Meeting Packet — Insurance & Banking Subcommittee (March 9, 2023)
Summary
Meeting packet for the Insurance & Banking Subcommittee, Thursday, March 9, 2023, 9:00 AM - 11:00 AM, Morris Hall (17 HOB). The agenda lists CS/HB 237 Legal Instruments, HB 337 Workers' Compensation Benefits for Posttraumatic Stress Disorder, HB 505 Insurance, HB 607 Money Services Businesses, HB 881 My Safe Florida Home Program, and PCS for HB 799, Property Insurance for Wind and Flood. The staff analysis of CS/HB 237 says Section 117.285 authorizes remote online witnesses for the execution of estate planning documents, including wills, and that the term witness is undefined.
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Insurance & Banking Subcommittee
Thursday, March 9, 2023
9:00 AM - 11:00 AM
Morris Hall (17 HOB)
Meeting Packet
Paul Renner Wyman Duggan
Speaker Chair
The Florida House of Representatives
Commerce Committee
Insurance & Banking Subcommittee
Paul Renner Wyman Duggan
Speaker Chair
Meeting Agenda
Thursday, March 9, 2023
9:00 AM – 11:00 AM
Morris Hall (17 HOB)
I. Call to Order
II. Roll Call
III. Welcome and Opening Remarks
IV. Consideration of the following bill(s):
• CS/HB 237 Legal Instruments by Civil Justice Subcommittee, Altman
• HB 337 Workers' Compensation Benefits for Posttraumatic Stress Disorder by
McFarland
• HB 505 Insurance by Berfield
• HB 607 Money Services Businesses by Steele
• HB 881 My Safe Florida Home Program by LaMarca
V. Consideration of the following proposed committee substitute(s):
• PCS for HB 799 -- Property Insurance for Wind and Flood
VI. Closing Remarks
VII. Adjournment
303 House Office Building, 402 South Monroe Street, Tallahassee, FL 32399-1300
(850) 717-4870
CS/HB 237
HOUSE OF REPRESENTATIVES STAFF ANALYSIS
BILL #: CS/HB 237 Legal Instruments
SPONSOR(S): Civil Justice Subcommittee, Altman
TIED BILLS: IDEN./SIM. BILLS: CS/SB 286
REFERENCE ACTION ANALYST STAFF DIRECTOR or
BUDGET/POLICY CHIEF
1) Civil Justice Subcommittee 17 Y, 0 N, As CS Mawn Jones
2) Insurance & Banking Subcommittee Lloyd Lloyd
3) Judiciary Committee
SUMMARY ANALYSIS
Section 117.285, F.S., specifically authorizes the use of remote online witnesses for the execution of estate
planning documents, including wills, if specified requirements are met. Most of these documents do not require
notarization, but all must be witnessed by either two attesting or subscribing witnesses. Section 117.285(5),
F.S., enumerates additional requirements applicable when fewer than two witnesses are physically present
with the principal. However, the term “witness” is undefined, creating ambiguity as to whether these
requirements still apply when persons are physically present with the principal and therefore “witnessing” – that
is, observing – the document’s execution but not signing the document as an attesting or subscribing witness.
Section 697.07, F.S., authorizes a mortgage or separate instrument to provide for an assignment of rents of
real property as security for repayment of the mortgage. If such an assignment is made, the mortgagee has a
lien on the rents, allowing the mortgagee to collect rent payments from the mortgagor’s tenants should the
mortgagor default on mortgage payments. Similarly, s. 702.10, F.S., provides that, in a foreclosure action, the
plaintiff may generally request that the court direct the mortgagor defendant to show cause why an order to
make payments during the pendency of the foreclosure proceedings or vacate the premises should not be
entered. However, courts have held that these sections are unenforceable against third parties who acquire
real property subject to a mortgage lien without assuming the mortgage loan’s obligations. Thus, the
mortgagee may be unable to collect payments from the third party during the foreclosure action but may still be
obligated under the mortgage contract to pay taxes on and insurance premiums for the subject property.
The Florida Supreme Court has long held that a junior lienholder may not foreclose a senior lienholder’s lien.
However, in 2021, the Fourth DCA decided Wells Fargo Bank, N.A. v. Tan, in which the court held that a junior
lienholder can foreclose the lien of a senior lienholder if it serves the senior lienholder with process and the
senior lienholder fails to appear or file responsive pleadings in court. The Tan court then applied s. 702.036,
F.S., which provides that, where a mortgage lien is improperly foreclosed, the only remedy is a claim for
monetary damages against the party responsible for the improper action if certain conditions are met, including
that the mortgagee was properly served and a final judgment of foreclosure was entered.
CS/HB 237:
Amends s. 117.201, F.S., to define “witness” as someone whose electronic signature is affixed to an
electronic record to attest or subscribe to a principal’s signature on such record.
Amends ss. 697.07 and 702.10, F.S., to define “mortgagor” to include third parties who acquire title to
or an interest in a mortgaged property, with exceptions. This may allow a mortgagee to collect
payments from a third party who is not subject to the mortgage during a mortgage lien forec losure.
Amends s. 702.036, F.S., to provide that this section applies to final judgments of foreclosure of any
lien and authorize the award of prevailing party attorney fees. This may disincentive a junior lienholder
from attempting to foreclose a senior lienholder’s lien after the Tan decision.
The bill does not appear to have a fiscal impact on state or local governments. The bill provides an effective
date of July 1, 2023.
FULL ANALYSIS
This docum ent does not reflect the intent or official position of the bill sponsor or House of Representatives .
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I. SUBSTANTIVE ANALYSIS
A. EFFECT OF PROPOSED CHANGES:
Background
Witnessing of Electronic Legal Documents
General Provisions
2019 CS/CS/HB 409 created Part II of ch.117, Florida Statutes, to authorize the online notarization of
electronic documents if specified requirements are met. However, an online notary public’s failure to
comply with these requirements does not invalidate the notarial act or the electronic record; instead,
such failure may be introduced for evidentiary purposes, including to establish ch. 117 violations or to
prove fraud, forgery, or impersonation.1
Under this part, a notary public performing an online notarization must verify the principal’s identity at
the time the principal’s signature is taken by using audio-video communication technology and record
the entire audio-video conference session during which the electronic document is executed.2 Identity
verification must be by:
Remote presentation of a government-issued identification credential;
Credential analysis of each government-issued identification credential; and
Identity proofing in the form of knowledge-based authentication or another method of identity
proofing that conforms to statutory standards.3
Part II of ch. 117 also allows an online notary public to supervise the witnessing of electronic
documents by the same audio-video communication technology used for online notarization. 4 The
witness may be physically present with the principal or remote from the principal if the witness and
principal use audio-video communication technology.5 In either case, the online notary public must
verify the witness’s identity in the same manner as the principal’s identity, and the witness must be
present (whether in person or remotely) at the time the principal affixes the electronic signature and
hear the principal make a statement to the effect that the principal has signed the electronic record. 6
Application to Estate Planning Documents
Florida law specifically authorizes the use of remote online witnesses for estate planning document
execution, including wills, if specified requirements are met. 7 Most of these documents do not require
notarization, but all must be witnessed by either two attesting or subscribing witnesses, and Florida law
enumerates additional requirements that apply when fewer than two such witnesses are physically
present with the principal.8 However, the term “witness” is undefined, creating ambiguity as to whether
these additional requirements still apply when persons are physically present with the principal and
therefore “witnessing” – that is, merely observing – the estate planning document’s execution but not
signing the document as an official attesting or subscribing witness. 9
Assignment of Rents and Payments During Foreclosure
Assignment of Rents
1 S. 117.265(9), F.S.
2 S. 117.265(2), F.S.
3 S. 117.265(4), F.S.
4 S. 117.285, F.S.
5 S. 117.285(1), F.S.
6 S. 117.285(3), F.S.
7 S. 117.285(5), F.S.
8 Id.
9 Real Property, Probate, & Trust Law Section of the Florida Bar (“RPPTL”), White Paper: Amendment to Section 117.201, Florida
Statutes, Clarifying Who is a “Witness for Purposes of Electronic Estate Planning Documents (Jan. 2023).
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Florida law authorizes a mortgage or separate instrument to provide for an assignment of rents of real
property or any interest therein as security for the mortgage’s repayment. 10 If such an assignment is
made, the mortgagee has a lien11 on the rents, which lien shall be perfected and effective against third
parties upon recording of the mortgage or separate instrument in the public records of the county in
which the real property is located.12
An assignment of rents is generally enforceable when the mortgagor defaults on mortgage payments
and the mortgagee makes written demand for rents to the mortgagor. 13 The mortgagor must then turn
over to the mortgagee all rents in his or her possession or control at the time of the written demand or
collected thereafter (“collected rents”).14 Further, in the foreclosure action, upon the mortgagee’s or
mortgagor’s application, the court may require the mortgagor to deposit the collected rents into the
court registry or other court-designated depository.15 The court may authorize the use of collected
rents, before deposit into the court registry or other depository, to pay:
The reasonable expenses solely to protect, preserve, and operate the real property, including
real estate taxes and insurance;
Escrow sums required by the mortgage or separate assignment of rents instrument; and
The mortgagee.16
The court must require the mortgagor to account to the court and the mortgagee for the collected rents’
receipt and use and may also impose other conditions on such use.17
All moneys received by the mortgagee under this section must be applied by the mortgagee in
accordance with the mortgage, separate assignment of rents instrument, or promissory note, and the
mortgagee must account to the mortgagor for such application.18 Any undisbursed collected rents
remaining in the mortgagor’s possession, or in the court registry or other depository, must be disbursed
at the foreclosure action’s conclusion in accordance with the court’s final judgment. 19
Payments During Foreclosure Action
Florida law generally authorizes the plaintiff in a foreclosure action to request that the court enter an
order directing the mortgagor defendant to show cause why an order to make payments during the
pendency of the foreclosure proceedings or an order to vacate the premises should not be entered. 20 A
mortgagor defendant’s:
Right to be heard at the hearing to show cause is waived if the mortgagor defendant, after being
served with an order to show cause, engages in conduct that clearly shows that he or she has
relinquished the right to be heard on that order; and
Failure to file defenses or to appear at the hearing presumptively constitutes conduct that clearly
shows that the mortgagor defendant has relinquished the right to be heard.21
10 S. 697.07(1), F.S.
11 A lien is a claim against property that evidences a debt, obligation, or duty. Fla. Jur. 2d Liens s. 37:1.
12 S. 697.07(2), F.S.
13 S. 697.07(3), F.S.
14 Id.
15 S. 697.07(4), F.S.
16 Id.
17 Id.
18 S. 697.07(8), F.S.
19 S. 697.07(5), F.S.
20 S. 702.10(2), F.S.
21 Id.
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If the court finds that a mortgagor defendant has waived the right to be heard, the court may promptly
enter an order requiring payment in the amount specified or an order to vacate the property. 22 However,
if the court finds that a mortgagor defendant has not waived the right to be heard, the court must, at the
hearing on the order to show cause, determine the probable validity of the underlying claim against the
mortgagor defendant and his or her defenses, if any.23 If the court determines that the plaintiff is likely
to prevail in the foreclosure action, the court must order the mortgagor defendant to make payments to
the plaintiff.24 Under such an order:
Payments are payable at such intervals and in such amounts provided for in the mortgage
instrument before acceleration or maturity;
The payment obligation commences from the date of the motion filed under s. 702.10(2), F.S.;
and
Payments must be credited against the mortgage obligation in accordance with the loan’s terms
but do not cure any default or constitute a waiver or any other defense to the foreclosure.25
Further, such court order:
Must be served upon the mortgagor defendant no later than 20 days before the first payment is
owed;
May permit, but may not require, the plaintiff to take all appropriate steps to secure the premises
during the pendency of the foreclosure action;
Must provide that the plaintiff is entitled to possession of the premises upon the mortgagor
defendant’s failure to make the required payments unless, at the hearing, the court found good
cause to order some other enforcement method;26 and
Must be stayed until the foreclosure action’s completion if the mortgagor defendant files with the
court a written undertaking executed by a court-approved surety27 in an amount equal to the
unpaid balance of the lien being foreclosed, including all principal, interest, unpaid taxes, and
insurance premiums paid by the plaintiff.28
However, the provisions relating to payments during a foreclosure action do not apply to the foreclosure
of an owner-occupied residence.29 There is a rebuttable presumption that a residential property for
which a homestead exemption30 was granted according to the latest county property appraiser’s
assessment, before the filing of the foreclosure action, is an owner-occupied residential property.31
Application to Third Parties
Borrowers who default on their mortgage payments often default on other financial obligations, leading
to the sale of the property through a foreclosure action or other sale. 32 For example, borrowers living in
a homeowners’, condominium, or cooperative association may default in paying association
assessments; such assessments become a lien on the property, which if unsatisfied, may result in the
association bringing a foreclosure action against the borrower.33 Such borrowers may also file for
bankruptcy, resulting in the property’s sale by the bankruptcy trustee. 34
22 Id.
23
Id.
24 Id.
25 Id.
26 Should payments not be made and the premises not be vacated in violation of the order, upon the filing of an affidavit with t he clerk
stating these facts, the clerk must issue to the sheriff a writ for possession. Id.
27
A surety guarantees the performance or obligations of a second party (the principal- here, the mortgagor) to a third party (the obligee
- here, the plaintiff) under a three-party contract. National Association of Security Bond Providers, What are Surety Bonds,
https://www.nasbp.org/getabond/about-surety#:~:text=A%20surety%20bond%20is%20a,third%20party%20(the%20obligee) (last visited
Feb. 14, 2023).
28 Id.
29 Id.
30 A homestead exemption is a property tax break offered based on the assessed value of a home which is the homeowner’s
permanent residence and where the homeowner was living as of January 1 of the tax year in question. Art. X, s. 4, Fla. Const.
31 Id.
32 RPPTL, White Paper: Proposal to Expand Applicab ility of § 697.07 and § 702.10 to Third Parties Who Acquire Properties Sub ject to a
Mortgage (Jan. 2023).
33 For more on assessment liens, see ss. 718.116, 719.108, and 720.3085, F.S.
34 For more on bankruptcy, s ee Chapters 7 and 13 of the federal Bankruptcy Code.
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An investor may buy such properties for a low price because the investor takes title to the property
subject to the existing mortgage lien. In other words, the investor is not obligated to pay on the
mortgage, but, if the investor does not pay off the mortgage lien, the mortgagee may foreclose on the
lien.35 Some such investors may vigorously fight mortgage lien foreclosure actions where the property
they purchased has a rent-paying tenant in order to maximize the rental income they can collect before
the action’s conclusion.36 However, courts have held that ss. 697.07 and 702.10, F.S., are
unenforceable against third parties who acquire real property subject to a mortgage lien without
assuming the obligations of the existing mortgage loan. Thus, the mortgagee is unable to collect any
payments from the third-party investor during the foreclosure action but is still obligated to pay taxes on
and insurance premiums for the property.37
Finality of Mortgage Foreclosure Judgment
The Florida Supreme Court has long held that a junior lienholder may not foreclose a senior
lienholder’s lien.38 If somehow a junior lienholder were to improperly include a senior lienholder as a
party to its foreclosure suit and obtain a judgment purporting to extinguish the senior interest, such
foreclosure would be void ab initio as to such lienholder.39 Thus, a senior lienholder has traditionally
been free to ignore a junior lienholder’s foreclosure action, and whoever acquired the property through
the junior lienholder’s foreclosure action would take title the property subject to the senior lienholder’s
lien.
However, in 2021, the Fourth DCA decided Wells Fargo Bank, N.A. v. Tan, in which the court held that
a junior lienholder can foreclose the lien of a senior lienholder if it serves the senior lienholder with
process and the senior lienholder defaults.40 The Tan court then applied s. 702.036, F.S., which
provides that, where a mortgage lien is improperly foreclosed, the only remedy for the senior lienholder
is a claim for monetary damages against the party responsible for the improper action if:
The party seeking relief from the final judgment of foreclosure of the mortgage was properly
served in the foreclosure lawsuit.
The final judgment of foreclosure of the mortgage was entered as to the property.
All applicable appeals periods have run as to the final judgment of foreclosure of the mortgage
with no appeals having been taken or any appeals having been finally resolved.
The property has been acquired for value, by a person not affiliated with the foreclosing lender
or the foreclosed owner, at a time in which no lis pendens regarding the suit to set aside,
invalidate, or challenge the foreclosure appears in the official records of the county where the
property was located.
This Fourth DCA decision effectively changed the business expectations of Florida lenders by creating
a significant risk that senior lienholders may have their liens foreclosed by junior lienholders if they do
not litigate the dispute, which litigation may be costly.41
35 RPPTL, supra note 32.
36 Id.
37 Id.; Green Emerald Homes, LLC v. Residential Credit Opportunities Trust, 256 So. 3d 211 (Fla. 2d DCA 2018).
38 Cone Bros. Const. Co., v. Moore, 141 Fla. 420 (1940).
39 Id.
40 320 So. 3d 782 (4th DCA 2021).
41 RPPTL, White Paper: Proposal to Clarify the Finality of Foreclosure Judgments – Revising § 702.036 (Jan. 2023).
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Effect of Proposed Changes
Witnessing of Electronic Legal Documents
CS/HB 237 amends s. 117.201, F.S., to define “witness,” when used as a noun in Part II of ch. 117, as
someone whose electronic signature is affixed to an electronic record to attest or subscribe to a
principal’s signature on such record. This clarifies that the requirements set out in s. 117.285(5), F.S.,
apply when fewer than two persons who will affix their signature to the electronic document as an
attesting or subscribing witness are physically present with the principal, regardless of how many other
individuals may be physically present with the principal and observing the document’s execution.
The bill also provides that this amendment applies retroactively to January 1, 2020, as it clarifies
existing law.
Assignment of Rents and Payments During Foreclosure
Assignment of Rents
The bill amends s. 697.07, F.S., to define “mortgagee” as a person entitled to enforce an obligation
secured by a mortgage and “mortgagor” as a person who grants a mortgage or a successor in
ownership of the real property described in the mortgage. The bill also amends this section to:
Allow the court to authorize the use of collected rents, before deposit into the court registry or
other depository, to pay homeowners’, condominium, or cooperative assessments that come
due after the entry of the court’s order.
Specify that this section does not apply to a homeowners’, condominium, or cooperative
association that:
o Takes title to the property through the foreclosure of its assessment lien, or a deed in
lieu of foreclosure, if the title remains vested in the association and any rents collected
are applied to the assessments owed; or
o Collects rents from tenants in a parcel or unit where the owner is delinquent in paying
assessments owed to the association.
This allows an assignment of rents provision to be enforceable against third party investors who buy or
otherwise acquire title to real property subject to a mortgage lien without assuming the obligations of
the existing mortgage loan but creates an exception for homeowners’, condominium, and cooperative
associations so that they can continue to collect assessments owed where they would otherwise be
impacted by these changes.
Payments During Foreclosure Action
The bill amends s. 702.10, F.S., to define “mortgagor” as a person who grants a mortgage or a
successor in ownership of the real property described in the mortgage but specifies that the term does
not include a homeowners’, condominium, or cooperative association that:
Takes title to the property through the foreclosure of its assessment lien, or a deed in lieu of
foreclosure, if the title remains vested in the association and any rents collected are applied to
the assessments owed; or
Collects rents from tenants in a parcel or unit where the owner is delinquent in paying
assessments owed to the association.
This gives the mortgagee the ability to seek a court order to collect payments from third party investors
who buy or otherwise take possession of real property subject to a mortgage lien without assuming the
obligations of the existing mortgage loan. It also creates an exception for homeowners’, condominium,
and cooperative associations so that they can continue to collect assessments owed where they would
be otherwise impacted by these changes.
Finality of Mortgage Foreclosure Judgment
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The bill amends s. 702.036, F.S., to:
Provide that it applies to final judgments of foreclosure of any lien, not just a mortgage lien; and
Create a two-way attorney fee provision authorizing the prevailing party in an action based on
the allegedly improper foreclosing of a senior lien to recover his or her attorney fees from the
losing party.
These changes may disincentivize a junior lienholder from attempting to improperly foreclose the lien of
a senior lienholder, whether or not the senior lien is a mortgage lien, thus preserving the business
expectations of mortgage lenders and other senior lienholders in the State.
B. SECTION DIRECTORY:
Section 1: Amends s. 117.201, F.S., relating to definitions.
Section 2: Amends s. 697.07, F.S., relating to assignment of rents.
Section 3: Amends s. 702.036, F.S., relating to finality of mortgage foreclosure judgment.
Section 4: Amends s 702.10, F.S., relating to order to show cause; entry of final judgment of
foreclosure; payment during foreclosure.
Section 5: Provides applicability.
Section 6: Provides an effective date of July 1, 2023.
II. FISCAL ANALYSIS & ECONOMIC IMPACT STATEMENT
A. FISCAL IMPACT ON STATE GOVERNMENT:
1. Revenues:
None.
2. Expenditures:
None.
B. FISCAL IMPACT ON LOCAL GOVERNMENTS:
1. Revenues:
None.
2. Expenditures:
The bill may have an indeterminate impact on local government expenditures to the extent it
reduces litigation in the state court system.
C. DIRECT ECONOMIC IMPACT ON PRIVATE SECTOR:
The bill may give mortgagees the ability to recover payments from third parties during a foreclosure
action to help meet their financial obligations as to the mortgaged property while:
Preventing third-party investors from benefitting financially from delaying foreclosure actions;
and
Protecting the ability of a homeowners’, condominium, or cooperative association to recover
assessments owed to the association even where such association would otherwise be
impacted by these changes.
The bill may also preserve the business expectations of mortgage lenders and other senior lienholders
in the State and reduce their litigation exposure by disincentivizing junior lienholders from attempting to
improperly foreclose their liens, which could result in cost savings to mortgage lenders and other senior
lienholders.
D. FISCAL COMMENTS:
None.
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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:
Retroactivity
A retroactive law is a law “that looks backward or contemplates the past, affecting acts or facts that
existed before the act came into effect.” 42 In determining whether a law may be applied retroactively,
courts first determine whether the law is procedural, remedial, or substantive in nature. 43 A purely
procedural or remedial law may apply retroactively, but a substantive law generally may not apply
retroactively absent clear legislative intent to the contrary. 44
The bill provides that the amendment to s. 117.201, F.S., is intended to clarify existing law – in other
words, that it is remedial in nature – and applies retroactively to January 1, 2020, the date the statute
it intends to clarify took effect.
B. RULE-MAKING AUTHORITY:
Not applicable.
C. DRAFTING ISSUES OR OTHER COMMENTS:
None.
IV. AMENDMENTS/COMMITTEE SUBSTITUTE CHANGES
On February 14, 2023, the Civil Justice Subcommittee adopted an amendment and reported the bill
favorably as a committee substitute. The committee substitute:
Restored the word “defendant” after mortgagor in s. 702.10, F.S., so that the phrase remains
“mortgagor defendant” as it is under current law.
Redefined “mortgagor” in ss. 697.07 and 702.10, F.S., to avoid using the term “mortgagor” in its
own definition.
Redefined “witness” in s. 117.201, F.S., to avoid using the term “witness” in its own definition.
This analysis is drafted to the committee substitute as passed by the Civil Justice Subcommittee.
42 Congressional Research Service, Retroactive Legislation: A Primer for Congress, Aug. 15, 2019,
https://sgp.fas.org/crs/misc/IF11293.pdf (last visited Feb.14, 2023).
43 A procedural law merely establishes the means and methods for applying or enforcing existing duties or rights. A remedial law
confers or changes a remedy, i.e., the means employed in enforcing an existing right or in redressing an injury. A substantive law
creates, alters, or impairs existing substantive rights. Windom v. State, 656 So. 2d 432 (Fla. 1995); St. John’s Village I, Ltd. v. Dept. of
State, 497 So. 2d 990 (Fla. 5th DCA 1986); McMillen v. State Dept. of Revenue, 74 So. 2d 1234 (Fla. 1st DCA 1999).
44 State Farm Mutual Automob ile Ins. Co. v. Laforet, 658 So. 2d 55 (Fla. 1995).
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HB 337
HOUSE OF REPRESENTATIVES STAFF ANALYSIS
BILL #: HB 337 Workers' Compensation Benefits for Posttraumatic Stress Disorder
SPONSOR(S):McFarland
TIED BILLS: IDEN./SIM. BILLS: SB 352
REFERENCE ACTION ANALYST STAFF DIRECTOR
or
BUDGET/POLICY
CHIEF
1) Insurance & Banking Subcommittee Fletcher Lloyd
2) Constitutional Rights, Rule of Law &
Government Operations Subcommittee
3) Appropriations Committee
4) Commerce Committee
SUMMARY ANALYSIS
Workers’ compensation laws require employers to pay medical and indemnity benefits if an employee
suffers an accidental injury or death arising out of work performed in the course and scope of their
employment. Employer-paid benefits for a nervous or mental injury are typically allowed only if an
employee suffers a physical injury that triggers a mental injury.
The Legislature created statutory exceptions for certain first responders in 2018, making
Posttraumatic Stress Disorder (PTSD) a compensable occupational disease for firefighters,
paramedics, emergency medical technicians, and law enforcement officers who suffer from PTSD
after experiencing certain types of qualifying events, even though they were not physically injured.
In 2022, the Legislature extended benefits to correctional officers who experience certain qualifying
events and are subsequently diagnosed with PTSD due to their job duties.
The bill extends PTSD benefits to 911 public safety telecommunicators and those crime scene
investigators, who are not classified as first responders, that are diagnosed with PTSD after
experiencing certain qualifying events, like witnessing a death or grievous bodily injury, or verbally
aiding a person who dies during a state of emergency because first responders cannot be
dispatched.
The bill has an indeterminate, potentially significant, negative fiscal impact on local governments and
an unknown, but likely small, impact on state government.
The bill provides an effective date of July 1, 2023.
This docum ent does not reflect the intent or official position of the bill sponsor or House of Representatives .
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FULL ANALYSIS
I. SUBSTANTIVE ANALYSIS
A. EFFECT OF PROPOSED CHANGES:
Current Situation
Diagnosis of Posttraumatic Stress Disorder
According to the American Psychiatric Association, Posttraumatic Stress Disorder (PTSD) is a
psychiatric disorder that may occur in people who have experienced or witnessed a traumatic
event, such as a natural disaster, serious accident, terrorist act, war, or rape; or people who have
been threatened with death, sexual violence, or serious injury.1 Exposure to an upsetting
traumatic event may be indirect rather than first hand. PTSD can occur if a person learns of the
violent death of a close family member or friend, or is repeatedly exposed to the horrible details of
trauma.2
Symptoms of PTSD may begin shortly after the traumatic event, or may not appear until years
after the event. For a person to be diagnosed with PTSD, symptoms must last for more than one
month and must cause significant distress or interfere with the individual’s daily functioning. 3
Symptoms may include flashbacks, nightmares and severe anxiety, as well as uncontrollable
thoughts about the event. This can lead to avoidance of any stimuli that recalls the traumatic
events, negative thoughts about oneself or the world, and changes in emotional reactions to
events, like being easily startled or having trouble sleeping or concentrating. 4
Rates of PTSD are higher among veterans, police officers, firefighters, and emergency medical
personnel.5
Florida Workers’ Compensation System
Workers’ compensation is a no-fault system that provides medical benefits and compensation for
lost wages when an employee is injured or killed in the course of employment. Employers must
secure coverage, and may do so by purchasing insurance from an authorized carrier, qualifying as
a self-insurer, or purchasing coverage from the Florida Workers’ Compensation Joint Underwriting
Association, which is the state-sponsored insurer of last resort. In return for providing
compensation, the employer is relieved of civil tort liability for workplace injuries, and may only be
sued for intentional acts that result in injury or death.6
In addition to on-the-job injuries, employers may be required to pay compensation or furnish
benefits if an occupational disease causes death or disablement.7 In general, an occupational
1 American Psychiatric Association, What is Posttraumatic Stress Disorder (PTSD)?, https://www.psychiatry.org/patients-
families/ptsd/what-is-ptsd, (last visited Mar. 6, 2023).
2 Id.
3 Id.
4 Mayo Clinic, Post-traumatic stress disorder (PTSD), https://www.mayoclinic.org/diseases-conditions/post-traumatic-
stress-disorder/symptoms-causes/syc-20355967 (last visited Mar. 6, 2023).
5 Institutes of Public Health, PTSD in First Responders, https://institutesofhealth.org/ptsd-in-first-responders (last visited
Mar. 6, 2023).
6 Ss. 440.015, 440.09, 440.10, 440.38, and 627.313, F.S.
7 S. 440.151(1), F.S.
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disease is compensable if:
A condition peculiar to the occupation causes the disease;
Epidemiological studies show exposure to a specific substance involved, at the levels to
which the employee was exposed, may cause the disease;
The disease is the result of the nature of the employment, meaning the occupation
presents a particular hazard of the disease or the incidence of the disease is substantially
higher in the occupation than in the public;
The disease is contracted during the course and scope of employment; and
The nature of the employment is the major contributing cause of the disease, meaning the
cause is more than 50% responsible for the disease as compared to all other causes
combined, as demonstrated by medical evidence only.8
Benefits for Temporary and Permanent Disability
An employer must pay compensation or furnish benefits if an employee suffers a compensable
injury or death “arising out of work performed in the course and scope of employment.”9
Medical Benefits
Employees are entitled to receive all medically necessary remedial treatment, care, and
attendance, including medications, medical supplies, durable medical equipment, and prostheses,
for as long as the nature of the injury and process of recovery requires.10
Indemnity Benefits
Payments for lost wages, known as indemnity benefits, may be required if an injured employee is
unable to work, as determined by an authorized treating medical provider, and typically begin on
the eighth day after the employee loses time from work.11 Indemnity benefits fall into four
categories:
Permanent Total Disability – In the case of total disability adjudged to be permanent (i.e.,
the employee is unable to engage in any type of employment), the employer or its
insurance carrier must pay two-thirds of the employee’s average weekly wages until the
employee reaches the age of 75.12
Temporary Total Disability – In the case of disability total in character but temporary in
quality, the employer or its insurance carrier must pay two-thirds of the employee’s average
weekly wages until the employee returns to work or reaches maximum medical
improvement, but in no event more than 260 weeks (five years). 13
Permanent Impairment – Where an employee has reached maximum medical
improvement, is able to return to work, but has a permanent, but partial, physical
impairment, the Three-Member Panel14 establishes and uses an impairment rating
schedule which represents a percentage of disability to the body as a whole; a monetary
8 Ss. 440.09, and 440.151, F.S.
9 S. 440.09(1), F.S.
10 S. 440.13(2)(a), F.S.
11 Ss. 440.14(1), and 440.20(2)(a), F.S.
12 S. 4401.15(1), F.S.
13 S. 440.15(2)(a), F.S., limits disability benefits to 104 weeks (two years), but the Florida Supreme Court held that this
limit was unconstitutional and directed that a prior limit of 260 weeks (five years) be reinstated. See Westphal v. City of St.
Petersburg, 194 So. 3d 311 (Fla. 2016).
14 S. 440.13, F.S.
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benefit is calculated based on the percentage of impairment.15
Temporary Partial Disability – Where an employee may work with restrictions, the
employer or its insurance carrier must pay 80% of the difference between his or her weekly
earnings prior to injury and post-injury. Payments may be required for up to 260 weeks.16
The minimum payment is $20 per week and the maximum payment is 100 percent of the
statewide average weekly wage, which is based on the average weekly wage paid by employers’
subject to the Florida Reemployment Assistance Program Law as reported to the Department of
Economic Opportunity.17 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.18
General Rules of Compensability for Mental or Nervous Injuries
Mental or Nervous injuries may be compensable, but only if the injury is accompanied by a
physical injury that requires medical treatment. Thus, if a workplace accident causes both a
physical injury and a related mental or nervous injury, both may be compensable so long as the
physical injury that requires medical treatment is the major contributing cause (at least 50 percent
responsible) of the mental or nervous injury. A mental or nervous injury caused by “stress, fright,
or excitement” is not compensable.19
As discussed above, an employee who is temporarily disabled by a workplace injury is eligible for
up to 260 weeks of disability benefits, which typically results in payment of about two-thirds of the
employee’s regular wages, beginning on the eighth day after the employee loses time from work.20
However, temporary disability benefits caused by a mental or nervous injury are limited to six
months after a claimant reaches maximum medical improvement for the physical injury that
triggered the mental or nervous injury.21
For employees who are not first responders, benefits for mental or nervous injuries: 1) may last no
longer than six months from the date of the maximum medical improvement from the physical
injury,22 and 2) may not exceed the 1 percent limit on permanent psychiatric impairment
benefits.23
Special Rules for First Responders
The 2007 Law
The Legislature recognized the unique occupational hazards associated with the work of first
responders in 2007 by providing additional coverage for employment-related accidents and
injuries of both paid and volunteer firefighters, emergency medical technicians and paramedics,
and law enforcement officers.24 The law relaxed certain standards to make it easier for first
15 S 440.15(3), F.S.
16 S 440.15(4), F.S.
17 S. 440.12(2), F.S.
18 Id.
19 S. 440.093, F.S.
20 See supra note 13.
21 S. 440.093(3), F.S.
22 S. 440.093, F.S.
23 Ss. 440.14(3), and 440.15(3(c), F.S.
24 Chapter 2007-87, Laws of Florida, created s. 112.1815, F.S.
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responders to obtain workers’ compensation benefits.
For mental and nervous injuries, lawmakers:
Authorized medical benefits for first responders who did not suffer a physical injury but
demonstrate, by clear and convincing evidence, that a mental or nervous injury arose out of
employment;
Authorized indemnity benefits (lost wages) for first responders who demonstrate that a
mental or nervous injury arose out of a physical injury suffered during the course of
employment; and
Exempted first responders from limits that typically apply to temporary disability benefits for
mental and nervous injuries.
For occupational diseases, lawmakers:
Reduced the evidentiary burden for claims of occupational disease due to exposure to a
specific toxic substance, requiring proof of causation by a preponderance of the evidence,
rather than the clear and convincing evidentiary standard typically applied to such claims;
and
Eliminated the requirement that a first responder’s claim of occupational disease be
supported by epidemiological studies showing 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.
Additionally, lawmakers:
Created a presumption that any adverse reaction to a smallpox vaccination administered to
a first responder is a compensable accident; and
Required that permanent total supplemental benefits received by a first responder whose
employer does not participate in the Social Security program shall not terminate when the
first responder reaches age 62.
2018 Amendments
In 2018, the Legislature authorized medical benefits and compensation for lost wages for first
responders who are diagnosed with PTSD (as described by the Diagnostic and Statistical Manual
of Mental Disorders, Fifth Edition, published by the American Psychiatric Association).25
As a result, a first responder who experiences one of the following qualifying events need not
suffer a physical injury to qualify for medical benefits and be compensated for lost wages:
Seeing a deceased minor;
Witnessing the death of a minor;
Witnessing an injury to a minor who subsequently dies before or upon arrival at a hospital
emergency department;
Participating in the treatment of an injured minor who dies before or on arrival at a hospital
emergency department;
Transporting an injured minor who dies before or on arrival at a hospital emergency
department;
Seeing a decedent whose death was due to grievous bodily harm of a nature that shocks
the conscience;
Witnessing a death (including suicide) that involved grievous bodily harm of a nature that
25 Chapter 2018-124, Laws of Florida, amended s. 112.1815, F.S.
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shocks the conscience;
Witnessing a homicide, whether criminal or excusable, including murder, mass killing,
manslaughter, self-defense, misadventure, and negligence;
Witnessing an injury (including an attempted suicide) to a person who dies before or upon
arrival at a hospital emergency department if the person was injured by grievous bodily
harm of a nature that shocks the conscience;
Participating in the treatment of an injury (including attempted suicide) to a person who dies
before or upon arrival at a hospital emergency department if the person was injured by
grievous bodily harm of a nature that shocks the conscience; or
Transporting a person who was injured (including by attempted suicide) who dies before or
upon arrival at a hospital emergency department if the person was injured by grievous
bodily harm of a nature that shocks the conscience.
2022 Amendments
In 2022, the Legislature authorized medical benefits and compensation for lost wages for
correctional officers who are diagnosed with PTSD. As a result, a correctional officer who
experiences one of the following qualifying events need not suffer a physical injury to qualify for
medical benefits and be compensated for lost wages:
Being taken hostage by an inmate or trapped in a life-threatening situation as a result of an
inmate's act;
Directly witnessing a death (including a death due to suicide) of a person who suffered
grievous bodily harm of a nature that shocks the conscience;
Directly witnessing an injury (including an attempted suicide) to a person who subsequently
dies before or upon arrival at a hospital emergency department if the person was injured by
grievous bodily harm of a nature that shocks the conscience;
Participating in the physical treatment of an injury, or manually transporting a person who
was injured (including by attempted suicide) who subsequently dies before or upon arrival
at a hospital emergency department if the person was injured by grievous bodily harm of a
nature that shocks the conscience;
Directly witnessing a homicide regardless of whether the homicide was criminal or
excusable, including murder, mass killing (three or more killings in a single incident),
manslaughter, self-defense, misadventure, and negligence; or
Seeing for oneself a decedent whose death involved grievous bodily harm of a nature that
shocks the conscience.26
Eligibility of First Responders and Correctional Officers for PTSD Benefits
To be eligible for workers’ compensation benefits for PTSD, the above-mentioned first responders
and correctional officers must demonstrate that they were acting within the scope of employment
when they experienced a qualifying event,27 that they were diagnosed with PTSD by the employer
or carrier’s authorized treating physician,28 and that they reported the injury to their employer
within 90 days of a qualifying event or the manifestation of PTSD, whichever is later. 29 If the
employer or carrier denies benefits, the employee must file a claim for benefits within one year
26 S. 112.18155, F.S.
27 Ss. 112.1815(5) and 112.18155(2)(a)1, F.S.
28 Ss. 112.1815(5)(a)2 and 112.18155(2)(b), F.S.
29 Ss. 112.1815(5)(d) and 112.18155(5), F.S.
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after the qualifying event or diagnosis of PTSD, whichever is later. 30
Employing agencies are required to provide training related to mental health awareness,
prevention, mitigation, and treatment.31
The Division of Workers’ Compensation within the Department of Financial Services (DFS)
adopted Rule 69L-3.009, F.A.C., to specify the types of injuries that qualify as grievous bodily
harm of a nature that shocks the conscience. This rule is used to administer s. 112.1815, F.S.,
relating to specified first responders (for firefighters, paramedics, emergency medical technicians,
and law enforcement officers). DFS has proposed a new rule to administer s. 112.1855, F.A.C.,
relating to correctional officers.
Currently, 911 public safety telecommunicators and civilian crime scene investigators are not
eligible to receive workers’ compensation benefits for PTSD under s. 112.1815, F.S.
Effect of the Bill
The bill makes 911 public safety telecommunicators and crime scene investigators eligible for
workers’ compensation benefits for PTSD, even if the employee has not suffered a physical injury,
so long as the employee is diagnosed with PTSD by the employer or insurance carrier’s
authorized physician and the PTSD was caused by the employee experiencing one of the
following qualifying events:
Directly witnessing a death, including a death due to suicide, that involved grievous bodily
harm of a nature that shocks the conscience;
Directly witnessing the death of a minor;
Directly witnessing an injury, including an attempted suicide, to a person who subsequently
dies before or upon arrival at a hospital emergency department if the person was injured by
grievous bodily harm of a nature that shocks the conscience;
Directly witnessing an injury to a minor who subsequently dies before or upon arrival at a
hospital emergency department;
Verbally aiding a person seeking public safety assistance in the physical treatment of a
minor who subsequently dies before or upon arrival at a hospital emergency department;
Verbally aiding a person seeking public safety assistance in the physical treatment of a
person who subsequently dies during a state of emergency declared by the Governor and
the person's death occurs because first responders cannot be dispatched;
Verbally aiding a person seeking public safety assistance in the physical treatment of an
injury, including by attempted suicide, to a person who subsequently dies before or upon
arrival at a hospital emergency department if the person was injured by grievous bodily
harm of a nature that shocks the conscience;
Directly witnessing a homicide regardless of whether the homicide was criminal or
excusable, including murder, mass killing, manslaughter, self-defense, misadventure, and
negligence;
Seeing for oneself a deceased minor;
Seeing for oneself a decedent whose death involved grievous bodily harm of a nature that
30 Id.
31 Ss. 112.1815(6) and 112.18155(6), F.S.
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shocks the conscience; or
Seeing for oneself a decedent who is in an advanced stage of decomposition.
PTSD must be demonstrated by clear and convincing medical evidence.
The time for notice of injury is identical to the notice provision for first responders and correctional
officers. Thus, 911 public safety telecommunicators or crime scene investigators may be eligible
for benefits for PTSD, without suffering a physical injury, only if they report an injury within 90 days
of a qualifying event or the manifestation of PTSD, whichever is later. If an employer or insurance
carrier denies benefits, the employee must file a claim within one year after the qualifying event or
diagnosis of PTSD, whichever is later.
Agencies that employ 911 public safety telecommunicators and crime scene investigators must
provide training related to mental health awareness, prevention, mitigation, and treatment.
DFS must adopt a rule to specify the types of injuries an employee may witness that qualify as
grievous bodily harm of a nature that shocks the conscience.
Existing law makes about 137,926 first responders eligible for workers’ compensation benefits for
PTSD; this includes 48,211 law enforcement officers,32 20,420 firefighters,33 35,543 emergency
medical technicians,34 and 33,752 paramedics.35 About 28,929 correctional officers working for
state, county, and private correctional agencies are covered as well. 36
The bill extends benefits to about 198 licensed 911 public safety telecommunicators. 37
The bill also extends benefits to an undetermined number of crime scene investigators; some may
be sworn officers while some may be civilian employees of law enforcement agencies. Rosters
maintained by the International Association for Identification, based in Hollywood, Florida, show
216 certified crime scene investigators in Florida.38 The U.S. Bureau of Labor Statistics identifies
1,760 people working as forensic science technicians.39
B. SECTION DIRECTORY:
Section 1. Creates s. 112.18156, F.S., relating to 911 public safety telecommunicators and crime
32 Florida Department of Law Enforcement, 2021 Criminal Justice Agency Profile Report,
https://www.fdle.state.fl.us/CJSTC/Publications/CJAP/CJAP.aspx (last visited Mar. 6, 2023) (reports 4241 officers working
for state agencies; 22,322 law enforcement officers working for sheriff’s offices; 1,870 working for schools, universities,
and ports; and 19,778 working for municipal police departments).
33 U.S. Bureau of Labor Statistics, Occupational Employment and Wages, May 2021,
https://www.bls.gov/oes/current/oes332011.htm (last visited Mar. 6, 2023).
34 Department of Health, License Verification, Emergency Medical Technician,
https://mqa-internet.doh.state.fl.us/MQASearchServic es/HealthCareP roviders (last visited Mar. 6, 2023).
35 Department of Health, License Verification, Paramedic,
https://mqa-internet.doh.state.fl.us/MQASearchServic es/HealthCareP roviders (last visited Mar. 6, 2023).
36 See supra note 31.
37 Department of Health, License Verification, 911 public safety telecommunicator, https://mqa-
internet.doh.state.fl.us/MQASearchServices/HealthCareProviders (last visited Mar. 6, 2023).
38 The Independent Association for Identification, Crime Scene Certification, https://www.theiai.org/crime_scene.php (last
visited Mar. 6, 2023) (rosters identify 51 crime scene investigators, 113 crime scene analysts, and 52 senior crime scene
analysts).
39 See supra note 32.
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scene investigators; special provisions for posttraumatic stress disorders.
Section 2. Declares that the bill fulfills an important state interest.
Section 3. Provides an effective date of July 1, 2023.
II. FISCAL ANALYSIS & ECONOMIC IMPACT STATEMENT
A. FISCAL IMPACT ON STATE GOVERNMENT:
1. Revenues:
None.
2. Expenditures:
The majority of 911 public safety telecommunicators and crime scene investigators are
municipal employees, rather than state employees, and are therefore not covered by the
Risk Management Trust Fund (RMTF) for workers’ compensation coverage. 40 However, the
12 state universities, Florida Department of Law Enforcement (FDLE), Florida Fish and
Wildlife Conservation Commission (FWC), and Florida Department of Highway Safety and
Motor Vehicles (FDHSMV) have dispatch units with 911 public safety telecommunicators
and crime scene investigators.41 While approximately 400-500 911 public safety
telecommunicators are covered by the RMTF, the number of crime scene investigators are
estimated to be low, as some crime scene investigators are law enforcement officers
already covered under the current statute.42 Accordingly, the RMTF may experience an
unknown, but likely small, increase in workers’ compensation claims as a result of the
extension of PTSD benefits to 911 public safety telecommunicators and crime scene
investigators.43
B. FISCAL IMPACT ON LOCAL GOVERNMENTS:
1. Revenues:
None.
2. Expenditures:
Municipalities, counties, and special districts likely would be required to pay more workers’
compensation claims due to extension of PTSD benefits to 911 public safety
telecommunicators and crime scene investigators.44
C. DIRECT ECONOMIC IMPACT ON PRIVATE SECTOR:
Physicians who are authorized providers could experience an increase in patients and
insurance carriers could experience an increase in claims.
D. FISCAL COMMENTS:
The bill has an indeterminate, likely significant, negative fiscal impact on state and local
40 Florida Department of Financial Services, Agency Analysis of 2023 House Bill 337, p. 1 (Mar. 6, 2023).
41 Id.
42 Id.
43 Id. at p. 3.
44 Id. at p. 2.
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governments.
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 extends workers’ compensation benefits for PTSD to 911 public
safety telecommunicators and crime scene investigators; however, an exemption may apply
because all similarly situated state and local government employers of 911 public safety
telecommunicators and crime scene investigators are required to provide workers’
compensation benefits.
2. Other:
None.
B. RULE-MAKING AUTHORITY:
The bill provides sufficient rulemaking authority to the Department of Financial Services,
Division of Workers’ Compensation.
C. DRAFTING ISSUES OR OTHER COMMENTS:
None.
IV. AMENDMENTS/COMMITTEE SUBSTITUTE CHANGES
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F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
HB 337 2023
1 A bill to be entitled
2 An act relating to workers' compensation benefits for
3 posttraumatic stress disorder; creating s. 112.18156,
4 F.S.; providing definitions; providing that
5 posttraumatic stress disorder suffered by a 911 public
6 safety telecommunicator or crime scene investigator is
7 a compensable occupational disease under certain
8 circumstances; specifying the evidentiary standard for
9 demonstrating such disorder; specifying that benefits
10 do not require a physical injury and are not subject
11 to certain apportionment or limitations; providing
12 requirements for benefits offered to a 911 public
13 safety telecommunicator or crime scene investigator
14 for posttraumatic stress disorder; specifying when a
15 claim for posttraumatic stress disorder must be
16 noticed; requiring certain employing agencies to
17 provide specified mental health training; requiring
18 the Department of Financial Services to adopt rules;
19 declaring that the act fulfills an important state
20 interest; providing an effective date.
21
22 Be It Enacted by the Legislature of the State of Florida:
23
24 Section 1. Section 112.18156, Florida Statutes, is created
25 to read:
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26 112.18156 911 public safety telecommunicators and crime
27 scene investigators; special provisions for posttraumatic stress
28 disorders.—
29 (1) As used in this section, the term:
30 (a) "911 public safety telecommunicator" has the same
31 meaning as in s. 401.465(1).
32 (b) "Advanced stage of decomposition" means the breaking
33 down of soft tissue, skin, and hair, as well as muscle and
34 connective tissue.
35 (c) "Crime scene investigator" means a forensic member of
36 a law enforcement agency, government, or civilian crime
37 laboratory whose primary responsibility is to document,
38 identify, collect, or preserve forensic evidence relevant to a
39 law enforcement, death, or natural disaster investigation, and
40 whose primary responsibilities include, but are not limited to,
41 collecting evidence such as fingerprints, footprints, tire
42 tracks, blood and other biological fluids, fibers, and fire
43 debris.
44 (d) "Directly witnessing" means to see or hear for
45 oneself.
46 (e) "Mass killing" means three or more killings in a
47 single incident.
48 (2) For purposes of this section and chapter 440, and
49 notwithstanding ss. 440.093 and 440.151(2), posttraumatic stress
50 disorder, as described in the Diagnostic and Statistica l Manual
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51 of Mental Disorders, Fifth Edition, published by the American
52 Psychiatric Association, suffered by a 911 public safety
53 telecommunicator or crime scene investigator is a compensable
54 occupational disease within the meaning of s. 440.151 if both of
55 the following apply:
56 (a) The posttraumatic stress disorder resulted from the
57 911 public safety telecommunicator or crime scene investigator
58 acting within the course of his or her employment as provided in
59 s. 440.091.
60 (b) The 911 public safety telecommunicator or crime scene
61 investigator is examined and subsequently diagnosed with such
62 disorder by a licensed psychiatrist who is an authorized
63 treating physician as provided in chapter 440 due to one of the
64 following events:
65 1. Directly witnessing a death, including a death due to
66 suicide, that involved grievous bodily harm of a nature that
67 shocks the conscience;
68 2. Directly witnessing the death of a minor;
69 3. Directly witnessing an injury, including an attempted
70 suicide, to a person who subsequently dies before or upon
71 arrival at a hospital emergency department if the person was
72 injured by grievous bodily harm of a nature that shocks the
73 conscience;
74 4. Directly witnessing an injury to a minor who
75 subsequently dies before or upon arrival at a hospital emergency
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76 department;
77 5. Verbally aiding a person seeking public safety
78 assistance in the physical treatment of a minor who subsequently
79 dies before or upon arrival at a hospital emergency department;
80 6. Verbally aiding a person seeking public safety
81 assistance in the physical treatment of a person who
82 subsequently dies during a state of emergency declared by the
83 Governor and the person's death occurs because first responders
84 cannot be dispatched;
85 7. Verbally aiding a person seeking public safety
86 assistance in the physical treatment of an injury, including by
87 attempted suicide, to a person who subsequently dies before or
88 upon arrival at a hospital emergency department if the person
89 was injured by grievous bodily harm of a nature that shocks the
90 conscience;
91 8. Directly witnessing a homicide regardless of whether
92 the homicide was criminal or excusable, including murder, mass
93 killing, manslaughter, self-defense, misadventure, and
94 negligence;
95 9. Seeing for oneself a deceased minor;
96 10. Seeing for oneself a decedent whose death involved
97 grievous bodily harm of a nature that shocks the conscience; or
98 11. Seeing for oneself a decedent who is in an advanced
99 stage of decomposition.
100 (3) The posttraumatic stress disorder must be demonstrated
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101 by clear and convincing medical evidence.
102 (4) Benefits for a 911 public safety telecommunicator or
103 crime scene investigator under this section:
104 (a) Do not require a physical injury to the 911 public
105 safety telecommunicator or crime scene investigator.
106 (b) Are not subject to any of the following:
107 1. Apportionment due to a preexisting posttraumatic stress
108 disorder.
109 2. Any limitation on temporary benefits under s. 440.093.
110 3. The 1-percent limitation on permanent psychiatric
111 impairment benefits under s. 440.15(3).
112 (5) The time for notice of injury or death in cases of
113 compensable posttraumatic stress disorder under this section is
114 the same as in s. 440.151(6) and is measured from one of the
115 qualifying events listed in paragraph (2)(b) or the diagnosis of
116 the disorder, whichever is later. A claim under this section
117 must be properly noticed within 52 weeks after the qualifying
118 event or the diagnosis of the disorder, whichever is later.
119 (6) The employing agency of a 911 public safety
120 telecommunicator or crime scene investigator must provide
121 educational training related to mental health awareness,
122 prevention, mitigation, and treatment.
123 (7) The Department of Financial Services shall adopt rules
124 specifying injuries qualifying as grievous bodily harm of a
125 nature that shocks the conscience for the purposes of this
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126 section.
127 Section 2. The Legislature determines and declares that
128 this act fulfills an important state interest.
129 Section 3. This act shall take effect July 1, 2023.
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HB 505
HOUSE OF REPRESENTATIVES STAFF ANALYSIS
BILL #: HB 505 Insurance
SPONSOR(S): Berfield
TIED BILLS: IDEN./SIM. BILLS:
REFERENCE ACTION ANALYST STAFF DIRECTOR or
BUDGET/POLICY CHIEF
1) Insurance & Banking Subcommittee Fortenberry Lloyd
2) State Administration & Technology
Appropriations Subcommittee
3) Commerce Committee
SUMMARY ANALYSIS
The bill makes the following changes regarding insurance:
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.
Commission on Hurricane Loss Projection Methodology (Commission) – provides that a designee of
the Director of the Division of Emergency Management may be a member of the Commission in lieu of the
Director.
Mitigation Credits in Residential Property Insurance Rate Filings – allows residential property 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 and
also changes the number of days’ notice that must be given from 15 to 10 to match federal law.
Policy Documents – revises notice requirements for certain limited-coverage automobile insurance
policies.
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, 2023.
This docum ent does not reflect the intent or official position of the bill sponsor or House of Representatives .
STORAGE NAME: h0505.IBS
DATE: 3/7/2023
FULL ANALYSIS
I. SUBSTANTIVE ANALYSIS
A. EFFECT OF PROPOSED CHANGES:
Commission on Hurricane Loss Projection Methodology
The Florida Commission on Hurricane Loss Projection Methodology (Commission) is a panel of experts
created to provide “actuarially sophisticated guidelines as standards for projection of hurricane losses
possible, given the current state of actuarial science.” 1 The Commission consists of 12 members
including the Director of the Division of Emergency Management (Director). 2 However, the Director has
indicated that he is sometimes unavailable to attend the Commission’s meetings and would like the
discretion to send a designee to those meetings.
Effect of the Bill
The bill establishes that the Director may designate a full-time employee of the Division of Emergency
Management to be a member of the Commission as a replacement for the Director.
Use of Hurricane Models in Residential Property Insurance Rate Filings
The law regarding the Office of Insurance Regulation’s (OIR) review and approval of residential
property insurance rate filings requires that a rate filing consider mitigation measures that policyholders
undertake to reduce hurricane losses.3 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.4 The law also establishes criteria for the Commission’s consideration, and approval, of
hurricane loss models and prescribes how those models affect OIR’s approval of property insurance
rate filings.5
Effect of the Bill
The bill amends the 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. 6 Insurers utilize factors that
statewide organizations develop to indicate how building code enforcement units evaluate risk in
particular geographical areas.7 However, these factors are often 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. 8 Mitigation
features are construction techniques used or items installed to protect a structure against windstorm
1 S. 627.0628(1)(c), F.S.
2 S. 627.0628(2)(b)4., F.S.
3 S. 627.062(2)(j), F.S.
4 S. 627.062(2)(b), F.S.
5 Ss. 627.0628-627.06281, F.S.
6 S. 627.0629(2)(b), F.S.
7 See, e.g., ISO Mitigation, ISO’s Building Code Effectiveness Grading Schedule (BCEGS),
https://www.isomitigation.com/bcegs/ (last visited Mar. 1, 2023). BCEGS is a program that provides these rating factors.
8 See s. 627.0629, F.S.
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DATE: 3/7/2023
damage or loss.9 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.10 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.11
Effect of the Bill
The bill allows insurers to file a rating plan (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.12 Insurers and policyholders may enter into automatic bank withdrawal
agreements for paying insurance premiums.13 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.
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.14 Federal law also only requires that a policyholder receive 10 days’ notice as opposed
to 15 days’ notice before a change in the amount withdrawn.15
Effect of the Bill
The bill changes the 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. The bill also reduces the number of days’ notice required before a change in a
withdrawal from 15 days to 10 days to match federal law.
Limited Coverage Notice Requirements
Automobile insurance policies that do not contain coverage for bodily injury and property damage16
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.
9 See id.
10 Whole Building Design Guide, Code-Plus Program for Disaster Resistance, https://www.wbdg.org/resources/code-plus-
programs-disaster-resistance (last visited Mar. 1, 2023).
11 See, e.g., Insurance Institute of Business & Home Safety, https://ibhs.org/ (last visited Mar. 1, 2023).
12 S. 627.4035(1)(a), F.S.
13 S. 627.0665, F.S.
14 12 CFR 1005(10)(d).
15 Id.
16 S. 627.7276, F.S. These limited policies are typically issued to certain antique cars.
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DATE: 3/7/2023
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. 627.062, F.S, relating to rate standards.
Section 2. Amends s. 627.0628, F.S., relating to Florida Commission on Hurricane Loss Projection
Methodology; public records exemption; public meetings exemption.
Section 3. Amends s. 627.0629, F.S., relating to residential property insurance; rate filings.
Section 4. Amends s. 627.0665, F.S., relating to automatic bank withdrawal agreements; notification
required.
Section 5. Amends s. 627.7276, F.S., relating to notice of limited coverage.
Section 6. Provides an effective date of July 1, 2023.
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 unknown positive direct economic impact on the private sector through the
application of mitigation credits to residential property insurance policies.
D. FISCAL COMMENTS:
None.
III. COMMENTS
A. CONSTITUTIONAL ISSUES:
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DATE: 3/7/2023
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
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DATE: 3/7/2023
F L O R I 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 505 2023
1 A bill to be entitled
2 An act relating to insurance; amending s. 627.062,
3 F.S.; revising requirements for residential property
4 insurance rate filings; amending s. 627.0628, F.S.;
5 authorizing a designee of the Director of Emergency
6 Management to be a member of the Florida Commission on
7 Hurricane Loss Projection Methodology; providing a
8 requirement for such designee; amending s. 627.0629,
9 F.S.; authorizing insurers to file with the Office of
10 Insurance Regulation personal lines residential
11 property insurance rating plans relating to windstorm
12 mitigation construction standards; providing
13 requirements for such filings; amending s. 627.0665,
14 F.S.; revising the timeframe for notices from insurers
15 to insureds of automatic bank withdrawal increases;
16 specifying the increase threshold for such notices;
17 amending s. 627.7276, F.S.; revising the requirements
18 for the notice of certain automobile policies;
19 providing an effective date.
20
21 Be It Enacted by the Legislature of the State of Florida:
22
23 Section 1. Paragraph (j) of subsection (2) of section
24 627.062, Florida Statutes, is amended to read:
25 627.062 Rate standards.—
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F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
HB 505 2023
26 (2) As to all such classes of insurance:
27 (j) With respect to residential property insurance rate
28 filings, the rate filing:
29 1. Must account for mitigation measures undertaken by
30 policyholders to reduce hurricane losses.
31 2. May use a modeling indication that is the weighted or
32 straight average of two or more hurricane loss projection models
33 found by the Florida Commission on Hurricane Loss Projection
34 Methodology to be accurate or reliable pursuant to s. 627.0628.
35
36 The provisions of this subsection do not apply to workers'
37 compensation, employer's liability insurance, and motor vehicle
38 insurance.
39 Section 2. Paragraph (b) of subsection (2) of section
40 627.0628, Florida Statutes, is amended to read:
41 627.0628 Florida Commission on Hurricane Loss Projection
42 Methodology; public records exemption; public meetings
43 exemption.—
44 (2) COMMISSION CREATED.—
45 (b) The commission shall consist of the following 12
46 members:
47 1. The insurance consumer advocate.
48 2. The senior employee of the State Board of
49 Administration responsible for operations of the Florida
50 Hurricane Catastrophe Fund.
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F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
HB 505 2023
51 3. The Executive Director of the Citizens Property
52 Insurance Corporation.
53 4. The Director of the Division of Emergency Management or
54 the director's designee. The director's designee must be a full -
55 time employee of the division.
56 5. The actuary member of the Florida Hurricane Catastrophe
57 Fund Advisory Council.
58 6. An employee of the office who is an actuary responsible
59 for property insurance rate filings and who is appointed by the
60 director of the office.
61 7. Five members appointed by the Chief Financial Officer,
62 as follows:
63 a. An actuary who is employed full time by a property and
64 casualty insurer that was responsible for at least 1 percent of
65 the aggregate statewide direct written premium for homeowner
66 insurance in the calendar year preceding the member's
67 appointment to the commission.
68 b. An expert in insurance finance who is a full-time
69 member of the faculty of the State University System and who has
70 a background in actuarial science.
71 c. An expert in statistics who is a full-time member of
72 the faculty of the State University System and who has a
73 background in insurance.
74 d. An expert in computer system design who is a full -time
75 member of the faculty of the State University System.
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F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
HB 505 2023
76 e. An expert in meteorology who is a full-time member of
77 the faculty of the State University System and who specializes
78 in hurricanes.
79 8. A licensed professional structural engineer who is a
80 full-time faculty member in the State University System and who
81 has expertise in wind mitigation techniques. This appoi ntment
82 shall be made by the Governor.
83 Section 3. Subsection (9) is added to section 627.0629,
84 Florida Statutes, to read:
85 627.0629 Residential property insurance; rate filings. —
86 (9) An insurer may file with the office a personal lines
87 residential property insurance rating plan that provides
88 justified premium discounts, credits, or other rate
89 differentials based on windstorm mitigation construction
90 standards developed by an independent, nonprofit scientific
91 research organization, if such standards meet the requirements
92 of this section. Such plan must describe the manner in which the
93 insurer will document the existence of the mitigation features
94 and premium discounts, credits, or other rate differentials
95 created under such plan.
96 Section 4. Section 627.0665, Florida Statutes, is amended
97 to read:
98 627.0665 Automatic bank withdrawal agreements;
99 notification required.—Any insurer licensed to issue insurance
100 in the state who has an automatic bank withdrawal agreement with
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F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
HB 505 2023
101 an insured party for the payment of insurance premiums for any
102 type of insurance shall give the named insured at least 10 15
103 days advance written notice of any increase in policy premiums
104 which results in the next automatic bank withdrawal being
105 increased by more than $10. Such notice must be provided before
106 prior to any automatic bank withdrawal containing the of an
107 increased premium.
108 Section 5. Section 627.7276, Florida Statutes, is amended
109 to read:
110 627.7276 Notice of limited coverage.—
111 (1) An automobile policy that does not contain coverage
112 for bodily injury and property damage must include a notice be
113 clearly stamped or printed to the effect that such coverage is
114 not included in the policy in the following manner:
115 "THIS POLICY DOES NOT PROVIDE BODILY INJURY AND PROPERTY DAMAGE
116 LIABILITY INSURANCE OR ANY OTHER COVERAGE FOR WHICH A SPECIFIC
117 PREMIUM CHARGE IS NOT MADE, AND DOES NOT COMPLY WITH ANY
118 FINANCIAL RESPONSIBILITY LAW."
119 (2) This notice legend must accompany appear on the policy
120 declarations declaration page and on the filing back of the
121 policy and must be printed in a contrasting color from that used
122 on the policy and in type size at least as large as larger than
123 the largest type size used on the declarations page in the text
124 thereof, as an overprint or by a rubber stamp impression.
125 Section 6. This act shall take effect July 1, 2023.
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INSURANCE & BANKING SUBCOMMITTEE
HB 505 by Rep. Berfield
Insurance
AMENDMENT SUMMARY
March 9, 2023
Amendment 1 by Rep. Berfield (Line 23): The amendment:
• Allows the Executive Director of Citizens Property Insurance to designate a person to
serve on the Florida Commission on Hurricane Loss Projection Methodology in the
executive director’s place. The designee must be full-time employee with either
actuarial science experience or senior operations management experience,
• Allows the electronic delivery of health insurance policy documents and removes
requirements regarding paper insurance policy documents,
• Allows policyholders to type their intent to decline wind and contents coverage in
their property insurance policies, rather than requiring them to write it in their own
hand, as currently required, and
• Corrects a technical error made in a bill last year.
COMMITTEE/SUBCOMMITTEE AMENDMENT
Bill No. HB 505 (2023)
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: Insurance & Banking
2 Subcommittee
3 Representative Berfield offered the following:
4
5 Amendment (with title amendment)
6 Remove lines 23-107 and insert:
7 Section 1. Paragraph (d) of subsection (2) of section
8 626.8411, Florida Statutes, is amended to read:
9 626.8411 Application of Florida Insurance Code provisions
10 to title agents or agencies.—
11 (2) The following provisions of part I do not apply to
12 title insurance agents or title insurance agencies:
13 (d) Section 626.172, except for paragraph (2)(e)(f) of
14 that section, relating to agent in full-time charge.
15 Section 2. Paragraph (j) of subsection (2) of section
16 627.062, Florida Statutes, is amended to read:
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COMMITTEE/SUBCOMMITTEE AMENDMENT
Bill No. HB 505 (2023)
Amendment No. 1
17 627.062 Rate standards.—
18 (2) As to all such classes of insurance:
19 (j) With respect to residential property insurance rate
20 filings, the rate filing:
21 1. Must account for mitigation measures undertaken by
22 policyholders to reduce hurricane losses.
23 2. May use a modeling indication that is the weighted or
24 straight average of two or more hurricane loss projection models
25 found by the Florida Commission on Hurricane Loss Projection
26 Methodology to be accurate or reliable pursuant to s. 627.0628.
27
28 The provisions of this subsection do not apply to workers'
29 compensation, employer's liability insurance, and motor vehicle
30 insurance.
31 Section 3. Paragraph (b) of subsection (2) of section
32 627.0628, Florida Statutes, is amended to read:
33 627.0628 Florida Commission on Hurricane Loss Projection
34 Methodology; public records exemption; public meetings
35 exemption.—
36 (2) COMMISSION CREATED.—
37 (b) The commission shall consist of the following 12
38 members:
39 1. The insurance consumer advocate.
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COMMITTEE/SUBCOMMITTEE AMENDMENT
Bill No. HB 505 (2023)
Amendment No. 1
40 2. The senior employee of the State Board of
41 Administration responsible for operations of the Florida
42 Hurricane Catastrophe Fund.
43 3. The Executive Director of the Citizens Property
44 Insurance Corporation or the director's designee. The director's
45 designee must be a full-time employee of the corporation with
46 either actuarial science experience or senior operations
47 management experience.
48 4. The Director of the Division of Emergency Management or
49 the director's designee. The director's designee must be a full-
50 time employee of the division.
51 5. The actuary member of the Florida Hurricane Catastrophe
52 Fund Advisory Council.
53 6. An employee of the office who is an actuary responsible
54 for property insurance rate filings and who is appointed by the
55 director of the office.
56 7. Five members appointed by the Chief Financial Officer,
57 as follows:
58 a. An actuary who is employed full time by a property and
59 casualty insurer that was responsible for at least 1 percent of
60 the aggregate statewide direct written premium for homeowner
61 insurance in the calendar year preceding the member's
62 appointment to the commission.
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COMMITTEE/SUBCOMMITTEE AMENDMENT
Bill No. HB 505 (2023)
Amendment No. 1
63 b. An expert in insurance finance who is a full-time
64 member of the faculty of the State University System and who has
65 a background in actuarial science.
66 c. An expert in statistics who is a full-time member of
67 the faculty of the State University System and who has a
68 background in insurance.
69 d. An expert in computer system design who is a full -time
70 member of the faculty of the State University Syste m.
71 e. An expert in meteorology who is a full-time member of
72 the faculty of the State University System and who specializes
73 in hurricanes.
74 8. A licensed professional structural engineer who is a
75 full-time faculty member in the State University System an d who
76 has expertise in wind mitigation techniques. This appointment
77 shall be made by the Governor.
78 Section 4. Subsection (9) is added to section 627.0629,
79 Florida Statutes, to read:
80 627.0629 Residential property insurance; rate filings. —
81 (9) An insurer may file with the office a personal lines
82 residential property insurance rating plan that provides
83 justified premium discounts, credits, or other rate
84 differentials based on windstorm mitigation construction
85 standards developed by an independent, nonprofit scientific
86 research organization, if such standards meet the requirements
87 of this section. Such plan must describe the manner in which the
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COMMITTEE/SUBCOMMITTEE AMENDMENT
Bill No. HB 505 (2023)
Amendment No. 1
88 insurer will document the existence of the mitigation features
89 and premium discounts, credits, or other rate differentials
90 created under such plan.
91 Section 5. Section 627.0665, Florida Statutes, is amended
92 to read:
93 627.0665 Automatic bank withdrawal agreements;
94 notification required.—Any insurer licensed to issue insurance
95 in the state who has an automatic bank withdrawal agreement with
96 an insured party for the payment of insurance premiums for any
97 type of insurance shall give the named insured at least 10 15
98 days advance written notice of any increase in policy premiums
99 which results in the next automatic bank withdrawal being
100 increased by more than $10. Such notice must be provided before
101 prior to any automatic bank withdrawal containing the of an
102 increased premium.
103 Section 6. Section 1. Subsection (1) of section 627.421,
104 Florida Statutes, is amended to read:
105 627.421 Delivery of policy.—
106 (1) Subject to the insurer's requirement as to payment of
107 premium, every policy shall be mailed, delivered, or
108 electronically transmitted to the insured or to the person
109 entitled thereto not later than 60 days after the effectuation
110 of coverage. Notwithstanding any other provision of law, an
111 insurer may allow a policyholder of personal lines insurance to
112 affirmatively elect delivery of the policy documents, including,
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COMMITTEE/SUBCOMMITTEE AMENDMENT
Bill No. HB 505 (2023)
Amendment No. 1
113 but not limited to, policies, endorsements, notices, or
114 documents, by electronic means in lieu of delivery by mail.
115 Electronic transmission of a policy, related notices, and other
116 documents for individual and group health insurance policies or
117 certificates of coverage pursuant to parts VI and VII of this
118 chapter, respectively; health maintenance contracts or
119 certificates of coverage pursuant to part I of chapter 641;
120 prepaid limited health service contracts pursuant to part I of
121 chapter 636; and for commercial risks, including, but not
122 limited to, workers' compensation and employers' liability,
123 commercial automobile liability, commercial automobile physical
124 damage, commercial lines residential property, commercial
125 nonresidential property, farmowners insurance, and the types of
126 commercial lines risks set forth in s. 627.062(3)(d),
127 constitutes delivery to the insured or to the person entitled to
128 delivery, unless the insured or the person entitled to delivery
129 communicates to the insurer in writing or electronically that he
130 or she does not agree to delivery by electronic means.
131 Electronic transmission shall include a notice to the insured or
132 to the person entitled to delivery of a policy of his or her
133 right to receive the policy via United States mail rather than
134 via electronic transmission. A paper copy of the policy shall be
135 provided to the insured or to the person entitled to delivery at
136 his or her request.
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COMMITTEE/SUBCOMMITTEE AMENDMENT
Bill No. HB 505 (2023)
Amendment No. 1
137 Section 7. Paragraph (a) of subsection (2) and subsection
138 (3) of section 627.712, Florida Statutes, are amended to read:
139 627.712 Residential windstorm coverage required;
140 availability of exclusions for windstorm or contents. —
141 (2) A property insurer must make available, at the option
142 of the policyholder, an exclusion of windstorm coverage.
143 (a) The coverage may be excluded only if:
144 1. When the policyholder is a natural person, the
145 policyholder personally writes or types and provides to the
146 insurer the following statement in his or her own handwriting
147 and signs his or her name, which must also be signed by every
148 other named insured on the policy, and dated: "I do not want the
149 insurance on my (home/mobile home/condominium unit) to pay for
150 damage from windstorms. I will pay those costs. My insurance
151 will not."
152 2. When the policyholder is other than a natural person,
153 the policyholder provides to the insurer on the policyholder's
154 letterhead the following statement that must be signed by the
155 policyholder's authorized representative and dated: "...(Name of
156 entity)... does not want the insurance on its ...(type of
157 structure)... to pay for damage from windstorms. ...( Name of
158 entity)... will be responsible for these costs. ...(Name of
159 entity's)... insurance will not."
160 (3) An insurer issuing a residential property insurance
161 policy, except for a condominium unit owner policy or a tenant
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COMMITTEE/SUBCOMMITTEE AMENDMENT
Bill No. HB 505 (2023)
Amendment No. 1
162 policy, must make available, at the option of the policyholder,
163 an exclusion of coverage for the contents. The coverage may be
164 excluded only if the policyholder personally writes or types and
165 provides to the insurer the following statement in his or her
166 own handwriting and signs his or her signature, which must also
167 be signed by every other named insured on the policy, and dated:
168 "I do not want the insurance on my (home/mobile home) to pay for
169 the costs to repair or replace any contents that are damaged. I
170 will pay those costs. My insurance will not."
171
172 -----------------------------------------------------
173 T I T L E A M E N D M E N T
174 Remove lines 2-16 and insert:
175 An act relating to insurance; amending s. 626.8411, F.S.;
176 correcting a cross reference; amending s. 627.062, F.S.;
177 revising requirements for residential property insurance rate
178 filings; amending s. 627.0628, F.S.; authorizing the appointment
179 of two members of the Florida Commission on Hurricane Loss
180 Projection Methodology; providing requirements for such
181 designees; amending s. 627.0629, F.S.; authorizing insurers to
182 file with the Office of Insurance Regulation personal lines
183 residential property insurance rating plans relating to
184 windstorm mitigation construction standards; providing
185 requirements for such filings; amending s. 627.0665, F.S.;
186 revising the timeframe for notices from insurers to insureds of
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COMMITTEE/SUBCOMMITTEE AMENDMENT
Bill No. HB 505 (2023)
Amendment No. 1
187 automatic bank withdrawal increases; specifying the increase
188 threshold for such notices; amending s. 627.421, F.S.; allowing
189 electronic delivery of insurance policy documents for certain
190 health insurance policies, certificates of coverage, or
191 contracts; eliminating requirements for paper delivery of
192 certain insurance policies; amending s. 627.712, F.S.; allowing
193 insurance policyholders to type the intent to decli ne certain
194 coverage instead of handwriting it;
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HB 607
HOUSE OF REPRESENTATIVES STAFF ANALYSIS
BILL #: HB 607 Money Services Businesses
SPONSOR(S): Steele
TIED BILLS: IDEN./SIM. BILLS: SB 532
REFERENCE ACTION ANALYST STAFF DIRECTOR or
BUDGET/POLICY CHIEF
1) Insurance & Banking Subcommittee Sellas Lloyd
2) State Administration & Technology
Appropriations Subcommittee
3) Commerce Committee
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 gain access to CHRI data 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
Originating 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 data 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. To
address this issue the Florida Legislature passed Chapter 2022 -135, Laws of Florida, which created the term
“control person” to replace the use of “officer” and “responsible person,” as well as various other terms, throughout
ch. 560 F.S. However, this new “control person” term was still too broad for CJILU’s approval, and thus OFR still
lacks the ORI approval from CJILU.
The CJILU acknowledged that MSB fingerprinting was previously app roved by the CJILU, and that the FBI will
continue to honor fingerprints submitted for MSB licensure. However, the CJILU has placed MSB fingerprinting on a
grace period of unspecified length in order to allow Florida to amend MSB fingerprinting statutes su ch 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.
The bill revises the term “control person” to create a more definite list of individuals who are subject to required
fingerprinting to better meet the requirements of federal law while also ensuring appropriate consumer protection.
The bill has no fiscal impact on the state, local governments, or the private sector .
The bill has an effective date of July 1, 2023.
This docum ent does not reflect the intent or official position of the bill sponsor or House of Representatives .
STORAGE NAME: h0607.IBS
DATE: 3/7/2023
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
1 S. 20.121(3)(a)2., F.S.
2 S. 560.103(23), 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(12), F.S.
5 S. 560.103(18), 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(2 2), F.S.
11 Definition of “payment instrument”, supra note 3.
12 S. 560.103(24), F.S.
13 S. 560.403, F.S.
14 S. 560.204(2), F.S.
15 S. 560.104, F.S.
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An applicant for an MSB license must submit the following to the OFR:
An application;16
A nonrefundable application fee;17
A copy of the applicant’s written anti-money laundering program required by federal law;18 and
Fingerprints for the following individuals:19
o A person who holds the title of president, chief executive officer, chief financial officer,
chief operations officer, chief legal officer, or compliance officer for a money services
business.20
o A person who holds any of the officer positions named in the money services business’s
governing documents.21
o A person who holds any position named by the money services business’s liability
insurance coverage for directors and officers, if the business has such coverage. 22
o A director of the money services business’s board of directors.23
o A person who directs the affairs of a money services business or who participates in, or
has authority to participate in, the major policy making functions of a money services
business, regardless of whether the person has an official title or receives a salary or
other compensation.24
o For a money services business 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.25
o For a money services business 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.26
o For a money services business 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.27
Fingerprints are not required if the applicant is a publicly traded corporation. 28
If fingerprints are required, the fingerprints must be submitted for live-scan processing.29 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.30 The fingerprints may be submitted
through a third-party vendor authorized by FDLE to provide live-scan fingerprinting.31 FDLE must
conduct the state criminal history background check, and a federal criminal history background check
must be conducted through the FBI.32
16 S. 560.141(1)(a), F.S.
17 Ss. 560.141(1)(b) and 560.143, F.S.
18 S. 560.141(d), F.S.
19 Ss. 560.141(c) and 560.127, F.S.
20 S. 560.103(10)(a), F.S.
21 S. 560.103(10)(b), F.S.
22 S. 560.103(10)(c), F.S.
23 S. 560.103(10)(d), F.S.
24 S. 560.103(10)(e), F.S.
25 S. 560.103(10)(f), F.S.
26 S. 560.103(10)(g), F.S
27 S. 560.103(10)(h), F.S
28 S. 560.141(1)(c)6., F.S.
29 S. 560.141(1)(c), F.S.
30 Florida Live Scan,
https://livescanflorida.com/#:~:text=LiveScan%20is%20a% 20device%20t hat,for%20a%20fingerprint%20background%20c
heck. (last visited Feb. 27, 2023).
31 S. 560.141(1)(c)1., F.S.
32 S. 560.141(1)(c)2., F.S.
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The costs of fingerprint processing, including the cost of retaining the fingerprints, must be borne by the
person subject to the background check.33 The OFR must review the results of the state and federal
criminal history background checks and determine whether the applicant meets licensure
requirements.34
An MSB license must be renewed every two years.35
Once licensed, an MSB is required to report any change in control persons.36 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.37 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.38 A change of control application must be accompanied by the payment of an
initial licensing fee39 and a fee per branch or authorized vendor 40, up to a maximum of $20,000.41
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 data with officials of state and local governmental agencies for
licensing and employment purposes.42 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 the FBI’s CHRI data to state and local governments for non-criminal justice licensing
and employment purposes.43 The FBI, with the assistance of the United States Department of Justice,
has determined the parameters of Pub. L. 92-544.44 The criteria for granting access to the FBI’s CHRI
data are as follows:
The state’s statute requiring fingerprinting must exist as a result of a legislative enactment;
It must require the fingerprinting of applicants who are to be subjected to a national criminal
history background check;
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;
It must identify the specific category(ies) of licensees/employees falling within its purview,
thereby avoiding over breadth;
It must not be against public policy; and
It may not authorize receipt of the CHRI data by a private entity.
Access to the FBI’s CHRI data is authorized for fingerprints pursuant to ch. 560, F.S. However, in order
to gain access to CHRI data for applicants to the recently created Financial Technology Sandbox under
s. 559.952, F.S., created in the 2020 legislative session, 45 FDLE sent correspondence to the FBI’s
33 S. 560.141(1)(c)4., F.S.
34 S. 560.141(1)(c)5., F.S.
35 Ss. 560.141(2) and 560.142, F.S.
36 S. 560.126(3), F.S.
37 S. 560.126(3)(a), F.S.; r. 69v-560.201(4), F.A.C.
38 S. 560.126(3)(c), F.S.; r. 69v-560.201(6), F.A.C.
39 Fees are determined by whether the MSB is licensed under Part II or Part III of Chapter 560. Initial licensing fees under
Part II licenses require a $375 license application fee per § 560.143(1)(a). Part III licenses require a $188 license
application fee per § 560.143(b).
40 Both the per branch fee and the authorized vendor fee are $38. § 560.143(1)(c); § 560.143(1)(d).
41 Ss. 560.126(3) and 560.143(1), F.S.
42 20 C.F.R. § 20.33.
43 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 Feb. 27, 2023).
44 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).
45 Ch. 2020-161, Laws of Fla.
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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 data
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.46 In 2022, the Legislature passed a bill to address this issue by creating the
term “control person” to replace the use of “officer” and “responsible person” throughout ch. 560 F.S. 47
This solution sought to address the concerns of CJILU by narrowing the scope of applicable parties.
However, CJILU found that the revised statute was still too broad.
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.48 However, the CJILU has placed
MSB fingerprinting 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 not allow fingerprinting of additional
categories of applicants (i.e., those applying under the Financial Technology Sandbox) during this
grace period.49
Effect of the Bill
The bill amends the term “control person” to identify the specific categories of licensees or employees
falling within the purview of the statute.
The bill requires the following MSB-related “control persons” to be fingerprinted for the background
check:
A person who holds any of the officer, manager, or managing member positions named in the
money services business’s governing documents. 50
A director of the money service’s business’s board of directors.
A person with a 25% or greater transferable interest in a money services business that is either
a corporation or foreign corporation.51
A person with a 25% or greater transferable interest in a money services business that is either
a limited partnership, limited liability limited partnership, foreign limited partnership, or foreign
limited liability limited partnership.52
A person with a 25% or greater transferable interest in a money services business that is either
a limited liability company or a foreign limited liability company. 53
The bill provides an effective date of July 1, 2023.
46 Email from Heather R. Postlethwait, supra note 44.
47 Chapter 2022-135, Laws of Fla.
48 Id.
49 Id.
50 Governing documents is defined as including bylaws, articles of incorporation or organization, partnership agreements,
shareholder agreements, and management or operating agreements
51 As defined in s. 607.01401
52 As defined in s. 620.1102
53 As defined in s. 605.0102
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DATE: 3/7/2023
B. SECTION DIRECTORY:
Section 1. Amends s. 560.103, F.S., relating to definitions.
Section 2. Provides an effective date of July 1, 2023.
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:
None provided by the bill.
C. DRAFTING ISSUES OR OTHER COMMENTS:
None.
IV. AMENDMENTS/COMMITTEE SUBSTITUTE CHANGES
STORAGE NAME: h0607.IBS PAGE: 6
DATE: 3/7/2023
F L O R I 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 607 2023
1 A bill to be entitled
2 An act relating to money services businesses; amending
3 s. 560.103, F.S.; revising the definition of the term
4 "control person" for purposes of ch. 560, F.S.;
5 defining the term "governing documents"; providing an
6 effective date.
7
8 Be It Enacted by the Legislature of the State of Florida:
9
10 Section 1. Subsection (10) of section 560.103, Florida
11 Statutes, is amended to read:
12 560.103 Definitions.—As used in this chapter, the term:
13 (10) "Control person" means any of the following:
14 (a) A person who holds the title of president, chief
15 executive officer, chief financial officer, chief operations
16 officer, chief legal officer, or compliance officer for a money
17 services business.
18 (b) A person who holds any of the officer, manager, or
19 managing member positions named in the money services business's
20 governing documents. As used in this paragraph, the term
21 "governing documents" includes bylaws, articles of incorporation
22 or organization, partnership agreements, shareholder agreements,
23 and management or operating agreements.
24 (c) A person who holds any position named by the money
25 services business's liability insurance coverage for directors
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CODING: Words stricken are deletions; words underlined are additions.
hb0607-00
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 607 2023
26 and officers, if the business has such coverage.
27 (d) A director of the money services business's board of
28 directors.
29 (e) A person who directs the affairs of a money services
30 business or who participates in, or has authority to participate
31 in, the major policymaking functions of a money services
32 business, regardless of whether the person has an official title
33 or receives a salary or other compensation.
34 (d)(f) For a money services business that is a corporation
35 or a foreign corporation, as those terms are defined in s.
36 607.01401, each person who is a 25 percent or greater interest
37 holder as that term is defined in s. 607.01401(44)(a) , all
38 shareholders that, directly or indirectly, own 25 percent or
39 more or that have the power to vote 25 percent or more of a
40 class of voting securities.
41 (e)(g) For a money services business that is a limited
42 partnership, limited liability limited partnership, foreign
43 limited partnership, or foreign limited liability limited
44 partnership as those terms are defined in s. 620.1102, each
45 person who has a 25 percent or greater transferable interest as
46 that term is defined in s. 620.1102 all general partners, and
47 those limited or special partners that have contributed 25
48 percent or more or that have the right to receive upon
49 dissolution 25 percent or more of the partnership's capital.
50 (f)(h) For a money services business that is a limited
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F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
HB 607 2023
51 liability company or a foreign limited liability company, as
52 those terms are defined in s. 605.0102, each person who is a 25
53 percent or greater interest holder as that term is defined in s.
54 605.0102(31)(f), all managers, and those members that have
55 contributed 25 percent or more or that have the right to receive
56 upon dissolution 25 percent or more of the limited liability
57 company's capital.
58 Section 2. This act shall take effect July 1, 2023.
Page 3 of 3
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hb0607-00
HB 881
HOUSE OF REPRESENTATIVES STAFF ANALYSIS
BILL #: HB 881 My Safe Florida Home Program
SPONSOR(S): LaMarca
TIED BILLS: IDEN./SIM. BILLS: SB 748
REFERENCE ACTION ANALYST STAFF DIRECTOR or
BUDGET/POLICY CHIEF
1) Insurance & Banking Subcommittee Fortenberry Lloyd
2) State Administration & Technology
Appropriations Subcommittee
3) Commerce Committee
SUMMARY ANALYSIS
The My Safe Florida Home (MSFH) Program was created in 2006, within the Department of Financial Services
(DFS), with the intent that the Program provide inspectors to perform inspections of site-built, single-family,
residential properties (inspections), and mitigation grants (grants) to eligible applicants. The purpose of the
inspections is to determine: what mitigation measures are needed; what premium discounts might be available;
and what improvements to existing residential properties were needed to reduce the properties’ susceptibility
to hurricane damage.
The purpose of the grants is to retrofit single-family homes to make them less vulnerable to hurricane damage.
To be eligible for a grant, certain criteria had to be met, including having a homestead exemption and a
maximum insured value of $300,000. Improvements that could be made using grant funds included opening
protection, exterior doors, including garage doors, and secondary water barrier for roofs. The MSFH received
$250 million in appropriations for the Fiscal Year 2006-2007, but was not funded again until 2022.
During the 2022D Session, the Legislature renewed the funding for the MSFH Program by appropriating $150
million in nonrecurring funds from General Revenue for the 2022-2023 fiscal year. Between May 2022 and
February 2023, 16,724 mitigation inspections were completed and 2,979 grant applications were approved.
The Legislature also changed the eligibility criteria for grants to allow for homeowners with homes valued up to
$500,000.
This bill makes various changes to the statutory framework for the MSFH Program, including changes to
inspection and grant eligibility requirements, program management, and technical, conforming, and statutory
structure. The bill requires that eligible properties be homesteaded. The bill also allows owners of townhomes
to be eligible for inspections and grants.
The bill removes the designation of a specific portion of the grant funds for low-income recipients, but
increases the overall grant award for low-income recipients from $5,000, to $10,000. The bill makes the MSFH
Program statewide instead of limited to homes in the wind-borne debris region. The bill also eliminates two
types of home improvements from the list of those home improvements for which MSFH Program grant funds
may be used because they are no longer recognized by the Florida Building Code.
The bill has no impact on local or state government revenues or expenditures. DFS has filed an amended
legislative budget request for MSFH Program funding needs. It will likely have a positive direct economic
impact on the private sector.
The bill is effective on July 1, 2023.
This docum ent does not reflect the intent or official position of the bill sponsor or House of Representatives .
STORAGE NAME: h0881.IBS
DATE: 3/7/2023
FULL ANALYSIS
I. SUBSTANTIVE ANALYSIS
A. EFFECT OF PROPOSED CHANGES:
Background
In 2006, the Legislature created the My Safe Florida Home (MSFH) Program within the Department of
Financial Services (DFS), with the intent that the Program provide trained and certified inspectors to
perform inspections for owners of site-built, single-family, residential properties (mitigation inspections),
and grants to eligible applicants, subject to funding availability. 1 The MSFH Program was to “develop
and implement a comprehensive and coordinated approach for hurricane damage mitigation.” 2 The
MSFH program allowed DFS to undertake a public outreach and advertising campaign to inform
consumers of the availability, and benefits, of the mitigation inspections and grants.3 It required the
development of brochures for distribution to general contractors, roofing contractors, and real estate
brokers and sales associates to explain the benefits of residential hurricane damage mitigation to
homeowners.4
Hurricane Mitigation Inspections
The purpose of the mitigation inspections was to determine:
What mitigation measures were needed;
What insurance premium discounts might have been available; and
What improvements to existing residential properties were needed to reduce the properties’
susceptibility to hurricane damage.5
The mitigation inspections were to include, at a minimum:
A report that summarized the results and identified recommended improvements the
homeowner could take to mitigate hurricane damage.
A range of cost estimates regarding the recommended mitigation improvements.
Insurer-specific information regarding premium discounts correlated to current and
recommended hurricane mitigation improvements.6
DFS was required to maintain a list of hurricane mitigation inspectors who were authorized to conduct
the mitigation inspections for the MSFH Program.7 DFS entered contracts to provide mitigation
inspections with wind certification entities who, at a minimum used hurricane mitigation inspectors who:
Were certified building inspectors;
Were licensed as general or residential contractors;
Were licensed and professional engineers and had passed the appropriate equivalency test of
the building code training program;
Were licensed as a professional architect; or
Had at least two years of experience in residential construction or residential building inspection
and had received specialized training in hurricane mitigation procedures. 8
Mitigation Grants
The purpose of the mitigation grants was to retrofit single-family homes to make them less vulnerable
to hurricane damage.9 To be eligible for a grant, the following criteria must have been met:
1 S. 215.5586, F.S.
2 Id.
3 S. 215.5586(3), F.S.
4 S. 215.5586(7), F.S.
5 S. 215.5586(1)(a), F.S.
6 Id.
7 S. 215.55186(6), F.S.
8 S. 215.5586(1)(b), F.S.
9 S. 215.5586(2), F.S.
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DATE: 3/7/2023
The homeowner must have had a homestead exemption on the home to be retrofitted;
The home must have had an insured value of $300,000 or less, unless the homeowner was
classified as a low-income person;
The home must have undergone an acceptable hurricane mitigation inspection after May 1,
2007;
The home must have been located in the “wind-borne debris region” as defined in the
International Building Code; and
The building permit application for initial construction of the home must have been made before
March 1, 2002.10
In addition, the homeowner had to match the grant award on a dollar-for-dollar basis up to $10,000, for
the actual cost of the mitigation project, and the state’s contribution could not exceed $5,000. 11 Low-
income homeowners were eligible for grants of up to $5,000, and were not required to provide a
matching amount to receive a grant.12 Matching fund grants were also available to local governments
and nonprofit entities for projects to reduce hurricane damages to single-family homes.13
Grants could be used on previously-inspected existing structures or on rebuilds.14 If recommended by a
hurricane mitigation inspection, grants could be used for the following improvements:
Opening protection.
Upgrading exterior doors, including garage doors.
Bracing gable ends.
Reinforcing roof-to-wall connections.
Improving the strength of roof-deck attachments.
Upgrading roof coverings from code to code plus.
Installing secondary water barrier for roofs.15
DFS was required to issue an annual report on the activities of the MSFH Program that accounted for
the use of any appropriated state funds, the number of inspections requested and performed, the
number of grant applications received, and the number and value of grants approved. 16
The MSFH Program was appropriated $250 million in Fiscal Year 2006-07.17 As of May 2009,
approximately $93 million in MSFH grants were allocated to 32,000 homes, and approximately 400,000
homes received a MSFH home inspection.18 DFS requested that Risk Management Solutions (RMS),
conduct an impact analysis of the MSFH program, and RMS released a report of the impact analysis on
May 14, 2009 (report).19 In the report, RMS concluded that the MSFH grants were beneficial to the
State of Florida, individual homeowners, and the insurance industry. 20 RMS indicated that the predicted
reduction in loss as a result of the grant projects completed far exceeded the grant money spent. 21
While the MSFH Program was never repealed from law, additional funding was not provided until May
2022.
10 Id.
11
Id.
12 Id.
13 Id.
14 Rebuilds were defined as site-built, single-family dwellings under construction to replace homes that were destroyed or significantly
damaged by hurricanes and deemed unlivable by a regulatory authority. S. 215.5586(2)(e), F.S.
15 S. 215.5586(2)(e), F.S.
16 S. 215.5586(10), F.S.
17 Risk Management Solutions, Analyzing the Effects of the My Safe Florida Home Program on Florida Insurance Risk , May 14, 2009,
https://www.ipcc.ch/apps/njlite/srex/njlite_download.php?id=5036 (last visited Mar. 2, 2023).
18 Id.
19 Id.
20 Id.
21 Id.
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DATE: 3/7/2023
2022 Renewal of the MSFH Program
During the 2022D Special Session, the Legislature passed a property insurance bill (SB 2-D), in which
it renewed the funding for the MSFH Program by appropriating $150 million in nonrecurring funds from
General Revenue (GR) to DFS for the Program for the 2022-2023 fiscal year. The funds appropriated
were allocated as follows:
$115 million for mitigation grants.
$25 million for hurricane mitigation inspections.
$4 million for education and consumer awareness.
$1 million for public outreach for contractors and estate brokers and sales associates.
$5 million for administrative costs.
SB 2-D reappropriated any unexpended balance of funds from the appropriation remaining on June 30,
2023, to DFS for the 2023-2024 fiscal year to be used for the MSFH Program. The appropriation will
expire on October 1, 2024. SB 2-D gave DFS the authority to adopt emergency rules to implement the
MSFH Program.
SB 2-D made additional modifications to the MSFH Program. It required that an application for a
mitigation grant include a provision that requires an applicant to make his or her home available for
inspection once a mitigation project is completed. The bill changed the monetary limits for eligibility for
mitigation grants so that homes with an insured value of $500,000, or less, qualify for the program.
SB 2-D required that homes that receive mitigation grants have undergone home mitigation inspections
after July 1, 2008, and have received permits for initial construction before January 1, 2008. The
homeowner must also match grant funds on the basis of $1 from the homeowner for every $2 provided
by the state up to a maximum state contribution of $10,000 towards the actual cost of the mitigation
project undertaken on the eligible home.
The bill enhanced the reporting requirements for DFS under the MSFH Program by requiring that the
report include the following received by homeowners from insurers as a result of the mitigation funded
by the program:
The average annual amount of insurance premium discounts; and
The total annual amount of insurance premium discounts.
2022 MSFH Program Implementation
Following the passage of SB 2-D, DFS procured a vendor to administer the MSFH Program, qualified
inspectors to conduct mitigation inspections, and qualified contractors who agreed to provide mitigation
repairs and retrofitting under the grant portion of the Program.22 DFS compiled a list of approved
vendors that homeowners participating in the MSFH Program may choose for inspections and
mitigation work.23
On November 18, 2022, a web-based application for homeowners to request mitigation inspections and
grant funds went live.24 Between May 26, 2022 and February 28, 2023, 16,724 mitigation inspections
were completed and 2,979 grant applications were approved.25
Inspectors completing mitigation inspections under the MSFH Program must complete the Uniform
Mitigation Verification Inspection Form (Inspection Form), as revised by the Office of Insurance
Regulation on January 12, 2023.26 The mitigation inspection report provided to the homeowner includes
the completed Inspection Form, as well as the information already required by statute,27 including:
22 Florida Department of Financial Services, Agency Analysis of 2023 House Bill 881, p. 1 (Mar. 1, 2023).
23 Id.
24 Id.
25 Id.
26 Id.
27S. 215.5586(1)(a), F.S.
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A summary of the results of the mitigation inspection identifying recommended improvements a
homeowner may undertake;
A range of cost estimates regarding the recommended improvements; and
Estimated property insurance premium discounts based on the mitigation measures the
homeowner has completed.28
Effect of the bill
The bill makes various changes to the statutory framework for the MSFH Program, including inspection
and grant eligibility requirement changes; program management changes; and technical, conforming,
and statutory-restructuring changes.
Inspection and Grant Eligibility Requirements
The bill limits single-family home eligibility for mitigation inspections to homesteaded properties.29 The
bill allows owners of townhomes to apply for mitigation inspections and grants by including townhomes
in the relevant definition of single-family, residential property.30
The bill removes the designation of a specific portion of the grant funds for low-income recipients
without reducing funding, but increases the overall grant award for low-income recipients from $5,000
to $10,000. The bill broadens geographic eligibility to include otherwise in eligible homes outside the
wind-borne debris region. This makes the program statewide.31
The bill removes outdated elements from the home improvements list for which MSFH Program grant
funds may be used.32 Those home improvements are no longer recognized by the Florida Building
Code.
Project Management
The bill requires home inspectors to be licensed, in addition to certified, to conform with other statutory
chapters. The bill revises home inspector training/experience requirements. The bill gives DFS the
authority and a direction to establish objective, reasonable criteria for prioritizing inspection
applications. The bill removes the requirement that the Legislative Budget Commission (LBC) review
and approve all MSFH Program contracts valued at $1 million or more. 33
Technical, Conforming, and Statutory Restructuring Changes
The bill clarifies that hurricane mitigation inspectors conducting mitigation inspections for the MSFH
Program must undergo a level II background check, which is a fingerprint-based background check. It
consolidates statutory language related to education and consumer awareness, and public outreach for
contractors, real estate brokers, and sales associates. It also makes other technical and conforming
changes.
B. SECTION DIRECTORY:
Section 1. Amends s. 215.5586, F.S., relating to My Safe Florida Home Program.
28 Department of Financial Services, supra note 26, at 2.
29 This requirement was already in place for the grant portion of the MSFH Program under S. 215.5586(2), F.S.
30
Under s. 481.203(16), F.S., a townhouse is defined as a single-family dwelling unit not exceeding three stories in height which is
constructed in a series or group of attached units with property lines separating such units.
31 See Fiscal Comments.
32 These elements are bracing of gable ends and upgrading of roof coverings from code to code plus.
33 The LBC is composed of seven members of the House of Representatives and seven members of the Senate. It meets at least
quarterly throughout the year and its powers and duties include:
Reviewing and approving or disapproving budget amendments recommended by the Governor or Chief Justice of the Florida
Supreme Court.
Developing the long-range financial outlook described in s. 19, Art. III of the State Constitu tion.
Exercising all other powers and performing all other duties prescribed by the Legislature. S. 11.910(6), F.S.
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Section 2. Reenacts s. 215.5588, F.S., relating to Florida Disaster Recovery.
Section 3. Provides an effective date of July 1, 2023.
II. FISCAL ANALYSIS & ECONOMIC IMPACT STATEMENT
A. FISCAL IMPACT ON STATE GOVERNMENT:
1. Revenues:
None.
2. Expenditures:
See Fiscal Comments.
B. FISCAL IMPACT ON LOCAL GOVERNMENTS:
1. Revenues:
None.
2. Expenditures:
None.
C. DIRECT ECONOMIC IMPACT ON PRIVATE SECTOR:
To the extent that homes that participate in the MSFH Program receive mitigation credits under their
insurance policies and are less exposed to risk as a result of mitigation retrofitting using grant funds,
the MSFH Program will have a positive direct economic impact on homeowners. Hurricane mitigation
contractors may also see an increase in project activity.
D. FISCAL COMMENTS:
The bill increases the number of homeowners that are eligible for the MSFH Program, but does not
include an appropriation beyond the $150 million in nonrecurring funds from GR to DFS appropriated in
May 2022. Without additional funds being appropriated for the MSFH Program, the expanded eligibility
may cause funds to run out earlier than originally expected. However, DFS has submitted an amended
legislative budget request to ask Legislature for an additional $100 million for the mitigation grants
portion of the MSFH Program.34 DFS anticipates that the $115 million allocated for the mitigation grants
will be exhausted within the 2022-2023 fiscal year without the additional funding.35
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:
34 DFS Legislative Budget Request, Expenditures b y Issue and Appropriation Category,
http://floridafiscalportal.state.fl.us/Document.aspx?ID=25277&DocType=PDF (last visited Mar. 2, 2023).
35Id.
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None.
B. RULE-MAKING AUTHORITY:
DFS has existing rulemaking authority regarding the MSFH Program. However, the bill provides DFS
with additional authority and a direction to establish objective, reasonable criteria for prioritizing
inspection applications. It is unclear if DFS is given sufficient guidelines to implement this authority.
C. DRAFTING ISSUES OR OTHER COMMENTS:
None.
IV. AMENDMENTS/COMMITTEE SUBSTITUTE CHANGES
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F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
HB 881 2023
1 A bill to be entitled
2 An act relating to the My Safe Florida Home Program;
3 amending s. 215.5586, F.S.; providing that licensed,
4 rather than certified, inspectors are to provide
5 hurricane mitigation inspections on site-built,
6 single-family, residential properties that have been
7 granted a homestead exemption; specifying that
8 townhouses are included in such properties; revising
9 the information provided to homeowners as part of a
10 hurricane mitigation inspection; revising the
11 hurricane mitigation inspectors that may be selected
12 by the Department of Financial Services to provide
13 hurricane mitigation inspections; deleting a provision
14 requiring the department to implement a certain
15 quality assurance program; authorizing the department
16 to establish specified criteria for prioritizing
17 inspection applications; revising the criteria for
18 mitigation grant eligibility for homeowners; deleting
19 a provision that subjects mitigation projects to
20 random reinspection for a specified timeframe;
21 revising the improvements for which mitigation grants
22 may be used; revising the amount low-income homeowners
23 may receive from the department under the grant
24 program; deleting a provision authorizing low-income
25 homeowners to use grant funds for specified purposes;
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26 deleting a requirement that the department establis h
27 specified criteria for prioritizing grant
28 applications; authorizing, rather than requiring, the
29 program to develop and distribute certain brochures to
30 specified persons; deleting a provision requiring
31 certain contracts entered into by the department to b e
32 reviewed and approved by the Legislative Budget
33 Commission; requiring the department to develop a
34 certain quality assurance and reinspection program;
35 revising the contents of the annual report the
36 department is required to deliver to the Legislature;
37 conforming provisions to changes made by the act;
38 making technical changes; reenacting s. 215.5588(3),
39 F.S., relating to the Florida Disaster Recovery
40 Program, to incorporate the amendments made to s.
41 215.5586, F.S., in a reference thereto; providing an
42 effective date.
43
44 Be It Enacted by the Legislature of the State of Florida:
45
46 Section 1. Section 215.5586, Florida Statutes, is amended
47 to read:
48 215.5586 My Safe Florida Home Program.—There is
49 established within the Department of Financial Services th e My
50 Safe Florida Home Program. The department shall provide fiscal
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51 accountability, contract management, and strategic leadership
52 for the program, consistent with this section. This section does
53 not create an entitlement for property owners or obligate the
54 state in any way to fund the inspection or retrofitting of
55 residential property in this state. Implementation of this
56 program is subject to annual legislative appropriations. It is
57 the intent of the Legislature that the My Safe Florida Home
58 Program provide licensed trained and certified inspectors to
59 perform inspections for owners of site-built, single-family,
60 residential properties and grants to eligible applicants as
61 funding allows. The program shall develop and implement a
62 comprehensive and coordinated approach for hurricane damage
63 mitigation that may include the following:
64 (1) HURRICANE MITIGATION INSPECTIONS.—
65 (a) Licensed Certified inspectors are to provide home
66 home-retrofit inspections of site-built, single-family,
67 residential properties for which a homestead exemption has been
68 granted, property may be offered to determine what mitigation
69 measures are needed, what insurance premium discounts may be
70 available, and what improvements to existing residential
71 properties are needed to reduce the property's vulnerability to
72 hurricane damage. The term "single-family, residential property"
73 includes those properties defined as townhouses in s. 481.203.
74 (b) The Department of Financial Services shall contract
75 with wind certification entities to provide hurricane mitigation
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76 inspections. The inspections provided to homeowners, at a
77 minimum, must include:
78 1. A home inspection and report that summarizes the
79 results and identifies recommended improvements a homeowner may
80 take to mitigate hurricane damage.
81 2. A range of cost estimates regarding the recommended
82 mitigation improvements.
83 3. Insurer-specific Information regarding estimated
84 premium discounts, correlated to the current mitigation features
85 and the recommended mitigation improvements identified by th e
86 inspection.
87 (c)(b) To qualify for selection by the department as a
88 wind certification entity to provide hurricane mitigation
89 inspections, the entity must shall, at a minimum, meet the
90 following requirements:
91 1. Use hurricane mitigation inspectors who are licensed or
92 certified as:
93 a. Are certified as A building inspector under s. 468.607;
94 b. Are licensed as A general, building, or residential
95 contractor under s. 489.111;
96 c. Are licensed as A professional engineer under s.
97 471.015 and who have passed the appropriate equivalency test of
98 the building code training program as required by s. 553.841 ;
99 d. Are licensed as A professional architect under s.
100 481.213; or
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101 e. A home inspector under s. 468.8314 and who have
102 completed at least 3 hours of hurricane mitigation training
103 approved by the Construction Industry Licensing Board, which
104 training must include hurricane mitigation techniques and
105 compliance with the uniform mitigation verification form and
106 completion of a proficiency exam Have at least 2 years of
107 experience in residential construction or residential building
108 inspection and have received specialized training in hurricane
109 mitigation procedures. Such training may be provided by a class
110 offered online or in person.
111 2. Use hurricane mitigation inspectors who also:
112 a. have undergone drug testing and a level II background
113 screening. The department may conduct criminal record checks of
114 inspectors used by wind certification entities. Inspectors must
115 submit a set of the fingerprints to the department for state and
116 national criminal history checks and must pay the fingerprint
117 processing fee set forth in s. 624.501. The fingerprints must
118 shall be sent by the department to the Department of Law
119 Enforcement and forwarded to the Federal Bureau of Investigation
120 for processing. The results must shall be returned to the
121 department for screening. The fingerprints must shall be taken
122 by a law enforcement agency, designated examination center, or
123 other department-approved entity; and
124 b. Have been certified, in a manner satisfactory to the
125 department, to conduct the inspections.
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126 3. Provide a quality assurance program including a
127 reinspection component.
128 (c) The department shall implement a quality assurance
129 program that includes a statistically valid number of
130 reinspections.
131 (d) An application for an inspection must contain a signed
132 or electronically verified statement made under penalty of
133 perjury that the applicant has submitted only a single
134 application for that home.
135 (e) The owner of a site-built, single-family, residential
136 property for which a homestead exemption has been granted may
137 apply for and receive an inspection without also applying for a
138 grant pursuant to subsection (2) and without meeting the
139 requirements of paragraph (2)(a).
140 (f) The department may establish objective, reasonable
141 criteria for prioritizing inspection applications, consistent
142 with the requirements of this section.
143 (2) MITIGATION GRANTS.—Financial grants shall be used to
144 encourage single-family, site-built, owner-occupied, residential
145 property owners to retrofit their properties to make them less
146 vulnerable to hurricane damage.
147 (a) For a homeowner, including an owner of a townhouse as
148 defined in s. 481.203, to be eligible for a grant, the following
149 criteria must be met:
150 1. The homeowner must have been granted a homestead
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151 exemption on the home under chapter 196.
152 2. The home must be a dwelling with an insured value of
153 $500,000 or less. Homeowners who are low-income persons, as
154 defined in s. 420.0004(11), are exempt from this requirement.
155 3. The home must undergo have undergone an acceptable
156 hurricane mitigation inspection as provided in subsection (1)
157 after July 1, 2008.
158 4. The home must be located in the "wind-borne debris
159 region" as that term is defined in the Florida Building Code.
160 5. The building permit application for initial
161 construction of the home must have been made before January 1,
162 2008.
163 5.6. The homeowner must agree to make his or her home
164 available for inspection once a mitigation project is completed.
165
166 An application for a grant must contain a signed or
167 electronically verified statement made under penalty of perjury
168 that the applicant has submitted only a single application and
169 must have attached documents demonstrating the applicant meets
170 the requirements of this paragraph.
171 (b) All grants must be matched on the basis of $1 provided
172 by the applicant for $2 provided by the state up to a maximum
173 state contribution of $10,000 toward the actual cost of the
174 mitigation project.
175 (c) The program shall create a process in which
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176 contractors agree to participate and homeowners select from a
177 list of participating contractors. All mitigation must be based
178 upon the securing of all required local permits and inspections
179 and must be performed by properly licensed contractors.
180 Mitigation projects are subject to random reinspection of up to
181 at least 5 percent of all projects. Hurricane mitigation
182 inspectors qualifying for the program may also participate as
183 mitigation contractors as long as the inspectors meet the
184 department's qualifications and certification requirements for
185 mitigation contractors.
186 (d) Matching fund grants shall also be made available to
187 local governments and nonprofit entities for projects that will
188 reduce hurricane damage to single-family, site-built, owner-
189 occupied, residential property. The department shall liberally
190 construe those requirements in favor of availing the state of
191 the opportunity to leverage funding for the My Safe Florida Home
192 Program with other sources of funding.
193 (e) When recommended by a hurricane mitigation inspection,
194 grants may be used for the following improvements:
195 1. Opening protection.
196 2. Exterior doors, including garage doors.
197 3. Brace gable ends.
198 4. Reinforcing roof-to-wall connections.
199 4.5. Improving the strength of roof-deck attachments.
200 6. Upgrading roof covering from code to code plus.
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201 5.7. Secondary water barrier for roof.
202
203 The department may require that improvements be made to all
204 openings, including exterior doors and garage doors, as a
205 condition of reimbursing a homeowner approved for a grant. The
206 department may adopt, by rule, the maximum grant allowances for
207 any improvement allowable under this paragraph.
208 (f) Grants may be used on a previously inspected existing
209 structure or on a rebuild. A rebuild is defined as a site-built,
210 single-family dwelling under construction to replace a home that
211 was destroyed or significantly damaged by a hurricane and deemed
212 unlivable by a regulatory authority. The homeowner must be a
213 low-income homeowner as defined in paragraph (g), must have had
214 a homestead exemption for that home before prior to the
215 hurricane, and must be intending to rebuild the home as that
216 homeowner's homestead.
217 (g) Low-income homeowners, as defined in s. 420.0004(11),
218 who otherwise meet the requirements of paragraphs (a), (c), (e),
219 and (f) are eligible for a grant of up to $10,000 $5,000 and are
220 not required to provide a matching amount to receive the grant.
221 Additionally, for low-income homeowners, grant funding may be
222 used for repair to existing structures leading to any of the
223 mitigation improvements provided in paragraph (e), limited to 20
224 percent of the grant value. The program may accept a
225 certification directly from a low-income homeowner that the
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226 homeowner meets the requirements of s. 420.0004(11) if the
227 homeowner provides such certification in a signed or
228 electronically verified statement made under penalty of perjury.
229 (h) The department shall establish objective, reasonable
230 criteria for prioritizing grant applications, consistent with
231 the requirements of this section.
232 (i) The department shall develop a process that ensures
233 the most efficient means to collect and verify grant
234 applications to determine eligibility and may direct hurricane
235 mitigation inspectors to collect and verify grant application
236 information or use the Internet or other electronic means to
237 collect information and determine eligibility.
238 (3) EDUCATION, AND CONSUMER AWARENESS, AND OUTREACH.—
239 (a) The department may undertake a statewide multimedia
240 public outreach and advertising campaign to inform consumers of
241 the availability and benefits of hurricane inspections and of
242 the safety and financial benefits of residential hurricane
243 damage mitigation. The department may seek out and use local,
244 state, federal, and private funds to support the campaign.
245 (b) The program may develop brochures for distribution to
246 general contractors, roofing contractors, and real estate
247 brokers and sales associates who are licensed under part I of
248 chapter 475 which provide information on the benefits to
249 homeowners of residential hurricane damage mitigation.
250 Contractors are encouraged to distribute the brochures to
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251 homeowners at the first meeting with a homeowner who is
252 considering contracting for home or roof repair or contr acting
253 for the construction of a new home. Real estate brokers and
254 sales associates are encouraged to distribute the brochure to
255 clients before the purchase of a home. The brochures may be made
256 available electronically.
257 (4) FUNDING.—The department may seek out and leverage
258 local, state, federal, or private funds to enhance the financial
259 resources of the program.
260 (5) RULES.—The Department of Financial Services shall
261 adopt rules pursuant to ss. 120.536(1) and 120.54 to govern the
262 program; implement the provisions of this section; including
263 rules governing hurricane mitigation inspections and grants,
264 mitigation contractors, and training of inspectors and
265 contractors; and carry out the duties of the department under
266 this section.
267 (6) HURRICANE MITIGATION INSPECTOR LIST.—The department
268 shall develop and maintain as a public record a current list of
269 hurricane mitigation inspectors authorized to conduct hurricane
270 mitigation inspections pursuant to this section.
271 (7) PUBLIC OUTREACH FOR CONTRACTORS AND REAL ESTATE
272 BROKERS AND SALES ASSOCIATES.—The program shall develop
273 brochures for distribution to general contractors, roofing
274 contractors, and real estate brokers and sales associates
275 licensed under part I of chapter 475 explaining the benefits to
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276 homeowners of residential hurricane damage mitigation. The
277 program shall encourage contractors to distribute the brochures
278 to homeowners at the first meeting with a homeowner who is
279 considering contracting for home or roof repairs or contracting
280 for the construction of a new home. The program shall encourage
281 real estate brokers and sales associates licensed under part I
282 of chapter 475 to distribute the brochures to clients prior to
283 the purchase of a home. The brochures may be made available
284 electronically.
285 (8) CONTRACT MANAGEMENT.—
286 (a) The department may contract with third parties for
287 grants management, inspection services, contractor services for
288 low-income homeowners, information technology, educational
289 outreach, and auditing services. Such contracts are shall be
290 considered direct costs of the program and are shall not be
291 subject to administrative cost limits, but contracts valued at
292 $1 million or more shall be subject to review and approval by
293 the Legislative Budget Commission. The department shall contract
294 with providers that have a demonstrated record of successful
295 business operations in areas directly related to the services to
296 be provided and shall ensure the highest accountability for use
297 of state funds, consistent with this section.
298 (b) The department shall implement a quality assurance and
299 reinspection program that determines whether initial inspections
300 and home improvements are completed in a manner consistent with
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301 the intent of the program. The department may use valid random
302 sampling in order to perform the quality assurance portion of
303 the program.
304 (8)(9) INTENT.—It is the intent of the Legislature that
305 grants made to residential property owners under this section
306 shall be considered disaster-relief assistance within the
307 meaning of s. 139 of the Internal Revenue Code of 1986, as
308 amended.
309 (9)(10) REPORTS.—The department shall make an annual
310 report on the activities of the program that shall account for
311 the use of state funds and indicate the number of inspections
312 requested, the number of inspections performed, the number of
313 grant applications received, the number and value of grants
314 approved, and the estimated average annual amount of insurance
315 premium discounts and total estimated annual amount of insurance
316 premium discounts homeowners received from insurers as a result
317 of mitigation funded through the program. The report must shall
318 be delivered to the President of the Senate and the Speaker of
319 the House of Representatives by February 1 of each year.
320 Section 2. For the purpose of incorporating the amendments
321 made by this act to section 215.5586, Florida Statutes, in a
322 reference thereto, subsection (3) of section 215.5588, Florida
323 Statutes, is reenacted to read:
324 215.5588 Florida Disaster Recovery Program.—
325 (3) Up to 78 percent of these funds may be used to
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326 complement the grants awarded by the Department of Financial
327 Services under s. 215.5586 and fund other eligible disaster-
328 related activities supporting housing rehabilitation, hardening,
329 mitigation, and infrastructure improvements at the request of
330 the local governments in order to assist the State of Florida in
331 better serving low-income homeowners in single-family housing
332 units, including, but not limited to, condominiums. Up to 20
333 percent of the funds may be used to provide inspections and
334 mitigation improvements to multifamily units receiving rental
335 assistance under projects of the United States Department of
336 Housing and Urban Development or the Rural Development Division
337 of the United States Department of Agriculture.
338 Section 3. This act shall take effect July 1, 2023.
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INSURANCE & BANKING SUBCOMMITTEE
HB 881 by Rep. LaMarca
My Safe Florida Home Program
AMENDMENT SUMMARY
Thursday March 9, 2023
Amendment 1 by Rep. LaMarca (Line 72): The amendment:
• Removes a proposed change in eligibility for the program and maintains current law
regarding townhomes,
• Deletes proposed authority for the Department of Financial Services to define and
apply criteria to prioritize inspection applications for funding, and
• Adds the Citizens Property Insurance Corporation to the proposed list of entities that
may receive program brochures for redistribution.
COMMITTEE/SUBCOMMITTEE AMENDMENT
Bill No. HB 881 (2023)
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: Insurance & Banking
2 Subcommittee
3 Representative LaMarca offered the following:
4
5 Amendment (with title amendment)
6 Remove lines 72-249 and insert:
7 hurricane damage.
8 (b) The Department of Financial Services shall contract
9 with wind certification entities to provide hurricane mitigation
10 inspections. The inspections provided to homeowners, at a
11 minimum, must include:
12 1. A home inspection and report that summarizes the
13 results and identifies recommended improvements a homeowner may
14 take to mitigate hurricane damage.
15 2. A range of cost estimates regarding the recommended
16 mitigation improvements.
506423 - h881-line 72.docx
Published On: 3/8/2023 8:59:52 PM
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COMMITTEE/SUBCOMMITTEE AMENDMENT
Bill No. HB 881 (2023)
Amendment No. 1
17 3. Insurer-specific Information regarding estimated
18 premium discounts, correlated to the current mitigation features
19 and the recommended mitigation improvements identified by the
20 inspection.
21 (c)(b) To qualify for selection by the department as a
22 wind certification entity to provide hurricane mitigation
23 inspections, the entity must shall, at a minimum, meet the
24 following requirements:
25 1. Use hurricane mitigation inspectors who are licensed or
26 certified as:
27 a. Are certified as A building inspector under s. 468.607;
28 b. Are licensed as A general, building, or residential
29 contractor under s. 489.111;
30 c. Are licensed as A professional engineer under s.
31 471.015 and who have passed the appropriate equivalency test of
32 the building code training program as required by s. 553.841 ;
33 d. Are licensed as A professional architect under s.
34 481.213; or
35 e. A home inspector under s. 468.8314 and who have completed at
36 least 3 hours of hurricane mitigation training approved by the
37 Construction Industry Licensing Board, which training must
38 include hurricane mitigation techniques and compliance with the
39 uniform mitigation verification form and completion of a
40 proficiency exam Have at least 2 years of experience in
41 residential construction or residential building inspection and
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COMMITTEE/SUBCOMMITTEE AMENDMENT
Bill No. HB 881 (2023)
Amendment No. 1
42 have received specialized training in hurricane mitigation
43 procedures. Such training may be provided by a class offered
44 online or in person.
45 2. Use hurricane mitigation inspectors who also:
46 a. have undergone drug testing and a level II background
47 screening. The department may conduct criminal record checks of
48 inspectors used by wind certification entities. Inspectors must
49 submit a set of the fingerprints to the department for state and
50 national criminal history checks and must pay the f ingerprint
51 processing fee set forth in s. 624.501. The fingerprints must
52 shall be sent by the department to the Department of Law
53 Enforcement and forwarded to the Federal Bureau of Investigation
54 for processing. The results must shall be returned to the
55 department for screening. The fingerprints must shall be taken
56 by a law enforcement agency, designated examination center, or
57 other department-approved entity; and
58 b. Have been certified, in a manner satisfactory to the
59 department, to conduct the inspections.
60 3. Provide a quality assurance program including a
61 reinspection component.
62 (c) The department shall implement a quality assurance
63 program that includes a statistically valid number of
64 reinspections.
65 (d) An application for an inspection must contain a signed
66 or electronically verified statement made under penalty of
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COMMITTEE/SUBCOMMITTEE AMENDMENT
Bill No. HB 881 (2023)
Amendment No. 1
67 perjury that the applicant has submitted only a single
68 application for that home.
69 (e) The owner of a site-built, single-family, residential
70 property for which a homestead exemption has been granted may
71 apply for and receive an inspection without also applying for a
72 grant pursuant to subsection (2) and without meeting the
73 requirements of paragraph (2)(a).
74 (2) MITIGATION GRANTS.—Financial grants shall be used to
75 encourage single-family, site-built, owner-occupied, residential
76 property owners to retrofit their properties to make them less
77 vulnerable to hurricane damage.
78 (a) For a homeowner to be eligible for a grant, the
79 following criteria must be met:
80 1. The homeowner must have been granted a homestead
81 exemption on the home under chapter 196.
82 2. The home must be a dwelling with an insured value of
83 $500,000 or less. Homeowners who are low-income persons, as
84 defined in s. 420.0004(11), are exempt from this requirement.
85 3. The home must undergo have undergone an acceptable
86 hurricane mitigation inspection as provided in subsection (1)
87 after July 1, 2008.
88 4. The home must be located in the "wind-borne debris
89 region" as that term is defined in the Florida Building Code.
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Bill No. HB 881 (2023)
Amendment No. 1
90 5. The building permit application for initial
91 construction of the home must have been made before January 1,
92 2008.
93 5.6. The homeowner must agree to make his or her home
94 available for inspection once a mitigation project is completed.
95
96 An application for a grant must contain a signed or
97 electronically verified statement made under penalty of perjury
98 that the applicant has submitted only a single application and
99 must have attached documents demonstrating the applicant meets
100 the requirements of this paragraph.
101 (b) All grants must be matched on the basis of $1 provided
102 by the applicant for $2 provided by the state up to a maximum
103 state contribution of $10,000 toward the actual cost of the
104 mitigation project.
105 (c) The program shall create a process in which
106 contractors agree to participate and homeowners select from a
107 list of participating contractors. All mitigation must be based
108 upon the securing of all required local permits and inspections
109 and must be performed by properly licensed contractors.
110 Mitigation projects are subject to random reinspection of up to
111 at least 5 percent of all projects. Hurricane mitigation
112 inspectors qualifying for the program may also participate as
113 mitigation contractors as long as the inspectors meet the
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COMMITTEE/SUBCOMMITTEE AMENDMENT
Bill No. HB 881 (2023)
Amendment No. 1
114 department's qualifications and certification requirements for
115 mitigation contractors.
116 (d) Matching fund grants shall also be made available to
117 local governments and nonprofit entities for projects that will
118 reduce hurricane damage to single-family, site-built, owner-
119 occupied, residential property. The department shall liberally
120 construe those requirements in favor of availing the state of
121 the opportunity to leverage funding for the My Safe Florida Home
122 Program with other sources of funding.
123 (e) When recommended by a hurricane mitigation inspection,
124 grants may be used for the following improvements:
125 1. Opening protection.
126 2. Exterior doors, including garage doors.
127 3. Brace gable ends.
128 4. Reinforcing roof-to-wall connections.
129 4.5. Improving the strength of roof-deck attachments.
130 6. Upgrading roof covering from code to code plus.
131 5.7. Secondary water barrier for roof.
132
133 The department may require that improvements be made to all
134 openings, including exterior doors and garage doors, as a
135 condition of reimbursing a homeowner approved for a grant. The
136 department may adopt, by rule, the maximum grant allowances for
137 any improvement allowable under this paragraph.
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COMMITTEE/SUBCOMMITTEE AMENDMENT
Bill No. HB 881 (2023)
Amendment No. 1
138 (f) Grants may be used on a previously inspected existing
139 structure or on a rebuild. A rebuild is defined as a site-built,
140 single-family dwelling under construction to replace a home that
141 was destroyed or significantly damaged by a hurricane and deemed
142 unlivable by a regulatory authority. The homeowner must be a
143 low-income homeowner as defined in paragraph (g), must have had
144 a homestead exemption for that home before prior to the
145 hurricane, and must be intending to rebuild the home as that
146 homeowner's homestead.
147 (g) Low-income homeowners, as defined in s. 420.0004(11),
148 who otherwise meet the requirements of paragraphs (a), (c), (e),
149 and (f) are eligible for a grant of up to $10,000 $5,000 and are
150 not required to provide a matching amount to receive the grant.
151 Additionally, for low-income homeowners, grant funding may be
152 used for repair to existing structures leading to any of the
153 mitigation improvements provided in paragraph (e), limited to 20
154 percent of the grant value. The program may accept a
155 certification directly from a low-income homeowner that the
156 homeowner meets the requirements of s. 420.0004(11) if the
157 homeowner provides such certification in a signed or
158 electronically verified statement made under penalty of perjury.
159 (h) The department shall establish objective, reasonable
160 criteria for prioritizing grant applications, consistent with
161 the requirements of this section.
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COMMITTEE/SUBCOMMITTEE AMENDMENT
Bill No. HB 881 (2023)
Amendment No. 1
162 (i) The department shall develop a process that ensures
163 the most efficient means to collect and verify grant
164 applications to determine eligibility and may direct hurricane
165 mitigation inspectors to collect and verify grant application
166 information or use the Internet or other electronic means to
167 collect information and determine eligibility.
168 (3) EDUCATION, AND CONSUMER AWARENESS, AND OUTREACH.—
169 (a) The department may undertake a statewide multimedia
170 public outreach and advertising campaign to inform consumers of
171 the availability and benefits of hurricane inspections and of
172 the safety and financial benefits of residential hurricane
173 damage mitigation. The department may seek out and use local,
174 state, federal, and private funds to support the campaign.
175 (b) The program may develop brochures for distribution to
176 Citizens Property Insurance Corporation, general contractors,
177 roofing contractors, and real estate brokers and sales
178 associates who are licensed under part I of chapter 475 which
179 provide information on the benefits to homeowners of residential
180 hurricane damage mitigation. Citizens Property Insurance
181 Corporation is encouraged to distribute the brochure to
182 policyholders of the Corporation.
183
184 -----------------------------------------------------
185 T I T L E A M E N D M E N T
186 Remove lines 7-17 and insert:
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Bill No. HB 881 (2023)
Amendment No. 1
187 granted a homestead exemption; revising the information
188 provided to homeowners as part of a hurricane mitigation
189 inspection; revising the hurricane mitigation inspectors that
190 may be selected by the Department of Financial Services to
191 provide hurricane mitigation inspections; deleting a provision
192 requiring the department to implement a certain quality
193 assurance program; revising the criteria for
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PCS for HB 799
HOUSE OF REPRESENTATIVES STAFF ANALYSIS
BILL #: PCS for HB 799 Property Insurance for Wind and Flood
SPONSOR(S): Insurance & Banking Subcommittee
TIED BILLS: IDEN./SIM. BILLS:
REFERENCE ACTION ANALYST STAFF DIRECTOR or
BUDGET/POLICY CHIEF
Orig. Comm.: Insurance & Banking Subcommittee Fortenberry Lloyd
SUMMARY ANALYSIS
Windstorm Coverage: Residential property insurers must provide credits, discounts, other rate differentials, or
appropriate reductions in deductibles to reduce insurance premiums for such mitigation measures, including
construction techniques or items installed to protect a structure against windstorm damage or loss. Wind uplift
is the upward-acting pressure on the parts of a roof caused by wind traveling across the roof. When wind uplift
exceeds the limits of a building system design, a roof deck could detach from a supporting structure. Engineers
and builders follow the applicable building code for each jurisdiction to attempt to prevent wind uplift damage.
The bill establishes that, in addition to mitigation measures to reduce hurricane losses, an insurer’s rate filing,
which must be approved by the Office of Insurance Regulation. Residential rate filings must allow for
appropriate discounts for mitigation measures that reduce the potential for windstorm losses. The bill also adds
wind uplift prevention to the list of fixtures or construction techniques for which an actuarially reasonable
discount, credit, or other rate differential, or appropriate reduction in deductibles, must be included in a rate
filing for residential property insurance.
Flood Coverage: In December 2022, the Legislature mandated that Citizens Property Insurance Corporation
(Citizens) require personal lines residential policyholders and applicants to purchase and maintain flood
insurance coverage that is at least equivalent to the coverage provided by the National Flood Insurance
Program. Citizens has expressed concerns with the ability to implement the flood coverage requirements
because of the way in which dwelling value is calculated for issuance of policies. The bill makes technical
changes to the statutory language establishing when certain Citizens policyholders must obtain flood coverage
so that Citizens can implement the flood coverage requirements. This does not change flood coverage
requirements enacted in December 2022.
Property insurance policies generally do not include flood coverage. Damage from flooding, including flooding
from hurricane-generated storm surge, is not covered under a standard commercial, standard homeowners,
condominium owners, or renters insurance policy. However, some property insurers include language in
property insurance policies providing windstorm coverage that requires that an insured or applicant maintain
flood coverage in order for the windstorm coverage to be valid, if a claim is made for windstorm damage.
The bill establishes that, if the insurer requires an insured or applicant to have flood coverage when the insurer
issues a policy containing wind coverage, the insurer must verify that the insured or applicant has flood
coverage. If the insurer fails to verify that the insured or applicant has flood coverage, the insurer may not
issue a policy containing wind coverage. The bill also establishes that a master flood policy issued to someone
other than the insured or applicant, and that includes the insured or applicant as an intended third-party
beneficiary is acceptable proof of flood coverage.
The bill has no impact on local or state government revenues or expenditures. It will likely have a positive
direct economic impact on the private sector.
The bill is effective on July 1, 2023, 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: pcs0799.IBS
DATE: 3/8/2023
FULL ANALYSIS
I. SUBSTANTIVE ANALYSIS
A. EFFECT OF PROPOSED CHANGES:
Windstorm Coverage
Background
APPROVAL OF INSURANCE RATE FILINGS
In general, insurers must file a copy of rates, rating schedules, rating manuals, premium credits or
discount schedules, and surcharge schedules, and changes to these documents, for approval by the
Office of Insurance Regulation (OIR).1 OIR must review insurers’ rate filings to determine whether rates
are excessive, inadequate, or unfairly discriminatory.2 In doing so, OIR must consider factors including,
but not limited to, the following:
Past and prospective loss experience in and out of Florida.
Past and prospective expenses.
Degree of competition among insurers for particular risk to be insured.
Investment income reasonably expected by the insurer.
Reasonableness of the judgment reflected in the filing.
Dividends, savings, or unabsorbed premium deposits allowed or returns to policyholders,
members or subscribers in Florida.
Adequacy of loss reserves.
Cost of reinsurance.
Trend factors.
Conflagration and catastrophe hazards, if applicable.
Projected hurricane losses.
Projected flood losses.
Reasonable margin for underwriting profit and contingencies.
Rate filings must also account for factors that should result in premium discounts or credited for
policyholders. A residential property insurance rate filing must account for mitigation measures that
policyholders undertake to reduce hurricane losses. 3
MITIGATION CREDITS IN RESIDENTIAL PROPERTY INSURANCE RATE FILINGS
Residential property insurers must provide credits, discounts, other rate differentials, or appropriate
reductions in deductibles to reduce insurance premiums for properties with mitigation features.4
Mitigation features are construction techniques used or items installed to protect a structure against
windstorm damage or loss. 5 These features must be accounted for in residential property insurance
rate filings submitted to OIR for approval.6 Such features include, but are not limited to, measures that
enhance roof strength, roof covering performance, roof-to-wall strength, wall-to-floor-to foundation
strength, or appropriate protection, window, door, and skylight strength. 7 Examples of items that might
be installed to protect a structure include hurricane shutters, a hip roof, or a specific type of roof
covering.
W IND UPLIFT
1 S. 627.062(2)(a), F.S.
2 S. 627.062(1), F.S.
3 S. 627.062(2)(j), F.S.
4 See s. 627.0629, F.S.
5 See id.
6 S. 627.0629(1), F.S.
7 Id.
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DATE: 3/8/2023
Wind uplift is the upward-acting pressure on the parts of a roof caused by wind traveling across the
roof.8 It is a force measure in pounds per square foot and occurs when the pressure below a roof
exceeds the pressure above it.9 Wind uplift can intensify during high winds, as air enters a building,
causing an increase in the air pressure below the roof, while the speed of wind over the roof reduces
the pressure above the roof.10 When wind uplift exceeds the limits of a building system design, a roof
deck could detach from a supporting structure.11 Engineers and builders follow the applicable building
code for each jurisdiction to attempt to prevent wind uplift.12 The standards vary based on building
location and likelihood of exposure to high winds.13
Effect of the Bill
The bill establishes that, in addition to mitigation measures to reduce hurricane losses, an insurer’s rate
filing must allow for appropriate discounts for mitigation measures that policyholders undertake to
reduce the potential for windstorm losses.
The bill also adds wind uplift prevention to the list of fixtures or construction techniques for which an
actuarially reasonable discount, credit, or other rate differential, or appropriate reduction in deductibles,
must be included in a rate filing for residential property insurance.
Flood Coverage
Citizens Property Insurance Corporation
BACKGROUND
Until December 2022 Citizens Property Insurance Corporation (Citizens) could not require a
policyholder or applicant to obtain flood insurance as a condition of coverage from Citizens if a
policyholder or applicant signed a form affirming that Citizens does not provide flood insurance
coverage, and that, if the policyholder or applicant did not obtain flood coverage in addition to a policy
from Citizens, the risk was not covered for flood damage. 14 A Citizens policyholder who did not obtain
flood coverage and executed such a form, and who made a claim for water damage against Citizens,
had the burden of proving the damage was not caused by flooding. 15 Additionally, Citizens could deny
coverage to a policyholder or applicant who refuses to execute the form. 16
Under s. 627.715, F.S., authorized insurers may issue personal lines residential flood coverage. Such
coverage includes, but is not limited to, standard flood insurance, which is equivalent to that provided
by the National Flood Insurance Program (NFIP), and preferred and customized flood insurance, which
provide additional coverage from that provided by standard flood coverage. 17
A bill passed on December 2022 (SB 2-A) mandated that Citizens require personal lines residential
policyholders and applicants to purchase and maintain flood insurance coverage that is at least
equivalent to the coverage provided by the NFIP. The policyholder or applicant must execute a form
affirming that Citizens does not provide flood insurance and that if the policyholder or applicant does
not obtain flood insurance, his or her risk will not be eligible for coverage from Citizens. Citizens may
8 Certified Commercial Property Inspectors Association, How Wind Uplift can Affect a Commercial Building’s Roof,
https://ccpia.org/how-wind-uplift-can-affect-a-commercial -buildings-roof/ (last visited Mar. 6, 2023).
9 Id.
10 Id.
11 Id.
12 Id.
13 Id. Changes to Florida’s treatment of wind load were made in the 7 th edition of the Florida Building Code in 2020. See
Wind Loads- Impacts from ASCE 7-16 (June 2020), https://floridabuilding.org/fbc/thecode/ 2020_7edition/ASCE_7-
16_Fact_Sheet_final_2_column_format052820final.pdf (last visited Mar. 6, 2023).
14 S. 627.351(6)(aa), F.S. (2021).
15 Id.
16 Id.
17 Current NFIP personal lines flood policies have limits of $250,000 per claim.
STORAGE NAME: pcs0799.IBS PAGE: 3
DATE: 3/8/2023
deny coverage to a personal lines residential policyholder or applicant who refuses to purchase and
maintain flood insurance.
SB 2-A implemented the purchase of flood coverage by personal lines residential policyholders and
applicants as follows:
Policyholders whose Citizens’ policies do not provide wind coverage are not required to
purchase flood coverage as a condition of maintaining their Citizens’ policies.
All policyholders whose property insured by Citizens is located within the special flood hazard
area defined by the Federal Emergency Management Agency must have flood coverage in
place:
o At the time of initial policy issuance for all new policies issued by Citizens on or after
April 1, 2023.
o By the time of policy renewal for all personal lines residential policies renewing on or
after July 1, 2023.
All other policyholders must have flood coverage in place for policies effective on or after:
o January 1, 2024, for property valued at $600,000 or more.
o January 1, 2025, for property valued at $500,000 or more.
o January 1, 2026, for property valued at $400,000 or more.
o January 1, 2027, for all other personal lines residential property insured by Citizens.
Citizens has expressed concerns with the ability to implement the flood coverage requirements for the
policyholders who must have flood coverage in place on or after January 1, 2024, because of the way
in which dwelling value is calculated for issuance of policies.18
EFFECT OF THE BILL
The bill makes technical changes to the statutory language establishing when certain Citizens
policyholders must obtain flood coverage so that Citizens can implement the flood coverage
requirements. It does not change the flood coverage requirements that were signed into law in
December 2022.
Flood Coverage Required by Windstorm Policies
BACKGROUND
Property insurance policies generally do not include flood coverage. Damage from flooding, including
flooding from hurricane-generated storm surge, is not covered under a standard commercial policy,
including a Commercial Package Policy or a Business Owners Policy. 19 Standard homeowners,
condominium owners, and renters insurance policies do not provide flood coverage, including damage
from storm surge.20 However, some property insurers include language in property insurance policies
providing windstorm coverage that requires that an insured or applicant maintain flood coverage in
order for the windstorm coverage to be valid if a claim is made for windstorm damage. Compliance with
this requirement may be problematic if an insurance agent has not made an insured or applicant aware
of it at the time a property insurance policy is purchased.
EFFECT OF THE BILL
For residential and commercial property insurance policies issued or renewed on or after October 1,
2023, the bill establishes that if the insurer requires an insured or applicant to have flood coverage
when the insurer issues a policy containing wind coverage, the insurer must verify that the insured or
applicant has flood coverage at the time of policy issuance or renewal. If the insurer fails to verify that
18 Current law used the phrase “property valued at . . .,” but Citizens issues policies based on the replacement cost of a
structure or unit (e.g. single-family home or condominium).
19 Insurance Information Institute, Does my Business Need Flood Insurance?, https://www.iii.org/article/does-my-
business-need-flood-insurance (last visited Mar. 7, 2023).
20 Insurance Information Institute, Hurricane Insurance FAQ: What Your Insurance Does–and does not–Cover,
https://www.iii.org/article/hurricane-insurance-faq (last visited Mar. 7, 2023).
STORAGE NAME: pcs0799.IBS PAGE: 4
DATE: 3/8/2023
the insured or applicant has flood coverage, the insurer may not issue a policy containing wind
coverage.
Prior to issuing a policy containing wind coverage, but after verifying that the insured or applicant has
flood coverage, the insurer must obtain a written acknowledgment from the insured or applicant that he
or she understands that the policy containing wind coverage requires that the insured or applicant
maintain flood coverage.
In addition to flood coverage directly obtained by the insured or applicant, the bill establishes that a
master flood policy issued to someone other than the insured or applicant, but that covers the insured
or applicant as an intended third-party beneficiary is acceptable proof of flood coverage.
B. SECTION DIRECTORY:
Section 1. Amends s. 627.062, F.S., relating to rate standards.
Section 2. Amends s. 627.0629, F.S., relating to residential property insurance; rate filings.
Section 3. Amends s. 627.351, F.S., relating to insurance risk apportionment plans.
Section 4. Creates s. 627.7155, F.S., relating to wind and flood coverage in residential and commercial
property insurance policies.
Section 5. Provides an effective date of July 1, 2023, 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:
The bill will have a positive direct economic impact on the private sector if rates are reduced due to the
consideration required by the bill.
D. FISCAL COMMENTS:
None.
III. COMMENTS
STORAGE NAME: pcs0799.IBS PAGE: 5
DATE: 3/8/2023
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:
None.
IV. AMENDMENTS/COMMITTEE SUBSTITUTE CHANGES
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DATE: 3/8/2023
F L O R I 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 799 2023
1 A bill to be entitled
2 An act relating to property insurance for wind and
3 flood; amending s. 627.062, F.S.; requiring
4 residential property insurance rate filings to account
5 for windstorm mitigation measures undertaken by
6 policyholders; amending s. 627.0629, F.S.; requiring
7 wind uplift prevention to be included in windstorm
8 damage mitigation techniques for residential property
9 insurance rate filings; amending s. 627.351, F.S.;
10 making technical changes to flood insurance
11 requirements for Citizens Property Insurance
12 Corporation; creating s. 627.7155, F.S., requiring
13 property insurers to verify coverage for the peril of
14 flood in certain circumstances; prohibiting issuance
15 of coverage for the peril of wind in certain
16 circumstances; requiring an acknowledgement;
17 specifying a type of acceptable proof of coverage;
18 providing an effective date.
19
20 Be It Enacted by the Legislature of the State of Florida:
21
22 Section 1. Paragraph (j) of subsection (2) of section
23 627.062, Florida Statutes, is amended to read:
24 627.062 Rate standards.—
25 (2) As to all such classes of insurance:
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F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
PCS for HB 799 2023
26 (j) With respect to residential property insurance rate
27 filings, the rate filing must account for mitigation measures
28 undertaken by policyholders to reduce hurricane losses and
29 windstorm losses.
30
31 The provisions of this subsection do not apply to workers'
32 compensation, employer's liability insurance, and motor vehicle
33 insurance.
34 Section 2. Subsection (1) of section 627.0629, Florida
35 Statutes, is amended to read:
36 627.0629 Residential property insurance; rate filings. —
37 (1) It is the intent of the Legislature that insurers
38 provide savings to consumers who install or implement windstorm
39 damage mitigation techniques, alterations, or solutions to their
40 properties to prevent windstorm losses. A rate filing for
41 residential property insurance must include actuarially
42 reasonable discounts, credits, or other rate differentials, or
43 appropriate reductions in deductibles, for properties on which
44 fixtures or construction techniques demonstrated to reduce the
45 amount of loss in a windstorm have been installed or
46 implemented. The fixtures or construction techniques must
47 include, but are not limited to, fixtures or construction
48 techniques that enhance wind uplift prevention, roof strength,
49 roof covering performance, roof-to-wall strength, wall-to-floor-
50 to-foundation strength, opening protection, and window, door,
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PCS for HB 799 2023
51 and skylight strength. Credits, discounts, or other rate
52 differentials, or appropriate reductions in deductibles, for
53 fixtures and construction techniques that meet the minimum
54 requirements of the Florida Building Code must be included in
55 the rate filing. The office shall determine the discounts,
56 credits, other rate differentials, and appropriate reductions in
57 deductibles that reflect the full actuarial value of such
58 revaluation, which may be used by insurers in rate filings.
59 Section 3. Effective upon becoming law, paragraph (aa) of
60 subsection (6) of section 627.351, Florida Statutes, is amended
61 to read:
62 627.351 Insurance risk apportionment plans.—
63 (6) CITIZENS PROPERTY INSURANCE CORPORATION.—
64 (aa) Except as otherwise provided in this paragraph, the
65 corporation shall require the securing and maintaining of flood
66 insurance as a condition of coverage of a personal lines
67 residential risk. The insured or applicant must execute a form
68 approved by the office affirming that flood insurance is not
69 provided by the corporation and that if flood insurance is not
70 secured by the applicant or insured from an insurer other than
71 the corporation and in addition to coverage by the corporation,
72 the risk will not be eligible for coverage by the corporation.
73 The corporation may deny coverage of a personal lines
74 residential risk to an applicant or insured who refuses to
75 secure and maintain flood insurance. The requirement to purchase
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PCS for HB 799 2023
76 flood insurance shall be implemented as follows:
77 1. Except as provided in subparagraphs 2. and 3., all
78 personal lines residential policyholders must have flood
79 coverage in place for policies effective on or after:
80 a. January 1, 2024, for a structure or unit that has a
81 dwelling replacement cost of property valued at $600,000 or
82 more.
83 b. January 1, 2025, for a structure or unit that has a
84 dwelling replacement cost of property valued at $500,000 or
85 more.
86 c. January 1, 2026, for a structure or unit that has a
87 dwelling replacement cost of property valued at $400,000 or
88 more.
89 d. January 1, 2027, for all other personal lines
90 residential property insured by the corporation.
91 2. All personal lines residential policyholders whose
92 property insured by the corporation is located within the
93 special flood hazard area defined by the Federal Emergency
94 Management Agency must have flood coverage in place:
95 a. At the time of initial policy issuance for all new
96 personal lines residential policies issued by the corporation on
97 or after April 1, 2023.
98 b. By the time of the policy renewal for all personal
99 lines residential policies renewing on or after July 1, 2023.
100 3. Policyholders whose policies issued by the corporation
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101 do not provide coverage for the peril of wind are not required
102 to purchase flood insurance as a condition for maintaining their
103 policies with the corporation.
104
105 The flood insurance required under this paragraph must meet, at
106 a minimum, the coverage available from the National Flood
107 Insurance Program or the requirements of subparagraphs s.
108 627.715(1)(a)1., 2., and 3.
109 Section 4. Effective October 1, 2023, section 627.7155,
110 Florida Statutes, is created, to read:
111 627.7155 Wind and flood coverage in residential and
112 commercial property insurance policies.— For residential and
113 commercial property insurance policies issued or renewed on or
114 after October 1, 2023:
115 (1) If a residential or commercial property insurer
116 requires that an insured or applicant have coverage for the
117 peril of flood when the insurer issues a policy covering the
118 peril of wind, the insurer must verify that the insured or
119 applicant has coverage for the peril of flood at the time the
120 policy is issued or renewed. If the insurer fails to verify that
121 the insured or applicant has coverage for the peril of flood,
122 the insurer may not issue or renew a policy containing coverage
123 for the peril of wind. Prior to issuance of coverage for the
124 peril of wind under this subsection and upon verification of
125 coverage for the peril of flood, the insurer must obtain a
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126 written acknowledgment from the applicant or insured that the
127 applicant or insured understands that the policy covering the
128 peril of wind requires that coverage for the peril of flood must
129 be maintained by the applicant or insured.
130 (2) In addition to coverage for the peril of flood directly
131 secured by the applicant or insured, a master flood policy that
132 is issued to someone other than the applicant or insured and
133 includes the applicant or insured as an intended or third-party
134 beneficiary under the master flood policy is acceptable proof of
135 coverage for the peril of flood for the purposes of this
136 section.
137 Section 5. Except as otherwise provided, this act shall
138 take effect July 1, 2023.
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