Florida House of Representatives Commerce Committee Meeting Packet, February 22, 2024
Summary
The Florida House of Representatives Commerce Committee met on Thursday, February 22, 2024, 8:00 AM - 1:00 PM in Webster Hall (212 Knott), with Bob Rommel as Chair and Paul Renner as Speaker. The packet's agenda runs from CS/HB 141 Economic Development to CS/HB 1647, then proposed committee substitutes ending with PCS for CS/HB 1503 -- Citizens Property Insurance Corporation. One bill is CS/HB 1289, Verification of Reemployment Assistance Benefit Eligibility. Its staff analysis says the bill adds disqualifying conditions such as failing to contact at least five prospective employers per week, and requires the Department of Commerce to verify the identity of each claimant before paying any benefits. The bill provides an effective date of July 1, 2024.
Summary drafted by a model from the document's text below and checked by script against that text before publication. It is a navigation aid, not a reading of what the document proves. Where AI is used
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“Florida House of Representatives Commerce Committee Meeting Packet, February 22, 2024.”
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Commerce Committee
Thursday, February 22, 2024
8:00 AM - 1:00 PM
Webster Hall (212 Knott)
Meeting Packet
Paul Renner Bob Rommel
Speaker Chair
The Florida House of Representatives
Commerce Committee
Paul Renner Bob Rommel
Speaker Chair
Meeting Agenda
Thursday, February 22, 2024
8:00 am – 1:00 pm
Webster Hall (212 Knott)
I. Call to Order
II. Roll Call
III. Welcome and Opening Remarks
IV. Consideration of the following bill(s):
CS/HB 141 Economic Development by Ways & Means Committee, Abbott
CS/HB 161 Payments for Health Care Providers and Surgical Procedures under Workers'
Compensation by Insurance & Banking Subcommittee, Daley, LaMarca
HB 207 Social Media Protection for Minors by Rayner, Sirois
CS/HB 433 Employment Regulations by Regulatory Reform & Economic Development
Subcommittee, Esposito
CS/HB 497 Continuing Education Requirements by Regulatory Reform & Economic
Development Subcommittee, Melo
CS/HB 611 Public Deposits by State Administration & Technology Appropriations
Subcommittee, Botana
CS/CS/HB 613 Mobile Home Park Lot Tenancies by State Administration & Technology
Appropriations Subcommittee, Regulatory Reform & Economic Development Subcommittee,
Stark
CS/HB 637 Treatment by a Medical Specialist by Insurance & Banking Subcommittee, Yeager
303 House Office Building, 402 South Monroe Street, Tallahassee, FL 32399-1300
(850) 717-4870
HB 909 Pari-mutuel Permitholders by Esposito
HB 991 Pub. Rec./Cellular Telephone Numbers and Secure Login Credentials Held by the
Department of Financial Services by LaMarca
CS/CS/HB 1021 Community Associations by State Administration & Technology Appropriations
Subcommittee, Regulatory Reform & Economic Development Subcommittee, Lopez, V.
CS/CS/HB 1029 My Safe Florida Condominium Pilot Program by State Administration &
Technology Appropriations Subcommittee, Insurance & Banking Subcommittee, Lopez, V.,
Hunschofsky
CS/HB 1099 Food Delivery Platforms by Regulatory Reform & Economic Development
Subcommittee, Melo
CS/HB 1149 Policy Cancellations and Nonrenewals by Property Insurers by Insurance &
Banking Subcommittee, Botana
CS/HB 1189 Corporate Actions by Regulatory Reform & Economic Development Subcommittee,
Abbott
CS/CS/HB 1219 Dental Insurance Claims by Health & Human Services Committee, Insurance &
Banking Subcommittee, Black
CS/CS/HB 1263 My Safe Florida Home Program by State Administration & Technology
Appropriations Subcommittee, Insurance & Banking Subcommittee, LaMarca
CS/HB 1289 Verification of Reemployment Assistance Benefit Eligibility by Regulatory Reform
& Economic Development Subcommittee, Abbott
CS/HB 1419 Department of Commerce by Infrastructure & Tourism Appropriations
Subcommittee, Tuck
CS/HB 1537 Vacation Rentals by Regulatory Reform & Economic Development Subcommittee,
Griffitts
CS/HB 1541 Transparency In Social Media by Regulatory Reform & Economic Development
Subcommittee, Fine
CS/CS/HB 1555 Cybersecurity by State Administration & Technology Appropriations
Subcommittee, Energy, Communications & Cybersecurity Subcommittee, Giallombardo
HB 1559 Professional Licensure by McClure
CS/HB 1611 Insurance by Insurance & Banking Subcommittee, Stevenson
CS/HB 1647 Local Regulation of Nonconforming and Unsafe Structures by Regulatory Reform
& Economic Development Subcommittee, Roach
Consideration of the following proposed committee substitute(s):
PCS for HB 229 -- Public Service Commission Rules
PCS for CS/HB 939 -- Consumer Protection
PCS for CS/CS/HB 989 -- Financial Services
PCS for CS/HB 1007 -- Nicotine Products and Dispensing Devices
PCS for CS/HB 1503 -- Citizens Property Insurance Corporation
V. Closing Remarks
VI. Adjournment
CS/HB 141
HOUSE OF REPRESENTATIVES STAFF ANALYSIS
BILL #: CS/HB 141 Economic Development
SPONSOR(S): Ways & Means Committee, Abbott and others
TIED BILLS: IDEN./SIM. BILLS: CS/SB 196
REFERENCE ACTION ANALYST STAFF DIRECTOR or
BUDGET/POLICY CHIEF
1) Regulatory Reform & Economic Development 13 Y, 0 N Phelps Anstead
Subcommittee
2) Ways & Means Committee 20 Y, 0 N, As CS Berg Aldridge
3) Commerce Committee Phelps Hamon
SUMMARY ANALYSIS
Under Florida law, a “rural community,” as the term relates to counties, means a county with a population of
75,000 or fewer, or a county with a population of 125,000 or fewer which is contiguous to a county with a
population of 75,000 or fewer. The Florida Department of Commerce (DOC) Regional Rural Development
Grant Program encourages rural communities to leverage limited resources to develop and implement
strategies to help attract new businesses.
Triumph Gulf Coast, Inc., was created in 2013 by the Legislature to manage, distribute, and assess the use of
certain funds related to the Deepwater Horizon oil spill. Triumph Gulf Coast, Inc., is organized as a nonprofit
corporation, administratively housed within the Department of Commerce. The corporation is a separate entity
from state government and not subject to control, supervision, or direction of the Department of Commerce.
The bill eliminates several requirements related to the Regional Rural Development Grants Program:
Removes the requirements for grant funds received by a regional development organization to be
matched each year by nonstate resources in an amount equal to 25 percent of the state
contributions;
Removes the requirement for local governments and private businesses to make financial or in-kind
commitments to the regional organization; and
Removes the requirement that the DOC consider the demonstrated need of the applicant for
assistance when approving participants for the program.
The bill also allows Triumph Gulf Coast, Inc., to retain interest earned on the funds in its trust account rather
than having those funds revert to the Triumph Gulf Coast Trust Fund. The funds held are required to be used
to make awards or for administrative costs.
The bill provides an effective date of July 1, 2024.
This docum ent does not reflect the intent or official position of the bill sponsor or House of Representatives .
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FULL ANALYSIS
I. SUBSTANTIVE ANALYSIS
A. EFFECT OF PROPOSED CHANGES:
Present Situation
Regional Rural Development Grants Program
The Regional Rural Development Grants Program was established to provide funding, through
matching grants, to build the professional capacity of regionally based economic development
organizations located in rural communities. The concept of building the “professional capacity” of an
economic development organization includes hiring professional staff to develop, deliver, and provide
economic development professional services. Professional services include technical assistance,
education and leadership development, marketing, and project recruitment. 1
Applications submitted to the Department of Commerce (DOC) for funding through this program must
provide proof:2
Of official commitments of support from each of the units of local government represented by
the regional organization;
That each local government has made a financial or in-kind commitments to the regional
organization;
That the private sector has made financial or in-kind commitment to the regional organization;
That the regional organization is in existence and actively involved in economic development
activities serving the region; and
Of the manner in which the organization coordinates its efforts with those other local and state
organizations.
An organization may receive up to $50,000 a year or $250,000 if located in a rural area of opportunity
(RAO).3 Grants must be matched by an amount of non-state resources equal to 25 percent of the state
contribution. The DOC is authorized to spend up to $750,000 each fiscal year from funds appropriated
to the Rural Community Development Revolving Loan Fund to carry out this program. 4
Rural Areas of Opportunity
A (RAO) is a rural community,5 or region comprised of rural communities, designated by the Governor,
that has been adversely affected by an extraordinary economic event, severe or chronic distress, or a
natural disaster.6 An area may also be designated as a RAO if it presents a unique economic
development opportunity of regional impact. The designation of a RAO must be agreed upon by the
Department of Commerce (DOC), as well as the county and municipal governments to be included in
the RAO.7
Based on recommendations of the Rural Economic Development Initiative (REDI), 8 the Governor may
designate up to three RAOs by executive order.9 This designation establishes these areas as priority
1 S. 288.018(1)(b), F.S.
2
S. 288.018(2), F.S.
3 S. 288.018(1)(c), F.S.
4 S. 288.018(4), F.S.
5 S. 288.0656(2)(e), F.S., defines a “rural community” as any county with a population of 75,000 or fewer, any county with a popul ation
of 125,000 or fewer that is contiguous to a county with a population of 75,000 or fewer, a municipality in a county that mee ts either of
the aforementioned criteria, or an unincorporated federal enterprise community or an incorporated rural city with a populatio n of 25,000
or fewer and an employment base focused on traditional agricultural or resource -based industries, located in a county not defined as
rural, which has at least three or more of the economic distress factors.
6 S. 288.0656(2)(d), F.S.
7 S. 288.0656(7)(b), F.S.
8 S. 288.0656(1), F.S. REDI was established by the Legislature to encourage and facilitate the locati on and expansion of major
economic development projects of significant scale in rural communities.
9 S. 288.0656(7)(a), F.S.
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assignments for REDI and allows the Governor, acting through REDI, to waive criteria, requirements, or
similar provisions of any economic development initiative.
Currently, there are three designated RAO areas:
Northwest RAO: Calhoun, Franklin, Gadsden, Gulf, Holmes, Jackson, Liberty, Wakulla, and
Washington counties, and portions of Walton County (the City of Freeport and lands north of the
Choctawhatchee Bay and intercoastal waterway).
South Central RAO: DeSoto, Glades, Hardee, Hendry, Highlands, and Okeechobee counties,
and the cities of Pahokee, Belle Glade, and South Bay in Palm Beach County and the city of
Immokalee in Collier County.
North Central RAO: Baker, Bradford, Columbia, Dixie, Gilchrist, Hamilton, Jefferson, Lafayette,
Levy, Madison, Putnam, Suwannee, Taylor, and Union counties. 10
Triumph Gulf Coast, Inc.
Triumph Gulf Coast, Inc., was created in 2013 by the Legislature to manage, distribute, and assess the
use of certain funds related to the Deepwater Horizon oil spill. 11 Triumph Gulf Coast, Inc., is organized
as a nonprofit corporation, administratively housed within the Department of Commerce. The
corporation is a separate entity from state government and not subject to control, supervision, or
direction of the Department of Commerce.
Triumph Gulf Coast, Inc., is required to administer the Recovery Fund and all programs created under
the Gulf Coast Economic Corridor Act in a transparent manner and in accordance with all applicable
laws, bylaws, or contractual requirements.12 The corporation is required to monitor, review, and
evaluate awardees and related projects or programs. The evaluation process must be used to
determine funding priorities and determine whether an award should be reauthorized or terminated.
The corporation is also required to maintain a website that provides information related to meetings,
issuance of awards, and the status of projects and programs.
Effect of the Bill
The bill eliminates several requirements related to the Regional Rural Development Grants Program:
Removes the requirements for grant funds received by a regional development organization to
be matched each year by nonstate resources in an amount equal to 25 percent of the state
contributions;
Removes the requirement for local governments and private businesses to make financial or in-
kind commitments to the regional organization; and
Removes the requirement that the DOC consider the demonstrated need of the applicant for
assistance when approving participants for the program.
The bill also allows Triumph Gulf Coast, Inc., to retain interest earned on the funds in its trust account
rather than having those funds revert to the Triumph Gulf Coast Trust Fund. The funds held are
required to be used to make awards or for administrative costs.
The bill provides an effective date of July 1, 2024.
B. SECTION DIRECTORY:
Section 1: Amends s. 288.018, F.S., relating to the Regional Rural Development Grants Program.
10 Department of Commerce, Rural Areas of Opportunity, https://floridajobs.org/community-planning-and-development/rural-community-
programs/rural-areas-of-opportunity (last visited Feb. 19, 2023). The economic development organizations for these RAOs are named
Opportunity Florida, Florida’s Heartland Regional Economic Development Initiative, and the North Florida Economic Development
Partnership, respectively.
11 S. 288.8013(1), F.S.
12 Triumph Gulf Coast, Inc., availab le at https://www.myfloridatriumph.com/ (last visited Feb. 19, 2024).
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Section 2: Amends s. 288.8013, F.S., to allow Triumph Gulf Coast, Inc. to retain interest earned on
the funds in its trust account rather than having those funds revert to the Triumph Gulf Coast Trust
Fund. The funds held are required to be used to make awards or for administrative costs.
Section 3: Provides an effective date.
II. FISCAL ANALYSIS & ECONOMIC IMPACT STATEMENT
A. FISCAL IMPACT ON STATE GOVERNMENT:
1. Revenues:
None.
2. Expenditures:
None.
B. FISCAL IMPACT ON LOCAL GOVERNMENTS:
1. Revenues:
None.
2. Expenditures:
None.
C. DIRECT ECONOMIC IMPACT ON PRIVATE SECTOR:
None.
D. FISCAL COMMENTS:
None.
III. COMMENTS
A. CONSTITUTIONAL ISSUES:
1. Applicability of Municipality/County Mandates Provision:
Not Applicable. This bill does not appear to require counties or municipalities to spend funds or take
action requiring the expenditures of funds; reduce the authority that counties or municipalities have
to raise revenues in the aggregate; or reduce the percentage of state tax shared with counties or
municipalities.
2. Other:
None.
B. RULE-MAKING AUTHORITY:
None.
C. DRAFTING ISSUES OR OTHER COMMENTS:
None.
IV. AMENDMENTS/COMMITTEE SUBSTITUTE CHANGES
On February 14, 2024, the Ways & Means Committee considered a Proposed Committee Substitute (PCS)
and reported the bill favorably as a committee substitute. The PCS:
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Allowed Triumph Gulf Coast, Inc., to retain interest earned on the funds in its trust account rather than
having those funds revert to the Triumph Gulf Coast Trust Fund.
Required these funds to be used to make awards or for administrative costs.
This analysis is drafted to the committee substitute as approved by the Ways & Means Committee.
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F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
CS/HB 141 2024
1 A bill to be entitled
2 An act relating to economic development; amending s.
3 288.018, F.S.; removing the requirement that certain
4 grants received by a regional economic development
5 organization must be matched in a certain manner;
6 removing a provision requiring a certain
7 consideration; removing certain demonstration
8 requirements of program applicants; amending s.
9 288.8013, F.S.; removing the requirement that certain
10 interest be deposited in a specified manner; providing
11 that specified earnings may be retained and used to
12 make specified awards or for administrative costs;
13 providing an effective date.
14
15 Be It Enacted by the Legislature of the State of Florida:
16
17 Section 1. Paragraphs (b), (c), and (d) of subsection (1)
18 and subsection (2) of section 288.018, Florida Statutes, are
19 amended to read:
20 288.018 Regional Rural Development Grants Program. —
21 (1)
22 (b) The department shall establish a matching grant
23 program to provide funding to regional economic development
24 organizations for the purpose of building the professional
25 capacity of those organizations. Building the professional
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hb0141-01-c1
F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
CS/HB 141 2024
26 capacity of a regional economic development organization
27 includes hiring professional staff to develop, deliver, and
28 provide needed economic development professional services,
29 including technical assistance, education and leadership
30 development, marketing, and project recruitment. Matching Grants
31 may also be used by a regional economic development organizat ion
32 to provide technical assistance to local governments, local
33 economic development organizations, and existing and prospective
34 businesses.
35 (c) A regional economic development organization may apply
36 annually to the department for a matching grant. The department
37 is authorized to approve, on an annual basis, grants to such
38 regional economic development organizations. The maximum amount
39 an organization may receive in any year will be $50,000, or
40 $250,000 for any three regional economic development
41 organizations that serve an entire region of a rural area of
42 opportunity designated pursuant to s. 288.0656(7) if they are
43 recognized by the department as serving such a region.
44 (d) Grant funds received by a regional economic
45 development organization must be matched each year by nonstate
46 resources in an amount equal to 25 percent of the state
47 contribution.
48 (2) In approving the participants, the department shall
49 consider the demonstrated need of the applicant for assistance
50 and require the following:
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CS/HB 141 2024
51 (a) Documentation of official commitments of support from
52 each of the units of local government represented by the
53 regional organization.
54 (b) Demonstration that each unit of local government has
55 made a financial or in-kind commitment to the regional
56 organization.
57 (c) Demonstration that the private sector has made
58 financial or in-kind commitments to the regional organization.
59 (b)(d) Demonstration that the organization is in existence
60 and actively involved in economic development activities serving
61 the region.
62 (c)(e) Demonstration of the manner in which the
63 organization is or will coordinate its efforts with those of
64 other local and state organizations.
65 Section 2. Upon the expiration and reversion of the
66 amendments made to s. 288.8013, Florida Statutes, pursuant to
67 section 64 of chapter 2023-240, Laws of Florida, subsection (3)
68 of section 288.8013, Florida Statutes, is amended to read:
69 288.8013 Triumph Gulf Coast, Inc.; creation; funding;
70 investment.—
71 (3) Triumph Gulf Coast, Inc., shall establish a tr ust
72 account at a federally insured financial institution to hold
73 funds received from the Triumph Gulf Coast Trust Fund and make
74 deposits and payments. Interest earned in the trust account
75 shall be deposited monthly into the Triumph Gulf Coast Trust
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F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
CS/HB 141 2024
76 Fund. Triumph Gulf Coast, Inc., may invest surplus funds in the
77 Local Government Surplus Funds Trust Fund, pursuant to s.
78 218.407. Earnings generated by investments and interest of the
79 fund may be retained and used to make awards pursuant to this
80 act or, notwithstanding paragraph (2)(d), for administrative
81 costs, including costs in excess of the cap, and interest
82 earned, net of fees, shall be transferred monthly into the
83 Triumph Gulf Coast Trust Fund. Administrative costs may include
84 payment of travel and per diem expenses of board members,
85 audits, salary or other costs for employed or contracted staff,
86 including required staff under s. 288.8014(9), and other
87 allowable costs. The annual salary for any employee or
88 contracted staff may not exceed $130,000, and associated
89 benefits may not exceed 35 percent of salary.
90 Section 3. This act shall take effect July 1, 2024.
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CS/HB 161
HOUSE OF REPRESENTATIVES STAFF ANALYSIS
BILL #: CS/HB 161 Payments for Health Care Providers and Surgical Procedures under Workers'
Compensation
SPONSOR(S): Insurance & Banking Subcommittee, Daley and others
TIED BILLS: IDEN./SIM. BILLS: CS/SB 362
REFERENCE ACTION ANALYST STAFF DIRECTOR or
BUDGET/POLICY CHIEF
1) Insurance & Banking Subcommittee 15 Y, 0 N, As CS Herrera Lloyd
2) State Administration & Technology 11 Y, 2 N Perez Topp
Appropriations Subcommittee
3) Commerce Committee Herrera Hamon
SUMMARY ANALYSIS
Florida’s Workers’ Compensation Law (WC Law) requires employers to provide injured employees all
medically necessary remedial treatment, care, and attendance for such period as the nature of the injury or the
process of recovery may require. The Department of Financial Services (DFS), Division of Workers’
Compensation (DWC), provides regulatory oversight of Florida’s workers’ compensation system, including the
workers’ compensation health care delivery system. DWC is responsible for ensuring that employers provide
medically necessary treatment, care, and attendance for injured workers.
A three-member panel (panel) consisting of the Chief Financial Officer (CFO) or his or her designee and two
Governor’s appointees sets the maximum reimbursement allowances (MRAs). DWC incorporates the
statewide schedules of the MRAs by rule in reimbursement manuals. The panel develops three different
reimbursement manuals to determine statewide schedules of maximum reimbursement allowances. The WC
Law manual limits the maximum reimbursement for licensed physicians to 110 percent of Medicare
reimbursement, while reimbursement for surgical procedures is limited to 140 percent of Medicare.
The WC Law limits the amount a health care provider can be paid for expert testimony during depositions on a
workers’ compensation claim. As an expert medical witness, a workers’ compensation health care provider is
limited to a maximum $200, per hour, unless they only provided an expert medical opinion following a medical
record review or provided direct personal services unrelated to the case in dispute, then they are limited to a
maximum of $200, per day.
The bill increases the maximum hourly amount allowed expert witnesses from $200, per hour, to $300, per
hour. For those expert witnesses’ subject to the daily rate, the maximum amount allowed is increased from
$200, per day, to $300, per day.
Also, the bill increases the maximum reimbursement for physician licensed under ch. 458 or ch. 459, from 110
percent, to 150 percent of the reimbursement allowed by Medicare. Additionally, the bill increases the maximum
reimbursement for surgical procedures from 140 percent, to 150 percent of the reimbursement allowed by
Medicare.
The bill has an indeterminate negative impact on state and local government expenditures, and positive and
negative impacts on the private sector. See Fiscal Analysis & Economic Impact Statement.
The bill is effective July 1, 2024.
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:
Division of Workers’ Compensation
Florida’s Workers’ Compensation Law 1 (WC Law) requires employers to provide injured employees all
medically necessary remedial treatment, care, and attendance for such period as the nature of the injury
or the process of recovery may require.2 The Department of Financial Services (DFS), Division of
Workers’ Compensation (DWC) provides regulatory oversight of Florida’s workers’ compensation
system, including the workers’ compensation health care delivery system. The law specifies certain
reimbursement formulas and methodologies to compensate workers’ compensation health care
providers 3 that provide medical services to injured employees. Where a reimbursement amount or
methodology is not specifically included in statute, the Three-Member Panel (panel) is authorized to
annually adopt statewide schedules of maximum reimbursement allowances (MRAs) to provide uniform
fee schedules for the reimbursement of various medical services. 4 DWC incorporates the MRAs
approved by the Three-Member Panel in reimbursement manuals 5 through the rulemaking process
provided by the Administrative Procedures Act.6 In 2023, CS/CS/HB 487 eliminated the authority of the
Three-Member Panel to adopt MRA’s for individually licensed health care providers, work-hardening
programs, pain programs, and durable medical equipment providers.7 Instead, it mandates DWC to
annually publish the maximum reimbursement allowance for physician and non-hospital reimbursements
on its website by July 1st , effective the following January 1st .8
Medical Services
DWC is responsible for ensuring that employers provide medically necessary treatment, care, and
attendance for injured workers. Healthcare providers must receive authorization from the insurer before
providing treatment and submit treatment reports to the insurer. Insurers must reimburse healthcare
providers based on statewide schedules of maximum reimbursement allowances developed by the DWC
or an agreed-upon contract price. DWC mediates utilization and reimbursement disputes. 9
Reimbursement for Healthcare Providers
The panel consisting of the Chief Financial Officer (CFO) or their designee and two Governor appointees,
set the MRAs.10 Beginning with rates developed in 2024 and implemented with rates effective January
1, 2025, health care providers and non-hospital rates are annually published by DWC, instead of being
included in the reimbursement manuals through rulemaking.11 DWC incorporates the panel’s statewide
schedules of the MRAs through rulemaking. In establishing the MRA manuals, the panel considers the
usual and customary levels of reimbursement for treatment, services, and care; 12 the cost impact to
employers for providing reimbursement that ensures that injured workers have access to necessary
medical care; and the financial impact of the MRAs on healthcare providers and facilities.13 Florida law
requires the panel to develop MRA manuals that are reasonable, promote the workers’ compensation
1 Ch. 440, F.S.
2 S. 440.13(2)(a), F.S.
3
The term “health care provider” includes a physician or any recognized practitioner licensed to provide skilled services purs uant to a
prescription or under the supervision or direction of a physician. It also includes any hospital licensed under chapter 395 and any health
care institution licensed under chapter 400 or chapter 429. S. 440.13(1)(g), F.S.
4 S. 440.13(12), F.S.
5 Ss. 440.13(12) and (13), F.S., and Ch. 69L-7, F.A.C.
6 Ch. 120, F.S.
7 Ch. 2023-144, Laws of Fla.
8 Id.
9 S. 440.13, F.S.
10 Id.
11 Ch. 2023-144, Laws of Fla.
12 S. 440.13(12)(i)(1), F.S.
13 S. 440.13(12)(i)(2), F.S.
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system’s healthcare cost containment and efficiency, and are sufficient to ensure that medically
necessary treatment is available for injured workers.14
There are three different reimbursement manuals that determine statewide schedules of maximum
reimbursement allowances. The healthcare provider manual, developed by the DWC, limits the maximum
reimbursement for licensed physicians to 110 percent of Medicare reimbursement,15 while
reimbursement for surgical procedures is limited to 140 percent of Medicare. 16 The hospital manual,
developed by the panel, sets maximum reimbursement for outpatient scheduled surgeries at 60 percent
of usual and customary charges,17 while other outpatient services are limited to 75 percent of usual and
customary charges.18 Reimbursement of inpatient hospital care is limited based on a schedule of per
diem rates approved by the panel.19 The ambulatory surgical centers manual, developed by the panel,
limits reimbursement to 60 percent of usual and customary as such services are generally scheduled
outpatient surgeries. The prescription drug reimbursement manual limits reimbursement to the average
wholesale price plus a $4.18 dispensing fee. 20 Repackaged or relabeled prescription medication
dispensed by a dispensing practitioner has a maximum reimbursement of 112.5 percent of the average
wholesale price plus an $8.00 dispensing fee.21 Fees may not exceed the schedules adopted under ch.
440, F.S., and department rule.22
Expert Witness Fees for Health Care Providers
The law limits the amount a health care provider can be paid for expert testimony during depositions on
a workers’ compensation claim. As an expert medical witness, a workers’ compensation health care
provider is limited to a maximum of $200, per hour, unless they only provided an expert medical opinion
following a medical record review or provided direct personal services unrelated to the case in dispute,
then they are limited to a maximum of $200, per day.23
Effect of the Bill
The bill increases the maximum hourly amount allowed expert witnesses from $200, per hour, to $300,
per hour. For those expert witnesses’ subject to the daily rate, the maximum amount allowed is increased
from $200, per day, to $300, per day.
Also, the bill increases the maximum reimbursement for physician licensed under ch. 458 or ch. 459,
from 110 percent to 150 percent of the reimbursement allowed by Medicare. Additionally, the bill
increases the maximum reimbursement for surgical procedures from 140 percent to 150 percent of the
reimbursement allowed by Medicare or the medical reimbursement level adopted by the three-member
panel as of January 1, 2003, whichever is higher.
B. SECTION DIRECTORY:
Section 1. Amends s. 440.13, F.S., relating to medical services and supplies; penalty for violations;
limitations.
Section 2. Providing an effective date of July 1, 2024.
II. FISCAL ANALYSIS & ECONOMIC IMPACT STATEMENT
A. FISCAL IMPACT ON STATE GOVERNMENT:
14 S. 440.13(12)(i)(3), F.S.
15 S. 440.13(12)(f), F.S.
16 S. 440.13(12)(g), F.S.
17 S. 440.13(12)(d), F.S.
18 S. 440.13(12)(a), F.S.
19 Id.
20 S. 440.13(12)(h), F.S.
21 Id.
22 S. 440.13(12)(f), F.S.
23 S. 440.13(10), F.S.
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1. Revenues:
None.
2. Expenditures:
The bill will likely have a negative fiscal impact on the State Risk Management Trust Fund (from
which the state’s worker compensation costs are paid). The National Council on Compensation
Insurance (NCCI) analysis of the bill forecasts a 6.9% increase in workers compensation rates if the
bill becomes law.24
The bill may have a negative, likely insignificant, impact on expenditures for litigated state employee
workers’ compensation claims to the extent the state elects to increase expert witness fees, as
allowed by the bill. NCCI expects this to be a minimal increase (minimal defined in this context as
overall system costs of less than plus 0.2 percent increase).25
B. FISCAL IMPACT ON LOCAL GOVERNMENTS:
1. Revenues:
None.
2. Expenditures:
The bill may have a negative fiscal impact on local government expenditures, potentially resulting in
a 6.9 percent increase in workers' compensation rates.26
The bill may have a negative, likely insignificant, impact on self-insured local government
expenditures for litigated public employee workers’ compensation claims to the extent they elect to
increase expert witness fees, as allowed by the bill. NCCI expects this to be a minimal increase
(minimal defined in this context as overall system costs of less than plus 0.2 percent increase). 27
C. DIRECT ECONOMIC IMPACT ON PRIVATE SECTOR:
The bill may increase payments to medical providers who appear as expert witnesses in litigated
workers’ compensation claim and to physicians for medical services provided to injured workers.
The bill may increase worker’s compensation claim costs in litigated cases. If this is significant enough
to impact workers’ compensation rates, it may increase workers’ compensation premiums paid by
employers.
D. FISCAL COMMENTS:
None.
III. COMMENTS
A. CONSTITUTIONAL ISSUES:
1. Applicability of Municipality/County Mandates Provision:
The county/municipality mandates provision of Art. VII, section 18, of the Florida Constitution may
apply because this bill necessitates local governments to allocate additional funds, particularly for
those providing increased workers' compensation reimbursements to physicians, including self-
insured employers; however, an exception may apply. The bill applies to all similarly situated entities
that provide workers’ compensation.
24 NCCI, Analysis of Florida Medical Fee Schedule Changes (2024 Session, HB 161/SB 362) (Feb. 06, 2024).
25 Id.
26 Id.
27 Id.
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2. Other:
None.
B. RULE-MAKING AUTHORITY:
None provided by the bill.
C. DRAFTING ISSUES OR OTHER COMMENTS:
None.
IV. AMENDMENTS/COMMITTEE SUBSTITUTE CHANGES
On January 25, 2024, the Insurance & Banking Subcommittee considered the bill, adopted a line amendment,
and reported the bill favorably as a committee substitute. The amendment reduced the proposed increase from
200% of the Medicare allowed amount to a uniform 150%, applicable to both surgical and non-surgical health
care provider reimbursements.
The analysis is drafted to the committee substitute as passed by the Insurance & Banking Subcommittee.
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F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
CS/HB 161 2024
1 A bill to be entitled
2 An act relating to payments for health care providers
3 and surgical procedures under workers' compensation;
4 amending s. 440.13, F.S.; increasing the maximum
5 amounts of certain witness fees related to workers'
6 compensation cases; increasing the maximum
7 reimbursements for physicians and surgical procedures
8 under workers' compensation; providing an effective
9 date.
10
11 Be It Enacted by the Legislature of the State of Florida:
12
13 Section 1. Subsection (10) and paragraphs (f) and (g) of
14 subsection (12) of section 440.13, Florida Statutes, are amended
15 to read:
16 440.13 Medical services and supplies; penalty for
17 violations; limitations.—
18 (10) WITNESS FEES.—Any health care provider who gives a
19 deposition shall be allowed a witness fee. The amount charged by
20 the witness may not exceed $300 $200 per hour. An expert witness
21 who has never provided direct professional services to a party
22 but has merely reviewed medical records and provided an expert
23 opinion or has provided only direct professional services that
24 were unrelated to the workers' compensation case may not be
25 allowed a witness fee in excess of $300 $200 per day.
Page 1 of 3
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hb0161-01-c1
F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
CS/HB 161 2024
26 (12) CREATION OF THREE-MEMBER PANEL; GUIDES OF MAXIMUM
27 REIMBURSEMENT ALLOWANCES.—
28 (f) Maximum reimbursement for a physician licensed under
29 chapter 458 or chapter 459 shall be 150 110 percent of the
30 reimbursement allowed by Medicare, using appropriate codes and
31 modifiers or the medical reimbursement level adopted by the
32 three-member panel as of January 1, 2003, whichever is greater.
33 (g) Maximum reimbursement for surgical procedures shall be
34 150 140 percent of the reimbursement allowed by Medicare or the
35 medical reimbursement level adopted by the three-member panel as
36 of January 1, 2003, whichever is greater.
37
38 The department, as requested, shall provide data to the panel,
39 including, but not limited to, utilization trends in the
40 workers' compensation health care delivery system. The
41 department shall provide the panel with an annual report
42 regarding the resolution of medical reimbursement disputes and
43 any actions pursuant to subsection (8). The department shall
44 provide administrative support and service to the panel to the
45 extent requested by the panel. For prescription medication
46 purchased under the requirements of this subsection, a
47 dispensing practitioner shall not possess such medication unless
48 payment has been made by the practitioner, the practitioner's
49 professional practice, or the practitioner's practice management
50 company or employer to the supplying manufacturer, wholesaler,
Page 2 of 3
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hb0161-01-c1
F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
CS/HB 161 2024
51 distributor, or drug repackager within 60 days of the dispensing
52 practitioner taking possession of that medication.
53 Section 2. This act shall take effect July 1, 2024.
Page 3 of 3
CODING: Words stricken are deletions; words underlined are additions.
hb0161-01-c1
COMMERCE COMMITTEE
CS/HB 161 by Rep. Daley
Payments for Health Care Providers and Surgical
Procedures under Workers' Compensation
AMENDMENT SUMMARY
February 22, 2024
Amendment 1 by Rep. Daley (Line 53): The amendment changes the effective date from July
1, 2024 to January 1, 2025 to align the change proposed by the bill with the effective date of the
annual Workers’ Compensation rates.
COMMITTEE/SUBCOMMITTEE AMENDMENT
Bill No. CS/HB 161 (2024)
Amendment No. 1
COMMITTEE/SUBCOMMITTEE ACTION
ADOPTED (Y/N)
ADOPTED AS AMENDED (Y/N)
ADOPTED W/O OBJECTION (Y/N)
FAILED TO ADOPT (Y/N)
WITHDRAWN (Y/N)
OTHER
1 Committee/Subcommittee hearing bill: Commerce Committee
2 Representative Daley offered the following:
3
4 Amendment
5 Remove line 53 and insert:
6 Section 2. This act shall take effect January 1, 2025.
571387 - hb0161-line53.docx
Published On: 2/21/2024 7:52:44 PM
Page 1 of 1
HB 207
HOUSE OF REPRESENTATIVES STAFF ANALYSIS
BILL #: HB 207 Social Media Protection for Minors
SPONSOR(S): Rayner
TIED BILLS: IDEN./SIM. BILLS: SB 1430
REFERENCE ACTION ANALYST STAFF DIRECTOR or
BUDGET/POLICY CHIEF
1) Regulatory Reform & Economic Development 13 Y, 0 N Phelps Anstead
Subcommittee
2) Commerce Committee Phelps Hamon
SUMMARY ANALYSIS
Social media platforms are a computer-based technology that facilitate the sharing of ideas, thoughts, and
information through virtual communities to allow electronic communication of content. Social media use by children
can have positive and negative influences, and providing them with information and external controls can help
prevent harmful effects.
The bill defines “social media platform” as a digital platform operating in the state mainly accessed by children under
the age of 18 that offers forms of electronic communication through which users are permitted to create online
communities to share information, ideas, personal messages, and other content.
Beginning January 1, 2025, the bill requires social media platforms to:
Disclose policies, using clear language suited to children, related to:
o Content moderation;
o Addictive design or deceptive pattern features, including autoplay or infinite scroll ;
o Manipulated photographs or digital images;
o Consideration of best interests of minors when designing, developing, and providing services;
o Protections against harmful behaviors, such as bullying and threats of violence ; and
o Collection or sale of personal information of children, including biometrics and geolocation data.
Provide clear access to the following:
o Resources for law enforcement, suicide prevention, and domestic violence prevention services ;
o Protective measures such as screen time limitations and other parental settings ; and
o Reporting mechanisms related to harmful behaviors, such as bullying and threats of violence.
Require children to read and accept a disclaimer on the potential harms of using social media at log in.
The bill requires the above operating requirements to be on the social media platform’s Internet homepage, platform
user login page, or in a clearly labeled, conspicuous, and readily accessible link contained on such page.
The bill allows social media platforms to post a statement on their website confirming that it has complied with the
operating requirements. If a social media platform does not have such a statement on their website, then all K-12
schools operating in the state that accept state funding may not use or have an account on such platform.
The bill prohibits a public K-12 school from requiring students to participate in social media platforms related to
school-sponsored educational activities. Schools may still require student use of portal, email, and message board
accounts used for official business with the school, and allow classroom information, materials, or resources to be
viewed in a classroom on one screen controlled by instructional or administrative personnel of the school .
The bill will have no fiscal impact on state or local governments.
The bill provides an effective date of July 1, 2024.
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
Social Media Platforms
Generally, a social media platform is a computer-based technology that facilitates the sharing of ideas,
thoughts, and information through virtual networks and communities. Social media is Internet-based
and gives users quick electronic communication of content, such as personal information, videos, and
photos. Users engage with social media via a computer, tablet, or smartphone via web-based software
or applications.1
Effects of Social Media on Children
Social media has become an important aspect of a minor’s digital interactions, as they use it for
entertainment and communication purposes.2 Adolescents are constantly in touch with their peers via
social media accounts. However, social media has the potential to have both positive and negative
effects on their health.3 Some potential safety risks of social media use include:4
Exposure to harmful or inappropriate content.
Exposure to dangerous people.
Cyberbullying.
Oversharing personal information.
Exposure to excessive advertisements.
Privacy concerns, including the collection of data about minors.
Identity theft or being hacked.
Interference with sleep, exercise, homework, or family activities.
In May 2023, U.S. Surgeon General Dr. Vivek Murthy released an Advisory to call attention to the
effects of social media on youth mental health. The Advisory noted that at crucial periods of adolescent
brain development, social media use is predictive of decreases in life satisfaction, as well as additional
concerns around body image, sleep issues, and much more. 5 He has also concluded that 13 years old
is “too early” for children to use social media, despite most social media companies allowing 13-year-
olds to use their platforms. In early adolescence, kids are still “developing their identity, their sense of
self.”6
Other experts agree. For example, psychologist David Greenfield said the platforms lure users with
powerful tactics. One is “intermittent reinforcement,” which creates the idea that a user could get a
reward at any time, but when the reward comes is unpredictable. Adults are susceptible, but young
people are particularly at risk, because the brain regions that are involved in resisting temptation and
reward are not nearly as developed in children and teenagers as in adults. 7
1 Maya Dollarhide, Social Media: Definition, Effects, and List of Top Apps, Investopedia.com (Aug. 31, 2023),
https://www.investopedia.com/terms/s/social-media.asp (last visited Feb. 20, 2024).
2 Andrea Irmer & Florian Schmiedek, Associations b etween youth’s daily social media use and well-b eing are mediated b y upward
comparisons, Communications Psychology (Aug. 22, 2023), https://www.nature.com/articles/s44271-023-00013-0#citeas (last visited
Feb. 20, 2024).
3 Dollarhide, supra note 1.
4 Loyola Medicine, Social Media Safety for Kids and Teens, https://www.loyolamedicine.org/about-us/blog/social-media-safety-kids-
teens (last visited Feb. 20, 2024)
5 "Social Media and Youth Mental Health," The U.S. Surgeon General's Advisory, May 2023, availab le at
https://www.hhs.gov/sites/default/files/sg-youth-mental-health-social-media-advisory.pdf?ref=broadband-breakfast.ghost.io.
6 Lauraine Langreo, Surgeon General: Kids Under 14 Should Not Use Social Media, EducationWeek (Feb. 20, 2023),
https://www.edweek.org/leadership/surgeon-general-kids-under-14-should-not-use-social-media/2023/02 (last visited Jan. 31, 2024).
7 Matt Richtel, Is Social Media Addictive? Here’s What the Science Says, New York Times (Oct. 25, 2023),
https://www.nytimes.com/2023/10/25/health/social-media-addiction.html (last visited Feb. 20, 2024).
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Numerous studies and reports have demonstrated the dangers of social media use by children and
teens. For example:
One study conducted by social media and psychology scholars found a link between social
media use and poor mental health, especially among girls. The study demonstrated that girls
experience a consistent and substantial association between mental health and social media,
and such associations were stronger than links between mental health and binge drinking,
sexual assault, obesity, and hard drug use.8
o Dr. Jean Twenge, a generational trends scholar, saw the beginning of a mental health
crisis starting in 2012 when reviewing mental health metrics that showed rates of
depression, anxiety and loneliness were rising, which she points out coincides with the
fast rise in use of smartphones in 2012 and all the social media that comes along with
them.9
Another study found that social media use causes children to be more sensitive to anticipating
social risks. While children generally become more attuned to social interactions as they enter
adolescence, those who are frequent, early social media users become particularly sensitive to
anticipating social risks and rewards from their peers.10
o The researchers found that “habitual” social media users, or those who checked their
social feeds 15 times a day or more, responded quicker and more intensely to perceived
good or bad emotions from peers, compared to students who checked once a day or
less.11
A study on the effects of social media use on mental health during adolescent development
indicates that there are two windows of time when children are most sensitive to detrimental
effects of social media, and when higher estimated social media use predicts a decrease in life
satisfaction ratings a year later. For girls, the windows occur at ages 11 through 13, and 19; and
for boys, the windows occur at ages 14 through 15, and 19. 12
Social media also provides benefits to teens because it allows them to create online identities,
communicate with others, and build social networks, which can provide teens with valuable support,
especially helping those who experience exclusion. Social media can expose teens to current events,
allow them to interact across geographic barriers, and teach them about a variety of subjects, including
healthy behaviors. Also, social media that is humorous or provides a meaningful connection to peers
may help teens avoid depression.13
According to a study conducted by the Pew Research Center, teens credit social media for helping to
build stronger friendships and exposing them to a more diverse world, but they express concern that
these sites lead to drama and social pressure.14
Safety Measures and Parental Controls
8
Haidt, J., Rausch, Z., & Twenge, J., Social Media and Mental Health: A Collab orative Review, New York University,
https://jonathanhaidt.com/reviews/ (last visited Feb. 20, 2024).
9 Michaeleen Doucleff, The truth ab out teens, social media and the mental health crisis, NPR Health Shots (Apr. 25, 2023),
https://www.npr.org/s ections/health-shots/2023/04/25/1171773181/social-media-teens-mental-health (last visited Feb. 20, 2024).
10 Sarah D. Sparks, Preteens’’ Social Media Hab its Could Be Changing Their Brains, Education Week (Jan. 6, 2023),
https://www.edweek.org/leadership/preteens-social-media-habits-could-be-changing-their-brains/2023/01 (last visited Feb. 20, 2024);
Maria T. Maza et. al., Association of Hab itual Checking Behaviors on Social Media With Longitudinal Functional Brain Development,
JAMA Pediatrics (Jan. 3, 2023), https://jamanetwork.com/journals/jamapediatrics/article-abstract/2799812 (last visited Feb. 20, 2024).
11 Id.
12 Kirsten Weir, Social media b rings b enefits and risks to teens. Here’s how psychology can help identify a path forward , American
Psychological Association (Sep. 1, 2023), https://www.apa.org/monitor/2023/09/protecting-teens-on-social-
media#:~:text=During%20those%20windows%E2%80%94around%20 11,1649%2C%202022) (last visited Feb. 20, 2024).
13 Mayo Clinic Staff, Teens and social media use: What’s the impact?, Mayo Foundation for Medical Education and Research,
https://www.mayoclinic.org/healthy-lifestyle/tween-and-teen-health/in-depth/teens-and-social-media-use/art-20474437 (last visited Feb.
20, 2024).
14 Monica Anderson et. al., Connection, Creativity and Drama, Teen Life on Social Media in 2022, Pew Research Center (Nov. 16,
2022), https://www.pewresearch.org/internet/2022/11/16/connection-creativity-and-drama-teen-life-on-social-media-in-2022/ (last visited
Feb. 20, 2024).
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Providing children with information on ways to more safely use social media may decrease the harm
they experience. Having conversations about the benefits and risks of social media may help promote
positive social media usage.15
Also, parental controls can help protect children from inappropriate content, cyberbullying, and other
online safety issues. Generally, parental controls are a group of settings that put a parent in control of
what content a child can see.16 Many websites, games, software, devices, and user interfaces offer the
optional use of parental controls. Examples of parental controls include blocking websites, filtering
content, imposing limits on screen time, allowing parents to monitor online activity, location tracking,
and disabling Wi-Fi.17
Laws Protecting Children Online
Children’s Online Privacy Protection Act (COPPA)
The Children’s Online Privacy Protection Act (COPPA)18 and its related rules, is a federal law that
regulates websites’ collection and use of children’s information. The operator of a website or online
service that is directed to children, or that has actual knowledge that it collects children’s personal
information (covered entities), must comply with requirements regarding data collection and use,
privacy policy notifications, and data security.19
A covered entity may not collect personal information from a child under the age of 13 without the prior,
verifiable consent of his or her parent.20
COPPA requires covered entities to:21
• Give parents direct notice of their privacy policies, including a description of their data collection
and sharing practices;
• Post a clear link to their privacy policies on their home page and at each area of their website
where they collect personal information from children;
• Institute procedures to protect the personal information that they hold;
• Ensure that any third party with which they share collected personal information implements the
same protection procedures; and
• Delete children’s personal information after the purpose for its retention has been fulfilled.
Violations of COPPA are deemed an unfair or deceptive act or practice and may therefore be
prosecuted by the FTC. COPPA also authorizes state attorneys general to enforce violations that affect
residents of their states. There is no criminal prosecution or private right of action provided for under
COPPA.22
California Age-Appropriate Design Code Act
In 2022, California adopted the California Age-Appropriate Design Code Act (CAADCA),23 legislation
modelled on the United Kingdom’s Age Appropriate Design Code,24 which requires online platforms to
15 Dan Brennan M.D., How to Talk to Your Kids Ab out Social Media, WebMD.com (Apr. 9, 2023),
https://www.webmd.com/parenting/how-to-talk-to-kids-about-social-media (last visited Feb. 20, 2024).
16 Internetmatters.org, Parental Controls, https://www.internetmatters.org/parental-controls/ (last visited Feb. 20, 2024).
17 Caroline Knorr, Parents’ Ultimate Guide to Parental Controls, Common Sense Media (Mar. 9, 2021),
https://www.commonsensemedia.org/articles/parents -ultimate-guide-to-parental-controls (last visited Feb. 20, 2024).
18 16 C.F.R. pt. 312.
19 See 15 U.S.C. § 6502.
20 15 U.S.C. § 6502(a)-(b).
21 See Federal Trade Commission, Complying with COPPA: Frequently Asked Questions, https://www.ftc.gov/tips -advice/business-
center/guidance/complying-coppa-frequently-asked-questions-0 (last visited Feb. 20, 2024).
22 Id.
23 Cal. Civil Code § 1798.99.28-.35
24 5Rights Foundation, California follows UK lead as child data protection law is passed, https://5rightsfoundation.com/in-
action/california-follows-uk-lead-as-child-data-protection-law-is-passed.html (last visited Feb. 20, 2023).
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adhere to strict default privacy and safety settings that protect the best interest of children.25 CAADCA
covers children under 18 years of age.26
CAADCA requires certain businesses that provide an online service, product, or feature that is likely to
be accessed by children to comply with several new requirements and restrictions, including:27
Prohibitions on using any personal information that it knows or should know is materially
detrimental to a child’s physical or mental health and/or wellbeing; and
Prohibitions on obscuring user interface features to deliberately defeat consent or manipulate
children into providing unnecessary personal information, otherwise called “dark patterns.”
Such businesses must complete a Data Protection Impact Assessment for any new feature they wish to
offer to the public if it is likely to be accessed by children, which will determine if any dark patterns are
employed, if there is an asymmetrical reward, or if targeted advertisements are deployed in a way that
could harm or exploit children.28
On September 18, 2023, a federal district court enjoined the CAADCA despite the fact that California
has a substantial interest in protecting children because the CAADCA did not appropriately address
that interest.29
Required Instruction in Florida Schools
Under Florida’s Constitution, unless otherwise voted upon by electors, each county constitutes a school
district.30 In Florida, there are 67 school districts to match the 67 counties in the state. 31 The Florida
Constitution further states that each school district must have a school board composed of five or more
members.32 The school boards operate, control, and supervise all free public schools within the school
district and determine the rate of school district taxes within constitutional limits. 33 The powers and
duties of the district school board are further set forth in law. 34
The law requires each district school board to provide all courses required for middle grades promotion,
high school graduation, and appropriate instruction designed to ensure that students meet State Board
of Education adopted standards 35 in the following subject areas:
reading and other language arts;
mathematics;
science;
social studies;
foreign languages;
health and physical education; and
the arts.36
25 Office of Governor Gavin Newsome, Governor Newsom Signs First-in-Nation Bill Protecting Children’s Online Data and Privacy,
https://www.gov.ca.gov/2022/09/15/governor-newsom-signs-first-in-nation-bill-protecting-childrens-online-data-and-privacy/ (last visited
Feb. 20, 2024).
26 Cal. Civil Code § 1798.99.28-.35
27 Alexander Misakian, California Enacts the California Age-Appropriate Design Code Act, Foley Blogs (Sep. 20, 2022),
https://www.foley.com/insights/publications/2022/09/california-enacts-age-appropriate-design-code-act/ (last visited Feb. 20, 2024).
28 Id.
29
See NetChoice, LLC v. Bonta, No. 22-CV-0881-BLF, 2023 WL 6135551, at *11-20 (N.D. Cal. Sept. 18, 2023).
30 Art. IX, s. 4(a), Fla. Const.; s. 1001.30, F.S. Two or more contiguous counties, upon vote of the electors of each county pur suant to
law, may be combined into one school district.
31 Florida Department of Education, Pub lic Schools/Districts, https://web03.fldoe.org/Schools/schoolmap_text.asp (last visited Jan. 31,
2024). The Florida School for the Deaf and Blind, the Florida Virtual School, and the university laboratory schools are consi dered
independent school districts but their governing boards are not elected.
32 Art. IX, s. 4(a), Fla. Const.
33 Art. IX, s. 4(b), Fla. Const.
34 Ss. 1001.41–1001.42, F.S.
35 In 2020, the State Board of Education adopted new standards for English language arts and mathematics, called the Benchmarks for
Excellent Student Thinking (B.E.S.T.) Standards. The English language arts standards implementation began with the 2021 -2022
school year and implementation of the math standards began in the 2022 -2023 school year. Rule 6A-1.09401, F.A.C.
36 S. 1003.42(1)(a), F.S.
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In addition, the law identifies specific topics a teacher must teach. 37 One such topic is comprehensive
age-appropriate and developmentally appropriate K-12 instruction on health education that addresses
concepts of community health, consumer health, environmental health, and family life, including:
injury prevention and safety;
Internet safety;
nutrition;
personal health;
prevention and control of disease;
substance use and abuse; and
prevention of child sexual abuse, exploitation, and human trafficking. 38
Teachers must teach the topics specified in law efficiently and faithfully, using books and materials
meeting the highest standards for professionalism and historical accuracy, following the prescribed
courses of study, and employing approved methods of instruction.39 Unless otherwise specified, the law
generally does not prescribe grade level, instructional hours, or instructional materials requirements for
these topics.
While not required, an elective course on social media40 is available in CPALMS.41 A school may offer
this social media course to enable students in grades 9 through 12 to develop fundamental skills in the
use of social media across print, multimedia, web, and broadcast platforms, including ethical and legal
uses. The content of the elective course should include, but not be limited to, the following: 42
Demonstrating entry-level skills in digital communication and packaging them across the
platforms/mediums of print, multimedia, online, and broadcast;
Demonstrating fundamental skills in social media platforms and their uses; expressing social
connections with maturity and complexity appropriate to writer, audience, purpose, and context;
Using fundamental research skills and networking formats;
Collaborating amongst peers; and
Using effective listening, speaking, and viewing strategies with an emphasis on the use of
evidence to support or refute a claim in multimedia presentations, class discussions, and
extended text discussions.
Effect of the Bill
The bill defines “social media platform” or “platform” to mean a digital platform operating in the state
predominantly accessed by platform users who are under the age of 18 that offers forms of electronic
communication through which such platform users are permitted to create online communities to share
information, ideas, personal messages, and other content.
Beginning January 1, 2025, the bill requires social media platforms to:
Disclose the following social media platform policies, in a manner that is clearly, concisely,
prominently, and understandably written, using clear language suited to the age of users likely
to routinely access the platform without unrelated, confusing, or contradictory materials:
o The content moderation policies used by the social media platform for content on the
platform.
o Whether the social media platform uses or allows the use of addictive design or
deceptive pattern features including autoplay or infinite scroll.
o Whether the social media platform allows manipulated photographs or digital images to
be shared on the platform.
37 S. 1003.42(2)(a)-(t), F.S.
38 S. 1003.42(2)(n)1.a.-g., F.S.
39 S. 1003.42(2), F.S.
40 CPALMS, Course, Social Media 1 (#1006375), https://www.cpalms.org/PreviewCourse/Preview/17758, (last visited Feb. 20, 2024).
41 CPALMS is the State of Florida’s official source for standards information and course descriptions. It provides access to tho usands of
standards-aligned, free, and high-quality instructional/educational resources that have been developed specifical ly for the standards
and vetted through a rigorous review process. CPALMS, Ab out CPALMS, http://www.cpalms.org/CPALMS/about_us.aspx, (last visited
Feb. 20, 2024).
42 CPALMS, supra note 40.
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o Whether the social media platform considers the best interests of minors when
designing, developing, and providing services.
o The methodology the social media platform uses to consider the best interests of minors
when designing, developing, and providing services.
o The policies and protections used by the social media platform to protect against harmful
behaviors, such as bullying, harassment, and threats of violence or self-harm.
o Whether the platform collects or sells personal information of platform users who are
under the age of 18, including personal identifiers, biometrics, and geolocation data. If
such personal information is collected, the platform must disclose the type of personal
information is collected and the purpose for such, and if such personal information is
sold, the platform must disclose to whom the information is sold.
Provide clear access to the following:
o Zip code-based references to local resources for law enforcement, suicide prevention,
and domestic violence prevention services.
o Protective measures such as screen time limitations, data usage limitations, content
filters, and other parental settings.
o Reporting mechanisms related to harmful behaviors, such as bullying, harassment, and
threats of violence or self-harm
The bill requires the above operating requirements to be on the social media platform’s Internet
homepage or platform user login page or through a clearly labeled, conspicuous, and readily accessible
link contained on such page.
The bill requires, at the time of log in, and before obtaining access to the platform, a social media
platform to require platform users who are under the age of 18 to read and accept a disclaimer which
must be in substantially the following form:
This application may be harmful to your mental health and may use
design features that have addictive qualities or present unverified
information, or that may be manipulated by [insert platform name] or
others for your viewing. This application may also collect your personal
data to further manipulate your viewable content and may share your
personal data with others.
The bill prohibits a public K-12 school from:
Using or having an account on a social media platform that does not have a compliance
statement on its Internet homepage or platform user login page.
Requiring students, regardless of age, to register, enroll, or participate in a social media
platform as a means to access information, materials, or resources related to school-sponsored
educational activities.
Schools may still require student use of portal, email, and message board accounts used for official
business with the school, and classroom information, materials, or resources viewed in a classroom on
one screen controlled by instructional or administrative personnel of the school.
The bill provides an effective date of July 1, 2024.
B. SECTION DIRECTORY:
Section 1: Creates s. 501.174, F.S.; providing a definition; requiring social media platforms to
disclose specified policies and provide specified resources, measures, and disc laimers;
authorizing social media platforms to post specified compliance statements on their
Internet homepage or platform user login page; prohibiting certain schools from using or
having an account on certain social media platforms and from requiring students to
register, enroll, or participate in social media platforms for educational purposes;
providing applicability.
Section 2: Provides an effective date.
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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 require social media platforms to expend resources to develop standards and mechanisms
to comply with the bill.
D. FISCAL COMMENTS:
None.
III. COMMENTS
A. CONSTITUTIONAL ISSUES:
1. Applicability of Municipality/County Mandates Provision:
Not applicable. This bill does not appear to require counties or municipalities to spend funds or take
action requiring the expenditures of funds; reduce the authority that counties or municipalities have
to raise revenues in the aggregate; or reduce the percentage of state tax shared with counties or
municipalities.
2. Other:
State Authority to Regulate to Protect Minors
Commercial speech is expressions related solely to the economic interests of the speaker and its
audience.43 The Constitution accords a lesser protection to commercial speech than to other
constitutionally guaranteed expression,44 and permit governments to require warnings or disclaimers
in order to dissipate the possibility of consumer confusion or deception. 45 Under the standard for
commercial speech scrutiny, if a regulation restricts speech that is neither misleading nor related to
unlawful activity, the State must show “at least that the statute directly advances a substantial
government interest and that the measure is drawn to achieve that interest.” 46 The U.S. Supreme
43 Cent. Hudson Gas & Elec. Corp. v. Pub . Serv. Comm’n of New York , 447 U.S. 557, 561 (1980).
44 Id. at 557.
45 Bates v. State Bar of Arizona, 433 U.S. 350, 384 (1977).
46 Sorrell v. IMS Health Inc., 564 U.S. 552, 572 (2011).
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Court has determined that the state has a "compelling interest in protecting the physical and
psychological well-being of minors." 47 In doing so, however, a restriction must “directly advance the
state interest involved” and cannot be “more extensive than is necessary to serve that interest.” 48 A
restriction “directly and materially advances” the government’s interests if the government can show
“the harms it recites are real and that its restriction will in fact alleviate them to a material degree.” 49
B. RULE-MAKING AUTHORITY:
None.
C. DRAFTING ISSUES OR OTHER COMMENTS:
None.
IV. AMENDMENTS/COMMITTEE SUBSTITUTE CHANGES
Not applicable.
47 Sab le Commc’s of California, Inc. vs. F.C.C. , 492 U.S. 115, 126 (1989).
48 Cent. Hudson, 447 U.S. at 564-66 (1980).
49 Fla. Bar v. Went For It, Inc., 515 U.S. 618, 626 (1995).
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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 207 2024
1 A bill to be entitled
2 An act relating to social media protection for minors;
3 creating s. 501.174, F.S.; providing a definition;
4 requiring social media platforms to disclose specified
5 policies and provide specified resources, measures,
6 and disclaimers; authorizing social media platforms to
7 post specified compliance statements on their Internet
8 homepage or platform user login page; prohibiting
9 certain schools from using or having an account on
10 certain social media platforms and from requiring
11 students to register, enroll, or participate in social
12 media platforms for educational purposes; providing
13 applicability; providing an effective date.
14
15 Be It Enacted by the Legislature of the State of Florida:
16
17 Section 1. Section 501.174, Florida Statutes, is created
18 to read:
19 501.174 Social media protection for minors.-
20 (1) As used in this section, the term "social media
21 platform" or "platform" means a digital platform operating in
22 the state predominantly accessed by platform users who are under
23 the age of 18 that offers forms of electronic communication
24 through which such platform users are permitted to create online
25 communities to share information, ideas, personal messages, and
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HB 207 2024
26 other content.
27 (2) Beginning January 1, 2025, a social media platform, on
28 its Internet homepage or platform user login page or through a
29 clearly labeled, conspicuous, and readily accessible link on
30 such homepage or login page, must:
31 (a) Disclose the following social media platform policies
32 in a manner that is clearly, concisely, prominently, and
33 understandably written using language suited to the age of users
34 who are under the age of 18 likely to routinely access the
35 platform without unrelated, confusing, or contradictory
36 materials:
37 1. The content moderation policies the social media
38 platform uses for content on the platform.
39 2. Whether the social media platform uses or allows the
40 use of addictive design or deceptive pattern features, including
41 autoplay or infinite scroll.
42 3. Whether the social media platform allows manipulated
43 photographs or digital images to be shared on the platform.
44 4. Whether the social media platform considers the best
45 interests of platform users who are under the age of 18 when
46 designing, developing, and providing services.
47 5. The methodology the social media platform uses to
48 consider the best interests of platform users who are under the
49 age of 18 when designing, developing, and providing services.
50 6. The policies and protections the social media platform
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51 uses to protect platform users who are under the age of 18
52 against harmful behaviors, such as bullying, harassment, and
53 threats of violence or self-harm.
54 7. Whether the social media platform collects or sells
55 personal information of platform users who are under the age of
56 18, including personal identifiers, biometrics, and geolocation
57 data. If such personal information is collected, the platform
58 must disclose the type of personal information collected and the
59 purpose of such collection. If such personal information is
60 sold, the platform must disclose to whom the information is
61 sold.
62 (b) Provide clear access to the following:
63 1. Zip code-based references to local resources for law
64 enforcement, suicide prevention, and domestic violence
65 prevention services.
66 2. Protective measures such as screen time limitations,
67 data usage limitations, content filters, and other parental
68 settings.
69 3. Reporting mechanisms related to harmful behaviors, such
70 as bullying, harassment, and threats of violence or self-harm.
71 (3) At the time of log in, and before obtaining access to
72 the platform, a social media platform must require platform
73 users who are under the age of 18 to read and accept a
74 disclaimer which must be in substantially the following form:
75
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76 This application may be harmful to your mental health
77 and may use design features that have addictive
78 qualities or present unverified information or that
79 may be manipulated by [insert platform name] or others
80 for your viewing. This application may also collect
81 your personal data to further manipulate your viewable
82 content and may share your personal data with others.
83
84 (4) A social media platform that complies with subsections
85 (2) and (3) may post a statement confirming such compliance on
86 its Internet homepage or platform user login page.
87 (5) A public K-12 school may not:
88 (a) Use or have an account on a social media platform that
89 does not have a statement pursuant to subsection (4) on its
90 Internet homepage or platform user login page.
91 (b) Require students, regardless of age, to register,
92 enroll, or participate in a social media platform as a means to
93 access information, materials, or resources related to school -
94 sponsored educational activities. This paragraph does not apply
95 to portal, email, and message board accounts used for official
96 business with the school or to classroom information, materials,
97 or resources viewed in a classroom on one screen controlled by
98 instructional or administrative personnel of the school.
99 Section 2. This act shall take effect July 1, 2024.
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CS/HB 433
HOUSE OF REPRESENTATIVES STAFF ANALYSIS
BILL #: CS/HB 433 Employment Regulations
SPONSOR(S): Regulatory Reform & Economic Development Subcommittee, Esposito
TIED BILLS: IDEN./SIM. BILLS: CS/SB 1492
REFERENCE ACTION ANALYST STAFF DIRECTOR or
BUDGET/POLICY CHIEF
1) Regulatory Reform & Economic Development 9 Y, 4 N Thompson Anstead
Subcommittee
2) State Affairs Committee 14 Y, 6 N Mwakyanjala Williamson
3) Commerce Committee Thompson Hamon
SUMMARY ANALYSIS
The federal Fair Labor Standards Act (FLSA) provides workers with minimum wage, overtime pay, record
keeping, and child labor protections for full and part-time workers in both the public and private sectors. The
FLSA allows states to expand the rights of employers and employees. Florida generally follows federal law on
overtime pay and occupational health and safety.
The Florida Minimum Wage Act, enacted in 2005, implements the minimum wage provisions in the State
Constitution. Florida’s wage and employment benefits law preempts the establishment of a minimum wage to
the state. Thus, local governments cannot establish a minimum wage for private employers in their jurisdiction.
Local governments are also prohibited from requiring private employers to provide employment benefits not
required by state or federal law. However, local governments have limited authority to establish a minimum
wage and to require specific employment benefits for their own employees and those of their vendors or
contractors.
The Occupational Safety and Health Act of 1970 is the federal labor law governing occupational health and
safety in the private sector and federal government. Currently, there are no specific federal or state laws that
provide heat exposure protections for outdoor workers.
The bill:
Prohibits local governments from preferring one contractor over another based on the wages or
employment benefits provided by the contractor.
Removes the ability of local governments to require a minimum wage for certain employees under the
terms of a contract.
Expressly preempts the regulation of the terms and conditions of employment to the state.
Preempts the regulation of workplace heat exposure requirements to the state.
Clarifies that the preemption of workplace heat requirements does not limit the authority of a local
government to provide workplace heat exposure requirements for the employees of the local
government, and does not apply if compliance will prevent the local government from receiving federal
funds.
The bill does not appear to have a fiscal impact on state or local government.
The effective date of the bill is July 1, 2024.
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
Fair Labor Standards Act
The federal Fair Labor Standards Act (FLSA), enacted in 1938, provides covered workers with
minimum wage, overtime pay, and child labor protections. 1 In 1938, the FLSA established a minimum
wage of $.25 an hour. The current federal minimum wage rate is $7.25 an hour, which went into effect
July 24, 2009. The FLSA applies to employment within any state in the U.S., the District of Columbia, or
any territory or possession of the U.S.2
The FLSA covers most private and public sector employees. However, certain employers and
employees are exempt from coverage, including individuals with disabilities, youth workers, tipped
workers, and executive, administrative, and professional workers. The FLSA covers businesses if the
business has annual sales of at least $500,000. 3 It also covers certain individual employees if such
employee is engaged in interstate commerce.
The FLSA applies to all:4
Governments: Federal, state, or local government agencies.
Hospitals: Hospitals, or institutions primarily engaged in the care of the sick, the aged, or the
mentally ill or disabled who live on the premises. It does not matter if the hospital or institution is
public or private or is operated for profit or not-for-profit.
Schools: Pre-schools, elementary or secondary schools or institutions of higher learning (e.g.,
college), or a school for mentally or physically handicapped or gifted children. It does not matter
if the school or institution is public or private or operated for profit or not-for-profit.
The FLSA includes several exemptions from the federal minimum wage provisions, including: 5
Executive, administrative, and professional employees.
Employees in certain seasonal amusement or recreational establishments, employees in certain
small newspapers, seamen employed on foreign vessels, employees engaged in fishing
operations, and employees engaged in newspaper delivery.
Farm workers employed by certain employers.
Casual babysitters and persons employed as companions for the elderly or infirm.
Border patrol agents.6
Baseball players who are compensated pursuant to a contract that provides for a weekly salary
for services performed during the league’s championship season at a rate that is not less than a
weekly salary equal to the minimum wage.
The FLSA was amended in 2014, concerning border patrol agents, and again in 2018, to exempt minor
league baseball players who are paid at least $290 per week during the 2018 championship season
1 29 U.S.C. § 201-219 and 29 C.F.R. ch. V.
2 Congressional Research Service, CRS Report R42713, The Fair Labor Standards Act (FLSA): An Overview,
https://crsreports.congress.gov/product/pdf/R/R42713, (last visited Dec. 5, 2023). (The main FLSA provisions and accompanying
Department of Labor (DOL) regulations constitute what is commonly known as federal wage and hour laws and federal child labor
law.).
3 The size of an enterprise is measured by its “annual sales or business done.” Annual sales or business done includes all business
activities that can be measured in dollars. Thus, retailers are covered by the FLSA if their annual sales are at least $500,000. Owners
of rental properties are covered if they collect at least $500,000 annually in rent. 29 C.F.R.§§779.258-779.259.
4 U.S. Department of Labor, Fair Labor Standards Act Advisor, https://webapps.dol.gov/elaws/whd/flsa/scope/screen10.asp, (last
visited Dec. 5, 2023).
5 29 U.S.C. § 213. (It also includes separate exemptions from overtime pay.)
6 See Border Patrol Agent Pay Reform Act of 2014, S.1691, 113th Cong, (2014).
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from the federal minimum wage rate and overtime pay.7 These two amendments were the only
amendments made to the minimum wage exemptions provisions of the FLSA since Florida passed its
minimum wage law in 2005.8
The FLSA provides that if states enact worker protections, including minimum wage rates, that are
more protective of employees than what is provided by the FLSA, the state law applies. 9 Consequently,
no state law may weaken the worker protections in the FLSA. However, state laws that impose greater
worker protections will supersede those in the FLSA.10
Thirty states plus Washington DC, Guam, Puerto Rico, and the Virgin Islands provide a minimum wage
greater than the federal minimum wage. Thirteen states provide a minimum wage that is equal to the
federal minimum wage. Five states have not adopted a minimum wage and two states have a minimum
wage that is below the federal minimum wage.11 For those seven states, the federal minimum wage
applies, but only to those workers covered by the FLSA.
Article X, Section 24 of the Florida Constitution
On November 2, 2004, Floridians voted to amend the Florida Constitution by adding a minimum wage
provision (Section 24) that established the state minimum wage. 12 Prior to this date, Florida did not
have a state minimum wage so the FLSA applied for covered workers. Section 24 provides the amount
of the minimum wage and the procedure for calculating increases in the minimum wage. 13 The
amendment also provides that “all working Floridians are entitled to be paid a minimum wage sufficient
to provide a decent and healthy life, that protects their employers from unfair low wage competition,
and that does not force them to rely on taxpayer-funded public services.”14
On November 3, 2020, Florida voters again approved a constitutional amendment related to the state’s
minimum wage, Amendment 2, to gradually increase the state’s minimum wage to $15 an hour by the
year 2026.15 Pursuant to the passage of Amendment 2, on September 30, 2021, Florida’s minimum
wage increased to $10 per hour. Each year, thereafter, Florida’s minimum wage will increase by $1
until the minimum wage reaches $15 per hour on September 30, 2026. 16 Beginning in 2027, the
minimum wage will be adjusted annually for inflation, as it had been done from 2004 to 2021.
7 See Levi Weaver, On Minor-League Pay, MLB’s Stance Doesn’t Line Up with the Facts, The Athletic (Apr. 4, 2018),
https://www.theathletic.com/293189/%202018/04/04/on-minor-league-pay-mlbs-stance-doesnt-line-up-with-the-facts// (last visited
Dec. 5, 2023). (When recounting salary scale per level of minor league baseball, the article notes “federally -recognized poverty line is
$12,140 per year for single-individual households.” According to the article, a not-insignificant percentage of minor league players are
able to subsidize their relatively meager monthly salaries by drawing upon the signing bonuses they received from their MLB c lubs
when first entering the professional ranks. These bonuses can range anywhere from $10,000 to several million dollars. “The top 64
picks [in the MLB draft] last year all received a bonus of over $1,000,000 before taxes, but roughly 40% of players signed for one-
time bonuses of $10,000 or less.”
8 S. 448.110, F.S., expressly references ss. 213 and 214 of the FLSA, which address minimum wage exemptions and employment
under special certificates, respectively. However, s. 214 has not been amended since 1989. (See Pub. L. 101–157, § 4(d), Nov. 17,
1989, 103 Stat. 941).
9 29 U.S.C. §218.
10 Congressional Research Service, CRS Report R42713, The Fair Labor Standards Act (FLSA): An Overview, Updated March 8,
2023, https://crsreports.congress.gov/product/pdf/R/R42713, (last visited Dec. 5, 2023).
11 U.S. Department of Labor, Consolidated Minimum Wage Table, https://www.dol.gov/agencies/whd/mw-consolidated (last visited
Dec. 5, 2023).
12 Art. X, s. 24, Fla. Const.
13 Art. X, s. 24(c), Fla. Const.
14 Art. X, s. 24(a), Fla. Const.
15 U.S. Department of State, Notice of Increase to State of Florida’s Minimum Wage, https://www.state.gov/wp-
content/uploads/2021/01/2021-01-29-Notice-FL-M inimu m-Wage-Increase.pdf (last visited Dec. 5, 2023).
16 Department of Economic Opportunity, Florida’s Minimum Wage, https://floridajobs.org/docs/default-source/business-growth-and-
partnerships/for-employers/posters-and-required-notices/2022-minimum-wage/2022-florida-minimu m-wage-
announcement.pdf?sfvrsn=961754b0_2 (last visited Dec. 5, 2023).
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The Florida Constitution references the FLSA and specifically ties the meaning 17 of “employer,”
“employee,” and “wage,” to the meanings established under the FLSA and its implementing
regulations.18 It also indicates that case law, administrative interpretations, and other guiding standards
developed under the federal FLSA must guide the construction of Florida’s Constitution related to
Section 24 and any implementing statutes or regulations. 19
Florida Minimum Wage Act
The Florida Minimum Wage Act (Act) was enacted in 2005 to implement the minimum wage provisions
in the Florida Constitution.20 The Act designates the Department of Commerce (DC) as the state
agency that implements the minimum wage requirements, establishes procedures with respect to civil
actions alleging violations, and provides that it is the exclusive remedy under state law for violations of
Section 24.21
The Act provides that, effective May 2, 2005, employers are required to pay employees a minimum
wage at an hourly rate of $6.15 for all hours worked in Florida. Only those individuals entitled to receive
the federal minimum wage under the FLSA and its implementing regulations are eligible to receive the
state minimum wage pursuant to the Florida Constitution and this statute. The provisions of ss. 213 and
214 of the federal FLSA, as interpreted by applicable federal regulations and implemented by the
Secretary of Labor, are incorporated by reference.22
Local Wage Ordinances
The Florida Constitution authorizes counties to enact ordinances that are not inconsistent with state
law,23 while municipalities are authorized to enact ordinances on any subject that state law may
address, except:24
The subjects of annexation, merger, and exercise of extraterritorial power;
Any subject expressly prohibited by the Florida Constitution;
Any subject expressly preempted to state or county government by the Florida Constitution or
by law; or
Any subject preempted to a county under a county charter.
In 2003, the Legislature preempted the establishment of minimum wages to the state. 25 However, a
political subdivision (local government) 26 retains the authority to establish a minimum wage other than a
state or federal minimum wage or to provide employment benefits not otherwise required under state or
federal law for:27
Its employees;
The employees of an employer contracting to provide goods or services for the local
government, or for the employees of a subcontractor of such an employer, under the terms of a
contract with the local government; or
17 In re Advisory Opinion to the Atty. Gen. re Fla. Minimum Wage Amend ., 880 So. 2d 636, 641–42 (Fla. 2004). (“The proposed
amendment does not state that it is adopting the FLSA's definition of the term “employee,” but provides that it is adopting the meaning
of the term “employee,” which is a much broader concept.”)
18 Art. X, s. 24(b), Fla. Const.
19 Art. X, s. 24(f), Fla. Const.
20 Ch. 2005-353, Laws of Fla., codified in s. 448.110, F.S.
21 S. 448.110(10), F.S. HB 5 (2023) renames the Department of Economic Opportunity as the Department of Commerce; SB 82
(2024), section 220, makes this conforming change in the Florida Minimum Wage Act.
22 S. 448.110(3), F.S.
23 S. 1(f) and (g), Art. VIII, Fla. Const.; see also s. 125.01, F.S.
24 S. 2(b), Art. VIII, Fla. Const.
25 S. 218.077(2), F.S. See s. 18(a) of the federal Fair Labor Standards Act of 1938, as amended, 29 U.S.C. s. 218:
No provision of [the Fair Labor Standards Act] or of any order thereunder shall excuse noncompliance with any Federal or Stat e law
or municipal ordinance establishing a minimum wage higher than the minimu m wage established under [the federal act].
26 “Political subdivision” is defined to mean a county, municipality, department, commission, district, board, or other public b ody,
whether corporate or otherwise, created by or under state law. S. 218.077(1)(f), F.S.
27 S. 218.077(3)(a), F.S.
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The employees of an employer receiving a direct tax abatement or subsidy from the local
government, as a condition of the direct tax abatement or subsidy.
The preemption also does not apply to “a domestic violence or sexual abuse ordinance, order, rule, or
policy adopted by a political subdivision.”28
The law contains an exception for situations where compliance would prevent a local government from
receiving federal funds. This allows compliance with the Davis-Bacon and related acts,29 which direct
the federal Department of Labor to determine fair wages for contractors and subcontractors working on
public buildings and public works. Florida law only allows non-compliance with regard to local minimum
wage alterations to the extent necessary to allow receipt of federal funds.30
Additionally, local governments are prohibited from requiring an employer to provide employment
benefits 31 not required by state or federal law. “
Despite these provisions, in 2016, the City of Miami Beach enacted a local ordinance establishing a
minimum hourly wage significantly exceeding the current Florida minimum wage. The ordinance
applied to all employers operating within the city. The ordinance, which was scheduled to take effect on
January 1, 2018, established both a local minimum wage of $10.31 an hour and annual increases to
$13.31 an hour effective January 2021. Subsequently, the ordinance was challenged on the grounds
that it was preempted by state law and Florida’s Third District Court of Appeals struck down the
ordinance.
The court held that the Florida Constitution authorizes the Legislature to preempt municipal powers by
statute. The court also rejected the city’s principal argument that Art. X, s. 24 of the Florida
Constitution, raising the state minimum wage, made the statute unconstitutional. In 2018, the Florida
Supreme Court agreed to take up the case.32 However, in 2019, the Florida Supreme Court issued an
order that discharged jurisdiction over the case. As a result, the Third District’s decision invalidating
Miami Beach’s local wage ordinance appears to currently stand. 33
Workplace Heat Exposure
The Occupational Safety and Health Act of 1970 (OSH Act) is the federal labor law governing
occupational health and safety in the private sector and federal government. 34 Under the OSH Act, two
federal agencies are responsible for promoting occupational safety and health in the United States. The
National Institute for Occupational Safety and Health (NIOSH) conducts research and recommends
occupational safety and health standards.35 The Occupational Safety and Health Administration
(OSHA)36 is responsible for the promulgation and enforcement of standards. 37
28 S. 218.077(3)(b), F.S.
29 See, e.g., 40 U.S.C. 3141 et seq. The Davis-Bacon Act is a federal law that regulates prevailing wage rates on public works projects.
The Act provides that all laborers and mechanics working on con struction projects which are funded by the federal government shall
not be paid a wage less than prevailing wage, as specified by the U.S. Department of Labor, in the locality in which work is
performed.
30 S. 218.077(4), F.S.
31 “Employment benefits” is defined to mean anything of value that an employee may receive from an employer in addition to wages
and salary. The term includes, but is not limited to, health benefits; disability benefits; death benefits; group accidental death and
dismemberment benefits; paid or unpaid days off for holidays, sick leave, vacation, and personal necessity; retirement benefits; and
profit-sharing benefits. S. 218.077(1)(d), F.S.
32 City of Miami Beach v. Florida Retail Federation, Inc., 233 So.3d 1236 at 1238 (Fla. 3d DCA 2017) (declined for review February
5, 2019).
33 JDSUPRA, Can Cities Set a Local Minimum Wage? Florida Supreme Court Says No (Feb. 14, 2019),
https://www.jdsupra.com/legalnews/can-cities-set-a-local-minimu m-wage-67192/ (last visited Dec. 5, 2023).
34 Occupational Safety and Health Act of 1970, Pub. L. No. 91-596, 84 STAT. 1590, 91st Cong. (Jan. 1, 2004).
35 29 U.S.C. § 671.
36 See Occupational Safety and Health Administration, About Osha, https://www.osha.gov/aboutosha (last visited Dec. 5, 2023).
37 29 U.S.C. § 655.
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Currently, there are no specific laws in Florida that provide heat exposure protections for outdoor
workers. NIOSH and OSHA provide certain recommendations that employers provide heat exposure
protections.
In 2013, NIOSH published a document entitled “Preventing Heat-related Illness or Death of Outdoor
Workers,” which recommends that employers have a plan in place to prevent heat-related illness. The
plan should include hydration (drinking plenty of water), acclimatization (getting used to weather
conditions), and schedules that alternate work with rest. It recommends that employers should also
train workers about the hazards of working in hot environments.38
OSHA does not currently have any specific heat exposure standards. In the absence of a specific
standard, OSHA is authorized to enforce the “general duty clause” of the OSH Act, which requires each
employer to provide a workplace that is free of “recognized hazards” causing or likely to cause “death
or serious physical harm” to its employees.39
In 2011, OSHA launched a heat illness prevention campaign that includes guidance to employers and
employees, a smartphone app that provides location-specific information on heat conditions and heat
exposure prevention and first aid, and educational materials such as posters and pamphlets in English,
Spanish, and other languages.40
On October 27, 2021, OSHA published an Advanced Notice of Proposed Rulemaking (ANPRM) for a
potential standard on Heat Injury and Illness Prevention in Outdoor and Indoor Work Settings. 41 OSHA
solicited public comments on the ANPRM through January 26, 2022, and received over 1,000
comments on the ANPRM.
In March 2021, OSHA cited Valley Produce Harvesting and Hauling Company for a willful violation of
the general duty clause by exposing sugar cane harvesting employees in Florida to “excessive heat,
elevated temperature working conditions, direct sun radiation and thermal stress” while working
outdoors in September 2020. OSHA assessed the maximum allowable civil monetary penalty of
$136,532 for this violation, which was later reduced through an informal settlement with the employer to
$81,919.20. The citation provides, “the employer did not furnish employment and a place of
employment which were free from recognized hazards that were causing or likely to cause death or
serious physical harm to employees in that employees were exposed to excessive heat, elevated
temperature working conditions, direct sun radiation and thermal stress.”42
In April 2022, OSHA began a National Emphasis Program (NEP) of enforcement of the general duty
clause and compliance assistance to focus on indoor and outdoor heat exposure. The NEP expands on
OSHA’s ongoing heat-related illness prevention initiative and campaign by creating a targeted
enforcement component and reiterating its compliance assistance and outreach efforts. This approach
is intended to encourage early interventions by employers to prevent illnesses and deaths among
workers during high heat conditions, such as working outdoors in a local area experiencing a heat wave
as announced by the National Weather Service. Early interventions include, but are not limited to,
implementing water, rest, shade, training, and acclimatization procedures for new or returning
employees.43
Local Heat Regulation
On November 11, 2023, the Miami-Dade County Board of County Commissioners considered a
proposal that would require construction and agriculture companies with five or more employees to
38 NIOSH 1986, 2008, 2010; OSHA-NIOSH 2011.
39 29 U.S.C. § 654.
40 Occupational Safety and Health Administration, Heat Illness Prevention, https://www.osha.gov/heat/ (last visited Dec. 5, 2023).
41 86 FR 59309.
42 Occupational Safety and Health Administration, Violation Detail,
https://www.osha.gov/ords/imis/establishment.violation_detail?id=1495595.015&citation_id=02001 (last visited Dec. 5, 2023).
43 Occupational Safety and Health Administration, OSHA Instruction,
https://www.osha.gov/sites/default/files/enforcement/directives/CPL_03-00-024.pdf (last visited Dec. 5, 2023).
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guarantee workers access to water and give them 10-minute breaks in the shade every two hours on
days when the heat index equals or exceeds 95 degrees Fahrenheit. The proposal would also require
employers to train workers to recognize the signs of heat illness, administer first aid, and call for help in
an emergency. Enforcement includes a warning, fines of up to $2,000 per day per violation, and
debarment of contractors from county work for certain repeated violations and unpaid penalties.44
Consideration of the proposal has been deferred until March. 45 Some South Florida employers have
expressed that they already provide such protections and Miami-Dade County would be the first local
government in the nation to adopt such requirements.
Preemption
Florida law recognizes two types of preemption: express and implied. Express preemption requires a
specific legislative statement; it cannot be implied or inferred. 46 To expressly preempt a subject area,
the Legislature must use clear statutory language stating its intention to do so.47 Implied preemption
occurs when the Legislature has demonstrated an intent to preempt an area, though not expressly.
Florida courts find implied preemption when “the legislative scheme is so pervasive as to evidence an
intent to preempt the particular area, and where strong public policy reasons exist for finding such an
area to be preempted by the Legislature.”48
Where state preemption applies, a local government may not exercise authority in that area. 49 Whether
a local government ordinance or other measure violates preemption is ultimately decided by a court. If
a local government improperly enacts an ordinance or other measure on a matter preempted to the
state, a person may challenge the ordinance by filing a lawsuit. A court ruling against the local
government may declare the preempted ordinance void.50
Effect of Proposed Changes
Wage and Employment Benefits
The bill amends Florida’s wage and employment benefits law by providing that a political subdivision
may not:
Maintain a minimum wage, other than a state or federal minimum wage.
Seek to control or affect the wages or employment benefits provided by its vendors, contractors,
service providers, or other parties doing business with the political subdivision through its
purchasing or contracting procedures.
Use evaluation factors, qualification of bidders, or otherwise award preferences on the basis of
wages or employment benefits provided by its vendors, contractors, service providers, or other
parties doing business with the political subdivision.
The bill removes the ability of local governments to require a minimum wage for certain employees
under the terms of a contract.
Regulation of Labor
The bill expressly preempts the regulation of the terms and conditions of employment to the state. The
bill provides that unless expressly authorized by special or general law, a county, municipality, special
district, or political subdivision may not adopt or enforce an ordinance, order, rule, or policy providing
44 Miami-Dade Legislative Item, File Number: 231773.
45 Miami Herald, After industry pressure, Miami-Dade puts heat protections for outdoor workers on ice,
https://www.miamiherald.co m/news/local/environ ment/article281487003.ht ml (last visited Dec. 6, 2023).
46 See City of Hollywood v. Mulligan, 934 So. 2d 1238, 1243 (Fla. 2006); Phantom of Clearwater, Inc. v. Pinellas County, 894 So. 2d
1011, 1018 (Fla. 2d DCA 2005).
47 Mulligan, 934 So. 2d at 1243.
48 Tallahassee Mem. Reg. Med. Ctr., Inc. v. Tallahassee Med. Ctr., Inc., 681 So. 2d 826, 831 (Fla. 1st DCA 1996).
49 D’Agastino v. City of Miami, 220 So. 3d 410 (Fla. 2017); Judge James R. Wolf and Sarah Harley Bolinder, The Effectiveness of
Home Rule: A Preemptions and Conflict Analysis, 83 Fla. B.J. 92 (June 2009).
50 See, e.g., Nat’l Rifle Ass’n of Am., Inc. v. City of S. Miami, 812 So. 2d 504 (Fla. 3d DCA 2002).
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any term or condition of employment that exceeds or conflicts with the requirements of federal or state
law relating to any term or condition of employment. The bill provides that an ordinance, order, rule, or
policy that violates this provision is void and unenforceable.
This appears to limit local government from regulating employment in any way, including having certain
requirements for its own employees that are different from the state or federal law, unless those
regulations are authorized by general or special law.
Workplace Heat Exposure Requirements
In addition to the preemption for all conditions of employment, the bill preempts the regulation of
workplace heat exposure requirements to the state, and specifically indicates that the provision applies
retroactively. Specifically, the bill provides that any local law, ordinance, resolution, regulation, rule,
code, policy, or charter amendment adopted before, on, or after the effective date of this act which
conflicts with this provision is void and prohibited.
The bill requires the DC to adopt rules relating to workplace heat exposure requirements if OSHA has
not done so by July 1, 2028. The rules must be consistent with the standards of OSHA in effect at the
time the DC adopts its rules, and modified as necessary to reflect workplace heat exposure
considerations specific to the state. The Legislature must ratify such rules before they take effect.
The bill prohibits local governments from:
Mandating or otherwise imposing heat exposure requirements on an employer, an employee, a
contractor, or a subcontractor.
Considering or seeking information relating to a contractor's or subcontractor's heat exposure
requirements in any procurement for goods or services.
The bill provides that it does not:
Limit the authority of a local government to mandate or impose workplace heat exposure
requirements for the employees of the local government.
Apply if it is determined that compliance would prevent the distribution of federal funds to a local
government or would otherwise be inconsistent with federal requirements pertaining to receiving
federal funds, but only to the extent necessary to allow a local government to receive federal
funds or to eliminate the inconsistency with federal requirements.
The bill provides the following definitions:
“Contractor” means an employer contracting with, or seeking to contract with, a local
government to provide goods or services to, for the benefit of, or on behalf of the local
government.
“Employee” means a natural person, including a self-employed person, who receives any type
of compensation or remuneration for providing services to an employer.
“Employer” means a person who hires or contracts for the services of employees.
“Heat exposure requirement” means a standard mandated or otherwise imposed on employers,
employees, contractors, or subcontractors to control an employee's exposure to heat or sun, or
to otherwise address or moderate the effects of such exposure. The term includes, but is not
limited to, standards relating to all of the following:
o Employee monitoring and protection.
o Water consumption.
o Cooling measures.
o Acclimatization and recovery periods or practices.
o Posting or distributing notices or materials relating to heat exposure which inform
employees how to protect themselves from such exposure.
o Implementation and maintenance of heat exposure programs or training.
o Appropriate first-aid measures or emergency responses related to heat exposure.
o Protections for employees who report that they have experienced excessive heat
exposure.
o Reporting and recordkeeping requirements.
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“Local government” means a county, municipality, department, commission, district, board, or
other public body, whether corporate or otherwise, created by or under state law.
“Subcontractor” has the same meaning as in s. 448.095(1), F.S., which includes a person or an
entity that provides labor, supplies, or services to or for a contractor or another subcontractor in
exchange for salary, wages, or other remuneration.
B. SECTION DIRECTORY:
Section 1: Amends s. 218.077, F.S., relating to wage and employment benefits requirements by
political subdivisions; restrictions.
Section 2: Creates s. 448.077, F.S., relating to regulation of labor preempted to state.
Section 3: Amends s. 448.106, F.S., relating to workplace heat exposure requirements;
preemption; rulemaking.
Section 4: Provides an effective date of July 1, 2024.
II. FISCAL ANALYSIS & ECONOMIC IMPACT STATEMENT
A. FISCAL IMPACT ON STATE GOVERNMENT:
1. Revenues:
None.
2. Expenditures:
None.
B. FISCAL IMPACT ON LOCAL GOVERNMENTS:
1. Revenues:
None.
2. Expenditures:
None.
C. DIRECT ECONOMIC IMPACT ON PRIVATE SECTOR:
The bill may have an indeterminate fiscal impact on the private sector to the extent that the
preemptions supersede local ordinances. The bill may:
Prevent businesses from losing local government contracts based on wages or employment
benefits that they do not currently offer.
Allow businesses that contract with local governments to pay their employees as they see fit.
Prevent businesses from being required to provide costly terms and conditions of employment.
Prevent businesses from being required to provide costly workplace heat exposure protections.
Prevent workers from earning a wage that allows them to live in the area that they work.
Create a negative fiscal impact for employers who provide workers’ compensation insurance for
their employees.
D. FISCAL COMMENTS:
None.
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III. COMMENTS
A. CONSTITUTIONAL ISSUES:
1. Applicability of Municipality/County Mandates Provision:
Not applicable. This bill does not appear to require counties or municipalities to spend funds or take
action requiring the expenditures of funds; reduce the authority that counties or municipalities have
to raise revenues in the aggregate; or reduce the percentage of state tax shared with counties or
municipalities.
2. Other:
None.
B. RULE-MAKING AUTHORITY:
The bill requires the DC to adopt rules relating to workplace heat exposure requirements if OSHA has
not done so by July 1, 2028.
C. DRAFTING ISSUES OR OTHER COMMENTS:
None.
IV. AMENDMENTS/COMMITTEE SUBSTITUTE CHANGES
On January 11, 2024, the Regulatory Reform & Economic Development Subcommittee adopted a
Proposed Committee Substitute (PCS) and reported the bill favorably as a committee substitute. The PCS:
Prohibited local governments from preferring one contractor over another based on wages or
employment benefits.
Removed the ability of local governments to require a minimum wage for certain contracted
employees under the terms of a contract.
Preempted all regulation of the terms and conditions of employment to the state.
Preempted the regulation of workplace heat exposure requirements to the state.
Provided clarifying language regarding the:
o Authority of a local government to mandate or impose workplace heat exposure
requirements for its employees; and
o Exception for the distribution of federal funds to a local government.
This analysis is drafted to the committee substitute as passed by the Regulatory Reform & Economic
Development Subcommittee.
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F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
CS/HB 433 2024
1 A bill to be entitled
2 An act relating to employment regulations; amending s.
3 218.077, F.S.; prohibiting political subdivisions from
4 maintaining a minimum wage other than a state or
5 federal minimum wage; prohibiting political
6 subdivisions from controlling, affecting, or awarding
7 preferences based on the wages or employment benefits
8 of entities doing business with the political
9 subdivision; revising applicability; creating s.
10 448.077, F.S.; preempting the regulation of the terms
11 and conditions of employment to the state; providing
12 that, unless expressly authorized, an ordinance, an
13 order, a rule, or a policy that exceeds or conflicts
14 with state or federal law relating to a term or
15 condition of employment is void and unenforceable;
16 creating s. 448.106, F.S.; providing definitions;
17 preempting the regulation of heat exposure
18 requirements in the workplace to the state; providing
19 that certain local laws, ordinances, resolutions,
20 regulations, rules, codes, policies, and amendments
21 are void and prohibited; requiring the Department of
22 Commerce to adopt rules relating to workplace heat
23 exposure requirements if the Occupational Safety and
24 Health Administration has not done so by a date
25 certain; providing requirements for such rules;
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26 prohibiting local governments from mandating or
27 imposing certain requirements or seeking information
28 from certain persons relating to certain requirements;
29 providing construction and applicability; providing an
30 effective date.
31
32 Be It Enacted by the Legislature of the State of Florida:
33
34 Section 1. Subsection (2) and paragraph (a) of subsection
35 (3) of section 218.077, Florida Statutes, are amended to read:
36 218.077 Wage and employment benefits requirements by
37 political subdivisions; restrictions.—
38 (2)(a) Except as otherwise provided in subsection (3), a
39 political subdivision may not establish, mandate, maintain, or
40 otherwise require an employer to pay a minimum wage, other than
41 a state or federal minimum wage, to apply a state or federal
42 minimum wage to wages exempt from a state or federal minimum
43 wage, or to provide employment benefits not otherwise required
44 by state or federal law.
45 (b) A political subdivision may not through its purchasing
46 or contracting procedures seek to control or affect the wages or
47 employment benefits provided by its vendors, contractors,
48 service providers, or other parties doing business with the
49 political subdivision.
50 (c) A political subdivision may not through the use of
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51 evaluation factors, qualification of bidders, or otherwise award
52 preferences on the basis of wages or employment benefits
53 provided by its vendors, contractors, service providers, or
54 other parties doing business with the political subdivision.
55 (3) This section does not:
56 (a) Limit the authority of a political subdivision to
57 establish a minimum wage other than a state or federal minimum
58 wage or to provide employment benefits not otherwise required
59 under state or federal law:
60 1. For the employees of the political subdivision; or
61 2. For the employees of an employer contracting to provide
62 goods or services for the political subdivision, or for the
63 employees of a subcontractor of such an employer, under the
64 terms of a contract with the political subdivision; or
65 2.3. For the employees of an employer receiving a direct
66 tax abatement or subsidy from the political subdivision, as a
67 condition of the direct tax abatement or subsidy.
68 Section 2. Section 448.077, Florida Statutes, is created
69 to read:
70 448.077 Regulation of labor preempted to the state.—The
71 regulation of the terms and conditions of employment is
72 expressly preempted to the state. Unless expressly authorized by
73 special or general law, a county, municipality, special
74 district, or political subdivision of the state may not adopt or
75 enforce an ordinance, an order, a rule, or a policy providing a
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76 term or condition of employment that exceeds or conflicts with
77 the requirements of state or federal law relating to a term or
78 condition of employment. An ordinance, an order, a rule, or a
79 policy that violates this section is void and unenforceable.
80 Section 3. Section 448.106, Florida Statutes, is created
81 to read:
82 448.106 Workplace heat exposure requirements; preemption;
83 rulemaking.—
84 (1) As used in this section, the term:
85 (a) "Contractor" means an employer contracting with, or
86 seeking to contract with, a local government to provide goods or
87 services to, for the benefit of, or on behalf of the local
88 government.
89 (b) "Employee" means a natural person, including a sel f-
90 employed person, who receives any type of compensation or
91 remuneration for providing services to an employer.
92 (c) "Employer" means a person who hires or contracts for
93 the services of employees.
94 (d) "Heat exposure requirement" means a standard mandated
95 or otherwise imposed on employers, employees, contractors, or
96 subcontractors to control an employee's exposure to heat or sun,
97 or to otherwise address or moderate the effects of such
98 exposure. The term includes, but is not limited to, standards
99 relating to all of the following:
100 1. Employee monitoring and protection.
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101 2. Water consumption.
102 3. Cooling measures.
103 4. Acclimatization and recovery periods or practices.
104 5. Posting or distributing notices or materials relating
105 to heat exposure which inform employees how to protect
106 themselves from such exposure.
107 6. Implementation and maintenance of heat exposure
108 programs or training.
109 7. Appropriate first-aid measures or emergency responses
110 related to heat exposure.
111 8. Protections for employees who report that they have
112 experienced excessive heat exposure.
113 9. Reporting and recordkeeping requirements.
114 (e) "Local government" means a county, municipality,
115 department, commission, district, board, or other public body,
116 whether corporate or otherwise, created by or under state law.
117 (f) "Subcontractor" has the same meaning as in s.
118 448.095(1).
119 (2)(a) The regulation of workplace heat exposure
120 requirements is preempted to the state. Any local law,
121 ordinance, resolution, regulation, rule, code, policy, or
122 charter amendment adopted before, on, or after the effective
123 date of this act which conflicts with this section is void and
124 prohibited.
125 (b) If the Occupational Safety and Health Administration
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126 has not adopted by rule requirements regulating workplace hea t
127 exposure by July 1, 2028, the Department of Commerce must adopt
128 by rule statewide workplace heat exposure requirements. Such
129 rules must be consistent with the standards of the Occupational
130 Safety and Health Administration in effect at the time the
131 Department of Commerce adopts its rules, and modified as
132 necessary to reflect workplace heat exposure considerations
133 specific to this state. The Legislature must ratify such rules
134 before they take effect.
135 (3) Except as otherwise provided in this section, a loc al
136 government may not:
137 (a) Mandate or otherwise impose heat exposure requirements
138 on an employer, an employee, a contractor, or a subcontractor.
139 (b) Consider or seek information relating to a
140 contractor's or subcontractor's heat exposure requirements i n
141 any procurement for goods or services.
142 (4) This section does not limit the authority of a local
143 government to mandate or impose workplace heat exposure
144 requirements for the employees of the local government.
145 (5) This section does not apply if it is determined that
146 compliance with this section will prevent the distribution of
147 federal funds to a local government or would otherwise be
148 inconsistent with federal requirements pertaining to receiving
149 federal funds, but only to the extent necessary to allow a local
150 government to receive federal funds or to eliminate the
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151 inconsistency with federal requirements.
152 Section 4. This act shall take effect July 1, 2024.
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COMMERCE COMMITTEE
HB 433 by Rep. Esposito
Employment Regulations
AMENDMENT SUMMARY
February 22, 2024
Amendment 1 by Rep. Esposito (lines 70-79):
• Clarifies that a county, municipality, special district, or political subdivision of the state
may adopt and enforce an ordinance, an order, a rule, or a policy providing employment
benefits, as defined in s. 218.077, for the employees of the county, municipality, special
district, or political subdivision that exceeds state or federal law.
COMMITTEE/SUBCOMMITTEE AMENDMENT
Bill No. CS/HB 433 (2024)
Amendment No. 1
COMMITTEE/SUBCOMMITTEE ACTION
ADOPTED (Y/N)
ADOPTED AS AMENDED (Y/N)
ADOPTED W/O OBJECTION (Y/N)
FAILED TO ADOPT (Y/N)
WITHDRAWN (Y/N)
OTHER
1 Committee/Subcommittee hearing bill: Commerce Committee
2 Representative Esposito offered the following:
3
4 Amendment (with title amendment)
5 Remove line 79 and insert:
6 policy that violates this section is void and unenforceable.
7 However, a county, municipality, special district, or political
8 subdivision of the state may adopt and enforce an ordinance, an
9 order, a rule, or a policy providing employment benefits, as
10 defined in s. 218.077, for the employees of the county,
11 municipality, special district, or political subdivision that
12 exceeds state or federal law.
13
14 -----------------------------------------------------
15 T I T L E A M E N D M E N T
16 Remove line 15 and insert:
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Published On: 2/21/2024 5:44:07 PM
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COMMITTEE/SUBCOMMITTEE AMENDMENT
Bill No. CS/HB 433 (2024)
Amendment No. 1
17 condition of employment is void and unenforceable;
18 providing an exception;
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CS/HB 497
HOUSE OF REPRESENTATIVES STAFF ANALYSIS
BILL #: CS/HB 497 Continuing Education Requirements
SPONSOR(S): Regulatory Reform & Economic Development Subcommittee, Melo and others
TIED BILLS: IDEN./SIM. BILLS:
REFERENCE ACTION ANALYST STAFF DIRECTOR or
BUDGET/POLICY CHIEF
1) Regulatory Reform & Economic Development 13 Y, 0 N, As CS Herrera Anstead
Subcommittee
2) State Administration & Technology 13 Y, 0 N Helpling Topp
Appropriations Subcommittee
3) Commerce Committee Herrera Hamon
SUMMARY ANALYSIS
The Department of Business and Professional Regulation (DBPR), through several divisions, regulates and
licenses various businesses and professions in Florida. Each profession is regulated by an individual practice
act and by ch. 455, F.S., which provide regulatory and licensure authority. Generally, to act as a regulated
professional, a person must hold an appropriate license. Applicants for licensure for each profession must
meet specific statutory requirements, including education and/or experience requirements, and must pay all
applicable licensing and application fees. Licensees who wish to renew their license must pay a license
renewal fee and may be subject to continuing education requirements and other conditions in the various
practice acts.
A board, or DBPR in the absence of a board, may provide by rule that distance learning may be used to satisfy
continuing education requirements. However, a board or DBPR must approve distance learning courses as an
alternative to classroom courses to satisfy continuing education requirements for persons licensed to engage
in community association management services, home inspection services, mold-related services, real estate
services (i.e., brokers, sales associates, and schools), and real estate appraisal services. In addition, for these
specified professions, a board or DBPR may not require centralized examinations for completion of continuing
education requirements.
The bill requires that a board, or DBPR in the absence of a board, must allow distance learning as an
alternative to classroom courses for satisfying continuing education requirements.
Additionally, the bill requires professional boards, or DBPR if there is no board, to exempt an individual from
completing the continuing education required for renewal of a license for a renewal period if:
The individual holds an active license issued by the board or DBPR to practice the profession;
The individual has continuously held the license for at least 10 years; and
No disciplinary action is imposed on the individual’s license.
The bill requires DBPR and relevant boards to adopt rules to implement these provisions. The bill grants DBPR
authority to enact emergency rules to streamline procedures for exempting eligible individuals from continuing
education, with these rules effective for 6 months and renewable during the process of adopting permanent
rules. This provision expires on January 1, 2026.
The bill may have an indeterminate, insignificant negative fiscal impact on state government. See Fiscal
analysis and Economic Impact Statement.
The bill provides an effective date of July 1, 2024.
This docum ent does not reflect the intent or official position of the bill sponsor or House of Representatives .
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FULL ANALYSIS
I. SUBSTANTIVE ANALYSIS
A. EFFECT OF PROPOSED CHANGES:
Department of Business and Professional Regulation
Professional Licensure
The Department of Business and Professional Regulation (DBPR), through several divisions, regulates
and licenses various businesses and professions in Florida.1
DBPR has authority over the following professional boards and programs:
• Board of Architecture and Interior Design;
• Board of Auctioneers;
• Barbers’ Board;
• Building Code Administrators and Inspectors Board;
• Construction Industry Licensing Board;
• Board of Cosmetology;
• Electrical Contractors’ Licensing Board;
• Board of Employee Leasing Companies;
• Board of Landscape Architecture;
• Board of Pilot Commissioners;
• Board of Professional Geologists;
• Board of Veterinary Medicine;
• Home inspection services licensing program;
• Mold-related services licensing program;
• Florida Board of Professional Engineers;
• Board of Accountancy;
• Florida Real Estate Commission; and
• Florida Real Estate Appraisal Board.2
Each profession is regulated by an individual practice act and by ch. 455, F.S., which provide
regulatory and licensure authority. Generally, to act as a regulated professional, a person must hold an
appropriate license. Applicants for licensure for each profession must meet specific statutory
requirements, including education and/or experience requirements, and must pay all applicable
licensing and application fees.3 Licensees who wish to renew their license must pay a license renewal
fee4 and may be subject to continuing education requirements 5 and other conditions in the various
practice acts.
Powers and Duties of DBPR
Chapter 455, F.S., applies to the regulation of professions constituting “any activity, occupation,
profession, or vocation regulated by [DBPR] in the Divisions of Certified Public Accounting,
Professions, Real Estate, and Regulation.” 6 The chapter also provides the procedural and
administrative framework for those divisions and the professional boards within DBPR. 7
The term “profession” means any activity, occupation, profession, or vocation regulated by DBPR in the
Divisions of Certified Public Accounting, Professions, Real Estate, and Regulation. 8
1 S. 20.165, F.S.
2 S. 20.165(1)-(4), F.S.
3 S. 455.201, F.S.
4 S. 455.203, F.S.
5 S. 455.2123, F.S.
6 Section 455.01(6), F.S.
7 See s. 455.203, F.S. DBPR must also provide legal counsel for boards within DBPR by contracting with the Department of Legal
Affairs, by retaining private counsel, or by staff counsel of DBPR. See s. 455.221(1), F.S.
8 S. 455.01(6), F.S.
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DBPR’s regulation of professions is to be undertaken “only for the preservation of the health, safety,
and welfare of the public under the police powers of the state.” 9 Regulation is required when:
The potential for harming or endangering public health, safety, and welfare is recognizable and
outweighs any anticompetitive impact that may result;
The public is not effectively protected by other state statutes, local ordinances, federal
legislation, or other means; and
Less restrictive means of regulation are not available. 10
However, DBPR and its boards may not create a regulation that has an unreasonable effect on job
creation or job retention or a regulation that unreasonably restricts the ability of those desiring to
engage in a profession or occupation from finding employment. 11
Ch. 455, F.S., provides the general powers of DBPR and sets forth the procedural and administrative
framework for all of the professional boards housed under DBPR as well as the Divisions of Certified
Public Accounting, Professions, Real Estate, and Regulation. 12
When a person is authorized to engage in a profession or occupation in Florida, DBPR issues a
“permit, registration, certificate, or license” to the licensee. 13 DBPR has the authority to charge license
fees and license renewal fees.14 Each board within DBPR must determine by rule the amount of license
fees for each profession, based on estimates of the required revenue to implement the regulatory laws
affecting the profession.15
However, the general licensing provisions for professions were revised for Fiscal Years 2023-2024 and
2024-2025,16 to direct DBPR to waive a portion of certain license fees for the professions regulated
under ch. 455, F.S., as follows:
50 percent of the initial licensing fee for those applying for an initial license, up to $200 per year
per license; and
50 percent of the license renewal fee for those renewing licenses, up to $200 per year per
license.
The fee waivers may not include any applicable unlicensed activity or background check fees.
Continuing Education Course Requirements
A board, or DBPR in the absence of a board, may provide by rule that distance learning may be used to
satisfy continuing education requirements. However, a board or DBPR must approve distance learning
courses as an alternative to classroom courses to satisfy continuing education requirements for
persons licensed to engage in community association management services,17 home inspection
services,18 mold-related services,19 real estate services (i.e., brokers, sales associates, and schools), 20
and real estate appraisal services.21 In addition, for these specified professions, a board or DBPR may
not require centralized examinations for completion of continuing education requirements.
9 S. 455.201(2), F.S.
10 Id.
11 S. 455.201(4)(b), F.S.
12
See s. 455.203, F.S. DBPR must also provide legal counsel for boards within DBPR by contracting with the Department of Legal
Affairs, by retaining private counsel, or by providing DBPR staff counsel. See s. 455.221(1), F.S.
13 S. 455.01(4) and (5), F.S.
14 S. 455.203 and 455.213, F.S.
15 S. 455.219(1), F.S.
16 See s. 455.213(15), F.S. For Fiscal Year 2023-2024, the sum of $50 million in nonrecurring funds was appropriated from the General
Revenue Fund to DBPR to implement the fee waiver, with any unexpended funds to be used during Fiscal Year 2024 -2025 for the
same purpose. See ch. 2063-68, Laws of Fla.
17 See part VIII of ch. 468, F.S.
18 See part XV of ch. 468, F.S.
19 See part XVI of ch. 468, F.S.
20 See part I of ch. 475, F.S.
21 See part II of ch. 475, F.S.
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However, the following boards have no continuing education requirements:22
Board of Auctioneers 23
Talent Agencies 24
Athlete Agents 25
Board of Employee Leasing Companies 26
Board of Professional Geologists 27
The terms “distance learning” and “distance-learning” are not defined in ch. 455, F.S., or elsewhere in
the Florida Statutes as of the date of this analysis. However, a rule adopted by the Florida Real Estate
Appraisal Board provides the term “distance education” means “education that takes place when the
learner is separated from the source of instruction by time and/or distance.” 28
Renewal and Proration of Continuing Education Courses
A board, or DBPR in the absence of a board, has the authority to prorate continuing education for new
licensees as follows:
Half of the required continuing education for an applicant who becomes licensed with more than
half of the renewal period remaining.
No continuing education requirement for any applicant who becomes licensed with half or less
than half of the renewal period remaining.
Effect of the Bill
The bill requires that a board, or DBPR in the absence of a board, must allow distance learning as an
alternative to classroom courses for satisfying continuing education requirements.
Additionally, the bill requires professional boards, or DBPR if there is no board, to exempt an individual
from completing the continuing education required for renewal of a license for a renewal period if:
The individual holds an active license issued by the board or DBPR to practice the profession;
The individual has continuously held the license for at least 10 years; and
No disciplinary action is imposed on the individual’s license.
The exemption from continuing education requirements in the bill does not apply to engineers regulated
under ch. 471, certified public accountants regulated under ch. 473, brokers, broker associates, and
sales associates regulated under part I of ch. 475, appraisers regulated under part II of ch. 475,
architects or interior designers regulated under part I of ch. 481, and contractors regulated under ch.
489, F.S.
The bill requires that DBPR and each relevant board adopt rules, as outlined in ss. 120.536(1) and
120.54, F.S., to implement the provisions of this section
The bill grants DBPR rulemaking authority to adopt emergency rules for the purpose of implementing
the amendment made by the bill, including streamlining procedures for exempting eligible individuals
22 DBPR, Agency Analysis of 2024 SB 382, p. 2 (Nov. 21, 2023).
23 Ch. 468, Part VI, F.S.
24 Ch. 468, Part VII, F.S.
25
Ch. 468, Part IX, F.S.
26 Ch. 468, Part XI, F.S.
27 Ch. 492, F.S.
28 In addition, the Florida Real Estate Commission (FREC) has issued its Distance Education Checklist at
http://www.myfloridalicense.com/dbpr/re/documents/frec_distance_ed_chk_list.pdf (last visited Jan. 31, 2024), which lists the
information required to be submitted by education providers seeking to offer FREC educational courses via distance education. The
Checklist provides “[d]istance learning necessitates a high level of self-direction and should, therefore, require students to read, conduct
research, complete timed exams and similar assignments, designed to measure the student’s competency relative to the required
subject matter objectives.” See also other rules referencing similar but undefined terms, such as Fla. Admin. Code R. 64B15 -13.001 (a
Board of Osteopathic Medicine rule that provides “CME courses may be obtained in any format, including in a distance learning format,
provided that the format includes an ability to interact with the presenter of the course;” and Fla. Admin. Code R. 61G4 -18.001, (a
Construction Industry Licensing Board rule that requires “at least 14 classroom or interactive distance learning hours of continuing
education in one or more courses from a continuing education provider approved by the Board.”).
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from completing continuing education. These emergency rules will be effective for 6 months, renewable
during the adoption of permanent rules. This provision expires on January 1, 2026.
The bill provides an effective date of July 1, 2024.
B. SECTION DIRECTORY:
Section 1: Amends s. 455.2123, F.S., relating to continuing education.
Section 2: Amends s. 455.2124, F.S., relating to proration of or not requiring continuing education.
Section 3: Creates rulemaking authority under s. 120.54(4), F.S., for the Department of Business
and Professional Regulation.
Section 4: Providing an effective date of July 1, 2024.
II. FISCAL ANALYSIS & ECONOMIC IMPACT STATEMENT
A. FISCAL IMPACT ON STATE GOVERNMENT:
1. Revenues:
None.
2. Expenditures:
The bill may have an indeterminate effect on state government expenditures because DBPR must
assess license holders for disciplinary actions before each profession's renewal cycles to determine
which licensees must fulfill continuing education (CE) requirements for renewal. This assessment
will influence CE renewal notifications, as well as the functioning of the Versa Regulation (VR) and
Versa Online (VO) systems, and renewal processing. However, DBPR believes any potential
effects could be managed within existing resources. 29
Moreover, the fiscal impact on the service operations division remains indeterminate. The CE
exemption for eligible licenses is expected to decrease call volumes to the Customer Contact
Center during peak renewal periods. However, the precise number of potentially exempted
licensees who historically contacted the Customer Contact Center regarding CE reporting to the
department cannot be determined at this time.30
B. FISCAL IMPACT ON LOCAL GOVERNMENTS:
1. Revenues:
None.
2. Expenditures:
None.
C. DIRECT ECONOMIC IMPACT ON PRIVATE SECTOR:
The fiscal impact on the private sector is indeterminate. Continuing education providers may
experience a decrease in revenue because of licensees being exempt from continuing education
requirements if certain requirements are met. While, licensees may experience a decrease in
expenditures as a result of being able to complete more continuing education via distance learning, as
well as being exempt from continuing education requirements if certain requirements are met.
D. FISCAL COMMENTS:
None.
29 DBPR, Agency Analysis of 2024 SB 382, p. 7 (Nov. 21, 2023).
30 Id.
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III. COMMENTS
A. CONSTITUTIONAL ISSUES:
1. Applicability of Municipality/County Mandates Provision:
Not Applicable. This bill does not appear to affect county or municipal governments.
2. Other:
None.
B. RULE-MAKING AUTHORITY:
The bill requires rulemaking by DBPR and the affected board, and authorizes emergency rulemaking
by DBPR pending the adoption of permanent rules to implement the exemption from continuing
education requirements granted to eligible licensees.
C. DRAFTING ISSUES OR OTHER COMMENTS:
DBPR recommends that the following professions be excluded from the provisions of the bill, so that
the affected licensees will be kept informed of laws, rules, and industry advancements to protect the
health, safety, and welfare of the public, and the portability of such licensing for use in other
jurisdictions will be maintained31:
Certified Public Accountants 32;
Veterinary Medicine;
Landscape Architecture;
Cosmetology and Barbers;
Building Code Administrators and Inspectors;
Community Association Managers; and
Construction Contractors.
IV. AMENDMENTS/COMMITTEE SUBSTITUTE CHANGES
On February 6, 2024, the Regulatory Reform and Economic Development Subcommittee considered the bill,
adopted an amendment, an amendment to the amendment, and reported the bill favorably as a committee
substitute. The amendment makes the following changes:
Removed provisions related to medical boards or departments regulated by the Department of Health.
Exempted the following professionals from the provisions that allow professional licensees with more
than 10 years’ experience to skip continuing education requirements:
o Brokers, broker associates and sales associates, in addition to engineers, CPA’s, appraisers,
interior designers, and contractors, which are already exempted in this bill.
Granted DBPR rulemaking authority to adopt emergency rules for the purpose of implementing the
amendment made by the bill.
Made technical changes.
The analysis is drafted to the committee substitute as passed by the Regulatory Reform and Economic
Development Subcommittee.
31 Id. at 9.
32 DBPR’s General Counsel’s Office indicates that 30 to 40 percent of prosecutions of certified public accountants (CPAs) involve the
failure to meet continuing education requirements, so the elimination of the continuing education requirement for CPAs who h ave held
active licenses continuously for at least 10 years with no disciplinary action imposed on the license could result in fewer violations and
prosecutions. Id. at 10.
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F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
CS/HB 497 2024
1 A bill to be entitled
2 An act relating to continuing education requirements;
3 amending s. 455.2123, F.S.; requiring, rather than
4 authorizing, a board, or the Department of Business
5 and Professional Regulation when there is no board, to
6 allow by rule that distance learning may be used to
7 satisfy continuing education requirements; revising
8 the requirements that such continuing education must
9 satisfy; amending s. 455.2124, F.S.; requiring the
10 board, or the department when there is no board, to
11 exempt certain individuals from completing their
12 continuing education requirements; providing
13 applicability; requiring the department and each
14 affected board to adopt rules; authorizing the
15 department to adopt emergency rules; specifying time
16 in which such emergency rules are effective;
17 authorizing renewal of such emergency rules in certain
18 circumstances; providing for the expiration of such
19 rulemaking authority; providing an effective date.
20
21 Be It Enacted by the Legislature of the State of Florida:
22
23 Section 1. Section 455.2123, Florida Statutes, is amended
24 to read:
25 455.2123 Continuing education.—A board, or the department
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26 when there is no board, shall allow may provide by rule that
27 distance learning may be used to satisfy continuing education
28 requirements. A board, or the department when there is no board,
29 shall approve distance learning courses as an alternative to
30 classroom courses to satisfy continuing education requirements.
31 A board, or the department when there is no board, provided for
32 in part VIII, part XV, or part XVI of chapter 468 or part I or
33 part II of chapter 475 and may not require centralized
34 examinations for completion of continuing education requirements
35 for the professions licensed under part VIII, part XV, or part
36 XVI of chapter 468 or part I or part II of chapter 475.
37 Section 2. Section 455.2124, Florida Statutes, is amended
38 to read:
39 455.2124 Proration of or not requiring continuing
40 education.—
41 (1) A board, or the department when there is no board,
42 may:
43 (a)(1) Prorate continuing education for new licensees by
44 requiring half of the required continuing education for any
45 applicant who becomes licensed with more than half the renewal
46 period remaining and no continuing education for any applicant
47 who becomes licensed with half or less than half of the renewal
48 period remaining; or
49 (b)(2) Require no continuing education until the first
50 full renewal cycle of the licensee.
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51
52 These options shall also apply when continuing education is
53 first required or the number of hours required is increased by
54 law or the board, or the department when there is no board.
55 (2)(a) A board, or the department when there is no board,
56 shall exempt an individual from completing the continuing
57 education required for renewal of a license for a renewal period
58 if:
59 1. The individual holds an active license issued by the
60 board or the department to practice the profession.
61 2. The individual has continuously held the license for at
62 least 10 years.
63 3. Disciplinary action has not been imposed on the
64 individual's license.
65 (b) This subsection does not apply to:
66 1. Engineers regulated by chapter 471;
67 2. Certified public accountants regulated by chapter 473;
68 3. Brokers, broker associates, and sales associates
69 regulated by part I of chapter 475;
70 4. Appraisers regulated by part II of chapter 475;
71 5. Architects or interior designers regulated by part I of
72 chapter 481; or
73 6. Contractors regulated by chapter 489.
74 (3) The department and each affected board shall adopt
75 rules pursuant to ss. 120.536(1) and 120.54 to implement this
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76 section.
77 Section 3. (1) The Department of Business and
78 Professional Regulation is authorized, and all conditions are
79 deemed to be met, to adopt emergency rules pursuant to s.
80 120.54(4), Florida Statutes, for the purpose of implementing the
81 amendments made by this act to s. 455.2124, Florida Statutes,
82 including establishing procedures to facilitate the exemption
83 for eligible individuals from completing continuing education.
84 (2) Notwithstanding any other law, emergency rules adopted
85 pursuant to subsection (1) are effective for 6 months after
86 adoption and may be renewed during the pendency of procedures to
87 adopt permanent rules addressing the subject of the emergency
88 rules.
89 (3) This section expires on January 1, 2026.
90 Section 4. This act shall take effect July 1, 2024.
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CS/HB 611
HOUSE OF REPRESENTATIVES STAFF ANALYSIS
BILL #: CS/HB 611 Public Deposits
SPONSOR(S): State Administration & Technology Appropriations Subcommittee, Botana
TIED BILLS: IDEN./SIM. BILLS: SB 1018
REFERENCE ACTION ANALYST STAFF DIRECTOR or
BUDGET/POLICY CHIEF
1) Insurance & Banking Subcommittee 15 Y, 2 N Fletcher Lloyd
2) State Administration & Technology 8 Y, 5 N, As Perez Topp
Appropriations Subcommittee CS
3) Commerce Committee Fletcher Hamon
SUMMARY ANALYSIS
Unless exempted by law, state and local governments are required to deposit public funds in a qualified public
depository (QPD) pursuant to the Florida Security for Public Deposits Act, ch. 280, F.S. (Act). The Act is
administered by the Chief Financial Officer (CFO) and the Department of Financial Services (DFS).
Before a QPD accepts or retains a public deposit, it must deposit collateral with an approved custodian in an
amount commensurate with the amount of public deposits held and the financial stability of the QPD. Currently,
banks, savings banks, and savings associations are the only types of financial institutions eligible to be a QPD
or a custodian for another QPD’s pledged collateral.
The bill:
Allows state-chartered and federally-chartered credit unions to become QPDs and custodians for
another QPD’s pledged collateral;
Provides criteria a credit union must meet before the CFO can designate the credit union as a QPD;
Requires credit union QPDs to make the same attestations required of other QPDs;
Creates separate mutual responsibility and contingent liability provisions for credit union QPDs to
prevent banks from sharing liability with credit unions in the event of a credit union QPD’s default or
insolvency, and vice versa; and
Requires the CFO to segregate and separately account for any collateral proceeds, assessments, or
administrative penalties attributable to a credit union from those attributable to any banks, savings
bank, or savings association.
The bill may have a significant fiscal impact on DFS. See Fiscal Impact on State Government section. The bill
has an indeterminate fiscal impact on local governments and the private sector.
The bill provides an effective date of July 1, 2024.
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
Public Depositories
Pursuant to the Florida Security for Public Deposits Act, ch. 280, F.S. (Act), and unless exempted therein,
state and local governments are required to deposit public funds in a qualified public depository (QPD). 1 A
QPD is any bank, savings bank, or savings association that:
is organized and exists under the laws of the United States, the laws of this state, or any other state
or territory of the United States (i.e., state or federally chartered);
has its principal place of business in this state or has a branch office in this state which is
authorized under Florida or federal laws to receive deposits in this state;
has deposit insurance under the provision of the Federal Deposit Insurance Act, as amended;2
has procedures and practices for accurate identification, classification, reporting, and
collateralization of public deposits;
meets all the requirements of the Act; and
has been designated by the Chief Financial Officer (CFO) as a QPD. 3
Upon approval from the CFO, these banks, savings banks, and savings associations may accept “public
deposits” from state and local governments. The Act does not permit credit unions to become QPDs, due
to their absence from the definition of “qualified public depository.” As of December 1, 2023, there are
approximately 117 active QPDs in this state.4
Before a QPD can accept or retain a public deposit, the QPD must deposit collateral with an approved
custodian in an amount commensurate with the amount of public deposits held and the financial stability of
the QPD.5 The Act’s collateral requirements protect public deposits against loss in the event of certain
triggering events, most notably, a QPD’s insolvency or default. 6 Losses are satisfied first through the
standard maximum federal deposit insurance of $250,000, 7 and then through the CFO’s demand for
payment under letters of credit or the sale of collateral pledged or deposited by the defaulting QPD. Any
shortfall would then be covered by the CFO’s authority to impose assessments against the other solvent
QPDs, who must agree to share mutual responsibility and contingent liability as a condition of acting as a
QPD.8
A “custodian” can be the CFO or any state or federally chartered bank, savings association, or trust
company approved by the CFO to hold collateral pledged by QPDs to secure public deposits. 9 Collateral
may be pledged, deposited or issued using the following collateral agreements as approved the CFO to
meet the requisite collateral:
regular custody arrangement for collateral pledged to the CFO, subject to certain requirements; 10
Federal Reserve Bank custody arrangement for collateral pledged to the CFO, subject to certain
requirements;11
1 S. 280.03(1)(b), F.S.
2 12 U.S.C. ss. 1811 et seq.
3 S. 280.02(26), F.S.
4 Email from Parker Powell, Deputy Director of Legislative Affairs, Department of Financial Services, RE: HB 3
Attestations (Dec. 1, 2023).
5 S. 280.04, F.S. See also ch. 69C-2, F.A.C.
6 S. 280.041(6), F.S.
7 12 U.S.C. § 1821(a)(1)(E).
8 S. 280.07, F.S.
9 Ss. 280.02(10) and 280.041(1)(a), F.S.
10 S. 280.041(1)(a), F.S.
11 S. 280.041(1)(b), F.S.
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CFO’s custody arrangement for collateral deposited in the CFO’s name, subject to certain
requirements;12
Federal Home Loan Bank letter of credit arrangement for collateral issued with the CFO as
beneficiary, subject to certain requirements.13
DFS oversees the Act’s reporting and collateral pledging requirements through its public deposits program
and Bureau of Collateral Management.14 The CFO has authority to act against noncompliant QPDs, as well
as financial institutions that accept public deposits without a certificate of qualification from the CFO. 15 In
the event of loss to public depositors, the CFO has the authority to oversee the payment of losses. 16
Required Attestation
Under the Act, QPDs are required to attest, under penalty of perjury and on a form prescribed by the CFO,
whether the entity is in compliance with s. 280.02(26)(e) and (f).17 Specifically, QPDs must attest that:
The QPD makes determinations about the provision of services or the denial of services based on
an analysis of risk factors unique to each customer or member; 18 and
The QPD does not engage in the unsafe and unsound practice of denying or canceling its services
to a person, or otherwise discriminating against a person in making available such services or in
the terms or conditions of such services, on the basis of:
o The person’s political opinions, speech, or affiliations;
o Except as otherwise provided in law, the person’s religious beliefs, religious exercise, or
religious affiliations;
o Any factor if it is not a quantitative, impartial, and risk-based standard, including any such
factor related to the person’s business sector; or
o The use of any rating, scoring, analysis, tabulation, or action that considers a social credit
score based on certain enumerated factors.19
Regulation of Credit Unions
Like banks, savings banks, and savings associations, credit union accept deposits and make loans, and
can be state-chartered or federally-chartered:
State-chartered credit unions may be formed under the Florida Credit Union Act (FCUA), which
became law in 1980.20 The FCUA provides that “[a] credit union is a cooperative, nonprofit
association, organized . . . for the purposes of encouraging thrift among its members, creating
sources of credit at fair and reasonable rates of interest, and providing an opportunity for its
members to use and control their resources on a democratic basis in order to improve their
economic and social condition.”21 State-chartered credit unions have both a state regulator, the
Office of Financial Regulation, and a federal regulator, the National Credit Union Association
(NCUA).
Federally-chartered credit unions are chartered under the Federal Credit Union Act of 1934 22 and
are regulated by the NCUA.
In addition to regulating both state-chartered and federally-chartered credit unions, the NCUA also
operates and manages the National Credit Union Share Insurance Fund (NCUSIF), which insures share
(deposit) accounts for members of all federally-chartered credit unions and most state-chartered credit
12 S. 280.041(1)(c), F.S.
13 S. 280.041(1)(d), F.S.
14 Ch. 80-258, Laws of Fla.; codified at ch. 657, F.S.
15 S. 280.05, F.S.
16 Id. at (10).
17 S. 280.025, F.S.
18 S. 280.02(26)(e), F.S.
19 S. 280.02(26)(f), F.S.
20 Ch. 80-258, Laws of Fla.; codified at ch. 657, F.S.
21 S. 657.003, F.S.
22 Public Law 73-467, codified at 12 U.S.C. § 1751 et seq.
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unions.23 All state-chartered credit unions operating in Florida must carry NCUSIF insurance. 24 The
standard maximum share insurance amount is $250,000. 25
Effect of the Bill
The bill makes state-chartered and federally-chartered credit unions eligible to become QPDs and
custodian for another QPD’s pledged collateral. Specifically, the bill creates s. 280.042, F.S., which
provides criteria that a credit union must meet before the CFO can designate a credit union as a QPD.
Credit unions are limited to a maximum of 15 percent of all QPDs. Credit unions may hold public deposits,
but are limited to holding no more than 10 percent of their total assets. These criteria are designed to
protect public deposits.
Attestation Required
Beginning July 1, 2024, the bill requires credit union QPDs to make the same attestations required of other
QPDs relating to the provision of services based on risk factors unique to each customer and the unsafe
and unsound practice of denying or canceling services on the basis of environmental, social, or
governance factors.
Collateral Agreements
The bill requires a credit union QPD to submit its agreement of contingent liability and its collateral
agreement to the CFO and meet the following requirements:
The credit union must submit a signed statement from a public depositor (i.e., a state or local
government) indicating that, if the credit union is designated as a QPD, the public depositor intends
to deposit public funds with the credit union; and
There are at least four other credit unions that are designated as QPDs or have applied to be
designated as QPDs and have submitted an agreement of contingent liability, a collateral
agreement, and a signed statement from a public depositor of intent to deposit public funds with the
credit union.
The CFO must withdraw from a collateral agreement previously entered into with a credit union if, during
any 90 calendar days, the combined total of the number of credit unions designated as QPDs and the
number of eligible credit unions applying to be designated as QPDs is less than five. As a result of the
CFO’s withdrawal, the credit union loses its designation as a QPD, and must within 10 days after the
CFO’s notification of such withdrawal, return all public deposits that the credit union holds to the public
depositor who deposited the funds. Additionally, the CFO may limit the amount of public deposits any one
credit union may hold in order to make sure that no single credit union holds an amount of public deposits
that might adversely affect the integrity of the public deposits program.
Shared Contingent Liability
In order to prevent credit unions from sharing contingent liability with banks, and vice versa, the bill creates
separate mutual responsibility and contingent liability provisions for credit unions. Any credit union that is
designated as a QPD and that is not insolvent must guarantee public depositors against loss caused by the
default or insolvency of other credit unions that are designated as QPDs.
In the event of a default or insolvency of a credit union QPD, any loss to public depositors would be
satisfied through any applicable share insurance and then through demanding payment under letters of
credit or the sale of collateral pledged or deposited by the defaulting depository. The CFO may assess
23 Federally-chartered credit unions must be insured through NCUSIF, and state-chartered credit unions may be insured
through NCUSIF, though some state-chartered credit unions may be insured by private insurance or guaranty
corporations. See NCUA, How Your Accounts Are Federally Insured, https://www.ncua.gov/files/publications/guides-
manuals/NCUAHowYourAcctInsured.pdf (last visited Jan. 5, 2024).
24 Ss. 657.005(7), 657.008(5)(a)2., and 657.033(9), F.S.
25 NCUA, supra note 20.
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QPDs, subject to the segregation of contingent liability provided in s. 280.07, F.S., for the total loss if the
demand for payment or sale of collateral cannot be accomplished within 7 business days.
Segregation of Penalties; Public Deposit Program
The bill requires the CFO to segregate and separately account for any collateral proceeds, assessments,
or administrative penalties attributable to a credit union from those attributable to any bank, savings bank,
or savings association. Subject to this segregation of funds requirement, the CFO is authorized to pay any
losses to public depositors from the Public Deposits Trust Fund.
Lastly, the bill makes conforming changes to allow credit unions to participate in the public deposit program
and to subject credit union QPDs to the regulatory oversight of the CFO.
B. SECTION DIRECTORY:
Section 1. Amends s. 17.68, F.S., relating to Financial Literacy Program for Individuals with
Developmental Disabilities.
Section 2. Amends s. 280.02, F.S., relating to definitions.
Section 3. Amends s. 280.025, F.S., relating to attestation required.
Section 4. Amends s. 280.03, F.S., relating to public deposits to be secured; prohibitions;
exemptions.
Section 5. Creates s. 280.042, F.S., relating to credit union designations as qualified public
depositories; withdrawal by the Chief Financial Officer from collateral agreements;
limits on public deposits.
Section 6. Amends s. 280.05, F.S., relating to powers and duties of the Chief Financial Officer.
Section 7. Amends s. 280.052, F.S., relating to order of suspension or disqualification;
procedure.
Section 8. Amends s. 280.053, F.S., relating to period of suspension or disqualification;
obligations during period; reinstatement.
Section 9. Amends s. 280.055, F.S., relating to cease and desist order; corrective order;
administrative penalty.
Section 10. Amends s. 280.07, F.S., relating to mutual responsibility and contingent liability.
Section 11. Amends s. 280.08, F.S., relating to procedure for payment of losses.
Section 12. Amends s. 280.085, F.S., relating to notice to claimants.
Section 13. Amends s. 280.09, F.S., relating to Public Deposits Trust Fund.
Section 14. Amends s. 280.10, F.S., relating to effect of merger, acquisition, or consolidation;
change of name or address.
Section 15. Amends s. 280.13, F.S., relating to eligible collateral.
Section 16. Amends s. 280.17, F.S., relating to requirements for public depositors; notice to public
depositors and governmental units; loss of protection.
Sections 17-36. Reenacts various sections of statutes to incorporate amendments to ch. 280, F.S.
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Section 37. Provides an effective date of July 1, 2024.
II. FISCAL ANALYSIS & ECONOMIC IMPACT STATEMENT
A. FISCAL IMPACT ON STATE GOVERNMENT:
1. Revenues:
None.
2. Expenditures:
According to DFS, allowing credit unions to be QPDs will require $167,858 for workload and
programming costs:26
$86,680 in non-recurring expenditures for DFS’s Office of Information Technology (OIT) to
make:
o Significant programming changes to the Collateral Administration Program (CAP), a
computer application used to administer Florida’s public deposits program.
o Modifications to the Florida Planning Accounting, and Ledger Management (PALM)
system to accommodate the required segregated accounting of collateral proceeds,
assessments, or administrative penalties attributable to credit unions.
$5,728 in recurring expenditures for independent ranking service data on credit unions.
$75,450 in recurring expenditures for one additional Financial Examiner/Analyst II FTE, class
code 1564, pay grade 023.
However, as of February 6, 2024, the Department of Financial Services had 291.50 vacant FTE. Of
these FTE, 66.00 have been vacant for 365 days or more.
B. FISCAL IMPACT ON LOCAL GOVERNMENTS:
1. Revenues:
The bill’s impact on local government revenues is indeterminate. However, a 2014 study by the
Office of Program Policy Analysis and Government Accountability explained the potential positive
impact to local government public depositors:
Federal and state tax differences between credit unions and banks may allow credit unions a
competitive advantage when bidding for local government public deposits. Credit unions may
also benefit from lower overhead costs since these institutions may use office space belonging
to a sponsoring organization. The combined effect of lower taxes and overhead may allow credit
unions to pay higher interest rates for public deposits and to provide other business services to
local governments at a lower cost than banks.27
2. Expenditures:
None.
C. DIRECT ECONOMIC IMPACT ON PRIVATE SECTOR:
Allowing credit unions to accept public deposits may generate additional income for the credit unions
and provide more options for the public depositors. It is unclear what impact the bill will have on existing
26 Email from Chase Mitchell, Director of Legislative Affairs and Policy, Florida Department of Financial Services, RE: HB
611 – Public Deposits (Jan. 17, 2024). A bill analysis for the 2024 version of the bill has been requested from DFS.
27 Office of Program Policy Analysis and Government Accountability, Issues Related to Credit Unions Operating as
Qualified Public Depositories, Nov. 13, 2014, at 5.
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QPDs (banks, savings banks, or savings associations). The bill’s impact on the private sector is
indeterminate due to the number of variables involved in determining such impact.
D. FISCAL COMMENTS:
None.
III. COMMENTS
A. CONSTITUTIONAL ISSUES:
1. Applicability of Municipality/County Mandates Provision:
Not applicable. The bill does not appear to affect county or municipal governments.
2. Other:
None.
B. RULE-MAKING AUTHORITY:
The CFO has rulemaking authority to administer ch. 280, F.S. To add credit unions as QPDs,
rulemaking is necessary to amend ch. 69C-2, F.A.C., and several forms incorporated by reference in
the rules.
C. DRAFTING ISSUES OR OTHER COMMENTS:
None.
IV. AMENDMENTS/COMMITTEE SUBSTITUTE CHANGES
On February 13, 2024, the State Administration & Technology Appropriations Subcommittee considered
the bill, adopted an amendment, and reported the bill as favorably as a committee substitute. The
amendment limits credit unions to a total combined amount of 15 percent of all QPDs, and limits the
amount a credit union can hold to 10 percent of their institution’s total assets.
The analysis is drafted to the committee substitute as passed by the State Administration & Technology
Appropriations Subcommittee.
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F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
CS/HB 611 2024
1 A bill to be entitled
2 An act relating to public deposits; amending s. 17.68,
3 F.S.; conforming provisions to changes made by the
4 act; amending s. 280.02, F.S.; revising definitions;
5 adding credit unions to a list of financial
6 institutions that are eligible to be qualified public
7 depositories; amending s. 280.025, F.S.; providing
8 applicability of qualified public depository
9 provisions to credit unions; amending s. 280.03, F.S.;
10 conforming a provision to changes made by the act;
11 creating s. 280.042, F.S.; prohibiting the Chief
12 Financial Officer from designating credit unions as
13 qualified public depositories unless certain
14 conditions are met; requiring the Chief Financial
15 Officer to withdraw from a collateral agreement with a
16 credit union under certain circumstances; specifying a
17 requirement for and a restriction on a credit union
18 that is a party to a withdrawn collateral agreement;
19 providing limits on public deposits held by credit
20 unions; amending ss. 280.05, 280.052, 280.053, and
21 280.055, F.S.; providing applicability of qualified
22 public depository provisions to credit unions;
23 amending s. 280.07, F.S.; specifying the losses
24 against which certain solvent banks, savings banks,
25 savings associations, and credit unions must guarantee
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26 public depositors; amending ss. 280.08 and 280.085,
27 F.S.; conforming provisions to changes made by the
28 act; amending s. 280.09, F.S.; requiring the Chief
29 Financial Officer to segregate and separately account
30 for proceeds, assessments, and administrative
31 penalties attributable to a credit union from those
32 attributable to other specified financial
33 institutions; revising a condition for the payment of
34 losses to public depositors; amending s. 280.10, F.S.;
35 conforming provisions to changes made by the act;
36 amending s. 280.13, F.S.; providing that a specified
37 limit on securities eligible to be pledged as
38 collateral apply to qualified public depositories,
39 rather than to banks and savings associations;
40 amending s. 280.17, F.S.; conforming a provision to
41 changes made by the act; reenacting ss. 280.17(1)(a),
42 17.57(7)(a), 24.114(1), 125.901(3)(e), 136.01,
43 159.608(11), 175.301, 175.401(8), 185.30, 185.50(8),
44 190.007(3), 191.006(16), 215.34(2), 218.415(16)(c),
45 (17)(c), and (23)(a), 255.502(4)(h), 280.051(15),
46 280.18(1), 331.309(1) and (2), 373.553(2), 631.221,
47 and 723.06115(3)(c), F.S., relating to requirements
48 for public depositors; deposits and investments of
49 state money; bank deposits and control of lottery
50 transactions; children's services and independent
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51 special districts; county depositories; powers of
52 housing finance authorities; depositories for pension
53 funds; retiree health insurance subsidies;
54 depositories for retirement funds; retiree health
55 insurance subsidies; boards of supervisors; general
56 powers; state funds and noncollectible items; local
57 government investment policies; definitions; grounds
58 for suspension or disqualification of a qualified
59 public depository; protection of public depositors and
60 liability of the state; treasurer, depositories, and
61 fiscal agent for Space Florida; treasurer of the
62 board, payment of funds, and depositories; deposit of
63 moneys collected; and the Florida Mobile Home
64 Relocation Trust Fund, respectively, to incorporate
65 the amendments made by this act to s. 280.02, F.S., in
66 references thereto; providing an effective date.
67
68 Be It Enacted by the Legislature of the State of Florida:
69
70 Section 1. Subsection (4) of section 17.68, Florida
71 Statutes, is amended to read:
72 17.68 Financial Literacy Program for Individuals with
73 Developmental Disabilities.—
74 (4) Within 90 days after the department establishes the
75 website clearinghouse and publishes the brochure, each bank,
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76 credit union, savings association, and savings bank that is a
77 qualified public depository as defined in s. 280.02 shall:
78 (a) Make copies of the department's brochures available,
79 upon the request of the consumer, at its principal place of
80 business and each branch office located in this state which has
81 in-person teller services by having copies of the brochure
82 available or having the capability to print a copy of the
83 brochure from the department's website. Upon request, the
84 department shall provide copies of the brochure to a bank,
85 credit union, savings association, or savings bank.
86 (b) Provide on its website a hyperlink to the department's
87 website clearinghouse. If the department changes the website
88 address for the clearinghouse, the bank, credit union, savings
89 association, or savings bank must update the hyperlink within 90
90 days after notification by the department of such change.
91 Section 2. Subsections (6), (10), (21), (23), and (26) of
92 section 280.02, Florida Statutes, are amended to read:
93 280.02 Definitions.—As used in this chapter, the term:
94 (6) "Capital account" or "tangible equity capital" means
95 total equity capital, as defined on the balance-sheet portion of
96 the Consolidated Reports of Condition and Income (call report),
97 or net worth, as described in the National Credit Union
98 Administration 5300 Call Report, less intangible assets, as
99 submitted to the regulatory financial banking authority.
100 (10) "Custodian" means the Chief Financial Officer or a
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101 bank, credit union, savings association, or trust company that:
102 (a) Is organized and existing under the laws of this
103 state, any other state, or the United States;
104 (b) Has executed all forms required under this chapt er or
105 any rule adopted hereunder;
106 (c) Agrees to be subject to the jurisdiction of the courts
107 of this state, or of the courts of the United States which are
108 located within this state, for the purpose of any litigation
109 arising out of this chapter; and
110 (d) Has been approved by the Chief Financial Officer to
111 act as a custodian.
112 (21) "Pool figure" means the total average monthly
113 balances of public deposits held by all banks, savings banks, or
114 savings associations or held separately by all credit unions
115 qualified public depositories during the immediately preceding
116 12-month period.
117 (23) "Public deposit" means the moneys of the state or of
118 any state university, county, school district, community college
119 district, special district, metropolitan government, or
120 municipality, including agencies, boards, bureaus, commissions,
121 and institutions of any of the foregoing, or of any court, and
122 includes the moneys of all county officers, including
123 constitutional officers, which are placed on deposit in a bank,
124 credit union, savings bank, or savings association. This
125 includes, but is not limited to, time deposit accounts, demand
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126 deposit accounts, and nonnegotiable certificates of deposit.
127 Moneys in deposit notes and in other nondeposit accounts such as
128 repurchase or reverse repurchase operations are not public
129 deposits. Securities, mutual funds, and similar types of
130 investments are not public deposits and are not subject to this
131 chapter.
132 (26) "Qualified public depository" means a bank, credit
133 union, savings bank, or savings association that:
134 (a) Is organized and exists under the laws of the United
135 States, or the laws of this state, or the laws of any other
136 state or territory of the United States.
137 (b) Has its principal place of business in this state or
138 has a branch office in this state which is authorized under the
139 laws of this state or of the United States to receive deposits
140 in this state.
141 (c) Is insured by the Federal Deposit Insurance
142 Corporation or the National Credit Union Share Insurance Fund
143 Has deposit insurance pursuant to the Federal Deposit Insurance
144 Act, as amended, 12 U.S.C. ss. 1811 et seq.
145 (d) Has procedures and practices for accurate
146 identification, classification, reporting, and collateralization
147 of public deposits.
148 (e) Makes determinations about the provision of services
149 or the denial of services based on an analysis of risk factors
150 unique to each customer or member. This paragraph does not
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151 restrict a qualified public depository that claims a religious
152 purpose from making such determinations based on the religious
153 beliefs, religious exercise, or religious affiliations of a
154 customer or member.
155 (f) Does not engage in the unsafe and unsound practice of
156 denying or canceling its services to a person, or otherwise
157 discriminating against a person in making available such
158 services or in the terms or conditions of such services, on the
159 basis of:
160 1. The person's political opinions, speech, or
161 affiliations;
162 2. Except as provided in paragraph (e), the person's
163 religious beliefs, religious exercise, or religious
164 affiliations;
165 3. Any factor if it is not a quantitative, impartial, and
166 risk-based standard, including any such factor related to the
167 person's business sector; or
168 4. The use of any rating, scoring, analysis, tabulation,
169 or action that considers a social credit score based on factors
170 including, but not limited to:
171 a. The person's political opinions, speech, or
172 affiliations.
173 b. The person's religious beliefs, religious exercise, or
174 religious affiliations.
175 c. The person's lawful ownership of a firearm.
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176 d. The person's engagement in the lawful manufacture,
177 distribution, sale, purchase, or use of firearms or ammunition.
178 e. The person's engagement in the exploration, production,
179 utilization, transportation, sale, or manufacture of fossil
180 fuel-based energy, timber, mining, or agriculture.
181 f. The person's support of the state or Federal Government
182 in combating illegal immigration, drug trafficking, or human
183 trafficking.
184 g. The person's engagement with, facilitation of,
185 employment by, support of, business relationship with,
186 representation of, or advocacy for any person described in this
187 subparagraph.
188 h. The person's failure to meet or commit to meet, or
189 expected failure to meet, any of the following as long as such
190 person is in compliance with applicable state or federal law:
191 (I) Environmental standards, including emissions
192 standards, benchmarks, requirements, or disclosures;
193 (II) Social governance standards, benchmarks, or
194 requirements, including, but not limited to, environmental or
195 social justice;
196 (III) Corporate board or company employment composition
197 standards, benchmarks, requirements, or disclosures based on
198 characteristics protected under the Florida Civil Rights Act of
199 1992; or
200 (IV) Policies or procedures requiring or encourag ing
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201 employee participation in social justice programming, including,
202 but not limited to, diversity, equity, or inclusion training.
203 (g) Meets all the requirements of this chapter.
204 (h) Has been designated by the Chief Financial Officer as
205 a qualified public depository.
206 Section 3. Subsection (1) of section 280.025, Florida
207 Statutes, is amended to read:
208 280.025 Attestation required.—
209 (1) Beginning July 1, 2024 2023, the following entities
210 must attest, under penalty of perjury, on a form prescribed by
211 the Chief Financial Officer, whether the entity is in compliance
212 with s. 280.02(26)(e) and (f):
213 (a) A bank, savings bank, credit union, or savings
214 association, upon application or reapplication for designation
215 as a qualified public depository.
216 (b) A qualified public depository, upon filing the report
217 required by s. 280.16(1)(d).
218 Section 4. Paragraph (a) of subsection (3) of section
219 280.03, Florida Statutes, is amended to read:
220 280.03 Public deposits to be secured; prohibitions;
221 exemptions.—
222 (3) The following are exempt from the requirements of, and
223 protection under, this chapter:
224 (a) Public deposits deposited in a bank, credit union, or
225 savings association by a trust department or trust company which
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226 are fully secured under trust business laws.
227 Section 5. Section 280.042, Florida Statutes, is created
228 to read:
229 280.042 Credit union designations as qualified public
230 depositories; withdrawal by the Chief Financial Officer from
231 collateral agreements; limits on public deposits.—
232 (1) The Chief Financial Officer may not designate a credit
233 union as a qualified public depository unless, at the time the
234 credit union submits its agreement of contingent liability and
235 its collateral agreement:
236 (a) The credit union submits a signed statement from a
237 public depositor indicating that if the credit union is
238 designated as a qualified public depository, the public
239 depositor intends to deposit public funds with the credit union.
240 (b) The combined total of the numbers in subparagraphs 1.
241 and 2. is at least four:
242 1. The number of credit unions designated as qualified
243 public depositories.
244 2. The number of credit unions that meet all of the
245 following requirements:
246 a. Apply to be designated as qualified public
247 depositories.
248 b. Meet the requirements in paragraph (a).
249 (2) The Chief Financial Officer must withdraw from a
250 collateral agreement previously entered into with a credit union
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251 if, during any 90 calendar days, the combined total of the
252 number of credit unions designated as qualified public
253 depositories and the number of eligible credit unions applying
254 to be designated as qualified public depositories is less than
255 five.
256 (3) A credit union that is a party to a collateral
257 agreement from which the Chief Financial Officer withdraws in
258 accordance with subsection (2) may no longer be designated as a
259 qualified public depository. Within 10 business days after the
260 Chief Financial Officer notifies the credit union that the Chief
261 Financial Officer has withdrawn from the collateral agreement,
262 the credit union must return all public deposits that the credit
263 union holds to the public depositor who deposited the funds. The
264 notice provided for in this subsection may be sent to a credit
265 union by regular mail or by e-mail.
266 (4)(a) All credit unions may hold public deposits in a
267 total combined amount not to exceed 15 percent of the total
268 qualified public deposits held in this state per the public
269 deposits program data as managed by the Chief Financial Officer.
270 (b) A credit union may not hold public deposits of more
271 than 10 percent of its total institution's assets.
272 Section 6. Subsection (11) of section 280.05, Florida
273 Statutes, is amended to read:
274 280.05 Powers and duties of the Chief Financial Officer.—
275 In fulfilling the requirements of this act, the Chief Fina ncial
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276 Officer has the power to take the following actions he or she
277 deems necessary to protect the integrity of the public deposits
278 program:
279 (11) Sell securities for the purpose of paying losses to
280 public depositors not covered by deposit or share insurance.
281 Section 7. Subsection (1) of section 280.052, Florida
282 Statutes, is amended to read:
283 280.052 Order of suspension or disqualification;
284 procedure.—
285 (1) The suspension or disqualification of a bank, credit
286 union, or savings association as a qualified public depository
287 must be by order of the Chief Financial Officer and must be
288 mailed to the qualified public depository by registered or
289 certified mail.
290 Section 8. Paragraph (c) of subsection (1) and paragraph
291 (c) of subsection (2) of section 280.053, Florida Statutes, are
292 amended to read:
293 280.053 Period of suspension or disqualification;
294 obligations during period; reinstatement.—
295 (1)
296 (c) Upon expiration of the suspension period, the bank ,
297 credit union, or savings association may, by order of the Chief
298 Financial Officer, be reinstated as a qualified public
299 depository, unless the cause of the suspension has not been
300 corrected or the bank, credit union, or savings association is
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301 otherwise not in compliance with this chapter or any rule
302 adopted pursuant to this chapter.
303 (2)
304 (c) Upon expiration of the disqualification period, the
305 bank, credit union, or savings association may reapply for
306 qualification as a qualified public depository. If a
307 disqualified bank, credit union, or savings association is
308 purchased or otherwise acquired by new owners, it may reapply to
309 the Chief Financial Officer to be a qualified public depository
310 before prior to the expiration date of the disqualification
311 period. Redesignation as a qualified public depository may occur
312 only after the Chief Financial Officer has determined that all
313 requirements for holding public deposits under the law have been
314 met.
315 Section 9. Section 280.055, Florida Statutes, is amended
316 to read:
317 280.055 Cease and desist order; corrective order;
318 administrative penalty.—
319 (1) The Chief Financial Officer may issue a cease and
320 desist order and a corrective order upon determining that:
321 (a) A qualified public depository has requested and
322 obtained a release of pledged collateral without approval of the
323 Chief Financial Officer;
324 (b) A bank, credit union, savings association, or other
325 financial institution is holding public deposits without a
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326 certificate of qualification issued by the Chief Financial
327 Officer;
328 (c) A qualified public depository pledges, deposits, or
329 arranges for the issuance of unacceptable collateral;
330 (d) A custodian has released pledged collateral without
331 approval of the Chief Financial Officer;
332 (e) A qualified public depository or a custodian has not
333 furnished to the Chief Financial Officer, when the Chief
334 Financial Officer requested, a power of attorney or bond power
335 or bond assignment form required by the bond agent or bond
336 trustee for each issue of registered certificated securities
337 pledged and registered in the name, or nominee name, of the
338 qualified public depository or custodian;
339 (f) A qualified public depository; a bank, credit union,
340 savings association, or other financial institution; or a
341 custodian has committed any other violation of this chapter or
342 any rule adopted pursuant to this chapter that the Chief
343 Financial Officer determines may be remedied by a cease and
344 desist order or corrective order; or
345 (g) A qualified public depository no longer meets the
346 definition of a qualified public depository under s. 280.02.
347 (2) Any qualified public depository or other bank, credit
348 union, savings association, or financial institution or
349 custodian that violates a cease and desist order or corrective
350 order of the Chief Financial Officer is subject to an
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351 administrative penalty not exceeding $1,000 for each violation
352 of the order. Each day the violation of the order continues
353 constitutes a separate violation.
354 Section 10. Section 280.07, Florida Statutes, is amended
355 to read:
356 280.07 Mutual responsibility and contingent liability.—
357 (1) A Any bank, savings bank, or savings association that
358 is designated as a qualified public depository and that is not
359 insolvent shall guarantee public depositors against loss caused
360 by the default or insolvency of other banks, savings banks, or
361 savings associations that are designated as qualified public
362 depositories.
363 (2) A credit union that is designated as a qualified
364 public depository and that is not insolvent shall guarantee
365 public depositors against loss caused by the default or
366 insolvency of other credit unions that are designated as
367 qualified public depositories.
368
369 Each qualified public depository shall execute a form prescribed
370 by the Chief Financial Officer for such guarantee which must
371 shall be approved by the board of directors and must shall
372 become an official record of the institution.
373 Section 11. Subsections (1) and (3) of section 280.08,
374 Florida Statutes, are amended to read:
375 280.08 Procedure for payment of losses.—When the Chief
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376 Financial Officer determines that a default or insolvency has
377 occurred, he or she shall provide notice as required in s.
378 280.085 and implement the following procedures:
379 (1) The Division of Treasury, in cooperation with the
380 Office of Financial Regulation of the Financial Services
381 Commission or the receiver of the qualified public depository in
382 default, shall ascertain the amount of funds of each public
383 depositor on deposit at such depository and the amount of
384 deposit or share insurance applicable to such deposits.
385 (3)(a) The loss to public depositors shall be satisfied,
386 insofar as possible, first through any applicable deposit or
387 share insurance and then through demanding payment under letters
388 of credit or the sale of collateral pledged or deposited by the
389 defaulting depository. The Chief Financial Officer may assess
390 qualified public depositories as provided in paragraph (b) ,
391 subject to the segregation of contingent liability in s. 280.07,
392 for the total loss if the demand for payment or sale of
393 collateral cannot be accomplished within 7 business days.
394 (b) The Chief Financial Officer shall provide coverage of
395 any remaining loss by assessment against the other qualified
396 public depositories. The Chief Financial Officer shall determine
397 such assessment for each qualified public depository by
398 multiplying the total amount of any remaining loss to all public
399 depositors by a percentage which represents the average monthly
400 balance of public deposits held by each qualified public
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401 depository during the previous 12 months divided by the total
402 average monthly balances of public deposits held by all
403 qualified public depositories, excluding the defaulting
404 depository, during the same period. The assessment calculation
405 must shall be computed to six decimal places.
406 Section 12. Subsection (4) of section 280.085, Florida
407 Statutes, is amended, and subsection (1) of that section is
408 republished, to read:
409 280.085 Notice to claimants.—
410 (1) Upon determining the default or insolvency of a
411 qualified public depository, the Chief Financial Officer shall
412 notify, by first-class mail, all public depositors that have
413 complied with s. 280.17 of such default or insolvency. The
414 notice must direct all public depositors having claims or
415 demands against the Public Deposits Trust Fund occasioned by the
416 default or insolvency to file their claims with the Chief
417 Financial Officer within 30 days after the date of the notice.
418 (4) The notice required in subsection (1) is not required
419 if the default or insolvency of a qualified public depository is
420 resolved in a manner in which all Florida public deposits are
421 acquired by another insured bank, credit union, savings bank, or
422 savings association.
423 Section 13. Section 280.09, Florida Statutes, is amended
424 to read:
425 280.09 Public Deposits Trust Fund.—
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426 (1) In order to facilitate the administration of this
427 chapter, there is created the Public Deposits Trust Fund,
428 hereafter in this section designated "the fund." The proceeds
429 from the sale of securities or draw on letters of credit held as
430 collateral or from any assessment pursuant to s. 280.08 must
431 shall be deposited into the fund. The Chief Financial Officer
432 must segregate and separately account for any collateral
433 proceeds, assessments, or administrative penalties attributable
434 to a credit union from any collateral proceeds, assessments, or
435 administrative penalties attributable to any bank, savings bank,
436 or savings association. Any administrative penalty collected
437 pursuant to this chapter shall be deposited into the Treasury
438 Administrative and Investment Trust Fund.
439 (2) The Chief Financial Officer is authorized to pay any
440 losses to public depositors from the fund, subject to the
441 limitations provided in subsection (1), and there are hereby
442 appropriated from the fund such sums as may be necessary from
443 time to time to pay the losses. The term "losses," for purposes
444 of this chapter, must shall also include losses of interest or
445 other accumulations to the public depositor as a result of
446 penalties for early withdrawal required by Depository
447 Institution Deregulatory Commission Regulations or applicable
448 successor federal laws or regulations because of suspension or
449 disqualification of a qualified public depository by the Chief
450 Financial Officer pursuant to s. 280.05 or because of withdrawal
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451 from the public deposits program pursuant to s. 280.11. In that
452 event, the Chief Financial Officer is authorized to assess
453 against the suspended, disqualified, or withdrawing public
454 depository, in addition to any amount authorized by any other
455 provision of this chapter, an administrative penalty equal to
456 the amount of the early withdrawal penalty and to pay that
457 amount over to the public depositor as reimbursement for such
458 loss. Any money in the fund estimated not to be needed for
459 immediate cash requirements shall be invested pursuant to s.
460 17.61.
461 Section 14. Subsections (1) and (3) of section 280.10,
462 Florida Statutes, are amended to read:
463 280.10 Effect of merger, acquisition, or consolidation;
464 change of name or address.—
465 (1) When a qualified public depository is merged into,
466 acquired by, or consolidated with a bank, credit union, savings
467 bank, or savings association that is not a qualified public
468 depository:
469 (a) The resulting institution shall automatically become a
470 qualified public depository subject to the requirements of the
471 public deposits program.
472 (b) The contingent liability of the former institution
473 shall be a liability of the resulting institution.
474 (c) The public deposits and associated collateral of the
475 former institution shall be public deposits and collateral of
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476 the resulting institution.
477 (d) The resulting institution shall, within 90 calendar
478 days after the effective date of the merger, acquisition, or
479 consolidation, deliver to the Chief Financial Officer:
480 1. Documentation in its name as required for participation
481 in the public deposits program; or
482 2. Written notice of intent to withdraw from the program
483 as provided in s. 280.11 and a proposed effective date of
484 withdrawal which shall be within 180 days after the effective
485 date of the acquisition, merger, or consolidation of the former
486 institution.
487 (e) If the resulting institution does not meet
488 qualifications to become a qualified public depository or does
489 not submit required documentation within 90 calendar days after
490 the effective date of the merger, acquisition, or consolidation,
491 the Chief Financial Officer shall initiate mandatory withdrawal
492 actions as provided in s. 280.11 and shall set an effective date
493 of withdrawal that is within 180 days after the effective date
494 of the acquisition, merger, or consolidation of the former
495 institution.
496 (3) If the default or insolvency of a qualified public
497 depository results in acquisition of all or part of its Florida
498 public deposits by a bank, credit union, savings bank, or
499 savings association that is not a qualified public depository,
500 the bank, credit union, savings bank, or savings association
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501 acquiring the Florida public deposits is subject to subsection
502 (1).
503 Section 15. Subsection (1) of section 280.13, Florida
504 Statutes, is amended to read:
505 280.13 Eligible collateral.—
506 (1) Securities eligible to be pledged as collateral by
507 qualified public depositories banks and savings associations
508 shall be limited to:
509 (a) Direct obligations of the United States Government.
510 (b) Obligations of any federal agency that are fully
511 guaranteed as to payment of principal and interest by the United
512 States Government.
513 (c) Obligations of the following federal agencies:
514 1. Farm credit banks.
515 2. Federal land banks.
516 3. The Federal Home Loan Bank and its district banks.
517 4. Federal intermediate credit banks.
518 5. The Federal Home Loan Mortgage Corporation.
519 6. The Federal National Mortgage Association.
520 7. Obligations guaranteed by the Government National
521 Mortgage Association.
522 (d) General obligations of a state of the United States,
523 or of Puerto Rico, or of a political subdivision or municipality
524 thereof.
525 (e) Obligations issued by the Florida State Board of
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526 Education under authority of the State Constitution or
527 applicable statutes.
528 (f) Tax anticipation certificates or warrants of counties
529 or municipalities having maturities not exceeding 1 year.
530 (g) Public housing authority obligations.
531 (h) Revenue bonds or certificates of a state of the United
532 States or of a political subdivision or municipality thereof.
533 (i) Corporate bonds of any corporation that is not an
534 affiliate or subsidiary of the qualified public depository.
535 Section 16. Paragraph (b) of subsection (4) of section
536 280.17, Florida Statutes, is amended, and, for the purpose of
537 incorporating the amendment made by this act to section 280.02,
538 Florida Statutes, in a reference thereto, paragraph (a) of
539 subsection (1) of section 280.17, Florida Statutes, is
540 reenacted, to read:
541 280.17 Requirements for public depositors; notice to
542 public depositors and governmental units; loss of protection. —In
543 addition to any other requirement specified in this chapter,
544 public depositors shall comply with the following:
545 (1)(a) Each official custodian of moneys that meet the
546 definition of a public deposit under s. 280.02 shall ensure such
547 moneys are placed in a qualified public depository unless the
548 moneys are exempt under the laws of this state.
549 (4) If public deposits are in a qualified public
550 depository that has been declared to be in default or insolvent,
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551 each public depositor shall:
552 (b) Submit to the Chief Financial Officer for each public
553 deposit, within 30 days after the date of official notification
554 from the Chief Financial Officer, the following:
555 1. A claim form and agreement, as prescribed by the Chief
556 Financial Officer, executed under oath, accompanied by proof of
557 authority to execute the form on behalf of the public depositor.
558 2. A completed public deposit identification and
559 acknowledgment form, as described in subsection (2).
560 3. Evidence of the insurance afforded the deposit pursuant
561 to the Federal Deposit Insurance Act or the Federal Credit Union
562 Act, as appropriate.
563 Section 17. For the purpose of incorporating the amendment
564 made by this act to section 280.02, Florida Statutes, in a
565 reference thereto, paragraph (a) of subsection (7) of section
566 17.57, Florida Statutes, is reenacted to read:
567 17.57 Deposits and investments of state money.—
568 (7) In addition to the deposits authorized under this
569 section and notwithstanding any other provisions of law, funds
570 that are not needed to meet the disbursement needs of the state
571 may be deposited by the Chief Financial Officer in accordance
572 with the following conditions:
573 (a) The funds are initially deposited in a qualified
574 public depository, as defined in s. 280.02, selected by the
575 Chief Financial Officer.
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576 Section 18. For the purpose of incorporating the amendment
577 made by this act to section 280.02, Florida Statutes, in a
578 reference thereto, subsection (1) of section 24.114, Florida
579 Statutes, is reenacted to read:
580 24.114 Bank deposits and control of lottery transactions. —
581 (1) All moneys received by each retailer from the
582 operation of the state lottery, including, but not limited to,
583 all ticket sales, interest, gifts, and donations, less the
584 amount retained as compensation for the sale of the tickets and
585 the amount paid out as prizes, shall be remitted to the
586 department or deposited in a qualified public depository, as
587 defined in s. 280.02, as directed by the department. The
588 department shall have the responsibility for all administrative
589 functions related to the receipt of funds. The department may
590 also require each retailer to file with the department reports
591 of the retailer's receipts and transactions in the sale of
592 lottery tickets in such form and containing such information as
593 the department may require. The department may require any
594 person, including a qualified public depository, to perform any
595 function, activity, or service in connection with the operation
596 of the lottery as it may deem advisable pursuant to this act and
597 rules of the department, and such functions, activities, or
598 services shall constitute lawful functions, activities, and
599 services of such person.
600 Section 19. For the purpose of incorporating the amendment
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601 made by this act to section 280.02, Florida Statutes, in a
602 reference thereto, paragraph (e) of subsection (3) of section
603 125.901, Florida Statutes, is reenacted to read:
604 125.901 Children's services; independent special district;
605 council; powers, duties, and functions; public records
606 exemption.—
607 (3)
608 (e)1. All moneys received by the council on children's
609 services shall be deposited in qualified public depositories, as
610 defined in s. 280.02, with separate and distinguishable accounts
611 established specifically for the council and shall be withdrawn
612 only by checks signed by the chair of the council and
613 countersigned by either one other member of the council on
614 children's services or by a chief executive officer who shall be
615 so authorized by the council.
616 2. Upon entering the duties of office, the chair and the
617 other member of the council or chief executive officer who signs
618 its checks shall each give a surety bond in the sum of at least
619 $1,000 for each $1 million or portion thereof of the council's
620 annual budget, which bond shall be conditioned that each shall
621 faithfully discharge the duties of his or her office. The
622 premium on such bond may be paid by the district as part of the
623 expense of the council. No other member of the council shall be
624 required to give bond or other security.
625 3. No funds of the district shall be expended except by
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626 check as aforesaid, except expenditures from a petty cash
627 account which shall not at any time exceed $100. All
628 expenditures from petty cash shall be recorded on the books and
629 records of the council on children's services. No funds of the
630 council on children's services, excepting expenditures from
631 petty cash, shall be expended without prior approval of the
632 council, in addition to the budgeting thereof.
633 Section 20. For the purpose of incorporating the amendment
634 made by this act to section 280.02, Florida Statutes, in a
635 reference thereto, section 136.01, Florida Statutes, is
636 reenacted to read:
637 136.01 County depositories.—Each county depository shall
638 be a qualified public depository as defined in s. 280.02 for the
639 following funds: county funds; funds of all county officers,
640 including constitutional officers; funds of the school board;
641 and funds of the community college district board of trustees.
642 This enumeration of funds is made not by way of limitation, but
643 of illustration; and it is the intent hereof that all funds of
644 the county, the board of county commissioners or the several
645 county officers, the school board, or the community college
646 district board of trustees be included.
647 Section 21. For the purpose of incorporating the amendment
648 made by this act to section 280.02, Florida Statutes, in a
649 reference thereto, subsection (11) of section 159.608, Florida
650 Statutes, is reenacted to read:
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651 159.608 Powers of housing finance authorities.—A housing
652 finance authority shall constitute a public body corporate and
653 politic, exercising the public and essential governmental
654 functions set forth in this act, and shall exercise its power to
655 borrow only for the purpose as provided herein:
656 (11) To invest and reinvest surplus funds of the housing
657 finance authority in accordance with s. 218.415. However, in
658 addition to the investments expressly authorized in s.
659 218.415(16)(a)-(g) and (17)(a)-(d), a housing finance authority
660 may invest surplus funds in interest-bearing time deposits or
661 savings accounts that are fully insured by the Federal Deposit
662 Insurance Corporation regardless of whether the bank or
663 financial institution in which the deposit or investment is made
664 is a qualified public depository as defined in s. 280.02. This
665 subsection is supplementary to and may not be construed as
666 limiting any powers of a housing finance authority or providing
667 or implying a limiting construction of any other statutory
668 provision.
669 Section 22. For the purpose of incorporating the amendment
670 made by this act to section 280.02, Florida Statutes, in a
671 reference thereto, section 175.301, Florida Statutes, is
672 reenacted to read:
673 175.301 Depository for pension funds.—For any
674 municipality, special fire control district, chapter plan, local
675 law municipality, local law special fire control district, or
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676 local law plan under this chapter, all funds of the
677 firefighters' pension trust fund of any chapter plan or local
678 law plan under this chapter may be deposited by the board of
679 trustees with the treasurer of the municipality or special fire
680 control district, acting in a ministerial capacity only, who
681 shall be liable in the same manner and to the same extent as he
682 or she is liable for the safekeeping of funds for the
683 municipality or special fire control district. However, any
684 funds so deposited with the treasurer of the municipality or
685 special fire control district shall be kept in a separate fund
686 by the treasurer or clearly identified as such funds of the
687 firefighters' pension trust fund. In lieu thereof, the board of
688 trustees shall deposit the funds of the firefighters' pension
689 trust fund in a qualified public depository as defined in s.
690 280.02, which depository with regard to such funds shall conform
691 to and be bound by all of the provisions of chapter 280.
692 Section 23. For the purpose of incorporating the amendment
693 made by this act to section 280.02, Florida Statutes, in
694 references thereto, subsection (8) of section 175.401, Florida
695 Statutes, is reenacted to read:
696 175.401 Retiree health insurance subsidy.—For any
697 municipality, special fire control district, chapter plan, local
698 law municipality, local law special fire control district, or
699 local law plan under this chapter, under the broad grant of home
700 rule powers under the State Constitution and chapter 166,
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701 municipalities have the authority to establish and administer
702 locally funded health insurance subsidy programs. In addition,
703 special fire control districts may, by resolution, establish and
704 administer locally funded health insurance subsidy programs.
705 Pursuant thereto:
706 (8) DEPOSIT OF HEALTH INSURANCE SUBSIDY FUNDS.—All funds
707 of the health insurance subsidy fund may be deposited by the
708 board of trustees with the treasurer of the municipality or
709 special fire control district, acting in a ministerial capacity
710 only, who shall be liable in the same manner and to the same
711 extent as he or she is liable for the safekeeping of funds for
712 the municipality or special fire control district. Any funds so
713 deposited shall be segregated by the treasurer in a separate
714 fund, clearly identified as funds of the health insurance
715 subsidy fund. In lieu thereof, the board of trustees shall
716 deposit the funds of the health insurance subsidy fund in a
717 qualified public depository as defined in s. 280.02, which shall
718 conform to and be bound by the provisions of chapter 280 with
719 regard to such funds. In no case shall the funds of the health
720 insurance subsidy fund be deposited in any financial
721 institution, brokerage house trust company, or other entity that
722 is not a public depository as provided by s. 280.02.
723 Section 24. For the purpose of incorporating the amendment
724 made by this act to section 280.02, Florida Statutes, in a
725 reference thereto, section 185.30, Florida Statutes, is
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726 reenacted to read:
727 185.30 Depository for retirement fund.—For any
728 municipality, chapter plan, local law municipality, or local law
729 plan under this chapter, all funds of the municipal police
730 officers' retirement trust fund of any municipality, chapter
731 plan, local law municipality, or local law plan under this
732 chapter may be deposited by the board of trustees with the
733 treasurer of the municipality acting in a ministerial capacity
734 only, who shall be liable in the same manner and to the same
735 extent as he or she is liable for the safekeeping of funds for
736 the municipality. However, any funds so deposited with the
737 treasurer of the municipality shall be kept in a separate fund
738 by the municipal treasurer or clearly identified as such funds
739 of the municipal police officers' retirement trust fund. In lieu
740 thereof, the board of trustees shall deposit the funds of the
741 municipal police officers' retirement trust fund in a qualified
742 public depository as defined in s. 280.02, which depository with
743 regard to such funds shall conform to and be bound by all of the
744 provisions of chapter 280.
745 Section 25. For the purpose of incorporating the amendment
746 made by this act to section 280.02, Florida Statutes, in
747 references thereto, subsection (8) of section 185.50, Florida
748 Statutes, is reenacted to read:
749 185.50 Retiree health insurance subsidy.—For any
750 municipality, chapter plan, local law municipality, or local law
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751 plan under this chapter, under the broad grant of home rule
752 powers under the State Constitution and chapter 166,
753 municipalities have the authority to establish and administer
754 locally funded health insurance subsidy programs. Pursuant
755 thereto:
756 (8) DEPOSIT OF PENSION FUNDS.—All funds of the health
757 insurance subsidy fund may be deposited by the board of trustees
758 with the treasurer of the municipality, acting in a ministerial
759 capacity only, who shall be liable in the same manner and to the
760 same extent as he or she is liable for the safekeeping of funds
761 for the municipality. Any funds so deposited shall be segregated
762 by said treasurer in a separate fund, clearly identified as
763 funds of the health insurance subsidy fund. In lieu thereof, the
764 board of trustees shall deposit the funds of the health
765 insurance subsidy fund in a qualified public depository as
766 defined in s. 280.02, which shall conform to and be bound by the
767 provisions of chapter 280 with regard to such funds. In no case
768 shall the funds of the health insurance subsidy fund be
769 deposited in any financial institution, brokerage house trust
770 company, or other entity that is not a public depository as
771 provided by s. 280.02.
772 Section 26. For the purpose of incorporating the amendment
773 made by this act to section 280.02, Florida Statutes, in a
774 reference thereto, subsection (3) of section 190.007, Florida
775 Statutes, is reenacted to read:
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776 190.007 Board of supervisors; general duties.—
777 (3) The board is authorized to select as a depository for
778 its funds any qualified public depository as defined in s.
779 280.02 which meets all the requirements of chapter 280 and has
780 been designated by the Chief Financial Officer as a qualified
781 public depository, upon such terms and conditions as to the
782 payment of interest by such depository upon the funds so
783 deposited as the board may deem just and reasonable.
784 Section 27. For the purpose of incorporating the amendment
785 made by this act to section 280.02, Florida Statutes, in a
786 reference thereto, subsection (16) of section 191.006, Florida
787 Statutes, is reenacted to read:
788 191.006 General powers.—The district shall have, and the
789 board may exercise by majority vote, the following powers:
790 (16) To select as a depository for its funds any qualified
791 public depository as defined in s. 280.02 which meets all the
792 requirements of chapter 280 and has been designated by the Chief
793 Financial Officer as a qualified public depository, upon such
794 terms and conditions as to the payment of interest upon the
795 funds deposited as the board deems just and reasonable.
796 Section 28. For the purpose of incorporating the amendment
797 made by this act to section 280.02, Florida Statutes, in a
798 reference thereto, subsection (2) of section 215.34, Florida
799 Statutes, is reenacted to read:
800 215.34 State funds; noncollectible items; procedure.—
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801 (2) Whenever a check, draft, or other order for the
802 payment of money is returned by the Chief Financial Officer, or
803 by a qualified public depository as defined in s. 280.02, to a
804 state officer, a state agency, or the judicial branch for
805 collection, the officer, agency, or judicial branch shall add to
806 the amount due a service fee of $15 or 5 percent of the face
807 amount of the check, draft, or order, whichever is greater. An
808 agency or the judicial branch may adopt a rule which pre scribes
809 a lesser maximum service fee, which shall be added to the amount
810 due for the dishonored check, draft, or other order tendered for
811 a particular service, license, tax, fee, or other charge, but in
812 no event shall the fee be less than $15. The service fee shall
813 be in addition to all other penalties imposed by law, except
814 that when other charges or penalties are imposed by an agency
815 related to a noncollectible item, the amount of the service fee
816 shall not exceed $150. Proceeds from this fee shall be deposited
817 in the same fund as the collected item. Nothing in this section
818 shall be construed as authorization to deposit moneys outside
819 the State Treasury unless specifically authorized by law.
820 Section 29. For the purpose of incorporating the amendment
821 made by this act to section 280.02, Florida Statutes, in
822 references thereto, paragraph (c) of subsection (16), paragraph
823 (c) of subsection (17), and paragraph (a) of subsection (23) of
824 section 218.415, Florida Statutes, are reenacted to read:
825 218.415 Local government investment policies.—Investment
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826 activity by a unit of local government must be consistent with a
827 written investment plan adopted by the governing body, or in the
828 absence of the existence of a governing body, the respective
829 principal officer of the unit of local government and maintained
830 by the unit of local government or, in the alternative, such
831 activity must be conducted in accordance with subsection (17).
832 Any such unit of local government shall have an investment
833 policy for any public funds in excess of the amounts needed to
834 meet current expenses as provided in subsections (1)-(16), or
835 shall meet the alternative investment guidelines contained in
836 subsection (17). Such policies shall be structured to place the
837 highest priority on the safety of principal and liquidity of
838 funds. The optimization of investment returns shall be secondary
839 to the requirements for safety and liquidity. Each unit of local
840 government shall adopt policies that are commensurate with the
841 nature and size of the public funds within its custody.
842 (16) AUTHORIZED INVESTMENTS; WRITTEN INVESTMENT POLICIES. —
843 Those units of local government electing to adopt a written
844 investment policy as provided in subsections (1)-(15) may by
845 resolution invest and reinvest any surplus public funds in their
846 control or possession in:
847 (c) Interest-bearing time deposits or savings accounts in
848 qualified public depositories as defined in s. 280.02.
849 (17) AUTHORIZED INVESTMENTS; NO WRITTEN INVESTMENT
850 POLICY.—Those units of local government electing not to adopt a
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851 written investment policy in accordance with investment policies
852 developed as provided in subsections (1)-(15) may invest or
853 reinvest any surplus public funds in their control or possession
854 in:
855 (c) Interest-bearing time deposits or savings accounts in
856 qualified public depositories, as defined in s. 280.02.
857
858 The securities listed in paragraphs (c) and (d) shall be
859 invested to provide sufficient liquidity to pay obligations as
860 they come due.
861 (23) AUTHORIZED DEPOSITS.—In addition to the investments
862 authorized for local governments in subsections (16) and (17)
863 and notwithstanding any other provisions of law, a unit of local
864 government may deposit any portion of surplus public funds in
865 its control or possession in accordance with the follow ing
866 conditions:
867 (a) The funds are initially deposited in a qualified
868 public depository, as defined in s. 280.02, selected by the unit
869 of local government.
870 Section 30. For the purpose of incorporating the amendment
871 made by this act to section 280.02, Florida Statutes, in a
872 reference thereto, paragraph (h) of subsection (4) of section
873 255.502, Florida Statutes, is reenacted to read:
874 255.502 Definitions; ss. 255.501-255.525.—As used in this
875 act, the following words and terms shall have the following
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876 meanings unless the context otherwise requires:
877 (4) "Authorized investments" means and includes without
878 limitation any investment in:
879 (h) Savings accounts in, or certificates of deposit of,
880 qualified public depositories as defined in s. 280.02, in an
881 amount that does not exceed 15 percent of the net worth of the
882 institution, or a lesser amount as determined by rule by the
883 State Board of Administration, provided such savings accounts
884 and certificates of deposit are secured in the manner prescribed
885 in chapter 280.
886
887 Investments in any security authorized in this subsection may be
888 under repurchase agreements or reverse repurchase agreements.
889 Section 31. For the purpose of incorporating the amendment
890 made by this act to section 280.02, Florida Statutes, in a
891 reference thereto, subsection (15) of section 280.051, Florida
892 Statutes, is reenacted to read:
893 280.051 Grounds for suspension or disqualification of a
894 qualified public depository.—A qualified public depository may
895 be suspended or disqualified or both if the Chief Financial
896 Officer determines that the qualified public depository has:
897 (15) No longer meets the definition of a qualified public
898 depository under s. 280.02.
899 Section 32. For the purpose of incorporating the amendment
900 made by this act to section 280.02, Florida Statutes, in a
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901 reference thereto, subsection (1) of section 280.18, Florida
902 Statutes, is reenacted to read:
903 280.18 Protection of public depositors; liability of the
904 state.—
905 (1) When public deposits are made in accordance with this
906 chapter, there shall be protection from loss to public
907 depositors, as defined in s. 280.02, in the absence of
908 negligence, malfeasance, misfeasance, or nonfeasance on the part
909 of the public depositor or on the part of his or her agents or
910 employees.
911 Section 33. For the purpose of incorporating the amendment
912 made by this act to section 280.02, Florida Statutes, in
913 references thereto, subsections (1) and (2) of section 331.309,
914 Florida Statutes, are reenacted to read:
915 331.309 Treasurer; depositories; fiscal agent.—
916 (1) The board shall designate an individual who is a
917 resident of the state, or a qualified public depository as
918 defined in s. 280.02, as treasurer of Space Florida, who shall
919 have charge of the funds of Space Florida. Such funds shall be
920 disbursed only upon the order of or pursuant to the resolution
921 of the board by warrant, check, authorization, or direct deposit
922 pursuant to s. 215.85, signed or authorized by the treasurer or
923 his or her representative or by such other persons as may be
924 authorized by the board. The board may give the treasurer such
925 other or additional powers and duties as the board may deem
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926 appropriate and shall establish the treasurer's compensation.
927 The board may require the treasurer to give a bond in such
928 amount, on such terms, and with such sureties as may be deemed
929 satisfactory to the board to secure the performance by the
930 treasurer of his or her powers and duties. The board shall audit
931 or have audited the books of the treasurer at least once a year.
932 (2) The board is authorized to select as depositories in
933 which the funds of the board and of Space Florida shall be
934 deposited any qualified public depository as defined in s.
935 280.02, upon such terms and conditions as to the payment of
936 interest by such depository upon the funds so deposited as the
937 board may deem just and reasonable. The funds of Space Florida
938 may be kept in or removed from the State Treasury upon written
939 notification from the chair of the board to the Chief Financial
940 Officer.
941 Section 34. For the purpose of incorporating the amendment
942 made by this act to section 280.02, Florida Statutes, in a
943 reference thereto, subsection (2) of section 373.553, Florida
944 Statutes, is reenacted to read:
945 373.553 Treasurer of the board; payment of funds;
946 depositories.—
947 (2) The board is authorized to select as depositories in
948 which the funds of the board and of the district shall be
949 deposited in any qualified public depository as defined in s.
950 280.02, and such deposits shall be secured in the manner
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951 provided in chapter 280.
952 Section 35. For the purpose of incorporating the amendment
953 made by this act to section 280.02, Florida Statutes, in a
954 reference thereto, section 631.221, Florida Statutes, is
955 reenacted to read:
956 631.221 Deposit of moneys collected.—The moneys collected
957 by the department in a proceeding under this chapter shall be
958 deposited in a qualified public depository as defined in s.
959 280.02, which depository with regards to such funds shall
960 conform to and be bound by all the provisions of chapter 280, or
961 invested with the Chief Financial Officer pursuant to chapter
962 18. For the purpose of accounting for the assets and
963 transactions of the estate, the receiver shall use such
964 accounting books, records, and systems as the court directs
965 after it hears and considers the recommendations of the
966 receiver.
967 Section 36. For the purpose of incorporating the amendment
968 made by this act to section 280.02, Florida Statutes, in a
969 reference thereto, paragraph (c) of subsection (3) of section
970 723.06115, Florida Statutes, is reenacted to read:
971 723.06115 Florida Mobile Home Relocation Trust Fund. —
972 (3) The department shall distribute moneys in the Florida
973 Mobile Home Relocation Trust Fund to the Florida Mobile Home
974 Relocation Corporation in accordance with the following:
975 (c) Funds transferred from the trust fund to the
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976 corporation shall be transferred electronically and shall be
977 transferred to and maintained in a qualified public depository
978 as defined in s. 280.02 which is specified by the corporation.
979 Section 37. This act shall take effect July 1, 2024.
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CS/CS/HB 613
HOUSE OF REPRESENTATIVES STAFF ANALYSIS
BILL #: CS/CS/HB 613 Mobile Home Park Lot Tenancies
SPONSOR(S): State Administration & Technology Appropriations Subcommittee, Regulatory Reform &
Economic Development Subcommittee, Stark and others
TIED BILLS: IDEN./SIM. BILLS: CS/SB 1140
REFERENCE ACTION ANALYST STAFF DIRECTOR or
BUDGET/POLICY CHIEF
1) Regulatory Reform & Economic Development 13 Y, 0 N, As CS Wright Anstead
Subcommittee
2) State Administration & Technology 12 Y, 1 N, As CS Helpling Topp
Appropriations Subcommittee
3) Commerce Committee Wright Hamon
SUMMARY ANALYSIS
Chapter 723, F.S., the “Florida Mobile Home Act,” addresses the unique relationship between a mobile home
owner and a mobile home park owner, and applies to residential tenancies where a mobile home is placed
upon a lot that is rented or leased from a mobile home park that has 10 or more lots offered for rent or lease.
The Division of Condominiums, Timeshares, and Mobile Homes (CTMH) under the Department of Business
and Professional Regulation (DBPR) has the power and duty to enforce and ensure certain compliance with
the Florida Mobile Home Act, which includes running a mediation program.
The bill:
Provides that, after the last meeting to resolve a dispute regarding a rent increase, the mobile home
park owner and home owners may immediately enter into an agreement to initiate mediation and select
their own mediator.
Requires home owners to provide the following documents to the park owner upon filing a petition with
CTMH:
o The homeowners’ petition for mediation on a form adopted by CTMH rule;
o The written designation with lot identification for each signature;
o The notice or notices of lot rental increase, reduction in services or utilities, or change in rules
and regulations that is being challenged as unreasonable; and
o The records that verify the selection of the homeowners’ committee.
Requires CTMH to appoint a qualified mediator to conduct mediation proceedings, if the parties have
not selected their own mediator, and notify the parties within 20 days after receipt of a mediation
petition.
Provides that a civil action may not be filed until the dispute has been submitted to mediation.
Provides that a live-in health care aide must have ingress and egress to and from the mobile home
owner's site without additional rent, fee, or any charge whatsoever, except the cost of a background
check if one is required.
Provides that the live-in health care aide or the aide's assistant does not have any rights of tenancy in
the mobile home park.
The bill does not likely have an impact on state government revenues or expenditures.
The bill provides an effective date of July 1, 2024.
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
Department of Business and Professional Regulation
The Florida Department of Business and Professional Regulation regulates and licenses various
businesses and professionals in Florida through the following divisions:
• The Division of Administration,
• The Division of Alcoholic Beverages and Tobacco,
• The Division of Certified Public Accounting,
• The Division of Drugs, Devices, and Cosmetics,
• The Division of Florida Condominiums, Timeshares, and Mobile Homes (CTMH),
• The Division of Hotels and Restaurants,
• The Division of Pari-mutuel Wagering,
• The Division of Professions,
• The Division of Real Estate,
• The Division of Regulation,
• The Division of Technology, and
• The Division of Service Operations.1
CTMH provides consumer protection for Florida residents living in regulated communities through
education, complaint resolution, mediation and arbitration, and developer disclosure. 2 CTMH has
limited regulatory authority over the following business entities and individuals:3
• Condominium Associations;
• Cooperative Associations;
• Florida Mobile Home Parks and related associations;
• Vacation Units and Timeshares;
• Yacht and Ship Brokers and related business entities; and
• Homeowners’ Associations (jurisdiction is limited to arbitration of election and recall disputes).
Mobile Home Parks
Chapter 723, F.S., the “Florida Mobile Home Act,” addresses the unique relationship between a mobile
home owner and a mobile home park owner.4 The provisions in Ch. 723, F.S., apply to residential
tenancies where a mobile home is placed upon a lot that is rented or leased from a mobile home park
that has 10 or more lots offered for rent or lease.5
CTMH has the power and duty to enforce and ensure compliance with the Florida Mobile Home Act
relating to the rental, development, and sale of mobile home parks. However, CTMH does not have the
power or duty to enforce mobile home park rules and regulations or to enforce certain provisions
related to park maintenance and infrastructure, homeowner code compliance and maintenance, and
certain unreasonable lot rental agreements.6
CTMH may adopt rules pursuant to ss. 120.536(1) and 120.54, F.S., relating to the requirements in the
Administrative Procedures Act for the adoption of rules by agencies, to implement and enforce the
provisions of ch. 723, F.S, including rules to authorize amendments to an approved prospectus or
1 S. 20.165, F.S.
2 Department of Business and Professional Regulation, Division of Florida Condominiums, Timeshares, and Mob ile Homes,
http://www.myfloridalicense.com/DBPR/condos-timeshares-mobile-homes/, (last visited Mar. 19, 2021).
3 Id.
4 S. 723.004, F.S.
5 S. 723.002(1), F.S.
6 As outlined in ss. 723.022, 723.023, and 723.033, F.S.
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offering circular and to establish a category of minor violations of ch. 723, F.S., or rules promulgated
pursuant thereto.7 CTMH may also adopt rules for mediation procedures.8
Chapter 723.003, F.S., provides the following relevant definitions:
“Mobile home park” or “park” means a use of land in which lots or spaces are offered for rent or
lease for the placement of mobile homes and in which the primary use of the park is residential. 9
“Mobile home owner,” “mobile homeowner,” “home owner,” or “homeowner” means a person
who owns a mobile home and rents or leases a lot within a mobile home park for residential
use.10
Mobile Home Park Rent Increases
The mobile home park owner may increase the rental amount upon the expiration of the assumed
rental agreement “in an amount deemed appropriate by the mobile home park owner.” 11 The park
owner must give affected mobile home owners and the board of directors of the homeowners’
association, if one has been formed, at least a 90-day notice of a lot rental increase.12
Upon the sale of a mobile home on a rented lot, the amount of a lot rental increase is to be disclosed
and agreed to by the purchaser by executing a rental agreement that sets forth the new lot rental
amount.13 A lot rental amount may not be increased during the term of a rental agreement. However, if
the rental agreement is for a term of more than 12 months, the lot rental amount may be increased
during the rental term but not more frequently than annually. Pass-through charges 14 may also be
increased during the term of the rental agreement.15
Lot rental increases may not be arbitrary or discriminatory between similarly situated tenants in the
park, and the lot rental may not increase during the term of the rental agreement.16 However, the
mobile home park owner may pass on, at any time during the term of the rental agreement, ad valorem
property taxes and utility charges, or increases of either, if the passing on of these costs was disclosed
prior to the tenancy.17
A park owner must give written notice to each affected mobile home owner and the board of directors of
the homeowners’ association, if one has been formed, at least 90 days before any increase in the lot
rental amount or reduction in services or utilities provided by the park owner or change in rules and
regulations. 18 The notice must identify all other affected homeowners, which may be by lot number,
name, group, or phase. If the affected homeowners are not identified by name, the park owner must
make the names and addresses available upon request. 19
A committee of homeowners and the park owner must meet no later than 60 days before the effective
date of a rent increase to discuss the reasons for the increase. The homeowners’ committee may
consist of no more than five people, who are mobile homeowners in the park and who are designated
by a majority of the owners or by the board of directors of the homeowners’ association if formed as
provided under s. 723.075, F.S.20 At the meeting, the park owner or subdivision developer must in good
7 See ss. 723.006(7), (8), (9), and (10), F.S.
8 S. 723.038, F.S.
9 S. 723.003(12), F.S.
10 S. 723.003(11), F.S.
11
S. 723.059(4), F.S.
12 S. 723.037(1), F.S.
13 S. 723.031(5), F.S.
14 S. 723.003(17), F.S, defines the term “pass -through charge” to mean “the mobile home owner's proportionate share of the necessary
and actual direct costs and impact or hookup fees for a governmentally mandated capital improvement, which may include the
necessary and actual direct costs and impact or hookup fees incurred for capital improvements required for public or private re gulated
utilities.”
15 S. 723.031(5)(b), F.S.
16 S. 723.031(5), F.S.
17 S. 723.031(5)(c), F.S.
18 S. 723.037(1), F.S.
19 Id.
20 S. 723.037(4)(a), F.S.
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faith disclose and explain all material factors resulting in the decision to increase the lot rental amount,
reduce services or utilities, or change rules and regulations, including how those factors justify the
specific change proposed.21
Dispute Resolution
If the meeting regarding a rent increase does not resolve the issue, then additional meetings may be
requested. Section 723.037(4), F.S., provides that, if subsequent meetings are unsuccessful, within 30
days of the last scheduled meeting, the mobile home owners may petition CTMH to initiate mediation if
a majority of the affected have designated, in writing, that: 22
The rental increase is unreasonable;
The rental increase has made the lot rental amount unreasonable;
The decrease in services or utilities is not accompanied by a corresponding decrease in rent or
is otherwise unreasonable; or
The change in the rules and regulations is unreasonable.
Within 30 days of the last scheduled meeting, a park owner may also petition CTMH for mediation of
the dispute.23
If the mediation does not successfully resolve the dispute, then the parties may file an action in circuit
court to challenge the rental increase.24 The court may refer the action to nonbinding arbitration
pursuant to s. 44.103, F.S.
Section 723.038, F.S., provides that, upon receipt of the petition from either party, CTMH must appoint
a qualified mediator to conduct mediation proceedings unless the parties timely notify CTMH in writing
that they have selected a mediator.
The person appointed by CTMH to serve as mediator must be a qualified mediator from a list of circuit
court mediators in each judicial circuit and who has met training and educational requirements
established by the Supreme Court. If such mediators are not available, CTMH may select a mediator
from the list maintained by the Florida Growth Management Conflict Resolution Consortium. 25
Within 20 days of receiving a petition to mediate a dispute, CTMH must notify the parties that a
mediator has been appointed by FTMH. The parties may accept the mediator appointed by CTMH or,
within 30 days, select a mediator to mediate the dispute. 26
The parties may agree to select their own mediator to be governed by the rules of procedure
established by CTMH. The parties may agree to waive mediation, or the petitioning party may withdraw
the petition prior to mediation. Upon the conclusion of the mediation, the mediator must notify CTMH
that the mediation has been concluded.27
The resolution of a dispute arising from a mediation may not be deemed to be final agency action.
However, either party may initiate an action in the circuit court to enforce a resolution or agreement
arising from a mediation proceeding which has been reduced to writing. The circuit court must cons ider
such resolution or agreement made during the mediation to be a contract for the purpose of providing a
remedy to the complaining party.28
21 S. 723.037(4)(b), F.S.
22 S. 723.037(5)(a), F.S.
23 S. 723.037(5)(b), F.S.
24 Ss. 723.038 and 723.0381, F.S.
25 S. 1004.59, F.S., establishes the Florida Conflict Resolution Consortium at Florida State University “to reduce the public and private
costs of litigation; resolve public disputes, including those related to growth management issues, more quickly and effective ly; and
improve intergovernmental communications, cooperation, and consensus building.” See Florida Conflict Resolution Consortium at
https://consensus.fsu.edu/index.html (last visited Jan. 23, 2024).
26 S. 723.038(4), F.S.
27 S. 723.038(5), F.S.
28 S. 723.038(6), F.S.
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If mediation does not resolve the dispute, either party may file an action in the circuit court. 29
Invitees
An invitee30 of a mobile home owner may enter or leave the home owner's site without the home owner
or invitee being required to pay additional rent, a fee, or any charge whatsoever. Any mobile home park
rule or regulation is null and void if it provides fees or charges to the contrary to this right of access.31
All guests, family members, or invitees of a mobile home owner are required to abide by properly
promulgated rules and regulations.
Section 723.051(3), F.S., provides that an “invitee” is a person whose stay at the request of a mobile
home owner does not exceed 15 consecutive days or 30 total days per year, unless such person has
the permission of the park owner or unless permitted by a properly promulgated rule or regulation. The
spouse of a mobile home owner shall not be considered an invitee.
Live-in Aides
The Fair Housing Act requires owners and landlords to make reasonable accommodations if the
accommodation may be necessary to ensure that a person with a disability has equal opportunity to
use and enjoy the dwelling. An example of a reasonable accommodation is not counting a live-in aide
as an additional tenant or guest.32
A reasonable accommodation is a change, exception, adaptation or modification to a policy, program or
service that allows a person with a disability to use and enjoy a dwelling. The term also applies to public
and common use spaces.
In general, a live-in aide is a person who resides with one or more elderly persons, near-elderly
persons, or persons with disabilities, and who:33
Is determined to be essential to the care and well-being of the persons;
Is not obligated for the support of the persons; and
Would not be living in the unit except to provide the necessary supportive services.
29 S. 723.0381(1), F.S.
30 Black's Law Dictionary (11th ed. 2019) defines the term “invitee” to mean “someone who has an express or implied invitation to enter
or use another's premises, such as a business visitor or a member of the public to whom the premises are held open. The occup ier has
a duty to inspect the premises and to warn the invitee of dangerous conditions.”
31 S. 723.051(1), F.S.
32 Disability Rights Florida, Fair Housing Act, https://disabilityrightsflorida.org/disability-topics/disability_topic_info/fair_housing_act (last
visited Jan. 30, 2024).
33 For example, see 24 C.F.R § 5.403
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Effect of the Bill
The bill provides that, if the home owners file a petition for mediation with CTMH within 30 days of the
last meeting to resolve a dispute regarding a rent increase, the mobile home owners must provide to
the park owner, by certified mail, return receipt requested, a copy of the following:
The homeowners’ petition for mediation on a form adopted by CTMH rule;
The written designation with lot identification for each signature;
The notice or notices of lot rental increase, reduction in services or utilities, or change in rules
and regulations that is being challenged as unreasonable; and
The records that verify the selection of the homeowners’ committee.
The bill clarifies that a park owner, within 30 days after the last meeting to resolve a dispute regarding a
rent increase, may also petition CTMH to initiate mediation of the dispute.
The bill requires that a petition for mediation must be filed with CTMH in all cases for a determination of
adequacy and conformance of the petition requirements.
The bill requires CTMH to dismiss a petition for mediation in the event that the park owner and mobile
home owners fail to comply with required petition procedures.
The bill allows the park owner, within 10 days after receipt of the petition from the homeowners, to file
objections to the petition with CTMH. If a mediator has not been selected, CTMH must assign a
mediator within 10 days after receipt of the petition by the park owner.
The bill provides that the mobile home park owner and home owners may immediately enter into an
agreement to initiate mediation and select their own mediator.
The bill provides that a mediator selected by the parties:
Must be a qualified mediator selected from the list of circuit court mediators in each judicial
circuit or the list maintained by the Florida Growth Management Conflict Resolution Consortium.
Has judicial immunity in the same manner and to the same extent as a judge.
The bill clarifies that CTMH is required to appoint a qualified mediator to conduct mediation
proceedings and notify the parties within 20 days after receipt of a petition, if the parties have not
selected their own mediator.
The bill provides that a civil action may not be initiated unless the dispute has been submitted to
mediation.
Related to live-in aides and their assistants, the bill provides that:
A live-in health care aide or the aide's assistant, as provided for in the federal Fair Housing Act,
must have ingress and egress to and from the mobile home owner's site without the mobile
home owner, live-in health care aide, aide's assistant, or invitee being required to pay additional
rent, a fee, or any charge whatsoever, except that the mobile home owner must pay the cost of
a background check for the live-in health care aide or the aide's assistant if one is required.
The live-in health care aide or the aide's assistant does not have any rights of tenancy in the
mobile home park.
The mobile home owner must provide the name of the live-in health care aide or the aide's
assistant to the park owner or park manager and the information required to conduct the
background check if one is required.
The mobile home owner is responsible for removing the live-in health care aide or the aide's
assistant and covering the costs associated with such removal.
The bill requires CTMH to adopt rules to enforce the bill.
B. SECTION DIRECTORY:
Section 1: Amends s. 723.037, F.S.; relating to options for mediation.
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Section 2: Amends s. 723.038, F.S.; providing requirements and procedures for mediation.
Section 3: Amends s. 723.0381, F.S.; limiting when certain actions may be filed in circuit court.
Section 4: Amends s. 723.051, F.S.; relating to live-in health aides.
Section 5: Requires CTMH to adopt rules.
Section 6: Provides an effective date.
II. FISCAL ANALYSIS & ECONOMIC IMPACT STATEMENT
A. FISCAL IMPACT ON STATE GOVERNMENT:
1. Revenues:
None.
2. Expenditures:
None.
B. FISCAL IMPACT ON LOCAL GOVERNMENTS:
1. Revenues:
None.
2. Expenditures:
None.
C. DIRECT ECONOMIC IMPACT ON PRIVATE SECTOR:
The bill may allow more mobile home owners to have a live-in aide without an additional charge.
D. FISCAL COMMENTS:
None.
III. COMMENTS
A. CONSTITUTIONAL ISSUES:
1. Applicability of Municipality/County Mandates Provision:
Not applicable. This bill does not appear to require counties or municipalities to spend funds or take
action requiring the expenditures of funds; reduce the authority that counties or municipalities have
to raise revenues in the aggregate; or reduce the percentage of state tax shared with counties or
municipalities.
2. Other:
None.
B. RULE-MAKING AUTHORITY:
The bill requires CTMH to adopt rules to enforce the bill.
C. DRAFTING ISSUES OR OTHER COMMENTS:
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The bill is unclear if a requirement that DBPR appoint a mediator is within 10 days after the park owner
files objections to the home owner’s petition, within 10 days after the home owners have filed their
petition, or within 10 days after the park owner files a petition.
IV. AMENDMENTS/COMMITTEE SUBSTITUTE CHANGES
On February 1, 2024, the Regulatory Reform & Economic Development Subcommittee adopted an
amendment and reported the bill favorably as a committee substitute. The committee substitute:
Removes provisions giving DBPR jurisdiction over certain park and owner maintenance and certain
unreasonable lot rental agreements.
Provides that a civil action may not be filed until the dispute has been through mediation.
Clarifies when the parties may immediately file a petition and select a mediator.
Requires DBPR to assign a mediator upon receipt of a petition, if one has not already been
selected by the parties and notify the parties of a filed petition within 20 days of receiving the
petition.
Provides requirements for what information and documents must be in a petition submitted to
DBPR.
Requires DBPR to dismiss a deficient petition.
On February 13, 2024, the State Administration & Technology Appropriations Subcommittee adopted one
amendment and reported the bill favorably as a committee substitute. The amendment:
Removed the language clarifying the purpose of the Florida Mobile Home Relocation (Corporation).
Removed the increase in relocation payments to mobile home owners from the Corporation.
Removed authorization for a moving contractor to redeem vouchers from the Corporation up to 2
years after the date of issuance.
This analysis is drafted to the committee substitute as passed by the State Administration & Technology
Appropriations Subcommittee.
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F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
CS/CS/HB 613 2024
1 A bill to be entitled
2 An act relating to mobile home park lot tenancies;
3 amending s. 723.037, F.S.; requiring that a petition
4 for mediation be filed with the Division of Florida
5 Condominiums, Timeshares, and Mobile Homes of the
6 Department of Business and Professional Regulation to
7 determine its adequacy and conformance to certain
8 requirements; requiring mobile home owners to provide,
9 in a specified manner, certain documents to a mobile
10 home park owner; authorizing a mobile home park owner
11 and the mobile home owners, by mutual agreement, to
12 select a mediator; requiring the division to dismiss a
13 petition for mediation under certain circumstances;
14 authorizing a mobile home park owner to file
15 objections to the petition for mediation within a
16 specified timeframe; requiring the division to assign
17 a mediator within a specified timeframe under certain
18 circumstances; amending s. 723.038, F.S.; authorizing
19 the parties to a dispute to agree to immediately
20 select a mediator and initiate mediation proceedings;
21 requiring the division to appoint a qualified mediator
22 and notify the parties within a specified timeframe;
23 conforming a provision to changes made by the act;
24 amending s. 723.0381, F.S.; prohibiting the initiation
25 of a civil action unless the dispute is first
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26 submitted to mediation; amending s. 723.051, F.S.;
27 providing that a live-in health care aide must have
28 ingress and egress to and from a mobile home owner's
29 site without such owner or aide being required to pay
30 additional rent, a fee, or any charge; requiring a
31 mobile home owner to pay the cost of any necessary
32 background check for the live-in health care aide;
33 specifying that a live-in health care aide does not
34 have any rights of tenancy in the mobile home park;
35 requiring a mobile home owner to notify the park owner
36 or park manager of certain information relating to the
37 live-in aide; requiring the mobile home owner to
38 remove the live-in health care aide and cover certain
39 costs associated with such removal if necessary;
40 requiring the division to adopt rules; providing an
41 effective date.
42
43 Be It Enacted by the Legislature of the State of Florida:
44
45 Section 1. Paragraphs (b), (c), and (d) of subsection (5)
46 of section 723.037, Florida Statutes, are redesignated as
47 paragraphs (c), (d), and (e), respectively, present paragraph
48 (b) of that subsection is amended, and new paragraphs (b), (f),
49 (g), and (h) are added to that subsection, to read:
50 723.037 Lot rental increases; reduction in services or
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51 utilities; change in rules and regulations; mediation.—
52 (5)
53 (b) A petition for mediation must be filed with the
54 division in all cases for a determination of adequacy and
55 conformance of the petition with the requirements in paragraph
56 (a). Upon filing the petition with the division, the mobile home
57 owners must provide to the park owner, by certified mail, return
58 receipt requested, a copy of all of the following:
59 1. The home owners' petition for mediation on a form
60 adopted by the division by rule.
61 2. The written designation required by this subsection,
62 which must include the lot identification for each signature.
63 3. The notice or notices of a lot rental increase,
64 reduction in services or utilities, or change in rules and
65 regulations which is being challenged as unreasonable.
66 4. The records that verify the selection of the
67 homeowners' committee in accordance with subsection (4).
68 (c)(b) A park owner, within the same time period, may also
69 petition the division to initiate mediation of the dispute
70 pursuant to s. 723.038.
71 (f) As an alternative to the appointment of a mediator by
72 the division, the park owner and the mobile home owners may, by
73 mutual agreement, select a mediator pursuant to s. 723.038(2)
74 and (4).
75 (g) The division must dismiss a petition for mediation if
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76 the park owner and mobile home owners fail to comply with this
77 subsection.
78 (h) Within 10 days after receipt of a petition from the
79 mobile home owners, the park owner may file objections to the
80 petition with the division. The division must dismiss any
81 petition that is not timely filed, does not meet the
82 requirements of this subsection, or is otherwise found deficient
83 by the division. If a mediator has not been selected pursuant to
84 paragraph (f), the division must assign a mediator within 10
85 days after receipt of the petition by the park owner.
86
87 The purpose of this subsection is to encourage discussion and
88 evaluation by the parties of the comparable mobile home parks in
89 the competitive market area. The requirements of this subsection
90 are not intended to be enforced by civil or administrative
91 action. Rather, the meetings and discussions are intended to be
92 in the nature of settlement discussions before prior to the
93 parties proceed proceeding to litigation of any dispute.
94 Section 2. Subsections (1), (2), (4), and (9) of section
95 723.038, Florida Statutes, are amended to read:
96 723.038 Dispute settlement; mediation.—
97 (1) Either party may petition the division to appoint a
98 mediator and initiate mediation proceedings or the parties may
99 agree to immediately select a mediator and initiate mediation
100 proceedings pursuant to the criteria outlined in subsections (2)
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101 and (4).
102 (2) The division, upon receipt of a petition, shall
103 appoint a qualified mediator to conduct mediation proceedings
104 and notify the parties within 20 days after such appointment,
105 unless the parties timely notify the division in writing that
106 they have selected a mediator. A person appointed by the
107 division or selected by the parties must shall be a qualified
108 mediator from a list of circuit court mediators in each judicial
109 circuit who has met training and educational requirements
110 established by the Supreme Court. If such mediators are not
111 available, the division or the parties may select a mediator
112 from the list maintained by the Florida Growth Management
113 Conflict Resolution Consortium. The division shall adopt
114 promulgate rules of procedure to govern such proceedings in
115 accordance with the rules of practice and procedure adopted by
116 the Supreme Court. The division shall also establish, by rule,
117 the fee to be charged by a mediator which shall not exceed the
118 fee authorized by the circuit court.
119 (4) After the date of the last scheduled meeting held
120 pursuant to s. 723.037(4), the parties to a dispute may agree to
121 immediately select a mediator and initiate mediation proceedings
122 pursuant to this section Upon receiving a petition to mediate a
123 dispute, the division shall, within 20 days, notify the parties
124 that a mediator has been appointed by the division. The parties
125 may accept the mediator appointed by the division or, within 30
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126 days, select a mediator to mediate the dispute pursuant to
127 subsection (2). The parties shall each pay a $250 filing fee to
128 the mediator appointed by the division or selected by the
129 parties, within 30 days after the division notifies the parties
130 of the appointment of the mediator. The $250 filing fee shall be
131 used by the mediator to defray the hourly rate charged for
132 mediation of the dispute. Any portion of the filing fee not used
133 shall be refunded to the parties.
134 (9) A mediator appointed by the division or selected by
135 the parties pursuant to this section has shall have judicial
136 immunity in the same manner and to the same extent as a judge.
137 Section 3. Subsection (1) of section 723.0381, Florida
138 Statutes, is amended to read:
139 723.0381 Civil actions; arbitration.—
140 (1) A civil action may not be initiated unless the dispute
141 has been submitted to mediation pursuant to s. 723.037(5). After
142 mediation of a dispute pursuant to s. 723.038 has failed to
143 provide a resolution of the dispute, either party may file an
144 action in the circuit court.
145 Section 4. Subsection (1) of section 723.051, Florida
146 Statutes, is amended to read:
147 723.051 Invitees and live-in health care aides; rights and
148 obligations.—
149 (1) An invitee of a mobile home owner, or a live-in health
150 care aide as provided for in the federal Fair Housing Act, must
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151 shall have ingress and egress to and from the mobile home
152 owner's site without the mobile home owner, live-in health care
153 aide, or invitee being required to pay additional rent, a fee,
154 or any charge whatsoever, except that the mobile home owner must
155 pay the cost of a background check for the live-in health care
156 aide if one is required. Any mobile home park rule or regulation
157 providing for fees or charges contrary to the terms of this
158 section is null and void. The live-in health care aide does not
159 have any rights of tenancy in the mobile home park and the
160 mobile home owner must notify the park owner or park manager of
161 the name of the live-in health care aide and provide the
162 information required to have the background check, if one is
163 necessary. The mobile home owner has the responsibility to
164 remove the live-in health care aide should it become necessary
165 and to cover the costs associated with such removal.
166 Section 5. The Division of Florida Condominiums,
167 Timeshares, and Mobile Homes of the Department of Business and
168 Professional Regulation shall adopt rules to implement and
169 administer this act.
170 Section 6. This act shall take effect July 1, 2024.
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COMMERCE COMMITTEE
CS/CS/HB 613 by Rep. Stark
Mobile Home Park Lot Tenancies
AMENDMENT SUMMARY
February 22, 2024
Amendment 1 by Rep. Stark (lines 83-85):
• Clarifies when DBPR must assign a mediator after receipt of the park owner’s objection.
COMMITTEE/SUBCOMMITTEE AMENDMENT
Bill No. CS/CS/HB 613 (2024)
Amendment No. 1
COMMITTEE/SUBCOMMITTEE ACTION
ADOPTED (Y/N)
ADOPTED AS AMENDED (Y/N)
ADOPTED W/O OBJECTION (Y/N)
FAILED TO ADOPT (Y/N)
WITHDRAWN (Y/N)
OTHER
1 Committee/Subcommittee hearing bill: Commerce Committee
2 Representative Stark offered the following:
3
4 Amendment
5 Remove lines 83-85 and insert:
6 by the division. If a mediator has not been selected pursuant to
7 paragraph (f), the division must assign a mediator within 10
8 days after receipt of the park owner’s objection to the
9 petition.
291963 - h613-line 83.docx
Published On: 2/21/2024 5:40:46 PM
Page 1 of 1
CS/HB 637
HOUSE OF REPRESENTATIVES STAFF ANALYSIS
BILL #: CS/HB 637 Treatment by a Medical Specialist
SPONSOR(S): Insurance & Banking Subcommittee, Yeager and others
TIED BILLS: IDEN./SIM. BILLS: CS/SB 808
REFERENCE ACTION ANALYST STAFF DIRECTOR or
BUDGET/POLICY CHIEF
1) Insurance & Banking Subcommittee 17 Y, 0 N, As CS Herrera Lloyd
2) Appropriations Committee 27 Y, 0 N Perez Pridgeon
3) Commerce Committee Herrera Hamon
SUMMARY ANALYSIS
Florida’s Workers’ Compensation Law requires employers to provide injured employees all medically
necessary remedial treatment, care, and attendance for such period as the nature of the injury or the process
of recovery may require. The Department of Financial Services (DFS), Division of Workers’ Compensation
(DWC), provides regulatory oversight of Florida’s workers’ compensation system, including the Workers’
Compensation health care delivery system. The law specifies certain reimbursement formulas and
methodologies to compensate Workers’ Compensation health care providers that provide medical services to
injured employees.
If a firefighter, law enforcement officer, correctional officer, or correctional probation officer becomes disabled
by tuberculosis, heart disease, or hypertension, Florida law presumes that the disease has been contracted in
the line of duty, subject to certain limitations, and is therefore compensable under workers compensation law,
unless the contrary can be shown by competent evidence.
To be eligible for this legal presumption, the officer or firefighter must have taken a pre-employment physical
exam that failed to reveal any evidence of tuberculosis, heart disease, or hypertension.
The bill permits firefighters, law enforcement officers, correctional officers, or correctional probation officers in
need of medical treatment for a compensable, presumptive condition to file a written notice with their
employer/carrier to obtain authorization of treatment from the selected medical specialist. The employer/carrier
may approve the selected medical specialist or authorize an alternative specialist with equal or greater
qualifications. The authorization must be resolved within 5 business days and the appointment date must be
within 30 business days of the written notice. If the authorization is not timely, the firefighter’s or officer’s
selected medical specialist is automatically authorized.
Also, the bill allows a maximum reimbursement to such medical specialists to 200 percent of the
reimbursement allowed by Medicare, rather than 110 percent (non-surgeons) and 140 percent (surgeons).
The bill will likely have an indeterminate, but significant fiscal impact on the State Risk Management Trust
Fund. Local governments may experience increased costs. See Fiscal Analysis.
The bill has an effective date of October 1, 2024.
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
Qualifications for Employment as a Firefighter, Law Enforcement, Correctional, or Probation Officer
Florida law sets forth the minimum requirements for any person to be employed or appointed in a full-
or part-time capacity, or in an auxiliary capacity, as a law enforcement officer, correctional officer, or
correctional probation officer; or to be appointed as an auxiliary correctional officer by a private entity
contracting with the Department of Corrections.
To become a law enforcement, correctional, or correctional probation officer, an applicant must satisfy
age, education, and citizenship requirements; complete a training course; pass a certification exam;
pass a criminal background check; and pass a physical examination. 1
The physical examination requires screening for evidence of tuberculosis, heart disease, or
hypertension.2
In addition to law enforcement, correctional, and correctional probation officers, the presumption
applies to firefighters working for any unit of Florida government. 3
Workers’ Compensation Presumption
A legal presumption makes it easier for an employee to obtain Workers’ Compensation benefits by
shifting the burden of proof in a disability determination from the employee to the employer. 4
In general, occupational diseases are compensable if:
A condition peculiar to the occupation causes the disease;
The employee contracts the disease on the job;
The job is associated with a particular hazard of the disease;
The incidence of the disease is substantially higher in the occupation than in the public;
The nature of the employment was a major contributing cause of the disease; and
Epidemiological studies show that exposure to the specific substance involved, at the levels
to which the employee was exposed, may cause the precise disease sustained by the
employee.5
Florida law includes a presumption that treats tuberculosis, heart disease, or hypertension as an
occupational disease associated with firefighters, law enforcement officers, correctional officers, and
correctional probation officers. If these employees become temporarily or partially disabled by
tuberculosis, heart disease, or hypertension, the law presumes that the employee contracted the
disease in the line of duty unless the contrary can be shown by competent evidence. 6
However, firefighters, law enforcement officers, correctional officers, and correctional probation officers
are entitled to the presumption only if the officer passed a pre-employment physical exam that failed to
reveal any evidence of tuberculosis, heart disease, or hypertension. 7
1 S. 943.13, F.S.
2 S. 943.13(6), F.S.
3 Ss. 112.18(1)(a) and 175.231, F.S.
4 Caldwell v. Division of Retirement, Florida Dept. of Administration , 372 So. 2d 438, (Fla. 1979).
5 S. 440.151(2), F.S.
6 Ss. 112.18(1)(a) and 175.231, F.S.
7 S. 112.18(1)(a), F.S.
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If the employee’s pre-employment physical failed to reveal any evidence of disease, the employee must
demonstrate the he or she suffers from tuberculosis, heart disease, or hypertension, but does not have
to present evidence of causation that is typically required to demonstrate that an occupational disease
is compensable.8
To overcome the statutory presumption, the employer must present clear and convincing evidence that
the disease was caused by a non-work-related event or exposure.9
Pre-Employment Physicals
To be employed as a law enforcement, correctional, or correctional probation officer, an applicant must
pass a physical exam.10 The law that establishes minimum employment standards states that such
officers are eligible for the presumption of s. 112.18, F.S., only if the physical exam fails to reveal any
evidence of tuberculosis, heart disease, or hypertension.11
To enroll in firefighting training courses and be certified as a firefighter, an applicant must be in good
physical condition, as determined by a doctor or nurse practitioner.12 The law does not mention specific
screening for tuberculosis, heart disease, or hypertension. The medical professional must certify that
the applicant is medically fit to engage in firefighting training and does not have any pre-existing or
current condition, illness, injury, or deficiency.13
Division of Workers’ Compensation
Florida’s Workers’ Compensation Law 14 requires employers to provide injured employees all medically
necessary remedial treatment, care, and attendance for such period as the nature of the injury or the
process of recovery may require.15 The Department of Financial Services (DFS) provides regulatory
oversight of Florida’s Workers’ Compensation system, including the Workers’ Compensation health
care delivery system. The law specifies certain reimbursement formulas and methodologies to
compensate workers’ compensation health care providers 16 that provide medical services to injured
employees. Where a reimbursement amount or methodology is not specifically included in statute, the
Three-Member Panel is authorized to annually adopt statewide schedules of maximum reimbursement
allowances (MRAs) to provide uniform fee schedules for the reimbursement of various medical
services.17 DFS incorporates the MRAs approved by the Three-Member Panel in reimbursement
manuals 18 through the rulemaking process provided by the Administrative Procedures Act. 19 In 2023,
CS/CS/HB 487 eliminated the authority of the Three-Member Panel to adopt MRA’s for individually
licensed health care providers, work-hardening programs, pain programs, and durable medical
equipment providers.20 Instead, it mandates DFS to annually publish the maximum reimbursement
allowance for physician and non-hospital reimbursements on its website by July 1st , effective the
following January 1st .21
8
McDonald v. City of Jacksonville, 286 So. 3d 792 (Fla. 1st DCA 2019), citing Walters v. State, DOC/Div. of Risk Management, 100 So.
3d 1173 (Fla. 1st DCA 2019), rehearing denied, review denied 108 So. 3d 654 (The presumption is an adequate substitute for evidence
of occupational causation, and compels the legal result that a claimant has proven occupational causation).
9 Butler v. City of Jacksonville, 980 So. 2d 1250 (Fla. 1st DCA 2008).
10 S. 943.13(6), F.S.
11
Id.
12 S. 633.412(5), F.S.
13 Rule 69A-37.037 and Form DFS-K3-1022.
14 Ch. 440, F.S.
15 S. 440.13(2)(a), F.S.
16 The term “health care provider” includes a physician or any recognized practitioner licensed to provide skilled services pursuant to a
prescription or under the supervision or direction of a physician. It also includes any hospital licensed under chapter 395 a nd any health
care institution licensed under chapter 400 or chapter 429. S. 44 0.13(1)(g), F.S.
17 S. 440.13(12), F.S.
18 Ss. 440.13(12) and (13), F.S., and Ch. 69L-7, F.A.C.
19 Ch. 120, F.S.
20 Ch. 2023-144, Laws of Fla.
21 Id.
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Medical Services
The Division of Workers’ Compensation (DWC) is responsible for ensuring that employers provide
medically necessary treatment, care, and attendance for injured workers. Healthcare providers must
receive authorization from the insurer before providing treatment and submit treatment reports to the
insurer. Insurers must reimburse healthcare providers based on statewide schedules of maximum
reimbursement allowances developed by the DWC or an agreed-upon contract price. DWC mediates
utilization and reimbursement disputes.22
Eligibility for the Workers’ Compensation Presumption
In a disputed Workers’ Compensation determination, the legal presumption does not apply if a law
enforcement, correctional, or correctional probation officer:
Departed from the course of treatment prescribed by his or her physician, resulting in a
significant aggravation of the disease or disability or need for medical treatment; or
Was previously compensated for the disabling disease and departed from the treatment
prescribed by his or her physician, resulting in disability or increasing the disability or need
for medical treatment.23
To be eligible for workers’ compensation benefits, a law enforcement officer, correctional officer, or
correctional probation officer must make a claim for benefits prior to or within 180 days of leaving the
employment or the employing agency.24
Firefighters are not subject to the exclusion for prior treatment or compensation and they are not
covered by the claim-fling deadline that lets a law enforcement officer, correctional officer or
correctional probation officer file a claim up to 180 days after leaving the employment.
Thus, a firefighter suffering from tuberculosis, heart disease, or hypertension must advise his or her
employer of the injury within 90 days of the initial manifestation of the disease or 90 days after the
firefighter obtains a medical opinion that the injury (occupational disease) is due to the nature of the
firefighter’s employment.25
Reimbursement for Healthcare Providers
A three-member panel (panel), consisting of the Chief Financial Officer (CFO) or their designee and
two Governor appointees, sets the MRAs.26 Beginning with rates developed in 2024 and implemented
with rates effective January 1, 2025, health care providers and non-hospital rates are annually
published by DFS, instead of being included in the reimbursement manuals.27 DFS incorporates the
statewide schedules of the MRAs through rulemaking. In establishing the MRA manuals, the panel
considers the usual and customary levels of reimbursement for treatment, services, and care;28 the cost
impact to employers for providing reimbursement that ensures that injured workers have access to
necessary medical care; and the financial impact of the MRAs on healthcare providers and facilities. 29
Florida law requires the panel to develop MRA manuals that are reasonable, promote the Workers’
Compensation system’s healthcare cost containment and efficiency, and are sufficient to ensure that
medically necessary treatment is available for injured workers. 30
There are three different reimbursement manuals that determine statewide schedules of maximum
reimbursement allowances. The healthcare provider manual, developed by the DWC, limits the
22 S. 440.13, F.S.
23 S. 112.18(1)(b)(1), F.S.
24 S. 112.18(1)(b)(4), F.S.
25 S. 440.151(6) and 440.185(1), F.S.
26 Id.
27 Ch. 2023-144, Laws of Fla.
28 S. 440.13(12)(i)(1), F.S.
29 S. 440.13(12)(i)(2), F.S.
30 S. 440.13(12)(i)(3), F.S.
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maximum reimbursement for licensed physicians to 110 percent of Medicare reimbursement,31 while
reimbursement for surgical procedures is limited to 140 percent of Medicare. 32 The hospital manual,
developed by the panel, sets maximum reimbursement for outpatient scheduled surgeries at 60 percent
of usual and customary charges,33 while other outpatient services are limited to 75 percent of usual and
customary charges.34 Reimbursement of inpatient hospital care is limited based on a schedule of per
diem rates approved by the panel.35 The ambulatory surgical centers manual, developed by the panel,
limits reimbursement to 60 percent of usual and customary as such services are generally scheduled
outpatient surgeries. The prescription drug reimbursement manual limits reimbursement to the average
wholesale price plus a $4.18 dispensing fee.36 Repackaged or relabeled prescription medication
dispensed by a dispensing practitioner has a maximum reimbursement of 112.5 percent of the average
wholesale price plus an $8.00 dispensing fee.37 Fees may not exceed the schedules adopted under ch.
440, F.S., and department rule.38
Effect of the Bill
The bill permits firefighters, law enforcement officers, correctional officers, or correctional probation
officers in need of medical treatment for a compensable, presumptive condition to file a written notice
with their employer/carrier to obtain authorization of treatment from the selected medical specialist. The
employer/carrier may approve the selected medical specialist or authorize an alternative specialist with
equal or greater qualifications. The employer/carrier must authorize the selected medical specialist
within 5 business days of receiving the written notice. The appointment date with the authorized
medical specialist must be within 30 days of the written notice.
In the event that the employer/carrier fails to provide timely authorization, the firefighter’s or officer’s
selected medical specialist is automatically authorized. This notice and authorization process is an
express exception to the standard employer-directed provider selection process under the Workers'
Compensation law, wherein the employer/carrier selects the specialist.
The bill also increases the maximum reimbursement for medical specialists licensed under ch. 458 or
ch. 459, F.S. The maximum reimbursement is raised from 110 percent (non-surgeons) and 140 percent
(surgeons) to 200 percent of the Medicare allowance for both non-surgeons and surgeons.
This bill provides an effective date as of October 1, 2024.
B. SECTION DIRECTORY:
Section 1. Amends s. 112.18, F.S., relating to firefighters and law enforcement or correctional officers;
special provisions relative to disability.
Section 2. Providing an effective date of October 1, 2024.
II. FISCAL ANALYSIS & ECONOMIC IMPACT STATEMENT
A. FISCAL IMPACT ON STATE GOVERNMENT:
1. Revenues:
None.
2. Expenditures:
31 S. 440.13(12)(f), F.S.
32 S. 440.13(12)(g), F.S.
33 S. 440.13(12)(d), F.S.
34 S. 440.13(12)(a), F.S.
35 Id.
36 S. 440.13(12)(h), F.S.
37 Id.
38 S. 440.13(12)(f), F.S.
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The bill will likely have an indeterminate, but significant impact on the State Risk Management Trust
Fund. The state may experience an increase in claims costs related to the increase in the maximum
reimbursement, and to claimants selecting providers of their choice. 39 The estimated total impact to
the State Risk Management Trust Fund is approximately $2 million per year, provided by DFS.40
B. FISCAL IMPACT ON LOCAL GOVERNMENTS:
1. Revenues:
None.
2. Expenditures:
Local government may experience increased expenses associated with specialist treatment of
presumed conditions under the bill due to the increased fee allowed.
C. DIRECT ECONOMIC IMPACT ON PRIVATE SECTOR:
Specialist workers’ compensation medical providers may receive increased fees for treatment of
presumed conditions as provided for by the bill.
D. FISCAL COMMENTS:
None.
III. COMMENTS
A. CONSTITUTIONAL ISSUES:
1. Applicability of Municipality/County Mandates Provision:
The county/municipality mandates provision of Art. VII, section 18, of the Florida Constitution may
apply because this bill requires county/municipality governments that employ firefighters, law
enforcement officers, correctional officers, or correctional probation officers to fund additional
expenses related to those employees accessing specialist care for presumed conditions at a rate
higher than currently applicable Workers’ Compensation rates; however, an exception may apply.
The bill applies to all similarly situated persons, i.e., every county/municipality government that
employs such individuals, in addition to the state, which also employs such individuals.
2. Other:
None.
B. RULE-MAKING AUTHORITY:
None provided by the bill.
C. DRAFTING ISSUES OR OTHER COMMENTS:
None.
IV. AMENDMENTS/COMMITTEE SUBSTITUTE CHANGES
On January 18, 2024, the Insurance & Banking Subcommittee considered the bill, adopted an amendment,
and reported the bill favorably as a committee substitute. The amendment made the following changes:
Required written notice of the medical specialist permitted by the bill.
39 Email from Chase Mitchell, Director of Legislative Affairs and Policy, Department of Financial Services, RE: HB 637 – Treatment by a
Medical Specialist (Jan. 24, 2024).
40 Email from Molly Merry, Director of the Division of Risk Management, Department of Financial Services, HB 637 Fiscal Impact to the
Risk Management Trust Fund (Jan. 29, 2024).
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Allowed the employer/carrier to authorize an alternative specialist with equal or greater
qualifications.
Required authorization of treatment within 5 business days of receiving the notice and scheduling of
an appointment within 30 days.
Clarified that the bill creates an exception applicable to the usual provider selection process
provided under the Workers’ Compensation law.
The analysis is drafted to the committee substitute as passed by the Insurance & Banking Subcommittee.
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F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
CS/HB 637 2024
1 A bill to be entitled
2 An act relating to treatment by a medical specialist;
3 amending s. 112.18, F.S.; authorizing a firefighter,
4 law enforcement officer, correctional officer, and
5 correctional probation officer to receive medical
6 treatment by a medical specialist for certain
7 conditions under certain circumstances; providing
8 requirements for the firefighter's or officer's
9 workers compensation carrier, self-insured employer,
10 or third-party administrator; requiring the continuing
11 care and treatment by a medical specialist to be
12 reasonable, necessary, and related to the
13 firefighter's or officer's condition and authorized by
14 the workers compensation carrier, self-insured
15 employer, or third-party administrator; specifying a
16 reimbursement percentage for such treatment; defining
17 the term "medical specialist"; providing an effective
18 date.
19
20 Be It Enacted by the Legislature of the State of Florida:
21
22 Section 1. Subsection (3) is added to section 112.18,
23 Florida Statutes, to read:
24 112.18 Firefighters and law enforcement or correctional
25 officers; special provisions relative to disability.—
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26 (3)(a) Notwithstanding s. 440.13(2)(c), a firefighter, law
27 enforcement officer, correctional officer, or correctional
28 probation officer requiring medical treatment for a compensable
29 presumptive condition listed in subsection (1) may be treated by
30 a medical specialist. Except in emergency situations, a
31 firefighter, law enforcement officer, correctional officer, or
32 correctional probation officer entitled to access a medical
33 specialist under this subsection must provide written notice of
34 his or her selection of a medical specialist to the
35 firefighter's or officer's workers compensation carrier, self -
36 insured employer, or third-party administrator, and the carrier,
37 self-insured employer, or third-party administrator must
38 authorize the selected medical specialist or authorize an
39 alternative medical specialist with the same or greater
40 qualifications. Within 5 business days after receipt of the
41 written notice, the workers compensation carrier, self-insured
42 employer, or third-party administrator must authorize treatment
43 and schedule an appointment, which must be held within 30 days
44 after receipt of the written notice, with the selected medical
45 specialist or the alternative medical specialist. If the workers
46 compensation carrier, self-insured employer, or third-party
47 administrator fails to authorize an alternative medical
48 specialist within 5 business days after receipt of the written
49 notice, the medical specialist selected by the firefighter or
50 officer is authorized. The continuing care and treatment by a
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hb0637-01-c1
F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
CS/HB 637 2024
51 medical specialist must be reasonable, necessary, and related to
52 tuberculosis, heart disease, or hypertension; be reimbursed at
53 no more than 200 percent of the Medicare rate; and be authorized
54 by the firefighter's or officer's workers compensation carrier,
55 self-insured employer, or third-party administrator.
56 (b) For purposes of this subsection, the term "medical
57 specialist" means a physician licensed under chapter 458 or
58 chapter 459 who has board certification in a medical specialty
59 inclusive of care and treatment of tuberculosis, heart disease,
60 or hypertension.
61 Section 2. This act shall take effect October 1, 2024.
Page 3 of 3
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hb0637-01-c1
COMMERCE COMMITTEE
CS/HB 637 by Rep. Yaeger
Treatment by a Medical Specialist
AMENDMENT SUMMARY
February 22, 2024
Amendment 1 by Rep. Yaeger (Line 53): The amendment clarifies that the proposed
reimbursement rate applies to the selected medical specialist.
COMMITTEE/SUBCOMMITTEE AMENDMENT
Bill No. CS/HB 637 (2024)
Amendment No. 1
COMMITTEE/SUBCOMMITTEE ACTION
ADOPTED (Y/N)
ADOPTED AS AMENDED (Y/N)
ADOPTED W/O OBJECTION (Y/N)
FAILED TO ADOPT (Y/N)
WITHDRAWN (Y/N)
OTHER
1 Committee/Subcommittee hearing bill: Commerce Committee
2 Representative Yeager offered the following:
3
4 Amendment
5 Remove line 53 and insert:
6 no more than 200 percent of the Medicare rate for a selected
7 medical specialist; and be authorized
750573 - hb637-line53.docx
Published On: 2/21/2024 7:51:26 PM
Page 1 of 1
HB 909
HOUSE OF REPRESENTATIVES STAFF ANALYSIS
BILL #: HB 909 Pari-mutuel Permitholders
SPONSOR(S): Esposito
TIED BILLS: IDEN./SIM. BILLS: SB 778
REFERENCE ACTION ANALYST STAFF DIRECTOR or
BUDGET/POLICY CHIEF
1) Regulatory Reform & Economic Development 12 Y, 1 N Thompson Anstead
Subcommittee
2) State Administration & Technology 12 Y, 1 N Helpling Topp
Appropriations Subcommittee
3) Commerce Committee Thompson Hamon
SUMMARY ANALYSIS
The Florida Gaming Control Commission (Commission) is responsible for exercising all regulatory and
executive powers of the state with respect to gambling, including pari-mutuel wagering, cardrooms, and slot
machine facilities. The Florida Pari-mutuel Wagering Act (Act) provides specific permitting and licensure
requirements for the pari-mutuel industry. Pari-mutuel wagering activities are limited to operators who have
received a permit from the Commission, which is then subject to ratification by county referendum.
Permitholders apply for an operating license annually to conduct pari-mutuel wagering activities. Certain
permitholders are authorized to operate cardrooms and slot machines at their facility.
Each permitholder is required to operate all performances at the date and time specified on its license.
However, the Commission is authorized to approve minor changes in racing dates after a license has been
issued if there is no objection from any operating permitholder that is:
Conducting live racing or games; and
Located within 50 miles of the permitholder requesting the changes in operating dates.
Holders of valid pari-mutuel permits for the conduct of any pari-mutuel wagering in this state are entitled to
lease any and all of their facilities, as follows:
The lease may only be to another holder of a same class valid pari-mutuel permit;
The permitholders must be located within a 35-mile radius of each other; and
The lessee is entitled to a permit and license to conduct intertrack wagering and operate its race meet
or jai alai games at the leased premises.
The bill:
Revises certain references to pari-mutuel “racing” dates to instead reference “performance” dates, in
the provision that authorizes the Commission to approve changes in such dates.
Removes the restriction that pari-mutuel lease agreements be between holders of the same class
permit.
The bill does not appear to have a fiscal impact on state or local government. The bill may have a positive
fiscal impact on the private sector.
The effective date of the bill is July 1, 2024.
This docum ent does not reflect the intent or official position of the bill sponsor or House of Representatives .
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FULL ANALYSIS
I. SUBSTANTIVE ANALYSIS
A. EFFECT OF PROPOSED CHANGES:
Present Situation
General Overview of Gaming in Florida
Gambling is generally prohibited in Florida, unless specifically authorized. Section 7, Art. X, of the
Florida Constitution prohibits lotteries, other than pari-mutuel pools, from being conducted in Florida.
Chapter 849, F.S., includes prohibitions against slot machines, keeping a gambling house and running
a lottery. However, a constitutional amendment approved by voters in 1986 authorized state-operated
lotteries, and a constitutional amendment in 2004, authorized slot machines in Miami-Dade and
Broward Counties.
The following gaming activities are also authorized by law and regulated by the state:
Pari-mutuel1 wagering;2
Gaming on tribal reservations in accordance with the Indian Gaming and Regulatory Act and the
2010 Gaming Compact with the Seminole Tribe of Florida;
Slot machine gaming at certain licensed pari-mutuel locations in Miami-Dade County and
Broward County;3 and
Cardrooms 4 at certain pari-mutuel facilities.
Chapter 849, F.S., also authorizes, under specific and limited conditions, the conduct of penny-ante
games,5 bingo,6 charitable drawings,7 game promotions (sweepstakes),8 bowling tournaments,9 and
skill-based amusement games and machines at specified locations. 10
In 2013, the Legislature clarified that Internet café style gambling machines were illegal in the state.
The legislation clarified existing sections of law regarding slot machines, charitable drawings, game
promotions, and amusement machines and created a rebuttable presumption that machines used to
simulate casino-style games in schemes involving consideration and prizes are prohibited slot
machines.11
In 2015, the Legislature determined that the regulation of the operation of skill-based amusement
games and machines would ensure compliance with Florida’s limitations on gambling and prevent the
expansion of casino-style gambling. The Legislature clarified regulations related to the operation and
use of amusement games or machines to ensure that regulations would not be interpreted as creating
an exception to the state's general prohibitions against gambling. 12
1 “Pari-mutuel” is defined in Florida law as “a system of betting on races or games in which the winners divide the total amount bet,
after deducting management expenses and taxes, in proportion to the sums they have wagered individually and with regard to the odds
assigned to particular outcomes. See s. 550.002(22), F.S.
2 See ch. 550, F.S., relating to the regulation of pari-mutuel activities.
3 See FLA. CONST ., art. X, s. 23, and ch. 551, F.S.
4 S. 849.086(2)(c), F.S., defines “cardroom” to mean “a facility where authorized card games are played for money or anything of
value and to which the public is invited to participate in such games and charged a fee for participation by the operator of such
facility.”
5 S. 849.085, F.S.
6 S. 849.0931, F.S.
7 S. 849.0935, F.S.
8 S. 849.094, F.S., authorizes game promotions in connection with the sale of consumer products or services.
9 S. 849.141, F.S.
10 S. 546.10, F.S.
11 Florida House of Representatives Select Committee on Gaming, Final Bill Analysis of 2013 CS/HB 155, p. 1 (Apr. 19, 2013).
12 S. 546.10, F.S.
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Amendment to Florida Constitution Prohibiting Racing of and Wagering on Greyhounds or
Other Dogs
During the 2018 General Election, voters approved an initiative constitutional amendment,
Amendment 13, Prohibition on Racing of and Wagering on Greyhounds or Other Dogs, which has been
codified in the State Constitution as Article X, Section 32.13
Article X, Section 32 states:
Prohibition on racing of and wagering on greyhounds or other dogs.—The humane
treatment of animals is a fundamental value of the people of the State of Florida. After
December 31, 2020, a person authorized to conduct gaming or pari-mutuel operations
may not race greyhounds or any member of the Canis Familiaris subspecies in connection
with any wager for money or any other thing of value in this state, and persons in this
state may not wager money or any other thing of value on the outcome of a live dog race
occurring in this state. The failure to conduct greyhound racing or wagering on greyhound
racing after December 31, 2018, does not constitute grounds to revoke or deny renewal of
other related gaming licenses held by a person who is a licensed greyhound permitholder
on January 1, 2018, and does not affect the eligibility of such permitholder, or such
permitholder’s facility, to conduct other pari-mutuel activities authorized by general law. By
general law, the legislature shall specify civil or criminal penalties for violations of this
section and for activities that aid or abet violations of this section.
As of January 1, 2021, wagering on live greyhound racing in Florida is completely prohibited. However,
cardroom and slot machine facilities by such permitholders may continue to operate after the closure of
racing activities.
Pari-mutuel Wagering
Since approximately 1931, pari-mutuel wagering has been authorized in Florida for jai alai, greyhound
racing, and horseracing. These activities are overseen and regulated14 by the Division of Pari-Mutuel
Wagering (Division) at the Florida Gaming Control Commission (Commission), which is housed within
the Department of Legal Affairs, Office of the Attorney General.15 The Commission is tasked with
exercising all regulatory and executive powers of the state on all forms of gambling authorized by the
State Constitution or law including pari-mutuel wagering, card rooms, slot machine facilities, and the
oversight of gaming compacts under the federal Indian Gaming Regulatory Act but excluding state
lottery games authorized by the State Constitution.16
Pari-mutuel Wagering State Revenue
License fees and taxes collected by pari-mutuel wagering permitholders, including slot machine and
cardroom permitholders, are deposited with the Chief Financial Officer, to the credit of the Pari-mutuel
Wagering Trust Fund. Slot machine tax revenue is transferred from the Pari-mutuel Wagering Trust
Fund to the Educational Enhancement Trust Fund to supplement public education funding statewide.
Taxes collected by cardrooms are split between the Pari-mutuel Wagering Trust Fund and the General
Revenue Fund. During the 2022-2023 fiscal year, the pari-mutuel industry operated 447 racing and
gaming days, which resulted in state revenue of $6,291,327, total paid attendance of 61,775, and total
pari-mutuel handle of $469,498,714.17
13 See the text of Amendment 13, now codified as art. X, s. 32, at
http://www.leg.state.fl.us/Statutes/index.cfm?Mode=Constitution&Submenu=3&Tab=statutes#A10S32 (last visited Jan. 27, 2024).
14 From 1932 to 1969, Florida’s pari-mutuel industry was regulated by the State Racing Commission. In 1970, the commission became
a division within the Department of Business Regulation, which, in 1993, became DBPR.
15 See ss. 16.71-16.716, F.S.
16 S. 16.712, F.S.
17 Florida Gaming Control Commission, Annual Report Fiscal Year 2022-2023, https://flgaming.gov/pmw/annual-reports/docs/2022-
2023%20FGCC%20Annual%20Report.pdf (last visited Jan. 12, 2024).
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Pari-mutuel Wagering Live Performance Requirements
Currently, only thoroughbred permitholders are required to conduct live racing. 18 Greyhound
permitholders may not conduct live racing, and jai alai permitholders, harness horse racing
permitholders, or quarter horse racing permitholders may elect not to conduct live racing or games.
A greyhound permitholder, jai alai permitholder, harness horse racing permitholder, or quarter horse
racing permitholder that does not conduct live racing or games: 19
Retains its permit;
Is a pari-mutuel facility as defined in s. 550.002(23), F.S.;
Is eligible, but not required, to be a guest track, and if the permitholder is a harness horse racing
permitholder, is eligible to be a host track for purposes of intertrack wagering and simulcasting
pursuant to ss. 550.3551, 550.615, 550.625, and 550.6305, F.S.; and
Remains eligible for a cardroom license.
A permitholder or licensee may not conduct live greyhound racing or dogracing in connection with any
wager for money or any other thing of value in the state. The Division is authorized to deny, suspend,
or revoke any permit or license in ch. 550, F.S., for conducting live greyhound racing or dogracing in
violation of this provision. In addition to, or in lieu of, denial, suspension, or revocation of such permit or
license, the Division is authorized to impose a civil penalty of up to $5,000. All penalties imposed and
collected must be deposited with the Chief Financial Officer to the credit of the General Revenue
Fund.20
Pari-mutuel Wagering Permitting and Licensure
The Florida Pari-mutuel Wagering Act (Act)21 provides specific permitting and licensing requirements
for the conduct of the pari-mutuel industry.22 Pari-mutuel wagering activities are limited to operators
who have received a permit from the Division, which is then subject to ratification by county
referendum.23 Permitholders apply for an operating license annually to conduct pari-mutuel wagering
activities.24 Certain permitholders are also authorized to operate cardrooms 25 and slot machines at their
facility.26
During Fiscal Year 2021-2022, the following 39 pari-mutuel permitholders were licensed to operate:27
Nineteen Greyhound Racing permits.
Three Thoroughbred Horse Racing permits.
One Harness Horse Racing permit.
Six Quarter Horse Racing permits.
Ten Jai-Alai permits.
The Division is authorized to revoke or suspend any permit or license upon the willful violation by the
permitholder or licensee of any provision of the Act, or any administrative rule adopted by the Division,
and may impose a civil penalty against the permitholder or license up to $1,000 for each offense. 28
During Fiscal Year 2022-2023, the Division issued 22 rulings and five consent orders with assessed
fines and/or imposed license suspensions for violations. 29
18 S. 550.01215(1)(b)1., F.S.
19 Id.
20 S. 550.01215(1)(b)2., F.S.
21 Ch. 550, F.S.
22 S. 550.054(1), F.S.
23 S. 550.054(2), F.S.
24 S. 550.0115, F.S.
25 S. 849.086, F.S.
26 S. 551.104, F.S.
27 Florida Gaming Control Commission, Annual Report Fiscal Year 2022-2023, https://flgaming.gov/pmw/annual-reports/docs/2022-
2023%20FGCC%20Annual%20Report.pdf (last visited Jan. 12, 2024).
28 S. 550.054(9)(b), F.S.
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Pari-mutuel Wagering License Restrictions
The Act generally requires that any transfer or assignment of a permit receive prior approval 30 by the
Commission, which must determine the eligibility31 of persons and entities to hold a permit. Similarly, if
a permit is held by a corporation or business entity other than an individual, the transfer of ten percent
or more of the stock or other evidence of ownership or equity in the permitholder may not be made
without the prior approval of the transferee by the Commission.32
The Act provides restrictions on which persons and entities (including but not limited to employees,
officers and directors, partners, and owners of the permitholder) may hold permits, based on whether
they are of “good moral character,” or have been convicted of a disqualifying felony33 or for
bookmaking.34
The Act restricts pari-mutuel permitholders from being issued an operating license to conduct pari-
mutuel wagering, slot machine gaming, or the operation of a cardroom if the permitholder did not hold
an operating license for the conduct of pari-mutuel wagering for Fiscal Year 2020-2021.35
The Act restricts pari-mutuel permitholders from holding a permit to conduct pari-mutuel wagering
and associated cardroom or slot machine licenses 36 unless the permitholder, other than a limited
thoroughbred permitholder, held an operating license for the conduct of pari-mutuel wagering for Fiscal
year 2020-2021.37
The Act specifies that permits held on January 1, 2021 are deemed valid,38 but new permits for pari-
mutuel wagering may not be approved or issued.39
The Commission is required to revoke the permit of any permitholder, other than a limited thoroughbred
permitholder, who did not hold an operating license for the conduct of pari-mutuel wagering for fiscal
year 2020-2021. A permit revoked under this provision is void and may not be reissued. 40
Relocation
Certain permitholders may relocate the location listed in their permit to a new location within 30
miles. Greyhound and jai alai permitholders operating in counties where they are the only permitholder
of that class may relocate.41 Greyhound permitholders that converted their permit from a jai alai permit
29 Florida Gaming Control Commission, Annual Report Fiscal Year 2022-2023, https://flgaming.gov/pmw/annual-reports/docs/2022-
2023%20FGCC%20Annual%20Report.pdf (last visited Jan. 12, 2024).
30 There is one exception to the prior-approval requirement in s. 550.054(11)(a), F.S., which is that the holder of a permit converted to
a jai alai permit “may lease or build anywhere within the county in which its permit is located.” As of 2021, such conversions are
prohibited. See s. 550.054(15)(d), F.S.
31 See s. 550.1815, F.S
32 S. 550.054(11)(b ), F.S.
33 Pursuant to s. 550.1815(1)(b), F.S., the following are disqualifying felonies: (1) a felony in Florida; (2) any felony in any other state
which would be a felony if committed in Florida under the laws of this state; (3) any felony under the laws of the United State s; or (4)
a felony under the laws of another state if related to gambling which would be a felony under Florida law if the offense was committed
in Florida.
34 The term “bookmaking” is defined in s. 849.25, F.S., to mean “the act of taking or receiving, while engaged in the business or
profession of gambling, any bet or wager upon the result of any trial or contest of skill, speed, power, or endurance of human, beast,
fowl, motor vehicle, or mechanical apparatus or upon the result of any chance, casualty, unknown, or contingent event whatsoe ver.”
35 S. 550.01215(1)(d), F.S.
36 Under s. 551.114(4), F.S., designated slot machine gaming areas must be located at the address specified in the licensed
permitholder's slot machine license issued for Fiscal Year 2020-2021.
37 S. 550.054(15)(a), F.S.
38 S. 550.054(15)(b ), F.S.
39 S. 550.054(15)(c), F.S.
40 S. 550.054(9)(c), F.S.
41 S. 550.0555, F.S.
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may relocate, and a greyhound permitholder in a county where it is the only permitholder who operates
at a leased facility may also relocate.42
In each of these cases, the relocation must not cross county boundaries and must be approved
under the local zoning regulations. Approval by the Division is required for these relocations.
Conversion
A permit to conduct pari-mutuel wagering may not be converted to another class of permit. 43
Changes in Racing Dates
The Commission is required to issue each license no later than March 15, and each permitholder is
required to operate all performances at the date and time specified on its license. However, the
Commission is authorized to approve minor changes in racing dates after a license has been issued if
there is no objection from any operating permitholder that is:44
Conducting live racing or games; and
Located within 50 miles of the permitholder requesting the changes in operating dates.
If a permitholder objects, the Commission is required to approve or disapprove the change in operating
dates based upon the impact on operating permitholders located within 50 miles of the permitholder
requesting the change in operating dates.45
In making the determination to change racing dates, the Commission is required to take into
consideration the impact of such changes on state revenues. 46
Lease of Pari-mutuel Facilities
Holders of valid pari-mutuel permits for the conduct of any pari-mutuel wagering in this state are entitled
to lease any and all of their facilities, as follows:47
The lease may only be to another holder of a same class valid pari-mutuel permit;
The permitholders must be located within a 35-mile radius of each other; and
The lessee is entitled to a permit and license to conduct intertrack wagering and operate its race
meet or jai alai games at the leased premises.
Effect of Proposed Changes
Changes in Racing Dates
The bill changes references to “racing” dates to instead reference “performance” dates.
Lease of Pari-mutuel Facilities
The bill removes the requirement that such agreements be between holders of the same class of
permit.
B. SECTION DIRECTORY:
Section 1: Amends s. 550.01215, F.S., relating to license application; periods of operation; license
fees; bond.
42 S. 550.054, F.S.
43 S. 550.054(15)(d ), F.S.
44 S. 550.01215(3), F.S.
45 Id.
46 Id.
47 S. 550.475, F.S.
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Section 2: Amends s. 550.475, F.S., relating to lease of pari-mutuel facilities by pari-mutuel
permitholders.
Section 3: Provides an effective date of July 1, 2024.
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 removes the limitation that the lease of pari-mutuel facilities only be allowed for holders of the
same class pari-mutuel permit. This may create a positive fiscal impact to the businesses that are
currently restricted from participating in such lease agreements.
D. FISCAL COMMENTS:
None.
III. COMMENTS
A. CONSTITUTIONAL ISSUES:
1. Applicability of Municipality/County Mandates Provision:
Not applicable. This bill does not appear to require counties or municipalities to spend funds or take
action requiring the expenditures of funds; reduce the authority that counties or municipalities have
to raise revenues in the aggregate; or reduce the percentage of state tax shared with counties or
municipalities.
2. Other:
None.
B. RULE-MAKING AUTHORITY:
None.
C. DRAFTING ISSUES OR OTHER COMMENTS:
None.
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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 909 2024
1 A bill to be entitled
2 An act relating to pari-mutuel permitholders; amending
3 s. 550.01215, F.S.; revising provisions to allow
4 changes to performance dates; amending s. 550.475,
5 F.S.; revising provisions limiting leasing of pari-
6 mutuel facilities to permitholders of the same class;
7 providing an effective date.
8
9 Be It Enacted by the Legislature of the State of Florida:
10
11 Section 1. Subsection (3) of section 550.01215, Florid a
12 Statutes, is amended to read:
13 550.01215 License application; periods of operation;
14 license fees; bond.—
15 (3) The commission shall issue each license no later than
16 March 15. Each permitholder shall operate all performances at
17 the date and time specified on its license. The commission shall
18 have the authority to approve minor changes in performance
19 racing dates after a license has been issued. The commission may
20 approve changes in performance racing dates after a license has
21 been issued when there is no objection from any operating
22 permitholder that is conducting live racing or games and that is
23 located within 50 miles of the permitholder requesting the
24 changes in operating dates. In the event of an objection, the
25 commission shall approve or disapprove the change in operating
Page 1 of 2
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hb0909-00
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 909 2024
26 dates based upon the impact on operating permitholders located
27 within 50 miles of the permitholder requesting the change in
28 operating dates. In making the determination to change racing
29 dates, the commission shall take into consideration the impact
30 of such changes on state revenues.
31 Section 2. Section 550.475, Florida Statutes, is amended
32 to read:
33 550.475 Lease of pari-mutuel facilities by pari-mutuel
34 permitholders.—Holders of valid pari-mutuel permits for the
35 conduct of any pari-mutuel wagering in this state are entitled
36 to lease any and all of their facilities to any other holder of
37 a same class valid pari-mutuel permit, when located within a 35-
38 mile radius of each other; and such lessee is entitled to a
39 permit and license to conduct intertrack wagering and operate
40 its race meet or jai alai games at the leased premises.
41 Section 3. This act shall take effect July 1, 2024.
Page 2 of 2
CODING: Words stricken are deletions; words underlined are additions.
hb0909-00
COMMERCE COMMITTEE
HB 909 by Rep. Esposito
Pari-mutuel Permitholders
AMENDMENT SUMMARY
February 22, 2024
Amendment 1 by Rep. Esposito (strike-all):
• Adds the substance of CS/SB 804 to the bill, which, in part:
o Authorizes the Gaming Control Commission (Commission) to penalize a licensee when a
person falsely swears on an application.
o Establishes email as the primary service of legal filings for the Commission, including final
agency action.
o Extends the submission period for pari-mutuel operating license application dates from
December 15 - January 4, to January 15 - February 4, and extends the issuance date from
March 15 to April 15.
o Authorizes the Commission to approve minor changes in performance dates for pari-mutuel
wagering permitholders, removes the ability for permitholders to object to such changes, and
makes it permissive, instead of mandatory, for the Commission to consider the impact of such
changes to state revenues.
o Authorizes the Commission to take action against a racetrack occupational licensee who has
been subject to certain federal horseracing penalties, including for a finding of a prohibited
substance in an animal.
o Establishes a single audit and reporting requirement for pari-mutuel and slot machine
permitholders, clarifies what is required in the report, and requires the deadline for the report to
be 120 days after the end of the fiscal year.
o Revises the application and issuance fiscal year, submission, and issuance dates of
nonwagering licenses to line up with the pari-mutuel operating license timeframes.
o Removes the authority of the Commission to conduct an eligibility investigation relating to new
ownership or management interest in a nonwagering permit.
o Authorizes the Commission to waive the disqualifying offenses for slot machine occupational
license applicants.
o Removes the provision that allows certain facilities to amend their 2006-2007 operating license.
o Removes an outdated provision relating to thoroughbred permitholder performances.
• Revises the restriction that pari-mutuel lease agreements be between holders of the same class permit
to also include jai alai permitholders.
• Effective upon becoming law, authorizes licensed horse tracks that conduct a full schedule of live
racing during the preceding state fiscal year, or are not required to conduct a full schedule of live racing
under current law, to continue to receive broadcasts of horseraces conducted at horse racetracks
outside of Florida.
COMMITTEE/SUBCOMMITTEE AMENDMENT
Bill No. HB 909 (2024)
Amendment No. 1
COMMITTEE/SUBCOMMITTEE ACTION
ADOPTED (Y/N)
ADOPTED AS AMENDED (Y/N)
ADOPTED W/O OBJECTION (Y/N)
FAILED TO ADOPT (Y/N)
WITHDRAWN (Y/N)
OTHER
1 Committee/Subcommittee hearing bill: Commerce Committee
2 Representative Esposito offered the following:
3
4 Amendment (with title amendment)
5 Remove everything after the enacting clause and insert:
6 Section 1. Section 16.717, Florida Statutes, is created to
7 read:
8 16.717 Florida Gaming Control Commission; penalties for
9 false oath or affirmation of applicants for licensure;
10 licensees.—The commission may deny the application of, or
11 suspend or revoke the license of, any person who submits an
12 application for licensure upon which application the person has
13 falsely sworn, in a signed oath or affirmation, to a material
14 statement, including, but not limited to, the criminal history
15 of the applicant or licensee. Additionally, the person is
16 subject to any other penalties provided by law.
844787 - h0909-strike.docx
Published On: 2/21/2024 7:11:07 PM
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COMMITTEE/SUBCOMMITTEE AMENDMENT
Bill No. HB 909 (2024)
Amendment No. 1
17 Section 2. Section 16.718, Florida Statutes, is created to
18 read:
19 16.718 Florida Gaming Control Commission; notification of
20 applicants' or licensees' addresses and place of employment;
21 service.—
22 (1) Each applicant for a license with the commission and
23 each licensee of the commission is responsible for notifying the
24 commission in writing of the applicant's or licensee's current
25 mailing address, e-mail address, and place of employment. An
26 applicant's failure to notify the commission constitutes a
27 violation of this section, and the applicant's application may
28 be denied. A licensee's failure to notify the commission of any
29 change to the e-mail or mailing address of record constitutes a
30 violation of this section, and the licensee may be disciplined
31 by the commission as described in s. 550.0251(10).
32 (2) Notwithstanding any provision of law to the contrary,
33 service by e-mail to an applicant's or licensee's e-mail address
34 of record with the commission constitutes sufficient notice to
35 the applicant or licensee for any official communication. The
36 commission may, in its discretion, provide service for any
37 official communication by regular mail to an applicant's or
38 licensee's last known mailing address. The commission is not
39 required to provide service by both e-mail and regular mail.
40 (3) Notwithstanding any provision of law to the contrary,
41 when an administrative complaint or other document setting forth
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Bill No. HB 909 (2024)
Amendment No. 1
42 intended or final agency action is to be served on an applicant
43 or a licensee, the commission is only required to provide
44 service by e-mail to the applicant's or licensee's e-mail
45 address on record with the commission. E-mail service
46 constitutes sufficient notice to the person or persons upon whom
47 an administrative complaint or any other document setting forth
48 intended or final agency action is served. The commission may,
49 in its discretion, provide service of an administrative
50 complaint or any other documents setting forth intended or final
51 agency action by regular mail to an applicant's or licensee's
52 last known mailing address. The commission is not required to
53 provide service by both e-mail and regular mail.
54 Section 3. Subsections (1), (3), (4), and (5) of section
55 550.01215, Florida Statutes, are amended to read:
56 550.01215 License application; periods of operation;
57 license fees; bond.—
58 (1) Each permitholder shall annually, during the period
59 between January December 15 and February January 4, file in
60 writing with the commission its application for an operating
61 license for a pari-mutuel facility for the conduct of pari-
62 mutuel wagering during the next state fiscal year, including
63 intertrack and simulcast race wagering. Each application for
64 live performances must specify the number, dates, and starting
65 times of all live performances that the permitholder intends to
66 conduct. It must also specify which performances will be
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Bill No. HB 909 (2024)
Amendment No. 1
67 conducted as charity or scholarship performances.
68 (a) Each application for an operating license also must
69 include:
70 1. For each permitholder, whether the permitholder intends
71 to accept wagers on intertrack or simulcast events.
72 2. For each permitholder that elects to operate a
73 cardroom, the dates and periods of operation the permitholder
74 intends to operate the cardroom.
75 3. For each thoroughbred racing permitholder that elects
76 to receive or rebroadcast out-of-state races, the dates for all
77 performances that the permitholder intends to conduct.
78 (b)1. A greyhound permitholder may not conduct live
79 racing. A jai alai permitholder, harness horse racing
80 permitholder, or quarter horse racing permitholder may elect not
81 to conduct live racing or games. A thoroughbred permitholder
82 must conduct live racing. A greyhound permitholder, jai alai
83 permitholder, harness horse racing permitholder, or quarter
84 horse racing permitholder that does not conduct live racing or
85 games retains its permit; is a pari-mutuel facility as defined
86 in s. 550.002(23); if such permitholder has been issued a slot
87 machine license, the facility where such permit is located
88 remains an eligible facility as defined in s. 551.102(4),
89 continues to be eligible for a slot machine license pursuant to
90 s. 551.104(3), and is exempt from ss. 551.104(4)(c) and (10) and
91 551.114(2); is eligible, but not required, to be a guest track
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Bill No. HB 909 (2024)
Amendment No. 1
92 and, if the permitholder is a harness horse racing permitholder,
93 to be a host track for purposes of intertrack wagering and
94 simulcasting pursuant to ss. 550.3551, 550.615, 550.625, and
95 550.6305; and remains eligible for a cardroom license.
96 2. A permitholder or licensee may not conduct live
97 greyhound racing or dogracing in connection with any wager for
98 money or any other thing of value in the state. The commission
99 may deny, suspend, or revoke any permit or license under this
100 chapter if a permitholder or licensee conducts live greyhound
101 racing or dogracing in violation of this subparagraph. In
102 addition to, or in lieu of, denial, suspension, or revocation of
103 such permit or license, the commission may impose a civil
104 penalty of up to $5,000 against the permitholder or licensee for
105 a violation of this subparagraph. All penalties imposed and
106 collected must be deposited with the Chief Financial Officer to
107 the credit of the General Revenue Fund.
108 (c) Permitholders may amend their applications through
109 March February 28.
110 (d) Notwithstanding any other provision of law, other than
111 a permitholder issued a permit pursuant to s. 550.3345, a pari-
112 mutuel permitholder may not be issued an operating license for
113 the conduct of pari-mutuel wagering, slot machine gaming, or the
114 operation of a cardroom if the permitholder did not hold an
115 operating license for the conduct of pari-mutuel wagering for
116 fiscal year 2020-2021. This paragraph does not apply to a
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Bill No. HB 909 (2024)
Amendment No. 1
117 purchaser, transferee, or assignee holding a valid permit for
118 the conduct of pari-mutuel wagering approved pursuant to s.
119 550.054(15)(a).
120 (3) The commission shall issue each license no later than
121 April March 15. Each permitholder shall operate all performances
122 at the date and time specified on its license. The commission
123 shall have the authority to approve minor changes in racing
124 dates after a license has been issued. The commission may
125 approve changes in performance racing dates after a license has
126 been issued when there is no objection from any operating
127 permitholder that is conducting live racing or games and that is
128 located within 50 miles of the permitholder requesting the
129 changes in operating dates. In the event of an objection, the
130 commission shall approve or disapprove the change in operati ng
131 dates based upon the impact on operating permitholders located
132 within 50 miles of the permitholder requesting the change in
133 operating dates. In making the determination to change
134 performance racing dates, the commission may shall take into
135 consideration the impact of such changes on state revenues.
136 (4) In the event that a permitholder fails to operate all
137 performances specified on its license at the date and time
138 specified, the commission may shall hold a hearing to determine
139 whether to fine or suspend the permitholder's license, unless
140 such failure was the direct result of fire, strike, war,
141 hurricane, pandemic, or other disaster or event beyond the
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Amendment No. 1
142 ability of the permitholder to control. Financial hardship to
143 the permitholder shall not, in and of itself, constitute just
144 cause for failure to operate all performances on the dates and
145 at the times specified.
146 (5) In the event that performances licensed to be operated
147 by a permitholder are vacated, abandoned, or will not be used
148 for any reason, any permitholder shall be entitled, pursuant to
149 rules adopted by the commission, to apply to conduct
150 performances on the dates for which the performances have been
151 abandoned. The commission shall issue an amended license for all
152 such replacement performances which have been requested in
153 compliance with this chapter and commission rules.
154 Section 4. Section 550.0351, Florida Statutes, is amended
155 to read:
156 550.0351 Charity racing days.—
157 (1) The commission shall, upon the request of a
158 permitholder, authorize each horseracing permitholder and jai
159 alai permitholder up to five charity or scholarship days in
160 addition to the regular racing days authorized by law.
161 (2) The proceeds of charity performances shall be paid to
162 qualified beneficiaries selected by the permitholders from an
163 authorized list of charities on file with the commission.
164 Eligible charities include any charity that provides evidence of
165 compliance with the provisions of chapter 496 and evidence of
166 possession of a valid exemption from federal taxation issued by
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Bill No. HB 909 (2024)
Amendment No. 1
167 the Internal Revenue Service. In addition, the authorized list
168 must include the Racing Scholarship Trust Fund, the Historical
169 Resources Operating Trust Fund, major state and private
170 institutions of higher learning, and Florida community colleges.
171 (3) The permitholder shall, within 120 days after the
172 conclusion of its fiscal year, pay to the authorized charities
173 the total of all profits derived from the operation of the
174 charity day performances conducted. If charity days are operated
175 on behalf of another permitholder pursuant to law, the
176 permitholder entitled to distribute the proceeds shall
177 distribute the proceeds to charity within 30 days after the
178 actual receipt of the proceeds.
179 (4) The total of all profits derived from the conduct of a
180 charity day performance must include all revenues derived from
181 the conduct of that racing performance, including all state
182 taxes that would otherwise be due to the state, except that the
183 daily license fee as provided in s. 550.0951(1) and the breaks
184 for the promotional trust funds as provided in s. 550.2625(3),
185 (4), (5), (7), and (8) shall be paid to the commission. All
186 other revenues from the charity racing performance, including
187 the commissions, breaks, and admissions and the revenues from
188 parking, programs, and concessions, shall be included in the
189 total of all profits.
190 (5) In determining profit, the permitholder may elect to
191 distribute as proceeds only the amount equal to the state tax
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Amendment No. 1
192 that would otherwise be paid to the state if the charity day
193 were conducted as a regular or matinee performance.
194 (6)(a) The commission shall authorize one additional
195 scholarship day for horseracing in addition to the regular
196 racing days authorized by law and any additional days authorized
197 by this section, to be conducted at all horse racetracks located
198 in Hillsborough County. The permitholder shall conduct a full
199 schedule of racing on the scholarship day.
200 (b) The funds derived from the operation of the additional
201 scholarship day shall be allocated as provided in this section
202 and paid to Pasco-Hernando Community College.
203 (c) When a charity or scholarship performance is conducted
204 as a matinee performance, the commission may authorize the
205 permitholder to conduct the evening performances of that
206 operation day as a regular performance in addition to the
207 regular operating days authorized by law.
208 (7) In addition to the eligible charities that meet the
209 criteria set forth in this section, a jai alai permitholder is
210 authorized to conduct two additional charity performances each
211 fiscal year for a fund to benefit retired jai alai players. This
212 performance shall be known as the "Retired Jai Alai Players
213 Charity Day." The administration of this fund shall be
214 determined by rule by the commission.
215 Section 5. Paragraph (a) of subsection (9) of section
216 550.054, Florida Statutes, is amended to read:
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Amendment No. 1
217 550.054 Application for permit to conduct pari-mutuel
218 wagering.—
219 (9)(a) After a permit has been granted by the commission
220 and has been ratified and approved by the majority of the
221 electors participating in the election in the county designated
222 in the permit, the commission shall grant to the lawful
223 permitholder, subject to the conditions of this chapter, a
224 license to conduct pari-mutuel operations under this chapter,
225 and, except as provided in s. 550.5251, the commission shall fix
226 annually the time, place, and number of days during which pari-
227 mutuel operations may be conducted by the permitholder at the
228 location fixed in the permit and ratified in the election. After
229 the first license has been issued to the holder of a ratified
230 permit for racing in any county, all subsequent annual
231 applications for a license by that permitholder must be
232 accompanied by proof, in such form as the commission requires,
233 that the ratified permitholder still possesses all the
234 qualifications prescribed by this chapter and that the permit
235 has not been recalled at a later election held in the county.
236 Section 6. Subsections (1) and (5) of section 550.0951,
237 Florida Statutes, are amended to read:
238 550.0951 Payment of daily license fee and taxes;
239 penalties.—
240 (1) DAILY LICENSE FEE.—
241 (a) Each person engaged in the business of conducting race
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Bill No. HB 909 (2024)
Amendment No. 1
242 meetings or jai alai games under this chapter, herein after
243 referred to as the "permitholder," "licensee," or "permittee,"
244 shall pay to the commission, for the use of the commission, a
245 daily license fee on each live or simulcast pari-mutuel event of
246 $100 for each horserace and $80 for each dograce and $40 for
247 each jai alai game conducted at a racetrack or fronton licensed
248 under this chapter. In addition to the tax exemption specified
249 in s. 550.09514(1) of $360,000 or $500,000 per greyhound
250 permitholder per state fiscal year, each greyhound permitholder
251 shall receive in the current state fiscal year a tax credit
252 equal to the number of live greyhound races conducted in the
253 previous state fiscal year times the daily license fee specified
254 for each dograce in this subsection applicable for the previous
255 state fiscal year. This tax credit and the exemption in s.
256 550.09514(1) apply shall be applicable to any tax imposed by
257 this chapter or the daily license fees imposed by this chapter
258 except during any charity or scholarship performances conducted
259 pursuant to s. 550.0351. Each permitholder shall pay daily
260 license fees not to exceed $500 per day on any simulcast races
261 or games on which such permitholder accepts wagers regardless of
262 the number of out-of-state events taken or the number of out-of-
263 state locations from which such events are taken. This license
264 fee shall be deposited with the Chief Financial Officer to the
265 credit of the Pari-mutuel Wagering Trust Fund.
266 (b) Each permitholder that cannot utilize the full amount
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Amendment No. 1
267 of the exemption of $360,000 or $500,000 provided in s.
268 550.09514(1) or the daily license fee credit provided in this
269 section may, after notifying the commission in writing, elect
270 once per state fiscal year on a form provided by the commission
271 to transfer such exemption or credit or any portion thereof to
272 any greyhound permitholder which acts as a host track to such
273 permitholder for the purpose of intertrack wagering. Once an
274 election to transfer such exemption or credit is filed with the
275 commission, it may shall not be rescinded. The commission shall
276 disapprove the transfer when the amount of the exemption or
277 credit or portion thereof is unavailable to the transferring
278 permitholder or when the permitholder who is entitled to
279 transfer the exemption or credit or who is entitled to receive
280 the exemption or credit owes taxes to the state pursuant to a
281 deficiency letter or administrative complaint issued by the
282 commission. Upon approval of the transfer by the commission, the
283 transferred tax exemption or credit is shall be effective for
284 the first performance of the next payment period as specified in
285 subsection (5). The exemption or credit transferred to such host
286 track may be applied by such host track against any taxes
287 imposed by this chapter or daily license fees imposed by this
288 chapter. The greyhound permitholder host track to which such
289 exemption or credit is transferred shall reimburse such
290 permitholder the exact monetary value of such transferred
291 exemption or credit as actually applied against the taxes and
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Bill No. HB 909 (2024)
Amendment No. 1
292 daily license fees of the host track. The commissio n shall
293 ensure that all transfers of exemption or credit are made in
294 accordance with this subsection and has shall have the authority
295 to adopt rules to ensure the implementation of this section.
296 (5) PAYMENT AND DISPOSITION OF FEES AND TAXES.—Payments
297 imposed by this section must shall be paid to the commission.
298 The commission shall deposit these sums with the Chief Financial
299 Officer, to the credit of the Pari-mutuel Wagering Trust Fund,
300 hereby established. The permitholder shall remit to the
301 commission payment for the daily license fee, the admission tax,
302 the tax on handle, and the breaks tax. Such payments shall be
303 remitted by 3 p.m. Wednesday of each week for taxes imposed and
304 collected for the preceding week ending on Sunday. Beginning on
305 July 1, 2012, such payments must shall be remitted by 3 p.m. on
306 the 5th day of each calendar month for taxes imposed and
307 collected for the preceding calendar month. If the 5th day of
308 the calendar month falls on a weekend, payments must shall be
309 remitted by 3 p.m. the first Monday following the weekend.
310 Permitholders shall file a report under oath by the 5th day of
311 each calendar month for all taxes remitted during the preceding
312 calendar month. Such payments must shall be accompanied by a
313 report under oath showing the total of all admissions, the pari-
314 mutuel wagering activities for the preceding calendar month, and
315 such other information as may be prescribed by the commission.
316 Section 7. Subsection (7) of section 550.09515, Florida
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Bill No. HB 909 (2024)
Amendment No. 1
317 Statutes, is amended, and subsection (4) of that section is
318 reenacted for the purpose of incorporating the amendment made by
319 this act to section 550.0951, Florida Statutes, to read:
320 550.09515 Thoroughbred horse taxes; abandoned interest in
321 a permit for nonpayment of taxes.—
322 (4) In the event that a court of competent jurisdiction
323 determines any of the provisions of this section to be
324 unconstitutional, it is the intent of the Legislature that the
325 provisions contained in this section shall be null and void and
326 that the provisions of s. 550.0951 shall apply to all
327 thoroughbred horse permitholders beginning on the date of such
328 judicial determination. To this end, the Legislature declares
329 that it would not have enacted any of the provisions of this
330 section individually and, to that end, expressly finds them not
331 to be severable.
332 (7) If a thoroughbred permitholder fails to operate all
333 performances on its 2001-2002 license, failure to pay tax on
334 handle for a full schedule of live races for those performances
335 in the 2001-2002 fiscal year does not constitute failure to pay
336 taxes on handle for a full schedule of live races in a fiscal
337 year for the purposes of subsection (3). This subsection may not
338 be construed as forgiving a thoroughbred permitholder from
339 paying taxes on performances conducted at its facility pursuant
340 to its 2001-2002 license other than for failure to operate all
341 performances on its 2001-2002 license. This subsection expires
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Bill No. HB 909 (2024)
Amendment No. 1
342 July 1, 2003.
343 Section 8. Paragraphs (a) and (c) of subsection (5) of
344 section 550.105, Florida Statutes, are amended to read:
345 550.105 Occupational licenses of racetrack employees;
346 fees; denial, suspension, and revocation of license; penalties
347 and fines.—
348 (5)(a) The commission may do the following:
349 1. Deny a license to or revoke, suspend, or place
350 conditions upon or restrictions on a license of any person who
351 has been refused a license by any other state racing commission
352 or racing authority or has been subject to a provisional
353 suspension or period of ineligibility by the federal Horseracing
354 Integrity and Safety Authority (HISA), or another such authority
355 designated by the Federal Trade Commission.;
356 2. Deny, suspend, or place conditions on a license of any
357 person who is under suspension, or has unpaid fines in another
358 jurisdiction, or is subject to a provisional suspension or
359 period of ineligibility under HISA.;
360 3. Notwithstanding subparagraph 2. and chapter 120,
361 summarily suspend the occupational license of any person subject
362 to a provisional suspension or period of ineligibility imposed
363 by HISA related to a prohibited substance in an animal's hair or
364 in its blood, urine, saliva, or any other bodily fluid. Any
365 suspension imposed pursuant to this subparagraph expires on the
366 date that the provisional suspension or period of ineligibility
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Amendment No. 1
367 imposed by HISA expires. If an occupational licensee is
368 summarily suspended under this subparagraph, the commission must
369 offer the licensee a postsuspension hearing within 72 hours
370 after commencement of the suspension. The occupational licensee
371 has the burden of proving by clear and convincing evidence that
372 he or she is not subject to a provisional suspension or period
373 of ineligibility imposed by HISA. The standard of review
374 applicable to the commission under this subparagraph is whether
375 the commission's action was an abuse of discretion if the state
376 racing commission or racing authority of such other state or
377 jurisdiction extends to the commission reciprocal courtesy to
378 maintain the disciplinary control.
379 (c) The commission may deny, declare ineligible, or revoke
380 any occupational license if the applicant for such license has
381 been convicted of a felony or misdemeanor in this state, in any
382 other state, or under the laws of the United States, if such
383 felony or misdemeanor is related to gambling or bookmaking, as
384 contemplated in s. 849.25, or involves cruelty to animals. If
385 the applicant establishes that she or he is of good moral
386 character, that she or he has been rehabilitated, and that the
387 crime she or he was convicted of is not related to pari -mutuel
388 wagering and is not a capital offense, the restrictions
389 excluding offenders may be waived by the director of the
390 commission.
391 Section 9. Paragraph (a) of subsection (2) of section
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Amendment No. 1
392 550.125, Florida Statutes, is amended to read:
393 550.125 Uniform reporting system; bond requirement.—
394 (2)(a) Each permitholder issued an operating license that
395 conducts race meetings or jai alai exhibitions under this
396 chapter shall keep records that clearly show the total number of
397 admissions and the total amount of money contributed to each
398 pari-mutuel pools, cardroom gross receipts, and slot machine
399 revenues pool on each race or exhibition separately and the
400 amount of money received daily from admission fees and, within
401 120 days after the end of its fiscal year, shall submit to the
402 commission a complete annual report of its accounts, audited by
403 a certified public accountant licensed to practice in this the
404 state.
405 Section 10. Effective upon becoming a law, subsection (3)
406 of section 550.3551, Florida Statutes, is amended, and paragraph
407 (b) of subsection (2) and subsection (4) are reenacted to read:
408 550.3551 Transmission of racing and jai alai information;
409 commingling of pari-mutuel pools.—
410 (2) Any horse track or fronton licensed under this chapter
411 may transmit broadcasts of races or games conducted at the
412 enclosure of the licensee to locations outside this state.
413 (b) Wagers accepted by any out-of-state pari-mutuel
414 permitholder or licensed betting system on a race broadcasted
415 under this subsection may be, but are not required to be,
416 included in the pari-mutuel pools of the horse track in this
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Amendment No. 1
417 state that broadcasts the race upon which wagers are accepted.
418 The handle, as referred to in s. 550.0951(3), does not include
419 any wagers accepted by an out-of-state pari-mutuel permitholder
420 or licensed betting system, irrespective of whether such wagers
421 are included in the pari-mutuel pools of the Florida
422 permitholder as authorized by this subsection.
423 (3) Any horse track licensed under this chapter may
424 receive broadcasts of horseraces conducted at other horse
425 racetracks located outside this state at the racetrack enclosure
426 of the licensee, if the horse track conducted a full schedule of
427 live racing during the preceding state fiscal year, or if the
428 horse track does not conduct live racing as authorized under s.
429 550.01215 during its racing meet.
430 (a) All broadcasts of horseraces received from locations
431 outside this state must comply with the provisions of the
432 Interstate Horseracing Act of 1978, 92 Stat. 1811, 15 U.S.C. ss.
433 3001 et seq.
434 (b) Wagers accepted at the horse track in this state may
435 be, but are not required to be, included in the pari-mutuel
436 pools of the out-of-state horse track that broadcasts the race.
437 Notwithstanding any contrary provisions of this chapter, if the
438 horse track in this state elects to include wagers accepted on
439 such races in the pari-mutuel pools of the out-of-state horse
440 track that broadcasts the race, from the amount wagered by
441 patrons at the horse track in this state and included in the
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Bill No. HB 909 (2024)
Amendment No. 1
442 pari-mutuel pools of the out-of-state horse track, the horse
443 track in this state shall deduct as the takeout from the amount
444 wagered by patrons at the horse track in this state and included
445 in the pari-mutuel pools of the out-of-state horse track a
446 percentage equal to the percentage deducted from the amount
447 wagered at the out-of-state racetrack as is authorized by the
448 laws of the jurisdiction exercising regulatory authority over
449 the out-of-state horse track.
450 (c) All forms of pari-mutuel wagering are allowed on races
451 broadcast under this section, and all money wagered by patrons
452 on such races shall be computed as part of the total amount of
453 money wagered at each racing performance for purposes of
454 taxation under ss. 550.0951, 550.09512, and 550.09515. Section
455 550.2625(2)(a), (b), and (c) does not apply to any money wagered
456 on races broadcast under this section. Similarly, the takeout
457 shall be increased by breaks and uncashed tickets for wagers on
458 races broadcast under this section, notwithstanding any contrary
459 provision of this chapter.
460 (4) Any greyhound permitholder or jai alai permitholder
461 licensed under this chapter may receive at its licensed location
462 broadcasts of dograces or jai alai games conducted at other
463 tracks or frontons located outside the state. All forms of pari -
464 mutuel wagering are allowed on dograces or jai alai games
465 broadcast under this subsection. All money wagered by patrons on
466 dograces broadcast under this subsection shall be computed in
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467 the amount of money wagered each performance for purposes of
468 taxation under ss. 550.0951 and 550.09511.
469 Section 11. Section 550.475, Florida Statutes, is amended
470 to read:
471 550.475 Lease of pari-mutuel facilities by pari-mutuel
472 permitholders.—Holders of valid pari-mutuel permits for the
473 conduct of any pari-mutuel wagering in this state are entitled
474 to lease any and all of their facilities to any other holder of
475 a same class valid pari-mutuel permit or to any jai alai
476 permitholder, when located within a 35-mile radius of each
477 other; and such lessee is entitled to a permit and license to
478 conduct intertrack wagering and operate its race meet or jai
479 alai games at the leased premises.
480 Section 12. Subsection (3) of section 550.505, Florida
481 Statutes, is amended to read:
482 550.505 Nonwagering permits.—
483 (3)(a) Upon receipt of a nonwagering permit, the
484 permitholder shall apply between January 15 and February 4 must
485 apply to the commission before June 1 of each year for a an
486 annual nonwagering license for the next state fiscal succeeding
487 calendar year. Such application must set forth the days and
488 locations at which the permitholder will conduct nonwagering
489 horseracing, must demonstrate that any location to which the
490 nonwagering license applies is available for such use, and must
491 indicate any changes in ownership or management of the
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Bill No. HB 909 (2024)
Amendment No. 1
492 permitholder occurring since the date of application for the
493 prior license.
494 (b) On or before April 15 August 1 of each year, the
495 commission shall issue a license authorizing the nonwagering
496 permitholder to conduct nonwagering horseracing during the next
497 state fiscal succeeding calendar year during the period and for
498 the number of days set forth in the application, subject to all
499 other provisions of this section.
500 (c) The commission may extend a nonwagering license for
501 the 2024 calendar year through the 2024-2025 fiscal year upon
502 application for such extension by the nonwagering permitholder
503 conduct an eligibility investigation to determine the
504 qualifications of any new ownership or management interest in
505 the permit.
506 Section 13. Subsection (1) of section 550.5251, Florida
507 Statutes, is amended to read:
508 550.5251 Florida thoroughbred racing; certain permits;
509 operating days.—
510 (1) Each thoroughbred permitholder shall annually, during
511 the period commencing January December 15 of each year and
512 ending February January 4 of the following year, file in writing
513 with the commission its application to conduct one or more
514 thoroughbred racing meetings during the thoroughbred racing
515 season commencing on the following July 1. Each application
516 shall specify the number and dates of all performances that the
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Bill No. HB 909 (2024)
Amendment No. 1
517 permitholder intends to conduct during that thoroughbred racing
518 season. On or before April March 15 of each year, the commission
519 shall issue a license authorizing each permitholder to conduct
520 performances on the dates specified in its application. Up to
521 March February 28 of each year, each permitholder may request
522 and shall be granted changes in its application to conduct
523 authorized performances; but thereafter, as a condition
524 precedent to the validity of its license and its right to retain
525 its permit, each permitholder must operate the full number of
526 days authorized on each of the dates set forth in its license.
527 Section 14. Paragraph (b) of subsection (4) and subsection
528 (8) of section 551.104, Florida Statutes, are amended to read:
529 551.104 License to conduct slot machine gaming.—
530 (4) As a condition of licensure and to maintain continued
531 authority for the conduct of slot machine gaming, the slot
532 machine licensee shall:
533 (b) Continue to be in compliance with chapter 550, when
534 where applicable, and maintain the pari-mutuel permit and
535 license in good standing pursuant to the provisions of chapter
536 550. Notwithstanding any contrary provision of law and in order
537 to expedite the operation of slot machines at eligible
538 facilities, any eligible facility shall be entitled within 60
539 days after the effective date of this act to amend its 2006-2007
540 pari-mutuel wagering operating license issued by the commission
541 under ss. 550.0115 and 550.01215. The commission shall issue a
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Bill No. HB 909 (2024)
Amendment No. 1
542 new license to the eligible facility to effectuate any approved
543 change.
544 (8) A slot machine licensee shall file with the commission
545 an audit of the receipt and distribution of all slot machine
546 revenues provided by an independent certified public accountant
547 licensed under chapter 473 verifying compliance with all
548 financial and auditing provisions of this chapter and the
549 associated rules adopted under this chapter. The audit must
550 include verification of compliance with all statutes and rules
551 regarding all required records of slot machine operations. Such
552 audit must shall be filed within 120 60 days after the end of
553 the slot machine licensee's fiscal year completion of the
554 permitholder's pari-mutuel meet.
555 Section 15. Paragraph (b) of subsection (6) of section
556 551.107, Florida Statutes, is amended to read:
557 551.107 Slot machine occupational license; findings;
558 application; fee.—
559 (6)
560 (b) The commission may deny, revoke, or refuse to renew
561 any slot machine occupational license if the applicant for such
562 license or the licensee has been convicted of a felony or
563 misdemeanor in this state, in any other state, or under the laws
564 of the United States if such felony or misdemeanor is related to
565 gambling or bookmaking as described in s. 849.25. The
566 restrictions authorized in this paragraph may be waived by the
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Bill No. HB 909 (2024)
Amendment No. 1
567 commission if the applicant establishes that she or he is of
568 good moral character, that she or he has been rehabilitated, and
569 that the crime she or he was convicted of is not related to slot
570 machine gaming and is not a capital offense.
571 Section 16. For the purpose of incorporating the amendment
572 made by this act to section 550.0951, Florida Statu tes, in
573 references thereto, paragraph (c) of subsection (2) of section
574 212.04, Florida Statutes, is reenacted to read:
575 212.04 Admissions tax; rate, procedure, enforcement. —
576 (2)
577 (c) The taxes imposed by this section shall be collected
578 in addition to the admission tax collected pursuant to s.
579 550.0951, but the amount collected under s. 550.0951 shall not
580 be subject to taxation under this chapter.
581 Section 17. For the purpose of incorporating the amendment
582 made by this act to section 550.0951, Florida Statutes, in a
583 reference thereto, subsection (4) of section 550.0351, Florida
584 Statutes, is reenacted to read:
585 550.0351 Charity racing days.—
586 (4) The total of all profits derived from the conduct of a
587 charity day performance must include all revenues derived from
588 the conduct of that racing performance, including all state
589 taxes that would otherwise be due to the state, except that the
590 daily license fee as provided in s. 550.0951(1) and the breaks
591 for the promotional trust funds as provided in s. 550.2625 (3),
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Amendment No. 1
592 (4), (5), (7), and (8) shall be paid to the commission. All
593 other revenues from the charity racing performance, including
594 the commissions, breaks, and admissions and the revenues from
595 parking, programs, and concessions, shall be included in the
596 total of all profits.
597 Section 18. For the purpose of incorporating the amendment
598 made by this act to section 550.0951, Florida Statutes, in a
599 reference thereto, subsection (2) of section 550.09511, Florida
600 Statutes, is reenacted to read:
601 550.09511 Jai alai taxes; abandoned interest in a permit
602 for nonpayment of taxes.—
603 (2) Notwithstanding the provisions of s. 550.0951(3)(b),
604 wagering on live jai alai performances shall be subject to the
605 following taxes:
606 (a)1. The tax on handle per performance for live j ai alai
607 performances is 4.25 percent of handle per performance. However,
608 when the live handle of a permitholder during the preceding
609 state fiscal year was less than $15 million, the tax shall be
610 paid on the handle in excess of $30,000 per performance per d ay.
611 2. The tax rate shall be applicable only until the
612 requirements of paragraph (b) are met.
613 (b) At such time as the total of admissions tax, daily
614 license fee, and tax on handle for live jai alai performances
615 paid to the commission by a permitholder during the current
616 state fiscal year exceeds the total state tax revenues from
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Bill No. HB 909 (2024)
Amendment No. 1
617 wagering on live jai alai performances paid or due by the
618 permitholder in fiscal year 1991-1992, the permitholder shall
619 pay tax on handle for live jai alai performances at a rate of
620 2.55 percent of the handle per performance for the remainder of
621 the current state fiscal year. For purposes of this section,
622 total state tax revenues on live jai alai wagering in fiscal
623 year 1991-1992 shall include any admissions tax, tax on handle,
624 surtaxes on handle, and daily license fees.
625 (c) If no tax on handle for live jai alai performances
626 were paid to the commission by a jai alai permitholder during
627 the 1991-1992 state fiscal year, then at such time as the total
628 of admissions tax, daily license fee, and tax on handle for live
629 jai alai performances paid to the commission by a permitholder
630 during the current state fiscal year exceeds the total state tax
631 revenues from wagering on live jai alai performances paid or due
632 by the permitholder in the last state fiscal year in which the
633 permitholder conducted a full schedule of live games, the
634 permitholder shall pay tax on handle for live jai alai
635 performances at a rate of 3.3 percent of the handle per
636 performance for the remainder of the current state fiscal year.
637 For purposes of this section, total state tax revenues on live
638 jai alai wagering shall include any admissions tax, tax on
639 handle, surtaxes on handle, and daily license fees. This
640 paragraph shall take effect July 1, 1993.
641 (d) A permitholder who obtains a new permit issued by the
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Bill No. HB 909 (2024)
Amendment No. 1
642 commission subsequent to the 1991-1992 state fiscal year and a
643 permitholder whose permit has been converted to a jai alai
644 permit under the provisions of this chapter, shall, at such time
645 as the total of admissions tax, daily license fee, and tax on
646 handle for live jai alai performances paid to the commission by
647 the permitholder during the current state fiscal year exceeds
648 the average total state tax revenues from wagering on live jai
649 alai performances for the first 3 consecutive jai alai seasons
650 paid to or due the commission by the permitholder and during
651 which the permitholder conducted a full schedule of live games,
652 pay tax on handle for live jai alai performances at a rate of
653 3.3 percent of the handle per performance for the remainder of
654 the current state fiscal year.
655 (e) The payment of taxes pursuant to paragraphs (b), (c),
656 and (d) shall be calculated and commence beginning the day in
657 which the permitholder is first entitled to the reduced rate
658 specified in this section and the report of taxes required by s.
659 550.0951(5) is submitted to the commission.
660 (f) A jai alai permitholder paying taxes under this
661 section shall retain the breaks and pay an amount equal to the
662 breaks as special prize awards which shall be in addition to the
663 regular contracted prize money paid to jai alai players at the
664 permitholder's facility. Payment of the special prize money
665 shall be made during the permitholder's current meet.
666 (g) For purposes of this section, "handle" shall have the
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Bill No. HB 909 (2024)
Amendment No. 1
667 same meaning as in s. 550.0951, and shall not include handle
668 from intertrack wagering.
669 Section 19. For the purpose of incorporating the amendment
670 made by this act to section 550.0951, Florida Statutes, in a
671 reference thereto, subsection (4) of section 550.09512, Florida
672 Statutes, is reenacted to read:
673 550.09512 Harness horse taxes; abandoned interest in a
674 permit for nonpayment of taxes.—
675 (4) In the event that a court of competent jurisdiction
676 determines any of the provisions of this section to be
677 unconstitutional, it is the intent of the Legislature that the
678 provisions contained in this section shall be null and void and
679 that the provisions of s. 550.0951 shall apply to all harness
680 horse permitholders beginning on the date of such judicial
681 determination. To this end, the Legislature declares that it
682 would not have enacted any of the provisions of this section
683 individually and, to that end, expressly finds them not to be
684 severable.
685 Section 20. For the purpose of incorporating the amendment
686 made by this act to section 550.0951, Florida Statutes, in
687 references thereto, subsection (1) and paragraph (e) of
688 subsection (2) of section 550.09514, Florida Statutes, are
689 reenacted to read:
690 550.09514 Greyhound dogracing taxes; purse requirements.—
691 (1) Wagering on greyhound racing is subject to a tax on
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Bill No. HB 909 (2024)
Amendment No. 1
692 handle for live greyhound racing as specified in s. 550.0951(3).
693 However, each permitholder shall pay no tax on handle until such
694 time as this subsection has resulted in a tax savings per state
695 fiscal year of $360,000. Thereafter, each permitholder shall pay
696 the tax as specified in s. 550.0951(3) on all handle for the
697 remainder of the permitholder's current race meet. For the three
698 permitholders that conducted a full schedule of live racing in
699 1995, and are closest to another state that authorizes greyhound
700 pari-mutuel wagering, the maximum tax savings per state fiscal
701 year shall be $500,000. The provisions of this subsection
702 relating to tax exemptions shall not apply to any charity or
703 scholarship performances conducted pursuant to s. 550.0351.
704 (2)
705 (e) In addition to the purse requirements of paragraphs
706 (a)-(c), each greyhound permitholder shall pay as purses an
707 amount equal to one-third of the amount of the tax reduction on
708 live and simulcast handle applicable to such permitholder as a
709 result of the reductions in tax rates provided by this act
710 through the amendments to s. 550.0951(3). With respect to
711 intertrack wagering when the host and guest tracks are greyhound
712 permitholders not within the same market area, an amount equal
713 to the tax reduction applicable to the guest track handle as a
714 result of the reduction in tax rate provided by this act through
715 the amendment to s. 550.0951(3) shall be distributed to the
716 guest track, one-third of which amount shall be paid as purses
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Bill No. HB 909 (2024)
Amendment No. 1
717 at the guest track. However, if the guest track is a greyhound
718 permitholder within the market area of the host or if the guest
719 track is not a greyhound permitholder, an amount equal to such
720 tax reduction applicable to the guest track handle shall be
721 retained by the host track, one-third of which amount shall be
722 paid as purses at the host track. These purse funds shall be
723 disbursed in the week received if the permitholder conducts at
724 least one live performance during that week. If the permitholder
725 does not conduct at least one live performance during the week
726 in which the purse funds are received, the purse funds shall be
727 disbursed weekly during the permitholder's next race meet in an
728 amount determined by dividing the purse amount by the number of
729 performances approved for the permitholder pursuant to its
730 annual license, and multiplying that amount by the number of
731 performances conducted each week. The commission shall conduct
732 audits necessary to ensure compliance with this paragraph.
733 Section 21. For the purpose of incorporating the amendment
734 made by this act to section 550.0951, Florida Statutes, in a
735 reference thereto, subsection (3) of section 550.09516, Florida
736 Statutes, is reenacted to read:
737 550.09516 Credit for eligible permitholders condu cting
738 thoroughbred racing.—
739 (3) Beginning July 1, 2023, and each July 1 thereafter,
740 each permitholder granted a credit pursuant to this section may
741 apply the credit to the taxes and fees due under ss. 550.0951,
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Amendment No. 1
742 550.09515, and 550.3551(3), less any credit received by the
743 permitholder under s. 550.09515(6), and less the amount of state
744 taxes that would otherwise be due to the state for the conduct
745 of charity day performances under s. 550.0351(4). The unused
746 portion of the credit may be carried forward and applied each
747 month as taxes and fees become due. Any unused credit remaining
748 at the end of a fiscal year expires and may not be used.
749 Section 22. For the purpose of incorporating the amendment
750 made by this act to section 550.0951, Florida Statutes, in a
751 reference thereto, subsection (1) of section 550.135, Florida
752 Statutes, is reenacted to read:
753 550.135 Division of moneys derived under this law. —All
754 moneys that are deposited with the Chief Financial Officer to
755 the credit of the Pari-mutuel Wagering Trust Fund shall be
756 distributed as follows:
757 (1) The daily license fee revenues collected pursuant to
758 s. 550.0951(1) shall be used to fund the operating cost of the
759 commission; however, other collections in the Pari-mutuel
760 Wagering Trust Fund may also be used to fund the operation of
761 the commission in accordance with authorized appropriations.
762 Section 23. For the purpose of incorporating the amendment
763 made by this act to section 550.0951, Florida Statutes, in
764 references thereto, subsection (2) of section 550.1625, Florida
765 Statutes, is reenacted to read:
766 550.1625 Dogracing; taxes.—
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Amendment No. 1
767 (2) A permitholder that conducts a dograce meet under this
768 chapter must pay the daily license fee, the admission tax, the
769 breaks tax, and the tax on pari-mutuel handle as provided in s.
770 550.0951 and is subject to all penalties and sanctions provided
771 in s. 550.0951(6).
772 Section 24. For the purpose of incorporating the amendment
773 made by this act to section 550.0951, Florida Statutes, in
774 references thereto, subsections (3) through (6) of section
775 550.26352, Florida Statutes, are reenacted to read:
776 550.26352 Breeders' Cup Meet; pools authorized; conflicts;
777 taxes; credits; transmission of races; rules; application. —
778 (3) If the permitholder conducting the Breeders' Cup Meet
779 is located within 35 miles of one or more permitholders
780 scheduled to conduct a thoroughbred race meet on any of the 3
781 days of the Breeders' Cup Meet, then operation on any of those 3
782 days by the other permitholders is prohibited. As compensation
783 for the loss of racing days caused thereby, such operating
784 permitholders shall receive a credit against the taxes otherwise
785 due and payable to the state under ss. 550.0951 and 550.09515.
786 This credit shall be in an amount equal to the operating loss
787 determined to have been suffered by the operating permitholders
788 as a result of not operating on the prohibited racing days, but
789 shall not exceed a total of $950,000. The determination of the
790 amount to be credited shall be made by the commission upon
791 application by the operating permitholder. The tax credits
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Bill No. HB 909 (2024)
Amendment No. 1
792 provided in this subsection shall not be available unless an
793 operating permitholder is required to close a bona fide meet
794 consisting in part of no fewer than 10 scheduled performances in
795 the 15 days immediately preceding or 10 scheduled performances
796 in the 15 days immediately following the Breeders' Cup Meet.
797 Such tax credit shall be in lieu of any other compensation or
798 consideration for the loss of racing days. There shall be no
799 replacement or makeup of any lost racing days.
800 (4) Notwithstanding any provision of ss. 550.0951 and
801 550.09515, the permitholder conducting the Breeders' Cup Meet
802 shall pay no taxes on the handle included within the pari-mutuel
803 pools of said permitholder during the Breeders' Cup Meet.
804 (5) The permitholder conducting the Breeders' Cup Meet
805 shall receive a credit against the taxes otherwise due and
806 payable to the state under ss. 550.0951 and 550.09515 generated
807 during said permitholder's next ensuing regular thoroughbred
808 race meet. This credit shall be in an amount not to exceed
809 $950,000 and shall be utilized by the permitholder to pay the
810 purses offered by the permitholder during the Breeders' Cup Meet
811 in excess of the purses which the permitholder is otherwise
812 required by law to pay. The amount to be credited shall be
813 determined by the commission upon application of the
814 permitholder which is subject to audit by the commission.
815 (6) The permitholder conducting the Breeders' Cup Meet
816 shall receive a credit against the taxes otherwise due and
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Bill No. HB 909 (2024)
Amendment No. 1
817 payable to the state under ss. 550.0951 and 550.09515 generated
818 during said permitholder's next ensuing regular thoroughbred
819 race meet. This credit shall be in an amount not to exceed
820 $950,000 and shall be utilized by the permitholder for such
821 capital improvements and extraordinary expenses as may be
822 necessary for operation of the Breeders' Cup Meet. The amount to
823 be credited shall be determined by the commission upon
824 application of the permitholder which is subject to audit by the
825 commission.
826 Section 25. For the purpose of incorporating the amendment
827 made by this act to section 550.0951, Florida Statutes, in
828 references thereto, subsection (4) of section 550.375, Florida
829 Statutes, is reenacted to read:
830 550.375 Operation of certain harness tracks.—
831 (4) The permitholder conducting a harness horse race meet
832 must pay the daily license fee, the admission tax, the tax on
833 breaks, and the tax on pari-mutuel handle provided in s.
834 550.0951 and is subject to all penalties and sanctions provided
835 in s. 550.0951(6).
836 Section 26. Except as otherwise expressly provided in this
837 act and except for this section, which shall take effect upon
838 this act becoming a law, this act shall take effect July 1,
839 2024.
840
841 -----------------------------------------------------
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Bill No. HB 909 (2024)
Amendment No. 1
842 T I T L E A M E N D M E N T
843 Remove everything before the enacting clause and insert:
844 A bill to be entitled
845 An act relating to pari-mutuel permitholders; creating
846 s. 16.717, F.S.; authorizing the Florida Gaming
847 Control Commission to deny an application for
848 licensure of, or suspend or revoke the license of, any
849 person who falsely swears under oath or affirmation to
850 certain material statements on his or her application
851 for a license; providing that such persons are subject
852 to other applicable penalties; creating s. 16.718,
853 F.S.; requiring applicants for licenses and licensees
854 to notify the commission of certain contact
855 information and of any change in such contact
856 information and providing penalties for failure to
857 comply; providing that delivery of correspondence to
858 the licensee's or applicant's e-mail or mailing
859 address on record with the commission constitutes
860 sufficient notice for official communications,
861 including administrative complaints or other documents
862 setting forth intended or final agency action;
863 providing discretion to the commission in the method
864 of service of such correspondence; amending s.
865 550.01215, F.S.; revising the timeframe during which a
866 permitholder is required to annually file an
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Bill No. HB 909 (2024)
Amendment No. 1
867 application for an operating license for a pari-mutuel
868 facility during the next state fiscal year; revising
869 the date by which the commission is required to issue
870 such license; revising the deadline for application
871 amendments; revising the deadline date for the
872 commission to issue a license; authorizing, rather
873 than requiring, the commission to take into
874 consideration the impact of such change on state
875 revenues when determining whether to change a
876 performance date; authorizing, rather than requiring,
877 the commission to take specified actions on a
878 permitholder's license; deleting a provision giving
879 permitholders the right to apply for a license for
880 performances that have been vacated, abandoned, or
881 will not be used by another permitholder; making
882 technical changes; amending ss. 550.0351 and 550.054,
883 F.S.; conforming provisions to changes made by the
884 act; amending s. 550.0951, F.S.; making technical
885 changes; removing obsolete language; reenacting and
886 amending s. 550.09515, F.S.; removing obsolete
887 language; amending s. 550.105, F.S.; expanding the
888 commission's authority to deny, revoke, suspend, or
889 place conditions on certain licenses; authorizing the
890 commission to summarily suspend a license when a
891 person has been subject to a provisional suspension or
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Bill No. HB 909 (2024)
Amendment No. 1
892 period of ineligibility imposed by the federal
893 Horseracing Integrity and Safety Authority related to
894 the finding of a prohibited substance in an animal's
895 hair or bodily fluids; providing that any suspension
896 imposed expires at the same time the Horseracing
897 Integrity and Safety Authority's provisional
898 suspension or period of ineligibility expires;
899 requiring the commission to offer a licensee a
900 postsuspension hearing within a specified timeframe;
901 providing a burden of proof for such hearings;
902 providing a standard of review for the commission for
903 such appeals; amending s. 550.125, F.S.; revising
904 requirements for maintaining certain financial records
905 and applying such requirements to all, rather than
906 specified, pari-mutuel wagering permitholders;
907 reenacting and amending s. 550.3551, F.S.; authorizing
908 a licensed horse track to receive broadcasts of
909 horseraces conducted at horse racetracks outside this
910 state if certain conditions are met; amending s.
911 550.475, F.S.; revising provisions limiting leasing of
912 pari-mutuel facilities to permitholders of the same
913 class or any jai alai permitholder; amending s.
914 550.505, F.S.; revising the timeframe for nonwagering
915 permitholders to apply for a nonwagering license;
916 requiring permitholders to demonstrate that locations
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COMMITTEE/SUBCOMMITTEE AMENDMENT
Bill No. HB 909 (2024)
Amendment No. 1
917 designated for nonwagering horseracing are available
918 for such use; revising the date by which the
919 commission is required to issue certain nonwagering
920 licenses; authorizing the commission to extend a
921 certain nonwagering license for a specified timeframe;
922 amending s. 550.5251, F.S.; revising the timeframes
923 for when a thoroughbred permitholder must file with
924 the commission an application for a license to conduct
925 thoroughbred racing meetings, for when the commission
926 must issue such licenses, and for when the
927 permitholder may request changes in its application to
928 conduct performances; amending s. 551.104, F.S.;
929 removing obsolete language; requiring that audits of
930 licensees' receipts and distributions of slot machine
931 revenues be conducted by a certified public accountant
932 licensed under ch. 473, F.S.; revising the timeframe
933 within which such audits must be filed with the
934 commission; amending s. 551.107, F.S.; authorizing the
935 waiver of required action on the part of the
936 commission under certain circumstances; reenacting ss.
937 212.04(2)(c), 550.0351(4), 550.09511(2), 550.09512(4),
938 550.09514(1) and (2)(e), 550.09516(3), 550.135(1),
939 550.1625(2), 550.26352(3)-(6), and 550.375(4), F.S.,
940 relating to admissions taxes and rates, charity racing
941 days, jai alai taxes, harness horse taxes, greyhound
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COMMITTEE/SUBCOMMITTEE AMENDMENT
Bill No. HB 909 (2024)
Amendment No. 1
942 dogracing taxes and purse requirements, thoroughbred
943 racing permitholders, daily licensing fees collected
944 from pari-mutuel racing, dogracing taxes, authorizing
945 Breeders' Cup Meet pools, and operating certain
946 harness tracks, respectively, to incorporate the
947 amendment made to s. 550.0951, F.S., in references
948 thereto; providing an effective date.
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HB 991
HOUSE OF REPRESENTATIVES STAFF ANALYSIS
BILL #: HB 991 Pub. Rec./Cellular Telephone Numbers and Secure Login Credentials Held by the
Department of Financial Services
SPONSOR(S): LaMarca
TIED BILLS: CS/HB 989 IDEN./SIM. BILLS:
REFERENCE ACTION ANALYST STAFF DIRECTOR or
BUDGET/POLICY CHIEF
1) Insurance & Banking Subcommittee 16 Y, 0 N Herrera Lloyd
2) Ethics, Elections & Open Government 17 Y, 0 N Rando Toliver
Subcommittee
3) Commerce Committee Herrera Hamon
SUMMARY ANALYSIS
The Department of Financial Services (DFS) has broad duties, including licensure and regulation of insurance
agents, agencies, and adjusters; insurance consumer assistance and protection; and holding and attempting to
return unclaimed property to its rightful owner. DFS has a number of regulatory responsibilities over the Florida
insurance market. DFS regulates insurance adjusters, which includes public adjusters, independent adjusters,
and company employee adjusters.
The bill creates a public record exemption within s. 626.171, F.S., for cellular telephone numbers and secure
login credentials, held by the DFS, associated with a person’s application for licensure for insurance agents,
customer representatives, adjusters, service representatives, and reinsurance intermediaries . The exemption
applies to cellular telephone numbers and secure login credentials held by the DFS before, on, or after the
effective date of the bill.
The bill provides that the exemption is subject to the Open Government Sunset Review Act, and will be
repealed on October 2, 2029, unless reviewed and saved from repeal through reenactment by the Legislature.
The bill also provides a statement of public necessity as required by the Florida Constitution.
The bill may have an insignificant negative fiscal impact on state government. See Fiscal Comments.
Article I, s. 24(c) of the Florida Constitution requires a two-thirds vote of the members present and
voting for final passage of a newly created public record exemption. The bill creates a public record
exemption; thus, it requires a two-thirds vote for final passage.
This docum ent does not reflect the intent or official position of the bill sponsor or House of Representatives .
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FULL ANALYSIS
I. SUBSTANTIVE ANALYSIS
A. EFFECT OF PROPOSED CHANGES:
Background
Public Records
The Florida Constitution sets forth the state’s public policy regarding access to government records,
guaranteeing every person a right to inspect or copy any public record of the legislative, executive, and
judicial branches of government.1 The Legislature, however, may provide by general law an exemption2
from public record requirements provided that the exemption passes by a two-thirds vote of each
chamber, states with specificity the public necessity justifying the exemption, and is no broader than
necessary to meet its public purpose.3
Current law also addresses the public policy regarding access to government records by guaranteeing
every person a right to inspect and copy any state, county, or municipal record, unless the record is
exempt.4 Furthermore, the Open Government Sunset Review (OGSR) Act 5 provides that a public
record exemption may be created, revised, or maintained only if it serves an identifiable public purpose
and the “Legislature finds that the purpose is sufficiently compelling to override the strong public policy
of open government and cannot be accomplished without the exemption.” 6 An identifiable public
purpose is served if the exemption meets one of the following purposes:
Allow the state or its political subdivisions to effectively and efficiently administer a
governmental program, which administration would be significantly impaired without the
exemption;
Protect sensitive personal information that, if released, would be defamatory or would
jeopardize an individual’s safety; however, only the identity of an individual may be exempted
under this provision; or
Protect trade or business secrets.7
Pursuant to the OGSR Act, a new public record exemption, or the substantial amendment of an existing
public record exemption, is repealed on October 2nd of the fifth year following enactment, unless the
Legislature reenacts the exemption.8
Organization of the Department of Financial Services
The Chief Financial Officer (CFO) is an elected member of the Cabinet, serves as the state’s chief
fiscal officer,9 and is designated as the State Fire Marshal. The CFO is the head of the Department of
Financial Services (DFS). Effective January 2003, the Department of Insurance, Treasury, State Fire
Marshal, and the Department of Banking and Finance were merged to form DFS. DFS consists of 13
divisions and several specialized offices.10 DFS is composed of the following divisions and independent
office:
Accounting and Auditing;
1 Art. I, s. 24(a), Fla. Const.
2 A “public record exemption” means a provision of general law which provides that a specified record, or portion thereof, is n ot subject
to the access requirements of s. 119.07(1), F.S., or s. 24, Art. I of the Florida Constitution. See s. 119.011(8), F.S.
3 Art. I, s. 24(c), Fla. Const.
4 See s. 119.01, F.S.
5 S. 119.15, F.S.
6 S. 119.15(6)(b), F.S.
7 Id.
8 S. 119.15(3), F.S.
9 Art. IV, s. 4, Fla. Const.
10 S. 20.121, F.S.
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Consumer Services;
Funeral, Cemetery, and Consumer Services;
Insurance Agent and Agency Services;
Investigative and Forensic Services;11
Public Assistance Fraud;
Rehabilitation and Liquidation;
Risk Management;
State Fire Marshal;
Treasury;
Unclaimed Property;
Workers’ Compensation;
Administration; and the
Office of Insurance Consumer Advocate.
Division of Insurance Agent and Agency Services
DFS has broad duties, including licensure and regulation of insurance agents, agencies, and adjusters;
insurance consumer assistance and protection; and holding and attempting to return unclaimed
property to its rightful owner.12 DFS has a number of regulatory responsibilities over the Florida
insurance market. DFS regulates insurance adjusters, which includes public adjusters, independent
adjusters, and company employee adjusters and conducts insurance-related consumer outreach
through its Consumer Services. The Division of Workers’ Compensation within DFS administers the
workers’ compensation system through enforcement of coverage requirements,13 administration of
workers’ compensation health care delivery system, 14 data collection,15 and assisting injured workers,
employers, insurers, and providers in fulfilling their responsibilities. 16 DFS also administers the
rehabilitation and liquidation of insolvent insurers.
No person may be, act as, or advertise, or hold himself or herself out to be an insurance agent,
insurance adjuster, or customer representative unless he or she is currently licensed by DFS and
appointed by an appropriate appointing entity or person. 17 There are several types of insurance
representatives. These include:
General lines agents;
Life insurance agents;
Health insurance agents;
Title insurance agents;
Personal lines agents; and
Unaffiliated insurance agents.18
General Lines Agent
A general lines agent19 is one who sells the following lines of insurance: property; 20 casualty,21 including
commercial liability insurance underwritten by a risk retention group, a commercial self-insurance
11 This division includes the Bureau of Forensic Services; Bureau of Fire, Arson, and Explosives Investigations; Office of Fiscal Integrity;
Bureau of Insurance Fraud; and Bureau of Workers’ Compensation Fraud.
12 See, e.g., Florida Department of Financial Services, What is the Purpose of the Department,
https://oppaga.fl.gov/ProgramSummary/ProgramDetail?programNumber=4103#:~:text=The%20office%20protects%20the%20public,ent
rants%20to%20the%20Florida%20market (last visited Jan. 25, 2024).
13 S. 440.107(3), F.S.
14 S. 440.13, F.S.
15 Ss. 440.185 and 440.593, F.S.
16 S. 440.191, F.S.
17 S. 626.112, F.S.
18 S. 626.015, F.S.
19 S. 626.015(7), F.S.
20 S. 624.604, F.S.
21 S. 624.605, F.S.
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fund,22 or a workers’ compensation self-insurance fund;23 surety;24 health;25 and, marine.26 The general
lines agent may only transact health insurance for an insurer that the general lines agent also
represents for property and casualty insurance. If the general lines agent wishes to represent health
insurers that are not also property and casualty insurers, they must be licensed as a health insurance
agent.27
Title Agents and Agencies
Title insurance insures owners of real property (owner’s policy) or others having an interest in real
property, as well as lenders (mortgagee policies) against loss by encumbrance, defective title,
invalidity, or adverse claim to title. It is a policy issued by a title insurer that, after evaluating a search of
title, insures against a number of covered risks, including title defects or liens that are not identified as
exceptions. In Florida, title insurers operate on a monoline basis, meaning that the insurer can only
transact title insurance and cannot transact any other type of insurance. 28
Public Adjusters
A public adjuster, excluding duly licensed attorneys, is any individual who, for compensation or any
other valuable consideration, directly or indirectly prepares, completes, or submits an insurance claim
for an insured or third-party claimant.29 Additionally, it includes those who, for compensation, act on
behalf of or assist an insured or third-party claimant in negotiating or settling a covered insurance
claim.30 The term also encompasses individuals advertising as adjusters for such claims, as well as
those who, for compensation, solicit, investigate, or adjust these claims on behalf of the public
adjuster, an insured, or a third-party claimant.31
Effect of the Bill
The bill creates a public record exemption within s. 626.171, F.S., for cellular telephone numbers and
secure login credentials 32 held by the DFS pertaining to applications for licensure for insurance agents,
customer representatives, adjusters, service representatives, and reinsurance intermediaries. The bill
provides such telephone numbers and secure login credentials are exempt33 from public record
requirements under s. 119.07(1), F.S., and s. 24(a), Art. I of the Florida Constitution. The exemption
applies to cellular telephone numbers and secure login credentials held by the DFS before, on, or after
the effective date of the bill.
The exemption is subject to the OGSR Act, and will be repealed on October 2, 2029, unless reviewed
and saved from repeal through reenactment by the Legislature. The bill also provides a statement of
public necessity as required by the Florida Constitution.
22 As defined in s. 624.462, F.S.
23 Pursuant to s. 624.4621, F.S.
24 S. 626.606, F.S.
25
S. 624.603, F.S.
26 S. 624.607, F.S.
27 S. 626.829, F.S.
28 S. 627.786, F.S.
29 S. 626.854(1), F.S.
30
Id.
31 Id.
32 The bill defines the term “secure login credential” to mean information held by the DFS for purposes of authenticating a user 's logging
into a user account on a computer, a computer system, a computer network, or an electronic device; an online user accou nt accessible
via the Internet, whether through a mobile device, a website, or any other electronic means; or information used for authenti cation or
password recovery.
33 There is a difference between records the Legislature designates exempt from public record requirements and those the Legislature
designates confidential and exempt. A record classified as exempt from public disclosure may be disclosed under certain
circumstances. See WFTV, Inc. v. Sch. Bd. of Seminole, 874 So.2d 48, 53 (Fla. 5th DCA 2004), review denied, 892 So.2d 1015 (Fla.
2004); State v. Wooten, 260 So. 3d 1060, 1070 (Fla. 4th DCA 2018); City of Riviera Beach v. Barfield, 642 So.2d 1135 (Fla. 4th DCA
1994); Williams v. City of Minneola, 575 So.2d 683, 687 (Fla. 5th DCA 1991). If the Legislature designates a record as confidential and
exempt from public disclosure, such record may not be released by the custodian of public records to anyone other than the pe rsons or
entities specifically designated in statute. See Op. Att’y Gen. Fla. 04-09 (2004).
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The bill is effective upon the same date that HB 989 or similar legislation takes effect, if such legislation
is adopted in the same legislative session or an extension thereof becomes law.
B. SECTION DIRECTORY:
Section 1. Amends s. 626.171, F.S., relating to application for license as an agent, customer
representative, adjuster, service representative, or reinsurance intermediary.
Section 2. Provides a statement of public necessity.
Section 3. Contains unnumbered section of law.
Section 4. Provides that the bill is effective on the same date as HB 989 or similar bill takes effect.
II. FISCAL ANALYSIS & ECONOMIC IMPACT STATEMENT
A. FISCAL IMPACT ON STATE GOVERNMENT:
1. Revenues:
None.
2. Expenditures:
None.
B. FISCAL IMPACT ON LOCAL GOVERNMENTS:
1. Revenues:
None.
2. Expenditures:
The bill may have an insignificant negative fiscal impact on the DFS, as staff responsible for
complying with public record requests may require training related to the newly-created public
record exemption. However, any additional costs will likely be absorbed within existing resources.
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:
Vote Requirement
Article I, s. 24(c) of the Florida Constitution requires a two-thirds vote of the members present and
voting for final passage of a newly created or expanded public record exemption. The bill creates a
public record exemption; thus, it requires a two-thirds vote for final passage.
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Public Necessity Statement
Article I, s. 24(c) of the Florida Constitution requires a public necessity statement for a newly created
or expanded public record exemption. The bill creates a public record exemption; therefore, it
includes a public necessity statement. The public necessity statement states that the Legislature
finds, in part, that without the public record exemption, the effective and efficient administration of the
electronic filing system would be hindered.
Breadth of Exemption
Article I, s. 24(c) of the Florida Constitution requires a newly created public record exemption to be
no broader than necessary to accomplish the stated purpose of the law. The bill creates a public
record exemption for cellular telephone numbers and secure login credentials held by the DFS
associated with insurance agents, customer representatives, adjusters, service representatives, and
reinsurance intermediaries. The purpose of the exemption is to protect sensitive personal information
linked to individuals in these roles, that the DFS receives for the purpose of electronic filing or record
review. As such, the bill appears to be no broader than necessary to accomplish its purpose.
B. RULE-MAKING AUTHORITY:
The bill does not confer rulemaking authority nor require the promulgation of rules.
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 991 2024
1 A bill to be entitled
2 An act relating to public records; amending s.
3 626.171, F.S.; providing a public records exemption
4 for cellular telephone numbers and secure login
5 credentials obtained by the Department of Financial
6 Services through certain insurance license
7 applications; providing applicability; providing a
8 definition; providing for future legislative review
9 and repeal of the exemption; providing a statement of
10 public necessity; providing a directive to the
11 Division of Law Revision; providing a contingent
12 effective date.
13
14 Be It Enacted by the Legislature of the State of Florida:
15
16 Section 1. Subsection (8) is added to section 626.171,
17 Florida Statutes, as amended by HB 989 or similar legislation,
18 2024 Regular Session, to read:
19 626.171 Application for license as an agent, customer
20 representative, adjuster, service representative, or reinsurance
21 intermediary.—
22 (8)(a) Cellular telephone numbers collected by the
23 department under subsection (2) are exempt from s. 119.07(1) and
24 s. 24(a), Art. I of the State Constitution. This exemption
25 applies to cellular telephone numbers held by the department
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hb0991-00
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 991 2024
26 before, on, or after the effective date of this act.
27 (b) Secure login credentials held by the department for
28 the purpose of allowing a person to electronically file or
29 review records under this section are exempt from s. 119.07(1)
30 and s. 24(a), Art. I of the State Constitution. This exemption
31 applies to secure login credentials held by the department
32 before, on, or after the effective date of this act. As used in
33 this paragraph, the term "secure login credential" means
34 information held by the department for purposes of
35 authenticating a user's logging into a user account on a
36 computer, a computer system, a computer network, or an
37 electronic device; an online user account accessible via the
38 Internet, whether through a mobile device, a website, or any
39 other electronic means; or information used for authentication
40 or password recovery.
41 (c) This subsection is subject to the Open Government
42 Sunset Review Act in accordance with s. 119.15 and shall stand
43 repealed on October 2, 2029, unless reviewed and saved from
44 repeal through reenactment by the Legislature.
45 Section 2. The Legislature finds that it is a public
46 necessity that all cellular phone numbers and secure login
47 credentials held by the Department of Financial Services
48 relating to electronically filed applications for licenses as
49 insurance agents, customer representatives, adjusters, service
50 representatives, and reinsurance intermediaries be made exempt
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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 991 2024
51 from s. 119.07(1), Florida Statutes, and s. 24(a), Article I of
52 the State Constitution. The unintentional publication of such
53 information may subject the filer to identity theft, finan cial
54 harm, or other adverse impacts. Without this public records
55 exemption, the effective and efficient administration of the
56 electronic filing system, which is otherwise designed to
57 increase the ease of filing records, would be hindered. For
58 these reasons, the Legislature finds that the public records
59 exemption for all cellular phone numbers and secure login
60 credentials held by the Department of Financial Services
61 relating to electronically filed applications for licenses as
62 insurance agents, customer representatives, adjusters, service
63 representatives, and reinsurance intermediaries serves a public
64 purpose.
65 Section 3. The Division of Law Revision is directed to
66 replace the phrase "the effective date of this act" wherever it
67 occurs in this act with the date this act becomes a law.
68 Section 4. This act shall take effect on the same date
69 that HB 989 or similar legislation takes effect, if such
70 legislation is adopted in the same legislative session or an
71 extension thereof and becomes a law.
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COMMERCE COMMITTEE
HB 991 by Rep. LaMarca
Pub. Rec./Cellular Telephone Numbers held
by the Department of Financial Services
AMENDMENT SUMMARY
February 22, 2024
Amendment 1 by Rep. LaMarca (Line 27): The amendment conforms the bill to its Senate
counterpart by removing the proposed exemption for secure login credentials held by the
Department of Financial Services.
COMMITTEE/SUBCOMMITTEE AMENDMENT
Bill No. HB 991 (2024)
Amendment No. 1
COMMITTEE/SUBCOMMITTEE ACTION
ADOPTED (Y/N)
ADOPTED AS AMENDED (Y/N)
ADOPTED W/O OBJECTION (Y/N)
FAILED TO ADOPT (Y/N)
WITHDRAWN (Y/N)
OTHER
1 Committee/Subcommittee hearing bill: Commerce Committee
2 Representative LaMarca offered the following:
3
4 Amendment (with title amendment)
5 Remove lines 27-64 and insert:
6 (b) This subsection is subject to the Open Government
7 Sunset Review Act in accordance with s. 119.15 and shall stand
8 repealed on October 2, 2029, unless reviewed and saved from
9 repeal through reenactment by the Legislature.
10 Section 2. The Legislature finds that it is a public
11 necessity that all cellular telephone numbers collected by the
12 Department of Financial Services pursuant to s. 626.171(2),
13 Florida Statutes, be exempt from public records requirements.
14 The Legislature finds that the unintentional publication of such
15 information may subject the filer to identity theft, financial
16 harm, or other adverse impacts. Without the public records
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COMMITTEE/SUBCOMMITTEE AMENDMENT
Bill No. HB 991 (2024)
Amendment No. 1
17 exemption, the effective and efficient administration of the
18 electronic filing system, which is otherwise designed to
19 increase the ease of filing records, would be hindered. For
20 these reasons, the Legislature finds that it is a public
21 necessity to exempt such information from public records
22 requirements.
23
24 -----------------------------------------------------
25 T I T L E A M E N D M E N T
26 Remove lines 4-8 and insert:
27 for cellular telephone numbers obtained by the Department of
28 Financial Services through certain insurance license
29 applications; providing for future legislative review
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CS/CS/HB 1021
HOUSE OF REPRESENTATIVES STAFF ANALYSIS
BILL #: CS/CS/HB 1021 Community Associations
SPONSOR(S): State Administration & Technology Appropriations Subcommittee, Regulatory Reform &
Economic Development Subcommittee, Lopez, V. and others
TIED BILLS: IDEN./SIM. BILLS: CS/SB 1178
REFERENCE ACTION ANALYST STAFF DIRECTOR or
BUDGET/POLICY CHIEF
1) Regulatory Reform & Economic Development 14 Y, 0 N, As CS Larkin Anstead
Subcommittee
2) State Administration & Technology 14 Y, 0 N, As CS Helpling Topp
Appropriations Subcommittee
3) Commerce Committee Larkin Hamon
SUMMARY ANALYSIS
Related to community association managers (CAMs) and CAM firms, the bill:
Requires a CAM to return all community association records in its possession within 20 days of termination
of services agreement or a written request whichever occurs first.
Provides conflict of interest disclosure requirements and a process for associations to follow when approving
contracts with a CAM or a relative that may present a conflict of interest.
Related to official records, the bill:
Provides that on January 1, 2026, condominium associations with 25 units or more will be requi red maintain
specified records available for download on the association’s website or by an application on a mobile
device.
Requires associations to maintain additional accounting records (e.g., invoices and other documentation that
substantiates any receipt or expenditure).
Provides that a condominium association may satisfy a request for access to records by making the records
available for download on the association website or through an application on a mobile device.
Provides criminal penalties related to the association refusing to release or destroy official records.
The bill:
Provides criminal penalties for accepting a kickback and for fraudulent voting activities.
Requires directors to annually complete continuing education on recent changes to th e condominium laws
and rules.
Requires a residential condominium association of 10 or more units to meet once each quarter for the
purpose of responding to inquiries from members and informing members on the state of condominium.
Allows the board with regard to the structural integrity reserve study to recommend a temporary pause in the
reserve funding or reduced funding in certain circumstances.
Provides that the jurisdiction of the Division of Condominiums, Timeshares and Mobile Homes after turnover
occurs includes investigation of complaints related to the procedural aspects of meetings; disclosure of
conflicts of interests; and any written inquiries by unit owners to the association related to the matters under
the Division’s jurisdictional authority.
Requires the Division to conduct random audits of community associations, give its employees the right to
attend board meetings, and require them to refer suspected criminal activity to law enforcement agencies.
The bill provides appropriations and staff to implement the bill. See Fiscal Analysis and Economic Impact Statement.
The bill has an effective date of July 1, 2024, unless otherwise expressly provided.
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:
Community Associations – Background
The Florida Division of Condominiums, Timeshares and Mobile Homes (Division), within the
Department of Business and Professional Regulation (DBPR), provides consumer protection for Florida
residents living in regulated communities through education, complaint resolution, mediation and
arbitration, and developer disclosure. The Division has regulatory authority over the following business
entities and individuals:
Condominium associations;
Cooperative associations;
Florida mobile home parks and related associations;
Vacation units and timeshares;
Yacht and ship brokers and related business entities; and
Homeowners' associations (limited to arbitration of election and recall disputes).
Community Association Managers- Current Situation
Community association managers (CAMs) are licensed and regulated by the Department of Business
and Professional Regulation (DBPR) pursuant to part VIII of ch. 468, F.S. Community association
managers are regulated by the seven-member Regulatory Council of Community Association
Managers at DBPR.1
Section 468.431(2), F.S., defines “community association management” to mean:
any of the following practices requiring substantial specialized knowledge, judgment, and
managerial skill when done for remuneration and when the association or associations
served contain more than 10 units or have an annual budget or budgets in excess of
$100,000: controlling or disbursing funds of a community association, preparing budgets
or other financial documents for a community association, assisting in the noticing or
conduct of community association meetings, and coordinating maintenance for the
residential development and other day-to-day services involved with the operation of a
community association.
A license is not required for a person who:
Performs clerical or ministerial functions under the direct supervision and control of a licensed
manager, or
Performs only the maintenance of a community association and does not assist in any of the
management services.2
To become licensed as a CAM, a license applicant must:
Submit to a background check to determine good moral character,
Attend a DBPR-approved in-person training prior to taking the examination, and
Pass the licensure examination.3
CAMs must also complete not more than 10 hours of continuing education hours as approved by the
council to renew and maintain their licenses.4
1 S. 468.4315(1), F.S.
2 S. 468.431(2),F.S.
3 S. 468.433, F.S.
4 S. 468.4336 and 468.4337, F.S.
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Section 468.4334, F.S., outlines the professional practice standards for CAMs and CAM firms, including
the duty to “discharge the duties performed on behalf of the association as authorized by [ch. 468,
F.S.], loyally, skillfully, and diligently; dealing honestly and fairly; in good faith; with care and full
disclosure to the community association; accounting for all funds; and not charging unreasonable or
excessive fees.”
The license of a CAM or CAM firm may be disciplined, including a suspension or revocation of their
license, or denial of a license renewal, for the grounds specified in s. 468.436, F.S., including:
Committing acts of gross misconduct or gross negligence in connection with the profession.
Contracting, on behalf of an association, with any entity in which the CAM has a financial interest
that is not disclosed.
Violating any provision of chapter 718 (relating to condominiums), chapter 719 (relating to
cooperatives), or chapter 720 (relating to homeowners’ associations) during the course of
performing community association management services pursuant to a contract with a community
association.5
Community Association Managers- Effect of the Bill
Return of Official Records
The bill provides additional professional practice standards for CAMs and CAM firms. The bill requires
CAMs and CAM firms to return all community association official records in its possession within 20
days of termination of a contractual agreement to provide CAM services or a written request for the
return of the official records, whichever occurs first.
Failure of a CAM or a CAM firm to timely return all of the official records within its possession to the
community association creates a rebuttable presumption that such CAM or CAM firm willfully failed to
comply. If the CAM or CAM firm fails to timely return the applicable official records to the community
association, the CAM or CAM firm will be subjected to:
suspension of its license under s. 468.436, F.S., and
a civil penalty of $1,000 per day (up to 10 days) which is assessed beginning on the 21st day after
the termination of a contractual agreement receipt of a written request from the association for
return of the records.
The bill provides such notice of termination must be sent by:
Certified mail;
Return receipt request; or
In the manner required in the management contract.
The CAM or CAM firm may retain, up to 20 business days, those records necessary to complete an
ending financial statement or report. Failure of the association to provide access or retention of
accounting records to prepare the statement or report shall relieve such CAM or CAM firm of any
further responsibility or liability for the preparation of the statement or report.
Conflicts of Interest
The bill creates a conflict of interest disclosure process for CAMs and CAM firms, including directors,
officers, persons with a financial interest in a CAM firm, or a relative6 of such persons (collectively used
as “individual” under this subheading). The bill provides that individuals must disclose to the community
association any activity that may reasonably be construed to be a conflict of interest.
If any of the following exist without providing prior notice, there is a presumption that there is a conflict
of interest unless proven otherwise:
An individual enters into a contract for good or services with the association.
5 S. 468.436(2)(b)5.-7., F.S.
6 The term “relative” in the bill means a relative within the third degree of consanguinity by blood or by marriage.
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An individual holds an interest in, or receives compensation or anything of value from a business
entity that conducts business with the association or proposes to enter a contract or other
transaction with the association. The business entities include:
o A corporation;
o Limited liability corporation;
o Partnership;
o Limited liability partnership; or
o Other business entity.
Under the bill, if the association receives and considers a bid to provide a good or service, other than a
CAM service, from an individual with a financial interest in the community association, the association
must also consider at least three bids from other third-party providers of such good or service.
If an individual discloses that he or she engages in an activity that is a conflict of interest as described
above:
Such activity must be listed on all contracts;
Transactional documents related to the proposed activity must be attached to the meeting agenda
of the next board meeting; and
The disclosures of a possible conflict of interest must be entered into the written minutes of the
meeting.
The bill provides that a contract or other transaction with a possible conflict of interest must be
approved by an affirmative vote of two-thirds of all other directors present.
Moreover, the bill provides that the contract or other transaction with a possible conflict of interest must
be disclosed to the members at the next regular or special meeting. Under the bill, if the board finds
that a community association manager or a community association management firm, including
directors, officers, and persons with a financial interest in a community association management firm,
or a relative of such persons, the association may cancel its community association management
contract with the community association manager or the community association management firm . If
such contract is canceled, the association:
would only be liable for the reasonable value of the goods and services provided up to the time of
cancellation, and
would not be liable for any termination fees, liquidated damages, or other form of penalty for such
cancellation.
The bill provides a procedure for terminating a contract if a conflict of interest was not properly
disclosed. The bill provides that a contract is voidable and terminates upon the association filing a
written notice of the termination of the contract with its board of directors and the notice must contain
the consent of at least 20 percent of the voting interests of the association if:
an association enters a contract with an individual or the individual has an interest in an activity
that is a possible conflict of interest, and
such activity has not been properly disclosed as a conflict of interest or potential conflict of interest.
The bill revises the disciplinary grounds for CAMs and CAM firms to provide a disciplinary ground on
the basis of a CAM or CAM firm’s failure to disclose a conflict of interest as required by s. 468.4335,
F.S.
The bill makes conforming changes.
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Condominiums and Cooperatives Background
Condominiums
A condominium is a form of real property ownership created under ch. 718, F.S., the “Condominium
Act.” Persons own condominium units along with an undivided right of access to the condominium’s
common elements.7 A condominium is created by recording a declaration of condominium, which
governs the relationship between condominium unit owners and the condominium association, in the
public records of the county where the condominium is located. 8 All unit owners are members of the
condominium association, and the association is responsible for common elements operation and
maintenance.9 The condominium association is overseen by an elected board of directors, commonly
referred to as a “board of administration,” which is responsible for the association’s administration. 10
Cooperatives
A cooperative is a form of property ownership created under ch. 719, F.S., the “Cooperative Act,” in
which the real property is owned by the cooperative association and individual units are leased to the
residents, who own shares in the association.11 The lease payment amount is the pro-rata share of the
cooperative’s operational expenses. Cooperatives operate similarly to condominiums, and the laws
regulating cooperatives are largely identical to those regulating condominiums.
Fiduciary Relationship
Board members and officers of a condominium or cooperative association have a fiduciary relationship
with the unit owners in their condominium or cooperative. This fiduciary relationship requires board
members and officers to act in good faith and in the best interests of the unit owners. Under the
“business judgment rule,” the board must act within the scope of its authority, in a reasonable manner,
and must perform its duties with the care and responsibility that an ordinarily prudent person would
exercise under similar circumstances.12
Board members and officers can be the subject of a cause of action for a breach of their fiduciary duty.
However, a person bringing such action must prove that the board member or officer had a fiduciary
duty that was breached that caused damages and rose to the level of criminal activity, fraud, self-
dealing, unjust enrichment, or other improper personal benefit. 13
To determine if a board member or officer breached his or her fiduciary duty, Florida courts look to see
if the board member or officer violated the business judgment rule by determining if the association had
the contractual or statutory authority to perform the relevant act and if the decision was reasonable. The
business judgment rule generally will protect association board members and officers, as long those
board members or officers act within the scope of their authority and in a reasonable manner. 14
It is a breach of a board member or officer’s fiduciary duty if an association fails to complete a
milestone inspection or structural integrity reserve study.
7 S. 718.103(11), F.S.
8 S. 718.104(2), F.S.
9 S. 718.103(2), F.S.
10 S. 718.103(4), F.S.
11 S. 719.103(2), (26), F.S.
12 S. 718.111(1), F.S.
13 Harris B. Katz, Condo column: Can board members be sued and how can an association remove a director?, TC Palm
(Oct. 17, 2019) https://www.tcpalm.com/story/news/local/florida/2019/10/17/can-condo-board-members-sued-and-how-
can-association-remove-director/3907749002/ (last visited Jan. 29, 2024).
14 Id.; Hollywood Towers Condominium Association v. Hampton, 40 So. 3d 784, 787 (Fla. 4th DCA 2010).
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Condominium Associations
Official Records - Current Situation
Florida law specifies certain official records that condominium associations must permanently maintain
from the inception of the association. These records include:15
A copy of the plans, permits, warranties, and other items provided by the developer.
A photocopy of the recorded declaration of condominium of each condominium operated by the
association and each amendment to each declaration.
A photocopy of the recorded bylaws of the association and each amendment to the bylaws.
A certified copy of the articles of incorporation of the association, or other documents creating the
association, and each amendment thereto.
A copy of the current rules of the association.
A book or books that contain the minutes of all meetings of the association, the board of
administration, and the unit owners.
A current roster of all unit owners and their mailing addresses, unit identifications, voting
certifications, and, if known, telephone numbers. The association shall also maintain the e-mail
addresses and facsimile numbers of unit owners consenting to receive notice by electronic
transmission. The e-mail addresses and facsimile numbers are not accessible to unit owners if
consent to receive notice by electronic transmission is provided.
All current insurance policies of the association and condominiums operated by the association.
A current copy of any management agreement, lease, or other contract to which the association is
a party or under which the association or the unit owners have an obligation or responsibility.
Bills of sale or transfer for all property owned by the association.
Generally, other official records must be maintained for at least 7 years. These records include:
Accounting records for the association and separate accounting records for each condominium
that the association operates.
Ballots, sign-in sheets, voting proxies, and all other papers and electronic records relating to voting
by unit owners, which must be maintained for 1 year from the date of the election, vote, or meeting
to which the document relates.
All rental records if the association is acting as agent for the rental of condominium units.
A copy of the current question and answer sheet as described in s. 718.504, F.S.
A copy of the milestone inspection and turnover inspection reports and any other inspection report
relating to a structural or life safety inspection of condominium property. Such record must be
maintained by the association for 15 years after receipt of the report.
Bids for materials, equipment, or services.
All affirmative acknowledgments made pursuant to s. 718.121(4)(c), F.S.
All other written records of the association which are related to the operation of the association.
An association must maintain its official records within the state of Florida and make them available for
inspection within 45 miles of the association or within the county where the association is located. 16
Unit owners may request to inspect and make copies of an association’s official records. An association
must make the records available for inspection within 10 business days of receiving a written request.
Failure to provide an owner or renter the requested records within 10 business days of receiving a
request creates a rebuttable presumption that the association willfully failed to provide the records. An
owner who is denied access to the records is entitled to damages and costs. 17
Any person who knowingly or intentionally defaces or destroys accounting records that were required to
be maintained for a certain period of time, or who knowingly or intentionally fails to create or maintain
15 See s. 718.111(12), F.S.
16 S. 718.111(12)(b)-(c), F.S.
17 Id.
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accounting records with the intent of causing harm to the association or one or more of its members, is
subject to a civil penalty.18
An association may adopt reasonable rules regarding the frequency, time, location, notice, and manner
of record inspections. An association also has the option to make the official records available
electronically via the Internet or in an electronic format viewable on a computer screen. 19 Additionally,
condominium associations with 150 or more units must maintain a website with digital copies of certain
official records such as meeting notices, a copy of the articles of incorporation, declaration, bylaws, and
rules of the association.20
However, the following records are not available for inspection by owners:21
Records protected by the lawyer-client privilege;
Information obtained by an association in connection with the transfer of a unit or parcel;
Personnel records of association or management company employees;
Unit owner medical records;
Personnel identifying information such as social security numbers, driver license numbers, and
credit card numbers;
Electronic security measures that are used to safeguard data; and
The software and operating system used by the association which allow the manipulation of
data.
If a unit owner presents the Division with evidence that the association has failed or has refused to
respond to two official records requests, the Division must issue a subpoena requiring the production of
the requested records where the records are located.22
Official Records – Effect of the Bill
The bill allows an association to fulfill its obligation to let people copy and inspect official records if:
The requested records are posted on the website or are available for download through an
application on a mobile device, and
The association directs all persons authorized to request access to the official records.
The bill provides that on January 1, 2026, a condominium association with 25 or more units, instead of
150 or more units, is required to post digital copies of specified documents on its website or make such
documents available through an application that can be downloaded on a mobile device.
Under the bill, a copy of all building permits issued for ongoing or planned construction is
considered an official record which must be maintained for at least 7 years.
The bill clarifies that the e-mail addresses and facsimile numbers are only accessible to unit owners if
consent to receive notice by electronic transmission is provided.
The bill provides that accounting records include:
All invoices;
Transaction receipts; or
Deposit slips that substantiate any receipt or expenditure of funds by the association.
The bill requires that the official records must be maintained in an organized manner that makes the
inspection of the records easier for the unit owner. The bill provides that in the event that the records
are lost, destroyed, or otherwise unavailable, the obligation to maintain official records includes a good
faith obligation to obtain and recreate those records to the fullest extent possible.
18 S. 718.111(12)(c)2., F.S.
19 Id.
20 Ss. 718.111(12)(b), and (g), F.S.
21 S. 718.111(12)(c), F.S.
22 S. 718.501(1)(d)7., F.S.
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Under the bill, the association must provide a checklist of the available official records for copying and
inspecting and the records that are not available when a person provides a written request to inspect
records. This checklist must be maintained for 7 years. An association delivering a checklist and
affidavit creates a rebuttable presumption that the association has complied.
The bill provides criminal penalties for the association refusing to release or destroy official records.
These include:
A second-degree misdemeanor for any director or member of the board or association to
knowingly, willfully, and “repeatedly” 23 violate any specified requirements relating to inspection
and copying of official records of an association, he or she will be deemed removed from office
and a vacancy declared.
A first-degree misdemeanor, a civil penalty, and he or she will be deemed removed from
office and a vacancy declared, for a person who:
o knowingly or intentionally defaces or destroys accounting records that were required to
be maintained for a certain period of time, or
o who knowingly or intentionally fails to create or maintain accounting records with the
intent of causing harm to the association or one or more of its members.
A third-degree felony for willfully and knowingly refusing to release or otherwise produce
association records with the intent to avoid or escape detection, arrest, trial, or punishment for
the commission of a crime, or to assist another person with such avoidance or escape, and he
or she will be deemed removed from office and a vacancy declared.
The bill makes conforming changes.
The bill requires the Division to provide the official records to the unit owner at no charge when the
association has failed to or refused to respond to a unit owner’s record requests.
Association Meetings- Current Situation
Meetings of the board of administration at which a quorum of the members is present are open to all
unit owners. The right to attend such meetings includes the right to speak at such meetings with
reference to all designated agenda items. The Division shall adopt reasonable rules governing the tape
recording and videotaping of the meeting. The association may adopt written reasonable rules
governing the frequency, duration, and manner of unit owner statements. Adequate notice of all board
meetings, which must specifically identify all agenda items, must be posted conspicuously on the
condominium property at least 48 continuous hours before the meeting except in an emergency. 24
Association Meetings- Effect of the Bill
Under the bill, the board of a residential condominium association of more than 10 units, the board
must meet at least four times each year for the purpose of responding to inquiries from members and
informing members on the state of the condominium, including:
The status of construction or repair projects;
The status of the association's revenue and expenditures during the fiscal year; or
Other issues affecting the association.
The bill provides that if an agenda item relates to the approval of a contract for goods or services, a
copy of the contract must be provided with the notice of the meeting, and made available for inspection
and copying upon a written request from a unit owner, or made available on the association’s website
or through an application that can be downloaded on a mobile device.
Powers and Duties of Officers and Directors- Current Situation
23 In the bill, “repeatedly” means two or more violations within a 12-month period.
24 S. 718.112(2)(c), F.S.
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Breaches of a Fiduciary Duty and Prohibited Acts
Officers and directors of a condominium association have a fiduciary relationship to the unit owners,
and may be sanctioned for breach of their fiduciary duty. “An officer [or director] may be liable to the
association members for breaches of trust, fraud, negligence, 25 and he or she may be subject to
removal from office and other civil penalties imposed by the Division of Florida Condominiums,
Timeshares, and Mobile Homes for a willful and knowing violation of Condominium Act or a rule of the
Division.26”27
An officer, director, or agent is liable for monetary damages as provided in s. 617.0834, F.S., if such
officer, director, or agent breaches or fails to perform his or her duties. The breach of, or failure to
perform, such duties constitutes:
A violation of criminal law as provided in s. 617.0834, F.S.;
A transaction from which the officer or director derived an improper personal benefit, either directly
or indirectly; or
Recklessness 28 or an act or omission that was in bad faith, with malicious purpose, or in a manner
exhibiting wanton and willful disregard of human rights, safety, or property.
An officer, director, or manager may not solicit, offer to accept, or accept anything or service of value or
a kickback for which consideration has not been provided for the benefit of such person or immediate
family members from any person providing or proposing to provide goods or services to the
association.29
Any such officer, director, or manager who knowingly solicits, offers to accept, or accepts anything or
service of value or kickback is subject to a civil penalty pursuant to s. 718.501(1)(d), F.S., and, if
applicable, a criminal penalty as provided in s. 718.111(1)(d), F.S.
Moreover, any person who knowingly or intentionally defaces or destroys accounting records that are
required to be maintained during the period for which such records are required to be maintained, or
who knowingly or intentionally fails to create or maintain accounting records that are required to be
created or maintained, with the intent of causing harm to the association or one or more of its members,
is personally subject to a civil penalty.30
Criminal Penalties
A directors and officers are subject to criminal penalties for the following:
A third-degree felony for forgery of a ballot envelope or voting certificate used in a condominium
association election; and31
Theft or embezzlement of funds of a condominium association is punishable as provided in s.
812.014, F.S.
Removal from Office
A director or officer charged with a felony theft or embezzlement offense involving the association's
funds or property must be removed from office, creating a vacancy in the office to be filled according to
law until the end of the period of the suspension or the end of the director's term of office, whichever
occurs first. While such director or officer has such criminal charge pending, he or she may not be
25 S. 718.111(1)(d), F.S.
26 Id.
27 Peter M. Dunbar, The Condominium Concept, Pineapple Press (2022), p. 94.
28 Section 617.0834(2)(a), F.S. defines “recklessness” as the acting, or omission to act, in conscious disregard of a risk:
Known, or so obvious that it should have been known, to the officer or director; and
Known to the officer or director, or so obvious that it should have been known, to be so great as to make it highly
probable that harm would follow from such action or omission.
29 S. 718.111(1)(a), F.S.
30 S. 718.111(12)(c)2., F.S., see also, s. 718.501(1), F.S.
31 S. 718.111(1)(d), F.S.
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appointed or elected to a position as a director or officer. However, if the charges are resolved without a
finding of guilt, the director or officer will be reinstated for the remainder of his or her term of office, if
applicable. 32
Directors or officers charged with forgery of a ballot envelope or voting certificate, theft or
embezzlement of association funds, and destruction of or refusal to allow inspection or copying of
association records must be removed from office, and the vacancy33 must be filled until the end of the
officer’s or director’s period of suspension or the end of his or her term of office, whichever occurs first.
If a criminal charge is pending against the officer or director, he or she may not be appointed or elected
to a position as an officer or a director of any association and may not have access to the official
records of any association, except pursuant to a court order. However, if the charges are resolved
without a finding of guilt, the officer or director must be reinstated for the remainder of his or her term of
office, if applicable.
Debit Card Usage
An association and its officers, directors, employees, and agents may not use a debit card issued in the
name of the association, or billed directly to the association, for the payment of any association
expense.34 Use of a debit card issued in the name of the association, or billed directly to the
association, for any expense that is not a lawful obligation of the association may be prosecuted as
credit card fraud.35
Officers and Directors- Effect of the Bill
Criminal Penalties
In addition to current requirements, the bill provides that an association officer, director, or CAM that
accepts a kickback:
Commits a third-degree felony, and
Is deemed removed from office and a vacancy declared.
The bill provides that each of the following actions relating to condominium association elections is a
fraudulent voting activity and constitutes a misdemeanor of the first degree:
Willfully and falsely swearing to or affirming an oath or affirmation, or willfully procuring another
person to falsely swear to or affirm an oath or affirmation, in connection with or arising out of voting
activities.
Perpetrating or attempting to perpetrate, or aiding in the perpetration of, fraud in connection with a
vote cast, to be cast, or attempted to be cast.
Preventing a member from voting, or preventing a member from voting as he or she intended, by
fraudulently changing or attempting to change a ballot, ballot envelope, vote, or voting certificate of
the member.
Menacing, threatening, or using bribery or any other corruption to attempt, directly or indirectly, to
influence, deceive, or deter a member when voting.
Giving or promising, directly or indirectly, anything of value to another member with the intent to
buy the vote of that member or another member or to corruptly influence that member or another
member in casting his or her vote. This provision does not apply to any food served which is to be
consumed at an election rally or a meeting or to any item of nominal value which is us ed as an
election advertisement, including a campaign message designed to be worn by a member.
32 S. 718.112(2)(q), F.S.
33 Unless the bylaws provide
otherwise, a vacancy on the board caused by the expiration of a director's term must be filled
by electing a new board member, and the election must be by secret ballot. An election is not required if the number of
vacancies equals or exceeds the number of candidates. See s. 718.112(2)(d)2., F.S.
34 S. 718.111(15)(a), F.S.
35 S. 718.111(15)(b), F.S.
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Using or threatening to use, either directly or indirectly, force, violence, or intimidation or any tactic
of coercion or intimidation to induce or compel a member to vote or refrain from voting in an
election or on any particular ballot measure.
In addition, the bill provides that the following actions relating to condominium association elections are
fraudulent voting activities and constitute a misdemeanor of the first degree:
Knowingly aiding, abetting, or advising a person in the commission of a fraudulent voting activity
related to association elections.
Agreeing, conspiring, combining, or confederating with at least one other person to commit a
fraudulent voting activity related to association elections.
Having knowledge of a fraudulent voting activity related to association elections and giving any aid
to the offender with intent that the offender avoid or escape detection, arrest, trial, or punishment.
This does not apply to a licensed attorney giving legal advice to a client.
Removal from Office
The bill expands the criminal offenses for which an officer or director charged by information or
indictment must be removed from office to include:
Forgery of a ballot envelope or voting certificate used in a condominium association election
punishable as a felony crime as provided in s. 831.01, F.S.; and
Destruction of or refusal to allow inspection or copying of an official record of a condominium
association that is accessible to unit owners within the time periods required by general law in
furtherance of any crime which is punishable as tampering with physical evidence as provided in s.
918.13, F.S., or as obstruction of justice as provided in ch. 843, F.S.
Under the bill, if a criminal charge is pending against an officer or director, he or she may not have
access to the official records of any association, except pursuant to a court order.
Debit Card Usage
The bill provides that a person using a debit card that is issued to the association or billed the
association for any expense that is not a lawful obligation of the association:
Commits theft under s. 812.014, F.S, instead of being prosecuted as credit card fraud, and
Shall be deemed removed from office and a vacancy declared.
The bill defines “lawful obligation of the association” as an obligation that has been properly
preapproved by the board and is reflected in the meeting minutes or the written budget.
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Director Education- Current Situation
Newly elected or appointed directors of the board of a residential condominium association are required
to complete an educational curriculum or written certification. Within 90 days after being elected or
appointed, a newly elected or appointed director for a condominium must certify that he or she:36
Has read the declaration of condominium for all condominiums operated by the association and
the declaration of condominium, articles of incorporation, bylaws, and current written policies;
Will work to uphold such documents and policies to the best of his or her ability; and
Will faithfully discharge his or her fiduciary responsibility to the association’s members.
As an alternative to a written certification, the newly elected or appointed director may submit a
certificate of satisfactory completion of the educational curriculum within one year before the election or
90 days after the election or appointment.37 The curriculum must be administered by a condominium
education provider approved by the Division.38 A certification is valid and does not have to be
resubmitted as long as the director continuously serves on the board. The association is required to
retain the educational certificates of the directors for 5 years.
A board member is suspended from service on the board until he or she files the written certification or
submits a certificate of completion of the educational curriculum. 39 If a suspension occurs, the board
may temporarily fill the vacancy during the period of suspension. The secretary of the association must
keep the written certification or educational certificate for inspection by the members for five years after
a board director’s election or the duration of the director’s uninterrupted tenure, whichever is longer.40
The validity of any action by the condominium board is not affected by the association’s failure to have
the certification on file.41
Director Education- Effect of the Bill
The bill provides that:
An existing director and a newly elected or an appointed director is required to submit both the
writing certification and a certificate of completing the educational curriculum.
Such educational curriculum may also be administered by the Division.
Requires 4 hours of instruction for the initial education and the renewal of the education certificate.
Such instruction to include milestone inspections, structural integrity reserve studies,
recordkeeping, financial literacy and transparency, levying fines, and notice and meeting
requirements.
A director of a residential condominium that was elected or appointed before July 1, 2024 must
comply with the written certification and educational certificate requirement by June 2025.
The written certification and educational certificate are valid for 7 years after the date of
issuance and does not have to be resubmitted as long as the director serves on the board without
interruption during a 7-year period.
A director who is appointed by the developer may satisfy the educational certificate requirement for
any subsequent appointment to a board by a developer within 7 years after the date of issuance of
the most recent educational certificate, including any interruption of service on a board or
appointment to a board in another association within that 7-year period.
After the certificates are submitted, directors are required to annually submit to the secretary of the
association a certificate of having satisfactorily completed a one-hour of continuing education
administered by the Division, or Division-approved condominium education provider, relating to
any recent changes.
36 S. 718.112(2)(d)4.b., F.S.
37 The Division’s Internet site provides a listing of approved educational providers for the certification of board members.
See Department of Business and Professional Regulation, Condominium & Cooperatives – Education, available at:
http://www.myfloridalicense.com/DBPR/condominiums-and-cooperatives/education/ (last visited Jan. 30, 2024).
38 S. 718.112(2)(d)4.b., F.S.
39 Id.
40 Id.
41 Id.
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The association is required to retain the educational certificates of the directors for 7 years,
instead of 5 years.
Conflicts of Interest for Directors and Officers- Current Situation
An officer or director of an association, and their relatives, must disclose to the board any activity that
may be construed as a conflict of interest. A rebuttable presumption of a conflict of interest exists if,
without prior notice:42
Any director, officer, or relative43 of a director or officer enters into a contract for goods or
services with the association; or
Any director, officer, or relative holds an interest in a corporation, limited liability corporation,
partnership, limited liability partnership, or other business entity that conducts business with the
association or proposes to enter into a contract with the association.
Timeshare condominiums are exempted from this provision. 44
If a director, officer, or relative of a director or officer proposes to engage in an activity that is a conflict
of interest, the proposed activity must be listed on the meeting agenda and all contracts and
transactional documents for the proposed activity must attached to the meeting agenda. The board
must provide all these documents to the unit owners as well. The interested director or officer may
attend the meeting at which the contract is considered and may make a presentation to the board
regarding the activity. After the presentation, the director, officer, or relative must leave the room. Any
director or officer who has an interest in the contract must recuse himself or herself from the vote. 45
Approval of the contract or other transaction requires an affirmative vote of two-thirds of all other
directors present.46
If the board rejects the proposed contract, the director, officer, or relative must notify the board in
writing of his or her intent not to pursue the contract further or the director or officer must withdraw from
office. If the board finds that a director or officer has not notified it of his or her intent to pursue the
contract further, the officer or director is deemed removed from office, and the vacancy must be filled
according to general law.47
Any contract entered into between any director, officer, or relative that is not properly noticed before
consideration by the board is voidable. The contract is terminated upon the filing of a written notice
terminating the contract with the board of directors which contains the consent of at least 20 percent of
the voting interests of the association.48
Conflicts of Interest for Directors and Officers- Effect of the Bill
The bill provides that the attendance of a director or an officer with a possible conflict of interest at the
meeting of the board counts for purposes of quorum for the meeting. However, the vote on such
matters containing a possible conflict of interest must occur in his or her absence on the proposed
activity.
42 S. 718.3027(1), F.S.
43 “Relative”means in s. 718.3027, F.S. a relative within the third degree of consanguinity by blood or marriage.
44 S. 718.3027(5), F.S.
45 S. 718.3027(4), F.S.
46 S. 718.3027(2), F.S.
47 S. 718.3027(3), F.S.
48 S. 718.3027(5), F.S.
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Condominium Fines and Suspensions- Current Situation
Condominium associations may levy fines against or suspend the right of an owner, occupant, or an
owner or occupant’s guest, to use the common elements for failing to comply with any
provision in the association’s declaration, bylaws, or rules. 49
A board may not impose a fine or suspension without giving at least 14 days’ written notice of the fine
or suspension and the opportunity for a hearing. The hearing must be held before a committee of unit
or parcel owners who are not board members or residing in a board member’s household. The role of
the committee is to determine whether to confirm or reject the fine or suspension. 50
If the proposed fine or suspension is approved by the committee, the fine payment is due 5 days after
notice of the approved fine is provided to the unit owner and, if applicable, to any tenant, licensee, or
invitee of the unit owner. The association must provide written notice of such fine or suspension by mail
or hand delivery to the unit owner and, if applicable, to any tenant, licensee, or invitee of the unit
owner.51
An association may suspend the voting rights of a unit owner or member due to nonpayment of any fee,
fine, or other monetary obligation due to the association which is more than $1,000 and more than 90
days delinquent. Proof of such obligation must be provided to the unit owner or member 30 days before
such suspension takes effect. The suspension ends when the full payment of all past due obligations
currently due the association are paid.52
Condominium Fines and Suspensions- Effect of the Bill
The bill provides that at least 90 days before an election, an association must notify a unit owner or
member that his or her voting rights may be suspended due to a nonpayment of any fee, or monetary
obligation.
Structural Integrity Reserve Study and Reserves – Current Situation
A reserve study is a budget-planning tool for community associations. Generally, a reserve study
consists of the following two parts: physical analysis and financial analysis.53
In Florida law, "structural integrity reserve study" (SIRS) means a study of the reserve funds required
for future major repairs and replacement of the common areas based on a visual inspection of the
common areas. A SIRS may be performed by any person qualified to perform such study. However, the
visual inspection portion of the SIRS must be performed by a:54
Licensed engineer,
Licensed architect, or
person certified as a reserve specialist or professional reserve analyst by the Community
Associations Institute or the Association of Professional Reserve Analysts (CAIAPRA).
49 S. 718.303(3) F.S.
50 S. 718.303(3)(b), F.S.
51 Id.
52 S. 718.303(4), F.S.
53 Cedar Management Group, HOA Reserve Study: Why Does Your Community Need It?,
https://cedarmanagementgroup.com/hoa -reserve-study-community/#what (last visited Jab. 29, 2024); Kevin Leonard and
Robert Nordlund, Understanding Reserves: A guide to your association’s reserve fund & reserve study, 26-29 (1st ed.
2021); Community Associations Institute, National Reserve Study Standards, https://www.reservestudy.com/wp-
content/uploads/2019/01/NRSS-998-CAI-version-updated-2016. pdf (last visited Jan. 29, 2024).
54 S. 718.112(2)(g)2., F.S.
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At a minimum, a SIRS must:55
Identify each item of the condominium property being visually inspected,
State the estimated remaining useful life and the estimated replacement cost or deferred
maintenance expense of each item of the condominium property being visually inspected, and
Provide a reserve funding schedule with a recommended annual reserve amount that achieves
the estimated replacement cost or deferred maintenance expense of each item of condominium
property being visually inspected by the end of the estimated remaining useful life of the item.
The SIRS may recommend for any item for which an estimate of useful life and an estimate of
replacement cost cannot be determined or with an estimated remaining useful life of greater than 25
years:56
That reserves do not need to be maintained, or
A deferred maintenance expense amount for such item.
A condominium or cooperative must have a SIRS completed at least every 10 years after the
condominium's or cooperative’s creation for each building on the condominium or cooperative property
that is three stories or higher in height which includes, at a minimum, a study of the following items as
related to the structural integrity and safety of the building (SIRS items): 57
Roof.
Structure, including load-bearing walls and other primary structural members and primary
structural systems.
Fireproofing and fire protection systems.
Plumbing.
Electrical systems.
Waterproofing and exterior painting.
Windows and exterior doors.
Any other item that has a deferred maintenance expense or replacement cost that exceeds
$10,000 and the failure to replace or maintain such item negatively affects the items listed
above as determined by the licensed engineer or architect performing the visual inspection
portion of the structural integrity reserve study.
The SIRS requirements do not apply to:58
Buildings less than three stories in height;
Single-family, two-family, or three-family dwellings with three or fewer habitable stories above
ground;
Any portion or component of a building that has not been submitted to the condominium form of
ownership; or
Any portion or component of a building that is maintained by a party other than the association.
Condominium or cooperative associations existing on or before July 1, 2022, which are controlled by
unit owners other than the developer, must have a SIRS completed by December 31, 2024, for each
building on the condominium or cooperative property that is three stories or higher in height. However,
an association that is required to complete a milestone inspection on or before December 31, 2026,
may complete the SIRS simultaneously with the milestone inspection. In no event may the SIRS be
completed after December 31, 2026.59
If a condominium or cooperative association willfully and knowingly fails to complete a SIRS, such
failure is a breach of an officer's and director's fiduciary relationship to the unit owners. 60
55 S. 718.112(2)(g)3., F.S.
56 Id.
57 S. 718.112(2)(g)1., F.S.
58 S. 718.112(2)(g)4., F.S.
59 S. 718.112(2)(g)6., F.S.
60 S. 718.112(2)(g)8., F.S.
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Before a developer turns over control of an association to unit owners other than the developer, the
developer must have a turnover inspection report for each building on the condominium or cooperative
property that is three stories or higher in height.61
Reserves
Every condominium and cooperative association must have a budget that sets forth the proposed
expenditure of funds for the maintenance, management, and operation of the association. The budget
is adopted for a 12-month period reflecting an association’s fiscal year, and it must provide a detailed
listing of the estimated revenues and expenses that the association reasonably projects for the coming
fiscal year. The annual budget is made up of two parts, the part covering the regular operations of the
association and the part covering the cost for capital expenses and deferred maintenance (reserves). 62
Reserves are funds that are set aside for capital expenses and deferred maintenance. Reserves
provide funds for major capital repairs or replacements that are needed intermittently such as replacing
a roof. The reserves are designed to ensure that an association will have the funds when the repairs
are needed and will not have to do a large special assessment. 63
The amount of funds that must be placed in reserve is determined by the condominium or cooperative
association’s most recent structural integrity reserve study. If the amount to be reserved for an item is
not in the association’s most recent structural integrity reserve study or the association has not
completed a structural integrity reserve study, then the association may use the traditional formula or
alternative formula to determine the amount of funds to reserve.
Current law also requires associations to have and fund reserve accounts for roof replacement, building
painting, pavement resurfacing, and any item for which the deferred maintenance expense or
replacement cost is greater than $10,000.64 There are two methods of calculating these reserves.
The first is the traditional formula, and the second is the alternative formula. The traditional formula
takes into account the estimated deferred maintenance or capital expenditure amount, estimated fund
balance, and number of years remaining until deferred maintenance or a capital expenditure is
needed.65
The alternative formula allows associations to maintain a pooled account for multiple reserve assets
that are similar or related. For example, an association responsible for managing two swimming pools
may create a pool reserve account for both pools instead of a reserve account for each pool. The
formula for a pooled account must provide for an annual contribution that will ensure the balance on
hand in the account is equal to or greater than the annual projected outflows from the account. 66
However, pooled reserves are not permitted for SIRS items listed in the statute as being required in the
SIRS are permitted to be pooled.
Waiver of Reserves
For a budget adopted on or after December 1, 2024, a unit-owner controlled association that must
obtain a structural integrity reserve study may not waive collecting reserves or collect less reserve
funds than required for items that are required to be inspected in a SIRS for an association building that
is three stories or higher in height. In addition, unit-owner controlled associations may not use such
reserve funds for purposes other than their intended purpose. Associations operating a
61 S. 718.112(2)(g)5., F.S.
62 S. 718.112(2)(f), F.S.
63 S. 718.112(2)(f), F.S.
64 Id.
65 Id.; Rules 61B-22.005(3), and 61B-76.005(1), F.A.C.
66 Rules 61B-22.005(1), (3), and 61B-76.005(1), (3), F.A.C.
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multicondominium to provide no reserves or less reserves than required by the SIRS if such
multicondominium uses an alternative funding method67 approved by the Division.
For other reserve items, associations may waive funding reserves for capital expenditures and deferred
maintenance or provide funds that are less than the required amount by a majority of the voting
interests present at a properly called meeting. The waiver of reserves by the membership is only for the
current year, and a separate vote must be taken each year to waive the reserves or fund less than the
required amount.68 Associations may also vote to use reserve funds for purposes other than their
intended purpose, such as using funds from the roof reserve account for painting buildings, by a
majority of the voting interests present at a properly called meeting. 69
Structural Integrity Reserve Study and Reserves – Effect of the Bill
Structural Integrity Reserve Study (Condominiums and Cooperatives)
The bill provides that the association is required within 45 days after the receipt of a SIRS to:
Distribute a copy of the SIRS to each unit owner; or
Deliver to each unit owner a notice that the completed study is available for inspection and
copying upon a written request.
The bill provides the manner in which the copy or the notice may be distributed. Distribution of a copy of
the study or notice must be made by:
United States mail or personal delivery to the mailing address, property address, or any other
address of the owner provided to fulfill the association's notice requirements or,
By electronic transmission to the e-mail address or facsimile number on file.
The bill requires that the SIRS be included in the turnover inspection report that is delivered to the
association once the developer turns over control of the association.
Reserves
The bill provides that:
The board, upon the approval of a majority of its members, may pause its contributions to its
reserves or reduce reserve funding if the local building official70 determines that the entire
condominium building is uninhabitable due to a natural emergency until the local building official
determines that such building is habitable.71
Any reserve account funds held by the association may be expended to make such building and
structures habitable, pursuant to the board determination.
The association must immediately resume contributing to its reserves once the building official
determines that the building is habitable.
67 “Alternative funding method” is defined as "a method approved by the Division for funding the capital expenditures and
deferred maintenance obligations for a multicondominium association operating at least 25 condominiums which may
reasonably be expected to fully satisfy the association's reserve funding obligations by the allocation of funds in the
annual operating budget.
68 S. 718.112(2)(f), F.S.; Rule 61B-22.005(8), F.A.C.
69 S. 718.112(2)(f), F.S.
70 See definition of building official in s. 468.603(2), F.S.
71 “Natural emergency” means an emergency caused by a natural event, including, but not limited to, a hurricane, a storm,
a flood, severe wave action, a drought, or an earthquake. S. 252.34(8), F.S.
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Financial Reporting- Current Situation
Condominium associations are required to complete an annual financial report of the previous year’s
financial activities and provide the report to unit owners. To comply with financial reporting
requirements, associations must:72
Complete an annual financial report for the previous fiscal year within 90 days after the end of
the fiscal year, calendar year, or annually on a date provided in the bylaws;
Provide unit or parcel owners the financial report or notice that the report is available upon
request without charge within 21 days after the final financial report is completed by the
condominium or received from the third party, but not later than 120 days after the end of the
fiscal year or calendar year, or other date as provided in the bylaws; and
Prepare financial statements according to generally accepted accounting principles and in a
manner dictated by the total revenue of the association, specifically:
o An association having total annual revenues between $150,000 and $300,000 must
prepare compiled financial statements;
o An association having total annual revenues between $300,000 and $500,000 must
prepare reviewed financial statements;
o An association having total revenues more than $500,000 must prepare audited financial
statements; and
o An association with total annual revenue of less than $150,000 must prepare a report of
cash receipts and expenditures.
If a unit owner does not receive the financial report, he or she may contact the Division to report an
association’s failure to provide a copy of the financial report within the required time. If the Division
determines that the association failed to provide the financial report in a timely manner, the Division
requires the association to provide the financial report to the unit owner and the Division within 5
business days. If the association fails to comply with the Division’s request, the association is prohibited
from waiving the financial annual financial reporting requirements for the fiscal year in which the unit
owner’s request is made and the following fiscal year.
An association may vote to waive the annual financial reporting requirements and prepare a report of
cash receipts and expenditures by approval of a majority of voting interests. Such meeting and
approval must occur before the end of the fiscal year and is effective only for the fiscal year in which the
vote is taken, except that the approval may also be effective for the following fiscal year.
Financial Reporting- Effect of the Bill
The bill prohibits an association from waiving the annual financial reporting requirements and preparing
a report of cash receipts and expenditures by approval of a majority of voting interests for consecutive
fiscal years.
Hurricane Protection- Current Situation
Each board of administration of a residential condominium required to adopt specifications for each
building within each condominium operated by the association which include: 73
Color;
Style; and
Other factors deemed relevant to the board.
All specifications adopted by the board must comply with the applicable building code. The board may,
subject to the bidding process for contracts for goods and services and the approval of the of a majority
of the voting interests of the residential condominium, install hurricane shutters, impact glass, code-
72 S. 718.111(13), F.S.
73 S. 718.113(5), F.S.
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complaint windows, or doors, or other types of code-complaint hurricane protection that comply or
exceed the applicable building code.74
A condominium association is responsible for the maintenance, repair, and replacement of the
hurricane shutters, impact glass, code-compliant windows or doors, or other types of code-compliant
hurricane protection if such property is the responsibility of the association pursuant to the declaration
of condominium. If the hurricane shutters, impact glass, code-compliant windows or doors, or other
types of code-compliant hurricane protection are the responsibility of the unit owners pursuant to the
declaration of condominium, the maintenance, repair, and replacement of such items are the
responsibility of the unit owner.75
The board is authorized to operate shutters, impact glass, code-compliant windows or doors, or other
types of code-compliant hurricane protection installed without the permission of the unit owners only if
such operation is necessary to preserve and protect the condominium property or and association
property.76 The installation, replacement, operation, repair, and maintenance of such shutters, impact
glass, code-compliant windows or doors, or other types of code-compliant hurricane protection are not
a material alteration to the common elements or association property. 77
Notwithstanding any other provision in the residential condominium documents, if approval is required
by the documents, a board may not refuse to approve the installation or replacement of hurricane
protection by a unit owner conforming to the specifications adopted by the board. 78
The expense of installation, replacement, operation, repair, and maintenance of hurricane shutters,
impact glass, code-compliant windows or doors, or other types of code-compliant hurricane protection
by the board constitutes a common expense and shall be collected by the association if the association
is responsible for the maintenance, repair, and replacement of the hurricane shutters, impact glass,
code-compliant windows or doors, or other types of code-compliant hurricane protection pursuant to the
declaration of condominium.79
Further, a unit owner who has previously installed code-compliant shutters, impact glass, windows, or
doors, must receive a credit when code-compliant shutters, impact glass, windows, or doors are
installed.80 A unit owner who has previously installed impact glass or code-compliant windows or doors
that comply with the current applicable building code, must receive a credit when the impact glass or
code-compliant windows or doors are installed. A unit owner who has installed other types of code-
compliant hurricane protection that comply with the currently applicable building code is entitled to
receive a credit when the same type of other code-compliant hurricane protection is installed, and the
credit must be equal to the pro rata portion of the assessed installation cost assigned to each unit.
Hurricane Protection- Effect of the Bill
The bill defines “hurricane protection” as hurricane shutters, impact glass, code-compliant windows or
doors, and other code-compliant hurricane protection products used to preserve and protect the
condominium property or association property.
74 S. 718.113(5)(a), F.S.
75 S. 718.113(5)(b), F.S.
76 S. 718.113(5)(c), F.S.
77 Section 718.110, F.S., provides the procedure for amending the declaration of condominium. It provides that, “unless
otherwise provided in the declaration as originally recorded, no amendment may change the configuration or size of any
unit in any material fashion, materially alter or modify the appurtenances to the unit, or change the proportion or
percentage by which the unit owner shares the common expenses of the condominium and owns the common surplus of
the condominium unless the record owner of the unit and all record owners of liens on the unit join in the execution of the
amendment and unless all the record owners of all other units in the same condominium approve the amendm ent.”
78 S. 718.113(5)(d), F.S.
79 S. 718.115(1)(e), F.S.
80 S. 718.115(1)(e), F.S.
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The bill clarifies the responsibilities of unit owners and associations for the costs of maintenance,
repair, and replacement of hurricane protections exterior doors, windows, and glass apertures.
The bill requires the declarations of residential condominiums and mixed-use condominiums to
describe the responsibilities of unit owners and associations for the costs of maintenance, repair, and
replacement of hurricane protections. The bill provides that the hurricane protection provisions apply to
all residential and mixed-use condominiums in Florida, regardless of when the condominium is
created pursuant to the declaration.
The bill provides that the installation, maintenance, repair, replacement, and operation of hurricane
protection in accordance with the hurricane protection requirements is not considered a material
alteration or substantial addition to the common elements or association property.
A vote of the unit owners to require the installation of hurricane protection must be set forth in a
certificate attesting to such vote and include the date that the hurricane protection must be installed.
The certificate must:
Be recorded in the public records of the county where the condominium is located.
Include the recording data identifying the declaration of the condominium and must be executed
in the form required for the execution of a deed.
Once the certificate is recorded, the board must mail or hand-deliver a copy of the recorded certificate
to the unit owners at the owners’ address as reflected in the records of the association. The board may
provide a copy of the recorded certificate by electronic transmission to unit owners who previously
consented to receive notice by electronic transmission. The board’s failure to record the certificate or to
send a copy of the recorded certificate to the unit owners does not affect the validity or enforceability of
the vote of the unit owners.
The bill provides that if hurricane protection that complies with or exceeds the current applicable
building code has been previously installed, the board may not install the same type of hurricane
protection or require that unit owners install the same type of hurricane protection unless the
unit owners installed hurricane protection has reached the end of its useful life or it is
necessary to prevent damage to the common elements or the unit.
The bill allows the board to require that unit owners adhere to an existing unified building scheme
regarding the external appearance of the condominium.
Regarding a unit owner’s responsibility for the costs of installation or removal of hurricane protection,
the bill provides that the unit owner is not responsible for the cost of any removal or reinstallation of
hurricane protection if:
The unit owner installed the hurricane protection and
Its removal is necessary for the maintenance, repair, or replacement of the condominium
property or association property for which the association is responsible.
If such removal or installation is completed by the association, the association may not charge that cost
to the unit owner. If such installation of removal is completed by the unit owner, the association must
reimburse the unit owner for the cost or apply the cost as a credit toward future assessments.
Under the bill, the board must determine if the removal or reinstallation of hurricane protection is the
responsibility of the unit owner, including costs, and if such removal or reinstallation is completed by the
association, then the costs incurred by the association may be charged to the unit owner. If the
association charges a unit owner for the removal or installation of hurricane protection, such charges
are enforceable as an assessment and may be collected as such.
The bill deletes the requirement that the expense of installation, replacement, operation, repair, and
maintenance of hurricane protection by the board constitutes a common expense and must be
collected as a common expense if the association is responsible for the maintenance, repair, and
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replacement of the hurricane shutters, impact glass, code-compliant windows or doors, or other types
of code-compliant hurricane protection pursuant to the declaration of condominium.
The bill deletes the requirement that a unit owner who previously installed hurricane shutters that
comply with the current applicable building codes receive a credit when the shutters are installed. The
bill provides that a unit owner who has previously installed such items must receive a credit when the
impact glass or code-compliant windows or doors are installed.
The bill provides, notwithstanding the limitation in s. 718.116(9), F.S., and regardless of what the
declaration states about the responsibility of hurricane protection, an owner of a unit in which
hurricane protection that complies with the current applicable building code has been installed is
excused from any assessment levied by the association or will receive a credit if the same type of
hurricane protection is installed by the association.
Credit is applicable if the installation of hurricane protection is for all other units that do not have
hurricane protection and the cost of such installation is funded by the association’s budget, including
the use of reserve funds.
The bill adds that the credit must be equal to the amount that the unit owner would have been assessed
to install the hurricane protection and that expenses for the installation, replacement, operation, repair,
or maintenance of hurricane protection on common elements and association property are common
expenses.
Prohibition against SLAPP Suits- Current Situation
Generally, “strategic lawsuits against public participation" (SLAPP) are legal actions brought against
individuals for speaking out on issues that are important to the public in an effort to silence or
discourage such individuals from speaking out. In the association context, a SLAPP suit may be related
to an association member’s exercise of their rights of free speech and assembly, which may be based
on their appearance and presentation before a governmental entity on matters related to the
condominium association.81
Florida has adopted anti-SLAPP laws 82 in the association context which prohibit governmental entities,
business organizations, and individuals from filing or causing to be filed:
Any lawsuit,
Cause of action,
Claim,
Cross-claim, or counterclaim against a condominium unit owner without merit, and
Solely because such condominium unit owner has exercised the right to instruct his or her
representatives or the right to petition for redress of grievances before the various governmental
entities of this state, as protected by the First Amendment to the United States Constitution and
s. 5, Art. I of the State Constitution.83
Current law does not specifically prohibit condominium associations from engaging in SLAPP suits,
instead the prohibition generally applies to governmental entities, business organizations, and
individuals.
The unit owners sued by a governmental entity, business organization, or individual have a right to an
expeditious resolution of such an action, including the right to petition for a motion to dismiss or for a
summary judgment. The court may award the unit owner actual damages for a violation of this
prohibition and may also award treble damages. However, the court must state a basis for an award of
treble damages. The court is further required to award the prevailing party reasonable attorney’s fees
81 S. 718.1224(1), F.S.
82 Florida also has general anti-SLAPP laws that prohibit suits for exercising their right to free speech and assembly. S.
768.295, F.S.
83 S. 718.1224, F.S.
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and costs. Governmental entities, business organizations, individuals, and condominium associations 84
are barred from expending funds in prosecuting a SLAPP suit against a unit owner.
Prohibition against SLAPP Suits and Other Prohibited Actions- Effect of the Bill
The bill clarifies that a condominium association cannot engage in SLAAP suits.
The bill specifically prohibits condominium associations from:
Retaliating against a unit owner, by imposing or threatening:
o A fine,
o An increase in a unit’s assessments,
o To bring or bringing an action for possession, or
o other civil action, including a defamation, libel, slander, or tortious interference action.
Spending association funds in support of defamation, libel, or tortious interference actions
against a unit owner.
The bill allows the unit owner to present evidence of retaliatory conduct as a defense in any action
brought against him or her for possession. The bill provides that a unit owner may use the defense of
retaliatory conduct if the unit owner acted in good faith and not for any improper purposes. The bill
provides that an improper purpose includes:
Harassment;
Cause unnecessary delay or for frivolous purpose; or
Needless increase in the cost of litigation.
The bill provides examples of conduct for which a condominium association, an officer, a director, or an
agent of an association are prohibited from retaliating include, but are not limited to, situations in which:
The unit owner has in good faith complained to a governmental agency charged with
responsibility for enforcement of a building, housing, or health code of a suspected violation
applicable to the condominium;
The unit owner has organized, encouraged, or participated in a unit owners' organization;
The unit owner submitted information or filed a complaint alleging criminal violations or
violations of the Condominium Act or rules of the Division, with:
o The Division;
o Office of the Condominium Ombudsman;
o A law enforcement agency;
o A state attorney;
o The Attorney General; or
o Any other governmental agency.
The unit owner has exercised his or her rights under the Condominium Act;
The unit owner has complained to the association or any of the association's representatives for
the failure to comply with the Condominium Act or Corporations Not For Profit Act; or
The unit owner has made public statements critical of the operation or management of the
association.
In addition, the bill prohibits associations from expending association funds in support of a defamation,
libel, slander, or tortious interference action against a unit owner or any other claim against a unit owner
based on such retaliatory conduct.
The Division’s Duties and Authority – Current Situation
For condominium associations, the Division has jurisdiction to investigate complaints and enforce
compliance with the Condominium Act for associations that are controlled by a developer, a bulk buyer,
or a bulk assignee. Once a developer has turned over control of the condominium to the association,
the Division only has jurisdiction to investigate complaints related to financial issues, elections, and unit
owner access to official records, and the procedural completion of structural reserve studies.85
84 S. 718.1224(4), F.S.
85 S. 718.501(1), F.S.
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If a person believes there is a violation of the Condominium Act, he or she may file a complaint with the
Division. If the complaint is within the Division’s jurisdiction, the Division assigns an investigator to the
complaint. For purposes of any investigation, the Division director or any officer or employee
designated by the Division director may:86
Administer oaths or affirmations,
Subpoena witnesses and compel their attendance,
Take evidence, and
Require the production of any matter which is relevant to the investigation, including the existence,
description, nature, custody, condition, and location of any books, documents, or other tangible
things and the identity and location of persons having knowledge of relevant facts or any other
matter reasonably calculated to lead to the discovery of material evidence.
After investigating the complaint, if the Division has reasonable cause to believe that a violation
occurred, it may initiate an enforcement proceeding in its own name as follows: 87
Enter into a voluntary consent proceeding with the person who violated the Condominium Act
where he or she consents to stopping the violation.
Issue a cease and desist order.
File an administrative complaint against the person.
File an enforcement action in circuit court to seek declaratory or injunctive relief on behalf of the
unit owners.
Remove an individual from his or her position as an officer or board member of a condominium
or cooperative.
Impose civil penalties in the amount of up to $5,000 per violation.
In order to enforce the Condominium Act, the Division may conduct investigations, take sworn
statements, receive evidence, and subpoena individuals and documentation. If the Division believes a
person has destroyed or altered association documents or impaired the availability of association
documents during an investigation, the Division must refer it to local law enforcement. 88
Annual Report
The Division is required to submit to the Governor, the President of the Senate, the Speaker of the
House of Representatives, and the chairs of the legislative appropriations committees an annual report
by September 30 following the end of the fiscal year that includes:89
The number of training programs provided for condominium association board members and
unit owners;
The number of complaints received by type;
The number and percent of complaints acknowledged in writing within 30 days;
The number and percent of investigations acted upon within 90 days;90
The number of investigations exceeding the 90-day requirement;
An evaluation of the Division's core business processes; and
Make recommendations for improvements, including statutory changes.
Alternative Dispute Resolution
There is an alternative dispute resolution process for certain disputes between unit owners and
condominium or cooperative associations. Before the institution of court litigation, a party to certain
disputes must either petition the Division for nonbinding arbitration or initiate pre-suit mediation.91
Alternative dispute resolution offers a more efficient, cost-effective option to court litigation, but
86 S. 718.501(1)(c), F.S.
87 S. 718.501(1)(d), (m), F.S.
88 S. 718.501(1)(c), F.S.
89 S. 718.501(1)(s), F.S.
90 In accordance with s. 718.501(1)(m), F.S.
91 S. 718.1255, F.S.
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alternative dispute resolution should not be used as a mechanism to encourage the filing of frivolous or
nuisance suits.92
Alternative dispute resolution is required for any disagreements between two or more parties that
involves:93
The authority of the board of directors to require an owner to take any action, or not to take any
action, involving that owner's unit or the appurtenance thereto and the authority of the board of
directors to alter or add to common areas or elements;94
The board of directors' failure to:
o Properly conduct elections;
o Give adequate notice of meetings or other actions;
o Properly conduct meetings;
o Provide access to association books and records; and
A plan of termination.
The Division does not have jurisdiction to arbitrate or mediate disputes between a unit owner and an
association that involve: 95
Title to any unit or common element;
The interpretation or enforcement of any warranty;
The levy of a fee or assessment, or the collection of an assessment levied against a party;
The eviction or other removal of a tenant from a unit;
Alleged breaches of fiduciary duty by one or more directors; or
Claims for damages to a unit based upon the alleged failure of the association to maintain the
common elements or condominium property.
Recall and election disputes in condominium, cooperative, and homeowners’ associations are not
eligible for pre-suit mediation and must be arbitrated by the Division or filed directly with a court of
competent jurisdiction.96
Arbitration is binding on the parties if all parties in arbitration agree to be bound in a writing filed in the
arbitration,97 or if a complaint for a trial de novo is not filed in a court of competent jurisdiction in which
the condominium is located within 30 days after the arbitration decision is rendered. 98
The filing fee for a petition to the Division to initiate nonbinding arbitration or pre-suit mediation is $50.99
The Division employs full-time arbitrators and may certify private attorneys to conduct mandatory
nonbinding arbitration.
Current law also encourages parties to a condominium dispute to participate in voluntary mediation
through a Citizen Dispute Settlement Center.100
The mediation of disputes in condominium and cooperative associations is regulated under s. 720.311,
F.S., which also provides for the mediation of the certain homeowners’ association disputes. An
aggrieved party in a dispute must initiate the mediation proceedings by serving a written petition for
mediation to the opposing party. The petition must identify the specific nature of the dispute and the
basis for the alleged violations. The written offer must include five certified mediators that the aggrieved
party believes to be neutral. The serving of the petition tolls the statute of limitations for the dispute. If
emergency relief is required, a temporary injunction may be sought in court before the mediation. 101
92 S. 718.1255(3)(b), F.S.
93 S. 718.1255(1)(a), F.S.
94 Id.
95 Id.
96 S. 718.1255(5), F.S.
97 S. 718.1255(4)(a), F.S.
98 S. 718.1255(4)(k), F.S.
99 S. 718.1255(4)(a), F.S.
100 S. 718.1255(2), F.S.
101 Id.
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The opposing party has 20 days to respond to the petition. If the opposing party fails to respond or
refuses to mediate, the aggrieved party may proceed to civil court. If the parties agree to mediation, the
mediator must hold the mediation within 90 days after the petition is sent to the opposing parties. The
parties share the costs of mediation except for the cost of attorney’s fees. Mediation is confidential, and
persons who are not parties to the dispute (other than attorneys or a designated representative for the
association) may not attend the mediation conference. 102
The bylaws for condominium and cooperative associations must provide for mandatory dispute
resolution.103
The Division’s Duties and Authority – Effect of the Bill
The bill adds to the Division’s jurisdiction after turnover occurs to include investigation of complaints
related to the procedural aspects of meetings; disclosure of conflicts of interests; and any written
inquiries by unit owners to the association related to the matters under the Division’s jurisdictional
authority.
Conflicts of interests under the Division’s authority include:
When a director or officer is delinquent in payment for a certain amount of time then he or she is
considered to have abandoned office, creating a vacancy in the office to be filled according to
law;
When a director or officer is charged with certain crimes and must be removed from office,
creating a vacancy in the office to be filled according to law until the end of the period or
suspension or the end of the director’s term of office, whichever occurs first.
An officer, director, or manager who accepts a kickback.
An association hiring an attorney who represents the management company of the association.
Directors and officers, and the relatives of such directors and officers have a conflict of interest
which he or she is required to disclose.
The bill clarifies the Division’s jurisdictional grant of authority for financial issues and elections by citing
specific statutes.
The bill clarifies that “financial issues” under the Division’s jurisdiction include:
Assessments;
Financial Reporting;
Commingling;
Debit cards;
Budget meetings; and
Annual budget.
The bill clarifies that “elections” under the Division’s jurisdiction include:
Quorum, voting requirements, and proxies;
Elections of board members;
Recall of board members;
Electronic voting;
Fraudulent voting activities; and
Elections that occur in accordance with the condominium association’s emergency powers .
The bill requires the Division to refer to local law enforcement authorities any person whom the Division
believes has engaged in fraud, theft, embezzlement, or other criminal activity or has cause to believe
that fraud, theft, embezzlement, or other criminal activity has occurred.
102 S. 720.311(2)(b), F.S.
103 S. 718.112(2)(k), F.S.
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The bill provides that the Division director, any officer or employee of the Division, the condominium
ombudsman, or employee of the Office of the Condominium Ombudsman,104 may attend and observe
any meeting of the board of administration or unit owner meeting, including any meeting of a
subcommittee or special committee, that is open to members of the association for the purpose of
performing the duties of the Division or the Office of the Ombudsman.
The bill requires the Division to routinely conduct random audits of condominium associations to
determine compliance with the website or application requirements for official records under s.
718.111(12)(g), F.S.
The bill requires the Division submit to the Governor, the President of the Senate, the Speaker of the
House of Representatives, and the chairs of the legislative appropriations committees and appropriate
substantive committees, a review of the website or application requirements for official records under s.
718.111(12)(g), F.S., and make recommendations regarding any additional official records of a
condominium association that should be included in the record maintenance requirement in the
provision.
The Office of the Condominium Ombudsman- Current Situation
The Office of the Condominium Ombudsman was established to be a neutral resource for unit owners,
board members, condominium associations, and others. The ombudsman is authorized to prepare and
issue reports and recommendation to the Governor, DBPR, the Division, the Advisory Council on
Condominiums, the President of the Senate, and the Speaker of the House of Representatives on any
matter or subject within the jurisdiction of the Division. 105 The Ombudsman is an attorney appointed by
the Governor who is charged with certain duties, including but not limited to:
Preparing and issuing reports and recommendations to the Governor, the Department, the
Division, the Advisory Council on Condominiums, the President of the Senate, and the Speaker
of the House of Representatives on any matter or subject within the jurisdiction of the division;
Acting as a liaison between the Division, unit owners, boards of directors, board members,
community association managers, and other affected parties;
Monitoring and reviewing procedures and disputes concerning condominium elections or
meetings, including enforcement when the Ombudsman believes election misconduct has
occurred;
Making recommendations to the Division for changes in rules and procedures for the filing,
investigation, and resolution of complaints filed by unit owners, associations, and managers;
Providing resources to assist members of boards of directors and officers of associations to
carry out their powers and duties consistent with the statutes, Division rules, and the
condominium documents governing the association;
Encouraging and facilitating voluntary meetings with and between unit owners, boards of
directors, board members, community association managers, and other affected parties when
the meetings may assist in resolving a dispute within a community association before a person
submits a dispute for a formal or administrative remedy; and
Assisting with the resolution of disputes between unit owners and the association or between
unit owners when the dispute is not within the jurisdiction of the Division to resolve. 106
The Office of the Condominium Ombudsman- Effect of the Bill
The bill provides that:
The Secretary of the Division, instead of the Governor, shall appoint the ombudsman; and
The ombudsman does not have to be an attorney.
B. SECTION DIRECTORY:
Section 1: Amends s. 468.4334, F.S., relating to professional practice standards.
104 Ss. 718.5011-718.5014, F.S
105 S. 718.5012(3),F.S.
106 S. 718.5012, F.S.
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Section 2: Creates s. 468.4335, F.S., relating to conflicts of interest.
Section 3: Amends s. 468.436, F.S., relating to disciplinary proceedings.
Section 4: Amends s. 718.103, F.S., relating to definitions.
Section 5: Amends s. 718.104, F.S., relating to the hurricane protection.
Section 6: Amends s. 718.111, F.S., relating to the association.
Section 7: Amends s. 718.111, F.S., relating to the association, effective January 1, 2026.
Section 8: Amends s. 718.112, F.S., relating to bylaws.
Section 9: Amends s. 718.113, F.S., relating to hurricane protection.
Section 10: Amends s. 718.115, F.S., relating to common expenses and common surplus.
Section 11: Amends s. 718.121, F.S., relating to liens.
Section 12: Amends s. 718.1224, F.S., relating to SLAPP suits.
Section 13: Amends s. 718.301, F.S., relating to transfer of association control.
Section 14: Amends s. 718.3027, F.S., relating to conflicts of interest.
Section 15: Amends s. 718.303, F.S., relating to obligations of owners and occupants.
Section 16: Amends s. 718.501, F.S., relating to authority and duties of the Division.
Section 17: Amends s. 718.5011, F.S., relating to the appointment of the ombudsman.
Section 18: Amends s. 719.106, F.S., relating to bylaws; cooperative ownership.
Section 19: Amends s. 719.301, F.S., relating to transfer of association control.
Section 20: Provides that the Division is required to submit a report.
Section 21: Provides appropriations.
Section 22: Provides effective dates.
II. FISCAL ANALYSIS & ECONOMIC IMPACT STATEMENT
A. FISCAL IMPACT ON STATE GOVERNMENT:
1. Revenues:
None.
2. Expenditures:
For the 2024-2025 fiscal year, the bill appropriates $6.1 million in recurring and $1.3 million in
nonrecurring from the General Revenue Fund and 65 positions for the purpose of implementing the
act.
B. FISCAL IMPACT ON LOCAL GOVERNMENTS:
1. Revenues:
None.
2. Expenditures:
None.
C. DIRECT ECONOMIC IMPACT ON PRIVATE SECTOR:
The condominium association may have to employ additional staff to make certain records available on
a website or mobile device application, as well as carrying out other provisions in the bill.
D. FISCAL COMMENTS:
None.
III. COMMENTS
A. CONSTITUTIONAL ISSUES:
1. Applicability of Municipality/County Mandates Provision:
None.
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2. Other:
None.
B. RULE-MAKING AUTHORITY:
The Division may create a Division-approved education curriculum. The Division may have to generate
rules regarding additional duties and enforcement provided in the bill.
C. DRAFTING ISSUES OR OTHER COMMENTS:
None.
IV. AMENDMENTS/COMMITTEE SUBSTITUTE CHANGES
On February 1, 2024, the Regulatory Reform & Economic Development Subcommittee adopted a strike-all
amendment and reported the bill favorably as a committee substitute. The committee substitute:
Clarifies that community association managers and firms may retain records for up to 20 days after
their contract is terminated in order to complete an ending financial statement or report.
Provides that maintenance of official records includes a good faith obligation to recover records as
may be reasonably possible in the event records are lost, destroyed, or otherwise unavailable.
Provides that a condominium association may satisfy a request for access to records by making the
records available for download on the association website or through an application on a mobile
device.
Removes the requirement that the checklist made in response to a records request be accompanied
by a sworn affidavit.
Provides a first-degree misdemeanor for knowingly or intentionally defacing or destroying required
accounting records or knowingly and intentionally failing to create or maintain required accounting
records, with the intent of causing harm to the association or one or more of its members.
Provides that officers and directors charged with a specified criminal violation are deemed removed
from office and a vacancy declared.
Requires that meetings of the board must be once each quarter instead of four times a year.
Removes the requirement that a special assessment must be recorded in the public record.
Changes the retention period for a director’s educational certificate to 7 years, instead of 5 years.
Revises educational curriculum to:
o Require 4 hours of instruction for the initial education and the renewal of the education
certificate.
o Requires such instruction to include milestone inspections, structural integrity reserve studies,
recordkeeping, financial literacy and transparency, levying fines, and notice and meeting
requirements.
o Require a director to annually complete one hour of continuing education regarding the recent
changes in the past year.
Clarifies that a board may stop contributing to the reserves if there is a determination that the building is
uninhabitable due to a natural emergency.
Requires reserve contributions to immediately resume when the building is determined to be habitable.
Removes provisions related to allowing the association to use a line of credit.
Clarifies jurisdiction of the Division after turnover occurs includes investigation of complaints alleging
violations of the Condominium Act and other relevant rules or orders.
Provides that the Secretary, instead of the Governor, must appoint the ombudsman and that the
ombudsman does not have to be an attorney.
On February 13, 2024, the State Administration & Technology Appropriations Subcommittee adopted two
amendments and reported the bill favorably as a committee substitute. The amendments:
Add to the Division’s jurisdiction after turnover occurs to include investigation of complaints related to
the procedural aspects of meetings; disclosure of conflicts of interests; and any written inquiries by unit
owners to the association related to the matters under the Division’s jurisdictional authority.
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Clarifies the Division’s jurisdictional grant of authority for financial issues and elections by citing specific
statutes.
Provides appropriations and staff.
This analysis is drafted to the committee substitute as passed by the State Administration & Technology
Appropriations Subcommittee.
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F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
CS/CS/HB 1021 2024
1 A bill to be entitled
2 An act relating to community associations; amending s.
3 468.4334, F.S.; requiring community association
4 managers and community association management firms to
5 return official records of an association within a
6 specified time after termination of a contract;
7 requiring notices of termination of certain
8 contractual agreements to be sent in a specified
9 manner; authorizing community association managers and
10 community association management firms to retain, for
11 a specified timeframe, records necessary to complete
12 an ending financial statement or report; relieving
13 community association managers and community
14 association management firms from certain
15 responsibilities and liability under certain
16 circumstances; providing a rebuttable presumption
17 regarding noncompliance; providing penalties for the
18 failure to timely return official records; creating s.
19 468.4335, F.S.; requiring community association
20 managers and community association management firms to
21 disclose certain conflicts of interest to the
22 association's board; providing a rebuttable
23 presumption as to the existence of a conflict;
24 requiring an association to solicit and consider
25 multiple bids for goods or services under certain
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26 circumstances; providing requirements for an
27 association to approve any activity that is a conflict
28 of interest; authorizing certain contracts to be
29 canceled, subject to certain requirements; specifying
30 liability and nonliability of the association upon
31 cancellation of such a contract; authorizing an
32 association to cancel a contract if certain conflicts
33 were not disclosed; specifying liability and
34 nonliability of the association upon cancellation of a
35 contract; defining the term "relative"; reenacting and
36 amending s. 468.436, F.S.; revising the list of
37 grounds for which the Department of Business and
38 Professional Regulation may take disciplinary actions
39 against community association managers or community
40 association firms; amending s. 718.103, F.S.; defining
41 the term "hurricane protection"; amending s. 718.104,
42 F.S.; requiring declarations to specify the entity
43 responsible for the installation, maintenance, repair,
44 or replacement of hurricane protection; amending s.
45 718.111, F.S.; providing criminal penalties for any
46 officer, director, or manager of an association who
47 unlawfully solicits, offers to accept, or accepts any
48 thing or service of value or kickback; requiring such
49 officers, directors, or managers to be removed from
50 office and a vacancy declared; revising the list of
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51 records that constitute the official records of an
52 association; revising maintenance requirements for
53 official records; revising requirements regarding
54 requests to inspect or copy association records;
55 requiring an association to provide a checklist in
56 response to certain records requests; providing a
57 rebuttable presumption and criminal penalties;
58 requiring certain persons to be removed from office
59 and a vacancy declared under certain circumstances;
60 defining the term "repeatedly"; requiring copies of
61 certain building permits be posted on an association's
62 website or application; modifying the method of
63 delivery of certain financial reports to unit owners;
64 revising circumstances under which an association may
65 prepare certain reports; revising criminal penalties
66 for persons who unlawfully use a debit card issued in
67 the name of an association; requiring certain persons
68 to be removed from office and a vacancy declared under
69 certain circumstances; defining the term "lawful
70 obligation of the association"; revising the threshold
71 for associations that must post certain documents on
72 its website or through an application; amending s.
73 718.112, F.S.; requiring the boards of certain
74 associations to meet at least once every quarter;
75 revising requirements regarding notice of such
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76 meetings; requiring a director to complete an
77 educational requirement within a specified time period
78 before or after election or appointment to the board;
79 providing requirements for the educational curriculum;
80 providing transitional provisions; requiring a
81 director to complete a certain amount of continuing
82 education each year relating to changes in the law;
83 requiring the secretary of the association to maintain
84 certain information for inspection for a specified
85 number of years; authorizing members of an association
86 to pause the contribution to reserves or reduce
87 reserves under certain circumstances and for a limited
88 time; authorizing the board to expend reserve account
89 funds to make the condominium building and structures
90 habitable; requiring an association to distribute or
91 deliver copies of a structural integrity reserve study
92 to unit owners within a specified timeframe;
93 specifying the manner of distribution or delivery;
94 revising the circumstances under which a director or
95 an officer must be removed from office after being
96 charged by information or indictment of certain
97 crimes; prohibiting such officers and directors with
98 pending criminal charges from accessing the official
99 records of any association; providing an exception;
100 providing criminal penalties for certain fraudulent
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101 voting activities relating to association elections;
102 amending s. 718.113, F.S.; providing applicability;
103 specifying that certain actions are not material
104 alterations or substantial additions; authorizing the
105 boards of residential and mixed-use condominiums to
106 install or require unit owners to install hurricane
107 protection; requiring a vote of the unit owners for
108 the installation of hurricane protection; requiring
109 that such vote be attested to in a certificate and
110 recorded in certain public records; requiring the
111 board to provide, in various manners, to the unit
112 owners a copy of the recorded certificate; providing
113 that the validity or enforceability of a vote is not
114 affected if the board fails to take certain actions;
115 providing that a vote of the unit owners is not
116 required under certain circumstances; prohibiting
117 installation of the same type of hurricane protection
118 previously installed; providing exceptions;
119 prohibiting the boards of residential and mixed-use
120 condominiums from refusing to approve certain
121 hurricane protections; authorizing the board to
122 require owners to adhere to certain guidelines
123 regarding the external appearance of a condominium;
124 revising responsibility for the cost of the removal or
125 reinstallation of hurricane protection, including
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126 exterior windows, doors, or apertures; prohibiting the
127 association from charging certain expenses to unit
128 owners; requiring reimbursement or a credit toward
129 future assessments to the unit owner in certain
130 circumstances; authorizing the association to collect
131 certain charges and specifying that such charges are
132 enforceable as assessments under certain
133 circumstances; amending s. 718.115, F.S.; specifying
134 when the cost of installation of hurricane protection
135 is not a common expense; authorizing certain expenses
136 to be enforceable as assessments; requiring certain
137 unit owners to be excused from certain assessments or
138 to receive a credit for hurricane protection that has
139 been installed; providing credit applicability under
140 certain circumstances; providing for the amount of
141 credit that a unit owner must receive; specifying that
142 certain expenses are common expenses; amending s.
143 718.121, F.S.; conforming a cross-reference; amending
144 s. 718.1224, F.S.; revising legislative findings and
145 intent; revising the definition of the term
146 "governmental entity"; prohibiting an association from
147 filing strategic lawsuits, taking certain actions
148 against unit owners, and expending funds to support
149 certain actions; amending s. 718.301, F.S.; requiring
150 developers to deliver a structural integrity reserve
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151 report to an association upon relinquishing control of
152 the association; amending s. 718.3027, F.S.; revising
153 requirements regarding attendance at a board meeting
154 in the event of a conflict of interest; modifying
155 circumstances under which a contract may be voided;
156 amending s. 718.303, F.S.; requiring an association to
157 provide certain notice to a unit owner by a specified
158 time before an election; amending s. 718.501, F.S.;
159 revising circumstances under which the Division of
160 Florida Condominiums, Timeshares, and Mobile Homes has
161 jurisdiction to investigate and enforce complaints
162 relating to certain matters; requiring that the
163 division provide official records, without charge, to
164 a unit owner denied access; requiring the division to
165 provide an educational curriculum free of charge and
166 issue a certificate to directors of a board of
167 administration; requiring that the division refer
168 suspected criminal acts to the appropriate law
169 enforcement authority; authorizing certain division
170 officials to attend association meetings; requiring
171 that the division conduct random audits of
172 associations for specified purposes; requiring an
173 association's annual fee be filed concurrently with
174 the annual certification; specifying requirements for
175 the annual certification; amending s. 718.5011, F.S.;
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176 providing that the secretary of the Department of
177 Business and Professional Regulation, rather than the
178 Governor, appoints the condominium ombudsman; amending
179 s. 719.106, F.S.; requiring an association to
180 distribute or deliver copies of a structural integrity
181 reserve study to unit owners within a specified
182 timeframe; specifying the manner of distribution or
183 delivery; amending s. 719.301, F.S.; requiring
184 developers to deliver a structural integrity reserve
185 study to a cooperative association upon relinquishing
186 control of association property; requiring the
187 division to conduct a review of statutory requirements
188 regarding posting of official records on a condominium
189 association's website or application; requiring the
190 division to submit its findings, including any
191 recommendations, to the Governor and the Legislature
192 by a specified date; providing appropriations;
193 providing effective dates.
194
195 Be It Enacted by the Legislature of the State of Florida:
196
197 Section 1. Subsection (3) is added to section 468.4334,
198 Florida Statutes, to read:
199 468.4334 Professional practice standards; liability. —
200 (3) A community association manager or a community
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201 association management firm shall return all community
202 association official records within its possession to the
203 community association within 20 business days after termination
204 of a contractual agreement to provide community association
205 management services to the community association or receipt of a
206 written request for return of the official records, whichever
207 occurs first. A notice of termination of a contractual agreement
208 to provide community association management services must be
209 sent by certified mail, return receipt requested, or in the
210 manner required under such contractual agreement. The community
211 association manager or community association management firm may
212 retain, for up to 20 business days, those records necessary to
213 complete an ending financial statement or report. If an
214 association fails to provide access to or retention of the
215 accounting records to prepare an ending financial statemen t or
216 report, the community association manager or community
217 association management firm is relieved from any further
218 responsibility or liability relating to the preparation of such
219 ending financial statement or report. Failure of a community
220 association manager or a community association management firm
221 to timely return all of the official records within its
222 possession to the community association creates a rebuttable
223 presumption that the community association manager or community
224 association management firm willfully failed to comply with this
225 subsection. A community association manager or a community
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226 association management firm that fails to timely return
227 community association records is subject to suspension of its
228 license under s. 468.436, and a civil penalty of $1,000 per day
229 for up to 10 business days, assessed beginning on the 21st
230 business day after termination of a contractual agreement to
231 provide community association management services to the
232 community association or receipt of a written request f rom the
233 association for return of the records, whichever occurs first.
234 Section 2. Section 468.4335, Florida Statutes, is created
235 to read:
236 468.4335 Conflicts of interest.—
237 (1) A community association manager or a community
238 association management firm, including directors, officers, and
239 persons with a financial interest in a community association
240 management firm, or a relative of such persons, must disclose to
241 the board of a community association any activity that may
242 reasonably be construed to be a conflict of interest. A
243 rebuttable presumption of a conflict of interest exists if any
244 of the following occurs without prior notice:
245 (a) A community association manager or a community
246 association management firm, including directors, officers, and
247 persons with a financial interest in a community association
248 management firm, or a relative of such persons, enters into a
249 contract for goods or services with the association.
250 (b) A community association manager or a community
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251 association management firm, including directors, officers, and
252 persons with a financial interest in a community association
253 management firm, or a relative of such persons, holds an
254 interest in or receives compensation or any thing of value from
255 a corporation, limited liability corporation, partnership,
256 limited liability partnership, or other business entity that
257 conducts business with the association or proposes to enter into
258 a contract or other transaction with the association.
259 (2) If the association receives and considers a bid to
260 provide a good or service, other than community association
261 management services, from a community association manager or a
262 community association management firm, including directors,
263 officers, and persons with a financial interest in a community
264 association management firm, or a relative of such persons, the
265 association must also solicit and consider at least three bids
266 from other third-party providers of such good or service.
267 (3) If a community association manager or a community
268 association management firm, including directors, officers, and
269 persons with a financial interest in a community association
270 management firm, or a relative of such persons, proposes to
271 engage in an activity that is a conflict of interest as
272 described in subsection (1), the proposed activity must be
273 listed on, and all contracts and transactional documents related
274 to the proposed activity must be attached to, the meeting agenda
275 of the next board of administration meeting. The disclosures of
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276 a possible conflict of interest must be entered into the written
277 minutes of the meeting. Approval of the contract or other
278 transaction requires an affirmative vote of two-thirds of all
279 other directors present. At the next regular or special meeting
280 of the members, the existence of the contract or other
281 transaction must be disclosed to the members.
282 (4) If the board finds that a community association
283 manager or a community association management firm, including
284 directors, officers, and persons with a financial interest in a
285 community association management firm, or a relative of such
286 persons, has violated this section, the association may cancel
287 its community association management contract with the community
288 association manager or the community association management
289 firm. If the contract is canceled, the association is liable
290 only for the reasonable value of the management services
291 provided up to the time of cancellation and is not liable for
292 any termination fees, liquidated damages, or other form of
293 penalty for such cancellation.
294 (5) If an association enters into a contract with a
295 community association manager or a community association
296 management firm, including directors, officers, and persons with
297 a financial interest in a community association management firm,
298 or a relative of such persons, which is a party to or has an
299 interest in an activity that is a possible conflict of interest
300 as described in subsection (1) and such activity has not been
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301 properly disclosed as a conflict of interest or potential
302 conflict of interest as required by this section, the contract
303 is voidable and terminates upon the association filing a written
304 notice terminating the contract with its board of directors
305 which contains the consent of at least 20 percent of the voting
306 interests of the association.
307 (6) As used in this section, the term "relative" means a
308 relative within the third degree of consanguinity by blood or
309 marriage.
310 Section 3. Paragraph (b) of subsection (2) of section
311 468.436, Florida Statutes, is amended, and subsection (4) of
312 that section is reenacted, to read:
313 468.436 Disciplinary proceedings.—
314 (2) The following acts constitute grounds for which the
315 disciplinary actions in subsection (4) may be taken:
316 (b)1. Violation of any provision of this part.
317 2. Violation of any lawful order or rule rendered or
318 adopted by the department or the council.
319 3. Being convicted of or pleading nolo contendere to a
320 felony in any court in the United States.
321 4. Obtaining a license or certification or any other
322 order, ruling, or authorization by means of fraud,
323 misrepresentation, or concealment of material facts.
324 5. Committing acts of gross misconduct or gross negligence
325 in connection with the profession.
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326 6. Contracting, on behalf of an association, with any
327 entity in which the licensee has a financial interest th at is
328 not disclosed.
329 7. Failing to disclose any conflict of interest as
330 required by s. 468.4335.
331 8.7. Violating any provision of chapter 718, chapter 719,
332 or chapter 720 during the course of performing community
333 association management services pursuant to a contract with a
334 community association as defined in s. 468.431(1).
335 (4) When the department finds any community association
336 manager or firm guilty of any of the grounds set forth in
337 subsection (2), it may enter an order imposing one or more of
338 the following penalties:
339 (a) Denial of an application for licensure.
340 (b) Revocation or suspension of a license.
341 (c) Imposition of an administrative fine not to exceed
342 $5,000 for each count or separate offense.
343 (d) Issuance of a reprimand.
344 (e) Placement of the community association manager on
345 probation for a period of time and subject to such conditions as
346 the department specifies.
347 (f) Restriction of the authorized scope of practice by the
348 community association manager.
349 Section 4. Subsections (19) through (32) of section
350 718.103, Florida Statutes, are renumbered as subsections (20)
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351 through (33), respectively, and a new subsection (19) is added
352 to that section, to read:
353 718.103 Definitions.—As used in this chapter, the term:
354 (19) "Hurricane protection" means hurricane shutters,
355 impact glass, code-compliant windows or doors, and other code-
356 compliant hurricane protection products used to preserve and
357 protect the condominium property or association property.
358 Section 5. Paragraph (p) is added to subsection (4) of
359 section 718.104, Florida Statutes, to read:
360 718.104 Creation of condominiums; contents of
361 declaration.—Every condominium created in this state shall be
362 created pursuant to this chapter.
363 (4) The declaration must contain or provide for the
364 following matters:
365 (p) For both residential condominiums and mixed-use
366 condominiums, a statement that specifies whether the unit owner
367 or the association is responsible for the installation,
368 maintenance, repair, or replacement of hurricane protection that
369 is for the preservation and protection of the condominium
370 property and association property.
371 Section 6. Paragraph (a) of subsection (1) and subsections
372 (12), (13), and (15) of section 718.111, Florida Statutes, are
373 amended to read:
374 718.111 The association.—
375 (1) CORPORATE ENTITY.—
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376 (a) The operation of the condominium shall be by the
377 association, which must be a Florida corporation for profit or a
378 Florida corporation not for profit. However, any association
379 which was in existence on January 1, 1977, need not be
380 incorporated. The owners of units shall be shareholders or
381 members of the association. The officers and directors of the
382 association have a fiduciary relationship to the unit owners. It
383 is the intent of the Legislature that nothing in this paragraph
384 shall be construed as providing for or removing a requirement of
385 a fiduciary relationship between any manager employed by the
386 association and the unit owners. An officer, director, or
387 manager may not solicit, offer to accept, or accept any thing or
388 service of value or kickback for which consideration has not
389 been provided for his or her own benefit or that of his or her
390 immediate family, from any person providing or proposing to
391 provide goods or services to the association. Any such officer,
392 director, or manager who knowingly so solicits, offers to
393 accept, or accepts any thing or service of value or kickback
394 commits a felony of the third degree, punishable as provided in
395 s. 775.082, s. 775.083, or s. 775.084, is subject to a civil
396 penalty pursuant to s. 718.501(1)(d), and must be removed from
397 office and a vacancy declared and, if applicable, a criminal
398 penalty as provided in paragraph (d). However, this paragraph
399 does not prohibit an officer, director, or manager from
400 accepting services or items received in connection with trade
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401 fairs or education programs. An association may operate more
402 than one condominium.
403 (12) OFFICIAL RECORDS.—
404 (a) From the inception of the association, the association
405 shall maintain each of the following items, if applicable, which
406 constitutes the official records of the association:
407 1. A copy of the plans, permits, warranties, and other
408 items provided by the developer under s. 718.301(4).
409 2. A photocopy of the recorded declaration of condominium
410 of each condominium operated by the association and each
411 amendment to each declaration.
412 3. A photocopy of the recorded bylaws of the association
413 and each amendment to the bylaws.
414 4. A certified copy of the articles of incorporation of
415 the association, or other documents creating the association,
416 and each amendment thereto.
417 5. A copy of the current rules of the association.
418 6. A book or books that contain the minutes of all
419 meetings of the association, the board of administration, and
420 the unit owners.
421 7. A current roster of all unit owners and their mailing
422 addresses, unit identifications, voting certifications, and, if
423 known, telephone numbers. The association shall also maintain
424 the e-mail addresses and facsimile numbers of unit owners
425 consenting to receive notice by electronic transmission. The e-
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426 mail addresses and facsimile numbers are not accessible to unit
427 owners if consent to receive notice by electronic transmission
428 is not provided In accordance with sub-subparagraph (c)5.e., the
429 e-mail addresses and facsimile numbers are only accessible to
430 unit owners if consent to receive notice by electronic
431 transmission is provided (c)3.e. However, the association is not
432 liable for an inadvertent disclosure of the e-mail address or
433 facsimile number for receiving electronic transmission of
434 notices.
435 8. All current insurance policies of the association and
436 condominiums operated by the association.
437 9. A current copy of any management agreement, lease, or
438 other contract to which the association is a party or under
439 which the association or the unit owners have an obli gation or
440 responsibility.
441 10. Bills of sale or transfer for all property owned by
442 the association.
443 11. Accounting records for the association and separate
444 accounting records for each condominium that the association
445 operates. Any person who knowingly or intentionally defaces or
446 destroys such records, or who knowingly or intentionally fails
447 to create or maintain such records, with the intent of causing
448 harm to the association or one or more of its members, is
449 personally subject to a civil penalty pursuant to s.
450 718.501(1)(d). The accounting records must include, but are not
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451 limited to:
452 a. Accurate, itemized, and detailed records of all
453 receipts and expenditures.
454 b. All invoices, transaction receipts, or deposit slips
455 that substantiate any receipt or expenditure of funds by the
456 association.
457 c.b. A current account and a monthly, bimonthly, or
458 quarterly statement of the account for each unit designating the
459 name of the unit owner, the due date and amount of each
460 assessment, the amount paid on the account, and the balance due.
461 d.c. All audits, reviews, accounting statements,
462 structural integrity reserve studies, and financial reports of
463 the association or condominium. Structural integrity reserve
464 studies must be maintained for at least 15 years after the study
465 is completed.
466 e.d. All contracts for work to be performed. Bids for work
467 to be performed are also considered official records and must be
468 maintained by the association for at least 1 year after receipt
469 of the bid.
470 12. Ballots, sign-in sheets, voting proxies, and all other
471 papers and electronic records relating to voting by unit owners,
472 which must be maintained for 1 year from the date of the
473 election, vote, or meeting to which the document relates,
474 notwithstanding paragraph (b).
475 13. All rental records if the association is acting as
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476 agent for the rental of condominium units.
477 14. A copy of the current question and answer sheet as
478 described in s. 718.504.
479 15. A copy of the inspection reports described in ss.
480 553.899 and 718.301(4)(p) and any other inspection report
481 relating to a structural or life safety inspection of
482 condominium property. Such record must be maintained by the
483 association for 15 years after receipt of the report.
484 16. Bids for materials, equipment, or services.
485 17. All affirmative acknowledgments made pursuant to s.
486 718.121(4)(c).
487 18. A copy of all building permits issued for ongoing or
488 planned construction.
489 19.18. All other written records of the association not
490 specifically included in the foregoing which are related t o the
491 operation of the association.
492 (b) The official records specified in subparagraphs (a)1. -
493 6. must be permanently maintained from the inception of the
494 association. Bids for work to be performed or for materials,
495 equipment, or services must be maintained for at least 1 year
496 after receipt of the bid. All other official records must be
497 maintained within the state for at least 7 years, unless
498 otherwise provided by general law. The official records must be
499 maintained in an organized manner that facilitates inspection of
500 the records by a unit owner. In the event that the official
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501 records are lost, destroyed, or otherwise unavailable, the
502 obligation to maintain the official records includes a good
503 faith obligation to obtain and re-create those records to the
504 fullest extent possible. The records of the association shall be
505 made available to a unit owner within 45 miles of the
506 condominium property or within the county in which the
507 condominium property is located within 10 working days after
508 receipt of a written request by the board or its designee.
509 However, such distance requirement does not apply to an
510 association governing a timeshare condominium. This paragraph
511 and paragraph (c) may be complied with by having a copy of the
512 official records of the association available for inspection or
513 copying on the condominium property or association property, or
514 the association may offer the option of making the records
515 available to a unit owner electronically via the Internet as
516 provided under paragraph (g) or by allowing the records to be
517 viewed in electronic format on a computer screen and printed
518 upon request. The association is not responsible for the use or
519 misuse of the information provided to an association member or
520 his or her authorized representative in compliance with this
521 chapter unless the association has an affirmative duty not to
522 disclose such information under this chapter.
523 (c)1.a.(c)1. The official records of the association are
524 open to inspection by any association member and any person
525 authorized by an association member as a representative of such
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526 member at all reasonable times. The right to inspect the records
527 includes the right to make or obtain copies, at the reasonable
528 expense, if any, of the member and of the person authorized by
529 the association member as a representative of such member. A
530 renter of a unit has a right to inspect and copy only the
531 declaration of condominium, the association's bylaws and rules,
532 and the inspection reports described in ss. 553.899 and
533 718.301(4)(p). The association may adopt reasonable rules
534 regarding the frequency, time, location, notice, and manner of
535 record inspections and copying but may not require a member to
536 demonstrate any purpose or state any reason for the inspection.
537 The failure of an association to provide the records within 10
538 working days after receipt of a written request creates a
539 rebuttable presumption that the association willfully failed to
540 comply with this paragraph. A unit owner who is denied access to
541 official records is entitled to the actual damages or minimum
542 damages for the association's willful failure to comply. Minimum
543 damages are $50 per calendar day for up to 10 days, beginning on
544 the 11th working day after receipt of the written request. The
545 failure to permit inspection entitles any person prev ailing in
546 an enforcement action to recover reasonable attorney fees from
547 the person in control of the records who, directly or
548 indirectly, knowingly denied access to the records. If the
549 requested records are posted on an association's website, or are
550 available for download through an application on a mobile
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551 device, the association may fulfill its obligations under this
552 paragraph by directing to the website or the application all
553 persons authorized to request access.
554 b. In response to a written request to inspect records,
555 the association must simultaneously provide to the requestor a
556 checklist of all records made available for inspection and
557 copying. The checklist must also identify any of the
558 association's official records that were not made available to
559 the requestor. An association must maintain a checklist provided
560 under this sub-subparagraph for 7 years. An association
561 delivering a checklist pursuant to this sub-subparagraph creates
562 a rebuttable presumption that the association has complied with
563 this paragraph.
564 2. A director or member of the board or association or a
565 community association manager who knowingly, willfully, and
566 repeatedly violates subparagraph 1. commits a misdemeanor of the
567 second degree, punishable as provided in s. 775.082 or s.
568 775.083, and must be removed from office and a vacancy declared.
569 For purposes of this subparagraph, the term "repeatedly" means
570 two or more violations within a 12-month period.
571 3.2. Any person who knowingly or intentionally defaces or
572 destroys accounting records that are required by this chapter to
573 be maintained during the period for which such records are
574 required to be maintained, or who knowingly or intentionally
575 fails to create or maintain accounting records that are required
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576 to be created or maintained, with the intent of causing harm to
577 the association or one or more of its members, commits a
578 misdemeanor of the first degree, punishable as provided in s.
579 775.082 or s. 775.083, is personally subject to a civil penalty
580 pursuant to s. 718.501(1)(d), and must be removed from office
581 and a vacancy declared.
582 4. A person who willfully and knowingly refuses to release
583 or otherwise produce association records with the intent to
584 avoid or escape detection, arrest, trial, or punishment for the
585 commission of a crime, or to assist another person with such
586 avoidance or escape, commits a felony of the third degree,
587 punishable as provided in s. 775.082, s. 775.083, or s. 775.084,
588 and must be removed from office and a vacancy declared.
589 5.3. The association shall maintain an adequate number of
590 copies of the declaration, articles of incorporation, bylaws,
591 and rules, and all amendments to each of the foregoing, as well
592 as the question and answer sheet as described in s. 718.504 and
593 year-end financial information required under this section, on
594 the condominium property to ensure their availability to unit
595 owners and prospective purchasers, and may charge its actual
596 costs for preparing and furnishing these documents to those
597 requesting the documents. An association shall allow a member or
598 his or her authorized representative to use a portable device,
599 including a smartphone, tablet, portable scanner, or any other
600 technology capable of scanning or taking photographs, to make an
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601 electronic copy of the official records in lieu of the
602 association's providing the member or his or her authorized
603 representative with a copy of such records. The association may
604 not charge a member or his or her authorized representative for
605 the use of a portable device. Notwithstanding this paragraph,
606 the following records are not accessible to unit owners:
607 a. Any record protected by the lawyer-client privilege as
608 described in s. 90.502 and any record protected by the work-
609 product privilege, including a record prepared by an association
610 attorney or prepared at the attorney's express direction, which
611 reflects a mental impression, conclusion, litigation strategy,
612 or legal theory of the attorney or the association, and which
613 was prepared exclusively for civil or criminal litigation or for
614 adversarial administrative proceedings, or which was prepared in
615 anticipation of such litigation or proceedings until the
616 conclusion of the litigation or proceedings.
617 b. Information obtained by an association in connection
618 with the approval of the lease, sale, or other transf er of a
619 unit.
620 c. Personnel records of association or management company
621 employees, including, but not limited to, disciplinary, payroll,
622 health, and insurance records. For purposes of this sub -
623 subparagraph, the term "personnel records" does not include
624 written employment agreements with an association employee or
625 management company, or budgetary or financial records that
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626 indicate the compensation paid to an association employee.
627 d. Medical records of unit owners.
628 e. Social security numbers, driver license numbers, credit
629 card numbers, e-mail addresses, telephone numbers, facsimile
630 numbers, emergency contact information, addresses of a unit
631 owner other than as provided to fulfill the association's notice
632 requirements, and other personal identifying information of any
633 person, excluding the person's name, unit designation, mailing
634 address, property address, and any address, e-mail address, or
635 facsimile number provided to the association to fulfill the
636 association's notice requirements. Notwithstanding the
637 restrictions in this sub-subparagraph, an association may print
638 and distribute to unit owners a directory containing the name,
639 unit address, and all telephone numbers of each unit owner.
640 However, an owner may exclude his or her telephone numbers from
641 the directory by so requesting in writing to the association. An
642 owner may consent in writing to the disclosure of other contact
643 information described in this sub-subparagraph. The association
644 is not liable for the inadvertent disclosure of information that
645 is protected under this sub-subparagraph if the information is
646 included in an official record of the association and is
647 voluntarily provided by an owner and not requested by the
648 association.
649 f. Electronic security measures that are used by the
650 association to safeguard data, including passwords.
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651 g. The software and operating system used by the
652 association which allow the manipulation of data, even if the
653 owner owns a copy of the same software used by the association.
654 The data is part of the official records of the association.
655 h. All affirmative acknowledgments made pursuant to s.
656 718.121(4)(c).
657 (d) The association shall prepare a question and answer
658 sheet as described in s. 718.504, and shall update it annually.
659 (e)1. The association or its authorized agent is not
660 required to provide a prospective purchaser or lienholder with
661 information about the condominium or the association other than
662 information or documents required by this chapter to be made
663 available or disclosed. The association or its authorized agent
664 may charge a reasonable fee to the prospective purchaser,
665 lienholder, or the current unit owner for providing good faith
666 responses to requests for information by or on behalf of a
667 prospective purchaser or lienholder, other than that required by
668 law, if the fee does not exceed $150 plus the reasonable cost of
669 photocopying and any attorney's fees incurred by the association
670 in connection with the response.
671 2. An association and its authorized agent are not liable
672 for providing such information in good faith pursuant to a
673 written request if the person providing the information includes
674 a written statement in substantially the following form: "The
675 responses herein are made in good faith and to the best of my
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676 ability as to their accuracy."
677 (f) An outgoing board or committee member must relinquish
678 all official records and property of the association in his or
679 her possession or under his or her control to the incoming board
680 within 5 days after the election. The division shall impose a
681 civil penalty as set forth in s. 718.501(1)(d)6. against an
682 outgoing board or committee member who willfully and knowingly
683 fails to relinquish such records and property.
684 (g)1. By January 1, 2019, an association managing a
685 condominium with 150 or more units which does not contain
686 timeshare units shall post digital copies of the documents
687 specified in subparagraph 2. on its website or make such
688 documents available through an application that can be
689 downloaded on a mobile device.
690 a. The association's website or application must be:
691 (I) An independent website, application, or web portal
692 wholly owned and operated by the association; or
693 (II) A website, application, or web portal operated by a
694 third-party provider with whom the association owns, leases,
695 rents, or otherwise obtains the right to operate a web page,
696 subpage, web portal, collection of subpages or web portals, or
697 an application which is dedicated to the association's
698 activities and on which required notices, records, and documents
699 may be posted or made available by the association.
700 b. The association's website or application must be
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701 accessible through the Internet and must contain a subpage, web
702 portal, or other protected electronic location that is
703 inaccessible to the general public and accessible only to unit
704 owners and employees of the association.
705 c. Upon a unit owner's written request, the association
706 must provide the unit owner with a username and password and
707 access to the protected sections of the association's website or
708 application which contain any notices, records, or documents
709 that must be electronically provided.
710 2. A current copy of the following documents must be
711 posted in digital format on the association's website or
712 application:
713 a. The recorded declaration of condominium of each
714 condominium operated by the association and each amendment to
715 each declaration.
716 b. The recorded bylaws of the association and each
717 amendment to the bylaws.
718 c. The articles of incorporation of the association, or
719 other documents creating the association, and each amendment to
720 the articles of incorporation or other documents. The copy
721 posted pursuant to this sub-subparagraph must be a copy of the
722 articles of incorporation filed with the Department of State.
723 d. The rules of the association.
724 e. A list of all executory contracts or documents to which
725 the association is a party or under which the association or the
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726 unit owners have an obligation or responsibility and, after
727 bidding for the related materials, equipment, or services has
728 closed, a list of bids received by the association within the
729 past year. Summaries of bids for materials, equipment, or
730 services which exceed $500 must be maintained on the website or
731 application for 1 year. In lieu of summaries, complete copies of
732 the bids may be posted.
733 f. The annual budget required by s. 718.112(2)(f) and any
734 proposed budget to be considered at the annual meeting.
735 g. The financial report required by subsection (13) and
736 any monthly income or expense statement to be considered at a
737 meeting.
738 h. The certification of each director required by s.
739 718.112(2)(d)4.b.
740 i. All contracts or transactions between the association
741 and any director, officer, corporation, firm, or association
742 that is not an affiliated condominium association or any other
743 entity in which an association director is also a director or
744 officer and financially interested.
745 j. Any contract or document regarding a conflict of
746 interest or possible conflict of interest as provided in ss.
747 468.4335, 468.436(2)(b)6., and 718.3027(3).
748 k. The notice of any unit owner meeting and the agenda for
749 the meeting, as required by s. 718.112(2)(d)3., no later than 14
750 days before the meeting. The notice must be posted in plain view
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751 on the front page of the website or application, or on a
752 separate subpage of the website or application labeled "Notices"
753 which is conspicuously visible and linked from the front page.
754 The association must also post on its website or application any
755 document to be considered and voted on by the owners during the
756 meeting or any document listed on the agenda at least 7 days
757 before the meeting at which the document or the information
758 within the document will be considered.
759 l. Notice of any board meeting, the agenda, and any other
760 document required for the meeting as required by s.
761 718.112(2)(c), which must be posted no later than the date
762 required for notice under s. 718.112(2)(c).
763 m. The inspection reports described in ss. 553.899 and
764 718.301(4)(p) and any other inspection report relating to a
765 structural or life safety inspection of condominium property.
766 n. The association's most recent structural integrity
767 reserve study, if applicable.
768 o. Copies of all building permits issued for ongoing or
769 planned construction.
770 3. The association shall ensure that the information and
771 records described in paragraph (c), which are not allowed to be
772 accessible to unit owners, are not posted on the association's
773 website or application. If protected information or information
774 restricted from being accessible to unit owners is included in
775 documents that are required to be posted on the association's
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776 website or application, the association shall ensure the
777 information is redacted before posting the documents.
778 Notwithstanding the foregoing, the association or its agent is
779 not liable for disclosing information that is protected or
780 restricted under this paragraph unless such disclosure was made
781 with a knowing or intentional disregard of the protected or
782 restricted nature of such information.
783 4. The failure of the association to post information
784 required under subparagraph 2. is not in and of itself
785 sufficient to invalidate any action or decision of the
786 association's board or its committees.
787 (13) FINANCIAL REPORTING.—Within 90 days after the end of
788 the fiscal year, or annually on a date provided in the bylaws ,
789 the association shall prepare and complete, or contract for the
790 preparation and completion of, a financial report for the
791 preceding fiscal year. Within 21 days after the final financial
792 report is completed by the association or received from the
793 third party, but not later than 120 days after the end of the
794 fiscal year or other date as provided in the bylaws, the
795 association shall deliver mail to each unit owner by United
796 States mail or personal delivery at the mailing address,
797 property address, e-mail address, or facsimile number provided
798 to fulfill the association's notice requirements at the address
799 last furnished to the association by the unit owner, or hand
800 deliver to each unit owner, a copy of the most recent financial
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801 report, and or a notice that a copy of the most recent financial
802 report will be mailed or hand delivered to the unit owner,
803 without charge, within 5 business days after receipt of a
804 written request from the unit owner. The division shall adopt
805 rules setting forth uniform accounting principles and standards
806 to be used by all associations and addressing the financial
807 reporting requirements for multicondominium associations. The
808 rules must include, but not be limited to, standards for
809 presenting a summary of association reserves, including a good
810 faith estimate disclosing the annual amount of reserve funds
811 that would be necessary for the association to fully fund
812 reserves for each reserve item based on the straight-line
813 accounting method. This disclosure is not applicable to reserves
814 funded via the pooling method. In adopting such rules, the
815 division shall consider the number of members and annual
816 revenues of an association. Financial reports shall be prepared
817 as follows:
818 (a) An association that meets the criteria of this
819 paragraph shall prepare a complete set of financial statements
820 in accordance with generally accepted accounting principles. The
821 financial statements must be based upon the association's total
822 annual revenues, as follows:
823 1. An association with total annual revenues of $150 ,000
824 or more, but less than $300,000, shall prepare compiled
825 financial statements.
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826 2. An association with total annual revenues of at least
827 $300,000, but less than $500,000, shall prepare reviewed
828 financial statements.
829 3. An association with total annual revenues of $500,000
830 or more shall prepare audited financial statements.
831 (b)1. An association with total annual revenues of less
832 than $150,000 shall prepare a report of cash receipts and
833 expenditures.
834 2. A report of cash receipts and disbursements must
835 disclose the amount of receipts by accounts and receipt
836 classifications and the amount of expenses by accounts and
837 expense classifications, including, but not limited to, the
838 following, as applicable: costs for security, professional and
839 management fees and expenses, taxes, costs for recreation
840 facilities, expenses for refuse collection and utility services,
841 expenses for lawn care, costs for building maintenance and
842 repair, insurance costs, administration and salary expenses, and
843 reserves accumulated and expended for capital expenditures,
844 deferred maintenance, and any other category for which the
845 association maintains reserves.
846 (c) An association may prepare, without a meeting of or
847 approval by the unit owners:
848 1. Compiled, reviewed, or audited financial statements, if
849 the association is required to prepare a report of cash receipts
850 and expenditures;
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851 2. Reviewed or audited financial statements, if the
852 association is required to prepare compiled financial
853 statements; or
854 3. Audited financial statements if the association is
855 required to prepare reviewed financial statements.
856 (d) If approved by a majority of the voting interests
857 present at a properly called meeting of the association, an
858 association may prepare:
859 1. A report of cash receipts and expenditures in lieu of a
860 compiled, reviewed, or audited financial statement;
861 2. A report of cash receipts and expenditures or a
862 compiled financial statement in lieu of a reviewed or audited
863 financial statement; or
864 3. A report of cash receipts and expenditures, a compiled
865 financial statement, or a reviewed financial statement in lieu
866 of an audited financial statement.
867
868 Such meeting and approval must occur before the end of the
869 fiscal year and is effective only for the fiscal year in which
870 the vote is taken. An association may not prepare a financial
871 report pursuant to this paragraph for consecutive fiscal years,
872 except that the approval may also be effective for the following
873 fiscal year. If the developer has not turned over control of the
874 association, all unit owners, including the developer, may vote
875 on issues related to the preparation of the association's
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876 financial reports, from the date of incorporation of the
877 association through the end of the second fiscal year after the
878 fiscal year in which the certificate of a surveyor and mapper is
879 recorded pursuant to s. 718.104(4)(e) or an instrument that
880 transfers title to a unit in the condominium which is not
881 accompanied by a recorded assignment of developer rights in
882 favor of the grantee of such unit is recorded, whichever occurs
883 first. Thereafter, all unit owners except the developer may vote
884 on such issues until control is turned over to the association
885 by the developer. Any audit or review prepared under this
886 section shall be paid for by the developer if done before
887 turnover of control of the association.
888 (e) A unit owner may provide written notice to the
889 division of the association's failure to mail or hand deliver
890 him or her a copy of the most recent financial report within 5
891 business days after he or she submitted a written request to the
892 association for a copy of such report. If the division
893 determines that the association failed to mail or hand deliver a
894 copy of the most recent financial report to the unit owner, the
895 division shall provide written notice to the association that
896 the association must mail or hand deliver a copy of the most
897 recent financial report to the unit owner and the division
898 within 5 business days after it receives such notice from the
899 division. An association that fails to comply with the
900 division's request may not waive the financial reporting
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901 requirement provided in paragraph (d) for the fiscal year in
902 which the unit owner's request was made and the following fiscal
903 year. A financial report received by the division pursuant to
904 this paragraph shall be maintained, and the division shall
905 provide a copy of such report to an association member upon his
906 or her request.
907 (15) DEBIT CARDS.—
908 (a) An association and its officers, directors, employees,
909 and agents may not use a debit card issued in the name of the
910 association, or billed directly to the association, for the
911 payment of any association expense.
912 (b) A person who uses Use of a debit card issued in the
913 name of the association, or billed directly to the association,
914 for any expense that is not a lawful obligation of the
915 association commits theft under s. 812.014 and must be removed
916 from office and a vacancy declared. For the purposes of this
917 paragraph, the term "lawful obligation of the association" means
918 an obligation that has been properly preapproved by the board
919 and is reflected in the meeting minutes or the written budget
920 may be prosecuted as credit card fraud pursuant to s. 817.61 .
921 Section 7. Effective January 1, 2026, paragraph (g) of
922 subsection (12) of section 718.111, Florida Statutes, as amended
923 by this act, is amended to read:
924 718.111 The association.—
925 (12) OFFICIAL RECORDS.—
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926 (g)1. By January 1, 2019, An association managing a
927 condominium with 25 150 or more units which does not contain
928 timeshare units shall post digital copies of the documents
929 specified in subparagraph 2. on its website or make such
930 documents available through an application that can be
931 downloaded on a mobile device.
932 a. The association's website or application must be:
933 (I) An independent website, application, or web portal
934 wholly owned and operated by the association; or
935 (II) A website, application, or web portal operated by a
936 third-party provider with whom the association owns, leases,
937 rents, or otherwise obtains the right to operate a web page,
938 subpage, web portal, collection of subpages or web portals, or
939 an application which is dedicated to the association's
940 activities and on which required notices, records, and documents
941 may be posted or made available by the association.
942 b. The association's website or application must be
943 accessible through the Internet and must contain a subpage, web
944 portal, or other protected electronic location that is
945 inaccessible to the general public and accessible only to unit
946 owners and employees of the association.
947 c. Upon a unit owner's written request, the association
948 must provide the unit owner with a username and password and
949 access to the protected sections of the association's website or
950 application which contain any notices, records, or documents
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951 that must be electronically provided.
952 2. A current copy of the following documents must be
953 posted in digital format on the association's website or
954 application:
955 a. The recorded declaration of condominium of each
956 condominium operated by the association and each amendment to
957 each declaration.
958 b. The recorded bylaws of the association and each
959 amendment to the bylaws.
960 c. The articles of incorporation of the association, or
961 other documents creating the association, and each amendment to
962 the articles of incorporation or other documents. The copy
963 posted pursuant to this sub-subparagraph must be a copy of the
964 articles of incorporation filed with the Department of State.
965 d. The rules of the association.
966 e. A list of all executory contracts or documents to which
967 the association is a party or under which the association or the
968 unit owners have an obligation or responsibility and, after
969 bidding for the related materials, equipment, or services has
970 closed, a list of bids received by the association within the
971 past year. Summaries of bids for materials, equipment, or
972 services which exceed $500 must be maintained on the website or
973 application for 1 year. In lieu of summaries, complete copies of
974 the bids may be posted.
975 f. The annual budget required by s. 718.112(2)(f) and any
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976 proposed budget to be considered at the annual meeting.
977 g. The financial report required by subsection (13) and
978 any monthly income or expense statement to be considered at a
979 meeting.
980 h. The certification of each director required by s.
981 718.112(2)(d)4.b.
982 i. All contracts or transactions between the association
983 and any director, officer, corporation, firm, or association
984 that is not an affiliated condominium association or any other
985 entity in which an association director is also a director or
986 officer and financially interested.
987 j. Any contract or document regarding a conflict of
988 interest or possible conflict of interest as provided in ss.
989 468.4335, 468.436(2)(b)6., and 718.3027(3).
990 k. The notice of any unit owner meeting and the agenda for
991 the meeting, as required by s. 718.112(2)(d)3., no later than 14
992 days before the meeting. The notice must be posted in plain view
993 on the front page of the website or application, or on a
994 separate subpage of the website or application labeled "Notices"
995 which is conspicuously visible and linked from the fr ont page.
996 The association must also post on its website or application any
997 document to be considered and voted on by the owners during the
998 meeting or any document listed on the agenda at least 7 days
999 before the meeting at which the document or the informat ion
1000 within the document will be considered.
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1001 l. Notice of any board meeting, the agenda, and any other
1002 document required for the meeting as required by s.
1003 718.112(2)(c), which must be posted no later than the date
1004 required for notice under s. 718.112(2)(c).
1005 m. The inspection reports described in ss. 553.899 and
1006 718.301(4)(p) and any other inspection report relating to a
1007 structural or life safety inspection of condominium property.
1008 n. The association's most recent structural integrity
1009 reserve study, if applicable.
1010 o. Copies of all building permits issued for ongoing or
1011 planned construction.
1012 3. The association shall ensure that the information and
1013 records described in paragraph (c), which are not allowed to be
1014 accessible to unit owners, are not posted on the association's
1015 website or application. If protected information or information
1016 restricted from being accessible to unit owners is included in
1017 documents that are required to be posted on the association's
1018 website or application, the association shall ensure the
1019 information is redacted before posting the documents.
1020 Notwithstanding the foregoing, the association or its agent is
1021 not liable for disclosing information that is protected or
1022 restricted under this paragraph unless such disclosure was made
1023 with a knowing or intentional disregard of the protected or
1024 restricted nature of such information.
1025 4. The failure of the association to post information
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1026 required under subparagraph 2. is not in and of itself
1027 sufficient to invalidate any action or decision of the
1028 association's board or its committees.
1029 Section 8. Paragraphs (c), (d), (f), (g), and (q) of
1030 subsection (2) of section 718.112, Florida Statutes, are
1031 amended, and paragraph (r) is added to that subsection, to read:
1032 718.112 Bylaws.—
1033 (2) REQUIRED PROVISIONS.—The bylaws shall provide for the
1034 following and, if they do not do so, shall be deemed to include
1035 the following:
1036 (c) Board of administration meetings.—In a residential
1037 condominium association of more than 10 units, the board of
1038 administration shall meet once each quarter for the purpose of
1039 responding to inquiries from members and informing members on
1040 the state of the condominium, including the status of any
1041 construction or repair projects, the status of the association's
1042 revenue and expenditures during the fiscal year, or other issues
1043 affecting the association. Meetings of the board of
1044 administration at which a quorum of the members is present are
1045 open to all unit owners. Members of the board of administration
1046 may use e-mail as a means of communication but may not cast a
1047 vote on an association matter via e-mail. A unit owner may tape
1048 record or videotape the meetings. The right to attend such
1049 meetings includes the right to speak at such meetings with
1050 reference to all designated agenda items. The division shall
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1051 adopt reasonable rules governing the tape recording and
1052 videotaping of the meeting. The association may adopt written
1053 reasonable rules governing the frequency, duration, and manner
1054 of unit owner statements.
1055 1. Adequate notice of all board meetings, which must
1056 specifically identify all agenda items, must be posted
1057 conspicuously on the condominium property at least 48 continuous
1058 hours before the meeting except in an emergency. If 20 percent
1059 of the voting interests petition the board to address an item of
1060 business, the board, within 60 days after receipt of the
1061 petition, shall place the item on the agenda at its next regular
1062 board meeting or at a special meeting called for that purpose.
1063 An item not included on the notice may be taken up on an
1064 emergency basis by a vote of at least a majority plus one of the
1065 board members. Such emergency action must be noticed and
1066 ratified at the next regular board meeting. Written notice of a
1067 meeting at which a nonemergency special assessment or an
1068 amendment to rules regarding unit use will be considered must be
1069 mailed, delivered, or electronically transmitted to the unit
1070 owners and posted conspicuously on the condominium property at
1071 least 14 days before the meeting. Evidence of compliance with
1072 this 14-day notice requirement must be made by an affidavit
1073 executed by the person providing the notice and filed with the
1074 official records of the association. Notice of any meeting in
1075 which regular or special assessments against unit owners are to
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1076 be considered must specifically state that assessments will be
1077 considered and provide the estimated cost and description of the
1078 purposes for such assessments.
1079 2. Upon notice to the unit owners, the board shall, by
1080 duly adopted rule, designate a specific location on the
1081 condominium property at which where all notices of board
1082 meetings must be posted. If there is no condominium property at
1083 which where notices can be posted, notices shall be mailed,
1084 delivered, or electronically transmitted to each unit owner at
1085 least 14 days before the meeting. In lieu of or in addition to
1086 the physical posting of the notice on the condominium property,
1087 the association may, by reasonable rule, adopt a procedure for
1088 conspicuously posting and repeatedly broadcasting the notice and
1089 the agenda on a closed-circuit cable television system serving
1090 the condominium association. However, if broadcast notice is
1091 used in lieu of a notice physically posted on condominium
1092 property, the notice and agenda must be broadcast at least four
1093 times every broadcast hour of each day that a posted notice is
1094 otherwise required under this section. If broadcast notice is
1095 provided, the notice and agenda must be broadcast in a manner
1096 and for a sufficient continuous length of time so as to allow an
1097 average reader to observe the notice and read and comprehend the
1098 entire content of the notice and the agenda. In addition to any
1099 of the authorized means of providing notice of a meeting of the
1100 board, the association may, by rule, adopt a procedure for
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1101 conspicuously posting the meeting notice and the agenda on a
1102 website serving the condominium association for at least the
1103 minimum period of time for which a notice of a meeting is also
1104 required to be physically posted on the condominium property.
1105 Any rule adopted shall, in addition to other matters, include a
1106 requirement that the association send an electronic notice in
1107 the same manner as a notice for a meeting of the members, which
1108 must include a hyperlink to the website at which where the
1109 notice is posted, to unit owners whose e-mail addresses are
1110 included in the association's official records.
1111 3. Notice of any meeting in which regular or special
1112 assessments against unit owners are to be considered must
1113 specifically state that assessments will be considered and
1114 provide the estimated cost and description of the purposes for
1115 such assessments. If an agenda item relates to the approval of a
1116 contract for goods or services, a copy of the contract must be
1117 provided with the notice and be made available for inspection
1118 and copying upon a written request from a unit owner or made
1119 available on the association's website or through an application
1120 that can be downloaded on a mobile device.
1121 4.2. Meetings of a committee to take final action on
1122 behalf of the board or make recommendations to the board
1123 regarding the association budget are subject to this paragraph.
1124 Meetings of a committee that does not take final action on
1125 behalf of the board or make recommendations to the board
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1126 regarding the association budget are subject to this section,
1127 unless those meetings are exempted from this section by the
1128 bylaws of the association.
1129 5.3. Notwithstanding any other law, the requirement that
1130 board meetings and committee meetings be open to the unit owners
1131 does not apply to:
1132 a. Meetings between the board or a committee and the
1133 association's attorney, with respect to proposed or pending
1134 litigation, if the meeting is held for the purpose of seeking or
1135 rendering legal advice; or
1136 b. Board meetings held for the purpose of discussing
1137 personnel matters.
1138 (d) Unit owner meetings.—
1139 1. An annual meeting of the unit owners must be held at
1140 the location provided in the association bylaws and, if the
1141 bylaws are silent as to the location, the meeting must be held
1142 within 45 miles of the condominium property. However, such
1143 distance requirement does not apply to an association governing
1144 a timeshare condominium.
1145 2. Unless the bylaws provide otherwise, a vacancy on the
1146 board caused by the expiration of a director's term must be
1147 filled by electing a new board member, and the election must be
1148 by secret ballot. An election is not required if the number of
1149 vacancies equals or exceeds the number of candidates. For
1150 purposes of this paragraph, the term "candidate" means an
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1151 eligible person who has timely submitted the written notice, as
1152 described in sub-subparagraph 4.a., of his or her intention to
1153 become a candidate. Except in a timeshare or nonresidential
1154 condominium, or if the staggered term of a board member does not
1155 expire until a later annual meeting, or if all members' terms
1156 would otherwise expire but there are no candidates, the terms of
1157 all board members expire at the annual meeting, and such members
1158 may stand for reelection unless prohibited by the bylaws. Board
1159 members may serve terms longer than 1 year if permitted by the
1160 bylaws or articles of incorporation. A board member may not
1161 serve more than 8 consecutive years unless approved by an
1162 affirmative vote of unit owners representing two-thirds of all
1163 votes cast in the election or unless there are not enough
1164 eligible candidates to fill the vacancies on the board at the
1165 time of the vacancy. Only board service that occurs on or after
1166 July 1, 2018, may be used when calculating a board member's term
1167 limit. If the number of board members whose terms expire at the
1168 annual meeting equals or exceeds the number of candidates, the
1169 candidates become members of the board effective upon the
1170 adjournment of the annual meeting. Unless the bylaws provide
1171 otherwise, any remaining vacancies shall be filled by the
1172 affirmative vote of the majority of the directors making up the
1173 newly constituted board even if the directors constitute less
1174 than a quorum or there is only one director. In a residential
1175 condominium association of more than 10 units or in a
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1176 residential condominium association that does not include
1177 timeshare units or timeshare interests, co-owners of a unit may
1178 not serve as members of the board of directors at the same time
1179 unless they own more than one unit or unless there are not
1180 enough eligible candidates to fill the vacancies on the board at
1181 the time of the vacancy. A unit owner in a residential
1182 condominium desiring to be a candidate for board membership must
1183 comply with sub-subparagraph 4.a. and must be eligible to be a
1184 candidate to serve on the board of directors at the time of the
1185 deadline for submitting a notice of intent to run in order to
1186 have his or her name listed as a proper candidate on the ballot
1187 or to serve on the board. A person who has been suspended or
1188 removed by the division under this chapter, or who is delinquent
1189 in the payment of any assessment due to the association, is not
1190 eligible to be a candidate for board membership and may not be
1191 listed on the ballot. For purposes of this paragraph, a person
1192 is delinquent if a payment is not made by the due date as
1193 specifically identified in the declaration of condominium,
1194 bylaws, or articles of incorporation. If a due date is not
1195 specifically identified in the declaration of condominium,
1196 bylaws, or articles of incorporation, the due date is the first
1197 day of the assessment period. A person who has been convicted of
1198 any felony in this state or in a United States District or
1199 Territorial Court, or who has been convicted of any offense in
1200 another jurisdiction which would be considered a felony if
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1201 committed in this state, is not eligible for board membe rship
1202 unless such felon's civil rights have been restored for at least
1203 5 years as of the date such person seeks election to the board.
1204 The validity of an action by the board is not affected if it is
1205 later determined that a board member is ineligible for board
1206 membership due to having been convicted of a felony. This
1207 subparagraph does not limit the term of a member of the board of
1208 a nonresidential or timeshare condominium.
1209 3. The bylaws must provide the method of calling meetings
1210 of unit owners, including annual meetings. Written notice of an
1211 annual meeting must include an agenda; be mailed, hand
1212 delivered, or electronically transmitted to each unit owner at
1213 least 14 days before the annual meeting; and be posted in a
1214 conspicuous place on the condominium property or association
1215 property at least 14 continuous days before the annual meeting.
1216 Written notice of a meeting other than an annual meeting must
1217 include an agenda; be mailed, hand delivered, or electronically
1218 transmitted to each unit owner; and be posted in a conspicuous
1219 place on the condominium property or association property within
1220 the timeframe specified in the bylaws. If the bylaws do not
1221 specify a timeframe for written notice of a meeting other than
1222 an annual meeting, notice must be provided at least 14
1223 continuous days before the meeting. Upon notice to the unit
1224 owners, the board shall, by duly adopted rule, designate a
1225 specific location on the condominium property or association
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1226 property at which where all notices of unit owner meetings must
1227 be posted. This requirement does not apply if there is no
1228 condominium property for posting notices. In lieu of, or in
1229 addition to, the physical posting of meeting notices, the
1230 association may, by reasonable rule, adopt a procedure for
1231 conspicuously posting and repeatedly broadcasting the notice and
1232 the agenda on a closed-circuit cable television system serving
1233 the condominium association. However, if broadcast notice is
1234 used in lieu of a notice posted physically on the condominium
1235 property, the notice and agenda must be broadcast at least four
1236 times every broadcast hour of each day that a posted notice is
1237 otherwise required under this section. If broadcast notice is
1238 provided, the notice and agenda must be broadcast in a manner
1239 and for a sufficient continuous length of time so as to allow an
1240 average reader to observe the notice and read and comprehend the
1241 entire content of the notice and the agenda. In addition to any
1242 of the authorized means of providing notice of a meeting of the
1243 board, the association may, by rule, adopt a procedure for
1244 conspicuously posting the meeting notice and the agenda on a
1245 website serving the condominium association for at least the
1246 minimum period of time for which a notice of a meeting is also
1247 required to be physically posted on the condominium property.
1248 Any rule adopted shall, in addition to other matters, include a
1249 requirement that the association send an electronic notice in
1250 the same manner as a notice for a meeting of the members, which
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1251 must include a hyperlink to the website at which where the
1252 notice is posted, to unit owners whose e-mail addresses are
1253 included in the association's official records. Unless a unit
1254 owner waives in writing the right to receive notice of the
1255 annual meeting, such notice must be hand delivered, mailed, or
1256 electronically transmitted to each unit owner. Notice for
1257 meetings and notice for all other purposes must be mailed to
1258 each unit owner at the address last furnished to the association
1259 by the unit owner, or hand delivered to each unit owner.
1260 However, if a unit is owned by more than one person, the
1261 association must provide notice to the address that the
1262 developer identifies for that purpose and thereafter as one or
1263 more of the owners of the unit advise the association in
1264 writing, or if no address is given or the owners of the unit do
1265 not agree, to the address provided on the deed of record. An
1266 officer of the association, or the manager or other person
1267 providing notice of the association meeting, must provide an
1268 affidavit or United States Postal Service certificate of
1269 mailing, to be included in the official records of the
1270 association affirming that the notice was mailed or hand
1271 delivered in accordance with this provision.
1272 4. The members of the board of a residential condominium
1273 shall be elected by written ballot or voting machine. Proxies
1274 may not be used in electing the board in general elections or
1275 elections to fill vacancies caused by recall, resignation, or
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1276 otherwise, unless otherwise provided in this chapter. This
1277 subparagraph does not apply to an association governing a
1278 timeshare condominium.
1279 a. At least 60 days before a scheduled election, the
1280 association shall mail, deliver, or electronically transmit, by
1281 separate association mailing or included in another asso ciation
1282 mailing, delivery, or transmission, including regularly
1283 published newsletters, to each unit owner entitled to a vote, a
1284 first notice of the date of the election. A unit owner or other
1285 eligible person desiring to be a candidate for the board must
1286 give written notice of his or her intent to be a candidate to
1287 the association at least 40 days before a scheduled election.
1288 Together with the written notice and agenda as set forth in
1289 subparagraph 3., the association shall mail, deliver, or
1290 electronically transmit a second notice of the election to all
1291 unit owners entitled to vote, together with a ballot that lists
1292 all candidates not less than 14 days or more than 34 days before
1293 the date of the election. Upon request of a candidate, an
1294 information sheet, no larger than 8 1/2 inches by 11 inches,
1295 which must be furnished by the candidate at least 35 days before
1296 the election, must be included with the mailing, delivery, or
1297 transmission of the ballot, with the costs of mailing, delivery,
1298 or electronic transmission and copying to be borne by the
1299 association. The association is not liable for the contents of
1300 the information sheets prepared by the candidates. In order to
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1301 reduce costs, the association may print or duplicate the
1302 information sheets on both sides of the paper. The division
1303 shall by rule establish voting procedures consistent with this
1304 sub-subparagraph, including rules establishing procedures for
1305 giving notice by electronic transmission and rules providing for
1306 the secrecy of ballots. Elections shall be decided by a
1307 plurality of ballots cast. There is no quorum requirement;
1308 however, at least 20 percent of the eligible voters must cast a
1309 ballot in order to have a valid election. A unit owner may not
1310 authorize any other person to vote his or her ballot, and any
1311 ballots improperly cast are invalid. A unit owner who violates
1312 this provision may be fined by the association in accordance
1313 with s. 718.303. A unit owner who needs assistance in casting
1314 the ballot for the reasons stated in s. 101.051 may obtain such
1315 assistance. The regular election must occur on the date of the
1316 annual meeting. Notwithstanding this sub-subparagraph, an
1317 election is not required unless more candidates file notices of
1318 intent to run or are nominated than board vacancies exist.
1319 b. A director of a Within 90 days after being elected or
1320 appointed to the board of an association of a residential
1321 condominium, each newly elected or appointed director shall:
1322 (I) Certify in writing to the secretary of the association
1323 that he or she has read the association's declaration of
1324 condominium, articles of incorporation, bylaws, and current
1325 written policies; that he or she will work to uphold such
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1326 documents and policies to the best of his or her ability; and
1327 that he or she will faithfully discharge his or her f iduciary
1328 responsibility to the association's members.
1329 (II) Submit to the secretary of the association In lieu of
1330 this written certification, within 90 days after being elected
1331 or appointed to the board, the newly elected or appointed
1332 director may submit a certificate of having satisfactorily
1333 completed the educational curriculum administered by the
1334 division or a division-approved condominium education provider.
1335 The educational curriculum must be at least 4 hours long and
1336 include instruction on milestone inspections, structural
1337 integrity reserve studies, recordkeeping, financial literacy and
1338 transparency, levying of fines, and notice and meeting
1339 requirements within 1 year before or 90 days after the date of
1340 election or appointment.
1341
1342 Each newly elected or appointed director must submit to the
1343 secretary of the association the written certification and
1344 educational certificate within 1 year before being elected or
1345 appointed or 90 days after the date of election or appointment.
1346 A director of an association of a residential condominium who
1347 was elected or appointed before July 1, 2024, must comply with
1348 the written certification and educational certificate
1349 requirements in this sub-subparagraph by June 30, 2025. The
1350 written certification and or educational certificate is valid
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1351 for 7 years after the date of issuance and does not have to be
1352 resubmitted as long as the director serves on the board without
1353 interruption during the 7-year period. A director who is
1354 appointed by the developer may satisfy the educational
1355 certificate requirement in sub-sub-subparagraph (II) for any
1356 subsequent appointment to a board by a developer within 7 years
1357 after the date of issuance of the most recent educational
1358 certificate, including any interruption of service on a board or
1359 appointment to a board in another association within that 7-year
1360 period. One year after submission of the most recent written
1361 certification and educational certificate, and annually
1362 thereafter, a director of an association of a residential
1363 condominium must submit to the secretary of the association a
1364 certificate of having satisfactorily completed at least 1 hour
1365 of continuing education administered by the division, or a
1366 division-approved condominium education provider, relating to
1367 any recent changes to this chapter and the related
1368 administrative rules during the past year. A director of an
1369 association of a residential condominium who fails to timely
1370 file the written certification and or educational certificate is
1371 suspended from service on the board until he or she complies
1372 with this sub-subparagraph. The board may temporarily fill the
1373 vacancy during the period of suspension. The secretary shall
1374 cause the association to retain a director's written
1375 certification and or educational certificate for inspection by
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1376 the members for 7 5 years after a director's election or the
1377 duration of the director's uninterrupted tenure, whichever is
1378 longer. Failure to have such written certification and or
1379 educational certificate on file does not affect the validity of
1380 any board action.
1381 c. Any challenge to the election process must be commenced
1382 within 60 days after the election results are announced.
1383 5. Any approval by unit owners called for by this chapter
1384 or the applicable declaration or bylaws, including, but not
1385 limited to, the approval requirement in s. 718.111(8), must be
1386 made at a duly noticed meeting of unit owners and is subject to
1387 all requirements of this chapter or the applicable condominium
1388 documents relating to unit owner decisionmaking, except that
1389 unit owners may take action by written agreement, without
1390 meetings, on matters for which action by written agreement
1391 without meetings is expressly allowed by the applicable bylaws
1392 or declaration or any law that provides for such action.
1393 6. Unit owners may waive notice of specific meeti ngs if
1394 allowed by the applicable bylaws or declaration or any law.
1395 Notice of meetings of the board of administration; unit owner
1396 meetings, except unit owner meetings called to recall board
1397 members under paragraph (l); and committee meetings may be given
1398 by electronic transmission to unit owners who consent to receive
1399 notice by electronic transmission. A unit owner who consents to
1400 receiving notices by electronic transmission is solely
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1401 responsible for removing or bypassing filters that block receipt
1402 of mass e-mails sent to members on behalf of the association in
1403 the course of giving electronic notices.
1404 7. Unit owners have the right to participate in meetings
1405 of unit owners with reference to all designated agenda items.
1406 However, the association may adopt reasonable rules governing
1407 the frequency, duration, and manner of unit owner participation.
1408 8. A unit owner may tape record or videotape a meeting of
1409 the unit owners subject to reasonable rules adopted by the
1410 division.
1411 9. Unless otherwise provided in the bylaws, any vacancy
1412 occurring on the board before the expiration of a term may be
1413 filled by the affirmative vote of the majority of the remaining
1414 directors, even if the remaining directors constitute less than
1415 a quorum, or by the sole remaining director. In the alternative,
1416 a board may hold an election to fill the vacancy, in which case
1417 the election procedures must conform to sub-subparagraph 4.a.
1418 unless the association governs 10 units or fewer and has opted
1419 out of the statutory election process, in which case the bylaws
1420 of the association control. Unless otherwise provided in the
1421 bylaws, a board member appointed or elected under this section
1422 shall fill the vacancy for the unexpired term of the seat being
1423 filled. Filling vacancies created by recall is governed by
1424 paragraph (l) and rules adopted by the division.
1425 10. This chapter does not limit the use of general or
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1426 limited proxies, require the use of general or limited proxies,
1427 or require the use of a written ballot or voting machine for any
1428 agenda item or election at any meeting of a timeshare
1429 condominium association or nonresidential condominium
1430 association.
1431
1432 Notwithstanding subparagraph (b)2. and sub-subparagraph 4.a., an
1433 association of 10 or fewer units may, by affirmative vote of a
1434 majority of the total voting interests, provide for different
1435 voting and election procedures in its bylaws, which may be by a
1436 proxy specifically delineating the different voting and election
1437 procedures. The different voting and election procedures may
1438 provide for elections to be conducted by limited or general
1439 proxy.
1440 (f) Annual budget.—
1441 1. The proposed annual budget of estimated revenues and
1442 expenses must be detailed and must show the amounts budgeted by
1443 accounts and expense classifications, including, at a minimum,
1444 any applicable expenses listed in s. 718.504(21). The board
1445 shall adopt the annual budget at least 14 days before the start
1446 of the association's fiscal year. In the event that the board
1447 fails to timely adopt the annual budget a second time, it is
1448 deemed a minor violation and the prior year's budget shall
1449 continue in effect until a new budget is adopted. A
1450 multicondominium association must adopt a separate budget of
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1451 common expenses for each condominium the association operates
1452 and must adopt a separate budget of common expenses for the
1453 association. In addition, if the association maintains limited
1454 common elements with the cost to be shared only by those
1455 entitled to use the limited common elements as provided for in
1456 s. 718.113(1), the budget or a schedule attached to it must show
1457 the amount budgeted for this maintenance. If, after turnover of
1458 control of the association to the unit owners, any of the
1459 expenses listed in s. 718.504(21) are not applicable, they do
1460 not need to be listed.
1461 2.a. In addition to annual operating expenses, the budget
1462 must include reserve accounts for capital expenditures and
1463 deferred maintenance. These accounts must include, but are not
1464 limited to, roof replacement, building painting, and pavement
1465 resurfacing, regardless of the amount of deferred maintenance
1466 expense or replacement cost, and any other item that has a
1467 deferred maintenance expense or replacement cost that exceeds
1468 $10,000. The amount to be reserved must be computed using a
1469 formula based upon estimated remaining useful life and estim ated
1470 replacement cost or deferred maintenance expense of the reserve
1471 item. In a budget adopted by an association that is required to
1472 obtain a structural integrity reserve study, reserves must be
1473 maintained for the items identified in paragraph (g) for whic h
1474 the association is responsible pursuant to the declaration of
1475 condominium, and the reserve amount for such items must be based
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1476 on the findings and recommendations of the association's most
1477 recent structural integrity reserve study. With respect to items
1478 for which an estimate of useful life is not readily
1479 ascertainable or with an estimated remaining useful life of
1480 greater than 25 years, an association is not required to reserve
1481 replacement costs for such items, but an association must
1482 reserve the amount of deferred maintenance expense, if any,
1483 which is recommended by the structural integrity reserve study
1484 for such items. The association may adjust replacement reserve
1485 assessments annually to take into account an inflation
1486 adjustment and any changes in estimates or extension of the
1487 useful life of a reserve item caused by deferred maintenance.
1488 The members of a unit-owner-controlled association may
1489 determine, by a majority vote of the total voting interests of
1490 the association, to provide no reserves or less reserves than
1491 required by this subsection. For a budget adopted on or after
1492 December 31, 2024, the members of a unit-owner-controlled
1493 association that must obtain a structural integrity reserve
1494 study may not determine to provide no reserves or less reserves
1495 than required by this subsection for items listed in paragraph
1496 (g), except that members of an association operating a
1497 multicondominium may determine to provide no reserves or less
1498 reserves than required by this subsection if an alternative
1499 funding method has been approved by the division. If the local
1500 building official, as defined in s. 468.603, determines that the
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1501 entire condominium building is uninhabitable due to a natural
1502 emergency, as defined in s. 252.34, the board, upon the approval
1503 of a majority of its members, may pause the contribution to its
1504 reserves or reduce reserve funding until the local building
1505 official determines that the condominium building is habitable.
1506 Any reserve account funds held by the association may be
1507 expended, pursuant to the board's determination, to make the
1508 condominium building and its structures habitable. Upon the
1509 determination by the local building official that the
1510 condominium building is habitable, the association must
1511 immediately resume contributing funds to its reserves.
1512 b. Before turnover of control of an association by a
1513 developer to unit owners other than a developer under s.
1514 718.301, the developer-controlled association may not vote to
1515 waive the reserves or reduce funding of the reserves. If a
1516 meeting of the unit owners has been called to determine whether
1517 to waive or reduce the funding of reserves and no such result is
1518 achieved or a quorum is not attained, the reserves included in
1519 the budget shall go into effect. After the turnover, the
1520 developer may vote its voting interest to waive or reduce the
1521 funding of reserves.
1522 3. Reserve funds and any interest accruing thereon shall
1523 remain in the reserve account or accounts, and may be used only
1524 for authorized reserve expenditures unless their use for other
1525 purposes is approved in advance by a majority vote of all the
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1526 total voting interests of the association. Before turnover of
1527 control of an association by a developer to unit owners other
1528 than the developer pursuant to s. 718.301, the developer -
1529 controlled association may not vote to use reserves for purposes
1530 other than those for which they were intended. For a budget
1531 adopted on or after December 31, 2024, members of a unit -owner-
1532 controlled association that must obtain a structural integrity
1533 reserve study may not vote to use reserve funds, or any interest
1534 accruing thereon, for any other purpose other than the
1535 replacement or deferred maintenance costs of the components
1536 listed in paragraph (g).
1537 4. The only voting interests that are eligible to vote on
1538 questions that involve waiving or reducing the funding of
1539 reserves, or using existing reserve funds for purposes other
1540 than purposes for which the reserves were intended, are the
1541 voting interests of the units subject to assessment to fund the
1542 reserves in question. Proxy questions relating to waiving or
1543 reducing the funding of reserves or using existing reserve funds
1544 for purposes other than purposes for which the reserves were
1545 intended must contain the following statement in capitalized,
1546 bold letters in a font size larger than any other used on the
1547 face of the proxy ballot: WAIVING OF RESERVES, IN WHOLE OR IN
1548 PART, OR ALLOWING ALTERNATIVE USES OF EXISTING RESERVES MAY
1549 RESULT IN UNIT OWNER LIABILITY FOR PAYMENT OF UNANTICIPATED
1550 SPECIAL ASSESSMENTS REGARDING THOSE ITEMS.
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1551 (g) Structural integrity reserve study.—
1552 1. A residential condominium association must have a
1553 structural integrity reserve study completed at least every 10
1554 years after the condominium's creation for each building on the
1555 condominium property that is three stories or higher in height,
1556 as determined by the Florida Building Code, which includes, at a
1557 minimum, a study of the following items as related to the
1558 structural integrity and safety of the building:
1559 a. Roof.
1560 b. Structure, including load-bearing walls and other
1561 primary structural members and primary structural systems as
1562 those terms are defined in s. 627.706.
1563 c. Fireproofing and fire protection systems.
1564 d. Plumbing.
1565 e. Electrical systems.
1566 f. Waterproofing and exterior painting.
1567 g. Windows and exterior doors.
1568 h. Any other item that has a deferred maintenance expense
1569 or replacement cost that exceeds $10,000 and the failure to
1570 replace or maintain such item negatively affects the items
1571 listed in sub-subparagraphs a.-g., as determined by the visual
1572 inspection portion of the structural integrity reserve study.
1573 2. A structural integrity reserve study is based on a
1574 visual inspection of the condominium property. A structural
1575 integrity reserve study may be performed by any person qualified
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1576 to perform such study. However, the visual inspection portion of
1577 the structural integrity reserve study must be performed or
1578 verified by an engineer licensed under chapter 471, an architect
1579 licensed under chapter 481, or a person certified as a reserve
1580 specialist or professional reserve analyst by the Community
1581 Associations Institute or the Association of Professional
1582 Reserve Analysts.
1583 3. At a minimum, a structural integrity reserve study must
1584 identify each item of the condominium property being visually
1585 inspected, state the estimated remaining useful life and the
1586 estimated replacement cost or deferred maintenance expense of
1587 each item of the condominium property being visually inspected,
1588 and provide a reserve funding schedule with a recommended annual
1589 reserve amount that achieves the estimated replacement cost or
1590 deferred maintenance expense of each item of condominium
1591 property being visually inspected by the end of the estimated
1592 remaining useful life of the item. The structural integrity
1593 reserve study may recommend that reserves do not need to be
1594 maintained for any item for which an estimate of useful life and
1595 an estimate of replacement cost cannot be determined, or the
1596 study may recommend a deferred maintenance expense amount for
1597 such item. The structural integrity reserve study may recommend
1598 that reserves for replacement costs do not need to be maintained
1599 for any item with an estimated remaining useful life of greater
1600 than 25 years, but the study may recommend a deferred
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1601 maintenance expense amount for such item.
1602 4. This paragraph does not apply to buildings less than
1603 three stories in height; single-family, two-family, or three-
1604 family dwellings with three or fewer habitable stories above
1605 ground; any portion or component of a building that has not been
1606 submitted to the condominium form of ownership; or any portion
1607 or component of a building that is maintained by a party other
1608 than the association.
1609 5. Before a developer turns over control of an association
1610 to unit owners other than the developer, the developer must have
1611 a turnover inspection report in compliance with s. 718.301(4)(p)
1612 and (q) for each building on the condominium property that is
1613 three stories or higher in height.
1614 6. Associations existing on or before July 1, 2022, which
1615 are controlled by unit owners other than the developer, must
1616 have a structural integrity reserve study completed by December
1617 31, 2024, for each building on the condominium property that is
1618 three stories or higher in height. An association that is
1619 required to complete a milestone inspection in accordance with
1620 s. 553.899 on or before December 31, 2026, may complete the
1621 structural integrity reserve study simultaneously with the
1622 milestone inspection. In no event may the structural integrity
1623 reserve study be completed after December 31, 2026.
1624 7. If the milestone inspection required by s. 553.899, or
1625 an inspection completed for a similar local requirement, was
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1626 performed within the past 5 years and meets the requirements of
1627 this paragraph, such inspection may be used in place of the
1628 visual inspection portion of the structural integrity reserve
1629 study.
1630 8. If the officers or directors of an association
1631 willfully and knowingly fail to complete a structural integrity
1632 reserve study pursuant to this paragraph, such failure is a
1633 breach of an officer's and director's fiduciary relationship to
1634 the unit owners under s. 718.111(1).
1635 9. Within 45 days after receiving the structural integrity
1636 reserve study, the association must distribute a copy of the
1637 study to each unit owner or deliver to each unit owner a notice
1638 that the completed study is available for inspection and copying
1639 upon a written request. Distribution of a copy of the study or
1640 notice must be made by United States mail or personal delivery
1641 to the mailing address, property address, or any other address
1642 of the owner provided to fulfill the association's notice
1643 requirements under this chapter, or by electronic transmission
1644 to the e-mail address or facsimile number provided to fulfill
1645 the association's notice requirements to unit owners who
1646 previously consented to receive notice by electronic
1647 transmission.
1648 (q) Director or officer offenses.—
1649 1. A director or an officer charged by information or
1650 indictment with any of the following crimes must be removed from
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1651 office:
1652 a. Forgery, as provided in s. 831.01, of a ballot envelope
1653 or voting certificate used in a condominium association
1654 election.
1655 b. Theft, as provided in s. 812.014, or embezzlement
1656 involving the association's funds or property.
1657 c. Destruction of, or the refusal to allow inspection or
1658 copying of, an official record of a condominium association
1659 which is accessible to unit owners within the time periods
1660 required by general law, in furtherance of any crime. Such act
1661 constitutes tampering with physical evidence as provided in s.
1662 918.13.
1663 d. Obstruction of justice under chapter 843.
1664 2. The board shall fill the vacancy in accordance with
1665 paragraph (2)(d) a felony theft or embezzlement offense
1666 involving the association's funds or property must be removed
1667 from office, creating a vacancy in the office to be filled
1668 according to law until the end of the period of the suspension
1669 or the end of the director's term of office, whichever occurs
1670 first. While such director or officer has such criminal charge
1671 pending, he or she may not be appointed or elected to a position
1672 as a director or officer of any association and may not have
1673 access to the official records of any association, except
1674 pursuant to a court order. However, if the charges are resolved
1675 without a finding of guilt, the director or officer shall be
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1676 reinstated for the remainder of his or her term of office, if
1677 any.
1678 (r) Fraudulent voting activities relating to association
1679 elections; penalties.—
1680 1. A person who engages in the following acts of
1681 fraudulent voting activity relating to association elections
1682 commits a misdemeanor of the first degree, punishable as
1683 provided in s. 775.082 or s. 775.083:
1684 a. Willfully and falsely swearing to or affirming an oath
1685 or affirmation, or willfully procuring another person to falsely
1686 swear to or affirm an oath or affirmation, in connection with or
1687 arising out of voting activities.
1688 b. Perpetrating or attempting to perpetrate, or aiding in
1689 the perpetration of, fraud in connection with a vote cast, to be
1690 cast, or attempted to be cast.
1691 c. Preventing a member from voting or preventing a member
1692 from voting as he or she intended by fraudulently changing or
1693 attempting to change a ballot, ballot envelope, vote, or voting
1694 certificate of the member.
1695 d. Menacing, threatening, or using bribery or any other
1696 corruption to attempt, directly or indirectly, to influence,
1697 deceive, or deter a member when the member is voting.
1698 e. Giving or promising, directly or indirectly, anything
1699 of value to another member with the intent to buy the vote of
1700 that member or another member or to corruptly influence that
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1701 member or another member in casting his or her vote. This sub -
1702 subparagraph does not apply to any food served which is to be
1703 consumed at an election rally or a meeting or to any item of
1704 nominal value which is used as an election advertisement,
1705 including a campaign message designed to be worn by a member.
1706 f. Using or threatening to use, directly or indirectly,
1707 force, violence, or intimidation or any tactic of coercion or
1708 intimidation to induce or compel a member to vote or refra in
1709 from voting in an election or on a particular ballot measure.
1710 2. Each of the following acts constitutes a misdemeanor of
1711 the first degree, punishable as provided in s. 775.082 or s.
1712 775.083:
1713 a. Knowingly aiding, abetting, or advising a person in the
1714 commission of a fraudulent voting activity related to
1715 association elections.
1716 b. Agreeing, conspiring, combining, or confederating with
1717 at least one other person to commit a fraudulent voting activity
1718 related to association elections.
1719 c. Having knowledge of a fraudulent voting activity
1720 related to association elections and giving any aid to the
1721 offender with intent that the offender avoid or escape
1722 detection, arrest, trial, or punishment. This sub-subparagraph
1723 does not apply to a licensed attorney giving legal advice to a
1724 client.
1725 Section 9. Subsection (5) of section 718.113, Florida
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1726 Statutes, is amended to read:
1727 718.113 Maintenance; limitation upon improvement; display
1728 of flag; hurricane shutters and protection; display of religious
1729 decorations.—
1730 (5) To protect the health, safety, and welfare of the
1731 people of the state and to ensure uniformity and consistency in
1732 the hurricane protections installed by condominium associations
1733 and unit owners, this subsection applies to all residential and
1734 mixed-use condominiums in the state, regardless of when the
1735 condominium is created pursuant to the declaration of
1736 condominium. Each board of administration of a residential
1737 condominium or mixed-use condominium must shall adopt hurricane
1738 protection shutter specifications for each building within each
1739 condominium operated by the association which may shall include
1740 color, style, and other factors deemed relevant by the board.
1741 All specifications adopted by the board must comply with the
1742 applicable building code. The installation, maintenance, repair,
1743 replacement, and operation of hurricane protection in accordance
1744 with this subsection is not considered a material alteration or
1745 substantial addition to the common elements or association
1746 property within the meaning of this section.
1747 (a) The board may, subject to s. 718.3026 and the approval
1748 of a majority of voting interests of the residential condominium
1749 or mixed-use condominium, install or require that unit owners
1750 install hurricane shutters, impact glass, code-compliant windows
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1751 or doors, or other types of code-compliant hurricane protection
1752 that complies comply with or exceeds exceed the applicable
1753 building code. A vote of the unit owners to require the
1754 installation of hurricane protection must be set forth in a
1755 certificate attesting to such vote and include the date that the
1756 hurricane protection must be installed. The board must record
1757 the certificate in the public records of the county in which the
1758 condominium is located. Once the certificate is recorded, the
1759 board must mail or hand deliver a copy of the recorded
1760 certificate to the unit owners at the owners' addresses, as
1761 reflected in the records of the association. The board may
1762 provide to unit owners who previously consented to receive
1763 notice by electronic transmission a copy of the recorded
1764 certificate by electronic transmission. The failure to record
1765 the certificate or send a copy of the recorded certificate to
1766 the unit owners does not affect the validity or enforceability
1767 of the vote of the unit owners. However, A vote of the unit
1768 owners under this paragraph is not required if the installation,
1769 maintenance, repair, and replacement of the hurricane shutters,
1770 impact glass, code-compliant windows or doors, or other types of
1771 code-compliant hurricane protection, or any exterior windows,
1772 doors, or other apertures protected by the hurricane protection,
1773 is are the responsibility of the association pursuant to the
1774 declaration of condominium as originally recorded or as amended,
1775 or if the unit owners are required to install hurricane
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1776 protection pursuant to the declaration of condominium as
1777 originally recorded or as amended. If hurricane protection or
1778 laminated glass or window film architecturally designed to
1779 function as hurricane protection that complies with or exceeds
1780 the current applicable building code has been previously
1781 installed, the board may not install the same type of hurricane
1782 shutters, impact glass, code-compliant windows or doors, or
1783 other types of code-compliant hurricane protection or require
1784 that unit owners install the same type of hurricane protection
1785 unless the installed hurricane protection has reached the end of
1786 its useful life or unless it is necessary to prevent damage to
1787 the common elements or to a unit except upon approval by a
1788 majority vote of the voting interests.
1789 (b) The association is responsible for the maintenance,
1790 repair, and replacement of the hurricane shutters, impact glass,
1791 code-compliant windows or doors, or other types of code -
1792 compliant hurricane protection authorized by this subsection if
1793 such property is the responsibility of the association pursuant
1794 to the declaration of condominium. If the hurricane shutters,
1795 impact glass, code-compliant windows or doors, or other types of
1796 code-compliant hurricane protection are the responsibility of
1797 the unit owners pursuant to the declaration of condominium, the
1798 maintenance, repair, and replacement of such items are the
1799 responsibility of the unit owner.
1800 (b)(c) The board may operate shutters, impact glass, code-
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1801 compliant windows or doors, or other types of code-compliant
1802 hurricane protection installed pursuant to this subsection
1803 without permission of the unit owners only if such operation is
1804 necessary to preserve and protect the condominium property or
1805 and association property. The installation, replacement,
1806 operation, repair, and maintenance of such shutters, impact
1807 glass, code-compliant windows or doors, or other types of code-
1808 compliant hurricane protection in accordance with the procedures
1809 set forth in this paragraph are not a material alteration to the
1810 common elements or association property within the meaning of
1811 this section.
1812 (c)(d) Notwithstanding any other provision in the
1813 residential condominium or mixed-use condominium documents, if
1814 approval is required by the documents, a board may not refuse to
1815 approve the installation or replacement of hurricane shutters,
1816 impact glass, code-compliant windows or doors, or other types of
1817 code-compliant hurricane protection by a unit owner which
1818 conforms conforming to the specifications adopted by the board.
1819 However, a board may require the unit owner to adhere to an
1820 existing unified building scheme regarding the external
1821 appearance of the condominium.
1822 (d) A unit owner is not responsible for the cost of any
1823 removal or reinstallation of hurricane protection, including
1824 exterior windows, doors, or other apertures, if its removal is
1825 necessary for the maintenance, repair, or replacement of other
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1826 condominium property or association property for which the
1827 association is responsible. The board shall determine if the
1828 removal or reinstallation of hurricane protection must be
1829 completed by the unit owner or the association. If such removal
1830 or reinstallation is completed by the association, the costs
1831 incurred by the association may not be charged to the unit
1832 owner. If such removal or reinstallation is completed by the
1833 unit owner, the association must reimburse the unit owner for
1834 the cost of the removal or reinstallation or the association
1835 must apply a credit toward future assessments in the amount of
1836 the unit owner's cost to remove or reinstall the hurricane
1837 protection.
1838 (e) If the removal or reinstallation of hurricane
1839 protection, including exterior windows, doors, or other
1840 apertures, is the responsibility of the unit owner and the
1841 association completes such removal or reinstallation and then
1842 charges the unit owner for such removal or reinstallation, such
1843 charges are enforceable as an assessment and may be collected in
1844 the manner provided under s. 718.116.
1845 Section 10. Paragraph (e) of subsection (1) of section
1846 718.115, Florida Statutes, is amended to read:
1847 718.115 Common expenses and common surplus.—
1848 (1)
1849 (e)1. Except as provided in s. 718.113(5)(d), The expense
1850 of installation, replacement, operation, repair, and maintenance
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1851 of hurricane shutters, impact glass, code-compliant windows or
1852 doors, or other types of code-compliant hurricane protection by
1853 the board pursuant to s. 718.113(5) constitutes a common expense
1854 and shall be collected as provided in this section if the
1855 association is responsible for the maintenance, repair, and
1856 replacement of the hurricane shutters, impact glass, code-
1857 compliant windows or doors, or other types of code-compliant
1858 hurricane protection pursuant to the declaration of condominium.
1859 However, if the installation of maintenance, repair, and
1860 replacement of the hurricane shutters, impact glass, code-
1861 compliant windows or doors, or other types of code-compliant
1862 hurricane protection is are the responsibility of the unit
1863 owners pursuant to the declaration of condominium or a vote of
1864 the unit owners under s. 718.113(5), the cost of the
1865 installation of the hurricane shutters, impact glass, code-
1866 compliant windows or doors, or other types of code-compliant
1867 hurricane protection by the association is not a common expense
1868 and must shall be charged individually to the unit owners based
1869 on the cost of installation of the hurricane shutters, impact
1870 glass, code-compliant windows or doors, or other types of code-
1871 compliant hurricane protection appurtenant to the unit. The
1872 costs of installation of hurricane protection are enforceable as
1873 an assessment and may be collected in the manner provided under
1874 s. 718.116.
1875 2. Notwithstanding s. 718.116(9), and regardless of
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1876 whether or not the declaration requires the association or unit
1877 owners to install, maintain, repair, or replace hurricane
1878 shutters, impact glass, code-compliant windows or doors, or
1879 other types of code-compliant hurricane protection, the a unit
1880 owner of a unit in which who has previously installed hurricane
1881 shutters in accordance with s. 718.113(5) that comply with the
1882 current applicable building code shall receive a credit when the
1883 shutters are installed; a unit owner who has previously
1884 installed impact glass or code-compliant windows or doors that
1885 comply with the current applicable building code shall r eceive a
1886 credit when the impact glass or code-compliant windows or doors
1887 are installed; and a unit owner who has installed other types of
1888 code-compliant hurricane protection that complies comply with
1889 the current applicable building code has been installed is
1890 excused from any assessment levied by the association or shall
1891 receive a credit if when the same type of other code-compliant
1892 hurricane protection is installed by the association. A credit
1893 is applicable if the installation of hurricane protection is for
1894 all other units that do not have hurricane protection and the
1895 cost of such installation is funded by the association's budget,
1896 including the use of reserve funds. The credit must be equal to
1897 the amount that the unit owner would have been assessed to
1898 install the hurricane protection, and the credit shall be equal
1899 to the pro rata portion of the assessed installation cost
1900 assigned to each unit. However, such unit owner remains
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1901 responsible for the pro rata share of expenses for hurricane
1902 shutters, impact glass, code-compliant windows or doors, or
1903 other types of code-compliant hurricane protection installed on
1904 common elements and association property by the board pursuant
1905 to s. 718.113(5) and remains responsible for a pro rata share of
1906 the expense of the replacement, operation, repair, and
1907 maintenance of such shutters, impact glass, code-compliant
1908 windows or doors, or other types of code-compliant hurricane
1909 protection. Expenses for the installation, replacement,
1910 operation, repair, or maintenance of hurricane prot ection on
1911 common elements and association property are common expenses.
1912 Section 11. Paragraph (a) of subsection (4) of section
1913 718.121, Florida Statutes, is amended to read:
1914 718.121 Liens.—
1915 (4)(a) If an association sends out an invoice for
1916 assessments or a unit's statement of the account described in s.
1917 718.111(12)(a)11.c. s. 718.111(12)(a)11.b., the invoice for
1918 assessments or the unit's statement of account must be delivered
1919 to the unit owner by first-class United States mail or by
1920 electronic transmission to the unit owner's e-mail address
1921 maintained in the association's official records.
1922 Section 12. Section 718.1224, Florida Statutes, is amended
1923 to read:
1924 718.1224 Prohibition against SLAPP suits; other prohibited
1925 actions.—
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1926 (1) It is the intent of the Legislature to protect the
1927 right of condominium unit owners to exercise their rights to
1928 instruct their representatives and petition for redress of
1929 grievances before their condominium association and the various
1930 governmental entities of this state as protected by the First
1931 Amendment to the United States Constitution and s. 5, Art. I of
1932 the State Constitution. The Legislature recognizes that
1933 strategic lawsuits against public participation, or "SLAPP
1934 suits," as they are typically referred to, have occurred when
1935 association members are sued by condominium associations,
1936 individuals, business entities, or governmental entities arising
1937 out of a condominium unit owner's appearance and presentation
1938 before the board of the condominium association or a
1939 governmental entity on matters related to the condominium
1940 association. However, it is the public policy of this state that
1941 condominium associations, governmental entities, business
1942 organizations, and individuals not engage in SLAPP suits,
1943 because such actions are inconsistent with the right of
1944 condominium unit owners to participate in their condominium
1945 association and in the state's institutions of government.
1946 Therefore, the Legislature finds and declares that prohibiting
1947 such lawsuits by condominium associations, governmental
1948 entities, business entities, and individuals against condominium
1949 unit owners who address matters concerning their condominium
1950 association will preserve this fundamental state policy,
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1951 preserve the constitutional rights of condominium unit own ers,
1952 and ensure the continuation of representative government in this
1953 state, and ensure unit owner participation in condominium
1954 associations. It is the intent of the Legislature that such
1955 lawsuits be expeditiously disposed of by the courts. As used in
1956 this subsection, the term "governmental entity" means the state,
1957 including the executive, legislative, and judicial branches of
1958 government; law enforcement agencies; the independent
1959 establishments of the state, counties, municipalities,
1960 districts, authorities, boards, or commissions; or any agencies
1961 of these branches that are subject to chapter 286.
1962 (2) A condominium association, governmental entity,
1963 business organization, or individual in this state may not file
1964 or cause to be filed through its employees or agents any
1965 lawsuit, cause of action, claim, cross-claim, or counterclaim
1966 against a condominium unit owner without merit and solely
1967 because such condominium unit owner has exercised the right to
1968 instruct his or her representatives or the right to petition for
1969 redress of grievances before the condominium association or the
1970 various governmental entities of this state, as protected by the
1971 First Amendment to the United States Constitution and s. 5, Art.
1972 I of the State Constitution.
1973 (3) It is unlawful for a condominium association to fine,
1974 discriminatorily increase a unit owner's assessments,
1975 discriminatorily decrease services to a unit owner, or bring or
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1976 threaten to bring an action for possession or other civil
1977 action, including a defamation, libel, slander, or tortious
1978 interference action, based on conduct described in this
1979 subsection. In order for the unit owner to raise the defense of
1980 retaliatory conduct, the unit owner must have acted in good
1981 faith and not for any improper purposes, such as to harass or to
1982 cause unnecessary delay or for frivolous purpose or needless
1983 increase in the cost of litigation. Examples of conduct for
1984 which a condominium association, an officer, a director, or an
1985 agent of an association may not retaliate include, but are not
1986 limited to, situations in which:
1987 (a) The unit owner has in good faith complained to a
1988 governmental agency charged with responsibility for enforcement
1989 of a building, housing, or health code of a suspected violation
1990 applicable to the condominium;
1991 (b) The unit owner has organized, encouraged, or
1992 participated in a unit owners' organization;
1993 (c) The unit owner submitted information or filed a
1994 complaint alleging criminal violations or violations of this
1995 chapter or the rules of the division with the division, the
1996 Office of the Condominium Ombudsman, a law enforcement agency, a
1997 state attorney, the Attorney General, or any other governmental
1998 agency;
1999 (d) The unit owner has exercised his or her rights under
2000 this chapter;
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2001 (e) The unit owner has complained to the association or
2002 any of the association's representatives for the failure to
2003 comply with this chapter or chapter 617; or
2004 (f) The unit owner has made public statements critical of
2005 the operation or management of the association.
2006 (4) Evidence of retaliatory conduct may be raised by the
2007 unit owner as a defense in any action brought against him or her
2008 for possession.
2009 (5)(3) A condominium unit owner sued by a condominium
2010 association, governmental entity, business organization, or
2011 individual in violation of this section has a right to an
2012 expeditious resolution of a claim that the suit is in violation
2013 of this section. A condominium unit owner may petition the court
2014 for an order dismissing the action or granting final judgment in
2015 favor of that condominium unit owner. The petitioner may file a
2016 motion for summary judgment, together with supplemental
2017 affidavits, seeking a determination that the condominium
2018 association's, governmental entity's, business organization's,
2019 or individual's lawsuit has been brought in violation of this
2020 section. The condominium association, governmental entity,
2021 business organization, or individual shall thereafter file its
2022 response and any supplemental affidavits. As soon as
2023 practicable, the court shall set a hearing on the petitioner's
2024 motion, which shall be held at the earliest possible time after
2025 the filing of the condominium association's, governmental
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2026 entity's, business organization's, or individual's response. The
2027 court may award the condominium unit owner sued by the
2028 condominium association, governmental entity, business
2029 organization, or individual actual damages arising from the
2030 condominium association's, governmental entity's, individual's,
2031 or business organization's violation of this section. A court
2032 may treble the damages awarded to a prevailing condominium unit
2033 owner and shall state the basis for the treble damages award in
2034 its judgment. The court shall award the prevailing party
2035 reasonable attorney's fees and costs incurred in connection with
2036 a claim that an action was filed in violation of this section.
2037 (6)(4) Condominium associations may not expend association
2038 funds in prosecuting a SLAPP suit against a condominium unit
2039 owner.
2040 (7) Condominium associations may not expend association
2041 funds in support of a defamation, libel, slander, or tortious
2042 interference action against a unit owner or any other claim
2043 against a unit owner based on conduct described in subsection
2044 (3).
2045 Section 13. Paragraph (p) of subsection (4) of section
2046 718.301, Florida Statutes, is amended to read:
2047 718.301 Transfer of association control; claims of defect
2048 by association.—
2049 (4) At the time that unit owners other than the developer
2050 elect a majority of the members of the board of administration
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2051 of an association, the developer shall relinquish control of the
2052 association, and the unit owners shall accept control.
2053 Simultaneously, or for the purposes of paragraph (c) not more
2054 than 90 days thereafter, the developer shall deliver to the
2055 association, at the developer's expense, all property of the
2056 unit owners and of the association which is held or controlled
2057 by the developer, including, but not limited to, the following
2058 items, if applicable, as to each condominium operated by the
2059 association:
2060 (p) Notwithstanding when the certificate of occupancy was
2061 issued or the height of the building, a turnover inspection
2062 report included in the official records, under seal of an
2063 architect or engineer authorized to practice in this state or a
2064 person certified as a reserve specialist or professional reserve
2065 analyst by the Community Associations Institute or the
2066 Association of Professional Reserve Analysts, and consisting of
2067 a structural integrity reserve study attesting to required
2068 maintenance, condition, useful life, and replacement costs of
2069 the following applicable condominium property:
2070 1. Roof.
2071 2. Structure, including load-bearing walls and primary
2072 structural members and primary structural systems as those terms
2073 are defined in s. 627.706.
2074 3. Fireproofing and fire protection systems.
2075 4. Plumbing.
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2076 5. Electrical systems.
2077 6. Waterproofing and exterior painting.
2078 7. Windows and exterior doors.
2079 Section 14. Subsections (4) and (5) of section 718.3027,
2080 Florida Statutes, are amended to read:
2081 718.3027 Conflicts of interest.—
2082 (4) A director or an officer, or a relative of a director
2083 or an officer, who is a party to, or has an interest in, an
2084 activity that is a possible conflict of interest, as described
2085 in subsection (1), may attend the meeting at which the activity
2086 is considered by the board and is authorized to make a
2087 presentation to the board regarding the activity. After the
2088 presentation, the director or officer, and any or the relative
2089 of the director or officer, must leave the meeting during the
2090 discussion of, and the vote on, the activity. A director or an
2091 officer who is a party to, or has an interest in, the activity
2092 must recuse himself or herself from the vote. The attendance of
2093 a director or an officer with a possible conflict of interest at
2094 the meeting of the board is sufficient to constitute a quorum
2095 for the meeting and the vote in his or her absence on the
2096 proposed activity.
2097 (5) A contract entered into between a director or an
2098 officer, or a relative of a director or an officer, and the
2099 association, which is not a timeshare condominium association,
2100 that has not been properly disclosed as a conflict of interest
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2101 or potential conflict of interest as required by this section or
2102 s. 617.0832 s. 718.111(12)(g) is voidable and terminates upon
2103 the filing of a written notice terminating the contract with the
2104 board of directors which contains the consent of at least 20
2105 percent of the voting interests of the association.
2106 Section 15. Subsection (5) of section 718.303, Florida
2107 Statutes, is amended to read:
2108 718.303 Obligations of owners and occupants; remedies. —
2109 (5) An association may suspend the voting rights of a unit
2110 owner or member due to nonpayment of any fee, fine, or other
2111 monetary obligation due to the association which is more than
2112 $1,000 and more than 90 days delinquent. Proof of such
2113 obligation must be provided to the unit owner or member 30 days
2114 before such suspension takes effect. At least 90 days before an
2115 election, an association must notify a unit owner or member that
2116 his or her voting rights may be suspended due to a nonpayment of
2117 a fee or other monetary obligation. A voting interest or consent
2118 right allocated to a unit owner or member which has been
2119 suspended by the association shall be subtracted from the total
2120 number of voting interests in the association, which shall be
2121 reduced by the number of suspended voting interests when
2122 calculating the total percentage or number of all voting
2123 interests available to take or approve any action, and the
2124 suspended voting interests shall not be considered for any
2125 purpose, including, but not limited to, the percentage or number
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2126 of voting interests necessary to constitute a quorum, the
2127 percentage or number of voting interests required to conduct an
2128 election, or the percentage or number of voting interests
2129 required to approve an action under this chapter or pursuant to
2130 the declaration, articles of incorporation, or bylaws. The
2131 suspension ends upon full payment of all obligations currently
2132 due or overdue the association. The notice and hearing
2133 requirements under subsection (3) do not apply to a suspension
2134 imposed under this subsection.
2135 Section 16. Subsections (1) and (2) of section 718.501,
2136 Florida Statutes, are amended to read:
2137 718.501 Authority, responsibility, and duties of Division
2138 of Florida Condominiums, Timeshares, and Mobile Homes.—
2139 (1) The division may enforce and ensure compliance with
2140 this chapter and rules relating to the development,
2141 construction, sale, lease, ownership, operation, and management
2142 of residential condominium units and complaints related to the
2143 procedural completion of milestone inspections under s. 553.899.
2144 In performing its duties, the division has complete jurisdiction
2145 to investigate complaints and enforce compliance with respect t o
2146 associations that are still under developer control or the
2147 control of a bulk assignee or bulk buyer pursuant to part VII of
2148 this chapter and complaints against developers, bulk assignees,
2149 or bulk buyers involving improper turnover or failure to
2150 turnover, pursuant to s. 718.301. However, after turnover has
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2151 occurred, the division has jurisdiction to investigate
2152 complaints related only to financial issues relating to or
2153 concerning ss. 718.111(4), (13), (14), and (15) and
2154 718.112(2)(e), (f), and (i);, elections relating to or
2155 concerning ss. 718.112(2)(b), (d), (l), and (r), 718.128, and
2156 718.1265(1)(a);, and the maintenance of and unit owner access to
2157 association records relating to or concerning under s.
2158 718.111(12); the procedural aspects of meetings relating to or
2159 concerning s. 718.112(2)(b), (c), and (d); disclosure of
2160 conflicts of interest relating to or concerning ss.
2161 718.111(1)(a) and (3)(f), 718.112(2)(p) and (q), and 718.3027;
2162 the procedural completion of structural integrity reserve
2163 studies relating to or concerning under s. 718.112(2)(g); and
2164 any written inquiries by unit owners to the association relating
2165 to such matters.
2166 (a)1. The division may make necessary public or private
2167 investigations within or outside this state to determine whether
2168 any person has violated this chapter or any rule or order
2169 hereunder, to aid in the enforcement of this chapter, or to aid
2170 in the adoption of rules or forms.
2171 2. The division may submit any official written report,
2172 worksheet, or other related paper, or a duly certified copy
2173 thereof, compiled, prepared, drafted, or otherwise made by and
2174 duly authenticated by a financial examiner or analyst to be
2175 admitted as competent evidence in any hearing in which the
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2176 financial examiner or analyst is available for cross-examination
2177 and attests under oath that such documents were prepared as a
2178 result of an examination or inspection conducted pursuant to
2179 this chapter.
2180 (b) The division may require or permit any person to file
2181 a statement in writing, under oath or otherwise, as the division
2182 determines, as to the facts and circumstances concerning a
2183 matter to be investigated.
2184 (c) For the purpose of any investigation under this
2185 chapter, the division director or any officer or employee
2186 designated by the division director may administer oaths or
2187 affirmations, subpoena witnesses and compel their attendance,
2188 take evidence, and require the production of any matter which is
2189 relevant to the investigation, including the existence,
2190 description, nature, custody, condition, and location of any
2191 books, documents, or other tangible things and the identity and
2192 location of persons having knowledge of relevant facts or any
2193 other matter reasonably calculated to lead to the discovery of
2194 material evidence. Upon the failure by a person to obey a
2195 subpoena or to answer questions propounded by the investigating
2196 officer and upon reasonable notice to all affected persons, the
2197 division may apply to the circuit court for an order compelling
2198 compliance.
2199 (d) Notwithstanding any remedies available to unit owners
2200 and associations, if the division has reasonable cause to
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2201 believe that a violation of any provision of this chapter or
2202 related rule has occurred, the division may institute
2203 enforcement proceedings in its own name against any developer,
2204 bulk assignee, bulk buyer, association, officer, or member of
2205 the board of administration, or its assignees or agents, as
2206 follows:
2207 1. The division may permit a person whose conduct or
2208 actions may be under investigation to waive formal proceedings
2209 and enter into a consent proceeding whereby orders, rules, or
2210 letters of censure or warning, whether formal or informal, may
2211 be entered against the person.
2212 2. The division may issue an order requiring the
2213 developer, bulk assignee, bulk buyer, association, developer -
2214 designated officer, or developer-designated member of the board
2215 of administration, developer-designated assignees or agents,
2216 bulk assignee-designated assignees or agents, bulk buyer-
2217 designated assignees or agents, community association manager,
2218 or community association management firm to cease and desist
2219 from the unlawful practice and take such affirmative action as
2220 in the judgment of the division carry out the purposes of this
2221 chapter. If the division finds that a developer, bulk assignee,
2222 bulk buyer, association, officer, or member of the board of
2223 administration, or its assignees or agents, is violating or is
2224 about to violate any provision of this chapter, any rule adopted
2225 or order issued by the division, or any written agreement
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2226 entered into with the division, and presents an immediate danger
2227 to the public requiring an immediate final order, it may issue
2228 an emergency cease and desist order reciting with particularity
2229 the facts underlying such findings. The emergency cease and
2230 desist order is effective for 90 days. If the division begins
2231 nonemergency cease and desist proceedings, the emergency cease
2232 and desist order remains effective until the conclusion of the
2233 proceedings under ss. 120.569 and 120.57.
2234 3. If a developer, bulk assignee, or bulk buyer fails to
2235 pay any restitution determined by the division to be owed, plus
2236 any accrued interest at the highest rate permitted by law,
2237 within 30 days after expiration of any appellate time period of
2238 a final order requiring payment of restitution or the conclusion
2239 of any appeal thereof, whichever is later, the division must
2240 bring an action in circuit or county court on behalf of any
2241 association, class of unit owners, lessees, or purchasers for
2242 restitution, declaratory relief, injunctive relief, or any other
2243 available remedy. The division may also temporarily revoke its
2244 acceptance of the filing for the developer to which the
2245 restitution relates until payment of restitution is made.
2246 4. The division may petition the court for appointment of
2247 a receiver or conservator. If appointed, the receiver or
2248 conservator may take action to implement the court order to
2249 ensure the performance of the order and to remedy any breach
2250 thereof. In addition to all other means provided by law for the
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2251 enforcement of an injunction or temporary restraining order, the
2252 circuit court may impound or sequester the property of a party
2253 defendant, including books, papers, documents, and related
2254 records, and allow the examination and use of the property by
2255 the division and a court-appointed receiver or conservator.
2256 5. The division may apply to the circuit court for an
2257 order of restitution whereby the defendant in an action brought
2258 under subparagraph 4. is ordered to make restitution of those
2259 sums shown by the division to have been obtained by the
2260 defendant in violation of this chapter. At the option of the
2261 court, such restitution is payable to the conservator or
2262 receiver appointed under subparagraph 4. or directly to the
2263 persons whose funds or assets were obtained in violation of this
2264 chapter.
2265 6. The division may impose a civil penalty against a
2266 developer, bulk assignee, or bulk buyer, or association, or its
2267 assignee or agent, for any violation of this chapter or related
2268 rule. The division may impose a civil penalty individually
2269 against an officer or board member who willfully and knowingly
2270 violates this chapter, an adopted rule, or a final order of the
2271 division; may order the removal of such individual as an officer
2272 or from the board of administration or as an officer of the
2273 association; and may prohibit such individual from serving as an
2274 officer or on the board of a community association for a period
2275 of time. The term "willfully and knowingly" means that the
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2276 division informed the officer or board member that his or her
2277 action or intended action violates this chapter, a ru le adopted
2278 under this chapter, or a final order of the division and that
2279 the officer or board member refused to comply with the
2280 requirements of this chapter, a rule adopted under this chapter,
2281 or a final order of the division. The division, before
2282 initiating formal agency action under chapter 120, must afford
2283 the officer or board member an opportunity to voluntarily
2284 comply, and an officer or board member who complies within 10
2285 days is not subject to a civil penalty. A penalty may be imposed
2286 on the basis of each day of continuing violation, but the
2287 penalty for any offense may not exceed $5,000. The division
2288 shall adopt, by rule, penalty guidelines applicable to possible
2289 violations or to categories of violations of this chapter or
2290 rules adopted by the division. The guidelines must specify a
2291 meaningful range of civil penalties for each such violation of
2292 the statute and rules and must be based upon the harm caused by
2293 the violation, upon the repetition of the violation, and upon
2294 such other factors deemed relevant by the division. For example,
2295 the division may consider whether the violations were committed
2296 by a developer, bulk assignee, or bulk buyer, or owner-
2297 controlled association, the size of the association, and other
2298 factors. The guidelines must designate the possible mitigating
2299 or aggravating circumstances that justify a departure from the
2300 range of penalties provided by the rules. It is the legislative
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2301 intent that minor violations be distinguished from those which
2302 endanger the health, safety, or welfare of the condominium
2303 residents or other persons and that such guidelines provide
2304 reasonable and meaningful notice to the public of likely
2305 penalties that may be imposed for proscribed conduct. This
2306 subsection does not limit the ability of the division to
2307 informally dispose of administrative actions or complaints by
2308 stipulation, agreed settlement, or consent order. All amounts
2309 collected shall be deposited with the Chief Financial Officer to
2310 the credit of the Division of Florida Condominiums, Timeshares,
2311 and Mobile Homes Trust Fund. If a developer, bulk assignee, or
2312 bulk buyer fails to pay the civil penalty and the amount deemed
2313 to be owed to the association, the division shall issue an order
2314 directing that such developer, bulk assignee, or bulk buyer
2315 cease and desist from further operation until such time as the
2316 civil penalty is paid or may pursue enforcement of the penalty
2317 in a court of competent jurisdiction. If an association fails to
2318 pay the civil penalty, the division shall pursue enforcement in
2319 a court of competent jurisdiction, and the order imposing the
2320 civil penalty or the cease and desist order is not effective
2321 until 20 days after the date of such order. Any action commenced
2322 by the division shall be brought in the county in which the
2323 division has its executive offices or in the county in which
2324 where the violation occurred.
2325 7. If a unit owner presents the division with proof that
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2326 the unit owner has requested access to official records in
2327 writing by certified mail, and that after 10 days the unit owner
2328 again made the same request for access to official records in
2329 writing by certified mail, and that more than 10 days has
2330 elapsed since the second request and the association has still
2331 failed or refused to provide access to official records as
2332 required by this chapter, the division shall issue a subpoena
2333 requiring production of the requested records at the location in
2334 which where the records are kept pursuant to s. 718.112. Upon
2335 receipt of the records, the division must provide to the unit
2336 owner who was denied access to such records the produced
2337 official records without charge.
2338 8. In addition to subparagraph 6., the division may seek
2339 the imposition of a civil penalty through the circuit court for
2340 any violation for which the division may issue a notice to show
2341 cause under paragraph (r). The civil penalty shall be at least
2342 $500 but no more than $5,000 for each violation. The court may
2343 also award to the prevailing party court costs and reasonable
2344 attorney fees and, if the division prevails, may also award
2345 reasonable costs of investigation.
2346 (e) The division may prepare and disseminate a prospectus
2347 and other information to assist prospective owners, purchasers,
2348 lessees, and developers of residential condominiums in assessing
2349 the rights, privileges, and duties pertaining thereto.
2350 (f) The division may adopt rules to administer and enforce
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2351 this chapter.
2352 (g) The division shall establish procedures for providing
2353 notice to an association and the developer, bulk assignee, or
2354 bulk buyer during the period in which the developer , bulk
2355 assignee, or bulk buyer controls the association if the division
2356 is considering the issuance of a declaratory statement with
2357 respect to the declaration of condominium or any related
2358 document governing such condominium community.
2359 (h) The division shall furnish each association that pays
2360 the fees required by paragraph (2)(a) a copy of this chapter, as
2361 amended, and the rules adopted thereto on an annual basis.
2362 (i) The division shall annually provide each association
2363 with a summary of declaratory statements and formal legal
2364 opinions relating to the operations of condominiums which were
2365 rendered by the division during the previous year.
2366 (j) The division shall provide training and educational
2367 programs for condominium association board members and uni t
2368 owners. The training may, in the division's discretion, include
2369 web-based electronic media and live training and seminars in
2370 various locations throughout the state. The division may review
2371 and approve education and training programs for board members
2372 and unit owners offered by providers and shall maintain a
2373 current list of approved programs and providers and make such
2374 list available to board members and unit owners in a reasonable
2375 and cost-effective manner. The division shall provide to
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2376 directors of the board of administration at no charge the
2377 educational curriculum required under s. 718.112(2)(d) and issue
2378 a certificate of satisfactory completion, including when the
2379 required educational curriculum is provided by a division-
2380 approved condominium education provider.
2381 (k) The division shall maintain a toll-free telephone
2382 number accessible to condominium unit owners.
2383 (l) The division shall develop a program to certify both
2384 volunteer and paid mediators to provide mediation of condominium
2385 disputes. The division shall provide, upon request, a list of
2386 such mediators to any association, unit owner, or other
2387 participant in alternative dispute resolution proceedings under
2388 s. 718.1255 requesting a copy of the list. The division shall
2389 include on the list of volunteer mediators only the names of
2390 persons who have received at least 20 hours of training in
2391 mediation techniques or who have mediated at least 20 disputes.
2392 In order to become initially certified by the division, paid
2393 mediators must be certified by the Supreme Court to mediate
2394 court cases in county or circuit courts. However, the division
2395 may adopt, by rule, additional factors for the certification of
2396 paid mediators, which must be related to experience, education,
2397 or background. Any person initially certified as a paid mediator
2398 by the division must, in order to continue to be certified,
2399 comply with the factors or requirements adopted by rule.
2400 (m) If a complaint is made, the division must conduct its
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2401 inquiry with due regard for the interests of the affected
2402 parties. Within 30 days after receipt of a complaint, the
2403 division shall acknowledge the complaint in writing and notify
2404 the complainant whether the complaint is within the jurisdiction
2405 of the division and whether additional information is needed by
2406 the division from the complainant. The division shall conduct
2407 its investigation and, within 90 days after receipt of the
2408 original complaint or of timely requested additional
2409 information, take action upon the complaint. However, the
2410 failure to complete the investigation within 90 days does not
2411 prevent the division from continuing the investigation,
2412 accepting or considering evidence obtained or received after 90
2413 days, or taking administrative action if reasonable cause exists
2414 to believe that a violation of this chapter or a rule has
2415 occurred. If an investigation is not completed within the time
2416 limits established in this paragraph, the division shall, on a
2417 monthly basis, notify the complainant in writing of the status
2418 of the investigation. When reporting its action to th e
2419 complainant, the division shall inform the complainant of any
2420 right to a hearing under ss. 120.569 and 120.57. The division
2421 may adopt rules regarding the submission of a complaint against
2422 an association.
2423 (n) Condominium association directors, officers, and
2424 employees; condominium developers; bulk assignees, bulk buyers,
2425 and community association managers; and community association
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2426 management firms have an ongoing duty to reasonably cooperate
2427 with the division in any investigation under this section. The
2428 division shall refer to local law enforcement authorities any
2429 person whom the division believes has altered, destroyed,
2430 concealed, or removed any record, document, or thing required to
2431 be kept or maintained by this chapter with the purpose to impair
2432 its verity or availability in the department's investigation.
2433 The division shall refer to local law enforcement authorities
2434 any person whom the division believes has engaged in fraud,
2435 theft, embezzlement, or other criminal activity or when the
2436 division has cause to believe that fraud, theft, embezzlement,
2437 or other criminal activity has occurred.
2438 (o) The division director or any officer or employee of
2439 the division and the condominium ombudsman or any employee of
2440 the Office of the Condominium Ombudsman may attend and observe
2441 any meeting of the board of administration or unit owner
2442 meeting, including any meeting of a subcommittee or special
2443 committee, which is open to members of the association for the
2444 purpose of performing the duties of the division or the Office
2445 of the Condominium Ombudsman under this chapter.
2446 (p)(o) The division may:
2447 1. Contract with agencies in this state or other
2448 jurisdictions to perform investigative functions; or
2449 2. Accept grants-in-aid from any source.
2450 (q)(p) The division shall cooperate with similar agencies
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2451 in other jurisdictions to establish uniform filing procedures
2452 and forms, public offering statements, advertising standards,
2453 and rules and common administrative practices.
2454 (r)(q) The division shall consider notice to a developer,
2455 bulk assignee, or bulk buyer to be complete when it is delivered
2456 to the address of the developer, bulk assignee, or bulk buyer
2457 currently on file with the division.
2458 (s)(r) In addition to its enforcement authority, the
2459 division may issue a notice to show cause, which must provide
2460 for a hearing, upon written request, in accordance with chapter
2461 120.
2462 (t) The division shall routinely conduct random audits of
2463 condominium associations to determine compliance with the
2464 website or application requirements for official records under
2465 s. 718.111(12)(g).
2466 (u)(s) The division shall submit to the Governor, the
2467 President of the Senate, the Speaker of the House of
2468 Representatives, and the chairs of the legislative
2469 appropriations committees an annual report that includes , but
2470 need not be limited to, the number of training programs provided
2471 for condominium association board members and unit owners, the
2472 number of complaints received by type, the number and percent of
2473 complaints acknowledged in writing within 30 days and the number
2474 and percent of investigations acted upon within 90 days in
2475 accordance with paragraph (m), and the number of investigations
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2476 exceeding the 90-day requirement. The annual report must also
2477 include an evaluation of the division's core business processes
2478 and make recommendations for improvements, including statutory
2479 changes. The report shall be submitted by September 30 following
2480 the end of the fiscal year.
2481 (2)(a) Each condominium association that which operates
2482 more than two units shall pay to the division an annual fee in
2483 the amount of $4 for each residential unit in condominiums
2484 operated by the association. The annual fee shall be filed
2485 together with the annual certification described in paragraph
2486 (c). If the fee is not paid by March 1, the association shall be
2487 assessed a penalty of 10 percent of the amount due, and the
2488 association will not have standing to maintain or defend any
2489 action in the courts of this state until the amount due, plus
2490 any penalty, is paid.
2491 (b) All fees shall be deposited in the Division of Florida
2492 Condominiums, Timeshares, and Mobile Homes Trust Fund as
2493 provided by law.
2494 (c) On the certification form provided by the division,
2495 the directors of the association shall certify that each
2496 director of the association has completed the written
2497 certification and educational certificate requirements in s.
2498 718.112(2)(d)4.b.
2499 Section 17. Subsection (2) of section 718.5011, Florida
2500 Statutes, is amended to read:
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2501 718.5011 Ombudsman; appointment; administration.—
2502 (2) The secretary of the Department of Business and
2503 Professional Regulation Governor shall appoint the ombudsman.
2504 The ombudsman must be an attorney admitted to practice before
2505 the Florida Supreme Court and shall serve at the pleasure of the
2506 Governor. A vacancy in the office shall be filled in the same
2507 manner as the original appointment. An officer or full-time
2508 employee of the ombudsman's office may not actively engage in
2509 any other business or profession that directly or indirectly
2510 relates to or conflicts with his or her work in the ombudsman's
2511 office; serve as the representative of any political party,
2512 executive committee, or other governing body of a political
2513 party; serve as an executive, officer, or employee of a
2514 political party; receive remuneration for activities on behalf
2515 of any candidate for public office; or engage in soliciting
2516 votes or other activities on behalf of a candidate for public
2517 office. The ombudsman or any employee of his or her office may
2518 not become a candidate for election to public office unless he
2519 or she first resigns from his or her office or employment.
2520 Section 18. Paragraph (k) of subsection (1) of section
2521 719.106, Florida Statutes, is amended to read:
2522 719.106 Bylaws; cooperative ownership.—
2523 (1) MANDATORY PROVISIONS.—The bylaws or other cooperative
2524 documents shall provide for the following, and if they do not,
2525 they shall be deemed to include the following:
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2526 (k) Structural integrity reserve study.—
2527 1. A residential cooperative association must have a
2528 structural integrity reserve study completed at least every 10
2529 years for each building on the cooperative property that is
2530 three stories or higher in height, as determined by the Florida
2531 Building Code, that includes, at a minimum, a study of the
2532 following items as related to the structural integrity and
2533 safety of the building:
2534 a. Roof.
2535 b. Structure, including load-bearing walls and other
2536 primary structural members and primary structural systems as
2537 those terms are defined in s. 627.706.
2538 c. Fireproofing and fire protection systems.
2539 d. Plumbing.
2540 e. Electrical systems.
2541 f. Waterproofing and exterior painting.
2542 g. Windows and exterior doors.
2543 h. Any other item that has a deferred maintenance expense
2544 or replacement cost that exceeds $10,000 and the failure to
2545 replace or maintain such item negatively affects the items
2546 listed in sub-subparagraphs a.-g., as determined by the visual
2547 inspection portion of the structural integrity reserve study.
2548 2. A structural integrity reserve study is based on a
2549 visual inspection of the cooperative property. A structu ral
2550 integrity reserve study may be performed by any person qualified
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2551 to perform such study. However, the visual inspection portion of
2552 the structural integrity reserve study must be performed or
2553 verified by an engineer licensed under chapter 471, an architect
2554 licensed under chapter 481, or a person certified as a reserve
2555 specialist or professional reserve analyst by the Community
2556 Associations Institute or the Association of Professional
2557 Reserve Analysts.
2558 3. At a minimum, a structural integrity reserve stud y must
2559 identify each item of the cooperative property being visually
2560 inspected, state the estimated remaining useful life and the
2561 estimated replacement cost or deferred maintenance expense of
2562 each item of the cooperative property being visually inspected,
2563 and provide a reserve funding schedule with a recommended annual
2564 reserve amount that achieves the estimated replacement cost or
2565 deferred maintenance expense of each item of cooperative
2566 property being visually inspected by the end of the estimated
2567 remaining useful life of the item. The structural integrity
2568 reserve study may recommend that reserves do not need to be
2569 maintained for any item for which an estimate of useful life and
2570 an estimate of replacement cost cannot be determined, or the
2571 study may recommend a deferred maintenance expense amount for
2572 such item. The structural integrity reserve study may recommend
2573 that reserves for replacement costs do not need to be maintained
2574 for any item with an estimated remaining useful life of greater
2575 than 25 years, but the study may recommend a deferred
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2576 maintenance expense amount for such item.
2577 4. This paragraph does not apply to buildings less than
2578 three stories in height; single-family, two-family, or three-
2579 family dwellings with three or fewer habitable stories above
2580 ground; any portion or component of a building that has not been
2581 submitted to the cooperative form of ownership; or any portion
2582 or component of a building that is maintained by a party other
2583 than the association.
2584 5. Before a developer turns over control of an association
2585 to unit owners other than the developer, the developer must have
2586 a turnover inspection report in compliance with s. 719.301(4)(p)
2587 and (q) for each building on the cooperative property that is
2588 three stories or higher in height.
2589 6. Associations existing on or before July 1, 2022, which
2590 are controlled by unit owners other than the developer, must
2591 have a structural integrity reserve study completed by December
2592 31, 2024, for each building on the cooperative property that is
2593 three stories or higher in height. An association that is
2594 required to complete a milestone inspection on or before
2595 December 31, 2026, in accordance with s. 553.899 may complete
2596 the structural integrity reserve study simultaneously with the
2597 milestone inspection. In no event may the structural integrity
2598 reserve study be completed after December 31, 2026.
2599 7. If the milestone inspection required by s. 553.899, or
2600 an inspection completed for a similar local requirement, was
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2601 performed within the past 5 years and meets the requirements of
2602 this paragraph, such inspection may be used in place of the
2603 visual inspection portion of the structural integrity reserve
2604 study.
2605 8. If the officers or directors of an association
2606 willfully and knowingly fail to complete a structural integrity
2607 reserve study pursuant to this paragraph, such failure is a
2608 breach of an officer's and director's fiduciary relationship to
2609 the unit owners under s. 719.104(9).
2610 9. Within 45 days after receiving the structural integrity
2611 reserve study, the association must distribute a copy of the
2612 study to each unit owner or deliver to each unit owner a notice
2613 that the completed study is available for inspection and copying
2614 upon a written request. Distribution of a copy of the study or
2615 notice must be made by United States mail or personal delivery
2616 at the mailing address, property address, or any other address
2617 of the owner provided to fulfill the association's notice
2618 requirements under this chapter, or by electronic transmission
2619 to the e-mail address or facsimile number provided to fulfill
2620 the association's notice requirements to unit owners who
2621 previously consented to receive notice by electronic
2622 transmission.
2623 Section 19. Paragraph (p) of subsection (4) of section
2624 719.301, Florida Statutes, is amended to read:
2625 719.301 Transfer of association control.—
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2626 (4) When unit owners other than the developer elect a
2627 majority of the members of the board of administration of an
2628 association, the developer shall relinquish control of the
2629 association, and the unit owners shall accept control.
2630 Simultaneously, or for the purpose of paragraph (c) not more
2631 than 90 days thereafter, the developer shall deliver to the
2632 association, at the developer's expense, all property of the
2633 unit owners and of the association held or controlled by the
2634 developer, including, but not limited to, the following items,
2635 if applicable, as to each cooperative operated by the
2636 association:
2637 (p) Notwithstanding when the certificate of occupancy was
2638 issued or the height of the building, a turnover inspection
2639 report included in the official records, under seal of an
2640 architect or engineer authorized to practice in this state or a
2641 person certified as a reserve specialist or professional reserve
2642 analyst by the Community Associations Institute or the
2643 Association of Professional Reserve Analysts, consisting of a
2644 structural integrity reserve study attesting to required
2645 maintenance, condition, useful life, and replacement costs of
2646 the following applicable cooperative property:
2647 1. Roof.
2648 2. Structure, including load-bearing walls and primary
2649 structural members and primary structural systems as those terms
2650 are defined in s. 627.706.
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2651 3. Fireproofing and fire protection systems.
2652 4. Plumbing.
2653 5. Electrical systems.
2654 6. Waterproofing and exterior painting.
2655 7. Windows and exterior doors.
2656 Section 20. The Division of Florida Condominiums,
2657 Timeshares, and Mobile Homes of the Department of Business and
2658 Professional Regulation shall complete a review of the website
2659 or application requirements for official records under s.
2660 718.111(12)(g), Florida Statutes, and make recommendations
2661 regarding any additional official records of a condominium
2662 association that should be included in the record maintenance
2663 requirement in the statute. The division shall submit to the
2664 Governor, the President of the Senate, the Speaker of the House
2665 of Representatives, and the chairs of the legislative
2666 appropriations committees and appropriate substantive committees
2667 with jurisdiction over chapter 718, Florida Statutes, the
2668 findings of its review by February 1, 2025.
2669 Section 21. For the 2024-2025 fiscal year, the sums of
2670 $6,122,390 in recurring and $1,293,879 in nonrecurring funds
2671 from the General Revenue Fund are appropriated to the Department
2672 of Business and Professional Regulation, and 65 full-time
2673 equivalent positions with associated salary rate of 3,180,319
2674 are authorized, for the purpose of implementing this act.
2675 Section 22. Except as otherwise expressly provided in this
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2676 act, this act shall take effect July 1, 2024.
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COMMERCE COMMITTEE
CS/CS/HB 1021 by Rep. Lopez, V.
AMENDMENT SUMMARY
February 22, 2023
Amendment 1 by Rep. Lopez, V. (strike-all):
• Provides that certain parts of the bill do not apply to timeshare condominiums but are instead controlled
by the timeshare laws.
• Provides that a community association manager or community management firm that has previously
disclosed a conflict of interest in an existing management contract entered into between the board of
directors and the community association manager or management firm does not need to be additionally
noticed and voted on during the term of the contract, but must be noticed and voted on in accordance
with the conflict disclosure process upon renewal.
• Requires an association that receives and considers a bid to provide a good or service that exceeds
$2,500 from a community association manager or a community association management firm, and a
person with a financial interest in a community association management firm, or a relative of such
persons to solicit multiple bids, instead of three, from other third-party providers of such good or
services.
• Provides that the milestone inspection report is not required for a four-family dwelling with three or
fewer habitable stories above ground.
• Defines “kickback” as any thing or service of value for which consideration has not been provided for an
officer’s, director’s, or manager’s own benefit, or that of his or her immediate family, from any person
providing or proposing to provide goods or services to the association.
• Provides that if an association member consents to receiving information by e-mail or fax, the e-mail
address or the fax number must be only be used for business operations; and be redacted before
disseminated if such information is on documents released to third parties.
• Adds completed board member education certificates as an official record.
• Clarifies that if official records are lost, destroyed, or otherwise unavailable, the obligation to maintain
the official records includes a good faith obligation to obtain and recover those records as may be
reasonably possible.
• Requires a condominium and cooperative association to notify the division within 45 days after the
structural integrity reserve study is completed.
• Provides that statute of limitations and statute of repose for certain actions available to a condominium
association or a cooperative association, do not begin to run until the unit owners have elected a
majority of the members of the board of administration.
• Requires the division to provide a division-approved education provider with a template certificate for
issuance directly to the association board of directors who have completed the education requirements.
Provides the division with rulemaking authority to carry out such process.
• Removes requirement for the division to conduct random audits of official records on association
websites, and provides that the division can request access and investigate such website if the division
receives a complaint.
• Provides that after December 31, 2024, the division must include a list of the condominium associations
who have completed their structural integrity reserve study in its annual report.
• Requires the division to create a database on its website of the condominium and cooperative
associations that have completed their structural integrity reserve study by January 1, 2025.
• Effective on October 1, 2024, the amendment provides requirements for condominiums created within a
portion of a building or within a multiple parcel building.
COMMITTEE/SUBCOMMITTEE AMENDMENT
Bill No. CS/CS/HB 1021 (2024)
Amendment No. 1
COMMITTEE/SUBCOMMITTEE ACTION
ADOPTED (Y/N)
ADOPTED AS AMENDED (Y/N)
ADOPTED W/O OBJECTION (Y/N)
FAILED TO ADOPT (Y/N)
WITHDRAWN (Y/N)
OTHER
1 Committee/Subcommittee hearing bill: Commerce Committee
2 Representative Lopez, V. offered the following:
3
4 Amendment (with title amendment)
5 Remove everything after the enacting clause and insert:
6 Section 1. Subsection (3) is added to section 468.4334,
7 Florida Statutes, to read:
8 468.4334 Professional practice standards; liability. —
9 (3) A community association manager or a community
10 association management firm shall return all community
11 association official records within its possession to the
12 community association within 20 business days after termination
13 of a contractual agreement to provide community association
14 management services to the community association or rece ipt of a
15 written request for return of the official records, whichever
16 occurs first. A notice of termination of a contractual agreement
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Bill No. CS/CS/HB 1021 (2024)
Amendment No. 1
17 to provide community association management services must be
18 sent by certified mail, return receipt requested, or in the
19 manner required under such contractual agreement. The community
20 association manager or community association management firm may
21 retain, for up to 20 business days, those records necessary to
22 complete an ending financial statement or report. If an
23 association fails to provide access to or retention of the
24 accounting records to prepare an ending financial statement or
25 report, the community association manager or community
26 association management firm is relieved from any further
27 responsibility or liability relating to the preparation of such
28 ending financial statement or report. Failure of a community
29 association manager or a community association management firm
30 to timely return all of the official records within its
31 possession to the community association creates a rebuttable
32 presumption that the community association manager or community
33 association management firm willfully failed to comply with this
34 subsection. A community association manager or a community
35 association management firm that fails to timely return
36 community association records is subject to suspension of its
37 license under s. 468.436, and a civil penalty of $1,000 per day
38 for up to 10 business days, assessed beginning on the 21st
39 business day after termination of a contractual agreement to
40 provide community association management services to the
41 community association or receipt of a written request from the
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Bill No. CS/CS/HB 1021 (2024)
Amendment No. 1
42 association for return of the records, whichever occurs first.
43 However, related to a timeshare plan licensed under chapter 721,
44 the time periods provided in s. 721.14(4)(b) are applicable.
45 Section 2. Section 468.4335, Florida Statutes, is created
46 to read:
47 468.4335 Conflicts of interest.—
48 (1) A community association manager or a community
49 association management firm, including directors, officers, and
50 persons with a financial interest in a community association
51 management firm, or a relative of such persons, must disclose to
52 the board of a community association any activity that may
53 reasonably be construed to be a conflict of interes t. A
54 rebuttable presumption of a conflict of interest exists if any
55 of the following occurs without prior notice:
56 (a) A community association manager or a community
57 association management firm, including directors, officers, and
58 persons with a financial interest in a community association
59 management firm, or a relative of such persons, enters into a
60 contract for goods or services with the association.
61 (b) A community association manager or a community
62 association management firm, including directors, officers, and
63 persons with a financial interest in a community association
64 management firm, or a relative of such persons, holds an
65 interest in or receives compensation or any thing of value from
66 a corporation, limited liability corporation, partnership,
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Bill No. CS/CS/HB 1021 (2024)
Amendment No. 1
67 limited liability partnership, or other business entity that
68 conducts business with the association or proposes to enter into
69 a contract or other transaction with the association.
70 (2) If the association receives and considers a bid to
71 provide a good or service that exceeds $2,500, other than
72 community association management services, from a community
73 association manager or a community association management firm,
74 including directors, officers, and persons with a financial
75 interest in a community association management firm, or a
76 relative of such persons, the association must solicit multiple
77 bids from other third-party providers of such goods or services.
78 (3) If a community association manager or a community
79 association management firm, including directors, officers, and
80 persons with a financial interest in a community association
81 management firm, or a relative of such persons, proposes to
82 engage in an activity that is a conflict of interest as
83 described in subsection (1), the proposed activity must be
84 listed on, and all contracts and transactional documents related
85 to the proposed activity must be attached to, the meeting agenda
86 of the next board of administration meeting. The disclosures of
87 a possible conflict of interest must be entered into the written
88 minutes of the meeting. Approval of the contract, including a
89 management contract between the community association and the
90 community association manager or management firm, or other
91 transaction requires an affirmative vote of two-thirds of all
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Amendment No. 1
92 directors present. At the next regular or special meeting of the
93 members, the existence of the conflict of interest and the
94 contract or other transaction must be disclosed to the members.
95 If a community association manager or community management firm
96 has previously disclosed a conflict of interest in an existing
97 management contract entered into between the board of directors
98 and the community association manager or management firm, the
99 conflict of interest does not need to be additionally noticed
100 and voted on during the term of the contract between the
101 community association and the community association manager or
102 management firm, but must be noticed and voted on in accordance
103 with this provision upon renewal.
104 (4) If the board finds that a community association
105 manager or a community association management firm, including
106 directors, officers, and persons with a financial interest in a
107 community association management firm, or a relative of such
108 persons, has violated this section, the association may cancel
109 its community association management contract with the community
110 association manager or the community association management
111 firm. If the contract is canceled, the association is liable
112 only for the reasonable value of the management services
113 provided up to the time of cancellation and is not liable for
114 any termination fees, liquidated damages, or other form of
115 penalty for such cancellation.
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Bill No. CS/CS/HB 1021 (2024)
Amendment No. 1
116 (5) If an association enters into a contract with a
117 community association manager or a community association
118 management firm, including directors, officers, and persons with
119 a financial interest in a community association management firm,
120 or a relative of such persons, which is a party to or has an
121 interest in an activity that is a possible conflict of interest
122 as described in subsection (1) and such activity has not been
123 properly disclosed as a conflict of interest or potential
124 conflict of interest as required by this section, the contract
125 is voidable and terminates upon the association filing a written
126 notice terminating the contract with its board of directors
127 which contains the consent of at least 20 percent of the voting
128 interests of the association.
129 (6) As used in this section, the term "relative" means a
130 relative within the third degree of consanguinity by blood or
131 marriage.
132 Section 3. Paragraph (b) of subsection (2) of section
133 468.436, Florida Statutes, is amended, and subsection (4) of
134 that section is reenacted, to read:
135 468.436 Disciplinary proceedings.—
136 (2) The following acts constitute grounds for which the
137 disciplinary actions in subsection (4) may be taken:
138 (b)1. Violation of any provision of this part.
139 2. Violation of any lawful order or rule rendered or
140 adopted by the department or the council.
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Bill No. CS/CS/HB 1021 (2024)
Amendment No. 1
141 3. Being convicted of or pleading nolo contendere to a
142 felony in any court in the United States.
143 4. Obtaining a license or certification or any other
144 order, ruling, or authorization by means of fraud,
145 misrepresentation, or concealment of material facts.
146 5. Committing acts of gross misconduct or gross negligence
147 in connection with the profession.
148 6. Contracting, on behalf of an association, with any
149 entity in which the licensee has a financial interest that is
150 not disclosed.
151 7. Failing to disclose any conflict of interest as
152 required by s. 468.4335.
153 8.7. Violating any provision of chapter 718, chapter 719,
154 or chapter 720 during the course of performing community
155 association management services pursuant to a contract with a
156 community association as defined in s. 468.431(1).
157 (4) When the department finds any community association
158 manager or firm guilty of any of the grounds set forth in
159 subsection (2), it may enter an order imposing one or more of
160 the following penalties:
161 (a) Denial of an application for licensure.
162 (b) Revocation or suspension of a license.
163 (c) Imposition of an administrative fine not to exceed
164 $5,000 for each count or separate offense.
165 (d) Issuance of a reprimand.
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Amendment No. 1
166 (e) Placement of the community association manager on
167 probation for a period of time and subject to such conditions as
168 the department specifies.
169 (f) Restriction of the authorized scope of practice by the
170 community association manager.
171 Section 4. Subsection (4) of section 553.899, Florida
172 Statutes, is amended to read:
173 553.899 Mandatory structural inspections for condominium
174 and cooperative buildings.—
175 (4) The milestone inspection report must be arranged by a
176 condominium or cooperative association and any owner of any
177 portion of the building which is not subject to the condominium
178 or cooperative form of ownership. The condominium association or
179 cooperative association and any owner of any portion of the
180 building which is not subject to the condominium or cooperative
181 form of ownership are each responsible for ensuring compliance
182 with the requirements of this section. The condominium
183 association or cooperative association is responsible for all
184 costs associated with the milestone inspection attributable to
185 the portions of a building which the association is responsible
186 to maintain under the governing documents of the association.
187 This section does not apply to a single-family, two-family, or
188 three-family dwelling, or four-family dwelling with three or
189 fewer habitable stories above ground.
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Bill No. CS/CS/HB 1021 (2024)
Amendment No. 1
190 Section 4. Subsection (14) of section 718.103, Florida
191 Statutes, is amended, and subsections (19) through (32) of
192 section 718.103, Florida Statutes, are renumbered as subsections
193 (21) through (34), respectively, and new subsections (19) and
194 (20) are added to that section, to read:
195 718.103 Definitions.—As used in this chapter, the term:
196 (14) "Condominium property" means the lands, leaseholds,
197 improvements, any and personal property, and all easements and
198 rights appurtenant thereto, regardless of whether contiguous,
199 which that are subjected to condominium ownership, whether or
200 not contiguous, and all improvements thereon and all easements
201 and rights appurtenant thereto intended for use in connection
202 with the condominium.
203 (19) "Kickback" means any thing or service of value, for
204 which consideration has not been provided, for an officer's, a
205 director's, or a manager's own benefit or that of his or her
206 immediate family, from any person providing or proposing to
207 provide goods or services to the association.
208 (20) "Hurricane protection" means hurricane shutters,
209 impact glass, code-compliant windows or doors, and other code-
210 compliant hurricane protection products used to preserve and
211 protect the condominium property or association property.
212 Section 5. Paragraph (b) of subsection (4) of section
213 718.104, Florida Statutes, is amended, and paragraph(p) is added
214 to subsection (4) of section 718.104, Florida Statutes, to read:
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Bill No. CS/CS/HB 1021 (2024)
Amendment No. 1
215 718.104 Creation of condominiums; contents of
216 declaration.—Every condominium created in this state shall be
217 created pursuant to this chapter.
218 (4) The declaration must contain or provide for the
219 following matters:
220 (b) The name by which the condominium property is to be
221 identified, which shall include the word "condominium" or be
222 followed by the words "a condominium." Condominiums created
223 within a portion of a building or within a multiple parcel
224 building shall include the name by which the condominium is to
225 be identified and be followed by "a condominium within a portion
226 of a building or within a multiple parcel building."
227 (p) For both residential condominiums and mixed-use
228 condominiums, a statement that specifies whether the unit owner
229 or the association is responsible for the installation,
230 maintenance, repair, or replacement of hurricane protection that
231 is for the preservation and protection of the condomini um
232 property and association property.
233 Section 6. Paragraph (a) of subsection (1) and subsections
234 (12), (13), and (15) of section 718.111, Florida Statutes, are
235 amended to read:
236 718.111 The association.—
237 (1) CORPORATE ENTITY.—
238 (a) The operation of the condominium shall be by the
239 association, which must be a Florida corporation for profit or a
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Amendment No. 1
240 Florida corporation not for profit. However, any association
241 which was in existence on January 1, 1977, need not be
242 incorporated. The owners of units shall be shareholders or
243 members of the association. The officers and directors of the
244 association have a fiduciary relationship to the unit owners. It
245 is the intent of the Legislature that nothing in this paragraph
246 shall be construed as providing for or removing a requirement of
247 a fiduciary relationship between any manager employed by the
248 association and the unit owners. An officer, director, or
249 manager may not solicit, offer to accept, or accept any thing or
250 service of value or kickback for which consideration ha s not
251 been provided for his or her own benefit or that of his or her
252 immediate family, from any person providing or proposing to
253 provide goods or services to the association. Any such officer,
254 director, or manager who knowingly so solicits, offers to
255 accept, or accepts any thing or service of value or a kickback
256 commits a felony of the third degree, punishable as provided in
257 s. 775.082, s. 775.083, or s. 775.084, is subject to a civil
258 penalty pursuant to s. 718.501(1)(d), and must be removed from
259 office and a vacancy declared and, if applicable, a criminal
260 penalty as provided in paragraph (d). However, this paragraph
261 does not prohibit an officer, director, or manager from
262 accepting services or items received in connection with trade
263 fairs or education programs. An association may operate more
264 than one condominium.
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Bill No. CS/CS/HB 1021 (2024)
Amendment No. 1
265 (12) OFFICIAL RECORDS.—
266 (a) From the inception of the association, the association
267 shall maintain each of the following items, if applicable, which
268 constitutes the official records of the association:
269 1. A copy of the plans, permits, warranties, and other
270 items provided by the developer under s. 718.301(4).
271 2. A photocopy of the recorded declaration of condominium
272 of each condominium operated by the association and each
273 amendment to each declaration.
274 3. A photocopy of the recorded bylaws of the association
275 and each amendment to the bylaws.
276 4. A certified copy of the articles of incorporation of
277 the association, or other documents creating the association,
278 and each amendment thereto.
279 5. A copy of the current rules of the association.
280 6. A book or books that contain the minutes of all
281 meetings of the association, the board of administration, and
282 the unit owners.
283 7. A current roster of all unit owners and their mailing
284 addresses, unit identifications, voting certifications, and, if
285 known, telephone numbers. The association shall also maintain
286 the e-mail addresses and facsimile numbers of unit owners
287 consenting to receive notice by electronic transmission. The e-
288 mail addresses and facsimile numbers are not accessible to unit
289 owners if consent to receive notice by electronic transmission
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290 is not provided In accordance with sub-subparagraph (c)5.e., the
291 e-mail addresses and facsimile numbers are only accessible to
292 unit owners if consent to receive notice by electronic
293 transmission is provided, or if the unit owner has expressly
294 indicated that such personal information can be shared with
295 other unit owners, and the unit owner has not provided the
296 association with a request to opt-out of such dissemination with
297 other unit owners.(c)3.e. An association must ensure that such
298 e-mail addresses and facsimile numbers are only used for the
299 business operation of the association and may not be sold or
300 shared with outside third parties. If such personal info rmation
301 is included in documents released to third parties other than
302 unit owners, the association must redact such personal
303 information before the document is disseminated. However, the
304 association is not liable for an inadvertent disclosure of the
305 e-mail address or facsimile number for receiving electronic
306 transmission of notices unless disclosure was made with a
307 knowing or intentional disregard of the protected nature of such
308 information.
309 8. All current insurance policies of the association and
310 condominiums operated by the association.
311 9. A current copy of any management agreement, lease, or
312 other contract to which the association is a party or under
313 which the association or the unit owners have an obligation or
314 responsibility.
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315 10. Bills of sale or transfer for all property owned by
316 the association.
317 11. Accounting records for the association and separate
318 accounting records for each condominium that the association
319 operates. Any person who knowingly or intentionally defaces or
320 destroys such records, or who knowingly or intentionally fails
321 to create or maintain such records, with the intent of causing
322 harm to the association or one or more of its members, is
323 personally subject to a civil penalty pursuant to s.
324 718.501(1)(d). The accounting records must include, but are not
325 limited to:
326 a. Accurate, itemized, and detailed records of all
327 receipts and expenditures.
328 b. All invoices, transaction receipts, or deposit slips
329 that substantiate any receipt or expenditure of funds by the
330 association.
331 c.b. A current account and a monthly, bimonthly, or
332 quarterly statement of the account for each unit designating the
333 name of the unit owner, the due date and amount of each
334 assessment, the amount paid on the account, and the balance due.
335 d.c. All audits, reviews, accounting statements,
336 structural integrity reserve studies, and financial reports of
337 the association or condominium. Structural integrity reserve
338 studies must be maintained for at least 15 years after the study
339 is completed.
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340 e.d. All contracts for work to be performed. Bids for work
341 to be performed are also considered official records and must be
342 maintained by the association for at least 1 year after receipt
343 of the bid.
344 12. Ballots, sign-in sheets, voting proxies, and all other
345 papers and electronic records relating to voting by unit owners,
346 which must be maintained for 1 year from the date of the
347 election, vote, or meeting to which the document relates,
348 notwithstanding paragraph (b).
349 13. All rental records if the association is acting as
350 agent for the rental of condominium units.
351 14. A copy of the current question and answer sheet as
352 described in s. 718.504.
353 15. A copy of the inspection reports described in ss.
354 553.899 and 718.301(4)(p) and any other inspection report
355 relating to a structural or life safety inspection of
356 condominium property. Such record must be maintained by the
357 association for 15 years after receipt of the report.
358 16. Bids for materials, equipment, or services.
359 17. All affirmative acknowledgments made pursuant to s.
360 718.121(4)(c).
361 18. A copy of all building permits issued for ongoing or
362 planned construction.
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363 19.18. All other written records of the association not
364 specifically included in the foregoing which are related to the
365 operation of the association.
366 20. A copy of all satisfactorily completed board member
367 educational certificates.
368 (b) The official records specified in subparagraphs (a)1. -
369 6. must be permanently maintained from the inception of the
370 association. Bids for work to be performed or for materials,
371 equipment, or services must be maintained for at least 1 year
372 after receipt of the bid. All other official records must be
373 maintained within the state for at least 7 years, unless
374 otherwise provided by general law. The official records must be
375 maintained in an organized manner that facilitates inspection of
376 the records by a unit owner. In the event that the official
377 records are lost, destroyed, or otherwise unavailable, the
378 obligation to maintain the official records includes a good
379 faith obligation to obtain and recover those records as may be
380 reasonably possible. The records of the association shall be
381 made available to a unit owner within 45 miles of the
382 condominium property or within the county in which the
383 condominium property is located within 10 working days after
384 receipt of a written request by the board or its designee.
385 However, such distance requirement does not apply to an
386 association governing a timeshare condominium. This paragraph
387 and paragraph (c) may be complied with by having a copy of the
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388 official records of the association available for inspection or
389 copying on the condominium property or association property, or
390 the association may offer the option of making the records
391 available to a unit owner electronically via the Internet as
392 provided under paragraph (g) or by allowing the records to be
393 viewed in electronic format on a computer screen and printed
394 upon request. The association is not responsible for the use or
395 misuse of the information provided to an association member or
396 his or her authorized representative in compliance with this
397 chapter unless the association has an affirmative duty not to
398 disclose such information under this chapter.
399 (c)1.a.(c)1. The official records of the association are
400 open to inspection by any association member and any person
401 authorized by an association member as a representative of such
402 member at all reasonable times. The right to inspect the records
403 includes the right to make or obtain copies, at the reasonable
404 expense, if any, of the member and of the person authorized by
405 the association member as a representative of such member. A
406 renter of a unit has a right to inspect and copy only the
407 declaration of condominium, the association's bylaws and rules,
408 and the inspection reports described in ss. 553.899 and
409 718.301(4)(p). The association may adopt reasonable rules
410 regarding the frequency, time, location, notice, and manner of
411 record inspections and copying but may not require a member to
412 demonstrate any purpose or state any reason for the inspection.
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413 The failure of an association to provide the records within 10
414 working days after receipt of a written request creates a
415 rebuttable presumption that the association willfully failed to
416 comply with this paragraph. A unit owner who is denied access to
417 official records is entitled to the actual damages or minimum
418 damages for the association's willful failure to comply. Minimum
419 damages are $50 per calendar day for up to 10 days, beginning on
420 the 11th working day after receipt of the written request. The
421 failure to permit inspection entitles any person prevailing in
422 an enforcement action to recover reasonable attorney fees from
423 the person in control of the records who, directly or
424 indirectly, knowingly denied access to the records. If the
425 requested records are posted on an association's website, or are
426 available for download through an application on a mobile
427 device, the association may fulfill its obligations under this
428 paragraph by directing to the website or the application all
429 persons authorized to request access.
430 b. In response to a written request to inspect records,
431 the association must simultaneously provide to the requestor a
432 checklist of all records made available for inspection and
433 copying. The checklist must also identify any of the
434 association's official records that were not made available to
435 the requestor. An association must maintain a checklist provided
436 under this sub-subparagraph for 7 years. An association
437 delivering a checklist pursuant to this sub-subparagraph creates
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438 a rebuttable presumption that the association has complied with
439 this paragraph.
440 2. A director or member of the board or association or a
441 community association manager who knowingly, willfully, and
442 repeatedly violates subparagraph 1. commits a misdemeanor of the
443 second degree, punishable as provided in s. 775.082 or s.
444 775.083, and must be removed from office and a vacancy declared.
445 For purposes of this subparagraph, the term "repeatedly" means
446 two or more violations within a 12-month period.
447 3.2. Any person who knowingly or intentionally defaces or
448 destroys accounting records that are required by this chapter to
449 be maintained during the period for which such records are
450 required to be maintained, or who knowingly or intentionally
451 fails to create or maintain accounting records that are required
452 to be created or maintained, with the intent of causing harm to
453 the association or one or more of its members, commits a
454 misdemeanor of the first degree, punishable as provided in s.
455 775.082 or s. 775.083, is personally subject to a civil penalty
456 pursuant to s. 718.501(1)(d), and must be removed from office
457 and a vacancy declared.
458 4. A person who willfully and knowingly refuses to release
459 or otherwise produce association records with the intent to
460 avoid or escape detection, arrest, trial, or punishment for the
461 commission of a crime, or to assist another person with such
462 avoidance or escape, commits a felony of the third degree,
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Amendment No. 1
463 punishable as provided in s. 775.082, s. 775.083, or s. 775.084,
464 and must be removed from office and a vacancy declared.
465 5.3. The association shall maintain an adequate number of
466 copies of the declaration, articles of incorporation, bylaws,
467 and rules, and all amendments to each of the foregoing, as well
468 as the question and answer sheet as described in s. 718.504 and
469 year-end financial information required under this section, on
470 the condominium property to ensure their availability to unit
471 owners and prospective purchasers, and may charge its actual
472 costs for preparing and furnishing these documents to those
473 requesting the documents. An association shall allow a member or
474 his or her authorized representative to use a portable device,
475 including a smartphone, tablet, portable scanner, or any other
476 technology capable of scanning or taking photographs, to make an
477 electronic copy of the official records in lieu of the
478 association's providing the member or his or her authorized
479 representative with a copy of such records. The association may
480 not charge a member or his or her authorized representative for
481 the use of a portable device. Notwithstanding this paragraph,
482 the following records are not accessible to unit owners:
483 a. Any record protected by the lawyer-client privilege as
484 described in s. 90.502 and any record protected by the work-
485 product privilege, including a record prepared by an association
486 attorney or prepared at the attorney's express direction, which
487 reflects a mental impression, conclusion, litigation strategy,
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Amendment No. 1
488 or legal theory of the attorney or the association, and which
489 was prepared exclusively for civil or criminal liti gation or for
490 adversarial administrative proceedings, or which was prepared in
491 anticipation of such litigation or proceedings until the
492 conclusion of the litigation or proceedings.
493 b. Information obtained by an association in connection
494 with the approval of the lease, sale, or other transfer of a
495 unit.
496 c. Personnel records of association or management company
497 employees, including, but not limited to, disciplinary, payroll,
498 health, and insurance records. For purposes of this sub -
499 subparagraph, the term "personnel records" does not include
500 written employment agreements with an association employee or
501 management company, or budgetary or financial records that
502 indicate the compensation paid to an association employee.
503 d. Medical records of unit owners.
504 e. Social security numbers, driver license numbers, credit
505 card numbers, e-mail addresses, telephone numbers, facsimile
506 numbers, emergency contact information, addresses of a unit
507 owner other than as provided to fulfill the association's notice
508 requirements, and other personal identifying information of any
509 person, excluding the person's name, unit designation, mailing
510 address, property address, and any address, e-mail address, or
511 facsimile number provided to the association to fulfill the
512 association's notice requirements. Notwithstanding the
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513 restrictions in this sub-subparagraph, an association may print
514 and distribute to unit owners a directory containing the name,
515 unit address, and all telephone numbers of each unit owner.
516 However, an owner may exclude his or her telephone numbers from
517 the directory by so requesting in writing to the association. An
518 owner may consent in writing to the disclosure of other contact
519 information described in this sub-subparagraph. The association
520 is not liable for the inadvertent disclosure of information that
521 is protected under this sub-subparagraph if the information is
522 included in an official record of the association and is
523 voluntarily provided by an owner and not requested by the
524 association.
525 f. Electronic security measures that are used by the
526 association to safeguard data, including passwords.
527 g. The software and operating system used by the
528 association which allow the manipulation of data, even if the
529 owner owns a copy of the same software used by the association.
530 The data is part of the official records of the association.
531 h. All affirmative acknowledgments made pursuant to s.
532 718.121(4)(c).
533 (d) The association shall prepare a question and answer
534 sheet as described in s. 718.504, and shall update it annually.
535 (e)1. The association or its authorized agent is not
536 required to provide a prospective purchaser or lienholder with
537 information about the condominium or the association other than
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Amendment No. 1
538 information or documents required by this chapter to be made
539 available or disclosed. The association or its authorized agent
540 may charge a reasonable fee to the prospective purchaser,
541 lienholder, or the current unit owner for providing good faith
542 responses to requests for information by or on behalf of a
543 prospective purchaser or lienholder, other than that required by
544 law, if the fee does not exceed $150 plus the reasonable cost of
545 photocopying and any attorney's fees incurred by the association
546 in connection with the response.
547 2. An association and its authorized agent are not liable
548 for providing such information in good faith pursuant to a
549 written request if the person providing the information includes
550 a written statement in substantially the following form: "The
551 responses herein are made in good faith and to the best of my
552 ability as to their accuracy."
553 (f) An outgoing board or committee member must relinquish
554 all official records and property of the association in his or
555 her possession or under his or her control to the incoming board
556 within 5 days after the election. The division shall impose a
557 civil penalty as set forth in s. 718.501(1)(d)6. against an
558 outgoing board or committee member who willfully and knowingly
559 fails to relinquish such records and property.
560 (g)1. By January 1, 2019, an association managing a
561 condominium with 150 or more units which does not contain
562 timeshare units shall post digital copies of the documents
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Amendment No. 1
563 specified in subparagraph 2. on its website or make such
564 documents available through an application that can be
565 downloaded on a mobile device.
566 a. The association's website or application must be:
567 (I) An independent website, application, or web portal
568 wholly owned and operated by the association; or
569 (II) A website, application, or web portal operated by a
570 third-party provider with whom the association owns, leases,
571 rents, or otherwise obtains the right to operate a web page,
572 subpage, web portal, collection of subpages or web portals, or
573 an application which is dedicated to the association's
574 activities and on which required notices, records, and docume nts
575 may be posted or made available by the association.
576 b. The association's website or application must be
577 accessible through the Internet and must contain a subpage, web
578 portal, or other protected electronic location that is
579 inaccessible to the general public and accessible only to unit
580 owners and employees of the association.
581 c. Upon a unit owner's written request, the association
582 must provide the unit owner with a username and password and
583 access to the protected sections of the association's websit e or
584 application which contain any notices, records, or documents
585 that must be electronically provided.
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586 2. A current copy of the following documents must be
587 posted in digital format on the association's website or
588 application:
589 a. The recorded declaration of condominium of each
590 condominium operated by the association and each amendment to
591 each declaration.
592 b. The recorded bylaws of the association and each
593 amendment to the bylaws.
594 c. The articles of incorporation of the association, or
595 other documents creating the association, and each amendment to
596 the articles of incorporation or other documents. The copy
597 posted pursuant to this sub-subparagraph must be a copy of the
598 articles of incorporation filed with the Department of State.
599 d. The rules of the association.
600 e. A list of all executory contracts or documents to which
601 the association is a party or under which the association or the
602 unit owners have an obligation or responsibility and, after
603 bidding for the related materials, equipment, or services has
604 closed, a list of bids received by the association within the
605 past year. Summaries of bids for materials, equipment, or
606 services which exceed $500 must be maintained on the website or
607 application for 1 year. In lieu of summaries, complete cop ies of
608 the bids may be posted.
609 f. The annual budget required by s. 718.112(2)(f) and any
610 proposed budget to be considered at the annual meeting.
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Amendment No. 1
611 g. The financial report required by subsection (13) and
612 any monthly income or expense statement to be consi dered at a
613 meeting.
614 h. The certification of each director required by s.
615 718.112(2)(d)4.b.
616 i. All contracts or transactions between the association
617 and any director, officer, corporation, firm, or association
618 that is not an affiliated condominium association or any other
619 entity in which an association director is also a director or
620 officer and financially interested.
621 j. Any contract or document regarding a conflict of
622 interest or possible conflict of interest as provided in ss.
623 468.4335, 468.436(2)(b)6. and 718.3027(3).
624 k. The notice of any unit owner meeting and the agenda for
625 the meeting, as required by s. 718.112(2)(d)3., no later than 14
626 days before the meeting. The notice must be posted in plain view
627 on the front page of the website or application, or on a
628 separate subpage of the website or application labeled "Notices"
629 which is conspicuously visible and linked from the front page.
630 The association must also post on its website or application any
631 document to be considered and voted on by the owner s during the
632 meeting or any document listed on the agenda at least 7 days
633 before the meeting at which the document or the information
634 within the document will be considered.
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635 l. Notice of any board meeting, the agenda, and any other
636 document required for the meeting as required by s.
637 718.112(2)(c), which must be posted no later than the date
638 required for notice under s. 718.112(2)(c).
639 m. The inspection reports described in ss. 553.899 and
640 718.301(4)(p) and any other inspection report relating to a
641 structural or life safety inspection of condominium property.
642 n. The association's most recent structural integrity
643 reserve study, if applicable.
644 o. Copies of all building permits issued for ongoing or
645 planned construction.
646 3. The association shall ensure that the information and
647 records described in paragraph (c), which are not allowed to be
648 accessible to unit owners, are not posted on the association's
649 website or application. If protected information or information
650 restricted from being accessible to unit owners is included in
651 documents that are required to be posted on the association's
652 website or application, the association shall ensure the
653 information is redacted before posting the documents.
654 Notwithstanding the foregoing, the association or its agent is
655 not liable for disclosing information that is protected or
656 restricted under this paragraph unless such disclosure was made
657 with a knowing or intentional disregard of the protected or
658 restricted nature of such information.
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Amendment No. 1
659 4. The failure of the association to post information
660 required under subparagraph 2. is not in and of itself
661 sufficient to invalidate any action or decision of the
662 association's board or its committees.
663 (13) FINANCIAL REPORTING.—Within 90 days after the end of
664 the fiscal year, or annually on a date provided in the bylaws,
665 the association shall prepare and complete, or contract for the
666 preparation and completion of, a financial report for the
667 preceding fiscal year. Within 21 days after the final financial
668 report is completed by the association or received from the
669 third party, but not later than 120 days after the end of the
670 fiscal year or other date as provided in the bylaws, the
671 association shall deliver mail to each unit owner by United
672 States mail or personal delivery at the mailing address,
673 property address, e-mail address, or facsimile number provided
674 to fulfill the association's notice requirements at the address
675 last furnished to the association by the unit owner, or hand
676 deliver to each unit owner, a copy of the most recent financial
677 report, and or a notice that a copy of the most recent financial
678 report will be mailed or hand delivered to the unit owner,
679 without charge, within 5 business days after receipt of a
680 written request from the unit owner. The division shall adopt
681 rules setting forth uniform accounting principles and standards
682 to be used by all associations and addressing the financial
683 reporting requirements for multicondominium associations. The
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684 rules must include, but not be limited to, standards for
685 presenting a summary of association reserves, including a good
686 faith estimate disclosing the annual amount of reserve funds
687 that would be necessary for the association to fully fund
688 reserves for each reserve item based on the straight-line
689 accounting method. This disclosure is not applicable to reserves
690 funded via the pooling method. In adopting such rules, the
691 division shall consider the number of members and annual
692 revenues of an association. Financial reports shall be prepared
693 as follows:
694 (a) An association that meets the criteria of this
695 paragraph shall prepare a complete set of financial statements
696 in accordance with generally accepted accounting principles. The
697 financial statements must be based upon the association's total
698 annual revenues, as follows:
699 1. An association with total annual revenues of $150,000
700 or more, but less than $300,000, shall prepare compiled
701 financial statements.
702 2. An association with total annual revenues of at least
703 $300,000, but less than $500,000, shall prepare reviewed
704 financial statements.
705 3. An association with total annual revenues of $500,000
706 or more shall prepare audited financial statements.
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Amendment No. 1
707 (b)1. An association with total annual revenues of less
708 than $150,000 shall prepare a report of cash receipts and
709 expenditures.
710 2. A report of cash receipts and disbursements must
711 disclose the amount of receipts by accounts and receipt
712 classifications and the amount of expenses by accounts and
713 expense classifications, including, but not limited to, the
714 following, as applicable: costs for security, professional and
715 management fees and expenses, taxes, costs for recreation
716 facilities, expenses for refuse collection and utility services,
717 expenses for lawn care, costs for building maintenance and
718 repair, insurance costs, administration and salary expenses, and
719 reserves accumulated and expended for capital expenditures,
720 deferred maintenance, and any other category for which the
721 association maintains reserves.
722 (c) An association may prepare, without a meeting of or
723 approval by the unit owners:
724 1. Compiled, reviewed, or audited financial statements, if
725 the association is required to prepare a report of cash receipts
726 and expenditures;
727 2. Reviewed or audited financial statements, if the
728 association is required to prepare compiled financial
729 statements; or
730 3. Audited financial statements if the association is
731 required to prepare reviewed financial statements.
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732 (d) If approved by a majority of the voting interests
733 present at a properly called meeting of the association, an
734 association may prepare:
735 1. A report of cash receipts and expenditures in lieu of a
736 compiled, reviewed, or audited financial statement;
737 2. A report of cash receipts and expenditures or a
738 compiled financial statement in lieu of a reviewed or audited
739 financial statement; or
740 3. A report of cash receipts and expenditures, a compiled
741 financial statement, or a reviewed financial statement in lieu
742 of an audited financial statement.
743
744 Such meeting and approval must occur before the end of the
745 fiscal year and is effective only for the fiscal year in which
746 the vote is taken. An association may not prepare a financial
747 report pursuant to this paragraph for consecutive fiscal years,
748 except that the approval may also be effective for the following
749 fiscal year. If the developer has not turned over control of the
750 association, all unit owners, including the developer, may vote
751 on issues related to the preparation of the association's
752 financial reports, from the date of incorporation of the
753 association through the end of the second fiscal year after the
754 fiscal year in which the certificate of a surveyor and mapper is
755 recorded pursuant to s. 718.104(4)(e) or an instrument that
756 transfers title to a unit in the condominium which is not
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Amendment No. 1
757 accompanied by a recorded assignment of developer rights in
758 favor of the grantee of such unit is recorded, whichever occurs
759 first. Thereafter, all unit owners except the developer may vote
760 on such issues until control is turned over to the association
761 by the developer. Any audit or review prepared under this
762 section shall be paid for by the developer if done before
763 turnover of control of the association.
764 (e) A unit owner may provide written notice to the
765 division of the association's failure to mail or hand deliver
766 him or her a copy of the most recent financial report within 5
767 business days after he or she submitted a written request to the
768 association for a copy of such report. If the division
769 determines that the association failed to mail or hand deliver a
770 copy of the most recent financial report to the unit owner, the
771 division shall provide written notice to the association that
772 the association must mail or hand deliver a copy of the most
773 recent financial report to the unit owner and the division
774 within 5 business days after it receives such notice from the
775 division. An association that fails to comply with the
776 division's request may not waive the financial reporting
777 requirement provided in paragraph (d) for the fiscal year in
778 which the unit owner's request was made and the following fiscal
779 year. A financial report received by the division pursuant to
780 this paragraph shall be maintained, and the division shall
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Bill No. CS/CS/HB 1021 (2024)
Amendment No. 1
781 provide a copy of such report to an association member upon his
782 or her request.
783 (15) DEBIT CARDS.—
784 (a) An association and its officers, directors, employees,
785 and agents may not use a debit card issued in the name of the
786 association, or billed directly to the association, for the
787 payment of any association expense.
788 (b) A person who uses Use of a debit card issued in the
789 name of the association, or billed directly to the associa tion,
790 for any expense that is not a lawful obligation of the
791 association commits theft under s. 812.014 and must be removed
792 from office and a vacancy declared. For the purposes of this
793 paragraph, the term "lawful obligation of the association" means
794 an obligation that has been properly preapproved by the board
795 and is reflected in the meeting minutes or the written budget
796 may be prosecuted as credit card fraud pursuant to s. 817.61 .
797 Section 7. Effective January 1, 2026, paragraph (g) of
798 subsection (12) of section 718.111, Florida Statutes, as amended
799 by this act, is amended to read:
800 718.111 The association.—
801 (12) OFFICIAL RECORDS.—
802 (g)1. By January 1, 2019, An association managing a
803 condominium with 25 150 or more units which does not contain
804 timeshare units shall post digital copies of the documents
805 specified in subparagraph 2. on its website or make such
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Bill No. CS/CS/HB 1021 (2024)
Amendment No. 1
806 documents available through an application that can be
807 downloaded on a mobile device.
808 a. The association's website or application must be:
809 (I) An independent website, application, or web portal
810 wholly owned and operated by the association; or
811 (II) A website, application, or web portal operated by a
812 third-party provider with whom the association owns, leases,
813 rents, or otherwise obtains the right to operate a web page,
814 subpage, web portal, collection of subpages or web portals, or
815 an application which is dedicated to the association's
816 activities and on which required notices, records, and documents
817 may be posted or made available by the association.
818 b. The association's website or application must be
819 accessible through the Internet and must contain a subpage, web
820 portal, or other protected electronic location that is
821 inaccessible to the general public and accessible only to unit
822 owners and employees of the association.
823 c. Upon a unit owner's written request, the association
824 must provide the unit owner with a username and password and
825 access to the protected sections of the association's website or
826 application which contain any notices, records, or documents
827 that must be electronically provided.
828 2. A current copy of the following documents must be
829 posted in digital format on the association's website or
830 application:
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Bill No. CS/CS/HB 1021 (2024)
Amendment No. 1
831 a. The recorded declaration of condominium of each
832 condominium operated by the association and each amendment to
833 each declaration.
834 b. The recorded bylaws of the association and each
835 amendment to the bylaws.
836 c. The articles of incorporation of the association, or
837 other documents creating the association, and each amendment to
838 the articles of incorporation or other documents. The copy
839 posted pursuant to this sub-subparagraph must be a copy of the
840 articles of incorporation filed with the Department of State.
841 d. The rules of the association.
842 e. A list of all executory contracts or documents to which
843 the association is a party or under which the association or the
844 unit owners have an obligation or responsibility and, after
845 bidding for the related materials, equipment, or services has
846 closed, a list of bids received by the association within the
847 past year. Summaries of bids for materials, equipment, or
848 services which exceed $500 must be maintained on the website or
849 application for 1 year. In lieu of summaries, complete copies of
850 the bids may be posted.
851 f. The annual budget required by s. 718.112(2)(f) and any
852 proposed budget to be considered at the annual meeting.
853 g. The financial report required by subsection (13) and
854 any monthly income or expense statement to be considered at a
855 meeting.
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Amendment No. 1
856 h. The certification of each director required by s.
857 718.112(2)(d)4.b.
858 i. All contracts or transactions between the association
859 and any director, officer, corporation, firm, or association
860 that is not an affiliated condominium association or any other
861 entity in which an association director is also a director or
862 officer and financially interested.
863 j. Any contract or document regarding a conflict of
864 interest or possible conflict of interest as provided in ss.
865 468.4335, 468.436(2)(b)6. and 718.3027(3).
866 k. The notice of any unit owner meeting and the agenda for
867 the meeting, as required by s. 718.112(2)(d)3., no later than 14
868 days before the meeting. The notice must be posted in plain view
869 on the front page of the website or application, or on a
870 separate subpage of the website or application labeled "Notices"
871 which is conspicuously visible and linked from the front page.
872 The association must also post on its website or application any
873 document to be considered and voted on by the owners during the
874 meeting or any document listed on the agenda at least 7 days
875 before the meeting at which the document or the information
876 within the document will be considered.
877 l. Notice of any board meeting, the agenda, and any other
878 document required for the meeting as required by s.
879 718.112(2)(c), which must be posted no later than the date
880 required for notice under s. 718.112(2)(c).
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Bill No. CS/CS/HB 1021 (2024)
Amendment No. 1
881 m. The inspection reports described in ss. 553.899 and
882 718.301(4)(p) and any other inspection report relating to a
883 structural or life safety inspection of condominium property .
884 n. The association's most recent structural integrity
885 reserve study, if applicable.
886 o. Copies of all building permits issued for ongoing or
887 planned construction.
888 3. The association shall ensure that the information and
889 records described in paragraph (c), which are not allowed to be
890 accessible to unit owners, are not posted on the association's
891 website or application. If protected information or information
892 restricted from being accessible to unit owners is included in
893 documents that are required to be posted on the association's
894 website or application, the association shall ensure the
895 information is redacted before posting the documents.
896 Notwithstanding the foregoing, the association or its agent is
897 not liable for disclosing information that is prote cted or
898 restricted under this paragraph unless such disclosure was made
899 with a knowing or intentional disregard of the protected or
900 restricted nature of such information.
901 4. The failure of the association to post information
902 required under subparagraph 2. is not in and of itself
903 sufficient to invalidate any action or decision of the
904 association's board or its committees.
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Bill No. CS/CS/HB 1021 (2024)
Amendment No. 1
905 Section 8. Paragraphs (c), (d), (f), (g), and (q) of
906 subsection (2) of section 718.112, Florida Statutes, are
907 amended, and paragraph (r) is added to that subsection, to read:
908 718.112 Bylaws.—
909 (2) REQUIRED PROVISIONS.—The bylaws shall provide for the
910 following and, if they do not do so, shall be deemed to include
911 the following:
912 (c) Board of administration meetings.—In a residential
913 condominium association of more than 10 units, the board of
914 administration shall meet once each quarter for the purpose of
915 responding to inquiries from members and informing members on
916 the state of the condominium, including the status of any
917 construction or repair projects, the status of the association's
918 revenue and expenditures during the fiscal year, or other issues
919 affecting the association. Meetings of the board of
920 administration at which a quorum of the members is present are
921 open to all unit owners. Members of the board of administration
922 may use e-mail as a means of communication but may not cast a
923 vote on an association matter via e-mail. A unit owner may tape
924 record or videotape the meetings. The right to attend such
925 meetings includes the right to speak at such meetings with
926 reference to all designated agenda items. The division shall
927 adopt reasonable rules governing the tape recording and
928 videotaping of the meeting. The association may adopt written
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Amendment No. 1
929 reasonable rules governing the frequency, duration, and manner
930 of unit owner statements.
931 1. Adequate notice of all board meetings, which must
932 specifically identify all agenda items, must be posted
933 conspicuously on the condominium property at least 48 continuous
934 hours before the meeting except in an emergency. If 20 percent
935 of the voting interests petition the board to address an item of
936 business, the board, within 60 days after receipt of the
937 petition, shall place the item on the agenda at its next regular
938 board meeting or at a special meeting called for that purpose.
939 An item not included on the notice may be taken up on an
940 emergency basis by a vote of at least a majority plus one of the
941 board members. Such emergency action must be noticed and
942 ratified at the next regular board meeting. Written notice of a
943 meeting at which a nonemergency special assessment or an
944 amendment to rules regarding unit use will be considered must be
945 mailed, delivered, or electronically transmitted to the unit
946 owners and posted conspicuously on the condominium property at
947 least 14 days before the meeting. Evidence of compliance with
948 this 14-day notice requirement must be made by an affidavit
949 executed by the person providing the notice and filed with the
950 official records of the association. Notice of any meeting in
951 which regular or special assessments against unit owners are to
952 be considered must specifically state that assessments will be
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Bill No. CS/CS/HB 1021 (2024)
Amendment No. 1
953 considered and provide the estimated cost and description of the
954 purposes for such assessments.
955 2. Upon notice to the unit owners, the board shall, by
956 duly adopted rule, designate a specific location on the
957 condominium property at which where all notices of board
958 meetings must be posted. If there is no condominium property at
959 which where notices can be posted, notices shall be mailed,
960 delivered, or electronically transmitted to each unit owner at
961 least 14 days before the meeting. In lieu of or in addition to
962 the physical posting of the notice on the condominium property,
963 the association may, by reasonable rule, adopt a procedure for
964 conspicuously posting and repeatedly broadcasting the notice and
965 the agenda on a closed-circuit cable television system serving
966 the condominium association. However, if broadcast notice is
967 used in lieu of a notice physically posted on condominium
968 property, the notice and agenda must be broadcast at least four
969 times every broadcast hour of each day that a posted notice is
970 otherwise required under this section. If broadcast notice is
971 provided, the notice and agenda must be broadcast in a manner
972 and for a sufficient continuous length of time so as to allow an
973 average reader to observe the notice and read and comprehend the
974 entire content of the notice and the agenda. In addition to any
975 of the authorized means of providing notice of a meeting of the
976 board, the association may, by rule, adopt a procedure for
977 conspicuously posting the meeting notice and the agenda on a
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Bill No. CS/CS/HB 1021 (2024)
Amendment No. 1
978 website serving the condominium association for at least the
979 minimum period of time for which a notice of a meeting is also
980 required to be physically posted on the condominium property.
981 Any rule adopted shall, in addition to other matters, include a
982 requirement that the association send an electronic notice in
983 the same manner as a notice for a meeting of the members, which
984 must include a hyperlink to the website at which where the
985 notice is posted, to unit owners whose e-mail addresses are
986 included in the association's official records.
987 3. Notice of any meeting in which regular or special
988 assessments against unit owners are to be considered must
989 specifically state that assessments will be considered and
990 provide the estimated cost and description of the purposes for
991 such assessments. If an agenda item relates to the approval of a
992 contract for goods or services, a copy of the contract must be
993 provided with the notice and be made available for inspection
994 and copying upon a written request from a unit owner or made
995 available on the association's website or through an application
996 that can be downloaded on a mobile device.
997 4.2. Meetings of a committee to take final action on
998 behalf of the board or make recommendations to the board
999 regarding the association budget are subject to this paragraph.
1000 Meetings of a committee that does not take final action on
1001 behalf of the board or make recommendations to the board
1002 regarding the association budget are subject to this section,
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Bill No. CS/CS/HB 1021 (2024)
Amendment No. 1
1003 unless those meetings are exempted from this section by the
1004 bylaws of the association.
1005 5.3. Notwithstanding any other law, the requirement that
1006 board meetings and committee meetings be open to the unit owners
1007 does not apply to:
1008 a. Meetings between the board or a committee and the
1009 association's attorney, with respect to proposed or pending
1010 litigation, if the meeting is held for the purpose of seeking or
1011 rendering legal advice; or
1012 b. Board meetings held for the purpose of discussing
1013 personnel matters.
1014 (d) Unit owner meetings.—
1015 1. An annual meeting of the unit owners must be held at
1016 the location provided in the association bylaws and, if the
1017 bylaws are silent as to the location, the meeting must be he ld
1018 within 45 miles of the condominium property. However, such
1019 distance requirement does not apply to an association governing
1020 a timeshare condominium.
1021 2. Unless the bylaws provide otherwise, a vacancy on the
1022 board caused by the expiration of a director's term must be
1023 filled by electing a new board member, and the election must be
1024 by secret ballot. An election is not required if the number of
1025 vacancies equals or exceeds the number of candidates. For
1026 purposes of this paragraph, the term "candidate" means an
1027 eligible person who has timely submitted the written notice, as
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Bill No. CS/CS/HB 1021 (2024)
Amendment No. 1
1028 described in sub-subparagraph 4.a., of his or her intention to
1029 become a candidate. Except in a timeshare or nonresidential
1030 condominium, or if the staggered term of a board member does not
1031 expire until a later annual meeting, or if all members' terms
1032 would otherwise expire but there are no candidates, the terms of
1033 all board members expire at the annual meeting, and such members
1034 may stand for reelection unless prohibited by the bylaws. Board
1035 members may serve terms longer than 1 year if permitted by the
1036 bylaws or articles of incorporation. A board member may not
1037 serve more than 8 consecutive years unless approved by an
1038 affirmative vote of unit owners representing two-thirds of all
1039 votes cast in the election or unless there are not enough
1040 eligible candidates to fill the vacancies on the board at the
1041 time of the vacancy. Only board service that occurs on or after
1042 July 1, 2018, may be used when calculating a board member's term
1043 limit. If the number of board members whose terms expire at the
1044 annual meeting equals or exceeds the number of candidates, the
1045 candidates become members of the board effective upon the
1046 adjournment of the annual meeting. Unless the bylaws provide
1047 otherwise, any remaining vacancies shall be filled by the
1048 affirmative vote of the majority of the directors making up the
1049 newly constituted board even if the directors constitute less
1050 than a quorum or there is only one director. In a residential
1051 condominium association of more than 10 units or in a
1052 residential condominium association that does not include
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Bill No. CS/CS/HB 1021 (2024)
Amendment No. 1
1053 timeshare units or timeshare interests, co-owners of a unit may
1054 not serve as members of the board of directors at the same time
1055 unless they own more than one unit or unless there are not
1056 enough eligible candidates to fill the vacancies on the board at
1057 the time of the vacancy. A unit owner in a residential
1058 condominium desiring to be a candidate for board membership must
1059 comply with sub-subparagraph 4.a. and must be eligible to be a
1060 candidate to serve on the board of directors at the time of the
1061 deadline for submitting a notice of intent to run in order to
1062 have his or her name listed as a proper candidate on the ballot
1063 or to serve on the board. A person who has been suspended or
1064 removed by the division under this chapter, or who is delinquent
1065 in the payment of any assessment due to the association, is not
1066 eligible to be a candidate for board membership and may not be
1067 listed on the ballot. For purposes of this paragraph, a person
1068 is delinquent if a payment is not made by the due date as
1069 specifically identified in the declaration of condominium,
1070 bylaws, or articles of incorporation. If a due date is not
1071 specifically identified in the declaration of condominium,
1072 bylaws, or articles of incorporation, the due date is the first
1073 day of the assessment period. A person who has been convicted of
1074 any felony in this state or in a United States District or
1075 Territorial Court, or who has been convicted of any offense in
1076 another jurisdiction which would be considered a felony if
1077 committed in this state, is not eligible for board membership
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Bill No. CS/CS/HB 1021 (2024)
Amendment No. 1
1078 unless such felon's civil rights have been restored for at least
1079 5 years as of the date such person seeks election to the board.
1080 The validity of an action by the board is not affected if it is
1081 later determined that a board member is ineligible for board
1082 membership due to having been convicted of a felony. This
1083 subparagraph does not limit the term of a member of the board of
1084 a nonresidential or timeshare condominium.
1085 3. The bylaws must provide the method of calling meetings
1086 of unit owners, including annual meetings. Written notice of an
1087 annual meeting must include an agenda; be mailed, hand
1088 delivered, or electronically transmitted to each unit owner at
1089 least 14 days before the annual meeting; and be posted in a
1090 conspicuous place on the condominium property or association
1091 property at least 14 continuous days before the annual meeting.
1092 Written notice of a meeting other than an annual meeting must
1093 include an agenda; be mailed, hand delivered, or electronically
1094 transmitted to each unit owner; and be posted in a conspicuous
1095 place on the condominium property or association property within
1096 the timeframe specified in the bylaws. If the bylaws do not
1097 specify a timeframe for written notice of a meeting other than
1098 an annual meeting, notice must be provided at least 14
1099 continuous days before the meeting. Upon notice to the unit
1100 owners, the board shall, by duly adopted rule, designate a
1101 specific location on the condominium property or associa tion
1102 property at which where all notices of unit owner meetings must
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Bill No. CS/CS/HB 1021 (2024)
Amendment No. 1
1103 be posted. This requirement does not apply if there is no
1104 condominium property for posting notices. In lieu of, or in
1105 addition to, the physical posting of meeting notices, the
1106 association may, by reasonable rule, adopt a procedure for
1107 conspicuously posting and repeatedly broadcasting the notice and
1108 the agenda on a closed-circuit cable television system serving
1109 the condominium association. However, if broadcast notice is
1110 used in lieu of a notice posted physically on the condominium
1111 property, the notice and agenda must be broadcast at least four
1112 times every broadcast hour of each day that a posted notice is
1113 otherwise required under this section. If broadcast notice is
1114 provided, the notice and agenda must be broadcast in a manner
1115 and for a sufficient continuous length of time so as to allow an
1116 average reader to observe the notice and read and comprehend the
1117 entire content of the notice and the agenda. In addition to any
1118 of the authorized means of providing notice of a meeting of the
1119 board, the association may, by rule, adopt a procedure for
1120 conspicuously posting the meeting notice and the agenda on a
1121 website serving the condominium association for at least the
1122 minimum period of time for which a notice of a meeting is also
1123 required to be physically posted on the condominium property.
1124 Any rule adopted shall, in addition to other matters, include a
1125 requirement that the association send an electronic notice in
1126 the same manner as a notice for a meeting of the members, which
1127 must include a hyperlink to the website at which where the
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Bill No. CS/CS/HB 1021 (2024)
Amendment No. 1
1128 notice is posted, to unit owners whose e-mail addresses are
1129 included in the association's official records. Unless a unit
1130 owner waives in writing the right to receive notice of the
1131 annual meeting, such notice must be hand delivered, mailed, or
1132 electronically transmitted to each unit owner. Notice for
1133 meetings and notice for all other purposes must be mailed to
1134 each unit owner at the address last furnished to the association
1135 by the unit owner, or hand delivered to each unit owner.
1136 However, if a unit is owned by more than one person, the
1137 association must provide notice to the address that the
1138 developer identifies for that purpose and thereafter as one or
1139 more of the owners of the unit advise the association in
1140 writing, or if no address is given or the owners of the unit do
1141 not agree, to the address provided on the deed of record. An
1142 officer of the association, or the manager or other person
1143 providing notice of the association meeting, must provide an
1144 affidavit or United States Postal Service certificate of
1145 mailing, to be included in the official records of the
1146 association affirming that the notice was mailed or hand
1147 delivered in accordance with this provision.
1148 4. The members of the board of a residential condominium
1149 shall be elected by written ballot or voting machine. Proxies
1150 may not be used in electing the board in general elections or
1151 elections to fill vacancies caused by recall, resignation, or
1152 otherwise, unless otherwise provided in this chapter. This
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Amendment No. 1
1153 subparagraph does not apply to an association governing a
1154 timeshare condominium.
1155 a. At least 60 days before a scheduled election, the
1156 association shall mail, deliver, or electronically transmit, by
1157 separate association mailing or included in another association
1158 mailing, delivery, or transmission, including regularly
1159 published newsletters, to each unit owner entitled to a vote, a
1160 first notice of the date of the election. A unit owner or other
1161 eligible person desiring to be a candidate for the board must
1162 give written notice of his or her intent to be a candidate to
1163 the association at least 40 days before a scheduled election.
1164 Together with the written notice and agenda as set forth in
1165 subparagraph 3., the association shall mail, deliver, or
1166 electronically transmit a second notice of the election to all
1167 unit owners entitled to vote, together with a ballot that lists
1168 all candidates not less than 14 days or more than 34 days before
1169 the date of the election. Upon request of a candidate , an
1170 information sheet, no larger than 8 1/2 inches by 11 inches,
1171 which must be furnished by the candidate at least 35 days before
1172 the election, must be included with the mailing, delivery, or
1173 transmission of the ballot, with the costs of mailing, delivery ,
1174 or electronic transmission and copying to be borne by the
1175 association. The association is not liable for the contents of
1176 the information sheets prepared by the candidates. In order to
1177 reduce costs, the association may print or duplicate the
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Bill No. CS/CS/HB 1021 (2024)
Amendment No. 1
1178 information sheets on both sides of the paper. The division
1179 shall by rule establish voting procedures consistent with this
1180 sub-subparagraph, including rules establishing procedures for
1181 giving notice by electronic transmission and rules providing for
1182 the secrecy of ballots. Elections shall be decided by a
1183 plurality of ballots cast. There is no quorum requirement;
1184 however, at least 20 percent of the eligible voters must cast a
1185 ballot in order to have a valid election. A unit owner may not
1186 authorize any other person to vote his or her ballot, and any
1187 ballots improperly cast are invalid. A unit owner who violates
1188 this provision may be fined by the association in accordance
1189 with s. 718.303. A unit owner who needs assistance in casting
1190 the ballot for the reasons stated in s. 101.051 may obtain such
1191 assistance. The regular election must occur on the date of the
1192 annual meeting. Notwithstanding this sub-subparagraph, an
1193 election is not required unless more candidates file notices of
1194 intent to run or are nominated than board vacancies exist.
1195 b. A director of a Within 90 days after being elected or
1196 appointed to the board of an association of a residential
1197 condominium, each newly elected or appointed director shall:
1198 (I) Certify in writing to the secretary of the association
1199 that he or she has read the association's declaration of
1200 condominium, articles of incorporation, bylaws, and current
1201 written policies; that he or she will work to uphold such
1202 documents and policies to the best of his or her ability; and
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Amendment No. 1
1203 that he or she will faithfully discharge his or her fiduciary
1204 responsibility to the association's members.
1205 (II) Submit to the secretary of the association In lieu of
1206 this written certification, within 90 days after being elected
1207 or appointed to the board, the newly elected or appointed
1208 director may submit a certificate of having satisfactorily
1209 completed the educational curriculum administered by the
1210 division or a division-approved condominium education provider.
1211 The educational curriculum must be at least 4 hours long and
1212 include instruction on milestone inspections, structural
1213 integrity reserve studies, recordkeeping, financial literacy and
1214 transparency, levying of fines, and notice and meeting
1215 requirements within 1 year before or 90 days after the date of
1216 election or appointment.
1217
1218 Each newly elected or appointed director must submit to the
1219 secretary of the association the written certification and
1220 educational certificate within 1 year before being elected or
1221 appointed or 90 days after the date of election or appointment.
1222 A director of an association of a residential condominium who
1223 was elected or appointed before July 1, 2024, must comply with
1224 the written certification and educational certificate
1225 requirements in this sub-subparagraph by June 30, 2025. The
1226 written certification and or educational certificate is valid
1227 for 7 years after the date of issuance and does not have to be
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Amendment No. 1
1228 resubmitted as long as the director serves on the board without
1229 interruption during the 7-year period. A director who is
1230 appointed by the developer may satisfy the educational
1231 certificate requirement in sub-sub-subparagraph (II) for any
1232 subsequent appointment to a board by a developer within 7 years
1233 after the date of issuance of the most recent educational
1234 certificate, including any interruption of service on a board or
1235 appointment to a board in another association within that 7-year
1236 period. One year after submission of the most recent written
1237 certification and educational certificate, and annually
1238 thereafter, a director of an association of a residential
1239 condominium must submit to the secretary of the association a
1240 certificate of having satisfactorily completed at least 1 hour
1241 of continuing education administered by the division, or a
1242 division-approved condominium education provider, relating to
1243 any recent changes to this chapter and the related
1244 administrative rules during the past year. A director of an
1245 association of a residential condominium who fails to timely
1246 file the written certification and or educational certificate is
1247 suspended from service on the board until he or she complies
1248 with this sub-subparagraph. The board may temporarily fill the
1249 vacancy during the period of suspension. The secretary shall
1250 cause the association to retain a director's written
1251 certification and or educational certificate for inspection by
1252 the members for 7 5 years after a director's election or the
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1253 duration of the director's uninterrupted tenure, whichever is
1254 longer. Failure to have such written certification and or
1255 educational certificate on file does not affect the val idity of
1256 any board action.
1257 c. Any challenge to the election process must be commenced
1258 within 60 days after the election results are announced.
1259 5. Any approval by unit owners called for by this chapter
1260 or the applicable declaration or bylaws, including, but not
1261 limited to, the approval requirement in s. 718.111(8), must be
1262 made at a duly noticed meeting of unit owners and is subject to
1263 all requirements of this chapter or the applicable condominium
1264 documents relating to unit owner decision-making, except that
1265 unit owners may take action by written agreement, without
1266 meetings, on matters for which action by written agreement
1267 without meetings is expressly allowed by the applicable bylaws
1268 or declaration or any law that provides for such action.
1269 6. Unit owners may waive notice of specific meetings if
1270 allowed by the applicable bylaws or declaration or any law.
1271 Notice of meetings of the board of administration; unit owner
1272 meetings, except unit owner meetings called to recall board
1273 members under paragraph (l); and committee meetings may be given
1274 by electronic transmission to unit owners who consent to receive
1275 notice by electronic transmission. A unit owner who consents to
1276 receiving notices by electronic transmission is solely
1277 responsible for removing or bypassing filters that block receipt
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Amendment No. 1
1278 of mass e-mails sent to members on behalf of the association in
1279 the course of giving electronic notices.
1280 7. Unit owners have the right to participate in meetings
1281 of unit owners with reference to all designated agenda items.
1282 However, the association may adopt reasonable rules governing
1283 the frequency, duration, and manner of unit owner participation.
1284 8. A unit owner may tape record or videotape a meeting of
1285 the unit owners subject to reasonable rules adopted by the
1286 division.
1287 9. Unless otherwise provided in the bylaws, any vacancy
1288 occurring on the board before the expiration of a term may be
1289 filled by the affirmative vote of the majority of the remaining
1290 directors, even if the remaining directors constitute less than
1291 a quorum, or by the sole remaining director. In the alternative,
1292 a board may hold an election to fill the vacancy, in which case
1293 the election procedures must conform to sub-subparagraph 4.a.
1294 unless the association governs 10 units or fewer and has opted
1295 out of the statutory election process, in which case the bylaws
1296 of the association control. Unless otherwise provided in the
1297 bylaws, a board member appointed or elected under this section
1298 shall fill the vacancy for the unexpired term of the seat being
1299 filled. Filling vacancies created by recall is governed by
1300 paragraph (l) and rules adopted by the division.
1301 10. This chapter does not limit the use of general or
1302 limited proxies, require the use of general or limited proxies,
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Amendment No. 1
1303 or require the use of a written ballot or voting machine for any
1304 agenda item or election at any meeting of a timeshare
1305 condominium association or nonresidential condominium
1306 association.
1307
1308 Notwithstanding subparagraph (b)2. and sub-subparagraph 4.a., an
1309 association of 10 or fewer units may, by affirmative vote of a
1310 majority of the total voting interests, provide for different
1311 voting and election procedures in its bylaws, which may be by a
1312 proxy specifically delineating the different voting and election
1313 procedures. The different voting and election procedures may
1314 provide for elections to be conducted by limited or general
1315 proxy.
1316 (f) Annual budget.—
1317 1. The proposed annual budget of estimated revenues and
1318 expenses must be detailed and must show the amounts budgeted by
1319 accounts and expense classifications, including, at a minimum,
1320 any applicable expenses listed in s. 718.504(21). The board
1321 shall adopt the annual budget at least 14 days before the start
1322 of the association's fiscal year. In the event that the board
1323 fails to timely adopt the annual budget a second time, it is
1324 deemed a minor violation and the prior year's budget shall
1325 continue in effect until a new budget is adopted. A
1326 multicondominium association must adopt a separate budget of
1327 common expenses for each condominium the association operates
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Amendment No. 1
1328 and must adopt a separate budget of common expenses for the
1329 association. In addition, if the association maintains limited
1330 common elements with the cost to be shared only by those
1331 entitled to use the limited common elements as provided for in
1332 s. 718.113(1), the budget or a schedule attached to it must show
1333 the amount budgeted for this maintenance. If, after turnover of
1334 control of the association to the unit owners, any of the
1335 expenses listed in s. 718.504(21) are not applicable, they do
1336 not need to be listed.
1337 2.a. In addition to annual operating expenses, the budget
1338 must include reserve accounts for capital expenditures and
1339 deferred maintenance. These accounts must include, but are not
1340 limited to, roof replacement, building painting, and pavement
1341 resurfacing, regardless of the amount of deferred maintenance
1342 expense or replacement cost, and any other item that has a
1343 deferred maintenance expense or replacement cost that exceeds
1344 $10,000. The amount to be reserved must be computed using a
1345 formula based upon estimated remaining useful life and estimated
1346 replacement cost or deferred maintenance expense of the reserve
1347 item. In a budget adopted by an association that is required to
1348 obtain a structural integrity reserve study, reserves must be
1349 maintained for the items identified in paragraph (g) for which
1350 the association is responsible pursuant to the declaration of
1351 condominium, and the reserve amount for such items must be based
1352 on the findings and recommendations of the association's most
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Amendment No. 1
1353 recent structural integrity reserve study. With respect to items
1354 for which an estimate of useful life is not readily
1355 ascertainable or with an estimated remaining useful life of
1356 greater than 25 years, an association is not required to reserve
1357 replacement costs for such items, but an association must
1358 reserve the amount of deferred maintenance expense, if any,
1359 which is recommended by the structural integrity reserve study
1360 for such items. The association may adjust replacement reserve
1361 assessments annually to take into account an inflation
1362 adjustment and any changes in estimates or extension of the
1363 useful life of a reserve item caused by deferred maintenance.
1364 The members of a unit-owner-controlled association may
1365 determine, by a majority vote of the total voting interests of
1366 the association, to provide no reserves or less reserves than
1367 required by this subsection. For a budget adopted on or after
1368 December 31, 2024, the members of a unit-owner-controlled
1369 association that must obtain a structural integrity reserve
1370 study may not determine to provide no reserves or less reserves
1371 than required by this subsection for items listed in paragraph
1372 (g), except that members of an association operating a
1373 multicondominium may determine to provide no reserves or less
1374 reserves than required by this subsection if an alternative
1375 funding method has been approved by the division. If the local
1376 building official, as defined in s. 468.603, determines that the
1377 entire condominium building is uninhabitable due to a natural
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Amendment No. 1
1378 emergency, as defined in s. 252.34, the board, upon the approval
1379 of a majority of its members, may pause the contribution to its
1380 reserves or reduce reserve funding until the local building
1381 official determines that the condominium building is habitable.
1382 Any reserve account funds held by the association m ay be
1383 expended, pursuant to the board's determination, to make the
1384 condominium building and its structures habitable. Upon the
1385 determination by the local building official that the
1386 condominium building is habitable, the association must
1387 immediately resume contributing funds to its reserves.
1388 b. Before turnover of control of an association by a
1389 developer to unit owners other than a developer under s.
1390 718.301, the developer-controlled association may not vote to
1391 waive the reserves or reduce funding of the reserves. If a
1392 meeting of the unit owners has been called to determine whether
1393 to waive or reduce the funding of reserves and no such result is
1394 achieved or a quorum is not attained, the reserves included in
1395 the budget shall go into effect. After the turnover , the
1396 developer may vote its voting interest to waive or reduce the
1397 funding of reserves.
1398 3. Reserve funds and any interest accruing thereon shall
1399 remain in the reserve account or accounts, and may be used only
1400 for authorized reserve expenditures unless their use for other
1401 purposes is approved in advance by a majority vote of all the
1402 total voting interests of the association. Before turnover of
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Amendment No. 1
1403 control of an association by a developer to unit owners other
1404 than the developer pursuant to s. 718.301, the deve loper-
1405 controlled association may not vote to use reserves for purposes
1406 other than those for which they were intended. For a budget
1407 adopted on or after December 31, 2024, members of a unit -owner-
1408 controlled association that must obtain a structural integrity
1409 reserve study may not vote to use reserve funds, or any interest
1410 accruing thereon, for any other purpose other than the
1411 replacement or deferred maintenance costs of the components
1412 listed in paragraph (g).
1413 4. The only voting interests that are eligible to vote on
1414 questions that involve waiving or reducing the funding of
1415 reserves, or using existing reserve funds for purposes other
1416 than purposes for which the reserves were intended, are the
1417 voting interests of the units subject to assessment to fund the
1418 reserves in question. Proxy questions relating to waiving or
1419 reducing the funding of reserves or using existing reserve funds
1420 for purposes other than purposes for which the reserves were
1421 intended must contain the following statement in capitalized,
1422 bold letters in a font size larger than any other used on the
1423 face of the proxy ballot: WAIVING OF RESERVES, IN WHOLE OR IN
1424 PART, OR ALLOWING ALTERNATIVE USES OF EXISTING RESERVES MAY
1425 RESULT IN UNIT OWNER LIABILITY FOR PAYMENT OF UNANTICIPATED
1426 SPECIAL ASSESSMENTS REGARDING THOSE ITEMS.
1427 (g) Structural integrity reserve study.—
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Amendment No. 1
1428 1. A residential condominium association must have a
1429 structural integrity reserve study completed at least every 10
1430 years after the condominium's creation for each building on the
1431 condominium property that is three stories or higher in height,
1432 as determined by the Florida Building Code, which includes, at a
1433 minimum, a study of the following items as related to the
1434 structural integrity and safety of the building:
1435 a. Roof.
1436 b. Structure, including load-bearing walls and other
1437 primary structural members and primary structural systems as
1438 those terms are defined in s. 627.706.
1439 c. Fireproofing and fire protection systems.
1440 d. Plumbing.
1441 e. Electrical systems.
1442 f. Waterproofing and exterior painting.
1443 g. Windows and exterior doors.
1444 h. Any other item that has a deferred maintenance expense
1445 or replacement cost that exceeds $10,000 and the failure to
1446 replace or maintain such item negatively affects the items
1447 listed in sub-subparagraphs a.-g., as determined by the visual
1448 inspection portion of the structural integrity reserve study.
1449 2. A structural integrity reserve study is based on a
1450 visual inspection of the condominium property. A structural
1451 integrity reserve study may be performed by any person qualified
1452 to perform such study. However, the visual inspection portion of
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Bill No. CS/CS/HB 1021 (2024)
Amendment No. 1
1453 the structural integrity reserve study must be performed or
1454 verified by an engineer licensed under chapter 471, an architect
1455 licensed under chapter 481, or a person certified a s a reserve
1456 specialist or professional reserve analyst by the Community
1457 Associations Institute or the Association of Professional
1458 Reserve Analysts.
1459 3. At a minimum, a structural integrity reserve study must
1460 identify each item of the condominium property being visually
1461 inspected, state the estimated remaining useful life and the
1462 estimated replacement cost or deferred maintenance expense of
1463 each item of the condominium property being visually inspected,
1464 and provide a reserve funding schedule with a recommended annual
1465 reserve amount that achieves the estimated replacement cost or
1466 deferred maintenance expense of each item of condominium
1467 property being visually inspected by the end of the estimated
1468 remaining useful life of the item. The structural integrity
1469 reserve study may recommend that reserves do not need to be
1470 maintained for any item for which an estimate of useful life and
1471 an estimate of replacement cost cannot be determined, or the
1472 study may recommend a deferred maintenance expense amount for
1473 such item. The structural integrity reserve study may recommend
1474 that reserves for replacement costs do not need to be maintained
1475 for any item with an estimated remaining useful life of greater
1476 than 25 years, but the study may recommend a deferred
1477 maintenance expense amount for such item.
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Amendment No. 1
1478 4. This paragraph does not apply to buildings less than
1479 three stories in height; single-family, two-family, or three-
1480 family dwellings with three or fewer habitable stories above
1481 ground; any portion or component of a building that has not been
1482 submitted to the condominium form of ownership; or any portion
1483 or component of a building that is maintained by a party other
1484 than the association.
1485 5. Before a developer turns over control of an association
1486 to unit owners other than the developer, the developer must have
1487 a turnover inspection report in compliance with s. 718.301(4)(p)
1488 and (q) for each building on the condominium property that is
1489 three stories or higher in height.
1490 6. Associations existing on or before July 1, 2022, which
1491 are controlled by unit owners other than the developer, must
1492 have a structural integrity reserve study completed by December
1493 31, 2024, for each building on the condominium property that is
1494 three stories or higher in height. An association that is
1495 required to complete a milestone inspection in accordance with
1496 s. 553.899 on or before December 31, 2026, may complete the
1497 structural integrity reserve study simultaneously with the
1498 milestone inspection. In no event may the structural integrity
1499 reserve study be completed after December 31, 2026.
1500 7. If the milestone inspection required by s. 553.899, or
1501 an inspection completed for a similar local requirement, was
1502 performed within the past 5 years and meets the requirements of
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Amendment No. 1
1503 this paragraph, such inspection may be used in place of the
1504 visual inspection portion of the structural integrity reserve
1505 study.
1506 8. If the officers or directors of an association
1507 willfully and knowingly fail to complete a structural integrity
1508 reserve study pursuant to this paragraph, such failure is a
1509 breach of an officer's and director's fiduciary relationship to
1510 the unit owners under s. 718.111(1).
1511 9. Within 45 days after receiving the structural integrity
1512 reserve study, the association must distribute a copy of the
1513 study to each unit owner or deliver to each unit owner a notice
1514 that the completed study is available for inspection and copying
1515 upon a written request. Distribution of a copy of the study or
1516 notice must be made by United States mail or personal delivery
1517 to the mailing address, property address, or any other address
1518 of the owner provided to fulfill the association's notice
1519 requirements under this chapter, or by electronic transmission
1520 to the e-mail address or facsimile number provided to fulfill
1521 the association's notice requirements to unit owners who
1522 previously consented to receive notice by electronic
1523 transmission.
1524 10. Within 45 days after receiving the structural integrity
1525 reserve study, the association must provide the division with a
1526 statement indicating that such study was completed and that the
1527 association provided or made available such study to each unit
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Amendment No. 1
1528 owner in accordance with this section. Such statement shall be
1529 provided to the division in the manner provided by the division
1530 using a form posted on the division's website.
1531 (q) Director or officer offenses.—
1532 1. A director or an officer charged by information or
1533 indictment with any of the following crimes must be removed from
1534 office:
1535 a. Forgery, as provided in s. 831.01, of a ballot envelope
1536 or voting certificate used in a condominium association
1537 election.
1538 b. Theft, as provided in s. 812.014, or embezzlement
1539 involving the association's funds or property.
1540 c. Destruction of, or the refusal to allow inspection or
1541 copying of, an official record of a condominium assoc iation
1542 which is accessible to unit owners within the time periods
1543 required by general law, in furtherance of any crime. Such act
1544 constitutes tampering with physical evidence as provided in s.
1545 918.13.
1546 d. Obstruction of justice under chapter 843.
1547 2. The board shall fill the vacancy in accordance with
1548 paragraph (2)(d) a felony theft or embezzlement offense
1549 involving the association's funds or property must be removed
1550 from office, creating a vacancy in the office to be filled
1551 according to law until the end of the period of the suspension
1552 or the end of the director's term of office, whichever occurs
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Amendment No. 1
1553 first. While such director or officer has such criminal charge
1554 pending, he or she may not be appointed or elected to a position
1555 as a director or officer of any association and may not have
1556 access to the official records of any association, except
1557 pursuant to a court order. However, if the charges are resolved
1558 without a finding of guilt, the director or officer shall be
1559 reinstated for the remainder of his or her term of office, if
1560 any.
1561 (r) Fraudulent voting activities relating to association
1562 elections; penalties.—
1563 1. A person who engages in the following acts of
1564 fraudulent voting activity relating to association elections
1565 commits a misdemeanor of the first degree, punishable as
1566 provided in s. 775.082 or s. 775.083:
1567 a. Willfully and falsely swearing to or affirming an oath
1568 or affirmation, or willfully procuring another person to falsely
1569 swear to or affirm an oath or affirmation, in connection with or
1570 arising out of voting activities.
1571 b. Perpetrating or attempting to perpetrate, or aiding in
1572 the perpetration of, fraud in connection with a vote cast, to be
1573 cast, or attempted to be cast.
1574 c. Preventing a member from voting or preventing a member
1575 from voting as he or she intended by fraudulently changing or
1576 attempting to change a ballot, ballot envelope, vote, or voting
1577 certificate of the member.
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Amendment No. 1
1578 d. Menacing, threatening, or using bribery or any other
1579 corruption to attempt, directly or indirectly, to influence,
1580 deceive, or deter a member when the member is voting.
1581 e. Giving or promising, directly or indirectly, anything
1582 of value to another member with the intent to buy the vote of
1583 that member or another member or to corruptly influence that
1584 member or another member in casting his or her vote. This sub-
1585 subparagraph does not apply to any food served which is to be
1586 consumed at an election rally or a meeting or to any item of
1587 nominal value which is used as an election advertisement,
1588 including a campaign message designed to be worn by a member.
1589 f. Using or threatening to use, directly or indirectly,
1590 force, violence, or intimidation or any tactic of coercion or
1591 intimidation to induce or compel a member to vote or refrain
1592 from voting in an election or on a particular ballot measure.
1593 2. Each of the following acts constitutes a misdemeanor of
1594 the first degree, punishable as provided in s. 775.082 or s.
1595 775.083:
1596 a. Knowingly aiding, abetting, or advising a person in the
1597 commission of a fraudulent voting activity related to
1598 association elections.
1599 b. Agreeing, conspiring, combining, or confederating with
1600 at least one other person to commit a fraudulent voting activity
1601 related to association elections.
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Amendment No. 1
1602 c. Having knowledge of a fraudulent voting activity
1603 related to association elections and giving any aid to the
1604 offender with intent that the offender avoid or escape
1605 detection, arrest, trial, or punishment. This sub-subparagraph
1606 does not apply to a licensed attorney giving legal advice to a
1607 client.
1608 Section 9. Subsection (5) of section 718.113, Florida
1609 Statutes, is amended to read:
1610 718.113 Maintenance; limitation upon improvement; display
1611 of flag; hurricane shutters and protection; display of religious
1612 decorations.—
1613 (5) To protect the health, safety, and welfare of the
1614 people of the state and to ensure uniformity and consistency in
1615 the hurricane protections installed by condominium associations
1616 and unit owners, this subsection applies to all residential and
1617 mixed-use condominiums in the state, regardless of when the
1618 condominium is created pursuant to the declaration of
1619 condominium. Each board of administration of a residential
1620 condominium or mixed-use condominium must shall adopt hurricane
1621 protection shutter specifications for each building within each
1622 condominium operated by the association which may shall include
1623 color, style, and other factors deemed relevant by the board.
1624 All specifications adopted by the board must comply with the
1625 applicable building code. The installation, maintenance, repair,
1626 replacement, and operation of hurricane protection in accordance
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Amendment No. 1
1627 with this subsection is not considered a material alteration or
1628 substantial addition to the common elements or association
1629 property within the meaning of this section.
1630 (a) The board may, subject to s. 718.3026 and the approval
1631 of a majority of voting interests of the residential condominium
1632 or mixed-use condominium, install or require that unit owners
1633 install hurricane shutters, impact glass, code-compliant windows
1634 or doors, or other types of code-compliant hurricane protection
1635 that complies comply with or exceeds exceed the applicable
1636 building code. A vote of the unit owners to require the
1637 installation of hurricane protection must be set forth in a
1638 certificate attesting to such vote and include the date th at the
1639 hurricane protection must be installed. The board must record
1640 the certificate in the public records of the county in which the
1641 condominium is located. Once the certificate is recorded, the
1642 board must mail or hand deliver a copy of the recorded
1643 certificate to the unit owners at the owners' addresses, as
1644 reflected in the records of the association. The board may
1645 provide to unit owners who previously consented to receive
1646 notice by electronic transmission a copy of the recorded
1647 certificate by electronic transmission. The failure to record
1648 the certificate or send a copy of the recorded certificate to
1649 the unit owners does not affect the validity or enforceability
1650 of the vote of the unit owners. However, A vote of the unit
1651 owners under this paragraph is not required if the installation,
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COMMITTEE/SUBCOMMITTEE AMENDMENT
Bill No. CS/CS/HB 1021 (2024)
Amendment No. 1
1652 maintenance, repair, and replacement of the hurricane shutters,
1653 impact glass, code-compliant windows or doors, or other types of
1654 code-compliant hurricane protection, or any exterior windows,
1655 doors, or other apertures protected by the hurricane protection,
1656 is are the responsibility of the association pursuant to the
1657 declaration of condominium as originally recorded or as amended,
1658 or if the unit owners are required to install hurricane
1659 protection pursuant to the declaration of condominium as
1660 originally recorded or as amended. If hurricane protection or
1661 laminated glass or window film architecturally designed to
1662 function as hurricane protection that complies with or exceeds
1663 the current applicable building code has been previously
1664 installed, the board may not install the same type of hurricane
1665 shutters, impact glass, code-compliant windows or doors, or
1666 other types of code-compliant hurricane protection or require
1667 that unit owners install the same type of hurricane protection
1668 unless the installed hurricane protection has reached the end of
1669 its useful life or unless it is necessary to prevent damage to
1670 the common elements or to a unit except upon approval by a
1671 majority vote of the voting interests.
1672 (b) The association is responsible for the maintenance,
1673 repair, and replacement of the hurricane shutters, impact glass,
1674 code-compliant windows or doors, or other types of code -
1675 compliant hurricane protection authorized by this subsection if
1676 such property is the responsibility of the association pursuant
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COMMITTEE/SUBCOMMITTEE AMENDMENT
Bill No. CS/CS/HB 1021 (2024)
Amendment No. 1
1677 to the declaration of condominium. If the hurricane shutters,
1678 impact glass, code-compliant windows or doors, or other types of
1679 code-compliant hurricane protection are the responsibility of
1680 the unit owners pursuant to the declaration of condominium, the
1681 maintenance, repair, and replacement of such items are the
1682 responsibility of the unit owner.
1683 (b)(c) The board may operate shutters, impact glass, code-
1684 compliant windows or doors, or other types of code-compliant
1685 hurricane protection installed pursuant to this subsection
1686 without permission of the unit owners only if such operation is
1687 necessary to preserve and protect the condominium property or
1688 and association property. The installation, replacement,
1689 operation, repair, and maintenance of such shutters, impact
1690 glass, code-compliant windows or doors, or other types of code-
1691 compliant hurricane protection in accordance with the procedures
1692 set forth in this paragraph are not a material alteration to the
1693 common elements or association property within the meaning of
1694 this section.
1695 (c)(d) Notwithstanding any other provision in the
1696 residential condominium or mixed-use condominium documents, if
1697 approval is required by the documents, a board may not refuse to
1698 approve the installation or replacement of hurricane shutters,
1699 impact glass, code-compliant windows or doors, or other types of
1700 code-compliant hurricane protection by a unit owner which
1701 conforms conforming to the specifications adopted by the board.
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COMMITTEE/SUBCOMMITTEE AMENDMENT
Bill No. CS/CS/HB 1021 (2024)
Amendment No. 1
1702 However, a board may require the unit owner to adhere to an
1703 existing unified building scheme regarding the external
1704 appearance of the condominium.
1705 (d) A unit owner is not responsible for the cost of any
1706 removal or reinstallation of hurricane protection, including
1707 exterior windows, doors, or other apertures, if its removal is
1708 necessary for the maintenance, repair, or replacement of other
1709 condominium property or association property for which the
1710 association is responsible. The board shall determine if the
1711 removal or reinstallation of hurricane protection must be
1712 completed by the unit owner or the association. If such removal
1713 or reinstallation is completed by the association, the costs
1714 incurred by the association may not be charged to the unit
1715 owner. If such removal or reinstallation is completed by the
1716 unit owner, the association must reimburse the unit owner for
1717 the cost of the removal or reinstallation or the association
1718 must apply a credit toward future assessments in the amount of
1719 the unit owner's cost to remove or reinstall the hurricane
1720 protection.
1721 (e) If the removal or reinstallation of hurricane
1722 protection, including exterior windows, doors, or other
1723 apertures, is the responsibility of the unit owner and the
1724 association completes such removal or reinstallation and then
1725 charges the unit owner for such removal or reinstallation, such
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COMMITTEE/SUBCOMMITTEE AMENDMENT
Bill No. CS/CS/HB 1021 (2024)
Amendment No. 1
1726 charges are enforceable as an assessment and may be collected in
1727 the manner provided under s. 718.116.
1728 Section 10. Paragraph (e) of subsection (1) of section
1729 718.115, Florida Statutes, is amended to read:
1730 718.115 Common expenses and common surplus.—
1731 (1)
1732 (e)1. Except as provided in s. 718.113(5)(d), The expense
1733 of installation, replacement, operation, repair, and maintenance
1734 of hurricane shutters, impact glass, code-compliant windows or
1735 doors, or other types of code-compliant hurricane protection by
1736 the board pursuant to s. 718.113(5) constitutes a common expense
1737 and shall be collected as provided in this section if the
1738 association is responsible for the maintenance, repair, and
1739 replacement of the hurricane shutters, impact glass, code-
1740 compliant windows or doors, or other types of code-compliant
1741 hurricane protection pursuant to the declaration of condominium.
1742 However, if the installation of maintenance, repair, and
1743 replacement of the hurricane shutters, impact glass, code-
1744 compliant windows or doors, or other types of code-compliant
1745 hurricane protection is are the responsibility of the unit
1746 owners pursuant to the declaration of condominium or a vote of
1747 the unit owners under s. 718.113(5), the cost of the
1748 installation of the hurricane shutters, impact glass, code-
1749 compliant windows or doors, or other types of code-compliant
1750 hurricane protection by the association is not a common expense
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COMMITTEE/SUBCOMMITTEE AMENDMENT
Bill No. CS/CS/HB 1021 (2024)
Amendment No. 1
1751 and must shall be charged individually to the unit owners based
1752 on the cost of installation of the hurricane shutters, impact
1753 glass, code-compliant windows or doors, or other types of code-
1754 compliant hurricane protection appurtenant to the unit. The
1755 costs of installation of hurricane protection are enforceable as
1756 an assessment and may be collected in the manner provided under
1757 s. 718.116.
1758 2. Notwithstanding s. 718.116(9), and regardless of
1759 whether or not the declaration requires the association or unit
1760 owners to install, maintain, repair, or replace hurricane
1761 shutters, impact glass, code-compliant windows or doors, or
1762 other types of code-compliant hurricane protection, the a unit
1763 owner of a unit in which who has previously installed hurricane
1764 shutters in accordance with s. 718.113(5) that comply with the
1765 current applicable building code shall receive a credit when the
1766 shutters are installed; a unit owner who has previously
1767 installed impact glass or code-compliant windows or doors that
1768 comply with the current applicable building code shall receive a
1769 credit when the impact glass or code-compliant windows or doors
1770 are installed; and a unit owner who has installed other types of
1771 code-compliant hurricane protection that complies comply with
1772 the current applicable building code has been installed is
1773 excused from any assessment levied by the association or shall
1774 receive a credit if when the same type of other code-compliant
1775 hurricane protection is installed by the association. A credit
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COMMITTEE/SUBCOMMITTEE AMENDMENT
Bill No. CS/CS/HB 1021 (2024)
Amendment No. 1
1776 is applicable if the installation of hurricane protection is for
1777 all other units that do not have hurricane protection and the
1778 cost of such installation is funded by the association's budget,
1779 including the use of reserve funds. The credit must be equ al to
1780 the amount that the unit owner would have been assessed to
1781 install the hurricane protection, and the credit shall be equal
1782 to the pro rata portion of the assessed installation cost
1783 assigned to each unit. However, such unit owner remains
1784 responsible for the pro rata share of expenses for hurricane
1785 shutters, impact glass, code-compliant windows or doors, or
1786 other types of code-compliant hurricane protection installed on
1787 common elements and association property by the board pursuant
1788 to s. 718.113(5) and remains responsible for a pro rata share of
1789 the expense of the replacement, operation, repair, and
1790 maintenance of such shutters, impact glass, code-compliant
1791 windows or doors, or other types of code-compliant hurricane
1792 protection. Expenses for the installation, replacement,
1793 operation, repair, or maintenance of hurricane protection on
1794 common elements and association property are common expenses.
1795 Section 11. Paragraph (a) of subsection (4) of section
1796 718.121, Florida Statutes, is amended to read:
1797 718.121 Liens.—
1798 (4)(a) If an association sends out an invoice for
1799 assessments or a unit's statement of the account described in s.
1800 718.111(12)(a)11.c. s. 718.111(12)(a)11.b., the invoice for
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COMMITTEE/SUBCOMMITTEE AMENDMENT
Bill No. CS/CS/HB 1021 (2024)
Amendment No. 1
1801 assessments or the unit's statement of account must be delivered
1802 to the unit owner by first-class United States mail or by
1803 electronic transmission to the unit owner's e-mail address
1804 maintained in the association's official records.
1805 Section 12. Section 718.124, Florida Statutes, is amended
1806 to read:
1807 718.124 Limitation on actions by association.—The statute
1808 of limitations and repose for any actions in law or equity which
1809 a condominium association or a cooperative association may have
1810 shall not begin to run until the unit owners have elected a
1811 majority of the members of the board of administration.
1812 Section 13. Section 718.1224, Florida Statutes, is amended
1813 to read:
1814 718.1224 Prohibition against SLAPP suits; other prohibited
1815 actions.—
1816 (1) It is the intent of the Legislature to protect the
1817 right of condominium unit owners to exercise their rights to
1818 instruct their representatives and petition for redress of
1819 grievances before their condominium association and the various
1820 governmental entities of this state as protected by the First
1821 Amendment to the United States Constitution and s. 5, Art. I of
1822 the State Constitution. The Legislature recognizes that
1823 strategic lawsuits against public participation, or "SLAPP
1824 suits," as they are typically referred to, have occurred when
1825 association members are sued by condominium associations,
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COMMITTEE/SUBCOMMITTEE AMENDMENT
Bill No. CS/CS/HB 1021 (2024)
Amendment No. 1
1826 individuals, business entities, or governmental entities arising
1827 out of a condominium unit owner's appearance and presentation
1828 before the board of the condominium association or a
1829 governmental entity on matters related to the condominium
1830 association. However, it is the public policy of this state that
1831 condominium associations, governmental entities, business
1832 organizations, and individuals not engage in SLAPP suits,
1833 because such actions are inconsistent with the right of
1834 condominium unit owners to participate in their condominium
1835 association and in the state's institutions of government.
1836 Therefore, the Legislature finds and declares that prohibiting
1837 such lawsuits by condominium associations, governmental
1838 entities, business entities, and individuals against condominium
1839 unit owners who address matters concerning their condominium
1840 association will preserve this fundamental state policy,
1841 preserve the constitutional rights of condominium unit owners,
1842 and ensure the continuation of representative government in this
1843 state, and ensure unit owner participation in condominium
1844 associations. It is the intent of the Legislature that such
1845 lawsuits be expeditiously disposed of by the courts. As used in
1846 this subsection, the term "governmental entity" means the state,
1847 including the executive, legislative, and judicial branches of
1848 government; law enforcement agencies; the independent
1849 establishments of the state, counties, municipalities,
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Bill No. CS/CS/HB 1021 (2024)
Amendment No. 1
1850 districts, authorities, boards, or commissions; or any agencies
1851 of these branches that are subject to chapter 286.
1852 (2) A condominium association, governmental entity,
1853 business organization, or individual in this state may not file
1854 or cause to be filed through its employees or agents any
1855 lawsuit, cause of action, claim, cross-claim, or counterclaim
1856 against a condominium unit owner without merit and solel y
1857 because such condominium unit owner has exercised the right to
1858 instruct his or her representatives or the right to petition for
1859 redress of grievances before the condominium association or the
1860 various governmental entities of this state, as protected by the
1861 First Amendment to the United States Constitution and s. 5, Art.
1862 I of the State Constitution.
1863 (3) It is unlawful for a condominium association to fine,
1864 discriminatorily increase a unit owner's assessments,
1865 discriminatorily decrease services to a unit owner, or bring or
1866 threaten to bring an action for possession or other civil
1867 action, including a defamation, libel, slander, or tortious
1868 interference action, based on conduct described in this
1869 subsection. In order for the unit owner to raise the defense of
1870 retaliatory conduct, the unit owner must have acted in good
1871 faith and not for any improper purposes, such as to harass or to
1872 cause unnecessary delay or for frivolous purpose or needless
1873 increase in the cost of litigation. Examples of conduct for
1874 which a condominium association, an officer, a director, or an
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COMMITTEE/SUBCOMMITTEE AMENDMENT
Bill No. CS/CS/HB 1021 (2024)
Amendment No. 1
1875 agent of an association may not retaliate include, but are not
1876 limited to, situations in which:
1877 (a) The unit owner has in good faith complained to a
1878 governmental agency charged with responsibility for enforcement
1879 of a building, housing, or health code of a suspected violation
1880 applicable to the condominium;
1881 (b) The unit owner has organized, encouraged, or
1882 participated in a unit owners' organization;
1883 (c) The unit owner submitted information or filed a
1884 complaint alleging criminal violations or violations of this
1885 chapter or the rules of the division with the division, the
1886 Office of the Condominium Ombudsman, a law enforcement agency, a
1887 state attorney, the Attorney General, or any other governmental
1888 agency;
1889 (d) The unit owner has exercised his or her rights under
1890 this chapter;
1891 (e) The unit owner has complained to the association or
1892 any of the association's representatives for the failure to
1893 comply with this chapter or chapter 617; or
1894 (f) The unit owner has made public statements critical of
1895 the operation or management of the association.
1896 (4) Evidence of retaliatory conduct may be raised by the
1897 unit owner as a defense in any action brought against him or her
1898 for possession.
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Bill No. CS/CS/HB 1021 (2024)
Amendment No. 1
1899 (5)(3) A condominium unit owner sued by a condominium
1900 association, governmental entity, business organization, or
1901 individual in violation of this section has a right to an
1902 expeditious resolution of a claim that the suit is in violation
1903 of this section. A condominium unit owner may petition the court
1904 for an order dismissing the action or granting final judgment in
1905 favor of that condominium unit owner. The petitioner may file a
1906 motion for summary judgment, together with supplemental
1907 affidavits, seeking a determination that the condominium
1908 association's, governmental entity's, business organization's,
1909 or individual's lawsuit has been brought in violation of this
1910 section. The condominium association, governmental entity,
1911 business organization, or individual shall thereafter file its
1912 response and any supplemental affidavits. As soon as
1913 practicable, the court shall set a hearing on the petitioner's
1914 motion, which shall be held at the earliest possible time after
1915 the filing of the condominium association's, governmental
1916 entity's, business organization's, or individual's response. The
1917 court may award the condominium unit owner sued by the
1918 condominium association, governmental entity, business
1919 organization, or individual actual damages arising from the
1920 condominium association's, governmental entity's, individual's,
1921 or business organization's violation of this section. A court
1922 may treble the damages awarded to a prevailing condominium unit
1923 owner and shall state the basis for the treble damages award in
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Bill No. CS/CS/HB 1021 (2024)
Amendment No. 1
1924 its judgment. The court shall award the prevailing party
1925 reasonable attorney's fees and costs incurred in connection with
1926 a claim that an action was filed in violation of this section.
1927 (6)(4) Condominium associations may not expend association
1928 funds in prosecuting a SLAPP suit against a condominium unit
1929 owner.
1930 (7) Condominium associations may not expend association
1931 funds in support of a defamation, libel, slander, or tortious
1932 interference action against a unit owner or any other claim
1933 against a unit owner based on conduct described in subsection
1934 (3).
1935 Section 14. Section 718.128, Florida Statutes, is amended
1936 to read:
1937 718.128 Electronic voting.—The association may conduct
1938 elections and other unit owner votes through an Internet -based
1939 online voting system if a unit owner consents, electronically or
1940 in writing, to online voting and if the following requirements
1941 are met:
1942 (1) The association provides each unit owner with:
1943 (a) A method to authenticate the unit owner's identity to
1944 the online voting system.
1945 (b) For elections of the board, a method to transmit an
1946 electronic ballot to the online voting system that ensures the
1947 secrecy and integrity of each ballot.
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Bill No. CS/CS/HB 1021 (2024)
Amendment No. 1
1948 (c) A method to confirm, at least 14 days before the
1949 voting deadline, that the unit owner's electronic device can
1950 successfully communicate with the online voting system.
1951 (2) The association uses an online voting system that is:
1952 (a) Able to authenticate the unit owner's identity.
1953 (b) Able to authenticate the validity of each electronic
1954 vote to ensure that the vote is not altered in transit.
1955 (c) Able to transmit a receipt from the online voting
1956 system to each unit owner who casts an electronic vote.
1957 (d) For elections of the board of administration, able to
1958 permanently separate any authentication or identifying
1959 information from the electronic election ballot, rendering it
1960 impossible to tie an election ballot to a specific unit owner.
1961 (e) Able to store and keep electronic votes accessible to
1962 election officials for recount, inspection, and review purposes.
1963 (3) A unit owner voting electronically pursuant to this
1964 section shall be counted as being in attendance at the meeting
1965 for purposes of determining a quorum. A substantive vote of the
1966 unit owners may not be taken on any issue other than the issues
1967 specifically identified in the electronic vote, when a quorum is
1968 established based on unit owners voting electronically pursuant
1969 to this section.
1970 (4) This section applies to an association that provides
1971 for and authorizes an online voting system pursuant to this
1972 section by a board resolution. If the board authorizes online
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Bill No. CS/CS/HB 1021 (2024)
Amendment No. 1
1973 voting, the board must honor a unit owners’ request to vote
1974 electronically at all subsequent elections, unless such unit
1975 owner opts-out of online voting. The board resolution must
1976 provide that unit owners receive notice of the opportunity to
1977 vote through an online voting system, must establish reasonable
1978 procedures and deadlines for unit owners to consent,
1979 electronically or in writing, to online voting, and must
1980 establish reasonable procedures and deadlines for unit owners to
1981 opt out of online voting after giving consent. Written notice of
1982 a meeting at which the resolution will be considered must be
1983 mailed, delivered, or electronically transmitted to the unit
1984 owners and posted conspicuously on the condominium property or
1985 association property at least 14 days before the meeting.
1986 Evidence of compliance with the 14-day notice requirement must
1987 be made by an affidavit executed by the person providing the
1988 notice and filed with the official records of the association.
1989 (5) A unit owner's consent to online voting is valid until
1990 the unit owner opts out of online voting according to the
1991 procedures established by the board of administration pursuant
1992 to subsection (4).
1993 (6) This section may apply to any matter that requires a
1994 vote of the unit owners who are not members of a timeshare
1995 condominium association.
1996 Section 15. Paragraph (p) of subsection (4) of section
1997 718.301, Florida Statutes, is amended to read:
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COMMITTEE/SUBCOMMITTEE AMENDMENT
Bill No. CS/CS/HB 1021 (2024)
Amendment No. 1
1998 718.301 Transfer of association control; claims of defect
1999 by association.—
2000 (4) At the time that unit owners other than the developer
2001 elect a majority of the members of the board of administration
2002 of an association, the developer shall relinquish control of the
2003 association, and the unit owners shall accept control .
2004 Simultaneously, or for the purposes of paragraph (c) not more
2005 than 90 days thereafter, the developer shall deliver to the
2006 association, at the developer's expense, all property of the
2007 unit owners and of the association which is held or controlled
2008 by the developer, including, but not limited to, the following
2009 items, if applicable, as to each condominium operated by the
2010 association:
2011 (p) Notwithstanding when the certificate of occupancy was
2012 issued or the height of the building, a turnover inspection
2013 report included in the official records, under seal of an
2014 architect or engineer authorized to practice in this state or a
2015 person certified as a reserve specialist or professional reserve
2016 analyst by the Community Associations Institute or the
2017 Association of Professional Reserve Analysts, and consisting of
2018 a structural integrity reserve study attesting to required
2019 maintenance, condition, useful life, and replacement costs of
2020 the following applicable condominium property:
2021 1. Roof.
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COMMITTEE/SUBCOMMITTEE AMENDMENT
Bill No. CS/CS/HB 1021 (2024)
Amendment No. 1
2022 2. Structure, including load-bearing walls and primary
2023 structural members and primary structural systems as those terms
2024 are defined in s. 627.706.
2025 3. Fireproofing and fire protection systems.
2026 4. Plumbing.
2027 5. Electrical systems.
2028 6. Waterproofing and exterior painting.
2029 7. Windows and exterior doors.
2030 Section 17. Effective October 1, 2024, subsections (1) and
2031 (3) of section 718.202, Florida Statutes, are amended to read:
2032 718.202 Sales or reservation deposits prior to closing. —
2033 (1) If a developer contracts to sell a condominium parcel
2034 and the construction, furnishing, and landscaping of the
2035 property submitted or proposed to be submitted to condominium
2036 ownership has not been substantially completed in accordance
2037 with the plans and specifications and representations made by
2038 the developer in the disclosures required by this chapter, the
2039 developer shall pay into an escrow account all payments up to 10
2040 percent of the sale price received by the developer from the
2041 buyer towards the sale price. The escrow agent shall give to the
2042 purchaser a receipt for the deposit, upon request. In lieu of
2043 the foregoing concerning residential condominiums, the division
2044 director has the discretion to accept other assurances,
2045 including, but not limited to, a surety bond or an irrevocable
2046 letter of credit in an amount equal to the escrow requirements
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Bill No. CS/CS/HB 1021 (2024)
Amendment No. 1
2047 of this section. With respect to nonresidential condominiums,
2048 the developer shall have the option of delivering to the escrow
2049 agent a surety bond or an irrevocable letter of credit in an
2050 amount equivalent to the aggregate of some or all of all
2051 payments up to 10 percent of the sale price received by the
2052 developer from all buyers towards the sale price, in all cases
2053 the aggregate of initial 10 percent deposits monies being
2054 released secured by a surety bond or irrevocable letter of
2055 credit in an equivalent amount. Default determinations and
2056 refund of deposits shall be governed by the escrow release
2057 provision of this subsection. Funds shall be released from
2058 escrow as follows:
2059 (a) If a buyer properly terminates the contract pursuant
2060 to its terms or pursuant to this chapter, the funds shall be
2061 paid to the buyer together with any interest earned.
2062 (b) If the buyer defaults in the performance of his or her
2063 obligations under the contract of purchase and sale, the funds
2064 shall be paid to the developer together with any interest
2065 earned.
2066 (c) If the contract does not provide for the payment of
2067 any interest earned on the escrowed funds, interest shall be
2068 paid to the developer at the closing of the transaction.
2069 (d) If the funds of a buyer have not been previously
2070 disbursed in accordance with the provisions of this subsection,
2071 they may be disbursed to the developer by the escrow agent at
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Bill No. CS/CS/HB 1021 (2024)
Amendment No. 1
2072 the closing of the transaction, unless prior to the disbursement
2073 the escrow agent receives from the buyer written notice of a
2074 dispute between the buyer and developer.
2075 (3) If the contract for sale of the condominium unit so
2076 provides, the developer may withdraw escrow funds in excess of
2077 10 percent of the purchase price from the special account
2078 required by subsection (2) when the construction of improvements
2079 has begun. He or she may use the funds for the actual costs
2080 incurred by the developer in the construction and development of
2081 the condominium property in which the unit to be sold is located
2082 or the easements and rights appurtenant thereto. For purposes of
2083 this subsection, the term "actual costs" includes, but is not
2084 limited to, expenditures for demolition, site clearing, permit
2085 fees, impact fees, and utility reservation fees, as well as
2086 architectural, engineering, and surveying fees that directly
2087 relate to construction and development of the condominium
2088 property or the easements and rights appurtenant thereto.
2089 However, no part of these funds may be used for salaries,
2090 commissions, or expenses of salespersons; for advertising,
2091 marketing, or promotional purposes; or for loan fees and costs,
2092 principal and interest on loans, attorney fees, accounting fees,
2093 or insurance costs. A contract that which permits use of the
2094 advance payments for these purposes must shall include the
2095 following legend conspicuously printed or stamped in boldfaced
2096 type on the first page of the contract and immediately above the
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Bill No. CS/CS/HB 1021 (2024)
Amendment No. 1
2097 place for the signature of the buyer: "ANY PAYMENT IN EXCESS OF
2098 10 PERCENT OF THE PURCHASE PRICE MADE TO DEVELOPER PRIOR TO
2099 CLOSING PURSUANT TO THIS CONTRACT MAY BE USED FOR CONSTRUCTION
2100 PURPOSES BY THE DEVELOPER."
2101 Section 16. Subsections (4) and (5) of section 718.3027,
2102 Florida Statutes, are amended to read:
2103 718.3027 Conflicts of interest.—
2104 (4) A director or an officer, or a relative of a director
2105 or an officer, who is a party to, or has an interest in, an
2106 activity that is a possible conflict of interest, as descr ibed
2107 in subsection (1), may attend the meeting at which the activity
2108 is considered by the board and is authorized to make a
2109 presentation to the board regarding the activity. After the
2110 presentation, the director or officer, and any or the relative
2111 of the director or officer, must leave the meeting during the
2112 discussion of, and the vote on, the activity. A director or an
2113 officer who is a party to, or has an interest in, the activity
2114 must recuse himself or herself from the vote. The attendance of
2115 a director or an officer with a possible conflict of interest at
2116 the meeting of the board is sufficient to constitute a quorum
2117 for the meeting and the vote in his or her absence on the
2118 proposed activity.
2119 (5) A contract entered into between a director or an
2120 officer, or a relative of a director or an officer, and the
2121 association, which is not a timeshare condominium association,
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Amendment No. 1
2122 that has not been properly disclosed as a conflict of interest
2123 or potential conflict of interest as required by this section or
2124 s. 617.0832 s. 718.111(12)(g) is voidable and terminates upon
2125 the filing of a written notice terminating the contract with the
2126 board of directors which contains the consent of at least 20
2127 percent of the voting interests of the association.
2128 Section 17. Subsection (5) of section 718.303, Florida
2129 Statutes, is amended to read:
2130 718.303 Obligations of owners and occupants; remedies. —
2131 (5) An association may suspend the voting rights of a unit
2132 owner or member due to nonpayment of any fee, fine, or other
2133 monetary obligation due to the association which is more than
2134 $1,000 and more than 90 days delinquent. Proof of such
2135 obligation must be provided to the unit owner or member 30 days
2136 before such suspension takes effect. At least 90 days before an
2137 election, an association must notify a unit owner or member that
2138 his or her voting rights may be suspended due to a nonpayment of
2139 a fee or other monetary obligation. A voting interest or consent
2140 right allocated to a unit owner or member which has been
2141 suspended by the association shall be subtracted from the total
2142 number of voting interests in the association, which shall be
2143 reduced by the number of suspended voting interests when
2144 calculating the total percentage or number of all voting
2145 interests available to take or approve any action, and the
2146 suspended voting interests shall not be considered for any
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Amendment No. 1
2147 purpose, including, but not limited to, the percentage or number
2148 of voting interests necessary to constitute a quorum, the
2149 percentage or number of voting interests required to conduct an
2150 election, or the percentage or number of voting interests
2151 required to approve an action under this chapter or pursuant to
2152 the declaration, articles of incorporation, or bylaws. The
2153 suspension ends upon full payment of all obligations currently
2154 due or overdue the association. The notice and hearing
2155 requirements under subsection (3) do not apply to a suspension
2156 imposed under this subsection.
2157 Section 20. Effective October 1, 2024, section 718.407,
2158 Florida Statutes, is created to read:
2159 718.407 Condominiums created within a portion of a
2160 building or within a multiple parcel building.—
2161 (1) Notwithstanding s. 718.103(12) or s. 718.108(1), a
2162 condominium may be created within a portion of a building or
2163 within a multiple parcel building, as defined in s. 193.0237( 1),
2164 as provided in this section.
2165 (2) Notwithstanding s. 718.103(12) or s. 718.108(1), the
2166 common elements of a condominium created within a portion of a
2167 building or a multiple parcel building are only those portions
2168 of the building submitted to the condominium form of ownership,
2169 excluding the units of such condominium.
2170 (3) The declaration of condominium that creates a
2171 condominium within a portion of a building or within a multiple
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Amendment No. 1
2172 parcel building, the recorded instrument that creates the
2173 multiple parcel building, or any other recorded instrument
2174 applicable under this section must specify all of the following:
2175 (a) The portions of the building which are included in the
2176 condominium and the portions of the building which are excluded.
2177 (b) The party responsible for maintaining and operating
2178 those portions of the building which are shared facilities, and
2179 which may include, among other things, the roof, the exterior of
2180 the building, windows, balconies, elevators, the building lobby,
2181 corridors, recreational amenities, and utilities.
2182 (c)1. The manner in which the expenses for the maintenance
2183 and operation of the shared facilities will be apportioned. An
2184 owner of a portion of a building which is not submitted to
2185 condominium form of ownership, or the condominium association,
2186 as applicable to the portion of the building submitted to
2187 condominium form of ownership, must approve any increase in the
2188 apportionment of expenses to such portion of the building. The
2189 apportionment of the expenses for the maintenance and op eration
2190 of the shared facilities may be based on any of the following
2191 criteria or any combination thereof:
2192 a. The area or volume of each portion of the building in
2193 relation to the total area or volume of the entire building,
2194 exclusive of the shared facilities.
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Amendment No. 1
2195 b. The initial estimated market value of each portion of
2196 the building in comparison to the total initial estimated market
2197 value of the entire building.
2198 c. The extent to which the owners are permitted to use
2199 various shared facilities.
2200 2. This paragraph does not preclude an alternative
2201 apportionment of expenses provided that the apportionment is
2202 stated in the declaration of condominium that creates a
2203 condominium within a portion of a building or within a multiple
2204 parcel building, the recorded instrument that creates the
2205 multiple parcel building, or any other recorded instrument
2206 applicable under this section.
2207 (d) The party responsible for collecting the shared
2208 expenses.
2209 (e) The rights and remedies that are available to enforce
2210 payment of the shared expenses.
2211 (4) The association of a condominium subject to this
2212 section has the right to inspect and copy the books and records
2213 upon which the costs for maintaining and operating the shared
2214 facilities are based and to receive an annual budget with
2215 respect to such costs.
2216 (5) Each contract for the sale of a unit in a condominium
2217 subject to this section must contain in conspicuous type a
2218 clause that substantially states:
2219 DISCLOSURE SUMMARY
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2220 THE CONDOMINIUM IN WHICH YOUR UNIT IS LOCATED IS CREATED WITH IN
2221 A PORTION OF A BUILDING OR WITHIN A MULTIPLE PARCEL BUILDING.
2222 THE COMMON ELEMENTS OF THE CONDOMINIUM CONSIST ONLY OF THE
2223 PORTIONS OF THE BUILDING SUBMITTED TO THE CONDOMINIUM.
2224
2225 BUYER ACKNOWLEDGES:
2226
2227 1) THE CONDOMINIUM MAY HAVE MINIMAL COMMON ELEMENTS.
2228 2) PORTIONS OF THE BUILDING THAT ARE NOT INCLUDED IN THE
2229 CONDOMINIUM ARE (OR WILL BE) GOVERNED BY A SEPARATE RECORDED
2230 INSTRUMENT. SUCH INSTRUMENT CONTAINS IMPORTANT PROVISIONS AND
2231 RIGHTS AND IS (OR WILL BE) AVAILABLE IN PUBLIC RECORDS.
2232 3) THE PARTY THAT CONTROLS THE MAINTENANCE AND OPERATION OF THE
2233 PORTIONS OF THE BUILDING THAT ARE NOT INCLUDED IN THE
2234 CONDOMINIUM DETERMINES THE BUDGET FOR THE OPERATION AND
2235 MAINTENANCE OF SUCH PORTIONS; HOWEVER, THE ASSOCIATION AND UNIT
2236 OWNERS ARE STILL RESPONSIBLE FOR THEIR SHARE OF SUCH EXPENSES.
2237 4) THE ALLOCATION BETWEEN THE UNIT OWNERS AND THE OWNERS OF THE
2238 PORTIONS OF THE BUILDING THAT ARE NOT INCLUDED IN THE
2239 CONDOMINIUM OF THE COSTS TO MAINTAIN AND OPERATE THE BUILDING
2240 CAN BE FOUND IN THE DECLARATION OF CONDOMINIUM OR O THER RECORDED
2241 INSTRUMENT.
2242 (6) The creation of a multiple parcel building is not a
2243 subdivision of the land upon which such building is situated
2244 provided the land itself is not subdivided.
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2245 Section 21. Subsections (1) and (2) of section 718.501,
2246 Florida Statutes, are amended to read:
2247 718.501 Authority, responsibility, and duties of Division
2248 of Florida Condominiums, Timeshares, and Mobile Homes.—
2249 (1) The division may enforce and ensure compliance with
2250 this chapter and rules relating to the development,
2251 construction, sale, lease, ownership, operation, and management
2252 of residential condominium units and complaints related to the
2253 procedural completion of milestone inspections under s. 553.899.
2254 In performing its duties, the division has complete jurisdiction
2255 to investigate complaints and enforce compliance with respect to
2256 associations that are still under developer control or the
2257 control of a bulk assignee or bulk buyer pursuant to part VII of
2258 this chapter and complaints against developers, bulk assignees,
2259 or bulk buyers involving improper turnover or failure to
2260 turnover, pursuant to s. 718.301. However, after turnover has
2261 occurred, the division has jurisdiction to investigate
2262 complaints related only to:
2263 (a)1. Procedural aspects and records related to financial
2264 issues, including annual financial reporting under s.
2265 718.111(13), assessments for common expenses, fines, and
2266 commingling of reserve and operating funds under in s.
2267 718.111(14), use of debit cards for other than intended purposes
2268 under s. 718.111(15), the annual operating budget and the
2269 allocation of reserve funds under s. 718.112(2)(f), and
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Amendment No. 1
2270 financial records under s. 718.111(12)(a)11, and any other
2271 record necessary to determine the revenues and expenses of the
2272 association;,
2273 2. Elections, including election and voting requirements
2274 under s. 718.112(2)(b) and (d), recall of board members under
2275 718.112(2)(l), electronic voting under s. 718.128, and elections
2276 that occur during an emergency under s. 718.1265(1)(a); , and
2277 3. The maintenance of and unit owner access to association
2278 records under s. 718.111(12),;
2279 4. The procedural aspects of meetings, such as, unit owner
2280 meetings, quorums, voting requirements, proxies, board of
2281 administration meetings, and budget meetings under s.
2282 718.112(2);
2283 5. Disclosure of conflicts of interest under ss.
2284 718.111(1)(a) and s. 718.3027, including limitations contained
2285 in s. 718.111(3)(f);
2286 6. Removal of a board director or officer under ss.
2287 718.111(1)(a) and (15), and 718.112(2)(p) and (q)and;
2288 7. The procedural completion of structural integrity
2289 reserve studies under s. 718.112(2)(g); and
2290 8. Any written inquiries by unit owners to the association
2291 relating to such matters, including written inquiries under s.
2292 718.112(2)(a)2.
2293 (ab)1. The division may make necessary public or private
2294 investigations within or outside this state to determine whether
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Amendment No. 1
2295 any person has violated this chapter or any rule or order
2296 hereunder, to aid in the enforcement of this chapter, or to aid
2297 in the adoption of rules or forms.
2298 2. The division may submit any official written report,
2299 worksheet, or other related paper, or a duly certified copy
2300 thereof, compiled, prepared, drafted, or otherwise made by and
2301 duly authenticated by a financial examiner or analyst to be
2302 admitted as competent evidence in any hearing in which the
2303 financial examiner or analyst is available for cross-examination
2304 and attests under oath that such documents were prepared as a
2305 result of an examination or inspection conducted pursuant to
2306 this chapter.
2307 (bc) The division may require or permit any person to file
2308 a statement in writing, under oath or otherwise, as the division
2309 determines, as to the facts and circumstances concerning a
2310 matter to be investigated.
2311 (cd) For the purpose of any investigation under this
2312 chapter, the division director or any officer or employee
2313 designated by the division director may administer oaths or
2314 affirmations, subpoena witnesses and compel their attendance,
2315 take evidence, and require the production of any matter which is
2316 relevant to the investigation, including the existence,
2317 description, nature, custody, condition, and location of any
2318 books, documents, or other tangible things and the identity and
2319 location of persons having knowledge of relevant facts or any
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Amendment No. 1
2320 other matter reasonably calculated to lead to the discovery of
2321 material evidence. Upon the failure by a person to obey a
2322 subpoena or to answer questions propounded by the investigating
2323 officer and upon reasonable notice to all affected persons, the
2324 division may apply to the circuit court for an order compelling
2325 compliance.
2326 (de) Notwithstanding any remedies available to unit owners
2327 and associations, if the division has reasonable cause to
2328 believe that a violation of any provision of this chapter or
2329 related rule has occurred, the division may institute
2330 enforcement proceedings in its own name against any developer,
2331 bulk assignee, bulk buyer, association, officer, or member of
2332 the board of administration, or its assignees or agents, as
2333 follows:
2334 1. The division may permit a person whose conduct or
2335 actions may be under investigation to waive formal proceedings
2336 and enter into a consent proceeding whereby orders, rules, or
2337 letters of censure or warning, whether formal or informal, may
2338 be entered against the person.
2339 2. The division may issue an order requiring the
2340 developer, bulk assignee, bulk buyer, association, developer -
2341 designated officer, or developer-designated member of the board
2342 of administration, developer-designated assignees or agents,
2343 bulk assignee-designated assignees or agents, bulk buyer-
2344 designated assignees or agents, community association manager,
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Amendment No. 1
2345 or community association management firm to cease and desist
2346 from the unlawful practice and take such affirmative action as
2347 in the judgment of the division carry out the purposes of this
2348 chapter. If the division finds that a developer, bulk assignee,
2349 bulk buyer, association, officer, or member of the board of
2350 administration, or its assignees or agents, is violating or is
2351 about to violate any provision of this chapter, any rule adopted
2352 or order issued by the division, or any written agreement
2353 entered into with the division, and presents an immediate danger
2354 to the public requiring an immediate final order, it may issue
2355 an emergency cease and desist order reciting with particularity
2356 the facts underlying such findings. The emergency cease and
2357 desist order is effective for 90 days. If the division begins
2358 nonemergency cease and desist proceedings, the emergency cease
2359 and desist order remains effective until the conclusion of the
2360 proceedings under ss. 120.569 and 120.57.
2361 3. If a developer, bulk assignee, or bulk buyer fails to
2362 pay any restitution determined by the division to be owed, plus
2363 any accrued interest at the highest rate permitted by law,
2364 within 30 days after expiration of any appellate time period of
2365 a final order requiring payment of restitution or the conclusion
2366 of any appeal thereof, whichever is later, the division must
2367 bring an action in circuit or county court on behalf of any
2368 association, class of unit owners, lessees, or purchasers for
2369 restitution, declaratory relief, injunctive relief, or any other
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Amendment No. 1
2370 available remedy. The division may also temporarily revoke its
2371 acceptance of the filing for the developer to which the
2372 restitution relates until payment of restitution is made.
2373 4. The division may petition the court for appointment of
2374 a receiver or conservator. If appointed, the receiver or
2375 conservator may take action to implement the court order to
2376 ensure the performance of the order and to remedy any breach
2377 thereof. In addition to all other means provided by law for the
2378 enforcement of an injunction or temporary restraining order, the
2379 circuit court may impound or sequester the property of a party
2380 defendant, including books, papers, documents, and related
2381 records, and allow the examination and use of the property by
2382 the division and a court-appointed receiver or conservator.
2383 5. The division may apply to the circuit court for an
2384 order of restitution whereby the defendant in an action brought
2385 under subparagraph 4. is ordered to make restitution of those
2386 sums shown by the division to have been obtained by the
2387 defendant in violation of this chapter. At the option of the
2388 court, such restitution is payable to the conservator or
2389 receiver appointed under subparagraph 4. or directly to the
2390 persons whose funds or assets were obtained in violation of this
2391 chapter.
2392 6. The division may impose a civil penalty against a
2393 developer, bulk assignee, or bulk buyer, or association, or its
2394 assignee or agent, for any violation of this chapter or related
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Amendment No. 1
2395 rule. The division may impose a civil penalty individually
2396 against an officer or board member who willfully and knowingly
2397 violates this chapter, an adopted rule, or a final order of the
2398 division; may order the removal of such individual as an officer
2399 or from the board of administration or as an officer of the
2400 association; and may prohibit such individual from serving as an
2401 officer or on the board of a community association for a period
2402 of time. The term "willfully and knowingly" means that the
2403 division informed the officer or board member that his or her
2404 action or intended action violates this chapter, a rule adopted
2405 under this chapter, or a final order of the division and that
2406 the officer or board member refused to comply with the
2407 requirements of this chapter, a rule adopted under this chapter,
2408 or a final order of the division. The division, before
2409 initiating formal agency action under chapter 120, must afford
2410 the officer or board member an opportunity to voluntarily
2411 comply, and an officer or board member who complies within 10
2412 days is not subject to a civil penalty. A penalty may be imposed
2413 on the basis of each day of continuing violation, but the
2414 penalty for any offense may not exceed $5,000. The division
2415 shall adopt, by rule, penalty guidelines applicable to pos sible
2416 violations or to categories of violations of this chapter or
2417 rules adopted by the division. The guidelines must specify a
2418 meaningful range of civil penalties for each such violation of
2419 the statute and rules and must be based upon the harm caused by
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Amendment No. 1
2420 the violation, upon the repetition of the violation, and upon
2421 such other factors deemed relevant by the division. For example,
2422 the division may consider whether the violations were committed
2423 by a developer, bulk assignee, or bulk buyer, or owner-
2424 controlled association, the size of the association, and other
2425 factors. The guidelines must designate the possible mitigating
2426 or aggravating circumstances that justify a departure from the
2427 range of penalties provided by the rules. It is the legislative
2428 intent that minor violations be distinguished from those which
2429 endanger the health, safety, or welfare of the condominium
2430 residents or other persons and that such guidelines provide
2431 reasonable and meaningful notice to the public of likely
2432 penalties that may be imposed for proscribed conduct. This
2433 subsection does not limit the ability of the division to
2434 informally dispose of administrative actions or complaints by
2435 stipulation, agreed settlement, or consent order. All amounts
2436 collected shall be deposited with the Chief Financial Officer to
2437 the credit of the Division of Florida Condominiums, Timeshares,
2438 and Mobile Homes Trust Fund. If a developer, bulk assignee, or
2439 bulk buyer fails to pay the civil penalty and the amount deemed
2440 to be owed to the association, the division shall issue an order
2441 directing that such developer, bulk assignee, or bulk buyer
2442 cease and desist from further operation until such time as the
2443 civil penalty is paid or may pursue enforcement of the penalty
2444 in a court of competent jurisdiction. If an association fails to
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Amendment No. 1
2445 pay the civil penalty, the division shall pursue enforcement in
2446 a court of competent jurisdiction, and the order imposing the
2447 civil penalty or the cease and desist order is not effective
2448 until 20 days after the date of such order. Any action c ommenced
2449 by the division shall be brought in the county in which the
2450 division has its executive offices or in the county in which
2451 where the violation occurred.
2452 7. If a unit owner presents the division with proof that
2453 the unit owner has requested access to official records in
2454 writing by certified mail, and that after 10 days the unit owner
2455 again made the same request for access to official records in
2456 writing by certified mail, and that more than 10 days has
2457 elapsed since the second request and the association has still
2458 failed or refused to provide access to official records as
2459 required by this chapter, the division shall issue a subpoena
2460 requiring production of the requested records at the location in
2461 which where the records are kept pursuant to s. 718.112. Upon
2462 receipt of the records, the division must provide to the unit
2463 owner who was denied access to such records the produced
2464 official records without charge.
2465 8. In addition to subparagraph 6., the division may seek
2466 the imposition of a civil penalty through the circuit court for
2467 any violation for which the division may issue a notice to show
2468 cause under paragraph (r). The civil penalty shall be at least
2469 $500 but no more than $5,000 for each violation. The court may
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2470 also award to the prevailing party court costs and reasonable
2471 attorney fees and, if the division prevails, may also award
2472 reasonable costs of investigation.
2473 9. The division may issue citations and promulgate rules to
2474 provide for citation bases and citation procedures in accordance
2475 with this section.
2476 (ef) The division may prepare and disseminate a prospectus
2477 and other information to assist prospective owners, purchasers,
2478 lessees, and developers of residential condominiums in assessing
2479 the rights, privileges, and duties pertaining thereto.
2480 (fg) The division may adopt rules to administer and
2481 enforce this chapter.
2482 (gh) The division shall establish procedures for providing
2483 notice to an association and the developer, bulk assignee, or
2484 bulk buyer during the period in which the developer, bulk
2485 assignee, or bulk buyer controls the association if the division
2486 is considering the issuance of a declaratory statement with
2487 respect to the declaration of condominium or any related
2488 document governing such condominium community.
2489 (hi) The division shall furnish each association that pays
2490 the fees required by paragraph (2)(a) a copy of this chapter, as
2491 amended, and the rules adopted thereto on an annual basis.
2492 (ij) The division shall annually provide each association
2493 with a summary of declaratory statements and formal legal
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Amendment No. 1
2494 opinions relating to the operations of condominiums which were
2495 rendered by the division during the previous year.
2496 (jk) The division shall provide training and educational
2497 programs for condominium association board members and unit
2498 owners. The training may, in the division's discretion, include
2499 web-based electronic media and live training and seminars in
2500 various locations throughout the state. The division may review
2501 and approve education and training programs for board members
2502 and unit owners offered by providers and shall maintain a
2503 current list of approved programs and providers and make such
2504 list available to board members and unit owners in a reasonable
2505 and cost-effective manner. The division shall provide the
2506 division-approved provider with the template certificate for
2507 issuance directly to the association board of directors who have
2508 satisfactorily completed the requirements under s.
2509 718.112(2)(d). The division shall have rulemaking authority to
2510 implement this section.
2511 (kl) The division shall maintain a toll-free telephone
2512 number accessible to condominium unit owners.
2513 (lm) The division shall develop a program to certify both
2514 volunteer and paid mediators to provide mediation of condominium
2515 disputes. The division shall provide, upon request, a list of
2516 such mediators to any association, unit owner, or other
2517 participant in alternative dispute resolution proceedings under
2518 s. 718.1255 requesting a copy of the list. The division shall
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2519 include on the list of volunteer mediators only the names of
2520 persons who have received at least 20 hours of training in
2521 mediation techniques or who have mediated at least 20 disputes.
2522 In order to become initially certified by the division, paid
2523 mediators must be certified by the Supreme Court to mediate
2524 court cases in county or circuit courts. However, the division
2525 may adopt, by rule, additional factors for the certification of
2526 paid mediators, which must be related to experience, education,
2527 or background. Any person initially certified as a paid mediator
2528 by the division must, in order to continue to be certified,
2529 comply with the factors or requirements adopted by rule.
2530 (mn) If a complaint is made, the division must conduct its
2531 inquiry with due regard for the interests of the affected
2532 parties. Within 30 days after receipt of a complaint, the
2533 division shall acknowledge the complaint in writing and notify
2534 the complainant whether the complaint is within the jurisdiction
2535 of the division and whether additional information is needed by
2536 the division from the complainant. The division shall conduct
2537 its investigation and, within 90 days after receipt of the
2538 original complaint or of timely requested additional
2539 information, take action upon the complaint. However, the
2540 failure to complete the investigation within 90 days does no t
2541 prevent the division from continuing the investigation,
2542 accepting or considering evidence obtained or received after 90
2543 days, or taking administrative action if reasonable cause exists
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Amendment No. 1
2544 to believe that a violation of this chapter or a rule has
2545 occurred. If an investigation is not completed within the time
2546 limits established in this paragraph, the division shall, on a
2547 monthly basis, notify the complainant in writing of the status
2548 of the investigation. When reporting its action to the
2549 complainant, the division shall inform the complainant of any
2550 right to a hearing under ss. 120.569 and 120.57. The division
2551 may adopt rules regarding the submission of a complaint against
2552 an association.
2553 (o)(n) Condominium association directors, officers, and
2554 employees; condominium developers; bulk assignees, bulk buyers,
2555 and community association managers; and community association
2556 management firms have an ongoing duty to reasonably cooperate
2557 with the division in any investigation under this section. The
2558 division shall refer to local law enforcement authorities any
2559 person whom the division believes has altered, destroyed,
2560 concealed, or removed any record, document, or thing required to
2561 be kept or maintained by this chapter with the purpose to impair
2562 its verity or availability in the department's investigation.
2563 The division shall refer to local law enforcement authorities
2564 any person whom the division believes has engaged in fraud,
2565 theft, embezzlement, or other criminal activity or when the
2566 division has cause to believe that fraud, theft, embezzlement,
2567 or other criminal activity has occurred.
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Amendment No. 1
2568 (p) The division director or any officer or employee of
2569 the division and the condominium ombudsman or any employee of
2570 the Office of the Condominium Ombudsman may attend and observe
2571 any meeting of the board of administration or any unit owner
2572 meeting, including any meeting of a subcommittee or special
2573 committee, which is open to members of the association, for the
2574 purpose of performing the duties of the division or the Office
2575 of the Condominium Ombudsman under this chapter.
2576 (q)(o) The division may:
2577 1. Contract with agencies in this state or other
2578 jurisdictions to perform investigative functions; or
2579 2. Accept grants-in-aid from any source.
2580 (r)(p) The division shall cooperate with similar agencies
2581 in other jurisdictions to establish uniform filing procedures
2582 and forms, public offering statements, advertising standards,
2583 and rules and common administrative practices.
2584 (s)(q) The division shall consider notice to a developer,
2585 bulk assignee, or bulk buyer to be complete when it is delivered
2586 to the address of the developer, bulk assignee, or bulk buyer
2587 currently on file with the division.
2588 (t)(r) In addition to its enforcement authority, the
2589 division may issue a notice to show cause, which must provide
2590 for a hearing, upon written request, in accordance with chapter
2591 120.
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Amendment No. 1
2592 (u) If the division receives a complaint regarding access
2593 to official records on the association website under s.
2594 718.111(12)(g), the division may request access to the
2595 association website and investigate. The division may implement
2596 rules to carry out this provision.
2597 (v)(s) The division shall submit to the Governor, the
2598 President of the Senate, the Speaker of the House of
2599 Representatives, and the chairs of the legislative
2600 appropriations committees an annual report that includes, but
2601 need not be limited to, the number of training programs provided
2602 for condominium association board members and unit owners, the
2603 number of complaints received by type, the number and percent of
2604 complaints acknowledged in writing within 30 days and the number
2605 and percent of investigations acted upon within 90 days in
2606 accordance with paragraph (n)(m), and the number of
2607 investigations exceeding the 90-day requirement. The annual
2608 report must also include an evaluation of the division's core
2609 business processes and make recommendations for improvements,
2610 including statutory changes. After December 31, 2024, the
2611 division must include a list of the associations who have
2612 completed their structural reserve study under section
2613 718.112(2)(g). The report shall be submitted by September 30
2614 following the end of the fiscal year.
2615 (2)(a) Each condominium association that which operates
2616 more than two units shall pay to the division an annual fee in
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Amendment No. 1
2617 the amount of $4 for each residential unit in condominiums
2618 operated by the association. If the fee is not paid by March 1,
2619 the association shall be assessed a penalty of 10 percent of the
2620 amount due, and the association will not have standing to
2621 maintain or defend any action in the courts of this state until
2622 the amount due, plus any penalty, is paid.
2623 (b) All fees shall be deposited in the Division of Florida
2624 Condominiums, Timeshares, and Mobile Homes Trust Fund as
2625 provided by law.
2626 (c) On the certification form provided by the division,
2627 the directors of the association shall certify that each
2628 director of the association has completed the written
2629 certification and educational certificate requirements in s.
2630 718.112(2)(d)4.b. This certification requirement does not apply
2631 to the directors of an association governing a timeshare
2632 condominium.
2633 Section 22. Effective October 1, 2024, paragraph (a) of
2634 subsection (2) and subsection (3) of section 718.503, Florida
2635 Statutes, are amended to read:
2636 718.503 Developer disclosure prior to sale; nondeveloper
2637 unit owner disclosure prior to sale; voidability.—
2638 (2) NONDEVELOPER DISCLOSURE.—
2639 (a) Each unit owner who is not a developer as defined by
2640 this chapter must comply with this subsection before the sale of
2641 his or her unit. Each prospective purchaser who has entered into
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Amendment No. 1
2642 a contract for the purchase of a condominium unit is entitled,
2643 at the seller's expense, to a current copy of all of the
2644 following:
2645 1. The declaration of condominium.
2646 2. Articles of incorporation of the association.
2647 3. Bylaws and rules of the association.
2648 4. An annual financial statement and an annual budget of
2649 the condominium association Financial information required by s.
2650 718.111.
2651 5. A copy of the inspector-prepared summary of the
2652 milestone inspection report as described in s. 553.899, if
2653 applicable.
2654 6. The association's most recent structural integrity
2655 reserve study or a statement that the association has not
2656 completed a structural integrity reserve study.
2657 7. A copy of the inspection report described in s.
2658 718.301(4)(p) and (q) for a turnover inspection performed on or
2659 after July 1, 2023.
2660 8. The document entitled "Frequently Asked Questions and
2661 Answers" required by s. 718.504.
2662 (3) OTHER DISCLOSURES DISCLOSURE.—
2663 (a) If residential condominium parcels are offered for
2664 sale or lease prior to completion of construction of the units
2665 and of improvements to the common elements, or prior to
2666 completion of remodeling of previously occupied buildings, the
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Amendment No. 1
2667 developer must shall make available to each prospective
2668 purchaser or lessee, for his or her inspection at a place
2669 convenient to the site, a copy of the complete plans and
2670 specifications for the construction or remodeling of the unit
2671 offered to him or her and of the improvements to the common
2672 elements appurtenant to the unit.
2673 (b) Sales brochures, if any, must shall be provided to
2674 each purchaser, and the following caveat in conspicuous type
2675 must shall be placed on the inside front cover or on the first
2676 page containing text material of the sales brochure, or
2677 otherwise conspicuously displayed: "ORAL REPRESENTATIONS CANNOT
2678 BE RELIED UPON AS CORRECTLY STATING REPRESENTATIONS OF THE
2679 DEVELOPER. FOR CORRECT REPRESENTATIONS, MAKE REFERENCE TO THIS
2680 BROCHURE AND TO THE DOCUMENTS REQUIRED BY SECTION 718.503,
2681 FLORIDA STATUTES, TO BE FURNISHED BY A DEVELOPER TO A BUYER OR
2682 LESSEE." If timeshare estates have been or may be created with
2683 respect to any unit in the condominium, the sales brochure must
2684 shall contain the following statement in conspicuous type:
2685 "UNITS IN THIS CONDOMINIUM ARE SUBJECT TO TIMESHARE ESTATES. "
2686 (c) If a unit is located within a condominium that is
2687 created within a portion of a building or within a multiple
2688 parcel building, the developer or nondeveloper unit owner must
2689 provide the disclosures required by s. 718.407(5).
2690 Section 22. Effective October 1, 2024,section 718.504,
2691 Florida Statutes, is amended to read:
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Amendment No. 1
2692 718.504 Prospectus or offering circular.—Every developer
2693 of a residential condominium which contains more than 20
2694 residential units, or which is part of a group of residential
2695 condominiums which will be served by property to be used in
2696 common by unit owners of more than 20 residential units, shall
2697 prepare a prospectus or offering circular and file it with the
2698 Division of Florida Condominiums, Timeshares, and Mobile Homes
2699 prior to entering into an enforceable contract of purchase and
2700 sale of any unit or lease of a unit for more than 5 years and
2701 shall furnish a copy of the prospectus or offering circular to
2702 each buyer. In addition to the prospectus or offering circular,
2703 each buyer shall be furnished a separate page entitled
2704 "Frequently Asked Questions and Answers," which shall be in
2705 accordance with a format approved by the division and a copy of
2706 the financial information required by s. 718.111. This page
2707 shall, in readable language, inform prospective purchasers
2708 regarding their voting rights and unit use restrictions,
2709 including restrictions on the leasing of a unit; sh all indicate
2710 whether and in what amount the unit owners or the association is
2711 obligated to pay rent or land use fees for recreational or other
2712 commonly used facilities; shall contain a statement identifying
2713 that amount of assessment which, pursuant to the budget, would
2714 be levied upon each unit type, exclusive of any special
2715 assessments, and which shall further identify the basis upon
2716 which assessments are levied, whether monthly, quarterly, or
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Amendment No. 1
2717 otherwise; shall state and identify any court cases in which the
2718 association is currently a party of record in which the
2719 association may face liability in excess of $100,000; shall
2720 state whether the condominium is created within a portion of a
2721 building or a multiple parcel building; and which shall further
2722 state whether membership in a recreational facilities
2723 association is mandatory, and if so, shall identify the fees
2724 currently charged per unit type. The division shall by rule
2725 require such other disclosure as in its judgment will assist
2726 prospective purchasers. The prospectus or offering circular may
2727 include more than one condominium, although not all such units
2728 are being offered for sale as of the date of the prospectus or
2729 offering circular. The prospectus or offering circular must
2730 contain the following information:
2731 (1) The front cover or the first page must contain only:
2732 (a) The name of the condominium.
2733 (b) The following statements in conspicuous type:
2734
2735 1. THIS PROSPECTUS (OFFERING CIRCULAR) CONTAINS
2736 IMPORTANT MATTERS TO BE CONSIDERED IN ACQUIRING A
2737 CONDOMINIUM UNIT.
2738 2. THE STATEMENTS CONTAINED HEREIN ARE ONLY SUMMARY
2739 IN NATURE. A PROSPECTIVE PURCHASER SHOULD REFER TO ALL
2740 REFERENCES, ALL EXHIBITS HERETO, THE CONTRACT
2741 DOCUMENTS, AND SALES MATERIALS.
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Amendment No. 1
2742 3. ORAL REPRESENTATIONS CANNOT BE RELIED UPON AS
2743 CORRECTLY STATING THE REPRESENTATIONS OF THE
2744 DEVELOPER. REFER TO THIS PROSPECTUS (OFFERING
2745 CIRCULAR) AND ITS EXHIBITS FOR CORRECT
2746 REPRESENTATIONS.
2747 (2) Summary: The next page must contain all statements
2748 required to be in conspicuous type in the prospectus or offering
2749 circular.
2750 (3) A separate index of the contents and exhibits of the
2751 prospectus.
2752 (4) Beginning on the first page of the text (not including
2753 the summary and index), a description of the condominium,
2754 including, but not limited to, the following informat ion:
2755 (a) Its name and location.
2756 (b) A description of the condominium property, including,
2757 without limitation:
2758 1. The number of buildings, the number of units in each
2759 building, the number of bathrooms and bedrooms in each unit, and
2760 the total number of units, if the condominium is not a phase
2761 condominium, or the maximum number of buildings that may be
2762 contained within the condominium, the minimum and maximum
2763 numbers of units in each building, the minimum and maximum
2764 numbers of bathrooms and bedrooms that may be contained in each
2765 unit, and the maximum number of units that may be contained
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Bill No. CS/CS/HB 1021 (2024)
Amendment No. 1
2766 within the condominium, if the condominium is a phase
2767 condominium.
2768 2. The page in the condominium documents where a copy of
2769 the plot plan and survey of the condominium is located.
2770 3. The estimated latest date of completion of
2771 constructing, finishing, and equipping. In lieu of a date, the
2772 description shall include a statement that the estimated date of
2773 completion of the condominium is in the purchase agreement and a
2774 reference to the article or paragraph containing that
2775 information.
2776 (c) The maximum number of units that will use facilities
2777 in common with the condominium. If the maximum number of units
2778 will vary, a description of the basis for variation and the
2779 minimum amount of dollars per unit to be spent for additional
2780 recreational facilities or enlargement of such facilities. If
2781 the addition or enlargement of facilities will result in a
2782 material increase of a unit owner's maintenance expense or
2783 rental expense, if any, the maximum increase and limitations
2784 thereon shall be stated.
2785 (5)(a) A statement in conspicuous type describing whether
2786 the condominium is created and being sold as fee simple
2787 interests or as leasehold interests. If the condominium is
2788 created or being sold on a leasehold, the location of the lease
2789 in the disclosure materials shall be stated.
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Amendment No. 1
2790 (b) If timeshare estates are or may be created with
2791 respect to any unit in the condominium, a statement in
2792 conspicuous type stating that timeshare estates are crea ted and
2793 being sold in units in the condominium.
2794 (6) A description of the recreational and other commonly
2795 used facilities that will be used only by unit owners of the
2796 condominium, including, but not limited to, the following:
2797 (a) Each room and its intended purposes, location,
2798 approximate floor area, and capacity in numbers of people.
2799 (b) Each swimming pool, as to its general location,
2800 approximate size and depths, approximate deck size and capacity,
2801 and whether heated.
2802 (c) Additional facilities, as to the number of each
2803 facility, its approximate location, approximate size, and
2804 approximate capacity.
2805 (d) A general description of the items of personal
2806 property and the approximate number of each item of personal
2807 property that the developer is committing to furnish for each
2808 room or other facility or, in the alternative, a representation
2809 as to the minimum amount of expenditure that will be made to
2810 purchase the personal property for the facility.
2811 (e) The estimated date when each room or other facility
2812 will be available for use by the unit owners.
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Bill No. CS/CS/HB 1021 (2024)
Amendment No. 1
2813 (f)1. An identification of each room or other facility to
2814 be used by unit owners that will not be owned by the unit owners
2815 or the association;
2816 2. A reference to the location in the disclosure materials
2817 of the lease or other agreements providing for the use of those
2818 facilities; and
2819 3. A description of the terms of the lease or other
2820 agreements, including the length of the term; the rent payable,
2821 directly or indirectly, by each unit owner, and the total rent
2822 payable to the lessor, stated in monthly and annual amounts for
2823 the entire term of the lease; and a description of any option to
2824 purchase the property leased under any such lease, including the
2825 time the option may be exercised, the purchase price or how it
2826 is to be determined, the manner of payment, and whether the
2827 option may be exercised for a unit owner's share or only as to
2828 the entire leased property.
2829 (g) A statement as to whether the developer may provide
2830 additional facilities not described above; their general
2831 locations and types; improvements or changes that may be made;
2832 the approximate dollar amount to be expended; and the maximum
2833 additional common expense or cost to the individual unit owners
2834 that may be charged during the first annual period of operation
2835 of the modified or added facilities.
2836
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Amendment No. 1
2837 Descriptions as to locations, areas, capacities, numbers,
2838 volumes, or sizes may be stated as approximations or minimums.
2839 (7) A description of the recreational and other facilities
2840 that will be used in common with other condominiums, community
2841 associations, or planned developments which require the payment
2842 of the maintenance and expenses of such facilities, directly or
2843 indirectly, by the unit owners. The description shall include,
2844 but not be limited to, the following:
2845 (a) Each building and facility committed to be built and a
2846 summary description of the structural integrity of each building
2847 for which reserves are required pursuant to s. 718.112(2)(g).
2848 (b) Facilities not committed to be built except under
2849 certain conditions, and a statement of those conditions or
2850 contingencies.
2851 (c) As to each facility committed to be built, or which
2852 will be committed to be built upon the happening of one of the
2853 conditions in paragraph (b), a statement of whether it will be
2854 owned by the unit owners having the use thereof or by an
2855 association or other entity which will be controlled by them, or
2856 others, and the location in the exhibits of the lease or other
2857 document providing for use of those facilities.
2858 (d) The year in which each facility will be available for
2859 use by the unit owners or, in the alternative, the maximum
2860 number of unit owners in the project at the time each of all of
2861 the facilities is committed to be completed.
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Amendment No. 1
2862 (e) A general description of the items of personal
2863 property, and the approximate number of each item of personal
2864 property, that the developer is committing to furnish for each
2865 room or other facility or, in the alternative, a representation
2866 as to the minimum amount of expenditure that will be made to
2867 purchase the personal property for the facility.
2868 (f) If there are leases, a description thereof, including
2869 the length of the term, the rent payable, and a description of
2870 any option to purchase.
2871
2872 Descriptions shall include location, areas, capacities, numbers,
2873 volumes, or sizes and may be stated as approximations or
2874 minimums.
2875 (8) Recreation lease or associated club membership:
2876 (a) If any recreational facilities or other facilities
2877 offered by the developer and available to, or to be used by,
2878 unit owners are to be leased or have club membership associated,
2879 the following statement in conspicuous type shall be included:
2880 "THERE IS A RECREATIONAL FACILITIES LEASE ASSOCIATED WITH THIS
2881 CONDOMINIUM; or, THERE IS A CLUB MEMBERSHIP ASSOCIATED WITH THIS
2882 CONDOMINIUM." There shall be a reference to the location in the
2883 disclosure materials where the recreation lease or club
2884 membership is described in detail.
2885 (b) If it is mandatory that unit owners pay a fee, rent,
2886 dues, or other charges under a recreational facilities lease or
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Bill No. CS/CS/HB 1021 (2024)
Amendment No. 1
2887 club membership for the use of facilities, there shall be in
2888 conspicuous type the applicable statement:
2889 1. MEMBERSHIP IN THE RECREATIONAL FACILITIES CLUB IS
2890 MANDATORY FOR UNIT OWNERS; or
2891 2. UNIT OWNERS ARE REQUIRED, AS A CONDITION OF OWNERSHIP,
2892 TO BE LESSEES UNDER THE RECREATIONAL FACILITIES LEASE; or
2893 3. UNIT OWNERS ARE REQUIRED TO PAY THEIR SHARE OF THE
2894 COSTS AND EXPENSES OF MAINTENANCE, MANAGEMENT, UPKEEP,
2895 REPLACEMENT, RENT, AND FEES UNDER THE RECREATIONAL FACILITIES
2896 LEASE (OR THE OTHER INSTRUMENTS PROVIDING THE FACILITIES); or
2897 4. A similar statement of the nature of the organization
2898 or the manner in which the use rights are created, and that unit
2899 owners are required to pay.
2900
2901 Immediately following the applicable statement, the location in
2902 the disclosure materials where the development is described in
2903 detail shall be stated.
2904 (c) If the developer, or any other person other than the
2905 unit owners and other persons having use rights in the
2906 facilities, reserves, or is entitled to receive, any rent, fee,
2907 or other payment for the use of the facilities, then there shall
2908 be the following statement in conspicuous type: "THE UNIT OWNERS
2909 OR THE ASSOCIATION(S) MUST PAY RENT OR LAND USE FEES FOR
2910 RECREATIONAL OR OTHER COMMONLY USED FACILITIES." Immediately
2911 following this statement, the location in the disclosure
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Bill No. CS/CS/HB 1021 (2024)
Amendment No. 1
2912 materials where the rent or land use fees are described in
2913 detail shall be stated.
2914 (d) If, in any recreation format, whether leasehold, club,
2915 or other, any person other than the association has the right to
2916 a lien on the units to secure the payment of assessments, rent,
2917 or other exactions, there shall appear a statement in
2918 conspicuous type in substantially the following form:
2919
2920 1. THERE IS A LIEN OR LIEN RIGHT AGAINST EACH UNIT TO
2921 SECURE THE PAYMENT OF RENT AND OTHER EXACTIONS UNDER
2922 THE RECREATION LEASE. THE UNIT OWNER'S FAILURE TO MAKE
2923 THESE PAYMENTS MAY RESULT IN FORECLOSURE OF THE LIEN;
2924 or
2925 2. THERE IS A LIEN OR LIEN RIGHT AGAINST EACH UNIT TO
2926 SECURE THE PAYMENT OF ASSESSMENTS OR OTHER EXACTIONS
2927 COMING DUE FOR THE USE, MAINTENANCE, UPKEEP, OR REPAIR
2928 OF THE RECREATIONAL OR COMMONLY USED FACILITIES. THE
2929 UNIT OWNER'S FAILURE TO MAKE THESE PAYMENTS MAY RESULT
2930 IN FORECLOSURE OF THE LIEN.
2931
2932 Immediately following the applicable statement, the location in
2933 the disclosure materials where the lien or lien right is
2934 described in detail shall be stated.
2935 (9) If the developer or any other person has the right to
2936 increase or add to the recreational facilities at any time after
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Amendment No. 1
2937 the establishment of the condominium whose unit owners have use
2938 rights therein, without the consent of the unit owners or
2939 associations being required, there shall appear a statement in
2940 conspicuous type in substantially the following form:
2941 "RECREATIONAL FACILITIES MAY BE EXPANDED OR ADDED WITHOUT
2942 CONSENT OF UNIT OWNERS OR THE ASSOCIATION(S)." Immediately
2943 following this statement, the location in the disclosure
2944 materials where such reserved rights are described shall be
2945 stated.
2946 (10) A statement of whether the developer's plan includes
2947 a program of leasing units rather than selling them, or leasing
2948 units and selling them subject to such leases. If so, there
2949 shall be a description of the plan, including the number and
2950 identification of the units and the provisions and term of the
2951 proposed leases, and a statement in boldfaced type that: "THE
2952 UNITS MAY BE TRANSFERRED SUBJECT TO A LEASE."
2953 (11) The arrangements for management of the association
2954 and maintenance and operation of the condominium property and of
2955 other property that will serve the unit owners of the
2956 condominium property, and a description of the management
2957 contract and all other contracts for these purposes having a
2958 term in excess of 1 year, including the following:
2959 (a) The names of contracting parties.
2960 (b) The term of the contract.
2961 (c) The nature of the services included.
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Amendment No. 1
2962 (d) The compensation, stated on a monthly and annual
2963 basis, and provisions for increases in the compensation.
2964 (e) A reference to the volumes and pages of the
2965 condominium documents and of the exhibits containing copies of
2966 such contracts.
2967
2968 Copies of all described contracts shall be attached as exhibits.
2969 If there is a contract for the management of the condominium
2970 property, then a statement in conspicuous type in substantially
2971 the following form shall appear, identifying the proposed or
2972 existing contract manager: "THERE IS (IS TO BE) A CONTRACT FOR
2973 THE MANAGEMENT OF THE CONDOMINIUM PROPERTY WITH (NAME OF THE
2974 CONTRACT MANAGER)." Immediately following this statement, the
2975 location in the disclosure materials of the contract for
2976 management of the condominium property shall be stated.
2977 (12) If the developer or any other person or persons other
2978 than the unit owners has the right to retain control of the
2979 board of administration of the association for a period of time
2980 which can exceed 1 year after the closing of the sale of a
2981 majority of the units in that condominium to persons other than
2982 successors or alternate developers, then a statement in
2983 conspicuous type in substantially the following form shall be
2984 included: "THE DEVELOPER (OR OTHER PERSON) HAS THE RIGHT TO
2985 RETAIN CONTROL OF THE ASSOCIATION AFTER A MAJORITY OF THE UNITS
2986 HAVE BEEN SOLD." Immediately following this statement, the
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COMMITTEE/SUBCOMMITTEE AMENDMENT
Bill No. CS/CS/HB 1021 (2024)
Amendment No. 1
2987 location in the disclosure materials where this right to control
2988 is described in detail shall be stated.
2989 (13) If there are any restrictions upon the sale,
2990 transfer, conveyance, or leasing of a unit, then a statement in
2991 conspicuous type in substantially the following form shall be
2992 included: "THE SALE, LEASE, OR TRANSFER OF UNITS IS RESTRICTED
2993 OR CONTROLLED." Immediately following this statement, the
2994 location in the disclosure materials where the restriction,
2995 limitation, or control on the sale, lease, or transfer of units
2996 is described in detail shall be stated.
2997 (14) If the condominium is part of a phase project, the
2998 following information shall be stated:
2999 (a) A statement in conspicuous type in substantially the
3000 following form: "THIS IS A PHASE CONDOMINIUM. ADDITIONAL LAND
3001 AND UNITS MAY BE ADDED TO THIS CONDOMINIUM." Immediately
3002 following this statement, the location in the disclosure
3003 materials where the phasing is described shall be stated.
3004 (b) A summary of the provisions of the declaration which
3005 provide for the phasing.
3006 (c) A statement as to whether or not residential buildings
3007 and units which are added to the condominium may be
3008 substantially different from the residential buildings and units
3009 originally in the condominium. If the added residential
3010 buildings and units may be substantially different, there shall
3011 be a general description of the extent to which such added
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COMMITTEE/SUBCOMMITTEE AMENDMENT
Bill No. CS/CS/HB 1021 (2024)
Amendment No. 1
3012 residential buildings and units may differ, and a statement in
3013 conspicuous type in substantially the following form shall be
3014 included: "BUILDINGS AND UNITS WHICH ARE ADDED TO THE
3015 CONDOMINIUM MAY BE SUBSTANTIALLY DIFFERENT FROM THE OTHE R
3016 BUILDINGS AND UNITS IN THE CONDOMINIUM." Immediately following
3017 this statement, the location in the disclosure materials where
3018 the extent to which added residential buildings and units may
3019 substantially differ is described shall be stated.
3020 (d) A statement of the maximum number of buildings
3021 containing units, the maximum and minimum numbers of units in
3022 each building, the maximum number of units, and the minimum and
3023 maximum square footage of the units that may be contained within
3024 each parcel of land which may be added to the condominium.
3025 (15) If a condominium created on or after July 1, 2000, is
3026 or may become part of a multicondominium, the following
3027 information must be provided:
3028 (a) A statement in conspicuous type in substantially the
3029 following form: "THIS CONDOMINIUM IS (MAY BE) PART OF A
3030 MULTICONDOMINIUM DEVELOPMENT IN WHICH OTHER CONDOMINIUMS WILL
3031 (MAY) BE OPERATED BY THE SAME ASSOCIATION." Immediately
3032 following this statement, the location in the prospectus or
3033 offering circular and its exhibits where the multicondominium
3034 aspects of the offering are described must be stated.
3035 (b) A summary of the provisions in the declaration,
3036 articles of incorporation, and bylaws which establish and
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COMMITTEE/SUBCOMMITTEE AMENDMENT
Bill No. CS/CS/HB 1021 (2024)
Amendment No. 1
3037 provide for the operation of the multicondominium, including a
3038 statement as to whether unit owners in the condominium will have
3039 the right to use recreational or other facilities located or
3040 planned to be located in other condominiums operated by the same
3041 association, and the manner of sharing the common expenses
3042 related to such facilities.
3043 (c) A statement of the minimum and maximum number of
3044 condominiums, and the minimum and maximum number of units in
3045 each of those condominiums, which will or may be operated by the
3046 association, and the latest date by which the exact number will
3047 be finally determined.
3048 (d) A statement as to whether any of the condominiums in
3049 the multicondominium may include units intended to be used for
3050 nonresidential purposes and the purpose or purposes permitted
3051 for such use.
3052 (e) A general description of the location and approximate
3053 acreage of any land on which any additional condominiums to be
3054 operated by the association may be located.
3055 (16) If the condominium is created by conversion of
3056 existing improvements, the following information shall be
3057 stated:
3058 (a) The information required by s. 718.616.
3059 (b) A caveat that there are no express warranties unless
3060 they are stated in writing by the developer.
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Bill No. CS/CS/HB 1021 (2024)
Amendment No. 1
3061 (17) A summary of the restrictions, if any, to be imposed
3062 on units concerning the use of any of the condominium property,
3063 including statements as to whether there are restrictions upon
3064 children and pets, and reference to the volumes and pages of the
3065 condominium documents where such restrictions are found, or if
3066 such restrictions are contained elsewhere, then a copy of the
3067 documents containing the restrictions shall be attached as an
3068 exhibit.
3069 (18) If there is any land that is offered by the developer
3070 for use by the unit owners and that is neither owned by them nor
3071 leased to them, the association, or any entity controlled by
3072 unit owners and other persons having the use rights to such
3073 land, a statement shall be made as to how such land will serve
3074 the condominium. If any part of such land will serve the
3075 condominium, the statement shall describe the land and the
3076 nature and term of service, and the declaration or other
3077 instrument creating such servitude shall be included as an
3078 exhibit.
3079 (19) The manner in which utility and other services,
3080 including, but not limited to, sewage and waste disposal, water
3081 supply, and storm drainage, will be provided and the person or
3082 entity furnishing them.
3083 (20) An explanation of the manner in which the
3084 apportionment of common expenses and ownership of the common
3085 elements has been determined.
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COMMITTEE/SUBCOMMITTEE AMENDMENT
Bill No. CS/CS/HB 1021 (2024)
Amendment No. 1
3086 (21) An estimated operating budget for the condominium and
3087 the association, and a schedule of the unit owner's expenses
3088 shall be attached as an exhibit and shall contain the following
3089 information:
3090 (a) The estimated monthly and annual expenses of the
3091 condominium and the association that are collected from unit
3092 owners by assessments.
3093 (b) The estimated monthly and annual expenses of each unit
3094 owner for a unit, other than common expenses paid by all unit
3095 owners, payable by the unit owner to persons or entities other
3096 than the association, as well as to the association, including
3097 fees assessed pursuant to s. 718.113(1) for maintenance of
3098 limited common elements where such costs are shared only by
3099 those entitled to use the limited common element, and the total
3100 estimated monthly and annual expense. There may be excluded from
3101 this estimate expenses which are not provided for or
3102 contemplated by the condominium documents, including, but not
3103 limited to, the costs of private telephone; maintenance of the
3104 interior of condominium units, which is not the obligation of
3105 the association; maid or janitorial services privately
3106 contracted for by the unit owners; utility bills billed directly
3107 to each unit owner for utility services to his or her unit;
3108 insurance premiums other than those incurred for policies
3109 obtained by the condominium; and similar personal expenses of
3110 the unit owner. A unit owner's estimated payments for
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Bill No. CS/CS/HB 1021 (2024)
Amendment No. 1
3111 assessments shall also be stated in the estimated amounts for
3112 the times when they will be due.
3113 (c) The estimated items of expenses of the condominium and
3114 the association, except as excluded under paragraph (b),
3115 including, but not limited to, the following items, which shall
3116 be stated as an association expense collectible by assessments
3117 or as unit owners' expenses payable to persons other th an the
3118 association:
3119 1. Expenses for the association and condominium:
3120 a. Administration of the association.
3121 b. Management fees.
3122 c. Maintenance.
3123 d. Rent for recreational and other commonly used
3124 facilities.
3125 e. Taxes upon association property.
3126 f. Taxes upon leased areas.
3127 g. Insurance.
3128 h. Security provisions.
3129 i. Other expenses.
3130 j. Operating capital.
3131 k. Reserves for all applicable items referenced in s.
3132 718.112(2)(g).
3133 l. Fees payable to the division.
3134 2. Expenses for a unit owner:
3135 a. Rent for the unit, if subject to a lease.
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COMMITTEE/SUBCOMMITTEE AMENDMENT
Bill No. CS/CS/HB 1021 (2024)
Amendment No. 1
3136 b. Rent payable by the unit owner directly to the lessor
3137 or agent under any recreational lease or lease for the use of
3138 commonly used facilities, which use and payment is a mandatory
3139 condition of ownership and is not included in the common expense
3140 or assessments for common maintenance paid by the unit owners to
3141 the association.
3142 (d) The following statement in conspicuous type:
3143
3144 THE BUDGET CONTAINED IN THIS OFFERING CIRCULAR HAS
3145 BEEN PREPARED IN ACCORDANCE WITH THE CONDOMINIUM ACT
3146 AND IS A GOOD FAITH ESTIMATE ONLY AND REPRESENTS AN
3147 APPROXIMATION OF FUTURE EXPENSES BASED ON FACTS AND
3148 CIRCUMSTANCES EXISTING AT THE TIME OF ITS PREPARATION.
3149 ACTUAL COSTS OF SUCH ITEMS MAY EXCEED THE ESTIMATED
3150 COSTS. SUCH CHANGES IN COST DO NOT CONSTITUTE MATERIAL
3151 ADVERSE CHANGES IN THE OFFERING.
3152
3153 (e) Each budget for an association prepared by a developer
3154 consistent with this subsection shall be prepared in good faith
3155 and shall reflect accurate estimated amounts for the required
3156 items in paragraph (c) at the time of the filing of the offering
3157 circular with the division, and subsequent increased amounts of
3158 any item included in the association's estimated budget that are
3159 beyond the control of the developer shall not be considered an
3160 amendment that would give rise to rescission rights set forth in
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COMMITTEE/SUBCOMMITTEE AMENDMENT
Bill No. CS/CS/HB 1021 (2024)
Amendment No. 1
3161 s. 718.503(1)(a) or (b), nor shall such increases modify, void,
3162 or otherwise affect any guarantee of the developer contained in
3163 the offering circular or any purchase contract. It is the intent
3164 of this paragraph to clarify existing law.
3165 (f) The estimated amounts shall be stated for a period of
3166 at least 12 months and may distinguish between the period prior
3167 to the time unit owners other than the developer elect a
3168 majority of the board of administration and the period after
3169 that date.
3170 (22) A schedule of estimated closing expenses to be paid
3171 by a buyer or lessee of a unit and a statement of whether title
3172 opinion or title insurance policy is available to the buyer and,
3173 if so, at whose expense.
3174 (23) The identity of the developer and the chief operating
3175 officer or principal directing the creation and sale of the
3176 condominium and a statement of its and his or her experience in
3177 this field.
3178 (24) Copies of the following, to the extent they are
3179 applicable, shall be included as exhibits:
3180 (a) The declaration of condominium, or the proposed
3181 declaration if the declaration has not been recorded.
3182 (b) The articles of incorporation creating the
3183 association.
3184 (c) The bylaws of the association.
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COMMITTEE/SUBCOMMITTEE AMENDMENT
Bill No. CS/CS/HB 1021 (2024)
Amendment No. 1
3185 (d) The ground lease or other underlying lease of the
3186 condominium.
3187 (e) The management agreement and all maintenance and other
3188 contracts for management of the association and operation of the
3189 condominium and facilities used by the unit owners having a
3190 service term in excess of 1 year.
3191 (f) The estimated operating budget for the condominium,
3192 the required schedule of unit owners' expenses, and the
3193 association's most recent structural integrity reserve study or
3194 a statement that the association has not completed a structural
3195 integrity reserve study.
3196 (g) A copy of the floor plan of the unit and the plot plan
3197 showing the location of the residential buildings and the
3198 recreation and other common areas.
3199 (h) The lease of recreational and other facilities that
3200 will be used only by unit owners of the subject condominium.
3201 (i) The lease of facilities used by owners and others.
3202 (j) The form of unit lease, if the offer is of a
3203 leasehold.
3204 (k) A declaration of servitude of properties serving the
3205 condominium but not owned by unit owners or leased to them or
3206 the association.
3207 (l) The statement of condition of the existing building or
3208 buildings, if the offering is of units in an operation being
3209 converted to condominium ownership.
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COMMITTEE/SUBCOMMITTEE AMENDMENT
Bill No. CS/CS/HB 1021 (2024)
Amendment No. 1
3210 (m) The statement of inspection for termite damage and
3211 treatment of the existing improvements, if the condominium is a
3212 conversion.
3213 (n) The form of agreement for sale or lease of units.
3214 (o) A copy of the agreement for escrow of payments made to
3215 the developer prior to closing.
3216 (p) A copy of the documents containing any restrictions on
3217 use of the property required by subsection (17).
3218 (q) A copy of the inspector-prepared summary of the
3219 milestone inspection report as described in ss. 553.899 and
3220 718.301(4)(p), as applicable.
3221 (25) Any prospectus or offering circular complying, prior
3222 to the effective date of this act, with the provisions of former
3223 ss. 711.69 and 711.802 may continue to be used without amendment
3224 or may be amended to comply with this chapter.
3225 (26) A brief narrative description of the location and
3226 effect of all existing and intended easements located or to be
3227 located on the condominium property other than those described
3228 in the declaration.
3229 (27) If the developer is required by state or local
3230 authorities to obtain acceptance or approval of any dock or
3231 marina facilities intended to serve the condominium, a copy of
3232 any such acceptance or approval acquired by the time of filing
3233 with the division under s. 718.502(1) or a statement that such
3234 acceptance or approval has not been acquired or received.
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COMMITTEE/SUBCOMMITTEE AMENDMENT
Bill No. CS/CS/HB 1021 (2024)
Amendment No. 1
3235 (28) Evidence demonstrating that the developer has an
3236 ownership, leasehold, or contractual interest in the land upon
3237 which the condominium is to be developed.
3238 Section 18. Subsection (3) of section 718.503, Florida
3239 Statutes, is amended to read:
3240 718.5011 Ombudsman; appointment; administration.—
3241 (2) The secretary of the Department of Business and
3242 Professional Regulation Governor shall appoint the ombudsman.
3243 The ombudsman must be an attorney admitted to practice before
3244 the Florida Supreme Court and shall serve at the pleasure of the
3245 Governor. A vacancy in the office shall be filled in the same
3246 manner as the original appointment. An officer or full-time
3247 employee of the ombudsman's office may not actively engage in
3248 any other business or profession that directly or indirectly
3249 relates to or conflicts with his or her work in the ombudsman's
3250 office; serve as the representative of any political party,
3251 executive committee, or other governing body of a political
3252 party; serve as an executive, officer, or employee of a
3253 political party; receive remuneration for activities on behalf
3254 of any candidate for public office; or engage in soliciting
3255 votes or other activities on behalf of a candidate for public
3256 office. The ombudsman or any employee of his or her office ma y
3257 not become a candidate for election to public office unless he
3258 or she first resigns from his or her office or employment.
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COMMITTEE/SUBCOMMITTEE AMENDMENT
Bill No. CS/CS/HB 1021 (2024)
Amendment No. 1
3259 Section 19. Paragraph (k) of subsection (1) of section
3260 719.106, Florida Statutes, is amended to read:
3261 719.106 Bylaws; cooperative ownership.—
3262 (1) MANDATORY PROVISIONS.—The bylaws or other cooperative
3263 documents shall provide for the following, and if they do not,
3264 they shall be deemed to include the following:
3265 (k) Structural integrity reserve study.—
3266 1. A residential cooperative association must have a
3267 structural integrity reserve study completed at least every 10
3268 years for each building on the cooperative property that is
3269 three stories or higher in height, as determined by the Florida
3270 Building Code, that includes, at a minimum, a study of the
3271 following items as related to the structural integrity and
3272 safety of the building:
3273 a. Roof.
3274 b. Structure, including load-bearing walls and other
3275 primary structural members and primary structural systems as
3276 those terms are defined in s. 627.706.
3277 c. Fireproofing and fire protection systems.
3278 d. Plumbing.
3279 e. Electrical systems.
3280 f. Waterproofing and exterior painting.
3281 g. Windows and exterior doors.
3282 h. Any other item that has a deferred maintenance expense
3283 or replacement cost that exceeds $10,000 and the failure to
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COMMITTEE/SUBCOMMITTEE AMENDMENT
Bill No. CS/CS/HB 1021 (2024)
Amendment No. 1
3284 replace or maintain such item negatively affects the items
3285 listed in sub-subparagraphs a.-g., as determined by the visual
3286 inspection portion of the structural integrity reserve study.
3287 2. A structural integrity reserve study is based on a
3288 visual inspection of the cooperative property. A structural
3289 integrity reserve study may be performed by any person qualified
3290 to perform such study. However, the visual inspection portion of
3291 the structural integrity reserve study must be performed or
3292 verified by an engineer licensed under chapter 471, an architect
3293 licensed under chapter 481, or a person certified as a reserve
3294 specialist or professional reserve analyst by the Community
3295 Associations Institute or the Association of Professional
3296 Reserve Analysts.
3297 3. At a minimum, a structural integrity reserve study must
3298 identify each item of the cooperative property being visually
3299 inspected, state the estimated remaining useful life and the
3300 estimated replacement cost or deferred maintenance expense of
3301 each item of the cooperative property being visually inspected,
3302 and provide a reserve funding schedule with a recommended annual
3303 reserve amount that achieves the estimated replacement cost or
3304 deferred maintenance expense of each item of cooperative
3305 property being visually inspected by the end of the estimated
3306 remaining useful life of the item. The structural integrity
3307 reserve study may recommend that reserves do not need to be
3308 maintained for any item for which an estimate of useful life and
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COMMITTEE/SUBCOMMITTEE AMENDMENT
Bill No. CS/CS/HB 1021 (2024)
Amendment No. 1
3309 an estimate of replacement cost cannot be determined, or the
3310 study may recommend a deferred maintenance expense amount for
3311 such item. The structural integrity reserve study may recommend
3312 that reserves for replacement costs do not need to be maintained
3313 for any item with an estimated remaining useful life of greater
3314 than 25 years, but the study may recommend a deferred
3315 maintenance expense amount for such item.
3316 4. This paragraph does not apply to buildings less than
3317 three stories in height; single-family, two-family, or three-
3318 family dwellings with three or fewer habitable stories above
3319 ground; any portion or component of a building that has not been
3320 submitted to the cooperative form of ownership; or any portion
3321 or component of a building that is maintained by a party other
3322 than the association.
3323 5. Before a developer turns over control of an association
3324 to unit owners other than the developer, the developer must have
3325 a turnover inspection report in compliance with s. 719.301(4)(p)
3326 and (q) for each building on the cooperative property that is
3327 three stories or higher in height.
3328 6. Associations existing on or before July 1, 2022, which
3329 are controlled by unit owners other than the developer, must
3330 have a structural integrity reserve study completed by December
3331 31, 2024, for each building on the cooperative property that is
3332 three stories or higher in height. An association that is
3333 required to complete a milestone inspection on or before
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COMMITTEE/SUBCOMMITTEE AMENDMENT
Bill No. CS/CS/HB 1021 (2024)
Amendment No. 1
3334 December 31, 2026, in accordance with s. 553.899 may complete
3335 the structural integrity reserve study simultaneously with the
3336 milestone inspection. In no event may the structural integrity
3337 reserve study be completed after December 31, 2026.
3338 7. If the milestone inspection required by s. 553.899, or
3339 an inspection completed for a similar local requirement, was
3340 performed within the past 5 years and meets the requirements of
3341 this paragraph, such inspection may be used in place of the
3342 visual inspection portion of the structural integrity reserve
3343 study.
3344 8. If the officers or directors of an association
3345 willfully and knowingly fail to complete a structural integrity
3346 reserve study pursuant to this paragraph, such failure is a
3347 breach of an officer's and director's fiduciary relationship to
3348 the unit owners under s. 719.104(9).
3349 9. Within 45 days after receiving the structural integrity
3350 reserve study, the association must distribute a copy of the
3351 study to each unit owner or deliver to each unit owner a notice
3352 that the completed study is available for inspection and copying
3353 upon a written request. Distribution of a copy of the study or
3354 notice must be made by United States mail or personal delivery
3355 at the mailing address, property address, or any other address
3356 of the owner provided to fulfill the association's notice
3357 requirements under this chapter, or by electronic transmission
3358 to the e-mail address or facsimile number provided to fulfill
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COMMITTEE/SUBCOMMITTEE AMENDMENT
Bill No. CS/CS/HB 1021 (2024)
Amendment No. 1
3359 the association's notice requirements to unit owners who
3360 previously consented to receive notice by electronic
3361 transmission.
3362 10. Within 45 days after receiving the structural integrity
3363 reserve study, the association must provide the division with a
3364 statement indicating that such study was completed and that the
3365 association provided or made available such study to each unit
3366 owner in accordance with this section. Such statement shall be
3367 provided to the division in the manner provided by the division
3368 using a form posted on the division's website.
3369 Section 20. Paragraph (p) of subsection (4) of section
3370 719.301, Florida Statutes, is amended to read:
3371 719.301 Transfer of association control.—
3372 (4) When unit owners other than the developer elect a
3373 majority of the members of the board of administration of an
3374 association, the developer shall relinquish control of the
3375 association, and the unit owners shall accept control.
3376 Simultaneously, or for the purpose of paragraph (c) not more
3377 than 90 days thereafter, the developer shall deliver to the
3378 association, at the developer's expense, all property of the
3379 unit owners and of the association held or controlled by the
3380 developer, including, but not limited to, the following items,
3381 if applicable, as to each cooperative operated by the
3382 association:
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Bill No. CS/CS/HB 1021 (2024)
Amendment No. 1
3383 (p) Notwithstanding when the certificate of occupancy was
3384 issued or the height of the building, a turnover inspection
3385 report included in the official records, under seal of an
3386 architect or engineer authorized to practice in this state or a
3387 person certified as a reserve specialist or professional reserve
3388 analyst by the Community Associations Institute or the
3389 Association of Professional Reserve Analysts, consisting of a
3390 structural integrity reserve study attesting to required
3391 maintenance, condition, useful life, and replacement costs of
3392 the following applicable cooperative property:
3393 1. Roof.
3394 2. Structure, including load-bearing walls and primary
3395 structural members and primary structural systems as those terms
3396 are defined in s. 627.706.
3397 3. Fireproofing and fire protection systems.
3398 4. Plumbing.
3399 5. Electrical systems.
3400 6. Waterproofing and exterior painting.
3401 7. Windows and exterior doors.
3402 Section 21. The Division of Florida Condominiums,
3403 Timeshares, and Mobile Homes of the Department of Business and
3404 Professional Regulation shall complete a review of the website
3405 or application requirements for official records under s.
3406 718.111(12)(g), Florida Statutes, and make recommendations
3407 regarding any additional official records of a condominium
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COMMITTEE/SUBCOMMITTEE AMENDMENT
Bill No. CS/CS/HB 1021 (2024)
Amendment No. 1
3408 association that should be included in the record maintenance
3409 requirements in the statute. The division shall submit to the
3410 Governor, the President of the Senate, and the Speaker of the
3411 House of Representatives the findings of its review by January
3412 1, 2025.
3413 Section 22. The Division of Florida Condominiums,
3414 Timeshares, and Mobile Homes of the Department of Business and
3415 Professional Regulation shall create a database on its website
3416 of the associations that have reported the completion of their
3417 structural integrity reserve study under section 718.112(2)(g),
3418 and under section 719.106(1)(k), by January 1, 2025.
3419 Section 23. For the 2024-2025 fiscal year, the sums of
3420 $6,122,390 in recurring and $1,293,879 in nonrecurring funds
3421 from the General Revenue Fund are appropriated to the Department
3422 of Business and Professional Regulation, and 65 full-time
3423 equivalent positions with associated salary rate of 3,180,319
3424 are authorized, for the purpose of implementing this act.
3425 Section 24. The amendments made to ss. 718.103(14) and
3426 718.202(3), Florida Statutes, and the provisions of s.
3427 718.407(1), (2), and (6), Florida Statutes, are intended to
3428 clarify existing law and shall apply retroactively; however,
3429 such amendments do not revive or reinstate any right or interest
3430 that has been fully and finally adjudicated as invalid before
3431 October 1, 2024.
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COMMITTEE/SUBCOMMITTEE AMENDMENT
Bill No. CS/CS/HB 1021 (2024)
Amendment No. 1
3432 Section 25. Except as otherwise expressly provided in this
3433 act, this act shall take effect July 1, 2024.
3434
3435 -----------------------------------------------------
3436 T I T L E A M E N D M E N T
3437 Remove everything before the enacting clause and insert:
3438 A bill to be entitled
3439 An act relating to community associations; amending s. 468.4334,
3440 F.S.; requiring community association managers and community
3441 association management firms to return official records of an
3442 association within a specified time after termination of a
3443 contract; requiring notices of termination of certain
3444 contractual agreements to be sent in a specified manner;
3445 authorizing community association managers and community
3446 association management firms to retain, for a specified
3447 timeframe, records necessary to complete an ending financial
3448 statement or report; relieving community association managers
3449 and community association management firms from certain
3450 responsibilities and liability under certain circumstances;
3451 providing a rebuttable presumption regarding noncompliance;
3452 providing penalties for the failure to timely return official
3453 records; creating s. 468.4335, F.S.; requiring community
3454 association managers and community association management firms
3455 to disclose certain conflicts of interest to the association's
3456 board; providing a rebuttable presumption as to the existence of
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COMMITTEE/SUBCOMMITTEE AMENDMENT
Bill No. CS/CS/HB 1021 (2024)
Amendment No. 1
3457 a conflict; requiring an association to solicit and consider
3458 multiple bids for goods or services under certain circumstances;
3459 providing requirements for an association to approve any
3460 activity that is a conflict of interest; authorizing certain
3461 contracts to be canceled, subject to certain requirements;
3462 specifying liability and nonliability of the association upon
3463 cancellation of such a contract; authorizing an association to
3464 cancel a contract if certain conflicts were not disclos ed;
3465 specifying liability and nonliability of the association upon
3466 cancellation of a contract; defining the term "relative";
3467 reenacting and amending s. 468.436, F.S.; revising the list of
3468 grounds for which the Department of Business and Professional
3469 Regulation may take disciplinary actions against community
3470 association managers or community association firms; amending s.
3471 553.899; providing that the milestone inspection report does not
3472 apply to certain four-family dwellings; amending s. 718.103,
3473 F.S.; defining the term "hurricane protection"; amending s.
3474 718.104, F.S.; requiring declarations to specify the entity
3475 responsible for the installation, maintenance, repair, or
3476 replacement of hurricane protection; amending s. 718.111, F.S.;
3477 providing criminal penalties for any officer, director, or
3478 manager of an association who unlawfully solicits, offers to
3479 accept, or accepts any thing or service of value or kickback;
3480 requiring such officers, directors, or managers to be removed
3481 from office and a vacancy declared; revising the list of records
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COMMITTEE/SUBCOMMITTEE AMENDMENT
Bill No. CS/CS/HB 1021 (2024)
Amendment No. 1
3482 that constitute the official records of an association; revising
3483 maintenance requirements for official records; revising
3484 requirements regarding requests to inspect or copy association
3485 records; requiring an association to provide a checklist in
3486 response to certain records requests; providing a rebuttable
3487 presumption and criminal penalties; requiring certain persons to
3488 be removed from office and a vacancy declared under certain
3489 circumstances; defining the term "repeatedly"; requiring copies
3490 of certain building permits be posted on an association's
3491 website or application; modifying the method of delivery of
3492 certain financial reports to unit owners; revising circumstances
3493 under which an association may prepare certain reports; revising
3494 criminal penalties for persons who unlawfully use a debit card
3495 issued in the name of an association; requiring certain persons
3496 to be removed from office and a vacancy declared under certain
3497 circumstances; defining the term "lawful obligation of the
3498 association"; revising the threshold for associations that must
3499 post certain documents on its website or through an application;
3500 amending s. 718.112, F.S.; requiring the boards of certain
3501 associations to meet at least once every quarter; revising
3502 requirements regarding notice of such meetings; requiring a
3503 director to complete an educational requirement within a
3504 specified time period before or after election or appointment to
3505 the board; providing requirements for the educational
3506 curriculum; providing transitional provisions; requiring a
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COMMITTEE/SUBCOMMITTEE AMENDMENT
Bill No. CS/CS/HB 1021 (2024)
Amendment No. 1
3507 director to complete a certain amount of continuing education
3508 each year relating to changes in the law; requiring the
3509 secretary of the association to maintain certain information for
3510 inspection for a specified number of years; authorizing members
3511 of an association to pause the contribution to reserves or
3512 reduce reserves under certain circumstances and for a limited
3513 time; authorizing the board to expend reserve account funds to
3514 make the condominium building and structures habitable;
3515 requiring an association to distribute or deliver copies of a
3516 structural integrity reserve study to unit owners within a
3517 specified timeframe; specifying the manner of distribution or
3518 delivery; revising the circumstances under which a director or
3519 an officer must be removed from office after being charged by
3520 information or indictment of certain crimes; prohibiting such
3521 officers and directors with pending criminal charges from
3522 accessing the official records of any association; providing an
3523 exception; providing criminal penalties for certain fraudulent
3524 voting activities relating to association elections; amending s.
3525 718.113, F.S.; providing applicability; specifying that certain
3526 actions are not material alterations or substantial additions;
3527 authorizing the boards of residential and mixed-use condominiums
3528 to install or require unit owners to install hurricane
3529 protection; requiring a vote of the unit owners for the
3530 installation of hurricane protection; requiring that such vote
3531 be attested to in a certificate and recorded in certain public
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COMMITTEE/SUBCOMMITTEE AMENDMENT
Bill No. CS/CS/HB 1021 (2024)
Amendment No. 1
3532 records; requiring the board to provide, in various manners, to
3533 the unit owners a copy of the recorded certificate; providing
3534 that the validity or enforceability of a vote is not affected if
3535 the board fails to take certain actions; providing that a vote
3536 of the unit owners is not required under certain circumstances;
3537 prohibiting installation of the same type of hurricane
3538 protection previously installed; providing exceptions;
3539 prohibiting the boards of residential and mixed-use condominiums
3540 from refusing to approve certain hurricane protections;
3541 authorizing the board to require owners to adhere to certain
3542 guidelines regarding the external appearance of a condominium;
3543 revising responsibility for the cost of the removal or
3544 reinstallation of hurricane protection, including exterior
3545 windows, doors, or apertures; prohibiting the association from
3546 charging certain expenses to unit owners; requiring
3547 reimbursement or a credit toward future assessments to the unit
3548 owner in certain circumstances; authorizing the association to
3549 collect certain charges and specifying that such charges are
3550 enforceable as assessments under certain circumstances; amending
3551 s. 718.115, F.S.; specifying when the cost of installation of
3552 hurricane protection is not a common expense; authorizing
3553 certain expenses to be enforceable as assessments; requiring
3554 certain unit owners to be excused from certain assessments or to
3555 receive a credit for hurricane protection that has been
3556 installed; providing credit applicability under certain
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COMMITTEE/SUBCOMMITTEE AMENDMENT
Bill No. CS/CS/HB 1021 (2024)
Amendment No. 1
3557 circumstances; providing for the amount of credit that a unit
3558 owner must receive; specifying that certain expenses are common
3559 expenses; amending s. 718.121, F.S.; conforming a cross -
3560 reference; amending s. 718.1224, F.S.; revising legislative
3561 findings and intent; revising the definition of the term
3562 "governmental entity"; prohibiting an association from filing
3563 strategic lawsuits, taking certain actions against unit owners,
3564 and expending funds to support certain actions; amending s.
3565 718.128, F.S.; providing that a request for electronic voting
3566 may be made electronically; amending s. 718.301, F.S.; requiring
3567 developers to deliver a structural integrity reserve report to
3568 an association upon relinquishing control of the association;
3569 amending s. 718.3027, F.S.; revising requirements regarding
3570 attendance at a board meeting in the event of a conflict of
3571 interest; modifying circumstances under which a contract may be
3572 voided; amending s. 718.303, F.S.; requiring an association to
3573 provide certain notice to a unit owner by a specified time
3574 before an election; amending s. 718.501, F.S.; revising
3575 circumstances under which the Division of Florida Condominiums,
3576 Timeshares, and Mobile Homes has jurisdiction to investigate and
3577 enforce complaints relating to certain matters; requiring that
3578 the division provide official records, without charge, to a unit
3579 owner denied access; requiring the division to provide an
3580 educational curriculum free of charge and issue a certificate to
3581 directors of a board of administration; requiring that the
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COMMITTEE/SUBCOMMITTEE AMENDMENT
Bill No. CS/CS/HB 1021 (2024)
Amendment No. 1
3582 division refer suspected criminal acts to the appropriate law
3583 enforcement authority; authorizing certain division officials to
3584 attend association meetings; requiring that the division conduct
3585 random audits of associations for specified purposes; requiring
3586 an association's annual fee be filed concurrently with the
3587 annual certification; specifying requirements for the annual
3588 certification; amending 718.503, F.S.; providing a certain
3589 disclosure for condominium units in a portion of a building;
3590 amending s. 718.5011, F.S.; providing that the secretary of the
3591 Department of Business and Professional Regulation, rather than
3592 the Governor, appoints the condominium ombudsman; amending s.
3593 719.106, F.S.; requiring an association to distribute or deliver
3594 copies of a structural integrity reserve study to unit owners
3595 within a specified timeframe; specifying the manner of
3596 distribution or delivery; amending s. 719.301, F.S.; requiring
3597 developers to deliver a structural integrity reserve study to a
3598 cooperative association upon relinquishing control of
3599 association property; requiring the division to conduct a review
3600 of statutory requirements regarding posting of official records
3601 on a condominium association's website or application; requiring
3602 the division to submit its findings, including any
3603 recommendations, to the Governor and the Legislature by a
3604 specified date; requiring the division to include in its annual
3605 report associations that have completed their structural
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COMMITTEE/SUBCOMMITTEE AMENDMENT
Bill No. CS/CS/HB 1021 (2024)
Amendment No. 1
3606 integrity reserve study; providing appropriations; providing
3607 effective dates.
3608
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CS/CS/HB 1029
HOUSE OF REPRESENTATIVES STAFF ANALYSIS
BILL #: CS/CS/HB 1029 My Safe Florida Condominium Pilot Program
SPONSOR(S): State Administration & Technology Appropriations Subcommittee, Insurance & Banking
Subcommittee, Lopez, V., Hunschofsky and others
TIED BILLS: IDEN./SIM. BILLS: CS/SB 1366
REFERENCE ACTION ANALYST STAFF DIRECTOR or
BUDGET/POLICY CHIEF
1) Insurance & Banking Subcommittee 18 Y, 0 N, As CS Fortenberry Lloyd
2) State Administration & Technology 13 Y, 0 N, As CS Perez Topp
Appropriations Subcommittee
3) Commerce Committee Fortenberry Hamon
SUMMARY ANALYSIS
The My Safe Florida Home (MSFH) Program was created in 2006 within the Department of Financial Services
(DFS) to perform mitigation inspections of site-built, single-family, residential properties (inspections), and
mitigation grants (grants) to eligible applicants to make their homes less vulnerable to hurric ane damage. The
MSFH Program received $250 million in appropriations for the Fiscal Year 2006-2007, but was not funded again
until 2022. Since then, the Legislature has provided approximately $433 million in subsequent additional funding
to the MSFH Program.
Mitigation inspections are limited to homesteaded properties. Funds may be used to inspect townhouses to
determine if opening protection mitigation would help decrease the risk of hurricane damage and grant funds
may be used to pay for such opening protection mitigation if warranted. The value of the mitigation grant-
eligible homes is currently $700,000. While initially limited to homes within the wind-borne debris region, the
MSFH Program is currently a statewide program.
The bill establishes within DFS the My Safe Florida Condominium Pilot Program (MSFCP Program), with the
intent that the Program provide licensed inspectors to perform inspections for and grants to eligible
associations, as funding allows. Under the MSFCP Program, DFS must provide fiscal accountability, contract
management, and strategic leadership for the MSFCP Program, consistent with the bill’s provisions. The
MSFCP Program must be implemented pursuant to appropriations, and is subject to annual legislative
appropriations thereafter.
Essentially, the bill provides to condominium associations a program similar to that of the MSFH Program in
regards to requirements for participation, hurricane mitigation inspectors and inspections, eligibility for
mitigation grants, contract management by DFS, and required annual reports.
The bill has no impact on state or local government revenues and expenditures. The implementation of the
MSFCP Program is subject to funding in the General Appropriations Act (GAA). The bill may have a positive
direct economic impact on the private sector.
The bill provides an effective date of July 1, 2024.
This docum ent does not reflect the intent or official position of the bill sponsor or House of Representatives .
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FULL ANALYSIS
I. SUBSTANTIVE ANALYSIS
A. EFFECT OF PROPOSED CHANGES:
Background
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 purpose of 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 had 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; and
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 with wind certification entities
to provide mitigation inspections. In order to be eligible for the contracts, the entities had to use
hurricane mitigation inspectors who, at a minimum:
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 professional architects; 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 component of the MSFH Program was to retrofit single-family
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.
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homes to make them less vulnerable to hurricane damage. 9 To be eligible for a grant, the following
criteria must have been met:
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.
2022 Renewal of the MSFH Program
9 S. 215.5586(2), F.S.
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 Jan. 26, 2024).
18 Id.
19 Id.
20 Id.
21 Id.
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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:
A summary of the results of the mitigation inspection identifying recommended improvements a
homeowner may undertake;
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.
27 S. 215.5586(1)(a), F.S.
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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
2023 Developments to the MSFH Program
Following the significant interest in the program in 2022 and early 2023, the Legislature made
additional changes to the statutory framework for the MSFH Program during the 2023 Regular Session.
These changes included changes to the inspection and grant eligibility requirements, and program
management changes.
Single-family home eligibility for mitigation inspections was limited only to homesteaded properties. 29
Funds from the MSFH Program may now be used to inspect townhouses to determine if opening
protection mitigation would help decrease the risk of hurricane damage.30 If an inspection determines
that opening protection mitigation would decrease such risk, grant funds from the MSFH Program may
be used to pay for the mitigation.31 The value of the mitigation grant-eligible homes was also increased
from $500,000 to $700,000.32
The designation of a specific portion of the grant funds for low-income recipients was removed, but
increases the overall grant award for low-income recipients from $5,000 to $10,000.33 The program’s
geographic eligibility area was broadened to include otherwise in eligible homes outside the wind-borne
debris region, in effect making it a statewide program.
Among the project management changes implemented, home inspectors must be licensed, in addition
to certified.34 This requirement conforms with other statutory chapters that address home inspectors.
Funding for the MSFH Program
As of December 2023, the Legislature has appropriated a total of $433 million for the MSFH Program
since May 2022.35 In addition to the $150 million appropriated during the 2022D Special Session, this
includes $100 million in grant funding appropriated during the 2023 Regular Session and an additional
$176 million in grant funding appropriated during the 2023C Special Session. 36
Results of the MSFH Program
Between November 2022, and December 2023, the MSFH Program has provided more than 94,000
homeowners with hurricane mitigation inspections and approved more than 23,000 grant applications. 37
Over 73 percent of those homeowners who have completed participation in the grant component of the
MSFH Program have seen their homeowners insurance premiums drop or stabilize, and many are
paying premiums at or below the state average.38 According to DFS, upon applying to the MSFH
Program, the average premium of the applicants was 55.1 percent higher than the average Florida
homeowner’s premium.39 Based upon the decrease in premium following participation, DFS has
concluded that the MSFH Program participation is comprised of higher-than-average risk homeowners,
28 Department of Financial Services, supra note 22, at 2.
29 The homestead requirement was already in place for the grant portion of the MSFH Program under s. 215.5586(2), F.S., prior to the
2023 Regular Session.
30 S. 215.5586(1)(a), F.S.
31 S. 215.5586(2)(f), F.S.
32 S. 215.5586(2)(e)2., F.S.
33 S. 215.5586(2)(h), F.S.
34 S. 215.5586, F.S.
35 Department of Financial Services, 2023 Annual Report of My Safe Florida Home, p. 1.
36 Id. at p. 6. The mitigation grant funding is by far the largest component of the MSFH Program.
37 Id. at p. 1. Because the grant portion of the MSFH Program is fulfilled based on reimbursement to homeowners after proof of
completion of mitigation projects, the money to fulfill these grants has been reserved, but not all of it has been pai d to the homeowners
yet.
38 Id.
39 Id. at p. 2.
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which is consistent with the goal of helping those with homes at greatest risk. 40
Condominiums
While the current MSFH Program provides for the inspections of, and some mitigation projects to,
townhouses, Florida law does not currently provide a program for condominium owners similar to the
MSFH Program.
Effect of the Bill
The bill establishes within DFS the My Safe Florida Condominium Pilot Program (MSFCP Program),
with the intent that the Program provide licensed inspectors to perform inspections for and grants to
eligible associations, as funding allows. Under the MSFCP Program, DFS must provide fiscal
accountability, contract management, and strategic leadership for the MSFCP Program, consistent with
the bill’s provisions.
The MSFCP Program must be implemented pursuant to appropriations, and is subject to annual
legislative appropriations thereafter. The bill provides that its provisions do not create an entitlement for
associations or unit owner or obligate the state in any way to fund the inspection or retrofitting of
condominiums in Florida.
Essentially, the bill provides to condominium owners a program similar to that of the MSFH Program.
Definitions
The bill creates definitions for the following terms:
“Association” means, in addition to any entity responsible for the operation of common elements
owned in undivided shares by unit owners, any entity which operates or maintains other real
property in which unit owners have use rights, where membership in the entity is composed
exclusively of unit owners or their elected or appointed representatives and is a required
condition of unit ownership.41
“Association property” means that property, real and personal, which is owned or leased by, or
is dedicated by a recorded plat to, the association for the use and benefit of its members and is
located in the service area.
“Board of administration” means the board of directors or other representative body which is
responsible for administration of the association.42
“Condominium” means that form of ownership of real property created pursuant to ch. 718, F.S.,
which is comprised entirely of units that may be owned by one or more persons, and in which
there is, appurtenant to each unit, an undivided share in common elements. 43
“Condominium property” means the lands, leaseholds, and personal property that are subjected
to condominium ownership, whether or not contiguous, and all improvements thereon and all
easements and rights appurtenant thereto intended for use in connection with the condominium
and are located in the service area.
“Property” means association property and condominium property, as applicable, located in the
service area.
“Rebuild” means property under construction to replace a structure that was destroyed or
significantly damaged by a hurricane and deemed unlivable by a regulatory authority.
“Service area” means the area of the state 15 miles inward of the coastline. 44
“Unit” means a part of the condominium property which is subject to exclusive ownership. A unit
40 Id.
41 See s. 718.103(3), F.S.
42 See s. 718.103(5), F.S.
43 See s. 718.103(12), F.S.
44 S. 376.031, F.S., defines coastline as the line of mean low water along the portion of the coast that is in direct contact
with the open sea and the line marking the seaward limit of inland waters, as determined under the Convention on
Territorial Seas and the Contiguous Zone, 15 U.S.T. (Pt. 2) 1606.
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may be in improvements, land, or land and improvements together, as specified in an
association’s declaration.45
“Unit owner” means a record owner of legal title to a condominium parcel.46
Participation
The bill provides that, to apply for an inspection or grant for association property or condominium
property, an association must receive approval by a majority vote of the board of administration or a
majority vote of the total voting interests of the association to participate in the pilot program.
Additionally, to apply for a grant which improves one or more units within a condominium, an
association must receive both of the following:
Approval by a majority vote of the board of administration or a majority vote of the total voting
interests of the association to participate in a mitigation inspection.
A unanimous vote of all unit owners within the structure or building that is the subject of the
mitigation grant.
The votes required by this section of the bill may take place at the annual budget meeting of the
association or at a unit owner meeting called for the purpose of taking such vote. However, before a
vote of the unit owners can be taken, the association must provide to the unit owners a clear disclosure
of the MSFCP Program on form created by DFS. The bill further provides that:
The president and the treasurer of the board of administration must sign the disclosure form
indicating that a copy of the form was provided to each unit owner of the association;
The signed disclosure form and the minutes from the meeting at which the unit owners voted to
participate in the MSFCP Program must be maintained as part of the official records of the
association;
Within 14 days after an affirmative vote to participate in the MSFCP Program, the association
must provide written notice in the same manner as required under s. 718.112(2)(d), F.S., 47 to all
unit owners of the decision to participation in the MSFCP Program.
The bill provides that a unit owner may participate in the MSFCP Program through a mitigation grant
awarded to the association, but a unit owner may not participate individually in the MSFCP Program.
Hurricane Mitigation Inspectors
Licensed inspectors under the MSFCP Program are to provide inspections of the property to determine
the mitigation measures that are needed, the insurance premium discounts that may be available to the
association, and the improvements to existing properties of the association that are needed to reduce a
property’s vulnerability to hurricane damage.
The bill requires DFS to contract with wind certification entities to provide hurricane mitigation
inspections. To qualify for selection by DFS as a wind certification entity to provide hurricane mitigation
inspections, the entity must, at a minimum, meet all of the following requirements:
Use hurricane mitigation inspectors who are licensed or certified as a:
o Building inspector,
o General, building, or residential contractor,
o A professional engineer,
o A professional architect, or
o A home inspector who has completed at least 3 hours of hurricane mitigation training
approved by the Construction Industry Licensing Board, which must include hurricane
mitigation techniques, compliance with the uniform mitigation verification form, and
completion of a proficiency exam;
Use hurricane mitigation inspectors who have undergone drug testing and a background
45 See s. 718.103(29), F.S.
46 See s. 718.103(30), F.S.
47 Section 718.112(2)(d), F.S., are Florida’s laws relating to unit owner meetings of condominium associations.
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screening;48 and
Provide a quality assurance program including a reinspection component.
Hurricane Mitigation Inspections
The bill provides that the inspections provided to an association under the MSFCP Program must, at a
minimum, include all of the following:
An inspection of the property, and a report that summarizes the results and identifies
recommended improvements the association may take to mitigate hurricane damage;
A range of cost estimates regarding the recommended mitigation improvements; and
Information regarding estimated insurance premium discounts, correlated to the current
mitigation features and the recommended mitigation improvements identified by the inspection.
An application for an inspection must contain a signed or electronically verified statement made under
penalty of perjury by the president of the board of administration that the association has submitted only
a single application for each property that the association operates or maintains. Additionally, an
association may apply for an deceive an inspection without also applying for a grant.
Mitigation Grants
Financial grants under the MSFCP Program may be used to encourage associations to retrofit the
property the association operates and maintains in order to make such property less vulnerable to
hurricane damage. The bill provides that an application for a mitigation grant must:
Contain a signed or electronically verified statement made under penalty of perjury by the
president of the board of administration that the association has submitted only a single
application for each property that the association operates or maintains;
Include a notarized statement from the president of the board of administration containing the
name and license number of the contractor the association intends to use for the mitigation
project; and
Include a notarized statement from the president of the board of administration which commits
to DFS that the association will complete the mitigation improvements. 49
An association may select its own contractor for the mitigation project, provided such contractor meets
all qualification, certification, or licensing requirements in general law. A mitigation project must be
performed by a properly licensed contractor who has secured all required local permits necessary for
the project. DFS must electronically verify that the contractor's state license number is accurate and up
to date before approving a grant application.
An association awarded a grant must complete the entire mitigation project to receive the final grant
award and must agree to make the property available for a final inspection once the mitigation project is
finished to ensure the mitigation improvements are completed in a matter consistent with the intent of
the MSFCP Program and meet or exceed the applicable Florida Building Code requirements.
Construction must be completed and the association must submit a request to DFS for a final
inspection, or request an extension of time, within 1 year after receiving grant approval. If the
association fails to comply with these provisions, the application is deemed abandoned and the grant
money reverts back to DFS.
All grants must be matched on the basis of $1 provided by the association for $2 provided by the state,
48 The bill provides that DFS may conduct criminal record checks of inspectors used by wind certification entities. Under
the bill, inspectors must submit a set of fingerprints to DFS for state and national criminal history checks and must pay a
fingerprint processing fee. The fingerprints must be sent by DFS to the Florida Department of Law Enforcement (FDLE)
and forwarded to the Federal Bureau of Investigation for processing. The results must be returned to DFS for screening.
The fingerprints must be taken by a law enforcement agency, designated examination center, or other DFS-approved
entity. The bill includes the FDLE preferred language regarding fingerprinting.
49 If the grant will be used to improve units, the application must also include an acknowledged statement from each unit
owner who is required to provide approval for a grant under the other applicable provision of the bill.
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up to a maximum contribution as provided in the General Appropriations Act. When recommended by a
hurricane mitigation inspection report, grants for eligible associations may be used for the following
improvements:
Opening protection.
Exterior doors, including garage doors.
Reinforcing roof-to-wall connections.
Improving the strength of roof-deck attachments.
Secondary water barrier for roof.
Roof-related projects will be funded at $11 per square foot times the square feet of the replacement
roof, not to exceed $1,000 per unit, and a maximum grant contribution of 50 percent of the project.
Opening protection-related projects have a maximum contribution of $750 per window or door
replacement, not to exceed $1,500, and a maximum contribution of 50 percent of the project. An
association may receive grants for both roof and opening protection projects, but the maximum overall
grant is limited to $175,000 per association.
On the other hand, the association may not use a mitigation grant to install the same type of
improvements that were previously installed or pay a deductible for a pending insurance claim for
damage that is part of the property for which grant funds are being received. However, grants may be
used for a previously inspected existing structure on the property or for a rebuild.
If improvements to protect the property which complied with the current applicable building code at the
time have been previously installed, the association must use a mitigation grant to install improvements
that do both of the following:
Comply with or exceed the applicable building code in effect at the time the association applied
for the grant.
Provide more hurricane protection than the improvements that the association previously
installed.
The bill requires DFS to develop a process that ensures the most efficient means to collect and verify
grant applications to determine eligibility and may direct hurricane mitigation inspectors to collect and
verify grant application information or use the internet or other electronic means to collect information
and determine eligibility.
Further, the bill specifies the department is unable to accept grant applications or maintain a waiting list
after the appropriation has been fully obligated, unless the Legislature provides the authority to do so.
Contract Management
The bill allows DFS to contract with third parties for grants management, inspection services, contractor
services, information technology, educational outreach, and auditing services. Such contracts are
considered direct costs of the MSFCP Program and are not subject to administrative cost limits. DFS
must contract with providers that have a demonstrated record of successful business operations in
areas directly related to the services to be provided and must ensure the highest accountability for use
of state funds, consistent with the bill’s provisions.
Further, the bill requires DFS to implement a quality assurance and reinspection program that
determines whether initial inspections and mitigation improvements are completed in a manner
consistent with the intent of the MSFCP Program. DFS may use a valid random sampling in order to
perform the quality assurance portion of the MSFCP Program.
Reports
By February 1 of each year, DFS must submit a report to the President of the Senate and the Speaker
of the House of Representatives on the activities of the MSFCP Program and the use of state funds.
The report must include all of the following information:
The number of inspections requested;
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The number of inspections performed;
The number of grant applications received;
The number of grants approved and the monetary value of each grant;
The estimated average annual amount of insurance premium discounts each association
received and the total estimated annual amount of insurance premium discounts received by all
associations participating in the MSFCP Program; and
The estimated average annual amount of insurance premium discounts each unit owner
received as a result of the improvements to the building or structure.
B. SECTION DIRECTORY:
Section 1. Creates s. 215.5587, F.S., relating to My Safe Florida Condominium Pilot Program.
Section 2. Provides an effective date of July 1, 2024.
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 MSFCP Program receive mitigation credits or premium
discounts under their property insurance policies and are less exposed to risk as a result of mitigation
retrofitting using grant funds, the MSFCP Program may have a positive direct economic impact on
homeowners. Hurricane mitigation inspectors and contractors may also see an increase in activity.
D. FISCAL COMMENTS:
The bill has no direct impact on state government expenditures. Instead, the bill establishes that the
MSFCP Program will be implemented subject to funding in the General Appropriations Act (GAA).
Currently HB 5001 appropriates $25 million for grants, $1.4 million for administrative costs, and
$600,000 for inspections.
III. COMMENTS
A. CONSTITUTIONAL ISSUES:
1. Applicability of Municipality/County Mandates Provision:
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Not applicable. This bill does not appear to affect county or municipal governments.
2. Other:
None.
B. RULE-MAKING AUTHORITY:
The bill does not authorize DFS to adopt rules to administer the MSFCP Program. However,
rulemaking authority should be considered to align this program with the rulemaking authority for the
MSFH Program.
C. DRAFTING ISSUES OR OTHER COMMENTS:
See Rule-making Authority.
IV. AMENDMENTS/COMMITTEE SUBSTITUTE CHANGES
On February 1, 2024, the Insurance & Banking Subcommittee considered the bill, adopted one
amendment, and reported the bill favorably as a committee substitute. The amendment made the following
changes to the bill:
Defined a “service area” for the program that is the area of the state 15 miles inward of the
coastline; making the pilot project statewide in this coastal zone.
Clarified the fingerprinting requirement to comport with a recommendation by FDLE.
On February 13, 2024, the State Administration & Technology Appropriations Subcommittee considered
the bill, adopted an amendment, and reported the bill as favorably as a committee substitute. The
amendment made the following changes:
Roof-related projects is set at $11 per square foot times the square feet of the replacement roof,
limited to $1,000 per unit, and maximum grant contribution is limited to 50 percent of the project.
Opening protection-related projects grant contribution is a maximum of $750 per replacement
window, limited to $1,500 per unit, and a maximum grant contribution of 50 percent of the project.
Allows an association to receive grant funds for both roof-related and opening protection-related
projects, but the maximum grant contribution is limited to $175,000.
The department may not accept grant applications or maintain a waiting list after cumulative value
of grants have been fully obligated. Unless the Legislature provides expressed authority.
The analysis is drafted to the committee substitute as passed by the State Administration & Technology
Appropriations Subcommittee.
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F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
CS/CS/HB 1029 2024
1 A bill to be entitled
2 An act relating to the My Safe Florida Condominium
3 Pilot Program; creating s. 215.5587, F.S.;
4 establishing the My Safe Florida Condominium Pilot
5 Program within the Department of Financial Services;
6 providing legislative intent; providing definitions;
7 providing requirements for associations and unit
8 owners to participate in the pilot program; providing
9 voting requirements; requiring the department to
10 contract with specified entities for certain
11 inspections; providing requirements for such entities;
12 authorizing the department to conduct criminal record
13 checks of certain inspectors; requiring inspectors to
14 submit a full set of fingerprints to the department or
15 other authorized entities; providing requirements for
16 state and federal fingerprint processing; providing
17 requirements for hurricane mitigation inspectors and
18 inspections; requiring applications for inspections
19 and grants to include specified statements;
20 authorizing an association to receive an inspection
21 without applying for a mitigation grant; providing
22 mitigation grants for a specified purpose; providing
23 requirements for an association receiving a mitigation
24 grant; authorizing an association to select is own
25 contractor if such contractor meets certain
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26 requirements; requiring the department to
27 electronically verify a contractor's state license;
28 requiring construction to be completed and the
29 association to submit a request for a final inspection
30 within a specified time period; providing requirements
31 for funding grant projects; requiring mitigation
32 grants to be matched by the association; providing
33 maximum state contributions; authorizing associations
34 to receive grant funds for multiple projects;
35 prohibiting the department from accepting grant
36 applications or maintaining a waiting list under
37 certain circumstances, unless otherwise expressly
38 authorized by the Legislature; providing requirements
39 for mitigation projects; providing how mitigation
40 grants may be used; requiring the department to
41 develop a specified process to ensure efficiency;
42 authorizing the department to contract for certain
43 services; providing requirements for such contracts;
44 requiring the department to implement a quality
45 assurance and reinspection program; requiring the
46 department to submit to the Legislature an annual
47 report with specified information; providing an
48 effective date.
49
50 Be It Enacted by the Legislature of the State of Florida:
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51
52 Section 1. Section 215.5587, Florida Statutes, is created
53 to read:
54 215.5587 My Safe Florida Condominium Pilot Program.—There
55 is established within the Department of Financial Services the
56 My Safe Florida Condominium Pilot Program to be implemented
57 pursuant to appropriations. The department shall provide fiscal
58 accountability, contract management, and strategic leadership
59 for the pilot program, consistent with this section. This
60 section does not create an entitlement for associations or unit
61 owners or obligate the state in any way to fund the inspection
62 or retrofitting of condominiums in the state. Implementation of
63 this pilot program is subject to annual legislative
64 appropriations. It is the intent of the Legislature that the My
65 Safe Florida Condominium Pilot Program provide licensed
66 inspectors to perform inspections for and grants to eligible
67 associations as funding allows.
68 (1) DEFINITIONS.—As used in this section, the term:
69 (a) "Association" has the same meaning as in s. 718.103.
70 (b) "Association property" means property, real and
71 personal, which is owned or leased by, or is dedicated by a
72 recorded plat to, an association for the use and benefit of its
73 members and is located in the service area.
74 (c) "Board of administration" has the same meaning as in
75 s. 718.103.
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76 (d) "Condominium" has the same meaning as in s. 718.103.
77 (e) "Condominium property" means the lands, leaseholds,
78 and personal property that are subjected to condominium
79 ownership, whether or not contiguous, and all improvements
80 thereon and all easements and rights appurtenant thereto
81 intended for use in connection with the condominium and are
82 located in the service area.
83 (f) "Department" means the Department of Financial
84 Services.
85 (g) "Property" means association property and condominium
86 property, as applicable, located in the service area.
87 (h) "Rebuild" means property under construction to replace
88 a structure that was destroyed or significantly damaged by a
89 hurricane and deemed unlivable by a regulatory authority.
90 (i) "Service area" means the area of the state which is 15
91 miles inward of a coastline, as that term is defined in s.
92 376.031.
93 (j) "Unit" has the same meaning as in s. 718.103.
94 (k) "Unit owner" has the same meaning as in s. 718.103.
95 (2) PARTICIPATION.—
96 (a) In order to apply for an inspection under subsection
97 (4) or a grant under subsection (5) for association property or
98 condominium property, an association must receive approval by a
99 majority vote of the board of administration or a majority vote
100 of the total voting interests of the association to participate
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101 in the pilot program.
102 (b) In order to apply for a grant under subsection (5)
103 which improves one or more units within a condominium, an
104 association must receive both of the following:
105 1. Approval by a majority vote of the board of
106 administration or a majority vote of the total voting interests
107 of the association to participate in a mitigation inspection.
108 2. A unanimous vote of all unit owners within the
109 structure or building that is the subject of the mitigation
110 grant.
111 (c) A unit owner may participate in the pilot program
112 through a mitigation grant awarded to the association but may
113 not participate individually in the pilot program.
114 (d) The votes required under this subsection may take
115 place at the annual budget meeting of the association or at a
116 unit owner meeting called for the purpose of taking such vote.
117 Before a vote of the unit owners may be taken, the association
118 must provide to the unit owners a clear disclosure of the pilot
119 program on a form created by the department. The president and
120 the treasurer of the board of administration must sign the
121 disclosure form indicating that a copy of the form was provided
122 to each unit owner of the association. The signed disclosure
123 form and the minutes from the meeting at which the unit owners
124 voted to participate in the pilot program must be maintained as
125 part of the official records of the association. Within 14 days
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126 after an affirmative vote to participate in the pilot program,
127 the association must provide written notice in the same manner
128 as required under s. 718.112(2)(d) to all unit owners of the
129 decision to participate in the pilot program.
130 (3) HURRICANE MITIGATION INSPECTORS.—
131 (a) Licensed inspectors are to provide inspections of the
132 property to determine the mitigation measures that are needed,
133 the insurance premium discounts that may be available to the
134 association, and the improvements to existing properties of the
135 association that are needed to reduce a property's vulnerability
136 to hurricane damage.
137 (b) The department shall contract with wind certification
138 entities to provide hurricane mitigation inspections. To qualify
139 for selection by the department as a wind certification entity
140 to provide hurricane mitigation inspections, the entity must, at
141 a minimum, meet all of the following requirements:
142 1. Use hurricane mitigation inspectors who are licensed or
143 certified as:
144 a. A building inspector under s. 468.607;
145 b. A general, building, or residential contractor under s.
146 489.111;
147 c. A professional engineer under s. 471.015;
148 d. A professional architect under s. 481.213; or
149 e. A home inspector under s. 468.8314 who has completed at
150 least 3 hours of hurricane mitigation training approved by the
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151 Construction Industry Licensing Board, which must include
152 hurricane mitigation techniques, compliance with the uniform
153 mitigation verification form, and completion of a proficiency
154 exam.
155 2. Use hurricane mitigation inspectors who have undergone
156 drug testing and a background screening. The depart ment may
157 conduct criminal record checks of inspectors used by wind
158 certification entities. Inspectors must submit a full set of
159 fingerprints to the department or to a vendor, an entity, or an
160 agency authorized under s. 943.053(13). The department, vendor,
161 entity, or agency shall forward the fingerprints to the
162 Department of Law Enforcement for state processing and the
163 Department of Law Enforcement shall forward the fingerprints to
164 the Federal Bureau of Investigation for national processing.
165 Fees for state and federal fingerprint processing shall be borne
166 by the applicant. The state cost for fingerprint processing
167 shall be as provided in s. 943.053(3)(e). The results must be
168 returned to the department for screening. The fingerprints must
169 be taken by a law enforcement agency, designated examination
170 center, or other department-approved entity.
171 3. Provide a quality assurance program including a
172 reinspection component.
173 (4) HURRICANE MITIGATION INSPECTIONS.—
174 (a) The inspections provided to an association under this
175 section must, at a minimum, include all of the following:
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176 1. An inspection of the property, and a report that
177 summarizes the results and identifies recommended improvements
178 the association may take to mitigate hurricane damage.
179 2. A range of cost estimates regarding the recommended
180 mitigation improvements.
181 3. Information regarding estimated insurance premium
182 discounts, correlated to the current mitigation features and the
183 recommended mitigation improvements identified by the
184 inspection.
185 (b) An application for an inspection must contain a signed
186 or electronically verified statement made under penalty of
187 perjury by the president of the board of administration that the
188 association has submitted only a single application for each
189 property that the association operates or maintains.
190 (c) An association may apply for and receive an inspection
191 without also applying for a grant under subsection (5).
192 (5) MITIGATION GRANTS.—Financial grants may be used to
193 encourage associations to retrofit the property the association
194 operates and maintains in order to make such property less
195 vulnerable to hurricane damage.
196 (a) An application for a mitigation grant must:
197 1. Contain a signed or electronically verified statement
198 made under penalty of perjury by the president of the board of
199 administration that the association has submitted only a single
200 application for each property that the association operates or
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201 maintains.
202 2. Include a notarized statement from the president of the
203 board of administration containing the name and license number
204 of the contractor the association intends to use for the
205 mitigation project.
206 3. Include a notarized statement from the president of the
207 board of administration which commits to the department that the
208 association will complete the mitigation improvements. If the
209 grant will be used to improve units, the application must also
210 include an acknowledged statement from each unit owner who is
211 required to provide approval for a grant under paragraph (2)(b).
212 (b) An association may select its own contractor for the
213 mitigation project as long as such contractor meets all
214 qualification, certification, or licensing requirements in
215 general law. A mitigation project must be performed by a
216 properly licensed contractor who has secured all required local
217 permits necessary for the project. The department must
218 electronically verify that the contractor's state license number
219 is accurate and up to date before approving a grant application.
220 (c) An association awarded a grant must complete the
221 entire mitigation project in order to receive the final grant
222 award and must agree to make the property available for a final
223 inspection once the mitigation project is finished to ensure the
224 mitigation improvements are completed in a matter consistent
225 with the intent of the pilot program and meet or exceed the
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226 applicable Florida Building Code requirements. Construction must
227 be completed and the association must submit a request to the
228 department for a final inspection, or request an extension of
229 time, within 1 year after receiving grant approval. If the
230 association fails to comply with this paragraph, the application
231 is deemed abandoned and the grant money reverts back to the
232 department.
233 (d) Grant projects shall be funded as follows:
234 1. All grants must be matched on the basis of $1 provided
235 by the association for $2 provided by the state.
236 2. For roof-related projects, the grant contribution is
237 $11 per square foot multiplied by the square footage of the
238 replacement roof, not to exceed $1,000 per unit, with a maximum
239 grant award of 50 percent of the cost of the project.
240 3. For opening protection-related projects, the grant
241 contribution is a maximum of $750 per replacement window or
242 door, not to exceed $1,500 per unit, with a maximum grant award
243 of 50 percent of the cost of the project.
244 4. An association may receive grant funds for both roof -
245 related and opening protection-related projects, but the maximum
246 total grant award may not exceed $175,000 per association.
247 5. The department may not accept grant applications or
248 maintain a waiting list for grants after the cumulative value of
249 the grants awarded have fully obligated the appropriation,
250 unless otherwise expressly authorized by the Legislature.
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251 (e) When recommended by a hurricane mitigation inspection
252 report, grants for eligible associations may be used for the
253 following improvements:
254 1. Opening protection.
255 2. Exterior doors, including garage doors.
256 3. Reinforcing roof-to-wall connections.
257 4. Improving the strength of roof-deck attachments.
258 5. Secondary water barrier for roof.
259 (f) Grants may be used for a previously inspected existing
260 structure on the property or for a rebuild.
261 (g)1. If improvements to protect the property which
262 complied with the current applicable building code at t he time
263 have been previously installed, the association must use a
264 mitigation grant to install improvements that do both of the
265 following:
266 a. Comply with or exceed the applicable building code in
267 effect at the time the association applied for the grant.
268 b. Provide more hurricane protection than the improvements
269 that the association previously installed.
270 2. The association may not use a mitigation grant to:
271 a. Install the same type of improvements that were
272 previously installed; or
273 b. Pay a deductible for a pending insurance claim for
274 damage that is part of the property for which grant funds are
275 being received.
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276 (h) The department shall develop a process that ensures
277 the most efficient means to collect and verify grant
278 applications to determine eligibility and may direct hurricane
279 mitigation inspectors to collect and verify grant application
280 information or use the Internet or other electronic means to
281 collect information and determine eligibility.
282 (6) CONTRACT MANAGEMENT.—
283 (a) The department may contract with third parties for
284 grants management, inspection services, contractor services,
285 information technology, educational outreach, and auditing
286 services. Such contracts are considered direct costs of the
287 pilot program and are not subject to administrative cost limits.
288 The department shall contract with providers that have a
289 demonstrated record of successful business operations in areas
290 directly related to the services to be provided and shall ensure
291 the highest accountability for use of state funds, consistent
292 with this section.
293 (b) The department shall implement a quality assurance and
294 reinspection program that determines whether initial inspections
295 and mitigation improvements are completed in a manner consistent
296 with the intent of the pilot program. The department may use a
297 valid random sampling in order to perform the quality assurance
298 portion of the pilot program.
299 (7) REPORTS.—By February 1 of each year, the department
300 shall submit a report to the President of the Senate and the
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F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
CS/CS/HB 1029 2024
301 Speaker of the House of Representatives on the activities of the
302 pilot program and the use of state funds. The report must
303 include all of the following information:
304 (a) The number of inspections requested.
305 (b) The number of inspections performed.
306 (c) The number of grant applications received.
307 (d) The number of grants approved and the monetary value
308 of each grant.
309 (e) The estimated average annual amount of insurance
310 premium discounts each association received and the total
311 estimated annual amount of insurance premium discounts received
312 by all associations participating in the pilot program.
313 (f) The estimated average annual amount of insurance
314 premium discounts each unit owner received as a result of the
315 improvements to the building or structure.
316 Section 2. This act shall take effect July 1, 2024.
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CODING: Words stricken are deletions; words underlined are additions.
hb1029-02-c2
COMMERCE COMMITTEE
CS/CS/HB 1029 by Lopez, V.; Hunschofsky
My Safe Florida Condominium Pilot Program
AMENDMENT SUMMARY
February 22, 2024
Amendment 1 by Rep. Lopez, V. (Line 87): The Amendment:
• changes the term secondary water barrier to secondary water resistance to conform with
proper roofing terminology.
• limits the My Safe Florida Condominium Pilot Program (Program) participants to those
condominiums that are three stories or less.
• removes the allowance for Program grant funds to be used for the complete rebuild of a
condominium.
• provides the Department of Financial Services (DFS) with the authority to ask Program
applicants for additional information related to inspection and grant applications.
• Provides DFS with rulemaking authority for the Program.
• makes technical changes to assist the DFS with administering the Program.
COMMITTEE/SUBCOMMITTEE AMENDMENT
Bill No. CS/CS/HB 1029 (2024)
Amendment No. 1
COMMITTEE/SUBCOMMITTEE ACTION
ADOPTED (Y/N)
ADOPTED AS AMENDED (Y/N)
ADOPTED W/O OBJECTION (Y/N)
FAILED TO ADOPT (Y/N)
WITHDRAWN (Y/N)
OTHER
1 Committee/Subcommittee hearing bill: Commerce Committee
2 Representative Lopez, V. offered the following:
3
4 Amendment
5 Remove lines 87-315 and insert:
6 (h) "Service area" means the area of the state which is 15
7 miles inward of a coastline, as that term is defined in s.
8 376.031.
9 (i) "Unit" has the same meaning as in s. 718.103.
10 (j) "Unit owner" has the same meaning as in s. 718.103.
11 (2) PARTICIPATION.—
12 (a) In order to apply for an inspection under subsection
13 (4) or a grant under subsection (5) for association property or
14 condominium property, an association must receive approval by a
15 majority vote of the board of administration or a majority vote
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COMMITTEE/SUBCOMMITTEE AMENDMENT
Bill No. CS/CS/HB 1029 (2024)
Amendment No. 1
16 of the total voting interests of the association to participate
17 in the pilot program.
18 (b) In order to apply for a grant under subsection (5)
19 which improves one or more units within a condominium, an
20 association must receive both of the following:
21 1. Approval by a majority vote of the board of
22 administration or a majority vote of the total voting interests
23 of the association to participate in a mitigation inspection.
24 2. A unanimous vote of all unit owners within the
25 structure or building that is the subject of the mitigation
26 grant.
27 (c) A unit owner may participate in the pilot program
28 through a mitigation grant awarded to the association but may
29 not participate individually in the pilot program.
30 (d) The votes required under this subsection may take
31 place at the annual budget meeting of the association or at a
32 unit owner meeting called for the purpose of taking such vote.
33 Before a vote of the unit owners may be taken, the association
34 must provide to the unit owners a clear disclosure of the pilot
35 program on a form created by the department. The president and
36 the treasurer of the board of administration must sign the
37 disclosure form indicating that a copy of the form was provided
38 to each unit owner of the association. The signed disclosure
39 form and the minutes from the meeting at which the unit owners
40 voted to participate in the pilot program must be maintained as
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COMMITTEE/SUBCOMMITTEE AMENDMENT
Bill No. CS/CS/HB 1029 (2024)
Amendment No. 1
41 part of the official records of the association. Within 14 days
42 after an affirmative vote to participate in the pilot program,
43 the association must provide written notice in the same manner
44 as required under s. 718.112(2)(d) to all unit owners of the
45 decision to participate in the pilot program.
46 (e) Only condominiums of three stories or less are
47 eligible to participate in the program.
48 (3) HURRICANE MITIGATION INSPECTORS.—
49 (a) Licensed inspectors are to provide inspections of the
50 property to determine the mitigation measures that are needed,
51 the insurance premium discounts that may be available to the
52 association, and the improvements to existing properties of the
53 association that are needed to reduce a property's vulnerability
54 to hurricane damage.
55 (b) The department shall contract with wind certification
56 entities to provide hurricane mitigation inspections. To qualify
57 for selection by the department as a wind certification entity
58 to provide hurricane mitigation inspections, the entity must, at
59 a minimum, meet all of the following requirements:
60 1. Use hurricane mitigation inspectors who are licensed or
61 certified as:
62 a. A building inspector under s. 468.607;
63 b. A general, building, or residential contractor under s.
64 489.111;
65 c. A professional engineer under s. 471.015;
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COMMITTEE/SUBCOMMITTEE AMENDMENT
Bill No. CS/CS/HB 1029 (2024)
Amendment No. 1
66 d. A professional architect under s. 481.213; or
67 e. A home inspector under s. 468.8314 who has completed at
68 least 3 hours of hurricane mitigation training approved by the
69 Construction Industry Licensing Board, which must include
70 hurricane mitigation techniques, compliance with the uniform
71 mitigation verification form, and completion of a proficiency
72 exam.
73 2. Use hurricane mitigation inspectors who have undergone
74 drug testing and a background screening. The department may
75 conduct criminal record checks of inspectors used by wind
76 certification entities. Inspectors must submit a full set of
77 fingerprints to the department or to a vendor, an entity, or an
78 agency authorized under s. 943.053(13). The department, vendor,
79 entity, or agency shall forward the fingerprints to the
80 Department of Law Enforcement for state processing and the
81 Department of Law Enforcement shall forward the fingerprints to
82 the Federal Bureau of Investigation for national processing.
83 Fees for state and federal fingerprint processing shall be borne
84 by the inspector. The state cost for fingerprint processing
85 shall be as provided in s. 943.053(3)(e). The results must be
86 returned to the department for screening. The fingerprints must
87 be taken by a law enforcement agency, designated examination
88 center, or other department-approved entity.
89 3. Provide a quality assurance program including a
90 reinspection component.
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COMMITTEE/SUBCOMMITTEE AMENDMENT
Bill No. CS/CS/HB 1029 (2024)
Amendment No. 1
91 (4) HURRICANE MITIGATION INSPECTIONS.—
92 (a) The inspections provided to an association under this
93 section must, at a minimum, include all of the following:
94 1. An inspection of the property, and a report that
95 summarizes the results and identifies recommended improvements
96 the association may take to mitigate hurricane damage.
97 2. A range of cost estimates regarding the recommended
98 mitigation improvements.
99 3. Information regarding estimated insurance premium
100 discounts, correlated to the current mitigation features and the
101 recommended mitigation improvements identified by the
102 inspection.
103 (b) An application for an inspection must contain a signed
104 or electronically verified statement made under penalty of
105 perjury by the president of the board of administration that the
106 association has submitted only a single application for each
107 property that the association operates or maintains.
108 (c) An association may apply for and receive an inspection
109 without also applying for a grant under subsection (5).
110 (5) MITIGATION GRANTS.—Financial grants may be used by
111 associations to make improvements recommended by an inspection
112 which increases the condominium's resistance to hurricane
113 damage.
114 (a) An application for a mitigation grant must:
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COMMITTEE/SUBCOMMITTEE AMENDMENT
Bill No. CS/CS/HB 1029 (2024)
Amendment No. 1
115 1. Contain a signed or electronically verified statement
116 made under penalty of perjury by the president of the board of
117 administration that the association has submitted only a single
118 application for each property that the association operates or
119 maintains.
120 2. Include a notarized statement from the president of the
121 board of administration containing the name and license number
122 of each contractor the association intends to use for the
123 mitigation project.
124 3. Include a notarized statement from the president of the
125 board of administration which commits to the department that the
126 association will complete the mitigation improvements. If the
127 grant will be used to improve units, the application must also
128 include an acknowledged statement from each unit owner who is
129 required to provide approval for a grant under paragraph (2)(b).
130 (b) An association may select its own contractors for the
131 mitigation project as long as each contractor meets all
132 qualification, certification, or licensing requirements in
133 general law. A mitigation project must be performed by a
134 properly licensed contractor who has secured all required local
135 permits necessary for the project. The department must
136 electronically verify that the contractor's state license number
137 is accurate and up to date before approving a grant application.
138 (c) An association awarded a grant must complete the
139 entire mitigation project in order to receive the final grant
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COMMITTEE/SUBCOMMITTEE AMENDMENT
Bill No. CS/CS/HB 1029 (2024)
Amendment No. 1
140 award and must agree to make the property available for a final
141 inspection once the mitigation project is finished to ensure the
142 mitigation improvements are completed in a matter consistent
143 with the intent of the pilot program and meet or exceed the
144 applicable Florida Building Code requirements. Construction must
145 be completed and the association must submit a request to the
146 department for a final inspection, or request an extension of
147 time, within 1 year after receiving grant approval. If the
148 association fails to comply with this paragraph, the application
149 is deemed abandoned and the grant money reverts back to the
150 department.
151 (d) Grant projects shall be funded as follows:
152 1. All grants must be matched on the basis of $1 provided
153 by the association for $2 provided by the state.
154 2. For roof-related projects, the grant contribution is
155 $11 per square foot multiplied by the square footage of the
156 replacement roof, not to exceed $1,000 per unit, with a maximum
157 grant award of 50 percent of the cost of the project.
158 3. For opening protection-related projects, the grant
159 contribution is a maximum of $750 per replacement window or
160 door, not to exceed $1,500 per unit, with a maximum grant award
161 of 50 percent of the cost of the project.
162 4. An association may receive grant funds for both roof -
163 related and opening protection-related projects, but the maximum
164 total grant award may not exceed $175,000 per association.
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COMMITTEE/SUBCOMMITTEE AMENDMENT
Bill No. CS/CS/HB 1029 (2024)
Amendment No. 1
165 5. The department may not accept grant applications or
166 maintain a waiting list for grants after the cumulative value of
167 the grants awarded have fully obligated the appropriation,
168 unless otherwise expressly authorized by the Legislature.
169 (e) When recommended by a hurricane mitigation inspection
170 report, grants for eligible associations may be used for the
171 following improvements:
172 1. Opening protection, including exterior doors, garage
173 doors, windows, and skylights.
174 2. Reinforcing roof-to-wall connections.
175 3. Improving the strength of roof-deck attachments.
176 4. Secondary water resistance for roof.
177 (f) Grants may be used for a previously inspected existing
178 structure on the property.
179 (g)1. If improvements to protect the property which
180 complied with the current applicable building code at the time
181 have been previously installed, the association must use a
182 mitigation grant to install improvements that do both of the
183 following:
184 a. Comply with or exceed the applicable building code in
185 effect at the time the association applied for the grant.
186 b. Provide more hurricane protection than the improvements
187 that the association previously installed.
188 2. The association may not use a mitigation grant to:
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COMMITTEE/SUBCOMMITTEE AMENDMENT
Bill No. CS/CS/HB 1029 (2024)
Amendment No. 1
189 a. Install the same type of improvements that were
190 previously installed; or
191 b. Pay a deductible for a pending insurance claim for
192 damage that is part of the property for which grant funds are
193 being received.
194 (h) The department shall develop a process that ensures
195 the most efficient means to collect and verify inspection and
196 grant applications to determine eligibility. The department may
197 direct hurricane mitigation inspectors to collect and verify
198 inspection and grant application information or use the Internet
199 or other electronic means to collect information and determine
200 eligibility.
201 (6) CONTRACT MANAGEMENT.—
202 (a) The department may contract with third parties for
203 grants management, inspection services, contractor services,
204 information technology, educational outreach, and auditing
205 services. Such contracts are considered direct costs of the
206 pilot program and are not subject to administrative cost limits.
207 The department shall contract with providers that have a
208 demonstrated record of successful business operations in areas
209 directly related to the services to be provided and shall ensure
210 the highest accountability for use of state funds, consistent
211 with this section.
212 (b) The department shall implement a quality assurance and
213 reinspection program that determines whether initial inspections
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COMMITTEE/SUBCOMMITTEE AMENDMENT
Bill No. CS/CS/HB 1029 (2024)
Amendment No. 1
214 and mitigation improvements are completed in a manner consistent
215 with the intent of the pilot program. The department may use a
216 valid random sampling in order to perform the quality assurance
217 portion of the pilot program.
218 (7) REPORTS.—By February 1 of each year, the department
219 shall submit a report to the President of the Senate and the
220 Speaker of the House of Representatives on the activities of the
221 pilot program and the use of state funds. The report must
222 include all of the following information:
223 (a) The number of inspections requested.
224 (b) The number of inspections performed.
225 (c) The number of grant applications received.
226 (d) The number of grants approved and the monetary value
227 of each grant.
228 (e) The estimated average annual amount of insurance
229 premium discounts each association received and the total
230 estimated annual amount of insurance premium discounts received
231 by all associations participating in the pilot program.
232 (f) The estimated average annual amount of insurance
233 premium discounts each unit owner received as a result of the
234 improvements to the building or structure.
235 (8) REQUESTS FOR INFORMATION.—The department may request
236 that an applicant provide additional information. An application
237 is deemed withdrawn by the applicant if the department does not
238 receive a response to its request for additional information
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COMMITTEE/SUBCOMMITTEE AMENDMENT
Bill No. CS/CS/HB 1029 (2024)
Amendment No. 1
239 within 60 days after the notification of any apparent error or
240 omission in the application.
241 (9) RULES.—The department shall adopt rules pursuant to
242 ss. 120.536(1) and 120.54 to govern the program; implement the
243 provisions of this section; including rules governing hurricane
244 mitigation inspections and grants, mitigation contractors, and
245 training of inspectors and contractors; and carry out the duties
246 of the department under this section.
247
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CS/HB 1099
HOUSE OF REPRESENTATIVES STAFF ANALYSIS
BILL #: CS/HB 1099 Food Delivery Platforms
SPONSOR(S): Regulatory Reform & Economic Development Subcommittee, Melo and others
TIED BILLS: IDEN./SIM. BILLS: CS/SB 676
REFERENCE ACTION ANALYST STAFF DIRECTOR or
BUDGET/POLICY CHIEF
1) Regulatory Reform & Economic Development 12 Y, 0 N, As CS Fletcher Anstead
Subcommittee
2) Commerce Committee Fletcher Hamon
SUMMARY ANALYSIS
The Division of Hotels and Restaurants (Division), housed within the Department of Business and Professional
Regulation, is responsible for enforcing laws relating to the inspection and regulation of public food service
establishments for the purpose of protecting the public health, safety and welfare.
Florida statute defines “public food service establishment” as any building, vehicle, place, or structure, or any
room or division in a building, vehicle, place, or structure where food is prepared, served, or sold for immediate
consumption on or in the vicinity of the premises; called for or taken out by customers; or prepared prior to
being delivered to another location for consumption, subject to certain exceptions. The regulation of public food
service establishments in Florida is preempted to the state.
Third-party food delivery platforms are third-party apps that consumers can use to order delivery from public
food service establishments for a fee. Once an order is placed, the food delivery platform sends an individual
to pick up the food from the food establishment and deliver it to the consumer. These types of platforms are
becoming increasingly popular, but are not currently regulated by the state.
The bill:
Creates definitions for the terms "food delivery platform" and “food service establishment" for purposes
of the bill’s provisions;
Requires a food delivery platform to itemize and clearly disclose the cost breakdown of each
transaction to a consumer, including, but not limited to, certain specified information;
Requires a food delivery platform that does not have a relationship with a food service establishment to
provide notice to the consumer that the food delivery platform does not have any such relationship;
Authorizes the Division to:
o Issue a notice to cease and desist to a food delivery platform for violations,
o Enforce a cease and desist notice or issue an administrative fine if the food delivery platform
does not cure a violation within 7 days, and
o Receive and investigate complaints of a food delivery platform’s violation;
Expressly preempts regulation of food delivery platforms to the state; and
Provides rule-making authority to the Division.
The bill has no effect on local or state government revenues or expenses. The bill has an indeterminate
positive and negative impact on the private sector.
The bill shall become effective upon becoming a law.
This docum ent does not reflect the intent or official position of the bill sponsor or House of Representatives .
STORAGE NAME: h1099a.COM
DATE: 2/20/2024
FULL ANALYSIS
I. SUBSTANTIVE ANALYSIS
A. EFFECT OF PROPOSED CHANGES:
Background
Division of Hotels and Restaurants
The Division of Hotels and Restaurants (Division) is a division of the Department of Business
Regulation.1 The Division is responsible for enforcing laws relating to the inspection and regulation of
public food service establishments for the purpose of protecting the public health, safety and welfare. 2
Public Food Service Establishments
Florida statute3 defines “public food service establishment” as any building, vehicle, place, or structure,
or any room or division in a building, vehicle, place, or structure where food is prepared, served, or sold
for immediate consumption on or in the vicinity of the premises; called for or taken out by customers; or
prepared prior to being delivered to another location for consumption.
There are several exclusions from the definition of the term, including:
Any place maintained and operated by a public or private school, college, or university for the
use of students and faculty, or temporarily to serve events such as fairs, carnivals, and athletic
contests;
Any eating place maintained and operated by a church or religious, nonprofit fraternal, or
nonprofit civic organization for the use of members and associates or temporarily to serve
events such as fairs, carnivals, or athletic contests;
Any eating place located on an airplane, train, bus, or watercraft that is a common carrier;
Any eating place maintained by a facility certified or licensed and regulated by the Agency for
Health Care Administration or the Department of Children and Families;
Any place of business issued a permit or inspected by the Department of Agriculture and
Consumer Services;
Any vending machine that dispenses any food or beverage other than potentially hazardous
food;
Any place of business serving only ice, beverages, popcorn, and prepackaged items; and
Any research and development test kitchen limited to use by employees and not open to the
general public.4
Under Florida law, the regulation of public food service establishments is preempted to the state. 5
Off-Premises Options for Public Food Service Establishments
As a result of the loss of business that occurred during the coronavirus pandemic, many public food
service establishments added off-premises options for serving food.6 According to the National
Restaurant Association, the most common off-premises addition was curbside takeout by 67 percent of
operators nationwide.7 An additional 17 percent added in-house delivery options, and 27 percent added
1 Office of Program Policy Analysis and Government Accountability, Department of Business and Professional Regulation:
Hotel and Restaurant Regulation, https://oppaga.fl.gov/ProgramSummary/ProgramDetail?programNumber=4016 (last
visited Jan. 31, 2024).
2 S. 509.032(1), F.S.
3 S. 509.013(5)(a), F.S.
4 S. 509.013(5)(b), F.S.
5 S. 509.032(7), F.S.
6 National Restaurant Association, Consumers respond to new off-premises options at restaurants,
https://restaurant.org/education-and-resources/resource-library/consumers-respond-to-new-off-premises-options -at-
restaurants/ (last visited Jan. 31, 2024).
7 Id.
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food delivery by third-party food delivery platforms,8 which are third-party apps that consumers can use
to order delivery from public food service establishments for a fee. 9 Once an order is placed, the food
delivery platform sends an individual to pick up the food from the food establishment and deliver it to
the consumer.10
Regulation of Food Delivery Platforms
Food delivery platforms are not currently regulated by the State of Florida. However, the United States
Food and Drug Administration (FDA), in coordination with the U.S. Department of Agriculture and the
Centers for Disease Control and Prevention, have developed best practices recommendations for the
safe delivery of food, including for when ordering food from online platforms, produce and meal-kit
subscription services, ghost kitchens (which only prepare and fulfill orders for delivery, without a
physical storefront), and third-party delivery services and programs.11
A proposed ordinance in Miami-Dade County would regulate food delivery platforms,12 seemingly the
first local ordinance of its kind in the United States.13 The ordinance would:
Require the food delivery service to itemize and clearly disclose the cost breakdown of each
transaction;
Permit public food service establishments to access the information about the customers who
place orders for their food through a third-party food delivery application, including the
consumer’s name and address; and
Prohibit a food delivery platform from unreasonably restricting a public food service
establishment from marketing to or contacting a customer under certain circumstances.
The Miami-Dade Board of County Commissioners has deferred action on this proposed ordinance. 14
Effect of the Bill
The bill creates definitions for the following terms:
"Food delivery platform" means a business that acts as a third-party intermediary by taking and
arranging for the delivery or pickup of orders from multiple food service establishments for the
consumer. The term does not include:
o Delivery or pickup orders placed directly with, and fulfilled by, a food service
establishment.
o Websites, mobile applications, or other electronic services that do not post food service
establishment menus, logos, or pricing information on their platforms.
"Food service establishment" has the same meaning as the term "public food service
establishment" as currently defined by Florida statute.
The bill requires a food delivery platform to itemize and clearly disclose the cost breakdown of each
transaction to a consumer, including, but not limited to:
8 Id.
9 Hsu Kuan Liu, A Study on Consumers’ Perception of Food Delivery Platforms (July 22, 2023), Qeios,
https://www.qeios.com/read/FFSG78#:~:text=Food%20delivery%20plat forms%20primarily%20allow,the%20meals%20to
%20the%20consumers. (last visited Jan. 31, 2024).
10 Id.
11 U.S. Food and Drug Administration, FDA Highlights Best Practices on Food Safety for Online Delivery Services (Dec. 9,
2022), https://www.fda.gov/food/cfsan-constituent -updates/fda-highlights-best-practices-food-s afety-online-delivery-
services (last visited Feb. 2, 2024).
12 See Memorandum to Honorable Chairman Oliver G. Gilbert, III and Members, Board of County Commissioners (Sep.
11, 2023), https://www.miamidade.gov/govaction/legistarfiles/Matters/Y2023/231055.pdf (last visited Feb. 2, 2024).
13 Jesse Scheckner, Miami-Dade sets table for food delivery app regulations amid privacy concerns (Aug. 29, 2023),
https://floridapolitics.com/archives/631690-miami-dade-sets-table-for-food-delivery-app-regulations-amid-privacyconcerns/
(last visited Feb. 2, 2024).
14 See Miami-Dade Legislative Item File Number: 231055,
https://www.miamidade.gov/govaction/matter. asp?matter=231055& file=true& fileAnalysis=false&yearFolder=Y2023 (last
visited Feb. 2, 2024).
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The purchase price of the food and beverage, or any other item, and clearly indicate if such
prices exceed the food service establishment’s pricing.
Any commission, delivery fee, or promotional fee charged to the customer by the food delivery
platform.
Any tip or gratuity.
Any taxes due on the transaction.
If a food delivery platform does not have a relationship with a food service establishment, the bill
requires the food delivery platform to provide clear and conspicuous notice to the consumer that the
food delivery platform does not have any relationship with such food service establishment.
If the Division has reason to believe a food delivery platform has violated the provisions of the bill, or
any rules adopted pursuant to the bill, the following rules apply:
The Division may issue to the food delivery platform a notice to cease and desist from the
violation, but the issuance of a notice to cease and desist does not constitute agency action for
which a hearing under Florida law may be sought.
The Division must provide the food delivery platform 7 business days in which to cure the
violation before imposing a civil penalty or commencing any legal proceeding.
For the purpose of enforcing a cease and desist notice, the Division may file a proceeding in the
name of the state seeking the issuance of an injunction or a writ of mandamus against any
person who fails to comply with the notice.
If the Division is required to seek enforcement of the notice for a penalty, it is entitled to collect
attorney fees and costs, together with any cost of collection.
The bill allows the Division to impose a civil penalty on a food delivery platform in an amount not to
exceed $1,000 per offense for each violation of the bill’s provisions, provided such food delivery
platform is given 7 days to cure the violation. The division may regard as a separate offense each day
or portion of a day in which there has been a violation.
Additionally, the bill authorizes the Division to receive and investigate complaints that allege a food
delivery platform has violated the bill’s provisions.
The bill expressly preempts regulation of food delivery platforms to the state, and grants the Division
rule-making authority to administer the section of law proposed by the bill.
B. SECTION DIRECTORY:
Section 1. Creates s. 509.103, F.S., relating to food delivery platforms.
Section 2. Provides the bill will become effective upon becoming a law.
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:
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None.
2. Expenditures:
None.
C. DIRECT ECONOMIC IMPACT ON PRIVATE SECTOR:
The bill has a positive impact on the private sector to the extent that the bill creates a regulatory
framework for food delivery platforms operating in Florida, thus enhancing consumer protections for
individuals in the state that use such platforms.
The bill has an indeterminate negative impact on the private sector to the extent that food delivery
platforms will now have to comply with the bill’s provisions.
D. FISCAL COMMENTS:
None.
III. COMMENTS
A. CONSTITUTIONAL ISSUES:
1. Applicability of Municipality/County Mandates Provision:
Not applicable.
2. Other
None.
B. RULE-MAKING AUTHORITY:
The bill provides the Division with rule-making authority to administer the proposed s. 509.103, F.S.
C. DRAFTING ISSUES OR OTHER COMMENTS:
None.
IV. AMENDMENTS/COMMITTEE SUBSTITUTE CHANGES
On February 6, 2024, the Regulatory Reform and Economic Development Subcommittee adopted a
proposed committee substitute and reported the bill favorably as a committee substitute. The committee
substitute made the following changes:
Removed provisions relating to requiring:
o Express consent from a restaurant for the food delivery platform to deliver or pick up orders
for a consumer.
o Certain customer disclosures, communication, and mechanisms.
o The food delivery platform to remove the restaurant’s listing from the platform upon request
of the restaurant.
Allowed the Division to investigate complaints, adopt rules, issue cease and desist orders, and
collect civil penalties.
This analysis is drafted to the committee substitute as passed by the Regulatory Reform and Economic
Development Subcommittee.
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F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
CS/HB 1099 2024
1 A bill to be entitled
2 An act relating to food delivery platforms; creating
3 s. 509.103, F.S.; providing definitions; requiring
4 food delivery platforms to disclose certain
5 information and provide certain notice to the
6 consumer; authorizing the Division of Hotels and
7 Restaurants of the Department of Business and
8 Professional Regulation to issue to a food delivery
9 platform a notice to cease and desist for specified
10 violations; providing that such notice does not
11 constitute agency action; requiring the division to
12 provide a food delivery platform the ability to cure
13 any violation within a specified timeframe before
14 enforcing such notice or imposing a civil penalty;
15 authorizing the division to enforce such notice
16 through specified legal proceedings; authorizing the
17 division to collect attorney fees and costs under
18 certain circumstances; authorizing the division to
19 impose a specified civil penalty; providing
20 construction; authorizing the division to receive and
21 investigate complaints of specified violations;
22 preempting regulation of food service platforms to the
23 state; requiring the division to adopt rules;
24 providing an effective date.
25
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26 Be It Enacted by the Legislature of the State of Florida:
27
28 Section 1. Section 509.103, Florida Statutes, is created
29 to read:
30 509.103 Food delivery platforms.—
31 (1) As used in this section, the term:
32 (a)1. "Food delivery platform" means a business that acts
33 as a third-party intermediary by taking and arranging for the
34 delivery or pickup of orders from multiple food service
35 establishments for the consumer.
36 2. The term does not include:
37 a. Delivery or pickup orders placed directly with, and
38 fulfilled by, a food service establishment.
39 b. Websites, mobile applications, or other electronic
40 services that do not post food service establishment menus,
41 logos, or pricing information on their platforms.
42 (b) "Food service establishment" has the same meaning as
43 the term "public food service establishment" as defined in s.
44 509.013(5).
45 (2) A food delivery platform shall itemize and clearly
46 disclose the cost breakdown of each transaction to the consumer,
47 including, but not limited to, the following information:
48 (a) The purchase price of the food and beverage, or any
49 other item, and clearly indicate if such price exceeds the food
50 service establishment's pricing.
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51 (b) Any commission, delivery fee, or promotional fee
52 charged to the customer by the food delivery platform.
53 (c) Any tip or gratuity.
54 (d) Any taxes due on the transaction.
55 (3) If a food delivery platform does not have a
56 relationship with a food service establishment, the food
57 delivery platform must provide clear and conspicuous notice to
58 the consumer that the food delivery platform does not ha ve any
59 relationship with such food service establishment.
60 (4) If the division has reason to believe a food delivery
61 platform has violated this section or any rules adopted pursuant
62 to this section, the division may issue to the food delivery
63 platform a notice to cease and desist from the violation. The
64 issuance of a notice to cease and desist does not constitute
65 agency action for which a hearing under s. 120.569 or s. 120.57
66 may be sought. The division shall provide the food delivery
67 platform 7 business days in which to cure the violation before
68 imposing a civil penalty under subsection (5) or commencing any
69 legal proceeding under this subsection. For the purpose of
70 enforcing a cease and desist notice, the division may file a
71 proceeding in the name of the state seeking the issuance of an
72 injunction or a writ of mandamus against any person who fails to
73 comply with the notice. If the division is required to seek
74 enforcement of the notice for a penalty pursuant to s. 120.569,
75 it is entitled to collect attorney fees and costs, together with
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76 any cost of collection.
77 (5) The division may impose a civil penalty on a food
78 delivery platform in an amount not to exceed $1,000 per offense
79 for each violation of this section or of a division rule,
80 subject to subsection (4). For purposes of this subsection, the
81 division may regard as a separate offense each day or portion of
82 a day in which there has been a violation of this section or of
83 a division rule.
84 (6) The division may receive and investigate any complaint
85 which alleges that a food delivery platform has violated this
86 section or any rule adopted pursuant to this section.
87 (7) Regulation of food delivery platforms is expressly
88 preempted to the state.
89 (8) The division shall adopt rules to administer this
90 section.
91 Section 2. This act shall take effect upon becoming a law.
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CS/HB 1149
HOUSE OF REPRESENTATIVES STAFF ANALYSIS
BILL #: CS/HB 1149 Policy Cancellations and Nonrenewals by Property Insurers
SPONSOR(S): Insurance & Banking Subcommittee, Botana and others
TIED BILLS: IDEN./SIM. BILLS: CS/SB 1104
REFERENCE ACTION ANALYST STAFF DIRECTOR or
BUDGET/POLICY CHIEF
1) Insurance & Banking Subcommittee 15 Y, 0 N, As CS Fortenberry Lloyd
2) Commerce Committee Fortenberry Hamon
SUMMARY ANALYSIS
An authorized insurer may not cancel or nonrenew any personal residential or commercial residential property insurance
policy: for 90 days after the dwelling or residential property has been repaired, if the property has been damaged as a
result of a hurricane or wind loss; until the earlier of when the dwelling or residential property has been repaired or one
year after the final claim payment, if the property was damaged by a covered peril, but not a hurricane or wind loss.
However, an authorized insurer or agent may cancel or nonrenew a policy before the dwelling or residential property
has been repaired: upon 10 days’ notice (for nonpayment of premium); or upon 45 days’ notice (for: 1. a material
misstatement or fraud related to the claim, 2. if the insurer determines that the insured has unreasonably caused a delay
in the repair, or 3. if the insurer has paid policy limits).
If an insurer elects to nonrenew a policy covering a damaged property, the insurer must provide at least 90 days’ notice
that it intends to nonrenew the policy 90 days after the property has been repaired. A structure is considered repaired
when substantially completed and restored such that it is insurable by another authorized insurer writing policies in Florida.
Section 626.9201, F.S., governs a surplus lines insurer’s cancellation or nonrenewal of personal residential and
commercial residential property insurance policies. However, current law contains no specif ic language regarding
cancellation or nonrenewal of surplus lines policies issued on properties with unrepaired damage.
The bill changes when an authorized insurer may cancel or nonrenew personal residential or commercial residential
property insurance policies on properties with unrepaired damage. As a result, the standards for cancellation apply to
personal residential and commercial residential property insurance policies issued by both authorized insurers and
surplus lines insurers. An insurer may not cancel or nonrenew a personal residential or commercial residential property
policy covering a dwelling or residential property in Florida damaged by a covered peril until the earlier of: the completion
of repairs; or, the expiration of one subsequent renewal of the policy that was in force at the time of the loss.
“Damage” includes flood damage related to a hurricane if flood is a covered peril under the personal residential or
commercial residential property insurance, or under a separate flood insuranc e policy, in effect at the time of the loss for
which the damage remains unrepaired. Additionally, if flood is not a covered peril under the policy or under a separate
flood insurance policy, and the property has been damaged as a result of flood related t o a hurricane, an insurer may not
cancel or nonrenew the policy until the earlier of: the completion of repairs; or , the expiration of one subsequent renewal of
the policy that was in force at the time of the loss.
The bill specifies exceptions which will allow an insurer to cancel a policy when unrepaired damage remains. These
include failure to pay premium, a lack of insurable interest in the property, fraud, and failure to timely respond to written
inquiries by the insurer.
The bill has no impact on state or local revenues or expenditures. It may have indeterminate positive and negative
economic impacts on the private sector.
The bill is effective July 1, 2024.
This docum ent does not reflect the intent or official position of the bill sponsor or House of Representatives .
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DATE: 2/20/2024
FULL ANALYSIS
I. SUBSTANTIVE ANALYSIS
A. EFFECT OF PROPOSED CHANGES:
Background
In general, with respect to any personal residential or commercial residential property insurance policy
covering a dwelling or residential property in Florida, including but not limited to, any homeowner, mobile
home owner, farmowner, condominium association, condominium unit owner, apartment building, or other
policy covering a residential structure or its contents, an authorized insurer must give the first-named insured:
At least 45 days’ advance written notice of the renewal premium. 1
Written notice of nonrenewal, cancellation, or termination at least 120 days before the effective date of
the nonrenewal, cancellation, or termination. Such notice must contain the reason for the nonrenewal,
cancellation, or termination.2
However, an authorized insurer may not cancel or nonrenew any personal residential or commercial
residential property insurance policy:
For 90 days after the dwelling or residential property has been repaired, if the property has been
damaged as a result of a hurricane or wind loss that is the subject of a declaration of emergency and
the filing of an order by the Insurance Commissioner.3
Until the earlier of when the dwelling or residential property has been repaired or one year after the
insurer issues the final claim payment, if the property was damaged by a covered peril, but not a
hurricane or wind loss.4
Additionally, an authorized insurer or agent may cancel or nonrenew a policy before the dwelling or
residential property has been repaired:
Upon 10 days’ notice for nonpayment of premium; or
Upon 45 days’ notice for:
o A material misstatement or fraud related to the claim;
o If the insurer determines that the insured has unreasonably caused a delay in the repair; or
o If the insurer has paid policy limits. 5
If an insurer elects to nonrenew a policy covering a property that has been damaged, the insurer must
provide at least 90 days’ notice that the insurer intends to nonrenew the policy 90 days after the property has
been repaired.6 A structure is considered repaired when substantially completed and restored to the extent
that it is insurable by another authorized insurer writing policies in Florida. 7
Section 626.9201, F.S., governs the cancellation or nonrenewal of personal residential and commercial
residential property insurance policies issued by surplus lines insurers. Currently, a surplus lines insurer
issuing a policy for property insurance must give the first named insured at least 45 days’ advance written
notice as to why the policy is not to be renewed.8 A surplus lines insurer issuing a policy providing covering
property must give the named insured written notice of cancellation or termination, including the reasons for
the cancellation or termination, with certain exceptions. 9 However, current law contains no specific language
regarding cancellation or nonrenewal of surplus lines policies issued on properties with unrepaired damage.
1 S. 627.4133(2)(a), F.S.
2 S. 627.4133(2)(b), F.S.
3 S. 627.4133(2)(e)1.a., F.S.
4 S. 627.4133(2)(e)1.b., F.S.
5 S. 627.4133(2)(e)2., F.S.
6 S. 627.4133(2)(e)3., F.S.
7 S. 627.4133(2)(e)5., F.S.
8 S. 626.9201(1), F.S.
9 S. 626.9201(2), F.S
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Effect of the Bill
The bill changes when an authorized insurer may cancel or nonrenew personal residential or commercial
residential property insurance policies on properties with unrepaired damage. It eliminates the separate
timeframes for authorized insurers to cancel or nonrenew personal residential or commercial residential
policies following losses due to hurricane and wind and all other covered perils.
The bill also establishes standards for cancellation and nonrenewal of such policies issued by surplus lines
insurers.
As a result, the following standards for cancellation apply to personal residential and commercial residential
property insurance policies issued by both authorized insurers and surplus lines insurers. An insurer
may not cancel or nonrenew a personal residential or commercial residential property policy covering a
dwelling or residential property in Florida which has been damaged by a covered peril until the earlier of:
The completion of repairs; or
The expiration of one subsequent renewal of the policy that was in force at the time of the loss.
The bill states that the term “damage” includes flood damage related to a hurricane if flood is a covered peril
under the personal residential or commercial residential property insurance, or under a separate flood
insurance policy, in effect at the time of the loss for which the damage remains unrepaired.
Additionally, if flood is not a covered peril under the policy or under a separate flood insurance policy, and the
property has been damaged as a result of flood related to a hurricane, an insurer may not cancel or
nonrenew the policy until the earlier of:
The completion of repairs; or
The expiration of one subsequent renewal of the policy that was in force at the time of the loss.
An insurer or agent may cancel or nonrenew a personal residential and commercial residential policy prior to
the repair of the dwelling or residential property:
Upon 10 days’ notice:
o For nonpayment of premium; or
o If the named insured no longer has an insurable interest in the property; or
Upon 45 days’ notice:
o For a material misstatement or fraud related to the claim;
o If the insurer or its agent has made a reasonable written inquiry of the insured as to the status
of the repair and the insured fails to respond within 30 calendar days; or
o If the insurer has paid policy limits under a personal residential property insurance policy for a
loss to the insured dwelling that was damaged, or policy limits under a commercial residential
property insurance policy for a loss to each structure that was damaged.
If the insurer elects to nonrenew a policy after the expiration of one subsequent renewal of the policy in force
at the time of the loss, the insurer must comply with normal notice requirements in the statutes for authorized
and surplus lines insurers.10 Additionally, the provisions prohibiting cancellation or nonrenewal of policies on
properties with unrepaired damage do not prevent the insurers from canceling or nonrenewing the policies
after the repair is completed for the same reasons they would have canceled if the unrepaired damage did
not exist.
The bill provides that a structure is deemed to be repaired when substantially completed and restored to the
extent that it is insurable by:
Another authorized insurer writing policies in Florida if the structure is currently insured by an
authorized insurer; or
Another authorized or eligible surplus lines insurer writing policies in Florida if the structure is currently
insured by an eligible surplus lines insurer.
B. SECTION DIRECTORY:
10 Ss. 627.4133(2) and 626.9201, F.S., respectively.
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DATE: 2/20/2024
Section 1. Amends s. 626.9201, F.S., relating to notice of cancellation or nonrenewal.
Section 2. Amends s. 627.4133, F.S., relating to notice of cancellation, nonrenewal, or renewal premium.
Section 3. Provides an effective date of July 1, 2024.
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:
Personal residential and commercial residential policyholders may experience an indeterminate economic
impact as a result of the bill. Those policyholders who might have had to pay higher premiums for force-
placed insurance when their existing insurers canceled or nonrenewed them due to unrepaired damage will
remain insured by their current insurers for at least one subsequent renewal period. Admitted and surplus
lines insurers may experience a negative economic impact by being forced to renew policies on properties
with unrepaired damage that they otherwise would have nonrenewed or canceled.
D. FISCAL COMMENTS:
None.
III. COMMENTS
A. CONSTITUTIONAL ISSUES:
1. Applicability of Municipality/County Mandates Provision:
Not applicable. This bill does not appear to affect county or municipal governments.
2. Other:
None.
B. RULE-MAKING AUTHORITY:
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DATE: 2/20/2024
The Financial Services Commission is provided sufficient authority to, and may adopt rules necessary to,
implement the provisions within the bill.11
C. DRAFTING ISSUES OR OTHER COMMENTS:
None.
IV. AMENDMENTS/COMMITTEE SUBSTITUTE CHANGES
On February 6, 2024, the Insurance & Banking Subcommittee considered the bill as a Proposed Committee
Substitute (PCS), adopted one amendment to the PCS, and reported the bill favorably as a committee
substitute.
The PCS made the following changes from the bill as filed:
Establishes that the standards for cancellation apply to personal residential and commercial
residential property insurance policies issued by both authorized insurers and surplus lines
insurers such that an insurer may not cancel or nonrenew a personal residential or commercial
residential property policy covering a dwelling or residential property in Florida which has been
damaged by a covered peril until the earlier of:
o the completion of repairs; or
o the expiration of one subsequent renewal of the policy that was in force at the time of the loss.
Eliminates the section of the bill prohibiting cancellation or nonrenewal of a commercial property
insurance policy.
Eliminates the provision of the bill requiring policies that are extended or renewed to contain the same
policy terms as the policies being extended or renewed.
The amendment to the PCS corrected a cross-reference.
The analysis is drafted to the committee substitute as passed by the Insurance & Banking Subcommittee.
11 The Financial ServicesCommission, composed of the Governor, the Attorney General, the Chief Financial Officer, and the
Commissioner of Agriculture, serves as agency head of the Office of Insurance Regulation for the purposes of rulemaking.
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DATE: 2/20/2024
F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
CS/HB 1149 2024
1 A bill to be entitled
2 An act relating to policy cancellations and
3 nonrenewals by property insurers; amending s.
4 626.9201, F.S.; prohibiting eligible surplus lines
5 insurers from canceling and nonrenewing policies
6 covering dwellings and residential properties damaged
7 by hurricanes and wind losses within certain
8 timeframes; providing exceptions to prohibitions
9 against insurers' policy cancellations and nonrenewals
10 within certain timeframes; providing definitions;
11 authorizing the Financial Services Commission to adopt
12 rules and the Commissioner of Insurance Regulation to
13 issue orders; amending s. 627.4133, F.S.; prohibiting
14 insurers from canceling and nonrenewing policies
15 covering dwellings and residential properties damaged
16 by covered perils within certain timeframes; revising
17 exceptions to prohibitions against insurers' policy
18 cancellations and nonrenewals within certain
19 timeframes; revising conditions under which a
20 structure is deemed to be repaired; revising the
21 definition of the term "insurer" to include eligible
22 surplus lines insurers; defining the term "damage";
23 providing an effective date.
24
25 Be It Enacted by the Legislature of the State of Florida:
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26
27 Section 1. Subsection (2) of section 626.9201, Florida
28 Statutes, is amended to read:
29 626.9201 Notice of cancellation or nonrenewal.—
30 (2) An insurer issuing a policy providing coverage for
31 property, casualty, surety, or marine insurance must give the
32 named insured written notice of cancellation or termination
33 other than nonrenewal at least 45 days before the effective date
34 of the cancellation or termination, including in the written
35 notice the reasons for the cancellation or termination, except
36 that:
37 (a) If cancellation is for nonpayment of premium, at least
38 10 days' written notice of cancellation accompanied by the
39 reason for cancellation must be given. As used in this
40 paragraph, the term "nonpayment of premium" means the failure of
41 the named insured to discharge when due any of his or her
42 obligations in connection with the payment of premiums on a
43 policy or an installment of such a premium, whether the premium
44 or installment is payable directly to the insurer or its agent
45 or indirectly under any plan for financing premiums or extension
46 of credit or the failure of the named insured to maintain
47 membership in an organization if such membership is a condition
48 precedent to insurance coverage. The term also includes the
49 failure of a financial institution to honor the check of an
50 applicant for insurance which was delivered to a licensed agent
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51 for payment of a premium, even if the agent previously delivered
52 or transferred the premium to the insurer. If a correctly
53 dishonored check represents payment of the initial premium, the
54 contract and all contractual obligations are void ab initio
55 unless the nonpayment is cured within the earlier of 5 days
56 after actual notice by certified mail is received by the
57 applicant or 15 days after notice is sent to the applicant by
58 certified mail or registered mail, and, if the contract is void,
59 any premium received by the insurer from a third party shall be
60 refunded to that party in full; and
61 (b) If cancellation or termination occurs during the first
62 90 days during which the insurance is in force and if the
63 insurance is canceled or terminated for reasons other than
64 nonpayment, at least 20 days' written notice of cancellation or
65 termination accompanied by the reason for cancellation or
66 termination must be given, except if there has been a material
67 misstatement or misrepresentation or failure to comply with the
68 underwriting requirements established by the insurer; and.
69 (c)1. Notwithstanding subparagraph 2., an insurer may not
70 cancel or nonrenew a personal residential or commercial
71 residential property insurance policy covering a dwelling or
72 residential property located in this state which has been
73 damaged by a covered peril until the earlier of the completion
74 of repairs or the expiration of one subsequent renewal of the
75 policy that was in force at the time of the loss. If flood is
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76 not a covered peril under the personal residential or commercial
77 residential property insurance policy or under a separate flood
78 insurance policy and the property has been damaged as a result
79 of flood related to a hurricane, an insurer may not cancel or
80 nonrenew the personal residential or commercial residential
81 property insurance policy until the earlier of the completion of
82 repairs or the expiration of one subsequent renewal of the
83 policy that was in force at the time of the loss.
84 2. An insurer or agent may cancel or nonrenew such a
85 policy prior to the repair of the dwelling or residential
86 property:
87 a. Upon 10 days' notice:
88 (I) For nonpayment of premium; or
89 (II) If the named insured no longer has an insurable
90 interest in the property; or
91 b. Upon 45 days' notice:
92 (I) For a material misstatement or fraud related to the
93 claim;
94 (II) If the insurer or its agent has made a reasonable
95 written inquiry to the insured as to the status of the repair
96 and the insured has failed within 30 calendar days to provide
97 information that is responsive to the inquiry to the address or
98 e-mail account designated by the insurer or its agent; or
99 (III) If the insurer has paid policy limits under a
100 personal residential property insurance policy for a loss to the
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101 insured dwelling that was damaged, or policy limits under a
102 commercial residential property insurance policy for a loss to
103 each insured structure that was damaged.
104 3. If the insurer elects to nonrenew a policy after the
105 expiration of the time in subparagraph 1., the insurer must
106 provide notice in accordance with subsection (1).
107 4. This paragraph does not prevent the insurer from
108 canceling or nonrenewing the policy after the repair is
109 completed for the same reasons the insurer would otherwise have
110 canceled or nonrenewed the policy but for subparagraph 1.
111 5. For purposes of this paragraph:
112 a. A structure is deemed to be repaired when substantially
113 completed and restored to the extent that it is insurable by:
114 (I) Another authorized insurer writing policies in this
115 state if the structure is currently insured by an authorized
116 insurer; or
117 (II) Another authorized or eligible surplus lines insurer
118 writing policies in this state if the structure is currently
119 insured by an eligible surplus lines insurer.
120 b. The term "insurer" means an authorized insurer or an
121 eligible surplus lines insurer.
122 c. The term "damage" includes flood damage related to a
123 hurricane if flood is a covered peril under the personal
124 residential or commercial residential property insurance policy
125 or under a separate flood insurance policy.
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126 6. The commission may adopt rules, and the Commissioner of
127 Insurance Regulation may issue orders, necessary to implement
128 this paragraph.
129 Section 2. Paragraph (e) of subsection (2) of section
130 627.4133, Florida Statutes, is amended to read:
131 627.4133 Notice of cancellation, nonrenewal, or renewal
132 premium.—
133 (2) With respect to any personal lines or commercial
134 residential property insurance policy, including, but not
135 limited to, any homeowner, mobile home owner, farmowner,
136 condominium association, condominium unit owner, apartment
137 building, or other policy covering a residential structure or
138 its contents:
139 (e)1. Notwithstanding subparagraph 2., an insurer may not
140 cancel or nonrenew a personal residential or commercial
141 residential property insurance policy covering a dwelling or
142 residential property located in this state which has been
143 damaged by a covered peril until the earlier of the completion
144 of repairs or the expiration of one subsequent renewal of the
145 policy that was in force at the time of the loss. If flood is
146 not a covered peril under the personal residential or commercial
147 residential property insurance policy or under a separate flood
148 insurance policy and the property has been damaged as a result
149 of flood related to a hurricane, an insurer may not cancel or
150 nonrenew the personal residential or commercial residential
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151 property insurance policy until the earlier of the completion of
152 repairs or the expiration of one subsequent renewal of the
153 policy that was in force at the time of the loss. An authorized
154 insurer may not cancel or nonrenew a personal residential or
155 commercial residential property insurance policy covering a
156 dwelling or residential property located in this stat e:
157 a. For a period of 90 days after the dwelling or
158 residential property has been repaired, if such property has
159 been damaged as a result of a hurricane or wind loss that is the
160 subject of the declaration of emergency pursuant to s. 252.36
161 and the filing of an order by the Commissioner of Insurance
162 Regulation.
163 b. Until the earlier of when the dwelling or residential
164 property has been repaired or 1 year after the insurer issues
165 the final claim payment, if such property was damaged by any
166 covered peril and sub-subparagraph a. does not apply.
167 2. However, An insurer or agent may cancel or nonrenew
168 such a policy prior to the repair of the dwelling or residential
169 property:
170 a. Upon 10 days' notice:
171 (I) For nonpayment of premium; or
172 (II) If the named insured no longer has an insurable
173 interest in the property; or
174 b. Upon 45 days' notice:
175 (I) For a material misstatement or fraud related to the
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CS/HB 1149 2024
176 claim;
177 (II) If the insurer or its agent has made a reasonable
178 written inquiry to the insured as to the status of the repair
179 and the insured has failed within 30 calendar days to provide
180 information that is responsive to the inquiry to the address or
181 e-mail account designated by the insurer or its agent If the
182 insurer determines that the insured has unreasonabl y caused a
183 delay in the repair of the dwelling; or
184 (III) If the insurer has paid policy limits under a
185 personal residential property insurance policy for a loss to the
186 insured dwelling that was damaged, or policy limits under a
187 commercial residential property insurance policy for a loss to
188 each insured structure that was damaged.
189 3. If the insurer elects to nonrenew a policy after the
190 expiration of the time in subparagraph 1., the insurer must
191 provide notice in accordance with subsection (2) covering a
192 property that has been damaged, the insurer shall provide at
193 least 90 days' notice to the insured that the insurer intends to
194 nonrenew the policy 90 days after the dwelling or residential
195 property has been repaired.
196 4. Nothing in This paragraph does not shall prevent the
197 insurer from canceling or nonrenewing the policy after the
198 repair is completed 90 days after the repairs are complete for
199 the same reasons the insurer would otherwise have canceled or
200 nonrenewed the policy but for the limitations of subparagraph 1.
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F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
CS/HB 1149 2024
201 The Financial Services Commission may adopt rules, and the
202 Commissioner of Insurance Regulation may issue orders, necessary
203 to implement this paragraph.
204 5.4. This paragraph shall also apply to personal
205 residential and commercial residential policies covering
206 property that was damaged as the result of Hurricane Ian or
207 Hurricane Nicole.
208 6. 5. For purposes of this paragraph:
209 a. A structure is deemed to be repaired when substantially
210 completed and restored to the extent that it is insurable by:
211 (I) Another authorized insurer writing policies in this
212 state if the structure is currently insured by an authorized
213 insurer; or
214 (II) Another authorized or eligible surplus lines insurer
215 writing policies in this state if the structure is currently
216 insured by an eligible surplus lines insurer.
217 b. The term "insurer" means an authorized insurer or an
218 eligible surplus lines insurer.
219 c. Except for subparagraph 5., the term "damage" includes
220 flood damage related to a hurricane if flood is a covered pe ril
221 under the personal residential or commercial residential
222 property insurance policy or under a separate flood insurance
223 policy.
224 7. The commission may adopt rules, and the Commissioner of
225 Insurance Regulation may issue orders, necessary to implement
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F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
CS/HB 1149 2024
226 this paragraph.
227 Section 3. This act shall take effect July 1, 2024.
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COMMERCE COMMITTEE
CS/HB 1149 by Botana
Policy Cancellations and Nonrenewals by Property Insurers
AMENDMENT SUMMARY
February 22, 2024
Amendment 1 by Rep. Botana (Line 75): The amendment allows the Insurance Commissioner
discretion in the event of wide-spread significant flooding, caused by a hurricane or other natural
event, to issue an order preventing admitted and surplus lines insurers from canceling or
nonrenewing personal residential or commercial residential property insurance policies covering
dwellings or residential properties within certain zip codes for a specific period of time.
COMMITTEE/SUBCOMMITTEE AMENDMENT
Bill No. CS/HB 1149 (2024)
Amendment No. 1
COMMITTEE/SUBCOMMITTEE ACTION
ADOPTED (Y/N)
ADOPTED AS AMENDED (Y/N)
ADOPTED W/O OBJECTION (Y/N)
FAILED TO ADOPT (Y/N)
WITHDRAWN (Y/N)
OTHER
1 Committee/Subcommittee hearing bill: Commerce Committee
2 Representative Botana offered the following:
3
4 Amendment
5 Remove lines 75-223 and insert:
6 policy that was in force at the time of the loss.
7 2. An insurer or agent may cancel or nonrenew such a
8 policy prior to the repair of the dwelling or residential
9 property:
10 a. Upon 10 days' notice:
11 (I) For nonpayment of premium; or
12 (II) If the named insured no longer has an insurable
13 interest in the property; or
14 b. Upon 45 days' notice:
15 (I) For a material misstatement or fraud related to the
16 claim;
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COMMITTEE/SUBCOMMITTEE AMENDMENT
Bill No. CS/HB 1149 (2024)
Amendment No. 1
17 (II) If the insurer or its agent has made a reasonable
18 written inquiry to the insured as to the status of the repair
19 and the insured has failed within 30 calendar days to provide
20 information that is responsive to the inquiry to the address or
21 e-mail account designated by the insurer or its agent; or
22 (III) If the insurer has paid policy limits under a
23 personal residential property insurance policy for a loss to the
24 insured dwelling that was damaged, or policy limits under a
25 commercial residential property insurance policy for a loss to
26 each insured structure that was damaged.
27 3. If the insurer elects to nonrenew a policy afte r the
28 expiration of the time in subparagraph 1., the insurer must
29 provide notice in accordance with subsection (1).
30 4. This paragraph does not prevent the insurer from
31 canceling or nonrenewing the policy after the repair is
32 completed for the same reasons the insurer would otherwise have
33 canceled or nonrenewed the policy but for subparagraph 1.
34 5. For purposes of this paragraph:
35 a. A structure is deemed to be repaired when substantially
36 completed and restored to the extent that it is insurable by:
37 (I) Another authorized insurer writing policies in this
38 state if the structure is currently insured by an authorized
39 insurer; or
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COMMITTEE/SUBCOMMITTEE AMENDMENT
Bill No. CS/HB 1149 (2024)
Amendment No. 1
40 (II) Another authorized or eligible surplus lines insurer
41 writing policies in this state if the structure is currently
42 insured by an eligible surplus lines insurer.
43 b. The term "insurer" means an authorized insurer or an
44 eligible surplus lines insurer.
45 c. The term "damage" includes, but is not limited to,
46 flood damage related to a hurricane if flood is a covered peril
47 under the personal residential or commercial residential
48 property insurance policy.
49 6. The commission may adopt rules, and the Commissioner of
50 Insurance Regulation may issue orders, necessary to implement
51 this paragraph.
52 7. In the event of wide-spread significant flooding, as
53 determined by the Commissioner of Insurance Regulation, caused
54 by a hurricane or other natural event, the Commissioner of
55 Insurance Regulation may issue an order preventing insurers from
56 canceling or nonrenewing personal residential or co mmercial
57 residential property insurance policies covering dwellings or
58 residential properties located within zip codes, as determined
59 by the Commissioner of Insurance Regulation, directly affected
60 by such flooding. If a claim is made while such an order is in
61 effect, the insurer may not cancel or nonrenew personal
62 residential or commercial residential property insurance
63 policies covering dwellings or residential properties until the
64 earlier of the completion of repairs or the expiration of one
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COMMITTEE/SUBCOMMITTEE AMENDMENT
Bill No. CS/HB 1149 (2024)
Amendment No. 1
65 subsequent renewal of the policy that was in force at the time
66 of the loss, even if the personal residential or commercial
67 residential property insurance policies do not cover the peril
68 of flood. An order issued pursuant to this subparagraph may
69 remain in effect for an initial period of 90 days and may be
70 renewed for subsequent 90-day periods, not to exceed a total of
71 270 days. The subparagraph only applies to coverage periods and
72 does not alter coverage otherwise provided by any insurance
73 policy.
74 Section 2. Paragraph (e) of subsection (2) of section
75 627.4133, Florida Statutes, is amended to read:
76 627.4133 Notice of cancellation, nonrenewal, or renewal
77 premium.—
78 (2) With respect to any personal lines or commercial
79 residential property insurance policy, including, but not
80 limited to, any homeowner, mobile home owner, farmowner,
81 condominium association, condominium unit owner, apartment
82 building, or other policy covering a residential structure or
83 its contents:
84 (e)1. Notwithstanding subparagraph 2., an insurer may not
85 cancel or nonrenew a personal residential or commercial
86 residential property insurance policy covering a dwelling or
87 residential property located in this state which has been
88 damaged by a covered peril until the earlier of the completion
89 of repairs or the expiration of one subsequent renewal of the
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COMMITTEE/SUBCOMMITTEE AMENDMENT
Bill No. CS/HB 1149 (2024)
Amendment No. 1
90 policy that was in force at the time of the loss. An authorized
91 insurer may not cancel or nonrenew a personal residential or
92 commercial residential property insurance policy covering a
93 dwelling or residential property located in this state:
94 a. For a period of 90 days after the dwelling or
95 residential property has been repaired, if such property has
96 been damaged as a result of a hurricane or wind loss that is th e
97 subject of the declaration of emergency pursuant to s. 252.36
98 and the filing of an order by the Commissioner of Insurance
99 Regulation.
100 b. Until the earlier of when the dwelling or residential
101 property has been repaired or 1 year after the insurer issue s
102 the final claim payment, if such property was damaged by any
103 covered peril and sub-subparagraph a. does not apply.
104 2. However, An insurer or agent may cancel or nonrenew
105 such a policy prior to the repair of the dwelling or residential
106 property:
107 a. Upon 10 days' notice:
108 (I) For nonpayment of premium; or
109 (II) If the named insured no longer has an insurable
110 interest in the property; or
111 b. Upon 45 days' notice:
112 (I) For a material misstatement or fraud related to the
113 claim;
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COMMITTEE/SUBCOMMITTEE AMENDMENT
Bill No. CS/HB 1149 (2024)
Amendment No. 1
114 (II) If the insurer or its agent has made a reasonable
115 written inquiry to the insured as to the status of the repair
116 and the insured has failed within 30 calendar days to provide
117 information that is responsive to the inquiry to the address or
118 e-mail account designated by the insurer or its agent If the
119 insurer determines that the insured has unreasonably caused a
120 delay in the repair of the dwelling; or
121 (III) If the insurer has paid policy limits under a
122 personal residential property insurance policy for a loss to the
123 insured dwelling that was damaged, or policy limits under a
124 commercial residential property insurance policy for a loss to
125 each insured structure that was damaged.
126 3. If the insurer elects to nonrenew a policy after the
127 expiration of the time in subparagraph 1., the insurer must
128 provide notice in accordance with subsection (2) covering a
129 property that has been damaged, the insurer shall provide at
130 least 90 days' notice to the insured that the insurer intends to
131 nonrenew the policy 90 days after the dwelling or residential
132 property has been repaired.
133 4. Nothing in This paragraph does not shall prevent the
134 insurer from canceling or nonrenewing the policy after the
135 repair is completed 90 days after the repairs are complete for
136 the same reasons the insurer would otherwise have canceled or
137 nonrenewed the policy but for the limitations of subparagraph 1.
138 The Financial Services Commission may adopt rules, and the
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COMMITTEE/SUBCOMMITTEE AMENDMENT
Bill No. CS/HB 1149 (2024)
Amendment No. 1
139 Commissioner of Insurance Regulation may issue orders, necessary
140 to implement this paragraph.
141 5.4. This paragraph shall also apply to personal
142 residential and commercial residential policies covering
143 property that was damaged as the result of Hurricane Ian or
144 Hurricane Nicole.
145 6. 5. For purposes of this paragraph:
146 a. A structure is deemed to be repaired when substantially
147 completed and restored to the extent that it is insurable by :
148 (I) Another authorized insurer writing policies in this
149 state if the structure is currently insured by an authorized
150 insurer; or
151 (II) Another authorized or eligible surplus lines insurer
152 writing policies in this state if the structure is currently
153 insured by an eligible surplus lines insurer.
154 b. The term "insurer" means an authorized insurer or an
155 eligible surplus lines insurer.
156 c. Except for subparagraph 5., the term "damage" includes,
157 but is not limited to, flood damage related to a hurricane if
158 flood is a covered peril under the personal residential or
159 commercial residential property insurance policy.
160 7. In the event of wide-spread significant flooding, as
161 determined by the Commissioner of Insurance Regulation, caused
162 by a hurricane or other natural event, the Commissioner of
163 Insurance Regulation may issue an order preventing insurers from
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COMMITTEE/SUBCOMMITTEE AMENDMENT
Bill No. CS/HB 1149 (2024)
Amendment No. 1
164 canceling or nonrenewing personal residential or commercial
165 residential property insurance policies covering dwellings or
166 residential properties located within zip codes, as determined
167 by the Commissioner of Insurance Regulation, directly affected
168 by such flooding. If a claim is made while such an order is in
169 effect, the insurer may not cancel or nonrenew personal
170 residential or commercial residential property insurance
171 policies covering dwellings or residential properties until the
172 earlier of the completion of repairs or the expiration of one
173 subsequent renewal of the policy that was in force at the time
174 of the loss, even if the personal residential or commercial
175 residential property insurance policies do not cover the peril
176 of flood. An order issued pursuant to this subparagraph may
177 remain in effect for an initial period of 90 days and may be
178 renewed for subsequent 90-day periods, not to exceed a total of
179 270 days. The subparagraph only applies to coverage periods and
180 does not alter coverage otherwise provided by any insurance
181 policy.
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CS/HB 1189
HOUSE OF REPRESENTATIVES STAFF ANALYSIS
BILL #: CS/HB 1189 Corporate Actions
SPONSOR(S): Regulatory Reform & Economic Development Subcommittee, Abbott
TIED BILLS: IDEN./SIM. BILLS: CS/CS/SB 1198
REFERENCE ACTION ANALYST STAFF DIRECTOR or
BUDGET/POLICY CHIEF
1) Regulatory Reform & Economic Development 13 Y, 0 N, As CS Fletcher Anstead
Subcommittee
2) Judiciary Committee 21 Y, 0 N Mawn Kramer
3) Commerce Committee Fletcher Hamon
SUMMARY ANALYSIS
Corporations and other business entities that do business in Florida are generally governed by the
requirements in the Florida Business Corporation Act, a law that is modeled after the Model Business
Corporation Act promulgated by the American Bar Association in 1950, or by related provisions in Florida law.
The Department of State (DOS) is the state’s central location responsible for receiving and maintaining a
number of corporate records. Florida law requires certain documents to be filed with the Division of
Corporations (division) of the DOS in order for a business to be organized as a corporation, partnership, limited
liability company (LLC), or other business/commercial entity in Florida.
The bill provides a statutory ratification procedure for corporate actions that may not have been properly
authorized and for shares that may have been improperly issued. These improperly authorized corporate
actions, that would otherwise be proper, are called “defective corporate actions.”
The statutory ratification process provided by the bill is intended to supplement common law ratification.
Subsequent ratified defective corporate actions, under these proposed provisions, would remain subject to
equitable review. The ratification procedure is intended to be available only where there is objective evidence
that a corporate action was defectively implemented. The bill gives specified affected parties the ability to file
motions in the circuit court of the applicable county.
The bill also provides a statutory mechanism for a registered agent to resign from more than one business
entity at a time, if the specified entity has been dissolved for ten continuous years or longer, by filing a
consolidated resignation statement with DOS. This mechanism applies to the following business entity types:
Domestic and foreign LLCs;
Domestic corporations; and
Domestic corporations not for profit.
The bill keeps the fee to file the registered agent resignation the same for the above listed business entity
types, even if filing to resign from more than one entity at a time using the consolidated resignation statement.
The bill does not appear to have a fiscal impact on local government expenses and revenues. However, the bill
does appear to have an indeterminable negative fiscal impact on state government revenues and an
indeterminate positive impact on the private sector.
The bill provides an effective date of July 1, 2024.
This docum ent does not reflect the intent or official position of the bill sponsor or House of Representatives .
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FULL ANALYSIS
I. SUBSTANTIVE ANALYSIS
A. EFFECT OF PROPOSED CHANGES:
Background
Corporations and other business entities that do business within Florida are governed generally by the
requirements in the Florida Business Corporation Act, a law that is modeled after the Model Business
Corporation Act (MBCA) promulgated by the American Bar Association (ABA) in 1950, or by related
provisions in Florida law.1
Limited Liability Companies (Chapter 605)
A limited liability company (LLC) is a type of business entity recognized by and regulated under chapter
605, F.S., the Florida Revised Limited Liability Company Act. Benefits to forming a business as an LLC
include a flexible tax structure and a vertical liability shield, which limits the personal liability of the
LLC’s members and managers for company obligations. Currently, LLCs are the most popular business
entity in Florida, with over 2 million active LLCs as of 2023. 2
Corporations for Profit (Chapter 607)
A for profit corporation is a type of business entity recognized by and regulated under chapter 607, F.S.
In order for a for profit corporation to organize, the entity must file articles of incorporation with the
Department of State (DOS), which articles must include specifics such as a corporate name, address,
and number of shares, and, must designate a registered office and agent.3
Corporations Not for Profit (Chapter 617)
A corporation not for profit is a type of business entity recognized and regulated under chapter 617,
F.S., the Florida Not For Profit Corporation Act. The structure of corporations not for profit is similar to
that of for profit corporations, and the filing of articles of incorporation is required.
The Department of State
DOS is the state’s central location responsible for receiving and maintaining a number of corporate
records. Florida law requires certain documents to be filed with the Division of Corporations (division) of
the DOS in order for a business to be organized as a corporation, partnership, LLC, or other
business/commercial entity. Business entities can file these documents and check their status through
an internet portal that is maintained by the division.
FEES
In order to help maintain these records, the DOS is statutorily allowed to collect fees. Florida’s fee
requirements for business entities are some of the most competitive in the United States; where a
corporation in Delaware (the state with the most incorporations, because of their notoriously pro-
business laws) will pay no less than $175 and no more than $200,000 in annual fees, Florida only
requires an aggregate of $150 in fees per year.4
1 See generally Chapter 607, F.S.
2 Florida Department of State, Division of Corporations Yearly Statistics, https://dos.fl.gov/sunbiz/about-us/yearly-
statistics/ (last visited Feb. 14, 2024).
3 Section 607.0202, F.S.
4 U.S. Securities and Exchange Commission, Schedule 14-A, Saga Communications, Inc. Proxy Statement (Apr. 16,
2020), https://www.sec.gov/Archives/edgar/data/0000886136/000110465921050534/tm2111304-1_def14a.htm, (last
visited Feb. 14, 2024).
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In 2013, the Legislature passed a law to make fees more uniform across the various business law
chapters. The relevant fees, of which each respective business entity must be aware, are as follows:5
Corporation Fees
New Florida/Foreign Corporation
Filing Fees $35.00
Registered Agent Designation $35.00
Annual Reports
Annual Report of a For Profit Corporation $150.00
Annual Report of Not For Profit Corporation $61.25
Resignation of Agent
Resignation of Registered Agent of an Active Corporation $87.50
Resignation of Registered Agent of an Administratively $35.00
Dissolved/Voluntarily Dissolved/Withdrawn
Corporation/Inactive Corporation
Limited Liability Company Fees
New Florida/Foreign LLC
Filing Fee $100.00
Registered Agent Designation Fee $25.00
Annual Reports
Annual Report $138.75
Resignation of Agent
Resignation of Registered Agent for an active LLC $85.00
Resignation of Registered Agent for a dissolved/inactive $25.00
LLC
Defective Corporate Actions
Under the Florida Business Corporation Act, there are certain requirements that a corporation must
establish in order to be considered a valid and properly authorized corporation. For instance, a
corporation must file its articles of incorporation with the DOS to transact business in the state. If a
corporation does not file those articles of incorporation or does not include required information in the
articles of incorporation, it may be considered an invalid corporation.6
Additionally, a corporation could have filed all documents correctly, but made an error in the
appointment of their board of directors. Subsequent actions by the corporation, after that incorrect
appointment of the board of directors, may be considered invalid. Another potential scenario of a
defective corporate action may arise when a corporation issues shares but did not adhere to the correct
share issuing guidelines. Any subsequent action, after that incorrect share issuance, may be
considered invalid.
Being an invalid corporation can also be referred to as being a “defective corporation” or an
“unauthorized corporation.” However, because of their nature, corporations and their agents, whether
they be the incorporator, the board of directors, an officer, or the shareholders, can take corporate
actions even though the corporation is technically defective, unauthorized, or invalid.
When an unauthorized or defective corporation takes a corporate action, such as improperly issuing
shares, legal issues can arise. For example, a corporation that is trying to make a business deal with
another entity or raise capital usually has to provide certain corporate records for the other parties’ due
diligence, and discovering a defective corporate action can immediately halt a transaction or potential
transaction. This is problematic where a business deal has already been agreed upon prior to the
discovery of the defective corporate action.
5 The Florida Department of State, Division of Corporations, Fees, https://dos.fl.gov/sunbiz/forms/fees/, (last visited Feb.
14, 2024).
6 Section 607.0120(1), F.S.
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Currently, disputed acts or defective share issuances that are carried out by a corporation are governed
by common law in the court system.7 These disputes can cost business entities time and money to
resolve, in addition to the time and resources that have to be allocated by the state to the court system.
Amending Articles of Incorporation
The articles of incorporation govern a corporation. A corporation can amend or add as many articles of
incorporation as necessary.8 The amendment of an articles of incorporation must be adopted and
approved. The adopting and approving can be done several ways, including through the provided
method in the articles of incorporation, which method may be undertaken by shareholder action, or,
where such action is not required, by either the incorporators or board of directors.9
Such an amendment can be made with one single amendment form, for a fee of $35.00.10 This form,
called the articles of amendment form, must be signed and delivered to the DOS, among other specific
requirements laid out in statute.11
Active vs Dissolved Business Entities
The division annually assigns an accompanying status (that is, “active” or “inactive”) to a business
entity based on whether or not the business entity properly completed all of its filings and paid all
applicable fees. When a business entity pays their filing fees and files their initial required filings, (for an
LLC it is their articles of organization, and for a corporation it is their articles of incorporation) the
division will review the filings and, if everything is satisfactory, the business entity will be assigned an
“active” status.
After the initial filings, a business entity remains “active” if it files the statutorily-required annual report
and pays the associated fee. Typically, in the fall, the division will go through all of their filings and
determine if a business entity is up to date in all of their filings and fees. If the division does not have
the required information and associated fee on record, it will assign the business entity an “inactive”
status and the business entity will be administratively dissolved or it authority to operate will be
administratively revoked.12
A business entity can determine its status by logging in to the online portal operated by the DOS, or it
can file and pay a fee to have the DOS send them a certificate of status. Such fee is $5 for an LLC and
$8.75 for a corporation.13
A business entity that is no longer “active” may file a reinstatement application, accompanied by the
associated fee, to reactivate their business status and become an “active” business entity again.
Registered Agents
Generally, Florida law requires a business entity to designate a registered agent.14 A registered agent
must be an individual who resides in Florida and whose business address is identical to the address of
the registered office.15 The registered agent must also be available at that Florida address during
normal business hours and promptly forward any significant legal or state documents to the business.
7 Florida Bar Business Law Section, Chapter 607 White Paper: Summary of Ratification of Defective Corporate Actions
and Resignation of Registered Agent Proposed Legislation (2024).
8 Section 607.1001, F.S.
9 Section 607.1003(1-9), F.S., provides various methods for amending the articles of incorporation.
10 Florida Department of State, Division of Corporations, Articles of Amendment form,
https://form.sunbiz.org/pdf/cr2e011.pdf, (last visited on Feb. 14, 2024).
11 Section 607.1006, F.S.
12 Note that a general partnership is not required to file an annual report or pay an annual report fee.
13 For LLCs see section 605.0213(12), F.S., and for Corporations see section 607.0122(19), F.S.
14 S. 607.0501, F.S.
15 Id.
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Registered agents are required to serve as the contact for the business and receive service of process,
legal notifications, and other official state documents for the business.
The DOS is required to maintain an accurate record of each business’s registered agent and registered
office for service of process, and must promptly furnish any such information upon request and
payment of the required fee.16 An individual within the business may serve as the entity’s registered
agent. Additionally, a business entity with an active Florida filling or registration may serve as a
registered agent; however, an entity cannot serve as its own registered agent. Further, where a
business entity does not appoint and maintain a registered agent, the DOS may administratively
dissolve that business entity.17
In Florida, a registered agent is required for the following business entities:
LLCs;
Corporation/Foreign Corporation (for profit);
Corporation/Foreign Corporation (not for profit);
Limited Partnerships (domestic and foreign); and
Limited Liability Partnerships (domestic and foreign).18
In order for a registered agent to resign as the registered agent of the business entity, the registered
agent must complete a specific form, accompanied by the payment of the required fee, and mail it in to
the division. Currently, a registered agent serving as such for more than one business entity who
wishes to resign from all such positions must pay a separate fee to resign as the registered agent of
each individual business entity.
Effect of the Bill
Ratification of Defective Corporate Actions
The bill creates statutory procedures for ratifying a defective corporate action and provides a judicial
process for contesting the validity of certain corporate actions or putative shares. Under the bill, a
defective corporate action is not void or voidable if the defective corporate action was ratified in
accordance with the ratification or validation requirements proposed by the bill. The bill also
emphasizes that:
The ratification or validation process is not the exclusive means of ratifying or validating any
defective corporate action;
The absence or failure of ratification will not, in and of itself, affect the validity or effectiveness
of any corporate action properly ratified under common law or otherwise; and
The ratification or validation process does not create a presumption that any such corporate
action is or was a defective corporate action or is or was void or voidable.
DEFINITIONS
The bill defines certain terms, including:
16 Id.
17 For limited partnerships, s. 620.1809, F.S. governs.
18 Note that a general partnership is not required to have a registered agent . Section 620.8301, F.S., states that each
general partner is an agent of the partnership. (Note that a general partnership can still designate a separate registered
agent, through their initial general partnership registration form, but partners of the general partnership are deemed to be
agents and therefore the statutes do not require a general partnership to have a registered agent.)
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“Corporate action,” meaning any action taken by or on behalf of a corporation, including any
action taken by the incorporator or the corporation’s board of directors, committee, officer or
agent, or shareholders.
“Date of the defective corporate action,” meaning the date, or, of the exact date is unknown, the
approximate date, on which the defective corporate action was purported to have been taken.
“Defective corporate action,” meaning any corporate action purportedly taken which is, and at
the time such corporate action was purportedly taken would have been, within the power of the
corporation, but is void or voidable due to a failure of authorization or an overissue.
“Failure of authorization,” meaning the failure to authorize, approve, or otherwise effect a
corporate action in compliance with chapter 607, F.s., the corporation’s articles of incorporation
or bylaws, a corporate resolution, or any plan or agreement to which the corporation is a party, if
and to the extent such failure would render such corporate action void or voidable.
“Overissue,” meaning the purported issuance of shares or a class or series of shares in excess
of the number of shares of the class or series the corporation has the power to issue at the time
of issuance or shares of any class or series that is not then authorized for issuance by the
corporation’s articles of incorporation.
“Putative shares,” meaning the shares of any class or series that were created or issued due to
a defective corporate action and that would constitute valid shares but for any failure of
authorization or cannot be determined by the board of directors to be valid shares.
“Valid shares,” meaning the shares of any class or series that have been duly authorized and
validly issued in accordance with chapter 607, F.S.
“Validation effective time,” meaning:
o The later of the date and time at which the ratification is approved by the shareholders,
or if such approval is not required, the date and time the notice required by s. 607.0149,
F.S., becomes effective;
o If no articles of incorporation are required to be filed, the date and time at which the
notice required by s. 607.0149, F.S., becomes effective; or
o If articles of validation are required to be filed, the date and time at which the filed
articles of validation become effective.19
PROCEDURE FOR REMEDYING AN OVERISSUE
The bill provides that an overissue can be remedied by the adoption of an amendment to the articles of
incorporation or other corporate action that authorizes, designates, or creates the putative shares that
resulted in the overissue. Under the bill, putative shares will be valid and effective as of the date
originally issued or purportedly issued upon such amendment or action. This provision enables a
corporation to cure an overissue occurring when shares have been duly authorized but are issued
before articles of amendment are filed.
PROCEDURE FOR RATIFYING DEFECTIVE CORPORATION ACTIONS
The bill sets forth specific procedural requirements for the ratification of defective corporate actions.
Specifically, the bill provides that, to ratify a defective corporate action, the corporation must act in
accordance with s. 607.0148, F.S., and state all of the following:
The defective corporate action to be ratified;
The number and type of putative shares purportedly issued (if shares were issued);
The date of the defective corporate action;
The nature of the failure of authorization; and
The approval of the ratification of the defective corporate action by the board of directors.
Where the defective corporate action to be ratified relates to the election of the initial board of directors
of the corporation, the bill provides that a majority of the persons who, at the time of the ratification, are
exercising the powers of directors must take an action stating all of the following:
19 Under the bill, the validation
effective time will not be affected by the filing or pendency of a judicial proceeding u nder s.
607.0152, F.S., or any other law unless otherwise ordered by the court.
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The name of the person or persons who first took action in the corporation’s name as the initial
board of directors.
The earlier of the date on which either such persons first took such action or were purported to
have been elected to the initial board of directors.
That the ratification of the election of such person or persons as the initial board of directors is
approved.
Further, under the bill:
If any provision of chapter 607, F.S., the corporation’s articles of incorporation or bylaws, any
corporate resolution, or any plan or agreement requires shareholder approval, or would have
required such approval, at the date of the occurrence of the defective corporate action, the
ratification approved in the action taken by the directors as specified above must be submitted
to the shareholders for approval.
Unless otherwise provided in the action taken by the board of directions, after such action has
been taken and, if required, approved by the shareholders, the board may abandon the
ratification at any time before the validation effective time without further shareholder action.
ACTION ON RATIFICATION
Under the bill, if the shareholders are meeting to ratify the election of a director, or if such ratification is
to be made through written consent, the bill requires that it must be approved by a majority vote. The
bill clarifies that putative shares existing on the record date are only entitled to notice of matters relating
to ratification and that such shares are not:
Entitled to vote,
Counted for quorum purposes, nor
Counted in any written consent and that to ratify putative shares, an amendment to the articles
of incorporation must be approved.
Under the bill, the quorum and voting requirements applicable to a ratifying action by the board of
directors are the quorum and voting requirements applicable to the corporate action proposed to be
ratified at the time such ratifying action is taken. Further, with respect to the voting requirements to
ratify the election of a director, any quorum and voting requirements applicable to the approval by the
shareholders will be the quorum and voting requirements that are applicable, at the time of such
shareholder approval, to the defective corporate action proposed to be ratified.
NOTICE REQUIREMENTS – SHAREHOLDER APPROVAL REQUIRED
The bill creates notice requirements where the ratification of the defective corporate action requires
shareholder approval. Specifically, if shareholder approval is to be given at a meeting, the corporation
must give notice of the meeting, which notice must state that the purpose of the meeting is to consider
ratification of a defective corporate action, to each holder of valid and putative shares, regardless of
whether entitled to vote, as of the record date for notice of the meeting and as of the date of the
occurrence of the defective corporate action; however, the bill clarifies that such notice is not required
to be given to holders of valid or putative shares whose identifies or addresses for notice cannot be
determined from the corporation’s records.
Further, if shareholder approval is instead to be given by written consent, the corporation must give
notice of the action taken by such written consent, which notice must state that the purpose of the
written consent was to ratify the defective corporate action, to each holder of valid and putative shares
as of the record date of the action by written consent and as of the date of the occurrence of the
defective corporate action, regardless of whether entitled to vote; however, notice is not required to be
given to holders of valid or putative shares whose identities or addresses for notice cannot be
determined from the corporation’s records.
In either case, the notice must be accompanied by both of the following:
Either:
o A copy of the action taken by the board of directors under s. 607.0147(1); or
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o The information required by chapter 607, F.S.; and
A statement that any claim asserting that the ratification of such defective corporate action, and
any putative shares, should not be effective, or should only be effective on certain conditions,
and must be brought, if at all, within 120 days after the applicable validation effective time.
NOTICE REQUIREMENTS – SHAREHOLDER APPROVAL NOT REQUIRED
The bill creates notice requirements where shareholder action to approve the ratification of a defective
corporate action is not required. Specifically, the bill requires “prompt” notice to persons holding either
valid or putative shares, regardless of whether entitled to vote, following the ratification of a corporate
action by the board of directors. Under the bill, such notice must contain both of the following:
Either:
o A copy of the action taken by the board of directors under s. 607.0147(1); or
o The information required by chapter 607, F.S.; and
A statement that any claim asserting that the ratification of such defective corporate action, and
any putative shares, should not be effective, or should only be effective on certain conditions,
and must be brought, if at all, within 120 days after the applicable validation effective time.
The bill also:
Provides that such notice is not required to be submitted to the holders of valid or putative
shares if notice is given pursuant to other applicable law.
Makes a disclaimer that such notice may be given in any manner authorized under s. 607.0141,
F.S.
Provides that, in the case of a public company, such notice may be given by the filing or
furnishing of the notice with the United States Securities and Exchange Commission.
EFFECTS OF RATIFICATION
The bill specifies that the following provisions apply upon the validation effective time, without regard to
the 120-day period during which a claim may be brought under s. 607.0152, F.S.:
Each defective corporate action ratified is not void or voidable as a result of the failure of
authorization set forth and identified in the action taken, and is deemed a valid corporate action
effective as of the date of the defective corporate action.
The issuance of each putative share or fraction of a putative share purportedly issued pursuant
to a defective corporate action identified in the action taken is not void or voidable, and each
such putative share is deemed to be an identical share or fraction of a valid share as of the time
it was purportedly issued.
Any corporate action taken subsequent to the defective corporate action ratified in reliance on
such defective corporate action having been validly effected, and any subsequent defective
corporate action resulting from such original defective corporate action, is valid as of the
respective time such corporate action was taken.
FILING REQUIREMENTS
The bill establishes a new filing requirement (known as “articles of validation”) for ratified defective
corporate actions that would have normally required a filing, regardless of whether or not the filing was
properly made. The bill provides specific requirements for the content of the articles of validation,
including that the articles of validation must be filed with the DOS, and provides that the articles of
validation will serve to amend or be a substitute for any other filings related to the defective corporate
action.
JUDICIAL PROCEEDINGS
The bill provides that a corporation or a director, shareholder, beneficial shareholder, or unrestricted
voting trust beneficial owner thereof, or any other person claiming to be substantially and adversely
affected by the ratification of a defective corporate action, may, within 120 days after the validation
effective time, apply to the court for a determination of the:
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Validity of any corporate action or ratified defective corporate action.
Validity of any ratification of any defective corporate action.
Validity of any putative shares.
The bill also confers jurisdiction on the circuit court in the applicable county to hear and determine such
claims and authorizes the court, upon such application, to:
Modify or waive any of the ratification procedures; and
Make such findings or issue such orders, and take into account a specified, non-exclusive list of
factors or considerations, as it deems proper under the circumstances.
Further, the bill provides that service of process for any such proceedings should follow the same rules
as set forth in ch. 48, F.S.,20 for service on a corporation, and no other party need be joined in order for
the court to adjudicate the matter. However, under the bill, in an action filed by the corporation, the
court may require that notice of the action be provided to other persons specified by the court and
permit such other persons to intervene in the action.
Resignation of a Registered Agent
RESIGNATION STATEMENTS
The bill creates a mechanism for a registered agent to resign as the registered agent from multiple
dissolved business entities, if the entities in question are of a specified type and have each been
dissolved for at least a continuous ten-year period, by filing a single composite resignation statement
with DOS. Under the bill:
Any such composite statement must contain, for each entity covered therein, the name of the
respective entity and the date such entity’s dissolution became effective.
Such a mechanism may only be utilized where the entities from which the registered agent
wishes to resign are:
o Domestic or foreign LLCs;
o Domestic corporations; or
o Domestic corporations not for profit.
Further, the bill clarifies that any resignation statement must be delivered to the subject entity at its
mailing address as it then appears in DOS records. However, under the bill, if a composite resignation
statement is filed, the registered agent must promptly mail a copy of either the composite resignation
statement or a separate resignation notice to each entity from which he or she is resigning, in each
case using the respective mailing address of each such entity that then appears in DOS records.
FEES
The bill specifies that the fee charged to resign as a registered agent of a dissolved LLC, domestic
corporation, or domestic corporation not for profit is the same as it under current law, regardless of
whether the registered agent is resigning from one such business entity or multiple such entities using
a composite resignation statement.
Effective Date
The bill provides an effective date of July 1, 2024.
B. SECTION DIRECTORY:
Section 1: Creates s. 607.0145, F.S.; relating to definitions.
Section 2: Creates s. 607.0146, F.S.; relating to defective corporate actions.
Section 3: Creates s. 607.0147, F.S.; relating to ratification of defective corporate actions.
Section 4: Creates s. 607.0148, F.S.; relating to action on ratification.
20 Chapter 48, F.S., codifies Florida’s Rules of Civil Procedure relating to process and service of process.
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Section 5: Creates s. 607.0149, F.S.; relating to notice requirements.
Section 6: Creates s. 607.015, F.S.; relating to effects of ratification.
Section 7: Creates s. 607.0151, F.S.; relating to filings.
Section 8: Creates s. 607.0152, F.S.; relating to judicial proceedings regarding validity of corporate
actions.
Section 9: Amends s. 605.0115, F.S.; relating to resignation of registered agent.
Section 10: Amends s. 607.0503, F.S.; relating to resignation of registered agent.
Section 11: Amends s. 617.0502, F.S.; relating to resignation of corporation not for profit registered
agents.
Section 12: Amends s. 605.0213, F.S.; relating to fees of the department.
Section 13: Amends s. 607.0122, F.S.; relating to fees for filing documents and issuing certificates.
Section 14: Amends s. 617.0122, F.S.; relating to fees for filing documents and issuing certificates.
Section 15: Reenacts s. 605.0207, F.S.; relating to effective date and time.
Section 16: Reenacts s. 605.0113, F.S.; relating to registered agent.
Section 17: Reenacts s. 658.23, F.S.; relating to submission of articles of incorporation; contents;
form; approval; filing; commencement of corporate existence; bylaws.
Section 18: Reenacts s. 607.0501, F.S.; relating to registered office and registered agent.
Section 19: Reenacts s. 607.193, F.S.; relating to supplemental corporate fee.
Section 20: Reenacts s. 39.8298, F.S.; relating to authority.
Section 21: Reenacts s. 252.71, F.S.; relating to Florida Emergency Management Assistance
Foundation.
Section 22: Reenacts s. 288.012, F.S.; relating to State of Florida international offices; direct-support
organization.
Section 23: Reenacts s. 617.1807, F.S.; relating to conversion to corporation not for profit; authority
of circuit judge.
Section 24: Reenacts s. 617.2006, F.S.; relating to incorporation of labor unions or bodies.
Section 25: Reenacts s. 617.0501, F.S.; relating to registered office and registered agent.
Section 26: Reenacts s. 617.0503, F.S.; relating to registered agent; duties; confidentiality of
investigation records.
Section 27: Provides an effective date of July 1, 2024.
II. FISCAL ANALYSIS & ECONOMIC IMPACT STATEMENT
A. FISCAL IMPACT ON STATE GOVERNMENT:
1. Revenues:
The bill may have an indeterminate negative fiscal impact on state government because the DOS
may see a reduced amount in collected fees if a registered agent resigns from more than one
corporation at a time by only paying one fee, as opposed to current law which requires a registered
agent to pay a fee to resign from each corporation separately.
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2. Expenditures:
None.
B. FISCAL IMPACT ON LOCAL GOVERNMENTS:
1. Revenues:
None.
2. Expenditures:
None.
C. DIRECT ECONOMIC IMPACT ON PRIVATE SECTOR:
The bill may have an indeterminate positive economic impact on the private sector because registered
agents will be able to resign from more than one corporation at a time by only paying one fee in
specified circumstances, as opposed to current law which requires a registered agent to pay a fee to
resign from each corporation separately.
D. FISCAL COMMENTS:
None.
III. COMMENTS
A. CONSTITUTIONAL ISSUES:
1. Applicability of Municipality/County Mandates Provision:
Not applicable. The bill does not appear to affect county or municipal governments.
2. Other:
None.
B. RULE-MAKING AUTHORITY:
The bill does not create rule-making authority nor require the promulgation of rules.
C. DRAFTING ISSUES OR OTHER COMMENTS:
None.
IV. AMENDMENTS/COMMITTEE SUBSTITUTE CHANGES
On February 6, 2024, the Regulatory Reform & Economic Development Subcommittee considered the bill,
adopted one amendment, and reported the bill favorably as a committee substitute. The amendment
conformed the bill to the Senate bill, which is substantively identical to the House bill, with a few clarifying
and technical changes.
The analysis is drafted to the committee substitute as passed by the Regulatory Reform & Economic
Development Subcommittee.
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F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
CS/HB 1189 2024
1 A bill to be entitled
2 An act relating to corporate actions; creating s.
3 607.0145, F.S.; defining terms; creating s. 607.0146,
4 F.S.; providing that a defective corporate action is
5 not void or voidable in certain circumstances;
6 providing that ratification or validation under
7 certain circumstances may not be deemed the exclusive
8 means of either ratifying or validating defective
9 corporate actions, and that the absence or failure to
10 ratify defective corporate actions does not affect the
11 validity or effectiveness of certain corporate actions
12 properly ratified; providing for a process whereby
13 putative shares can be validated in the event of an
14 overissue; creating s. 607.0147, F.S.; requiring the
15 board of directors to take certain action to ratify a
16 defective corporate action; authorizing those
17 exercising the powers of the directors to take certain
18 action when certain defective actions are related to
19 the ratification of the initial board of directors;
20 requiring members of the board of directors to seek
21 approval of the shareholders in connection with
22 ratifying a defective corporate action under certain
23 conditions; authorizing the board of directors to
24 abandon ratification at any time before the validation
25 effective time after action by the board and, if
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26 required, approval of the shareholders; creating s.
27 607.0148, F.S.; providing quorum and voting
28 requirements for the ratification of certain defective
29 corporate actions; requiring the board, in connection
30 with a shareholder meeting held to ratify a defective
31 corporate action, to send notice to all identifiable
32 shareholders of a certain meeting date; requiring that
33 the notice state that a purpose of the meeting is to
34 consider ratification of a defective corporate action;
35 requiring the notice sent to be accompanied by certain
36 information; specifying the quorum and voting
37 requirements applicable to ratification of the
38 election of directors; requiring votes cast within the
39 voting group favoring ratification of the election of
40 a director to exceed the votes cast within the voting
41 group opposing such ratification; prohibiting holders
42 of putative shares from voting on ratification of any
43 defective corporate action and providing that they may
44 not be counted for quorum purposes or in certain
45 written consents; requiring approval of certain
46 amendments to the corporation's articles of
47 incorporation under certain circumstances; creating s.
48 607.0149, F.S.; requiring that notice be given to
49 shareholders of certain corporate action taken by the
50 board of directors; providing that notice is not
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51 required for holders of certain shares whose
52 identities or addresses for notice cannot be
53 determined; providing requirements for such notice;
54 providing requirements for such notice for
55 corporations subject to certain federal reporting
56 requirements; creating s. 607.015, F.S.; specifying
57 the effects of ratification; creating s. 607.0151,
58 F.S.; requiring corporations to file articles of
59 validation under certain circumstances; providing
60 applicability; providing requirements for articles of
61 validation; creating s. 607.0152, F.S.; authorizing
62 certain persons and entities to file certain motions;
63 providing for service of process; requiring that
64 certain actions be filed within a specified timeframe;
65 authorizing the court to consider certain factors in
66 resolving certain issues; authorizing the courts to
67 take certain actions in cases involving defective
68 corporate actions; amending ss. 605.0115, 607.0503,
69 and 617.0502, F.S.; providing that a registered agent
70 may resign from certain limited liability companies or
71 foreign limited liability companies, certain dissolved
72 corporations, and certain active or dissolved
73 corporations, respectively, by delivering a specified
74 statement of resignation to the Department of State;
75 providing requirements for the statement; providing
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76 that a registered agent who is resigning from more
77 than one such corporations or limited liability
78 companies may elect to file a statement of resignation
79 for each such company or corporation or a composite
80 statement; providing requirements for composite
81 statements; requiring that a copy of each of the
82 statements of resignation or the composite statement
83 be mailed to the address on file with the department
84 for the company or corporation or companies or
85 corporations, as applicable; amending ss. 605.0213,
86 607.0122, and 617.0122, F.S.; conforming provisions to
87 changes made by the act; providing registered agents
88 may pay one resignation fee regardless of whether
89 resigning from one or multiple dissolved companies or
90 corporations; reenacting ss. 605.0207 and
91 605.0113(3)(b), F.S., relating to effective dates and
92 times and to registered agents, respectively, to
93 incorporate the amendments made to s. 605.0115, F.S.,
94 in references thereto; reenacting s. 658.23(1), F.S.,
95 relating to submission of articles of incorporation,
96 to incorporate the amendment made to s. 607.0122,
97 F.S., in a reference thereto; reenacting s.
98 607.0501(4), F.S., relating to registered offices and
99 registered agents, to incorporate the amendment made
100 to s. 607.0503, F.S., in a reference thereto;
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101 reenacting s. 607.193(2)(b), F.S., relating to
102 supplemental corporate fees, to incorporate the
103 amendments made to ss. 605.0213 and 607.0122, F.S., in
104 references thereto; reenacting ss. 39.8298(1)(a),
105 252.71(2)(a), 288.012(6)(a), 617.1807, and
106 617.2006(4), F.S., relating to the Guardian Ad Litem
107 direct-support organization, the Florida Emergency
108 Management Assistance Foundation, State of Florida
109 international offices, conversion to corporation not
110 for profit, and incorporation of labor unions or
111 bodies, respectively, to incorporate the amendment
112 made to s. 617.0122, F.S., in references thereto;
113 reenacting s. 617.0501(3) and 617.0503(1)(a), F.S.,
114 relating to registered agents, to incorporate the
115 amendment made to s. 617.0502, F.S., in references
116 thereto; providing an effective date.
117
118 Be It Enacted by the Legislature of the State of Florida:
119
120 Section 1. Section 607.0145, Florida Statutes, is created
121 to read:
122 607.0145 Definitions.—As used in ss. 607.0145-607.0152,
123 the term:
124 (1) "Corporate action" means any action taken by or on
125 behalf of a corporation, including any action taken by the
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126 incorporator, the board of directors, a committee of the board
127 of directors, an officer or agent of the corporation, or the
128 shareholders.
129 (2) "Date of the defective corporate action" means the
130 date, or, if the exact date is unknown, the approximate date, on
131 which the defective corporate action was purported to have been
132 taken.
133 (3) "Defective corporate action" means:
134 (a) Any corporate action purportedly taken which is, and
135 at the time such corporate action was purportedly taken would
136 have been, within the power of the corporation, but is void or
137 voidable due to a failure of authorization; or
138 (b) An overissue.
139 (4) "Failure of authorization" means the failure to
140 authorize, approve, or otherwise effect a corporate action in
141 compliance with this chapter, the corporation's articles of
142 incorporation or bylaws, a corporate resolution, or any plan or
143 agreement to which the corporation is a party, if and to the
144 extent such failure would render such corporate action void or
145 voidable.
146 (5) "Overissue" means the purported issuance of:
147 (a) Shares of a class or series in excess of the number of
148 shares of the class or series the corporation has the power to
149 issue under s. 607.0601 at the time of such issuance; or
150 (b) Shares of any class or series that is not then
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151 authorized for issuance by the corporation's articles of
152 incorporation.
153 (6) "Putative shares" means the shares of any class or
154 series, including shares issued upon exercise of rights,
155 options, warrants or other securities convertible into shares of
156 the corporation, or interests with respect to such shares, that
157 were created or issued as a result of a defective corporate
158 action and that:
159 (a) Would constitute valid shares but for any failure of
160 authorization; or
161 (b) Cannot be determined by the board of directors to be
162 valid shares.
163 (7) "Valid shares" means the shares of any class or series
164 that have been duly authorized and validly issued in accordance
165 with this chapter, including as a result of ratification or
166 validation under ss. 607.0145-607.0152.
167 (8)(a) "Validation effective time," with respect to any
168 defective corporate action ratified under ss. 607.0145-607.0152,
169 means the later of the following:
170 1. The date and time at which the ratification of the
171 defective corporate action is approved by the shareholders, or
172 if approval of shareholders is not required, the date and time
173 at which the notice required by s. 607.0149 becomes effective in
174 accordance with s. 607.0141;
175 2. If no articles of validation are required to be filed
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176 in accordance with s. 607.0151, the date and time at which the
177 notice required by s. 607.0149 becomes effective in accordance
178 with s. 607.0141; or
179 3. If articles of validation are required to be filed in
180 accordance with s. 607.0151, the date and time at which the
181 articles of validation filed in accordance with s. 607.0151
182 become effective.
183 (b) The validation effective time will not be affected by
184 the filing or pendency of a judicial proceeding under s.
185 607.0152 or any other law unless otherwise ordered by the court.
186 Section 2. Section 607.0146, Florida Statutes, is created
187 to read:
188 607.0146 Defective corporate actions.—
189 (1) A defective corporate action is not void or voidable
190 if:
191 (a) The defective corporate action was ratified in
192 accordance with the requirements of s. 607.0147, including the
193 filing, if required, of articles of validation pursuant to s.
194 607.0151; or
195 (b) The defective corporate action was validated in
196 accordance with s. 607.0152.
197 (2) Ratification under s. 607.0147 or validation under s.
198 607.0152 may not be deemed to be the exclusive means of
199 ratifying or validating any defective corporate action, and the
200 absence or failure of ratification in accordance with ss.
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201 607.0145-607.0152 will not, in and of itself, affect the
202 validity or effectiveness of any corporate action properly
203 ratified under common law or otherwise, and it does not create a
204 presumption that any such corporate action is or was a defective
205 corporate action or is or was void or voidable.
206 (3) In the case of an overissue, putative shares will be
207 valid shares effective as of the date originally issued or
208 purportedly issued upon:
209 (a) The effectiveness under ss. 607.0145-607.0152 and ss.
210 607.1001-607.1009 of an amendment to the articles of
211 incorporation authorizing, designating, or creating such shares;
212 or
213 (b) The effectiveness of any other corporate action taken
214 under ss. 607.0145-607.0152 ratifying the authorization,
215 designation, or creation of such shares.
216 Section 3. Section 607.0147, Florida Statutes, is created
217 to read:
218 607.0147 Ratification of defective corporate actions.—
219 (1) To ratify a defective corporate action under this
220 section, other than to ratify an election of the initial board
221 of directors under subsection (2), the board of directors must
222 take the action in accordance with s. 607.0148, stating all of
223 the following:
224 (a) The defective corporate action to be ratified and, if
225 the defective corporate action involved the issuance of putative
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226 shares, the number and type of putative shares purportedly
227 issued.
228 (b) The date of the defective corporate action.
229 (c) The nature of the failure of authorization with
230 respect to the defective corporate action to be ratified.
231 (d) That the board of directors approves the ratification
232 of the defective corporate action.
233 (2) If a defective corporate action to be ratified relates
234 to the election of the initial board of directors of the
235 corporation under s. 607.0205(1)(b), a majority of the persons
236 who, at the time of the ratification, are exercising the powers
237 of directors must take an action stating all of the following:
238 (a) The name of the person or persons who first took
239 action in the name of the corporation as the initial board of
240 directors of the corporation.
241 (b) The earlier of the date on which either such persons
242 first took such action or were purported to have been elected to
243 the initial board of directors.
244 (c) That the ratification of the election of such person
245 or persons as the initial board of directors is approved.
246 (3) If any provision of this chapter, the corporation's
247 articles of incorporation or bylaws, any corporate resolution,
248 or any plan or agreement in effect at the time action to which
249 the corporation is a party under subsection (1) is taken
250 requires shareholder approval, or would have required
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251 shareholder approval, at the date of the occurrence of the
252 defective corporate action, the ratification of the defective
253 corporate action approved in the action taken by the directors
254 under subsection (1) must be submitted to the shareholders for
255 approval in accordance with s. 607.0148.
256 (4) Unless otherwise provided in the action taken by the
257 board of directors under subsection (1), after the action by the
258 board of directors has been taken and, if required, approved by
259 the shareholders, the board of directors may abandon the
260 ratification at any time before the validation effective time
261 without further action of the shareholders.
262 Section 4. Section 607.0148, Florida Statutes, is created
263 to read:
264 607.0148 Action on ratification.—
265 (1) The quorum and voting requirements applicable to a
266 ratifying action by the board of directors under s. 607.0147(1)
267 are the quorum and voting requirements applicable to the
268 corporate action proposed to be ratified at the time such
269 ratifying action is taken.
270 (2)(a) If the ratification of the defective corporate
271 action requires approval by the shareholders under s.
272 607.0147(3), and if the approval is to be given at a meeting,
273 the corporation must give notice of the meeting to each holder
274 of valid and putative shares, regardless of whether entitled to
275 vote, as of the record date for notice of the meeting and as of
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276 the date of the occurrence of the defective corporate action;
277 however, such notice is not required to be given to holders of
278 valid or putative shares whose identities or addresses for
279 notice cannot be determined from the records of the corporation.
280 The notice must state that the purpose, or one of the purposes,
281 of the meeting is to consider ratification of a defective
282 corporate action.
283 (b) If the ratification of the defective corporate action
284 requires approval by the shareholders under s. 607.0147(3), and
285 if the approval is to be ratified by one or more written
286 consents of the shareholders, the corporation must give notice
287 of the action taken by such written consent to each holder of
288 valid and putative shares as of the record date of the action by
289 written consent and as of the date of the occurrence of the
290 defective corporate action, regardless of whether ent itled to
291 vote; however, notice is not required to be given to holders of
292 valid or putative shares whose identities or addresses for
293 notice cannot be determined from the records of the corporation.
294 The notice must state that the purpose, or one of the purposes,
295 of the written consent was to ratify the defective corporate
296 action.
297 (c) The notice must be accompanied by both of the
298 following:
299 1. Either:
300 a. A copy of the action taken by the board of directors in
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301 accordance with s. 607.0147(1); or
302 b. The information required by s. 607.0147(1)(a)-(d).
303 2. A statement that any claim asserting that the
304 ratification of such defective corporate action, and any
305 putative shares issued as a result of such defective corporate
306 action, should not be effective, or should only be effective on
307 certain conditions, and must be brought, if at all, within 120
308 days after the applicable validation effective time.
309 (3) Except as provided in subsection (4) with respect to
310 the voting requirements to ratify the election of a dire ctor,
311 any quorum and voting requirements applicable to the approval by
312 the shareholders required by s. 607.0147(3) will be the quorum
313 and voting requirements that are applicable, at the time of such
314 shareholder approval, to the defective corporate action proposed
315 to be ratified.
316 (4) The approval by shareholders at a meeting to ratify
317 the election of a director requires that the votes cast within
318 the voting group favoring such ratification exceed the votes
319 cast within the voting group opposing such ratification of the
320 election at a meeting at which a quorum is present. Approval by
321 shareholders by written consent to ratify the election of a
322 director requires that the consents given within the voting
323 group favoring such ratification represent a majority of the
324 shares of the voting group.
325 (5) Putative shares on the record date for determining the
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326 shareholders entitled to vote on any matter submitted to
327 shareholders under s. 607.0147(3), and without giving effect to
328 any ratification of putative shares that becomes effective as a
329 result of such vote, will not be entitled to vote or counted for
330 quorum purposes in any vote to approve the ratification of any
331 defective corporate action. Putative shares on the record date
332 for an action by written consent, and without giving effect to
333 any ratification of putative shares that becomes effective as a
334 result of such written consent, will not be entitled to be
335 counted in any written consent to approve the ratification of
336 any defective corporate action.
337 (6) If approval under this section of putative shares
338 would result in an overissue, in addition to the approval
339 required by s. 607.0147(3), approval of an amendment to the
340 corporation's articles of incorporation under ss. 607.1001 –
341 607.1009 to increase the number of shares of an authorized class
342 or series or to authorize the creation of a class or series of
343 shares so there is no overissue will also be required.
344 Section 5. Section 607.0149, Florida Statutes, is created
345 to read:
346 607.0149 Notice requirements.—
347 (1) Unless shareholder approval is required under s.
348 607.0147(3), prompt notice of an action taken by the board of
349 directors under s. 607.0147 must be given to each holder of
350 valid shares and each holder of putative shares, regardless of
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351 whether entitled to vote, that is a holder of valid shares or
352 putative shares as of:
353 (a) The date of the action by the board of directors taken
354 under s. 607.0147; and
355 (b) The date of the occurrence of the defective corporate
356 action being ratified.
357 (2) Notice is not required to be given to those holders of
358 valid shares or those holders of putative shares whose
359 identities or addresses for notice cannot be determined from the
360 records of the corporation.
361 (3) The notice must contain both of the following:
362 (a) Either:
363 1. A copy of the action taken by the board of directors
364 pursuant to s. 607.0147(1); or
365 2. The information required by s. 607.0147(1)(a)-(d) or s.
366 607.0147(2)(a), (b), and (c), as applicable.
367 (b) A statement that, in order to be considered, any claim
368 asserting that the ratification of the defective corporate
369 action, and any putative shares issued as a result of such
370 defective corporate action, should not be effective, or should
371 be effective only on certain conditions, and must be brought, if
372 at all, within 120 days after the applicable validation
373 effective time.
374 (4) Notice under this section is not required with respect
375 to any action required to be submitted to shareholders for
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376 approval pursuant s. 607.0147(3) if notice is given in
377 accordance with s. 607.0148(2).
378 (5) Notice required by this section may be given in any
379 manner permitted under s. 607.0141 and, for any corporation
380 subject to the reporting requirements of s. 13 or s. 15(d) of
381 the Securities Exchange Act of 1934, may be given by means of a
382 filing or furnishing of such notice with the United States
383 Securities and Exchange Commission.
384 Section 6. Section 607.015, Florida Statutes, is created
385 to read:
386 607.015 Effects of ratification.—The following provisions
387 apply from and after the validation effective time, without
388 regard to the 120-day period during which a claim may be brought
389 under s. 607.0152:
390 (1) Each defective corporate action ratified in accordance
391 with s. 607.0147 will not be void or voidable as a result of the
392 failure of authorization set forth and identified in the action
393 taken under s. 607.0147(1) or (2) and will be deemed a valid
394 corporate action effective as of the date of the defective
395 corporate action.
396 (2) The issuance of each putative share or fraction of a
397 putative share purportedly issued pursuant to a defective
398 corporate action identified in the action taken in accordance
399 with s. 607.0147 will not be void or voidable, and each such
400 putative share or fraction of a putative share will be deemed to
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401 be an identical share or fraction of a valid share as of the
402 time it was purportedly issued.
403 (3) Any corporate action taken subsequent to the defective
404 corporate action ratified pursuant to ss. 607.0145-607.0152 in
405 reliance on such defective corporate action having been validly
406 effected, and any subsequent defective corporate action
407 resulting directly or indirectly from such original defective
408 corporate action, will be valid as of the respective time such
409 corporate action was taken.
410 Section 7. Section 607.0151, Florida Statutes, is created
411 to read:
412 607.0151 Filings.—
413 (1) If the defective corporate action ratified under ss.
414 607.0145-607.0152 would have required a filing under this
415 chapter and either:
416 (a) Any previous filing requires any change to the filing
417 to give effect to the defective corporate action in accordance
418 with this section, including, but not limited to, a change to
419 the date and time of the effectiveness of such filing; or
420 (b) A filing was not previously filed in respect of the
421 defective corporate action,
422
423 In lieu of a filing otherwise required under this chapter, the
424 corporation must file articles of validation in accordance with
425 this section, and such articles of validation will serve to
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426 amend or be a substitute for any other filing with respect to
427 such defective corporate action required by this chapter.
428 (2) The articles of validation must specify all of the
429 following:
430 (a) The defective corporate action that is the subject of
431 the articles of validation, including, in the case of any
432 defective corporate action involving the issuance of putative
433 shares, the number and type of putative shares issued and the
434 date or dates upon which such putative shares were purported to
435 have been issued.
436 (b) The date of the defective corporate action.
437 (c) The nature of the failure of authorization in respect
438 of the defective corporate action.
439 (d) A statement that the defective corporate action was
440 ratified in accordance with s. 607.0147, including the date on
441 which the board of directors ratified such defective corporat e
442 action and, if applicable, the date on which the shareholders
443 approved the ratification of such defective corporate action.
444 (e)1. If a filing was previously made in respect of the
445 defective corporate action and such filing requires any change
446 to give effect to the ratification of such defective corporate
447 action pursuant to s. 607.0147:
448 a. The name, title, and filing date of the filing
449 previously made and any articles of correction for that filing;
450 b. A statement that a filing containing all of the
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451 information required to be included under the applicable
452 provisions of this chapter to give effect to such defective
453 corporate action is attached as an exhibit to the articles of
454 validation; and
455 c. The date and time that such filing is deemed to have
456 become effective.
457 2. If a filing was not previously made in respect of the
458 defective corporate action and the defective corporate action
459 ratified pursuant to s. 607.0147 would have required a filing
460 under any other provision of this chapter:
461 a. A statement that a filing containing all of the
462 information required to be included under the applicable
463 provisions of this chapter to give effect to such defective
464 corporate action is attached as an exhibit to the articles of
465 validation; and
466 b. The date and time that such filing is deemed to have
467 become effective.
468 Section 8. Section 607.0152, Florida Statutes, is created
469 to read:
470 607.0152 Judicial proceedings regarding validity of
471 corporate actions.—
472 (1) Subject to subsection (4), upon application by the
473 corporation, any successor entity to the corporation; a director
474 of the corporation; any shareholder, beneficial shareholder, or
475 unrestricted voting trust beneficial owner of the corporation,
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476 including any such shareholder, beneficial shareholder, or
477 unrestricted voting trust beneficial owner as of the date of the
478 defective corporate action ratified pursuant to s. 607.0147; or
479 any other person claiming to be substantially and adversely
480 affected by a ratification in accordance with s. 607.0147, the
481 circuit court in the applicable county may take any one or more
482 of the following actions:
483 (a) Determine the validity and effectiveness of any
484 corporate action or defective corporate action ratified pursuant
485 to s. 607.0147.
486 (b) Determine the validity and effectiveness of any
487 ratification of any defective corporate action pursuant to s.
488 607.0147.
489 (c) Determine the validity and effectiveness of any
490 defective corporate action not ratified or not ratified
491 effectively pursuant to s. 607.0147.
492 (d) Determine the validity of any putative shares.
493 (e) Modify or waive any of the procedures specified in s.
494 607.0147 or s. 607.0148 to ratify a defective corporate action.
495 (2) In connection with an action brought under this
496 section, the court may make such findings or issue such orders
497 and take into account any one or more factors or considerations
498 as it deems proper under the circumstances, including, but not
499 limited to, any one or more of the factors, considerations,
500 findings, and orders set forth in subsections (5) a nd (6).
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501 (3) Service of process of the application under subsection
502 (1) on the corporation may be made in any manner provided in
503 chapter 48 for service on a corporation, and no other party need
504 be joined in order for the court to adjudicate the matter. In an
505 action filed by the corporation, the court may require that
506 notice of the action be provided to other persons specified by
507 the court and permit such other persons to intervene in the
508 action.
509 (4) Notwithstanding any other law to the contrary, any
510 action asserting that the ratification of a defective corporate
511 action, and any putative shares issued as a result of such
512 defective corporate action, should not be effective, or should
513 be effective only on certain conditions, must be brought, if at
514 all, within 120 days after the validation effective time.
515 (5) In connection with the resolution of matters under
516 subsection (2), the court may consider any of the following:
517 (a) Whether the defective corporate action was originally
518 approved or effectuated with the belief that the approval or
519 effectuation was in compliance with the provisions of this
520 chapter, the articles of incorporation, or the bylaws of the
521 corporation.
522 (b) Whether the corporation and board of directors have
523 treated the defective corporate action as a valid act or
524 transaction and whether any person has acted in reliance on the
525 public record that such defective corporate action was valid.
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526 (c) Whether any person will be or was harmed by the
527 ratification or validation of the defective corporate action,
528 excluding any harm that would have resulted if the defective
529 corporate action had been valid when approved or effectuated.
530 (d) Whether any person will be harmed by the failure to
531 ratify or validate the defective corporate action.
532 (e) Whether the defective corporate action was a conflict
533 of interest transaction.
534 (f) Any other factors or considerations the court deems
535 just and equitable.
536 (6) In connection with an action under this section, the
537 court may do any one or more of the following:
538 (a) Declare that a ratification in accordance with and
539 pursuant to s. 607.0147 is not effective or shall only be
540 effective at a time or upon conditions established by the court.
541 (b) Validate and declare effective any defective corporate
542 action or putative shares and impose conditions upon such
543 validation.
544 (c) Require measures to remedy or avoid harm to any person
545 substantially and adversely affected by a ratification in
546 accordance with and pursuant to s. 607.0147 or by any order of
547 the court pursuant to this section, excluding any harm that
548 would have resulted if the defective corporate action had been
549 valid when approved or effectuated.
550 (d) Order the department to accept an instrument for
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551 filing with an effective time specified by the court, which
552 effective time may be before or after the date and time of such
553 order, provided that the filing date of such instrument shall be
554 determined in accordance with s. 607.0123.
555 (e) Approve a stock ledger for the corporation that
556 includes any shares ratified or validated in accordance with
557 this section or s. 607.0147.
558 (f) Declare that the putative shares are valid shares or
559 require a corporation to issue and deliver valid shares in place
560 of any putative shares.
561 (g) Order that a meeting of holders of valid shar es or
562 putative shares be held and exercise such powers as it deems
563 appropriate with respect to such a meeting.
564 (h) Declare that a defective corporate action validated by
565 the court shall be effective as of the date and time of the
566 defective corporate action or at such other date and time as
567 determined by the court.
568 (i) Declare that putative shares validated by the court
569 shall be deemed to be identical valid shares or fractions of
570 valid shares as of the date and time originally issued or
571 purportedly issued or at such other date and time as determined
572 by the court.
573 (j) Require payment by the corporation of reasonable
574 expenses, including attorney fees and costs, that the court
575 finds just and equitable under the circumstances.
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576 (k) Issue other orders as it deems necessary and proper
577 under the circumstances.
578 Section 9. Subsection (2) of section 605.0115, Florida
579 Statutes, is amended, and subsection (6) is added to that
580 section, to read:
581 605.0115 Resignation of registered agent.—
582 (2) After delivering the statement of resignation to the
583 department for filing, the registered agent must promptly mail a
584 copy to the limited liability company's or foreign limited
585 liability company's current mailing address; provided, however,
586 that if a composite statement of resignation is being filed
587 pursuant to subsection (6), the registered agent must promptly
588 mail a copy of either the composite statement of resignation or
589 a separate notice of resignation for each respective limited
590 liability company, in each case using the respective mailing
591 address of the respective limited liability company that then
592 appears in the records of the department.
593 (6)(a) If a registered agent is resigning as registered
594 agent from more than one limited liability company that each has
595 been dissolved, either voluntarily, administratively, or by
596 court action, for a continuous period of 10 years or longer, the
597 registered agent may elect to file the statement of resignation
598 separately for each such limited liability company or may elect
599 to file a single composite statement of resignation covering two
600 or more limited liability companies. Any such composite
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601 statement of resignation must set forth, for each such limited
602 liability company covered by the statement of resignation, the
603 name of the respective limited liability and the date
604 dissolution became effective for the respective limited
605 liability company.
606 (b) This subsection is applicable only to resignations
607 from limited liability companies as defined in this chapter.
608 Section 10. Subsection (2) of section 607.0503, Florida
609 Statutes, is amended, and subsection (6) is added to that
610 section, to read:
611 607.0503 Resignation of registered agent.—
612 (2) After delivering the statement of resignation to the
613 department for filing, the registered agent must promptly mail a
614 copy to the corporation at its current mailing address;
615 provided, however, that if a composite statement of resignation
616 is being filed pursuant to subsection (6), the registered agent
617 must promptly mail a copy of either the composite statement of
618 resignation or a separate notice of resignation for each
619 respective corporation, in each case using the respective
620 mailing address of the respective corporation that then appears
621 in the records of the department.
622 (6)(a) If a registered agent is resigning as registered
623 agent from more than one corporation that each has been
624 dissolved, either voluntarily, administratively, or by court
625 action, for a continuous period of 10 years or longer, the
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626 registered agent may elect to file the statement of resignation
627 separately for each such corporation or may elect to file a
628 single composite statement of resignation covering two or more
629 corporations. Any such composite statement of resignation must
630 set forth, for each such corporation covered by the statem ent of
631 resignation, the name of the respective corporation and the date
632 that dissolution became effective for the respective
633 corporation.
634 (b) This subsection is applicable only to resignations by
635 registered agents from domestic corporations.
636 Section 11. Subsection (2) of section 617.0502, Florida
637 Statutes, is amended to read:
638 617.0502 Change of registered office or registered agent;
639 resignation of registered agent.—
640 (2)(a) Any registered agent may resign his or her agency
641 appointment by signing and delivering for filing with the
642 Department of State a statement of resignation and mailing a
643 copy of such statement to the corporation at its mailing address
644 as it then appears in the records of the Department of State;
645 provided, however, that if a composite statement of resignation
646 is being filed pursuant to paragraph (b), the registered agent
647 must promptly mail a copy of either the composite statement of
648 resignation or a separate notice of resignation for each
649 respective corporation, in each case using the respective
650 mailing address of the respective corporation that then appears
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651 in the records of the Department of State principal office
652 address shown in its most recent annual report or, if none,
653 filed in the articles of incorporation or other most recently
654 filed document. The statement of resignation shall state that a
655 copy of such statement of resignation or, if applicable, notice
656 of resignation, has been mailed to the corporation at the
657 address so stated. The agency is terminated as of the 31st day
658 after the date on which the statement was filed and unless
659 otherwise provided in the statement, termination of the agency
660 acts as a termination of the registered office.
661 (b) If a registered agent is resigning as registered agent
662 from one or more corporations that each has been dissolved,
663 either voluntarily, administratively, or by court action, for a
664 continuous period of 10 years or longer, the registered agent
665 may elect to file the statement of resignation separately for
666 each such corporation or may elect to file a single composite
667 statement of resignation covering two or more corporations. Any
668 such composite statement of resignation must set forth, for each
669 such corporation covered by the statement of resignation, the
670 name of the respective corporation and the date that dissolution
671 became effective for the respective corporation. This subsection
672 is applicable only to resignations by registered agents from
673 domestic corporations.
674 Section 12. Subsections (8) and (9) of section 605.0213,
675 Florida Statutes, are amended to read:
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676 605.0213 Fees of the department.—The fees of the
677 department under this chapter are as follows:
678 (8) For filing a registered agent's statement of
679 resignation from a an active limited liability company that has
680 not been dissolved, $85.
681 (9) For filing a registered agent's statement of
682 resignation from a dissolved limited liability company or a
683 composite statement of resignation from two or more dissolved
684 limited liability companies pursuant to s. 605.0115(6), $25.
685 Section 13. Subsections (6) and (7) of section 607.0122,
686 Florida Statutes, are amended to read:
687 607.0122 Fees for filing documents and issuing
688 certificates.—The department shall collect the following fees
689 when the documents described in this section are delivered to
690 the department for filing:
691 (6) Agent's statement of resignation from a active
692 corporation that has not been dissolved: $87.50.
693 (7) Agent's statement of resignation from a dissolved an
694 inactive corporation or a composite statement of resignation
695 from two or more dissolved corporations pursuant to s.
696 607.0502(6): $35.
697 Section 14. Subsections (6) and (7) of section 617.0122,
698 Florida Statutes, are amended to read:
699 617.0122 Fees for filing documents and issuing
700 certificates.—The Department of State shall collect the
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701 following fees on documents delivered to the department for
702 filing:
703 (6) Agent's statement of resignation from a active
704 corporation that has not been dissolved: $87.50.
705 (7) Agent's statement of resignation from a dissolved
706 inactive corporation or a composite statement of resignation
707 from two or more dissolved corporations pursuant to s.
708 617.0502(2)(b): $35.
709
710 Any citizen support organization that is required by rule of the
711 Department of Environmental Protection to be formed as a
712 nonprofit organization and is under contract with the department
713 is exempt from any fees required for incorporation as a
714 nonprofit organization, and the Secretary of State may not
715 assess any such fees if the citizen support organization is
716 certified by the Department of Environmental Protection to the
717 Secretary of State as being under contract with the Department
718 of Environmental Protection.
719 Section 15. For the purpose of incorporating the
720 amendments made by this act to section 605.0115, Florida
721 Statutes, in a reference thereto, section 605.0207, Florida
722 Statutes, is reenacted to read:
723 605.0207 Effective date and time.—Except as otherwise
724 provided in s. 605.0208, and subject to s. 605.0209(3), any
725 document delivered to the department for filing under this
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726 chapter may specify an effective time and a delayed effective
727 date. In the case of initial articles of organization, a prior
728 effective date may be specified in the articles of organization
729 if such date is within 5 business days before the date of
730 filing. Subject to ss. 605.0114, 605.0115, 605.0208, and
731 605.0209, a record filed by the department is effective:
732 (1) If the record filed does not specify an effective time
733 and does not specify a prior or a delayed effective date, on the
734 date and at the time the record is accepted as evidenced by the
735 department's endorsement of the date and time on the filing.
736 (2) If the record filed specifies an effective time, but
737 not a prior or delayed effective date, on the date the record is
738 accepted, as evidenced by the department's endorsement, and at
739 the time specified in the filing.
740 (3) If the record filed specifies a delayed effective
741 date, but not an effective time, at 12:01 a.m. on the earlier
742 of:
743 (a) The specified date; or
744 (b) The 90th day after the record is filed.
745 (4) If the record filed specifies a delayed effective date
746 and an effective time, at the specified time on or the earlier
747 of:
748 (a) The specified date; or
749 (b) The 90th day after the record is filed.
750 (5) If the record filed is the initial articles of
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751 organization and specifies an effective date before the date of
752 the filing, but no effective time, at 12:01 a.m. on the later
753 of:
754 (a) The specified date; or
755 (b) The 5th business day before the record is filed.
756 (6) If the record filed is the initial articles of
757 organization and specifies an effective time and an effective
758 date before the date of the filing, at the specified time on the
759 later of:
760 (a) The specified date; or
761 (b) The 5th business day before the record is filed.
762 (7) If the record filed does not specify the time zone or
763 place at which the date or time, or both, is to be determined,
764 the date or time, or both, at which it becomes effective shall
765 be those prevailing at the place of filing in this state.
766 Section 16. For the purpose of incorporating the
767 amendments made by this act to section 605.0115, Florida
768 Statutes, in a reference thereto, paragraph (b) of subsection
769 (3) of section 605.0113, Florida Statutes, is reenacted to read:
770 605.0113 Registered agent.—
771 (3) The duties of a registered agent are as follows:
772 (b) If the registered agent resigns, to provide the notice
773 required under s. 605.0115(2) to the company or foreign limited
774 liability company at the address most recently supplied to the
775 agent by the company or foreign limited liability company.
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776 Section 17. For the purpose of incorporating the amendment
777 made by this act to section 607.0122, Florida Statutes, in a
778 reference thereto, subsection (1) of section 658.23, Florida
779 Statutes, is reenacted to read:
780 658.23 Submission of articles of incorporation; contents;
781 form; approval; filing; commencement of corporate existence;
782 bylaws.—
783 (1) Within 3 months after approval by the office and the
784 appropriate federal regulatory agency, the applicant shall
785 submit its duly executed articles of incorporation to the
786 office, together with the filing fee due the Department of State
787 under s. 607.0122.
788 Section 18. For the purpose of incorporating the amendment
789 made by this act to section 607.0503, Florida Statutes, in a
790 reference thereto, subsection (4) of section 607.0501, Florida
791 Statutes, is reenacted to read:
792 607.0501 Registered office and registered agent.—
793 (4) The duties of a registered agent are:
794 (a) To forward to the corporation at the address most
795 recently supplied to the registered agent by the corporation, a
796 process, notice, or demand pertaining to the corporation which
797 is served on or received by the registered agent; and
798 (b) If the registered agent resigns, to provide the notice
799 required under s. 607.0503 to the corporation at the address
800 most recently supplied to the registered agent by the
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801 corporation.
802 Section 19. For the purpose of incorporating the
803 amendments made by this act to sections 605.0213 and 607.0122,
804 Florida Statutes, in references thereto, paragraph (b) of
805 subsection (2) of section 607.193, Florida Statutes, is
806 reenacted to read:
807 607.193 Supplemental corporate fee.—
808 (2)
809 (b) In addition to the fees levied under ss. 605.0213,
810 607.0122, and 620.1109 and the supplemental corporate fee, a
811 late charge of $400 shall be imposed if the supplemental
812 corporate fee is remitted after May 1 except in circumstances in
813 which a business entity was administratively dissolved or its
814 certificate of authority was revoked due to its failure to file
815 an annual report and the entity subsequently applied for
816 reinstatement and paid the applicable reinstatement fee.
817 Section 20. For the purpose of incorporating the amendment
818 made by this act to section 617.0122, Florida Statutes, in a
819 reference thereto, paragraph (a) of subsection (1) of section
820 39.8298, Florida Statutes, is reenacted to read:
821 39.8298 Guardian Ad Litem direct-support organization.—
822 (1) AUTHORITY.—The Statewide Guardian Ad Litem Office
823 created under s. 39.8296 is authorized to create a direct-
824 support organization.
825 (a) The direct-support organization must be a Florida
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826 corporation not for profit, incorporated under the provisions of
827 chapter 617. The direct-support organization shall be exempt
828 from paying fees under s. 617.0122.
829 Section 21. For the purpose of incorporating the amendment
830 made by this act to section 617.0122, Florida Statutes, in a
831 reference thereto, paragraph (a) of subsection (2) of section
832 252.71, Florida Statutes, is reenacted to read:
833 252.71 Florida Emergency Management Assistance
834 Foundation.—
835 (2) The foundation is hereby created as a direct-support
836 organization of the division to provide assistance, funding, and
837 support to the division in its disaster response, recovery, and
838 relief efforts for natural emergencies.
839 (a) The foundation must be an organization that is a
840 Florida nonprofit corporation incorporated under chapter 617,
841 approved by the Department of State, and recognized under s.
842 501(c)(3) of the Internal Revenue Code. The foundation is exempt
843 from paying fees under s. 617.0122.
844 Section 22. For the purpose of incorporating the amendment
845 made by this act to section 617.0122, Florida Statutes, in a
846 reference thereto, paragraph (a) of subsection (6) of section
847 288.012, Florida Statutes, is reenacted to read:
848 288.012 State of Florida international offices; direct-
849 support organization.—The Legislature finds that the expansion
850 of international trade and tourism is vital to the overall
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851 health and growth of the economy of this state. This expansion
852 is hampered by the lack of technical and business assistance,
853 financial assistance, and information services for businesses in
854 this state. The Legislature finds that these businesses could be
855 assisted by providing these services at State of Florida
856 international offices. The Legislature further finds that the
857 accessibility and provision of services at these offices can be
858 enhanced through cooperative agreements or strategic alliances
859 between private businesses and state, local, and international
860 governmental entities.
861 (6)(a) The department shall establish and contract with a
862 direct-support organization, organized as a nonprofit under
863 chapter 617 and recognized under s. 501(c)(3) of the Internal
864 Revenue Code, to carry out the provisions of this section;
865 assist with the coordination of international trade development
866 efforts; and assist in development and planning related to
867 foreign investment, international partnerships, and other
868 international business and trade development. The organization
869 is exempt from paying fees under s. 617.0122.
870 Section 23. For the purpose of incorporating the amendment
871 made by this act to section 617.0122, Florida Statutes, in a
872 reference thereto, section 617.1807, Florida Statutes, is
873 reenacted to read:
874 617.1807 Conversion to corporation not for profit;
875 authority of circuit judge.—If the circuit judge to whom the
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876 petition and proposed articles of incorporation are presented
877 finds that the petition and proposed articles are in proper
878 form, he or she shall approve the articles of incorporation and
879 endorse his or her approval thereon; such approval shall provide
880 that all of the property of the petitioning corporation shall
881 become the property of the successor corporation not for profit,
882 subject to all indebtedness and liabilities of the petitioning
883 corporation. The articles of incorporation with such
884 endorsements thereupon shall be sent to the Department of State,
885 which shall, upon receipt thereof and upon payment of all taxes
886 due the state by the petitioning corporation, if any, issue a
887 certificate showing the receipt of the articles of incorporation
888 with the endorsement of approval thereon and of the payment of
889 all taxes to the state. Upon payment of the filing fees
890 specified in s. 617.0122, the Department of State shall file the
891 articles of incorporation, and from thenceforth the petitioning
892 corporation shall become a corporation not for profit under the
893 name adopted in the articles of incorporation and subject to all
894 the rights, powers, immunities, duties, and liabilities of
895 corporations not for profit under state law, and its rights,
896 powers, immunities, duties, and liabilities as a corporation for
897 profit shall cease and determine.
898 Section 24. For the purpose of incorporating the amendment
899 made by this act to section 617.0122, Florida Statutes, in a
900 reference thereto, subsection (4) of section 617.2006, Florida
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901 Statutes, is reenacted to read:
902 617.2006 Incorporation of labor unions or bodies. —Any
903 group or combination of groups of workers or wage earners,
904 bearing the name labor, organized labor, federation of labor,
905 brotherhood of labor, union labor, union labor committee, trade
906 union, trades union, union labor council, building trades
907 council, building trades union, allied trades union, central
908 labor body, central labor union, federated trades council, local
909 union, state union, national union, international union,
910 district labor council, district labor union, American
911 Federation of Labor, Florida Federation of Labor, or any
912 component parts or significant words of such terms, whether the
913 same be used in juxtaposition or with interspace, may be
914 incorporated under this act.
915 (4) Upon the filing of the articles of incorporation and
916 the petition, and the giving of such notice, the circuit judge
917 to whom such petition may be addressed shall, upon the date
918 stated in such notice, take testimony and inquire into the
919 admissions and purposes of such organization and the necessity
920 therefor, and upon such hearing, if the circuit judge shall be
921 satisfied that the allegations set forth in the petition and
922 articles of incorporation have been substantiated, and shall
923 find that such organization will not be harmful to the community
924 in which it proposes to operate, or to the state, and that it is
925 intended in good faith to carry out the purposes and objects set
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926 forth in the articles of incorporation, and that there is a
927 necessity therefor, the judge shall approve the articles of
928 incorporation and endorse his or her approval thereon. Upon the
929 filing of the articles of incorporation with its endorsements
930 thereupon with the Department of State and payment of the filing
931 fees specified in s. 617.0122, the subscribers and their
932 associates and successors shall be a corporation by the name
933 given.
934 Section 25. For the purpose of incorporating the amendment
935 made by this act to section 617.0502, Florida Statutes, in a
936 reference thereto, subsection (3) of section 617.0501, Florida
937 Statutes, is reenacted to read:
938 617.0501 Registered office and registered agent.—
939 (3) A registered agent appointed pursuant to this section
940 or a successor registered agent appointed pursuant to s.
941 617.0502 on whom process may be served shall each file a
942 statement in writing with the Department of State, in such form
943 and manner as shall be prescribed by the department, accepting
944 the appointment as a registered agent simultaneously with his or
945 her being designated. Such statement of acceptance shall state
946 that the registered agent is familiar with, and accepts, the
947 obligations of that position.
948 Section 26. For the purpose of incorporating the amendment
949 made by this act to section 617.0502, Florida Statutes, in a
950 reference thereto, paragraph (a) of subsection (1) of section
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951 617.0503, Florida Statutes, is reenacted to read:
952 617.0503 Registered agent; duties; confidentiality of
953 investigation records.—
954 (1)(a) Each corporation, foreign corporation, or alien
955 business organization that owns real property located in this
956 state, that owns a mortgage on real property located in this
957 state, or that transacts business in this state shall have and
958 continuously maintain in this state a registered office and a
959 registered agent and shall file with the Department of State
960 notice of the registered office and registered agent as provided
961 in ss. 617.0501 and 617.0502. The appointment of a registered
962 agent in compliance with s. 617.0501 or s. 617.0502 is
963 sufficient for purposes of this section if the registered agent
964 so appointed files, in the form and manner prescribed by the
965 Department of State, an acceptance of the obligations provided
966 for in this section.
967 Section 27. This act shall take effect July 1, 2024.
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HOUSE OF REPRESENTATIVES STAFF ANALYSIS
BILL #: CS/CS/HB 1219 Dental Insurance Claims
SPONSOR(S): Health & Human Services Committee, Insurance & Banking Subcommittee, Black
TIED BILLS: IDEN./SIM. BILLS: SB 892
REFERENCE ACTION ANALYST STAFF DIRECTOR or
BUDGET/POLICY CHIEF
1) Insurance & Banking Subcommittee 17 Y, 0 N, As CS Herrera Lloyd
2) Health & Human Services Committee 19 Y, 0 N, As CS Lloyd Calamas
3) Commerce Committee Herrera Hamon
SUMMARY ANALYSIS
Health insurance serves a vital role in protecting individuals from financial hardships caused by accidents,
illnesses, or disabilities. Health insurers and health care providers often interact with one another prior to the
delivery of care. An initial interaction often involves a provider seeking verification from an insurer that a patient
has active insurance coverage.
Dental insurance is subject to regulation by the Office of Insurance Regulation (OIR) and the Department of
Financial Services (DFS) for adherence to insurance laws and fair practices and by the Agency for Health Care
Administration (AHCA) for quality of care issues.
The federal Patient Protection and Affordable Care Act (Act) also provides consumer protections to those
individuals who purchase qualified health plans, and receive a federal premium tax credit towards that
coverage. These individuals also are eligible for extended grace periods for non-payment of premiums. Federal
regulations require coverage of services during a portion of that grace period.
If patients seek services for which they are not currently covered, the claim may be denied. For example, a
patient may seek services prior to that patient’s coverage effective date, after coverage terminates, or during
grace period when a patient has not yet paid the premium. A provider may have also verified that the patient
had coverage, provided services based on that verification, and in some cases, already received payment from
the insurer. Retroactive denials can result in the provider or the patient covering the financial costs, despite a
verification of eligibility.
The bill regulates dental services claims payment contract terms for insurers, including prepaid limited health
service organizations (PLHSOs), preferred provider organizations (PPOs), exclusive provider organizations
(EPOs), and health maintenance organizations (HMOs). The bill will:
Prohibit mandating credit card payments as the sole means of reimbursement for dental services.
Require written notice by insurers to dental providers of the initiation or change in payment methods or
fees for electronic fund transfers.
Allow the insurer to deny claims if the services were provided during the premium non-payment grace
period and the insurer informed the provider of such in response to an eligibility inquiry.
Establishes criteria for other claims denial under prior authorizations under specific circumstances.
Mandates OIR enforcement of claims payment provisions.
Establishes an application date for all contractual changes required by the bill as the date of the next
issuance, delivery, or renewal date of the impacted contract.
The bill may have a positive impact on state government revenue and local governments. It has an
indeterminate economic impact on the private sector and state government expenditures.
The bill provides an effective date of July 1, 2024.
This docum ent does not reflect the intent or official position of the bill sponsor or House of Representatives .
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FULL ANALYSIS
I. SUBSTANTIVE ANALYSIS
A. EFFECT OF PROPOSED CHANGES:
Background
Health Insurance
Health insurance is the insurance of human beings against bodily injury or disablement by accident or
sickness, including the expenses associated with such injury, disablement, or sickness. 1 Individuals
purchase health insurance coverage with the purpose of managing anticipated expenses related to
health and protecting themselves from unexpected medical bills or large health care costs. Many
individuals access health care coverage as a benefit of employment where the employer may
contribute towards the cost of the employee’s coverage while others may purchase coverage directly
from an insurance company or from places like the Act’s marketplace. 2 Health insurance may be
purchased on an individual basis or for an entire family.
Managed Care
Managed care is the most common delivery system for medical care today by health insurers. 3
Managed care systems combine the delivery and financing of health care services by limiting the
choice of doctors and hospitals.4 In return for this limited choice, however, medical care is usually less
costly to the patient due to lower out of pocket costs and the managed care network’s ability to control
the cost and utilization of health care services. Some common forms of managed care are preferred
provider organizations 5 (PPOs), exclusive provider organizations (EPOs),6 and health maintenance
organizations 7 (HMOs). For services to be covered at the lowest out of pocket cost to the insured, the
insured must utilize the managed care plan’s network of providers, except in cases of an emergency.
Different managed care companies have a variety of network and out of pocket cost arrangements
based on an individual’s or family’s needs.
Office of Insurance Regulation
The Office of Insurance Regulation (OIR) regulates specified insurance products, insurers and other
risk bearing entities in Florida, as well as licensing, rates, policy forms, market conduct, claims,
issuances of certificates of authority, solvency, viatical statements, premium financing, and
administrative supervision, as provided under the Florida Insurance Code.8 .The OIR is also authorized
to conduct market conduct examinations to determine compliance with applicable provisions of the
Insurance Code.9 For managed care entities to receive a license from OIR, the entity must meet
financial guidelines, benefits, and policy standards as established under ch. 690.154, F.A.C.
The Agency for Health Care Administration
1 S. 624.603, F.S.
2 See Healthcare.gov, How to apply and enroll, Apply for Health Insurance | HealthCare.gov (last visited Feb. 12, 2024).
3 Florida Department of Financial Services , Health Insurance and Health Maintenance Organizations, A Guide for Consumers, available
at: https://www.myfloridacfo.com/docs-sf/consumer-services-libraries/ (last visited Jan. 26, 2024).
4 Id.
5 S. 627.6471, F.S.
6 S. 627.6472, F.S.
7 Part I of ch. 641, F.S.
8 S. 20.121(3)(a), F.S.
9 The Code is comprised of chs. 624-632, 634-636, 641, 642, 648, and 651, F.S. See S. 624.3161, F.S.
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The Agency for Health Care Administration (AHCA) is the chief health policy and planning entity for the
state,10 and regulates the quality of care provided by managed care organizations under ch. 408, F.S.
Health Maintenance Organizations
Health Maintenance Organizations (HMOs) operate within a regulatory framework dually overseen by
the OIR and AHCA. To offer a commercial health insurance plan in Florida, an HMO must obtain a
license from the OIR11 and a Certificate of Authority from AHCA. An HMO is also required to become
accredited by one of the state’s approved organizations: National Committee for Quality Assurance,
National Association for Ambulatory Health Care, and American Accreditation HealthCare
Commission.12 Certificates of authority are granted by AHCA, if found to be compliant with the
certification process, on a county by county basis or for a portion of a county. 13
Most managed care enrollment in Florida is through an HMO. For the last quarterly submission to
AHCA in September 2023, Florida HMOs reported over 8.2 million enrollees as shown in the table
below.14
HMO Enrollment
Group Type Third Qtr 2023
Small Group 203,821
Large Group 476,358
Individual 1,909,616
Other 8,559
Healthy Kids 109,385
Medicaid 3,763,314
Medicare 1,763,708
Federal Employees 6,207
GRAND TOTAL: 8,240,968
These plans provide comprehensive healthcare services to members for a fixed monthly premium. 15
Members typically select a primary care physician from within the HMO's network, who serves as the
main point of contact for all healthcare needs and referrals to specialists. 16 HMOs maintain networks of
healthcare providers, including primary care physicians, specialists, hospitals, and other healthcare
facilities.17 Members are generally required to receive care from within the HMO's network, with
exceptions for emergencies or authorized out-of-network care, for services to be covered.18
10 AHCA, Ab out the Agency for Health Care Administration, https://ahca.myflorida.com/about-the-agency-for-health-care-administration
(last visited Jan. 26, 2024).
11 S. 641.21(1), F.S.
12 Agency for Health Care Administration, Health Care Provider Certificate Process, Health Care Provider Certificate Process
(myflorida.com) (last visited Feb. 13, 2024).
13 Id.
14 Florida Office of Insurance Regulation, Managed Care Report: Quarterly Data Summary as of Septemb er 30, 2023, managed-care-
report-2023-q3-15dec2023.pdf (floir.com) (last visited Feb. 13, 2024).
15 Medicare, What’s an HMO? https://www.medicare.gov/health-drug-plans/health-plans/. (last visited Jan. 26, 2024).
16 Id.
17 S. 641.19(12), F.S.
18 Medicare, What’s an HMO?, https://www.medicare.gov/health-drug-plans/health-plans/. (last visited Jan. 26, 2024).
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Florida law, under ch. 641, F.S., provides various consumer protections, including guaranteed access
to emergency services, coverage for essential health benefits 19 mandated by the Act,20 and the right to
appeal coverage decisions made by the HMO.21
Prepaid Limited Health Service Organizations
Prepaid limited health service organizations (PLHSOs) provide limited health services to enrollees
through an exclusive panel of providers in exchange for a prepayment authorized under ch. 636, F.S.
Limited health services include:
Ambulance;
Dental;
Vision;
Mental health;
Substance abuse;
Chiropractic;
Podiatric; and
Pharmaceutical.
Provider arrangements for PLHSOs are authorized in s. 636.035, F.S., and must comply with the
requirements in that section.
Preferred Provider Organizations
Authorized under ch. 627, F.S., a preferred provider organization (PPO) includes those licensed health
insurers who have contracted with providers or a group of providers, directly or indirectly for an
alternative or reduced rate of payment to provide a list of covered services to policyholders under the
insurer’s plan.22 A PPO provider must distribute to its policyholders a list of preferred providers and
make the list available on its website. Insureds have a choice of who may provide their services, but
usually pay a lower deductible and less other out of pockets costs if they choose a preferred provider. 23
Exclusive Provider Organizations
Exclusive provider organizations (EPOs) are another form of managed care that is also dually regulated
by the OIR and the AHCA. Regulated under chapter 627, F.S., an EPO is a group of providers who
have signed written contracts with an insurer to provide services to the insured’s subscribers. Before
the EPO can issue a policy; however, the AHCA must issue a Certificate of Authority which specifically
includes approval of the EPO’s plan of operation. In addition to a plan of operation, an EPO must
maintain a quality assurance program and the ability to resolve complaints and grievances from its
subscribers.24
Dental Insurance Plans
19 Under the Patient Protection and Affordable Care Act, all non -grandfathered plans in the non-group and small group private health
insurance markets must offer a core package of health insurance services known as the essential health benefits (EHBs). While not
specifying the details of these benefits and services, there are ten general categ ories including coverage for pediatric dental services.
Adult dental benefits are not an essential health benefit. See Essential Health Benefits, Healthcare.gov, Find out what Marketplace
health insurance plans cover | HealthCare.gov (last visited Feb. 13, 2024).
20 Patient Protection and Affordable Care Act, (March 23, 2010), P.L. 111 -141, as amended.
21 Consumer Services, Health Insurance & HMO Overview, https://www.myfloridacfo.com/division/consumers/understanding-
insurance/health-insurance-and-hmo-overview (last visited Feb. 12, 2024).
22 S. 627.6471, F.S.
23 Supra, note 30.
24 Agency for Health Care Administration, Exclusive Provider Organizations (EPOs), Exclusive Provider Organizations (EPOs)
(myflorida.com) (last visited Feb. 12, 2024).
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Dental insurance is a contract with an insurance company which provides benefits that can help lower
the costs of dental treatment.25 In exchange for a premium paid, dental insurance typically covers the
cost of preventive care, such as routine cleanings and check-ups, but other care such as restorative
treatments like fillings and extractions is usually covered at lower percentage rates, such as 80 percent,
requiring higher out of pocket costs by the patient.26 Some plans may also offer coverage for more
extensive procedures like root canals, crowns, and orthodontic treatment, although coverage levels and
limitations can vary widely depending on the specific plan.27 Many dental plans may also impose an
annual benefit maximum (dollar amount).
Consumers in Florida have the option to purchase dental insurance plans on the individual market or
through group plans offered by employers, other organizations, or on the Act’s marketplace.28 An Act’s
dental plan cannot be purchased separately; it can only be purchased if a health plan is bought at the
same time.29 Some of the marketplace plans offer health plans which include dental benefits under a
single premium amount. For children aged 18 or younger, dental coverage is an essential health benefit
and therefore, dental coverage must be available either as part of the health plan or offered as a
separate plan. While dental coverage must be available to children, it is not required that it be
purchased.30
The availability and cost of dental insurance coverage can vary depending on factors such as age,
location, and the extent of coverage desired.31 In addition to traditional dental insurance plans, some
employees may also have access to dental discount plans, health reimbursement accounts, flexible
spending accounts, or health savings accounts (HSAs) that can help employees save for major and
minor dental expenses and offset the cost of dental care.32 Some of these options allow employees to
deposit funds pre-tax through pay-roll deductions to potentially receive a tax break on predictable out of
pocket costs.
Insurer Contracts with Dentists
A contract between an insurer and dentist licensed under ch. 466, F.S., for the provision of services to
a subscriber of the HMO, PPO, PLHSO, or other insurer may not require the dentist to provide services
to the subscriber of the HMO at a fee set by the HMO unless such services are covered services under
the applicable contract.33 The term “covered services” means dental care services for which a
reimbursement is available under the subscriber’s contract, or for which a reimbursement would be
available but for the application of contractual limitations, such as deductibles, coinsurance, waiting
periods, annual or lifetime maximums, frequency limitations, alternative benefit payments, or any other
limitation.34 Currently, if an insured patient exhausts his benefits or reaches a limitation, but the contract
is still active, the dental patient is entitled to pay the price negotiated between the plan and the dental
provider for that covered service, not a fee unilaterally set by the dental provider.
Health Insurance Contracts
All health insurance policies issued in the state of Florida, with the exception of certain self-insured
policies,35 must meet certain requirements that are detailed throughout the Florida Insurance Code. At
a minimum, insurance policies must specify premium rates, services covered, and effective dates.
25 Humana, What is dental insurance?” How Does Dental Insurance Work? | Humana (last visited Feb. 12, 2024).
26
HealthPartners, What Does Dental Insurance Cover?, https://www.healthpartners.com/blog/what-does-dental-insurance-cover/ (last
visited Jan. 26, 2024).
27 Id.
28 Health Care, Dental Coverage in the Marketplace, https://www.healthcare.gov/coverage/dental-coverage/ (last visited Feb. 12, 2024).
29 Id.
30 Id.
31 Id.
32 MyBenefits, Health Savings Account, https://www.mybenefits.myflorida.com/health/savings_and_spending_accounts (last visited Jan.
26, 2024).
33 S. 641.315(11), F.S.
34 S. 641.315(11), F.S.
35 The Employment Retirement Security Act of 1974 (ERISA). 29 U.S.C. ch 18 § 1001 et seq. ERISA regulates certain self-insured
plans, which represent approximately 50 percent of the insureds in Florida.
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Insurers must document the time when a policy takes effect and the period during which the policy
remains in effect.36
Non-Payment of Premiums
Responsibilities of insured patients are also reflected in insurance contracts. Contracts set premium
payment schedules and require that payments must be made in a timely fashion. In cases where this
requirement is not met, any health insurer or HMO may cancel coverage for nonpayment of premiums
after a statutory grace period.37
Before cancellation can occur, however, covered patients are protected by grace periods that extend
the time frame in which premium payments may be submitted. A grace period is a period of time
following the due date of a premium payment in which the insurance policy remains in force, even if the
premium payment has not been made. The grace periods for policies or contracts issued in Florida are
set in the Insurance Code,38 and vary based on the premium payment schedule.
Pursuant to ss. 627.608 and 641.31, F.S., insurance policies and health maintenance contracts stay in
force during grace periods. If the insurer or HMO does not receive the full payment of the premium by
the end of the grace period, coverage terminates as of the grace period start date and the insurer or
HMO may deny any medical claims incurred during the grace period. When a claim is denied at a later
date, it is referred to as a retroactive denial.
The Insurance Code is silent on whether the insurer or HMO may advise a health care provider that a
patient has not paid the applicable premium, and that the policy or health maintenance contract may be
terminated in the future, possibly resulting in a retroactive claim denial.
Prompt Payment
Current law governs prompt payment of provider claims submitted to insurers and HMOs, including
Medicaid managed care plans, under ss. 627.6131 and 641.3155, F.S., respectively.39 These
provisions detail the rights and responsibilities of insurers, HMOs, and providers for the payment of
medical claims. The statutes provide a process and timeline for providers to pay, deny, or contest the
claim, and also prohibit an insurer or HMO from retroactively denying a claim because of the ineligibility
of an insured or subscriber more than one year after the date the claim is paid.40
Federal Patient Protection and Affordable Care Act
The Act introduced a set of claims-related requirements for insurers offering plans through the
federally-facilitated and state-based insurance exchanges. The Act guarantees access to coverage and
mandates certain essential health benefits, among other directives. 41 To address affordability issues,
federal premium tax credits and cost-sharing subsidies are available to assist eligible low and
moderate-income individuals to purchase qualified health plans on a state or federal exchange. 42
36 S. 627.413(1)(d), F.S.
37 SS. 627.6043(1) and 641.3108(2), F.S.
38 SS. 627.608 and 641.31(15), F.S.; The grace period of an individual policy must be a minimum of 7 days for weekly premium; 10
days for a monthly premium; and 31 days for all other periods. The grace period of a HMO contract must be at least 10 days. For group
policies, if cancellation is due to nonpayment of premium, the insurer may not retroactively cancel the policy to a date prio r to the date
that notice of cancellation was provided to the policyholder unless the insurer mails notice of cancellati on to the policyholder prior to 45
days after the date the premium was due. Such notice must be mailed to the policyholder's last address as shown by the record s of the
insurer and may provide for a retroactive date of cancellation no earlier than midnight of the date that the premium was due.
39 The prompt pay provisions apply to HMO contracts and major medical policies offered by individual and group insurers licensed
under ch. 624, F.S., including preferred provider policies and an exclusive provider orga nization, and individual and group contracts that
only provide direct payments to dentists.
40 SS. 627.6131(11) and 641.3155(10), F.S.
41 The Patient Protection and Affordable Care Act (Pub. Law No. 111 –148) was enacted on March 23, 2010. The Health Care and
Education Reconciliation Act of 2010 (Pub. Law No. 111–152), which amended several provisions of the PPACA, was enacted on
March 30, 2010. Together these two Acts are known as PPACA.
42 In general, individuals and families may be eligible for the premium tax credit if their household income for the year is at least 100
percent but no more than 400 percent of the federal poverty line (FPL) for their family size. For residents of one of the 48 contiguous
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According to the 2023 Market Report by the Florida Health Insurance Advisory Board, total enrollment
in Florida’s commercial health insurance market is 4,671,680 individuals which represents an inc rease
of over eight percent from the prior year.43 The largest group in this market has individual coverage,
over 2.9 million Floridians, an increase of 16 percent over 2022, and the vast majority of this coverage
has been purchased through the ACA marketplace.44 For the 2024 Open Enrollment period, Florida’s
total number of ACA marketplace plan selections from new and continuing consumers was 4,211,902
plan selections, the highest number of selection among all states, federal or state based exchanges. 45
Non-Payment of Premiums – Federal Law
All qualified health plans (QHPs)46 in the ACA marketplace are required to establish standard policies
for the termination of enrollees due to the non-payment of premiums. The policy must be applied
uniformly to enrollees in similar situations.47 If an enrollee is delinquent with a premium payment, the
QHP must notify the enrollee of the delinquency promptly and without undue delay, within 10 business
days of the date from which the insurer should have discovered the delinquency. 48
Individual health insurance plans purchased via the exchanges with a federal premium tax credit are
not subject to the grace periods in Florida law. Instead, the Act requires insurers and HMOs to provide
subscribers in these plans, a grace period of at least three consecutive months before cancelling the
policy or contract if the enrollee previously paid at least a binder payment or the first month’s premium
payment.49 The binder payment is due no earlier than the coverage effective date and no later than 30
calendar days from the coverage effective date.50
During the first month of the grace period, the insurer must pay all appropriate claims for services
provided.51 During the grace period, the insurer must also notify the Department of Health and Human
Services (HHS) of the non-payment and notify providers of the possibility for denied claims when an
enrollee is in the second and third months of a grace period. 52 For the second and third months, an
insurer may pend claims and then must notify affected providers that an enrollee has lapsed in his or
her payment of premiums and there is a possibility the insurer may deny the payment of claims
incurred during the second and third months.53
Payment Methods for Health Care Claims
In March 2022, HHS issued guidance for covered entities 54 on the payment of health care claims by
health plans through the use of virtual credit cards (VCC) and whether these transactions met the
federal regulatory standards for electronic transactions. In model legislation, the National Council of
states or Washington, D.C., 100 percent of the FPL for a family of 4 is $31,200; at 400 percent of the FPL for a family of 4 is $124,800.
See U.S. Department of Health and Human Services, Office of the Assistant Secretary for Planning and Evaluation, HHS Poverty
Guidelines for 2024, available at: detailed-guidelines-2024.pdf (hhs.gov) (last visited Feb. 12, 2024).
43 Florida Health Insurance Advisory Board, 2023 Market Report, fhiab -2023-market-report---adopted-(12-15-23).pdf (floir.com) (last
visited Feb. 13, 2024).
44 Id.
45
Centers for Medicare and Medicaid Services, Marketplace 2024 Open Enrollment Period Report: Final National Snapshot (January
24, 2024), available at Marketplace 2024 Open Enrollment Period Report: Final National Snapshot | CMS (last visited Feb. 13, 2024).
46 A “qualified health plan” is a plan that has been certified to meet the minimum standards of participation under 45 CFR §156. 200 and
is recognized as a QHP by the exchanges through which the plan is offered. Those standards include compliance with Exchange
process and procedures, benefit design standards, licensure compliance in state where products are sold, in good standing in states
where licensed products are sold, implementation of a quality improvement strategy or strategies consistent with the Act’s goals,
payment of applicable user fees, and compliance with reinsurance, risk corridors, and risk adjustment requirements.
47 45 CFR §156.270(c).
48 45 CFR §156.270 (f).
49 45 CFR §156.270(d).
50 Centers for Medicare and Medicaid Services, Health Plan Coverage Effectuation Web inar Training: Payment, Grace Periods, and
Termination (Navigator Training materials – January 2024), available at Health Plan Coverage Effectuation_Webinar_Jan_2024
(cms.gov) (last visited Feb. 12, 2024).
51 45 CFR §156.270(d)(1).
52 45 CFR §156.270(d).
53 45 CFR §156.270(d)(3).
54 A “covered entity” is defined at 45 CFR §160.103, as a health plan, a he alth plan clearinghouse, or a health care provider who
transmits any health information in electronic form in connection with a transaction.
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Insurance Legislators has defined VCCs as an online credit card payment where no physical card is
present and the number expires upon use at a credit card terminal or internet portal. 55 Instead of
sending a paper check or an electronic payment transmission, some health plans have paid providers
by sending these single use credit cards requiring the provider to then manually enter VCC numbers in
order to receive payment. A transaction fee is incurred for each payment processed. For ACH
transaction, the fee per item is based on volume, and can average in 2024 around $0.35. 56 For
transactions by VCC, fees have been quoted as high as five percent. 57 HHS guidance concluded that
payment by VCC was permitted; however, to meet the standards, the health plans must maintain
certain privacy and confidentiality and transaction standards, including a one-to-one relationship
between each electronic remittance advice (ERA) and electronic funds transfer (EFT).58 Once a plan
submits a payment using the required standard with the specifications, any intermediaries acting on
behalf of the health plan, including health care clearinghouses, financial institutions, and payment
vendors, cannot alter, amend, or omit any information.59
Federal regulations also require that if a health plan pays providers via a VCC, the provider must be
able to continue to request payments via EFT through the Automated Clearinghouse (ACH) Network
using regulatory and ERA transaction standards, and the health plan is required to comply with those
requests.60 When a provider makes this request, the health plan must comply, regardless of whether
the provider is in the plan’s network or not or otherwise not affiliated with the plan.61
Many VCC vendors offer additional or value added services directly or through business associates to
dental providers for additional fees above the transaction fees. These additional items may include
services such as assistance with re-associating the EFT file with the ERA file for reconciliation or other
purposes, customer service functions, hotline numbers, special reporting or output files, billing services,
and eligibility verification processes. Federal regulations prohibit a health plan from requiring a provider
to agree to any value added services as a condition of payment or inclusion of the required
reassociation services using the HHS adopted EFT and ERA standards. 62
If the provider has made a request to a health plan to conduct transactions via EFT and ERA using the
adopted standards, and the provider believes that the health plan has not used or complied with those
standards or operating rules, or the insurer has required the provider to pay for additional services
declined by the provider as a condition of claims payment, the provider may file a complaint against the
health plan with the federal Centers for Medicare and Medicaid Services. 63
Regulation of Dentists
Dentists are licensed by the Board of Dentistry within the Department of Health under ch. 466, F.S.
A dentist is licensed to examine, diagnose, treat, and care for conditions within the human oral cavity
and its adjacent tissues and structures.64 Dentists may delegate certain tasks 65 to dental hygienists and
dental assistants, but a patient’s “dentist of record” retains primary responsibility for all dental treatment
on the patient.66
55
National Council of Insurance Legislators, NCOIL Adopts Transparency in Dental Benefits Contracting Model Act (D ecember 27,
2020), available at Transparency-in-Dental-Benefits-2020_final.pdf (ncoil.org) (last visited Feb. 15, 2024).
56 The Federal Reserve, FedACH Services 2024 Fee Schedule, available at https://www.frbservices.org/resources/fees/ach-2024 (last
visited Feb. 15. 2024).
57
Cezary Podkul, The Hidden Fee Costing Doctors Millions Every Year, ProPublica (August 14, 2023), available at
https://www.propublica.org/article/the-hidden-fee-costing-doctors-millions-every-year (last visited Feb. 15, 2024).
58 Department of Health and Human Services, Go to Guidance: Guidance on health plans’ payment of health care claims using Virtual
Credit Cards (VCCs) and adopted HIPAA standards for Health Care Electronic Funds Transfer (EFT) and Remittance Advice (ERA)
transactions; 45 CFR §§162.1601 and 162.1602(d), available at Virtual Credit Cards (VCCs) and Electronic Funds Transfers (EFT)
Guidance Letter (cms.gov) (last visited Feb. 12, 2024).
59 Id.
60 Id. and 45 CFR §162.925(a)(1).
61 Id.
62 Id.
63 Id.
64 S. 466.003(2)-(3), F.S.
65 S. 466.024, F.S.
66 S. 466.018, F.S.
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Any person wishing to practice dentistry must meet specified requirements and apply to the
Department of Health (DOH) for licensure. Applicants must sit for and pass three examinations prior to
licensure:67
The National Board of Dental Examiners dental examination (NBDE);
A practical examination, which is the American Dental Licensing Examination developed by the
American Board of Dental Examiners, Inc.;68 and
A written examination on Florida laws and rules regulating the practice of dentistry and dental
hygiene.
To qualify to take the Florida dental licensure examination, an applicant must be 18 years of age or
older, be a graduate of a dental school accredited by the American Dental Association or be a student
in the final year of a program at an accredited institution, and have successfully completed the NBDE
dental examination.69
Once licensed, dentists must maintain professional liability insurance or provide proof of financial
responsibility of an equal amount. If the dentist obtains professional liability insurance, the coverage
must be at least $100,000 per claim, with a minimum annual aggregate of at least $300,000. 70
Alternatively, a dentist may maintain an unexpired, irrevocable letter of credit in the amount of $100,000
per claim, with a minimum aggregate availability of credit of at least $300,000. 71 The professional
liability insurance must provide coverage for the actions of any dental hygienist supervised by the
dentist.72 However, a dentist may be exempt from maintaining professional liability insurance if he or
she:73
Practices exclusively for the federal government or the State of Florida or its agencies or
subdivisions;
Is not practicing in this state;
Practices only in conjunction with his or her teaching duties at an accredited school of dentistry
or in its main teaching hospitals; or
Demonstrates to the Board that he or she has no malpractice exposure in this state.
There are currently 17,193 dentists with active licenses to practice in Florida,74 and 41 out-of-state
registered telehealth dentists.75
Effects of the Bill
The bill regulates contracts between dental providers and insurers, including HMOs, PPOs, EPOs, and
PLHSOs.
Regulation of Payment Methods
The bill prohibits health insurers under chs. 627, 636, and 641, F.S., from requiring reimbursement of
claims through credit card payments as the only acceptable method of payment in a contract with a
dentist licensed under ch. 466, F.S. Currently, state law is silent on acceptable forms of payment
between a health plan and a provider in a private contract; however federal law has established specific
standards for covered entities, which includes both the plan and the provider, as to how such
transaction must be carried out, and what privacy and security specifications apply to the information
involved. Federal regulations have also prohibited covered entities from exclusively requiring payment
67 S. 466.006, F.S.
68 Rule 64B5-2.013, F.A.C.
69 S. 466.006(2), F.S.
70 Rule 64B5-17.011(1), F.A.C.
71 Rule 64B5-17.011(2), F.A.C.
72 Rule 64B5-17.011(4), F.A.C.
73 Rule 64B5-17.011(3), F.A.C.
74 See, Department of Health License Verification web search. Available at https://mqa-
internet.doh.state.fl.us/MQASearchServices/HealthCareProviders (last visited Jan. 26, 2024).
75 Id.
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via VCCs, and require that a health plan honor a provider’s request for payment via the ACH and EFT
process.
If initiating or changing the payment method to the dental provider using the EFT process, including but
not limited to VCCs, the bill establishes a requirement for these insurers to provide written notice to
dentists outlining any associated fees, and presenting alternative payment methods with clear
instructions for how to select an alternative method of payment, if any.
Claims Denial
Under the bill, an insurer may not deny any claim submitted by a dentist licensed under ch. 466, F.S.,
for procedures specifically included in a prior authorization, unless:
Benefit limitations were reached subsequent to the issuance of the prior authorization;
Inadequate documentation was submitted to support the originally authorized claim;
Changes in the patient's condition or provision of new procedures post-authorization rendered
the prior authorized procedure medically unnecessary;
Changes in the patient's condition or provision of new procedures would have required
disapproval under the terms and conditions of the patient's plan at the time of prior
authorization;
Services were provided during the grace period established under an applicable federal or state
law or regulation, and the dental insurer notified the provider that the patient was in the grace
period when the provider requested eligibility or enrollment verification from the dental insurer, if
such a request was made; or
Responsibility for the claim belonged to another payor for payment, prior payment was already
made to the dentist for the procedures in question, request was a fraudulent claim submission,
or patient shown as ineligible at the time of service.
Existing state law does not establish which party is responsible for claims incurred when verification of
eligibility or prior authorization is received by a dental provider for a specific service from an insurer, the
service is provided, and afterwards, the claim is denied because the patient was not covered at the time
of service. The patient may not have been covered for a variety of reasons, such as a timing difference
between when the dental provider’s office called to verify eligibility and received a prior authorization for
the service, or the patient may have been in the premium grace period.
The bill limits the circumstances in which a claim could be denied to situations when benefits were
exhausted, the service was no longer medically necessary, there are clinical issues, suspicion of fraud,
or the services were provided during a grace period and the insurer notified the provider when the
provider sought verification of the patient’s eligibility or enrollment. In cases where prior authorization
was granted, the patient had not exceeded his or her benefits, and the covered services were still
medically necessary, the claim could not be denied.
Compliance
The bill is applicable to contracts delivered, issued, or renewed on or after January 1, 2025.
The bill authorizes OIR to enforce its provisions, and authorizes the FSC to adopt rules for
implementation.
The bill provides an effective date of July 1, 2024.
B. SECTION DIRECTORY:
Section 1: Amends s. 627.6131, F.S., relating to payment of claims.
Section 2: Amends s. 636.032, F.S., relating to acceptable payments.
Section 3: Amends s. 636.035, F.S., relating to provider arrangements.
Section 4: Amends s. 641.315, F.S., relating to provider contracts.
Section 5: Provides an effective date of July 1, 2024.
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II. FISCAL ANALYSIS & ECONOMIC IMPACT STATEMENT
A. FISCAL IMPACT ON STATE GOVERNMENT:
1. Revenues:
None.
2. Expenditures:
None. The Division of State Group Insurance within the Department of Management Services
asserts that the bill will not increase costs for the state employee group health plan. 76
B. FISCAL IMPACT ON LOCAL GOVERNMENTS:
1. Revenues:
None.
2. Expenditures:
The bill may negatively impact local government expenditures through potential increases in
premium costs, resulting from any additional payments for dental claims which would have been
previously denied but for which denial is prohibited by the bill, and from increased administrative
costs. The amount of impact, if any, depends on the level of coverage and the practices of each
dental plan.
C. DIRECT ECONOMIC IMPACT ON PRIVATE SECTOR:
The bill may have a negative economic impact on the insurance industry, depending on the amount
and type of claims denial activity in which they engage, and also due to increased administrative costs.
The bill may have a positive economic impact on dental care providers, which may experience
increased revenue under the bill’s claims payment regulations.
D. FISCAL COMMENTS:
None.
III. COMMENTS
A. CONSTITUTIONAL ISSUES:
1. Applicability of Municipality/County Mandates Provision:
Not Applicable. This bill does not appear to require counties or municipalities to spend funds or take
action requiring the expenditures of funds; reduce the authority that counties or municipalities have
to raise revenues in the aggregate; or reduce the percentage of state tax shared with counties or
municipalities.
2. Other:
None.
B. RULE-MAKING AUTHORITY:
76 Email correspondence with Jake Holmgreen, Department of Management Services, Jan. 29, 2024, on file with the Health and Human
Services Committee.
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The bill provides sufficient rulemaking authority to the FSC to implement its provisions. OIR has
sufficient rulemaking authority under current law to implement the bill.
C. DRAFTING ISSUES OR OTHER COMMENTS:
None.
IV. AMENDMENTS/COMMITTEE SUBSTITUTE CHANGES
On February 1, 2024, the Insurance & Banking Subcommittee considered the bill, adopted an
amendment, reported the bill favorably as a committee substitute. The amendment removed a
proposed authorization for health insurers to charge a fee for value-added services related to ACH
transfers.
On February 15, 2024, the Health and Human Services Committee considered the bill, adopted an
amendment, and reported the bill favorably as a committee substitute. The amendment:
Removed a provision allowing dental providers to establish alternative fee schedules for
covered services once an insured individual reaches certain contractual limitations.
Permitted the charging of reasonable fees for value added services related to ACH transactions
if the dental provider has consented to those fees.
Modified the application date for contractual changes required by the bill to the date of the next
issuance, delivery, or renewal and removes current contract nullification language.
Removed the bill’s insurer knowledge and reasonable care requirement related to the authority
to deny a claim due to patient’s ineligibility on the procedure date.
Allows for a claim denial if the services were provided during the premium non-payment grace
period and the insurer informed the provider of such in response to an eligibility inquiry.
The analysis is drafted to the committee substitute as passed by the Health and Human Services
Committee.
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F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
CS/CS/HB 1219 2024
1 A bill to be entitled
2 An act relating to dental insurance claims; amending
3 s. 627.6131, F.S.; prohibiting a contract between a
4 health insurer and a dentist from containing certain
5 restrictions on payment methods; requiring a health
6 insurer to notify a dentist if initiating or changing
7 electronic funds transfer payment methods for dental
8 claims; prohibiting a health insurer from charging a
9 fee to transmit a payment to a dentist through an
10 automated clearinghouse transfer unless the dentist
11 has consented to such fee; authorizing a health
12 insurer to charge certain fees; providing
13 applicability; authorizing the Office of Insurance
14 Regulation of the Financial Services Commission to
15 enforce certain provisions; authorizing the commission
16 to adopt rules; prohibiting a health insurer from
17 denying claims for procedures included in a prior
18 authorization; providing exceptions; providing
19 applicability; authorizing the office to enforce
20 certain provisions; authorizing the commission to
21 adopt rules; amending s. 636.032, F.S.; prohibiting a
22 contract between a prepaid limited health service
23 organization and a dentist from containing certain
24 restrictions on payment methods; requiring a prepaid
25 limited health service organization to notify a
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26 dentist if initiating or changing electronic funds
27 transfer payment methods for dental claims;
28 prohibiting a prepaid limited health service
29 organization from charging a fee to transmit a payment
30 to a dentist through an automated clearinghouse
31 transfer unless the dentist has consented to such fee;
32 authorizing a prepaid limited health service
33 organization to charge certain fees; providing
34 applicability; authorizing the office to enforce
35 certain provisions; authorizing the commission to
36 adopt rules; amending s. 636.035, F.S.; prohibiting a
37 prepaid limited health service organization from
38 denying claims for procedures included in a prior
39 authorization; providing exceptions; providing
40 applicability; amending s. 641.315, F.S.; prohibiting
41 a contract between a health maintenance organization
42 and a dentist from containing certain restrictions on
43 payment methods; requiring a health maintenance
44 organization to notify a dentist if initiating or
45 changing electronic funds transfer payment methods for
46 dental claims; prohibiting a health maintenance
47 organization from charging a fee to transmit a payment
48 to a dentist through an automated clearinghouse
49 transfer unless the dentist has consented to such fee;
50 authorizing a health maintenance organization to
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51 charge certain fees; providing applicability;
52 authorizing the office to enforce certain provisions;
53 authorizing the commission to adopt rules; prohibiting
54 a health maintenance organization from denying claims
55 for procedures included in a prior authorization;
56 providing exceptions; providing applicability;
57 authorizing the office to enforce certain provisions;
58 authorizing the commission to adopt rules; providing
59 an effective date.
60
61 Be It Enacted by the Legislature of the State of Florida :
62
63 Section 1. Subsections (20) and (21) are added to section
64 627.6131, Florida Statutes, to read:
65 627.6131 Payment of claims.—
66 (20)(a) A contract between a health insurer and a dentist
67 licensed under chapter 466 for the provision of services to an
68 insured may not require credit card payment as the only
69 acceptable method for payments from the health insurer to the
70 dentist.
71 (b) If initiating or changing payments to a dentist using
72 electronic funds transfer payments, including, but not limited
73 to, virtual credit card payments, a health insurer shall notify
74 the dentist in writing of all of the following:
75 1. The fees, if any, associated with the electronic funds
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76 transfer.
77 2. The available methods of payment of claims by the
78 health insurer, with clear instructions to the dentist on how to
79 select an alternative payment method, if any.
80 (c) A health insurer that pays a claim to a dentist
81 through an automated clearinghouse transfer may not charge a fee
82 solely to transmit the payment to the dentist unles s the dentist
83 has consented to the fee. A health insurer may charge reasonable
84 fees for value-added services related to the transfer,
85 including, but not limited to, transaction management, data
86 management, and portal services.
87 (d) This subsection applies to contracts delivered,
88 issued, or renewed on or after January 1, 2025.
89 (e) The office has all rights and powers to enforce this
90 subsection as provided by s. 624.307.
91 (f) The commission may adopt rules to implement this
92 subsection.
93 (21)(a) A health insurer may not deny any claim
94 subsequently submitted by a dentist licensed under chapter 466
95 for procedures specifically included in a prior authorization
96 unless at least one of the following circumstances applies for
97 each procedure denied:
98 1. Benefit limitations, such as annual maximums and
99 frequency limitations not applicable at the time of the prior
100 authorization, are reached subsequent to issuance of the prior
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101 authorization.
102 2. The documentation provided by the person submitting the
103 claim fails to support the claim as originally authorized.
104 3. Subsequent to the issuance of the prior authorization,
105 new procedures are provided to the patient or a change in the
106 patient's condition occurs such that the prior authorized
107 procedure would no longer be considered medically necessary,
108 based on the prevailing standard of care.
109 4. Subsequent to the issuance of the prior authorization,
110 new procedures are provided to the patient or a change in the
111 patient's condition occurs such that the prior authorized
112 procedure would at that time have required disapproval pursuant
113 to the terms and conditions for coverage under the patient's
114 plan in effect at the time the prior authorization was issued.
115 5. The denial of the claim was due to one of the
116 following:
117 a. Another payor is responsible for payment.
118 b. The dentist has already been paid for the procedures
119 identified in the claim.
120 c. The claim was submitted fraudulently, or the prior
121 authorization was based in whole or material part on erroneous
122 information provided to the health insurer by the dentist,
123 patient, or other person not related to the insurer.
124 d. The person receiving the procedure was not eligible to
125 receive the procedure on the date of service.
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126 e. The services were provided during the grace period
127 established under s. 627.608 or applicable federal regulations,
128 and the health insurer notified the dentist that the patient was
129 in the grace period when the dentist requested eligibility or
130 enrollment verification from the health insurer, if such request
131 was made.
132 (b) This subsection applies to contracts delivered,
133 issued, or renewed on or after January 1, 2025.
134 (c) The office has all rights and powers to enforce this
135 subsection as provided by s. 624.307.
136 (d) The commission may adopt rules to implement this
137 subsection.
138 Section 2. Section 636.032, Florida Statutes, is amended
139 to read:
140 636.032 Acceptable payments.—
141 (1) Each prepaid limited health service organization may
142 accept from government agencies, corporations, groups, or
143 individuals payments covering all or part of the cost of
144 contracts entered into between the prepaid limited health
145 service organization and its subscribers.
146 (2)(a) A contract between a prepaid limited health service
147 organization and a dentist licensed under chapter 466 for the
148 provision of services to a subscriber may not require credit
149 card payment as the only acceptable method for payments from the
150 prepaid limited health service organization to the dentist.
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151 (b) If initiating or changing payments to a dentist using
152 electronic funds transfer payments, including, but not limited
153 to, virtual credit card payments, a prepaid limited health
154 service organization shall notify the dentist in writing of all
155 of the following:
156 1. The fees, if any, associated with the electronic funds
157 transfer.
158 2. The available methods of payment of claims by the
159 prepaid limited health service organization, with clear
160 instructions to the dentist on how to select an alternative
161 payment method, if any.
162 (c) A prepaid limited health service organization that
163 pays a claim to a dentist through an automated clearinghouse
164 transfer may not charge a fee solely to transmit the payment to
165 the dentist unless the dentist has consented to the fee. A
166 prepaid limited health service organization may charge
167 reasonable fees for value-added services related to the
168 transfer, including, but not limited to, transaction management,
169 data management, and portal services.
170 (d) This subsection applies to contracts delivered,
171 issued, or renewed on or after January 1, 2025.
172 (e) The office has all rights and powers to enforce this
173 subsection as provided by s. 624.307.
174 (f) The commission may adopt rules to implement this
175 subsection.
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176 Section 3. Subsection (15) is added to section 636.035,
177 Florida Statutes, to read:
178 636.035 Provider arrangements.—
179 (15)(a) A prepaid limited health service organization may
180 not deny any claim subsequently submitted by a dentist licensed
181 under chapter 466 for procedures specifically included in a
182 prior authorization unless at least one of the following
183 circumstances applies for each procedure denied:
184 1. Benefit limitations, such as annual maximums and
185 frequency limitations not applicable at the time of the prior
186 authorization, are reached subsequent to issuance of the prior
187 authorization.
188 2. The documentation provided by the person submitting the
189 claim fails to support the claim as originally authorized.
190 3. Subsequent to the issuance of the prior authorization,
191 new procedures are provided to the patient or a change in the
192 patient's condition occurs such that the prior authorized
193 procedure would no longer be considered medically necessary,
194 based on the prevailing standard of care.
195 4. Subsequent to the issuance of the prior authorization,
196 new procedures are provided to the patient or a change in the
197 patient's condition occurs such that the prior authorized
198 procedure would at that time have required disapproval pursuant
199 to the terms and conditions for coverage under the patient's
200 plan in effect at the time the prior authorization was issued.
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201 5. The denial of the dental service claim was due to one
202 of the following:
203 a. Another payor is responsible for payment.
204 b. The dentist has already been paid for the procedures
205 identified in the claim.
206 c. The claim was submitted fraudulently, or the prior
207 authorization was based in whole or material part on erroneous
208 information provided to the prepaid limited health service
209 organization by the dentist, patient, or other person not
210 related to the organization.
211 d. The person receiving the procedure was not eligible to
212 receive the procedure on the date of service.
213 e. The services were provided during the grace period
214 established under s. 636.016 or applicable federal regulations,
215 and the prepaid limited health service organization notified the
216 dentist that the patient was in the grace period when the
217 dentist requested eligibility or enrollment verification from
218 the prepaid limited health service organization, if such request
219 was made.
220 (b) This subsection applies to contracts delivered,
221 issued, or renewed on or after January 1, 2025.
222 Section 4. Subsections (13) and (14) are added to section
223 641.315, Florida Statutes, to read:
224 641.315 Provider contracts.—
225 (13)(a) A contract between a health maintenance
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226 organization and a dentist licensed under chapter 466 for the
227 provision of services to a subscriber of the health maintenance
228 organization may not require credit card payment as the only
229 acceptable method for payments from the health maintenance
230 organization to the dentist.
231 (b) If initiating or changing payments to a dentist using
232 electronic funds transfer payments, including, but not limited
233 to, virtual credit card payments, a health maintenance
234 organization shall notify the dentist in writing of all of the
235 following:
236 1. The fees, if any, associated with the electronic funds
237 transfer.
238 2. The available methods of payment of claims by the
239 health maintenance organization, with clear instructions to the
240 dentist on how to select an alternative payment method, if any.
241 (c) A health maintenance organization that pays a claim to
242 a dentist through an automated clearinghouse transfer may not
243 charge a fee solely to transmit the payment to the dentist
244 unless the dentist has consented to the fee. A health
245 maintenance organization may charge reasonable fees for value -
246 added services related to the transfer, including, but not
247 limited to, transaction management, data management, and portal
248 services.
249 (d) This subsection applies to contracts delivered,
250 issued, or renewed on or after January 1, 2025.
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251 (e) The office has all rights and powers to enforce this
252 subsection as provided by s. 624.307.
253 (f) The commission may adopt rules to implement this
254 subsection.
255 (14)(a) A health maintenance organization may not deny any
256 claim subsequently submitted by a dentist licensed under chapter
257 466 for procedures specifically included in a prior
258 authorization unless at least one of the following circumstances
259 applies for each procedure denied:
260 1. Benefit limitations, such as annual maximums and
261 frequency limitations not applicable at the time of the prior
262 authorization, are reached subsequent to issuance of the prior
263 authorization.
264 2. The documentation provided by the person submitting the
265 claim fails to support the claim as originally authorized.
266 3. Subsequent to the issuance of the prior authorization,
267 new procedures are provided to the patient or a change in the
268 patient's condition occurs such that the prior authorized
269 procedure would no longer be considered medically necessary,
270 based on the prevailing standard of care.
271 4. Subsequent to the issuance of the prior authorization,
272 new procedures are provided to the patient or a change in the
273 patient's condition occurs such that the prior authorized
274 procedure would at that time have required disapproval pursuant
275 to the terms and conditions for coverage under the patient's
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276 plan in effect at the time the prior authorization was issued.
277 5. The denial of the claim was due to one of the
278 following:
279 a. Another payor is responsible for payment.
280 b. The dentist has already been paid for the procedures
281 identified in the claim.
282 c. The claim was submitted fraudulently, or the prior
283 authorization was based in whole or material part on erroneous
284 information provided to the health maintenance organization by
285 the dentist, patient, or other person not related to the
286 organization.
287 d. The person receiving the procedure was not eligible to
288 receive the procedure on the date of service.
289 e. The services were provided during the grace period
290 established under s. 641.31 or applicable federal regulations,
291 and the health maintenance organization notified the dentist
292 that the patient was in the grace period when the dentist
293 requested eligibility or enrollment verification from the health
294 maintenance organization, if such request was made.
295 (b) This subsection applies to contracts delivered,
296 issued, or renewed on or after January 1, 2025.
297 (c) The office has all rights and powers to enforce this
298 subsection as provided by s. 624.307.
299 (d) The commission may adopt rules to implement this
300 subsection.
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301 Section 5. This act shall take effect July 1, 2024.
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HOUSE OF REPRESENTATIVES STAFF ANALYSIS
BILL #: CS/CS/HB 1263 My Safe Florida Home Program
SPONSOR(S): State Administration & Technology Appropriations Subcommittee, Insurance & Banking
Subcommittee, LaMarca
TIED BILLS: IDEN./SIM. BILLS: CS/SB 7028
REFERENCE ACTION ANALYST STAFF DIRECTOR or
BUDGET/POLICY CHIEF
1) Insurance & Banking Subcommittee 18 Y, 0 N, As CS Fortenberry Lloyd
2) State Administration & Technology 14 Y, 0 N, As CS Perez Topp
Appropriations Subcommittee
3) Commerce Committee Fortenberry Hamon
SUMMARY ANALYSIS
The My Safe Florida Home (MSFH) Program was created in 2006 within the Department of Financial Services (DFS)
to perform mitigation inspections of site-built, single-family, residential properties (inspections), and mitigation grants
(grants) to eligible applicants to make their homes less vulnerable to hurricane damage. The MSFH Program received
$250 million in appropriations for the Fiscal Year 2006-2007, but was not funded again until 2022. Since then, the
Legislature has provided approximately $433 million in subsequent additional funding to the MSFH Program.
Mitigation inspections are limited to homesteaded properties. Funds may be used to inspect townhouses to
determine if opening protection mitigation would decrease hurricane damage risk. Grant funds may be used to pay
for opening protection mitigation if warranted. The value of the mitigation grant-eligible homes is currently capped
at $700,000. While initially limited to homes within the wind-borne debris region, the MSFH Program is currently
a statewide program.
The bill makes additional changes to the MSFH Program. Homeowners may submit subsequent mitigation
inspection and grant applications for the same home if certain criteria are met. DFS may request that an applicant
provide additional information if the application contains errors or omissions. An application is considered withdrawn
if an applicant does not respond to a request for additional information within 60 days. The bill requires that, for the
first 60 days DFS accepts inspection and grant applications following any legislative appropriation, DFS must
prioritize the review and approval of applications by low- and moderate-income persons and those applicants
who are at least 60 years old.
In order to receive grant funds, homeowners must agree to provide DFS with information from their homeowners’
insurers that identifies premium discounts received as a result of improvements made with grant funds. Grant-
funded projects must be completed within 1 year after grant approval, subject to a one-time six-month extension, or
the grant is deemed abandoned and the grant funds revert to DFS.
The bill eliminates the requirement that DFS maintain a list of participating contractors fo r the grant portion of the
MSFH Program. Participants in the program may choose any properly licensed contractor to perform the
improvements and must include the name and state license number of that contractor on their grant applications.
The bill specifies that grant-funded opening protection improvements include exterior doors, garage doors, windows,
and skylights. Current law allows DFS to require that improvements be made to all openings, including exterior
doors, and garage doors as a condition of reimbursing a homeowner approved for a grant. The bill adds windows
and skylights to the list of openings that must be improved in their entirety for a homeowner to be reimbursed.
The implementation of the MSFH Program is subject to funding in the General Appropriations Act. The bill may have
a positive direct economic impact on the private sector. See Fiscal Analysis & Economic Impact Statement.
The bill is effective on July 1, 2024.
This docum ent does not reflect the intent or official position of the bill sponsor or House of Representatives .
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DATE: 2/20/2024
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 purpose of 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 had 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; and
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 with wind certification entities
to provide mitigation inspections. In order to be eligible for the contracts, the entities had to use
hurricane mitigation inspectors who, at a minimum:
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 professional architects; 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
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.
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Mitigation Grants
The purpose of the mitigation grants component of the MSFH Program 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:
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
9 S. 215.5586(2), F.S.
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 Jan. 26, 2024).
18 Id.
19 Id.
20 Id.
21 Id.
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While the MSFH Program was never repealed from law, additional funding was not provided until May
2022.
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
the General Revenue Fund (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
22 Florida Department of Financial Services, Agency Analysis of 2023 House Bill 881, p. 1 (Mar. 1, 2023).
23 Id.
24 Id.
25 Id.
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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:
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
2023 Developments to the MSFH Program
Following the significant interest in the program in 2022 and early 2023, the Legislature made
additional changes to the statutory framework for the MSFH Program during the 2023 Regular Session.
These changes included changes to the inspection and grant eligibility requirements, and program
management changes.
Single-family home eligibility for mitigation inspections was limited only to homesteaded properties. 29
Funds from the MSFH Program may now be used to inspect townhouses to determine if opening
protection mitigation would help decrease the risk of hurricane damage.30 If an inspection determines
that opening protection mitigation would decrease such risk, grant funds from the MSFH Program may
be used to pay for the mitigation.31 The value of the mitigation grant-eligible homes was also increased
from $500,000 to $700,000.32
The designation of a specific portion of the grant funds for low-income recipients was removed, but
increases the overall grant award for low-income recipients from $5,000 to $10,000.33 The program’s
geographic eligibility area was broadened to include otherwise in eligible homes outside the wind-borne
debris region, in effect making it a statewide program.
Among the project management changes implemented, home inspectors must be licensed, in addition
to certified.34 This requirement conforms with other statutory chapters that address home inspectors.
Funding for the MSFH Program
As of December 2023, the Legislature has appropriated a total of $433 million for the MSFH Program
since May 2022.35 In addition to the $150 million appropriated during the 2022D Special Session, this
includes $100 million in grant funding appropriated during the 2023 Regular Session and an additional
$176 million in grant funding appropriated during the 2023C Special Session.36
26 Id.
27 S. 215.5586(1)(a), F.S.
28 Department of Financial Services, supra note 22, at 2.
29 The homestead requirement was already in place for the grant portion of the MSFH Program under s. 215.5586(2), F.S., prior to the
2023 Regular Session.
30 S. 215.5586(1)(a), F.S.
31 S. 215.5586(2)(f), F.S.
32 S. 215.5586(2)(e)2., F.S.
33 S. 215.5586(2)(h), F.S.
34 S. 215.5586, F.S.
35 Department of Financial Services, 2023 Annual Report of My Safe Florida Home, p. 1.
36 Id. at p. 6. The mitigation grant funding is by far the largest component of the MSFH Program.
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Results of the MSFH Program
Between November 2022, and December 2023, the MSFH Program has provided more than 94,000
homeowners with hurricane mitigation inspections and approved more than 23,000 grant applications.37
Over 73 percent of those homeowners who have completed participation in the grant component of the
MSFH Program have seen their homeowners insurance premiums drop or stabilize, and many are
paying premiums at or below the state average.38 According to DFS, upon applying to the MSFH
Program, the average premium of the applicants was 55.1 percent higher than the average Florida
homeowner’s premium.39 Based upon the decrease in premium following participation, DFS has
concluded that the MSFH Program participation is comprised of higher-than-average risk homeowners,
which is consistent with the goal of helping those with homes at greatest risk. 40
Effect of the Bill
The bill makes additional changes to improve the operation and effectiveness of the MSFH Program. It
allows homeowners to submit subsequent mitigation inspection and grant applications for the same
home if the following criteria are met:
The original application was denied or withdrawn due to errors or omissions in the application;
The original application was denied or withdrawn because the home did not meet the eligibility
criteria at the time of application, and the homeowner reasonably believes the home is now
eligible for an inspection or grant; or
The MSFH Program’s eligibility requirements have changed since the date of the original
application, and the homeowner reasonably believes the home is now eligible for an inspection
or grant.
Pursuant to the bill, DFS may request that an applicant provide additional information if the application
contains errors or omissions. DFS may consider an application withdrawn if it does not receive a
response to its request for additional information within 60 days of notifying the applicant of errors or
omissions.
The bill provides additional criteria for homes to be eligible for mitigation grants. Homeowners must
agree to provide DFS with information from their homeowners’ insurers that identifies premium
discounts received as a result of improvements made with grant funds. Grant-funded projects must be
completed within 1 year after grant approval, subject to a one-time six-month extension, or the grant is
deemed abandoned and the grant funds revert to DFS.
The bill eliminates the requirement that DFS maintain a list of participating contractors for the grant
portion of the MSFH Program. Instead, participants in the program may choose any properly licensed
contractor to perform the improvements. A grant application must include a statement from the
homeowner which contains the name and state license number of the contractor that the homeowner
intends to use for the mitigation work. Before approving the grant, DFS will verify that the contractor’s
state license number is accurate and up to date.
The bill specifies that opening protection that may be improved with grant funds from the MSFH
Program includes exterior doors, garage doors, windows, and skylights. Current law allows DFS to
require that improvements be made to all openings, including exterior doors, and garage doors as a
condition of reimbursing a homeowner approved for a grant.41 The bill adds windows and skylights to
the list of openings that must be improved in their entirety for a homeowner to be reimbursed.
37 Id. at p. 1. Because the grant portion of the MSFH Program is fulfille d based on reimbursement to homeowners after proof of
completion of mitigation projects, the money to fulfill these grants has been reserved, but not all of it has been paid to th e homeowners
yet.
38 Id.
39 Id. at p. 2.
40 Id.
41 S. 215.5586(2)(f), F.S.
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The bill requires that, for the first 60 days DFS accepts inspection and grant applications following any
legislative appropriation, DFS must prioritize the review and approval of applications in the following
order:
Low-income persons who are at least 60 years old;
All other low-income persons;
Moderate-income persons who are at least 60 years old;
All other moderate-income persons;42 and
All other applicants.
B. SECTION DIRECTORY:
Section 1. Amends s. 215.5586, F.S., relating to the My Safe Florida Home Program.
Section 2. Provides an effective date of July 1, 2024.
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 or premium
discounts under their property 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 House’s proposed General Appropriations Act (GAA) for Fiscal Year 2024-2025,43 includes $200
million for mitigation grants, approximately $17 million for mitigation inspections, and approximately $7
million for administrative costs related to both components of the MSFH Program.
III. COMMENTS
A. CONSTITUTIONAL ISSUES:
42 The relevant definitions of low- and moderate-income persons are found in s. 420.0004, F.S.
43 See PCB APC 24-01 (2024).
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DATE: 2/20/2024
1. Applicability of Municipality/County Mandates Provision:
Not applicable. This bill does not appear to affect county or municipal governments.
2. Other:
B. RULE-MAKING AUTHORITY:
The bill neither authorizes nor requires administrative rulemaking.
C. DRAFTING ISSUES OR OTHER COMMENTS:
None.
IV. AMENDMENTS/COMMITTEE SUBSTITUTE CHANGES
On February 1, 2024, the Insurance & Banking Subcommittee considered the bill, adopted a strike-all
amendment, and reported the bill favorably as a committee substitute. The amendment made the following
changes to the bill:
required a grant applicant to identify the project contractor by name and license number and the
program to verify the status of the contractor’s license.
clarified the process for prioritization of low-income grant applicants.
specified that a grant-funded project must be completed within 1 year, subject to a one-time six-
month extension, or the grant is deemed abandoned and the funds revert to DFS.
made other technical and grammatical changes.
On February 13, 2024, the State Administration & Technology Appropriations Subcommittee considered
the bill, adopted an amendment, and reported the bill favorably as a committee substitute. The amendment
removed the appropriation of $107 million nonrecurring general revenue.
The analysis is drafted to the committee substitute as passed by the State Administration & Technology
Appropriations Subcommittee.
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F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
CS/CS/HB 1263 2024
1 A bill to be entitled
2 An act relating to the My Safe Florida Home Program;
3 amending s. 215.5586, F.S.; revising legislative
4 intent; specifying eligibility requirements for
5 hurricane mitigation inspections under the My Safe
6 Florida Home Program; specifying requirements for a
7 hurricane mitigation inspection application;
8 authorizing an applicant to submit a subsequent
9 hurricane mitigation inspection application under
10 certain conditions; authorizing applicants who meet
11 specified requirements to receive a home inspection
12 under the program without being eligible for, or
13 applying for, a grant; specifying eligibility
14 requirements for hurricane mitigation grants; revising
15 application requirements for hurricane mitigation
16 grants; authorizing an applicant to submit a
17 subsequent hurricane mitigation grant application
18 under certain conditions; requiring that a grant
19 application include certain information; deleting and
20 revising provisions relating to the selection of
21 hurricane mitigation inspectors and contractors;
22 deleting the requirement that matching fund grants be
23 made available to certain entities; revising
24 improvements that grants for eligible homes may be
25 used for; deleting the authorization to use grants on
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26 rebuilds; requiring the Department of Financial
27 Services to develop a process that ensures the most
28 efficient means to collect and verify inspection
29 applications; requiring the department to prioritize
30 the review and approval of inspection and grant
31 applications in a specified order; requiring the
32 department to start accepting inspection and grant
33 applications as specified in the act; requiring
34 homeowners to finalize construction and make certain
35 requests within a specified time; providing that an
36 application is deemed abandoned under certain
37 circumstances; authorizing the department to request
38 certain information; providing that an application is
39 considered withdrawn under certain circumstances;
40 revising provisions relating to the development of
41 brochures; requiring the Citizens Property Insurance
42 Corporation to distribute such brochures to specified
43 persons; providing an effective date.
44
45 Be It Enacted by the Legislature of the State of Florida:
46
47 Section 1. Section 215.5586, Florida Statutes, as amended
48 by section 5 of chapter 2023-349, Laws of Florida, is amended to
49 read:
50 215.5586 My Safe Florida Home Program.—There is
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51 established within the Department of Financial Services the My
52 Safe Florida Home Program. The department shall provide fiscal
53 accountability, contract management, and strategic leadership
54 for the program, consistent with this section. This section does
55 not create an entitlement for property owners or obligate the
56 state in any way to fund the inspection or retrofitting of
57 residential property in this state. Implementation of this
58 program is subject to annual legislative appropriations. It is
59 the intent of the Legislature that, subject to the availability
60 of funds, the My Safe Florida Home Program provide licensed
61 inspectors to perform hurricane mitigation inspections of
62 eligible homes for owners of site-built, single-family,
63 residential properties and grants to fund hurricane mitigation
64 projects on those homes eligible applicants. The department
65 shall implement the program in such a manner that the total
66 amount of funding requested by accepted applications, whether
67 for inspections, grants, or other services or assistance, does
68 not exceed the total amount of available funds. If, after
69 applications are processed and approved, funds remain available,
70 the department may accept applications up to the available
71 amount. The program shall develop and implement a comprehensive
72 and coordinated approach for hurricane damage mitigation
73 pursuant to that may include the requirements provided in this
74 section. following:
75 (1) HURRICANE MITIGATION INSPECTIONS.—
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76 (a) To be eligible for a hurricane mitigation inspection
77 under the program:
78 1. A home must be a single-family, detached residential
79 property or a townhouse as defined in s. 481.203;
80 2. A home must be site-built and owner-occupied; and
81 3. The homeowner must have been granted a homestead
82 exemption on the home under chapter 196.
83 (b)1. An application for a hurricane mitigation inspection
84 must contain a signed or electronically verified statement made
85 under penalty of perjury that the applicant has submitted only
86 one inspection application on the home or that the application
87 is allowed under subparagraph 2., and the application must have
88 documents attached which demonstrate that the applicant meets
89 the requirements of paragraph (a).
90 2. An applicant may submit a subsequent hurricane
91 mitigation inspection application for the same home only if:
92 a. The original hurricane mitigation inspection
93 application has been denied or withdrawn because of errors or
94 omissions in the application;
95 b. The original hurricane mitigation inspection
96 application was denied or withdrawn because the home did not
97 meet the eligibility criteria for an inspection at the time of
98 the previous application, and the homeowner reasonably believes
99 the home now is eligible for an inspection; or
100 c. The program's eligibility requirements for an
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101 inspection have changed since the original application date, and
102 the applicant reasonably believes the home is eligible under the
103 new requirements.
104 (c) An applicant meeting the requirements of paragraph (a)
105 may receive an inspection of a home under the program without
106 being eligible for a grant under subsection (2) or applying for
107 such grant.
108 (d) Licensed inspectors are to provide home inspections of
109 eligible homes site-built, single-family, residential properties
110 for which a homestead exemption has been granted, to determine
111 what mitigation measures are needed, what insurance premium
112 discounts may be available, and what improvements to existing
113 residential properties are needed to reduce the property's
114 vulnerability to hurricane damage. An inspector may inspect a
115 townhouse as defined in s. 481.203 to determine if opening
116 protection mitigation as listed in subparagraph (2)(e)1.
117 paragraph (2)(e) would provide improvements to mitigate
118 hurricane damage.
119 (e)(b) The department of Financial Services shall contract
120 with wind certification entities to provide hurricane mitigation
121 inspections. The inspections provided to homeowners, at a
122 minimum, must include:
123 1. A home inspection and report that summarizes the
124 results and identifies recommended improvements a homeowner may
125 take to mitigate hurricane damage.
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126 2. A range of cost estimates regarding the recommended
127 mitigation improvements.
128 3. Information regarding estimated premium discounts,
129 correlated to the current mitigation features and the
130 recommended mitigation improvements identified by the
131 inspection.
132 (f)(c) To qualify for selection by the department as a
133 wind certification entity to provide hurricane mitigation
134 inspections, the entity must, at a minimum, meet th e following
135 requirements:
136 1. Use hurricane mitigation inspectors who are licensed or
137 certified as:
138 a. A building inspector under s. 468.607;
139 b. A general, building, or residential contractor under s.
140 489.111;
141 c. A professional engineer under s. 471.015;
142 d. A professional architect under s. 481.213; or
143 e. A home inspector under s. 468.8314 and who have
144 completed at least 3 hours of hurricane mitigation training
145 approved by the Construction Industry Licensing Board, which
146 training must include hurricane mitigation techniques,
147 compliance with the uniform mitigation verification form, and
148 completion of a proficiency exam.
149 2. Use hurricane mitigation inspectors who also have
150 undergone drug testing and a background screening. The
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151 department may conduct criminal record checks of inspectors used
152 by wind certification entities. Inspectors must submit a set of
153 fingerprints to the department for state and national criminal
154 history checks and must pay the fingerprint processing fee set
155 forth in s. 624.501. The fingerprints must be sent by the
156 department to the Department of Law Enforcement and forwarded to
157 the Federal Bureau of Investigation for processing. The results
158 must be returned to the department for screening. The
159 fingerprints must be taken by a law enforcement agency,
160 designated examination center, or other department-approved
161 entity.
162 3. Provide a quality assurance program including a
163 reinspection component.
164 (d) An application for an inspection must contain a signed
165 or electronically verified statement made under penalty of
166 perjury that the applicant has submitted only a single
167 application for that home.
168 (e) The owner of a site-built, single-family, residential
169 property or townhouse as defined in s. 481.203, for which a
170 homestead exemption has been granted, may apply for and receive
171 an inspection without also applying for a grant pursuant to
172 subsection (2) and without meeting the requirements of paragraph
173 (2)(a).
174 (2) HURRICANE MITIGATION GRANTS.—Financial grants shall be
175 used by homeowners to make improvements recommended by an
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176 inspection which increase resistance encourage single-family,
177 site-built, owner-occupied, residential property owners to
178 retrofit their properties to make them less vulnerable to
179 hurricane damage.
180 (a) For A homeowner is to be eligible for a hurricane
181 mitigation grant if all of, the following criteria are must be
182 met:
183 1. The home must be eligible for an inspection under
184 subsection (1) The homeowner must have been granted a homestead
185 exemption on the home under chapter 196.
186 2. The home must be a dwelling with an insured value of
187 $700,000 or less. Homeowners who are low-income persons, as
188 defined in s. 420.0004(11), are exempt from this requirement.
189 3. The home must undergo an acceptable hurricane
190 mitigation inspection as provided in subsection (1).
191 4. The building permit application for initial
192 construction of the home must have been made before January 1,
193 2008.
194 5. The homeowner must agree to make his or her home
195 available for inspection once a mitigation project is completed.
196 6. The homeowner must agree to provide to the department
197 information received from the homeowner's insurer identifying
198 the discounts realized by the homeowner because of the
199 mitigation improvements funded through the program.
200 (b)1. An application for a grant must contain a signed or
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201 electronically verified statement made under penalty of perjury
202 that the applicant has submitted only one grant a single
203 application or that the application is allowed under
204 subparagraph 2., and the application must have attached
205 documents attached demonstrating that the applicant meets the
206 requirements of this paragraph (a).
207 2. An applicant may submit a subsequent grant application
208 if:
209 a. The original grant application was denied or withdrawn
210 because the application contained errors or omissions;
211 b. The original grant application was denied or withdrawn
212 because the home did not meet the eligibility criteria for a
213 grant at the time of the previous application, and the homeowner
214 reasonably believes that the home now is eligible for a grant;
215 or
216 c. The program's eligibility requirements for a grant have
217 changed since the original application date, and the applicant
218 reasonably believes that he or she is an eligible homeowner
219 under the new requirements.
220 3. A grant application must include a statement from the
221 homeowner which contains the name and state license number of
222 the contractor that the homeowner acknowledges as the intended
223 contractor for the mitigation work. The program must
224 electronically verify that the contractor's state license number
225 is accurate and up to date before grant approval.
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226 (c)(b) All grants must be matched on the basis of $1
227 provided by the applicant for $2 provided by the state up to a
228 maximum state contribution of $10,000 toward the actual cost of
229 the mitigation project, except as provided in paragraph (h).
230 (d)(c) The program shall create a process in which
231 contractors agree to participate and homeowners select from a
232 list of participating contractors. All hurricane mitigation
233 performed under the program must be based upon the securing of
234 all required local permits and inspections and must be performed
235 by properly licensed contractors. Hurricane mitigation
236 inspectors qualifying for the program may also participate as
237 mitigation contractors as long as the inspectors meet the
238 department's qualifications and certification requirements for
239 mitigation contractors.
240 (d) Matching fund grants shall also be made available to
241 local governments and nonprofit entities for projects that will
242 reduce hurricane damage to single-family, site-built, owner-
243 occupied, residential property. The department shall liberally
244 construe those requirements in favor of availing the state of
245 the opportunity to leverage funding for the My Safe Florida Home
246 Program with other sources of funding.
247 (e) When recommended by a hurricane mitigation inspection,
248 grants for eligible homes may be used for the following
249 improvements:
250 1. Opening protection, including exterior doors, garage
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251 doors, windows, and skylights.
252 2. Exterior doors, including garage doors.
253 3. Reinforcing roof-to-wall connections.
254 3.4. Improving the strength of roof-deck attachments.
255 4.5. Secondary water resistance barrier for roof.
256 (f) When recommended by a hurricane mitigation inspection,
257 grants for townhouses, as defined in s. 481.203, may only be
258 used for opening protection.
259 (g) The department may require that improvements be made
260 to all openings, including exterior doors, and garage doors,
261 windows, and skylights, as a condition of reimbursing a
262 homeowner approved for a grant. The department may adopt, by
263 rule, the maximum grant allowances for any improvement allowable
264 under paragraph (e) or paragraph (f) this paragraph.
265 (g) Grants may be used on a previously inspected existing
266 structure or on a rebuild. A rebuild is defined as a site-built,
267 single-family dwelling under construction to replace a home that
268 was destroyed or significantly damaged by a hurricane and deemed
269 unlivable by a regulatory authority. The homeowner must be a
270 low-income homeowner as defined in paragraph (h), must have had
271 a homestead exemption for that home before the hurricane, and
272 must be intending to rebuild the home as that homeowner's
273 homestead.
274 (h) Low-income homeowners, as defined in s. 420.0004(11),
275 who otherwise meet the applicable requirements of this
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276 subsection paragraphs (a), (c), (e), and (g) are eligible for a
277 grant of up to $10,000 and are not required to provide a
278 matching amount to receive the grant. The program may accept a
279 certification directly from a low-income homeowner that the
280 homeowner meets the requirements of s. 420.0004(11) if the
281 homeowner provides such certification in a signed or
282 electronically verified statement made under penalty of perjury.
283 (i)1. The department shall develop a process that ensures
284 the most efficient means to collect and verify inspection
285 applications and grant applications to determine eligibility.
286 The department and may direct hurricane mitigation inspectors to
287 collect and verify grant application information or use the
288 Internet or other electronic means to collect information and
289 determine eligibility.
290 2. The department shall prioritize the review and approval
291 of such inspection applications and grant applications in the
292 following order:
293 a. First, applications from low-income persons, as defined
294 in s. 420.0004, who are at least 60 years old;
295 b. Second, applications from all other low-income persons,
296 as defined in s. 420.0004;
297 c. Third, applications from moderate-income persons, as
298 defined in s. 420.0004, who are at least 60 years old;
299 d. Fourth, applications from all other moderate-income
300 persons, as defined in s. 420.0004; and
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301 e. Last, all other applications.
302 3. The department shall start accepting inspection
303 applications and grant applications no earlier than the
304 effective date of a legislative appropriation funding
305 inspections and grants, as follows:
306 a. Initially, from applicants prioritized under sub-
307 subparagraph 2.a.;
308 b. From applicants prioritized under sub-subparagraph
309 2.b., beginning 15 days after the program initially starts
310 accepting applications;
311 c. From applicants prioritized under sub-subparagraph
312 2.c., beginning 30 days after the program initially starts
313 accepting applications;
314 d. From applicants described in sub-subparagraph 2.d.,
315 beginning 45 days after the program initially starts accepting
316 applications; and
317 e. From all other applicants, beginning 60 days after the
318 program initially starts accepting applications.
319 4. The program may accept a certification directly from a
320 low-income homeowner or moderate-income homeowner who meets the
321 requirements of s. 420.0004(11) or (12), respectively, if the
322 homeowner provides such certification in a signed or
323 electronically verified statement made under penalty of perjury.
324 (j) A homeowner who receives a grant shall finalize
325 construction and request a final inspection, or request an
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326 extension for an additional 6 months, within 1 year after grant
327 approval. If a homeowner fails to comply with this paragraph,
328 his or her application is deemed abandoned and the grant money
329 reverts to the department.
330 (3) REQUESTS FOR INFORMATION.—The department may request
331 that an applicant provide additional information. An application
332 is deemed withdrawn by the applicant if the department does not
333 receive a response to its request for additional information
334 within 60 days after the notification of any apparent error or
335 omission.
336 (4) EDUCATION, CONSUMER AWARENESS, AND OUTREACH.—
337 (a) The department may undertake a statewide multimedia
338 public outreach and advertising campaign to inform consumers of
339 the availability and benefits of hurricane inspections and of
340 the safety and financial benefits of residential hurricane
341 damage mitigation. The department may seek out and use local,
342 state, federal, and private funds to support the campaign.
343 (b) The program may develop brochures for distribution to
344 Citizens Property Insurance Corporation and other licensed
345 entities or nonprofits that work with the department to educate
346 the public on the benefits of the program, general contractors,
347 roofing contractors, and real estate brokers and sales
348 associates who are licensed under part I of chapter 475 which
349 provide information on the benefits to homeowners of residential
350 hurricane damage mitigation. Citizens Property Insurance
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351 Corporation must is encouraged to distribute the brochure to
352 policyholders of the corporation each year the program is
353 funded. Contractors are encouraged to distribute the brochures
354 to homeowners at the first meeting with a homeowner who is
355 considering contracting for home or roof repair or contracting
356 for the construction of a new home. Real estate brokers and
357 sales associates are encouraged to distribute the brochure to
358 clients before the purchase of a home. The brochures may be made
359 available electronically.
360 (5)(4) FUNDING.—The department may seek out and leverage
361 local, state, federal, or private funds to enhance the financial
362 resources of the program.
363 (6)(5) RULES.—The department of Financial Services shall
364 adopt rules pursuant to ss. 120.536(1) and 120.54 to govern the
365 program; implement the provisions of this section; including
366 rules governing hurricane mitigation inspections and grants,
367 mitigation contractors, and training of inspectors and
368 contractors; and carry out the duties of the department under
369 this section.
370 (7)(6) HURRICANE MITIGATION INSPECTOR LIST.—The department
371 shall develop and maintain as a public record a current list of
372 hurricane mitigation inspectors authorized to conduct hurricane
373 mitigation inspections pursuant to this section.
374 (8)(7) CONTRACT MANAGEMENT.—
375 (a) The department may contract with third parties for
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376 grants management, inspection services, contractor services for
377 low-income homeowners, information technology, educational
378 outreach, and auditing services. Such contracts are considered
379 direct costs of the program and are not subject to
380 administrative cost limits. The department shall contract with
381 providers that have a demonstrated record of successful business
382 operations in areas directly related to the services to be
383 provided and shall ensure the highest accountability for use of
384 state funds, consistent with this section.
385 (b) The department shall implement a quality assurance and
386 reinspection program that determines whether initial inspections
387 and home improvements are completed in a manner consistent with
388 the intent of the program. The department may use valid random
389 sampling in order to perform the quality assurance portion of
390 the program.
391 (9)(8) INTENT.—It is the intent of the Legislature that
392 grants made to residential property owners under this section
393 shall be considered disaster-relief assistance within the
394 meaning of s. 139 of the Internal Revenue Code of 1986, as
395 amended.
396 (10)(9) REPORTS.—The department shall make an annual
397 report on the activities of the program that shall account for
398 the use of state funds and indicate the number of inspections
399 requested, the number of inspections performed, the number of
400 grant applications received, the number and value of grants
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401 approved, and the estimated average annual amount of insurance
402 premium discounts and total estimated annual amount of insurance
403 premium discounts homeowners received from insurers as a result
404 of mitigation funded through the program. The report must be
405 delivered to the President of the Senate and the Speaker of the
406 House of Representatives by February 1 of each year.
407 Section 2. This act shall take effect July 1, 2024.
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COMMERCE COMMITTEE
CS/CS/HB 1263 by LaMarca
My Safe Florida Home Program
AMENDMENT SUMMARY
February 22, 2024
Amendment 1 by Rep. LaMarca (Line 255): changes the term secondary water barrier to
secondary water resistance to conform with proper roofing terminology.
Amendment 2 by Rep. LaMarca (Line 406): adds an appropriation from the General Revenue
Fund for the My Safe Florida Home Program and prohibits the Program from accepting
applications or producing a waiting list in anticipation of future funding.
COMMITTEE/SUBCOMMITTEE AMENDMENT
Bill No. CS/CS/HB 1263 (2024)
Amendment No. 1
COMMITTEE/SUBCOMMITTEE ACTION
ADOPTED (Y/N)
ADOPTED AS AMENDED (Y/N)
ADOPTED W/O OBJECTION (Y/N)
FAILED TO ADOPT (Y/N)
WITHDRAWN (Y/N)
OTHER
1 Committee/Subcommittee hearing bill: Commerce Committee
2 Representative LaMarca offered the following:
3
4 Amendment
5 Remove line 255 and insert:
6 4.5. Secondary water resistance barrier for roof.
243741 - h1263-line 255.docx
Published On: 2/21/2024 8:18:49 PM
Page 1 of 1
COMMITTEE/SUBCOMMITTEE AMENDMENT
Bill No. CS/CS/HB 1263 (2024)
Amendment No. 2
COMMITTEE/SUBCOMMITTEE ACTION
ADOPTED (Y/N)
ADOPTED AS AMENDED (Y/N)
ADOPTED W/O OBJECTION (Y/N)
FAILED TO ADOPT (Y/N)
WITHDRAWN (Y/N)
OTHER
1 Committee/Subcommittee hearing bill: Commerce Committee
2 Representative LaMarca offered the following:
3
4 Amendment (with title amendment)
5 Between lines 406 and 407, insert:
6 Section 2. For the 2024-2025 fiscal year, the sum of $225
7 million in nonrecurring funds is appropriated from the General
8 Revenue Fund to the Department of Financial Services for the My
9 Safe Florida Home Program. The funds shall be utilized for
10 hurricane mitigation grants, hurricane mitigation inspections,
11 outreach and administrative costs. The department may not continue
12 to accept applications or create a waiting list in anticipation of
13 additional funding unless the Legislature provides expressed
14 authority to implement such actions.
15
16
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Published On: 2/21/2024 8:19:39 PM
Page 1 of 2
COMMITTEE/SUBCOMMITTEE AMENDMENT
Bill No. CS/CS/HB 1263 (2024)
Amendment No. 2
17 -----------------------------------------------------
18 T I T L E A M E N D M E N T
19 Remove line 43 and insert:
20 persons; providing appropriations; providing an effective date.
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Published On: 2/21/2024 8:19:39 PM
Page 2 of 2
CS/HB 1289
HOUSE OF REPRESENTATIVES STAFF ANALYSIS
BILL #: CS/HB 1289 Verification of Reemployment Assistance Benefit Eligibility
SPONSOR(S): Regulatory Reform & Economic Development Subcommittee, Abbott
TIED BILLS: IDEN./SIM. BILLS: SB 1260
REFERENCE ACTION ANALYST STAFF DIRECTOR or
BUDGET/POLICY CHIEF
1) Regulatory Reform & Economic Development 8 Y, 5 N, As CS Bauldree Anstead
Subcommittee
2) Infrastructure & Tourism Appropriations 8 Y, 4 N McAuliffe Davis
Subcommittee
3) Commerce Committee Bauldree Hamon
SUMMARY ANALYSIS
The Federal-State Unemployment Insurance Program is administered as a partnership between the federal
government and state governments, providing unemployment benefits to eligible workers who are unemployed
through no fault of their own and who meet the requirements of state law. The Department of Commerce
(department) is responsible for administering Florida’s reemployment assistance program. To receive weekly
benefits, a claimant must meet certain monetary and non-monetary eligibility requirements.
The bill revises reemployment assistance eligibility requirements. The bill adds more conditions that can
disqualify an individual from receiving benefits including:
Failing to contact at least five prospective employers per week, unless otherwise exempt;
Failing to appear on three or more occasions for a scheduled job interview;
Failing to accept suitable work within 2 business days of being offered; or
Failing to return to the individual’s self-employment when directed by the department, or when recalled
to work by his or her former employer.
The bill requires the department to maintain a web page and e-mail address for employers to report known or
suspected violations of the disqualification for benefits provisions, and notify employers of the web page and e-
mail address.
Additionally, the bill requires the department to verify the identity of each claimant who applies for
reemployment assistance benefits before paying any benefits to that individual, and to weekly cross -check the
information contained in the claim with various specified national and state databases.
The bill does not have a fiscal impact on state or local government revenues or local government expenditures.
The bill may have an indeterminate negative fiscal impact on state expenditures. See Fiscal Analysis &
Economic Impact Statement.
The bill provides an effective date of July 1, 2024.
This docum ent does not reflect the intent or official position of the bill sponsor or House of Representatives .
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FULL ANALYSIS
I. SUBSTANTIVE ANALYSIS
A. EFFECT OF PROPOSED CHANGES:
Present Situation
Unemployment Compensation
The Federal-State Unemployment Insurance Program provides unemployment benefits to eligible
workers who are unemployed through no-fault of their own (as determined under state law) and who
meet the requirements of state law.1 The program is administered as a partnership between the federal
government and the states.2 The individual states collect unemployment compensation payroll taxes on
a quarterly basis, which are used to pay benefits, while the Internal Revenue Service collects an annual
federal payroll tax under the Federal Unemployment Tax Act (FUTA). 3 FUTA collections go to the
states for costs of administering state unemployment compensation and job service programs. In
addition, FUTA pays one-half of the cost of extended unemployment benefits (during periods of high
unemployment) and provides for a fund from which states may borrow, if necessary, to pay benefits.4
States are permitted to set benefit eligibility requirements, the amount and duration of benefits, and the
state tax structure, as long as state law does not conflict with FUTA or Social Security Act
requirements. Florida’s program was created by the Legislature in 1937.5 The Department of
Commerce6 (department) is the current agency responsible for administering Florida’s laws, primarily
through its Division of Workforce Services. The department contracts with the Florida Department of
Revenue (DOR) to provide unemployment tax collections services. 7
Florida Reemployment Assistance Benefits
In Florida, which rebranded the unemployment compensation program as the reemployment assistance
program in 2012,8 a qualified claimant may receive benefits equal to 25 percent of wages, not to
exceed $6,325 in a benefit year.9 Benefits range from a minimum of $32 per week to a maximum
weekly benefit amount10 of $275, for a maximum of between 12 weeks and 23 weeks,11 depending on
the claimant’s length of prior employment and wages earned and the unemployment rate. 12
The maximum available weeks is set at the beginning of the year and applies for the entire calendar
1
U.S. Department of Labor, State Unemployment Insurance Benefits, available at https://oui.doleta.gov/unemploy/uifactsheet.asp (last visited Feb.
8, 2024).
2
There are 53 programs, including the 50 states, Puerto Rico, the Virgin Islands, and the District of Columbia. U.S. Department of Labor,
Unemployment Compensation, Federal – State Partnership, available at https://oui.doleta.gov/unemploy/pdf/partnership.pdf (last visited Feb. 8,
2024).
3
FUTA is codified at 26 U.S.C. § 3301-3309.
4
U.S. Department of Labor, Unemployment Insurance Tax Topic, available at
https://oui.doleta.gov/unemploy/uitaxtopic.asp#:~:text=FUTA%20taxes%20are%20calculated%20by,times%20the%20employer's%20taxable%20wa
ges.&text=Employers%20who%20pay%20their%20state,tax%20paid%20to%20the%20state, (last visited Feb. 2, 2024).
5
Ch. 18402, Laws of Fla.
6
Chapter 443, F.S., refers to the department as the “Department of Economic Opportunity”, however, HB 5 in 2023 changed the name of the
department to the “Department of Commerce” and authorized the Division of Law Revision to update the name of the department throughout the
Florida Statutes. Ch. 2023-173, Laws of Fla.
7
S. 443.1316, F.S.
8
Ch. 2012-30, Laws of Fla.
9
S. 443.111(5), F.S. The maximum amount of benefits available is calculated by multiplying an individual’s weekly benefit amount by the number
of available benefit weeks.
10
Pursuant to section 443.111(3), F.S., the “weekly benefit amount,” is an amount equal to one twenty -sixth of the total wages for insured work paid
during the quarter of the base period where the wages paid were highest.
11
S. 443.111(5)(c), F.S. If the average unemployment rate for the 3 months in the most recent third calendar year quarter is at or below 5 percent,
then the maximum weeks of benefits available is 12; for each 0.5 percent that the unemployment rate is above 5 percent, an additional week of
benefits becomes available up to 23 weeks at an unemployment rate of 10.5 percent. On January 1, 2021, the maximum weeks of benefits increased
from 12 weeks to 19 weeks based on the three month average of July, August, and Sept ember of 2020, which was 8.7 percent.
12
The average weekly benefit amount for the first three quarters of 2023 was: first quarter – $259; second quarter – $261; and third quarter – $260.
U.S. Department of Labor, Unemployment Insurance Data, run report for Florida, available at
https://oui.doleta.gov/unemploy/data_summary/DataSum.asp , (last visited Feb. 8, 2024).
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year. The maximum available weeks is based upon the average seasonally adjusted statewide
unemployment rate for the months of July, August, and September. 13 If the average rate for that most
recent third calendar year quarter is at or below five percent, then the maximum weeks of benefits
available is 12 weeks. For each 0.5 percent increase in the unemployment rate, an additional week of
benefits is added to the maximum duration.
To receive benefits, a claimant must meet certain monetary and non-monetary eligibility requirements.
Key eligibility requirements involve a claimant’s earnings during a certain period of time, the manner in
which the claimant became unemployed, and the claimant’s efforts to find new employment. 14
Benefit Eligibility Conditions
A claimant must meet certain requirements in order to be eligible for benefits for each week of
unemployment. Generally, these include efforts related to finding new employment, such as: 15
Completing the department’s online work registration; 16
Reporting to the One-Stop Career Center when directed to do so by the local CareerSource
board;
Being able to and available for work;17
Contacting at least 5 prospective employers each week or going to the One-Stop Career Center
for reemployment services; and
Participating in reemployment services.
For each week of benefits claimed, a claimant must submit to the department the name, address, and
telephone number of each prospective employer contacted. 18 A claimant must be actively seeking work
to be considered available for work. “This means engaging in systematic and sustained efforts to find
work, including contacting at least five prospective employers for each week of unemployment claimed”
or three prospective employers for individuals who live in small counties. 19 Proof of work search efforts
cannot include the same prospective employer at the same location in three consecutive weeks, unless
in the meantime the employer has indicated that it is hiring. The department conducts random audits of
the submitted information to verify that claimants are meeting these requirements.
The requirement to be available for work and able to work applies to an individual during the major
portion of the individual’s customary work week. Consequently, individuals whose benefits are not
based on full-time work are not required to seek or be available to accept full-time work.20
An individual must make a thorough and continued effort to obtain work and take positive actions to
become reemployed. To aid unemployed individuals, free reemployment services and assistance are
available.21
The department’s website provides links to local, state, and national employment databases and to
resources for job training or further educational opportunities. The One-Stop Career Centers provide
job search counseling and workshops, occupational and labor market information, referral to potential
13
S. 443.111(5)(c), F.S. Typically in the calculation of monthly unemployment rates, a rate is published about midway through the following month
and the revised rate is published about midway through the next month. See The Department of Commerce, Unemployment – Local Area
Unemployment Statistics (LAUS) – Release Schedule, (2021), available at
http://lmsresources.labormarketinfo.com/library/DataReleaseSchedule.pdf, (last visited Feb. 2, 2024).
14
See S. 443.101, F.S.
15
S. 443.091(1), F.S.,
16
See S. 443.091(1)(b), F.S., and Employ Florida, available at https://www.employflorida.com/vosnet/Default.aspx, (last visited Feb. 8, 2024).
Employ Florida M arketplace is a partnership of Workforce Florida, Inc., and the Department of Commerce. It provides job-matching and workforce
resources.
17
“Able to work” means physically and mentally capable of performing the duties of the occupation in which work is being sought . “Available for
work” means actively seeking and being ready and willing to accept suitable work. See S. 443.036(1) and (6), F.S. See also R. 73B-11.021(2), F.A.C.
18
S. 449.091(1)(c)1., F.S.
19
S. 443.091(1)(d), F.S. A “small county” is a county that has an unincarcerated population of 75,000 or less. S. 120.52(19), F.S.
20
R. 73B-11.021(2), F.A.C.
21
R. 73B-11.011(12), F.A.C. “Reemployment services” is defined as job search assistance, job and vocational training referrals, employ ment
counseling and testing, labor market information, employability skills enhancement, needs assessment, orientation, and other related services
provided by One-Stop Career Centers operated by local regional workforce boards.
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employers, and job training assistance. Claimants may also receive an e-mail from the Employ Florida
Marketplace with information about employment services or available jobs. Additionally, a claimant may
be selected to participate in reemployment assistance services, such as the Reemployment Services
and Eligibility Assessment (RESEA) program, designed to address the reemployment needs of
claimants.22 Current law requires the department to offer an online assessment aimed at identifying an
individuals’ skills, abilities, and career aptitude and provides that the skills assessment must be
voluntary.23 This online assessment must be made available to any person seeking services from a
One-Stop Career Center or from a local workforce development board.24
Currently, if you are a non-resident of Florida you are exempt from having to complete the department’s
online work registration and reporting to the one-stop career center as directed by the local workforce
development board for reemployment services.
Disqualification for Reemployment Assistance Benefits
Current law specifies the circumstances under which an individual would be disqualified from receiving
benefits. These circumstances include:25
Voluntarily leaving work without good cause, or being discharged by his or her employing unit
for misconduct connected with the work;26
Failing to apply for available suitable work when directed by the department or the One-Stop
Career Center, to accept suitable work when offered, or to return to suitable self-employment
when directed to do so;27
Making false or fraudulent representations in filing for benefits;
Being discharged from employment due to drug use or rejection from a job offer for failing a
drug test; and
Becoming unavailable for work due to incarceration or imprisonment.
Current law also specifies the duration of the disqualification and the requirements for requalification for
an individual’s next benefit claim, depending on the reason for the disqualification. 28
Effect of the Bill
The bill provides that it may be cited as the “Promoting Work, Deterring Fraud Act of 2024.”
The bill amends the disqualification for benefits provisions in current law to add the following conditions
that can disqualify an individual from receiving benefits:
Failing to contact at least five prospective employers per week, in accordance with s. 443.091,
F.S., unless otherwise exempt;
Failing to appear on three or more occasions for a scheduled job interview;
Failing to accept suitable work within 2 business days of being offered; or
Failing to return to the individual’s self-employment when directed by the department, or when
recalled to work by their former employer.
The bill requires the department to maintain a web page and e-mail address for employers to report
known or suspected violations and that the department shall notify employers of this state the web
page and e-mail address.
22
RESEA services may include an orientation, initial assessment, labor market information, employability development plan, and work search
services. The Department of Commerce, Program Description, available at https://floridajobs.org/office-directory/division-of-workforce-
services/workforce-programs/reemployment-services-and-eligibility-assessment-program, (last visited Feb. 8, 2024). R. 73B-3.028, F.A.C., provides
more information on reemployment services and requirements for participation.
23
S. 443.091, F.S.
24
Id.
25
S. 443.101, F.S.
26
An individual is not disqualified for voluntarily leaving temporary work to return to full time work, or to relocate with his or her military spouse
due to relocation orders, or due to circumstances related to domestic violence.
27
S. 443.101(2), F.S.
28
S. 443.091, F.S.
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The bill requires the department to verify the identity of each claimant who applies for reemployment
assistance benefits before paying any benefits to that individual and to weekly cross -check the
information contained in the claim with various specified national and state databases. The specified
databases for the department to utilize include:
The National Association of State Workforce Agencies Integrity Data Hub;29
The United States Department of Health and Human Services National Directory of New
Hires;30
The State Directory of New Hires;31
The Department of Corrections inmate database;
The Social Security Administration (SSA) Prisoner Update Processing System 32
The Centers for Disease Control and Prevention National Vital Statistics System death records
database;33
The Department of Health Bureau of Vital Statistics death records database;34
The United States Citizenship and Immigration Services SAVE database 35 – which allows
federal, state, and local benefit-granting agencies to verify a benefit applicant’s immigration
status or naturalized/derived citizenship.
The bill prohibits the department from paying any claim that has not been cross-checked against all the
sources listed above, or similar sources of information.
The bill also requires the department to do all of the following:
Investigate any claim indicating suspicious activity associated with a mailing address, a bank
account, an e-mail address, a telephone number, or an internet protocol address that is associated
with another existing claim for reemployment assistance benefits and verify that the claim is
legitimate and not fraudulent before paying any benefits for the claim.
Scrutinize any claim filed from a foreign Internet protocol address before paying any benefits for the
claim.
Work with the United States Department of Labor, other workforce agencies outside the state, the
Office of the Attorney General, the Department of Law Enforcement, or other relevant law
enforcement entities to share information related to fraudulent claims to the extent feasible for
further investigation and prosecution.
Each year, submit to the Legislature and make available on its website, a report identifying the
number of fraudulent reemployment assistance claims identified for the prior year, the number of
claims not paid due to successful detection of fraudulent intentions, the number of claims and the
amount of reemployment assistance benefits paid against claims subsequently identified as
fraudulent, the amount of fraudulent overpayments recovered, and the number of fraudulent claims
referred for investigation and possible prosecution. The report must also list the sources of
information that were used to cross-check claims during the reporting period.
The bill requires the department, in alignment with the Federal Regulations public labor exchange
services systems requirements, to procure a modernized online workforce search and match tool that
29
This is a free resource to state workforce agency staff with advanced data cross-matching and analysis capabilities that detects and prevents
unemployment insurance fraud and improper payments. National Association of State Workforce Agencies Integrity Data Hub available at
https://www.naswa.org/integrity -center/integrity-data-hub, (last visited Feb. 2, 2024).
30
Which is a database that legally requires federal and state workforce agencies to report their new hires, quarterly wages, and unemployment
insurance data, and is only available to authorized persons or entities for authorized purposes. A Guide to the National Directory of New Hires,
(January 2023), available at https://www.acf.hhs.gov/sites/default/files/documents/ocse/a_guide_to_the_national_directory_of_new_hires.pdf, (last
visited Feb. 8, 2024).
31
The State Directory of New Hires is a database maintained by each state containing information regarding newly hired employees for the
respective state. See S. 409.2576, F.S. and 42 U.S.C. § 653a.
32
This system contains data reported to SSA and retained on the Prisoner Update Processing System. Examples of the data are confinement date,
released date, reporter name and facility name and address. See the Social Security Administration Program Operations M anual System, Developing
Prisoner Update Processing System Records and Alerts, GN 02607.600.
33 This database collects and shares statistics about births, deaths, marriages, divorces, and fetal deaths. About the National Vital Statistics System,
CTRS. FOR DISEASE CONTROL & PREVENTION, available at https://www.cdc.gov/nchs/nvss/about_nvss.htm, (last visited Feb. 8, 2024).
34
This database collects all birth, marriage, and death certificates in Florida. See S. 20.43(1)(c), F.S.
35
Allows federal, state, and local benefit-granting agencies to verify a benefit applicant’s immigration status or naturalized/derived citizenship. See
42 U.S.C. § 1320b-7.
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includes artificial intelligence generation for the purpose of matching participants to jobs and training
opportunities. The tool must be interoperable through an application programming interface with the
consumer-first workplace system and the tool must include a knowledge, skills, and interests
assessment for the purpose of guiding participants to jobs and training opportunities.
The bill provides an effective date of July 1, 2024.
B. SECTION DIRECTORY:
Section 1: Provides that the act may be cited as the “Promoting Work, Deterring Fraud Act of
2024.”
Section 2: Amends s. 443.101, F.S., relating to disqualification of benefits.
Section 3: Creates s. 443.1112, F.S., relating to verification of reemployment assistance benefit
eligibility.
Section 4: Amends s. 445.003, F.S., relating to implementation of the federal Workforce Innovation
and Opportunity Act.
Section 5: Provides an effective date.
II. FISCAL ANALYSIS & ECONOMIC IMPACT STATEMENT
A. FISCAL IMPACT ON STATE GOVERNMENT:
1. Revenues:
None.
2. Expenditures:
The department may incur indeterminate initial and recurring costs associated with creating and
maintaining the online workforce search and match tool, maintaining a website and e-mail address
for employers to report suspected violations that could disqualify the receipt of benefits, and
checking the required databases before paying any benefits. Provisions in the bill may also function
to decrease the amount of reemployment assistance benefits paid out. The department did not
submit a fiscal impact statement for this bill, but the overall impact on state expenditures remains
indeterminate and cannot be quantified.
B. FISCAL IMPACT ON LOCAL GOVERNMENTS:
1. Revenues:
None.
2. Expenditures:
None.
C. DIRECT ECONOMIC IMPACT ON PRIVATE SECTOR:
Indeterminate. If provisions in the bill function to lower the amount of reemployment assistance benefits
paid out, employers could see a reduction in their contribution rates over time.
D. FISCAL COMMENTS:
None.
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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.
C. DRAFTING ISSUES OR OTHER COMMENTS:
None.
IV. AMENDMENTS/COMMITTEE SUBSTITUTE CHANGES
On February 6, 2024, the Regulatory Reform & Economic Development Subcommittee adopted one
amendment and reported the bill favorably as a committee substitute. The amendment:
Removed the provision from the bill requiring non-Florida residents who seek reemployment
assistance benefits from the Department of Commerce to report to workforce centers in their state
of residence.
Retained the provision in current law stating that the online skills assessment offered by the
department is voluntary.
Removed the provision from the bill requiring a claimant to complete weekly at least one job
application in person with an employer that has an expected job opening, and certify and attest
biweekly that they will appear for all scheduled interviews and actively seek work.
This analysis is drafted to the committee substitute as passed by the Regulatory Reform & Economic
Development Subcommittee.
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F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
CS/HB 1289 2024
1 A bill to be entitled
2 An act relating to verification of reemployment
3 assistance benefit eligibility; providing a short
4 title; amending s. 443.101, F.S.; making a technical
5 change; revising circumstances under which the
6 Department of Commerce disqualifies claimants from
7 benefits; requiring the department to maintain a web
8 page and an e-mail address for a specified purpose and
9 to notify employers each year of the web page and e-
10 mail address; creating s. 443.1112, F.S.; requiring
11 the department to verify claimants' identities before
12 paying benefits; requiring the department to weekly
13 cross-check certain information; providing sources
14 against which such information is cross-checked;
15 prohibiting benefits from being paid for claims that
16 have not been cross-checked; providing duties of the
17 department; providing annual reporting requirements;
18 amending s. 445.003, F.S.; requiring the department to
19 procure an online workforce search and match tool for
20 a specified purpose; providing requirements for such
21 tool; providing an effective date.
22
23 Be It Enacted by the Legislature of the State of Florida:
24
25 Section 1. This act may be cited as the "Promoting Work,
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26 Deterring Fraud Act of 2024."
27 Section 2. Subsection (2) of section 443.101, Florida
28 Statutes, is amended to read:
29 443.101 Disqualification for benefits.—An individual shall
30 be disqualified for benefits:
31 (2) If the Department of Commerce Economic Opportunity
32 finds that the individual has failed without good cause to apply
33 for available suitable work, failed to contact at least five
34 prospective employers per week in accordance with s. 443.091
35 unless otherwise exempt, failed to appear on three or more
36 occasions for a scheduled job interview, failed to accept within
37 2 business days suitable work when offered to him or her, or
38 failed to return to the individual's customary self-employment
39 when directed by the department or when recalled to work by his
40 or her former employer, the disqualification continues for the
41 full period of unemployment next ensuing after he or she failed
42 without good cause to apply for available suitable work, accept
43 suitable work, or return to his or her customary self -
44 employment, and until the individual has earned income of at
45 least 17 times his or her weekly benefit amount. The department
46 shall by rule adopt criteria for determining the "suitability of
47 work," as used in this section. In developing these rules, the
48 department shall consider the duration of a claimant's
49 unemployment in determining the suitability of work and the
50 suitability of proposed rates of compensation for available
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51 work. Further, after an individual has received 25 weeks of
52 benefits in a single year, suitable work is a job that pays the
53 minimum wage and is 120 percent or more of the weekly benefit
54 amount the individual is drawing.
55 (a) In determining whether or not any work is suitable for
56 an individual, the department shall consider the degree of risk
57 to the individual's health, safety, and morals; the individual's
58 physical fitness, prior training, experience, prior earnings,
59 length of unemployment, and prospects for securing local work in
60 his or her customary occupation; and the distance of the
61 available work from his or her residence.
62 (b) Notwithstanding any other provisions of this chapter,
63 work is not deemed suitable and benefits may not be denied to
64 any otherwise eligible individual for refusing to accept new
65 work under any of the following conditions:
66 1. The position offered is vacant due directly to a
67 strike, lockout, or other labor dispute.
68 2. The wages, hours, or other conditions of the work
69 offered are substantially less favorable to the individual than
70 those prevailing for similar work in the locality.
71 3. As a condition of being employed, the individual is
72 required to join a company union or to resign from or refrain
73 from joining any bona fide labor organization.
74 (c) If the department finds that an individual was
75 rejected for offered employment as the direct result of a
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76 positive, confirmed drug test required as a condition of
77 employment, the individual is disqualified for refusing to
78 accept an offer of suitable work.
79 (d) The department shall maintain a web page and an e-mail
80 address through which employers may report known or suspected
81 violations of this section. Each year the department shall
82 notify employers in the state of this web page and e-mail
83 address for reporting violations.
84 Section 3. Section 443.1112, Florida Statutes, is created
85 to read:
86 443.1112 Verification of reemployment assistance benefit
87 eligibility.—
88 (1) The Department of Commerce shall verify the identity
89 of each claimant who applies for reemployment assistance
90 benefits before paying any benefits to that individual.
91 (2) In determining the eligibility of a claim for
92 reemployment assistance benefits, the department shall weekly
93 cross-check the information contained in the claim with all of
94 the following sources or similar sources of information:
95 (a) The National Association of State Workforce Agencies
96 Integrity Data Hub.
97 (b) The United States Department of Health and Human
98 Services National Directory of New Hires.
99 (c) The State Directory of New Hires created in s.
100 409.2576.
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101 (d) The Department of Corrections inmate database .
102 (e) The Social Security Administration Prisoner Update
103 Processing System.
104 (f) The Centers for Disease Control and Prevention
105 National Vital Statistics System death records database.
106 (g) The Department of Health Bureau of Vital Statistics
107 death records database.
108 (h) The United States Citizenship and Immigration Services
109 SAVE database.
110 (3) Reemployment assistance benefits administered by the
111 department may not be paid for any claim that has not been
112 cross-checked against all the sources specified in subsection
113 (2) or similar sources of information.
114 (4) The department shall do all of the following:
115 (a) Investigate any claim indicating suspicious activity
116 associated with a mailing address, a bank account, an e -mail
117 address, a telephone number, or an Internet protocol address
118 that is associated with another existing claim for reemployment
119 assistance benefits and verify that the claim is legitimate and
120 not fraudulent before paying any benefits for the claim.
121 (b) Scrutinize any claim filed from a foreign Internet
122 protocol address before paying any benefits for the claim.
123 (c) Work with the United States Department of Labor, other
124 workforce agencies outside the state, the Office of the Attorney
125 General, the Department of Law Enforcement, or other re levant
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126 law enforcement entities to share information related to
127 fraudulent claims or attempted fraudulent claims to the extent
128 feasible for further investigation and prosecution.
129 (d) Each year, submit to the Legislature and make
130 available on its website a report identifying the number of
131 fraudulent reemployment assistance claims identified for the
132 prior year, the number of claims not paid due to successful
133 detection of fraudulent intentions, the number of claims and the
134 amount of reemployment assistance benefits paid against claims
135 subsequently identified as fraudulent, the amount of fraudulent
136 overpayments recovered, and the number of fraudulent claims
137 referred for investigation and possible prosecution. The report
138 must also list the sources of information that were used to
139 cross-check claims during the reporting period.
140 Section 4. Subsection (8) is added to section 445.003,
141 Florida Statutes, to read:
142 445.003 Implementation of the federal Workforce Innovation
143 and Opportunity Act.—
144 (8) ONLINE WORKFORCE SEARCH AND MATCH TOOL.—The
145 department, in alignment with the implementation of 20 C.F.R. s.
146 652.3 to administer a public labor exchange services system,
147 shall procure a modernized online workforce search and match
148 tool that includes artificial intelligence generation for the
149 purpose of matching participants to jobs and training
150 opportunities. The tool must be interoperable through an
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151 application programming interface with the consumer -first
152 workforce system implemented in s. 445.011, and the tool must
153 include a knowledge, skills, and interests assessment for the
154 purpose of guiding participants to jobs and training
155 opportunities.
156 Section 5. This act shall take effect July 1, 2024.
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COMMERCE COMMITTEE
CS/HB 1289 by Rep. Abbott
Verification of Reemployment Assistance Benefit Eligibility
AMENDMENT SUMMARY
February 22, 2024
Amendment 1 by Rep. Abbott (Strike-All): The amendment:
• Revises reemployment assistance eligibility requirements and adds more conditions that
can disqualify an individual from receiving benefits;
• Requires the Department of Commerce (department) to:
o Maintain a web page and e-mail address for employers to report violations of the
disqualification for benefits provisions,
o Verify the identity of each claimant who applies for reemployment assistance
before paying any benefits to that individual, and
o Cross-check the information contained in a claim with various specified national
and state databases; and
• Prohibits the department from paying benefits to a claimant that has not been cross-
checked against all the databases specified in the bill or similar sources of information.
COMMITTEE/SUBCOMMITTEE AMENDMENT
Bill No. CS/HB 1289 (2024)
Amendment No. 1
COMMITTEE/SUBCOMMITTEE ACTION
ADOPTED (Y/N)
ADOPTED AS AMENDED (Y/N)
ADOPTED W/O OBJECTION (Y/N)
FAILED TO ADOPT (Y/N)
WITHDRAWN (Y/N)
OTHER
1 Committee/Subcommittee hearing bill: Commerce Committee
2 Representative Abbott offered the following:
3
4 Amendment (with title amendment)
5 Remove everything after the enacting clause and insert:
6 Section 1. This act may be cited as the "Promoting Work,
7 Deterring Fraud Act of 2024."
8 Section 2. Subsection (2) of section 443.101, Florida
9 Statutes, is amended to read:
10 443.101 Disqualification for benefits.—An individual shall
11 be disqualified for benefits:
12 (2) If the Department of Commerce Economic Opportunity
13 finds that the individual has failed without good cause to apply
14 for available suitable work, including contacting the required
15 number of prospective employers per week for any week of
16 unemployment claimed in the benefit year in accordance with s.
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COMMITTEE/SUBCOMMITTEE AMENDMENT
Bill No. CS/HB 1289 (2024)
Amendment No. 1
17 443.091, failed to appear on three or more occasions for a
18 scheduled job interview, accept suitable work when offered to
19 him or her, or return to the individual's customary self-
20 employment when directed by the department or return to
21 employment when recalled to work by the individual's employer
22 after a temporary layoff, the disqualification continues for the
23 full period of unemployment next ensuing after he or she failed
24 without good cause to apply for available suitable work, accept
25 suitable work, or return to his or her customary self -
26 employment, and until the individual has earned income of at
27 least 17 times his or her weekly benefit amount. The department
28 shall by rule adopt criteria to implement this subsection,
29 including for determining the "suitability of work," as used in
30 this section. In developing these rules, the department shall
31 consider the duration of a claimant's unemployment in
32 determining the suitability of work and the suitability of
33 proposed rates of compensation for available work. Further,
34 after an individual has received 25 weeks of benefits in a
35 single year, suitable work is a job that pays the minimum wage
36 and is 120 percent or more of the weekly benefit am ount the
37 individual is drawing.
38 (a) In determining whether or not any work is suitable for
39 an individual, the department shall consider the degree of risk
40 to the individual's health, safety, and morals; the individual's
41 physical fitness, prior training, experience, prior earnings,
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COMMITTEE/SUBCOMMITTEE AMENDMENT
Bill No. CS/HB 1289 (2024)
Amendment No. 1
42 length of unemployment, and prospects for securing local work in
43 his or her customary occupation; and the distance of the
44 available work from his or her residence.
45 (b) Notwithstanding any other provisions of this chapter,
46 work is not deemed suitable and benefits may not be denied to
47 any otherwise eligible individual for refusing to accept new
48 work under any of the following conditions:
49 1. The position offered is vacant due directly to a
50 strike, lockout, or other labor dispute.
51 2. The wages, hours, or other conditions of the work
52 offered are substantially less favorable to the individual than
53 those prevailing for similar work in the locality.
54 3. As a condition of being employed, the individual is
55 required to join a company union or to resign from or refrain
56 from joining any bona fide labor organization.
57 (c) If the department finds that an individual was
58 rejected for offered employment as the direct result of a
59 positive, confirmed drug test required as a condition of
60 employment, the individual is disqualified for refusing to
61 accept an offer of suitable work.
62 Section 3. Section 443.1112, Florida Statutes, is created
63 to read:
64 443.1112 Verification of reemployment assistance benefit
65 eligibility; detection of fraud.—
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COMMITTEE/SUBCOMMITTEE AMENDMENT
Bill No. CS/HB 1289 (2024)
Amendment No. 1
66 (1) The Department of Commerce shall verify the identity
67 of each claimant who applies for reemployment assistance
68 benefits before paying any benefits to that individual.
69 (2) For the initial claim for benefits made by a claimant
70 and as necessary to verify a claimant's eligibility for
71 benefits, the department shall cross-check the information
72 contained in the claim with information in the United States
73 Citizenship and Immigration Services SAVE database.
74 (3) For each week which a claimant makes a claim for
75 benefits, including the initial claim for benefits, to verify a
76 claimant's eligibility for benefits the department shall cross-
77 check the information contained in the claim with all of the
78 following sources or similar sources of information:
79 (a) The National Association of State Workforce Agencies
80 Integrity Data Hub.
81 (b) The United States Department of Health and Human
82 Services National Directory of New Hires.
83 (c) The State Directory of New Hires created in s.
84 409.2576.
85 (d) The Department of Corrections inmate database.
86 (e) The Social Security Administration Prisoner Update
87 Processing System.
88 (f) The Centers for Disease Control and Prevention
89 National Vital Statistics System death records database.
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COMMITTEE/SUBCOMMITTEE AMENDMENT
Bill No. CS/HB 1289 (2024)
Amendment No. 1
90 (g) The Department of Health Bureau of Vital Stat istics
91 death records database.
92 (4) The department may not pay any week claimed by a
93 claimant that has not been cross-checked against all the sources
94 specified in subsections (2) and (3), as appropriate, or similar
95 sources of information. However, in any week in which any of the
96 sources specified are unavailable, the claim may be paid
97 provided the department cross-checks the claimant's information
98 against the unavailable source upon its availability.
99 (5) The department shall do all of the following:
100 (a) Investigate any claim in this state associated with a
101 mailing address, a bank account, an e-mail address, a telephone
102 number, or an Internet protocol address that is also associated
103 with another existing claim for reemployment assistance benefits
104 in this state or another state and verify that the claim in this
105 state is legitimate and not fraudulent before paying any
106 benefits for the claim.
107 (b) Scrutinize any claim in this state filed from a
108 foreign Internet protocol address before paying any benefits fo r
109 the claim.
110 (c) Work with the United States Department of Labor, the
111 United States Department of Justice, other state workforce
112 agencies, the Department of Law Enforcement, the state
113 attorneys, or the Office of the Statewide Prosecutor to share
114 information related to fraudulent claims or attempted fraudulent
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COMMITTEE/SUBCOMMITTEE AMENDMENT
Bill No. CS/HB 1289 (2024)
Amendment No. 1
115 claims to the extent feasible for further investigation and
116 proceedings brought under this chapter.
117 (d) Maintain a web page and an e-mail address through
118 which an individual or an employer may report known or suspected
119 violations of this chapter, including identity theft or fraud.
120 Each year the department shall notify employers in the state of
121 this web page and e-mail address for reporting violations.
122 (e) Each year make available on its website a report
123 identifying the number of fraudulent reemployment assistance
124 claims identified for the prior year, the number of claims not
125 paid due to successful detection of fraudulent intentions, the
126 number of claims and the amount of reemployment assistance
127 benefits paid against claims subsequently identified as
128 fraudulent, the amount of fraudulent overpayments recovered, and
129 the number of fraudulent claims referred for investigation and
130 possible prosecution. The report must also list the sources of
131 information that were used to cross-check claims during the
132 reporting period.
133 Section 4. Paragraph (b) of subsection (1) of section
134 445.011, Florida Statutes, is amended to read:
135 445.011 Consumer-first workforce system.—
136 (1) The department, in consultation with the state board,
137 the Department of Education, and the Department of Children and
138 Families, shall implement, subject to legislative appropriation,
139 an automated consumer-first workforce system that improves
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COMMITTEE/SUBCOMMITTEE AMENDMENT
Bill No. CS/HB 1289 (2024)
Amendment No. 1
140 coordination among required one-stop partners and is necessary
141 for the efficient and effective operation and management of the
142 workforce development system. This system shall include, but
143 need not be limited to, the following:
144 (b)1. An automated job-matching information system that is
145 accessible to employers, job seekers, and other users via the
146 Internet, which is in alignment with the implementation of 20
147 C.F.R. s. 652.3, and that includes, at a minimum:
148 a.1. Skill match information, including skill gap
149 analysis; resume creation; job order creation; skill tests; job
150 search by area, employer type, and employer name; and training
151 provider linkage;
152 b.2. Job market information based on surveys, including
153 local, state, regional, national, and international occupational
154 and job availability information; and
155 c.3. Service provider information, including education and
156 training providers, child care facilities and related
157 information, health and social service agencies, and other
158 providers of services that would be useful to job seekers.
159 2. The job-matching information system shall use
160 artificial intelligence generation for the purpose of matching
161 participants to jobs and training opportunities and include a
162 knowledge, skills, and interests assessment for the purpose of
163 guiding participants to jobs and training opportunities.
164 Section 5. This act shall take effect July 1, 2024.
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Bill No. CS/HB 1289 (2024)
Amendment No. 1
165
166 -----------------------------------------------------
167 T I T L E A M E N D M E N T
168 Remove everything before the enacting clause and insert:
169 A bill to be entitled
170 An act relating to verification of reemployment assistance
171 benefit eligibility; providing a short title; amending s.
172 443.101, F.S.; making a technical change; revising circumstances
173 under which the department disqualifies claimants from benefits;
174 creating s. 443.1112, F.S.; requiring the department to verify
175 claimants' identities before paying benefits; requiring the
176 department to cross-check certain information; providing sources
177 against which such information is cross-checked; prohibiting
178 benefits from being paid for claims that have not been cross-
179 checked; providing an exception; providing duties of the
180 department; requiring the department to maintain a web page and
181 an e-mail address for a specified purpose and to notify
182 employers each year of the web page and e-mail address;
183 providing annual reporting requirements; amending s. 445.011,
184 F.S.; requiring the department's job-matching information system
185 to contain certain elements; providing an effective date.
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CS/HB 1419
HOUSE OF REPRESENTATIVES STAFF ANALYSIS
BILL #: CS/HB 1419 Department of Commerce
SPONSOR(S): Infrastructure & Tourism Appropriations Subcommittee, Tuck
TIED BILLS: IDEN./SIM. BILLS: CS/SB 1420
REFERENCE ACTION ANALYST STAFF DIRECTOR or
BUDGET/POLICY CHIEF
1) Regulatory Reform & Economic Development 15 Y, 0 N Bauldree Anstead
Subcommittee
2) Infrastructure & Tourism Appropriations 12 Y, 0 N, As CS McAuliffe Davis
Subcommittee
3) Commerce Committee Bauldree Hamon
SUMMARY ANALYSIS
The bill provides for the following changes that all impact the Department of Commerce (Commerce):
Provides that if the local government doesn’t hold a second public hearing and adopt a comprehensive
plan amendment within 180 days after Commerce provides comments, the amendment is deemed
withdrawn; and provides that comprehensive plan amendments are deemed withdrawn if the local
government fails to transmit the comprehensive plan amendment to Commerce within 10 working days
after the final adoption hearing.
Deletes a requirement that the Florida Sports Foundation must continue amateur sports programs
previously conducted by the Florida Governor’s Council on Physical Fitness and Amateur Sports.
Requires Commerce to establish a direct-support organization (DSO); renames the Florida Defense
Support Task Force; provides for organizational composition; revises the mission of the DSO; requires
the DSO to operate under a contract with Commerce; revises the due date for the annual report; and
provides a repeal date of October 1, 2029.
Revises the term “businesses” to include healthcare facilities and allied health care opportunities, and
revises the funding priority purposes to provide that health care facilities, in addition to hospitals, operated
by nonprofit or local government entities that provide opportunities in health care, are eligible for the
funding under the Incumbent Worker Training Program.
Specifies that board members of the State Workforce Development Board are voting members of the
board.
Extends the repayment period of the Local Government Emergency Revolving Bridge Loan Program from
five to 10 years and authorizes Commerce to amend existing loans executed before February 1, 2024, in
order to increase the loan term to a total of 10 years from the original date of execution.
Specifies that a homeowner’s association’s proposed revived declaration of covenants and articles of
incorporation and bylaws must be submitted to Commerce within 60 days after obtaining valid written
consent from a majority of the affected parcel owners, or within 60 days after the date the documents are
approved by affected parcel owners by a vote at a meeting.
The bill does not appear to have a fiscal impact on state or local government revenues or expenditures.
The bill provides an effective date of July 1, 2024, except as otherwise expressly stated in the bill.
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:
Florida Defense Support Task Force
Present Situation
In 2011,1 the Legislature created the Florida Defense Support Task Force (Task Force) with the
mission to make recommendations to preserve and protect military installations to support the state’s
position in research and development related to or arising out of military missions and contracting, and
to improve the state’s military-friendly environment for servicemembers, military dependents, military
retirees, and businesses that bring military and base-related jobs to the state.2
The task force is comprised of the Governor, or his or her designee, and 12 members comprised of four
members appointed by the Governor, President of the Senate, and Speaker of the House of
Representatives, respectively. Task Force members represent defense-related industries or
communities that host military bases and installations.3 With the exception of Legislative members,
Task Force members serve for a term of four years. Vacancies are to be filled for the remainder of the
unexpired term in the same manner as the initial appointment. Legislative members serve until the
expiration of their legislative term and may be reappointed once. All members are eligible for
reappointment.4 The President and the Speaker each designate one of their appointees to serve as
chair and the chair must rotate each July 1.5 The Secretary of the Department of Commerce, or his or
her designee, serves as the ex officio, nonvoting executive director. 6
The Department of Commerce (Commerce) is required to contract with the task force for the
expenditure of appropriated funds, which may be used by the task force for:
Economic and product research and development;
Joint planning with host communities to accommodate military missions and prevent base
encroachment;
Advocacy on the state’s behalf with federal civilian and military officials;
Assistance to school districts in providing a smooth transition for large numbers of additional
military-related students;
Job training and placement for military spouses in communities with high proportions of active
duty military personnel; and
Promotion of the state to military and related contractors and employers. 7
The Task Force must submit an annual progress report and work plan to the Governor, the President,
and the Speaker each February 1.8
1 Chapter 2011-76, s. 38, Laws of Fla.
2 Section 288.987(2), F.S.
3 Section 288.987(3), F.S.
4 Section 288.987(3), F.S.
5 Section 288.987(4), F.S.
6 Section 288.987(5), F.S., actually states that the Secretary of Economic Opportunity serves as the ex officio, nonvoting exec utive
director; however, HB 5 from 2023 (enacted as Chapter 2023-173, Laws of Fla.) changed the name of the Department of Economic
Opportunity to the Department of Commerce.
7 Section 288.987(7), F.S.
8 Section 288.987(6), F.S.
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Effect of the Bill
The bill requires Commerce to establish a direct-support organization (DSO) to support Florida’s
military and defense industries and communities, and renames the Florida Defense Support Task
Force as the DSO. The DSO must operate under a contract with Commerce which must provide that:
Commerce may review the DSO’s articles of incorporation;
The DSO must submit an annual budget proposal to Commerce;
Any DSO funds held in a trust must revert to the state upon the expiration or cancellation of
the contract; and
The DSO is subject to an annual compliance review by Commerce.
The bill states that the DSO fiscal year begins on July 1 and ends on June 30 of the next succeeding
year. The DSO must also provide an annual financial audit.
The bill specifies that, under certain provisions of law, the DSO is not an agency for purposes of leasing
buildings or for bids for printing. However, the DSO must comply with per diem and travel expense
requirements. Commerce may allow the DSO to use the property, facilities, personnel, and services of
Commerce if the DSO provides equal employment opportunities to all persons regardless of race,
color, religion, sex, or national origin.
The bill revises the mission of the DSO. In addition to carrying out the provisions of the Task Force
under current law, the DSO must assist with the coordination of economic and workforce development
efforts in military communities and assist in the planning and research and development related to
military missions, businesses, and military families. Additionally, the DSO is organized and operated to:
Request, receive, hold, invest, and administer property;
Manage and make expenditures for the operation of the activities, services, functions, and
programs for economic and product research and development,
Conduct joint planning with host communities to accommodate military missions and prevent
base encroachment,
Advocate on the state’s behalf with federal civilian and military officials;
Assist school districts in providing a smooth transition for additional military-related students;
Provide job training and placement for military spouses in communities with high proportions
of active duty military personnel; and
Promote of the state to military and related contractors and employers.
Under the bill, the DSO must be governed by a board of directors composed of the Governor, or his or
her designee, four members appointed by the Governor, the President, and the Speaker. All
appointments in place as of July 1, 2024, must continue in effect until the expiration of the term. The
President and the Speaker each designate one of their appointees to serve as chair for a 2-year term
and the chair must rotate on July 1 of each odd-numbered year.
In the performance of its duties, the bill authorizes the DSO to make and enter into contracts as
necessary to carry out its mission. A proposed contract with a total cost of $750,000 or more is subject
to the noticing, review, and objection procedures provided in current law. The DSO may not divide one
proposed contract with a total cost of $750,000 or more into multiple contracts to circumvent the
prohibition. If the contract is contrary to legislative policy and intent, the DSO is prohibited from entering
into such contract. The DSO is also authorized to establish grant programs and administer grant
awards to support its mission.
The bill changes the due date for an annual report from February 1 to December 1.
Under the bill, unless the section establishing the DSO is reviewed and saved from repeal by the
Legislature, the DSO is repealed on October 1, 2029.
Comprehensive Plans
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Present Situation
The Community Planning Act (Act), codified in Part II of Ch. 163, F.S., promotes the establishment and
implementation of comprehensive planning programs to guide and manage a local government’s
development.9 Through the comprehensive planning process, the Legislature intended that local
governments:
Preserve, promote, protect, and improve public health, safety, comfort, good order,
appearance, convenience, law enforcement and fire prevention, and general welfare;
Facilitate the adequate and efficient provision of transportation, water, sewerage, schools,
parks, recreational facilities, housing, and other requirements and services; and
Conserve, develop, utilize, and protect natural resources within their jurisdictions. 10
To that end, the Act requires each local government to adopt and maintain a comprehensive plan that
must provide the principles, guidelines, standards, and strategies for the orderly and balanced future
economic, social, physical, environmental, and fiscal development of the area. 11 Specifically, the
comprehensive plan must:
Identify programs and activities for ensuring the comprehensive plan’s implementation;
Establish meaningful and predictable standards for land use and development and meaningful
guidelines for the adoption of detailed land development regulations; 12 and
Consist of elements set out in statute that must be based upon relevant and appropriate data
and an analysis by the local government that may involve surveys, studies, community goals
and vision, and other data available at the plan’s adoption or amendment. 13
The state land planning agency that administers these provisions is Commerce.14
Comprehensive Plan Adoption
Each of Florida’s counties and municipalities has a comprehensive plan. 15 However, a newly-
incorporated municipality must follow the state coordinated review process to adopt a com prehensive
plan, which begins with an initial public hearing during which the municipality’s governing body decides
whether to transmit the plan to the reviewing agencies; 16 such decision must be by an affirmative vote
of at least a majority of the governing body’s members present at the hearing.17 The municipality must
then, within 10 working days of the hearing, transmit the proposed comprehensive plan to:
The reviewing agencies for comment or, if the reviewing agency is the state land planning
agency, for the production of the state land planning agency’s statutorily-required report;18 and
Any other local government or government agency that filed a written request for a copy of the
plan with the municipality.19
9 S. 163.3161(2), F.S.
10 S. 163.3161(4), F.S.
11 S. 163.3177(1) and (2), F.S.
12 “Land development regulations” means ordinances enacted to regulate any land development aspect, including zoning, rezoning,
subdivision, building construction, and sign regulation. Within one year after submitting a new or revised comprehensive plan , a local
government must adopt or amend and enforce land development regulations that are consistent with the plan. S. 163.3164(26), F .S.
13 A comprehensive plan may also consist of optional elements. S. 163.3177(1), F.S.
14 S. 163.3221(14), F.S.
15 For the purposes of the Act, a county’s authority extends to the total unincorporated area under its jurisdiction and to such
unincorporated areas not included in a joint agreement with a municipality. A municipality’s authority extends to the total a rea under its
jurisdiction and adjacent unincorporated areas included in a joint agreement with the county. S. 163.3171(1) and (2), F.S.; Fla. Dept. of
Environmental Protection, Comprehensive Plan, https://floridadep.gov/oip/oip/content/comprehensive-plan (last visited Jan. 27, 2024).
16 “Reviewing agencies” means the state land planning agency; the appropriate regional planning council and water management
district; the Florida Departments of Environmental Protection, State, and Transportation; the Florida Department of Edu cation, if the
plan amendment relates to public schools; the commanding officer of any affected military installation; the Florida Fish and Wildlife
Conservation Commission and Department of Agriculture and Consumer Services, in the case of county plans an d plan amendments;
and the county in which the municipality is located, in the case of municipal plans or plan amendments. S. 163.3184(1), F.S.
17 S. 163.3184(2), (4), and (11), F.S.
18 If the state land planning agency reviews a proposed comprehensive plan, it must issue a report stating its objections,
recommendations, and comments about the plan within 60 days of the plan’s transmission to the agency. The state land planning
agency is the Department of Economic Opportunity. S. 163.3184(4), F.S.; Fla. Dept. of Economic Opportunity, Community Planning,
Development, and Services, https://floridajobs.org/community-planning-and-development (last visited Jan. 27, 2023).
19 S. 163.3184(4), F.S.
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Within 180 days after receipt of the state land planning agency’s report, the municipality must hold a
second public hearing to determine whether to adopt the comprehensive plan; such determination must
be by an affirmative vote of at least a majority of the governing body’s members present at the
hearing.20 An adopted comprehensive plan, along with the supporting data and analyses, must be
transmitted within 10 working days of the adoption hearing to the state land planning agency and any
other agency or local government that provided timely comments.21 The state land planning agency
then reviews the package for completeness and publishes a notice of intent to find that the plan
complies or does not comply with the Act.22 A comprehensive plan takes effect pursuant to the notice of
intent.23
Comprehensive Plan Amendment
Comprehensive plan amendments are generally governed by the state expedited review process,
which typically begins with an initial public hearing when the local government’s governing body
decides whether to transmit the proposed amendment to the reviewing agencies. Such decision must
be by an affirmative vote of at least a majority of the governing body’s members present at the
hearing.24 Within 10 working days of such hearing, the local government must transmit the plan
amendment and appropriate supporting data and analyses to the reviewing agencies for expedited
comment25 and to any other local government or governmental agency that filed a written request for
such transmittal with the local government.26 Interested persons may also provide the local government
with written or oral comments, recommendations, or objections to the plan amendment. 27
Within 180 days after receipt of agency comments, the local government must hold a second public
hearing to determine whether to adopt the plan amendment.28 However, where the proposed plan
amendment is a small-scale development amendment,29 the local government must hold only the
public adoption hearing; an initial public hearing is not required. 30 In either case, plan amendment
adoption must be by an affirmative vote of at least a majority of the governing body’s members present
at the hearing, and failure to hold a timely adoption hearing causes the amendment to be deemed
withdrawn unless the timeframe is extended by agreement with specified notice to the state land
planning agency and other parties.31
Within 10 working days of the adoption hearing, the local government must transmit the plan
amendment to the state land planning agency and any affected person who provided timely comments
on the amendment.32 The state land planning agency must review the amendment package for any
deficiencies and send notice of such deficiencies to the local government within five working days of
receipt of the amendment package.33 If no deficiencies are found, the amendment takes effect 31 days
after the state land planning agency notifies the local government that the amendment package is
complete.34
Effect of the Bill
20 S. 163.3184(4) and (11), F.S.
21
S. 163.3184(4), F.S.
22 Id.
23 Id.
24 The state coordinated review process applies to plan amendments that are in an area of critical state concern; propose a rura l land
stewardship area; propose a sector plan or an amendment to an adopted sector plan; or update a comprehensive plan based on an
evaluation and appraisal. S. 163.3184(4) and (11), F.S.
25 The expedited review process is set out in s. 163.3184(3), F.S.
26 S. 163.3184(3), F.S.
27 Id.
28 Id.
29 A “small-scale development amendment” involves a use of 50 acres or fewer; only proposes a lan d use change to the future land use
map for a site-specific small-scale development activity; and applies to property not located within an area of critical state concern,
absent an exception related to affordable housing development. Id.
30 Ss. 163.3184(2) and 163.3187(2), F.S.
31 S. 163.3184(3), (4), and (11), F.S.
32 Id.
33 Id.
34 Id.
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The bill provides that if the local government does not hold a second public hearing and adopt a
comprehensive plan amendment within 180 days after Commerce provides comments, the amendment
is deemed withdrawn.
The bill provides that if the local government fails to transmit the comprehensive plan amendment to
Commerce within 10 working days after the final adoption hearing, the amendment is deemed
withdrawn.
Florida Sports Foundation
Present Situation
The Florida Sports Foundation is a 501(c)(3) non-profit corporation, serving as the official sports
promotion and development organization for the State of Florida. It is charged with the promotion and
development of professional, amateur, and recreational sports, physical fitness opportunities, and
assisting communities and host organizations in attracting major and minor sports events to help
produce a thriving Florida sports industry and environment. 35 Under its duty to promote amateur sports
and physical fitness, the Florida Sports Foundation must continue the successful amateur sports
programs previously conducted by the Florida Governor’s Council on Physical Fitness and Amateur
Sports.36
Effect of the Bill
The bill removes an outdated requirement that the Florida Sports Foundation must continue amateur
sports programs previously conducted by the Florida Governor’s Council on Physical Fitness and
Amateur Sports.
Florida Defense Support Task Force Public Records and Meetings Exemption
Present Situation
Current law provides a public record exemption for certain records held by the Task Force. Specifically,
the following records are exempt37 from public records requirements:38
That portion of a record that relates to strengths and weaknesses of military installations or
military missions in Florida relative to the selection criteria for the realignment and closure of
military bases and missions under the United States base realignment and closure (BRAC)
process.
That portion of a record that relates to strengths and weaknesses of military installations or
military missions in other state or territories and the vulnerability of such installations or
missions to base realignment or closure under the United States BRAC process, and any
agreements or proposals to relocate or realign military units and missions from other states or
territories.
That portion of a record that relates to Florida’s strategy to retain its military bases during any
United States BRAC process and any agreements or proposals to relocate or realign military
units and missions.
35 S. 288.1229, F.S.
36 S. 288.1229(7)(g), F.S.
37 There is a difference between records the Legislature designates exempt from public record requirements and those the Legislature
designates confidential and exempt. A record classified as exempt from public disclosure may be disclosed under certain
circumstances. See WFTV, Inc. v. Sch. Bd. of Seminole, 874 So.2d 48, 53 (Fla. 5th DCA 2004), review denied, 892 So.2d 1015 (Fla.
2004); State v. Wooten, 260 So. 3d 1060, 1070 (Fla. 4th DCA 2018); City of Rivera Beach v. Barfield, 642 So.2d 1135 (Fla. 4th DCA
1994); Williams v. City of Minneola, 575 So.2d 683, 687 (Fla. 5th DCA 1991). If the Legislature designates a record as confidential and
exempt from public disclosure, such record may not be released by the custodian of public records to anyone other than the pe rsons or
entities specifically designated in statute. See Op. Att’y Gen. Fla. 04 - 09 (2004).
38 S. 288.985(1)(a)-(c), F.S.
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Current law also provides a public meeting exemption for any portion of a meeting of the Task Force, or
a workgroup of the Task Force, wherein such exempt records are presented or discussed. 39 In addition,
any records generated during the closed portion of the meeting are exempt from public record
requirements.40
Effect of the Bill
The bill makes conforming changes to the public records exemption by changing the custodian of the
records to the direct-support organization created in s. 288.987, F.S.
Incumbent Worker Training Program and CareerSource Florida, Inc.
Present Situation
Workforce Innovation and Opportunity Act of 2014
In 2014, Congress passed the Workforce Innovation and Opportunity Act (WIOA), which superseded
the Workforce Investment Act of 1998.41 WIOA requires each state to develop a single, unified plan for
aligning workforce services through the identification and evaluation of core workforce programs. 42
WIOA identifies four core programs that coordinate and complement each other to ensure job seekers
have access to needed resources.43 The core programs are:
Adult, Dislocated Worker and Youth Programs;
Adult Education and Literacy Activities;
Employment Services under the Wagner-Peyser Act;44 and
Vocational Rehabilitation Services.45
WIOA establishes minimum performance accountability measures for the evaluation of core programs
in each state and performance reports to be provided at the state, local, and training provider levels. 46
Performance measures that apply across all core programs include: 47
The percentage of participants in unsubsidized employment during second quarter after exit.
The percentage of participants in unsubsidized employment during fourth quarter after exit.
The median earnings of participants during second quarter after exit.
The percentage of participants who obtain a postsecondary credential or secondary school
diploma within one year after exit.
The achievement of measureable skill gains toward credentials or employment; and
The effectiveness in serving employers.
State Administration of Workforce Development
WIOA requires the Governor to establish a State Workforce Development Board (state board) to assist
the Governor in carrying out the duties and responsibilities required by WIOA. 48 CareerSource Florida,
Inc., implements the policy directives of the state board and administers state workforce development
programs.49 CareerSource Florida, Inc., provides administrative support to the state board, the principal
workforce policy organization for the state. WIOA state board members are nonvoting and the number
of members is determined by the Governor.50
39 S. 288.985(2), F.S.
40 S. 288.985(3), F.S.
41 Workforce Innovation and Opportunity Act, 29 U.S.C. s. 3101 et seq. (2014).
42 See 29 U.S.C. s. 3112(a).
43 See 29 U.S.C. s. 3102(13).
44 See 29 U.S.C. s. 49 et seq.
45 See 29 U.S.C. s. 720 et. seq.
46 See 29 U.S.C. s. 3141.
47 Id.
48 29 U.S.C. s. 3111.
49 S. 445.004(2), F.S.
50 S. 445.004(3)(a), F.S.
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WIOA requires states to designate local workforce development areas in the state. The local workforce
development areas must be consistent with labor market areas and regional economic development
areas in the state and have available federal and non-federal resources necessary to effectively
administer workforce development services.51 Within each area, a local workforce development board
must be established.52 Each local workforce development board is required to coordinate planning and
service delivery strategies within the local workforce development area and submit to the Governor a 4-
year local plan for the delivery of workforce development services.53
Commerce serves as Florida’s lead workforce agency. 54 Commerce is responsible for the fiscal and
administrative affairs of the workforce development system. 55 Commerce receives and distributes
federal funds for employment-related programs to the local workforce development boards.56 Under the
direction of CareerSource, Commerce is required to annually meet with each local workforce
development board to review the board’s performance and to certify that the board is in compliance
with applicable state and federal laws.57
Incumbent Worker Training Program
The Incumbent Worker Training Program (program) was created to provide grant funding for continuing
education and training of incumbent employees at existing Florida businesses. The program provides
reimbursement grants to businesses that pay for preapproved, direct, training-related costs. The term
“business” includes hospitals operated by nonprofit or local government entities which provide nursing
opportunities to acquire new or improved skills. 58
Funding priority is given in the following order:59
Businesses that provide employees with opportunities to acquire new or improved skills by
earning a credential on the Master Credentials List;
Hospitals operated by nonprofit or local government entities that provide nursing opportunities
to acquire new or improved skills;
Businesses whose grant proposals represent a significant upgrade in employee skills;
Businesses with 25 employees or fewer, businesses in rural areas, and businesses in
distressed inner-city areas; and
Businesses in a qualified targeted industry or businesses whose grant proposals represent a
significant layoff avoidance strategy.
Effect of the Bill
The bill revises the term “businesses” under the program to include healthcare facilities and allied
health care opportunities. The bill also revises the funding priority for grant purposes to provide that
health care facilities, in addition to hospitals, operated by nonprofit or local government entities that
provide opportunities in health care, rather than nursing opportunities, are eligible for the funding.
The bill specifies that WIOA state board members are voting members.
Revitalization of Homeowner Association Covenants
Present Situation
51 See 29 U.S.C. s. 3121.
52 29 U.S.C. s. 3122.
53 See 29 U.S.C. ss. 3122 and 3123.
54 Primarily through the Division of Workforce Services. See s. 20.60, F.S.
55 See s. 20.60(5)(c), F.S. and s. 445.009(3)(c), F.S.
56 See s. 20.60(5)(c), F.S. and s. 445.003, F.S.
57 See s. 445.007(3), F.S.
58 S. 445.003(3)3., F.S.
59 Id.
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Parcel owners in a community that was previously subject to a declaration of covenants that has
ceased to govern one or more parcels in the community may revive the declaration and the association
for the community upon approval by the parcel owners to be governed as provided in the Covenant
Revitalization Act60 and upon approval of the declaration and the other governing documents for the
association by Commerce.61
No later than 60 days after the date the proposed revived declaration and other governing documents
are approved by the affected parcel owners, the organizing committee must submit the proposed
revived governing documents and any supporting materials to Commerce to review and determine
whether to approve or disapprove of the proposal to preserve the residential community. 62
Commerce must make a determination no later than 60 days and must notify the organizing committee
in writing of its approval or reasons for the disapproval.63
Effect of Proposed Changes
The bill specifies that a homeowner’s association’s proposed revived declaration of covenants and
articles of incorporation and bylaws must be submitted to Commerce within 60 days after obtaining
valid written consent from a majority of the affected parcel owners, or within 60 days after the date the
documents are approved by affected parcel owners by a vote at a meeting.
Local Government Emergency Revolving Bridge Loan Program
Present Situation
The Local Government Emergency Revolving Bridge Loan provides financial assistance to local
governments impacted by federally declared disasters. The purpose of the loan program is to assist
these local governments in maintaining operations by bridging the gap between the time that the
declared disaster occurred and the time that additional funding sources or revenues are secured to
provide them with financial assistance.64
The loans are interest-free with the loan amount determined based upon demonstrated need. The term
of the loan is up to five years.65 To be eligible, a local government must be a county or a municipality
located in an area designated in the Federal Emergency Management Agency disaster declaration.
The local government must show that it may suffer or has suffered substantial loss of its tax or other
revenues as a result of the disaster and demonstrate a need for financial assistance to enable it to
continue to perform its government operations.66
The program expires July 1, 2038, and a loan may not be awarded after June 30, 2038. Upon
expiration, all unencumbered funds and loan repayments made on or after July 1, 2038, must be
transferred to the General Revenue Fund.67
Effect of Proposed Changes
The bill amends s. 288.066, F.S., to extend the repayment period of the program from 5 to 10 years.
Effective upon becoming a law, the bill also authorizes Commerce to amend any existing loans
executed before February 1, 2024, in order to increase the loan term to a total of 10 years from the
original date of execution.
60 Ch. 720, Part III, F.S.
61 S. 720.403(2), F.S.
62 S. 720.406(1), F.S.
63 S. 720.406(2), F.S.
64 S. 288.066(1), F.S.
65 S. 288.066(3), F.S.
66 S. 288.066(2), F.S.
67 S. 288.066(9), F.S.
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The bill provides an effective date of July 1, 2024, except the portion of the bill which authorizes
Commerce to amend any existing loans executed before February 1, 2024, which takes effect upon
becoming a law.
B. SECTION DIRECTORY:
Section 1: Amends s. 163.3175, F.S., relating to legislative findings on compatibility of development
with military installations; exchange of information between local governments and military installations.
Section 2: Amends s. 163.3184, F.S., relating to process for adoption of comprehensive plan or plan
amendment.
Section 3: Amends s. 288.066, F.S., extending the terms of loans provided under the Local
Government Emergency Revolving Bridge Loan Program.
Section 4: Amends s. 288.1229, F.S., relating to promotion and development of sports-related
industries and amateur athletics; direct-support organization established; powers and duties.
Section 5: Amends s. 288.980, F.S., relating to military base retention; legislative intent; grants
program.
Section 6: Amends s. 288.985, F.S., relating to exemptions from public records and public meetings
requirements.
Section 7: Amends s. 288.987, F.S., relating to the Florida Defense Support Task Force.
Section 8: Amends s. 445.003, F.S., relating to implementation of the federal Workforce Innovation
and Opportunity Act.
Section 9: Amends s. 445.004, F.S., relating to CareerSource Florida, Inc., and the state board;
creation; purpose; membership; duties and powers.
Section 10: Amends s. 720.406, F.S., relating to Department of Commerce; submission; review; and
determination.
Section 11: Authorizes the Department of Commerce to amend certain previously executed loan
agreements.
Section 12: Provides an effective date of July 1, 2024, except as otherwise expressly stated in the bill.
II. FISCAL ANALYSIS & ECONOMIC IMPACT STATEMENT
A. FISCAL IMPACT ON STATE GOVERNMENT:
1. Revenues:
None.
2. Expenditures:
Indeterminate, however it does not appear the bill will require any expenditures that the department
cannot absorb within existing resources.
B. FISCAL IMPACT ON LOCAL GOVERNMENTS:
1. Revenues:
None.
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2. Expenditures:
None.
C. DIRECT ECONOMIC IMPACT ON PRIVATE SECTOR:
Not applicable. This bill does not appear to affect county or municipal governments.
D. FISCAL COMMENTS:
None.
III. COMMENTS
A. CONSTITUTIONAL ISSUES:
1. Applicability of Municipality/County Mandates Provision:
Not applicable.
2. Other:
None.
B. RULE-MAKING AUTHORITY:
The bill does not authorize or require rulemaking.
C. DRAFTING ISSUES OR OTHER COMMENTS:
None.
IV. AMENDMENTS/COMMITTEE SUBSTITUTE CHANGES
On February 13, 2024, the Infrastructure & Tourism Appropriations Subcommittee adopted one
amendment to the bill and reported the bill favorably as a committee substitute. The amendment:
Removes the provision that requires the Secretary of Commerce, rather than the Governor, to
appoint commissioners of deeds who authenticate acknowledgements in certain real estate
transactions outside of Florida.
Extends the repayment period of the Local Government Emergency Revolving Bridge Loan
Program from five to 10 years and authorizes Commerce to amend existing loans executed
before February 1, 2024, in order to increase the loan term to a total of 10 years from the
original date of execution.
The analysis is drafted to the committee substitute as approved by the Infrastructure & Tourism
Appropriations Subcommittee.
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F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
CS/HB 1419 2024
1 A bill to be entitled
2 An act relating to the Department of Commerce;
3 amending s. 163.3175, F.S.; conforming a provision to
4 changes made by the act; amending s. 163.3184, F.S.;
5 revising the procedure for adopting comprehensive plan
6 amendments; providing that amendments are deemed
7 withdrawn if the local government fails to transmit
8 the comprehensive plan amendments to the department,
9 in its role as the state land planning agency, within
10 a certain time period; amending s. 288.066, F.S.;
11 increasing the authorized term of a loan provided
12 under the Local Government Emergency Revolving Bridge
13 Loan Program; amending s. 288.1229, F.S.; revising the
14 duties of the Florida Sports Foundation; amending ss.
15 288.980 and 288.985, F.S.; conforming provisions to
16 changes made by the act; amending s. 288.987, F.S.;
17 requiring the department to establish a direct-support
18 organization; renaming the Florida Defense Support
19 Task Force as the direct-support organization;
20 specifying that the organization is a direct-support
21 organization of the department and a corporation not
22 for profit; requiring the organization to operate
23 under contract with the department; specifying
24 requirements for such contract; specifying the
25 organization's fiscal year; specifying audit
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26 requirements applicable to the organization;
27 authorizing the organization to take certain actions
28 regarding administration of property and expenditures;
29 specifying that the organization is not an agency for
30 purposes of specified provisions of law; authorizing
31 the department to allow the organization to use
32 certain departmental resources, if certain conditions
33 are met; revising the mission of the organization;
34 modifying provisions governing the composition of the
35 organization; revising the date by which the
36 organization's annual report is due; providing certain
37 powers and duties of the organization, subject to
38 certain requirements and limitations; providing for
39 future repeal; amending s. 445.003, F.S.; revising the
40 definition of the term "businesses"; revising funding
41 priority for purposes of funding grants under the
42 Incumbent Worker Training Program; amending s.
43 445.004, F.S.; specifying that certain members of the
44 state workforce development board are voting members
45 of the board; amending s. 720.406, F.S.; specifying
46 required actions for a proposed revived declaration
47 and other governing documents; making technical
48 changes; authorizing the department to amend certain
49 loan agreements under certain circumstances; providing
50 effective dates.
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51
52 Be It Enacted by the Legislature of the State of Florida:
53
54 Section 1. Subsection (3) of section 163.3175, Florida
55 Statutes, is amended to read:
56 163.3175 Legislative findings on compatibility of
57 development with military installations; exchange of information
58 between local governments and military installations. —
59 (3) The direct-support organization created in s. 288.987
60 Florida Defense Support Task Force may recommend to the
61 Legislature changes to the military installations and local
62 governments specified in subsection (2) based on a military
63 base's potential for impacts from encroachment, and incompatible
64 land uses and development.
65 Section 2. Paragraph (c) of subsection (3) and paragraph
66 (e) of subsection (4) of section 163.3184, Florida Statutes, are
67 amended to read:
68 163.3184 Process for adoption of comprehensive plan or
69 plan amendment.—
70 (3) EXPEDITED STATE REVIEW PROCESS FOR ADOPTION OF
71 COMPREHENSIVE PLAN AMENDMENTS.—
72 (c)1. The local government shall hold a its second public
73 hearing, which shall be a hearing on whether to adopt one or
74 more comprehensive plan amendments pursuant to subsection (11).
75 If the local government fails, within 180 days after receipt of
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76 agency comments, to hold the second public hearing, and to adopt
77 the comprehensive plan amendments, the amendments are shall be
78 deemed withdrawn unless extended by agreement with notice to the
79 state land planning agency and any affected person that provided
80 comments on the amendment. The 180-day limitation does not apply
81 to amendments processed pursuant to s. 380.06.
82 2. All comprehensive plan amendments adopted by the
83 governing body, along with the supporting data and analysis,
84 shall be transmitted within 10 working days after the final
85 adoption second public hearing to the state land planning agency
86 and any other agency or local government that provided timely
87 comments under subparagraph (b)2. If the local government fails
88 to transmit the comprehensive plan amendments within 10 working
89 days after the final adoption hearing, the amendments are deemed
90 withdrawn.
91 3. The state land planning agency shall notify the local
92 government of any deficiencies within 5 working days after
93 receipt of an amendment package. For purposes of completeness,
94 an amendment shall be deemed complete if it contains a full,
95 executed copy of:
96 a. The adoption ordinance or ordinances;
97 b. In the case of a text amendment, a full copy of the
98 amended language in legislative format with new words inserted
99 in the text underlined, and words deleted stricken with hyphens;
100 c. In the case of a future land use map amendment, a copy
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101 of the future land use map clearly depicting the parcel, its
102 existing future land use designation, and its adopted
103 designation; and
104 d. a copy of Any data and analyses the local government
105 deems appropriate.
106 4. An amendment adopted under this paragraph does not
107 become effective until 31 days after the state land planning
108 agency notifies the local government that the plan amendment
109 package is complete. If timely challenged, an amendment does not
110 become effective until the state land planning agency or the
111 Administration Commission enters a final order determining the
112 adopted amendment to be in compliance.
113 (4) STATE COORDINATED REVIEW PROCESS.—
114 (e) Local government review of comments; adoption of plan
115 or amendments and transmittal.—
116 1. The local government shall review the report submitted
117 to it by the state land planning agency, if any, and written
118 comments submitted to it by any other person, agency, or
119 government. The local government shall, upon receipt of the
120 report from the state land planning agency, shall hold its
121 second public hearing, which shall be a hearing to determine
122 whether to adopt the comprehensive plan or one or more
123 comprehensive plan amendments pursuant to subsection (11). If
124 the local government fails to hold the second hearing and adopt
125 the amendments within 180 days after receipt of the state land
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126 planning agency's report, the amendments shall be deemed
127 withdrawn unless extended by agreement with notice to the state
128 land planning agency and any affected person that provided
129 comments on the amendment. The 180-day limitation does not apply
130 to amendments processed pursuant to s. 380.06.
131 2. All comprehensive plan amendments adopted by the
132 governing body, along with the supporting data and analysis,
133 shall be transmitted within 10 working days after the final
134 adoption second public hearing to the state land planning agency
135 and any other agency or local government that provided timely
136 comments under paragraph (c). If the local government fails to
137 transmit the comprehensive plan amendments within 10 working
138 days after the final adoption hearing, the amendments are deemed
139 withdrawn.
140 3. The state land planning agency shall notify the local
141 government of any deficiencies within 5 working days after
142 receipt of a plan or plan amendment package. For purposes of
143 completeness, a plan or plan amendment shall be deemed complete
144 if it contains a full, executed copy of each of the following:
145 a. The adoption ordinance or ordinances;
146 b. In the case of a text amendment, a full copy of the
147 amended language in legislative format with new words inserted
148 in the text underlined, and words deleted stricken with hyphens;
149 c. In the case of a future land use map amendment, a copy
150 of the future land use map clearly depicting the parcel, its
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151 existing future land use designation, and its adopted
152 designation; and
153 d. a copy of Any data and analyses the local government
154 deems appropriate.
155 4. After the state land planning agency makes a
156 determination of completeness regarding the adopted plan or plan
157 amendment, the state land planning agency shall have 45 days to
158 determine whether if the plan or plan amendment is in compliance
159 with this act. Unless the plan or plan amendment is
160 substantially changed from the one commented on, the state land
161 planning agency's compliance determination shall be limited to
162 objections raised in the objections, recommendations, and
163 comments report. During the period provided for in this
164 subparagraph, the state land planning agency shall issue,
165 through a senior administrator or the secretary, a notice of
166 intent to find that the plan or plan amendment is in compliance
167 or not in compliance. The state land planning agency shall post
168 a copy of the notice of intent on the agency's Internet website.
169 Publication by the state land planning agency of the notice of
170 intent on the state land planning agency's Internet site is
171 shall be prima facie evidence of compliance with the publication
172 requirements of this subparagraph.
173 5. A plan or plan amendment adopted under the state
174 coordinated review process shall go into effect pursuant to the
175 state land planning agency's notice of intent. If timely
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176 challenged, an amendment does not become effective until the
177 state land planning agency or the Administration Commission
178 enters a final order determining the adopted amendment to be in
179 compliance.
180 Section 3. Effective upon becoming a law, paragraph (c) of
181 subsection (3) of section 288.066, Florida Statutes, is amended
182 to read:
183 288.066 Local Government Emergency Revolving Bridge Loan
184 Program.—
185 (3) LOAN TERMS.—
186 (c) The term of the loan is up to 10 5 years.
187 Section 4. Paragraph (g) of subsection (7) of section
188 288.1229, Florida Statutes, is amended to read:
189 288.1229 Promotion and development of sports-related
190 industries and amateur athletics; direct-support organization
191 established; powers and duties.—
192 (7) To promote amateur sports and physical fitness, the
193 foundation shall:
194 (g) Continue the successful amateur sports programs
195 previously conducted by the Florida Governor's Council on
196 Physical Fitness and Amateur Sports created under former s.
197 14.22.
198 Section 5. Paragraph (b) of subsection (2) of section
199 288.980, Florida Statutes, is amended to read:
200 288.980 Military base retention; legislative intent;
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201 grants program.—
202 (2)
203 (b)1. The department shall, annually by October 1, request
204 military installations in this the state to provide the
205 department with a list of base buffering encroachment lands for
206 fee simple or less-than-fee simple acquisitions before October
207 1.
208 2. The department shall submit the list of base buffering
209 encroachment lands to the direct-support organization Florida
210 Defense Support Task Force created in s. 288.987.
211 3. The direct-support organization created in s. 288.987
212 Florida Defense Support Task Force shall, annually by December
213 1, review the list of base buffering encroachment lands
214 submitted by the military installations and provide its
215 recommendations for ranking the lands for acquisition to the
216 department.
217 4. The department shall annually submit the list of base
218 buffering encroachment lands provided by the direct-support
219 organization created in s. 288.987 Florida Defense Support Task
220 Force to the Board of Trustees of the Internal Improvement Trust
221 Fund, which may acquire the lands pursuant to s. 253.025. At a
222 minimum, the annual list must contain all of the following for
223 each recommended land acquisition:
224 a. A legal description of the land and its property
225 identification number.;
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226 b. A detailed map of the land.; and
227 c. A management and monitoring agreement to ensure the
228 land serves a base buffering purpose.
229 Section 6. Subsection (1) and paragraph (a) of subsection
230 (2) of section 288.985, Florida Statutes, are amended to read:
231 288.985 Exemptions from public records and public meetings
232 requirements.—
233 (1) The following records held by the direct-support
234 organization created in s. 288.987 Florida Defense Support Task
235 Force are exempt from s. 119.07(1) and s. 24(a), Art. I of the
236 State Constitution:
237 (a) That portion of a record which relates to strengths
238 and weaknesses of military installations or military missions in
239 this state relative to the selection criteria for the
240 realignment and closure of military bases and missions under any
241 United States Department of Defense base realignment and closure
242 process.
243 (b) That portion of a record which relates to strengths
244 and weaknesses of military installations or military missions in
245 other states or territories and the vulnerability of such
246 installations or missions to base realignment or closure under
247 the United States Department of Defense base realignment and
248 closure process, and any agreements or proposals to relocate or
249 realign military units and missions from other states or
250 territories.
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251 (c) That portion of a record which relates to the state's
252 strategy to retain its military bases during any United States
253 Department of Defense base realignment and closure process and
254 any agreements or proposals to relocate or realign military
255 units and missions.
256 (2)(a) Meetings or portions of meetings of the direct-
257 support organization created in s. 288.987 Florida Defense
258 Support Task Force, or a workgroup of the direct-support
259 organization task force, at which records are presented or
260 discussed that are exempt under subsection (1) are exempt from
261 s. 286.011 and s. 24(b), Art. I of the State Constitution.
262 Section 7. Section 288.987, Florida Statutes, is amended
263 to read:
264 288.987 Florida defense support Task Force.—
265 (1) The Department of Commerce shall establish a direct-
266 support organization to support Florida's military and defense
267 industries and communities The Florida Defense Support Task
268 Force is created.
269 (a) The direct-support organization is a corporation not
270 for profit, as defined in s. 501(c)(3) of the Internal Revenue
271 Code, which is incorporated under chapter 617 and approved by
272 the Department of State. The direct-support organization is
273 exempt from paying filing fees under chapter 617.
274 (b) The direct-support organization shall operate under
275 contract with the department. The contract must provide that:
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276 1. The department may review the direct-support
277 organization's articles of incorporation.
278 2. The direct-support organization shall submit an annual
279 budget proposal to the department, on a form provided by the
280 department, in accordance with department procedures for filing
281 budget proposals based on recommendations of the department.
282 3. Any funds that the direct-support organization holds in
283 trust must revert to the state upon the expiration or
284 cancellation of the contract.
285 4. The direct-support organization is subject to an annual
286 financial and performance review by the department to determine
287 whether the direct-support organization is complying with the
288 terms of the contract and is acting in a manner consistent with
289 the goals of the department and in the best interest of the
290 state.
291 (c) The fiscal year of the direct-support organization
292 begins on July 1 and ends on June 30 of the next succeeding
293 year.
294 (d) The direct-support organization shall provide an
295 annual financial audit in accordance with s. 215.981.
296 (e) The direct-support organization is not an agency for
297 purposes of parts I, II, and IV-VIII of chapter 112; chapter
298 120; s. 215.31; chapter 216; ss. 255.21, 255.25, and 255.2 54,
299 relating to leasing of buildings; ss. 283.33 and 283.35,
300 relating to bids for printing; and chapter 287. However, the
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301 direct-support organization shall comply with the per diem and
302 travel expense provisions of s. 112.061.
303 (f) Subject to the approval of the Secretary of Commerce,
304 the department may allow the direct-support organization to use
305 the property, facilities, personnel, and services of the
306 department if the direct-support organization provides equal
307 employment opportunities to all persons regardless of race,
308 color, religion, sex, or national origin.
309 (2) The mission of the direct-support organization task
310 force is to carry out the provisions of this section, to make
311 recommendations to preserve and protect military installations,
312 to assist with the coordination of economic and workforce
313 development efforts in military communities, to assist in the
314 planning and research and development related to military
315 missions, businesses, and military families to support the
316 state's position in research and development related to or
317 arising out of military missions and contracting, and to improve
318 the state's military-friendly environment for servicemembers,
319 military dependents, military retirees, and businesses that
320 bring military and base-related jobs to the state. The direct-
321 support organization is organized and operated to request,
322 receive, hold, invest, and administer property and to manage and
323 make expenditures for the operation of the activities, services,
324 functions, and programs of this state for economic and product
325 research and development, joint planning with host communities
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326 to accommodate military missions and prevent base encroachment,
327 advocacy on the state's behalf with federal civilian and
328 military officials, assistance to school districts in providing
329 a smooth transition for large numbers of additional military -
330 related students, job training and placement for military
331 spouses in communities with high proportions of active duty
332 military personnel, and promotion of the state to military and
333 related contractors and employers.
334 (3) The direct-support organization shall be governed by a
335 board of directors.
336 (a) The board of directors is composed of the Governor, or
337 his or her designee, and the following members task force shall
338 be comprised of the Governor or his or her designee, and 12
339 members appointed as follows:
340 1.(a) Four members appointed by the Governor.
341 2.(b) Four members appointed by the President of the
342 Senate.
343 3.(c) Four members appointed by the Speaker of the House
344 of Representatives.
345 (b)(d) Appointed members must represent defense-related
346 industries or communities that host military bases and
347 installations. All appointments in place as of July 1, 2024,
348 must continue in effect until the expiration of the term must be
349 made by August 1, 2011. Members shall serve for a term of 4
350 years, with the first term ending July 1, 2015. However, if
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351 members of the Legislature are appointed to the direct-support
352 organization task force, those members shall serve until the
353 expiration of their legislative term and may be reappointed
354 once. A vacancy shall be filled for the remainder of the
355 unexpired term in the same manner as the initial appointment.
356 All members of the council are eligible for reappointment. A
357 member who serves in the Legislature may participate in all
358 direct-support organization task force activities but may only
359 vote on matters that are advisory.
360 (c)(4) The President of the Senate and the Speaker of the
361 House of Representatives shall each designate one of their
362 appointees to serve as chair of the direct-support organization
363 task force. The chair shall serve a 2-year term, rotating on
364 rotate each July 1 of each odd-numbered year. The appointee
365 designated by the President of the Senate shall serve as initial
366 chair. If the Governor, instead of his or her designee,
367 participates in the activities of the direct-support
368 organization task force, then the Governor shall serve as chair.
369 (d)(5) The Secretary of Commerce Economic Opportunity, or
370 his or her designee, shall serve as the ex officio, nonvoting
371 executive director of the direct-support organization task
372 force.
373 (4)(6) The direct-support organization task force shall
374 submit an annual progress report and work plan to the Governor,
375 the President of the Senate, and the Speaker of the House of
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376 Representatives each December February 1.
377 (5) The direct-support organization, in the performance of
378 its duties, may:
379 (a) Make and enter into contracts and assume such other
380 functions as are necessary to carry out the mission of the
381 direct-support organization and its contract with the
382 department, provided that any such contracts and assumptions are
383 not inconsistent with this section or any other applicable
384 provision of law governing the direct-support organization. A
385 proposed contract with a total cost of $750,000 or more is
386 subject to the notice, review, and objection procedures of s.
387 216.177. If the chair and vice chair of the Legislative Budget
388 Commission, or the President of the Senate and the Speaker of
389 the House of Representatives, timely advise the direct-support
390 organization in writing that such proposed contract is contrary
391 to legislative policy and intent, the direct-support
392 organization may not enter into such proposed contract. The
393 direct-support organization may not divide one proposed contract
394 with a total cost of $750,000 or more into multiple contracts to
395 circumvent the requirements of this paragraph.
396 (b) Establish grant programs and administer grant awards
397 to support its mission.
398 (7) The department shall support the task force and
399 contract with the task force for expenditure of appropriated
400 funds, which may be used by the task force for economic and
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401 product research and development, joint planning with host
402 communities to accommodate military missions and prevent base
403 encroachment, advocacy on the state's behalf with federal
404 civilian and military officials, assistance to school districts
405 in providing a smooth transition for large numbers of additional
406 military-related students, job training and placement for
407 military spouses in communities with high proportions of active
408 duty military personnel, and promotion of the state to military
409 and related contractors and employers. The task force may
410 (c) Annually spend up to $250,000 of funds appropriated to
411 the department for the direct-support organization task force
412 for staffing and administrative expenses of the direct-support
413 organization task force, including travel and per diem costs
414 incurred by direct-support organization task force members who
415 are not otherwise eligible for state reimbursement.
416 (6) This section is repealed October 1, 2029, unless
417 reviewed and saved from repeal by the Legislature.
418 Section 8. Paragraph (a) of subsection (3) of section
419 445.003, Florida Statutes, is amended to read:
420 445.003 Implementation of the federal Workforce Innovation
421 and Opportunity Act.—
422 (3) FUNDING.—
423 (a) Title I, Workforce Innovation and Opportunity Act
424 funds; Wagner-Peyser funds; and NAFTA/Trade Act funds will be
425 expended based on the 4-year plan of the state board. The plan
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426 must outline and direct the method used to administer and
427 coordinate various funds and programs that are operated by
428 various agencies. The following provisions apply to these funds:
429 1. At least 50 percent of the Title I funds for Adults and
430 Dislocated Workers which are passed through to local workforce
431 development boards shall be allocated to and expended on
432 Individual Training Accounts unless a local workforce
433 development board obtains a waiver from the state board.
434 Tuition, books, and fees of training providers and other
435 training services prescribed and authorized by the Workforce
436 Innovation and Opportunity Act qualify as Individual Training
437 Account expenditures.
438 2. Fifteen percent of Title I funding shall be retained at
439 the state level and dedicated to state administration and shall
440 be used to design, develop, induce, fund, and evaluate the long -
441 term impact of innovative Individual Training Account pilots,
442 demonstrations, and programs to enable participants to attain
443 self-sufficiency and to evaluate the effectiveness of
444 performance-based contracts used by local workforce development
445 boards under s. 445.024(5) on increasing wages and employment
446 over the long term. Of such funds retained at the state le vel,
447 $2 million may be reserved for the Incumbent Worker Training
448 Program created under subparagraph 3. Eligible state
449 administration costs include the costs of funding for the state
450 board and state board staff; operating fiscal, compliance, and
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451 management accountability systems through the department;
452 conducting evaluation and research on workforce development
453 activities; and providing technical and capacity building
454 assistance to local workforce development areas at the direction
455 of the state board. Notwithstanding s. 445.004, such
456 administrative costs may not exceed 25 percent of these funds.
457 An amount not to exceed 75 percent of these funds shall be
458 allocated to Individual Training Accounts and other workforce
459 development strategies for other training designed and tailored
460 by the state board in consultation with the department,
461 including, but not limited to, programs for incumbent workers,
462 nontraditional employment, and enterprise zones. The state
463 board, in consultation with the department, shall design, adopt,
464 and fund Individual Training Accounts for distressed urban and
465 rural communities.
466 3. The Incumbent Worker Training Program is created for
467 the purpose of providing grant funding for continuing education
468 and training of incumbent employees at existing Florida
469 businesses. The program will provide reimbursement grants to
470 businesses that pay for preapproved, direct, training -related
471 costs. For purposes of this subparagraph, the term "businesses"
472 includes hospitals and health care facilities operated by
473 nonprofit or local government entities which provide nursing or
474 allied health care opportunities to acquire new or improved
475 skills.
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476 a. The Incumbent Worker Training Program will be
477 administered by CareerSource Florida, Inc., which may, at its
478 discretion, contract with a private business organization to
479 serve as grant administrator.
480 b. The program shall be administered under s. 134(d)(4) of
481 the Workforce Innovation and Opportunity Act. Funding priority
482 shall be given in the following order:
483 (I) Businesses that provide employees with opportunities
484 to acquire new or improved skills by earning a credential on the
485 Master Credentials List.
486 (II) Hospitals or health care facilities operated by
487 nonprofit or local government entities that provide nursing
488 opportunities in health care to acquire new or improved skills.
489 (III) Businesses whose grant proposals represent a
490 significant upgrade in employee skills.
491 (IV) Businesses with 25 employees or fewer, businesses in
492 rural areas, and businesses in distressed inner-city areas.
493 (V) Businesses in a qualified targeted industry or
494 businesses whose grant proposals represent a significant layoff
495 avoidance strategy.
496 c. All costs reimbursed by the program must be preapproved
497 by CareerSource Florida, Inc., or the grant administrator. The
498 program may not reimburse businesses for trainee wages, the
499 purchase of capital equipment, or the purchase of any item or
500 service that may possibly be used outside the training project.
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501 A business approved for a grant may be reimbursed for
502 preapproved, direct, training-related costs including tuition,
503 fees, books and training materials, and overhead or indirect
504 costs not to exceed 5 percent of the grant amount.
505 d. A business that is selected to receive grant funding
506 must provide a matching contribution to the training project,
507 including, but not limited to, wages paid to trainees or the
508 purchase of capital equipment used in the training project; must
509 sign an agreement with CareerSource Florida, Inc., or the grant
510 administrator to complete the training project as proposed in
511 the application; must keep accurate records of the project's
512 implementation process; and must submit monthly or quarterly
513 reimbursement requests with required documentation.
514 e. All Incumbent Worker Training Program grant projects
515 shall be performance-based with specific measurable performance
516 outcomes, including completion of the training project and job
517 retention. CareerSource Florida, Inc., or the grant
518 administrator shall withhold the final payment to the grantee
519 until a final grant report is submitted and all performance
520 criteria specified in the grant contract have been achieved.
521 f. The state board may establish guidelines necessary to
522 implement the Incumbent Worker Training Program.
523 g. No more than 10 percent of the Incumbent Worker
524 Training Program's total appropriation may be used for overhead
525 or indirect purposes.
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526 4. At least 50 percent of Rapid Response funding shall be
527 dedicated to Intensive Services Accounts and Individual Training
528 Accounts for dislocated workers and incumbent workers who are at
529 risk of dislocation. The department shall also maintain an
530 Emergency Preparedness Fund from Rapid Response funds, which
531 will immediately issue Intensive Service Accounts, Individual
532 Training Accounts, and other federally authorized assistance to
533 eligible victims of natural or other disasters. At the direction
534 of the Governor, these Rapid Response funds shall be released to
535 local workforce development boards for immediate use after
536 events that qualify under federal law. Funding shall also be
537 dedicated to maintain a unit at the state level to respond to
538 Rapid Response emergencies and to work with state emergency
539 management officials and local workforce development boards. All
540 Rapid Response funds must be expended based on a plan developed
541 by the state board in consultation with the department and
542 approved by the Governor.
543 Section 9. Paragraph (a) of subsection (3) of section
544 445.004, Florida Statutes, is amended to read:
545 445.004 CareerSource Florida, Inc., and the state board;
546 creation; purpose; membership; duties and powers.—
547 (3)(a) Members of the state board described in Pub. L. No.
548 113-128, Title I, s. 101(b)(1)(C)(iii)(I)(aa) are voting
549 nonvoting members. The number of members is determined by the
550 Governor, who shall consider the importance of minority, gender,
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551 and geographic representation in making appointments to the
552 state board. When the Governor is in attendance, he or she shall
553 preside at all meetings of the state board.
554 Section 10. Section 720.406, Florida Statutes, is amended
555 to read:
556 720.406 Department of Commerce Economic Opportunity;
557 submission; review and determination.—
558 (1) Within No later than 60 days after obtaining valid
559 written consent from a majority of the affected parcel owner s,
560 or within 60 days after the date the proposed revived
561 declaration and other governing documents are approved by the
562 affected parcel owners by vote at a meeting, the organizing
563 committee or its designee must submit the proposed revived
564 governing documents and supporting materials to the Department
565 of Commerce Economic Opportunity to review and determine whether
566 to approve or disapprove of the proposal to preserve the
567 residential community. The submission to the department must
568 include:
569 (a) The full text of the proposed revived declaration of
570 covenants and articles of incorporation and bylaws of the
571 homeowners' association.;
572 (b) A verified copy of the previous declaration of
573 covenants and other previous governing documents for the
574 community, including any amendments thereto.;
575 (c) The legal description of each parcel to be subject to
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576 the revived declaration and other governing documents and a plat
577 or other graphic depiction of the affected properties in the
578 community.;
579 (d) A verified copy of the written consents of the
580 requisite number of the affected parcel owners approving the
581 revived declaration and other governing documents or, if
582 approval was obtained by a vote at a meeting of affected parcel
583 owners, verified copies of the notice of the meeting,
584 attendance, and voting results.;
585 (e) An affidavit by a current or former officer of the
586 association or by a member of the organizing committee verifying
587 that the requirements for the revived declaration set forth in
588 s. 720.404 have been satisfied.; and
589 (f) Such other documentation that the organizing committee
590 believes is supportive of the policy of preserving the
591 residential community and operating, managing, and maintaining
592 the infrastructure, aesthetic character, and common areas
593 serving the residential community.
594 (2) Within No later than 60 days after receiving the
595 submission, the department must determine whether the proposed
596 revived declaration of covenants and other governing documents
597 comply with the requirements of this act.
598 (a) If the department determines that the proposed revived
599 declaration and other governing documents comply with the act
600 and have been approved by the parcel owners as required by this
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601 act, the department shall notify the organizing committee in
602 writing of its approval.
603 (b) If the department determines that the proposed revived
604 declaration and other governing documents do not comply with ,
605 this act or have not been approved as required by, this act, the
606 department shall notify the organizing committee in writing that
607 it does not approve the governing documents and shall state the
608 reasons for the disapproval.
609 Section 11. Effective upon becoming a law, the Department
610 of Commerce may amend a loan agreement executed before February
611 1, 2024, and made pursuant to s. 288.066, Florida Statutes, in
612 order to increase the loan term to a total of 10 years from the
613 original date of execution, as authorized by this act, upon
614 request of the local government and as determined by the
615 department to be in the best interests of the state.
616 Section 12. Except as otherwise expressly provided in this
617 act and except for this section, which shall take effect upon
618 this act becoming a law, this act shall take effect July 1,
619 2024.
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Commerce Committee
CS/HB 1419 by Rep. Tuck
Department of Commerce
AMENDMENT SUMMARY
February 22, 2024
Amendment 1 by Duggan (line 53):
• Provides that the state land planning agency may assist in the planning and
development of critical health care facilities.
• Prohibits a local government from requiring notice, application, approval, permit,
fee, or mitigation for pruning, trimming, or removal of a tree on property being
used for the construction or development of critical health care facilities under
specified conditions.
• Prohibits a county ordinance or charter provision from preempting any part of a
municipal local comprehensive plan or land development regulation.
• Provides that a county ordinance or charter provision which revokes or preempts
any part of a municipal local comprehensive plan of land development regulation
enacted prior to June 1, 2020, is prohibited.
• Modifies requirements for local governments implementing a transportation
concurrency system.
• Modifies legislative intent about the adoption of impact fees by special districts.
• Clarifies circumstances under which a local government or special district must
credit certain contributions toward the collection of an impact fee.
• Revises:
o Exceptions governing credits against local impact fees.
o Procedures regarding local government review of changes to previously
approved developments of regional impact.
o Acts that are deemed to constitute an act of reliance by a developer to
vest rights.
• Specifies changes that are not subject to local government review.
• Authorizes changes to multimodal pathways, or the substitution of such
pathways, in previously approved developments of regional impact if certain
conditions are met.
• Specifies that certain changes to comprehensive plan policies and land
development regulations do not apply to proposed changes to an approved
development of regional impact or to development orders required to implement
the approved development of regional impact.
Amendment 2 by Tuck (lines 262-417):
• Requires the Department of Commerce (Commerce) to:
o Annually certify that the direct-support organization (DSO) is complying
with the terms of its contract with Commerce.
o Submit a proposed operating budget for the DSO by a specified date.
• Requires the DSO to adopt guidelines and application procedures and must
publish such guidelines, application procedures, and awards on its website.
• Clarifies:
o The mission of the DSO and its relation to other state entities.
o The composition of the DSO’s board.
o The term for which DSO board members serve.
o That each board member should serve without compensation, but shall be
reimbursed for travel and per diem exempts while performing duties.
o That the DSO must submit an annual report by November 1, which may
be submitted as a supplement report to the report of Commerce.
COMMITTEE/SUBCOMMITTEE AMENDMENT
Bill No. CS/HB 1419 (2024)
Amendment No. 1
COMMITTEE/SUBCOMMITTEE ACTION
ADOPTED (Y/N)
ADOPTED AS AMENDED (Y/N)
ADOPTED W/O OBJECTION (Y/N)
FAILED TO ADOPT (Y/N)
WITHDRAWN (Y/N)
OTHER
1 Committee/Subcommittee hearing bill: Commerce Committee
2 Representative Duggan offered the following:
3
4 Amendment (with title amendment)
5 Between lines 53 and 54, insert:
6 Section 1. Section 163.046, Florida Statutes, is created
7 to read:
8 163.046 Land development for critical health care
9 facilities.-
10 (1) The state land planning agency may assist in the
11 planning and development of critical health care facilities to
12 serve Florida communities.
13 (2) A local government may not require a notice,
14 application, approval, permit, fee, or mitigation for the
15 pruning, trimming, or removal of a tree on property being used
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Bill No. CS/HB 1419 (2024)
Amendment No. 1
16 for the construction or development of a veterans health care
17 facility if:
18 (a) Such construction or development has been preliminarily
19 approved by the United States Department of Veterans Affairs,
20 and
21 (b) The state land planning agency makes a finding that
22 such construction or development serves a critical need for
23 health care.
24 (3) A local government may not require a property owner to
25 replant a tree that was pruned, trimmed, or removed in
26 accordance with this section.
27 Section 2. Paragraph (d) of subsection (8) of section
28 163.3167, Florida Statutes, is amended to read:
29 163.3167 Scope of act.—
30 (8)
31 (d) A county ordinance or charter provision that revokes
32 or preempts any part of a municipal local comprehensive plan or
33 land development regulation is prohibited as violative of the
34 state and local government cooperation requirement of s.
35 163.3204.
36 (e)(d) It is the intent of the Legislature that initiative
37 and referendum be prohibited in regard to any development order
38 or land development regulation. It is the intent of the
39 Legislature that initiative and referendum be prohibited in
40 regard to any local comprehensive plan amendment or map
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Amendment No. 1
41 amendment, except as specifically and narrowly allowed by
42 paragraph (c). It is the intent of the Legislature that any
43 ordinance or charter provision revoking or preempting a
44 municipal local comprehensive plan or land development
45 regulation not in effect prior to June 1, 2020, be prohibited.
46 Therefore, the prohibition on initiative and referendum stated
47 in paragraphs (a) and (c) is remedial in nature and applies
48 retroactively to any initiative or referendum process commenced
49 after June 1, 2011, and any such initiative or referendum
50 process commenced or completed thereafter is deemed null and
51 void and of no legal force and effect. The prohibition on any
52 ordinance or charter provision stated in paragraph (d) is
53 remedial in nature and applies retroactively to any ordinance or
54 charter provision commenced after June 1, 2020, and such
55 ordinance or charter provision adopted thereafter is deemed null
56 and void and of no legal force and effect.
57 Section 3. Paragraphs (a) through (i) of subsection (5) of
58 section 163.3180, Florida Statutes, are redesignated as
59 paragraphs (b) through (j), respectively, present paragraph (h)
60 is amended, and a new paragraph (a) is added to that subsection,
61 to read:
62 163.3180 Concurrency.—
63 (5)(a) Local governments shall have exclusive power and
64 responsibility to evaluate transportation impacts, apply
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Amendment No. 1
65 concurrency, and assess any fee related to transportation
66 improvements set forth in this subsection.
67 (i)(h)1. Notwithstanding any provision in a development
68 order, an agreement, a local comprehensive plan, or a local land
69 development regulation, local governments that continue to
70 implement a transportation concurrency system, whether in the
71 form adopted into the comprehensive plan before the effe ctive
72 date of the Community Planning Act, chapter 2011-139, Laws of
73 Florida, or as subsequently modified, must:
74 a. Consult with the Department of Transportation when
75 proposed plan amendments affect facilities on the strategic
76 intermodal system.
77 b. Exempt public transit facilities from concurrency. For
78 the purposes of this sub-subparagraph, public transit facilities
79 include transit stations and terminals; transit station parking;
80 park-and-ride lots; intermodal public transit connection or
81 transfer facilities; fixed bus, guideway, and rail stations; and
82 airport passenger terminals and concourses, air cargo
83 facilities, and hangars for the assembly, manufacture,
84 maintenance, or storage of aircraft. As used in this sub -
85 subparagraph, the terms "terminals" and "transit facilities" do
86 not include seaports or commercial or residential development
87 constructed in conjunction with a public transit facility.
88 c. Allow an applicant for a development-of-regional-impact
89 development order, development agreement, rezoning, or other
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Amendment No. 1
90 land use development permit to satisfy the transportation
91 concurrency requirements of the local comprehensive plan, the
92 local government's concurrency management system, and s. 380.06,
93 when applicable, if:
94 (I) The applicant in good faith offers to enter into a
95 binding agreement to pay for or construct its proportionate
96 share of required improvements in a manner consistent with this
97 subsection.
98 (II) The proportionate-share contribution or construction
99 is sufficient to accomplish one or more mobility improvements
100 that will benefit a regionally significant transportation
101 facility. A local government may accept contributions from
102 multiple applicants for a planned improvement if it maintains
103 contributions in a separate account designated for that purpose.
104 d. Provide the basis upon which the landowners will be
105 assessed a proportionate share of the cost addressing the
106 transportation impacts resulting from a proposed development.
107 e. Credit the fair market value of any land dedicated to a
108 governmental entity for transportation facilities against the
109 total proportionate share payments computed pursuant to this
110 section.
111 2. An applicant is shall not be held responsible for the
112 additional cost of reducing or eliminating deficiencies. When an
113 applicant contributes or constructs its proportionate share
114 pursuant to this paragraph, a local government may not require
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Amendment No. 1
115 payment or construction of transportation facilities whose costs
116 would be greater than a development's proportionate share of the
117 improvements necessary to mitigate the development's impacts.
118 a. The proportionate-share contribution shall be
119 calculated based upon the number of trips from the proposed
120 development expected to reach roadways during the peak hour from
121 the stage or phase being approved, divided by the change in the
122 peak hour maximum service volume of roadways resulting from
123 construction of an improvement necessary to maintain or achieve
124 the adopted level of service, multiplied by the construction
125 cost, at the time of development payment, of the improvement
126 necessary to maintain or achieve the adopted level of service.
127 b. In using the proportionate-share formula provided in
128 this subparagraph, the applicant, in its traffic analysis, shall
129 identify those roads or facilities that have a transportation
130 deficiency in accordance with the transportation deficiency as
131 defined in subparagraph 4. The proportionate-share formula
132 provided in this subparagraph shall be applied only to those
133 facilities that are determined to be significantly impacted by
134 the project traffic under review. If any road is determined to
135 be transportation deficient without the project traffic under
136 review, the costs of correcting that deficiency shall be removed
137 from the project's proportionate-share calculation and the
138 necessary transportation improvements to correct that deficiency
139 shall be considered to be in place for purposes of the
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Amendment No. 1
140 proportionate-share calculation. The improvement necessary to
141 correct the transportation deficiency is the funding
142 responsibility of the entity that has maintenance responsibility
143 for the facility. The development's proportionate share shall be
144 calculated only for the needed transportation improvements that
145 are greater than the identified deficiency.
146 c. When the provisions of subparagraph 1. and this
147 subparagraph have been satisfied for a particular stage or phase
148 of development, all transportation impacts from that stage or
149 phase for which mitigation was required and provided shall be
150 deemed fully mitigated in any transportation analysis fo r a
151 subsequent stage or phase of development. Trips from a previous
152 stage or phase that were not analyzed did not result in impacts
153 for which mitigation was required or provided may be
154 cumulatively analyzed with trips from a subsequent stage or
155 phase to determine whether an impact requires mitigation for the
156 subsequent stage or phase.
157 d. In projecting the number of trips to be generated by
158 the development under review, any trips assigned to a toll -
159 financed facility shall be eliminated from the analysis.
160 e. The applicant shall receive a credit on a dollar-for-
161 dollar basis for impact fees, mobility fees, and other
162 transportation concurrency mitigation requirements paid or
163 payable in the future for the project. The credit shall be
164 reduced up to 20 percent by the percentage share that the
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COMMITTEE/SUBCOMMITTEE AMENDMENT
Bill No. CS/HB 1419 (2024)
Amendment No. 1
165 project's traffic represents of the added capacity of the
166 selected improvement, or by the amount specified by local
167 ordinance, whichever yields the greater credit.
168 3. This subsection does not require a local government to
169 approve a development that, for reasons other than
170 transportation impacts, is not qualified for approval pursuant
171 to the applicable local comprehensive plan and land development
172 regulations.
173 4. As used in this subsection, the term "transportation
174 deficiency" means a facility or facilities on which the adopted
175 level-of-service standard is exceeded by the existing,
176 committed, and vested trips, plus additional projected
177 background trips from any source other than the development
178 project under review, and trips that are forecast by established
179 traffic standards, including traffic modeling, consistent with
180 the University of Florida's Bureau of Economic and Business
181 Research medium population projections. Additional projected
182 background trips are to be coincident with the particular stage
183 or phase of development under review.
184 Section 4. Subsection (2) and paragraph (a) of subsection
185 (5) of section 163.31801, Florida Statutes, are amended to read:
186 163.31801 Impact fees; short title; intent; minimum
187 requirements; audits; challenges.—
188 (2) The Legislature finds that impact fees are an
189 important source of revenue for a local government to use in
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Bill No. CS/HB 1419 (2024)
Amendment No. 1
190 funding the infrastructure necessitated by new growth. The
191 Legislature further finds that impact fees are an outgrowth of
192 the home rule power of a local government to provide certain
193 services within its jurisdiction. Due to the growth of impact
194 fee collections and local governments' reliance on impact fees,
195 it is the intent of the Legislature to ensure that, when a
196 county or municipality adopts an impact fee by ordinance or a
197 special district, if authorized by its special act, adopts an
198 impact fee by resolution, the governing authority complies with
199 this section.
200 (5)(a) Notwithstanding any charter provision,
201 comprehensive plan policy, ordinance, development order,
202 development permit, agreement, or resolution to the contrary,
203 the local government or special district must credit against the
204 collection of the impact fee any contribution, whether
205 identified in an a proportionate share agreement or other form
206 of exaction, related to public facilities or infrastructure,
207 including land dedication, site planning and design, or
208 construction. Any contribution must be applied on a dollar -for-
209 dollar basis at fair market value to reduce any impact fee
210 collected for the general category or class of public facilities
211 or infrastructure for which the contribution was made.
212 Section 5. Paragraph (d) of subsection (5) and subsections
213 (7) and (8) of section 380.06, Florida Statutes, are amended to
214 read:
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Bill No. CS/HB 1419 (2024)
Amendment No. 1
215 380.06 Developments of regional impact.—
216 (5) CREDITS AGAINST LOCAL IMPACT FEES.—
217 (d) This subsection does not apply to internal, private
218 onsite facilities required by local regulations or to any
219 offsite facilities to the extent that such facilities are
220 necessary to provide safe and adequate services solely to the
221 development and not the general public.
222 (7) CHANGES.—
223 (a) Notwithstanding any provision to the contrary in any
224 development order, agreement, local comprehensive plan, or local
225 land development regulation, this section applies to all any
226 proposed changes change to a previously approved development of
227 regional impact. shall be reviewed by The local government must
228 base its review based on the standards and procedures in its
229 adopted local comprehensive plan and adopted local land
230 development regulations, including, but not limited to,
231 procedures for notice to the applicant and the public regarding
232 the issuance of development orders. However, a change to a
233 development of regional impact that has the effect of reducing
234 the originally approved height, density, or intensity of the
235 development or that changes only the location or acreage of uses
236 and infrastructure or exchanges permitted uses must be
237 administratively approved and is not subject to review by the
238 local government. The local government review of any proposed
239 change to a previously approved development of regional impact
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Amendment No. 1
240 and of any development order required to construct the
241 development set forth in the development of regional impact must
242 be reviewed by the local government based on the standards in
243 the local comprehensive plan at the time the development was
244 originally approved, and if the development would have been
245 consistent with the comprehensive plan in effect when the
246 development was originally approved, the local government may
247 approve the change. If the revised development is approved, the
248 developer may proceed as provided in s. 163.3167(5). For any
249 proposed change to a previously approved development of regional
250 impact, at least one public hearing must be held on the
251 application for change, and any change must be approved by the
252 local governing body before it becomes effective. The review
253 must abide by any prior agreements or other actions vesting the
254 laws and policies governing the development. Development within
255 the previously approved development of regional impact may
256 continue, as approved, during the review in portions of the
257 development which are not directly affected by the proposed
258 change.
259 (b) The local government shall either adopt an amendment
260 to the development order that approves the application, with or
261 without conditions, or deny the application for the proposed
262 change. Any new conditions in the amendment to the development
263 order issued by the local government may address only those
264 impacts directly created by the proposed change, and must be
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Amendment No. 1
265 consistent with s. 163.3180(5), the adopted comprehensive plan,
266 and adopted land development regulations. Changes to a phase
267 date, buildout date, expiration date, or termination date may
268 also extend any required mitigation associated with a phased
269 construction project so that mitigation takes place in the same
270 timeframe relative to the impacts as approved.
271 (c) This section is not intended to alter or otherwise
272 limit the extension, previously granted by statute, of a
273 commencement, buildout, phase, termination, or expiration date
274 in any development order for an approved development of regional
275 impact and any corresponding modification of a related permit or
276 agreement. Any such extension is not subject to review or
277 modification in any future amendment to a development order
278 pursuant to the adopted local comprehensive plan and adopted
279 local land development regulations.
280 (d) Any proposed change to a previously approved
281 development of regional impact showing a dedicated multimodal
282 pathway suitable for bicycles, pedestrians, and low -speed
283 vehicles, as defined in s. 320.01(41), along any internal
284 roadway must be approved so long as the right-of-way remains
285 sufficient for the ultimate number of lanes of the internal
286 roadway. Any proposed change to a previously approved
287 development of regional impact which proposes to substitute a
288 multimodal pathway suitable for bicycles, pedestrians, and low-
289 speed vehicles, as defined in s. 320.01(41), in lieu of an
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Amendment No. 1
290 internal roadway must be approved if the change does not result
291 in any roadway within or adjacent to the development of regional
292 impact falling below the local government's adopted level of
293 service and does not increase the original distribution of trips
294 on any roadway analyzed as part of the approved development of
295 regional impact by more than 20 percent. If the developer has
296 already dedicated right-of-way to the local government for the
297 proposed internal roadway as part of the approval of the
298 proposed change, the local government must return any interest
299 it may have in the right-of-way to the developer.
300 (8) VESTED RIGHTS.—Nothing in this section shall limit or
301 modify the rights of any person to complete any development that
302 was authorized by registration of a subdivision pursuant to
303 former chapter 498, by recordation pursuant to local subdivision
304 plat law, or by a building permit or other authorization to
305 commence development on which there has been reliance and a
306 change of position and which registration or recordation was
307 accomplished, or which permit or authorization was issued, prior
308 to July 1, 1973. If a developer has, by his or her actions in
309 reliance on prior regulations, obtained vested or other legal
310 rights that in law would have prevented a local government from
311 changing those regulations in a way adverse to the developer's
312 interests, nothing in this chapter authorizes any governmental
313 agency to abridge those rights. Consistent with s. 163.3167(5),
314 comprehensive plan policies and land development regulations
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Amendment No. 1
315 adopted after a development of regional impact has vested do not
316 apply to proposed changes to an approved development of regional
317 impact or to development orders required to implement the
318 approved development of regional impact.
319 (a) For the purpose of determining the vesting of rights
320 under this subsection, approval pursuant to local subdivision
321 plat law, ordinances, or regulations of a subdivision plat by
322 formal vote of a county or municipal governmental body having
323 jurisdiction after August 1, 1967, and prior to July 1, 1973, is
324 sufficient to vest all property rights for the purposes of this
325 subsection; and no action in reliance on, or change of position
326 concerning, such local governmental approval is required for
327 vesting to take place. Anyone claiming vested rights under this
328 paragraph must notify the department in writing by January 1,
329 1986. Such notification shall include information adequate to
330 document the rights established by this subsection. When such
331 notification requirements are met, in order for the vested
332 rights authorized pursuant to this paragraph to remain valid
333 after June 30, 1990, development of the vested plan must be
334 commenced prior to that date upon the property that the state
335 land planning agency has determined to have acquired vested
336 rights following the notification or in a binding letter of
337 interpretation. When the notification requirements have not been
338 met, the vested rights authorized by this paragraph shal l expire
339 June 30, 1986, unless development commenced prior to that date.
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COMMITTEE/SUBCOMMITTEE AMENDMENT
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Amendment No. 1
340 (b) For the purpose of this act, the conveyance of
341 property or compensation, or the agreement to convey, property
342 or compensation, to the county, state, or local government as a
343 prerequisite to zoning change approval shall be construed as an
344 act of reliance to vest rights as determined under this
345 subsection, provided such zoning change is actually granted by
346 such government.
347
348 -----------------------------------------------------
349 T I T L E A M E N D M E N T
350 Between lines 2 and 3, insert:
351 creating s. 163.046, F.S.; prohibiting local governments from
352 requiring specified documents or a fee for tree pruning,
353 trimming, or removal on certain properties; prohibiting local
354 governments from requiring property owners to replant trees
355 pruned, trimmed, or removed on certain properties; amending s.
356 163.3167, F.S.; prohibiting a county ordinance or charter
357 provision from preempting any part of a municipal local
358 comprehensive plan or land development regulation; amending s.
359 163.3180, F.S.; modifying requirements for local governments
360 implementing a transportation concurrency system; amending s.
361 163.31801, F.S.; revising legislative intent with respect to the
362 adoption of impact fees by special districts; clarifying
363 circumstances under which a local government or special district
364 must credit certain contributions toward the collection of an
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COMMITTEE/SUBCOMMITTEE AMENDMENT
Bill No. CS/HB 1419 (2024)
Amendment No. 1
365 impact fee; s. 380.06, F.S.; revising exceptions from provisions
366 governing credits against local impact fees; revising procedures
367 regarding local government review of changes to previously
368 approved developments of regional impact; specifying changes
369 that are not subject to local government review; authorizing
370 changes to multimodal pathways, or the substitution of such
371 pathways, in previously approved developments of regional impact
372 if certain conditions are met; specifying that certain changes
373 to comprehensive plan policies and land development regulations
374 do not apply to proposed changes to an approved development of
375 regional impact or to development orders required to implement
376 the approved development of regional impact; revising acts that
377 are deemed to constitute an act of reliance by a developer to
378 vest rights;
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COMMITTEE/SUBCOMMITTEE AMENDMENT
Bill No. CS/HB 1419 (2024)
Amendment No. 2
COMMITTEE/SUBCOMMITTEE ACTION
ADOPTED (Y/N)
ADOPTED AS AMENDED (Y/N)
ADOPTED W/O OBJECTION (Y/N)
FAILED TO ADOPT (Y/N)
WITHDRAWN (Y/N)
OTHER
1 Committee/Subcommittee hearing bill: Commerce Committee
2 Representative Tuck offered the following:
3
4 Amendment
5 Remove lines 262-417 and insert:
6 Section 1. Section 288.987, Florida Statutes, is amended
7 to read:
8 288.987 Florida Defense Support Task Force.—
9 (1) The Department of Commerce shall establish a direct -
10 support organization to support Florida's military and defense
11 industries and communities The Florida Defense Support Task
12 Force is created.
13 (a) The direct-support organization is a corporation not
14 for profit, as defined in s. 501(c)(3) of the Internal Revenue
15 Code, which is incorporated under chapter 617 and approved by
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Bill No. CS/HB 1419 (2024)
Amendment No. 2
16 the Department of State. The direct-support organization is
17 exempt from paying filing fees under chapter 617.
18 (b) The direct-support organization shall operate under
19 contract with the department pursuant to s. 20.60. The contract
20 must provide that:
21 1. The department may review the direct-support
22 organization's articles of incorporation.
23 2. The direct-support organization shall submit an annual
24 budget proposal to the department, on a form provided by the
25 department, in accordance with department procedures for filing
26 budget proposals based on recommendations of the department.
27 3. Any funds that the direct-support organization holds in
28 trust must revert to the state upon the expiration or
29 cancellation of the contract.
30 4. The direct-support organization is subject to an annual
31 financial and performance review by the department to determine
32 whether the direct-support organization is complying with the
33 terms of the contract and is acting in a manner consistent with
34 the goals of the department and in the best interest of the
35 state.
36 (c) The department must determine and annually certify
37 that the direct-support organization is complying with the terms
38 of the contract and is doing so consistent with the goals and
39 purposes of the organization and in the best interests of the
40 state.
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COMMITTEE/SUBCOMMITTEE AMENDMENT
Bill No. CS/HB 1419 (2024)
Amendment No. 2
41 (d) The fiscal year of the direct-support organization
42 begins on July 1 and ends on June 30 of the next succeeding
43 year. By August 15 of each fiscal year, the department shall
44 submit a proposed operating budget for the direct-support
45 organization to the Governor, the President of the Senate, and
46 the Speaker of the House of Representatives.
47 (e) The direct-support organization shall provide an
48 annual financial audit in accordance with s. 215.981.
49 (f) The direct-support organization is not an agency for
50 purposes of chapter 120; s. 215.31; chapter 216; ss. 255.21,
51 255.25, and 255.254, relating to leasing of buildings; and ss.
52 283.33 and 283.35, relating to bids for printing.
53 (g) Subject to the approval of the Secretary of Commerce,
54 the department may allow the direct-support organization to use
55 the property, facilities, personnel, and services of the
56 department if the direct-support organization provides equal
57 employment opportunities to all persons regardless of race,
58 color, religion, sex, or national origin.
59 (2)(a) The mission of the direct-support organization task
60 force is to carry out the provisions of this section, to make
61 recommendations to preserve and protect military installations,
62 to assist Florida is for Veterans, Inc., created in s. 295.21,
63 with economic and workforce development efforts in military
64 communities, to conduct planning and research and development to
65 support military missions, businesses, and military families to
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COMMITTEE/SUBCOMMITTEE AMENDMENT
Bill No. CS/HB 1419 (2024)
Amendment No. 2
66 support the state's position in research and development related
67 to or arising out of military missions and contracting, and to
68 improve the state's military-friendly environment for
69 servicemembers, military dependents, military retirees, and
70 businesses that bring military and base-related jobs to the
71 state.
72 (b) The direct-support organization is organized and
73 operated to request, receive, hold, invest, and administer
74 property and to manage and make expenditures related to its
75 mission and for joint planning with host communities to
76 accommodate military missions and prevent base encroachment,
77 advocacy on the state's behalf with federal civilian and
78 military officials, promotion of the state to military and
79 related contractors and employers, and support of economic and
80 product research and development activities of the defense
81 industry.
82 (c) As necessary and requested by Florida is for Veterans,
83 Inc., the direct-support organization may undertake such
84 activities that assist the corporation with job training and
85 placement for military spouses in communities with high
86 proportions of active duty military personnel. As necessary and
87 requested by the Department of Education, school districts, or
88 Florida state colleges and universities, the direct -support
89 organization may undertake such activities that assist in
90 providing a smooth transition for dependents of military
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COMMITTEE/SUBCOMMITTEE AMENDMENT
Bill No. CS/HB 1419 (2024)
Amendment No. 2
91 personnel and other military students. The direct-support
92 organization is intended to complement but may not supplant the
93 activities of other state entities.
94 (3) The direct-support organization shall be governed by a
95 board of directors.
96 (a) The board of directors is composed of the Governor, or
97 his or her designee, and the following members task force shall
98 be comprised of the Governor or his or her designee, and 12
99 members appointed as follows:
100 1.(a) Four members appointed by the Governor.
101 2.(b) Four members appointed by the President of the
102 Senate.
103 3.(c) Four members appointed by the Speaker of the House
104 of Representatives.
105 (b)(d) Appointed members must represent defense-related
106 industries or communities that host military bases and
107 installations. All appointments in place as of July 1, 2024,
108 must continue in effect until the expiration of the term must be
109 made by August 1, 2011. Members shall serve for a term of 4
110 years, with the first term ending July 1, 2015. However, if
111 members of the Legislature are appointed to the task force,
112 those members shall serve until the expiration of their
113 legislative term and may be reappointed once. A vacancy shall be
114 filled for the remainder of the unexpired term in the same
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COMMITTEE/SUBCOMMITTEE AMENDMENT
Bill No. CS/HB 1419 (2024)
Amendment No. 2
115 manner as the initial appointment. All members of the council
116 are eligible for reappointment.
117 (c) The President of the Senate and the Speaker of the
118 House of Representatives shall each appoint a current member of
119 their respective chambers who shall serve ex officio, nonvoting.
120 An appointed Senator or Representative shall serve until the
121 expiration of the member's legislative term and may be
122 reappointed once. An appointed Senator or Representative A
123 member who serves in the Legislature may participate in all
124 direct-support organization task force activities but may not
125 only vote on matters that are advisory.
126 (d)(4) The President of the Senate and the Speaker of the
127 House of Representatives shall each designate one of their
128 appointees under paragraph (b) to serve as chair of the direct-
129 support organization task force. The chair shall serve a 2-year
130 term, rotating on December 1 of each even-numbered year rotate
131 each July 1. The appointee designated by the President of the
132 Senate shall serve as initial chair. If the Governor, instead of
133 his or her designee, participates in the activities of the
134 direct-support organization task force, then the Governor shall
135 serve as chair.
136 (e)(5) The Secretary of Commerce Economic Opportunity, or
137 his or her designee, shall serve as the ex officio, nonvoting
138 executive director of the direct-support organization task
139 force.
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Bill No. CS/HB 1419 (2024)
Amendment No. 2
140 (f) The Executive Director of Florida Department of
141 Veterans' Affairs and the Adjutant General of the Florida
142 National Guard, or their designees, shall serve as ex officio,
143 nonvoting members of the direct-support organization.
144 (g) Any employees and appointed board members, in their
145 capacity of service on the board, are not public employees for
146 the purposes of chapter 110 or chapter 112, except that such
147 employees and appointed board members of the corporation are
148 subject to the provisions of s. 112.061, related to
149 reimbursement for travel and per diem exempts incurred while
150 performing duties, and part III of chapter 112. Otherwise, each
151 member of the board of directors shall serve without
152 compensation.
153 (4)(6) The direct-support organization task force shall
154 submit an annual progress report and work plan to the Governor,
155 the President of the Senate, and the Speaker of the House of
156 Representatives each November 1, which may be submitted as a
157 supplement report with the annual report of the department
158 pursuant to s. 20.60 February 1.
159 (5) The direct-support organization, in the performance of
160 its duties, may:
161 (a) Make and enter into contracts and assume such other
162 functions as are necessary to carry out the mission of the
163 direct-support organization and its contract with the
164 department, provided that any such contracts and assumptions are
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COMMITTEE/SUBCOMMITTEE AMENDMENT
Bill No. CS/HB 1419 (2024)
Amendment No. 2
165 not inconsistent with this section or any other applicable
166 provision of law governing the direct-support organization. A
167 proposed contract with a total cost of $750,000 or more is
168 subject to the notice, review, and objection procedures of s.
169 216.177. If the chair and vice chair of the Legislative Budget
170 Commission, or the President of the Senate and the Speaker of
171 the House of Representatives, timely advise the direct-support
172 organization in writing that such proposed contract is contrary
173 to legislative policy and intent, the direct-support
174 organization may not enter into such proposed contract. The
175 direct-support organization may not divide one proposed contract
176 with a total cost of $750,000 or more into multiple contracts to
177 circumvent the requirements of this paragraph.
178 (b) Establish grant programs and administer grant awards
179 to support its mission. The direct-support organization must
180 publicly adopt guidelines and application procedures and must
181 publish such guidelines, application procedures, and awards on
182 its website. The direct-support organization may assist the
183 department as requested and necessary with any statutorily
184 established grants or other programs, but may not administer
185 such grants on behalf of the department.
186 (7) The department shall support the task force and
187 contract with the task force for expenditure of appropriated
188 funds, which may be used by the task force for economic and
189 product research and development, joint planning with host
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Amendment No. 2
190 communities to accommodate military missions and prevent base
191 encroachment, advocacy on the state's behalf with federal
192 civilian and military officials, assistance to school districts
193 in providing a smooth transition for large numbers of additional
194 military-related students, job training and placement for
195 military spouses in communities with high proportions o f active
196 duty military personnel, and promotion of the state to military
197 and related contractors and employers. The task force may
198 (c) Annually spend up to $250,000 of funds appropriated to
199 the department for the direct-support organization task force
200 for staffing and administrative expenses of the direct-support
201 organization task force, including travel and per diem costs
202 incurred by task force members who are not otherwise eligible
203 for state reimbursement.
204 (6) This section is repealed October 1, 2029, unless
205 reviewed and saved from repeal by the Legislature.
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CS/HB 1537
HOUSE OF REPRESENTATIVES STAFF ANALYSIS
BILL #: CS/HB 1537 Vacation Rentals
SPONSOR(S): Regulatory Reform & Economic Development Subcommittee, Griffitts
TIED BILLS: IDEN./SIM. BILLS: CS/SB 280
REFERENCE ACTION ANALYST STAFF DIRECTOR or
BUDGET/POLICY CHIEF
1) Regulatory Reform & Economic Development 10 Y, 4 N, As CS Thompson Anstead
Subcommittee
2) Commerce Committee Thompson Hamon
SUMMARY ANALYSIS
The Division of Hotels and Restaurants (Division) in the Department of Business and Professional Regulation
(DBPR) licenses and inspects vacation rentals within the state. A vacation rental is classified as any unit or
group of units in a condominium or cooperative or any individually or collectively owned home, not a timeshare
project, which is rented to guests more than three times in a calendar year for periods of less than 30 days
or 1 calendar month, or advertised to the public as a place regularly rented to guests. Local governments may
not prohibit vacation rentals or regulate the duration or frequency of such rentals. Local regulations adopted
before June 1, 2011, are not subject to this prohibition.
The bill:
Adds to the scope of the state preemption of public lodging establishments and public food service
establishments by preempting “licensing” regulations, and revises the scope of the express state
preemption on vacation rentals to allow local jurisdictions to amend local regulations to:
o Be less restrictive; or
o Comply with local registration requirements.
Allows local governments to:
o Create a local vacation rental registration program.
o Charge a registration fee not to exceed $150 for processing an individual registration
application.
o Fine vacation rental operators up to $300, file and foreclose on a lien based on the fine,
suspend registrations, and revoke or refuse to renew a registration, for violations of the local
registration requirements.
Preempts to the state the regulation of advertising platforms, requires users of advertising platforms to
provide license and registration information in a vacation rental listing, requires advertising platforms to
collect and remit certain taxes and adopt an antidiscrimination policy.
Grants the Division certain enforcement mechanisms relating to unlicensed activities.
Requires the Division to create and maintain a vacation rental license information system to allow local
governments to notify the Division of suspensions and terminations, verify the license and local
registration status of a vacation rental, and registered users to subscribe to receive notification of
changes to the license or registration of a vacation rental.
Specifically, does not supersede the authority of condominiums, cooperatives, or homeowners’
associations to restrict the use of their properties.
Requires vacation rental operators to display license and registration information.
The bill may have in indeterminate fiscal impact on state and local government, and the private sector.
Except as otherwise provided, the effective date of the bill is July 1, 2024.
This docum ent does not reflect the intent or official position of the bill sponsor or House of Representatives .
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FULL ANALYSIS
I. SUBSTANTIVE ANALYSIS
A. EFFECT OF PROPOSED CHANGES:
Present Situation
Vacation Rentals
The Division of Hotels and Restaurants (Division) within the Department of Business and Professional
Regulation (DBPR) is charged with enforcing the provisions of ch. 509, F.S., and all other applicable
laws relating to the inspection and regulation of public lodging establishments and public food service
establishments for the purpose of protecting the public health, safety, and welfare. DBPR licenses
vacation rentals within the state and has the power to inspect a licensed vacation rental. 1
Public lodging establishments are classified as a hotel, motel, vacation rental, nontransient apartment,
transient apartment, bed and breakfast inn, or timeshare project. 2
The term “public lodging establishments” includes transient and nontransient public lodging
establishments.3 The principal differences between transient and nontransient public lodging
establishments are the number of times that the establishments are rented in a calendar year and the
length of the rentals.
The term “transient public lodging establishment” means any unit, group of units, dwelling, building, or
group of buildings within a single complex of buildings, which is rented to guests more than three times
in a calendar year for periods of less than 30 days or one calendar month, whichever is less, or which
is advertised or held out to the public as a place regularly rented to guests. 4
The term “vacation rental” means any unit or group of units in a condominium or cooperative or any
individually or collectively owned single-family, two-family, three-family, or four-family house or dwelling
unit that is also a transient public lodging establishment but that is not a timeshare project. 5
Current law exempts from licensing requirements living or sleeping facilities that do not fit within the
classification of a hotel, motel, timeshare project, vacation rental, nontransient apartment, bed and
breakfast inn, or transient apartment.6 Currently, the classification for “vacation rental” only applies to
situations where the entire unit or dwelling is offered for rent; therefore the rental of individual rooms
within a condominium unit or house is excluded from the licensure and regulation of public lodging
establishments by the Division.7
Licensure
The Division is authorized to issue vacation rental licenses as follows:
Single license: issued to an individual person or entity, but not a licensed agent, and may
include one single-family house or townhouse, or a unit or group of units within a single building
that are owned and operated by the same individual person or entity.
Group license: issued to a licensed agent to cover all units within a building or group of
buildings in a single complex and only covers units held out to the public as a place regularly
rented to guests.
1 S. 509.241, F.S.
2 S. 509.242(1), F.S.
3 S. 509.013(4)(a), F.S.
4 S. 509.013(4)(a)1., F.S.
5 S. 509.242(1)(c), F.S.
6 S. 509.013(4)(b)9., F.S.
7 See 18-06 Fla. Op.Att’y Gen. (2018).
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Collective license: issued to a licensed agent who represents a collective group of houses or
units found on separate locations not to exceed 75 houses per license. 8
Applicants for licensure must submit the appropriate application and required fee to the Division. The
license fees are based on the number of rental units in the establishment. A current license must be
conspicuously displayed in the office or lobby of the licensed establishment. 9 If no office or lobby is
present on the premises of the licensed establishment, the license must be readily available for
inspection upon request.10
Currently, there are 63,690 public lodging establishments licensed by the Division. These licenses are
distributed as follows:11
Hotels: 2,308 licenses;
Motels: 2,397 licenses;
Non-transient apartments: 18,315 licenses;
Transient apartments: 913 licenses;
Bed and Breakfast Inns: 261 licenses;
Vacation rental condominiums: 12,716 licenses;
Vacation rental dwellings: 26,733 licenses; and
Vacation rental timeshare projects: 47 licenses.
License Fees
The Division provides the following fee schedule relating to vacation rentals: 12
Vacation rentals/collective license.
BASIC PER UNIT FEE HEP FEE13 TOTAL FEE
FEE
$150 $10 $10 VARIES
Vacation rentals/group and single license.
NUMBER OF BASIC FEE INCREMENTAL HEP FEE TOTAL FEE
UNITS UNIT FEE
SINGLE $150 $10 $10 $170
UNIT
2-25 $150 $20 $10 $180
26-50 $150 $35 $10 $195
51-100 $150 $50 $10 $210
101-200 $150 $75 $10 $235
201-300 $150 $105 $10 $265
301-400 $150 $135 $10 $295
401-500 $150 $160 $10 $320
OVER $150 $190 $10 $350
500
Applicants for initial licensure are required to pay the full license fee if the application is made during, or
more than six months before, the annual renewal period. A half-year fee is authorized if such
application is made 6 months or less before the renewal period. A $50 application fee is required when
making the initial application or an application for change of ownership. Renewal fees are based upon
the number of units under the license when the license was either issued or last renewed, whichever is
8 S. 509.241, F.S.
9 S. 509.241(3), F.S.
10 R. 61C-1.002(1), F.A.C.
11 DBPR, Division of Hotels and Restaurants Annual Report for FY 2021 -2022, p. 8,
http://www.myfloridalicense.com/dbpr/hr/reports/annualreports/documents/ar2021_22.pdf (last visited Jan. 26, 2024).
12 R. 61C-1.008, F.A.C.
13 S. 509.302, F.S., establishes the Hospitality Education Program. All public lodging establishments and all p ublic food service
establishments licensed under ch. 509, F.S., are required to pay an annual fee of no more than $10, which shall be included in the
annual license fee and used for the sole purpose of funding the Hospitality Education Program.
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most recent. A $50 delinquency fee is required to renew a delinquent license filed with the Division after
the expiration date.
Sanitation and Safety
Current law requires each public lodging establishment to meet requirements and standards relating to
sanitation and safety.14 These requirements and standards apply to the following:
Water, plumbing and waste;
Public bathrooms (vacation rentals are exempt from this requirement);
Towels;
Glassware, tableware, and utensils (vacation rentals are exempt from federal and state
standards but must sanitize with household cleaning supplies and provide notice of such in
guest rooms);
Kitchens;
Ice making machines;
Locking devices;
Vermin control;
Storage and labeling of toxic items;
Structural components, attachments, and fixtures; and
Attics, basements, boiler rooms, meter rooms, laundry rooms, and storage rooms.
Ventilation and Fire Safety
Each bedroom in a public lodging establishment must be properly ventilated with windows or
mechanical ventilation.15 Specialized smoke detectors for the deaf and hearing-impaired must be made
available upon request by guests in transient public lodging establishments without charge. 16
In addition, smoke alarms must be installed in every living unit,17 and automatic fire sprinklers may be
required in public lodging establishments if the rental units are located within a building with three or
more stories or greater than 75 feet in height.18 All local fire authority requirements must be met.
Electrical wiring must be in good repair.
Conduct on Premises
The operator of a public lodging establishment is authorized to refuse accommodations or service to
undesirable guests.19 Subject to proper notification, an operator may remove guests who:
Illegally possess or deal controlled substances;
Are intoxicated;
Are profane, lewd, or brawling;
Disturb the peace and comfort of other guests;
Injure the reputation, dignity, or standing of the establishment;
Fail to pay rent on time;
Fail to check out on time;
Are generally detrimental to the establishment.20
The admission to, or the removal from, a public lodging establishment cannot be based upon race,
creed, color, sex, physical disability, or national origin.21
14 See generally s. 509.221, F.S., and R. 61C-1&3, F.A.C.
15 S. 509.221(3), F.S.
16 R. 61C-1.004, F.A.C.
17 S. 509.215(1)(b), F.S.
18 S. 509.215(1), F.S.
19 S. 509.142, F.S.
20 S. 509.141(1), F.S.
21 S. 509.141(1), F.S.
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Violations for remaining or attempting to remain in an establishment after being requested to leave are
a second-degree misdemeanor, punishable as provided in ss. 775.082 or 775.083, F.S. 22
In addition, an operator is authorized to take a person into custody and detain that person for disorderly
conduct that creates a threat to the life or safety of the person or others. The operator is required to call
a law enforcement officer to the scene immediately after detaining a person under this provision.23
Inspections
The Division is required to inspect all public lodging establishments as often as necessary for the
enforcement of the law and protection of the public health, safety and welfare. Each licensed public
lodging establishment must be inspected at least biannually (twice per year), except for transient
and non-transient apartments, which must be inspected at least annually. 24
Vacation rentals are not subject to this requirement, but must be available for inspection upon a
request by the Division. For inspection purposes, the licensee or operator must, upon request, meet
the inspector at the site of a specified establishment with keys to the licensed house or unit being
inspected.25
Additionally, an applicant for a vacation rental license is required to submit with the license application
a signed certificate evidencing the inspection of all balconies, platforms, stairways, railings, and
railways from a person competent to conduct such inspections. 26
The Division also may inspect a vacation rental in response to a consumer complaint related to
sanitation issues or unlicensed activity. In Fiscal Year 2021-2022, the Division received 325
consumer complaints related to vacation rentals, of which 34 were confirmed as a violation by the
Division.27
Registry
The licensee or operator of a vacation rental must notify the Division of any and all houses or units
represented for inclusion in the license application. Anytime a change occurs in the street or unit
address or number of houses or units included under the license, the licensee or operator must notify
the Division of any and all houses or units included in the license at least 60 days prior to the expiration
date of the license. In addition, a list of the included houses or units must be maintained in a written
form for inspection by request.28
Each operator of a transient establishment must maintain a register showing the dates each rental unit
was occupied by a guest as well the rates charged to the occupants. This register must be maintained
in chronological order and available for inspection by the Division at any time. Operators must maintain
two years of register data.29
Violations
Any public lodging establishment found to be in violation of ch. 509, F.S., or rules adopted by the
Division, may be subject to administrative actions including the following penalties:
Fines not to exceed $1,000 per offense; and
Suspension, revocation, or refusal of a license.30
22 S. 509.141(3), F.S.
23 S. 509.143(1), F.S.
24 See generally s. 509.032, F.S., r. 61C-1.002, F.A.C.
25 Id.
26 See ss. 509.211(3), 509.2112, F.S., and r. 61C-3.001, F.A.C.
27 DBPR, supra note 11, at 21.
28 R. 61C-1.002, F.A.C.
29 S. 509.101(2), F.S.
30 S. 509.261(1), F.S.
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Preemption Authority
Prior to June 1, 2011, local governments regulated vacation rentals (also referred to as resort dwellings
in many local ordinances). Local governments could restrict or prohibit vacation rentals up to, and
including, banning the use of residential properties as vacation rentals.
Legislation in 2011 preempted the authority to regulate vacation rentals to the state.31 The preemption
prevented local governments from enacting any new law, ordinance, or regulation that:
Restricted the use of vacation rentals;
Prohibited vacation rentals; or
Regulated vacation rentals based solely on their classification, use, or occupancy.
The 2011 preemption also “grandfathered” any local law, ordinance, or regulation of vacation rentals
enacted on or prior to June 1, 2011.32
Prior to the 2011 preemption, several municipalities had created regulations specifically relating to
vacation rentals.33 As an example, one ordinance prohibited owners of single-family residences in
residential zones from renting their properties for durations of less than 30 days, although it
grandfathered certain vacation rentals that had already obtained all applicable state and local licenses
and permits.34 Subsequent to the enactment of the 2011 legislation, the vacation rental market
experienced growth.35
In 2014, the Legislature narrowed the scope of the preemption to preempt only those local regulations
that:
Prohibit vacation rentals; or
Regulate the duration or frequency of vacation rentals.
Thus, local governments can regulate vacation rentals to the extent those regulations do not prohibit
vacation rentals, or restrict the duration or frequency of vacation rentals. The grandfather provision for
regulations adopted on or before June 1, 2011, was retained.36
This preemption does not apply to local regulations exclusively relating to “property valuation as a
criterion for vacation rental if the local regulation is required to be approved by the state land planning
agency pursuant to an area of critical state concern.” 37
In addition, the regulation of public lodging establishments and public food service establishments,
including, but not limited to, sanitation standards, inspections, training and testing of personnel, and
matters related to the nutritional content and marketing of foods offered in such establishments, is
preempted to the state. However, local governments or local enforcement districts are still allowed to
conduct inspections of public lodging and public food service establishments for compliance with the
Florida Building Code and the Florida Fire Prevention Code.38
Local Ordinances
31 Ch. 2011-119, Laws of Fla., codified in s. 509.032(7), F.S.
32 Id.
33 See City of Venice Code of Ordinances, ch. 86, art. V, div. 9, s. 86-151. See also Monroe County Code, No. 004-1997 (2013); Bal
Harbour Village Code of Ordinances, s. 21-363.
34 City of Venice Code of Ordinances, ch. 86, art. V, div. 9, s. 86-151. See also City of Venice v. Gwynn, 76 So. 3d 401, 403 (Fla. 2nd
DCA 2011).
35 Florida Today, Explosion of vacation rentals in Cocoa Beach leaves residents frustrated and angry (Oct. 5, 2023),
https://www.floridatoday.com/story/news/local/2023/10/05/cocoa-beach-impacts-vacation-rental-growth-airbnb-vrbo-brevard-
florida/70767082007/ (last visited Jan. 26, 2024).
36 Ch. 2014-71, Laws of Fla., codified in s. 509.032(7)(b ), F.S.
37 S. 509.032(7)(c), F.S.
38 S. 509.032(7)(a), F.S.
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Currently, many local jurisdictions in Florida regulate vacation rentals. These counties and cities
typically require some type of registration or certification, along with certain other requirements,
including, but not limited to, fees, occupancy limits, and parking, noise, and garbage restrictions that
are separate from such requirements and restrictions for other residential properties.
Flagler County
Flagler county has adopted an ordinance that regulates short term vacation rentals through a
“certificate” program. The program allows such rentals in all residential zoning districts in the county.
The ordinance defines such rentals as a “commercial business… of a single-family or a two-family
dwelling...” Fees for initial certification are $400, renewals are $200, and inspections can be up to
$200.39
Vacation rental owners, in part, must obtain a certificate and business tax receipt from the county, a
Department of Revenue (DOR) certificate of registration, and a DBPR license as a transient public
lodging establishment. The ordinance provides minimum life/safety requirements such as swimming
pool, smoke detection, and emergency lighting requirements. The ordinance provides parking and solid
waste requirements, initial and routine compliance inspections, and a responsible party requirement. 40
The maximum occupancy requirements are one person per 150 gross square feet of permitted,
conditioned living space, or in accordance with the maximum occupancy of a septic tank permit, or two
persons per sleeping room plus two additional persons in a common area. 41
Penalties for violations, include warnings for first time violations, and up to $500 per repeat violations.
The ordinance also allows the county to seek other remedies such as injunctive relief, liens, and other
civil and criminal penalties.42
Sarasota
The City of Sarasota has adopted an ordinance that regulates short term vacation rentals through a
“certificate of registration” program. The ordinance allows such rentals within residential zoning districts
in the city limits. The ordinance defines “vacation rental” as a rental as defined in F.S. ss. 509.242(1)(c)
and 509.013(4)(a)(1), F.S., excluding those vacation rentals in condominiums and cooperatives and
which is located in a residential zone within the coastal islands overlay district. Fees for an initial
certificate of registration are $500, renewals are $350, and inspections can be up to $200. 43
The ordinance requires vacation rental owners, in part, to obtain a copy of their business tax receipts
from the city and county, evidence of an active account with the tax collector, a copy of the current
DBPR vacation rental license, and a copy of the DOR certificate of registration. The ordinance provides
minimum safety, minimum informational, parking, designated responsible party, and advertising
requirements.44
The maximum occupancy in residential single-family zone districts is two persons per bedroom, plus
two additional persons per property or ten persons, whichever is less. Maximum occupancy in
residential multiple-family zone districts it two persons per bedroom, plus two additional persons per
property or twelve persons, whichever is less. Children under six years of age are not included in the
calculation of maximum occupancy. The ordinance also provides a minimum stay requirement of 7
days and 7 nights.45
39 Flagler County Ordinance No. 2016-01.
40 Id.
41 Id.
42 Id.
43 City of Sarasota Ordinance No. 34.5.
44 Id.
45 Id.
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The ordinance provides penalties that apply for each day a violation occurs, including fines and
suspensions. The City’s Code Compliance addresses complaints related to unsupervised vacation
rentals, including but not limited to, over-occupancy, open and late-night parties, excessive noise,
parking on public sidewalks and excessive trash and garbage accumulation. Fines for initial violations
can be up to $1,000 per day, repeat violations can be up to $5,000 per day, and violations that are
irreparable or irreversible in nature can be $15,000. In addition to any fines and any other remedies
provided by law, a special magistrate may, in his or her discretion, suspend an initial or renewed
certificate of registration for a vacation rental upon request.46
Recent Activity
Homeowners found to be in conflict with ordinances regulating vacation rentals have taken legal ac tion
against their respective local governments through the Bert J. Harris, Jr., Private Property Rights
Protection Act.47 The act provides a cause of action for private property owners whose real property
has been inordinately burdened by a specific action of a governmental entity that may not rise to the
level of a “taking” under the State or Federal Constitutions. The inordinate burden can apply to either
an existing use of real property or a vested right to a specific use. 48
Anna Maria
In November 2015, the City of Anna Maria passed and adopted an ordinance that provides a general
framework for the regulation of vacation rentals, including maximum occupancy requirements.
According to the city’s website, since April 2016, approximately 113 Bert Harris Act claims relating to
the ordinance have been filed that could amount to approximately $38 million in damages. The City of
Anna Maria website provides that the majority of these claims have been closed. 49
Holmes Beach
Recent reports indicate that the City of Holmes Beach in Anna Maria Island settled similar claims in
2021. According to reports, the city agreed to allow property owners to build homes with more
bedrooms than current ordinances allow. One property owner will be permitted to build an eight
bedroom house while the city ordinance limits bedrooms to four. Other claims related to occupancy
were decided by the courts. Local ordinances limit two people per bedroom. Attorney fees for the city
related to these claims were paid for by the Florida League of Cities.50
Miami Beach
In March 2016, Miami Beach, which bans all short-term rentals, passed an ordinance making the fine
for a first violation for a resident caught renting short-term $20,000. Each subsequent fine increases by
$20,000 and can be as high as $100,000. Vacation/short-term rentals that are permitted in certain
zoning districts of Miami Beach are required to provide and conspicuously display the city-issued
business tax receipt number and the resort tax certificate number in every advertisement or listing of
any type in connection with the rental of the residential property. 51 In June 2018, it was reported that
46 Id.
47 Kathy Prucnell, 2 more Holmes Beach Bert Harris claims proceed to courthouse, The Islander(Feb. 20, 2018),
https://www.islander.org/2018/02/2-more-holmes-beach-bert-harris-claims-proceed-to-courthouse/ (last visited Jan. 26, 2024).
48 S. 70.001, F.S.
49 City of Anna Maria, Bert J. Harris, Jr., Private Property Rights Protection Act Claim Filings,
http://www.cityofannamaria.com/residents/bert_harris_claim.php (last visited Jan. 26, 2024).
50 Kristin Swain, Bert Harris cases come to a close in Holmes Beach, Amisun (Nov. 1, 2021),
https://www.amisun.com/2021/11/01/bert-harris-cases-come-to-a-close-in-holmes-
beach/#:~:text=HOLMES%20BEA CH%20%E2%80%93%20After%20more%20than,were%20too%20generous%20to%20developers
. (last visited Jan. 29, 2024).
51 See Miami Beach City Code, Sec. 142-1111 and 142-905(b).
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Miami Beach had issued $12.1 million in fines, only $174,000 of which had been paid. Some vacation
rental owners were reported to have accumulated up to $60,000 in fines. 52
Since then, the Third District Court of Appeal invalidated the city’s fine structure after determining the
regulations conflict with state law that caps violation fines between $1,000 and $5,000.53 As a result,
the city has left the regulations in place and simply revised the fine structure. First-time offenders are
fined $1,000 a day, and repeat offenders are fined $5,000 per day. According to a memo from the city
attorney, the new fine structure complies with the ruling against Miami Beach.54
Condominiums, Cooperatives, and Homeowners’ Associations
A condominium is a form of ownership of real property created pursuant to ch. 718, F.S., comprised of
units which may be owned by one or more persons but have an undivided share of access to common
elements.55 A condominium is created by recording a declaration in the public records of the county in
which the condominium will be located.56 A declaration governs the relationships among condominium
unit owners and the condominium association. All unit owners are members of the condominium
association. The condominium association is overseen by an elected board of directors, commonly
referred to as a “board of administration.” The association enacts condominium association bylaws
governing the administration of the association. The declaration as originally recorded or as amended
may include covenants and restrictions concerning the use, occupancy, and transfer of the units in the
association.
A cooperative is a form of property ownership created pursuant to ch. 719, F.S., where real property is
owned by the cooperative association, and individual units are leased to the residents who own shares
in the cooperative association.57 The lease payment amount is the pro-rata share of the operational
expenses of the cooperative. Cooperatives operate similarly to condominiums and the laws regulating
cooperatives are similar in many ways. A cooperative is created using “cooperative documents” which
include articles of incorporation of the association, bylaws, and the ground lease or other underlying
lease, if any. The documents may include restrictions, which affect the use of the property.
A homeowners’ association (HOA) is an association of residential property owners , created pursuant to
ch. 720, F.S., where voting membership consists of parcel owners, membership is a mandatory
condition of parcel ownership, and which may impose assessments that, if unpaid, can become a lien
on the parcel.58 Chapter 720, F.S., only regulates HOAs whose covenants and restrictions include
mandatory assessments. Like a condominium or cooperative, an HOA is administered by an elected
board of directors. The powers and duties of an HOA includes those provided in ch. 720, F.S., and
contained in the governing documents of the association. The governing documents include the
recorded covenants and restrictions, bylaws, articles of incorporation, and duly adopted amendments to
those documents. The documents may include restrictive covenants governing the use and occupancy
of properties.
Based on these laws, condominium, cooperative, and homeowners’ associations may enact provisions
that restrict the ability of the property owners to rent their properties.59 This includes actions such as
52 Chabeli Herrera, Miami Beach has the country's highest short-term rental fines. It just got sued, Miami Herald (June 28, 2018),
https://www.miamiherald.co m/news/business/article213954174.ht ml (last visited Jan. 26, 2024).
53 Francisco Alvarado, Miami-Dade judge strikes down Miami Beach short-term rental ban, TheRealDeal South Florida Real Estate
News (Oct. 8, 2019), https://therealdeal.com/miami/2019/ 10/ 08/ miami-dade-judge-strikes-down-miami-beach-short-term-rental-ban/
(last visited Jan. 26, 2024).
54 Francisco Alvarado, Miami Beach slashes fines for illegal short-term rentals, TheRealDeal South Florida Real Estate News (Oct.
14, 2019), https://therealdeal.com/miami/2020/10/14/ miami-beach-slashes-fines-for-illegal-short-term-rentals/ (last visited Jan. 26,
2024).
55 S. 718.103(11), F.S.
56 S. 718.104(2), F.S.
57 S. 719.103(2)(26), F.S.
58 S. 720.301(9), F.S.
59 Motley Fool, Can an HOA Restrict Rentals? (Spoiler Alert: Yes), https://www.fool.com/millionacres/real-estate-investing/rental-
properties/can-hoa-restrict-rentals-spoiler-alert-yes/# (last visited Jan. 26, 2024).
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prohibiting owners from renting their properties, restricting the duration of the rental term, or limiting the
frequency owners are allowed to rent their properties.
Effect of the Bill
Preemptions
Scope
The bill adds to the scope of the state preemption of public lodging establishments and public food
service establishments, by also preempting “licensing.”
The bill revises the scope of the express state preemption on vacation rentals to allow local jurisdictions
to adopt local regulations:
As long as the regulation is less restrictive; or
To comply with local registration requirements.
The bill also preempts the regulation of advertising platforms to the state.
Exemptions
The bill maintains the exemption to the preemption that allows only local ordinances adopted on or
before June 1, 2011, to remain in effect. Additionally, the bill allows a local government to pass such
regulations after June 1, 2011, if they are less restrictive than what was in effect on June 1, 2011.
The bill maintains the exemption to the preemption for areas of critical state concern so that these
areas remain fully exempted from the preemption, and may have existing ordinances that were adopted
after June 1, 2011.
Regulation of Vacation Rentals by Local Government
Registration
The bill:
Authorizes local laws, ordinances, or regulations to require the registration of vacation rentals
with a local vacation rental registration program.
Authorizes local governments to implement such a program and impose a fine for failure to
register under the program.
Requires such programs to be administered by the tax collector.
The bill specifies that it does not prohibit a local government from establishing a local law, ordinance, or
regulation if it is uniformly applied without regard to whether the residential property is used as a
vacation rental.
Fees
The bill allows a local government to charge a fee of no more than $150 per unit for processing a
registration application.
The bill allows a local law, ordinance, or regulation to:
Require annual renewal of a registration; and
Charge a renewal fee of no more than $50 per unit for processing of a registration renewal.
The bill specifies that if there is a change of ownership, the new owner may be required to submit a
new application for registration.
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The bill provides that subsequent to the registration of a vacation rental, a local government is
authorized to charge a fee, not to exceed $150, for a person authorized by s. 633.118, F.S., to inspect
the vacation rental and enforce the laws and rules of the State Fire Marshall for issues pertaining to the
uniform firesafety standards.
Conditions for Registration
The bill provides that as a condition of registration or renewal of a vacation rental, a local law,
ordinance, or regulation establishing a local vacation rental registration program may require the
operator of a vacation rental to do only the following:
Submit identifying information about the owner and the owner's operator, if applicable, and the
subject vacation rental premises.
Provide proof of a license with the unique identifier issued by the Division to operate as a
vacation rental.
Obtain all required tax registrations, receipts, or certificates issued by the Department of
Revenue (DOR), a county, or a municipality.
Update required information on a continuing basis to ensure it is current.
Designate and maintain at all times a responsible party who is capable of responding to
complaints or emergencies related to the vacation rental, including being available by telephone
at a provided contact telephone number 24 hours a day, 7 days a week, and receiving legal
notice of violations on behalf of the operator.
o The responsible party has until 9 a.m. the next calendar day to respond to a complaint or
emergency by telephone or otherwise.
State the maximum occupancy of the vacation rental based on the number of sleeping
accommodations for persons staying overnight in the vacation rental.
Pay in full all recorded municipal or county code liens against the subject vacation rental
premises.
Review and Acceptance
The bill requires that within 15 business days after receiving an application for registration of a vacation
rental, a local government must review the application for completeness and accept the registration of
the vacation rental or issue a written notice of denial.
The bill provides that a vacation rental owner or operator and the local government may agree to a
reasonable request to extend the timeframes, particularly in the event of a force majeure or other
extraordinary circumstance.
The bill provides that:
If the local government fails to accept the registration within the timeframes provided, the
application is deemed accepted.
If a local government denies a registration of a vacation rental, the local government must give
written notice to the applicant. Such notice:
o May be provided by United States mail or electronically.
o Must specify with particularity the factual reasons for the denial and include a citation to
the applicable portions of the ordinance, rule, statute, or other legal authority for the
denial of the registration.
A local government may not prohibit an applicant from reapplying if the applicant cures the
identified deficiencies.
The bill requires, upon an accepted vacation rental registration, a local government to immediately
assign a unique registration number to the vacation rental unit and provide the registration number or
other indicia of registration to the vacation rental operator in writing or electronically.
The bill requires a vacation rental operator to provide the vacation rental registration number to the
Division.
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Local Government Enforcement and Remedies
Fines and Liens
The bill allows a local government to fine a vacation rental operator up to $300 if he or she:
Fails to continue to meet the registration requirements; or
Is operating a vacation rental without registering with the local government as a vacation rental.
Regarding the process for a local government to fine a vacation rental operator, the bill:
Allows a certified copy of an order imposing a fine to be recorded in the public records and
thereafter constitutes a lien against the real property on which the violation exists.
Specifies that upon petition to the circuit court, such order is enforceable in the same manner as
a court judgment by the sheriffs of this state, including execution and levy against the personal
property of the violator, but such order may not be deemed to be a court judgment except for
enforcement purposes.
Requires the fine to continue to accrue until the violator comes into compliance or until
judgment is rendered in a suit filed pursuant to this provision, whichever occurs first.
Provides that a lien arising from such a fine runs in favor of the local government, and the local
government is authorized to execute a satisfaction or release of lien.
Provides that three months or more after the filing of any such lien that remains unpaid, the
local government is authorized to foreclose on the lien against the real property on which the
violation exists or sue to recover a money judgment for the amount of the lien, plus accrued
interest.
Provides that a lien created pursuant to this part may not be foreclosed on real property that is a
homestead under s. 4, Art. X of the State Constitution.
Specifies that the money judgment provisions of this provision do not apply to real property or
personal property that is covered under s. 4(a), Art. X of the State Constitution. 60
Registration Suspensions
The bill provides that if a vacation rental owner is found by the code enforcement board or special
magistrate to have materially violated a local law, ordinance, or regulation that does not solely apply to
vacation rentals and the violation is directly related to the owner's vacation rental premises:
The local government must issue a written notice of such violation.
The code enforcement board or special magistrate must make a recommendation to the local
government as to whether an owner's vacation rental registration should be suspended.
The code enforcement board or special magistrate must recommend the suspension of the
owner's vacation rental registration if the owner is found to have one or more material violations,
as follows:
o On 5 separate days during a 60-day period;
o On 5 separate days during a 30-day period; or
o After two prior suspensions of an owner's vacation rental registration during a six month
period.
If the code enforcement board or special magistrate recommends suspension of an owner's
vacation rental registration, the local government is authorized to suspend such registration for
a period of:
o Up to 15 days for one or more material violations on 5 separate days during a 60-day
period;
60 Article X, s. 4(a), of the Florida Constitution provides “there shall be exempt from forced sale under process of any court, and no
judgment, decree or execution shall be a lien thereon, except for t he payment of taxes and assessments thereon, obligations contracted
for the purchase, improvement or repair thereof, or obligations contracted for house, field or other labor performed on the r ealty, the
following property owned by a natural person: (1) a homestead, if located outside a municipality, to the extent of one hundred sixty
acres of contiguous land and improvements thereon, which shall not be reduced without the owner’s consent by reason of subseq uent
inclusion in a municipality; or if located within a municipality, to the extent of one-half acre of contiguous land, upon which the
exemption shall be limited to the residence of the owner or the owner’s family; (2) personal property to the value of one tho usand
dollars.
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o Up to 30 days for one or more material violations on 5 separate days during a 30-day
period; or
o Up to 60 days for one or more material violations after two prior suspensions of an
owner's vacation rental registration during a six month period.
A local government is prohibited from suspending an owner's vacation rental registration for
violations of a local law, ordinance, or regulation which are not directly related to the vacation
rental premises.
A local government is required to provide notice of the suspension of a vacation rental
registration to the operator and the Division within 5 days after the suspension.
o The notice must include the start date of the suspension, which must be at least 21 days
after the suspension notice is sent to the operator and the Division.
Effective January 1, 2026, a local government is required to use the vacation rental information system
described in s. 509.244, F.S., created by the bill, to provide notice of the suspension of a vacation
rental registration to the Division.
Registration Revocations
The bill allows a local government to revoke or refuse to renew a vacation rental registration of a
specific vacation rental, if:
The code enforcement board or special magistrate has found that the vacation rental owner has
habitually committed material violations under the suspension violation provisions and has
imposed the strictest penalty;
There is an unsatisfied recorded municipal lien or county lien on the real property of the
vacation rental, provided local governments give a vacation rental owner at least 60 days to
satisfy a recorded municipal or county code lien before terminating a local registration because
of the unsatisfied lien;
o The registration must immediately and automatically be reinstated or renewed upon
satisfaction of such lien; or
The premises and its owner are the subject of a final order or judgment lawfully directing the
termination of the premises’ use as a vacation rental.
The bill uses interchangeably the terms “revocation” and “termination.”
The bill also requires local governments to provide notice of a termination or nonrenewal to the
operator of a vacation rental within five days after the termination or nonrenewal. The notice must
include the start date of the termination or refusal to renew, which must be at least 21 days after the
notice is sent to the operator and the Division.
Effective January 1, 2026, a local government must use the vacation rental information system as
established in s. 509.244, F.S., which is created by the bill, to provide the notice of termination or
nonrenewal of a vacation rental registration to the Division.
Appeals
The bill authorizes a vacation rental owner to appeal a denial, suspension, termination, or nonrenewal
of a vacation rental registration to the circuit court, as follows:
The appeal must be filed within 30 days after the issuance of the denial, suspension, or
termination.
The court may assess and award reasonable attorney fees and costs and damages to a
vacation rental owner.61
The owner is authorized to apply for registration upon the sale of the vacation rental premises to
a new owner or six months after revocation or refusal to renew the vacation rental registration.
61 S. 162.11,F.S., provides for the appeal of a final administrative order of a local government enforcement board to the circuit court.
This provision does not provide for the awarding of attorney fees and costs to the prevailing party.
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Regulation of Vacation Rentals by the Division
Licensing
Effective January 1, 2025, the bill:
Authorizes the Division, upon receiving an application for a vacation rental license, to grant a
temporary license to permit the operation of the vacation rental while the license application is
pending.
o The temporary license automatically expires upon final agency action regarding the license
application.
Requires any license issued by the Division to be displayed conspicuously to the public inside the
licensed establishment, instead of “in the office or lobby.”
Requires the owner or operator of a vacation rental offered for transient occupancy through an
advertising platform to display the vacation rental local registration number, if applicable.
Requires the licensee or licensed agent managing a vacation rental to submit to the Division,
through the Division’s online system, any applicable local vacation rental registration number.
Requires the division to include a unique identifier on each vacation rental license it issues which
identifies each individual vacation rental dwelling or unit.
Suspensions and Revocations of Vacation Rental Licenses
The bill amends authorizes the Division to revoke, refuse to issue or renew, or suspend for a period of
not more than 30 days a vacation rental license when:
The operation of the subject premises violates the terms of an applicable lease or property
restriction, including any property restriction adopted pursuant to chs. 718, 719, or 720, F.S., as
determined by a final order of a court or an arbitrator’s written decision; 62
The registration of the vacation rental is suspended or revoked by a local government as
provided in s. 509.032(8), F.S.; or
The premises and its owner are the subject of a final order or judgment lawfully directing the
termination of the premises’ use as a vacation rental.
When revoking, suspending, or refusing to renew a vacation rental license, the bill requires the Division
to specify the license number with the associated unique identifier of the vacation rental dwelling or unit
that has been suspended, revoked or not renewed. The Division must also input such status into the
vacation rental information system described in s. 509.244, F.S.
The bill requires that any suspension of a vacation rental license based on the suspension of a local
registration must run concurrently with the local registration suspension.
Requirements for Advertising Platforms
Effective January 1, 2025, the bill provides requirements for an advertising platform, including tax
collection and remittance requirements. Under the bill, an advertising platform must:
Require that a person who places an advertisement for the rental of a vacation rental to:
o Include the vacation rental license number with the associated unique identifier and, if
applicable, the local registration number; and
o Attest to the best of the person’s knowledge that the license number and the local
registration number, if applicable, for the vacation rental property are current and valid
and that all related information is accurately stated in the advertisement.
Display the vacation rental license number with the associated unique identifier.
Adopt an anti-discrimination plan and inform its users of the public lodging discrimination
prohibition found in s. 509.092, F.S.
Effective January 1, 2026, the bill requires advertising platforms to:
62 Chapters 718, 719, or 720, F.S., relate to the regulation and governance of condominium, cooperative, and homeowners’
associations, respectively.
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Remove the ability to book an advertisement or listing from its online application, software,
website, or system within 15 business days after notification through the vacation rental
information system as established in s. 509.244, F.S., that a vacation rental license or, if
applicable, a local registration:
o Has been suspended, revoked, or not renewed; or
o Fails to display a valid license number with the associated unique identifier and, if
applicable, the local registration number.
The bill requires advertising platforms to collect and remit taxes due under ss. 125.0104,63 125.0108,64
205.044,65 212.03,66 212.0305,67 and 212.055, F.S.,68 resulting from the reservation of a vacation rental
property and payment therefor through an advertising platform.
The bill also:
Provides processes for the Division to issue a cease and desist order to any person who
violates ch. 509, F.S.
Authorizes the Division to seek an injunction or a writ of mandamus to enforce a cease and
desist order.
Provides that, if the Division is required to seek enforcement of the notice for a penalty pursuant
to s. 120.69, F.S., it is entitled to collect its attorney fees and costs, together with any cost of
collection.
Authorizes the Division to fine an advertising platform an amount not to exceed $1,000 per
offense for a violation of the provisions in the bill or rules of the Division.
Provides that the advertising platform requirements in the bill do not create a private right of
action against advertising platforms.
Vacation Rental Information System
The bill requires the Division to create and maintain, by July 1, 2025, a vacation rental information
system readily accessible through an application program interface to allow:
Licensees and advertising platforms to promptly comply with ch. 509, F.S., relating in pertinent
part to public lodging establishments;
Local governments to notify the Division of a termination, failure to renew, or period of
suspension of a local registration;
Local governments to verify the status of a vacation rental; and
The registered user to subscribe to receive notification of changes to the license or registration
of a vacation rental.
Community Associations
The bill provides that the application of vacation rental provisions created by the bill do not supersede
any current or future declaration or declaration of condominium adopted pursuant to ch. 718, F.S.,
cooperative documents adopted pursuant to ch. 719, F.S., or declaration of covenants or declaration
for a homeowners’ association adopted pursuant to ch. 720, F.S.
Effective Date
Except as otherwise expressly provided in the bill, the effective date of the bill is July 1, 2024.
B. SECTION DIRECTORY:
63 Section 125.0104, F.S., relates to the local option tourist development tax.
64 Section 125.0108, F.S., relates to the tourist impact tax in areas within a county designated as an area of critical state concern.
65 Section 205.044, F.S., relates to the merchant business tax measured by gross receipts.
66 Section 212.03, F.S., relates to the transient rentals tax.
67 Section 212.0305, F.S., relates to convention development taxes.
68 Section 212.055, F.S., relates to discretionary sales taxes.
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Section 1: Amends s. 212.03, F.S., relating to transient rentals tax collection and remittance by
advertising platforms.
Section 2: Amends s. 509.013, F.S., defining the term "advertising platform."
Section 3: Amends s. 509.032, F.S., revising preemption authority, making conforming changes.
Section 4: Amends s. 509.241, F.S., revising display of vacation rental license requirements.
Section 5: Creates s. 509.243, F.S., governing advertising platforms.
Section 6: Creates s. 509.244, F.S., relating to vacation rental information system.
Section 7: Amends s. 509.261, F.S., relating to revocation or suspension of licenses, fines,
procedure.
Section 8: Amends s. 159.27, F.S., conforming a cross reference.
Section 9: Amends s. 212.08, F.S., conforming a cross reference.
Section 10: Amends s. 316.1955, F.S., conforming a cross reference.
Section 11 Amends s. 404.056, F.S., conforming a cross reference.
Section 12: Amends s. 477.0135, F.S., conforming a cross reference.
Section 13: Amends s. 509.221, F.S., conforming a cross reference.
Section 14: Amends s. 553.5041, F.S., conforming a cross reference.
Section 15: Amends s. 559.955 conforming a cross reference.
Section 16: Amends s. 561.20, F.S., relating to limitation upon number of licenses issued.
Section 17: Amends s. 705.17, F.S., conforming a cross reference.
Section 18: Amends s. 705.185, F.S., conforming a cross reference.
Section 19: Amends s. 705.1355, F.S., conforming a cross reference.
Section 20: Amends s. 877.24, F.S., conforming a cross reference.
Section 21: Creates an unnumbered section providing for applicability.
Section 22: Creates an unnumbered section authorizing DOR emergency rulemaking authority.
Section 23: Provides for effective dates.
II. FISCAL ANALYSIS & ECONOMIC IMPACT STATEMENT
A. FISCAL IMPACT ON STATE GOVERNMENT:
1. Revenues:
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Indeterminate. According to DBPR, “there is an indeterminate increase in licensing revenue, but it is
unknown how many rental advertisements currently exempt from licensing would require licensure.
The bill may also result in an indeterminate increase in fines due to noncompliance.69
The bill has not been given an estimate by the REC.
2. Expenditures:
According to DBPR, it will incur the following “increase in staff and costs needed to implement the
bill:”70
“Hotels and Restaurants – 4 FTE with a $ 196,279 salary rate and $380,815 budget
authority ($53,645 nonrecurring).
Office of the General Counsel – 2 FTE with a 150,154 salary rate and $244,421 of budget
authority ($16,922 nonrecurring).
Division of Service Operations – 1 FTE with a 46,984 salary rate and $88,158 of budget
authority ($9,040 nonrecurring).
Information Technology – 2 FTE with 120,000 of salary rate and $3,608,507 of budget
authority ($3,269,922 nonrecurring).”
“TOTAL FISCAL IMPACT of $4,318,901 of budget authority ($972,371 recurring and $3,346,529
nonrecurring).”71
FISCAL IMPACT ON LOCAL GOVERNMENTS:
1. Revenues:
Indeterminate. According to DBPR, there is a potential increase in tourism taxes and revenue if
local registration fees are required.72
Allowing local governments to administer and enforce a vacation rental registration program may
create a positive fiscal impact resulting from collection of program fees and fines.
2. Expenditures:
Indeterminate. Allowing local governments to administer and enforce a vacation rental registration
program will create costs to those local governments that choose to participate. However, these
costs may be offset by the revenues generated from the collection of program fees and fines.
B. DIRECT ECONOMIC IMPACT ON PRIVATE SECTOR:
The bill may provide a more predictable and uniform regulatory framework for vacation rentals in
Florida.
C. FISCAL COMMENTS:
None.
III. COMMENTS
A. CONSTITUTIONAL ISSUES:
1. Applicability of Municipality/County Mandates Provision:
69 Florida Department of Business & Professional Regulation, SB 280 Agency Analysis, p. 7 (Dec. 1, 2023).
70 Florida Department of Business & Professional Regulation, SB 280 Agency Analysis, p. 7 (Dec. 1, 2023).
71 Id.
72 Florida Department of Business & Professional Regulation, SB 280 Agency Analysis, p. 6 (Dec. 1, 2023).
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Not applicable. The bill does not appear to require counties or municipalities to take an action
requiring the expenditure of funds, reduce the authority that counties or municipalities have to raise
revenue in the aggregate, nor reduce the percentage of state tax shared with counties or
municipalities.
2. Other:
None.
B. RULE-MAKING AUTHORITY:
The bill provides emergency rulemaking authority for DOR to implement the bill’s provisions.
The Division will need to update its rules based on the provision that authorizes the Division to fine an
advertising platform. Current law appears to provide sufficient rulemaking authority.
C. DRAFTING ISSUES OR OTHER COMMENTS:
None.
IV. AMENDMENTS/ COMMITTEE SUBSTITUTE CHANGES
On February 1, 2024, the Regulatory Reform & Economic Development Subcommittee considered the
bill, adopted one amendment, and reported the bill favorably as a committee substitute. The
amendment:
Required local registration programs to be administered by the tax collector.
Limited local government’s authority to charge a reasonable fee for building and fire code
inspections to $150, and specified the inspectors must be authorized under the State Fire
Marshall standards.
Specified that when a vacation rental registration is accepted, the local government is required
to immediately assign a unique registration number.
Removed the 5 day timeframe that a vacation rental operator is required to provide the vacation
rental registration number to the Division.
Limited any lien for a registration violation to apply only to that specific property; removing the
ability to lien all other property owned by that same owner.
Required any violations that are subject to discipline to be “material” violations; required the
code enforcement board or special magistrate to make such determination; and only allowed
revocation if found to have habitual material violations.
Decreased the related 30, 60, and 90 day suspension timeframes to 15, 30, and 60 days for
material violation during a 60 day, 30 day and 6 month periods; the 60 day suspension only
applies if violations that occur within 6-months of the two prior suspensions.
Specified that registration revocations apply only to a specific vacation rental.
Required immediate and automatic registration reinstatement or renewal upon satisfaction of
the lien.
Allowed registration 6 months after revocation of a registration.
Removed the requirement for advertising platforms to:
o Display the vacation rental local registration number.
o Verify license numbers through the department.
o Use the vacation rental information system to verify the vacation rental license number.
Required advertising platforms to:
o Remove the ability to book an advertisement or listing within 15 days of notification
through the information system of a revocation or suspension.
o Provide to the Division on a quarterly basis, in a manner compatible with the vacation
rental information system, a list of all vacation rentals in the state which are advertised
on its platform, along with the uniform resource locator for the Internet address of the
vacation rental advertisement and the vacation rental license number associated with
the vacation rental.
Removed the requirement that the Division’s vacation rental information system provide a
system interface to allow advertising platforms to verify license and registration information.
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This analysis is drafted to the committee substitute adopted by the Regulatory Reform & Economic
Development Subcommittee.
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F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
CS/HB 1537 2024
1 A bill to be entitled
2 An act relating to vacation rentals; amending s.
3 212.03, F.S.; requiring advertising platforms to
4 collect and remit specified taxes for certain vacation
5 rental transactions; reordering and amending s.
6 509.013, F.S.; defining the term "advertising
7 platform"; making technical changes; amending s.
8 509.032, F.S.; adding licensing to the regulated
9 activities of public lodging establishments and public
10 food service establishments which are preempted to the
11 state; providing applicability; revising an exception
12 to the prohibition against certain local regulation of
13 vacation rentals; providing applicability; preempting
14 the regulation of advertising platforms to the state;
15 authorizing the adoption of local laws, ordinances, or
16 regulations that require the registration of vacation
17 rentals; authorizing local governments to adopt
18 vacation rental registration programs and impose fines
19 for failure to register; requiring such registration
20 programs to be administered by the tax collector;
21 authorizing local governments to charge a specified
22 fee for processing registration applications;
23 authorizing local laws, ordinances, or regulations to
24 require annual renewal of a registration and to charge
25 a fee for such renewal; providing that a change in
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26 ownership may require a new application for
27 registration; authorizing local governments to charge
28 a specified fee to inspect a vacation rental and
29 enforce certain laws and rules for issues pertaining
30 to uniform life safety requirements; specifying
31 requirements and procedures for, and limitations on,
32 local vacation rental registration programs;
33 authorizing local governments to fine vacation rental
34 operators under certain circumstances; specifying
35 procedures related to the imposition of fines;
36 providing applicability relating to certain money
37 judgment provisions; requiring local governments to
38 issue written notices of material violations under
39 certain circumstances; requiring the code enforcement
40 board or special magistrate to make certain
41 recommendations under specified circumstances;
42 authorizing local governments to suspend an owner's
43 vacation rental registration for specified periods of
44 time; prohibiting local governments from suspending an
45 owner's vacation rental registration for violations
46 not directly related to the vacation rental premise s;
47 requiring, within a specified timeframe, local
48 governments to provide notice of registration
49 suspension to vacation rental operators and the
50 Division of Hotels and Restaurants of the Department
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51 of Business and Professional Regulation; providing
52 requirements for such notice; requiring, by a certain
53 date, local governments to use the vacation rental
54 information system to provide such notice to the
55 division; authorizing local governments to revoke or
56 refuse to renew a vacation rental registration of a
57 specific vacation rental under certain circumstances;
58 requiring, within a specified timeframe, local
59 governments to provide notice of termination of or
60 refusal to renew a vacation rental registration to
61 vacation rental operators and the division; requiring,
62 by a certain date, local governments to use the
63 vacation rental information system to provide such
64 notice to the division; providing that vacation rental
65 owners may appeal a denial, suspension, or termination
66 of, or a refusal to renew, a vacation rental
67 registration; providing procedures for such appeal;
68 authorizing a vacation rental owner to apply for
69 registration upon the sale of the vacation rental
70 premises or 6 months after revocation of or refusal to
71 renew the vacation rental registration; providing
72 construction; amending s. 509.241, F.S.; authorizing
73 the division to issue temporary licenses upon receipt
74 of vacation rental license applications while such
75 applications are pending; providing for expiration of
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76 such licenses; requiring that any license issued by
77 the division be conspicuously displayed to the public
78 inside the licensed establishment; requiring that
79 operators of vacation rentals which offer a vacation
80 rental for transient occupancy through an advertising
81 platform also display to the public inside the
82 vacation rental its local registration number, if
83 applicable; requiring licensees or licensed agents
84 managing a license classified as a vacation rental to
85 submit local vacation rental registration numbers, if
86 applicable, to the division through the division's
87 online system; requiring the division to include a
88 unique identifier on each vacation rental license
89 issued which identifies each individual vacation
90 rental dwelling or unit; creating s. 509.243, F.S.;
91 requiring advertising platforms to require that
92 persons placing advertisements or listings for
93 vacation rentals include certain information in the
94 advertisements or listings and attest to certain
95 information; requiring advertising platforms to
96 display certain information; requiring, as of a
97 specified date, advertising platforms to remove the
98 ability to book an advertisement or a listing under
99 certain circumstances and to provide to the division
100 on a quarterly basis, in a specified manner, a list of
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101 all vacation rentals in the state which are advertise d
102 on its platforms, along with other specified
103 information; requiring advertising platforms to
104 collect and remit specified taxes for certain
105 transactions; authorizing the division to issue and
106 deliver a notice to cease and desist for certain
107 violations; providing that such notice does not
108 constitute agency action for which certain hearings
109 may be sought; authorizing the division to issue cease
110 and desist notices in certain circumstances; providing
111 that issuance of such notice does not constitute an
112 agency action; authorizing the division to file
113 certain proceedings for the purpose of enforcing a
114 cease and desist notice; authorizing the division to
115 collect attorney fees and costs under certain
116 circumstances; authorizing the division to impose a
117 fine on advertising platforms for certain violations;
118 requiring the division to issue written notice of
119 violations to advertising platforms before commencing
120 certain legal proceedings; requiring advertising
121 platforms to adopt an antidiscrimination policy and to
122 inform their users of the policy's provisions;
123 providing construction; creating s. 509.244, F.S.;
124 defining the term "application program interface";
125 requiring, by a specified date, the division to create
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126 and maintain a certain vacation rental information
127 system; specifying requirements for the system;
128 amending s. 509.261, F.S.; authorizing the division to
129 revoke, refuse to issue or renew, or suspend vacation
130 rental licenses under certain circumstances; requiring
131 the division to specify the license number of the
132 vacation rental dwelling or unit which has been
133 revoked, not renewed, or suspended; requiring the
134 department to input such status in the vacation rental
135 information system; requiring the division's vacation
136 rental license suspension to run concurrently with a
137 local vacation rental registration suspension;
138 amending ss. 159.27, 212.08, 316.1955, 404.056,
139 477.0135, 509.221, 553.5041, 559.955, 561.20, 705.17,
140 705.185, 717.1355, and 877.24, F.S.; conforming cross -
141 references; providing construction; authorizing the
142 Department of Revenue to adopt emergency rules;
143 providing requirements and an expiration date for such
144 emergency rules; providing for the expiration of such
145 rulemaking authority; providing effective dates.
146
147 Be It Enacted by the Legislature of the State of Florida:
148
149 Section 1. Effective January 1, 2025, subsection (2) of
150 section 212.03, Florida Statutes, is amended to read:
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151 212.03 Transient rentals tax; rate, procedure,
152 enforcement, exemptions.—
153 (2)(a) The tax provided for in this section is herein
154 shall be in addition to the total amount of the rental, must
155 shall be charged by the lessor or person receiving the rent in
156 and by said rental arrangement to the lessee or person paying
157 the rental, and is shall be due and payable at the time of the
158 receipt of such rental payment by the lessor or person, as
159 defined in this chapter, who receives such said rental or
160 payment. The owner, lessor, or person receiving the rent shall
161 remit the tax to the department at the times and in the manner
162 hereinafter provided for dealers to remit taxes under this
163 chapter. The same duties imposed by this chapter upon dealers in
164 tangible personal property respecting the collection and
165 remission of the tax; the making of returns; the keeping of
166 books, records, and accounts; and the compliance with the rules
167 and regulations of the department in the administration of this
168 chapter shall apply to and are be binding upon all persons who
169 manage or operate hotels, apartment houses, roominghouses,
170 tourist and trailer camps, and the rental of condominium units,
171 and to all persons who collect or receive such rents on behalf
172 of such owner or lessor taxable under this chapter.
173 (b) If a guest uses a payment system on or through an
174 advertising platform as defined in s. 509.013 to pay for the
175 rental of a vacation rental located in this state, the
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176 advertising platform must collect and remit taxes as provided in
177 this paragraph.
178 1. An advertising platform that owns, operates, or manages
179 a vacation rental or that is related within the meaning of s.
180 267(b), s. 707(b), or s. 1504 of the Internal Revenue Code of
181 1986, as amended, to a person who owns, operates, or manages the
182 vacation rental shall collect and remit all taxes due under this
183 section and ss. 125.0104, 125.0108, 205.044, 212.0305, and
184 212.055 which are related to the rental.
185 2. An advertising platform to which subparagraph 1. does
186 not apply shall collect and remit all taxes due from the owner,
187 operator, or manager under this section and ss. 125.0104,
188 125.0108, 205.044, 212.0305, and 212.055 which are related to
189 the rental. Of the total amount paid by the lessee or rentee,
190 the amount retained by the advertising platform for reservation
191 or payment services is not taxable under this section or ss.
192 125.0104, 125.0108, 205.044, 212.0305, and 212.055.
193
194 In order to facilitate the remittance of such taxes, the
195 department and counties that have elected to self-administer the
196 taxes imposed under chapter 125 shall allow advertising
197 platforms to register, collect, and remit such taxes.
198 Section 2. Section 509.013, Florida Statutes, is reordered
199 and amended to read:
200 509.013 Definitions.—As used in this chapter, except as
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201 provided in subsection (14), the term:
202 (1) "Advertising platform" means a person as defined in s.
203 1.01(3) which:
204 (a) Provides an online application, software, a website,
205 or a system through which a vacation rental located in this
206 state is advertised or held out to the public as available to
207 rent for transient occupancy;
208 (b) Provides or maintains a marketplace for the rentin g of
209 a vacation rental for transient occupancy; and
210 (c) Provides a reservation or payment system that
211 facilitates a transaction for the renting of a vacation rental
212 for transient occupancy and for which the person collects or
213 receives, directly or indirectly, a fee in connection with the
214 reservation or payment service provided for the rental
215 transaction.
216 (3)(1) "Division" means the Division of Hotels and
217 Restaurants of the Department of Business and Professional
218 Regulation.
219 (8)(2) "Operator" means the owner, licensee, proprietor,
220 lessee, manager, assistant manager, or appointed agent of a
221 public lodging establishment or public food service
222 establishment.
223 (4)(3) "Guest" means any patron, customer, tenant, lodger,
224 boarder, or occupant of a public lodging establishment or public
225 food service establishment.
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226 (10)(a)(4)(a) "Public lodging establishment" includes a
227 transient public lodging establishment as defined in
228 subparagraph 2 1. and a nontransient public lodging
229 establishment as defined in subparagraph 1 2.
230 2.1. "Transient public lodging establishment" means any
231 unit, group of units, dwelling, building, or group of buildings
232 within a single complex of buildings which is rented to guests
233 more than three times in a calendar year for periods of less
234 than 30 days or 1 calendar month, whichever is less, or which is
235 advertised or held out to the public as a place regularly rented
236 to guests.
237 1.2. "Nontransient public lodging establishment" means any
238 unit, group of units, dwelling, building, or group of buildings
239 within a single complex of buildings which is rented to guests
240 for periods of at least 30 days or 1 calendar month, whichever
241 is less, or which is advertised or held out to the public as a
242 place regularly rented to guests for periods of at le ast 30 days
243 or 1 calendar month.
244
245 License classifications of public lodging establishments, and
246 the definitions therefor, are as provided set out in s. 509.242.
247 For the purpose of licensure, the term does not include
248 condominium common elements as defined in s. 718.103.
249 (b) The following are not considered public lodging
250 establishments excluded from the definitions in paragraph (a):
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251 1. Any dormitory or other living or sleeping facility
252 maintained by a public or private school, college, or university
253 for the use of students, faculty, or visitors.
254 2. Any facility certified or licensed and regulated by the
255 Agency for Health Care Administration or the Department of
256 Children and Families or other similar place regulated under s.
257 381.0072.
258 3. Any place renting four rental units or less, unless the
259 rental units are advertised or held out to the public to be
260 places that are regularly rented to transients.
261 4. Any unit or group of units in a condominium,
262 cooperative, or timeshare plan and any individually or
263 collectively owned one-family, two-family, three-family, or
264 four-family dwelling house or dwelling unit that is rented for
265 periods of at least 30 days or 1 calendar month, whichever is
266 less, and that is not advertised or held out to the public as a
267 place regularly rented for periods of less than 1 calendar
268 month, provided that no more than four rental units within a
269 single complex of buildings are available for rent.
270 5. Any migrant labor camp or residential migrant housing
271 permitted by the Department of Health under ss. 381.008-
272 381.00895.
273 6. Any establishment inspected by the Department of Health
274 and regulated by chapter 513.
275 7. A facility operated by a nonprofit which provides Any
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276 nonprofit organization that operates a facility providing
277 housing only to patients, patients' families, and patients'
278 caregivers and not to the general public.
279 8. Any apartment building inspected by the United States
280 Department of Housing and Urban Development or other entity
281 acting on the department's behalf which that is designated
282 primarily as housing for persons at least 62 years of age. The
283 division may require the operator of the apartment building to
284 attest in writing that such building meets the criteria provided
285 in this subparagraph. The division may adopt rules to implement
286 this requirement.
287 9. Any roominghouse, boardinghouse, or other living or
288 sleeping facility that may not be classified as a hotel, motel,
289 timeshare project, vacation rental, nontransient apartment, bed
290 and breakfast inn, or transient apartment under s. 509.242.
291 (9)(a)(5)(a) "Public food service establishment" means any
292 building, vehicle, place, or structure, or any room or division
293 in a building, vehicle, place, or structure where food is
294 prepared, served, or sold for immediate consumption on or in the
295 vicinity of the premises; called for or taken out by customers;
296 or prepared before prior to being delivered to another location
297 for consumption. The term includes a culinary education program,
298 as defined in s. 381.0072(2), which offers, prepares, serves, or
299 sells food to the general public, regardless of whether it is
300 inspected by another state agency for compliance with sanitation
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301 standards.
302 (b) The following are not considered public food service
303 establishments excluded from the definition in paragraph (a):
304 1. Any place maintained and operated by a public or
305 private school, college, or university:
306 a. For the use of students and faculty; or
307 b. Temporarily, to serve such events as fairs, carnivals,
308 food contests, cook-offs, and athletic contests.
309 2. Any eating place maintained and operated by a church or
310 a religious, nonprofit fraternal, or nonprofit civic
311 organization:
312 a. For the use of members and associates; or
313 b. Temporarily, to serve such events as fairs, carnivals,
314 food contests, cook-offs, or athletic contests.
315
316 Upon request by the division, a church or a religious, nonprofit
317 fraternal, or nonprofit civic organization claiming an exclusion
318 under this subparagraph must provide the division documentation
319 of its status as a church or a religious, nonprofit fraternal,
320 or nonprofit civic organization.
321 3. Any eating place maintained and operated by an
322 individual or entity at a food contest, cook-off, or a temporary
323 event lasting from 1 to 3 days which is hosted by a church or a
324 religious, nonprofit fraternal, or nonprofit civic organization.
325 Upon request by the division, the event host must provide the
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326 division documentation of its status as a church or a religious,
327 nonprofit fraternal, or nonprofit civic organization.
328 4. Any eating place located on an airplane, train, bus, or
329 watercraft that which is a common carrier.
330 5. Any eating place maintained by a facility certified or
331 licensed and regulated by the Agency for Health Care
332 Administration or the Department of Children and Families or
333 other similar place that is regulated under s. 381.0072.
334 6. Any place of business issued a permit or inspected by
335 the Department of Agriculture and Consumer Services under s.
336 500.12.
337 7. Any place of business where the food available for
338 consumption is limited to ice, beverages with or without
339 garnishment, popcorn, or prepackaged items sold without
340 additions or preparation.
341 8. Any theater, if the primary use is as a theater and if
342 patron service is limited to food items customarily served to
343 the admittees of theaters.
344 9. Any vending machine that dispenses any food or
345 beverages other than potentially hazardous foods, as defined by
346 division rule.
347 10. Any vending machine that dispenses potentially
348 hazardous foods food and which is located in a facility
349 regulated under s. 381.0072.
350 11. Any research and development test kitchen limited to
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351 the use of employees and which is not open to the general
352 public.
353 (2)(6) "Director" means the Director of the Division of
354 Hotels and Restaurants of the Department of Business and
355 Professional Regulation.
356 (11)(7) "Single complex of buildings" means all buildings
357 or structures that are owned, managed, controlled, or operated
358 under one business name and are situated on the same tract or
359 plot of land that is not separated by a public street or
360 highway.
361 (12)(8) "Temporary food service event" means any event of
362 30 days or less in duration where food is prepared, served, or
363 sold to the general public.
364 (13)(9) "Theme park or entertainment complex" means a
365 complex comprised of at least 25 contiguous acres owned and
366 controlled by the same business entity and which contains
367 permanent exhibitions and a variety of recreational activities
368 and has a minimum of 1 million visitors annually.
369 (14)(10) "Third-party provider" means, for purposes of s.
370 509.049, any provider of an approved food safety training
371 program that provides training or such a training program to a
372 public food service establishment that is not under common
373 ownership or control with the provider.
374 (16)(11) "Transient establishment" means any public
375 lodging establishment that is rented or leased to guests by an
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376 operator whose intention is that such guests' occupancy will be
377 temporary.
378 (17)(12) "Transient occupancy" means occupancy when it is
379 the intention of the parties that the occupancy will be
380 temporary. There is a rebuttable presumption that, when the
381 dwelling unit occupied is not the sole residence of the guest,
382 the occupancy is transient.
383 (15)(13) "Transient" means a guest in transient occupancy.
384 (6)(14) "Nontransient establishment" means any public
385 lodging establishment that is rented or leased to guests by an
386 operator whose intention is that the dwelling unit occupied will
387 be the sole residence of the guest.
388 (7)(15) "Nontransient occupancy" means occupancy when it
389 is the intention of the parties that the occupancy will not be
390 temporary. There is a rebuttable presumption that, when the
391 dwelling unit occupied is the sole residence of the guest, the
392 occupancy is nontransient.
393 (5)(16) "Nontransient" means a guest in nontransient
394 occupancy.
395 Section 3. Paragraph (c) of subsection (3) and subsection
396 (7) of section 509.032, Florida Statutes, are amended, and
397 subsection (8) is added to that section, to read:
398 509.032 Duties.—
399 (3) SANITARY STANDARDS; EMERGENCIES; TEMPORARY FOOD
400 SERVICE EVENTS.—The division shall:
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401 (c) Administer a public notification process for temporary
402 food service events and distribute educational materials that
403 address safe food storage, preparation, and service procedures.
404 1. Sponsors of temporary food service events shall notify
405 the division not less than 3 days before the scheduled event of
406 the type of food service proposed, the time and location of the
407 event, a complete list of food service vendors participating in
408 the event, the number of individual food service facilities each
409 vendor will operate at the event, and the identification number
410 of each food service vendor's current license as a public food
411 service establishment or temporary food service event licensee.
412 Notification may be completed orally, by telephone, in person,
413 or in writing. A public food service establishment or food
414 service vendor may not use this notification process to
415 circumvent the license requirements of this chapter.
416 2. The division shall keep a record of all notifications
417 received for proposed temporary food service events and shall
418 provide appropriate educational materials to the event sponsors
419 and notify the event sponsors of the availability of the food -
420 recovery brochure developed under s. 595.420.
421 3.a. Unless excluded under s. 509.013(5)(b), A public food
422 service establishment or other food service vendor must obtain
423 one of the following classes of license from the division: an
424 individual license, for a fee of no more than $105, for each
425 temporary food service event in which it participates; or an
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426 annual license, for a fee of no more than $1,000, which that
427 entitles the licensee to participate in an unlimited number of
428 food service events during the license period. The division
429 shall establish license fees, by rule, and may limit the number
430 of food service facilities a licensee may operate at a
431 particular temporary food service event under a single license.
432 b. Public food service establishments holding current
433 licenses from the division may operate under the regulations of
434 such a license at temporary food service events.
435 (7) PREEMPTION AUTHORITY.—
436 (a) The regulation of public lodging establishments and
437 public food service establishments, including, but not limited
438 to, sanitation standards, licensing, inspections, training and
439 testing of personnel, and matters related to the nutritional
440 content and marketing of foods offered in such establishments,
441 is preempted to the state. This paragraph does not preempt the
442 authority of a local government or local enforcement district to
443 conduct inspections of public lodging and public food service
444 establishments for compliance with the Florida Building Code and
445 the Florida Fire Prevention Code, pursuant to ss. 553.80 and
446 633.206.
447 (b) A local law, ordinance, or regulation may not prohibit
448 vacation rentals or regulate the duration or frequency of rental
449 of vacation rentals. This paragraph does not apply to any local
450 law, ordinance, or regulation adopted on or before June 1, 2011 ,
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451 including such a law, ordinance, or regulation that is amended
452 to be less restrictive or to comply with the local registration
453 requirements provided in subsection (8), or when a law,
454 ordinance, or regulation adopted after June 1, 2011, regulates
455 vacation rentals, if such law, ordinance, or regulation is less
456 restrictive than a law, ordinance, or regulation that was in
457 effect on June 1, 2011.
458 (c) Paragraph (b) and subsection (8) do does not apply to
459 any local law, ordinance, or regulation exclusively relating to
460 property valuation as a criterion for vacation rental if the
461 local law, ordinance, or regulation is required to be approved
462 by the state land planning agency pursuant to an area of
463 critical state concern designation.
464 (d) The regulation of advertising platforms is preempted
465 to the state.
466 (8) LOCAL REGISTRATION OF VACATION RENTALS; SUSPENSION;
467 REVOCATIONS; FINES.—Notwithstanding paragraph (7)(a), a local
468 law, ordinance, or regulation may require the registration of
469 vacation rentals with a local vacation rental registration
470 program. Local governments may implement a vacation rental
471 registration program pursuant to this subsection and may impose
472 a fine for failure to register under the local program. Any such
473 registration program implemented by a local government shall be
474 administered by the tax collector.
475 (a) A local government may charge a fee of no more than
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476 $150 per unit for processing a registration application. A local
477 law, ordinance, or regulation may require annual renewal of a
478 registration and may charge a renewal fee of no mor e than $50
479 per unit for processing of a registration renewal. However, if
480 there is a change of ownership, the new owner may be required to
481 submit a new application for registration. Subsequent to the
482 registration of a vacation rental, a local government ma y charge
483 a fee, not to exceed $150, for a person authorized by s. 633.118
484 to inspect the vacation rental and enforce the laws and rules of
485 the State Fire Marshall for issues pertaining to the uniform
486 firesafety standards.
487 (b) As a condition of registration or renewal of a
488 vacation rental, a local law, ordinance, or regulation
489 establishing a local vacation rental registration program may
490 require the operator of a vacation rental to do only the
491 following:
492 1. Submit identifying information about the owner and the
493 owner's operator, if applicable, and the subject vacation rental
494 premises.
495 2. Provide proof of a license with the unique identifier
496 issued by the division to operate as a vacation rental.
497 3. Obtain all required tax registrations, receipts, or
498 certificates issued by the Department of Revenue, a county, or a
499 municipality.
500 4. Update required information on a continuing basis to
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501 ensure it is current.
502 5. Designate and maintain at all times a responsible party
503 who is capable of responding to complaints or emergencies
504 related to the vacation rental, including being available by
505 telephone at a provided contact telephone number 24 hours a day,
506 7 days a week, and receiving legal notice of violations on
507 behalf of the operator. The responsible party has until 9 a.m.
508 the next calendar day to respond to a complaint or emergency by
509 telephone or otherwise.
510 6. State the maximum occupancy of the vacation rental
511 based on the number of sleeping accommodations for persons
512 staying overnight in the vacation rental.
513 7. Pay in full all recorded municipal or county code liens
514 against the subject vacation rental premises.
515 (c) Within 15 business days after receiving an application
516 for registration of a vacation rental, a local government must
517 review the application for completeness and accept the
518 registration of the vacation rental or issue a written notice of
519 denial.
520 1. The vacation rental operator and the local government
521 may agree to a reasonable request to extend the timeframes
522 provided in this paragraph, particularly in the event of a force
523 majeure or other extraordinary circumstance.
524 2. If a local government fails to accept or deny the
525 registration within the timeframes provided in this paragraph,
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526 the application is deemed accepted.
527 (d) If a local government denies a registration of a
528 vacation rental, the local government must give written notice
529 to the applicant. Such notice may be provided by United States
530 mail or electronically. The notice must specify with
531 particularity the factual reasons for the denial and include a
532 citation to the applicable portions of the ordinance, rule,
533 statute, or other legal authority for the denial of the
534 registration. A local government may not prohibit an applicant
535 from reapplying if the applicant cures the identified
536 deficiencies.
537 (e)1. Upon an accepted vacation rental registration, a
538 local government shall immediately assign a unique registration
539 number to the vacation rental unit and provide the registration
540 number or other indicia of registration to the vacation rental
541 operator in writing or electronically.
542 2. The vacation rental operator must provide the vacation
543 rental registration number to the division.
544 (f) A local government may fine a vacation rental operator
545 up to $300 if he or she:
546 1. Fails to continue to meet the registration requirements
547 in paragraph (b); or
548 2. Is operating a vacation rental without registering with
549 the local government as a vacation rental.
550 (g) A certified copy of an order imposing a fine may be
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551 recorded in the public records and thereafter constitutes a lien
552 against the real property on which the violation exists. Upon
553 petition to the circuit court, such order is enforceable in the
554 same manner as a court judgment by the sheriffs of this state,
555 including execution and levy against the personal property of
556 the violator, but such order may not be deemed to be a court
557 judgment except for enforcement purposes. A fine imposed
558 pursuant to this subsection shall continue to accrue until the
559 violator comes into compliance or until judgment is ren dered in
560 a suit filed pursuant to this section, whichever occurs first. A
561 lien arising from a fine imposed pursuant to this subsection
562 runs in favor of the local government, and the local government
563 may execute a satisfaction or release of lien. Three months or
564 more after the filing of any such lien that remains unpaid, the
565 local government may foreclose on the lien against the real
566 property on which the violation exists or sue to recover a money
567 judgment for the amount of the lien, plus accrued interest. A
568 lien created pursuant to this part may not be foreclosed on real
569 property that is a homestead under s. 4, Art. X of the State
570 Constitution. The money judgment provisions of this section do
571 not apply to real property or personal property that is covered
572 under s. 4(a), Art. X of the State Constitution.
573 (h)1. If a vacation rental owner is found by the code
574 enforcement board or special magistrate to have materially
575 violated a local law, ordinance, or regulation that does not
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576 solely apply to vacation rentals and the violation is directly
577 related to the owner's vacation rental premises, the local
578 government must issue a written notice of such violation.
579 2. If the owner is found to have materially violated a
580 local law, ordinance, or regulation as described in subparagraph
581 1., the code enforcement board or special magistrate must make a
582 recommendation to the local government as to whether an owner's
583 vacation rental registration should be suspended.
584 3. The code enforcement board or special magistrate must
585 recommend the suspension of the owner's vacation rental
586 registration if the owner is found to have:
587 a. One or more material violations on 5 separate days
588 during a 60-day period;
589 b. One or more material violations on 5 separate days
590 during a 30-day period; or
591 c. One or more material violations after two prior
592 suspensions of an owner's vacation rental registration during a
593 6-month period.
594 4. If the code enforcement board or special magistrate
595 recommends suspension of an owner's vacation rental
596 registration, a local government may suspend such registration
597 for a period of:
598 a. Up to 15 days for one or more material violations on 5
599 separate days during a 60-day period;
600 b. Up to 30 days for one or more material violations on 5
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601 separate days during a 30-day period; or
602 c. Up to 60 days for one or more material violations after
603 two prior suspensions of an owner's vacation rental registration
604 during a 6-month period.
605 5. A local government may not suspend an owner's vacation
606 rental registration for violations of a local law, ordinance, or
607 regulation which are not directly related to the vacation rental
608 premises.
609 6. A local government must provide notice of the
610 suspension of a vacation rental registration to the operator and
611 the division within 5 days after the suspension. The notice must
612 include the start date of the suspension, which must be at least
613 21 days after the suspension notice is sent to the operator and
614 the division. Effective January 1, 2026, a local government must
615 use the vacation rental information system described in s.
616 509.244 to provide notice of the suspension of a vacation rental
617 registration to the division.
618 (i)1. A local government may revoke or refuse to renew a
619 vacation rental registration of a specific vacation rental if:
620 a. The code enforcement board or special magistrate has
621 found that the vacation rental owner has habitually committed
622 material violations pursuant to paragraph (h) and has imposed
623 the strictest penalty thereunder;
624 b. There is an unsatisfied recorded municipal lien or
625 county lien on the real property of the vacation rental;
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626 however, the local government must allow the vacation rental
627 owner at least 60 days before the termination of a registration
628 to satisfy the recorded municipal lien or county lien and must
629 immediately and automatically reinstate or renew the
630 registration upon satisfaction of such lien; or
631 c. The vacation rental premises and its owner are the
632 subject of a final order or judgment by a court of competent
633 jurisdiction lawfully directing the termination of the premises'
634 use as a vacation rental.
635 2. A local government must provide notice of the
636 termination of or refusal to renew a vacation rental
637 registration to the operator and the division within 5 days
638 after the termination or refusal to renew. The notice must
639 include the date of termination or nonrenewal, which must be at
640 least 21 days after the notice is sent to the operator and the
641 division. Effective January 1, 2026, a local government must use
642 the vacation rental information system as established in s.
643 509.244 to provide notice of the termination of or refusal to
644 renew a vacation rental registration to the division.
645 (j) A vacation rental owner may appeal a denial,
646 suspension, or termination of a vacation rental registration, or
647 a refusal to renew such registration, to the circuit court. An
648 appeal must be filed within 30 days after the issuance of the
649 denial, suspension, or termination of, or refusal to renew, the
650 vacation rental registration. The court may assess and award
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651 reasonable attorney fees and costs and damages to a vacation
652 rental owner.
653 (k) A vacation rental owner may apply for registration
654 upon the sale of the vacation rental premises to a new owner or
655 6 months after revocation of or refusal to renew the vacation
656 rental registration pursuant to paragraph (i).
657
658 This subsection does not prohibit a local government from
659 establishing a local law, ordinance, or regulation if it is
660 uniformly applied without regard to whether the residential
661 property is used as a vacation rental.
662 Section 4. Effective January 1, 2025, present paragraph
663 (c) of subsection (4) of section 509.241, Florida Statutes, is
664 redesignated as paragraph (d), a new paragraph (c) is added to
665 that subsection, subsection (5) is added to that section, and
666 subsections (2) and (3) of that section are amended, to read:
667 509.241 Licenses required; exceptions; division online
668 accounts and transactions.—
669 (2) APPLICATION FOR LICENSE.—Each person who plans to open
670 a public lodging establishment or a public food servi ce
671 establishment shall apply for and receive a license from the
672 division before prior to the commencement of operation. A
673 condominium association, as defined in s. 718.103, which does
674 not own any units classified as vacation rentals or timeshare
675 projects under s. 509.242(1)(c) or (g) is not required to apply
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676 for or receive a public lodging establishment license. Upon
677 receiving an application for a vacation rental license, the
678 division may grant a temporary license that authorizes the
679 vacation rental to begin operation while the application is
680 pending. The temporary license automatically expires upon final
681 agency action regarding the license application.
682 (3) DISPLAY OF LICENSE.—A Any license issued by the
683 division must shall be conspicuously displayed to the public
684 inside in the office or lobby of the licensed establishment.
685 Public food service establishments that which offer catering
686 services must shall display their license number on all
687 advertising for catering services. The operator of a vacation
688 rental offered for transient occupancy through an advertising
689 platform must also conspicuously display the vacation rental's
690 local registration number, if applicable.
691 (4) ONLINE ACCOUNT AND TRANSACTIONS.—Each person who plans
692 to open a public lodging establishment or a public food service
693 establishment and each licensee or licensed agent must create
694 and maintain a division online account and provide an e -mail
695 address to the division to function as the primary contact for
696 all communication from the division.
697 (c) Each licensee or licensed agent managing a license
698 classified as a vacation rental as defined in s. 509.242(1)(c)
699 must submit to the division, through the division's online
700 system, any applicable local vacation rental registration
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701 number.
702 (5) UNIQUE IDENTIFIER.—The division shall include a unique
703 identifier on each vacation rental license it issues which
704 identifies each individual vacation rental dwelling or unit.
705 Section 5. Effective January 1, 2025, section 509.243,
706 Florida Statutes, is created to read:
707 509.243 Advertising platforms.—
708 (1) An advertising platform shall require that a person
709 who places an advertisement or listing for a vacation rental
710 which offers it for rent do all of the following:
711 (a) Include in the advertisement or listing the vacation
712 rental license number with the associated unique identifier and,
713 if applicable, the local registration number.
714 (b) Attest to the best of the person's knowledge that the
715 vacation rental's license and, if applicable, its local
716 registration are current and valid and that all related
717 information is accurately stated in the advertisement.
718 (2) An advertising platform shall display the vacation
719 rental license number with the associated unique identifier.
720 (3) Effective January 1, 2026, an advertising platform
721 shall:
722 (a) Remove the ability to book an advertisement or a
723 listing from its online application, software, website, or
724 system within 15 business days after notification through the
725 vacation rental information system as established in s. 509.244
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726 that a vacation rental license or, if applicable, a local
727 registration:
728 1. Has been suspended, revoked, or not renewed; or
729 2. Fails to display a valid vacation rental license number
730 with the associated unique identifier, or, if applicable, a
731 local registration number.
732 (b) Provide to the division on a quarterly basis, in a
733 manner compatible with the vacation rental information system as
734 established in s. 509.244, a list of all vacation rentals in the
735 state which are advertised on its platform, along with the
736 uniform resource locator for the Internet address of the
737 vacation rental advertisement and the vacation rental license
738 number associated with the vacation rental.
739 (4) If a guest uses a payment system on or through an
740 advertising platform to pay for the rental of a vacation rental
741 located in this state, the advertising platform must collect and
742 remit all taxes due under ss. 125.0104, 125.0108, 205.044,
743 212.03, 212.0305, and 212.055 related to the rental as provided
744 in s. 212.03(2)(b).
745 (5) If the division has probable cause to believe that a
746 person not licensed by the division has violated this chapter or
747 any rule adopted pursuant thereto, the division may issue and
748 deliver to such person a notice to cease and desist from the
749 violation. The issuance of a notice to cease and desist does not
750 constitute agency action for which a hearing under s. 120.569 or
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751 s. 120.57 may be sought. For the purpose of enforcing a cease
752 and desist notice, the division may file a proceeding in the
753 name of the state seeking the issuance of an injunction or a
754 writ of mandamus against any person who violates any provision
755 of the notice. If the division is required to seek enforcement
756 of the notice for a penalty pursuant to s. 120.69, it is
757 entitled to collect attorney fees and costs, together with any
758 cost of collection.
759 (6) The division may fine an advertising platform an
760 amount not to exceed $1,000 per offense for each violation of
761 this section or of division rule. For the purposes of this
762 subsection, the division may regard as a separate offense each
763 day or portion of a day in which an advertising platform is
764 operated in violation of this section or rules of the division.
765 The division shall issue to the advertising platform a written
766 notice of any violation and provide it 15 days to cure the
767 violation before commencing any legal proceeding under
768 subsection (5).
769 (7) An advertising platform shall adopt an
770 antidiscrimination policy to help prevent discrimination by its
771 users and shall inform all users that it is illegal to refuse
772 accommodation to an individual based on race, creed, color, sex,
773 pregnancy, physical disability, or national origin, as provided
774 in s. 509.092.
775 (8) This section does not create a private cause of action
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776 against advertising platforms. An advertising platform may not
777 be held liable for any action that it takes voluntarily and in
778 good faith in relation to its users in compliance with this
779 chapter or the advertising platform's terms of service.
780 Section 6. Section 509.244, Florida Statutes, is created
781 to read:
782 509.244 Vacation rental information system.—
783 (1) As used in this section, the term "application program
784 interface" means a predefined protocol for reading or writing
785 data across a network using a file system or a database.
786 (2) By July 1, 2025, the division shall create and
787 maintain a vacation rental information system readily accessible
788 through an application program interface. At a minimum, the
789 system must do all of the following:
790 (a) Facilitate prompt compliance with this chapter by a
791 licensee or an advertising platform.
792 (b) Allow local government users to notify the division of
793 a termination or failure to renew, or the period of suspension
794 of, a local registration, if applicable.
795 (c) Provide a system interface to allow local governments
796 to verify the status of a vacation rental, if applicable.
797 (d) Allow a registered user to subscribe to receive
798 automated notifications of changes to the license and
799 registration status of a vacation rental, including any license
800 revocation, local registration termination, period of suspension
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801 imposed by the division or local government, or failure to renew
802 a license or local registration.
803 Section 7. Subsection (11) is added to section 509.261,
804 Florida Statutes, to read:
805 509.261 Revocation or suspension of licenses; fines;
806 procedure.—
807 (11)(a) The division may revoke, refuse to issue or renew,
808 or suspend for a period of not more than 30 days a license of a
809 vacation rental for any of the following reasons:
810 1. Operation of the subject premises violates the terms of
811 an applicable lease or property restriction, including any
812 property restriction adopted pursuant to chapter 718, chapter
813 719, or chapter 720, as determined by a final order of a court
814 of competent jurisdiction or a written decision by an arbitrator
815 authorized to arbitrate a dispute relating to the subject
816 premises and a lease or property restriction.
817 2. Local registration of the vacation rental is suspended
818 or revoked by a local government as provided in s. 509.032(8).
819 3. The premises and its owner are the subject of a final
820 order or judgment lawfully directing the termination of the
821 premises' use as a vacation rental.
822 (b) The division must specify the license number with the
823 associated unique identifier of the vacation rental dwelling or
824 unit which has been revoked, not renewed, or suspended and input
825 such status in the vacation rental information system described
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826 in s. 509.244.
827 (c) If the division suspends a license for the reason
828 specified in subparagraph (a)2., the suspension must run
829 concurrently with the local registration suspension.
830 Section 8. Subsection (12) of section 159.27, Florida
831 Statutes, is amended to read:
832 159.27 Definitions.—The following words and terms, unless
833 the context clearly indicates a different meaning, shall have
834 the following meanings:
835 (12) "Public lodging or restaurant facility" means
836 property used for any public lodging establishment as defined in
837 s. 509.242 or public food service establishment as defined in s.
838 509.013 s. 509.013(5) if it is part of the complex of, or
839 necessary to, another facility qualifying under this part.
840 Section 9. Paragraph (jj) of subsection (7) of section
841 212.08, Florida Statutes, is amended to read:
842 212.08 Sales, rental, use, consumption, distribution, and
843 storage tax; specified exemptions.—The sale at retail, the
844 rental, the use, the consumption, the distribution, and the
845 storage to be used or consumed in this state of the following
846 are hereby specifically exempt from the tax imposed by this
847 chapter.
848 (7) MISCELLANEOUS EXEMPTIONS.—Exemptions provided to any
849 entity by this chapter do not inure to any transaction that is
850 otherwise taxable under this chapter when payment is made by a
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851 representative or employee of the entity by any means,
852 including, but not limited to, cash, check, or credit card, even
853 when that representative or employee is subsequently reimbursed
854 by the entity. In addition, exemptions provided to any entity by
855 this subsection do not inure to any transaction that is
856 otherwise taxable under this chapter unless the entity has
857 obtained a sales tax exemption certificate from the department
858 or the entity obtains or provides other documentation as
859 required by the department. Eligible purchases or leases made
860 with such a certificate must be in strict compliance with this
861 subsection and departmental rules, and any person who makes an
862 exempt purchase with a certificate that is not in strict
863 compliance with this subsection and the rules is liable for and
864 shall pay the tax. The department may adopt rules to administer
865 this subsection.
866 (jj) Complimentary meals.—Also exempt from the tax imposed
867 by this chapter are food or drinks that are furnished as part of
868 a packaged room rate by any person offering for rent or lease
869 any transient public lodging establishments living
870 accommodations as described in s. 509.013(10)(a) s.
871 509.013(4)(a) which are licensed under part I of chapter 509 and
872 which are subject to the tax under s. 212.03, if a separate
873 charge or specific amount for the food or drinks is not shown.
874 Such food or drinks are considered to be sold at retail as part
875 of the total charge for the transient living accommodations.
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876 Moreover, the person offering the accommodations is not
877 considered to be the consumer of items purchased in furnishing
878 such food or drinks and may purchase those items under
879 conditions of a sale for resale.
880 Section 10. Paragraph (b) of subsection (4) of section
881 316.1955, Florida Statutes, is amended to read:
882 316.1955 Enforcement of parking requirements for persons
883 who have disabilities.—
884 (4)
885 (b) Notwithstanding paragraph (a), a theme park or an
886 entertainment complex as defined in s. 509.013 s. 509.013(9)
887 which provides parking in designated areas for persons who have
888 disabilities may allow any vehicle that is transporting a person
889 who has a disability to remain parked in a space reserved for
890 persons who have disabilities throughout the period the theme
891 park is open to the public for that day.
892 Section 11. Subsection (5) of section 404.056, Florida
893 Statutes, is amended to read:
894 404.056 Environmental radiation standards and projects;
895 certification of persons performing measurement or mitigation
896 services; mandatory testing; notification on real estate
897 documents; rules.—
898 (5) NOTIFICATION ON REAL ESTATE DOCUMENTS.—Notification
899 shall be provided on at least one document, form, or application
900 executed at the time of, or before prior to, contract for sale
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901 and purchase of any building or execution of a rental agreement
902 for any building. Such notification must shall contain the
903 following language:
904
905 "RADON GAS: Radon is a naturally occurring radioactive gas
906 that, when it has accumulated in a building in sufficient
907 quantities, may present health risks to persons who are exposed
908 to it over time. Levels of radon that exceed federa l and state
909 guidelines have been found in buildings in Florida. Additional
910 information regarding radon and radon testing may be obtained
911 from your county health department."
912
913 The requirements of this subsection do not apply to any
914 residential transient occupancy, as described in s. 509.013 s.
915 509.013(12), provided that such occupancy is 45 days or less in
916 duration.
917 Section 12. Subsection (6) of section 477.0135, Florida
918 Statutes, is amended to read:
919 477.0135 Exemptions.—
920 (6) A license is not required of any individual providing
921 makeup or special effects services in a theme park or
922 entertainment complex to an actor, stunt person, musician,
923 extra, or other talent, or providing makeup or special effects
924 services to the general public. The term "theme park or
925 entertainment complex" has the same meaning as in s. 509.013 s.
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926 509.013(9).
927 Section 13. Paragraph (b) of subsection (2) of section
928 509.221, Florida Statutes, is amended to read:
929 509.221 Sanitary regulations.—
930 (2)
931 (b) Within a theme park or entertainment complex as
932 defined in s. 509.013 s. 509.013(9), the bathrooms are not
933 required to be in the same building as the public food service
934 establishment, so long as they are reasonably accessible.
935 Section 14. Paragraph (b) of subsection (5) of section
936 553.5041, Florida Statutes, is amended to read:
937 553.5041 Parking spaces for persons who have
938 disabilities.—
939 (5) Accessible perpendicular and diagonal accessible
940 parking spaces and loading zones must be designed and located to
941 conform to ss. 502 and 503 of the standards.
942 (b) If there are multiple entrances or multiple retail
943 stores, the parking spaces must be dispersed to provide parking
944 at the nearest accessible entrance. If a theme park or an
945 entertainment complex as defined in s. 509.013 s. 509.013(9)
946 provides parking in several lots or areas from which access to
947 the theme park or entertainment complex is provided, a single
948 lot or area may be designated for parking by persons who have
949 disabilities, if the lot or area is located on the shortest
950 accessible route to an accessible entrance to the theme park or
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951 entertainment complex or to transportation to such an accessible
952 entrance.
953 Section 15. Paragraph (b) of subsection (5) of section
954 559.955, Florida Statutes, is amended to read:
955 559.955 Home-based businesses; local government
956 restrictions.—
957 (5) The application of this section does not supersede:
958 (b) Local laws, ordinances, or regulations related to
959 transient public lodging establishments, as defined in s.
960 509.013(10)(a)2. which s. 509.013(4)(a)1., that are not
961 otherwise preempted under chapter 509.
962 Section 16. Paragraph (d) of subsection (7) of section
963 561.20, Florida Statutes, is amended to read:
964 561.20 Limitation upon number of licenses issued. —
965 (7)
966 (d) Any corporation, partnership, or individual operating
967 a club which owns or leases and which maintains any bona fide
968 beach or cabana club consisting of beach facilities, swimming
969 pool, locker rooms or bathroom facilities for at least 100
970 persons, and a public food service establishment as defined in
971 s. 509.013 s. 509.013(5)(a), comprising in all an area of at
972 least 5,000 square feet located on a contiguous tract of land of
973 in excess of 1 acre may be issued a license under s. 565.02(4).
974 The failure of such club to maintain the facilities shall be a
975 ground for revocation of the license.
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976 Section 17. Subsection (2) of section 705.17, Florida
977 Statutes, is amended to read:
978 705.17 Exceptions.—
979 (2) Sections 705.1015-705.106 do not apply to any personal
980 property lost or abandoned on premises located within a theme
981 park or entertainment complex, as defined in s. 509.013 s.
982 509.013(9), or operated as a zoo, a museum, or an aquarium, or
983 on the premises of a public food service establishment or a
984 public lodging establishment licensed under part I of chapter
985 509, if the owner or operator of such premises elects to comply
986 with s. 705.185.
987 Section 18. Section 705.185, Florida Statutes, is amended
988 to read:
989 705.185 Disposal of personal property lost or abandoned on
990 the premises of certain facilities.—When any lost or abandoned
991 personal property is found on premises located within a theme
992 park or entertainment complex, as defined in s. 509.013 s.
993 509.013(9), or operated as a zoo, a museum, or an aquarium, or
994 on the premises of a public food service establishment or a
995 public lodging establishment licensed under part I of chapter
996 509, if the owner or operator of such premises elects to comply
997 with this section, any lost or abandoned property must be
998 delivered to such owner or operator, who must take charge of the
999 property and make a record of the date such property was found.
1000 If the property is not claimed by its owner within 30 days after
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1001 it is found, or a longer period of time as may be deemed
1002 appropriate by the owner or operator of the premises, the owner
1003 or operator of the premises may not sell and must dispose of the
1004 property or donate it to a charitable institution that is exempt
1005 from federal income tax under s. 501(c)(3) of the Internal
1006 Revenue Code for sale or other disposal as the charitable
1007 institution deems appropriate. The rightful owner of the
1008 property may reclaim the property from the owner or operator of
1009 the premises at any time before the disposal or donation of the
1010 property in accordance with this section and the established
1011 policies and procedures of the owner or operator of the
1012 premises. A charitable institution that accepts an electronic
1013 device, as defined in s. 815.03(9), access to which is not
1014 secured by a password or other personal identification
1015 technology, shall make a reasonable effort to delete all
1016 personal data from the electronic device before its sale or
1017 disposal.
1018 Section 19. Section 717.1355, Florida Statutes, is amended
1019 to read:
1020 717.1355 Theme park and entertainment complex tickets. —
1021 This chapter does not apply to any tickets for admission to a
1022 theme park or entertainment complex as defined in s. 509.013 s.
1023 509.013(9), or to any tickets to a permanent exhibition or
1024 recreational activity within such theme park or entertainment
1025 complex.
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1026 Section 20. Subsection (8) of section 877.24, Florida
1027 Statutes, is amended to read:
1028 877.24 Nonapplication of s. 877.22.—Section 877.22 does
1029 not apply to a minor who is:
1030 (8) Attending an organized event held at and sponsored by
1031 a theme park or entertainment complex as defined in s. 509.013
1032 s. 509.013(9).
1033 Section 21. The application of this act does not supersede
1034 any current or future declaration or declaration of condominium
1035 adopted pursuant to chapter 718, Florida Statutes; any
1036 cooperative document adopted pursuant to chapter 719, Florida
1037 Statutes; or any declaration or declaration of covenant adopted
1038 pursuant to chapter 720, Florida Statutes.
1039 Section 22. (1) The Department of Revenue is authorized,
1040 and all conditions are deemed to be met, to adopt emergency
1041 rules pursuant to s. 120.54(4), Florida Statutes, for the
1042 purpose of implementing the amendments made by this act to s.
1043 212.03, Florida Statutes, including establishing procedures to
1044 facilitate the remittance of taxes.
1045 (2) Notwithstanding any other law, emergency rules adopted
1046 pursuant to subsection (1) are effective for 6 months after
1047 adoption and may be renewed during the pendency of procedures to
1048 adopt permanent rules addressing the subject of the emergency
1049 rules.
1050 (3) This section expires January 1, 2026.
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1051 Section 23. Except as otherwise expressly provided in this
1052 act, this act shall take effect July 1, 2024.
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COMMERCE COMMITTEE
HB 1537 by Rep. Griffitts
Vacation Rentals
AMENDMENT SUMMARY
February 22, 2024
Amendment 1 by Rep. Griffitts (lines 475-802):
• Makes clarifying and technical changes to the bill.
• Specifies that tax collectors may charge a fee for processing vacation rental
registrations.
• Requires instead of authorizes the Division of Hotels and Restaurants to grant temporary
vacation rental licenses in certain situations, and specifies such licenses become
permanent upon final agency action regarding the license application.
• Requires the Division to include the nature of the deficiency in suspension notices on the
vacation rental information system.
• Revises the requirement for advertising platforms to collect and remit certain taxes, to
also require the designated operator listing a property with an advertising platform to
collect and remit such taxes.
• Removes the requirement that an advertising platform remove the ability to book an
advertisement or listing if a local registration has been suspended, revoked, not
renewed, or failed to display the license number or unique identifier.
• Removes the requirement that a local government use the vacation rental information
system as established in s. 509.244, F.S., to provide notice of the termination of or
refusal to renew a vacation rental registration to the Division.
COMMITTEE/SUBCOMMITTEE AMENDMENT
Bill No. CS/HB 1537 (2024)
Amendment No. 1
COMMITTEE/SUBCOMMITTEE ACTION
ADOPTED (Y/N)
ADOPTED AS AMENDED (Y/N)
ADOPTED W/O OBJECTION (Y/N)
FAILED TO ADOPT (Y/N)
WITHDRAWN (Y/N)
OTHER
1 Committee/Subcommittee hearing bill: Commerce Committee
2 Representative Griffitts offered the following:
3
4 Amendment (with title amendment)
5 Remove lines 475-802 and insert:
6 (a) A local government or tax collector may charge a fee
7 of no more than $150 per unit for processing a registration
8 application. A local law, ordinance, or regulation may require
9 annual renewal of a registration and may charge a renewal fee of
10 no more than $50 per unit for processing of a registration
11 renewal. However, if there is a change of ownership, the new
12 owner may be required to submit a new application for
13 registration. Subsequent to the registration of a vacation
14 rental, a local government may charge a fee, not to exceed $150,
15 for a person authorized by s. 633.118 to inspect the vacation
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16 rental and enforce the laws and rules of the State Fire Marshall
17 for issues pertaining to the uniform firesafety standards.
18 (b) As a condition of registration or renewal of a
19 vacation rental, a local law, ordinance, or regulation
20 establishing a local vacation rental registration program may
21 require the operator of a vacation rental to do only the
22 following:
23 1. Submit identifying information about the owner an d the
24 owner's operator, if applicable, and the subject vacation rental
25 premises.
26 2. Provide proof of a license with the unique identifier
27 issued by the division to operate as a vacation rental.
28 3. Obtain all required tax registrations, receipts, or
29 certificates issued by the Department of Revenue, a county, or a
30 municipality.
31 4. Update required information on a continuing basis to
32 ensure it is current.
33 5. Designate and maintain at all times a responsible party
34 who is capable of responding to complaints or emergencies
35 related to the vacation rental, including being available by
36 telephone at a provided contact telephone number 24 hours a day,
37 7 days a week, and receiving legal notice of violations on
38 behalf of the operator. The responsible party has until 9 a.m.
39 the next calendar day to respond to a complaint or emergency by
40 telephone or otherwise.
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41 6. State the maximum occupancy of the vacation rental
42 based on the number of sleeping accommodations for persons
43 staying overnight in the vacation rental.
44 7. Pay in full all recorded municipal or county code liens
45 against the subject vacation rental premises.
46 (c) Within 15 business days after receiving an application
47 for registration of a vacation rental, a local government must
48 review the application for completeness and accept the
49 registration of the vacation rental or issue a written notice of
50 denial.
51 1. The vacation rental operator and the local government
52 may agree to a reasonable request to extend the timeframes
53 provided in this paragraph, particularly in the event of a force
54 majeure or other extraordinary circumstance.
55 2. If a local government fails to accept or deny the
56 registration within the timeframes provided in this paragraph,
57 the application is deemed accepted.
58 (d) If a local government denies a registration of a
59 vacation rental, the local government must give written notice
60 to the applicant. Such notice may be provided by United States
61 mail or electronically. The notice must specify with
62 particularity the factual reasons for the denial and include a
63 citation to the applicable portions of the ordinance, rule,
64 statute, or other legal authority for the denial of the
65 registration. A local government may not prohibit an applicant
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66 from reapplying if the applicant cures the identified
67 deficiencies.
68 (e)1. Upon an accepted vacation rental registration, a
69 local government shall immediately assign a unique registration
70 number to the vacation rental unit and provide the registration
71 number or other indicia of registration to the vacation rental
72 operator in writing or electronically.
73 2. The vacation rental operator must provide the vacation
74 rental registration number to the division.
75 (f) A local government may fine a vacation rental operator
76 up to $300 if he or she:
77 1. Fails to continue to meet the registration requirements
78 in paragraph (b); or
79 2. Is operating a vacation rental without registering with
80 the local government as a vacation rental.
81 (g) A certified copy of an order imposing a fine may be
82 recorded in the public records and thereafter constitutes a lien
83 against the real property on which the violation exists. Upon
84 petition to the circuit court, such order is enforceable in the
85 same manner as a court judgment by the sheriffs of this state,
86 including execution and levy against the personal property of
87 the violator, but such order may not be deemed to be a court
88 judgment except for enforcement purposes. A fine imposed
89 pursuant to this subsection shall continue to accrue until the
90 violator comes into compliance or until judgment is rendered in
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91 a suit filed pursuant to this section, whichever occurs first. A
92 lien arising from a fine imposed pursuant to this subsection
93 runs in favor of the local government, and the local government
94 may execute a satisfaction or release of lien. Three months or
95 more after the filing of any such lien that remains unpaid, the
96 local government may foreclose on the lien against the real
97 property on which the violation exists or sue to recover a money
98 judgment for the amount of the lien, plus accrued interest. A
99 lien created pursuant to this part may not be foreclosed on real
100 property that is a homestead under s. 4, Art. X of the State
101 Constitution. The money judgment provisions of this section do
102 not apply to real property or personal property that is covered
103 under s. 4(a), Art. X of the State Constitution.
104 (h)1. If a vacation rental owner is found by the code
105 enforcement board or special magistrate to have materially
106 violated a local law, ordinance, or regulation that does not
107 solely apply to vacation rentals and the violation is directly
108 related to the owner's vacation rental premises, the local
109 government must issue a written notice of such violation.
110 2. If the owner is found to have materially violated a
111 local law, ordinance, or regulation as described in subparagraph
112 1., the code enforcement board or special magistrate must make a
113 recommendation to the local government as to whether an owner's
114 vacation rental registration should be suspended.
115 3. The code enforcement board or special magistrate must
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116 recommend the suspension of the owner's vacation rental
117 registration if the owner is found to have:
118 a. One or more material violations on 5 separate days
119 during a 60-day period;
120 b. One or more material violations on 5 separate days
121 during a 30-day period; or
122 c. One or more material violations after two prior
123 suspensions of an owner's vacation rental registration during a
124 6-month period.
125 4. If the code enforcement board or special magistrate
126 recommends suspension of an owner's vacation rental
127 registration, a local government may suspend such registration
128 for a period of:
129 a. Up to 15 days for one or more material violations on 5
130 separate days during a 60-day period;
131 b. Up to 30 days for one or more material violations on 5
132 separate days during a 30-day period; or
133 c. Up to 60 days for one or more material violations after
134 two prior suspensions of an owner's vacation rental registration
135 during a 6-month period.
136 5. A local government may not suspend an owner's vacation
137 rental registration for violations of a local law, ordinance, or
138 regulation which are not directly related to the vacation rental
139 premises.
140 6. A local government must provide notice of the
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141 suspension of a vacation rental registration to the operator and
142 the division within 5 days after the suspension. The notice must
143 include the start date of the suspension, which must be at least
144 21 days after the suspension notice is sent to the operator and
145 the division. Effective January 1, 2026, a local government must
146 use the vacation rental information system described in s.
147 509.244 to provide notice of the suspension of a vacation rental
148 registration to the division.
149 (i)1. A local government may revoke or refuse to renew a
150 vacation rental registration of a specific vacation rental if:
151 a. The code enforcement board or special magistrate has
152 found that the vacation rental owner has habitually committed
153 material violations pursuant to paragraph (h) and has imposed
154 the strictest penalty thereunder;
155 b. There is an unsatisfied recorded municipal lien or
156 county lien on the real property of the vacation rental;
157 however, the local government must allow the vacation rental
158 owner at least 60 days before the termination of a registration
159 to satisfy the recorded municipal lien or county lien and must
160 immediately and automatically reinstate or renew the
161 registration upon satisfaction of such lien; or
162 c. The vacation rental premises and its owner are the
163 subject of a final order or judgment by a court of competent
164 jurisdiction lawfully directing the termination of the premises'
165 use as a vacation rental.
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Amendment No. 1
166 2. A local government must provide notice of the
167 termination of or refusal to renew a vacation rental
168 registration to the operator and the division within 5 days
169 after the termination or refusal to renew. The notice must
170 include the date of termination or nonrenewal, which must be at
171 least 21 days after the notice is sent to the operator and the
172 division.
173 (j) A vacation rental owner may appeal a denial,
174 suspension, or termination of a vacation rental registration, or
175 a refusal to renew such registration, to the circuit court. An
176 appeal must be filed within 30 days after the issuance of the
177 denial, suspension, or termination of, or refusal to renew, the
178 vacation rental registration. The court may assess and award
179 reasonable attorney fees and costs and damages to a vacation
180 rental owner.
181 (k) A vacation rental owner may apply for registration
182 upon the sale of the vacation rental premises to a new owner or
183 6 months after revocation of or refusal to renew the vacation
184 rental registration pursuant to paragraph (i).
185
186 This subsection does not prohibit a local government from
187 establishing a local law, ordinance, or regulation if it is
188 uniformly applied without regard to whether the residential
189 property is used as a vacation rental.
190 Section 4. Effective January 1, 2025, present paragraph
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191 (c) of subsection (4) of section 509.241, Florida Statutes, is
192 redesignated as paragraph (d), a new paragraph (c) is added to
193 that subsection, subsection (5) is added to that section, and
194 subsections (2) and (3) of that section are amended, to read:
195 509.241 Licenses required; exceptions; division online
196 accounts and transactions.—
197 (2) APPLICATION FOR LICENSE.—Each person who plans to open
198 a public lodging establishment or a public food service
199 establishment shall apply for and receive a license from the
200 division before prior to the commencement of operation. A
201 condominium association, as defined in s. 718.103, which does
202 not own any units classified as vacation rentals or timeshare
203 projects under s. 509.242(1)(c) or (g) is not required to apply
204 for or receive a public lodging establishment license. Upon
205 receiving an application for a vacation rental license, the
206 division shall grant a temporary license that authorizes the
207 vacation rental to begin operation while the application is
208 pending. The temporary license becomes permanent upon final
209 agency action regarding the license application that grants the
210 vacation rental license.
211 (3) DISPLAY OF LICENSE.—A Any license issued by the
212 division must shall be conspicuously displayed to the public
213 inside in the office or lobby of the licensed establishment.
214 Public food service establishments that which offer catering
215 services must shall display their license number on all
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216 advertising for catering services. The operator of a vacation
217 rental offered for transient occupancy through an advertising
218 platform must also conspicuously display the vacation rental's
219 local registration number, if applicable, inside the unit in a
220 visible location.
221 (4) ONLINE ACCOUNT AND TRANSACTIONS.—Each person who plans
222 to open a public lodging establishment or a public food service
223 establishment and each licensee or licensed agent must create
224 and maintain a division online account and provide an e-mail
225 address to the division to function as the primary contact for
226 all communication from the division.
227 (c) Each licensee or licensed agent managing a license
228 classified as a vacation rental as defined in s. 509.242(1)(c)
229 must submit to the division, through the division's online
230 system, any applicable local vacation rental registration
231 number.
232 (5) UNIQUE IDENTIFIER.—The division shall include a unique
233 identifier expressed as a series of letters or numbers at the
234 end of the vacation rental license number on each vacation
235 rental license it issues which identifies each individual
236 vacation rental dwelling or unit.
237 Section 5. Effective January 1, 2025, section 509.243,
238 Florida Statutes, is created to read:
239 509.243 Advertising platforms.—
240 (1) An advertising platform shall require that a person
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241 who places an advertisement or listing for a vacation rental
242 which offers it for rent do all of the following:
243 (a) Include in the advertisement or listing the vacation
244 rental license number with the associated unique identifier.
245 (b) Attest to the best of the person's knowledge that the
246 vacation rental's license and, if applicable, its local
247 registration are current and valid and that all related
248 information is accurately stated in the advertisement.
249 (2) An advertising platform shall display the vacation
250 rental license number with the associated unique identifier.
251 (3) Effective January 1, 2026, an advertising platform
252 shall:
253 (a) Remove the ability to book an advertisement or a
254 listing from its online application, software, website, or
255 system within 15 business days after notification through the
256 vacation rental information system as established in s. 509.244
257 that a vacation rental license:
258 1. Has been suspended, revoked, or not renewed; or
259 2. Fails to display a valid vacation rental license number
260 with the associated unique identifier.
261
262 The notification shall identify the nature of the deficiency.
263 (b) Provide to the division on a quarterly basis, in a
264 manner compatible with the vacation rental information system as
265 established in s. 509.244, a list of all vacation rentals in the
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Amendment No. 1
266 state which are advertised on its platform, including the
267 uniform resource locator for the Internet address of the
268 vacation rental advertisement and the vacation rental license
269 number associated with the vacation rental.
270 (4) If a guest uses a payment system on or through an
271 advertising platform to pay for the rental of a vacation rental
272 located in this state, the advertising platform or the
273 designated operator listing a property with an advertising
274 platform must collect and remit all taxes due under ss.
275 125.0104, 125.0108, 205.044, 212.03, 212.0305, and 212.055
276 related to the rental as provided in s. 212.03(2)(b).
277 (5) If the division has probable cause to believe that a
278 person not licensed by the division has violated this chapter or
279 any rule adopted pursuant thereto, the division may issue and
280 deliver to such person a notice to cease and desist from the
281 violation. The issuance of a notice to cease and desist do es not
282 constitute agency action for which a hearing under s. 120.569 or
283 s. 120.57 may be sought. For the purpose of enforcing a cease
284 and desist notice, the division may file a proceeding in the
285 name of the state seeking the issuance of an injunction or a
286 writ of mandamus against any person who violates any provision
287 of the notice. If the division is required to seek enforcement
288 of the notice for a penalty pursuant to s. 120.69, it is
289 entitled to collect attorney fees and costs, together with any
290 cost of collection.
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Amendment No. 1
291 (6) The division may fine an advertising platform an
292 amount not to exceed $1,000 per offense for each violation of
293 this section or of division rule. For the purposes of this
294 subsection, the division may regard as a separate offense each
295 day or portion of a day in which an advertising platform is
296 operated in violation of this section or rules of the division.
297 The division shall issue to the advertising platform a written
298 notice of any violation and provide it 15 days to cure the
299 violation before commencing any legal proceeding under
300 subsection (5).
301 (7) An advertising platform shall adopt an
302 antidiscrimination policy to help prevent discrimination by its
303 users and shall inform all users that it is illegal to refuse
304 accommodation to an individual based on race, creed, color, sex,
305 pregnancy, physical disability, or national origin, as provided
306 in s. 509.092.
307 (8) This section does not create a private cause of action
308 against advertising platforms. An advertising platform may not
309 be held liable for any action that it takes voluntarily and in
310 good faith in relation to its users in compliance with this
311 chapter or the advertising platform's terms of service.
312 Section 6. Section 509.244, Florida Statutes, is created
313 to read:
314 509.244 Vacation rental information system.—
315 (1) As used in this section, the term "application program
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Amendment No. 1
316 interface" means a predefined protocol for reading or writing
317 data across a network using a file system or a database.
318 (2) By July 1, 2025, the division shall create and
319 maintain a vacation rental information system readily accessible
320 through an application program interface. At a minimum, the
321 system must do all of the following:
322 (a) Facilitate prompt compliance with this chapter by a
323 licensee or an advertising platform.
324 (b) Provide a system interface to allow local governments
325 to verify the status of a vacation rental, if applicable.
326 (c) Allow a registered user to subscribe to receive
327 automated notifications of changes to the license and
328 registration status of a vacation rental, including any license
329 revocation, local registration termination, period of suspension
330 imposed by the division or local government, or failure to renew
331 a license or local registration.
332
333
334 -----------------------------------------------------
335 T I T L E A M E N D M E N T
336 Remove lines 21-103 and insert:
337 authorizing local governments and tax collectors to
338 charge a specified fee for processing registration
339 applications; authorizing local laws, ordinances, or
340 regulations to require annual renewal of a
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Amendment No. 1
341 registration and to charge a fee for such renewal;
342 providing that a change in ownership may require a new
343 application for registration; authorizing local
344 governments to charge a specified fee to inspect a
345 vacation rental and enforce certain laws and rules for
346 issues pertaining to uniform life safety requirements;
347 specifying requirements and procedures for, and
348 limitations on, local vacation rental registration
349 programs; authorizing local governments to fine
350 vacation rental operators under certain circumstances;
351 specifying procedures related to the imposition of
352 fines; providing applicability relating to certain
353 money judgment provisions; requiring local governments
354 to issue written notices of material violations under
355 certain circumstances; requiring the code enforcement
356 board or special magistrate to make certain
357 recommendations under specified circumstances;
358 authorizing local governments to suspend an owner's
359 vacation rental registration for specified periods of
360 time; prohibiting local governments from suspending an
361 owner's vacation rental registration for violations
362 not directly related to the vacation rental premises;
363 requiring, within a specified timeframe, local
364 governments to provide notice of registration
365 suspension to vacation rental operators and the
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Amendment No. 1
366 Division of Hotels and Restaurants of the Department
367 of Business and Professional Regulation; providing
368 requirements for such notice; requiring, by a certain
369 date, local governments to use the vacation rental
370 information system to provide such notice to the
371 division; authorizing local governments to revoke or
372 refuse to renew a vacation rental registration of a
373 specific vacation rental under certain circumstances;
374 requiring, within a specified timeframe, local
375 governments to provide notice of termination of or
376 refusal to renew a vacation rental registration to
377 vacation rental operators and the division; requiring,
378 by a certain date, local governments to use the
379 vacation rental information system to provide such
380 notice to the division; providing that vacation rental
381 owners may appeal a denial, suspension, or termination
382 of, or a refusal to renew, a vacation rental
383 registration; providing procedures for such appeal;
384 authorizing a vacation rental owner to apply for
385 registration upon the sale of the vacation rental
386 premises or 6 months after revocation of or refusal to
387 renew the vacation rental registration; providing
388 construction; amending s. 509.241, F.S.; requiring the
389 division to issue temporary licenses upon receipt of
390 vacation rental license applications while such
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Amendment No. 1
391 applications are pending; providing for expiration of
392 such licenses; requiring that any license issued by
393 the division be conspicuously displayed to the public
394 inside the licensed establishment; requiring that
395 operators of vacation rentals which offer a vacation
396 rental for transient occupancy through an advertising
397 platform also display to the public inside the
398 vacation rental its local registration number, if
399 applicable; requiring licensees or licensed agents
400 managing a license classified as a vacation rental to
401 submit local vacation rental registration numbers, if
402 applicable, to the division through the division's
403 online system; requiring the division to include a
404 unique identifier on each vacation rental license
405 issued which identifies each individual vacation
406 rental dwelling or unit; creating s. 509.243, F.S.;
407 requiring advertising platforms to require that
408 persons placing advertisements or listings for
409 vacation rentals include certain information in the
410 advertisements or listings and attest to certain
411 information; requiring advertising platforms to
412 display certain information; requiring, as of a
413 specified date, advertising platforms to remove the
414 ability to book an advertisement or a listing under
415 certain circumstances and to provide to the division
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Amendment No. 1
416 on a quarterly basis, in a specified manner, a list of
417 all vacation rentals in the state which are advertised
418 on its platforms, along with other specified
419 information; requiring advertising platforms or
420 designated operators of such platforms to
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CS/HB 1541
HOUSE OF REPRESENTATIVES STAFF ANALYSIS
BILL #: CS/HB 1541 Transparency In Social Media
SPONSOR(S): Regulatory Reform & Economic Development Subcommittee, Fine
TIED BILLS: IDEN./SIM. BILLS: SB 1448
REFERENCE ACTION ANALYST STAFF DIRECTOR or
BUDGET/POLICY CHIEF
1) Regulatory Reform & Economic Development 12 Y, 0 N, As CS Wright Anstead
Subcommittee
2) Commerce Committee Wright Hamon
SUMMARY ANALYSIS
Social media includes forms of electronic communication, such as websites for social networking and
microblogging, through which users create online communities to share information, ideas, videos, personal
messages, and other content. In 2023, an estimated 4.9 billion people worldwide used social media. Recently,
there has been growing concerns of influence over social media platforms by foreign adversaries.
The bill requires each foreign-adversary-owned entity operating a social media platform in Florida to:
Publicly disclose the core functional elements of the social media platform's content curation and
algorithms. Such disclosure must identify:
o The factors that influence content ranking and visibility.
o Measures taken to address misinformation and harmful content.
o The process of personalization and targeting of content.
Make publicly available the source code of its algorithms through an open-source license.
Implement a user verification system for each user and organization that purchases advertisements
concerning social or political issues.
o The system must verify key identifying information, including:
Citizenship,
Residency, and
Age of the user or the individuals that own the organization.
o Once verified, the identity of the purchaser of each social or political advertisement must be
disclosed with the advertisement.
The bill defines the following terms:
"Foreign-adversary-owned entity" means a social media company that is 15 percent owned or
controlled by nationals, governments, or corporations domiciled, incorporated, or otherwise holding
residence in a country designated as a foreign adversary.
"Social media platform" means a public online service that allows users to create and share or
participate in social networking.
"Social or political advertising" means any advertisement on a social media platform that discusses
social or political issues or is intended to influence public opinion or electoral outcomes.
The bill provides that a foreign-adversary-owned entity that violates the requirements of the bill is liable up to
$10,000 for each discrete violation, and requires the Department of Legal Affairs to enforce the bill.
The bill will have an indeterminate, negative fiscal impact on state government, and no impact on local
government.
The bill provides an effective date of July 1, 2024.
This docum ent does not reflect the intent or official position of the bill sponsor or House of Representatives .
STORAGE NAME: h1541b.COM
DATE: 2/20/2024
FULL ANALYSIS
I. SUBSTANTIVE ANALYSIS
A. EFFECT OF PROPOSED CHANGES:
Current Situation
Internet and Social Media Platforms
There are many ways in which individuals access computer systems and interact with systems and
other individuals on the Internet. Examples include:
Social media sites, which are websites and applications that allow users to communicate
informally with others, find people, and share similar interests;1
Internet platforms, which are servers used by an Internet provider to support Internet access by
their customers;2
Internet search engines, which are computer software used to search data (such as text or a
database) for specified information;3 and
Access software providers, which are providers of software (including client or server software)
or enabling tools for content processing.4
Such platforms earn revenue through various modes and models. Examples include:
Data monetization.5 This uses data that is gathered and stored on the millions of users that
spend time on free content sites, including specific user location, browsing habits, buying
behavior, and unique interests. This data can be used to help e-commerce companies tailor
their marketing campaigns to a specific set of online consumers. Platforms that use this model
are typically free for users to use.6
Subscription or membership fees. This model requires users pay for a particular or unlimited
use of the platform infrastructure.7
Transaction fees. This model allows platforms to benefit from every transaction that is enabled
between two or more actors. An example is AirBnB, where users transacting on the site are
charged a fee.8
Trade Secrets
Generally, trade secrets are intellectual property rights on confidential information that are used by a
business and provide an economic advantage to that business. 9
Section 812.081, F.S., defines a “trade secret” as information10 used in the operation of a business,
which provides the business an advantage or an opportunity to obtain an advantage, over those who
1 DelValle Institute Learning Center, Social Media Platforms, availab le at https://delvalle.bphc.org/mod/wiki/view.php?pageid=65 (last
visited Jan. 29, 2024).
2 IGI Global, Internet Platform , availab le at https://www.igi-global.com/dictionary/internet-platform/15441 (last visited Jan. 29, 2024).
3 Merriam Webster, Search Engine, availab le at https://www.merriam-webster.com/dictionary/search%20engine (last visited Jan. 29,
2024).
4 47 U.S.C. § 230(f)(4) defining “access software provider to mean a provider of software (including client or server software) , or
enabling tools that do any one or more of the following: (i) filter, screen, allow, or disallow content; (ii) pick, choose, analyze, or digest
content; or (iii) transmit, receive, display, forward, cache, search, subset, organize, reorganize, or translate content.
5 The Alexander von Humboldt Institute for Internet and Society, How do digital platforms make their money?, July 29, 2019, available
at https://www.hiig.de/en/how-do-digital-platforms-make-their-money/ (last visited Jan. 29, 2024).
6 Investopedia, How Do Internet Companies Profit with Free Services?, availab le at
https://www.investopedia.com/ask/answers/040215/how-do-internet-companies-profit-if-they-give-away-their-services-
free.asp#:~:text=Profit%20Through%20Advertising,content%20is%20through%20advertising%20revenue.&text=Each%20of%20these
%20users%20represents,and%20services%20via%20the%20Internet (last visited Jan. 29, 2024).
7 HIIS, supra note 5.
8 Id.
9 See The Florida Bar, Trade Secret (Dec. 14, 2022) https://www.floridabar.org/practice-areas/trade-secrets/ (last visited Jan. 29, 2024).
10 A trade secret may manifest as any scientific, technical, or commercial information, including any design, process, procedure, list of
suppliers, list of customers, business code, or improvement thereof. Section 812.081, F.S.
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do not know or use it. The test provided for in statute, and adopted by Florida courts, 11 requires that a
trade secret be actively protected from loss or public availability to any person not selected by the
secret’s owner to have access thereto, and be:
Secret;
Of value;
For use or in use by the business; and
Of advantage to the business, or providing an opportunity to obtain an advantage, over those
who do not know or use it.12
Florida law criminalizes the disclosure or theft of trade secrets. For example:
Section 815.04, F.S., makes it a third degree felony13 for a person to willfully, knowingly, and
without authorization disclose or take data, programs, or supporting documentation that are
trade secrets that reside or exist internal or external to a computer, computer system, computer
network, or electronic device.14
Section 812.081, F.S., makes it a third degree felony for a person to steal, embezzle, or copy
without authorization an article that represents a trade secret, when done with an intent to:
o Deprive or withhold from the trade secret’s owner the control of a trade secret, or
o Appropriate a trade secret to his or her own use or to the use of another.
Florida SB 7072 (2021)
In 2021, the Florida Legislature passed SB 7072, which addressed concerns related to social media
platforms. SB 7072 was signed by the Governor on May 24, 2021. 15 Section 501.2041, F.S., was
created, which provides that a social media platform must:
Publish standards used for determining how to censor, deplatform, and shadow ban users, and
apply such standards in a consistent manner;
Inform each user about any changes to its user rules, terms, and agreements before
implementing the changes and not make changes more than once every 30 days;
Notify a user in a specified manner censoring or deplatforming the user;
Allow a user to request the number of other individuals who were shown the user's content or
posts, and provide such information upon such request by the user;
Provide users with an option to opt out of post-prioritization and shadow banning algorithms to
allow sequential or chronological posts and content;
Provide users with an annual notice on the use of algorithms for post-prioritization and shadow
banning and reoffer annual notice on the use of algorithms for post-prioritization and shadow
banning;
Ensure that posts by or about candidates for office in Florida are not shadow banned;
Allow a user who has been deplatformed to access or retrieve all of the user’s information,
content, material, and data for at least 60 days after the user receives the required notice; and
Ensure that journalistic enterprises are not censored, deplatformed, or shadow banned.
In s. 501.2041, F.S., “Social media platform” is defined as any information service, system, Internet
search engine, or access software that:
Provides or enables computer access by multiple users to a computer server, including an
Internet platform and/or a social media site;
Operates as a sole proprietorship, partnership, limited liability company, corporation,
association, or other legal entity;
Does business in Florida; and
Satisfies at least one of the following thresholds:
11 See, e.g., Sepro Corp. v. Dep’t. of Envt’l. Prot., 839 So. 2d 781 (Fla. 1 st DCA 2003).
12 Section 812.081(1)(c), F.S.
13 A third degree felony is punishable by up to 5 years imprisonment and a $5,000 fine. See ss. 775.082 and 775.083, F.S.
14 The offense is a second degree felony if committed for the purpose of creating or exe cuting any scheme or artifice to defraud or to
obtain property.
15 Ch. 2021-32, L.O.F.
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Annual gross revenues in excess of $100,000,000, as adjusted in January of each odd
numbered year to reflect any increase in the Consumer Price Index; or
At least 100,000,000 monthly individual platform participants globally.
Section 501.2041, F.S., also provides for enforcement by permitting the Department of Legal Affairs
(DLA) to find a social media platform who fails to comply with the requirements stated above to be in
violation of the Florida Deceptive and Unfair Trade Practices Act (FDUTPA). Additionally, a user may
bring a private cause of action against a social media platform for failing to consistently apply certain
standards for censoring or deplatforming without proper notice.
Litigation History
Immediately after the bill was signed by the Governor, but prior to the bill’s effective date of July 1,
2021, the plaintiff filed a complaint in the U.S. District Court for the Northern District of Florida
challenging the constitutionality of many of the bill’s provisions and exceptions, and immediately moved
the Court for a preliminary injunction. The District Court granted the preliminary injunction on June 30,
2021.16
The filed complaint alleges the following:
Count 1 of the complaint alleges the Act “violates the First Amendment's free-speech clause by
interfering with the providers’ editorial judgment, compelling speech, and prohibiting speech.”
Count 2 alleges the Act “is vague in violation of the Fourteenth Amendment.”
Count 3 alleges the Act “violates the Fourteenth Amendment's equal protection clause by
impermissibly discriminating between providers that are or are not under common ownership
with a large theme park and by discriminating between providers that do or do not meet the
Act's size requirements.”
Count 4 alleges the Act “violates the Constitution's dormant commerce clause.”
Count 5 alleges the Act “is preempted by 47 U.S.C. § 230(e)(3), which, together with §
230(c)(2)(A), expressly prohibits imposition of liability on an interactive computer service—this
includes a social-media provider—for action taken in good faith to restrict access to material the
service finds objectionable.”17
The District Court indicated that the law was not clearly settled related to issues about First
Amendment treatment of social-media providers: “The plaintiffs say, in effect, that they should be
treated like any other speaker. The State says, in contrast, that social-media providers are more like
common carriers, transporting information from one person to another much as a train transports
people or products from one city to another. The truth is in the middle.” 18
The District Court determined that strict scrutiny applied as the standard to be used:
“Viewpoint- and content-based restrictions on speech are subject to strict scrutiny. A law restricting
speech is content-based if it “applies to particular speech because of the topic discussed or the idea or
message expressed.” Laws that are facially content-neutral, but that cannot be justified without
reference to the content of the regulated speech, or that were adopted because of disagreement with
the speaker's message, also must satisfy strict scrutiny.” 19
The District Court enjoined the State from enforcing any provision of s. 501.2041, F.S., on preemption
and First Amendment grounds.
The State filed an appeal of the District Court’s decision in the U.S. Court of Appeals for the Eleventh
Circuit.
16 NetChoice, LLC v. Moody, 546 F. Supp. 3d 1082 (N.D. Fla. 2021) (NetChoice, LLC, and the Computer & Communications Industry
Association are trade associations whose members include social media providers).
17 NetChoice, LLC, 546 F. Supp. 3d at 1085.
18 NetChoice, LLC, 546 F. Supp. 3d at 1091.
19 NetChoice, LLC, 546 F. Supp. 3d at 1093.
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On May 23, 2022, the U.S. Court of Appeals for the Eleventh Circuit affirmed the district court’s
preliminary injunction in part, and vacated and remanded it in part.20
The Eleventh Circuit found the following provisions of SB 7072, to likely violate the First Amendment:
Section 106.072(2), F.S., which pertains to candidate deplatforming;
Section 501.2041(2)(h), F.S., which pertains to the use of algorithms for the purpose of post-
prioritization or shadow banning candidates;
Section 501.2041(2)(j), F.S., which pertains to journalistic enterprises;
Section 501.2041(2)(b), F.S., which pertains to the consistent application of censorship,
deplatforming, and shadow banning standards;
Section 501.2041(2)(c), F.S., which limits the number of changes that can be made to once
every 30 days;
Sections 501.2041(2)(f) and 501.2041(2)(g), F.S., which pertain to categorizing algorithms used
for post-prioritization and shadow banning, as well as allowing for user opt-outs; and
Section 501.2041(2)(d), F.S., which pertains to notifying a user when their content is censored
or shadow banned.
However, the Eleventh Circuit found the following provisions of SB 7072, to likely not violate the First
Amendment:
Section 501.2041(2)(a), F.S., which pertains to the publication of standards used for
determining how to censor, deplatform, and shadow ban;
Section 501.2041(2)(c), F.S., which pertains to informing users to any changes to its user rules,
terms, and agreements before implementing the changes;
Section 501.2041(2)(e), F.S., which pertains to user view counts;
Section 501.2041(2)(i), F.S., which pertains to user data access; and
Section 106.072(4), F.S., which pertains to free advertising for a candidate.21
The United States Supreme Court is set to hear oral arguments on February 26, 2024.
Florida Data Privacy Regulations
In 2023, the Florida Legislature passed SB 262, which created a unified scheme to allow Florida’s
consumers to control the digital flow of their personal information. SB 262 was signed by the Governor
on June 6, 2023.22 Among other things, SB 262 created ch. 501, part V, F.S., which takes effect on July
1, 2024, and gives Florida consumers the right to:
Confirm and access their personal data;
Delete, correct, or obtain a copy of that personal data;
Opt out of the processing of personal data for the purposes of targeted advertising, the sale of
personal data, or profiling in furtherance of a decision that produces a legal or similarly
significant effect concerning a consumer;
Opt out of the collection or processing of sensitive data, including precise geolocation data; and
Opt out of the collection of personal data collected through the operation of a voice recognition
or facial recognition feature.
The data privacy provisions of ch. 501, part V, F.S., generally apply to “controllers,” businesses that
collect Florida consumers’ personal data, make in excess of $1 billion in global gross annual revenues,
and meet one of the following thresholds:
Derives 50 percent or more if its global gross annual revenues from the online sale of
advertisements, including from providing targeted advertising or the sale of ads online;
Operates a consumer smart speaker and voice command component service with an integrated
virtual assistant connected to a cloud computing service that uses hands-free verbal activation;
or
Operates an app store or digital distribution platform that offers at least 250,000 different
software applications for consumers to download and install.
20 Moody v. NetChoice, LLC, 34 F.4th 1196 (11th Cir. 2022).
21 Moody, 34 F.4th 1196.
22 See ch. 2023-201, Laws of Fla.
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A controller who operates an online search engine is required to make available an up-to date plain
language description of the main parameters that are most significant in determining ranking and the
relative importance of those main parameters, including the prioritization or deprioritization of political
partisanship or political ideology in search results. A controller must also conduct and document a data
protection assessment of certain processing activities involving personal data. Additionally, a controller
is required to provide consumers with a reasonably accessible and clear privacy notice, updated at
least annually.
A violation of ch. 501, part V, F.S is an unfair and deceptive trade practice actionable under FDUTPA,
to be enforced by DLA. The DLA may provide a right to cure a violation of ch. 501, part V, F.S., by
providing written notice of the violation and then allowing a 45-day period to cure the alleged violation.
The DLA is required to make a report publicly available by February 1 each year on the DLA’s website
that describes any actions it has undertaken to enforce ch. 501, part V, F.S.
SB 262 also created s. 112.23, F.S., which prohibits employees of a governmental entity from using
their position or any state resources to communicate with a social media platform to request that it
remove content or accounts. Additionally, a governmental entity cannot initiate or maintain any
agreements with a social media platform for the purpose of content moderation. These prohibitions do
not apply to routine account maintenance, attempts to remove accounts or content pertaining to the
commission of a crime, or efforts to prevent imminent bodily harm, loss of life, or property damage.
Montana TikTok Law
On May 17, 2023, SB 419 was signed into law in Montana, which specifically banned TikTok in the
state.23 However, on November 30, 2023, the law was preliminarily enjoined, based on several
constitutional concerns, including those related to bills of attainder, the Commerce Clause, the First
Amendment, and the Supremacy Clause, therefore preventing Montana from enforcing the ban on
TikTok’s operations.24
The law lists concerns, including the People’s Republic of China’s (PRC’s) status as “an adversary,” as
well as TikTok’s status as a “subsidiary of . . . a Chinese corporation” over which “the [PRC] exercises
control and oversight,” improper procurement and sharing of user data, and promotion of “dangerous
content.”25
SB 419 would ban TikTok in Montana by:
Prohibiting mobile application stores from making the TikTok app available to users in Montana;
Prohibiting TikTok’s operation in all places subject to Montana’s criminal jurisdiction; and
Including penalties and enforcement provisions. 26
According to the Congressional Research Service, to date, no other states have enacted a ban this
broad against TikTok or any other social media platform. Instead, more than half of U.S. states prohibit
the use of TikTok on at least some state-issued devices, and a number of public postsecondary
institutions have followed suit, enacting policies that prevent university Wi-Fi or university-issued
devices from being used to access the app.27
Freedom of Speech and Internet Platforms
Section 230
23 Montana.gov, Governor Gianforte Bans TikTok in Montana, May 17, 2023, https://news.mt.gov/Governors -
Office/Governor_Gianforte_Bans_TikTok_in_Montana (last visitedFeb. 2, 2024).
24 Congressional Research Service, Montana’s TikTok Ban, an Injunction, and Pending Legal Actions (December 8, 2023), availab le at
https://crsreports.congress.gov/product/pdf/LSB/LSB10972#:~:text=Commerce%20Clause%3A%20The%20court%20found,concept%2
0Montana%20did%20not%20contest. (last visited Feb. 2, 2024).
25 Id.
26 Id.
27 Id.
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The federal Communications Decency Act (CDA) was passed in 1996 “to protect children from sexually
explicit Internet content.”28 47 U.S. Code § 230 (Section 230) was added as an amendment to the CDA
to maintain the robust nature of Internet communication and, accordingly, to keep government
interference in the medium to a minimum.” 29
Congress stated in Section 230 that “[i]t is the policy of the United States—(1) to promote the continued
development of the Internet and other interactive computer services and other interactive media; [and]
(2) to preserve the vibrant and competitive free market that presently exists for the Internet and other
interactive computer services, unfettered by Federal or State regulation.” 30
Specifically, Section 230 states that no provider or user of an interactive computer service may be held
liable on account of:31
Any action voluntarily taken in good faith to restrict access to or availability of material that the
provider or user considers to be obscene, lewd, lascivious, filthy, excessively violent, harassing,
or otherwise objectionable, whether or not such material is constitutionally protected; or
Any action taken to enable or make available to information content providers or others the
technical means to restrict access to material from any person or entity that is responsible for
the creation or development of information provided through any interactive computer service.
Section 230 eased Congressional concern regarding the outcome of two inconsistent judicial
decisions,32 both of which applied traditional defamation law to internet providers.33 The first decision
held that an interactive computer service provider could not be liable for a third party's defamatory
statement, however the second decision imposed liability where a service provider filtered content in an
effort to block obscene material.34 To provide clarity, Section 230 provides that “[n]o provider ... of an
interactive computer service shall be treated as the publisher or speaker of any information provided by
another information content provider.”35 In light of the objectives of Congress, the Circuits are in general
agreement that the text of Section 230(c)(1) should be construed broadly in favor of immunity. 36
Section 230 specifically addresses how the federal law affects other laws. Section 230 prohibits all
inconsistent causes of action and prohibits liability imposed under any state or local law. 37 However,
Section 230 does not affect federal criminal law, intellectual property law, the Electronic
Communications Privacy Act of 1986, or sex trafficking law.
There have been criticisms of the broad immunity provisions or liability shields which force individuals
unhappy with third-party content to sue the user who posted it. While this immunity has fostered the
free flow of ideas on the Internet, critics have argued that Section 230 shields publishers from liability
for allowing harmful content.38 Congressional and executive proposals to limit immunity for claims
relating to platforms purposefully hosting content from those engaging in child exploitation, terrorism,
and cyber-stalking have been introduced.39 Bills have been filed that would require internet platforms to
have clear content moderation policies, submit detailed transparency reports, and remove immunity for
28 See 1 Force v. Faceb ook, Inc., 934 F.3d 53, 63 (2d Cir. 2019) (citing FTC v. LeadClick Media, LLC, 838 F.3d 158, 173 (2d Cir. 2016)
(citing 141 Cong. Rec. S1953 (daily ed. Feb. 1, 1995) (statement of Sen. Exon)).
29 Force, 934 F.3d at 63 (quoting Ricci v. Teamsters Union Local 456, 781 F.3d 25, 28 (2d Cir. 2015) (quoting Zeran v. Am. Online, Inc.,
129 F.3d 327, 330 (4th Cir. 1997)).
30
47 U.S.C. § 230(b)(1)–(2).
31 47 U.S.C. § 230(c).
32 Cub b y, Inc. v. CompuServe, Inc., 776 F. Supp. 135 (S.D.N.Y. 1991) and Stratton Oakmont, Inc. v. Prodigy Servs. Co., No. 31063/94,
1995 WL 323710 (N.Y. Sup. Ct. May 24, 1995).
33 Force, 934 F.3d at 63 (quoting LeadClick, 838 F.3d at 173).
34 Force, 934 F.3d at 63 (quoting LeadClick, 838 F.3d at 173 (citing 141 Cong. Rec. H8469-70 (daily ed. Aug. 4, 1995)
(statement of Rep. Cox))).
35 47 U.S.C. § 230(c)(1).
36 Force, 934 F.3d at 63.
37 47 U.S.C. § 230(e).
38 Zoe Bedell and John Major, What’s Next for Section 230? A Roundup of Proposals Lawfare, (July 29, 2020)
https://www.lawfareblog.com/whats-next-section-230-roundup-proposals (last visited Feb. 2, 2024).
39 Id.
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platforms that engage in certain behavioral advertising practices. 40 Proposals have also been offered to
limit the liability shield for internet providers who restrict speech based on political viewpoints. 41
Recently, the United States Supreme Court heard Twitter, Inc. v. Taamneh and Gonzalez v. Google;
these cases alleged that Twitter and Google aided and abetted terrorists who posted content to their
platforms, and a key issue in both cases was whether social media companies can be held liable for
their targeted recommendation algorithms.42 However, the court decided both cases on alternative
grounds, which leaves the question unanswered.
Freedom of Speech
The First Amendment of the United States Constitution protects the right to freedom of expression from
government interference. The First Amendment is applicable to the states through the Due Process
Clause of the Fourteenth Amendment.43 “The First Amendment assures the broadest tolerable exercise
of free speech, free press, and free assembly, not merely for religious purposes, but for political,
economic, scientific, news, or informational ends as well.” 44 “Online speech is equally protected under
the First Amendment as there is ‘no basis for qualifying the level of First Amendment scrutiny that
should be applied’ to online speech.”45
It is well established that a government regulation based on the content of speech is presumptively
invalid and will be upheld only if it is necessary to advance a compelling governmental interest,
precisely tailored to serve that interest, and is the least restrictive means available for establishing that
interest.46 The government bears the burden of demonstrating the constitutionality of any such content-
based regulation.47
The United States Supreme Court has recognized that First Amendment protection extends to
corporations.48 “This protection has been extended by explicit holdings to the context of political
speech.”49 Under these precedents, it is well settled that political speech does not lose First
Amendment protection “simply because its source is a corporation.” 50 Generally, the government may
not require a corporation to host another’s speech absent a showing of a compelling state interest. 51
Supremacy Clause, Commerce Clause, and Bills of Attainder
The U.S. Constitution’s Supremacy Clause establishes that federal statutes, treaties, and the U.S.
Constitution are the “supreme Law of the Land.” 52
Federal law may preempt state action that thwarts federal law in three ways:
By an express statement of its intent to occupy a field. Express preemption need not be total,
however—it can preempt all state laws or only certain state laws.
40
Id.; PACT Act, S.4066, 116th Cong. (2020); BAD ADS Act, S.4337, 116th Cong. (2020).
41 Bedell, supra note 38; Limiting Section 230 Immunity to Good Sam aritans Act, S.3983, 116th Cong. (2020).
42 See Twitter, Inc. v. Taamneh, 143 S. Ct. 1206 (2023) and Gonzalez v. Google LLC, 143 S. Ct. 1191 (2023).
43 See De Jonge v. Oregon, 299 U.S. 353, 364–65(1937)(incorporating right of assembly);(incorporating right of freedom of speech).
44 Douglas v. City of Jeannette (Pennsylvania), 319 U.S. 157, 179, (1943) (Jackson, J., concurring in result).
45
Reno v. Am. Civil Lib erties Union, 521 U.S. 844, 870 (1997).
46 Ashcroft v. Am. Civil Lib erties Union, 542 U.S. 656, 665-66 (2004).
47 Ashcroft, 542 U.S. 656, at 660.
48 Citizens United v. Federal Election Commission, 558 U.S. 310, 342 (2010).
49 Id. (citing NAACP v. Button v. 371 U.S.415, 428-429 (1963); Grosjean v. American Press Co., 297 U.S. 233, 244 (1936)).
50 Id. (citing First Nat. Bank of Boston v. Bellotti, 435 U.S. at 784 (1978); Pacific Gas & Elec. Co. v. Pub lic Util. Comm'n of Cal., 475
U.S. 1, 8, 106 S.Ct. 903, 89 L.Ed.2d 1 (1986) (plurality opinion) (“The identity of the speaker is not decisive in determining whether
speech is protected. Corporations and other associations, like individuals, contribute to the ‘discussion, debate, and the di ssemination
of information and ideas' that the First Amendment seeks to foster” (quoting Bellotti, 435 U.S., at 783)).
51 Consolidated Edison Co. v. Pub lic Service Commission, 447 U.S. 530 (1980); First National Bank of Boston v. Belliotti, 438 U.S.
(1978); Miami Herald Pub lishing Co. v. Tornillo, 418 U.S. 241 (1974); Pacific Gas & Electric Co. v. Pub lic Utilities Commission of
California, 475 U.S. 1 (1986).
52 U.S. C ONST., Art. VI, cl. 2.
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With “a framework of regulation so pervasive that Congress left no room for the States to
supplement it or where the federal interest is so dominant that the federal system will be
assumed to preclude enforcement of state laws on the same subject.” 53
Where state law conflicts, leaving an actor to choose whether to adhere to state or federal law.54
The state law may also be subject to conflict preemption where it “stands as an obstacle to the
accomplishment and execution of the full purposes and objectives of Congress.” 55
The federal government’s authority to act in the realm of foreign affairs is vested by the U.S.
Constitution.56 State laws that intrude into this field of foreign affairs, even where not preempted by
prior federal action, improperly impact foreign affairs and are therefore invalid. 57 Courts have generally
held, however, that the state’s intrusion must have more than an “incidental effect” on foreign affairs in
order to be considered an encroachment onto the federal government’s powers. 58
Article I, section 8, clause 3 of the U.S. Constitution grants Congress the power to “regulate commerce
with foreign nations ....” Conversely, this provision serves as a limitation on states’ authority to
encroach onto the realm of foreign commerce where such action creates a risk of conflicts with foreign
governments or impedes the federal government’s ability to speak with one voice in regulating industry
affairs with foreign states.59 The “dormant foreign commerce power” 60 voids state acts upon foreign
commerce because of the Constitution's overriding concern for national uniformity in foreign
commerce—even in instances when Congress has not affirmatively acted. 61 Courts also generally
subject state action to a heightened scrutiny that assumes the supremacy of federal action in the realm
of foreign relations.62
Additionally, Congress has the power to regulate commerce among the states. 63 Though phrased as a
grant of regulatory power to Congress, the Commerce Clause has long been understood to have a
negative or dormant aspect that denies the states the power to unjustifiably discriminate against or
burden the interstate flow of articles of commerce.64
Article I, section 9, of the U.S. Constitution provides that Congress shall pass “No Bill of Attainder or ex
post facto Law.” Similarly, Article I, section 10, of the U.S. Constitution prohibits the states from
enacting bills of attainder. The Supreme Court has described a bill of attainder as “a law that
legislatively determines guilt and inflicts punishment upon an identifiable individual without provision of
the protections of judicial trial.”65
The International Emergency Economic Powers Act
The International Emergency Economic Powers Act (IEEPA) gives the President of the United States
regulatory authority over a variety of economic transactions in the event of a national emergency that
constitutes an unusual and extraordinary threat.66 The IEEPA, like the Trading with the Enemy Act from
53 Arizona v. U.S., 567 U.S. 387, 399 (2012).
54 Crosb y v. Nat’l. Foreign Trade Council, 530 U.S. at 372 (2000).
55
Nat’l Foreign Trade Council, Inc. v. Giannoulias, 523 F. Supp. 2d 731 (N.D. Ill. Feb. 23, 2007), quoting Hines v. Davidowitz , 312 U.S.
52, 67 (1941).
56 See, e.g., U.S. C ONST., Art. I, s. 8 (power to declare war, maintain a military, and regulate foreign commerce); U.S. C ONST., Art. II, s. 2
(power to enter into treaties); U.S. C ONST., Art. III, s. 2 (power to hear case involving foreign states and citizens).
57 Zschernig v. Miller, 389 U.S. 429 (1968); American Ins. Ass’n. v. Garamendi, 539 U.S. 396 (2003) (finding that the President’s
powers in foreign policy were so great as to outweigh any need for a direct expression of preemption.)
58 Hines v. Davidowitz , 312 U.S. 52, 67 (1941).
59 Japan Line v. County of Los Angeles, 441 U.S. 434, 446 (1979).
60 See generally, Stephen Mulligan, Congressional Research Service, Constitutional Limits on States’ Power over Foreign Affairs, 3-4
(Aug. 15, 2022), availab le at https://crsreports.congress.gov/product/pdf/LSB/LSB10808 (last visited Feb. 2, 2024).
61 United States v. Davila-Mendoza, 972 F.3d 1264 (11th Cir. 2020).
62 “The premise […] is that the Commerce Clause analysis is identical, regardless of whether interstate or foreign commerce is i nvolved.
This premise […] must be rejected. When construing Congress’ power to ‘regulate Commerce with foreign Nations,’ a more extensive
constitutional inquiry is required.” Japan Line at 446.
63 U.S. CONST., Art. I, s. 8
64 Or. Waste Sys., Inc. v. Dep’t of Envtl. Quality of Or., 511 U.S. 93, 98 (1994).
65 See Nixon v. Administrator of General Services, 433 U.S. 425 (1977).
66 See CRS, supra note 24. See also 50 U.S.C. § 1701.
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which it branched, sits at the center of the modern U.S. sanctions regime. As of September 1, 2023,
Presidents had declared 69 national emergencies invoking IEEPA, 39 of which are ongoing. 67
Executive Orders 13,873,68 which prevents certain transactions with foreign adversaries, and 14,034,
which imposed a restriction on TikTok, invoked IEEPA authority in response to concerns about foreign
adversaries’ access to American digital data.69 However, the executive branch withdrew Executive
Order 14,034 with specific IEEPA-based restrictions on TikTok.70
Executive Order 13,873, references risks posed by foreign adversaries, which the order defines as any
foreign government or foreign person “engaged in a long-term pattern or serious instances of conduct
significantly adverse” to U.S. security or the safety of U.S. persons.71
Subsequently, the Department of Commerce identified China (including Hong Kong), Cuba, Iran, North
Korea, Russia, and the Nicolás Maduro regime in Venezuela as foreign adversaries. 72
Effect of the Bill
The bill defines the following terms:
"Algorithm" has the same meaning as in s. 501.2041(1), F.S.73
"Foreign-adversary-owned entity" or "entity" means a social media company that is more than
15 percent owned or controlled by nationals, governments, or corporations domiciled,
incorporated, or otherwise holding residence in a country designated as a foreign adversary. 74
The term "owned or controlled" means that a national, government, or corporation designated
as a foreign adversary has power:
o Over the election of the directors, or of individuals exercising similar functions, for the
entity; or
o To exercise influence over the management of the entity.
"Social or political advertising" means any advertisement on a social media platform that
discusses social or political issues or is intended to influence public opinion or electoral
outcomes.
The bill requires each foreign-adversary-owned entity operating a social media platform in Florida to:
Publicly disclose the core functional elements of the social media platform's content curation
and algorithms. Such disclosure must identify:
67 See Congressional Research Service, The International Emergency Economic Powers Act: Origins, Evolution, and Use (September
28, 2023), availab le at https://crsreports.congress.gov/product/pdf/R/R45618 (last visited Feb. 2, 2024).
68 The Supply Chain Rule implements Executive Orders 13873 and 14034, titled Securing the Information and Communications
Technology and Services Supply Chain (ICTS). Invoking National Emergencies Act (50 U.S.C. § 1601) and citing the Internationa l
Emergency Economic Powers Act (50 U.S.C. §1701), then-President Trump declared a national emergency because of the threat of
foreign adversaries exploiting vulnerabilities in ICTS. In response to this threat, Executive Order 13873 prohibits transacti ons involving
foreign-owned ICTS that present (1) an undue risk of sabotage or subversion to ICTS in the United States, (2) an undue risk of
catastrophic effects on the security or resiliency of critical infrastructure or the digital economy in the United States, or (3) an
unacceptable risk to U.S. national security or the security and safety of U.S. persons. The order delegates implementation to the
Department of Commerce. In June 2021, President Biden issued Executive Order 14034, which directed the Secretary of Commerce to
evaluate the risks posed by connected software applications, commonly called “apps.” The order identified additional criteria for
Commerce to consider when evaluating transactions involving apps under the Supply Chain Rule. Factors include the app’s ca pacity to
enable espionage and the sensitivity of data collected. In June 2023, Commerce published a final rule (88 FR 39353), effective July 17,
2023, that expressly includes apps in the definition of ICTS and adds app -specific risk factors to the Supply Chain Rule. See
Congressional Research Service, The Information and Communications Technology and Services (ICTS) Rule and Review Process
(June 22, 2023), availab le at https://crsreports.congress.gov/product/pdf/IF/IF11760 (last visited Feb. 2, 2024).
69 See Congressional Research Service, Montana’s TikTok Ban, an Injunction, and Pending Legal Actions (December 8, 2023),
availab le at
https://crsreports.congress.gov/product/pdf/LSB/LSB10972#:~:text=Commerce%20Clause%3A%20The%20court%20found,concept%2
0Montana%20did%20not%20contest (last visited Feb. 2, 2024).
70 Id.
71 Id.
72
15 CFR § 7.4.
73 Section 501.2041(1)(a), F.S. defines “algorithm” as a mathematical set of rules that specifies how a group of data behaves an d that
will assist in ranking search results and maintaining order or that is used in sorting or ranking content or material based on relevancy or
other factors instead of using published time or chronological order of such content or material.
74 As defined in 15 C.F.R. s. 7.4.
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o The factors that influence content ranking and visibility.
o Measures taken to address misinformation and harmful content.
o The process of personalization and targeting of content.
Make publicly available the source code of its algorithms through an open-source license.
Implement a user verification system for each user and organization that purchases
advertisements concerning social or political issues.
o The system must verify key identifying information, including:
Citizenship,
Residency, and
Age of the user or the individuals that own the organization.
o Once verified, the identity of the purchaser of each social or political advertisement must
be disclosed with the advertisement.
The bill provides that a foreign-adversary-owned entity operating a social media platform that violates
the requirements of the bill is liable up to $10,000 for each discrete violation.
The bill requires DLA to enforce the bill.
The bill, titled the "Transparency in Social Media Act," makes the following findings:
Social media platforms play a significant role in shaping public discourse and opinion.
Algorithms used by social media platforms can influence user behavior and content visibility.
Transparency in the functioning of such algorithms and in political and social advertising is vital
for safeguarding democratic values and user privacy.
Ownership of social media platforms by foreign entities can raise concerns regarding foreign
influence and data security.
The bill provides an effective date of July 1, 2024.
B. SECTION DIRECTORY:
Section 1: Creates s. 501.20411, F.S.; related to requirements for certain social media companies.
Section 2: Provides an effective date.
II. FISCAL ANALYSIS & ECONOMIC IMPACT STATEMENT
A. FISCAL IMPACT ON STATE GOVERNMENT:
1. Revenues:
There may be an increase in civil penalties collected by DLA.
2. Expenditures:
There may be an increase of regulatory costs to DLA from enforcing the bill.
B. FISCAL IMPACT ON LOCAL GOVERNMENTS:
1. Revenues:
None.
2. Expenditures:
None.
C. DIRECT ECONOMIC IMPACT ON PRIVATE SECTOR:
Certain social media entities will need to implement new procedures for sharing certain algorithm
information, user verification, and advertisement disclosures.
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D. FISCAL COMMENTS:
None.
III. COMMENTS
A. CONSTITUTIONAL ISSUES:
1. Applicability of Municipality/County Mandates Provision:
Not applicable. The bill does not appear to affect county or municipal governments.
2. Other:
Freedom of Speech
It is well established that a government regulation based on the content of speech is presumptively
invalid and will be upheld only if it is necessary to advance a compelling governmental interest,
precisely tailored to serve that interest, and is the least restrictive means available for establishing
that interest.75 The government bears the burden of demonstrating the constitutionality of any such
content-based regulation.76
The United States Supreme Court has recognized that First Amendment protection extends to
corporations.77 “This protection has been extended by explicit holdings to the context of political
speech.”78 Under these precedents, it is well settled that political speech does not lose First
Amendment protection “simply because its source is a corporation.”79 Generally, the government
may not require a corporation to host another’s speech absent a showing of a compelling state
interest.80
Supremacy Clause
The U.S. Constitution’s Supremacy Clause establishes that federal statutes, treaties, and the U.S.
Constitution are the “supreme Law of the Land.” 81
Federal law may preempt state action that thwarts federal law in three ways:
By an express statement of its intent to occupy a field. Express preemption need not be total,
however—it can preempt all state laws or only certain state laws.
With “a framework of regulation so pervasive that Congress left no room for the States to
supplement it or where the federal interest is so dominant that the federal system will be
assumed to preclude enforcement of state laws on the same subject.”82
Where state law conflicts, leaving an actor to choose whether to adhere to state or federal
law.83 The state law may also be subject to conflict preemption where it “stands as an
obstacle to the accomplishment and execution of the full purposes and objectives of
Congress.”84
75 Ashcroft 542 U.S. 656, at 665-66.
76 Ashcroft, 542 U.S. 656, at 660.
77 Citizens United, 558 U.S. 310, at 342.
78 Id.
79 Id.
80 Consolidated Edison Co., 447 U.S. 530; First National Bank of Boston, 438 U.S. 1978; Miami Herald Pub lishing Co., 418 U.S. 241;
Pacific Gas & Electric Co, 475 U.S.1.
81 U.S. C ONST., Art. VI, cl. 2.
82 Arizona v. U.S., 567 U.S. 387, 399.
83 Crosb y, 530 U.S. at 372.
84 Nat’l Foreign Trade Council, Inc., 523 F. Supp. 2d 731.
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The federal government’s authority to act in the realm of foreign affairs is vested by the U.S.
Constitution.85 State laws that intrude into this field of foreign affairs, even where not preempted by
prior federal action, improperly impact foreign affairs and are therefore invalid. 86 Courts have
generally held, however, that the state’s intrusion must have more than an “incidental effect” on
foreign affairs in order to be considered an encroachment onto the federal government’s powers.87
Article I, section 8, clause 3 of the U.S. Constitution grants Congress the power to “regulate
commerce with foreign nations ....” Conversely, this provision serves as a limitation on states’
authority to encroach onto the realm of foreign commerce where such action creates a risk of
conflicts with foreign governments or impedes the federal government’s ability to speak with one
voice in regulating industry affairs with foreign states. 88 The “dormant foreign commerce power” 89
voids state acts upon foreign commerce because of the Constitution's overriding concern for national
uniformity in foreign commerce—even in instances when Congress has not affirmatively acted. 90
Courts also generally subject state action to a heightened scrutiny that assumes the supremacy of
federal action in the realm of foreign relations.91
Additionally, Section 230 of the federal Communications Decency Act (CDA),92 in part, specifies that
“[n]o provider ... of an interactive computer service shall be treated as the publisher or speaker of
any information provided by another information content provider”93 and specifically prohibits all
inconsistent causes of action and liability imposed under any State or local law.94
Contracts
Article I, Section 10 of the United States Constitution prohibits a state from passing any law impairing
the obligation of contracts. Article I, Section 10 of the Florida Constitution also prohibits the passage
of laws impairing the obligation of contracts.
B. RULE-MAKING AUTHORITY:
There is no allowance for DLA to adopt rule pursuant to the bill.
C. DRAFTING ISSUES OR OTHER COMMENTS:
None.
IV. AMENDMENTS/COMMITTEE SUBSTITUTE CHANGES
On February 6, 2024, the Regulatory Reform & Economic Development Subcommittee adopted an
amendment and reported the bill favorably as a committee substitute. The committee substitute:
Provides a definition for “control” and “own,” to mean that a foreign adversary has power:
o Over the election of the directors, or of individuals exercising similar functions, for the entity;
or
o To exercise influence over the management of the entity.
Provides that a foreign adversary must have 15 percent ownership or control over the social media
company to be a foreign-adversary-owned entity.
85
See, e.g., U.S. CONST., Art. I, s. 8; U.S. CONST., Art. II, s. 2; U.S. CONST., Art. III, s. 2.
86 Zschernig, 389 U.S. 429; American Ins. Ass’n., 539 U.S. 396.
87 Hines, 312 U.S. 52, at 67.
88 Japan Line, 441 U.S. 434, at 446.
89 See generally, Stephen Mulligan, Congressional Research Service, Constitutional Limits on States’ Power over Foreign Affairs, 3-4
(Aug. 15, 2022), availab le at https://crsreports.congress.gov/product/pdf/LSB/LSB10808 (last visited Feb. 2, 2024).
90 United States v. Davila-Mendoza, 972 F.3d 1264.
91 “The premise […] is that the Commerce Clause analysis is identical, regardless of whether interstate or foreign commerce is involved.
This premise […] must be rejected. When construing Congress’ power to ‘regulate Commerce with foreign Nations,’ a more extens ive
constitutional inquiry is required.” Japan Line, 441 U.S. 434,at 446.
92 Force, 934 F.3d at 63.
93 47 U.S.C. § 230(c)(1).
94 47 U.S.C. § 230(e).
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This analysis is drafted to the committee substitute as passed by the Regulatory Reform & Economic
Development Subcommittee.
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F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
CS/HB 1541 2024
1 A bill to be entitled
2 An act relating to transparency in social media;
3 creating s. 501.20411, F.S.; providing a short title;
4 providing legislative findings; providing definitions;
5 requiring foreign-adversary-owned entities operating
6 social media platforms in the state to publicly
7 disclose specified information in a certain manner;
8 requiring foreign-adversary-owned entities operating
9 social media platforms to implement a user
10 verification system for certain entities; providing
11 penalties; requiring enforcement by the Department of
12 Legal Affairs; providing an effective date.
13
14 Be It Enacted by the Legislature of the State of Florida:
15
16 Section 1. Section 501.20411, Florida Statutes, is created
17 to read:
18 501.20411 Transparency in Social Media Act.—
19 (1) This section may be cited as the "Transparency in
20 Social Media Act."
21 (2) The Legislature finds that:
22 (a) Social media platforms play a significant role in
23 shaping public discourse and opinion.
24 (b) Algorithms used by social media platforms can
25 influence user behavior and content visibility.
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26 (c) Transparency in the functioning of such algorithms and
27 in political and social advertising is vital for safeguarding
28 democratic values and user privacy.
29 (d) Ownership of social media platforms by foreign
30 entities can raise concerns regarding foreign influence and data
31 security.
32 (3) For purposes of this section, the term:
33 (a) "Algorithm" has the same meaning as in s. 501.2041(1).
34 (b) "Foreign-adversary-owned entity" or "entity" means a
35 social media company that is more than 15-percent owned or
36 controlled by nationals, governments, or corporations domiciled,
37 incorporated, or otherwise holding residence in a country
38 designated as a foreign adversary under 15 C.F.R. s. 7.4. As
39 used in this paragraph, the term "owned or controlled" means
40 that a national, government, or corporation designated as a
41 foreign adversary has power:
42 1. Over the election of the directors, or of individuals
43 exercising similar functions, for the entity; or
44 2. To exercise influence over the management of the
45 entity.
46 (c) "Social media platform" means a public online service
47 that allows users to create and share or participate in social
48 networking.
49 (d) "Social or political advertising" means any
50 advertisement on a social media platform that discusses social
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51 or political issues or is intended to influence public opinion
52 or electoral outcomes.
53 (4)(a) Each foreign-adversary-owned entity operating a
54 social media platform in the state must publicly disclose the
55 core functional elements of the social media platform's content
56 curation and algorithms.
57 (b) The disclosure must identify:
58 1. The factors that influence content ranking and
59 visibility.
60 2. Measures taken to address misinformation and harmful
61 content.
62 3. The process of personalization and targeting of
63 content.
64 (5) Each foreign-adversary-owned entity operating a social
65 media platform must make publicly available the source code of
66 its algorithms through an open-source license.
67 (6)(a) Each foreign-adversary-owned entity operating a
68 social media platform must implement a user verification system
69 for each user and organization that purchases advertisements
70 concerning social or political issues. The system must verify
71 key identifying information, including citizenship, residency,
72 and age of the user or the individuals that own the
73 organization, as applicable.
74 (b) Once verified, the identity of the purchaser of each
75 social or political advertisement must be disclosed with the
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76 advertisement.
77 (7)(a) A foreign-adversary-owned entity operating a social
78 media platform that violates this section is liable up to
79 $10,000 for each discrete violation.
80 (b) The Department of Legal Affairs shall enforce this
81 section.
82 Section 2. This act shall take effect July 1, 2024.
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CS/CS/HB 1555
HOUSE OF REPRESENTATIVES STAFF ANALYSIS
BILL #: CS/CS/HB 1555 Cybersecurity
SPONSOR(S): State Administration & Technology Appropriations Subcommittee, Energy, Communications &
Cybersecurity Subcommittee, Giallombardo
TIED BILLS: IDEN./SIM. BILLS: CS/SB 1662
REFERENCE ACTION ANALYST STAFF DIRECTOR or
BUDGET/POLICY CHIEF
1) Energy, Communications & Cybersecurity 15 Y, 0 N, As CS Bauldree Keating
Subcommittee
2) State Administration & Technology 13 Y, 0 N, As CS Mullins Topp
Appropriations Subcommittee
3) Commerce Committee Bauldree Hamon
SUMMARY ANALYSIS
Over the last decade, cybersecurity has rapidly become a growing concern. Cyberattacks are growing in
frequency and severity. Currently, the Department of Management Services (DMS) oversees information
technology (IT) governance and security for the executive branch of state government. The Florida Digital
Service (FLDS) is housed within DMS and was established in 2020 to replace the Division of State
Technology. Through FLDS, DMS implements duties and policies for IT and cybersecurity for state agencies.
The bill:
Revises the duties of FLDS;
Provides definitions;
Provides that the state chief information officer (CIO), in consultation with the Secretary of DMS, must
designate a state chief technology officer and specifies the position’s responsibilities;
Requires state agencies to report all ransomware incidents, regardless of severity level, to the FLDS
Cybersecurity Operations Center (CSOC) as soon as possible, but no later than 12 hours after a
cybersecurity incident and no later than 6 hours after the discovery of a ransomware incident;
Requires local governments to report any cybersecurity incident determined to be level 3, 4, or 5 to the
CSOC rather than to the Cybercrime Office and the sheriff who has jurisdiction over the local
government;
Requires the CSOC to immediately notify the Cybercrime Office of the Florida Department of Law
Enforcement of a reported incident;
Requires the CSOC to immediately the state chief information security officer of a reported incident;
and
Revises the mission, goals, and responsibilities of the Florida Center for Cybersecurity.
The bill has an indeterminate fiscal impact on state expenditures. See Fiscal Comments.
The bill provides an effective date of July 1, 2024.
This docum ent does not reflect the intent or official position of the bill sponsor or House of Representatives .
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DATE: 2/20/2024
FULL ANALYSIS
I. SUBSTANTIVE ANALYSIS
A. EFFECT OF PROPOSED CHANGES:
Current Situation
Over the last decade, cybersecurity has rapidly become a growing concern. Cyberattacks are growing
in frequency and severity. Cybercrime was expected to inflict $8 trillion worth of damage globally in
2023.1 The United States is often a target of cyberattacks, including attacks on critical infrastructure,
and has been a target of more significant cyberattacks 2 over the last 14 years than any other country.3
The Colonial Pipeline is an example of critical infrastructure that was attacked, disrupting what is
arguably the nation’s most important fuel conduit.4
Ransomware is a type of cybersecurity incident where malware 5 that is designed to encrypt files on a
device renders the files and the systems that rely on them unusable. In other words, critical information
is no longer accessible. During a ransomware attack, malicious actors demand a ransom in exchange
for regained access through decryption. If the ransom is not paid, the ransomware actors will often
threaten to sell or leak the data or authentication information. Even if the ransom is paid, there is no
guarantee that the bad actor will follow through with decryption.
In recent years, ransomware incidents have become increasingly prevalent among the nation’s state,
local, tribal, and territorial government entities and critical infrastructure organizations.6 For example,
Tallahassee Memorial Hospital was hit by a ransomware attack early in 2023, and the hospital’s
systems were forced to shut down, impacting many local residents in need of medical care. 7 Likewise,
Tampa General Hospital detected a data breach in May of 2023, which may have compromised the
data of up to 1.2 million patients.8
IT and Cybersecurity Management
The Department of Management Services (DMS) oversees information technology (IT) 9 governance
and security for the executive branch in Florida.10 The Florida Digital Service (FLDS) is housed within
1 Cybercrime Magazine, Cyb ercrime to Cost the World $8 Trillion Annually in 2023, https://cybersecurityventures.com/cybercrime-to-
cost-the-world-8-trillion-annually-in-2023/ (last visited Jan. 23, 2024).
2
“Significant cyber-attacks” are defined as cyber-attacks on a country’s government agencies, defense, and high -tech companies, or
economic crimes with losses equating to more than a million dollars. FRA Conferences, Study: U.S. Largest Target for Significant
Cyb er-Attacks, https://www.fraconferences.com/insights-articles/compliance/study-us-largest-target-for-significant-cyber-
attacks/#:~:text=The%20United%20States%20has%20been%20on%20the%20receiving,article%20is%20from%20FRA%27s%20sister
%20company%2C%20Compliance%20Week (last visited Jan. 23, 2024).
3 Id.
4
S&P Global, Pipeline operators must start reporting cyb erattacks to government: TSA orders,
https://www.spglobal.com/commodityinsights/en/market-insights/latest-news/electric-power/052721-pipeline-operators-must-start-
reporting-cyberattacks-to-government-tsa-
orders?utm_campaign=corporatepro&utm_medium=contentdigest&utm_source=esgma y2021 (last visited Jan. 23, 2024).
5 “Malware” means hardware, firmware, or software that is intentionally included or inserted in a system for a harmful purpose.
https://csrc.nist.gov/glossary/term/malware (last visited Jan. 23, 2024).
6 Cybersecurity and Infrastructure Agency, Ransomware 101, https://www.cisa.gov/stopransomware/ransomware-101 (last visited Jan.
23, 2024).
7 Tallahassee Democrat, TMH says it has taken ‘major step’ toward restoration after cyb ersecurity incident (Feb. 15, 2023)
https://www.tallahassee.com/story/news/local/2023/02/14/tmh-update-hospital-has-taken-major-step-toward-restoration/69904510007/
(last visited Jan. 23, 2023).
8 Alessandro Mascellino, Infosecurity Magazine, Tampa General Hospital Data Breach Impacts 1.2 Million Patients (Jul. 24, 2023),
https://www.infosecurity-magazine.com/news/tampa-hospital-data-breach/ (last visited Jan. 24, 2023).
9 The term “information technology” means equipment, hardware, software, firmware, programs, systems, networks, infrastructure,
media, and related material used to automatically, electronically, and wirelessly collect, receive, access, transmit, display, store, record,
retrieve, analyze, evaluate, process, classify, manipulate, manage, assimilate, control, co mmunicate, exchange, convert, converge,
interface, switch, or disseminate information of any kind or form. S. 282.0041(19), F.S.
10 See s. 20.22, F.S.
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DMS and was established in 2020 to replace the Division of State Technology. 11 FLDS works under
DMS to implement policies for IT and cybersecurity for state agencies.12
The head of FLDS is appointed by the Secretary of Management Services 13 and serves as the state
chief information officer (CIO).14 The CIO must have at least five years of experience in the
development of IT system strategic planning and IT policy and, preferably, have leadership-level
experience in the design, development, and deployment of interoperable software and data solutions. 15
FLDS must propose innovative solutions that securely modernize state government, including
technology and information services, to achieve value through digital transformation and
interoperability, and to fully support Florida’s cloud first policy.16
DMS, through FLDS, has the following powers, duties, and functions:
Develop IT policy for the management of the state’s IT resources;
Develop an enterprise architecture;
Establish project management and oversight standards with which state agencies must comply
when implementing IT projects;
Perform project oversight on all state agency IT projects that have a total cost of $10 million or
more and that are funded in the General Appropriations Act or any other law; and
Identify opportunities for standardization and consolidation of IT services that support
interoperability, Florida’s cloud first policy, and business functions and operations that are
common across state agencies.17
State Cybersecurity Act
In 2021, the Legislature passed the State Cybersecurity Act, 18 which requires DMS and the heads of
the state agencies 19 to meet certain requirements to enhance the cybersecurity20 of the state agencies.
DMS is tasked with completing the following, through FLDS:
Establishing standards for assessing agency cybersecurity risks;
Adopting rules to mitigate risk, support a security governance framework, and safeguard agency
digital assets, data,21 information, and IT resources;22
Designating a chief information security officer (CISO);
Developing and annually updating a statewide cybersecurity strategic plan to address matters
such as identification and mitigation of risk, protections against threats, and tactical risk
detection for cyber incidents;23
Developing and publishing for use by state agencies a cybersecurity governance framework;
Assisting the state agencies in complying with the State Cybersecurity Act;
Annually providing training on cybersecurity for managers and team members;
Annually reviewing the strategic and operational cybersecurity plans of state agencies;
Tracking the state agencies’ implementation of remediation plans;
11 Ch. 2020-161, L.O.F.
12 See s. 20.22(2)(b), F.S.
13
The Secretary of Management Services serves as the head of DMS and is appointed by the Governor, subject to confirmation by the
Senate. S. 20.22(1), F.S.
14 S. 282.0051(2)(a), F.S.
15 Id.
16 S. 282.0051(1), F.S.
17
Id.
18 Ch. 2012-234, L.O.F.
19 For purposes of the State Cybersecurity Act, the term “state agency” includes the Department of Legal Affairs, the Department of
Agriculture and Consumer Services, and the Department of Financial Services. S. 282.318(2), F.S.
20 “Cybersecurity” means the protection afforded to an automated information system in order to attain the applicable objectives of
preserving the confidentiality, integrity, and availability of data, information, and IT resources. S. 282.0041(8), F.S.
21 “Data” means a subset of structured information in a format that allows such information to b e electronically retrieved and transmitted.
S. 282.0041(9), F.S.
22 “Information technology resources” means data processing hardware and software and services, communications, supplies,
personnel, facility resources, maintenance, and training. S. 282.0041 (22), F.S.
23 “Incident” means a violation or imminent threat of violation, whether such violation is accidental or deliberate, of IT resou rces,
security, policies, or practices. An imminent threat of violation refers to a situation in which the state agency has a fact ual basis for
believing that a specific incident is about to occur. S. 282.0041(19), F.S.
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Providing cybersecurity training to all state agency technology professionals that develops,
assesses, and documents competencies by role and skill level;
Maintaining a Cybersecurity Operations Center (CSOC) led by the CISO to serve as a
clearinghouse for threat information and coordinate with FDLE to support responses to
incidents; and
Leading an Emergency Support Function under the state emergency management plan. 24
The State Cybersecurity Act requires the head of each state agency to designate an information
security manager to administer the state agency’s cybersecurity program. 25 The head of the agency
has additional tasks in protecting against cybersecurity threats as follows:
Establish a cybersecurity incident response team with FLDS and the Cybercrime Office in FDLE,
which must immediately report all confirmed or suspected incidents to the CISO;
Annually submit to DMS the state agency’s strategic and operational cybersecurity plans;
Conduct and update a comprehensive risk assessment to determine the security threats;
Develop and update written internal policies and procedures for reporting cyber incidents;
Implement safeguards and risk assessment remediation plans to address identified risks;
Ensure internal audits and evaluations of the agency’s cybersecurity program are conducted;
Ensure that the cybersecurity requirements for the solicitation, contracts, and service-level
agreement of IT and IT resources meet or exceed applicable state and federal laws, regulations,
and standards for cybersecurity, including the National Institute of Standards and Technology
(NIST)26 cybersecurity framework;
Provide cybersecurity training to all agency employees within 30 days of employment; and
Develop a process that is consistent with the rules and guidelines established by FLDS for
detecting, reporting, and responding to threats, breaches, or cybersecurity incidents. 27
Florida Cybersecurity Advisory Council
The Florida Cybersecurity Advisory Council28 (CAC) within DMS29 assists state agencies in protecting
IT resources from cyber threats and incidents.30 The CAC must assist FLDS in implementing best
cybersecurity practices, taking into consideration the final recommendations of the Florida
Cybersecurity Task Force – a task force created to review and assess the state’s cybersecurity
infrastructure, governance, and operations.31 The CAC meets at least quarterly to:
Review existing state agency cybersecurity policies;
Assess ongoing risks to state agency IT;
Recommend a reporting and information sharing system to notify state agencies of new risks;
Recommend data breach simulation exercises;
Assist FLDS in developing cybersecurity best practice recommendations; and
Examine inconsistencies between state and federal law regarding cybersecurity. 32
24 Ch. 2021-234, L.O.F.
25 S. 282.318(4)(a), F.S.
26 NIST, otherwise known as the National Institute of Standards and Technology, “is a non -regulatory government agency that develops
technology, metrics, and standards to drive innovation and economic competitiveness at U.S.-based organizations in the science and
technology industry.” Nate Lord, What is NIST Compliance, DataInsider (Dec. 1, 2020), https://www.digitalguardian.com/blog/what-nist-
compliance (last visited Jan. 23, 2024).
27 S. 282.318(4), F.S.
28 The CAC is comprised of: the Lieutenant Governor or his or her designee; the state CIO; the state chief information security officer;
the director of the Division of Emergency Management or his or her designee; a representative of the computer crime center of the
Department of Law Enforcement, appointed by the executive director of the Department of Law Enforcement; a representative of the
Florida Fusion Center of the Department of Law Enforcement, appointed by the executive director of the Department of Law
Enforcement; the Chief Inspector General; up to two representatives from institutions of higher education located in this sta te,
appointed by the Governor; three representatives from critical infrastructure sectors, one of whom must be from a water treatment
facility, appointed by the Governor; four representatives of the private sector with senior level experience in cybersecurity or software
engineering from within the finance, energy, health care, and transportation sectors, appointed by the Governor; and two
representatives with expertise on emerging technology, with one appointed by the President of the Senate and one appointed by the
Speaker of the House of Representatives. S, 282.319(3), F.S.
29 S. 282.319(1), F.S.
30 S. 282.319(2), F.S.
31 S. 282.319(3), F.S.
32 S. 282.319(9), F.S.
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The CAC must work with NIST and other federal agencies, private sector businesses, and private
security experts to identify which local infrastructure sectors, not covered by federal law, are at the
greatest risk of cyber-attacks and to identify categories of critical infrastructure as critical cyber
infrastructure if cyber damage to the infrastructure could result in catastrophic consequences. 33
The CAC must also prepare and submit a comprehensive report to the Governor, the President of the
Senate, and the Speaker of the House of Representatives that includes data, trends, analysis, findings,
and recommendations for state and local action regarding ransomware incidents that includes:
Descriptive statistics, including the amount of ransom requested, duration of the incident, and
overall monetary cost to taxpayers of the incident;
A detailed statistical analysis of the circumstances that led to the ransomware incident which
does not include the name of the state agency or local government, network information, or
system identifying information;
Statistical analysis of the level of cybersecurity employee training and frequency of data backup
for the state agencies or local governments that reported incidents;
Specific issues identified with current policy, procedure, rule, or statute and recommendations to
address those issues; and
Other recommendations to prevent ransomware incidents.
Cyber Incident Response
The National Cyber Incident Response Plan (NCIRP) was developed according to the direction of
Presidential Policy Directive-41,34 by the U.S. Department of Homeland Security. The NCIRP is part of
the broader National Preparedness System and establishes the strategic framework for a whole-of-
Nation approach to mitigating, responding to, and recovering from cybersecurity incidents posing risk to
critical infrastructure.35 The NCIRP was developed in coordination with federal, state, local, and private
sector entities and is designed to interface with industry best practice standards for cybersecurity,
including the NIST Cybersecurity Framework.
The NCIRP adopted a schema for describing the severity of cybersecurity incidents affecting the U.S.
The schema establishes a common framework to evaluate and assess cybersecurity incidents to
ensure that all departments and agencies have a common view of the severity of a given incident;
urgency required for responding to a given incident; seniority level necessary for coordinating response
efforts; and level of investment required for response efforts. 36
The severity level of a cybersecurity incident in accordance with the NCIRP is determined as follows:
Level 5: An emergency-level incident within the specified jurisdiction if the incident poses an
imminent threat to the provision of wide-scale critical infrastructure services; national, state, or
local security; or the lives of the country’s, state’s, or local government’s citizens.
Level 4: A severe-level incident if the incident is likely to result in a significant impact within the
affected jurisdiction which affects the public health or safety; national, state, or local security;
economic security; or individual civil liberties.
Level 3: A high-level incident if the incident is likely to result in a demonstrable impact in the
affected jurisdiction to public health or safety; national, state, or local security; economic
security; civil liberties; or public confidence.
Level 2: A medium-level incident if the incident may impact public health or safety; national,
state, or local security; economic security; civil liberties; or public confidence.
33 S. 282.319(10), F.S.
34 Annex for PPD-41: U.S. Cyb er Incident Coordination, available at: https://obamawhitehouse.archives.gov/the-press-
office/2016/07/26/annex-presidential-policy-directive-united-states-cyber-incident (last visited Jan. 23, 2024).
35 Cybersecurity & Infrastructure Security Agency, Cyb ersecurity Incident Response, available at
https://www.cisa.gov/topics/cybersecurity-best-practices/organizations-and-cyber-safety/cybersecurity-incident-
response#:~:text=%20National%20Cyber%20Incident%20Response%20Plan%20%28NCIRP%29%20The,incidents%20and%20how%
20those%20activities%20all%20fit%20together (last visited Jan. 23, 2024).
36 Id.
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Level 1: A low-level incident if the incident is unlikely to impact public health or safety; national,
state, or local security; economic security; or public confidence.37
State agencies and local governments in Florida, must report all ransomware incidents and any
cybersecurity incidents at severity levels 3, 4, and 5 as soon as possible to the CSOC, but no later than
48 hours after discovery of a cybersecurity incident and no later than 12 hours after discovery of a
ransomware incident.38 CSOC must notify the President of the Senate and the Speaker of the House of
Representatives of any severity level 3, 4, or 5 incident as soon as possible, but no later than 12 hours
after receiving the incident report from the state agency or local government. 39 For state agency
incidents at severity levels 1 and 2, the agency or local government must report these incidents to
CSOC and the Cybercrime Office at FDLE as soon as possible. 40
The notification must include a high-level description of the incident and the likely effects. An incident
report for a cybersecurity or ransomware incident by a state agency or local government must include,
at a minimum:
A summary of the facts surrounding the cybersecurity or ransomware incident;
The date on which the state agency or local government most recently backed up its data, the
physical location of the backup, if the backup was affected, and if the backup was created
using cloud computing;
The types of data compromised by the cybersecurity or ransomware incident;
The estimated fiscal impact of the cybersecurity or ransomware incident;
In the case of a ransomware incident, the details of the ransom demanded; and
If the reporting entity is a local government, a statement requesting or declining assistance
from CSOC, FDLE Cybercrime Office, or sheriff.41
In addition, CSOC must provide consolidated incident reports to the President of the Senate, Speaker
of the House of Representatives, and the CAC on a quarterly basis. 42 The consolidated incident reports
to the CAC may not contain any state agency or local government name, network information, or
system identifying information, but must contain sufficient relevant information to allow the CAC to fulfill
its responsibilities.43
State agencies and local governments must submit an after-action report to FLDS within one week of
the remediation of a cybersecurity or ransomware incident. 44 The report must summarize the incident,
state the resolution, and any insights from the incident.
Florida Center for Cybersecurity
The Florida Center for Cybersecurity (Cyber Florida) is housed within the University of South Florida
(USF) and was first established in 2014.45 The goals of Cyber Florida are to:46
Position Florida as the national leader in cybersecurity and its related workforce through
education, research, and community engagement.
Assist in the creation of jobs in the state’s cybersecurity industry and enhance the existing
cybersecurity workforce.
Act as a cooperative facilitator for state business and higher education communities to share
cybersecurity knowledge, resources, and training.
Seek out partnerships with major military installations to assist, when possible, in homeland
cybersecurity defense initiatives.
37 S. 282.318(3)(c)9.a, F.S.
38 S. 282.318(3)(c)9.c, F.S.
39 S. 282.318(3)(c)9.c.(II), F.S.
40 S. 282.318(3)(c)(9)(d), F.S.
41 S. 282.318(3)(c)9.b, F.S.
42 S. 282.318(3)(c)9.e, F.S.
43 Id.
44 S. 282.318(4)(k), F.S.
45 Ch. 2014-56, L.O.F.
46 S. 1004.444, F.S.
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Attract cybersecurity companies to the state with an emphasis on defense, finance, health care,
transportation, and utility sectors.
Effect of the Bill
Definitions
The bill provides the following definitions:
"As a service" means the contracting with or outsourcing to a third party of a defined role or
function as a means of delivery.
"Cloud provider" means an entity that provides cloud-computing services.
“Criminal Justice Agency” has the same meaning as defined in s. 943.045 (11), F.S.
The bill also defines “enterprise digital data” as information held by a state agency in electronic form
that is deemed to be data owned by the state and held for state purposes by the state agency.
DMS and FLDS Duties
The bill revises the duties of FLDS to include:
Leading enterprise IT and cybersecurity efforts.
Proposing and evaluating solutions pursuant to interagency agreements that securely
modernize state government.
The bill provides that the state CIO, in consultation with the Secretary of DMS, must designate a state
chief technology officer who is responsible for the following:
Establishing and maintaining an enterprise architecture framework that ensures IT investments
align with the state’s strategic objectives and initiatives.
Conducting comprehensive evaluations of potential technological solutions and cultivating
strategic partnerships, internally with state enterprise agencies and externally with the private
sector, to leverage collective expertise, foster collaboration, and advance the state’s
technological capabilities.
Supervising program management of certain enterprise IT initiatives; providing advisory support
and oversight for technology-related projects; and continuously identifying and recommending
best practices to optimize outcomes of technology projects and enhance the enterprise’s
technological efficiency and effectiveness.
Under the bill, all confirmed or suspected incidents or threats to state IT resources must be reported by
the state CIO, in consultation with the state CISO, to the Governor.
The bill authorizes FLDS to obtain immediate and complete access to state agency accounts and
instances that hold enterprise digital data and to direct, in consultation with the state agency that holds
the particular data, measures to assess, monitor, and protect the security of such data. DMS is not
authorized to view, modify, transfer, or otherwise duplicate enterprise digital data except as required to
respond to a cyber incident or as agreed to in writing by the state agency that holds the particular
enterprise digital data. The bill exempts all criminal justice entities from this FLDS access authorization.
State Agency Incident Reporting and Responsibilities
The bill requires state agencies to report all ransomware incidents, regardless of severity level, to
CSOC as soon as possible, but no later than 12 hours after a cybersecurity incident and no later than 6
hours after the discovery of a ransomware incident.
Under the bill, CSOC must immediately notify the Cybercrime Office of FDLE of a reported incident and
provide regular reports on the status of the incident, preserve forensic data to support the subsequent
investigation, and provide aid to the investigative efforts of the Cybercrime Office, upon request, if the
state CISO finds that the investigation does not impede remediation of the incident and that there is no
risk to the public and no risk to critical state functions.
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