House Staff Analysis: PCS for CS/HB 939 Consumer Protection (Commerce Committee)
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- 2024 3220 Commerce Committee Proposed Committee Bill Analyses Fn Pcs0939 Com
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- 2024 3220 Commerce Committee Proposed Committee Bill Analyses Fn Pcs0939 Com
Summary
A Florida House of Representatives staff analysis of the PCS for CS/HB 939, Consumer Protection, sponsored by the Commerce Committee and dated February 21, 2024. The bill summary lists changes on Form 1099-K reporting by third-party settlement organizations to the Florida Department of Revenue, complaints to the Office of Financial Regulation over bad faith restriction of account access, delayed disbursements where a financial institution suspects exploitation of a vulnerable adult, and cancellation rights in roof repair contracts during a declared state of emergency. It also covers continuing education for CPAs auditing insurers, public adjuster contracts, short-term health insurance disclosures, loss assessment coverage and fireworks safety standards. The analysis states the bill has no impact on local government or state revenues and 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
Cite this document
“House Staff Analysis: PCS for CS/HB 939 Consumer Protection (Commerce Committee).”
Original at www.flhouse.gov. Archived at Pandemic Darlings, https://pandemicdarlings.com/source-documents/2024-3220-commerce-committee-proposed-committee-bill-analyses-fn-pcs0939-com/
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HOUSE OF REPRESENTATIVES STAFF ANALYSIS
BILL #: PCS for CS/HB 939 Consumer Protection
SPONSOR(S): Commerce Committee
TIED BILLS: IDEN./SIM. BILLS:
REFERENCE ACTION ANALYST STAFF DIRECTOR or
BUDGET/POLICY CHIEF
Orig. Comm.: Commerce Committee Fortenberry Hamon
SUMMARY ANALYSIS
The bill makes changes related to consumer protection, including:
Form 1099-K Reporting Requirements: third-party settlement organizations, like PayPal or Apple Pay, that
conduct transactions involving a payee with a Florida address must create a method for payees to identify
transactions for goods and services and report that information to the Florida Department of Revenue.
Bad Faith Termination of Account Access by Financial Institutions: allows a customer or member of a
financial institution who reasonably believes a financial institution has restricted account access in bad faith
to file a complaint with the Office of Financial Regulation.
Protection of Specified Adults: allows a financial institution to delay a disbursement or transaction from an
account of a vulnerable adult for a specified time period if the financial institution suspects financial
exploitation of such vulnerable adult.
Contracts for Roof Repairs Following Emergencies: requires that a contractor that enters into a contract
to replace or repair the roof of a residential property during a declared state of emergency by the Governor
include specific language in the contract that allows the property owner to cancel the con tract by the earlier
of ten days following execution or the official start date that the work on the roof will commence; the property
owner must send notice of cancellation by certified mail or another form that provides proof of mailing.
Depository Institutions: expands the definition of depository institution in commercial financing disclosure law.
Continuing Education Requirements for Certified Public Accountants: requires that the certified public
accountant (CPA) that prepares the audit that an insurer submits to the Office of Insurance Regulation as
part of its annual report must have completed at least four hours of insurance -related continuing education
during each two-year continuing education cycle.
Public Adjusters: requires that public adjusters’ contracts for property and casualty claims contain the
license numbers of the public adjusting firms by which they are employed .
Notice of Change in Policy Terms: requires that the renewal notice sent to the named insured containing
changes in policy terms must be presented in bold type face of not less than 14 points.
Short-term Health Insurance: updates the disclosures that must be provided to a purchaser of a sh ort-term
plan; also requires that purchasers of short-term plans receive the required disclosures in writing or
electronically, and sign them.
Loss Assessment Coverage: establishes that a claim resulting from a loss assessment is considered to
have occurred on the date that condominium association sends a loss assessment notice to a unit owner.
Fireworks Safety Standards: updates the state standards for outdoor display of fireworks to the current
edition of the National Fire Protection Association 1123, Code for Fireworks Displays.
The bill has no impact on local government revenues or expenditures or state revenues. It may have an
indeterminate negative impact on state expenditures, and a positive or negative 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:
Form 1099-K Reporting Requirements
Background
Section 6050W of the Internal Revenue Code requires certain entities to file a return each year
providing information about payments made by credit card or third-party merchants.1 The return is Form
1099-K, and is required to be filed for each calendar year on or before the last day of February of the
year following the transactions.2
Reportable transactions include any transaction where the payment method is a payment card (credit
card, debit card, or similar) or a third-party payment system (like PayPal or Apple Pay). The return is
filed by the payment settlement entity (e.g., a bank, credit card company, or payment platform like
PayPal) and a copy is provided to dealers who have payment card transactions (credit card sales) of
any amount, or who have third-party payment transactions (e.g., PayPal) in excess of $20,000 over
more than 200 transactions.3 These sales should be included in the payee’s gross income on their tax
returns for the year.
Some states require payment settlement entities to submit a copy of any Form 1099-K related to sales
in that state or for residents of that state, if the IRS already requires the Form 1099-K to be filed.
Examples include Alabama,4 Tennessee,5 North Carolina,6 and New York.7
Since 2020, entities required to file Form 1099-K with the federal government must also file a copy with
the Florida Department of Revenue (DOR) electronically within 30 days of filing the federal return.8 The
copy can be either the exact information filed on the full federal return, or a copy of the information
limited to participating payees with an address in Florida.9
Effect of the Bill
The bill provides that for the purposes of complying with a reporting requirement to the Florida
Department of Revenue, third-party settlement organizations that conduct transactions involving a
participating payee with an address in Florida to create a method for payees to identify whether their
transactions are for goods and services or personal purposes. This will allow taxable transactions
related to goods and services to be readily identifiable and help avoid overpayment or underpayment of
taxes. The information submitted to DOR in Form 1099-K must be limited to transactions identified for
goods and services.
Bad Faith Termination of Account Access by Financial Institutions
Background
Financial Institutions Codes
1 26 U.S. Code s. 6050W.
2 https://www.irs.gov/forms -pubs/about-form-1099-k (last visited Jan. 15, 2024).
3 https://www.irs.gov/businesses/understanding-your-form-1099-k (last visited Jan. 15, 2024).
4 https://www.revenue.alabama.gov/new-1099-k-filing-requirement/ (last visited Jan. 15, 2024).
5 https://www.tn.gov/content/dam/tn/revenue/documents/notices/sales/sales16-01.pdf (last visited Jan. 15, 2024).
6 https://www.ncdor.gov/file-pay/guidance-information-reporting#payment-settlement-entity-(1099k) (last visited Jan. 15, 2024).
7 https://www.tax.ny.gov/bus/multi/reporting_requiremts.htm (last visited Jan. 15, 2024).
8 s. 212.134(1), F.S.
9 Id.
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Florida’s Financial Institutions Codes are codified under Title XXXVIII of the Florida Statutes. 10 The
Financial Institutions Codes apply to all state-authorized and state-chartered financial institutions and to
the enforcement of all laws relating to state-authorized and state-chartered financial institutions.11 The
Financial Institutions Codes define the term “financial institution” as a state or federal savings or thrift
association, bank, savings bank, trust company, international bank agency, international banking
corporation, international branch, international representative office, international administrative office,
international trust entity, international trust company representative office, qualified limited service
affiliate, credit union, or an agreement corporation operating pursuant to s. 25 of the Federal Reserve
Act, 12 U.S.C. ss. 601 et seq. or Edge Act corporation organized pursuant to s. 25(a) of the Federal
Reserve Act, 12 U.S.C. ss. 611 et seq.12
A primary purpose of the Financial Institutions Codes is to provide for and promote the safe and sound
conduct of the financial services industry in Florida. 13 The specific chapters under the Financial
Institutions Codes are:
Ch. 655, F.S. – Financial Institutions Generally
Ch. 657, F.S. – Credit Unions
Ch. 658, F.S. – Banks and Trust Companies
Ch. 660, F.S. – Trust Business
Ch. 662, F.S. – Family Trust Companies
Ch. 663, F.S. – International Banking
Ch. 665, F.S. – Associations
Ch. 667, F.S. – Savings Banks
Office of Financial Regulation
The Office of Financial Regulation (OFR) is the regulatory authority for Florida’s financial services
industry.14 OFR reports to the Financial Services Commission (Commission) which is made up of the
Governor and the members of the Florida Cabinet: the Chief Financial Officer (CFO), Attorney General
(AG), and Agriculture Commissioner.15 OFR enforces and administers the Financial Institutions Codes;
is responsible for supervising banks, credit unions, savings associations, and international bank
agencies; and licenses and regulates non-depository finance companies and the securities industry. 16
Bank Secrecy Act
The federal Bank Secrecy Act (BSA)17 establishes reporting, recordkeeping, and related requirements
for federal and state-chartered18 financial institutions to help detect and prevent money laundering. 19
Specifically, the BSA and other anti-money laundering regulations (BSA/AML) require financial
institutions to, among other things, keep records of cash purchases of negotiable instruments and file
reports of cash transactions exceeding $10,000 (daily aggregate amount). 20
Under the BSA/AML laws, financial institutions must also:
establish effective BSA compliance programs;
establish effective customer due diligence systems and monitoring programs;
10 S. 655.005(1)(k), F.S.
11 S. 655.001(1), F.S.
12
S. 655.005(i), F.S.
13 S. 655.001(2), F.S.
14 Office of Financial Regulation (OFR), Ab out Our Agency, https://flofr.gov/sitePages/AboutOFR.htm (last visited Dec. 4, 2023).
15 Id.
16 Department of Financial Services, Financial Services Commission, https://www.myfloridacfo.com/about/about-dfs/commission (last
visited Dec. 4, 2023). See also, s. 655.012, F.S.
17 31 U.S.C. § 5311 et seq.
18 See, 12 C.F.R. § 326.8 (sets forth requirements for state-chartered banks to establish and maintain procedures to ensure and
monitor their compliance with the BSA). See also, 12 C.F.R. § 353 (establishes requirements for state-chartered banks to file a
suspicious activity report under certain circumstances).
19 U.S. Treasury Financial Crimes Enforcement Network, FinCEN’s Legal Authorities, https://www.fincen.gov/resources/fincens-legal-
authorities (last visited Dec. 6, 2023).
20 Id.
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screen against Office of Foreign Assets Control lists and other government lists;
establish an effective suspicious activity monitoring and reporting process; and
develop risk-based anti-money laundering programs.21
The U.S. Office of the Comptroller of Currency regularly conducts examinations of national banks,
federal branches, federal savings associations, and agencies of foreign banks in the U.S. to determine
compliance with BSA/AML laws.22
SUSPICIOUS ACTIVITY REPORTS
In addition to the other requirements under the BSA/AML laws, financial institutions are also required to
report suspicious activity that might signify money laundering, tax evasion, or other criminal activities. 23
These types of reports are known as “suspicious activity reports” (SAR) and are filed with the Financial
Crimes Enforcement Network (FinCEN), a bureau of the U.S. Department of the Treasury, using
FinCEN’s BSA E-filing system.24
Under this requirement, a financial institution is required to file an SAR no later than 30 calendar days
after the date of initial detection of facts that may constitute a basis for filing an SAR. 25 For instances
where no suspect was identified on the date of the incident requiring the filing, a financial institution
may delay filing an SAR for an additional 30 calendar days to identify a suspect. 26 However, in no case
shall reporting be delayed more than 60 calendar days after the date of initial detection of a reportable
transaction.27
Federal Trade Commission Act
Section 5 of the Federal Trade Commission Act (FTC Act), 15 U.S.C. § 45, prohibits “unfair or
deceptive acts or practices in or affecting commerce.” 28 The prohibition applies to all persons engaged
in commerce, including state-chartered banks.29 The Board of Governors of the Federal Reserve
System have authority under federal law 30 to take appropriate action when unfair or deceptive acts or
practices are discovered, regardless of state authorities having primary responsibility for enforcing state
statutes against unfair or deceptive acts or practices. 31
Under the FTC Act, an act or practice is considered unfair if it:
Causes or is likely to cause substantial injury to consumers;
Cannot be reasonably avoided by consumers; and
Is not outweighed by countervailing benefits to consumers or to competition. 32
According to the Board of Governors of the Federal Reserve System, there may be circumstances in
which an act or practice violates section 5 of the FTC Act even though the institution is in technical
compliance with other applicable laws, such as the BSA/AML laws. 33 Moreover, the policies behind the
BSA/AML laws could arguably outweigh a finding that a financial institution committed an unfair act
under section 5 of the FTC Act.
21 U.S. Office of the Comptroller of the Currency, Bank Secrecy Act, https://www.occ.treas.gov/topics/supervision-and-
examination/bsa/index-bsa.html (last visited Dec. 5, 2023).
22 Id.
23 U.S. Treasury Financial Crimes Enforcement Network, supra note 19.
24
U.S. Office of the Comptroller of the Currency, Suspicious Activity Report Program, https://www.occ.treas.gov/publications-and-
resources/forms/sar-program/index-sar-program.html (last visited Dec. 5, 2023).
25 Id.
26 Id.
27 Id.
28 Board of Governors of the Federal Reserve System (Board of Governors), Division of Consumer and Community Affairs, Federal
Trade Commission Act (last updated Dec. 2016), p. 1, https://www.federalreserve.gov/boarddocs/supmanual/cch/ftca.pdf (last visited
Feb. 6, 2024).
29 Id.
30 Section 8 of the Federal Deposit Insurance Act, 12 U.S.C.A. § 1811, et seq.
31 Board of Governors, Division of Consumer and Community Affairs, supra note 28, p. 1.
32 Id.
33 Id. at 7.
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Florida Control of Money-Laundering and Terrorist Financing in Financial Institutions Act
The purpose of the Florida Control of Money-Laundering and Terrorist Financing in Financial
Institutions Act34 (Act), s. 655.50, F.S., is to require submission to OFR of certain reports and the
maintenance of certain records of customers, accounts, and transactions involving currency or
monetary instruments or suspicious activities if:35
such reports and records deter using financial institutions to conceal, move, or provide proceeds
obtained from or intended for criminal or terrorist activities; or
such reports and records have a high degree of usefulness in criminal, tax, or regulatory
investigations or proceedings.
The Act requires financial institutions to designate and retain a BSA/AML compliance officer, which is
defined as an officer that is responsible for the development and implementation of the financial
institution’s policies and procedures for complying with the requirements of the Act and BSA/AML
laws.36 Any change in a financial institution’s BSA/AML compliance officer must be reported to OFR. 37
Additionally, the Act requires financial institutions to maintain: 38
full and complete records of all financial transactions, including all records required by the
BSA/AML laws, for a minimum of 5 years;
a copy of all reports filed with OFR as required under the Act for a minimum of 5 years after
submission of the report; and
a copy of all records of exemption for each qualified business customer 39 for a minimum of 5
calendar years after termination of exempt status of such customer.
The Act also requires financial institutions to keep a record of each financial transaction which involves
currency or other monetary instrument that has a value greater than $10,000, involves the proceeds of
specified unlawful activity, or is designed to evade the reporting requirements of the Act or other state
or federal laws, or which the financial institution reasonably believes is suspicious activity.40
A financial institution, or officer, employee, or agent thereof, which files a report in good faith pursuant
to the Act is not liable to any person for loss or damage caused in whole or in part by the making, filing,
or governmental use of the report, or any information contained therein. 41
OFR ENFORCEMENT
In addition to any other powers conferred by the Financial Institutions Codes, OFR may bring an action
in court to enforce or administer the Act, as well as issue and serve upon any person an order of
removal if OFR determines such person is violating, has violated, or is about to violate any provisions of
the Act or any similar state or federal law.42
34
S. 655.50, F.S.
35 S. 655.50(2), F.S.
36 S. 655.50(4), F.S.
37 Id.
38 S. 655.50(8), F.S.
39 See, 31 U.S.C. § 5313(e), providing that the U.S. Secretary of Treasury (Secretary) may exempt a depository institution from
BSA/AML reporting requirements for transactions between the institution and a “qualified business customer” (QBC) of the inst itution on
the basis of information submitted to the Secretary. QBC is defined as a business that:
maintains a transaction account at the depository institution;
frequently engages in transactions with the institution which are subject to BSA/AML reporting requir ements; and
meets criteria which the Secretary determines is sufficient to ensure the purposes of the BSA/AML laws are carried out
without requiring a report for such transactions.
40 S. 655.50(5), F.S.
41 S. 655.50(5)(c), F.S.
42 Ss. 655.50(9)(a)-(c), F.S.
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OFR may also impose and collect an administrative fine against any person found to have violated any
provision of the Act or similar state or federal law in an amount up to $10,000 per day for each willful
violation or $500 per day for each negligent violation.43
VIOLATIONS OF THE ACT
A person who willfully violates the Act commits a misdemeanor of the first degree, 44 unless the violation
involves financial transactions of certain amounts, in which case the criminal penalties vary by first,
second, and third-degree felonies depending on the amount and timing of such transactions. 45
In addition to the criminal penalties, a person who violates the Act may be subject to a fine of up to
$250,000 or twice the value of the financial transaction, whichever is greater, and a subsequent
violation could result in a fine up to $500,000 or quintuple the value of the financial trans action,
whichever is greater.46
A person or financial institution who violates the Act may also be liable for a civil penalty of not more
than the greater of the value of the financial transaction involved or $25,000. 47
Effects of Banks’ Termination of Account Access
In 2022, banks filed over 1.8 million SARs, which is a 50% increase in two years. 48 Multiple SARs often
result in a financial institution terminating, suspending, or otherwise restricting a customer’s account
access.49 A New York Times study of over 500 cases of financial institutions “dropping” their
customers, including interviews with current and former bank industry staffers, revealed the negative
effects of a bank’s decision to remove a customer’s account access:
Individuals can’t pay their bills on time. Banks often take weeks to send them
their balances. While the institutions close their credit cards, their credit scores
suffer. Upon cancellation, small businesses often struggle to make payroll – and
must explain to vendors and partners that they don’t have a bank account for the
time being… [And] once customers have moved on, they don’t know whether
there is a black mark somewhere on their permanent records that will cause a
repeat episode at another bank. If the bank has filed an SAR, it isn’t legally
allowed to tell you, and the federal government prosecutes only a small fraction
of the people whom the banks document in their SARs. 50
As a result, customers do not know why they were ever under suspicion. 51 Interviews with individuals
who had lost access to their accounts revealed behaviors that may have caused their banks to “drop”
them.52 Specifically, a few of the interviews revealed the following: 53
43 S. 655.50(9)(d), F.S.
44
S. 655.50(10)(a), F.S.
45 S. 655.50(10)(b), F.S. See also, s. 775.082, F.S. A person who willfully violates or knowingly causes another to violate the Act and
the violation involves financial transactions of certain amounts:
financial transactions totaling or exceeding $300 but less than $20,000 in any 12 -month period, commits a felony of the third
degree;
financial transactions totaling or exceeding $20,000 but less than $100,000 in any 12 -month period, commits a felony of the
second degree; or
financial transactions totaling or exceeding $100,000 in any 12 -month period, commits a felony of the first degree.
46 S. 655.50(10)(c), F.S.
47 Ss. 655.50(10)(d)-(e), F.S.
48 Ron Lieber and Tara Seigel Bernard, Why Banks Are Suddenly Closing Down Customer Accounts, Thomson Reuters (Nov. 5, 2023),
https://www.nytimes.com/2023/11/05/business/banks-accounts-close-
suddenly.html?unlocked_article_code=1.8Uw.udoQ.0cmUgCSuo6eS&smid=nytcore -android-share (last visited Dec. 5, 2023).
49 Id.
50 Id.
51 Id.
52 Id.
53 Id.
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Unusual Cash Deposits: When a bar owner’s weekly cash deposits fell just below the federal
currency reporting thresholds, the bank closed the bar’s account and the personal checking and
credit card accounts of the owner and his spouse.
A Marijuana Connection: A married couple’s accounts at a bank were shut down after the
husband started receiving direct deposits from a cannabis company that had recently acquired
his employer.
Criminal History: A man who had served 5 years in prison for stealing a car from a dealership
and using a counterfeit bill (among other crimes) had his accounts shut down at three different
banks. His personal banker from the third bank hinted it was because of his criminal record.
Qualified Public Depositories
Unless a specific exemption applies, state and local governments must deposit public funds in a bank
or savings association that has been designated as a qualified public depository (QPD) under the
Florida Security for Public Deposits Act (FSPD).54
To be designated as a QPD by the CFO, a bank, savings bank, or savings association must:
Have a federal or state charter;
Have authority to accept deposits in Florida;
Have its principal place of business in Florida, or a branch office in Florida;
Have deposit insurance pursuant to the Federal Deposit Insurance Act;55
Have procedures and practices for accurate identification, classification, reporting, and
collateralization of public deposits;
Annually attest to the CFO that the QPD has not engaged in an “unsafe and unsound practice”
by denying or cancelling services based on environmental, social, or governance factors, as
required by s. 280.025, F.S.; and
Meet all the requirements of ch. 280, F.S., relating to security for public deposits.56
Under the FSPD, a QPD may be suspended or disqualified or both if the CFO determines that the QPD
has engaged in certain activities that are listed in s. 280.051, F.S.
Additionally, if the CFO finds that one or more grounds exist for the suspension or disqualification of a
QPD, the CFO may, in lieu of suspension or disqualification, impose an administrative penalty upon the
QPD.57 Specifically, with respect to any knowing and willful violation by the QPD of a lawful order or
rule, the CFO may impose a penalty not exceeding $1,000 for each violation. 58 Currently, only failure to
timely file the attestation required under s. 280.025, F.S., is deemed a knowing and willful violation by a
QPD.59
Effect of the Bill
Complaints by Customers or Members of a Financial Institution Alleging Bad Faith
The bill amends Florida’s Financial Institutions Codes to allow a customer or member of a financial
institution who reasonably believes that a financial institution has terminated, suspended, or taken
similar action restricting access to the customer’s or member’s account in bad faith to file, within 30
calendar days of such action, a complaint with OFR alleging a violation of proposed s. 655.49, F.S.
Such complaint is barred if not timely filed.
The bill requires OFR, by July 1, 2024, to make available on its website information necessary for a
customer or member of a financial institution to file a complaint with OFR pursuant to the bill’s
provisions.
54 S. 280.01, F.S. The Florida Security for Public Deposits Act is co dified under ch. 280, F.S.
55 12 U.S.C.A. Ch. 16.
56 S. 280.02(26), F.S.
57 S. 280.054(1), F.S.
58 S. 280.054(1)(b), F.S.
59 Id.
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If a financial institution’s termination, suspension, or similar action restricting account access was due
to any of the following, the bill’s provisions do not apply:
The customer or member initiated the access change themselves;
There was a lack of activity in the account; or
The property is presumed unclaimed pursuant to ch. 717, F.S. 60
TERMINATION -OF-ACCESS REPORT
Upon OFR’s receipt of a complaint filed by a customer or member, within 30 calendar days, OFR must
notify the financial institution that a complaint has been filed. Within 30 calendar days of the financial
institution receiving notice from OFR, the financial institution must file with OFR a termination-of-access
report containing such information as the commission requires by rule.
OFR INVESTIGATION AND DETERMINATION
Within 90 calendar days after receiving the termination-of-access report, OFR must investigate the
financial institution’s action and determine whether the action was taken in bad faith as substantiated
by competent and substantial evidence that was known or should have been known to the financial
institution at the time of the termination, suspension, or similar action.
Within 30 calendar days after making a bad faith determination, OFR must report to the AG and the
CFO such bad faith termination, suspension, or similar action. The report to the AG must describe the
findings of the investigation, provide a summary of the evidence, and state whether the financial
institution violated the Financial Institutions Codes. Upon reporting to the AG, OFR must also send a
copy of the report to the aggrieved customer or member by certified mail, return receipt requested.
The bill provides that a financial institution’s termination, suspension, or similar action restricting a
customer’s or member’s account access in bad faith (as determined by OFR), or a financial institution’s
failure to cooperate in an investigation conducted pursuant to proposed s. 655.49, F.S. (including,
without limitation, failure to timely file a termination-of-access report), constitutes a violation of Florida’s
Financial Institutions Codes and subjects the financial institution to the applicable sanctions and
penalties provided therein.
The bill requires OFR to provide any filed termination-of-access report, and any information contained
therein, to any federal, state, or local law enforcement or prosecutorial agency, and any federal or state
agency responsible for the regulation or supervision of financial institutions, if the provision of such
report is otherwise required by law.
PRIVATE CAUSE OF ACTION
The bill provides a private cause of action to the aggrieved customer or member against the financial
institution that, pursuant to a finding by OFR, acted in bad faith in terminating, suspending, or taking
similar action restricting account access. The aggrieved customer or member may recover damages in
any court of competent jurisdiction, together with costs and reasonable attorney fees to be assessed by
the court.
To recover damages, however, the customer or member must establish that, beyond a reasonable
doubt, the financial institution acted in bad faith in terminating, suspending, or taking similar action
restricting access to the customer’s or member’s account. The bill provides that OFR’s determination
that the financial institution has acted in bad faith does not, in and of itself, establish beyond a
60 Ch. 717, F.S. is the Florida Disposition of Unclaimed Property Act (FDUP Act). Unclaimed property is a financial asset
that is unknown or lost, or has been left inactive, unclaimed, or abandoned by its owner. Under the FDUP Act, unclaimed
property is held by business or government entities (known as “holders”) for a set period of time, usually 5 years. If the
holder is unable to locate the owner, re-establish contact, and return the asset, it is reported and remitted to the Florida
Department of Financial Services’ Division of Unclaimed Property. See, Florida Department of Financial Services, Division
of Unclaimed Property, About, https://fltreasurehunt.gov/UP-Web/sitePages/About.jsp (last visited Dec. 5, 2023).
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reasonable doubt that the financial institution acted in bad faith in the termination, suspension, or
similar action restricting account access.
The bill provides that a customer’s or member’s failure to initiate a cause of action within 12 months of
OFR making a bad faith determination shall bar recovery of any filed claims thereafter.
Qualified Public Depositories
The bill also amends the list of activities that are grounds for suspension or disqualification or both for a
QPD. Specifically, the bill provides that a QPD who is found by OFR to have acted in bad faith when
terminating, suspending, or taking similar action restricting a customer’s or member’s account, or who
has failed to cooperate in an investigation conducted pursuant to proposed s. 655.49, F.S. (including,
without limitation, failing to timely file a termination-of-access report), is grounds for suspension or
disqualification or both.
The bill provides that, with respect to administrative penalties imposed in lieu of suspension or
disqualification, a QPD’s bad faith termination, suspension, or similar action restricting a customer’s or
member’s account access (as determined by OFR), or a QPD’s failure to cooperate in an investigation
conducted pursuant to proposed s. 655.49, F.S. (including, without limitation, failure to timely file a
termination-of-access report), are each deemed a knowing and willful violation by the QPD.
Protection of Specified Adults
Background
Elder Population in Florida
As the country’s “baby-boom” population reaches retirement age and life expectancy increases, the
nation’s elder population is projected to increase from 54.1 million in 2019 61 to 80.8 million by 2040.62
Florida has long been a destination state for senior citizens and has the second highest percentage of
senior residents in the nation.63 In 2022, Florida had an estimated 4.7 million people age 65 and older,
approximately 21percent of the state’s population.64 By 2030, this number is projected to increase to
5.9 million, meaning the elderly will make up approximately one quarter of the state’s population and
will account for most of the state’s growth.65
Adult Protective Services Act
The Adult Protective Services Act, ch. 415, F.S. (Act), codifies Florida’s laws relating to the protection
of vulnerable adults. The Act defines “vulnerable adult” as a person 18 years of age or older whose
ability to perform the normal activities of daily living or to provide for his or her own care or protection is
impaired due to a mental, emotional, sensory, long-term physical, or developmental disability, or brain
damage, or the infirmities of aging.66 The term implicitly includes elderly persons, but also incorporates
disabled adults and other adults whom the Legislature has determined to be at risk of abuse, neglect,
and exploitation, and in need of protective services. 67
61 U.S. Census Bureau, 65 and Older Population Grows Rapidly as Bab y Boomers Age (June 25, 2020), Release Number: CB20-99,
https://www.census.gov/newsroom/press-releases/2020/65-older-population-grows.html (last visited Jan. 10, 2024).
62 U.S. Department of Health and Human Services Administration on Aging, 2020 Profile of Older Americans (May 2021),
https://acl.gov/sites/default/files/Aging%20and%20Disability%20in%20America/2020ProfileOlderAmericans.Final_.pdf (last visited Jan.
10, 2024)
63 Id.
64 U.S. Census Bureau, Quick Facts – Florida, https://www.census.gov/quickfacts/fact/table/FL# (last visited Jan. 10, 2024).
65 65 Florida Office of Economic & Demographic Research, Florida Population b y Age Group. Available at
http://edr.state.fl.us/Content/population-demographics/data/pop_census_day-2020.pdf (last visited Jan. 10, 2024).
66 S. 415.102(28), F.S.
67 S. 415.101(2), F.S.
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The Department of Children and Families (DCF) protects vulnerable adults from abuse, neglect, and
exploitation through mandatory reporting and investigation of suspected abuse pursuant to the Act.68 In
2022, DCF received 30,581 reports of abuse, neglect, or exploitation of persons aged 60 or older.69
Financial Abuse in Elder Populations
Elder populations are particularly vulnerable to abuse and exploitation due to risk factors associated
with aging, such as physical and mental infirmities and social isolation. 70 Common types of elderly
abuse include neglect, physical abuse, psychological abuse, and financial abuse.71 Up to 5 million older
Americans are abused every year, and the annual loss by victims of financial abuse is estimated to be
at least $36.5 billion.72
Financial abuse occurs when someone takes or misuses another person’s money or property for the
benefit of someone other than that person.73 For example, neighbors, caregivers, professionals, and
even family or friends may take money without permission, fail to repay the money they owe, charge
too much for services, or not even do what they were paid to do.74
Financial Scams
Fraudulent scams that target elderly individuals are on the rise. 75 The most common fraudulent scams
targeting these populations include:
Government impersonation scams, in which scammers call unsuspecting older adults and
pretend to be from the Internal Revenue Service, Social Security Administration, or Medicare.
They may say the older adult has unpaid taxes and threaten arrest if they do not pay
immediately. Alternatively, the scammers may say Social Security or Medicare benefits will be
cut off if the older adult does not provide personal identifying information, which can later be
used to commit identity theft.76
Sweepstakes scams, in which scammers call an older adult to tell them have won a lottery or
prize of some kind. If the older adult wants to claim their winnings, the older adult must send
money, cash, or gift cards to cover supposed taxes and processing fees, or the older adult must
send their bank account information to receive the alleged winnings.77
Computer tech support scams, which prey on older people’s lack of knowledge about
computers and cybersecurity. A pop-up message or blank screen usually appears on a
computer or phone, telling the user their device is damaged and needs fixing. When the older
person calls the support number for help, the scammer may either request remote access to the
older person’s computer and/or demand they pay a fee to have it repaired. 78
“Grandparent” scams, in which a scammer calls a would-be grandparent and says something
along the lines of: “Hi, Grandma, do you know who this is?” When the unaware grandparent
guesses the name of the grandchild the scammer most sounds like, the scammer is able to
instantly secure their trust. The fake grandchild then asks for money to solve some urgent
financial problem (such as overdue rent, car repairs, or jail bond).79
68 Id.
69 Email from Tarah Yeager, Gubernatorial Fellow, Department of Children and Families, Re: APS Statistics Info Request (March 22 ,
2023). On file with the Health and Human Services Committee.
70
U.S. Department of Justice, Ab out Elder Ab use, https://www.justice.gov/elderjustice/about-elder-abuse (last visited Jan. 10, 2024)..
71 U.S. Department of Justice, Types of Elder Ab use, https://www.justice.gov/elderjustice/about-elder-abuse (last visited Jan. 10, 2024).
72 National Council on Aging, Get the Facts on Elder Ab use, https://www.ncoa.org/article/get-the-facts-on-elder-abuse (last visited Jan.
10, 2024).
73 Consumer Financial Protection Bureau, Reporting Elder Financial Abuse, https://www.consumerfinance.gov/consumer-
tools/educator-tools/resources-for-older-adults/reporting-elder-financial-abuse-guide/ (last visited Jan. 10, 2024).
74 Id.
75 U.S. Department of Justice: Office of Victims of Crime, National Elder Fraud Hotline, https://ovc.ojp.gov/program/stop-elder-
fraud/providing-help-restoring-hope#financial-scams-and-abuses-that-target-older-people-are-happenin (last visited Jan. 29, 2024).
76 National Council on Aging, supra note 72.
77 Id.
78 Id.
79 Id.
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In 2022, there were 88,262 complaints of fraud from people aged 60 years or older, resulting in $3.1
billion in losses.80 This was a 82.35percent increase in losses compared to 2021.81 Financial scams are
devastating to many older adults and can leave them in a vulnerable position, with limited ability to
recover their losses.82
Florida’s Laws Regarding Books and Records of Financial Institutions
Under Florida law, the books and records of a financial institution are confidential and shall be made
available for inspection and examination only:
To OFR or its duly authorized representative;
To any person duly authorized to act for the financial institution;
To any federal or state instrumentality or agency authorized to inspect or examine the books
and records of an insured financial institution;
With respect to an international banking corporation or international trust entity, to the home-
country supervisor of the international banking corporation or international trust entity, provided
certain conditions are met;
As compelled by legislative subpoena as provided by law;
As compelled by a court of competent jurisdiction, pursuant to a subpoena issued pursuant to
certain rules,83 or pursuant to a subpoena issued in accordance with state or federal law; 84
Pursuant to a subpoena, to any federal or state law enforcement or prosecutorial instrumentality
authorized to investigate suspected criminal activity;
As authorized pursuant to the board of directors of the financial institution;
As otherwise provided by law.85
A person who willfully violates the provisions of Florida law described above relating to unlawful
disclosure of confidential information is guilty of a felony of the third degree, punishable as provided by
Florida’s criminal laws.86
Effect of the Bill
The bill amends the Act to create definitions for the following terms:
“Financial exploitation” means the wrongful or unauthorized taking, withholding, appropriation,
or use of money, assets, or property of a specified adult; or any or omission by a person,
80 Federal Bureau of Investigation Internet Crime Complaint Center, 2022 Internet Crime Report,
https://www.ic3.gov/Media/PDF/AnnualReport/2022_IC3Report.pd f (last visited Jan. 10, 2024). See also, National Council on Aging,
supra note 72.
81 Id.
82 National Council on Aging, supra note 72.
83 Specifically, the Florida Rules of Civil Procedure, the Florida Rules of Criminal Procedure, or the Federal Rules of Civil Procedure.
See s. 655.059(1)(e), F.S.
84 Before the production of the books and records of a financial institution under these circumstances, the party seeking produc tion
must reimburse the financial institution for the reasonable costs and fees incurred in compliance with the production. If the parties
disagree regarding the amount of reimbursement, the party seeking the records may request the court or agency having jurisdic tion to
set the amount of reimbursement.
85 S. 655.059(1), F.S. See s. 655.059(2) for a list of other persons that are authorized by Florida law to inspect the books and records of
a financial institution.
86 S. 655.059(1)(c), F.S. The specific provisions of Florida’s criminal laws under which a person may be punished fo r a violation
includes ss. 755.802, 755.083, and 755.084, F.S.
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including through the use of a power of attorney, guardianship, or conservatorship of a specified
adult, to:
o Obtain control over the specified adult’s money, assets, or property through deception,
intimidation, or undue influence to deprive him or her of the ownership, use, benefit, or
possession of the money, assets, or property; or
o Divert the specified adult’s money, assets, or property to deprive him or her of the
ownership, use, benefit, or possession of the money, assets, or property.
“Financial institution” means a state financial institution or a federal financial institution as those
terms are defined under s. 655.005(1), F.S.87
“Specified adult” means a natural person 70 years of age or older, or a vulnerable adult as
defined in s. 415.102, F.S.88
“Trusted contact” means a natural person 18 years of age or older whom the account owner has
expressly identified and recorded in a financial institution’s books and records as the person
who may be contacted about the account.
The bill provides that if a financial institution reports suspected financial exploitation of a specified adult
pursuant to s. 415.1034, F.S.,89 it may delay a disbursement or transaction from an account of a
specified adult or an account for which a specified adult is a beneficiary or beneficial owner if two
conditions are met. First, the financial institution must immediately initiate an internal review of the facts
and circumstances that caused the employee of the financial institution to report the suspected financial
exploitation.
Second, not later than 3 business days after the date on which the delay was first placed, the financial
institution must:
Notify in writing all parties authorized to transact business on the account and any trusted
contact on the account, using the contact information provided for the account, with the
exception of any party an employee of the financial institution reasonably believes has engaged
in, is engaging in, has attempted to engage in, or will attempt to engage in the suspected
financial exploitation of the specified adult (the notice, which may be provided electronically,
must provide the reason for the delay); and
Create and maintain for at least 5 years after the date of the delayed disbursement or
transaction a written or electronic record of the delayed disbursement or transaction that
includes, at a minimum, the following information:
o The date on which the delay was first placed;
o The name and address of the specified adult;
o The business location of the financial institution;
o The name and title of the employee who reported suspected financial exploitation of the
specified adult pursuant to s. 415.1034, F.S.;90 and
o The facts and circumstances that caused the employee to report suspected financial
exploitation.
The financial institution must make the required information available for review upon request by DCF,
any law enforcement agency conducting an investigation under s. 417.104, F.S., or any state or federal
agency with regulatory authority over the financial institution. This proposed requirement appears to
87 S. 655.005(1) defines “financial institution” as a state or federal savings or thrift association, bank, savings bank, trust company,
international bank agency, international banking corporation, international branch, international representative office, international
administrative office, international trust entity, international trust company representative office, qualified limited servi ce affiliate, credit
union, or an agreement corporation operating pursuant to s. 25 of the Federal Reserve Act, 12 U.S.C. ss. 601 et seq. or Edge Act
corporation organized pursuant to s. 25(a) of the Federal Reserve Act, 12 U.S.C. ss. 611 et seq. “State financial institution ” means a
state-chartered or state-organized financial institution, and “federal financial institution” means a federally or nationally chartered or
organized financial institution. See ss. 655.005(1)(h), (i), and (w), F.S.
88 S. 415.102, F.S., defines “vulnerable adult” as a person 18 ye ars of age or older whose ability to perform the normal activities of daily
living or to provide for his or her own care or protection is impaired due to a mental, emotional, sensory, long -term physical, or
developmental disability or dysfunction, or brain damage, or the infirmities of aging.
89 S. 415.1034, F.S., relates to mandatory reporting of abuse, neglect, or exploitation of vulnerable adults, and other mandator y reports
of death.
90 S. 415.104, F.S., relates to protective investigations of cases of a buse, neglect, or exploitation of vulnerable adults, and the
transmittal of records to state attorneys pursuant to such investigations.
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eliminate the necessity for a subpoena under certain circumstances.91 While law enforcement is
generally required to obtain a subpoena to access books and records, 92 the bill requires financial
institutions to make these records available for review by law enforcement agencies that are engaged
in an investigation under s. 417.104, F.S., regardless of whether the law enforcement agency has a
subpoena or search warrant.93
The bill provides that a delay on a disbursement or transaction expires 5 business days after the date
on which the delay was first placed. However, the financial institution may extend the delay for up to 7
additional calendar days if the financial institution’s review of the available facts and circumstances
continues to support the reasonable belief that financial exploitation of the specified adult has occurred,
is occurring, has been attempted, or will be attempted.
The length of the delay may be shortened or extended at any time by a court of competent jurisdiction.
However, a financial institution is not prevented from terminating a delay after communicating with the
parties authorized to transact business on the account and any trusted contact on the account.
Before placing a delay on any disbursement or transaction pursuant to the bill, a financial institution
must:
Develop training policies or programs reasonably designed to educate employees on issues
pertaining to financial exploitation of specified adults;
Conduct training for all employees at least annually and maintain a written record of all trainings
conducted; and
Develop, maintain, and enforce written procedures regarding the manner in which suspected
financial exploitation is reviewed internally, including, if applicable, the manner in which
suspected financial exploitation is required to be reported to supervisory personnel.
The bill provides that, absent a reasonable belief of financial exploitation, a financial institution’s
obligations to parties authorized to transact business on an account or any trusted contact named on
such account are not otherwise altered. Further, the bill does not create new rights for or impose new
obligations on financial institutions under other applicable law.
The bill also provides legislative intent.
Contracts for Roof Repairs Following Emergencies
Background
The Florida Office of Insurance Regulation (OIR) reported a significant increase in the number of roof
damage claims, many of which include litigation.94 These roof damage claims include claims made by
residential property owners after being solicited to file an insurance claim that they may not otherwise
have filed but for the promise of a new roof at no cost to the property owner. 95 As such, the Legislature
limited certain insurance practices by contractors and unlicensed persons acting on their behalf. 96
A contractor may not enter into a contract with a residential property owner to repair or replace a roof
without including notice in the contract that the contractor is prohibited from engaging in certain acts,
including offering a rebate or other thing of value in exchange for making an insurance claim for
damage to the property owner’s roof.97 If the contractor fails to include the notice in the contract, the
91 OFR, Agency Analysis of 2024 House Bill 515, p. 4 (Jan. 4, 2024).
92 See s. 655.059(1)(e), F.S.
93 OFR, supra note 100, p. 4.
94 Report from David Altmaier, Florida Insurance Commissioner, to Chair Blaise Ingoglia, Commerce Committee, regarding cost drivers
affecting Florida’s insurance rates, p. 7 (Feb. 24, 2021), https://www.floir.com/siteDocuments/CommerceCommitteeDataRequest.pdf
(last visited February 7, 2024).
95 Id. A “free” roof replacement may be achieved by giving a residential property owner whose policy provides for replacement cost
coverage for a roof a gift card or something else valued at the amount of the deductible under the policy so that the entire cost of a new
roof is paid by the insurer and the individual soliciting the residential property owner.
96 See ch. 2021-77, Laws of Fla.
97 S. 489.147(2), F.S.
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property owner may void the contract within 10 days of its execution.98 However, current law does not
provide any requirements regarding cancellation of a contract executed during a declared state of
emergency.
Effect of the Bill
The bill requires that a contractor that enters into a contract to replace or repair the roof of a residential
property during a declared state of emergency by the Governor 99 must include specific language in the
contract that allows the residential property owner to cancel the contract by the earlier of:
Ten days following the contract execution; or
The official start date that the work on the roof will commence.
If the contract does not contain an official start date, it may be canceled within ten days following
execution.
The bill requires that the residential property owner send notice of cancellation of such contract to the
address specified in the contract by certified mail, return receipt requested, or another form of mailing
that provides proof of mailing.
Depository Institutions
Background
In 2023, the Legislature enacted the Florida Commercial Financing Disclosure Law. 100 This law
requires certain disclosures by commercial financing transaction101 providers. However, it exempted
certain state and federally chartered depository institutions from its application. 102 However, a
depository institution operating in Florida, but under the authority of a state charter issued by another
state was not included in this exemption, nor were industrial loan companies and savings and loan
associations operating in this state under a license, e.g., charter, issued under the law of Florida, the
federal government, or another state. Accordingly, while such institutions are analogous to the
exempted depository institutions, they are not exempted and must comply with the disclosure
requirements.
Effect of the Bill
The bill makes additional depository institutions exempt from the Florida Commercial Financing
Disclosure Law. It exempts depository institutions operating in Florida, but under the authority of a state
charter issued by another state and industrial loan companies and savings and loan associations
operating in this state under a license, e.g., charter, issued by Florida, the federal government, or
another state.
98 S. 489.147(2)(b) and (5), F.S.
99 The State Emergency Management Act empowers the Governor to declare a state of emergency and provides specified powers the
Governor may exercise during a declared state of emergency. “Emergency” means any occurrence, or threat thereof, whether natu ral,
technological, or manmade, in war or in peace, which results or may result in substantial injury or harm to the population or s ubstantial
damage to or loss of property. See ss. 252.31-252.60, F.S.
100 Ch. 2023-290, L.O.F. The commercial financing disclosure law is ch. 559, part XIII, F.S.
101 “Commercial financing transaction” means a commercial loan, an accounts receivable purchase transaction, or a commercial open -
end credit plan to the extent the transaction is also a business purpose transaction. As used in this subsection, the term “business
purpose transaction” means a transaction the proceeds of which are provided to a business or are intended to be used to carry on a
business and not to be used for personal, family, or household purposes. For purposes of determining whether a transaction is a
business purpose transaction, the provider may rely on any written statement of intended purpose signed by the business. The
statement may be a separate statement or may be contained in an application, agreement, or o ther document signed by the business
or the business owner. S. 559.9611(6), F.S.
102 “Depository institution” means a Florida state-chartered bank, savings bank, credit union, or trust company, or a federal savings or
thrift association, bank, credit union, savings bank, or thrift. S. 559.9611(9), F.S.
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Continuing Education Requirements for Certified Public Accountants
Background
Every insurer authorized to do business in Florida must file an annual financial statement with OIR on
or before March 1, and quarterly financial statements on March 31, June 30, and September 30. 103
Such statements must conform with the requirements established by the National Association of
Insurance Commissioners, which OIR adopts by rule. 104 As part of the annual statement, all authorized
insurers must have an annual audit conducted by an independent certified public accountant (CPA) and
must file an audited financial report by June 1 each year.105
All CPAs licensed in Florida are required to complete 80 hours of continuing education during the two
years prior to the conclusion of each license-renewal cycle.106 However, there are no requirements
regarding the completion of any continuing education related to audits of insurance companies.
Effect of the Bill
The bill requires the CPA that prepares the audit an insurer submits to OIR as part of its annual report
to have completed at least four hours of insurance-related continuing education during each two-year
continuing education cycle.
Public Adjusters
Background
Florida law defines a public adjuster as someone who, for something of value, directly or indirectly,
prepares, completes, or files an insurance claim for an insured or third-party claimant, or who, for
something of value, acts on behalf of, or aids, an insured or third-party claimant in settling a claim for
loss or damage covered by an insurance contract, or who advertises for employment as an adjuster of
such claims.107 In general, a claimant executes a contract for the public adjuster to provide claims
adjusting services.108
Public adjusters’ contracts relating to property and casualty claims must contain the full name,
permanent business address, phone number, email address, and license number of the public adjuster;
and the full name of the public adjusting firm for whom the public adjuster works. 109 However, such
contracts are not required to contain the license number of the public adjusting firm.
Effect of the Bill
The bill requires that public adjusters’ contracts relating to property and casualty claims contain the
license numbers of the public adjusting firms by which they are employed.
Notice of Change in Policy Terms
Background
An insurer has the authority to modify the terms of a policy upon its renewal. In case of such changes,
the insurer must provide the named insured with advance written notice that summarizes the
modifications.110 This notice can be included with the notice of renewal premium or sent separately
103 S. 624.424(1), F.S.
104 Id. and R. 69O-137, F.A.C.
105 S. 624.424(8), F.S.
106 See s. 473.312, F.S. CPAs are licensed under ch. 473, F.S., and must renew their licenses every two years.
107 S. 626.854, F.S. Public adjusters are regulated under ch. 626, part VI, F.S.
108 See id.
109 S. 626.8796(2), F.S.
110 S. 627.43141(2), F.S.
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within the specified timeframe.111 Prior to, or concurrently with, providing the insured with the notice, the
insurer must furnish a sample copy of the notice to the insured's insurance agent. The notice itself must
be titled "Notice of Change in Policy Terms."112
For renewal policies incorporating optional coverage leading to a premium increase, the insurer cannot
use the Notice of Change in Policy Terms to introduce the optional coverage without the policyholder's
approval.113 The insured's payment of the renewal premium is considered acceptance of the new policy
terms.114 Failure to furnish the required notice means the original policy terms remain in effect until the
subsequent renewal with proper notice, or until the effective date of replacement coverage obtained by
the named insured, whichever happens first.115
Effect of the Bill
The bill requires that the renewal notice sent to the named insured containing changes in policy terms
must be presented in bold type face of not less than 14 points. Additionally, the notice may extend
beyond a single page if needed.
Short-term Health Insurance (short-term plans)
Background
Short-term plans are a health insurance product purchased only for limited time periods, usually under
one year, during periods of transition, such as unemployment. 116 Beginning in 2016, federal rules
related to the Patient Protection and Affordable Care Act (PPACA) limited short-term health plans to no
more than three months.117 In 2018, the Trump administration adopted a rule that allows short-term
health plans to be issued for a period of up to 12 months.118 The new rule also allows the plans to be
renewed upon expiration, up to a total coverage period of 36 months. Short-term plans are not subject
to the following PPACA requirements:
Coverage of essential health benefits.
Prohibition on pre-existing conditions.119
Guaranteed issue of coverage.
As with Association Health Plans (AHPs), the authority to regulate short-term plans remains with the
state. In response to the 2018 Department of Labor rules on AHPs and short-term health plans, the
Legislature passed SB 322 (2019).120 The law allows employers from disparate trades to participate in a
single AHP, if they are located in the state, and allows AHPs to include out-of-state employers who
share a trade or purpose, consistent with the revised federal rules.121 Following the federal rule for short
term plans, the law allows them to be issued for up to 12 months, renewable for a total coverage period
of 36 months.122 In practice, this change allows individuals to purchase short-term health insurance
during longer periods of transition. Both changes increase the availability of lower-cost alternatives to
comprehensive coverage.
111 Id.
112 Id.
113 S. 627.43141(3), F.S.
114
S. 627.43141(5), F.S.
115 S. 627.43141(6), F.S.
116 See s. 627.6426, F.S.; Florida Department of Financial Services, Short-term Limited Duration Insurance,
https://www.myfloridacfo.com/division/consumers/consumerprotections/stldipolicies (last visited Jan. 15, 2024).
117 National Association of Insurance Commissioners, Short-term Limited-duration Health Plans, https://content.naic.org/cipr-
topics/short-term-limited-duration-health-
plans#:~:text=Federal%20regulations%20(81%20FR%2075316,replacement%20for%20traditional%20health%20coverage (last visited
Feb. 8, 2024).
118 Id.
119 Id.
120 Ch. 2019-129, Laws of Fla.
121 Id.
122 Id.
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All short-term plans must include disclosures to the purchaser explaining that the plan is not required to
comply with certain federal requirements and may exclude certain coverage. 123 However, the law does
not specify the method by which these disclosures must be provided.
Effect of the Bill
The bill updates the disclosures that must be provided to a purchaser of a short-term plan to include the
following additional items:
The duration of the plan, including any waiting period;
Any essential health benefits that the plan does not provide; 124
The content of coverage;125 and
Any exclusions of preexisting conditions.
The bill also requires that purchasers of short-term plans receive the required disclosures in writing or
electronically, and sign them.
Loss Assessment Coverage
Background
Loss assessment coverage is insurance coverage for condominium unit owners that provides
protection for situations where the owner of a condominium unit, as the owner of shared property, is
held financially responsible for:
Deductibles owed when a claim is made under a condominium association’s property insurance
policy;
Damage that occurs to the condominium building or the common areas of a condominium
property; or
Injuries that occur in the common areas of a condominium property. 126
Florida law requires that property insurance policies held by condominium unit owners include a
minimum property loss assessment coverage of $2,000 for all assessments made because of the same
direct loss to the condominium property.127 The law further establishes that the maximum amount of
any unit owner’s coverage that can be assessed for any loss is an amount equal to the unit owner’s
loss assessment coverage limit in effect one day before the date of an occurrence that gave rise to the
loss.128 This coverage is applicable to any loss assessment regardless of the date of assessment by a
condominium association.129
Effect of the Bill
The bill establishes that a claim resulting from a loss assessment is considered to have occurred on the
date a notice of loss assessment is sent by a condominium association to a unit owner. Establishing a
date of loss for such claims will help insurers determine whether a loss assessment claim has been
timely made.
123 S. 627.6426(2), F.S.
124 Essential health benefits can be found in 42 U.S.C. § 18022(b).
125 The term content of coverage describes the scope of coverage and includes special restrictions on covered benefits. These
restrictions may eliminate coverage for: specific medical conditions, body parts, or body syste ms; certain drugs; or certain cost-sharing
options like deductibles or co-pays. The Henry J. Kaiser Family Foundation, How Accessib le is Individual Health Insurance for
Consumers in Less-than-perfect Health?, https://www.kff.org/wp-content/uploads/2013/01/how-accessible-is-individual-health-
insurance-for-consumer-in-less-than-perfect-health-report.pdf (last visited Jan. 19, 2024).
126 The Balance, Loss Assessment Explained for Condo Insurance, https://www.thebalance.com/loss-assessment-explained-for-condo-
insurance-4060435 (last visited Jan. 13, 2024).
127 S. 627.714(1), F.S.
128 S. 627.714(2), F.S.
129 Id.
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Fireworks Safety Standards
Background
Florida law establishes the requirements for the outdoor display of fireworks in the state. At present,
such display of fireworks is controlled by the 1995 edition of the National Fire Protection Association
1123, Code for Fireworks Displays (Code).130
Effect of the Bill
The bill updates the outdoor fireworks safety standards in Florida to the 2018 Code, which is the mos t
current edition of the code.
B. SECTION DIRECTORY:
Section 1. Amends s. 212.134, F.S., relating to information returns relation to payment-card and third-
party network transactions.
Section 2. Amends s. 280.051, F.S., relating to grounds for suspension or disqualification of a
qualified public depository.
Section 3. Amends s. 280.54, F.S., relating to administrative penalty in lieu of suspension or
disqualification.
Section 4. Creates s. 415.10341, F.S., relating to protection of specified adults.
Section 5. Amends s. 489.147, F.S., relating to prohibited property insurance practices.
Section 6. Amends s. 559.9611, F.S., relating to definitions.
Section 7. Amends s. 624.424, F.S., relating to annual statement and other information.
Section 8. Amends s. 626.8796, F.S., relating to public adjuster contracts; disclosure statement; fraud
statement.
Section 9. Amends s. 627.43141, F.S., relating to notice of change in policy terms.
Section 10. Amends s. 627.6426, F.S., relating to short-term health insurance.
Section 11. Amends s. 627.70132, F.S., relating to notice of property insurance claims.
Section 12. Creates s. 655.49, F.S., relating to bad faith termination or restriction of account access;
investigation by the office.
Section 13. Amends s. 791.012, F.S., relating to minimum fireworks safety standards.
Section 14. Provides an effective date of July 1, 2024.
130 S. 791.012, F.S. The Code cited in this statute has not been updated since this statute was first enacted in 1996.
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II. FISCAL ANALYSIS & ECONOMIC IMPACT STATEMENT
A. FISCAL IMPACT ON STATE GOVERNMENT:
1. Revenues:
None.
2. Expenditures:
The bill may have an indeterminate negative impact on state expenditures if state agencies are
required to update systems or hire additional staff to implement the statutory changes made by the
bill.
B. FISCAL IMPACT ON LOCAL GOVERNMENTS:
1. Revenues:
None.
2. Expenditures:
None.
C. DIRECT ECONOMIC IMPACT ON PRIVATE SECTOR:
The bill has an indeterminate positive impact on specified adults to the extent the bill allows financial
institutions to delay a financial transaction if an employee at the institution reasonably suspects
financial abuse of a specified adult. Accordingly, it is foreseeable that fewer specified adults will be able
to effectuate a financial transaction procured by improper methods.
The bill may also lead to fewer financial institutions suspending, terminating, or taking similar action
restricting customers’ or members’ account access in bad faith, which may have a positive economic
impact.
The bill has an indeterminate negative impact on financial institutions to the extent that such institutions
decide to delay disbursements as provided by the bill. Further, if the financial institution does decide to
delay disbursements, the institution must first comply with the conditions provided by 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 expenditure of funds; reduce the authority that counties or municipalities have to
raise revenues in the aggregate; or reduce the percentage of state tax shared with counties or
municipalities.
2. Other:
None.
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B. RULE-MAKING AUTHORITY:
The bill neither authorizes nor requires administrative rulemaking.
C. DRAFTING ISSUES OR OTHER COMMENTS:
None.
IV. AMENDMENTS/COMMITTEE SUBSTITUTE CHANGES
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DATE: 2/21/2024
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