
requirement, DHSMV proceeds in the order provided in s. 320.08058, F.S., to identify the next qualified
specialty license plate that has met the presale requirement. DHSMV must cycle through the list in
statutory order.13
If the Legislature has approved 150 or more specialty license plates, DHSMV may not issue any new
specialty license plates until a sufficient number of plates are discontinued so that the number of plates
1 Department of Highway Safety and Motor Vehicles (DHSMV), Agency Analysis of 2022 Senate Bill 364, p.2. (Oct. 15, 2021)
2
Section 320.08056(3)(d), F.S., provides that, except if specifically provided in s. 320.08056(4), F.S., the annual use fee fo r a specialty
license plate is $25.
3 Creation of a specialty license plate requires an act of the Legislature.
4 Specialty licens e plates may be discontinued pursuant to s. 320.08056(8), F.S.
5 S. 320.08053(3)(b), F.S.
6 S. 320.08053(1), F.S.
7 The processing fee is prescribed in s. 320.08056, F.S.
8 Service charges and branch fees are prescribed in s. 320.04, F.S.
9 S. 320.08053(2)(a), F.S.
10 In the case of an out-of-state college or university license plate, the license plate must register 4,000 voucher sales.
11 S. 320.08053(2)(b), F.S.
12 S. 320.08058, F.S., creates each specialty license plate.
13 S. 320.08053(3)(a), F.S.
STORAGE NAME: pcs0067.COM PAGE: 2
DATE: 2/21/2022
being issued is no more than 150. The 150-plate limit applies to all specialty license plates, including
those above the minimum sales threshold and those exempt from the minimum sales threshold. 14
Specialty License Plate Issuance and Fees
DHSMV is responsible for developing authorized specialty license plates. 15 DHSMV must issue a
specialty license plate to the owner or lessee of any motor vehicle, except a vehicle registered under
the International Registration Plan, a commercial truck required to display two license plates, or a truck
tractor, upon request and payment of the appropriate license tax and fees. 16 Specific specialty license
plates are authorized for dealer and fleet vehicles.17 A specialty license plate for motorcycles is created
separately in s. 320.08068, F.S.
Each request for a specialty license plate must be made annually to DHSMV or its authorized agent 18
accompanied by the following tax and fees: the vehicle’s required license tax, 19 a processing fee of
$5,20 a license plate fee,21 and a license plate annual use fee as required for the specialty license
plate.22
Live the Dream Specialty License Plate
Current Situation
Current law creates the Live the Dream license plate with an annual use fee of $25. 23 The word
“Florida” appears at the top of the plate, and the words “Live the Dream” appear at the bottom of the
plate. An image of an American flag and Dr. Martin Luther King, Jr., appears at the center of the plate. 24
The proceeds from the sale of the Live the Dream license plate are distributed to the Dream
Foundation, Inc., to be used in the following manner:
Up to five percent may be used to administer, promote, and market the license plate.
At least 60 percent is distributed equally among the sickle cell organizations that are Florida
members of the Sickle Cell Disease Association of America, Inc., for programs that provide
research, care, and treatment for sickle cell disease.
At least 30 percent is distributed to Chapman Partnership, Inc., 25 for programs that provide relief
from poverty, hunger, and homelessness.
Up to five percent may be distributed by DHSMV on behalf of The Dream Foundation, Inc., to
The Martin Luther King, Jr. Center for Nonviolent Social Change, Inc., as a royalty for the use of
the image of Dr. Martin Luther King, Jr.26
In 2020, 5,292 Live the Dream license plates were sold. 27
The distribution of proceeds from the sale of the Live the Dream license plate were last amended in
2020.28
14
S. 320.08053(3)(b), F.S.
15 S. 320.08056(1), F.S.
16 S. 320.08056(2), F.S.
17 See ss. 320.06(3)(a), 320.0657(2)(a), 320.08(12) and 320.08056(2)(b) and (c), F.S.
18 DHSMV’s authorized agents are the county tax collectors.
19
Motor vehicle license taxes are set forth in s. 320.08, F.S.
20 The $5 processing fee is deposited into the Highway Safety Operating Trust Fund.
21 Section 320.06(1)(b), F.S., provides for a $2.80 annual license plate replacement fee.
22 S. 320.08056(3), F.S.
23 The $25 annual use fee is provided for in s. 320.08056(3)(d), F.S.
24 A photo of the Live the Dream license plate is available at https://www.flhsmv.gov/motor -vehicles-tags-titles/personalized-specialty-
license-plates/specialty-license-plates/ (last visited Oct. 20, 2021).
25 Based in Miami, Chapman Partnership’s mission is to provide comprehensive programs and services in collaboration with others that
empower our residents with dignity and respect to overcome homelessness, and achieve and maintain long -term self-sufficiency.
https://chapmanpartnership.org/about/ (last visited Nov. 22, 2021).
26 S. 320.08058(47)(b), F.S.
27 DHSMV, 2020 Specialty License Plate Ranking, https://www.flhsmv.gov/pdf/specialtyplates/license_plate_rankings.pdf (last visited
Nov. 22, 2021).
STORAGE NAME: pcs0067.COM PAGE: 3
DATE: 2/21/2022
Founded in 2001 around the creation of the Live the Dream license plate, the Dream Foundation, Inc.,
(foundation) is a statewide 501(c)(3) organization.29 The Dream Foundation, Inc., is listed as an active
corporation with the Department of State.30
Effect of the Bill
The bill revises the authorized uses of proceeds from the sale of the Live the Dream license plate. The
bill provides that the annual use fees distributed to the Dream Foundation, Inc. must be used in the
following manner:
Up to 10 percent may be used to promote and market the license plate and for costs directly
associated with the administration of the foundation.
At least 40 percent must be distributed equally among the sickle cell organizations that are
Florida members of the Sickle Cell Disease Association of America, Inc., for programs that
provide research, care, and treatment for sickle cell disease.
At least 10 percent must be used for programs and services provided directly by the foundation,
which assists inmates released from the custody of a county jail in this state or a Department of
Corrections (DOC) facility in successfully reentering the community.
At least 15 percent must be distributed as grants for programs and services throughout Florida
which assist inmates released form a county jail in the state or a DOC facility in successfully
reentering the community.
At least 20 percent must be distributed as scholarships to Florida high school seniors who have
at least parent or legal guardian incarcerated, for the purposes of attending a state university, a
Florida College System institution, a career center operated by a school district, or a charter
technical career center.
Up to five percent may continue to be distributed by the Department of Highway Safety and Motor
Vehicles on behalf of the Dream Foundation, Inc., to The Martin Luther King, Jr. Center for Nonviolent
Social Change, Inc., as a royalty for the use of the image of Dr. Martin Luther King, Jr. This is the same
as in current law.
The bill eliminates the distribution to the Chapman Partnership, Inc.
Blue Angels Motorcycle Specialty License Plate
Current Situation
Motorcycle Specialty License Plates
Current law authorizes a reduced dimensions specialty license plate for display on motorcycles, upon
paying the appropriate license tax,31 the license plate fee,32 a $2 processing fee, and a $20 license
plate annual use fee.33
The annual use fees are distributed equally to the Brain and Spinal Cord Injury Program Trust Fund,
Preserve Vision Florida, the Blind Services Foundation of Florida, the Florida Association of Centers for
Independent Living to support the James Patrick Memorial Work Incentive Personal Attendant Services
and Employment Assistance Program, and the Florida Association of Centers for Independent Living. 34
28 Ch. 2020-181, Laws of Fla.
29 The Dream Foundation, Ab out Us, https://www.livethedreamfoundation.org/about-us.html (last visited Oct. 20, 2021).
30 Department of State,
https://search.sunbiz.org/Inquiry/CorporationSearch/SearchResultDetail?inquirytype=EntityName&direc tionType=Initial&searchNameOr
der=DREAMFOUNDATION%20N010000038910&aggregateId=domnp -n01000003891-2461ac21-eb6a-411a-b759-
47d16568ca4b&searchTerm=Dream%20foundation&listNameOrder=DREAMFOUNDATION%20N010000038910 (last visited Oct. 22,
2021).
31 The license tax is required under s. 320.08, F.S.
32 The license plate fee is required under s. 320.06(1)(b), F.S.
33 S. 320.08068, F.S.
34 S. 320.08068(4), F.S.
STORAGE NAME: pcs0067.COM PAGE: 4
DATE: 2/21/2022
Blue Angels Specialty License Plate
Current law creates a Blue Angels license plate with an annual use fee of $25.The plate must bear
DHSMV-approved colors and design. The word “Florida” must appear at the top of the plate, and the
words “Home of the Blue Angels” must appear at the bottom of the plate.35
The annual use fees from the sale of the Blue Angels license plate is distributed to the Naval Aviation
Museum Foundation, a nonprofit Florida corporation under s. 501(c)(3) of the Internal Revenue Code,
to fund the maintenance, programs, marketing, and projects of the foundation, including the National
Naval Aviation Museum and the National Flight Academy in Pensacola. Up to 10 percent of the funds
received by the Naval Aviation Museum Foundation may be used for marketing of the plate and costs
directly associated with the administration of the foundation. The Naval Aviation Museum Foundation
must distribute 50 percent of the funds to eligible programs and projects associated with the National
Flight Academy and the remainder of the funds to eligible programs and projects associated with the
National Naval Aviation Museum.36
Distribution of Blue Angels Annual Use Fees
Since 1946, and based in Pensacola, the Blue Angels represent the United States Navy and Marine
Corps by showing the power of naval aviation. The Blue Angels consists of 140 world-class, active-duty
sailors and Marines, each one bringing experience and expertise from their service in the fleet.37
The Naval Aviation Museum Foundation supports the National Naval Aviation Museum and National
Flight Academy, which advance science, technology, engineering and math (STEM) education for our
nation’s youth. The foundation promotes the history and heritage of naval aviation for current and future
generations.38
The Naval Aviation Museum Foundation, Inc. is registered with the Department of State as a Florida
not-for-profit corporation.39
The National Flight Academy, a subsidiary of the Naval Aviation Museum Foundation, has the mission
to inspire students who subsequently return to their parent schools and seek out the more challenging
courses in science, technology, engineering, and math.40
Effect of the Bill
The bill creates a motorcycle specialty license plate option for the Blue Angels specialty license plate
with an annual use fee of $25.41 Any department-approved image must be placed on the far-left side of
a plate for display on a motorcycle, and the number of valid plates issued for display on a motor vehicle
or on a motorcycle must be added together to determine whether the plate must be discontinued.
Proceeds from the sale of the Blue Angels motorcycle specialty license plate are distributed to the
National Aviation Museum Foundation to be used in the same manner as the proceeds from the sale of
the existing Blue Angels specialty license plate for motor vehicles.
35 S. 320.08058(79), F.S.
36
S. 320.08058(79(b), F.S.
37 Blue Angels Website, Message from the Commanding Officer, https://www.blueangels.navy.mil/default.htm (last visited Oct. 28,
2021).
38 Naval Aviation Museum Foundation, Who We Are, https://navalaviationfoundation.org/who-we-are/ (last visited Oct. 14, 2021)
39 Department of State, The Naval Aviation Museum Foundation, Inc.,
https://search.sunbiz.org/Inquiry/CorporationSearch/SearchResultDetail?inquirytype=EntityName&directionType=Initial&searchNam eOr
der=NAVALAVIATION MUSEUMFOUNDATION%207119151&aggregateId=domnp -711915-5404ccba-a444-4087-baa7-
806a7f12e637&searchTerm=Naval%20Aviation&listNameOrder=NAVALAVIATIONLEGAC YFOUNDATION%20N060000061800 (last
visited Oct. 18, 2021).
40 National Flight Academy, Ab out the National Flight Academy, https://www.nationalflightacademy.com/about/about-the-nfa/ (last
visited Dec. 2, 2022).
41 The annual use fee is tied to s. 320.08056(3)(d), F.S., which provides that unless otherwise provided in 320.08056(4), F.S., the
annual use fee for a specialty license plate is $25.
STORAGE NAME: pcs0067.COM PAGE: 5
DATE: 2/21/2022
Inter Miami CF Specialty License Plate
Current Situation
Florida Professional Sports Team License Plates
Current law establishes the Florida Professional Sports Team license plate for Major League Baseball,
National Basketball Association, National Football League, Arena Football League, National Hockey
League, and Major League Soccer teams that are domiciled in Florida. However, any Florida
Professional Sports Team license plate created or established after January 1, 1997, must be
specifically authorized by the Legislature. These license plates must bear DHSMV-approved colors and
design and must include the official league or team logo, or both. The word “Florida” must appear at the
top of the plate.42
The annual use fees from the sale of these plates are distributed as follows:
Fifty-five percent of the proceeds are deposited into the Professional Sports Development Trust
Fund within the Department of Economic Opportunity (DEO) to be used solely to attract and
support major sports events in Florida.43
The remaining proceeds are allocated to Enterprise Florida, Inc., and must be deposited into the
Professional Sports Development Trust Fund within DEO. These funds must be used by Enterprise
Florida, Inc., to:
o Promote the economic development of the sports industry;
o Distribute licensing and royalty fees to participating professional sports teams;
o Promote education programs in Florida schools that provide an awareness of the benefits of
physical activity and nutrition standards;
o Partner with the Department of Education and the Department of Health to develop a
program that recognizes schools whose students demonstrate excellent physical fitness or
fitness improvement;
o Institute a grant program for communities bidding on minor sporting events that create an
economic impact for the state;
o Distribute funds to Florida-based charities designated by Enterprise Florida, Inc., and the
participating professional sports teams; and
o Fulfill the sports promotion responsibilities of DEO. 44
The proceeds from the Professional Sports Development Trust Fund may also be used for operational
expenses of Enterprise Florida, Inc., and financial support of the Sunshine State Games.45
Inter Miami CF
Inter Miami CF, Major League Soccer’s 25th Club, began play in March 2018.46
According to its website, the Inter Miami CF Foundation, a 501(c)(3) nonprofit corporation, is dedicated
to having a measurable impact on the community in South Florida and beyond by seeking to level the
playing field for at-risk kids. It intends to use soccer as a catalyst for positive change. The Foundation
states that it is dedicated to strategically planning and executing “sports-based development and direct-
service community programs, initiatives, and events.” 47
42 S. 320.08058(9)(a), F.S.
43 As used in s. 320.08058(9)(b)1., F.S., the term “major sports events” means, but is not limited to, championship or all -star contests of
Major League Baseball, the National Basketball Association, the National Football League, the National Hockey League, Major L eague
Soccer, the men's and women's National Collegiate Athletic Association Final Four basketball championship, or a horseracing or
dogracing Breeders' Cup.
44 S. 320.08058(9)(b)1. and 2., F.S.
45 S. 320.08058(9)(b)4., F.S.
46 Inter Miami CF Website, https://www.intermiamicf.com/club/about (las t visited Sep. 2, 2021).
47 Inter Miami CF Foundation, https://inter-miami-cf-foundation-store.myshopify.com/ (last visited Sep. 2, 2021).
STORAGE NAME: pcs0067.COM PAGE: 6
DATE: 2/21/2022
According to the Department of State, Inter Miami CF Foundation is an active Florida not-for-profit
corporation that has been active since February 12, 2020.48
Effect of the Bill
The bill creates the Florida Inter Miami CF license plate with an annual use fee of $25. The plate must
bear the DHSMV-approved colors and design. The word “Florida” appears at the top of the plate and
“Inter Miami CF” appears at the bottom of the plate.
The annual use fees are distributed to the Inter Miami CF Foundation Corporation, to be used as
follows:
Up to ten percent to promote and market the plate; and
The remainder to plan and execute sports-based development and direct-service community
programs, initiatives, and events in this state.
Florida Swims Specialty License Plate
Current Situation
The Swimming Pool Education and Safety Foundation, Inc., also known as Florida Swims
Foundation,49 is a nonprofit organization that funds swimming lessons and distributes safety information
throughout the state. The foundation awards scholarships to college students and provides grants for
swimming lessons. The foundation also collaborates with local organizations, such as the YMCA and
Boys & Girls Clubs, to bring water safety measures and swimming lessons to families with young
children.50
Effect of the Bill
The bill creates the Florida Swims license plate with an annual use fee of $25. The plate must bear the
DHSMV-approved colors and design. The word “Florida” appears at the top of the plate and “Swim for
Life” appears at the bottom of the plate.
The annual use fees are distributed to the Swimming Pool Education and Safety Foundation, Inc.,
doing business as Florida Swims, to be used as follows:
Up to ten percent for administration, promotion, and marketing of the plate; and
The remainder to be used by the Swimming Pool Education and Safety Foundation, Inc., to
promote swimming pool and water safety and to provide grants and scholarships for childhood
swimming lessons in this state.
Down Syndrome Awareness Specialty License Plate
Current Situation
Based in Sanford, Florida, Our City Beautiful, Inc., is a 501(c)(3) non-profit organization with a focus on
working with disabled individuals in Sanford and surrounding Seminole County, with the goal of
eventually serving all of Florida.51 Created by Our City Beautiful, HOLLAND is a proposed tiny house
community for persons with Down Syndrome and other intellectual disabilities. 52 Its World Changer
48 Inter Miami CF Foundation Corporation, Articles of Incorporation,
https://search.sunbiz.org/Inquiry/CorporationSearch/ConvertTiffToPDF?storagePath=COR%5C2020%5C0214%5C40715676.Tif&docu
mentNumber=P20000013003 (last visited Oct. 18, 2021)
49 Department of State, Sunbiz.org, Detail by Entity Name, Swimming Pool Education And Safety Foundation Inc., Document No.
N07000000242.
50 Florida Swimming Pool Association, SPESF, https://floridapoolpro.portals7.gomembers.com/About/FloridaSwimsFoundation.aspx
(last visited Feb. 19, 2022).
51 Seminole County Chamber of Commerce, Our City Beautiful, Inc., https://business.seminolebusiness.org/list/member/our-city-
beautiful-inc-25389 (last visited Sep. 30, 2021).
52 Our City Beautiful, HOLLAND, https://our-city-beautiful.com/ocbhomeproject/ (last visited Sep. 30, 2021).
STORAGE NAME: pcs0067.COM PAGE: 7
DATE: 2/21/2022
Scholarships were created to support individuals with Down Syndrome, age 18 or older, pursuing
higher education.53
Our City Beautiful, Inc., is registered with the Department of State as a not-for-profit corporation.54
Effect of the Bill
The bill creates the Down Syndrome Awareness license plate with an annual use fee of $25. The l plate
must bear DHSMV-approved colors and design. The word “Florida” appears at the top of the plate, and
“Down Syndrome Awareness” appears at the bottom of the plate.
The annual use fees are distributed Our City Beautiful, Inc., to be used as follows:
Up to ten percent for administrative costs and marketing of the plate;
50 percent to build and maintain HOLLAND, an affordable housing project for independent living
for persons with Down syndrome or other intellectual disability;
15 percent for Our City Beautiful World Changer scholarships for Florida residents 18 years of
age or older with Down syndrome who wish to further their education at postsecondary
educational institutions located in this state; and
35 percent for grants to other nonprofit organizations within this state to support housing,
educational scholarships, and employment assistance programs for persons with Down
syndrome or other intellectual disability.
Gopher Tortoise Specialty License Plate
Current Situation
Wildlands Conservation, Inc., is a nonprofit organization specializing in conservation planning and
policy, land management, land protection, research, education, and outreach. 55
Wildlands Conservation, Inc., offers gopher tortoise survey, relocation, and recipient site services. It is
committed to ensuring that gopher tortoise work is conducted thoroughly and professionally to protect
gopher tortoises and related species across the state. Its staff has over 50 collective years of
experience in gopher tortoise conservation including ecological and policy research, permitting,
relocation, habitat management, monitoring, and training. 56
Effect of the Bill
The bill creates the Gopher Tortoise license plate with an annual use fee of $25. The license plate must
bear the DHSMV-approved colors and design. The word “Florida” appears at the top of the plate and
“Protect the Gopher Tortoise” appears at the bottom of the plate.
The annual use fees are distributed to Wildlands Conservation, Inc., to be used as follows:
Up to 10 percent for marketing of the plate and costs directly associated with administration of
its gopher tortoise protection program; and
The remainder to be used by Wildlands Conservation, Inc., and distributed to eligible Florida-
based scientific, conservation, and educational organizations for gopher tortoise, commensal
species, and upland habitat research, conservation, and management.
53 Our City Beautiful, World Changer Scholarships, https://our-city-beautiful.com/world-changer-scholarship/ (last visited Sep. 30, 2021)
54 Department of State, Our City Beautiful, Inc.
https://search.sunbiz.org/Inquiry/CorporationSearch/SearchResultDetail?inquirytype=EntityName&directionType=Initial&searchNameOr
der=OURCITYBEAUTIFUL%20N190000028900&aggregateId=domnp -n19000002890-9f97c1a8-17e2-49f3-a4c9-
b30fff938143&searchTerm=Our%20city%20beautiful&listNameOrder=OURCITYBEAUTIFUL%20N190000028900 (last visited Oct. 18,
2021).
55 Wildland Conservation, Ab out Us, https://wildlandsconservation.org/about-us/ (last visited Feb. 18, 2022). Department of State,
Sunbiz.org, Detail by Entity Name, Wildlands Conservation, Inc., Document No. N03000002778.
56 Wildlands Conservation, Gopher Tortoise Conservation, https://wildlandsconservation.org/gopher-tortoise-conservation/, (last visited
Feb. 18, 2022).
STORAGE NAME: pcs0067.COM PAGE: 8
DATE: 2/21/2022
Take Stock in Children Specialty License Plate
Current Situation
Established in 1995, Take Stock in Children of Florida is a Florida non-profit organization that provides
a unique opportunity for low-income youth to escape the cycle of poverty through education. It offers
underserved students one-on-one support through volunteer mentors, professional college success
services, the opportunity to earn a college scholarship, and hope for success in college, career, and
life.57
Effect of the Bill
The bill creates a Take Stock in Children license plate with an annual use fee of $25. The license plate
must bear the DHSMV-approved colors and design. The word “Florida” appears at the top of the plate
and “Take Stock in Children” appears at the bottom of the plate.
The annual use fees are distributed to Take Stock in Children of Florida, to be used as follows:
Up to 10 percent for administrative costs and marketing the plate.
The remainder, with approval of its board of directors, to promote and support programs that
provide mentorship for at risk students.
The above license plates will be added to DHSMV’s presale voucher process, but a plate will only be
placed into production once it meets the 3,000 minimum sales threshold and if the 150-plate cap has
not yet been reached.58
The bill has an effective date of October 1, 2022.
B. SECTION DIRECTORY:
Section 1 Amends s. 320.08058, F.S., relating to specialty license plates.
Section 2 Provides a contingent effective date.
II. FISCAL ANALYSIS & ECONOMIC IMPACT STATEMENT
A. FISCAL IMPACT ON STATE GOVERNMENT:
1. Revenues:
None.
2. Expenditures:
DHSMV advised an update to internal procedures and instructions to organizations regarding
specialty license plate requirements will be needed; however, there will be no programming costs
incurred by the DHSMV.59
Programming will be required initially to allow DHSMV to accept vouchers, but the DHSMV may not
finalize a design or issue the new license plate if the 150 cap is reached prior to the license plate
selling 2,500 vouchers. The amount of programming is determined by the number of plates and the
number of distributions per plate.
B. FISCAL IMPACT ON LOCAL GOVERNMENTS:
57 Take Sock in Children Website, https://www.takestockinchildren.org/ (last visited Feb. 18, 2022).
58 DSHMV, supra note 1. p. 4.
59 Id.
STORAGE NAME: pcs0067.COM PAGE: 9
DATE: 2/21/2022
1. Revenues:
None.
2. Expenditures:
None.
C. DIRECT ECONOMIC IMPACT ON PRIVATE SECTOR:
Once a specialty license plate goes into production, organizations authorized for a distribution from the
proceeds of the sale of the license plate will benefit.
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:
This bill does not authorize or require rulemaking.
C. DRAFTING ISSUES OR OTHER COMMENTS:
None.
IV. AMENDMENTS/COMMITTEE SUBSTITUTE CHANGES
Not applicable.
STORAGE NAME: pcs0067.COM PAGE: 10
DATE: 2/21/2022
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
PCS for CS/HB 67 2022
1 A bill to be entitled
2 An act relating to specialty license plates; amending
3 s. 320.08058, F.S.; revising annual use fee
4 distributions from the sale of the Live the Dream
5 license plate; providing for the award of scholarships
6 to certain students through a competitive application
7 process; providing for fiscal oversight by a certified
8 public accounting firm; requiring the department to
9 develop a Blue Angels motorcycle specialty license
10 plate; specifying a design requirement for the plate;
11 requiring that the number of valid Blue Angels motor
12 vehicle and motorcycle specialty license plates be
13 added together for purposes of a certain
14 determination; requiring the Department of Highway
15 Safety and Motor Vehicles to develop specified
16 specialty license plates; providing for distribution
17 and use of fees collected from the sale of such
18 plates; providing an effective date.
19
20 Be It Enacted by the Legislature of the State of Florida:
21
22 Section 1. Subsections (47) and (79) of section 320.08058,
23 Florida Statutes, are amended, and subsections (119) through
24 (123) are added to that section, to read:
25 320.08058 Specialty license plates.—
Page 1 of 8
PCS for CSHB 67.DOCX
CODING: Words stricken are deletions; words underlined are additions.
V
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
PCS for CS/HB 67 2022
26 (47) LIVE THE DREAM LICENSE PLATES.—
27 (a) The department shall develop a Live the Dream license
28 plate as provided in this section. Live the Dream license plates
29 must bear the colors and design approved by the department. The
30 word "Florida" must appear at the top of the plate, and the
31 words "Live the Dream" must appear at the bottom of the plate.
32 (b) The proceeds of the annual use fee shall be
33 distributed to the Dream Foundation, Inc., to be used in the
34 following manner:
35 1. Up to 5 percent may be used to administer, promote, and
36 market the license plate.
37 2. At least 40 60 percent shall be distributed equally
38 among the sickle cell organizations that are Florida members of
39 the Sickle Cell Disease Association of America, Inc., for
40 programs that provide research, care, and treatment for sickle
41 cell disease.
42 3. At least 10 percent shall be used for programs and
43 services provided directly by the Dream Foundation, Inc., which
44 assist inmates released from the custody of a county jail in
45 this state or a Department of Corrections facility in
46 successfully reentering the community.
47 4. At least 15 percent shall be distributed as grants for
48 programs and services throughout this state which assist inmates
49 released from the custody of a county jail in this state or a
50 Department of Corrections facility in successfully reentering
Page 2 of 8
PCS for CSHB 67.DOCX
CODING: Words stricken are deletions; words underlined are additions.
V
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
PCS for CS/HB 67 2022
51 the community.
52 5. At least 25 30 percent shall be distributed as
53 scholarships to graduating high school seniors in this state who
54 have at least one parent or legal guardian who is incarcerated,
55 for the purpose of attending a state university, a Florida
56 College System institution, a career center operated by a school
57 district under s. 1001.44, or a charter technical career center
58 under s. 1002.34. Scholarships shall be awarded through a
59 competitive application process to Chapman Partnership, Inc.,
60 for programs that provide relief from poverty, hunger, and
61 homelessness.
62 6.4. Up to 5 percent may be distributed by the department
63 on behalf of the Dream Foundation, Inc., to The Martin Luther
64 King, Jr. Center for Nonviolent Social Change, Inc., as a
65 royalty for the use of the image of Dr. Martin Luther King, Jr.
66 (79) BLUE ANGELS LICENSE PLATES.—
67 (a) The department shall develop a Blue Angels license
68 plate for display on a motor vehicle and for display on a
69 motorcycle as provided in this section and s. 320.08053. The
70 plate must bear the colors and design approved by the
71 department. The word "Florida" must appear at the top of the
72 plate, and the words "Home of the Blue Angels" must appear at
73 the bottom of the plate. Any department-approved image must be
74 placed on the far left side of a plate for display on a
75 motorcycle.
Page 3 of 8
PCS for CSHB 67.DOCX
CODING: Words stricken are deletions; words underlined are additions.
V
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
PCS for CS/HB 67 2022
76 (b) The annual use fees from the sale of the plate shall
77 be distributed to the Naval Aviation Museum Foundation, a
78 nonprofit Florida corporation under s. 501(c)(3) of the Internal
79 Revenue Code, to fund the maintenance, programs, marketing, and
80 projects of the foundation, including the National Naval
81 Aviation Museum and the National Flight Academy in Pensacola. Up
82 to 10 percent of the funds received by the Naval Aviation Museum
83 Foundation may be used for marketing of the plate and costs
84 directly associated with the administration of the foundation.
85 The Naval Aviation Museum Foundation shall distribute 50 percent
86 of the funds to eligible programs and projects associated with
87 the National Flight Academy and the remainder of the funds to
88 eligible programs and projects associated with the National
89 Naval Aviation Museum.
90 (c) The number of valid specialty license plates issued
91 for display on a motor vehicle or on a motorcycle must be added
92 together to determine whether the specialty license plate must
93 be discontinued pursuant to s. 320.08056(8)(a).
94 (119) INTER MIAMI CF LICENSE PLATES.—
95 (a) The department shall develop an Inter Miami CF license
96 plate as provided in this section and s. 320.08053. The plate
97 must bear the colors and design approved by the department. The
98 word "Florida" must appear at the top of the plate, and the
99 words "Inter Miami CF" must appear at the bottom of the plate.
100 (b) Notwithstanding paragraph (9)(b), the annual use fees
Page 4 of 8
PCS for CSHB 67.DOCX
CODING: Words stricken are deletions; words underlined are additions.
V
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
PCS for CS/HB 67 2022
101 from the sale of the plate shall be distributed to Inter Miami
102 CF Foundation Corporation, a nonprofit corporation under s.
103 501(c)(3) of the Internal Revenue Code, which may use a maximum
104 of 10 percent of the proceeds to promote and market the plate.
105 The remainder of the proceeds shall be used by Inter Miami CF
106 Foundation Corporation to plan and execute sports-based
107 development and direct-service community programs, initiatives,
108 and events in this state.
109 (120) FLORIDA SWIMS LICENSE PLATES.—
110 (a) The department shall develop a Florida Swims license
111 plate as provided in this section and s. 320.08053. The plate
112 must bear the colors and design approved by the department. The
113 word "Florida" must appear at the top of the plate, and the
114 words "Swim for Life" must appear at the bottom of the plate.
115 (b) The annual use fees from the sale of the plate shal l
116 be distributed to the Swimming Pool Education and Safety
117 Foundation, Inc., doing business as Florida Swims, a nonprofit
118 organization under s. 501(c)(3) of the Internal Revenue Code,
119 which may use up to 10 percent of the proceeds for
120 administration, promotion, and marketing of the plate. All
121 remaining proceeds shall be used by the Swimming Pool Education
122 and Safety Foundation, Inc., doing business as Florida Swims, to
123 promote swimming pool and water safety and to provide grants and
124 scholarships for childhood swimming lessons in this state.
125 (121) DOWN SYNDROME AWARENESS LICENSE PLATES.—
Page 5 of 8
PCS for CSHB 67.DOCX
CODING: Words stricken are deletions; words underlined are additions.
V
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
PCS for CS/HB 67 2022
126 (a) The department shall develop a Down Syndrome Awareness
127 license plate as provided in this section and s. 320.08053. The
128 plate must bear the colors and design approved by the
129 department. The word "Florida" must appear at the top of the
130 plate, and the words "Down Syndrome Awareness" must appear at
131 the bottom of the plate.
132 (b) The annual use fees from the sale of the plate shall
133 be distributed to Our City Beautiful, Inc., a Florida nonprofit
134 corporation. Up to 10 percent of the fees may be used for
135 administrative costs and marketing of the plate. Of the
136 remaining fees:
137 1. Fifty percent shall be used to build and maintain
138 HOLLAND, an affordable housing project for independent living
139 for persons with Down syndrome or other intellectual disability.
140 2. Fifteen percent shall be dedicated to Our City
141 Beautiful World Changer scholarships for Florida residents 18
142 years of age or older with Down syndrome who wish to furth er
143 their education at postsecondary educational institutions
144 located in this state.
145 3. Thirty-five percent shall be used for grants to other
146 nonprofit organizations within this state to support housing,
147 educational scholarships, and employment assistance programs for
148 persons with Down syndrome or other intellectual disability.
149 (122) GOPHER TORTOISE LICENSE PLATES.—
150 (a) The department shall develop a Gopher Tortoise license
Page 6 of 8
PCS for CSHB 67.DOCX
CODING: Words stricken are deletions; words underlined are additions.
V
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
PCS for CS/HB 67 2022
151 plate as provided in this section and s. 320.08053. The plate
152 must bear the colors and design approved by the department. The
153 word "Florida" must appear at the top of the plate, and the
154 words "Protect the Gopher Tortoise" must appear at the bottom of
155 the plate.
156 (b) The annual use fees from the sale of the plate shall
157 be distributed to Wildlands Conservation, Inc., a nonprofit
158 corporation under s. 501(c)(3) of the Internal Revenue Code, to
159 fund gopher tortoise and commensal species research, education,
160 and conservation, as well as upland habitat protection,
161 restoration, and management in this state to benefit the gopher
162 tortoise and other upland species. Up to 10 percent of the funds
163 received by Wildlands Conservation, Inc., may be used for
164 marketing of the plate and costs directly associated with the
165 administration of the gopher tortoise protection program.
166 Wildlands Conservation, Inc., shall use and distribute the funds
167 to eligible Florida-based scientific, conservation, and
168 educational organizations for gopher tortoise, commensal
169 species, and upland habitat research, conservation, a nd
170 management.
171 (123) TAKE STOCK IN CHILDREN LICENSE PLATES.—
172 (a) The department shall develop a Take Stock in Children
173 license plate as provided in this section and s. 320.08053. The
174 plate must bear the colors and design approved by the
175 department. The word "Florida" must appear at the top of the
Page 7 of 8
PCS for CSHB 67.DOCX
CODING: Words stricken are deletions; words underlined are additions.
V
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
PCS for CS/HB 67 2022
176 plate, and the words "Take Stock in Children" must appear at the
177 bottom of the plate.
178 (b) The annual use fees from the sale of the plate shall
179 be distributed to Take Stock in Children of Florida, a Florida
180 nonprofit corporation. Up to 10 percent of the fees may be used
181 for administrative costs and marketing of the plate. The
182 remaining funds must be distributed with the approval of, and
183 accountability to, the board of directors of Take Stock in
184 Children of Florida, and must be used to promote and support
185 programs that provide mentorship for at risk students.
186 Section 2. This act shall take effect October 1, 2022.
Page 8 of 8
PCS for CSHB 67.DOCX
CODING: Words stricken are deletions; words underlined are additions.
V
COMMERCE COMMITTEE
PCS for CS/HB 67 by Rep. Rizo
Specialty License Plates
AMENDMENT SUMMARY
February 23, 2022
Amendment 1 by Rep. Gregory (Line 21):
• Lowering the cap on the number of specialty license plates that the Department
of Highway Safety and Motor Vehicles may issue from 150 plates to 125 plates.
COMMITTEE/SUBCOMMITTEE AMENDMENT
Bill No. PCS for CS/HB 67 (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 Gregory offered the following:
3
4 Amendment (with title amendment)
5 Between lines 21 and 22, insert:
6 Section 1. Paragraph (b) of subsection (3) of section
7 320.08053, Florida Statutes, is amended to read:
8 320.08053 Establishment of specialty license plates. —
9 (3)
10 (b) If the Legislature has approved 125 150 or more
11 specialty license plates, the department may not issue any new
12 specialty license plates until a sufficient number of plates are
13 discontinued pursuant to s. 320.08056(8) such that the number of
14 plates being issued does not exceed 125 150. Notwithstanding s.
15 320.08056(8)(a), the 125-license-plate 150-license-plate limit
16 includes license plates above the minimum sales threshold and
PCS for CSHB 67 a1
Published On: 2/22/2022 7:33:12 PM
Page 1 of 2
COMMITTEE/SUBCOMMITTEE AMENDMENT
Bill No. PCS for CS/HB 67 (2022)
Amendment No. 1
17 those exempt from that threshold.
18
19
20 -----------------------------------------------------
21 T I T L E A M E N D M E N T
22 Between lines 2 and 3, insert:
23 s. 320.08053, F.S.; revising the limit on the number of
24 specialty license plates the Department of Highway Safety and
25 Motor Vehicles may issue; amending;
PCS for CSHB 67 a1
Published On: 2/22/2022 7:33:12 PM
Page 2 of 2
PCS for CS/HB 157
HOUSE OF REPRESENTATIVES STAFF ANALYSIS
BILL #: PCS for CS/HB 157 Transportation
SPONSOR(S): Commerce Committee
TIED BILLS: IDEN./SIM. BILLS:
REFERENCE ACTION ANALYST STAFF DIRECTOR or
BUDGET/POLICY CHIEF
Orig. Comm.: Commerce Committee Johnson Hamon
SUMMARY ANALYSIS
The bill addresses matters related to transportation. The bill:
Requires a local government to provide mobility fee credits to residential developers for certain capital
improvements to a transportation system that the Department of Transportation (DOT) deems
necessary in certain circumstances.
Codifies the Implementing Solutions from Transportation Research and Evaluation of Emerging
Technologies (I-STREET) Living Lab within the University of Florida and provides for its duties relating
to transportation research, education, workforce development, and related issues.
Clarifies DOT’s authority to engage in progressive design-build contracting as an innovative technique
of highway and bridge design and construction.
Exempts certain progressive design-build contracts from an existing statutory cap on innovative
contracts.
Authorizes landowners to obtain permits from DOT to clear vegetation from the right-of-way on limited
access facilities under specified conditions.
Removes a limitation on design-build contracting to certain types of projects and authorizes design-
build contracting for all types of projects.
Requires contracts for bridge work over navigable waters to contain provisions requiring a minimum
amount of general liability insurance.
Provides that stipends paid by DOT to non-selected design-build firms that have submitted responsive
proposals for construction contracts contained in DOT’s legislatively-approved work program are not
subject to existing documentation and notification requirements for settlement payments made by DOT
to resolve bid protests.
Authorizes an applying contractor who desires to bid exclusively on construction contracts with
proposed budget estimates of $2 million or less (increased from $1 million) to submit reviewed annual
or reviewed interim financial statements.
Authorizes an applicant for a contractor certificate of qualification to submit a request to keep an
existing certificate, with the current maximum capacity rating, in place until the expiration date of the
existing certificate.
Repeals a public records exemption for documents that reveals the identity of a person who has
requested or obtained a bid package, plan, or specifications pertaining to any project to be let by DOT.
Changes from 5 years to 10 years the length of time that DOT must adjust toll rates for inflation.
The bill may have an indeterminate positive fiscal impact on state government revenues and a negative fiscal
impact on state government expenditures. The bill does not appear to have a fiscal impact to local
governments.
The bill has an effective date of July 1, 2022.
This docum ent does not reflect the intent or official position of the bill sponsor or House of Representatives .
STORAGE NAME: pcs0157.COM
DATE: 2/21/2022
FULL ANALYSIS
I. SUBSTANTIVE ANALYSIS
A. EFFECT OF PROPOSED CHANGES:
Mobility Fee Credits
Current Situation
Transportation Concurrency
The Community Planning Act,1 authorizes local governments (counties or municipalities) to establish a
a concurrency management system to assess landowners the costs of maintaining specified levels of
service for the local government's transportation system when the projected impacts of their
development would adversely impact the system.2
Prior to June 2, 2011, Florida law required local government comprehensive plans to provide for
transportation concurrency. Under current law, transportation concurrency is optional, and a local
government may eliminate transportation concurrency from its comprehensive plan. If the local
government eliminates transportation concurrency, it is encouraged, but not required to adopt a mobility
fee-based plan in its place.3
Impact Fees
Impact fees are used by local governments to fund infrastructure necessitated by new growth.4 Florida
law requires each local government that adopts and collects an impact fee to:
Ensure that the impact fee is proportional and reasonably connected to the need for additional
capital facilities and the increased impact generated by the new residential or commercial
construction.
Ensure that the impact fee is proportional and reasonably connected to the expenditures of the
funds collected and the benefits accruing to the new residential or nonresidential construction.5
A local government must credit against the collection of the impact fee any contribution related to public
facilities or infrastructure, including land dedication, site planning and design, or construction. Any
contribution must be applied on a dollar-for-dollar basis at fair market value to reduce any impact fee
collected for the general category or class of public facilities or infrastructure for which the contribution
was made.6
Mobility Fees
A mobility fee is a transportation system charge designed to recoup the proportionate costs of
transportation demand generated by all new development. Its focus is new development due to the
fee’s association with transportation concurrency systems and its use to fund planned transportation
facilities and services.7
1 Ch. 163, part II, F.S.
2 Department of Economic Opportunity (DEO), Transportation Planning. https://www.floridajobs.org/community-planning-and-
development/programs/community-planning-table-of-contents/transportation-planning (last visited Feb. 16, 2022).
3 id.
4 S. 163.31801(2), F.S.
5 S. 163.31801(4), F.S.
6 S. 163.31801(5)(a), F.S.
7 Center for Urban Transportation Research, Evaluation of the Mob ility Fee Concept Final Report, University of South Florida (Nov.
2009), available at cutr.usf.edu/wp-content/uploads/2012/08/Evaluation-of-the-Mobility-Fee-Concept-CUTR-Webcast-04.21.11.pdf (last
visited Jan. 18, 2021).
STORAGE NAME: pcs0157.COM PAGE: 2
DATE: 2/21/2022
If a local government repeals transportation concurrency, Florida law encourages, but does not require,
it to adopt an alternative mobility funding system and provides tools and techniques to be used in
establishing a mobility fee.8
Effect of the Bill
The bill clarifies that a local government, pursuant to current law, must provide mobility fee credits to a
residential developer for capital improvements to a transportation system that the Department of
Transportation (DOT) deems necessary to ensure the safe and efficient mobility of people, commerce
and goods to bring a planned housing community into service.
Implementing Solutions from Transportation Research and Evaluation of Emerging
Technologies (I-STREET) Living Lab
Current Situation
Various centers, institutes, and special programs within the State University System are codified in
Florida Statutes, including the Florida Industrial and Phosphate Research Institute at Florida
Polytechnic University,9 the H. Lee Moffitt Cancer Center and Research Institute at the University of
South Florida,10 the Louis de la Parte Florida Mental Health Institute at the University of South Florida,11
the Florida Institute for Child Welfare at Florida State University, 12 and the Center for Urban
Transportation Research at the University of South Florida. 13
The University of Florida (UF) College of Engineering’s Transportation Institute aims to advance
transportation, disseminate research results, and provide educational opportunities related to
transportation. The institute is an umbrella organization housing several transportation-related
centers.14
UF’s Transportation Institute, the Department of Transportation (DOT), and the City of Gainesville have
partnered to create the Implementing Solutions from Transportation Research and Evaluation of
Emerging Technologies (I-STREET) Living Lab. I-STREET’s principal objective is to make significant
improvements to transportation safety and mobility, utilizing a real-world testbed environment that has
been created on and surrounding the UF campus and the expanding set of diverse technology installed
on Florida segments of the Interstate Highway System.15 I-STREET has received funding from the
National Science Foundation and through research conducted as part of the United States Department
of Transportation’s University Transportation Centers Program. 16
I-STREET’s mission and main goals are to:
Facilitate the development and implementation of advanced and emerging technologies to
improve safety and mobility that are suitable for implementation statewide and beyond;
Foster collaboration with industry wishing to develop, test, and implement their own
technologies to improve safety, and mobility; and
Become a recognized national and global leader in the development and implementation of
advanced technologies to improve transportation safety and mobility. 17
I-STREET projects include:
I-75 Florida Regional Advanced Mobility Elements;
8 S. 163.3180(5)(f), F.S.
9 S. 1004.346, F.S.
10 S. 1004.43, F.S.
11 S. 1004.44, F.S.
12 S. 1004.615, F.S.
13 S. 334.065(1), F.S.
14 University of Florida (UF) Transportation Institute, Overview, https://www.transportation.institute.ufl.edu/overview/ (last visited Jan 13,
2022).
15 UF, I-Street Living Lab , https://www.transportation.institute.ufl.edu/i-street-living-lab/ (last visited Feb, 11, 2022).
16 House of Representatives, Appropriations Project Request – Fiscal Year 2022-2023 HB 4285 (2022) p. 5.
17 UF, supra note 14.
STORAGE NAME: pcs0157.COM PAGE: 3
DATE: 2/21/2022
Pedestrian and Bicycle Safety Demonstration;
Gainesville Autonomous Shuttle Evaluation; and
Transportation Mobility Assessment and Recommendations for Smart City Planning. 18
DOT has issued an invitation to transportation industry leaders for participation in the “UF I-STREET
program.” According to DOT:
I-STREET is designed to assist in implementing emerging technologies aimed at safety and
mobility improvements. DOT will develop requests for proposals utilizing the emerging
technologies and will select vendors through a competitive bidding process. The selected
vendor for each project will deploy technology solutions. UF will conduct before-and-after
evaluations of implemented projects. After evaluation, DOT will consider whether to expand the
successful I-STREET projects elsewhere in the state.
DOT has allocated funding for these innovative projects per fiscal year (FY) from FY 2020-2021
until FY 2024-2025. Each FY, DOT will fund multiple projects based on the projects' merits and
safety and mobility improvement potential. The number of awards will vary depending on the
project type and scope.19
Effect of the Bill
The bill codifies the I-STREET Living Lab within UF. The bill requires I-STREET to, at a minimum:
Conduct and facilitate research on issues related to innovative transportation mobility and safety
technology development and deployment in Florida and serve as an information exchange and
depository for the most current information pertaining to transportation research, education,
workforce development, and related issues.
Be a continuous resource for the Legislature, DOT, local governments, the nation’s metropolitan
regions, and the private sector in the area of transportation and related research.
Promote intercampus transportation and related research activities among Florida universities
to enhance the ability of these universities to attract federal and private sector funding for
transportation and related research.
Provide by July 1, 2023, and each July 1 thereafter, to the Governor, the President of the
Senate, and the Speaker of the House of Representatives a comprehensive report that outlines
I-STREET’s clearly defined goals and its efforts and progress on reaching those goals.
The bill creates an advisory board to periodically review and advise I-STREET concerning its research
program. The board must consist of nine members with expertise in transportation-related areas,
including:
A member appointed by the President of the Senate.
A member appointed by the Speaker of the House of Representatives.
The Secretary of Transportation or his or her designee.
The Secretary of Economic Opportunity or his or her designee.
A member of the Florida Transportation Commission. 20
Four members nominated by UF’s College of Engineering and approved by UF’s president.
These nominees may include representatives of UF, other academic and research institutions,
or private entities.
Progressive Design-Build and Innovative Contracting
Current Situation
18 UF Transportation Institute, Projects, https://www.transportation.institute.ufl.edu/i-street-living-lab/projects/ (last visited Jan. 13,
2022).
19 Department of Transportation (DOT), UF I-Street, https://www.fdot.gov/traffic/its/projects -deploy/cv/maplocations/uf-testbed.shtm (last
visited Jan. 14, 2022).
20 The Florida Transportation Commission is a citizen’s advisory board for the Department of Transportation.
STORAGE NAME: pcs0157.COM PAGE: 4
DATE: 2/21/2022
Current law authorizes DOT, if it determines that doing so is in the public interest, to combine the
design and construction phases of a building, a major bridge, a limited access facility, or a rail corridor
project into a single contract, referred to as a “design-build” contract.21 DOT must adopt, by rule,
procedures for administering design-build contracts. Such procedures must include, but are not limited
to:
Prequalification requirements.
Public announcement procedures.
Scope of service requirements.
Letters of interest requirements.
Short-listing criteria and procedures.
Bid proposal requirements.
Technical review committee.
Selection and award processes.
Stipend requirements.22
Under Florida law, DOT is authorized to establish a program for transportation projects that
demonstrate innovative techniques of highway and bridge design, construction, maintenance, and
finance. The innovations must be intended to measure resiliency and structural integrity and control
time and cost increases on construction projects. These techniques may include state-of-the-art
technology for pavement, safety, and other aspects of:
Highway and bridge design, construction, and maintenance;
Innovative bidding and financing techniques;
Accelerated construction procedures; and
Techniques that have the potential to reduce project life cycle costs.
To the maximum extent practical, DOT must use existing processes to award and administer
construction and maintenance contracts.23
DOT’s authority for utilizing innovative techniques is limited to $120 million annually for the purposes of
contracting for innovative transportation projects. The $120 million annual cap does not apply to:
Turnpike Enterprise projects, and
Low-bid design-build milling and resurfacing contracts.24
According to the Design-Build Institute of America (DBIA), design-build projects enable the project
owner to manage only one contract, with the designer and contractor working together from the
beginning and providing consensus project recommendations to fit the owner’s schedule and budget.
The entire team addresses any necessary changes, which leads “to collaborative problem -solving and
innovation....” This method of project delivery, the DBIA asserts, creates an inherent “culture of
collaboration.”25 As described by the DBIA, the “progressive” type of design-build contract “uses a
qualifications-based or best value selection, followed by a process whereby the owner then
‘progresses’ towards a design and contract price with the team.”26
Effect of the Bill
The bill authorizes DOT to engage in design-build contracting for all types of projects, not just buildings,
major bridges, limited access facilities, or rail corridors.
The bill amends DOT’s authority to undertake innovative transportation projects, expressly authorizing
DOT to use progressive design-build contracts for such projects. If determined to be in the best interest
of the public, a progressive design-build approach would combine the design and construction phases
21 S. 337.11(7)(a), F.S.
22 S. 337.11(7)(b), F.S.
23 S. 337.025(1), F.S.
24 S. 337.025(2), F.S.
25 See DBIA, What is Design-Build, available at https://dbia.org/what-is-design-build/ (last visited Jan. 5, 2022).
26 See DBIA, Progressive Design-Build, Design-Build Procured with a Progressive Design and Price, at p. 3, available at
https://dbia.org/wp-content/uploads/2018/05/Primer-Progressive-Design-Build.pdf (last visited Jan. 5, 2022).
STORAGE NAME: pcs0157.COM PAGE: 5
DATE: 2/21/2022
of a project into a single contract and select the design-build firm in the early stages of a project to
ensure that the firm is part of the collaboration and development of the design as part of a step-by-step
progression through construction.
The bill requires the selection and award processes for a progressive design-build contract to involve a
two-phase process. In the first phase, DOT must competitively award the contract to a design-build firm
based upon the firm’s qualifications. In phase two, the selected firm must competitively bid construction
trade and subcontractor packages and, based upon these bids, negotiate with DOT for a fixed price or
a guaranteed maximum price that meets the project budget and scope.
In addition, the bill revises DOT’s $120 million cap on innovative contracting to eliminate the exception
for low-bid design-build milling and resurfacing contracts, and to create an exception for progressive
design-build contracts for complex, high-risk projects with a minimum contract value of $400 million.
DOT would still be authorized to continue using “traditional” design-build contracting provided that all
innovative project contracts do not exceed the $120 million annual cap.
The bill also requires DOT, by rule, to establish procedures for progressive design-build.
Clearing of DOT Right-of-Way by Landowners
Current Situation
Current law does not authorize landowners with land contiguous to DOT’s right-of-way to clear land on
DOT’s right-of-way prior to construction on a limited access facility.27
DOT’s work program is a five-year plan for transportation projects which DOT plans to undertake. 28
Current law indicates the Legislature’s intent that the first three years of DOT’s adopted work program
stands as the state’s commitment to undertake transportation projects. The law also provides that local
governments may rely on those years for planning and concurrency purposes and in the development
and amendment of the capital improvement elements of their local government comprehensive plans. 29
Effect of the Bill
The bill provides, that for a construction project funded in the first three years of DOT’s adopted work
program, a landowner with land contiguous to a limited access facility may be allowed, under a DOT-
issued permit, to remove vegetation designated to be removed as part of the construction project on a
DOT right-of-way in an area associated with a limited access facility. Such removal must be performed
within the same limits of removal as identified in the final plans of the project.
DOT Contracting and Procurement Authority/Settlements and Stipends
Current Situation
Bid Settlements
Under current law, when DOT determines that it is in the public’s best interest to resolve a bid protest30
related to the purchase of personal property or contractual services, 31 through a settlement that
requires DOT to pay a nonselected responsive bidder a total sum of $1 million or more, including any
27 Section 334.03(12) defines the term “limited access facility” to mean a street or highway especially designed for through traffic, and
over, from, or to which owners or occupants of abutting land or other persons h ave no right or easement of access, light, air, or view by
reason of the fact that their property abuts upon such limited access facility or for any other reason.
28 DOT’s work program is developed pursuant to s. 339.135, F.S.
29 S. 339.135(4)(b)3., F.S.
30 Bid protests are handled in accordance with s. 120.57(3), F.S.
31 S. 287.057, F.S.
STORAGE NAME: pcs0157.COM PAGE: 6
DATE: 2/21/2022
amount paid relating to patents, copyrights, and trademarks,32 relating to design-build stipends,33 or any
other law, DOT must:
Document in a written memorandum prepared by the DOT secretary the specific reasons that
such settlement and payment to a nonselected bidder is in the state’s best interest. The written
memorandum must be included and maintained in DOT's permanent files concerning the
procurement and must include:
o A description of the property rights, patent rights, copyrights, trademarks, or the
engineering design or other design work that DOT will acquire or retain as a result of
such settlement; and
o The specific appropriation in the existing General Appropriations Act which DOT intends
to use to provide such payment.
Provide prior written notification to the President of the Senate, the Speaker of the House of
Representatives, the Senate and House of Representatives minority leaders, the chair and vice
chair of the Legislative Budget Commission, and the Attorney General at least five business
days, or as soon thereafter as practicable, before DOT makes the settlement agreement final.
Such written notification must include the written memorandum.
Provide, at the time settlement discussions regarding any such payment have begun in earnest,
written notification of such discussions to the President of the Senate, the Speaker of the House
of Representatives, the Senate and House of Representatives minority leaders, the chair and
vice chair of the Legislative Budget Commission, and the Attorney General. 34
Design-Build Stipends
Florida law provides that if DOT determines that it is in the public’s best interest, it may pay a stipend to
nonselected design-build firms that have submitted responsive proposals for construction contracts.
The decision and amount of a stipend must be based upon DOT analysis of the estimated proposal
development costs and the anticipated degree of engineering design during the procurement process.
DOT retains the right to use those designs from responsive nonselected design-build firms that accept
a stipend.35
Effect of the Bill
The bill provides that stipends paid by DOT to non-selected design-build firms that have submitted
responsive proposals for construction contracts contained in DOT’s legislatively approved work
program are not subject to existing documentation and notification requirements for stipend payments
made by DOT to resolve a bid protest through a settlement. If DOT pays a stipend to settle a bid
protest in an amount that triggers the requirements ($1 million), DOT must continue to comply with the
documentation and notification requirements.
Contractor Insurance Requirements
Current Situation
DOT Contractor Liability Insurance Requirements
DOT requires each contractor to indemnify and hold harmless DOT, its officers and employees from
liabilities, damages, losses and costs, including, but not limited to, reasonable attorney’s fees, to the
extent caused by the negligence, recklessness, or intentional wrongful misconduct of the contractor
and persons employed or utilized by the contractor in the performance of the construction contract.36
32 S. 334.049, F.S.
33 S. 337.11(8), F.S.
34 S. 337.1101(1), F.S.
35 S. 337.11(8), F.S.
36 DOT Specs Book, Section 7-12.1, Contractor to Provide Indemnification, January 2017, available at:
https://www.fdot.gov/docs/default-source/programmanagement/implemented/specbooks/january2017/files/007 -117.pdf (last visited Feb.
18, 2022).
STORAGE NAME: pcs0157.COM PAGE: 7
DATE: 2/21/2022
DOT also requires each contractor to carry commercial general liability insurance that provides
continuous coverage for all work and operations provided under the contract. Additional requirements
exist for construction adjacent to railroad tracks and certain utility facilities. 37
Federal Limitation of Liability Act of 1851
On September 16, 2020, during Hurricane Sally, the Pensacola Bay Bridge suffered severe damage
after multiple barges used in the bridge’s construction escaped their moorings and struck the bridge.
Once the damage was identified, DOT closed the bridge to all traffic, 38 and the bridge remained was
closed until May 2021.39 In its aftermath, lawsuits were filed by businesses, homeowners, governments,
and others claiming direct losses due to the barges destroying a portion of the Pensacola Bay Bridge. 40
Citing the federal Limitation of Liability Act of 1851,41 the bridge contractor has sought to limit its liability
to the value of the five barges that actually damaged the bridge, approximately $1.43 million. 42 A
federal judge subsequently opined that the bridge contractor was negligent in its preparations for
Hurricane Sally, and that the company should not be able to limit its liability.43 Lawsuits are still pending
to determine the bridge contractor’s liability.
Under the federal Limitation of Liability Act of 1851, the liability of the owner of a vessel for specified
claims, debts, or liabilities may not exceed the value of the vessel and pending freight. 44
Except as otherwise provided, the federal Limitation of Liability Act of 1851 applies to seagoing vessels
and vessels used on lakes or rivers or in inland navigation, including canal boats and barges.45
Effect of the Bill
The bill requires that each contract let by DOT for performance of bridge construction or maintenance
over navigable waters contain a provision requiring general liability insurance in an amount to be
determined by DOT covering potential liability for third-party personal injury and property damage
claims caused by vessels used by the contractor in the performance of the work.
Contractor Certificate of Qualification
Current Situation
A contractor desiring to bid on any DOT construction contract in excess of $250,000 must obtain a
certificate of qualification from DOT.46 Each application for certification must be accompanied by the
contractor’s latest audited annual financial statements. If the application or the annual financial
statement shows the contractor’s financial condition more than four months prior to the date on which
37
DOT Specs Book, Section 7-13.2, 3, and 4. Commercial General Liability Insurance, January 2017, available at:
https://www.fdot.gov/docs/default-source/programmanagement/implemented/specbooks/january2017/files/007 -117.pdf (last visited Feb.
18, 2022).
38 DOT, Pensacola Bay Bridge Project, https://www.fdot.gov/info/PensacolaBay (last visited Feb. 10, 2022).
39 Emma Kennedy, Pensacola Bay Bridge Finally Opens after 8-month Closure; Drivers Can Expect Some Delays, Pensacola News
Journal, https://www.pnj.com/story/news/2021/05/28/pensacola-bay-bridge-reopen-traffic-memorial-day-hurricane-sally-
skanska/7466670002/ (last visited Feb. 10, 2022).
40 Skanska Loses Federal Lawsuit Over Hurricane Sally Barge Damage, Dec. 29, 2021.
http://www.northescambia.com/2021/12/skanska-loses-federal-lawsuit-over-hurricane-sally (last visited Feb. 10, 2022).
41 46 U.S.C. s. 30501, et. seq.
42 Joe Bousquin, Skanska Wins Key Ruling in Pensacola Bridge Case, Construction Dive, Aug. 3, 2011.
https://www.constructiondive.com/news/skanska-wins-key-ruling-in-pensacola-bridge-case/604340/ (last visited Feb. 17, 2022).
43 Emma Kennedy, Skanska Loses Hurricane Sally Trial, Judge Finds Company Negligent for Failing to Prepare, Pensacola News
Journal, Dec. 29, 2021. https://www.pnj.com/story/news/local/pensacola/2021/12/29/skanska -trial-judge-sides-claimants-hurricane-
sally-case-largely-centered-on-pensacola-bay-bridge/9045991002/ (last visited Feb. 17, 2022).
44 46 USC s. 30505(a).
45 46 U.S.C. s. 30502.
46 S. 337.14, F.S., and R. 14-22, F.A.C.
STORAGE NAME: pcs0157.COM PAGE: 8
DATE: 2/21/2022
DOT receives the application, the contractor must also submit audited interim financial statements and
an updated application.47
DOT’s rules include requirements with respect to the equipment, past record, experience, financial
resources, and organizational personnel of the applying contractor, which are necessary to perform the
specific class of work for which the contractor seeks certification. DOT verifies and evaluates whether
an applicant is competent and responsible and possesses the necessary financial resources to perform
the requested work.48
Part of DOT’s inquiry involves whether an applicant has the financial resources sufficient to establish a
maximum capacity rating, which is the total aggregate dollar amount of uncompleted work an applicant
may have under contract at any one time as a prime contractor and/or subcontractor, regardless of the
work location and with whom the applicant contracted.49 According to DOT’s rules, the maximum
capacity rating is established by a formula, one element of which is the “ability factor.” 50 DOT’s rules
require an applicant’s maximum capacity rating to be reduced by the total value of their current
uncompleted work, producing the applicant’s “current capacity,” or bidding capacity. Under the rule, the
current capacity must be amended immediately upon issuance of a new certificate of qualification,
regardless of whether the existing certificate has expired.51
Currently, if an applicant for a certificate of qualification is found to possess the prescribed
qualifications, DOT must issue the applicant a certificate, which, unless revoked by DOT for good
cause, is valid for a period of 18 months after the date of the applicant’s financial statement, or such
shorter period as DOT prescribes. Submission of an application does not affect expiration of an existing
certificate, the ability factor of the applicant, or the maximum capacity rating of the applicant.52
Under Florida law, an applying contractor desiring to bid exclusively for the performance of construction
contracts with proposed budget estimates of less than $1 million may submit reviewed annual or
reviewed interim financial statements prepared by a certified public accountant, instead of audited,
certified financial statements. DOT may waive these requirements for projects having a contract price
of $500,000 or less if DOT determines that the project is of a noncritical nature and the waiver will not
endanger public health, safety, or property. 53
Effect of the Bill
The bill removes current provisions providing that submission of an application does not affect the
ability factor or the maximum capacity rating of an applicant for DOT certificate of qualification. Instead,
the bill authorizes an applicant to submit a written request to DOT, along with its timely submitted
application, to keep an existing certificate in place until its expiration date. If DOT approves the request,
the applicant’s current maximum capacity rating must remain in place until expiration of the current
certification. In the absence of DOT’s approval and in accordance with DOT’s existing rules, the current
capacity rating must be amended immediately upon issuance of a new certificate of qualification,
regardless of whether the existing certificate has expired.
The bill increases from $1 million to $2 million the proposed budget estimate amount for contracts
under which an applying contractor may submit reviewed annual or reviewed interim financial
statements prepared by a certified public accountant. Thus, an applying contractor who desires to bid
47 The interim financial statements must cover the period from the end date of the annual statement and must show the financial
condition of the applying contractor no more than four months prior to the date DOT receives the interim statement but, upon request of
the applicant, an application and accompanying annual or interim financial statement received by the DOT within 15 days after either
four-month period is considered timely.
48 R. 14.22-003(1), F.A.C.
49 R. 14.22-003(1)(d) and (2), F.A.C.
50 The ability factor is a performance score which a contractor receives from DOT upon completion of a project. The initial abil ity factor
is based on the applicant’s organization, management, work experience, and letters of recommendation. R. 14 -22-003, F.A.C.
51 R. 14-22.006(1), F.A.C.
52 S. 337.14(4), F.S.
53 S. 337.14(1), F.S.
STORAGE NAME: pcs0157.COM PAGE: 9
DATE: 2/21/2022
exclusively on construction contracts with proposed budget estimates of $2 million or less may submit
reviewed annual or reviewed interim financial statements prepared by a certified public accountant.
Identities of Potential Bidders on DOT Contracts
Current Situation
Article I, section 24(a) of the Florida Constitution sets forth the state’s public policy regarding access to
government records. This section guarantees every person a right to inspect or copy any public record
of the legislative, executive, and judicial branches of government. The Legislature, however, may
provide by general law for the exemption of records from the requirements of Article I, section 24(a) of
the Florida Constitution.54
Current law provides that a document revealing the identity of persons who have requested or obtained
bid packages, plans, or specifications pertaining to any project to be let by DOT is confidential and
exempt from the public records law for the period which begins two working days before the deadline
for obtaining bid packages, plans, or specifications and ends with the letting of the bid. A document that
reveals the identity of such persons more than the two working days before the deadline for obtaining
bid packages, plans, or specifications remains a public record.55
Effect of the Bill
The bill eliminates the public records exemption for documents revealing the identity of a person who
has requested or obtained a bid package, plan, or specifications pertaining to any project to be let by
DOT for the period that begins two working days before the deadline for obtaining bid packages plans,
or specifications, and ends with the letting of the bid. These documents will now be public records.
Toll Indexing and Cashless Tolling
Current Situation
With limited exceptions, all users of a toll facility must pay the appropriate toll. 56 Under Florida law, DOT
must index its toll rates to the annual Consumer Price Index or similar inflation indicators. Toll rate
adjustments for inflation may be made no more frequently than once a year and must be made no less
frequently than once every five years, as necessary to accommodate cash toll rate schedules. Toll
rates may be increased beyond these limits as directed by bond documents, covenants, or governing
body authorization or pursuant DOT administrative rule.57 These toll rate adjustments are exempt from
the rule ratification requirements in the Administrative Procedures Act.58
The last time that DOT adjusted its toll rates for inflation was in October 2017. 59 Therefore, under
current law, DOT must adjust its toll rates in 2022.
Effect of the Bill
The bill changes the frequency that DOT must adjust its toll rates for inflation. Instead of adjusting for
inflation every five years, DOT must adjust its toll rates every 10 years. DOT may still adjust its toll
rates to comply with bond documents or other obligations.
The bill also removes the provision that provides for toll rate adjustments to be made as necessary to
accommodate cash toll rate schedules.
54 Art. I, s. 24(c), Fla. Const.
55 S. 336.168(2), F.S.
56 S. 338.155(1)(a), F.S. Exceptions include emergency vehicles and emergency evacuations.
57 S. 338.165(3), F.S.
58 S. 120.80(18), F.S.
59 DOT, Toll Rats for Florida Turnpike and Florida Department of Transportation Toll Facilities, South Florida,
https://floridasturnpike.com/wp-content/uploads/2020/04/Toll-Rates-Booklet-South-Florida.pdf (last visited Feb. 15, 2022).
STORAGE NAME: pcs0157.COM PAGE: 10
DATE: 2/21/2022
Effective Date
The bill has an effective date of July 1, 2022.
B. SECTION DIRECTORY:
Section 1 Creates s. 163.31803, F.S., relating to mobility fee credits for certain planned housing
communities.
Section 2 Creates s. 334.066, F.S., relating to Implementing Solutions from Transportation
Research and Evaluating Emerging Technologies (I-STREET) Living Lab.
Section 3 Amends s. 337.025, F.S., relating to innovative transportation projects.
Section 4 Amends s. 337.107, F.S., relating to contracts for right-of-way services.
Section 5 Amends s. 337.11, F.S., relating to contracting authority of the department.
Section 6 Amends s. 337.1101, F.S., relating to contracting and procurement authority of the
department; settlements; notifications required.
Section 7 Amends s. 337.14, F.S., relating to application for qualification; certificate of qualification;
restrictions; request for hearing.
Section 8 Amends s. 337.168, F.S., relating to confidentiality of official estimates, identities of
potential bidders, and bid analysis and monitoring system.
Section 9 Amends s. 338.165, F.S., relating to the continuation of tolls.
Section 10 Provides an effective date.
II. FISCAL ANALYSIS & ECONOMIC IMPACT STATEMENT
A. FISCAL IMPACT ON STATE GOVERNMENT:
1. Revenues:
None.
2. Expenditures:
The costs associated with I-STREET are unknown but are expected to be absorbed within the
existing resources of the UF, DOT, and other potential government sector participants. The bill does
not provide funding for any costs associated with participation.
The fiscal impact of the revisions relating to design-build, progressive design-build, and innovative
contracting authority is indeterminate because the number and details of any such contracts to be
undertaken by DOT is unknown.
The fiscal impact of the revisions relating to DOT contractor certificates of qualification is
indeterminate.
Any expenses incurred by DOT associated with rulemaking can be absorbed within existing
resources.
DOT may incur expenditures related to public records requests for documents that identify a
potential bidder on a transportation project. These costs are indeterminate but likely insignificant.
STORAGE NAME: pcs0157.COM PAGE: 11
DATE: 2/21/2022
B. FISCAL IMPACT ON LOCAL GOVERNMENTS:
1. Revenues:
None.
2. Expenditures:
The costs associated with I-STREET are unknown but are expected to be absorbed within the
existing resources of the UF, DOT, and other potential government sector participants. The bill does
not provide funding for any costs associated with participation.
C. DIRECT ECONOMIC IMPACT ON PRIVATE SECTOR:
The bill may reduce costs for certain contractors to provide required financial statements. A reviewed
annual or reviewed interim financial statement is less expensive than an audited, certified annual or
interim financial statement.
Motorists may not see inflation-based toll increases as frequently.
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 revises DOT’s rulemaking authority regarding procedures for design-build projects to provide
for progressive design build projects.
C. DRAFTING ISSUES OR OTHER COMMENTS:
According to DOT, the repeal of the public records exemption may have a negative impact on
procurement by eliminating confidentiality of potential bidders and by allowing bid documents, such as
letters of interest, to be produced as public records during the procurement process.60
IV. AMENDMENTS/ COMMITTEE SUBSTITUTE CHANGES
Not applicable.
60 DOT Agency Analysis, 2022 House Bill 157, p. 6. (Sep. 24, 2021).
STORAGE NAME: pcs0157.COM PAGE: 12
DATE: 2/21/2022
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
PCS for CS/HB 157 2022
1 A bill to be entitled
2 An act relating to transportation; creating s.
3 163.31803, F.S.; requiring local governments to issue
4 mobility fee credits under a specified circumstance;
5 creating s. 334.066, F.S.; establishing the
6 Implementing Solutions from Transportation Research
7 and Evaluating Emerging Technologies Living Lab (I -
8 STREET) within the University of Florida; specifying
9 the duties of I-STREET; requiring I-STREET to annually
10 provide the Governor and the Legislature with a
11 certain report; requiring the creation of a certain
12 advisory board; specifying the composition of the
13 board; amending s. 337.025, F.S.; providing that the
14 Department of Transportation's program for innovative
15 transportation projects may include progressive
16 design-build contracts; authorizing the department to
17 enter into a progressive design-build contract if it
18 makes a certain determination; providing procedures
19 and requirements for progressive design-build
20 contracts; revising contracts exempt from a specified
21 annual monetary cap on contracts; amending s. 337.107,
22 F.S.; authorizing landowners to permit with the
23 department to remove vegetation under specified
24 circumstances; amending s. 337.11, F.S.; revising the
25 department's authority relating to design-build
Page 1 of 17
PCS for CSHB 157.DOCX
CODING: Words stricken are deletions; words underlined are additions.
V
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
PCS for CS/HB 157 2022
26 contracts; revising rulemaking authority; requiring
27 specified department contracts to contain specified
28 insurance provisions; amending s. 337.1101, F.S.;
29 revising the calculation of a certain settlement paid
30 to a nonselected responsive bidder; amending s.
31 337.14, F.S.; revising a dollar limit of proposed
32 budget estimates of construction contracts for which
33 an applying contractor may submit certain financial
34 statements; revising procedures relating to
35 certificates of qualification issued by the department
36 to construction contractors seeking certification to
37 bid on certain contracts; exempting progressive
38 design-build prequalifications from a certain
39 restriction on contractors and their affiliates;
40 amending s. 337.168, F.S.; deleting a public records
41 exemption for certain documents revealing the identity
42 of a potential bidder; amending s. 338.165, F.S.;
43 revising the length of time between when the
44 department must revise its toll rates to inflation;
45 providing an effective date.
46
47 Be It Enacted by the Legislature of the State of Florida:
48
49 Section 1. Section 163.31803, Florida Statutes, is created
50 to read:
Page 2 of 17
PCS for CSHB 157.DOCX
CODING: Words stricken are deletions; words underlined are additions.
V
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
PCS for CS/HB 157 2022
51 163.31803 Mobility fee credits for certain planned housing
52 communities.—Pursuant to s. 163.31801, a local government must
53 provide mobility fee credits to a residential developer for
54 capital improvements to a transportation system that the
55 Department of Transportation deems necessary to ensure the safe
56 and efficient mobility of people, commerce, and goods to bring a
57 planned housing community into service.
58 Section 2. Section 334.066, Florida Statutes, is created
59 to read:
60 334.066 Implementing Solutions from Transportation
61 Research and Evaluating Emerging Technologies Living Lab.—
62 (1) The Implementing Solutions from Transportation
63 Research and Evaluating Emerging Technologies Living Lab (I-
64 STREET) is established within the University of Florida.
65 (2) At a minimum, I-STREET shall:
66 (a) Conduct and facilitate research on issues related to
67 innovative transportation mobility and safety technology
68 development and deployment in this state and serve as an
69 information exchange and depository for the most current
70 information pertaining to transportation research, education,
71 workforce development, and related issues.
72 (b) Be a continuing resource for the Legislature, the
73 department, local governments, the nation's metropolitan
74 regions, and the private sector in the area of transportation
75 and related research.
Page 3 of 17
PCS for CSHB 157.DOCX
CODING: Words stricken are deletions; words underlined are additions.
V
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
PCS for CS/HB 157 2022
76 (c) Promote intercampus transportation and related
77 research activities among Florida universities to enhance the
78 ability of these universities to attract federal and private
79 sector funding for transportation and related research.
80 (d) Provide by July 1, 2023, and each July 1 thereafter,
81 to the Governor, the President of the Senate, and the Speaker of
82 the House of Representatives a comprehensive report that
83 outlines its clearly defined goals and its efforts and progress
84 on reaching those goals.
85 (3) An advisory board shall be created to periodically
86 review and advise I-STREET concerning its research program. The
87 board shall consist of nine members with expertise in
88 transportation-related areas, as follows:
89 (a) A member appointed by the President of the Senate.
90 (b) A member appointed by the Speaker of the House of
91 Representatives.
92 (c) The Secretary of Transportation or his or her
93 designee.
94 (d) The Secretary of Economic Opportunity or his or her
95 designee.
96 (e) A member of the Florida Transportation Commission.
97 (f) Four members nominated by the University of Florida's
98 College of Engineering and approved by the university's
99 president. The College of Engineering's nominees may include
100 representatives of the University of Florida, other academic and
Page 4 of 17
PCS for CSHB 157.DOCX
CODING: Words stricken are deletions; words underlined are additions.
V
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
PCS for CS/HB 157 2022
101 research institutions, or private entities.
102 Section 3. Section 337.025, Florida Statutes, is amended
103 to read:
104 337.025 Innovative transportation projects; department to
105 establish program.—
106 (1) The department may establish a program for
107 transportation projects demonstrating innovative techniques of
108 highway and bridge design, construction, maintenance, and
109 finance which have the intended effect of measuring resiliency
110 and structural integrity and controlling time and cost increases
111 on construction projects. Such techniques may include, but are
112 not limited to, state-of-the-art technology for pavement,
113 safety, and other aspects of highway and bridge design,
114 construction, and maintenance; innovative bidding and financing
115 techniques; progressive design-build contracts as specified in
116 subsection (2); accelerated construction procedures; and those
117 techniques that have the potential to reduce project life cycle
118 costs. To the maximum extent practical, the department must use
119 the existing process to award and administer construction and
120 maintenance contracts. When specific innovative techniques are
121 to be used, the department is not required to adhere to those
122 provisions of law that would prevent, preclude, or in any way
123 prohibit the department from using the innovative technique.
124 However, before using an innovative technique that is
125 inconsistent with another provision of law, the department must
Page 5 of 17
PCS for CSHB 157.DOCX
CODING: Words stricken are deletions; words underlined are additions.
V
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
PCS for CS/HB 157 2022
126 document in writing the need for the exception and identify what
127 benefits the traveling public and the affected community are
128 anticipated to receive. The department may enter into no more
129 than $120 million in contracts awarded annually for the purposes
130 authorized by this section.
131 (2) If the department determines that it is in the best
132 interests of the public, the department may combine the design
133 and construction phases of a project into a single contract and
134 select the design-build firm in the early stages of a project to
135 ensure that the design-build firm is part of the collaboration
136 and development of the design as part of a step-by-step
137 progression through construction. Such contract is referred to
138 as a progressive design-build contract. For progressive design-
139 build contracts, the selection and award processes must include
140 a two-phase process. For phase one, the department shall
141 competitively award the contract to a design-build firm based
142 upon qualifications. For phase two, the design-build firm shall
143 competitively bid construction trade subcontractor packages and,
144 based upon these bids, negotiate with the department a fixed
145 firm price or guaranteed maximum price that meets the project
146 budget and scope as advertised in the request for
147 qualifications.
148 (3) The annual cap on contracts provided in subsection (1)
149 does not apply to:
150 (a) Turnpike enterprise projects.
Page 6 of 17
PCS for CSHB 157.DOCX
CODING: Words stricken are deletions; words underlined are additions.
V
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
PCS for CS/HB 157 2022
151 (b) Progressive design-build contracts for complex, high-
152 risk projects with a minimum contract value of $400 million Low-
153 bid design-build milling and resurfacing contracts.
154 Section 4. Section 337.107, Florida Statutes, is amended
155 to read:
156 337.107 Contracts for right-of-way services.—
157 (1) The department may enter into contracts pursuant to s.
158 287.055 for right-of-way services on transportation corridors
159 and transportation facilities. Right-of-way services include
160 negotiation and acquisition services, appraisal services,
161 demolition and removal of improvements, and asbestos-abatement
162 services.
163 (2) For a construction project funded in the first 3 years
164 of the department’s adopted work program, a landowner with land
165 contiguous to a limited access facility may be allowed, under a
166 department-issued permit, to remove vegetation designated to be
167 removed as part of the construction project on a department
168 right-of-way in an area associated with a limited access
169 facility, within the same limits of removal as identified in the
170 final plans of the project.
171 Section 5. Subsections (15) and (16) of section 337.11,
172 Florida Statutes, are renumbered as subsections (16) and (17)
173 respectively, subsection (15) is added to that section, and
174 paragraphs (a) and (b) of subsection (7) are amended to read:
175 337.11 Contracting authority of department; bids;
Page 7 of 17
PCS for CSHB 157.DOCX
CODING: Words stricken are deletions; words underlined are additions.
V
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
PCS for CS/HB 157 2022
176 emergency repairs, supplemental agreements, and change orders;
177 combined design and construction contracts; progress payments;
178 records; requirements of vehicle registration.—
179 (7)(a) If the department determines that it is in the best
180 interests of the public, the department may combine the design
181 and construction phases of a building, a major bridge, a limited
182 access facility, or a rail corridor project into a single
183 contract. Such contract is referred to as a design-build
184 contract. Design-build contracts may be advertised and awarded
185 notwithstanding the requirements of paragraph (3)(c). However,
186 construction activities may not begin on any portion of such
187 projects for which the department has not yet obtained title to
188 the necessary rights-of-way and easements for the construction
189 of that portion of the project has vested in the state or a
190 local governmental entity and all railroad crossing and utility
191 agreements have been executed. Title to rights-of-way shall be
192 deemed to have vested in the state when the title has been
193 dedicated to the public or acquired by prescription.
194 (b) The department shall adopt by rule procedures for
195 administering design-build contracts, including progressive
196 design-build contracts. Such procedures shall include, but not
197 be limited to:
198 1. Prequalification requirements.
199 2. Public announcement procedures.
200 3. Scope of service requirements.
Page 8 of 17
PCS for CSHB 157.DOCX
CODING: Words stricken are deletions; words underlined are additions.
V
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
PCS for CS/HB 157 2022
201 4. Letters of interest requirements.
202 5. Short-listing criteria and procedures.
203 6. Bid proposal requirements.
204 7. Technical review committee.
205 8. Selection and award processes.
206 9. Stipend requirements.
207 (15) Each contract let by the department for performance
208 of bridge construction or maintenance over navigable waters must
209 contain a provision requiring general liability insurance, in an
210 amount to be determined by the department, that covers third-
211 party personal injury and property damage caused by vessels used
212 by the contractor in the performance of the work.
213 Section 6. Subsection (1) of section 337.1101, Florida
214 Statutes, is amended to read:
215 337.1101 Contracting and procurement authority of the
216 department; settlements; notification required.—
217 (1) When the department, or any entity or enterprise
218 within the department, determines that it is in the best
219 interest of the public to resolve a protest filed in accordance
220 with s. 120.57(3) of the award of a contract being procured
221 pursuant to s. 337.11 or related to the purchase of personal
222 property or contractual services being procured pursuant to s.
223 287.057, through a settlement that requires the department to
224 pay a nonselected responsive bidder a total sum of $1 million or
225 more, including any amount paid pursuant to s. 334.049, any
Page 9 of 17
PCS for CSHB 157.DOCX
CODING: Words stricken are deletions; words underlined are additions.
V
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
PCS for CS/HB 157 2022
226 amount paid pursuant to s. 337.11(8) which is not included in
227 the department's work program approved by the Legislature as
228 part of the General Appropriations Act, or any amount paid
229 pursuant to any other law, the department must:
230 (a) Document in a written memorandum by the secretary the
231 specific reasons that such settlement and payment to a
232 nonselected responsive bidder is in the best interest of the
233 state. The written memorandum must be included and maintained in
234 the department's permanent files concerning the procurement and
235 must include:
236 1. A description of the property rights, patent rights,
237 copyrights, trademarks, or the engineering design or other
238 design work that the department will acquire or retain as a
239 result of such settlement; and
240 2. The specific appropriation in the existing General
241 Appropriations Act which the department intends to use to
242 provide such payment.
243 (b) Provide prior written notification to the President of
244 the Senate, the Speaker of the House of Representatives, the
245 Senate and House of Representatives minority leaders, the chair
246 and vice chair of the Legislative Budget Commission, and the
247 Attorney General at least 5 business days, or as soon thereafter
248 as practicable, before the department makes the settlement
249 agreement final. Such written notification must include the
250 written memorandum required pursuant to paragraph (a).
Page 10 of 17
PCS for CSHB 157.DOCX
CODING: Words stricken are deletions; words underlined are additions.
V
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
PCS for CS/HB 157 2022
251 (c) Provide, at the time settlement discussions regarding
252 any such payment have begun in earnest, written notification of
253 such discussions to the President of the Senate, the Speaker of
254 the House of Representatives, the Senate and House of
255 Representatives minority leaders, the chair and vice chair of
256 the Legislative Budget Commission, and the Attorney General.
257 Section 7. Subsections (1), (4), and (7) of section
258 337.14, Florida Statutes, are amended to read:
259 337.14 Application for qualification; certificate of
260 qualification; restrictions; request for hearing.—
261 (1) Any contractor desiring to bid for the performance of
262 any construction contract in excess of $250,000 which the
263 department proposes to let must first be certified by the
264 department as qualified pursuant to this section and rules of
265 the department. The rules of the department must address the
266 qualification of contractors to bid on construction contracts in
267 excess of $250,000 and must include requirements with respect to
268 the equipment, past record, experience, financial resources, and
269 organizational personnel of the applying contractor which are
270 necessary to perform the specific class of work for which the
271 contractor seeks certification. Any contractor who desires to
272 bid on contracts in excess of $50 million and who is not
273 qualified and in good standing with the department as of January
274 1, 2019, must first be certified by the department as qualified
275 and must have satisfactorily completed two projects, each in
Page 11 of 17
PCS for CSHB 157.DOCX
CODING: Words stricken are deletions; words underlined are additions.
V
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
PCS for CS/HB 157 2022
276 excess of $15 million, for the department or for any other state
277 department of transportation. The department may limit the
278 dollar amount of any contract upon which a contractor is
279 qualified to bid or the aggregate total dollar volume of
280 contracts such contractor is allowed to have under contract at
281 any one time. Each applying contractor seeking qualification to
282 bid on construction contracts in excess of $250,000 shall
283 furnish the department a statement under oath, on such forms as
284 the department may prescribe, setting forth detailed information
285 as required on the application. Each application for
286 certification must be accompanied by audited, certified
287 financial statements prepared in accordance with generally
288 accepted accounting principles and auditing standards by a
289 certified public accountant licensed in this state or another
290 state. The audited, certified financial statements must be for
291 the applying contractor and must have been prepared within the
292 immediately preceding 12 months. The department may not consider
293 any financial information of the parent entity of the applying
294 contractor, if any. The department may not certify as qualified
295 any applying contractor who fails to submit the audited,
296 certified financial statements required by this subsection. If
297 the application or the annual financial statement shows the
298 financial condition of the applying contractor more than 4
299 months before the date on which the application is received by
300 the department, the applicant must also submit interim audited,
Page 12 of 17
PCS for CSHB 157.DOCX
CODING: Words stricken are deletions; words underlined are additions.
V
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
PCS for CS/HB 157 2022
301 certified financial statements prepared in accordance with
302 generally accepted accounting principles and auditing standards
303 by a certified public accountant licensed in this state or
304 another state. The interim financial statements must cover the
305 period from the end date of the annual statement and must show
306 the financial condition of the applying contractor no more than
307 4 months before the date that the interim financial statements
308 are received by the department. However, upon the request of the
309 applying contractor, an application and accompanying annual or
310 interim financial statement received by the department within 15
311 days after either 4-month period under this subsection shall be
312 considered timely. An applying contractor desiring to bid
313 exclusively for the performance of construction contracts with
314 proposed budget estimates of less than $2 $1 million may submit
315 reviewed annual or reviewed interim financial statements
316 prepared by a certified public accountant. The information
317 required by this subsection is confidential and exempt from s.
318 119.07(1). The department shall act upon the application for
319 qualification within 30 days after the department determines
320 that the application is complete. The department may waive the
321 requirements of this subsection for projects having a contract
322 price of $500,000 or less if the department determines that the
323 project is of a noncritical nature and the waiver will not
324 endanger public health, safety, or property.
325 (4) If the applicant is found to possess the prescribed
Page 13 of 17
PCS for CSHB 157.DOCX
CODING: Words stricken are deletions; words underlined are additions.
V
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
PCS for CS/HB 157 2022
326 qualifications, the department shall issue to him or her a
327 certificate of qualification that, unless thereafter revoked by
328 the department for good cause, will be valid for a period of 18
329 months after the date of the applicant's financial statement or
330 such shorter period as the department prescribes. Submission of
331 an application does and subsequent approval do not affect
332 expiration of the certificate of qualification, the ability
333 factor of the applicant, or the maximum capacity rating of the
334 applicant. An applicant may submit a written request with a
335 timely submitted application to keep an existing certificate of
336 qualification in place until the expiration date. If the request
337 is approved by the department, the current maximum capacity
338 rating of the applicant must remain in place until expiration of
339 the current certificate of qualification. If the department
340 finds that an application is incomplete or contains inadequate
341 information or information that cannot be verified, the
342 department may request in writing that the applicant provide the
343 necessary information to complete the application or provide the
344 source from which any information in the application may be
345 verified. If the applicant fails to comply with the initial
346 written request within a reasonable period of time as specified
347 therein, the department shall request the information a second
348 time. If the applicant fails to comply with the second request
349 within a reasonable period of time as specified therein, the
350 application shall be denied.
Page 14 of 17
PCS for CSHB 157.DOCX
CODING: Words stricken are deletions; words underlined are additions.
V
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
PCS for CS/HB 157 2022
351 (7) A "contractor" as defined in s. 337.165(1)(d) or his
352 or her "affiliate" as defined in s. 337.165(1)(a) qualified with
353 the department under this section may not also qualify under s.
354 287.055 or s. 337.105 to provide testing services, construction,
355 engineering, and inspection services to the department. This
356 limitation does not apply to any design-build, including
357 progressive design-build, prequalification under s. 337.11(7)
358 and does not apply when the department otherwise determines by
359 written order entered at least 30 days before advertisement that
360 the limitation is not in the best interests of the public with
361 respect to a particular contract for testing services,
362 construction, engineering, and inspection services. This
363 subsection does not authorize a contractor to provide testing
364 services, or provide construction, engineering, and inspection
365 services, to the department in connection with a construction
366 contract under which the contractor is performing any work.
367 Notwithstanding any other provision of law to the contrary, for
368 a project that is wholly or partially funded by the department
369 and administered by a local governmental entity, except for a
370 seaport listed in s. 311.09 or an airport as defined in s.
371 332.004, the entity performing design and construction
372 engineering and inspection services may not be the same entity.
373 Section 8. Subsection (2) of Section 337.168, Florida
374 Statutes, is amended to read:
375 337.168 Confidentiality of official estimates, identities
Page 15 of 17
PCS for CSHB 157.DOCX
CODING: Words stricken are deletions; words underlined are additions.
V
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
PCS for CS/HB 157 2022
376 of potential bidders, and bid analysis and monitoring system.—
377 (2) A document that reveals the identity of a person who
378 has requested or obtained a bid package, plan, or specifications
379 pertaining to any project to be let by the department is
380 confidential and exempt from the provisions of s. 119.07(1) for
381 the period that begins 2 working days before the deadline for
382 obtaining bid packages, plans, or specifications and ends with
383 the letting of the bid. A document that reveals the identity of
384 a person who has requested or obtained a bid package, plan, or
385 specifications pertaining to any project to be let by the
386 department before the 2 working days before the deadline for
387 obtaining bid packages, plans, or specifications remains a
388 public record subject to s. 119.07(1).
389 Section 9. Subsection (3) of section 338.165, Florida
390 Statutes, is amended to read:
391 338.165 Continuation of tolls.—
392 (3) Notwithstanding any other provision of law, the
393 department, including the turnpike enterprise, shall index toll
394 rates on existing toll facilities to the annual Consumer Price
395 Index or similar inflation indicators. Toll rate adjustments for
396 inflation under this subsection may be made no more frequently
397 than once a year and must be made no less frequently th an once
398 every 10 5 years as necessary to accommodate cash toll rate
399 schedules. Toll rates may be increased beyond these limits as
400 directed by bond documents, covenants, or governing body
Page 16 of 17
PCS for CSHB 157.DOCX
CODING: Words stricken are deletions; words underlined are additions.
V
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
PCS for CS/HB 157 2022
401 authorization or pursuant to department administrative rule.
402 Section 10. This act shall take effect July 1, 2022.
Page 17 of 17
PCS for CSHB 157.DOCX
CODING: Words stricken are deletions; words underlined are additions.
V
PCS for HB 315
HOUSE OF REPRESENTATIVES STAFF ANALYSIS
BILL #: PCS for HB 315 Transportation Facility Designations
SPONSOR(S): Commerce Committee
TIED BILLS: IDEN./SIM. BILLS: CS/SB 160
REFERENCE ACTION ANALYST STAFF DIRECTOR or
BUDGET/POLICY CHIEF
Orig. Comm.: 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 creates 15 designations for various transportation facilities across the state and directs DOT to erect
suitable markers for each designation.
The bill will have an insignificant negative fiscal impact to the State Transportation Trust Fund associated with
erecting suitable markers for the above designations. The cost can be absorbed within DOT’s 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: pcs0315.COM
DATE: 2/21/2022
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,
unless specifically provided otherwise 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
Effect of the Bill
The bill requires DOT to erect suitable markers for each of the following designations.
Reverend Murray Hamilton, Sr., Highway
Under the bill, that portion of U.S. 90 between Canal Street and Stewart Street in Santa Rosa County is
designated as “Reverend Murray Hamilton, Sr., Highway.”
Reverend Murray Hamilton, Sr., served in the United States Navy and worked for Monsanto/Solutia for
37 years. His life's work revolved around building the community, and he was influential in developing
many programs and organizations in Milton, Florida. Reverend Hamilton passed away on January 25,
2021.5
Ira Mae Wells-Bruce Memorial Highway
The bill designates that portion of S.R. 87 between E. Bay Boulevard and U.S. 98 in Santa Rosa
County as “Ira Mae Wells-Bruce Memorial Highway.”
Ira Mae Wells-Bruce was Santa Rosa County’s first female commissioner and presided over numerous
business and civic organizations. Additionally, Ms. Bruce was co-broker/owner of Century 21 Island
View Realty.6 Ms. Bruce passed away on December 1, 2020.7
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 Email from Sydney Fowler, Legislative Aide, Office of Representative Jayer Williamson, House Bill 315, (Oct. 27, 2021).
6 South Santa Rosa News (@SouthSRNews), Facebook (Dec. 1, 2020, 3:22 PM),
https://www.facebook.com/1619922901599897/posts/santa-rosa-countys-first-female-county-commissioner-has-passed-
away-it-is-with-i/2817435305181978/ (last visited Feb. 19, 2022).
7 Celebration of life to be held for Ira Mae Bruce, Navarre Press (May 1, 2021), https://navarrepress.com/celebration -of-
life-to-be-held-for-ira-mae-bruce/ (last visited Feb. 19, 2022).
STORAGE NAME: pcs0315.COM PAGE: 2
DATE: 2/21/2022
Deputy Sheriff Donta Manuel and Deputy Sheriff Jonathan Wallace Highway
The bill designates that portion of S.R. 715, also known as Bacom Point Road, between W. Morgan
Road and S.W. 14th Street in Palm Beach County as “Deputy Sheriff Donta Manuel and Deputy Sheriff
Jonathan Wallace Highway.”
On November 28, 2007, while attempting to remove stop sticks that were deployed as part of an effort
to slow a stolen vehicle, Deputy Donta Manuel and Deputy Jonathan Wallace were struck and killed by
a patrol car pursuing the stolen vehicle.8 Deputy Manuel was 33 years old and had served with the
Palm Beach County Sheriff’s Office for 13 years.9 Deputy Wallace was 23 years old and had served
with the Palm Beach County Sheriff’s Office for 1 year and 6 months. 10
Virginia Creighton Bridge
Under the bill, bridge number 100850 on S.R. 60/Courtney Campbell Causeway over Old Tampa Bay
in Hillsborough County is designated as “Virginia Creighton Bridge.”
Virginia (Ginger) Creighton worked in the field of wetland science and was key to developing the
Courtney Campbell Causeway – Old Tampa Bay Water Quality Improvement Project that provided
environmental credit for other DOT projects in the Tampa Bay Area. 11 Ms. Creighton passed away on
May 29, 2020.12
Arturo Diaz Artiles Plaza
The bill designates the intersection of S.W. 23rd Avenue and S.W. 8th Street in Miami-Dade County as
"Arturo Diaz Artiles Plaza.”
Arturo Diaz Artiles was a Cuban exile, who immigrated to the City of Miami in 1962. In 1965, he opened
the Santa Clara Pharmacy at the corner of Southwest 23rd Avenue and Southwest 8th Street in Miami.
Mr. Artiles also received the United Way of Miami-Dade County Gold award for 30 years of service to
his community, the Latin Real Estate Organization Board of Directors Award, and the City of Miami’s
Certification of Appreciation. Mr. Artiles was a founding member of the Latin Chamber of Commerce,
and the Miami-Dade County Commission declared February 25th as Arturo “Arturito” Diaz Artiles Day
and presented him with a key to the county.13
Sergeant First Class Michael C. Aten Memorial Highway
Under the bill, that portion of S.R. 19 between C.R. 48 and Lane Park Cutoff Road in Lake County is
designated as "Sergeant First Class Michael C. Aten Memorial Highway."
Sergeant First Class Michael C. “Soldier Mike” Aten served in the U.S. Army, became an Army Ranger,
and served his county for 26 years. During his service, Sergeant Aten earned numerous military
awards, among them, the Bronze Star while serving in Iraq; the Army Commendation Medal with
Combat “V,” denoting battlefield valor; the Armed Forces Expeditionary Medal; and the Global War on
Terrorism Service Medal. Sergeant Aten passed away after a motorcycle accident on January 3,
2020.14
8 Officer Down Memorial Page, Deputy Sheriff Donta J. Manuel, https://www.odmp.org/officer/ 19071-deputy-sheriff-donta-
j-manuel (last visited Feb. 19, 2022).
9 Id.
10 Officer Down Memorial Page, Deputy Sheriff Jonathan D. Wallace, https://www.odmp.org/officer/ 19072-deputy-sheriff-
jonathan-d-wallace (last visited Feb. 19, 2022).
11 Virginia (Ginger) Creighton Death Notice from the Florida Department of Transportation.
12 Virginia A. “Ginger” Creighton, Legacy.com, https://www.legacy.com/us/obituaries/staugustine/name/ virginia-creighton-
obituary?id=8236801 (last visited Feb. 19, 2022).
13 Miami-Dade Legislative Item File Number: 211394, Miami-Dade County,
https://www.miamidade.gov/govaction/matter. asp?matter=211394& file=true& fileAnalysis=false&yearFolder=Y2021 (last
visited Feb. 19, 2022);
14 Daily Commercial, Taps for Sgt. 1st Class “Soldier Mik e” Aten, January 11, 2020,
https://www.dailycommercial.com/story/news/local/2020/01/11/taps-for-sgt-lst-class-soldier-mike-aten/1918137007/ (last
visited Feb. 19, 2022).
STORAGE NAME: pcs0315.COM PAGE: 3
DATE: 2/21/2022
Warren Alvarez Memorial Bridge
The bill designates bridge number 720684 on I-95 over the Trout River in Jacksonville/Duval County as
"Warren Alvarez Memorial Bridge.”
Former two-term Jacksonville City Council member Warren Alvarez was a native and lifelong resident
of Jacksonville’s Northside and lived all of his life on his family’s dairy farm. Mr. Alvarez was active in
agricultural and civic organizations and activities, serving on many boards, commissions, and
organizations at the county and state levels. Known for his advocacy for his constituents, Mr. Alvarez
worked successfully to have Interstate 95 widened as it crosses the Trout River Bridge. Mr. Alvarez
passed away on March 6, 2021, at the age of 86.15
Deputy William J. Gentry, Jr., Highway
Under the bill, that portion of U.S. 98 between Haywood Taylor Boulevard and Lakeview Boulevard in
Highlands County is designated as “Deputy William J. Gentry, Jr., Highway.”
Deputy William J. Gentry, Jr., served with the Highlands County Sherriff’s Office for 13 years in various
capacities, including time on patrol, the K-9 Unit, the Special Investigations Unit, and as a field training
deputy.16 On May 6, 2019, Deputy Gentry and the deputy he was training responded to an animal
abuse call in Highlands County. Deputy Gentry attempted to make contact with the suspect, who
opened fire on Deputy Gentry. On May 7, 2019, Deputy Gentry succumbed to his injuries at the age of
40.17
Sergeant Eric John Twisdale Memorial Interchange
The bill designates the interchange at S.R. 23/First Coast Expressway and Henley Road in Clay
County as “Sergeant Eric John Twisdale Memorial Interchange.”
Sergeant Eric John Twisdale served with the Clay County Sheriff’s Office in various capacities for 22
years and previously served with the Jacksonville Sheriff’s Office. 18 Sergeant Twisdale received the
Sheriff’s Office’s Lifesaving Award in 2014 after he saved someone from drowning, and he was
recognized as Deputy of the Year in 2015 for “displaying exceptional valor.” 19 Sergeant Twisdale
passed away on August 19, 2020, after contracting COVID-19 due to a presumed exposure at the Clay
County Sheriff’s Office.20
Pio Ieraci Memorial Drive
The bill designates that portion of S.R. A1A between the northern terminus and southern terminus of
Galt Ocean Drive in Broward County as “Pio Ieraci Memorial Drive.”
After moving to Florida over 30 years ago, Pio Richard Ieraci became an active community leader in
the Fort Lauderdale Community. Throughout Mr. Ieraci’s time in Florida, he served as a member of the
City of Fort Lauderdale Education Advisory Board, Chairman of South Florida Business Advisors, Inc.,
Chairman of the Broward Beach Coalition, President of the Galt Mile Community Association, and
President of the Galt Ocean Club Condominium Association. Mr. Ieraci passed away on Dec ember 20,
2020, and is survived by his wife and two children.21
15 The Florida Times-Union, Warren Alvarez, https://www.legacy.com/us/obituaries/timesunion/name/warren -alvarez-
obituary?id=6685153 (last visited Feb. 19, 2022).
16 Legacy.Com, William J Gentry, Jr., https://www.legacy.com/obituaries/name/william-gentry-jr-obituary?pid=188976004
(last visited Feb. 19, 2022).
17 Officer Down Memorial Page, Deputy Sheriff William Jack son Gentry, Jr., https://www.odmp.org/officer/23672-deputy-
sheriff-william-jackson-gentry-jr (last visited Feb. 19, 2022).
18 Officer Down Memorial Page, Sergeant Eric John Twisdale, https://www.odmp.org/officer/24909-sergeant-eric-john-
twisdale (last visited Feb. 19, 2022).
19 Dan Scanlan, Remebered as ‘a cop’s cop,’ Clay County sergeant laid to rest after COVID-19 death, jacksonville.com
(Sept. 24, 2020), https://www.jacksonville.com/story/news/crime/2020/09/24/sgt -eric-twisdale-remembered-cops-cop-
funeral/3515087001/ (last visited Feb. 19, 2022).
20 Officer Down Memorial Page, supra note 18.
21 Dignity Memorial, Pio Richard Ieraci, https://www.dignitymemorial.com/obituaries/fort-lauderdale-fl/pio-ieraci-9961464
(last visited Feb. 19, 2022).
STORAGE NAME: pcs0315.COM PAGE: 4
DATE: 2/21/2022
Sgt. George Lee Taylor, Sr., Memorial Highway
The bill designates that portion of S.R. 520/W. King Street between S.R. 501/Clearlake Road and S.R.
519/Fiske Boulevard in Brevard County as “Sgt. George Lee Taylor, Sr., Memorial Highway.”
Sgt. George Lee Taylor, Sr., served in the United States Army from 1967 to 1971. After returning from
war, Sgt. Taylor founded National Veterans Homeless Support, which is estimated to have helped
reduce the homeless veteran population in Brevard County by 90 percent. Sgt. Taylor passed away on
May 17, 2020.22
Dr. Martin Luther King, Jr., Memorial Highway
The bill designates that portion of S.R. 519/Fiske Boulevard between Rosa L. Jones Drive and I-95 in
Brevard County as “Dr. Martin Luther King, Jr., Memorial Highway.”
Dr. Martin Luther King, Jr., was a civil rights leader and the youngest man to have received the Nobel
Peace Prize. Dr. King traveled over six million miles and spoke over twenty-five hundred times, with his
most well-known speech being the famous “I Have a Dream” address. On the evening of April 4, 1968,
Dr. King was assassinated.23
Anthony Reznik Boulevard
The bill designates that portion of S.R. 826/Sunny Isles Boulevard between N.E. 35th Avenue and S.R.
A1A in Miami-Dade County as "Anthony Reznik Boulevard."
Anthony Reznik was an 11-year-old boy from South Florida who was struck by a car while legally
crossing the street in Sunny Isles Beach, Florida. After his death, Anthony’s family decided to donate
his organs to help others. Anthony is survived by his parents and sister. 24
Cheryl H. Cates Memorial Bridge
Under the bill, the Cow Key Channel Bridge located at mile marker 4.1 on Overseas Highway in
Monroe County is designated as "Cheryl H. Cates Memorial Bridge."
Cheryl H. Cates was a long-time resident of Key West and an active member of the community. Mrs.
Cates served as The First Lady of Key West for 9 years, and she was involved in many organizations
and spearheaded numerous fundraisers for people and causes in her community. Mrs. Cates passed
away on December 2, 2020, and is survived by her husband, daughters, and grandchildren. 25
Soul of Miami Avenue
The bill designates that portion of N.W. 12th Avenue/John Henry Peavy Jr. Avenue between N.W. 62nd
Avenue and N.W. 71st Street in Miami-Dade County as “Soul of Miami Avenue.”
Liberty City is one of Miami’s most significant historically black neighborhoods. Liberty City played a
significant role in Miami’s unique black history. Some celebrities from Liberty City include rappers Trina
and Trick Daddy, NBA player Udonis Haslem with the Miami Heat since 2003, and NFL players Chad
22 Legacy, George Taylor Sr., https://www.legacy.com/us/obituaries/floridatoday/name/george-t aylor-obituary?id=8577009
(last visited Feb. 19, 2022).
23 The Nobel Prize, Martin Luther King Jr., https://www.nobelprize.org/prizes/peace/1964/king/biographical/ (last visited
Feb. 19, 2022).
24 Gina Benitez & Brandon Beyer, Family donates organs of 11-year-old boy struck , declared brain dead in Sunny Isles
Beach, 7 News Miami (Feb. 25, 2021), https://wsvn.com/news/local/family-donates -organs-of-11-year-old-boy-struck-
declared-brain-dead-in-sunny-isles-beach/ (last visited Feb. 19, 2022).
25 Keys Weekly, Obituary: In Loving Memory of Cheryl Cates, Dec. 11, 2020, https://keysweekly.com/42/obituary-in-
loving-memory-of-c heryl-cates/ (last visited Feb. 19, 2022).
STORAGE NAME: pcs0315.COM PAGE: 5
DATE: 2/21/2022
“Ochocinco” Johnson and Willis McGahee.26 The City of Miami passed a resolution allowing for the
creation of the Liberty City Soul District.27
B. SECTION DIRECTORY:
Section 1: Creates honorary transportation facility designations; directs DOT to erect suitable markers .
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 for each designation, which provides
for two signs at $520 per sign. Therefore, the bill has an estimated negative fiscal impact of $15,600
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.
26 Shayne Benowitz, The History of Liberty Square, Greater Miami Convention & Visitors Bureau (Jul. 22, 2020),
https://www.miamiandbeaches.com/things-to-do/history-and-heritage/the-history-of-liberty-square (last visited Feb. 19,
2022).
27 See City of Miami, Mark ed Agenda, City Commission (Oct. 28, 2021), available at
http://miamifl.iqm2.com/Citizens/FileOpen.aspx?Type=15&ID=2501& Inline= True (last visited Feb. 19, 2022).
STORAGE NAME: pcs0315.COM PAGE: 6
DATE: 2/21/2022
C. DRAFTING ISSUES OR OTHER COMMENTS:
None.
IV. AMENDMENTS/COMMITTEE SUBSTITUTE CHANGES
Not applicable.
STORAGE NAME: pcs0315.COM PAGE: 7
DATE: 2/21/2022
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
PCS for HB 315 2022
1 A bill to be entitled
2 An act relating to transportation facility
3 designations; providing honorary designations of
4 certain transportation facilities in specified
5 counties; directing the Department of Transportation
6 to erect suitable markers; providing an effective
7 date.
8
9 Be It Enacted by the Legislature of the State of Florida:
10
11 Section 1. Transportation facility designations;
12 Department of Transportation to erect suitable markers.-
13 (1) That portion of U.S. 90 between Canal Street and
14 Stewart Street in Santa Rosa County is designated as “Reverend
15 Murray Hamilton, Sr., Highway.”
16 (2) That portion of S.R. 87 between E. Bay Boulevard and
17 U.S. 98 in Santa Rosa County is designated as “Ira Mae Wells-
18 Bruce Memorial Highway.”
19 (3) That portion of S.R. 715/Bacom Point Road between W.
20 Morgan Road and S.W. 14th Street in Palm Beach County is
21 designated as "Deputy Sheriff Donta Manuel and Deputy Sheriff
22 Jonathan Wallace Highway."
23 (4) Bridge number 100850 on S.R. 60/Courtney Campbell
24 Causeway over Old Tampa Bay in Hillsborough County is designated
25 as "Virginia Creighton Bridge."
Page 1 of 3
CODING: Words stricken are deletions; words underlined are additions.
V
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
PCS for HB 315 2022
26 (5) The intersection of S.W. 23rd Avenue and S.W. 8th
27 Street in Miami-Dade County is designated as "Arturo Diaz
28 Artiles Plaza."
29 (6) That portion of S.R. 19 between C.R. 48 and Lane Park
30 Cutoff Road in Lake County is designated as "Sergeant First
31 Class Michael C. Aten Memorial Highway."
32 (7) Bridge number 720684 on I-95 over the Trout River in
33 Jacksonville/Duval County is designated as "Warren Alvarez
34 Memorial Bridge."
35 (8) That portion of U.S. 98 between Haywood Taylor
36 Boulevard and Lakeview Boulevard in Highlands County is
37 designated as "Deputy William J. Gentry, Jr., Highway."
38 (9) Upon completion of construction, the interchange at
39 First Coast Expressway/S.R. 23 and Henley Road in Clay County is
40 designated as "Sergeant Eric John Twisdale Memorial
41 Interchange."
42 (10) That portion of S.R. A1A between the northern terminus
43 and southern terminus of Galt Ocean Drive in Broward County is
44 designated as “Pio Ieraci Memorial Drive.”
45 (11) That portion of S.R. 520/W. King Street between S.R.
46 501/Clearlake Road and S.R. 519/Fiske Boulevard in Brevard
47 County is designated as "Sgt. George Lee Taylor, Sr., Memorial
48 Highway."
49 (12) That portion of S.R. 519/Fiske Boulevard between Rosa
50 L. Jones Drive and I-95 in Brevard County is designated as "Dr.
Page 2 of 3
CODING: Words stricken are deletions; words underlined are additions.
V
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
PCS for HB 315 2022
51 Martin Luther King, Jr., Memorial Highway."
52 (13) That portion of S.R. 826/Sunny Isles Boulevard between
53 N.E. 35th Avenue and S.R. A1A in Miami-Dade County is designated
54 as "Anthony Reznik Boulevard."
55 (14) The Cow Key Channel Bridge located at mile marker 4.1
56 on Overseas Highway in Monroe County is designated as "Cheryl H.
57 Cates Memorial Bridge."
58 (15) That portion of N.W. 12th Avenue/John Henry Peavy Jr.
59 Avenue between N.W. 62nd Avenue and N.W. 71st Street in Miami-
60 Dade County is designated as “Soul of Miami Avenue.”
61 (16) The Department of Transportation is directed to erect
62 suitable markers designating the transportation facilities as
63 described in this section.
64 Section 2. This act shall take effect July 1, 2022.
Page 3 of 3
CODING: Words stricken are deletions; words underlined are additions.
V
COMMERCE COMMITTEE
PCS for HB 315 by Rep. Williamson
Transportation Facility Designations
AMENDMENT SUMMARY
February 23, 2022
Amendment 1 by Rep. Williamson (Line 61):
• Adds designations for “Veterans Honor Highway,” “Private Tillman R. Clark
Memorial Bridge,” “Oswaldo Payá Way,” "Austin D. Gayne Memorial Highway,"
and “Pensacola Police Fallen Heroes Highway.”
COMMITTEE/SUBCOMMITTEE AMENDMENT
Bill No. PCS for HB 315 (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 Williamson offered the following:
3
4 Amendment
5 Remove line 61 and insert:
6 (16) That portion of S.R. 100 in Clay County between the
7 Bradford County line and the Putnam County line is designated as
8 “Veterans Honor Highway.”
9 (17) Bridge No. 380097 on U.S. 27 over the Fenholloway
10 River in Taylor County is designated as “Private Tillman R.
11 Clark Memorial Bridge.”
12 (18) That portion of S.R. 953/N.W. 42nd Avenue/Le Jeune
13 Road between N.W. 11th Street and N.W. 14th Street in Miami-Dade
14 County is designated as “Oswaldo Payá Way.”
15 (19) That portion of S.R. 408/Holland East-West Expressway
16 between the Mills Avenue Exit and the Rosalind Avenue Exit in
PCS for HB 315 a1
Published On: 2/22/2022 6:24:26 PM
Page 1 of 2
COMMITTEE/SUBCOMMITTEE AMENDMENT
Bill No. PCS for HB 315 (2022)
Amendment No. 1
17 Orange County is designated as "Austin D. Gayne Memorial
18 Highway."
19 (20) That portion of E. Main Street/Bayfront Parkway/E.
20 Gregory Street between S. Tarragona Street and the Pensacola Bay
21 Bridge in Escambia County is designated as “Pensacola Police
22 Fallen Heroes Highway.”
23 (21) The Department of Transportation is directed to erect
PCS for HB 315 a1
Published On: 2/22/2022 6:24:26 PM
Page 2 of 2
PCS for CS/HB 423
HOUSE OF REPRESENTATIVES STAFF ANALYSIS
BILL #: PCS for CS/HB 423 Building Regulation
SPONSOR(S): Commerce Committee
TIED BILLS: IDEN./SIM. BILLS:
REFERENCE ACTION ANALYST STAFF DIRECTOR or
BUDGET/POLICY CHIEF
Orig. Comm.: Commerce Committee Brackett Hamon
SUMMARY ANALYSIS
The Florida Building Codes Act provides a mechanism for the uniform adoption, updating, interpretation, and
enforcement of a single, unified state building code. The Florida Building Code (Building Code) must be
applied, administered, and enforced uniformly and consistently from jurisdiction to jurisdiction. Current law
requires local governments to enforce the Building Code and issue building permits.
Relating to building officials, building inspectors, and plans reviewers, the bill:
Allows a person to sit for the building inspector or plans examiner licensure test by completing a 4-year
internship with a private provider or a private provider’s firm in certain circumstances.
Requires the BCAIB to create a rule allowing partial completion of an internship program to be
transferred to any other authorized internship.
Prohibits the BCAIB from issuing a provisional license with a special condition or requirement that such
licensee be employed by a municipality, county, or other local government agency.
Relating to private providers, the bill:
Allows a person with a provisional license from the BCAIB to be a duly authorized representative for a
private provider in certain circumstances.
Requires local governments to provide equal access to all permitting and inspection documents to a
private provider, owner, and contractor in certain circumstances.
Defines “reasonable administrative fee.”
Increases the amount of time, local building officials have to issue a certificate of occupancy or a notice
of deficiencies for permits that are not related to single- or two-family dwellings.
Provides that if a notice of deficiency is not issued within the required time-period:
o A certificate is “automatically” granted, instead of “deemed” granted; and
o Local building officials must provide the applicant with a certificate of occupancy within 10 days.
Relating to “demolition” building permits, the bill:
Prohibits local governments from preventing private property owners from demolishing single-family
buildings that are in certain flood zones, while exempting certain historic buildings.
Limits the review process for applications for such demolition permits and provides.
Prohibits local governments from requiring additional building requirements for new homes built on the
construction site of such demolished single-family buildings.
Relating to local building departments, the bill:
Requires local governments to review additional information for an application for certain building
permits within a certain time-period.
Provides a cause of action for certain individuals and associations to enforce the requirement that local
governments must use excess funds generated by Building Code enforcement for lawful purposes.
The bill has an indeterminate fiscal impact on local governments and does not appear to have a fiscal impact
on the state.
The bill provides for an effective date of July 1, 2022.
This docum ent does not reflect the intent or official position of the bill sponsor or House of Representatives .
STORAGE NAME: pcs0423.COM
DATE: 2/21/2022
FULL ANALYSIS
I. SUBSTANTIVE ANALYSIS
A. EFFECT OF PROPOSED CHANGES:
The Florida Building Code
In 1974, Florida adopted legislation requiring all local governments to adopt and enforce a minimum
building code that would ensure that Florida’s minimum standards were met. Local governments could
choose from four separate model codes. The state’s role was limited to adopting all or relevant parts of
new editions of the four model codes. Local governments could amend and enforce their local codes as
they desired.1
In 1992, Hurricane Andrew demonstrated that Florida’s system of local codes did not work. Hurricane
Andrew easily destroyed those structures that were allegedly built according to the strongest code. The
Governor eventually appointed a study commission to review the system of local codes and make
recommendations for modernizing the system. The 1998 Legislature adopted the study commission’s
recommendations for a single state building code and enhanced the oversight role of the state over
local code enforcement. The 2000 Legislature authorized implementation of the Florida Building Code
(Building Code) and that first edition replaced all local codes on March 1, 2002. 2 The current edition of
the Building Code is the seventh edition, which is referred to as the 2020 Florida Building Code.3
Chapter 553, part IV, F.S., is known as the “Florida Building Codes Act” (Act). The purpose and intent
of the Act is to provide a mechanism for the uniform adoption, updating, interpretation, and
enforcement of a single, unified state building code. The Building Code must be applied, administered,
and enforced uniformly and consistently from jurisdiction to jurisdiction. 4
The Florida Building Commission was statutorily created to implement the Building Code. The
Commission, which is housed within the Department of Business and Profess ional Regulation (DBPR),
is a 19-member technical body made up of design professionals, contractors, and government experts
in various disciplines covered by the Building Code. The Commission reviews several International
Codes published by the International Code Council, 5 the National Electric Code, and other nationally
adopted model codes to determine if the Building Code needs to be updated and adopts an updated
Building Code every three years.6
Local Enforcement of the Florida Building Code
The Legislature intends that local governments have the power to inspect all buildings, structures, and
facilities within their jurisdictions to protect the public’s health, safety, and welfare.7
Every local government must enforce the Building Code and issue building permits.8 It is unlawful for a
person, firm, or corporation to construct, erect, alter, repair, secure, or demolish any building without
first obtaining a permit from the local government enforcing agency or from such persons as may be
directed, by resolution or regulation, to issue such permit, upon the payment of reasonable fees as set
forth in a schedule of fees adopted by the enforcing agency.9
1 The Florida Building Commission Report to the 2006 Legislature, Florida Department of Community Affairs, p. 4,
http://www.floridabuilding.org/ fbc/publications/2006_Legislature_Rpt _rev2.pdf (last visited Nov. 11, 2021).
2 Id.; DBPR, Building Code Information System, https://floridabuilding.org/c/default.aspx# (last visited on Nov. 11, 2021).
3 Id.
4 See s. 553.72(1), F.S.
5 The International Code Council (ICC) is an association that develops model codes and standards used in the design,
building, and compliance process to “construct safe, sustainable, affordable and resilient structures.” International Code
Council, About the ICC, https://www.iccsafe.org/about/who-we-are/ (last visited Dec. 13, 2021).
6 Ss. 553.73, and 553.74, F.S.
7 S. 553.72, F.S.
8 Ss. 125.01(1)(bb), 125.56(1), and 553.80(1), F.S.
9 See ss. 125.56(4)(a), 553.79(1), F.S.
STORAGE NAME: pcs0423.COM PAGE: 2
DATE: 2/21/2022
Any construction work that requires a building permit also requires plans and inspections to ensure the
work complies with the Building Code. The Building Code requires certain building, electrical, plumbing,
mechanical, and gas inspections.10 Construction work may not be done beyond a certain point until it
passes an inspection. Generally speaking, a permit for construction work that passes the required
inspections is considered completed or closed. 11
Building Officials, Inspectors, Plans Examiners, and Private Providers – Current Situation
Building officials, inspectors, and plans examiners are regulated by the Florida Building Code
Administrators and Inspectors Board (BCAIB) within DBPR. The BCAIB consists of nine members
appointed by the Governor and subject to confirmation by the Senate. 12
A building code administrator, otherwise known as a building official, is a local government employee or
a person contracted by a local government who supervises building code activities, including plans
review, enforcement, and inspection.13
A building code inspector (inspector) inspects construction that requires permits to determine
compliance with the Building Code and state accessibility laws. Inspectors are divided into several
different categories. An inspector’s ability to practice is limited to the category or categories under
which the inspector has been licensed. The inspector categories are: 14
Building inspector
Coastal construction inspector
Commercial electrical inspector
Residential electrical inspector
Mechanical inspector
Plumbing inspector
Residential inspector
Electrical inspector
In 2020, the Legislature renamed the “one and two family dwelling inspector” category as the
“residential inspector” category and expanded the scope of practice to include inspecting one-family,
two-family, or three-family residences, and accessory use structures in connection therewith, for
compliance with the building, plumbing, mechanical, accessibility, and electrical codes. 15
A plans examiner reviews plans submitted for building permits to determine design compliance with
construction codes. The term includes a residential plans examiner who is qualified to determine that
plans submitted for building permits comply with the applicable residential building, plumbing,
mechanical, electrical, gas, energy, accessibility, and other applicable construction codes. A plans
examiner’s ability to practice is limited to the category or categories under which the plans examiner
has been licensed. The plans examiner categories are:16
Building plans examiner
Plumbing plans examiner
Mechanical plans examiner
10 S. 110, Seventh edition of the Florida Building Code (Building).
11 Doug Wise, Closing Inactive & Excluded Building Permits, Palm Beach County Planning, Zoning
& Building
Department, Building Division, http://discover.pbcgov.org/pzb/building/BuildingCodes/PBO-
126%20%E2%80%93%20Closing%20Inactive% 20and% 20Excluded%20Building%20Permits.pdf (last visited Nov. 11,
2021).
12 S. 468.605, F.S.
13 S. 468.603(2), F.S.
14 See s. 468.603(5), F.S.
15 Ch. 2020-160, s. 19, Laws of Fla., codified at s. 468.603(5)(f), F.S.
16 See s. 468.603(8), F.S.
STORAGE NAME: pcs0423.COM PAGE: 3
DATE: 2/21/2022
Electrical plans examiner
In order to sit for the plans examiner or inspector exam a person must be at least 18 years of age, be of
good moral character, and meet one of the following eligibility requirements:17
Have 4 years of combined relevant experience;
Have 3 years of combined postsecondary education and relevant experience;
Have 3 years of combined technical education and relevant experience;
Complete an approved cross-training program and have at least 2 years of experience;
Hold a standard certificate issued by the BCAIB or a firesafety inspector license; and
o have at least 4 years of relevant experience as an inspector or plans examiner;
o have a minimum of 3 years of experience in firesafety inspection or firesafety plan
review and have completed a training program of not less than 100 hours in the new
category sought;
o complete an approved training program of not less than 200 hours in inspection or plans
review except for one-family and two family dwelling training programs,18 which may
not be less than 500 hours; or
Complete a 4-year internship certification program.
A person who is qualified to sit for the building official, plans examiner, or inspector exam but has not
taken the exam may be granted a provisional license by the BCAIB. A provisional license allows a
person to engage in the duties of a building official, inspector, or plans examiner.19
Provisional licenses are valid for two years, but may be renewed by the BCAIB for just cause. A
provisional license is not valid for more than three years. However, an applicant who is obtaining
licensure as an inspector or plans examiner through an internship may apply to the BCAIB for a
provisional license that is valid for the duration of the internship. 20
The BCAIB may issue provisional licenses with special conditions or requirements relating to the place
of employment of the licensee, the supervision of the licensee on a consulting or advisory basis, or
other matters that the BCAIB deems necessary to protect the public safety and health.21
Internship Programs
After the recession in 2008, Florida experienced a shortage of inspectors, plans examiners, and
building officials on account of many of them being laid off. In at least one county, the shortage forced
the local building board to rehire retired inspectors.22
17 S. 468.609(2), F.S.
18 “One-family and two family dwelling” may need to be renamed to “residential” since the Legislature renamed the one -
family and two- family dwelling inspector license to the residential inspector license during the 2020 Legislative Session.
19 S. 468.609(7) and (10), F.S.
20 Id.
21 Id.
22 See James Sullivan, Charles Kibert, Andriel Fenner, & Shirley Morque, Florida Construction Work force Task force:
Address training issues among building code inspectors to increase the number qualified inspectors ,(March 9, 2017)
http://www.cce.ufl.edu/wp-content/uploads/2016/12/6-Florida-Construction-Work force-Taskforce-Address-training-issues-
among-building-code-inspectors-to-increase-the-number-qualified-1.pdf (last visited Nov. 23, 2021).
STORAGE NAME: pcs0423.COM PAGE: 4
DATE: 2/21/2022
In response to the shortage, during the 2017 Legislative Session, the Legislature created the 4-year
internship program as an additional way to obtain licensure as a plans examiner or inspector.23 A
person may sit for the plans examiner or inspector exam in all categories if the person is at least 18
years of age, is of good moral character, and completes an internship program. The requirements of
the internship program are:24
Completing a 4-year internship as an inspector or plans examiner while employed full-time by
a local government, under the direct supervision of a building official. Proof of graduation with
a related vocational degree or college degree or of verifiable work experience may be
exchanged for the internship experience requirement year-for-year, but may reduce the
requirement to no less than 1 year;
Passing an ICC administered examination in the license category sought;
Passing the principles and practice examination before completing the internship program;
Passing a BCAIB-approved 40-hour code training course in the license category sought before
completing the internship; and
Obtaining a favorable recommendation from the supervising building official after completion of
the internship.
Current law requires the BCAIB to establish by rule that partial completion of the internship program
may be transferred between jurisdictions.25
Currently, the 4-year internship program only applies to a person employed full-time by a local
government, and does not apply if the person is employed full-time with a private entity that provides
building inspection and/or plans review services.
Private Providers
In 2002, section 553.791, F.S., was created to allow property owners and contractors to hire licensed
building code officials, engineers, and architects, referred to as private providers, to review building
plans, perform building inspections, and prepare certificates of completion.
Private providers and their duly authorized representatives are able to approve building plans and
perform building code inspections as long as the plans approval and building inspections are within the
scope of the provider’s or representative’s license.
Current law defines “private provider” as person licensed as a building official, engineer, or as an
architect. Licensed building inspectors and plans examiners may perform inspections for additions and
alterations that are limited to 1,000 square feet or less in residential buildings.26
Current law defines “duly authorized representative” as an employee of a private provider identified in a
permit application who reviews plans or performs inspections, and is licensed as an engineer, architect,
building official, inspector, or plans examiner. The term does not include a person with a provisional
license by the BCAIB.27
If an owner or contractor opts to use a private provider, the local government must calculate the cost
savings to its building department and reduce the building permit fees accordingly.28
23 Ch. 2017-149, s. 5, Laws of Fla., codified at s. 468.609(2)(c)7., F.S.
24 S. 468.609(2), F.S.
25 S. 468.609(10), F.S.
26 S. 553.791(1)(n) and (3), F.S.
27 S. 553.791(1)(f) and (8), F.S.
28 S. 553.791(2)(b), F.S.
STORAGE NAME: pcs0423.COM PAGE: 5
DATE: 2/21/2022
A local government may not charge a fee for building inspections when an owner or contractor uses a
private provider but may charge a “reasonable administrative fee.” 29 However, current law does not
define a “reasonable administrative.”
A building official may audit a private provider to ensure the private provider and their duly authorized
agent has reviewed the building plans and is performing the required inspections. A building official
may deny a building permit or a request for a certificate of completion if the building construction or
plans do not comply with the Building Code. A building official may also issue a stop work order at any
time if he or she determines any condition of the construction poses an immediate threat to public
safety and welfare.30
When a property owner or a contractor elects to use a private provider, he or she must notify the
building official, on a form adopted by the Florida Building Commission, at the time of the permit
application or no less than two business days before the first or next scheduled inspection.31
A private provider who approves building plans must sign a sworn affidavit that the plans comply with
the Building Code and the private provider or their duly authorized representative is authorized to
review the plans.32 Upon receipt of a building permit application from a private provider, a building
official has 20 business days to grant or deny the permit. Denying a permit automatically tolls the
remaining 20 business days.33
Before a private provider or their duly authorized representative performs building inspections, the
private provider must notify the building official of each inspection the business day before the
inspection. A local building official may visit a building site as often as necessary to ensure the required
inspections are being performed. Construction work on a building may continue as long as the private
provider or their duly authorized representative passes each inspection and the private provider gives
proper notice of each inspection to the building official.34
A private provider must post records of every inspection, including the results of the inspections,
electronically or on the jobsite and provide the records to the local building official within two business
days of posting the records.35
Upon completion of all required inspections, a private provider must give the building official a record of
all the inspections, a request for a certificate of occupancy or certificate of completion, and a sworn
statement indicating compliance with the Building Code. Upon receipt of the request and approval of all
other governmental approvals, the building official has two business days to issue the certificate of
occupancy or certificate of completion or provide the permit applicant a notice of deficiencies.36
If the local building official does not provide a notice of the deficiencies within two business days, the
request for a certificate of occupancy or certificate of completion is deemed granted, and the local
building official must issue the certificate of occupancy or certificate of completion the next
business day.37
29 Id.
30 S. 553.791(1), (14), and (19), F.S.
31 S. 553.791(4)-(5), F.S.
32 S. 553.791(6), F.S.
33 S. 553.791(7), F.S.
34 S. 553.791(9) and (18), F.S.
35 S. 553.791(11), F.S.
36 S. 553.791(11)-(13), F.S.
37 Id.
STORAGE NAME: pcs0423.COM PAGE: 6
DATE: 2/21/2022
Building Officials, Inspectors, Plans Examiners, and Private Providers – Effect of the Bill
The bill corrects a scrivener’s error and renames the “one-family and two-family dwelling” training
program as the “residential” training program in order to conform with the use of “residential inspector”
in related provisions of Florida Statutes.
The bill provides that a person may complete the 4-year internship as a building code inspector or
plans examiner while employed full-time with a private provider or a private provider’s firm, which
performs the services of a building inspector or plans examiner, while under the direct supervision of a
licensed building official.
The bill also provides that the BCAIB must create a rule allowing partial completion of an internship
program to be transferred between any authorized internship provider, including local jurisdictions or
private providers, or a private provider’s firm.
The bill removes “the supervision of the licensee on a consulting or advisory basis” from the list of
examples of specifically identified “special conditions or requirements” to be used by the BCAIB when
issuing provisional licenses.
The BCAIB may still issue a provisional license with a special condition or requirement that the BCAIB
deems necessary to protect the public safety and health. However, the bill prohibits the BCAIB from
issuing a provisional license with a special condition or requirement related to employment by a
municipality, county, or other local government agency.
Private Providers
The bill provides that a person with a provisional license issued by the BCAIB may be a duly authorized
representative for a private provider. A duly authorized representative, who only has a provisional
license, must be under the direct supervision of a licensed building official.
The bill provides that if an owner or contractor retains a private provider for plans review or inspection
services the local government must provide equal access to all permitting and inspection documents
and reports to the private provider, the owner, and the contractor as long as such access is provided by
software that protects exempt records from disclosure.
A “reasonable administrative fee” must be based on the cost that is actually incurred by the local
government, including the labor cost of the personnel providing the service, or the cost attributable to
the local government for the clerical and supervisory assistance required, or both.
The bill provides that upon receiving a request for a certificate of occupancy or certificate of completion
and approval of all other government approvals, a building official has 10 business days, instead of
two business days, to issue the certificate or provide the permit applicant a notice of deficiencies.
However, if the permit is related to a single-family or two-family dwelling, the local building official still
has only two business days to issue the certificate or provide the permit applicant a notice of
deficiencies.
The bill also provides that payment of all outstanding fees is included in “all other government
approvals,” and must be paid before the time-period begins for a local building official to issue a
certificate of occupancy or certificate of completion or provide the permit applicant a notice of
deficiencies.
If a local building official does not provide a notice of deficiencies within two business days, the request
for a certificate of occupancy or certificate of completion is “automatically” granted and considered
issued the next business day, instead of “deemed” granted and required to be issued by the local
building official on the next business day.
STORAGE NAME: pcs0423.COM PAGE: 7
DATE: 2/21/2022
The bill also provides that if a local building official does not provide a notice of deficiencies within ten
business days or two business days, the local building official must provide the permit applicant with
the written certificate of occupancy or certificate of completion within 10 days after it has been
automatically granted and considered issued.
Demolition Building Permits – Current Situation
It is unlawful for a person, firm, or corporation to construct, erect, alter, repair, secure, or demolish any
building without first obtaining a building permit from the local government or from such persons as
may, by resolution or regulation, be directed to issue such permit, upon the payment of reasonable fees
as set forth in a schedule of fees adopted by the enforcing agency.38
According to news reports, since 2019, there has been an uptick in permits to demolish older single-
family homes in South Florida in order to build new single-family homes.39
Some local governments in Florida have adopted land development regulations that determine certain
older single-family buildings to be historic. Some local governments have placed restrictions on
property owners from obtaining permits for the demolition of the older single- family buildings that the
local governments have deemed historic. Below are examples of such regulations:
Prohibiting certain building permits, such as demolition permits, for buildings that are being
considered for historic designation.40
Requiring a public hearing before a preservation board. 41
Requiring a special demolition permit.42
Requiring new construction on the site of the demolished structure to be subject to certain
architectural regulations, related to:43
o The colors, pattern, and trim used in the building’s façade.
o Design of the roof.
o The proportions and relationships between doors and windows.
Proponents to these land development regulations argue that people buy property in order to demolish
homes that are designed by noteworthy architects, owned by famous people, or reflect Florida’s history.
Proponents argue these regulations are needed to protect Florida’s history and preserve Florida’s
character and architectural style.44
Opponents of these regulations argue that these older homes are damaged, do not meet the Building
Code’s minimum flood elevation requirements, and can be demolished for a new home that meets the
requirements of the current Building Code.45
38 S. 553.79(1), F.S.
39 Pedro Portal, More demolition applications for historic houses in Miami Beach, Miami Herald (Jan. 9, 2022)
https://www.miamiherald.com/news/business/real -estate-news/article257166757.html (last visited Jan. 12, 2022).
40 Id.
41 Article 8, Coral Gables Zoning Code; Preserving Our Past: A Guide to Historic Preservation in Coral Gables,
https://evogov.s3.amazonaws.com/media/91/media/52093.pdf (last visited Jan. 17, 2022).
42 Sec. 54-71., Town of Palm Beach Code of Ordinances.
43 Sec. 54-122., Town of Palm Beach Code of Ordinances.
44 Miami Herald Editorial Board, Historic-home teardowns risk washing away Miami Beach’s character in a flood of cash,
Miami Herald (Jan. 11, 2022) https://www.miamiherald.com/opinion/editorials/article257198932.html (last visited Jan. 17,
2022).
45 Pedro Portal, Miami Beach older homes demolished in part because of 'flood requirements', Miami Herald (Jan. 9,
2022) https://www.miamiherald.com/news/business/real -estate-news/article257166737.html (last visited Jan. 12, 2022);
CBS Miami, Miami Beach Waterfront Home Of Notorious Prohibition-Era Gangster Al Capone Slated For Demolition,
https://miami.cbslocal.com/video/5955888-miami-beach-waterfront-home-of-notorious-prohibition-era-gangster-al-capone-
slated-for-demolition/ (last visited Jan. 17, 2022).
STORAGE NAME: pcs0423.COM PAGE: 8
DATE: 2/21/2022
Demolition Building Permits – Effect of the Bill
The bill provides that a local law, ordinance, or regulation may not prohibit or otherwise restrict the
ability of a private property owner to obtain a building permit to demolish his or her single-family
residential structure provided that:
Such structure Is located in a coastal high-hazard area, moderate flood zone, or special flood
hazard area according to a Flood Insurance Rate Map issued by the Federal Emergency
Management Agency for the purpose of participating in the National Flood Insurance Program; 46
The lowest finished floor elevation of such structure is at or below base flood elevation as
established by the Building Code or a higher base flood elevation as may be required by local
ordinance, whichever is higher; and
Such permit complies with all applicable Building Code, Fire Prevention Code, and local
amendments to such codes.
An application for a demolition permit for such single-family structure may only be reviewed
administratively for compliance with the Building Code, Fire Prevention Code, local amendments to
such codes, and any regulations applicable to a similarly situated parcel. Such applications may not be
subject to any additional local land development regulations or public hearings.
A local government may not penalize a private property owner for a demolition that is in compliance
with the demolition permit.
If a single-family residential structure is demolished pursuant to a demolition permit, a local government
may not impose additional regulatory or building requirements on the new single-family residential
structure constructed on the site of the demolished structure that would not otherwise be applicable to a
similarly situated vacant parcel.
The bill provides that this does not apply to a:
Structure designated on the National Register of Historic Places;47
Privately owned single-family residential structure designated historic by a local, state, or
federal governmental agency on or before January 1, 2022; or
Privately owned single-family residential structure designated historic after January 1, 2022, by
a local, state, or federal governmental agency with the consent of its owner.
Local Government Review of Building Permit Applications – Current Situation
Development Orders and Permits
Under the Community Planning Act, a development permit is any official action of a local government
that has the effect of permitting the development of land including, but not limited to, building permits,
zoning permits, subdivision approval, rezoning, certifications, special exceptions, and variances.48 A
46 In order to support the National Flood Insurance Program, FEMA identifies, publishes, and periodically updates flood
hazard data nationwide. This data is provided to communities in the form of a Flood Insurance Rate Map and Flood
Insurance Study report, typically prepared in a countywide format. FEMA, Adoption of Flood Insurance Rate Maps by
Participating Communities, FEMA 495 January 2019, https://www.fema.gov/sites/default/files/2020-07/fema_adoption-
flood-insurance-rate-maps-participating-communities_bulletin.pdf (last visited Jan. 17, 2022).
47 The National Register of Historic Places is the federal government’s official list of historic places in the United States.
The National Historic Preservation Act of 1966 authorized the register, which is administered by the National Park
Service. In order to be listed on the register the owner of the property must not object. National Park Service, What is the
National Register of Historic Places, https://www.nps.gov/subjects/nationalregister/ what-is-the-national-register. htm (last
visited Jan. 17, 2022); National Park Service, How to List a Property, https://www.nps.gov/subjects/nationalregister/how -
to-list-a-property.htm (last visited Jan. 17, 2022).
48 S. 163.3164(16), F.S.
STORAGE NAME: pcs0423.COM PAGE: 9
DATE: 2/21/2022
development order is issued by a local government and grants, denies, or grants with conditions an
application for a development permit.49
Within 30 days of receiving an application for a development permit or development order, a county or
municipality must review the application and issue a letter to the applicant indicating that the application
is complete or specifying the deficiencies.50 If the county or municipality identifies deficiencies, the
applicant has 30 days to submit the required additional information.51
When reviewing an application for a development permit or development order, not including building
permit applications, a county or municipality may not request additional information from the applicant
more than three times, unless the applicant waives the limitation in writing. 52
If a county or municipality requests additional information from the applicant and the applicant provides
the information within 30 days of receiving the request, the county or municipality must:53
Review the additional information and issue a letter to the applicant indicating that the
application is complete or specifying the remaining deficiencies within 30 days of receiving the
information, if the request is the county or municipality’s first request;
Review the additional information and issue a letter to the applicant indicating that the
application is complete or specifying the remaining deficiencies within 10 days of receiving the
information, if the request is the county or municipality’s second request; and
Deem the application complete within 10 days of receiving the information or proceed to
process the application for approval or denial unless the applicant waived the county or
municipality’s time limitations in writing, if the request is the county or municipality’s third
request.
Before a third request for information, the applicant must be offered a meeting to attempt to resolve
outstanding issues.54 If the applicant believes the request for additional information is not authorized by
ordinance, rule, statute, or other legal authority, the applicant may request the county or municipality
proceed to process the application for approval or denial.55 If denied, the county or municipality is
required to give written notice to the applicant and must provide reference to the applicable legal
authority for the denial of the permit.56
Once an application is deemed complete, a county or municipality must approve, approve with
conditions, or deny the application within 120 days or 180 days for applications that require final action
through a quasi-judicial hearing or a public hearing.57
Building Permit Applications
Local governments are required to review certain building permit applications within a specified time
period after receiving the application.58 These permit types include, but are not limited to, construction
or installation of an accessory structure, installation of an alarm system, a nonresidential building less
than 25,000 square feet, electric, plumbing, mechanical, or roofing systems, master building permits, or
the construction of single-family residential buildings.59
49 See ss. 125.022, 163.3164(15), and 166.033, F.S.
50 Ss. 125.022(1) and (2), and 166.033 (1) and (2), F.S.
51 Id.
52 Ss. 125.022(2)(a) and 166.033(2)(a), F.S.
53 Ss. 125.022(2) and 166.033(2), F.S.
54 Id.
55 Id.
56 Ss. 125.022(3) and 166.033(3), F.S.
57 Ss. 125.022(1) and 166.033(1), F.S.
58 S. 553.792, F.S.
59 S. 553.792(2), F.S.
STORAGE NAME: pcs0423.COM PAGE: 10
DATE: 2/21/2022
When a local government receives an application for a building permit, except for master building
permits, and single-family residential buildings, the local government must: 60
Inform the applicant within 10 days of receiving the application what additional information, if
any, is needed to complete the application;61
Notify the applicant within 45 days of the application being deemed complete if additional
information is necessary to determine the sufficiency of the application; 62 and
Approve, approve with conditions, or deny the application within 120 days following receipt of
the completed application.63
These time limitations do not apply when a law, agency rule, or local ordinance specify different
timeframes for review of local building permit applications, for permits for wireless communication
facilities, or when both parties agree to an extension.64
Local governments are required to reduce the permit fee for any building permit application by 10
percent of the original permit fee for each business day that a local government fails to meet the time
period required for building permit application approval by statute or local ordinance.65 This requirement
does not apply if the local government and the applicant have agreed to an extension of time to
process the permit.
Local Government Review of Building Permit Applications – Effect of the Bill
The bill provides that a local government may only make three requests for additional information from
an applicant applying for the following types of building permits:
Accessory structure.
Alarm permit.
Nonresidential buildings less than 25,000 square feet.
Electric.
Irrigation permit.
Landscaping.
Mechanical.
Plumbing.
Residential units other than a single-family unit.
Multifamily residential not exceeding 50 units.
Roofing.
Signs.
Site-plan approvals and subdivision plats not requiring public hearings or public notice.
Lot grading and site alteration associated with the permit application
However, an applicant may agree in writing to waive the limitation that local governments may only
make three requests for additional information for such permits.
60 S. 553.792(1), F.S.
61 If the local government fails to provide written notice to the applicant within the 10-day window, the application is
deemed to be properly completed.
62 If additional information is needed the local government must s pecify what additional information is necessary.
The applicant may submit the additional information to the local government or request that the local government act on
the application without the additional information.
63 This period is tolled during the time an applicant is responding to a request for additional information and may be
extended by mutual consent of the parties.
64 S. 553.792(2), F.S.
65 S. 553.792(1)(b), (2)(b), F.S.
STORAGE NAME: pcs0423.COM PAGE: 11
DATE: 2/21/2022
If a local government makes a request for additional information from an applicant for one the above
building permits, and the applicant provides the information within 30 days of receiving the request, the
local government must:
Review the additional information and determine the application is complete, approve the
application, approve the application with conditions, deny the application, or specify the
remaining deficiencies within 15 days of receiving the information from the applicant, if the
request is the local government’s first request.
Review the additional information and determine the application is complete, approve the
application, approve the application with conditions, deny the application, or specify the
remaining deficiencies within 10 days of receiving the information from the applicant, if the
request is the local government’s second request.
Deem the application is complete, approve the application, approve the application with
conditions, deny the application, or specify the remaining deficiencies within 10 days of
receiving the information from the applicant, if the request is the local government’s third
request.
Prior to making a third request for information the local government must offer to meet with the permit
applicant to attempt to resolve outstanding issues.
If the applicant believes the request for additional information is not authorized by ordinance, rule,
statute, or other legal authority, the local government, at the applicant’s request, shall proceed to
process the application for approval, approval with conditions, or denial.
If a local government fails to meet these deadlines it must reduce the building permit fee by 10 percent
for each business day that it fails to meet the deadline. However, these time limitations do not apply
when a law, agency rule, or local ordinance specifies different timeframes for review of local building
permit applications, for permits for wireless communication facilities, or when both parties agree to an
extension.
Local Government Building Permit Fees – Current Situation
Each local government may provide a schedule of reasonable fees in order to cover the costs of
inspection and enforcement of the Building Code.66 A local government entity’s fees, including any fines
or investments, must be used solely for carrying out that local government entity’s responsibilities in
enforcing the Building Code. The basis for the fee structure must relate to the level of service provided
by the local government. The fees charged must be consistently applied. 67
“Enforcing the Building Code,” includes:68
The direct costs and reasonable indirect costs associated with review of building plans, building
inspections, re-inspections, and building permit processing.
Building code enforcement.
Fire inspections associated with new construction.
Training costs associated with the enforcement of the Building Code and enforcement action
pertaining to unlicensed contractor activity to the extent not funded by other user fees.
66 Ss. 125.56(2), 166.222, and 553.80(7), F.S.
67 Ss. 125.56(2) and (4), 166.222,and 553.80(7), F.S.
68 S. 553.80(7), F.S.
STORAGE NAME: pcs0423.COM PAGE: 12
DATE: 2/21/2022
Local governments are prohibited from using fees to cover the cost of enforcing the Building Code to
fund:69
Planning and zoning or other general government activities;
Inspections of public buildings for a reduced fee or no fee;
Public information requests, community functions, boards, and any program not directly related
to enforcement of the Building Code; and
Enforcement and implementation of any other local ordinance, excluding local amendments to
the Building Code and local ordinances directly related to enforcing the Building Code.
Local governments are also prohibited from levying fees that would generate a total estimated annual
revenue that exceeds the total estimated annual cost of its enforcement activities. 70 If any excess funds
are accumulated, the local government has discretion to issue refunds or carry forward those funds
into future years. Local governments are required to use “recognized management, accounting, and
oversight practices” to ensure fees, fines, and investment earnings are maintained and used only for
authorized purposes.71
Prior to 2019, there was no limit on the amount of such funds that local governments could carry
forward into future years.72
In 2019, the Legislature limited the amount of funds generated by Building Code enforcement activities
that local governments could carry forward.73 Current law provides that local governments may not
carry forward an amount that exceeds an amount equal to one year of their operating budget for
Building Code enforcement activities. The amount of the operating budget is determined by
averaging the local government’s operating budget for Building Code enforcement activities from the
previous four fiscal years. A local government may not count any funds held in reserve when
determining the four-year rolling average of its operating budget.74
If a local government carries forward an amount of funds that exceeds the statutory limit, it must use
the excess funds to rebate and reduce permit fees or for the construction of a building that houses the
local government’s building department or provides training programs for building officials, inspectors,
or plans examiners.75
However, a local government may carry forward funds that exceed the allowed statutory limit if the local
government established a Building Inspections Fund Advisory Board prior to 2019, and the board
recommends to carry forward such excess funds. The board must consist of five members from the
construction industry stakeholder community.76
Local Government Fees – Effect of the Bill
The bill provides that an owner or builder with a valid building permit issued by a local government for a
fee, or an association of owners or builders located in Florida that has members with valid building
permits issued by a local government for a fee, may bring a civil action against the local government
to enforce the requirement that the local government must use excess funds to rebate and reduce
permit fees or construct a building that houses the local government’s building department or provides
training programs for building officials, inspectors, or plans examiners.
B. SECTION DIRECTORY:
69 Id.
70 Id.
71 Id.
72 See s. 553.80(7), F.S. (2018).
73 See Ch. 19-75, Laws of Fla.
74 S. 553.80(7), F.S.
75 Id.
76 Id.
STORAGE NAME: pcs0423.COM PAGE: 13
DATE: 2/21/2022
Section 1. Amends s. 468.603, F.S., relating to definitions.
Section 2. Amends s. 468.609, F.S., relating to standards for certification; additional categories of
certification.
Section 3. Amends s. 553.79, F.S., relating to permits; applications; issuance; inspections.
Section 4. Amends s. 553.791, F.S., relating to alternative plans review and inspection.
Section 5. Amends s. 553.792, F.S., relating to building permit application to local government.
Section 6. Amends s. 553.80, F.S., relating to enforcement.
Section 7. Providing 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:
Indeterminate. The bill provides a cause of action for certain individuals and associations to enforce
the requirement that local governments must use excess funds generated by Building Code
enforcement for lawful purposes. It is indeterminate if this will require local governments to expend
funds to defend such actions.
Local governments may also have to expend funds to ensure they meet the bill’s requirements
relating to requesting additional information for reviewing building permit applications. However, the
amount local governments will have to spend, if any, is indeterminate. However, local governments
are permitted by state law to collect fees to cover the cost of their expenses to enforce the Building
Code, which includes reviewing building permit applications.
C. DIRECT ECONOMIC IMPACT ON PRIVATE SECTOR:
The bill may increase the number of people who qualify for licensure as a building inspector or plans
examiner, which may lead to a decrease in the cost of construction because of a decrease in the time
needed for inspections and plans review.
D. FISCAL COMMENTS:
None.
III. COMMENTS
A. CONSTITUTIONAL ISSUES:
STORAGE NAME: pcs0423.COM PAGE: 14
DATE: 2/21/2022
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 neither authorizes nor requires administrative rulemaking by executive branch agencies.
C. DRAFTING ISSUES OR OTHER COMMENTS:
None.
IV. AMENDMENTS/COMMITTEE SUBSTITUTE CHANGES
STORAGE NAME: pcs0423.COM PAGE: 15
DATE: 2/21/2022
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
PCS for CS/HB 423 2022
1 A bill to be entitled
2 An act relating to building regulation; amending s.
3 468.603, F.S.; defining the term "private provider";
4 amending s. 468.609, F.S.; revising eligibility
5 requirements for a person applying to become certified
6 as a building code inspector or plans examiner;
7 authorizing a person to perform certain duties under
8 certain conditions if the person is under the direct
9 supervision of a person a certified building code
10 official; revising the special conditions or
11 requirements that the Florida Building Code
12 Administrators and Inspectors Board may impose on
13 provisional certificates; authorizing that partial
14 completion of an internship program be transferable
15 among jurisdictions, private providers, and firms of
16 private provider; amending s. 553.79, F.S.;
17 prohibiting a local government from prohibiting or
18 restricting demolition permits for single-family
19 residential structures located in certain areas;
20 providing that local governments may only review
21 demolition permits administratively for compliance
22 with certain regulations; prohibiting a property owner
23 from being penalized for a demolition in compliance
24 with the demolition permit; prohibiting local
25 governments from imposing additional requirements on
Page 1 of 19
CODING: Words stricken are deletions; words underlined are additions.
V
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
PCS for CS/HB 423 2022
26 certain structures; providing applicability; amending
27 s. 553.791, F.S.; revising the definition of the term
28 "duly authorized representative"; limiting the
29 administrative fee that a local jurisdiction can
30 charge when an owner or contractor hires a private
31 provider for inspection services; requiring the local
32 jurisdiction to provide access to certain documents to
33 a private provider, contractor, and owner with certain
34 restrictions; requiring the local building official to
35 issue a certificate of occupancy or certificate of
36 completion within a certain number of days after
37 receipt of certain information, including the payment
38 of all outstanding fees; providing that a certificate
39 of occupancy or certificate of completion is
40 automatically granted and issued under certain
41 circumstances; requiring the local building official
42 to provide a written certificate of occupancy or
43 certificate of completion within a specified time;
44 amending s. 553.792; revising the requirements for
45 when a local government may request certain
46 information; amending s. 553.80, F.S.; authorizing a
47 civil action under certain circumstances; providing an
48 effective date.
49
50 Be It Enacted by the Legislature of the State of Florida:
Page 2 of 19
CODING: Words stricken are deletions; words underlined are additions.
V
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
PCS for CS/HB 423 2022
51
52 Section 1. Subsection (9) is added to section 468.603,
53 Florida Statutes, to read:
54 468.603 Definitions.—As used in this part:
55 (9) "Private provider" has the same meaning as in s.
56 553.791(1)(n).
57 Section 2. Paragraph (c) of subsection (2), paragraphs (c)
58 and (d) of subsection (7), and paragraph (b) of subsection (10)
59 of section 468.609, Florida Statutes, are amended to read:
60 468.609 Administration of this part; standards for
61 certification; additional categories of certification.—
62 (2) A person may take the examination for certification as
63 a building code inspector or plans examiner pursuant to this
64 part if the person:
65 (c) Meets eligibility requirements according to one of the
66 following criteria:
67 1. Demonstrates 4 years' combined experience in the field
68 of construction or a related field, building code inspection, or
69 plans review corresponding to the certification category sought;
70 2. Demonstrates a combination of postsecondary education
71 in the field of construction or a related field and experience
72 which totals 3 years, with at least 1 year of such total being
73 experience in construction, building code inspection, or plans
74 review;
75 3. Demonstrates a combination of technical education in
Page 3 of 19
CODING: Words stricken are deletions; words underlined are additions.
V
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
PCS for CS/HB 423 2022
76 the field of construction or a related field and experience
77 which totals 3 years, with at least 1 year of such total being
78 experience in construction, building code inspection, or plans
79 review;
80 4. Currently holds a standard certificate issued by the
81 board or a firesafety inspector license issued under pursuant to
82 chapter 633, with a minimum of 3 years' verifiable full -time
83 experience in firesafety inspection or firesafety plan review,
84 and has satisfactorily completed a building code inspector or
85 plans examiner training program that provides at least 100 hours
86 but not more than 200 hours of cross-training in the
87 certification category sought. The board shall establish by rule
88 criteria for the development and implementation of the training
89 programs. The board must shall accept all classroom training
90 offered by an approved provider if the content substantially
91 meets the intent of the classroom component of the training
92 program;
93 5. Demonstrates a combination of the completion of an
94 approved training program in the field of building code
95 inspection or plan review and a minimum of 2 years' experience
96 in the field of building code inspection, plan review, fire code
97 inspections and fire plans review of new buildings as a
98 firesafety inspector certified under s. 633.216, or
99 construction. The approved training portion of this requirement
100 must shall include proof of satisfactory completion of a
Page 4 of 19
CODING: Words stricken are deletions; words underlined are additions.
V
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
PCS for CS/HB 423 2022
101 training program that provides at least 200 hours but not more
102 than 300 hours of cross-training that is approved by the board
103 in the chosen category of building code inspection or plan
104 review in the certification category sought with at least 20
105 hours but not more than 30 hours of instruction in state laws,
106 rules, and ethics relating to professional standards of
107 practice, duties, and responsibilities of a certificateholder.
108 The board shall coordinate with the Building Officials
109 Association of Florida, Inc., to establish by rule the
110 development and implementation of the training program. However,
111 the board must shall accept all classroom training offered by an
112 approved provider if the content substantially meets the intent
113 of the classroom component of the training program;
114 6. Currently holds a standard certificate issued by the
115 board or a firesafety inspector license issued under pursuant to
116 chapter 633 and:
117 a. Has at least 4 years' verifiable full-time experience
118 as an inspector or plans examiner in a standard certificat ion
119 category currently held or has a minimum of 4 years' verifiable
120 full-time experience as a firesafety inspector licensed under
121 pursuant to chapter 633.
122 b. Has satisfactorily completed a building code inspector
123 or plans examiner classroom training course or program that
124 provides at least 200 but not more than 300 hours in the
125 certification category sought, except for residential one-family
Page 5 of 19
CODING: Words stricken are deletions; words underlined are additions.
V
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
PCS for CS/HB 423 2022
126 and two-family dwelling training programs, which must provide at
127 least 500 but not more than 800 hours of training as prescribed
128 by the board. The board shall establish by rule criteria for the
129 development and implementation of classroom training courses and
130 programs in each certification category; or
131 7.a. Has completed a 4-year internship certification
132 program as a building code inspector or plans examiner while
133 also employed full-time by a municipality, county, or other
134 governmental jurisdiction, under the direct supervision of a
135 certified building official. A person may also complete the
136 internship certification program while employed full time by a
137 private provider or a private provider's firm that performs the
138 services of a building code inspector or plans examiner, while
139 under the direct supervision of a certified building official.
140 Proof of graduation with a related vocational degree or college
141 degree or of verifiable work experience may be exchanged for the
142 internship experience requirement year-for-year, but may reduce
143 the requirement to no less than 1 year.
144 b. Has passed an examination administered by the
145 International Code Council in the certification category sought.
146 Such examination must be passed before beginning the internship
147 certification program.
148 c. Has passed the principles and practice examination
149 before completing the internship certification program.
150 d. Has passed a board-approved 40-hour code training
Page 6 of 19
CODING: Words stricken are deletions; words underlined are additions.
V
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
PCS for CS/HB 423 2022
151 course in the certification category sought before completing
152 the internship certification program.
153 e. Has obtained a favorable recommendation from the
154 supervising building official after completion of the internship
155 certification program.
156 (7)
157 (c) The board shall provide for appropriate levels of
158 provisional certificates and may issue these certificates with
159 such special conditions or requirements relating to the place of
160 employment of the person holding the certificate, the
161 supervision of such person on a consulting or advisory basis, or
162 other matters as the board deems may deem necessary to protect
163 the public safety and health. The board may not place a special
164 condition or requirement on a provisional certificate with
165 respect to the requirement of employment by a municipality,
166 county, or other local governmental agency.
167 (d) A person may perform the duties of a plans examiner or
168 building code inspector for 120 days if a provisional
169 certificate application has been submitted if such person is
170 under the direct supervision of a person licensed as a certified
171 building code administrator under this part who holds a standard
172 certification and who has found such person qualified for a
173 provisional certificate. Direct supervision and the
174 determination of qualifications may also be provided by a
175 building code administrator who holds a limited or provisional
Page 7 of 19
CODING: Words stricken are deletions; words underlined are additions.
V
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
PCS for CS/HB 423 2022
176 certificate in a county having a population of fewer than 75,000
177 and in a municipality located within such county.
178 (10)
179 (b) The board shall by rule establish:
180 1. Reciprocity of certification with any other state that
181 requires an examination administered by the International Code
182 Council.
183 2. That an applicant for certification as a building code
184 inspector or plans examiner may apply for a provisional
185 certificate valid for the duration of the internship period.
186 3. That partial completion of an internship program is
187 transferable among jurisdictions, private providers, and firms
188 of private providers may be transferred between jurisdictions on
189 a form prescribed by the board.
190 4. That an applicant may apply for a standard certificate
191 on a form prescribed by the board upon successful comple tion of
192 an internship certification program.
193 5. That an applicant may apply for a standard certificate
194 at least 30 days but and no more than 60 days before completing
195 the internship certification program.
196 6. That a building code inspector or plans examiner who
197 has standard certification may seek an additional certification
198 in another category by completing an additional nonconcurrent 1 -
199 year internship program in the certification category sought and
200 passing an examination administered by the International Code
Page 8 of 19
CODING: Words stricken are deletions; words underlined are additions.
V
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
PCS for CS/HB 423 2022
201 Council and a board-approved 40-hour code training course.
202 Section 3. Subsection (25) is added to section 553.79,
203 Florida Statutes, to read:
204 553.79 Permits; applications; issuance; inspections. —
205 (25)(a) A local law, ordinance, or regulation may not
206 prohibit or otherwise restrict the ability of a private property
207 owner to obtain a building permit to demolish his or her single -
208 family residential structure located in a coastal high-hazard
209 area, moderate flood zone, or special flood hazard area
210 according to a Flood Insurance Rate Map issued by the Federal
211 Emergency Management Agency for the purpose of participating in
212 the National Flood Insurance Program if the lowest finished
213 floor elevation of such structure is at or below base flood
214 elevation as established by the Florida Building Code or a
215 higher base flood elevation as may be required by local
216 ordinance, whichever is higher, provided that such permit
217 otherwise complies with all applicable Florida Building Code,
218 Florida Fire Prevention Code, and Life Safety Code requirements,
219 or local amendments thereto.
220 (b) An application for a demolition permit sought under
221 this subsection may only be reviewed administratively for
222 compliance with the Florida Building Code, the Florida Fire
223 Prevention Code, and the Life Safety Code, or local amendments
224 thereto, and any regulations applicable to a similarly situated
225 parcel. Applications may not be subject to any additional local
Page 9 of 19
CODING: Words stricken are deletions; words underlined are additions.
V
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
PCS for CS/HB 423 2022
226 land development regulations or public hearings. A local
227 government may not penalize a private property owner for a
228 demolition that is in compliance with the demolition permit.
229 (c) If a single-family residential structure is demolished
230 pursuant to a demolition permit, a local government may not
231 impose additional regulatory or building requirements on the new
232 single-family residential structure constructed on the site of
233 the demolished structure which would not otherwise be applicable
234 to a similarly situated vacant parcel.
235 (d) This subsection does not apply to any of the
236 following:
237 1. A structure designated on the National Register of
238 Historic Places.
239 2. A privately owned single-family residential structure
240 designated historic by a local, state, or federal governmental
241 agency on or before January 1, 2022.
242 3. A privately owned single-family residential structure
243 designated historic after January 1, 2022, by a local, state, or
244 federal governmental agency with the consent of its owner.
245 Section 4. Paragraph (f) of subsection (1), paragraph (b)
246 of subsection (2) and subsection (13) of section 553.791,
247 Florida Statutes, are amended, and paragraph (c) is added to
248 subsection (2) of that section, to read:
249 553.791 Alternative plans review and inspection.—
250 (1) As used in this section, the term:
Page 10 of 19
CODING: Words stricken are deletions; words underlined are additions.
V
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
PCS for CS/HB 423 2022
251 (f) "Duly authorized representative" means an agent of the
252 private provider identified in the permit application who
253 reviews plans or performs inspections as provided by this
254 section and who is licensed as an engineer under chapter 471 or
255 as an architect under chapter 481 or who holds a standard or
256 provisional certificate under part XII of chapter 468. A duly
257 authorized representative who only holds a provisional
258 certificate under part XII of chapter 468 must be under the
259 direct supervision of a person licensed as a building code
260 administrator under part XII of chapter 468.
261 (2)
262 (b) If an owner or contractor retains a private provider
263 for purposes of plans review or building inspection services,
264 the local jurisdiction must reduce the permit fee by the amount
265 of cost savings realized by the local enforcement agency for not
266 having to perform such services. Such reduction may be
267 calculated on a flat fee or percentage basis, or any other
268 reasonable means by which a local enforcement agency assesses
269 the cost for its plans review or inspection services. The local
270 jurisdiction may not charge fees for building inspections if the
271 fee owner or contractor hires a private provider to perform such
272 services; however, the local jurisdiction may charge a
273 reasonable administrative fee, which shall be based on the cost
274 that is actually incurred, including the labor cost of the
275 personnel providing the service, by the local jurisdiction or
Page 11 of 19
CODING: Words stricken are deletions; words underlined are additions.
V
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
PCS for CS/HB 423 2022
276 attributable to the local jurisdiction for the clerical and
277 supervisory assistance required, or both.
278 (c) If an owner or a contractor retains a private provider
279 for purposes of plans review or building inspection services,
280 the local jurisdiction must provide equal access to all
281 permitting and inspection documents and reports to the private
282 provider, owner, and contractor if such access is provided by
283 software that protects exempt records from disclosure.
284 (13)(a) No more than 10 2 business days, or if the permit
285 is related to single-family or two-family dwellings then no more
286 than 2 business days, after receipt of a request for a
287 certificate of occupancy or certificate of completion and the
288 applicant's presentation of a certificate of compliance and
289 approval of all other government approvals required by law,
290 including the payment of all outstanding fees, the local
291 building official shall issue the certificate of occupancy or
292 certificate of completion or provide a notice to the applicant
293 identifying the specific deficiencies, as well as the specific
294 code chapters and sections.
295 (b) If the local building official does not provide notice
296 of the deficiencies within the applicable time periods under
297 paragraph (a) prescribed 2-day period, the request for a
298 certificate of occupancy or certificate of completion is
299 automatically shall be deemed granted and deemed the certificate
300 of occupancy or certificate of completion shall be issued as of
Page 12 of 19
CODING: Words stricken are deletions; words underlined are additions.
V
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
PCS for CS/HB 423 2022
301 by the local building official on the next business day. The
302 local building official must provide the applicant with the
303 written certificate of occupancy or certificate of completion
304 within 10 days after it is automatically granted and issued. To
305 resolve any identified deficiencies, the applicant may elect to
306 dispute the deficiencies pursuant to subsection (14) or to
307 submit a corrected request for a certificate of occupancy or
308 certificate of completion.
309 Section 5. Subsection (1) of section 553.792, Florida
310 Statutes, is amended to read:
311 553.792 Building permit application to local government.—
312 (1)(a) Within 10 days of an applicant submitting an
313 application to the local government, the local government shall
314 advise the applicant what information, if any, is needed to deem
315 the application properly completed in compliance with the filing
316 requirements published by the local government. If the local
317 government does not provide written notice that the a pplicant
318 has not submitted the properly completed application, the
319 application shall be automatically deemed properly completed and
320 accepted. Within 45 days after receiving a completed
321 application, a local government must notify an applicant if
322 additional information is required for the local government to
323 determine the sufficiency of the application, and shall specify
324 the additional information that is required. The applicant must
325 submit the additional information to the local government or
Page 13 of 19
CODING: Words stricken are deletions; words underlined are additions.
V
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
PCS for CS/HB 423 2022
326 request that the local government act without the additional
327 information. While the applicant responds to the request for
328 additional information, the 120-day period described in this
329 subsection is tolled. Both parties may agree to a reasonable
330 request for an extension of time, particularly in the event of a
331 force majeure or other extraordinary circumstance. The local
332 government must approve, approve with conditions, or deny the
333 application within 120 days following receipt of a completed
334 application.
335 (b)1. When reviewing an application for a building permit,
336 a local government may not request additional information from
337 the applicant more than three times, unless the applicant waives
338 the limitation in writing.
339 2. If a local government makes a request for additional
340 information and the applicant submits the required additional
341 information within 30 days after receiving the request, the
342 local government must determine the application is properly
343 completed, approve, approve with conditions, deny the
344 application, or advise the applicant what information, if any,
345 is needed to deem the application properly completed or
346 determine the sufficiency of the application within 15 days
347 after receiving the additional information.
348 3. If a local government makes a second request for
349 additional information and the applicant submits the required
350 additional information within 30 days after receiving the
Page 14 of 19
CODING: Words stricken are deletions; words underlined are additions.
V
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
PCS for CS/HB 423 2022
351 request, the local government must determine the application is
352 properly completed, approve, approve with conditions, deny the
353 application, or advise the applicant what information, if any,
354 is needed to deem the application properly completed or to
355 determine the sufficiency of the application within 10 days
356 after receiving the additional information.
357 4. Before a third request for additional information, the
358 applicant must be offered a meeting to attempt to resolve
359 outstanding issues. If a local government makes a third request
360 for additional information and the applicant submits the
361 required additional information within 30 days after receiving
362 the request, the local government must deem the application
363 properly completed, approve, approve with conditions, or deny
364 the application within 10 days after receiving the additional
365 information unless the applicant waived the local government’s
366 limitation in writing.
367 5. If the applicant believes the request for additional
368 information is not authorized by ordinance, rule, statute, or
369 other legal authority, the local government, at the applicant’s
370 request, shall proceed to process the application for approval,
371 approval with conditions, or denial.
372 (c)(b) If a local government fails to meet a deadline
373 provided in paragraphs paragraph (a) and (b), it must reduce the
374 building permit fee by 10 percent for each business day that it
375 fails to meet the deadline. Each 10-percent reduction shall be
Page 15 of 19
CODING: Words stricken are deletions; words underlined are additions.
V
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
PCS for CS/HB 423 2022
376 based on the original amount of the building permit fee, unless
377 the parties agree to an extension of time.
378 Section 6. Paragraph (a) of subsection (7) of section
379 553.80, Florida Statutes, is amended to read:
380 553.80 Enforcement.—
381 (7)(a) The governing bodies of local governments may
382 provide a schedule of reasonable fees, as authorized by s.
383 125.56(2) or s. 166.222 and this section, for enforcing this
384 part. These fees, and any fines or investment earnings related
385 to the fees, shall be used solely for carrying out the local
386 government's responsibilities in enforcing the Florida Building
387 Code. When providing a schedule of reasonable fees, the total
388 estimated annual revenue derived from fees, and the fines and
389 investment earnings related to the fees, may not exceed the
390 total estimated annual costs of allowable activities. Any
391 unexpended balances must shall be carried forward to future
392 years for allowable activities or must shall be refunded at the
393 discretion of the local government. A local government may not
394 carry forward an amount exceeding the average of its operating
395 budget for enforcing the Florida Building Code for the previous
396 4 fiscal years. For purposes of this subsection, the term
397 "operating budget" does not include reserve amounts. Any amount
398 exceeding this limit must be used as authorized in subparagraph
399 2. However, a local government that which established, as of
400 January 1, 2019, a Building Inspections Fund Advisory Board
Page 16 of 19
CODING: Words stricken are deletions; words underlined are additions.
V
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
PCS for CS/HB 423 2022
401 consisting of five members from the construction stakeholder
402 community and carries an unexpended balance in excess of the
403 average of its operating budget for the previous 4 fiscal years
404 may continue to carry such excess funds forward upon the
405 recommendation of the advisory board. The basis for a fee
406 structure for allowable activities must shall relate to the
407 level of service provided by the local government and must shall
408 include consideration for refunding fees due to reduced services
409 based on services provided as prescribed by s. 553. 791, but not
410 provided by the local government. Fees charged must shall be
411 consistently applied.
412 1. As used in this subsection, the phrase "enforcing the
413 Florida Building Code" includes the direct costs and reasonable
414 indirect costs associated with review of building plans,
415 building inspections, reinspections, and building permit
416 processing; building code enforcement; and fire inspections
417 associated with new construction. The phrase may also include
418 training costs associated with the enforcement of the Florida
419 Building Code and enforcement action pertaining to unlicensed
420 contractor activity to the extent not funded by other user fees.
421 2. A local government must use any excess funds that it is
422 prohibited from carrying forward to rebate and reduce fees, or
423 to pay for the construction of a building or structure that
424 houses a local government's building code enforcement agency or
425 the training programs for building officials, inspectors, or
Page 17 of 19
CODING: Words stricken are deletions; words underlined are additions.
V
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
PCS for CS/HB 423 2022
426 plans examiners associated with the enforcement of the Florida
427 Building Code. Excess funds used to construct such a building or
428 structure must be designated for such purpose by the local
429 government and may not be carried forward for more than 4
430 consecutive years. An owner or builder who has a valid building
431 permit issued by a local government for a fee, or an association
432 of owners or builders located in Florida that has members with
433 valid building permits issued by a local government for a fee,
434 may bring a civil action against the local government that
435 issued the permit for a fee to enforce this subparagraph.
436 3. The following activities may not be funded with fees
437 adopted for enforcing the Florida Building Code:
438 a. Planning and zoning or other general government
439 activities.
440 b. Inspections of public buildings for a reduced fee or no
441 fee.
442 c. Public information requests, community functions,
443 boards, and any program not directly related to enforcement of
444 the Florida Building Code.
445 d. Enforcement and implementation of any other local
446 ordinance, excluding validly adopted local amendments to the
447 Florida Building Code and excluding any local ordinance directly
448 related to enforcing the Florida Building Code as defined in
449 subparagraph 1.
450 4. A local government must shall use recognized
Page 18 of 19
CODING: Words stricken are deletions; words underlined are additions.
V
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
PCS for CS/HB 423 2022
451 management, accounting, and oversight practices to ensure that
452 fees, fines, and investment earnings generated under this
453 subsection are maintained and allocated or used solely for the
454 purposes described in subparagraph 1.
455 5. The local enforcement agency, independent district, or
456 special district may not require at any time, including at the
457 time of application for a permit, the payment of any additional
458 fees, charges, or expenses associated with:
459 a. Providing proof of licensure under pursuant to chapter
460 489;
461 b. Recording or filing a license issued under pursuant to
462 this chapter;
463 c. Providing, recording, or filing evidence of workers'
464 compensation insurance coverage as required by chapter 440; or
465 d. Charging surcharges or other similar fees not directly
466 related to enforcing the Florida Building Code.
467 Section 7. This act shall take effect July 1, 2022.
Page 19 of 19
CODING: Words stricken are deletions; words underlined are additions.
V
PCS for CS/HB 741
HOUSE OF REPRESENTATIVES STAFF ANALYSIS
BILL #: PCS for CS/HB 741 Net Metering
SPONSOR(S): Commerce Committee
TIED BILLS: IDEN./SIM. BILLS:
REFERENCE ACTION ANALYST STAFF DIRECTOR or
BUDGET/POLICY CHIEF
Orig. Comm.: Commerce Committee Walsh Hamon
SUMMARY ANALYSIS
The role of the Florida Public Service Commission (PSC) is to ensure that Florida's consumers receive some
of their most essential services in a safe, affordable, and reliable manner. Current law requires the PSC to
allow investor-owned electric utilities (IOUs) to recover honestly and prudently invested costs of providing
service, including investments in infrastructure and operating expenses used to provide electric service.
Florida law states that a utility’s full avoided cost is the incremental cost of electric energy or capacity, which,
but for the purchase from a non-utility generator, the utility would have to generate itself or purchase from
another source.
Net energy metering, commonly referred to as net metering, is a billing arrangement designed to compensate
customers who own on-site renewable energy generation systems and export electricity generated on-site to
an electric utility’s system. Net metering is most commonly referenced in relation to customer-owned solar
panels. Net metering requires customers who own on-site renewable energy generation systems to
interconnect with the electric grid.
In 2008, the Legislature required all electric utilities to develop standardized interconnection agreements and a
net metering program for customer-owned renewable generation systems. Under Florida’s current net metering
framework for IOUs, the credit the customer receives on their monthly bill equates the value of the excess
energy to the utility’s retail rate. As of year-end 2020, less than one percent (90,552) of Florida’s 10.5 million
electric utility customers had installed renewable generation equipment.
The bill establishes a revised net metering program that credits excess energy delivered to an IOU’s system by
customer-owned renewable generation in accordance with a graduated schedule as described in the bill.
Under the bill, the value of credit a customer who owns or leases renewable generation receives will be
determined by the date the customer owned or leased renewable generation was placed into service.
The bill provides that if the PSC finds that the penetration rate of customer-owned or leased renewable
generation across all IOU service territories in the state exceeds certain thresholds, the PSC must initiate
rulemaking to adopt a new rule. The bill also states that the program requirements referenced in the bill
establish minimum requirements for IOU customer-owned or lease renewable generation programs, and that
an IOU may petition the PSC at any time for approval to offer a program that is not less favorable to customers
who own or lease renewable generation.
The bill permits an IOU to petition the PSC to allow the IOU to recover, through its fuel and purchased power
cost recovery charge, lost revenue resulting from the incremental addition of residential customer-owned or
leased solar photovoltaic generation within the IOU’s service territory between July 1, 2022 and December 31,
2023.
The bill has no fiscal impact on state or local government revenues or 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 .
STORAGE NAME: pcs0741.COM
DATE: 2/22/2022
FULL ANALYSIS
I. SUBSTANTIVE ANALYSIS
A. EFFECT OF PROPOSED CHANGES:
Present Situation
Florida Public Service Commission
The Florida Public Service Commission (PSC) is an arm of the legislative branch of government. 1 The
role of the PSC is to ensure that Florida's consumers receive some of their most essential s ervices –
electric, natural gas, telephone, water, and wastewater – in a safe, affordable, and reliable manner. In
doing so, the PSC exercises regulatory authority over utilities in one or more of three key areas: rate
base/economic regulation; competitive market oversight; and monitoring of safety, reliability, and
service issues.2
Investor-Owned Electric Utilities
The PSC regulates the rates and services of investor-owned electric utilities (IOUs).3 There are four
IOUs in Florida: Florida Power & Light Company (FPL),4 Duke Energy Florida (Duke), Tampa Electric
Company (TECO), and Florida Public Utilities Corporation.5 Together, these four IOUs serve over 8.1
million customers in Florida.6 IOU rates and revenues are regulated by the PSC.7 The IOUs must file
periodic earnings reports, which allow the PSC to monitor earnings levels on an ongoing basis and
adjust customer rates quickly if a company appears to be overearning. 8
IOUs must provide sufficient and adequate service to customers. 9 To fulfill that obligation, utilities
monitor customer usage patterns in order to plan for future energy needs. Utilities use billing data to
predict the future energy needs of customers and make investments in their infrastructure based on
these predictions.10 Current law requires the PSC to allow IOUs to recover honestly and prudently
invested costs of providing service, including investments in infrastructure and operating expenses
used to provide electric service.11
Full Avoided Costs
An IOU’s full avoided cost is the incremental cost of electric energy or capacity,12 which, but for a
purchase from a non-utility generator, the IOU would have to generate itself or purchase from another
source.13 Full avoided cost is based upon either the utility’s cost to construct and operate its next
1 S. 350.001, F.S.
2 Florida Public Service Commission (PSC), http://www.psc.state.fl.us/ (last visited Jan. 17, 2022).
3 The PSC does not regulate the rates of municipal electric utilities or rural electric cooperatives.
4 FPL acquired Gulf Power Company in 2019 and merged as of January 3, 2022.
5 Florida Department of Agriculture and Consumer Services, Electric Utilities, https://www.fdacs.gov/Energy/Florida-
Energy-Clearinghouse/Electric-Utilities (last visited Jan. 19, 2022).
6 PSC, Facts & Figures of the Florida Utility Industry (2021), p, 4, available at
http://www.psc.state.fl.us/Files/PDF/Publications/Reports/General/Factsandfigures/April%202021. pdf (last visited Jan. 19,
2022).
7 Florida Department of Agriculture and Consumer Services, Electric Utilities, supra note 5.
8 PSC, Florida PSC 2020 Annual Report, p. 6, available at
http://www.psc.state.fl.us/Files/PDF/Publications/Reports/General/Annualreports/2020.pdf (last visited Jan. 19, 2022).
9 S. 366.03, F.S.
10 PSC, Agency Analysis of 2022 House Bill 741, p. 2 (Jan. 3, 2022).
11 S. 366.06, F.S.
12 Capacity is the maximum electric output, in megawatts, that an electricity generator can produce under ideal conditions.
See U.S. Energy Information Administration, What is the difference between electricity generation capacity and electricity
generation?, https://www.eia.gov/tools/faqs/faq.php?id= 101&t=3 (last visited Jan. 22, 2022).
13 S. 366.051, F.S.
STORAGE NAME: pcs0741.COM PAGE: 2
DATE: 2/22/2022
planned generating unit or the cost of purchasing capacity and energy from generating units owned by
other utilities in the wholesale market.14
An IOU’s full avoided costs is not the same as the rate it pays for energy provided on an as-available
basis. Full avoided costs can include avoided capacity and energy costs, while an as-available energy
rate only includes avoided energy costs, which are largely comprised of fuel costs.15 In 2021, as-
available energy rates ranged for Florida IOUs from $0.025 to $0.037 per kilowatt hour (kWh). 16
Peak Demand
An electric utility must supply the power necessary to meet the total demand of all its customers at any
given time. Electric utility customers use different amounts of electricity at different times of a day,
week, or year, as well as with changes in the weather. Due to the customers’ different levels of demand
based on these factors, the power the utility must provide changes as well. Peak demand refers to the
maximum amount of demand placed on a utility’s system over a specific period.17 Given that customer
demand differs based on weather and location, the peak demand may vary for each IOU for any given
period of time. Each IOU reports to the PSC its peak demand for summer and winter.
Net Metering
Net energy metering, commonly referred to as net metering, is a billing arrangement designed to
compensate customers who own on-site, renewable energy18 generation systems and export electricity
generated on-site to the utility grid.19 Net metering essentially allows customers to sell excess electricity
to an electric utility, and the utility credits the customer’s energy bill on a per kWh basis. 20 The
compensation structure for utility customers who engage in net metering varies by location depending
on state and local policies.21
Common customer-owned renewable energy generation sources around the country include solar
panels, natural gas micro-turbines, methane digesters, and small wind power generators; 22 however,
net metering is most commonly referenced in relation to customer-owned solar panels.
Net metering requires customers who own on-site renewable energy generation systems to
interconnect with the electric grid, which allows customers to reliably power their homes even when
their systems are not generating enough power to meet their energy needs. 23 The U.S. Department of
Energy defines the term “interconnection” as “the technical procedures and legal requirements
surrounding energy customers’ ability to connect their small-scale renewable energy projects to the
14 PSC, States’ Electric Restructuring Activities Update: Wholesale Sales ,
http://www.psc.state.fl.us/Publications/ElectricRestructuringDetails#4 (last visited Jan. 22, 2022).
15 PSC, supra note 10, at 2.
16 Email from Kaley Slattery, Legislative Director, Florida Public Service Commission, Request for information (Feb. 1,
2022).
17 PSC, Reducing Electric Costs, http://www.psc.state.fl.us/Publications/ReducingCosts (last visited Feb. 21, 2022).
18 “Renewable energy” means 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. The term includes the alternative energy resource, waste heat, from
sulfuric acid manufacturing operations and electrical energy produced using pipeline-quality synthetic gas produced from
waste petroleum coke with carbon capture and sequestration. S. 366.91(2)(d), F.S.
19 National Renewable Energy Laboratory, Net Metering, https://www.nrel.gov/state-local-tribal/basics-net-metering.html
(last visited Jan. 20, 2022).
20 Id.
21 Id.
22 National Conference of State Legislatures, State Net Metering Policies (Nov. 20, 2017),
https://www.ncsl.org/research/energy/net-metering-policy-overview-and-state-legislative-updates.aspx (last visited Jan.
20, 2022).
23 U.S. Department of Energy, Grid-Connected Renewable Energy Systems, https://www.energy.gov/energysaver/grid-
connected-renewable-energy-systems (last visited Jan. 22, 2022).
STORAGE NAME: pcs0741.COM PAGE: 3
DATE: 2/22/2022
electricity grid.”24 Utility customers primarily benefit from interconnected renewable generation systems
through personal use and reducing the amount of electricity they purchase from the utility. 25
As of August 2021, thirty-seven states, including Florida, have state-developed mandatory net metering
rules for certain utilities, eight states have statewide compensation rules other than net metering, two
states have some utilities that allow net metering, and three states offer no form of net metering or
compensation.26
Net Metering in Florida
In 2008, the Legislature required all electric utilities to develop standardized interconnection
agreements 27 and a net metering28 program for customer-owned renewable generation29 systems.30
Under this section, the PSC is tasked with establishing requirements relating to expedited
interconnection and net metering of customer-owned renewable generation by IOUs and may adopt
rules to accomplish this task.31, 32
In response to the net metering requirements passed by the Legislature in 2008, the PSC amended r.
25-6.065, F.A.C.,33 to expand the applicability of the rule to all renewable energy types up to two
megawatts (MW) in capacity.34 The rule creates a billing mechanism by which net metering customers
can offset their usage through self-generated energy, with any excess energy delivered to the IOU’s
system. The amount of any excess energy delivered to the IOU is applied to the customer’s next
monthly bill as a kWh credit. At the end of the calendar year, the IOU pays for any remaining unused
energy credits at a rate based on the utility’s avoided cost of generating electricity.35
Under Florida’s current net metering framework, the credit the customer receives on their monthly bill
equates the value of the excess energy to the utility’s retail rate. The retail rates for each of the IOUs
range from roughly $0.12 to $0.15 per kWh.36 A utility’s retail rate accounts for its cost to provide power
to customers, which includes, but is not limited to, the cost of generation, transmission, distribution,
fuel, and operating and maintenance expenses.37
IOUs must charge net metering customers the applicable rates and charges for the electricity provided
24 U.S. Department of Energy, Renewable Energy: Distributed Generation Policies and Programs ,
https://www.energy.gov/eere/slsc/renewable-energy-distributed-generation-policies-and-programs (last visited Jan. 22,
2022)
25 PSC, supra note 10, at 1.
26 DSIRE, Net Metering, NC Clean Energy Technology Center (August 2021), https://ncsolarcen-
prod.s3.amazonaws.com/wp-content/uploads/2021/08/DS IRE _Net_Metering_August2021.pdf (last visited Jan. 20, 2022).
27 An interconnection agreement is a contract between a customer and a utility to interconnect the customer’s renewable
generation system to the utility’s electric grid. See e.g. Florida Public Utilities Company, Interconnection of Customer-
Owned Renewable Generation Systems Application, p. 1, available at https://fpuc.com/wp-content/uploads/FPU17-
123_Interconnection-Form. pdf (last visited Jan. 20, 2022).
28 S. 366.091(2)(d), F.S., defines the term “net metering” as a metering and billing methodology where customer-owned
renewable generation is allowed to offset the customer’s electricity consumption.
29 S. 366.091(2)(c), F.S., defines the term “customer-owned renewable generation” as an electric generating system
located on a customer’s premises that is primarily intended to offset part or all of the customer’s electricity requirements
with renewable energy.
30 S. 366.091(5) and (6), F.S.
31 S. 366.091(5), F.S.
32 Municipal electric utilities and rural cooperatives are required to develop their own standardized interconnection
agreements and net metering programs, but each year they must file a report detailing customer participation in such
programs with the PSC. S. 366.91(6), F.S.
33 This rule was initially promulgated by the PSC in 2002 for the purpose of standardizing and expediting the
interconnection of small solar photovoltaic (PV) systems for customers of IOUs. PSC, supra note 10, at 1.
34 Id. at 2.
35 Id.
36 PSC, Florida Investor-Owned Electric Utilities Total Cost for 1,000 Kilowatt Hours – Residential Service, available at
http://www.psc.state.fl.us/Files/PDF/Utilities/Electricgas/BillingAdjustments/ba_total -2022.pdf (last visited Feb. 1, 2022).
37 Id.
STORAGE NAME: pcs0741.COM PAGE: 4
DATE: 2/22/2022
by the utility.38 The applicable rates and charges are dependent on the rate class the customer falls
under, and these rates and charges can include a fixed monthly customer charge or base facility
charge, volumetric rates based on consumption, demand rates based on the maximum electric demand
in a monthly billing cycle, or a combination of the above. 39 Additionally, FPL and Duke were recently
authorized to charge customers a monthly minimum bill of $25 and $30 respectively. 40
In 2020, Florida electric utilities reported 90,552 customer-owned renewable generation
interconnections, reflecting more than 30,000 new interconnections since the 59,508 interconnections
reported in 2019.41 Of the 90,552 customer-owned renewable generation interconnections reported in
2020, Florida’s four IOUs accounted for 71,567 of those interconnections. 42 Almost all customer-owned
renewable generation installations in Florida are solar.43 As of year-end 2020, less than one percent of
Florida’s 10,504,960 electric utility customers had installed renewable generation equipment. 44
Concerns of cross-subsidization of customers who partake in net metering by non-net metering
customers have been raised before the PSC.45 There is debate as to the components of the utility’s
cost of service that are offset by energy generated by net metering customers and, accordingly, the
appropriate credit to provide for such energy.46
Net Billing
Net billing is similar to net metering in that the owner of a customer-owned renewable energy
generation system can consume electricity generated by their system in real time and export any
excess energy generated to the utility grid. However, net billing differs from net metering because
customers who own renewable energy generation systems may not bank energy within a billing cycle
to offset future consumption. Instead, all net energy exports are metered and credited to the customer
at a predetermined rate at the moment the energy is sent to the grid. 47 At the end of a billing cycle, the
total amount credited is netted against the total amount billed for service from the utility to establish the
balance due from the customer.
Effect of the Bill
The bill establishes a revised net metering program that credits excess energy delivered to an IOU’s
system by customer-owned renewable generation in accordance with a graduated schedule as
described below.
Under the bill, IOU net metering programs must provide that all electricity used by a customer in excess
of the generation supplied by the customer’s owned or leased renewable generation is billed by the IOU
under normal billing practices. The value of credit a customer who owns or leases renewable
generation receives will be determined by the date the customer-owned or leased renewable
38 R. 25-6.065, F.A.C.
39 PSC, supra note 10, at 2.
40 Florida Power & Light Company, Building a more resilient and sustainable energy future, EnergyNews (January 2022),
available at https://www.fpl.com/#home (last visited Feb. 1, 2022); Sam Sachs, Duk e Energy Florida customers to have
minimum $30 bills, News Channel 8 (Jan. 28, 2022), https://www.wfla.com/news/florida/duke-energy-florida-customers-to-
have-minimum-30-bills/ (last visited Feb. 1, 2022).
41 PSC, Review of the 2021 Ten-Year Site Plans of Florida’s Electric Utilities (Oct. 2021), p. 29, available at
http://www.psc.state.fl.us/Files/PDF/Utilities/Electricgas/TenYearSitePlans/2021/Review. pdf (last visited Jan. 20, 2022).
42 PSC, Interconnection and Net Metering of Customer-Owned Renewable Generation (2020), available at
https://www.floridapsc.com/Files/PDF/Utilities/Electricgas/CustomerRenewable/2020/2020%20Net%20Metering%20Sum
mary%20Spreadsheet/2020% 20Net%20Metering% 20Report.pdf (last visited Jan. 20, 2022).
43 PSC, supra note 42.
44 PSC, supra note 10, at 3.
45 Id. at 4.
46 See Id. (“For example, questions have been raised as to whether the excess energy offsets the utility’s cost of power
plants, given that power plants must be available to meet a renewable energy customer’s electric needs when their
systems are not operating or when their demand exceeds the capability of their renewable energy system.”).
47 Owen Zinaman et al., Grid-Connected Distributed Generation: Compensation Mechanism Basics , National Renewable
Energy Laboratory, https://www.nrel.gov/docs/fy18osti/68469.pdf (last visited Feb. 21, 2022).
STORAGE NAME: pcs0741.COM PAGE: 5
DATE: 2/22/2022
generation was placed into service. Excess electricity produced by customer-owned or leased
renewable generation delivered to the IOU’s electric grid must be credited to the customer’s energy
consumption for the next month’s billing cycle as follows:
For energy credits produced from customer-owned or leased renewable generation placed in
service before January 1, 2023, the customer’s energy usage shall be offset by the entire
amount credited.
For energy credits produced from customer-owned or leased renewable generation placed in
service between January 1, 2023, and December 31, 2025, the customer’s energy usage shall
be offset by 75 percent of the amount credited.
For energy credits produced from customer-owned or leased renewable generation placed in
service between January 1, 2026, and December 31, 2026, the customer’s energy usage shall
be offset by 60 percent of the amount credited.
For energy credits produced from customer-owned or leased renewable generation placed in
service between January 1, 2027, and December 31, 2028, the customer’s energy usage shall
be offset by 50 percent of the amount credited.
Under the bill, these customers who own or lease renewable generation placed into service before
January 1, 2029, pursuant to a standard interconnection agreement with an IOU, will be granted 20
years to continue to use the net metering design and rates that applied at the time the renewable
generation was placed into service. The bill provides that the 20-year period applies to customers who
purchase or lease real property upon which customer-owned or leased renewable generation is
installed for all or part of that 20-year period.
The bill requires the PSC to adopt new rules to establish a new program design to become effective
January 1, 2029, for customers who own or lease renewable generation that is placed into service after
that date. The new program design must ensure that:
IOU customers who own or lease renewable generation pay their full cost of electric service
and are not cross-subsidized by the general body of ratepayers;
All energy delivered by the IOU is purchased at its applicable retail rate;
All energy delivered by the customer-owned or leased renewable generation to the IOU is
credited to the customer at the IOU’s full avoided costs; and
The program may include any combination of fixed charges, including base facilities charges,
electric grid access fees, or monthly minimum bills that the commission determines are
necessary to ensure that the IOU recovers the fixed costs of serving customers who own or
lease renewable generation
The bill provides that if the PSC finds that the penetration rate of customer-owned or leased renewable
generation across all IOU service territories in the state exceeds 6.5 percent, or the actual penetration
rate of customer-owned or leased renewable generation across all IOU service territories in the state
increases, on an absolute basis, by more than 1 percentage point over the course of a calendar year,
the PSC must initiate rulemaking to adopt a new rule that complies with the program requirements the
bill lays out for customers who own or lease renewable generation that is place into service after
January 1, 2029. The bill states that the penetration rate shall be calculated by dividing the aggregate
total summer peak demand of all IOUs in the state by the aggregate gross power rating (alternating
current) of all in-service customer-owned or leased renewable generation across all IOU service
territories.
The bill states that the above referenced program requirements are minimum requirements for IOU net
metering programs, and that an IOU may petition the PSC at any time for approval to offer a net
metering program that is not less favorable to customers who own or lease renewable generation.
The bill permits an IOU to petition the PSC for recovery, through the IOU’s fuel and purchased power
cost recovery charge, lost revenue resulting from the incremental addition of residential customer-
owned or leased solar photovoltaic generation within the IOU’s service territory between July 1, 2022,
and December 31, 2023. In order to do so, this additional customer-owned or leased solar photovoltaic
generation must be above the level that such generation was estimated to be installed within the IOU’s
service territory during the same period. The bill requires an IOU seeking recovery of lost revenues to
STORAGE NAME: pcs0741.COM PAGE: 6
DATE: 2/22/2022
demonstrate that the relief requested does not cause the IOU to exceed the rate of return on equity
authorized by the PSC in the IOU’s most recent rate proceeding.
B. SECTION DIRECTORY:
Section 1: Amends s. 366.91, F.S., relating to renewable energy.
Section 2: Provides an effective date of July 1, 2022.
II. FISCAL ANALYSIS & ECONOMIC IMPACT STATEMENT
A. FISCAL IMPACT ON STATE GOVERNMENT:
1. Revenues:
None.
2. Expenditures:
The bill requires the PSC to adopt new rules implementing and establishing new program designs
for customers that own or lease renewable generation systems. However, the PSC can absorb the
costs within existing resources.48
B. FISCAL IMPACT ON LOCAL GOVERNMENTS:
1. Revenues:
None.
2. Expenditures:
None.
C. DIRECT ECONOMIC IMPACT ON PRIVATE SECTOR:
The bill may have an indeterminate impact on private businesses that install
customer-owned or leased renewable generation systems.
D. FISCAL COMMENTS:
None.
III. COMMENTS
A. CONSTITUTIONAL ISSUES:
1. Applicability of Municipality/County Mandates Provision:
Not applicable. The bill does not appear to impact county or municipal governments.
2. Other:
None.
B. RULE-MAKING AUTHORITY:
The bill requires the PSC to adopt a revised rules new rules implementing and establishing new
program designs for customers that own or lease renewable generation systems. Existing section
366.91(5), F.S., provides PSC sufficient rulemaking authority.
48 PSC, supra note 10, at 3.
STORAGE NAME: pcs0741.COM PAGE: 7
DATE: 2/22/2022
C. DRAFTING ISSUES OR OTHER COMMENTS:
None.
IV. AMENDMENTS/COMMITTEE SUBSTITUTE CHANGES
Not applicable.
STORAGE NAME: pcs0741.COM PAGE: 8
DATE: 2/22/2022
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
PCS for CS/HB 741 2022
1 A bill to be entitled
2 An act relating to net metering; amending s. 366.91,
3 F.S.; requiring the Public Service Commission to
4 propose new net metering rules, by specified dates,
5 that comply with specified criteria; authorizing
6 certain customers who own or lease renewable
7 generation to remain under the existing net metering
8 rules that currently apply to those customers for a
9 specified time; providing a schedule of reductions to
10 net metering rate designs that apply to customers who
11 install purchased or leased renewable generation after
12 specified dates; providing conditions under which
13 rules must be initiated if penetration rates of
14 customer-owned or leased renewable generation meet
15 specified thresholds; authorizing public utilities to
16 recover specified lost revenues upon meeting certain
17 requirements; providing applicability; providing an
18 effective date.
19
20 Be It Enacted by the Legislature of the State of Florida:
21
22 Section 1. Subsection (5) of section 366.91, Florida
23 Statutes, is amended to read:
24 366.91 Renewable energy.—
25 (5)(a) On or before January 1, 2009, Each public utility
Page 1 of 7
CODING: Words stricken are deletions; words underlined are additions.
V
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
PCS for CS/HB 741 2022
26 shall develop a standardized interconnection agreement and net
27 metering program for customer-owned or leased renewable
28 generation. The commission shall establish requirements relating
29 to the expedited interconnection and net metering of customer -
30 owned or leased renewable generation by public utilities and
31 shall may adopt new rules to administer this section.
32 (b) Public utility net metering programs for customer-
33 owned or leased renewable generation must provide that:
34 1. Electricity used by the customer in excess of the
35 generation supplied by customer-owned renewable generation is
36 billed by the public utility in accordance with normal billing
37 practices;
38 2. Excess customer-owned renewable generation delivered to
39 the public utility’s electric grid must be credited to the
40 customer’s energy consumption for the next month’s billing cycle
41 as follows:
42 a. For energy credits produced from customer-owned or
43 leased renewable generation that is placed in service before
44 January 1, 2023, the customer’s energy usage shall be offset by
45 the entire amount credited;
46 b. For energy credits produced from customer-owned or
47 leased renewable generation that is placed in service between
48 January 1, 2023, and December 31, 2025, the customer’s energy
49 usage shall be offset by 75 percent of the amount credited;
50 c. For credits produced from customer-owned or leased
Page 2 of 7
CODING: Words stricken are deletions; words underlined are additions.
V
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
PCS for CS/HB 741 2022
51 renewable generation that is placed in service between January
52 1, 2026, and December 31, 2026, the customer’s energy usage
53 shall be offset by 60 percent of the amount credited;
54 d. For credits produced from customer-owned or leased
55 renewable generation that is placed in service between January
56 1, 2027, and December 31, 2028, the customer’s energy usage
57 shall be offset by 50 percent of the amount credited.
58 (c) A public utility customer who owns or leases renewable
59 generation that is placed in service before January 1, 2029,
60 pursuant to a standard interconnection agreement offered by a
61 public utility, shall be granted 20 years to continue to use the
62 net metering rate design and rates that applied at the time the
63 renewable generation was placed into service. This paragraph
64 applies to customers who purchase or lease real property upon
65 which customer-owned or leased renewable generation is installed
66 for all or part of that 20-year period.
67 (d) The commission must adopt new rules to become
68 effective January 1, 2029, that establish a new program design
69 for customer-owned or leased renewable generation that is placed
70 in service on or after January 1, 2029. The new program design
71 must comply with the following criteria:
72 1. Public utility customers owning or leasing renewable
73 generation must pay the full cost of electric service and may
74 not be subsidized by the public utility's general body of
75 ratepayers.
Page 3 of 7
CODING: Words stricken are deletions; words underlined are additions.
V
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
PCS for CS/HB 741 2022
76 2. All energy delivered by the public utility must be
77 purchased at the public utility's applicable retail rate and all
78 energy delivered by the customer-owned or leased renewable
79 generation to the public utility must be credited to the
80 customer at the public utility's full avoided costs.
81 3. The program design must include any combination of
82 fixed charges, which may include base facilities charges,
83 electric grid access fees, and monthly minimum bills, that the
84 commission determines are necessary to ensure that the public
85 utility recovers the fixed costs of serving customers that own
86 or lease renewable generation and that the general body of
87 public utility ratepayers do not subsidize customer -owned or
88 leased generation.
89 (e) The commission must initiate rulemaking to adopt a new
90 program design that complies with subparagraphs (d)1. -3. if,
91 before the commission initiates rulemaking under paragraph (d),
92 the commission, upon petition or on its own motion, finds that:
93 1. The penetration rate of customer-owned or leased
94 renewable generation across all investor-owned electric utility
95 service territories in the state has reached or exceeded 6.5
96 percent within the preceding calendar year. A new program design
97 adopted pursuant to this subparagraph becomes effective 180 days
98 after rule adoption and shall apply to customer-owned or leased
99 renewable generation placed in service after that effective
100 date; or
Page 4 of 7
CODING: Words stricken are deletions; words underlined are additions.
V
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
PCS for CS/HB 741 2022
101 2. The actual penetration rate of customer-owned or leased
102 renewable generation across all investor-owned electric utility
103 service territories in the state increased, on an absolute
104 basis, by more than 1 percentage point over the course of a
105 calendar year for any calendar year after 2024. A new program
106 design adopted pursuant to this subparagraph becomes effective 1
107 year after rule adoption and shall apply to customer-owned or
108 leased renewable generation placed in service after the
109 effective date.
110
111 For purposes of this paragraph, the penetration rate shall be
112 calculated by dividing the aggregate total summer peak demand of
113 all investor-owned electric utilities in the state by the
114 aggregate gross power rating (alternating current) of all in -
115 service customer-owned or leased renewable generation across all
116 investor-owned electric utility service territories in the
117 state.
118 (f) This subsection establishes the minimum requirements
119 for each public utility net metering program. A public utility
120 may petition the commission at any time for approval to offer a
121 net metering program on terms that are not less favorable to
122 customers who own or lease renewable generation than the terms
123 required by this subsection or commission rules adopted pursuant
124 to this subsection.
125 (g)1. A public utility may recover, through its fuel and
Page 5 of 7
CODING: Words stricken are deletions; words underlined are additions.
V
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
PCS for CS/HB 741 2022
126 purchased power cost recovery charge, its lost revenues
127 resulting from the incremental addition of residential customer -
128 owned or leased solar photovoltaic generation within the public
129 utility's service territory between July 1, 2022 and December
130 31, 2023, above the level that such generation, for purposes of
131 setting base rates in the public utility's most recent base rate
132 proceeding, was estimated to be installed within the public
133 utility's service territory during the same period.
134 2. A public utility seeking recovery of lost revenues
135 under this paragraph must file with the commission a petition
136 that:
137 a. Identifies the total capacity of residential customer-
138 owned or leased solar photovoltaic generation that, for purposes
139 of setting base rates in the public utility's most recent base
140 rate proceeding, was estimated to be installed in the public
141 utility's service territory between July 1, 2022, and December
142 31, 2023;
143 b. Identifies the total capacity of residential customer-
144 owned or leased solar photovoltaic generation that was installed
145 in the public utility's service territory between July 1, 2022,
146 and December 31, 2023;
147 c. Demonstrates the difference in revenues collected by
148 the public utility as a direct result of the incremental
149 difference in the estimated and actual capacity additions
150 identified in sub-subparagraphs a. and b. and identifies the
Page 6 of 7
CODING: Words stricken are deletions; words underlined are additions.
V
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
PCS for CS/HB 741 2022
151 specific amount that the utility seeks to recover;
152 d. Demonstrates that the relief requested does not cause
153 the public utility to exceed the rate of return on equity
154 authorized by the commission in the public utility's most recent
155 base rate proceeding; and
156 e. Includes such other information as the commission may
157 require by rule.
158 3. Upon receipt of a petition that meets the requirements
159 of subparagraph 2., the commission must determine the amount, if
160 any, that the utility is entitled to recover under this
161 paragraph.
162 4. A petition filed under this section may not be filed
163 before December 31, 2023, or after March 31, 2024.
164 5. The Legislature provides the limited, extraordinary
165 relief set forth in this paragraph to address the potential
166 impact on a public utility of a previously unanticipated surge,
167 unaccounted for in the utility's last rate case, in the
168 installation of customer-owned or leased renewable generation
169 over the period specified in this section. The Legislature
170 makes no findings as to whether the recovery of lost revenues by
171 a public utility is appropriate for any other purpo se.
172 Section 2. This act shall take effect July 1, 2022.
Page 7 of 7
CODING: Words stricken are deletions; words underlined are additions.
V
COMMERCE COMMITTEE
PCS for CS/HB 741 by Rep. McClure
Net Metering
AMENDMENT SUMMARY
February 23, 2022
Amendment 1 by Rep. McClure (strike-all):
• Modifies the starting date for new net metering programs under the glide path
specified in the bill.
• Authorizes a public utility to seek approval from the Public Service Commission
(commission), on or after the starting date for new net metering programs under
the glide path, to impose certain fixed charges.
• Requires the commission, upon petition or its own motion, to adopt a new
program design, based on specified criteria, for customer-owned or leased
renewable generation that is placed in service in an individual public utility’s
service territory after the penetration rate of customer-owned or leased
generation in the utility’s service territory reaches 6.5 percent.
• Provides that the commission, by rule, may require only information that is
reasonably related to a public utility’s petition for recovery of lost revenues.
COMMITTEE/SUBCOMMITTEE AMENDMENT
Bill No. PCS for CS/HB 741 (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 McClure 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 366.91, Florida
7 Statutes, is amended to read:
8 366.91 Renewable energy.—
9 (5)(a) On or before January 1, 2009, Each public utility
10 shall develop a standardized interconnection agreement and net
11 metering program for customer-owned or leased renewable
12 generation. The commission shall establish requirements relating
13 to the expedited interconnection and net metering of customer -
14 owned or leased renewable generation by public utilities and
15 shall may adopt new rules to administer this section.
16 (b) Effective January 1, 2024, public utility net metering
PCS for CSHB 741 Strike1
Published On: 2/22/2022 10:18:30 PM
Page 1 of 8
COMMITTEE/SUBCOMMITTEE AMENDMENT
Bill No. PCS for CS/HB 741 (2022)
Amendment No. 1
17 programs for customer-owned or leased renewable generation must
18 provide that:
19 1. Electricity used by the customer in excess of the
20 generation supplied by customer-owned or leased renewable
21 generation is billed by the public utility in accordance with
22 normal billing practices;
23 2. Excess customer-owned or leased renewable generation
24 delivered to the public utility’s electric grid during the
25 customer’s regular billing cycle must be credited to the
26 customer’s energy consumption for the next month’s billing cycle
27 as follows:
28 a. For energy credits produced from customer-owned or
29 leased renewable generation that is placed in service between
30 January 1, 2024, and December 31, 2025, the customer’s energy
31 usage shall be offset by 75 percent of the amount credited;
32 b. For energy credits produced from customer-owned or
33 leased renewable generation that is placed in service between
34 January 1, 2026, and December 31, 2026, the customer’s energy
35 usage shall be offset by 60 percent of the amount credited;
36 c. For energy credits produced from customer-owned or
37 leased renewable generation that is placed in service between
38 January 1, 2027, and December 31, 2028, the customer’s energy
39 usage shall be offset by 50 percent of the amount credited.
40 (c) A public utility customer who owns or leases renewable
41 generation that is placed in service before January 1, 2029,
PCS for CSHB 741 Strike1
Published On: 2/22/2022 10:18:30 PM
Page 2 of 8
COMMITTEE/SUBCOMMITTEE AMENDMENT
Bill No. PCS for CS/HB 741 (2022)
Amendment No. 1
42 pursuant to a standard interconnection agreement offered by a
43 public utility, shall be granted 20 years to continue to use the
44 net metering rate design and rates that applied at the time the
45 renewable generation was placed into service. This paragraph
46 applies to customers who purchase or lease real property upo n
47 which customer-owned or leased renewable generation is installed
48 for all or part of that 20-year period.
49 (d) On or after the effective date of the net metering
50 programs described in paragraph (b), a public utility may
51 petition the commission for approval to impose any combination
52 of fixed charges, which may include base facilities charges,
53 electric grid access fees, and monthly minimum bills, necessary
54 to ensure that the public utility recovers the fixed costs of
55 serving customers that own or lease renewable generation and
56 that the general body of public utility ratepayers do not
57 subsidize customer-owned or leased generation. Within 180 days
58 after a petition is filed by a public utility pursuant to this
59 paragraph, the commission must issue a final order on the
60 petition.
61 (e) The commission must adopt new rules to become
62 effective January 1, 2029, that establish a new program design
63 for customer-owned or leased renewable generation that is placed
64 in service on or after January 1, 2029. The new program design
65 must comply with the following criteria:
66 1. Public utility customers owning or leasing renewable
PCS for CSHB 741 Strike1
Published On: 2/22/2022 10:18:30 PM
Page 3 of 8
COMMITTEE/SUBCOMMITTEE AMENDMENT
Bill No. PCS for CS/HB 741 (2022)
Amendment No. 1
67 generation must pay the full cost of electric service and may
68 not be subsidized by the public utility's general body of
69 ratepayers.
70 2. All energy delivered by the public utility must be
71 purchased at the public utility's applicable retail rate and all
72 energy delivered by the customer-owned or leased renewable
73 generation to the public utility must be credited to the
74 customer at the public utility's full avoided costs.
75 (f)1. If at any time the penetration rate of customer-
76 owned or leased renewable generation in a public utility’s
77 service territory is reasonably expected to exceed 6.5 percent
78 within the succeeding 12 months, the commission, upon petition
79 or on its own motion, must initiate rulemaking to adopt a new
80 program design that complies with subparagraphs (e)1.-2. A new
81 program design adopted pursuant to this subparagraph becomes
82 effective 60 days after rule adoption or 60 days after the date
83 the commission determines that the actual penetration rate has
84 reached 6.5 percent, whichever is later, and shall apply to
85 customer-owned or leased renewable generation placed in service
86 after that effective date.
87 2. For purposes of this paragraph, the penetration rate
88 shall be calculated by dividing the total summer peak demand of
89 the public utility by the aggregate gross power rating
90 (alternating current) of all in-service customer-owned or leased
91 renewable generation in the public utility’s service territory.
PCS for CSHB 741 Strike1
Published On: 2/22/2022 10:18:30 PM
Page 4 of 8
COMMITTEE/SUBCOMMITTEE AMENDMENT
Bill No. PCS for CS/HB 741 (2022)
Amendment No. 1
92 (f) This subsection establishes the minimum requirements
93 for each public utility net metering program. A public utility
94 may petition the commission at any time for approval to offer a
95 net metering program on terms that are not less favorable to
96 customers who own or lease renewable generation than the terms
97 specified in this subsection or in commission rules adopted
98 pursuant to this subsection.
99 (g)1. A public utility may recover, through its fuel and
100 purchased power cost recovery charge, its lost revenues
101 resulting from the incremental addition of residential customer -
102 owned or leased solar photovoltaic generation within the public
103 utility's service territory between July 1, 2022 and December
104 31, 2023, above the level that such generation, for purposes of
105 setting base rates in the public utility's most recent base rate
106 proceeding, was estimated to be installed within the public
107 utility's service territory during the same period.
108 2. A public utility seeking recovery of lost revenues
109 under this paragraph must file with the commission a petition
110 that:
111 a. Identifies the total capacity of residential customer-
112 owned or leased solar photovoltaic generation that, for purposes
113 of setting base rates in the public utility's most recent base
114 rate proceeding, was estimated to be installed in the public
115 utility's service territory between July 1, 2022, and December
116 31, 2023;
PCS for CSHB 741 Strike1
Published On: 2/22/2022 10:18:30 PM
Page 5 of 8
COMMITTEE/SUBCOMMITTEE AMENDMENT
Bill No. PCS for CS/HB 741 (2022)
Amendment No. 1
117 b. Identifies the total capacity of residential customer-
118 owned or leased solar photovoltaic generation that was installed
119 in the public utility's service territory between July 1, 2022,
120 and December 31, 2023;
121 c. Demonstrates the difference in revenues collected by
122 the public utility as a direct result of the incremental
123 difference in the estimated and actual capacity additions
124 identified in sub-subparagraphs a. and b. and identifies the
125 specific amount that the utility seeks to recover;
126 d. Demonstrates that the relief requested does not cause
127 the public utility to exceed the rate of return on equity
128 authorized by the commission in the public utility's most recent
129 base rate proceeding; and
130 e. Includes such other reasonably related information as
131 the commission may require by rule.
132 3. Upon receipt of a petition that meets the requirements
133 of subparagraph 2., the commission must determine the amount, if
134 any, that the utility is entitled to recover under this
135 paragraph.
136 4. A petition filed under this section may not be filed
137 before December 31, 2023, or after March 31, 2024.
138 5. The Legislature provides the limited, extraordinary
139 relief set forth in this paragraph to address the potential
140 impact on a public utility of a previously unanticipated surge,
141 unaccounted for in the utility's last rate case, in the
PCS for CSHB 741 Strike1
Published On: 2/22/2022 10:18:30 PM
Page 6 of 8
COMMITTEE/SUBCOMMITTEE AMENDMENT
Bill No. PCS for CS/HB 741 (2022)
Amendment No. 1
142 installation of customer-owned or leased renewable generation
143 over the period specified in this section. The Legislature
144 makes no findings as to whether the recovery of lost revenues by
145 a public utility is appropriate for any other purpose.
146 Section 2. This act shall take effect July 1, 2022.
147
148
149 -----------------------------------------------------
150 T I T L E A M E N D M E N T
151 Remove everything before the enacting clause and insert:
152 An act relating to net metering; amending s. 366.91, F.S.;
153 providing the terms for public utility net metering programs
154 after a specified date; providing a schedule of reductions to
155 net metering rate designs that apply to customers who install
156 purchased or leased renewable generation after specified dates;
157 authorizing certain customers who own or lease renewable
158 generation to remain under the existing net metering rules that
159 currently apply to those customers for a specified time;
160 authorizing public utilities to petition for approval of certain
161 fixed charges designed to meet specified purposes; providing
162 conditions under which rules must be initiated if the
163 penetration rate of customer-owned or leased renewable
164 generation meet a specified threshold; authorizing public
165 utilities to recover specified lost revenues upon meeting
PCS for CSHB 741 Strike1
Published On: 2/22/2022 10:18:30 PM
Page 7 of 8
COMMITTEE/SUBCOMMITTEE AMENDMENT
Bill No. PCS for CS/HB 741 (2022)
Amendment No. 1
166 certain requirements; providing applicability; providing an
167 effective date.
PCS for CSHB 741 Strike1
Published On: 2/22/2022 10:18:30 PM
Page 8 of 8
File and source
- File
- 2022-02-23_3098_commerce-committee_meeting-packets_mtg13492.pdf
- Size
- 11,712,294 bytes
- SHA-256
- bd3fa212bdcfee12fa5ebe288fb789f6aab61a6e2c04b0759eed909bc57d0404
- Original
- No public link identified.