Regulatory Reform & Economic Development Subcommittee — Meeting Packet, February 7, 2023 (Amended)
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- Congressional materials
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- 2023 02 07 3236 Regulatory Reform Economic Development Subcommittee Meeting Packets Mtg136
- Date
- 2023-02-07
Summary
The amended meeting packet of the Florida House of Representatives Commerce Committee's Regulatory Reform & Economic Development Subcommittee for Tuesday, February 7, 2023, listing Paul Renner as Speaker and Tyler Sirois as Chair. The agenda covers consideration of CS/HB 85, Causes of Action Based on Improvements to Real Property, and presentations on gaming in Florida, gaming control and the Florida Lottery. The packet includes the House staff analysis of CS/HB 85, dated 1/31/2023, which describes the bill as decreasing the statute of repose for construction defect claims from ten years to seven years and limiting the statutory Building Code violation cause of action to a material violation. The packet ends with Florida Lottery presentation slides on its Division of Security and lottery integrity.
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
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Regulatory Reform & Economic
Development Subcommittee
Tuesday, February 7, 2023
2:00 PM - 4:00 PM
Sumner Hall (404 HOB)
Meeting Packet
AMENDED
Paul Renner Tyler Sirois
Speaker Chair
Regulatory Reform & Economic
Development Subcommittee
Tuesday, February 7, 2023
2:00 PM - 4:00 PM
Sumner Hall (404 HOB)
Meeting Packet
Paul Renner Tyler Sirois
Speaker Chair
The Florida House of Representatives
Commerce Committee
Regulatory Reform & Economic Development Subcommittee
Paul Renner Tyler Sirois
Speaker Chair
Meeting Agenda
Tuesday, February 7, 2023
2:00 PM - 4:00 PM
Sumner Hall (404 HOB)
I. Call to Order
II. Roll Call
III. Welcome and Opening Remarks
TV. Consideration of the following bill(s):
CS/HB 85 Causes of Action Based on Improvements to Real Property by Civil Justice
Subcommittee, Snyder
V. Presentations:
The Economic Status and Impact of Gaming in Florida and the Florida Lottery by
Florida's Office of Economic and Demographic Research
An Update on the Status of Gaming Control in Florida by the Florida Gaming Control
Commission
An Update on the Status of the Florida Lottery by the Florida Lottery
VI. Closing Remarks
VII. Adjournment
303 House Office Building, 402 South Monroe Street, Tallahassee, FL 32399-1300
(850) 71 7-4870
- - - -- - - - - - - - · - - - - - - --------- - - -- - ~-- -
CS/HB 85
HOUSE OF REPRESENTATIVES STAFF ANALYSIS
BILL#: CS/HB 85 Causes of Action Based on Improvements to Real Property
SPONSOR(S): Civil Justice Subcommittee, Snyder
TIED BILLS: IDEN./SIM. BILLS: SB 360
REFERENCE ACTION ANALYST STAFF DIRECTOR or
BUDGET/POLICY CHIEF
1) Ci-1I Justice Subcommittee 15 Y, 3 N, As CS Mawn Jones
2) Regulatory Reform & Economic De-.elopment Wright Anstead
Subcommittee
3) Judiciary Committee
SUMMARY ANALYSIS
A "construction defect" is a deficiency in, or arising out of, the design, specifications, surveying, planning ,
supervision, or observation of construction, or the construction, repair, alteration , or remodeling of real
property, and includes a Florida Building Code ("Building Code") violation. Causes of action which may be
available for a construction defect claim include breach of contract or warranty, fraud, negligence, and a
statutory cause of action under s . 553.84, F.S., for Building Code violations .
Section 95 .11 (3)(c), F.S., establishes the time periods within which a construction defect cause of action must
be brought. Specifically, for a patent (that is, obvious or known) defect, an action must generally be filed within
four years from the date of the later of the :
• Owner's actual possession;
• Issuance of a certificate of occupancy;
• Construction's abandonment, if not completed; or
• Completion or termination of the engineer's, architect's, or contractor's contract with his or her
employer.
However, for a latent (that is, not easily discoverable) defect, the four-year statute of limitations begins to run
on the date the defect was discovered or should have reasonably been discovered with due diligence . In any
event, the statute of repose in this section provides that in no case may a construction defect claim be filed
more than ten years after the later of any event triggering the statute of limitations for patent defects .
CS/HB 85:
• l'vbdifies the time periods within which a construction defect cause of action must be brought by:
o Changing the point from which the four-year statute of limitations begins to run for patent
defects to the date of the earliest of the following events:
■ Issuance of a temporary certificate of occupancy;
■ Issuance of a certificate of occupancy;
■ Issuance of a certificate of completion;
■ Construction's abandonment, if not completed; or
■ Completion or termination of the specified professional's employment contract.
o Decreasing the statute of repose from ten years to seven years, generally running from the
earliest of the listed triggering events for the statute of limitations.
o Specifying that each dwelling unit within a multi-dwelling building must be considered its own
improvement for purposes of determining the limitations period.
o Giving plaintiffs a set period of time to sue if these changes would otherwise cut off their rights.
• Limits the statutory Building Code violation cause of action to a "material" violation.
The bill may have an indeterminate fiscal impact on state government, but does not appear to have a fiscal
impact on local government. The bill provides an effective date of upon becoming a law.
This document does not reflect the intent or official position of the bill sponsor or House of Representatives.
STORAGE NAME: h0085b.RRS
DATE: 1/31/2023
FULL ANALYSIS
I. SUBSTANTIVE AN.ALYSIS
A EFFECT OF PROPOSED CHANGES:
Background
Florida Building Code
The Florida Building Codes Act ("Building Code") , set out in part IV of ch. 553, F.S ., provides a
mechanism for the uniform adoption, updating, interpretation, and enforcement of a single state building
code that must be applied , administered , and enforced uniformly and consistently across the state. 1 The
Building Code is adopted and interpreted by the Florida Building Commission , housed within the
Department of Business and Professional Regulation ("DBPR"), and enforced by local governments .2
The Building Code's primary purpose is the regulation of new construction and existing structure
modifications to achieve the highest safety level and the fewest construction defects. 3 To accomplish
this , the Building Code sets minimum standards for the design, construction , erection, alteration ,
modification, repair, and demolition of structures in the state .
Plan Review and Building Permits
Each local government must issue building permits for construction projects within its jurisdiction .4
However, the building official may not issue a building permit before first reviewing the plans and
specifications and finding that such plans and specifications comply with the Building Code. 5 No
person , firm , or corporation may construct, erect, alter, repair, secure, or demolish any structure without
first obtaining a building permit, if required, from the building official. 6
Inspections and Violations
For any construction requiring a building permit, the building official7 must inspect the work to ensure
that it complies with the Building Code. 8 Where a local government determines that an engineer,
architect, or contractor has committed a "material violation" of the Building Code and failed to correct
the violation within a reasonable time, the local government must impose a fine on such licensee of no
less than $500 and no more than $5,000 per violation.9 A "material violation, " as the term is used here,
is a violation existing within a completed building, structure, or facility which may result, or has resulted ,
in physical harm to a person or s ignificant damage to the performance of a building or its systems . 10
1
S. 553 .72(1 ), F.S .
2
Ss . 125.56 , 553 .72 , 553 .73 , and 553 .74 , F.S.
3
Fla . Bldg . Comm ., Advanced Florida Building Code Principals , http ://www.floridabuilding.org/Upload/Courses trp/421-2-MATERIAL-
.Adv%20FL %20Bldg %20Code %20-%20Course%20PDF%20version %207 .0.pdf (lastvisited Jan . 26 , 2023 ).
4
A build ing permit is an official document or certificate issued bythe local build ing official that authorizes performance of a specifi c
construction activity. Ss . 125.01 (1 )(bb), 125.56(1 ), 468 .603(2), and 553 .80(1 ), F.S.
5 Ss 125.56 and 553 .79 , F.S.
6
Bu ild ing permits are generallynot required for cosmetic improvements , such as painting or flooring replacement. S. 553 .79 , F .S.
7
A building official is a local government employee or a person contracted with a government entity who supervises building code
activities. Id.
8 Id.
9
S. 553.781 , F.S.
,o Id.
STORAGE NAME h0085b.RRS PAGE: 2
DATE 1/31/2023
Certificates of Completion or Occupancy
The building official issues a certificate of completion where an existing building or structure is
renovated or remodeled without a change in its occupancy or use, or when a shell building 11 is newly
constructed, and such work passes its final building inspection. 12 Where a new structure to be
occupied 13 passes its final building inspection, the building official issues a certificate of occupancy. 14 A
building or structure requiring a certificate of completion or occupancy generally may not be used or
occupied until the appropriate certificate is issued; however, the building official may issue a temporary
certificate of completion or occupancy before the project's close if a portion of the building or structure
may be safely used or occupied .15 The temporary certificate grants the applicant the same rights as a
certificate of completion or occupancy but expires after a set time period unless the building official
grants an extension. 16 A building official may also suspend or revoke a temporary or final certificate of
occupancy or completion if the certificate was issued in error or on the basis of incorrect information or
where it is determined that the building or structure is in violation of any ordinance, regulation, or
Building Code provision .17
Statutes of Limitations and Repose
A statute of limitations bars a lawsuit's filing after a certain amount of time elapses following an injury. 18
This time period typically begins to run when a cause of action accrues (that is, on the date of the
injury), but may also begin to run on the date the injury is discovered or on which it would have been
discovered with reasonable efforts. 19 In other words, a statute of limitations bars the available civil
remedy if a lawsuit is not timely filed after an injury.
A statute of repose bars the filing of a lawsuit after a fixed period of time passes following a specific act,
which act is unrelated to the cause of action's accrual or the injury's discovery, even if this period ends
°
before the plaintiff is injured .2 Further, a statute of repose eliminates the underlying substantive right of
action, not just the available civil remedy, upon expiration of the statutorily-specified filing period. 21
Courts construe a cause of action rescinded by a statute of repose as if the right to sue never existed,
which encourages diligence in the prosecution of claims , eliminates the potential for abuse resulting
from a stale claim , and fosters finality in liability. 22
11
A shell building separates a structure's interior space from its exterior and generallyconsists of the foundation , outer walls, roofing ,
windows , and exterior doors . When a shell building is constructed , the developer leaves the structure 's interior unfinished so that the
purchaser or tenant may contract with other construction professionals to customize its elements (including flooring, ceilings , interior
walls , interior doors , and electrical fittings). Nassau County Building/Code Enforcement Department, Guidelines for Shell Building and
Tenant Build-Out Perm its, https ://www .nas s au cou ntyfl .com /DocumentCenterNi ew/13984/Guideli nes-for-She II-Build in q-and-Tenant-
Bu ild-Out-Perm its?bidld (last visited Jan . 26 , 2023).
12
Passage of a final building inspection would include obtaining approvals for all permits issued for the project (such as building and fire
permits and sub-permits such as electrical, mechanical , elevator, plumbing, and roof permits). S. 553 .79(1 ?)(a), F.S.; S. 110, Fla . Bldg .
Code, 7th Ed . (2020) .
13
This includes an existing building or structure for which the occupancyclassification is changing .
14
S. 111, Fla. Bldg. Code, 7th Ed . (2020) .
15
Typically, the building official also requires that any outstanding work be nearing completion before issuing a temporary certificate .
See, example , City of Tampa , Apply for a Temporary Certificate of Occupancy, https://www.tampa.gov/document/apply-tem porary-
certificate-occupancy-tco-35571 (last visited Jan. 26, 2023)(requiring an applicant for a temporary certificate of occupancy to affirm that
construction will be complete within 90 days); Id.
16
S. 111, Fla . Bldg . Code , 7th Ed. (2020).
11 Id.
18
Legal Information Institute, Statute of Limitations, https ://www .law.cornell.edu/wex/statute of limitations (last visited Jan. 26, 2023).
19 Id.
20
Legal Information Institute, Statute of Repose , https ://www.law.cornell.edu/wex/statute of repose (last visited Jan . 26 , 2023); Kush v.
Lloyd, 616 So . 2d 415 (Fla . 1992).
21
Beach v. Great Western Bank , 692 So. 2d 146 (Fla. 1997).
22
Lamb By and Through Donaldson v. Volkswagemverk Aktiengesellschaft, 631 F. Supp. 1144, 1148 (S.D. Fla . 1986), judgmentaffd ,
835 F.2d 1369 (11th Cir. 1988).
STORAGE NAME: h0085b.RRS PAGE: 3
DATE: 1/31/2023
Construction Defect Claims
A "construction defect" is a deficiency in, or arising out of, the design, specifications, surveying,
planning, supervision, or observation of construction, or the construction, repair, alteration, or
remodeling of real property23 resulting from:
• Defective material, products, or components used in construction or remodeling;
• A Florida Building Code violation ;
• A failure of real property's design to meet the applicable professional standards of care at the
time of governmental approval; or
• A failure to construct or remodel real property in accordance with accepted trade standards for
good and workmanlike construction in place at the time of construction. 24
Available Causes of Action
Causes of action which may be available for a construction defect claim include breach of warranty, 25
breach of contract 26 (if the parties are in privity27 ), fraud, and negligence. 28 Florida law also provides a
statutory cause of action ins. 553.84, F.S ., for Building Code violations . Specifically, this section
provides that any person damaged as a result of a Building Code violation has a cause of action
against the person responsible. However, unless the person responsible knew or should have known of
the violation, there is no cause of action if:
• The person responsible obtains the required building permits and any local government or
public agency with Building Code enforcement authority approves the plans;
• The construction project passes all required inspections; and
• There is no personal injury or damage to property other than the property that is the subject of
the permits, plans, and inspections.
In order to bring a cause of action based on a construction defect claim, a property owner must first
satisfy pre-suit requirements set out in ch. 558, F.S., unless the property owner and the person to be
sued have opted out of ch. 558 in writing. 29 These statutory pre-suit requirements include providing the
person to be sued with notice of the claim , and opportunities to inspect the alleged defect and make a
settlement offer, which may include monetary payments or an offer to repair the defect. 30
23
"Real property" means land that is improved and the improvements thereon, including fixtures , manufactured housing , or mobile
homes . S. 558.002(8), F.S.
24 S. 558 .002(5), F.S.
25 Warranties may be expressly provided by the developer or contractor or implied in com man law or statute .
26
A contract forms when an offer is made and the offered terms are accepted. Where one party to a contract fails to perform his or her
duties under the contract, a breach of contract claim arises. Awardable damages are generally limited to those damages specified in
the contract; in other words , punitive damages (that is , damages awarded above the actual damages to punish the person responsible)
are generallyunavailable. Suarez Trucking FL Corp . v. Souders, 350 So. 3d 38 (Fla. 2022); Lewis v. Guthartz , 428 So. 2d 222 (Fla.
1982).
27 Parties are in privity when they are in direct contract with one another. Legal Information Institute, Privity,
https ://www .law .cornell .ed u/wex/privity /last visited Jan . 26, 2023 ).
28
Negligence is a tort. To prevail in a negligence action , the plaintiffmustprove that the defendant owed him or her a duty, the
defendant breached the duty, and the plaintiff suffered damages proximatelycaused by the breach . However, a negligence claim does
not exist where the defendant only breached a duty owed under a contract; in such case, the plaintiff would have to prove that the
defendant breached a non-contractual duty owed to the plaintiff, such as a statutory or comm on law duty. U.S. v. Stephens, 994 So. 2d
1062 (Fla . 2008); Monroe v. Sarasota County Sch . Bd., 7 46 So. 2d 530 (Fla . 2d DCA 1999); Go/db erg v. Fla. Power & Light Co., 899
So. 2d 1105 (Fla. 2005).
29 Parties who opt out of chapter 558 may contractually negotiate a mandatory alternative dispute resolution process or other pre-suit
requirements. S. 558.005(1 ), F.S.
30
Ss . 558 .003 and 558.004, F.S.
STORAGE NAME: h0085b.RRS PAGE: 4
DATE: 1/31/2023
Applicable Statutes of Limitations and Repose
Section 95.11 (3)(c), F.S ., establishes the time periods within which a construction defect cause of
action must be brought. Specifically, for a patent defect, 31 an action must generally be filed within four
years from the date of the later of the:
• Owner's actual possession;
• Issuance of a certificate of occupancy;
• Construction's abandonment, if not completed ; or
• Completion or termination of the engineer's, architect's, or contractor's contract with his or her
employer. 32
However, for a latent defect, 33 the four-year statute of limitations begins to run on the date the defect
was discovered or should have reasonably been discovered with due diligence. In any event, the
statute of repose in this section provides that in no case may a construction defect claim be filed more
than ten years after the later of any event triggering the statute of limitations for patent defects . In other
words, a construction defect claim is time-barred after ten years from the later of any of the events
listed above even where the defect is not yet discovered or could not reasonably have been discovered
with the exercise of due diligence.
l'vl.llti-Dwelling Buildings
The Building Code defines "dwelling" as any building containing one or two dwelling units used,
intended, or designed to be built, used, rented, leased, let, or hired out to be occupied, or that are
occupied for living purposes. 34 In turn, the Building Code defines "dwelling unit" as a single unit
providing complete independent living facilities for one or more persons, including permanent
provisions for living, sleeping, eating, cooking, and sanitation. 35 l'vl.llti-dwelling buildings may include
unit-style condominium ("condo") or cooperative ("co-op") buildings, multi-family homes (such as a
duplex or triplex), and townhouses ; whether or not a multi-dwelling building is a part of a condo or co-op
depends not on its appearance but rather on whether it has been organized as such under Florida law.
Special considerations apply to construction defect claims involving condos and co-ops.
Condominiums
A condominium, or "condo," is a form of real property ownership created under ch . 718, F.S., and
generally regulated by DBPR. Persons own condo units along with an undivided right of access to the
condo's common elements. 36 All unit owners are members of the condo association, and the
association is responsible for common elements operation and maintenance.37
A condo is created by recording a declaration of condominium in the public records of the county where
the condo is located.38 A developer initially creates the condo and offers condo units for sale, and while
the condo is developer-controlled, the developer may elect all or a majority of the members of the
condo association's board of administration. 39 However, unit owners other than the developer may elect
31
A "patent defect" is a defect that is reasonably apparent or known to the owner. Alexanderv. SuncoastBuilders, Inc. , 837 So . 2d
1056, 1058 (Fla. 3d DCA 2003 ); Legal Information Institute, Patent Defect, https :l/www .law .cornell .edulwex/patent defect (last visited
Jan. 26 , 2023).
32
"Completion of the contract'' means the later of the date of final performance of all the contracted services or the date that final
payment for such services becomes due without regard to the date final payment is made. S. 95 .11 (3)(C), F.S.
33 A "latent defect'' is a hidden defect that cannot be discovered by reasonable and customaryobservation or inspection, and of which
the owner has no knowledge. Alexander, 837 So. 2d at 1058; Legal Information Institute, Latent Defect,
https ://www.law .cornell .edu/wex/latent defect#:- :text=A%20hidden %20or%20concealed %20defect.and %20customary%20observation
%20or%20inspection (last visited Jan. 26, 2023).
34 S. R202 , Fla. Bldg . Code , 7th ed . (2020).
35 Id .
36
"Common elements" means the portions of condo property not included in the units . S. 718 .103(8) and (11 ), F.S.
37
Ss . 718 .103(2) and 718 .113(1 ), F.S.
38
S. 718 .104(2),F.S.
39
S. 718 .103(16), F.S.
STORAGE NAME: h0085b.RRS PAGE: 5
DATE: 1/31/2023
a majority of the condo association's board members after "turnover," which occurs at the earlier of
specified events. 40
Cooperatives
A cooperative, or "co-op," is a form of property ownership created under ch . 719, F.S. , in which the real
property is owned by the co-op association and individual units are leased to the residents, who own
shares in the association. 41 The lease payment amount is the pro-rata share of the co-op's operational
expenses. Co-ops operate similarly to condos , and the laws regulating co-ops are largely identical to
those regulating condos.
Construction Defect Claims
At the point of turnover in a condo or co-op, Florida law requires the developer to provide the
association with a written inspection report; however, this report is limited in scope to the maintenance,
condition, replacement costs, and useful life of specified components and thus may not provide the
association with any insight into the existence of a construction defect. 42 It is the responsibility of the
association to conduct an exhaustive property evaluation and determine whether to bring a cause of
action based on any discovered construction defects. 43
If a construction defect is found in the condo's common elements or in individual units but is prevalent
throughout the building, the association may bring a cause of action in its own name or on behalf of all
unit owners .44 However, a condo association does not have exclusive authority to sue over construction
defects; the Florida Supreme Court has held that a unit owner may also bring such a claim, even where
the defect is found in the common elements, if the interests of other unit owners are represented in the
action or if the duty breached was owed only to a particular unit owner. 45
Relevant to the consideration of whether to bring such an action is s. 718.124, F .S., which tolls the
applicable four-year statute of limitations until turnover occurs; however, this section does not toll the
ten-year statute of repose.46 Practically speaking , this means that if a defect occurs during construction
of a condo or co-op but turnover does not happen for eleven years after an event triggering the statute
of repose, the association is time-barred from filing suit on the defect claim even if the statute of
limitations had only just begun to run.
Further, in Sabal Chase Homeo'M'lers' Association, Inc., v. Walt Disney World Co., the Fifth District
Court of Appeal ("DCA") held that, where a project is multi-unit in nature and each unit is issued its own
certificate of occupancy before the contract's completion, so that it can be occupied while other units
are under construction, the statute of repose does not begin to run from the date of contract
completion. 47 Rather, the statute of repose runs for each unit individually from the date its certificate of
occupancy is issued. The court found that to rule otherwise would unfairly subject earlier-constructed
units to a longer repose period than later-constructed units.
4
o Ss. 718.124 and 718.301 (1 ), F.S .
41
S. 719.103(2) and (26), F.S.
42
Ss . 718 .301 (4 )(p) and 719.301 (4 )(p), F.S.
43 In any claim against a developer, if a defect is found in a condo 's design, construction , or structural elements, or in any mechanical ,
plumbing , electrical , fire protection , or other element that requires a licensed professional for design or installation under chapters 455 ,
4 71 , 481 , 489, or 633, F.S., the defect must be examined and certified by an appropriately-licensed Florida engineer, design
professional , contractor, or other individual or entity. A condo or co-op association should also reference its governing documents to
determine whether any restrictions exist that would impair its rightto initiate litigation . S. 718 .301 (7), F.S .
44
The exact percentage of affected units necessaryto count as "prevalent" is unclear, but courts have found a defect impacting 90-100
percent of unit owners sufficient. Fla. R. Civ. P. 1.221 ; Avila S. Condo. Ass'n, Inc. v. Kappa Corp ., 346 So . 2d 599 (Fla. 1997);
Seawatch at Marathon Condo. Ass'n , Inc. v. Charley Toppino & Sons, Inc. , 610 So. 2d 470 (Fla. 3d DCA 1992); Brazilian Court Hotel
Condo. Owner's Assn, Inc. v. Walker, 584 So . 2d 609 (Fla . 4th DCA 1991 ); El Conquistador Condo ., Inc. v. Day, 338 So . 2d 237 (Fla .
3d DCA 1976).
45 Rogers & Ford Constr. Corp. v. Carlandia Corp, 626 So. 2d 1350 (Fla. 1993).
46
Spring Isle Comm . Ass'n, Inc. v. Herme Enter. Inc., 328 So. 3d 1120 (Fla . 5th DCA 2021 ).
47
726 So. 2d 796 (Fla . 3d DCA 1999).
STORAGE NAME h0085b.RRS PAGE 6
DATE 1/31/2023
Effect of Proposed Changes
CS/HB 85 amends s. 95.11, F.S., to modify the time periods within which a construction defect cause of
action must be brought. Specifically, the bill:
• Changes the point from which the four-year statute of limitations begins to run for patent defects
to the date of the earliest of the:
o Issuance of a temporary certificate of occupancy;
o Issuance of a certificate of occupancy;
o Issuance of a certificate of completion ;
o Construction's abandonment, if not completed; or
o Completion or termination of the engineer's , architect's or contractor's contract with his
or her employer.
• Decreases the statute of repose from ten years to seven years , running from the date of the
earliest of the:
o Issuance of a temporary certificate of occupancy;
o Issuance of a certificate of occupancy; or
o Issuance of a certificate of completion .
However, if none of these certificates are issued, the statute of repose runs from the date of the
earlier of the:
o Construction's abandonment, if not completed; or
o Completion or termination of the engineer's, architect's, or contractor's contract with his
or her employer.
The bill also:
• Specifies that each dwelling unit within a "multi-dwelling building" must be considered its own
improvement for purposes of determining the lim itations period , consistent with the reasoning of
the Fifth DCA in the Sabal Chase case, described above.
• Provides that these amendments apply to any construction defect cause of action commenced
on or after the bill's effective date, regardless of when the cause of action accrued, except that
any such action that would not have been time-barred before these amendments must be
commenced on or before July 1, 2024.
Finally, the bill amends s. 553.84, F.S., to limit the cause of action for a Building Code violation to a
cause of action for a "material" Building Code violation , defined by the bill as a Building Code violation
"that exists within a completed building , structure, or facility which may reasonably result, or has
resulted , in physical harm to a person or significant damage to the performance of a building or its
systems." 48 This limitation would apply even where the person responsible for a "non-material" Building
Code violation knew or should have known that the violation existed and failed to repair it.
The bill provides an effective date of upon becoming a law.
B. SECTION DIRECTORY:
Section 1: Amends s. 95.11, F.S., relating to limitations other than for the recovery of real property.
Section 2: Amends s. 553.84, F.S., relating to statutory civil action .
Section 3: Provides applicability.
Section 4: Provides an effective date of upon becoming a law.
48
The bill does not specifywhat amounts to "significant damage ," as the term is used in this section , or the degree of physical harm
necessaryforthe violation to rise to the level of "material." Cf. s. 553.781 , F.S. (using the same definition of "material violation" but for
regulatory purposes).
STORAGE NAME h0085b.RRS PAGE 7
DATE 1/31/2023
II. FISCAL ANALYSIS & ECONOMIC IMPACT STATEMENT
A. FISCAL IMPACT ON STATE GOVERNMENT:
1. Revenues:
None.
2. Expenditures :
The bill may have an indeterminate impact on state government to the extent that it reduces
construction defect claim litigation in the state court system.
B. FISCAL IMPACT ON LOCAL GOVERNMENTS :
1. Revenues :
None.
2. Expenditures :
None.
C. DIRECT ECONOMIC IMPACT ON PRIVATE SECTOR:
The direct economic impact on the private sector is unknown. However, the bill:
• May leave consumers bearing the costs associated with :
o Latent construction defects that are not or could not have been discovered within the
shortened statute of repose.
o Building Code violations not amounting to "material" violations where there is no other
available cause of action .
• May reduce construction costs for consumers as savings realized by the construction industry
due to lowered insurance premiums and litigation costs may be passed on to consumers .
• May reduce financial liability for the construction industry due to lowered insurance premiums
and litigation costs .
D. FISCAL COMMENTS:
None.
Ill. COMMENTS
A. CONSTITUTIONAL ISSUES:
1. Applicability of Municipality/County Mandates Provision:
Not applicable. The bill does not appear to require counties or municipalities to spend funds or take
action requiring the expenditure of funds; reduce the authority that counties or municipalities have to
raise revenues in the aggregate; or reduce the percentage of state tax shared with counties or
municipalities .
STORAGE NAME: h0085b.RRS PAGE: 8
DATE: 1/31 /2023
2. Other:
Due Process
The U.S. Constitution provides that no state shall "deprive any person of life, liberty, or property,
without due process of law."49 Similarly, the Florida Constitution provides that "[n]o person shall be
deprived of life, liberty, or property without due process of law .. ." 50
Although the right to file a lawsuit is a valid and protected property interest,51 a plaintiff has no vested
right in a statute of limitations or repose in effect when his or her cause of action accrues . 52 A statute
of limitations or repose may thus be either initially imposed or reduced by legislation and applied to
an existing cause of action so long as the plaintiff still has a reasonable amount of time left in which
to enforce his or her right to file a lawsuit. 53
The bill addresses this issue by giving a plaintiff extra time to bring a suit if his or her right to sue
would otherwise be cut off by the bill's changes to s . 95.11 (3)(c), F.S.
B. RULE-~ING AUTHORITY:
Not applicable.
C. DRAFTING ISSUES OR OTHER COMMENTS :
None.
IV. AMENDMENTS/COMMITTEE SUBSTITUTE CHANGES
On January 26, 2023, the Civil Justice Subcommittee adopted two amendments and reported the bill
favorably as a committee substitute. The committee substitute:
• Gave a plaintiff a set period of time to file a construction defect lawsuit if his or her right to sue had
already accrued and would be cut off by changes to s . 95.311(3)(c), F.S., made by the bill.
• Added the word "unit" to clarify that each dwelling unit within a multi-dwelling building must be
considered its own improvement for the purposes of determining the limitations periods.
This analysis is drafted to the committee substitute as passed by the Civil Justice Subcommittee.
49 U.S. Const.amend.14.
50
Art. 1, s .21 , Fla . Const.
51 See Polk Cnty BOGG v. Special Disability Trust Fund , 791 So . 2d 581 , 583 (Fla . 1stDCA 2001 ).
52 Lamb By and Through Donaldson v. Volkswagenwerk Aktiengesellschaft, 631 F. Supp . 1144 (S.D . Fla . 1986),judgmentaff'd , 835
F.2d 1369(11th Cir.1988) .
53 Bauld v. J.A. Jones Const. Co. , 357 So . 2d 401 , 403 (Fla . 1978), quoting Hart v. Bostick , 14 Fla . 162 (1872 ); Walter Denson & Son v.
Nelson , 88 So . 2d 120 (Fla. 1956).
STORAGE NAME h0085b.RRS PAGE: 9
DATE 1/31 /2023
FLORIDA H O U S E 0 F REPRESENTATIVES
CS/HB 85 2023
1 A bill to be entitled
2 An act relating to causes of action based on
3 improvements to real property; amending s. 95 .11,
4 F.S.; revising the time in which an action founded on
5 the design , planning, or construction of an
6 improvement to real property must be commenced;
7 revising the date on which the statute of limitations
8 period begins; providing for the calculation of the
9 statute of limitations period for multi-dwelling
10 buildings ; amending s . 553.84 , F . S. ; defining the term
11 "material violation "; conforming provisions to changes
12 made by the act ; providing applicability; providing an
13 effective date.
14
15 Be It Enacted by the Legislature of the State of Florida :
16
17 Section 1. Paragraph (c) of subsection (3) of section
18 95.11, Florida Statutes , is amended to read :
19 95.11 Limitations other than for the recovery of real
20 property.-Actions other than for recovery of real property shall
21 be commenced as follows :
22 (3) WITHIN FOUR YEARS.-
23 (c)l..:_ An action founded on the design , planning , or
24 construction of an improvement to real property , with the time
25 running from the date of actual possession by the owner , the
Page 1 of 5
CODING: Words stJ:icken are deletions; words underlined are additions.
hb0085-01-c1
FLORIDA H O U S E 0 F REPRESENTATIVES
CS/HB 85 2023
26 date of the issuance of a temporary certificate of occupancy ,
27 the date of the issuance of a certificate of occupancy, the date
28 of the issuance of a certificate of completion , the date of
29 abandonment of construc ti on if not completed, or the date of
30 completion of the contract or termination of the contract
31 between the professional engineer, registered architect, or
32 licensed contractor and his or her employer , whichever date is
33 earliest latest ; except that, when the action involves a latent
34 defect , the time runs from the time the defect is discovered or
35 should have been discovered with the exercise of due diligence.
36 2. In any event , the action must be commenced within 7 +G-
37 years after the date of actual possession by the owner , the date
38 M the issuance of a temporary certificate of occupancy , the
39 date of the issuance of a certificate of occupancy , or the date
40 of the i ssuance of a certificate of completion , whichever date
41 is earliest . If a temporary certificate of occupancy , a
42 certificate of occupancy, or a certificate of completion has not
43 been issued , the action mus t be commenced within 7 years after
44 the date of abandonment of construction if not completed 7 or the
45 date of completion of the contract or termination of the
46 contract between the professional engineer , registered
47 architect , or licensed contractor and his or her employer ,
48 whichever date is earliest latest.
49 3. However , counterclaims , cross - claims, and third -p arty
50 claims that arise out of the conduct , transaction , or occurrence
Page2of5
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hb0085-01-c1
FLORIDA H O U S E 0 F REPRESENTATIVES
CS/HB 85 2023
51 set out or attempted to be set out in a pleading may be
52 commenced up to 1 year after the pleading to which such claims
53 relate is served, even if such claims would otherwise be time
54 barred.
55 4. With respect to actions founded on the design ,
56 planning , or construction of an improvement to real property , if
57 such construction is performed pursuant to a duly issued
58 building permit and if a local enforcement agency , state
59 enforcement agency , or special inspector , as those terms are
60 defined ins . 553.71 , has issued a final certificate of
61 occupancy or certificate of comp l etion , then as to the
62 construction which is within the scope of such building permit
63 and certificate , the correction of defects to completed work or
64 repair of completed work, whether performed under warranty or
65 otherwise , does not extend the period of time within which an
66 action must be commenced . Completion of the contract means the
67 later of the date of final performance of all the contracted
68 services or the date that final payment for such services
69 becomes due without regard to the date final payment is made.
70 5. Notwithstanding any provisi on of this section to the
71 contrary, each dwelling unit with i n a multi - dwelling building
72 must be considered its own improvement for purposes of
73 determining the limitations period set forth in this paragraph .
74 Section 2. Section 553 . 84 , Florida Statutes , is amended to
75 read :
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hb 0085--01-c 1
F L O R D A H O U S E 0 F REPRESENTATIVES
CS/HB 85 2023
76 553 . 84 Statutory civil action.-Notwithstanding any other
77 remedies available , any person or party, in an individual
78 capacity or on behalf of a class of persons or parties , damaged
79 as a result of a material violation of this part or the Florida
80 Building Coder has a cause of action in any court of competent
81 jurisdiction against the person or party who committed the
82 material violation ; however , if the person or party obtains the
83 required building permits and any local government or publ i c
84 agency with authority to enforce the Florida Building Code
85 approves the plans, if the construction project passes all
86 required inspections under the code, and if there is no personal
87 injury or damage to property other than the property that is the
88 subject of the permits , plans , and inspections , this section
89 does not apply unless the person or party knew or should have
90 known that the material violation existed. For purposes of this
91 section , the term "material violation " means a Florida Building
92 Code violation that exists within a completed building ,
93 structure , or facility which may reasonably result , or has
94 resu l ted , in physical harm to a person or significant damage to
95 the performance of a building or its systems.
96 Section 3. The amendments to s . 95 . 11 (3) ( c ), Florida
97 Statutes , made by this act apply to any action commenced on or
98 after the effect i ve date of this act , regardless of when the
99 cause of action accrued , except that any action that would not
100 have been barred under s . 95 . 11(3) (c ) , Florida Statutes , before
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hb 0085-01-c 1
FLORIDA H O U S E 0 F REPRESENTATIVES
CS/HB 85 2023
101 the amendments made by th i s act must be commenced on or before
102 July 1 , 2024 . If the action is not commenced by July 1 , 2024 ,
103 and is barred by the amendments to s . 95 . 11 (3 ) (c) , Florida
104 Statutes , made by this act , then the action is barred .
105 Section 4 . This act sha l l take effect upon becoming a law .
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hb 0085-01-c 1
REGULATORY REFORM AND ECONOMIC DEVELOPMENT SUBCOMMITTEE
CS/HB 85 by Rep. Snyder
Causes of Action Based on Improvements to Real Property
AMENDMENT SUMMARY
February 7, 2023
Amendment 1 by Rep. Snyder (line 22):
• Removes a trigger for starting the timeline for the statute of limitations, and
• Removes a definition.
COMMITTEE/SUBCOMMITTEE AMENDMENT
Bi 11 No . CS/ HB 8 5 (20 2 3 )
Amendment No . l
COMMITTEE/SUBCOMM ITTEE ACTION
ADOPTED (Y /N )
ADOPTED AS AMENDED (Y /N)
ADOPTED W/O OB JECTION (Y/N)
FAILED TO ADOPT (Y/N)
WITHDRAWN (Y /N )
OTHER
1 Committee/Subcommittee hearing bill : Regulatory Reform &
2 Economic Dev elopment Subcommittee
3 Representative Snyder offered the following :
4
5 Amendment
6 Remove lines 22 - 70 and insert :
7 (3) WITHIN FOUR YEARS . -
8 (c) An action founded on the design , planning , or
9 const ruction of an improvement to real property, with the time
10 running from the date of aetual possession by the owner, the
11 date the authority having jurisdiction issues of the issuance of
12 a temporary certificate of occupancy, a certificate of
13 occupancy , a certificate of completi on , or the date of
14 abandonment of construction if not completed, or the date of
15 completion of the contract or termination of the contract
16 between the professional engineer, registered architect, or
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Page 1 of 3
COMMITTEE/SUBCOMMITTEE AMENDMENT
Bi 11 No . CS/ HB 8 5 (202 3 )
Amendment No .l
17 licensed contractor and his or her employer, whichever date is
18 earliest latest; except that, when the action involves a latent
19 defect , the time runs from the time the defect is discovered or
20 should have been discovered with the exercise of due diligence.
21 In any event, the action must be commenced within 2 .:J:..-0 years
22 after the date of actual possession by the owner, the date of
23 the issuance of the authority having jurisdicti on issues a
24 temporary certificate of occupancy , a certificate of occupancy,
25 or a certificate of completion, or the date of abandonment of
26 construction if not completed , whichever date is earliest 4::-B-e-
27 date of abandonment of construction if not completed, or the
28 date of completion of the contract or termination of the
29 contract between the professional engineer, registered
30 architect, or licensed contractor and his or her employer,
31 whichever date is latest. However, counterclaims, cross - claims ,
32 and third -party claims that arise out of the conduct,
33 transaction, or occurrence set out or attempted to be set out in
34 a pleading may be commenced up to 1 year after the pleading to
35 which such claims relate is served, even if such claims would
36 otherwise be time barred. With respect to actions founded on the
37 design , planning, or construction of an improvement to real
38 property , if such construction is performed pursuant to a duly
39 issued building permit and if a local enforcement agency, state
40 enforcement agency , or special i nspector , as those terms are
41 defined ins. 553 . 71 , has issued a final temporary certificate
743753 - h0085 - line22 .docx
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Page 2 of 3
COMMITTEE/SUBCOMMITTEE AMENDMENT
Bill No . CS/HB 85 (2023)
Amendment No.l
42 of occupancy, certificate of occupancy or certificate of
43 completion, then as to the construction which is within the
44 scope of such building permit and certificate, the correction of
45 defects to completed work or repair of completed work, whether
46 performed under warranty or otherwise, does not extend the
47 period of time within which an action must be commenced.
48 Completion of the contract means the later of the date of final
49 performance of all the contracted services or the date that
so final payment for such services becomes due \Jithout regard to
51 the date final payment is made. Notwithstanding any provision of
52 this section to the
743753 - h0085 - line22.docx
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Page 3 of 3
Florida Office of Economic
and Demographic Research
Florida Gaming and the Lottery:
Economics, Status and Impact
February 7, 2023
Presented by:
The Florida Legislature
Office of Economic and
Demographic Research
850.487. 1402
http://edr.state.fl.us
Basic Tax Base --- Simplistic Form
Handle - Prizes - Net Win
The total sum The amount The amount initially
wagered or bet by returned to the class retained by the gambling
participating of participating provider. Represents the
gamblers on any gamblers in the form loss to the entire class of
particular race or of winnings. gamblers and is sometimes
game is known as called "Gross Gaming
the handle. This is Revenue" or GGR.
the initial source of
all non-investment
revenue. !
Taxes, Revenue Sharing, Expenses
(which can include licenses) and
Taxes can also be levied more directly Profits usually come out of Net Win,
against patrons in the form of although taxes may be calculated
admissions taxes. against the handle. Cardroom gross
receipts are a special case.
Underlying Economic Premises ...
• The money for gambling expenditures comes from somewhere; it is not created:
o Recreational budget from discretionary income that could be spent on other items.
o Savings or other investments.
o For problem gamblers, dollars essential to subsistence.
• Some or all of the jobs, wages and tax revenues attributed to gambling
enterprises may be simply transferred from elsewhere. In other words, if the
money was spent elsewhere in Florida, it would also generate jobs, wages and
potential tax revenues from that expenditure.
o Moving activity from one place to another is simply churn without overall statewide gain.
o For jobs, a statewide increase only exists to the extent that the individuals are otherwise
unemployable or they are moving in from outside the state to take the jobs
• In terms of the economy, there are different economic effects based on the type
of gambler. Generally:
0 Residents in the normal course of daily activity-displacement(-) or neutral(=).
0 Tourists who would have come to Florida regardless-displacement(-) or neutral(=).
0 Residents who would have otherwise left the state to gamble-removal of a leakage(+) .
o Tourists coming into the state to gamble who otherwise would not have-new revenue(+) .
The various gaming alternatives will have different mixes of gamblers.
2
Secondary Premises ...
• The specific location of new facilities matters. Pari-mutuel facilities
with slot machines typically draw on their nearby market area (i.e.,
the local resident population).
• A local economic gain doesn't necessarily translate into a
statewide gain. Activity may be pulled from another area of the
state.
• It makes a difference where equipment and supplies are
purchased (in-state or out-of-state).
• It matters where the profits go (in-state or out-of-state).
• Financed capital investment for infrastructure is initially positive as
the dollars are infused, but later becomes a drain as repayments
of the principal and interest remove dollars.
3
Key Economic Consideration ...
• Cannibalization-creating demand for one product at the
expense of another; substitution of one purchase for
another. It can be detected through:
• The shifting among state revenue sources when the gambling
product is a substitute purchase replacing the purchase of another
good which would have been taxed in a different manner. (+ or-
depending on the difference in tax rates)
• The shifting among gambling products that are substitutes for each
other. (+ or - depending on the difference in tax rates)
• The shifting between a nontaxable purchase to a taxed gambling
product. (+)
4
Activity Nested at Tribal Facilities ...
• After multiple attempts, the Governor and the Seminole Tribe of Florida executed an agreement
on April 7, 2010, that was ratified by the Legislature by Chapter 2010-29, L.O.F., and approved
by the United States Secretary of the Interior.
• The 2010 Compact had a term of 20 years, which began the first day of the month following the
publication of the notice of approval in the Federal Register (July 6, 2010), making it effective
August 1, 2010. Based on this, the expiration date would have been July 31, 2030. An
exception was made to the general expiration for certain named banking or banked card games
(including baccarat, chemin de fer, and blackjack, but excluding roulette, craps, roulette-styled
games, and craps-styled games); this specific authorization was set to expire after five years.
• The 2010 Compact authorized play of covered games at seven Seminole tribal gaming
facilities . The games included slot machines at all seven facilities and banked card games at
five of the seven facilities. In FY 2021-22, slots were present in six of the seven facilities:
Broward (2 sites), Hillsborough, Collier, Glades and Hendry counties.
• As part of this authorization, the Tribe was granted partial but substantial exclusivity for both
the play of banked card games and the operation of slots in counties other than Broward and
Miami-Dade. In exchange, the Tribe agreed to a revenue sharing arrangement with the State.
• The General Revenue Fund received 100 percent of the revenue share; however, 3 percent
was subsequently distributed to the affected local governments.
5
2010 Indian Gaming Compact ...
• The Compact provided that once the authorization for banked card games expired , revenue
share payments from all banked card games and all Broward activity would cease. It also
provided that the Tribe had 90 days, referred to as a grace period, to cease the operation of
banked card games. The authorization for banked card games expired on July 31, 2015 , and
the grace period ended October 31 , 2015.
• Beginning in November 2015 and running through July 2017, revenue sharing associated with
banked card games was not included in the state's official revenue forecasts. The Revenue
Estimating Conference met in August 2017 where it took two actions that affected the treatment
of past and future receipts. First, based on the Settlement Agreement and Stipulation entered
into between the Seminole Tribe of Florida and the State of Florida in July 2017, the payments
associated with banked card games that the state had held in reserve ($233.8 million) since
November 2015 were released. Second, all future revenue share payments, including those
formerly placed in reserve, were treated as nonrecurring revenues because continuation of
these payments depended on actions by the State and the Seminole Tribe that could not be
anticipated with sufficient certainty. In this regard , the Settlement Agreement and Stipulation
required that " ... the state takes aggressive enforcement action against the continued operation
of banked card games, including Designated Player Games that are operated in a banked game
manner ... " during a specified Forbearance Period. The original Forbearance Period ended
March 31 , 2018; however, an amendment to the Settlement Agreement was signed on April 18,
2018, effectively extending the Forbearance Period to May 31, 2019.
• After making its April 2019 payment, the Tribe ceased all revenue sharing with the State. The
Revenue Estimating Conference met in July 2019 where it zeroed out the revenue forecast for
the 2010 Compact. 6
2021 Indian Gaming Compact ...
• The Governor and the Seminole Tribe of Florida signed a new Compact on April
23, 2021, with an amendment on May 17, 2021 . It was subsequently ratified in
Special Session by CS/SB 2-A, which was approved by the Governor on May 25,
2021. Most importantly, the 2021 Compact authorized sports betting, to begin no
earlier than October 15, 2021.
• On August 11, 2021, the Department of Interior, Bureau of Indian Affairs,
published a notice entitled "Indian Gaming; Approval by Operation of Law of
Tribal-State Class Ill Gaming Compact in the State of Florida" in the Federal
Register. This notice officially triggered the first revenue sharing cycle under the
terms of the new Compact beginning on September 1, 2021 . By operation , the
2010 Compact was superseded.
• In addition to the previously authorized games, the 2021 Compact authorizes
craps & roulette, sports betting, and fantasy sports contests. It also establishes a
new bracket structure for revenue sharing based on the different components of
Net Win: Slot Machines, Raffles and Drawings+ New Games; Table Games
(including craps & roulette); Sports Betting - Tribe (direct); and Sports Betting -
Qualified Pari-mutuel Permitholders. The new Compact also includes a schedule
of guaranteed minimum payments that applied to the first five revenue sharing
cycles.
7
2021 Indian Gaming Compact Continued ...
• The State of Florida began receiving Indian Gaming payments under the 2021 Compact
in October of 2021.
• The U.S. District Court for the District of Columbia set aside federal approval of the 2021
Compact on November 22, 2021.
Currently, the case is being appealed. The United States Court of Appeals for the D.C. Circuit
held the Oral Argument on December 14, 2022 .
• Other than sports betting, craps and roulette, Indian Gaming activity continues to take
place.
• While the Seminole Tribe of Florida had elected to continue revenue sharing with the
State of Florida after the ruling, it subsequently discontinued those payments in March
2022. It is currently unknown when or if these payments will resume into state accounts.
Therefore, revenue sharing will only become relevant again if or when the 2021 Compact
is reinstated. At this time, however, the Revenue Estimating Conference projects that
there will be no collections from Indian Gaming within the next five years.
• Formerly, the Department of Business and Professional Regulation, Division of Pari-
Mutuel Wagering, had administered the Compact. As of July 1, 2022, the State
Compliance Agency became the Florida Gaming Control Commission.
8
Historical Indian Gaming Receipts (GR)
Total Excluding Total after
Banked Card Release of Bank
Reserve within GR Game Receipts Release of Card Game
Total Received in (not separately held in Reserve Reserve (not Receipts held in Local Distribution
Total Received GR by Year escrowed) by Year Escrow) Reserve by Year by Year
FY 2007/08 60,416,667
FY 2008/09 77,083,333
FY 2009/10* 150,000,000 287,500,000 287,500,000 287,500,000 2007 Compact
FY 2010/11 ** 140,416,667 140,416,667 140,416,667 140,416,667 750,000
FY 2011/12 150,000,000 150,000,000 150,000,000 150,000,000 3,750,000
FY 2012/13 226,083,337 226,083,337 226,083,337 226,083,337 4,500,000
FY 2013/14 237,312,301 237,312,301 237,312,301 237,312,301 6,990,000
FY 2014/15 255,610,619 255,610,619 255,610,619 255,610,619 7,119,369
FY 2015/16 272,840,413 272,840,413 57,500,000 215,340,413 215,340,413 7,670,819
FY 2016/17 288,840,354 288,840,354 166,540,354 122,300,000 122,300,000 6,300,000
FY 2017/18*** 341,803,426 341,803,426 9,800,000 332,003,426 233,840,354 565,843,780 10,550,424
FY 2018/19 257,994,274 257,994,274 257,994,274 257,994,274 10,254,103 2010 Compact
FY 2019/20 7,154,828 {lagged distribution)
FY 2020/21
Total 2,458,401,391 2,458,401,391 233,840,354 2,224,561,037 233,840,354 2,458,401,391 65,039,543
* Formally "escrowed" amount released and shown in GR by CFO's office in Jun e 2010.
** The total amount received in FY 2010-11 includes $2,916,666.67 that is associated with a final payment from the 2007 Compact. It was received in December 2010.
Payments under the 2010 Compact began in August 2010, although it recognized some actions that occurred prior to its effective date .
*** The Reserve was released in August 2017, and thereafter separate catch -up payments were made to loca l distributions to reflect their share of the Reserve ($7,019,
As of January 2022, expected fiscal year payments from the 2021 Compact were: (millions)
FY 2021/22 337.5
FY 2022/23 463 .5
FY 2023/24 481.4
FY 2024/25 498.8
FY 2025/26 516.2
FY 2026/27 533.1
For the 2021 Compact, payments were received for only five months: October 2021 through February 2022 (millions):
9
FY 2021/22 187 .5 55.6%
Counties With Active Pari-Mutuel Permits
Note: In September 2021 , approval was
given for Bayard Raceways, Inc., to relocate
\M
-
\
from Orange Park to St. Augustine.
/
Jl',."1;
.., ~
10
Activity Nested at Pari-Mutuel Facilities ...
State Revenue--AII Sources (mil lions)
$261.4
FY 2021-22 ... AII Sources State Revenue Share
Pari-Mutuel Wagering $ 6.8 2.3% I - $20.3
Cardrooms $ 20.3 7.0%
Slots $ 261.4 90.6%
TOTAL $ 288.5 100.0%
$- $50.0 $100 .0 $150.0 $200 .0 $250 .0 $300.0
■ Slots ■ Ca rdr ooms ■ Pan-Mutuel Wagering
• In FY 2021-22, there were 38 permitholders in 29 discrete locations throughout the state
authorized to conduct traditional pari-mutuel wagering . The industry operated 721 racing and
gaming days for thoroughbred horses, harness horses, and jai alai; none were held for
quarterhorse racing .
• Cardrooms are generally authorized for licensed pari-mutual facilities throughout Florida, but
were only operated at 24 facilities in FY 2021-22.
• Slot machine gaming was operating at 8 pari-mutuel facilities in Broward and Miami-Dade
counties in FY 2021-22.
• During FY 2021-22 , a total of $288.5 million in state revenues was collected from pari-mutuel
activities, cardrooms, slot machine gaming, and their associated licenses, fees and fines.
11
Pari-Mutuel Wagering ...
Pa ri-M ut uel Shares of Handl e --$478 M illion
The pari-mutuel handle
comes from the following Harn ess, 7.4%
types of wagering: live on-
track; simulcast (out-of-
Jai Alai,
state ); intertrack (Florida); 0.6%
and intertrack simulcast
(rebroadcast). No activity
was related to quarter horse
racing in 2021-22.
Pari-mutuel wagering has a
complex revenue structure
that includes occupational
licenses, daily license fees, PARI-MUTUEL HANDLE AND STA TE REVENUE SUMMARY
taxes on admission, taxes on
handle, tax credits and tax
exemptions, but totaled
2012/2013 3,628 430,707 $ 872 ,272 ,660 $13,200,709 1.51%
approximately 1.41 % of the 2013/2014 3,582 383,864 $ 850,136.735 $13,785,681 1.62%
handle in FY 2021-22. 2014/2015 3,441 377,660 $ 779,336,136 $12,589,460 1.62%
2015/2016 3,416 348,081 $ 740,622,948 $11,832,484 1.60 %
2016/2017 3,415 333,620 $ 717,555,785 $10,926,426 1.52 %
Of the $6.8 million in state 2017/2018 3,149 318,621 $ 688,030 ,290 $8,519,787 1.24%
revenue, $5.9 million (87%) 2018/2019 2,742 203 ,219 $ 653,757,703 $9,478,392 1.45%
2019/2020 2,176 132,243 $ 452,660,865 $6,673,808 1.47%
was related to performances,
2020/2021 1,288 35,861 $ 449,239,684 $7,224 ,825 1.61 %
and $0.9 million was related 202 1/2022 721 57 ,988 $ 477 ,966,334 $6,751 ,163 1.41 %
to licenses, etc. Source: Florida Gaming Control Commission, Annual Report for Fiscal Year 2021-2022
12
Cardrooms ...
• There were 829 cardroom tables in operation in FY 2021-22.
• The core tax structure is based on table fees ($1000 per table) and gross receipts taxes
(10% of the monthly gross receipts), with additional revenue from occupational licenses.
One-half of the cardroom taxes goes to the General Revenue Fund, and one-quarter of the
moneys deposited in the Pari-Mutuel Wagering Trust Fund is distributed to the counties and
municipalities that approved the cardroom .
• Of the $20.3 million in total state revenue, $20.1 million (99%) was related to Table Fees
and Taxes on Gross Receipts, and $0.1 million was related to licenses, etc.
CARDROOM GROSS RECEIPTS AND STATE REVENUE SUMMARY
Total State
Total State Revenue Revenue as a
Total Cardroom Gross Receipts Table Fees (Gross Receipts Tax Percent of Gross
Fiscal Year Gross Receipts Tax Collected (Al plus Table Fees) Receipts
2012/2013 $132 ,690,415 $13,269,045 $810,000 $14,079,045 10.61%
2013/2014 $136 ,163,616 $13,615,464 $788 ,000 $14,403,464 10.58%
2014/2015 $135 ,888,902 $13,589,789 $755,000 $14,344,789 10.56%
2015/2016 $147,298,438 $14,729 ,654 $774,000 $15 ,503,654 10.53%
2016/2017 $156 ,914,074 $15,692,825 $805,000 $16 ,497 ,825 10.51%
2017/2018 $167 ,950,581 $16 ,795,063 $786,000 $17,587,063 10.47%
2018/2019 $172 ,085,233 $17 ,208,523 $824 ,000 $18,032,523 10.48%
2019/2020 $132 ,392 ,085 $13 ,239,209 $796,000 $14,035,209 10.60%
2020/2021 $151 ,179,359 $15,117,936 $782,000 $15,899 ,936 10.52%
2021/2022 $193,312,344 $19,331 ,234 $829,000 $20 , 160,234 10.43%
Source: Florida Gaming Control Commission , Annual Report for Fiscal Year 2021-2022 13
State Taxes, 2.3% Owner/ Operator,
4.3%
Unclaimed, 0.0<3-o
Promotions, 1.3%
Won by Patrons,
92.2%
BREAKOUT OF SLOTS HANDLE: FY 2021-22
EDR Estimate of Amount Wagered in FY 2021-22 (billions) Net Win or
9.692 Won by Patrons 92 .2% Net Slot Machine Revenue
/
0.135 Promotions 1.3% =6.6%
0.001 Unclaimed 0.0%
0.241 State Taxes (Official ]
0.448 Owner/ Operator
10.516 Amount Wagered 100.0% 14
State Revenues from Slot Machine Taxes (millions)
$300 .0
$256.3
$250 .0 $241.0
$200 .0
Broward County
Only
$150 .0
$100 .0
$50.0
$-
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One-hundred percent of slot machine tax collections go to the Educational Enhancement
Trust Fund. The slot machine tax rate was 50°/o in FY 2006-07 through FY 2009-10, and
was reduced to 35% beginning in Fiscal Year 2010-11. The state switched from weekly
to monthly collections of slot machine taxes in FY 2012-13, which causes the FY 2012-
13 revenues to appear artificially low. In addition to the tax receipts of $241 million,
revenues from several fees (Compulsive/ Addictive Gambling; facility and occupational
licenses) brought total state revenues to $261.4 million.
15
Tax Rate Change ...
During the 2010 Session, CS/SB 622 (Ch. 2010- Forecasts Prior and Subsequent to Rate Change
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receipts at 35% in FY 2013-14 would equal the 0
2010-11 2011-12 2012-13 2013-14
prior forecast for that year at 50°/o ).
The underlying assumption was that activity would increase to the point where the rate
change was revenue neutral by the fourth year-due to greater capital investments,
promotions and prizes. Overall, net income would have had to increase by 43% for the
change to have been revenue neutral. It did not.
Tax Feb-10 Impact Rate Chg Other Changes Post-Session '10 Actual Difference
2006-07 48.2 0.0 0.0 48.2 48.2
2007-08 122.3 0.0 0.0 122.3 122.3
2008-09 104.4 0.0 -0.3 104.1 104.1
2009-10 129.6 0.0 0.0 129.6 136.4
2010-11 166.7 -25.0 0.0 141.7
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2012-13 193.8 -8.7 5.9 191.0 142.2 -48.8
2013-14 199.0 0.0 19.1 218.1 173.1 -45.0
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Florida Lottery ...
The Florida Lottery's
EDR's Analysis of FY 2021-22 Lottery Financial Report ... "handle" in FY 2021-22
was $9.32 billion. From
Handle Prizes Net System Costs EEFT Total the collective players'
9324.6 6245.5 745.7 2333.5
perspective, the effective
67.0% 8.0% 25.0%
loss on their expenditure
was 33.0 percent.
Instant Ticket Share of Total Sa les
90.0%
80.0% 76.7%
The share to EETF
75 .5%
varies by the type of
70.0%
game: after transfers for
60.0% prizes, fees, admin costs,
and unclaimed prizes,
50.0%
net transfers to the EETF
40.0%
equal approximately
30.0% 38.10% of terminal game
ticket sales and 18.48%
20.0%
of scratch-off ticket sales.
10.0% The share of total ticket
0 .0%
sales arising from instant
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18
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Per Capita Ticket Sales (18+ Population)
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• Per capita Lottery ticket sales have increased dramatically, while the number of retailers has
stayed relatively stable (13,461 in 2022). Both the trend line and the inflation-adjusted level for
FY 1996-97 ($320.13) suggest that the 2021-22 experience of $527 .20 is remarkable.
• According to the Department of Lottery the largest segments of players in 2022 were male
(52%), aged 55+ (39%), and college-educated (44%), with incomes of $70,000 or more per
year (39% ). 19
Across All Forms of Gaming ...
FY 2021-22 ... Handle & Net Win* Handle (All Wagering) Share Per Capita (18+) Estimated Net Win
Indian Gaming $ 20,047,200,000 49.4% $ 1,133.44 $ 2,505,900,000
Pari-Mutuel Wagering $ 477,966,334 1.2% $ 27.02 $ 31,545,778
Cardrooms $ 193,312,344 0.5% $ 10.93 $ 30,929,975
Slots $ 10,515,608,040 25.9% $ 594.54 $ 689,341,437
Lottery $ 9,324,628,000 23.0% $ 527.20 $ 3,079,173,000
TOTAL $ 40,558,714,718 100.0% $ 2,293 .14 $ 6,336,890,190
*EDR projections. Indian Gaming was based on the 2010 Compact, prior to sports betting. In some cases, Net Win is adjusted to reflect current law.
20
Local Government Annual Revenue Distributions: Indian Gaming and Cardrooms
Indian Gaming= 10 Years; Cardrooms = 12 Years)
., ~ .•'\- __. • :·,. , ,. ' .• ~- • • "" . ,c... ; • • ••. , ~~ ~ .., ' .,. , .
1w, ..-;•• .~• 1u~,. 1 ■,· 11,111 ;. ~;..,.,JUlll ••..1UIIIS9fr.l.l•••• UlrA.__ ·•..11)t,.JMJ1~r1. ··•.tt ■ ~,,_.111r,1. ;-p.inro·•.1UL,:~ •J11.,.....,.,.. 111-' ~-•·.a ■ 1.--Yr.AI•• -.. •iniri,1nt:t·:.'1'J1n:••.11 ■ 1• :•.1lil•J~;;.,J·IJ<-•11,Jlr~:~;~l,li,J,•Jl)'Jl:.l,7~;;;~~'.~1}~~
Brevard County 54,911 51,858 50,704 53,398 54,495 64,595 66,451 67,850 75,251 63,968 70,374 92,215 766,072
Broward County 266,966 630,247 709,506 987,425 999,661 1,054,925 889,530 1,407,582 1,360,778 931,196 63,511 148,554 9,449,880
City of Coconut Creek 53,543 287,966 360,826 644,959 643,824 696,763 571,136 992,154 960,205 712,369 0 0 5,923,743
City of Coral Springs 11,682 62,829 78,726 140,718 140,471 152,021 124,611 216,470 209,499 155,426 0 0 1,292,453
City of Dania Beach 27, 263 134,216 157,082 225,199 229,582 245,547 201,191 336,034 325,554 218,439 0 0 2,100,108
City of Gretna 0 20,104 25,950 21,425 23,080 27,513 30,032 29,227 27,198 18,913 12,598 21,775 257,815
City of Hialeah 0 0 0 0 104,492 106,775 102,084 96,419 99,064 69,724 53,800 80,285 712,643
City of Hollywood 149,944 738,189 863,952 1,238,596 1,262,703 1,350,510 1,106,551 1,848,188 1,790,550 1,201,413 0 0 11,550,596
City of Jacksonville 0 63,252 182,702 189,640 195,813 257,846 270,125 290,156 287,440 249,418 345,125 387,428 2,718,945
City of Margate 8,275 44,504 55,764 99,675 99,500 107,681 88,266 153,333 148,395 110,093 0 0 915,488
City of Parkland 1,947 10,472 13,121 23,453 23,412 25,337 20,769 36,079 34,917 25,904 0 0 215,410
Collier County 54,975 265,088 313,631 491,171 504,511 582,789 510,122 890,584 879,704 635,490 0 0 5,128,065
Escambia County 55,828 55,273 49,987 44,969 47,121 53,152 52,697 52,731 50,266 35,697 36,572 52,099 586,392
Florida City 0 0 0 0 0 0 549 24,552 26,565 15,971 0 0 67,637
Glades County 14,175 75,563 92,427 139,983 139,802 149,794 118,198 202,564 200,972 160,291 0 0 1,293,769
Hallandale Beach 123,827 126,489 128,057 134,100 143,166 146,394 138,946 113,894 121,681 87,406 78,515 81,171 1,423,645
Hamilton County 12,974 7,468 7,057 5,805 5,143 150 0 0 0 0 0 0 38,597
Hendry County 150 113 507 1,289 866 932 750 225 0 0 0 0 4,831
Hillsborough County 401,784 1,637,211 1,949,921 3,015,375 3,087,440 3,295,179 2,705,201 4,374,852 4,257,309 2,944,676 83,746 100,219 27,852,912
Jefferson County 9,994 4,323 0 0 0 0 0 0 0 0 0 0 14,316
Lee County 77,690 81,130 82,681 87,245 86,383 96,929 97,592 100,312 107,158 81,747 120,170 145,386 1,164,423
Marion County 46,834 46,899 45,396 46,087 43,612 43,613 71,571 88,453 95,878 83,042 97,221 141,047 849,652
Miami -Dade County 147,277 173,847 202,179 238,881 116,103 108,650 107,683 110,586 120,734 92,704 87,235 137,128 1,643,008
Orange City 0 0 0 0 0 0 34,864 134,084 148,739 119,347 163,710 192,038 792,783
Palm Beach County 161,223 157,663 164,759 157,132 157,624 178,508 183,388 199,262 207,934 160,327 153,408 212,153 2,093,383
Pinellas County 107,071 113,673 108,834 109,688 107,204 110,456 114,798 117,517 121,765 95,362 112,420 135,100 1,353,889
Sarasota County 65,864 65,365 62,988 66,889 70,833 78,425 77,698 74,510 71,906 52,289 63,043 84,030 833,840
St. Johns County 70,804 51,273 6,109 0 0 0 0 0 0 0 0 0 128,187
St. Lucie County 40,889 36,427 33,764 36,959 31,331 29,822 31,458 38,590 47,821 26,984 22,461 13,425 389,931
Town of Davie 27,263 134,216 157,082 225,199 229, 582 245,547 201,191 336,034 325,554 218,439 0 0 2,100,108
Town of Orange Park 132,821 127,839 80,745 90,806 93,829 103,223 139,484 147,755 142,198 115,547 158,112 194,043 1,526,402
Voluisa County 130,385 135,656 130,163 135,737 138,323 157,691 159,674 121,491 112,817 89,085 114,023 136,580 1,561,627
Washington County 57,883 54,056 43,922 40,129 38,188 41,259 44,990 48,319 47,315 38,461 53,696 61,727 569,946
Total by Fiscal Year 2,314,240 5,393,208 6,158,542 8,691,933 8,818,093 9,512,025 8,261,603 12,649,807 12,405,168 8,809,729 1,889,742 2,416,404 87,320,495
Card rooms: 22,280,952 25.5%
Indian Gaming: 65,039,543 74.5%
21
Florida Gaming
Control Commission
Florida Gaming Control
Commission
HOUSE SUBCOMMITTEE ON REGULATORY REFORM & ECONOMIC DEVELOPMENT
FEBRUARY 7, 2023
LOUIS TROMBETTA, EXECUTIVE DIRECTOR
---- - - -· ·- --·- - --·-·
Preserve and protect the integrity of gaming activities through
Mission: fair regulation, licensing, effective criminal investigation, and
enforcement
o Overview: o Duties - Exercises all regulatory and
• Created during 2021 Legislative Special enforcement powers in:
Session • Licensed Pari-Mutuel Activities:
• Five-Member Commission • Horseracing
• Jai Alai
• Cardrooms
o Goals: • Slot Machine Gaming
• Provide efficient regulation of licensed
activity. • Oversight of Gaming Compacts
• Investigate, support, and provide information • Criminal Gambling Prohibitions
to oppose criminal gambling elements in the
State of Florida.
• Protect the health and safety of Floridians .
• Secure state revenues.
Organizational Structure
( FGCC 22/23 Budget: $27,708,426
Regulation
FGCC
Total Number of FTEs = 185
Inspector Law
Slot Executive
General Enforcement
Machine Leadership &
Regulation Support
Information so Services
56
Technology
Administration
Pari-
Mutuel
Law
Wagering
Office of the Enforcement
59
20
General Counsel
The Commission
o Located within the Attorney General's Office
o Led by 5 commissioners serving together as the agency head
• 1 with law enforcement background
• 1 legal background
• 1 accounting background
o Commissioners hold meetings and take final agency action as needed.
• Over 90 Final Order issues since July 1, 2022
• Oversee the FGCC's two subject matter Divisions - (l)Regulation and (2)Law Enforcement
Regulation: The Division of Pa ri-M utuel
Wagering
o The Division of Pari-Mutuel Wagering conducts all the regulated activities of the commission.
o Formerly a Division within DBPR, on July 1, 2022, the Division of Pari -Mutuel Wagering moved from DBPR into the
FGCC.
o There are several regulated gaming activities in the state:
Horse racing, State Revenue Share in FY 21/22
• Jai-alai,
$6,751,163
• Cardrooms, and $20,287,279
• Slot machines .
o Main Duties include:
• Issuance of licenses - individuals and busine-sses
• Compliance investigations
• Animal safety
• Gaming integrity
• Revenue accounting and collection $261,416,215
• Compact overs ight.
■ PMW ■ Card rooms ■ Slots
Law Enforcement
o The FGCC also oversees a Division of Law enforcement with authority throughout the state to take
action to enforce the state's criminal gambling prohibitions.
o FGCC Law Enforcement has prioritized communicating, collaborating, and working with the Law
Enforcement Community.
o The Law Enforcement Division has already succeeded by:
• Working with local municipalities to prevent ordinances from going into effect which would have attempted to
allow local licensing of potentially illegal devices.
• Responding to complaints about illegal gambling throughout the state.
• Providing resources to local law enforcement
Support Divisions: Administration, IT, and OGC
The FGCC's regulatory and law enforcement divi sion s are supported by an IT, Admin and OGC team .
o Admin istration :
The Division of Administration provides all the support in the areas of finance, accounting, budget, HR, Contract Services, Travel and other related
administrative areas . Administration is working to implement agency wide policies and procedures, secure new office space for our main Tallahassee
office and our satellite law enforcement agents.
o Information Technology:
The IT team supports all of the FGCC's technical needs. As the FGCC is a combination of new systems and a former division of DBPR, IT is responsible
for both establishing new systems and migrating the old documents and systems over from DBPR . The IT team is currently working to help move the
FGCC onto an independent network, separate from DBPR, while upgrading our systems and maintaining additional security features for our law
enforcement agents .
o Office of General Co unse l:
The FGCC also has a team of in-house attorneys that provide most of the legal work for the commission . The OGC provides a range of support from
general legal counsel for the commission, regulatory action, law enforcement, and administration .
Additional Information
Statistics: https://fgcc.fl.gov/pmw/statistics/
Annual Reports : https://fgcc.fl.gov/pmw/annual-reports/
Report illegal gambling: https://fgcc.fl.gov/file-a-complaint/
Contact us: https://fgcc.fl.gov/contact/
- --- -· ·- - ~ - - - --- -------- -
Florida Lottery
THE FLORIDA LOTTERY
House Regulatory Reform and Economic Development
Subcommittee
Feb 7, 2023
THE FLORIDA LOTTERY
Sales of lotteries in the United States in 2021 (in million U.S. dollars), by state
,076 22
MISSION:
• Enhance education in Florida by
maximizing transfers to the
Educational Enhancement Trust
Fund (EETF)
• Operate as much as possible as a
business enterprise
2021
1
THE FLORIDA LOTTERY
The Lottery's Greatest Asset:
LOTTERY EMPLOYEES
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industry
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THE FLORIDA LOTTERY
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• Established in 1986 by the Constitutional
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Gainesville
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THE FLORIDA LOTTERY
Creating Brighter Futures for Students and Families
950,000+ BRIGHT FUTURES
Nearly one million students have attended college in Florida
with Bright Futures scholarships.
7
THE FLORIDA LOTTERY
Creating Winning Partnerships
13,449 Retailers Community Outreach
and Partnerships
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THE FLORIDA LOTTERY
Division of Security
• An accredited, fully authorized law
enforcement agency that protects the
integrity of the Florida Lottery and
ensures the statutory responsibilities in
Chapter 24, Florida Statutes are upheld. f~.- _. .
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• The Division employs 27 full -time staff l~tvFoP.C~
and 9 OPS employees in nine district
offices across the state.
10 - - -
THE FLORIDA LOTTERY
Division of Security
• Background Investigations • Facilities Security
• Criminal Investigations • Forensic Laboratory
• Draw Management • Intelligence Services
• Emergency Management • Safety Services
11
THE FLORIDA LOTTERY
Lottery Integrity
Retailer Compliance
Operations & Inspections Forensic Investigations
• Proactive, unannounced visits to Lottery • Agents conduct scientific analysis
retailers as a part of the Retailer Integrity of tickets using advanced
Program technology in the forensic lab
• Undercover compliance operations based • Analysis can lead to players
on random selection, complaints, and receiving their winnings
suspected illicit activity
12
THE FLORIDA LOTTERY
Lottery Integrity
Criminal Investigations Background Investigations &
Intelligence
• Done in conjunction with local and • Background investigations are
state law enforcement partners conducted on all retailers, as well
as Lottery employees and vendors
• Can result in arrests
• Intelligence staff review lost and
stolen tickets
13
THE FLORIDA LOTTERY
Floridians Always Win
Where do
Ticket
Proceeds Go?
14 - - -
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QUESTIONS?
THANK "YOIJ!
• f ROM THE. FLORIDA LOTTER\'
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