Insurance & Banking Subcommittee — The Florida House of Representatives, Commerce Committee (March 5, 2025)
Summary
Meeting packet for the Insurance & Banking Subcommittee of the Florida House of Representatives Commerce Committee, for the meeting on Wednesday, March 5, 2025, 1:30pm-3:30pm in Morris Hall. The agenda lists HB 315, HB 367, HB 379, HB 497, HB 655 and HB 7003 for consideration, plus a proposed committee substitute for HB 147 on prohibited practices in consumer debt collection. The bill analysis for HB 315 states that the bill changes the insurance requirement for a transportation network driver engaged in a prearranged ride with no rider in the vehicle, from $1 million to $50,000 for bodily injury or death to one person, $100,000 per incident and $25,000 for property damage. The packet also carries the analysis for HB 367 on home and service warranty association financial requirements.
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Insurance & Banking Subcommittee
Wednesday, March 5, 2025
1:30PM-3:30PM
Morris Hall (17 HOB)
Daniel Perez Bradford Yeager
Speaker Chair
The Florida House of Representatives
Commerce Committee
Insurance & Banking Subcommittee
Daniel Perez Bradford Yeager
Speaker Chair
Meeting Agenda
Wednesday, March 5, 2025
1:30pm – 3:30pm
Morris Hall (17 HOB)
I. Call to Order
II. Roll Call
III. Welcome and Opening Remarks
IV. Consideration of the following bill(s):
• HB 315 Transportation Network Company and Driver Insurance Requirements by
Fabricio
• HB 367 Home and Service Warranty Association Financial Requirements by
Conerly
• HB 379 Securities by Barnaby
• HB 497 Health Coverage by Nonprofit Agricultural Organizations by Grow
• HB 655 Pet Insurance and Wellness Programs by Tuck
• HB 7003 OGSR/Financial Technology Sandbox Applications/OFR by
Government Operations Subcommittee, Sapp
V. Consideration of the following proposed committee substitute(s):
• PCS for HB 147 -- Prohibited Practices in Consumer Debt Collection
VI. Closing Remarks
VII. Adjournment
214 House Office Building, 402 South Monroe Street, Tallahassee, Fl 32399-1300
(850) 717-4870
HB 315
FLORIDA HOUSE OF REPRESENTATIVES
BILL ANALYSIS
This bill analysis was prepared by nonpartisan committee staff and does not constitute an official statement of legislative intent.
BILL #: HB 315 COMPANION BILL: None
TITLE: Transportation Network Company and Driver LINKED BILLS: None
Insurance Requirements RELATED BILLS: SB 1206 (DiCeglie)
SPONSOR(S): Fabricio
Committee References
Insurance & Banking Commerce
SUMMARY
Effect of the Bill:
The bill changes the insurance requirement that applies when a transportation network driver (i.e., Uber, Lyft,
Sidecar, etc.) is engaged in a prearranged ride, but the rider is not in the vehicle, from $1 million, per accident for
death, bodily injury, and property damage, to $50,000 for bodily injury or death to one person, $100,000 for bodily
injury or death, per incident, and $25,000 for property damage. This is the same insurance obligation that applies
when the TNC driver is logged on to the application but is waiting to be connected to a rider for a prearranged ride.
The insurance requirement for when a TNC driver is engaged in a prearranged ride and the rider is in the vehicle is
unchanged at $1 million, per accident for death, bodily injury, and property damage.
Fiscal or Economic Impact:
TNC networks may pay reduced insurance premiums, which may possibly be passed onto consumers.
JUMP TO SUMMARY ANALYSIS RELEVANT INFORMATION BILL HISTORY
ANALYSIS
EFFECT OF THE BILL:
Current law requires at least $1 million insurance coverage for death, bodily injury, and property damage for TNC
drivers engaged in any prearranged ride, regardless of whether a rider is occupying the vehicle. The bill reduces
this requirement if the TNC driver is engaged in a prearranged ride with no rider occupying the vehicle, i.e., they
have connected on the application for a ride and the TNC driver is en route to the rider’s location.
When a TNC driver is logged into the application, but not connected to a rider at all, the minimum coverage
requirement is $50,000 for death and bodily injury per person, $100,000 for death and bodily injury per incident,
and $25,000 for property damage in addition to the standard personal injury protection and
uninsured/underinsured coverages required for Florida drivers.12
For when the TNC driver is engaged with a rider for a prearranged ride, but the rider is not present in the vehicle,
the bill changes the applicable coverage requirement from the current $1 million $50,000 for death and bodily
injury per person, $100,000 for death and bodily injury per incident, and $25,000 for property damage.
The ultimate outcome of the bill is that the lower minimum coverage requirements currently applicable to TNC
drivers logged onto the digital network but not engaged in a prearranged ride will now also apply to TNC drivers
1 For purposes of comparison, s. 324.032, F.S., requires for-hire passenger transportation vehicles to carry limits of
$125,000/$250,000 for bodily injury and $50,000 for property damage. Taxicabs, limousines, and other for-hire
transportation vehicles are subject to s. 324.032, F.S.
2 For the personal injury protection and uninsured/underinsured coverage requirements, see infra notes 4-5.
STORAGE NAME: h0315.IBS
DATE: 3/4/2025
1
engaged in a prearranged ride with no rider. The minimum coverage required for TNC drivers engaged in a
prearranged ride with a rider present remains unchanged.
The effective date of the bill is July 1, 2025.
FISCAL OR ECONOMIC IMPACT:
PRIVATE SECTOR:
TNC networks may pay reduced insurance premiums, which may possibly be passed onto consumers.
RELEVANT INFORMATION
SUBJECT OVERVIEW:
Transportation Network Companies (TNCs)
Transportation network companies (TNCs) are businesses that use a digital network to connect riders who provide
prearranged rides. Examples of TNCs include Uber, Lyft, and Sidecar. Chapter 627.748, F.S., governs the operation
of TNCs, including their insurance coverage requirements.
The law defines a “TNC vehicle” as a vehicle that is used by a TNC driver to offer or provide a prearranged ride and
owned, leased, or otherwise authorized to be used by the TNC driver. A vehicle that is let or rented to another for
consideration may be used as a TNC vehicle. The bill specifies that a taxicab, jitney, limousine, or for-hire vehicle is
not a TNC vehicle.
Statute also defines the term “prearranged ride” as the provision of transportation by a TNC driver to a rider,
beginning when a TNC driver accepts a ride requested by a rider through a digital network3 controlled by a TNC,
continuing while the TNC driver transports the requesting rider, and ending when the last requesting rider departs
from the TNC vehicle. The term does not include a taxicab, for-hire vehicle, or street hail4 service and does not
include ridesharing,5 carpool,6 or any other type of service in which the driver receives a fee that does not exceed
the driver's cost to provide the ride.
TNC Coverage Requirements
Current law prescribes different insurance requirements for two scenarios: when a driver is logged on but not
engaged in a ride, and when a driver is engaged in a prearranged ride. The required coverage is significantly higher
for TNC drivers engaged in a prearranged ride.
The following coverage requirements apply while a TNC driver is logged on to the digital network but not engaged
in a prearranged ride under Section 627.748(7)(b), F.S.:
3 “Digital network” is defined as any online-enabled technology application service, website, or system offered or used by a
TNC which enables the prearrangement of riders with TNC drivers. F.S., Section 627.748(1)(a).
4 “Street hail” is defined as an immediate arrangement on a street with a driver by a person using any method other than a
digital network to seek immediate transportation.
5 Section 341.031(9)(a), F.S., defines “ridesharing” as an arrangement between persons with a common destination, or
destinations, within the same proximity, to share the use of a motor vehicle on a recurring basis for round-trip transportation
to and from their place of employment or other common destination. For purposes of ridesharing, employment shall be
deemed to commence when an employee arrives at the employer's place of employment to report for work and shall be
deemed to terminate when the employee leaves the employer's place of employment, excluding areas not under the control of
the employer. However, an employee shall be deemed to be within the course of employment when the employee is engaged in
the performance of duties assigned or directed by the employer, or acting in the furtherance of the business of the employer,
irrespective of location.
6 Section 450.28(3), F.S., defines “carpool” as an arrangement made by the workers using one worker's own vehicle for
transportation to and from work and for which the driver or owner of the vehicle is not paid by any third person other than
the members of the carpool.
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2
Primary automobile liability coverage of at least $50,000 for death and bodily injury per person, $100,000
for death and bodily injury per incident, and $25,000 for property damage.7
Personal injury protection benefits that meet the minimum coverage amounts required under sections
627.730-627.7405, F.S.8
Uninsured and underinsured vehicle coverage as required by section 627.727, F.S.9
Current law applies the following coverage requirements while a TNC driver is engaged in a prearranged ride
under Section 627.748(7)(c), both when connected to a rider but the rider is not yet in the vehicle and when the
rider is present:
A primary automobile liability coverage of at least $1 million for death, bodily injury, and property
damage.10
Personal injury protection meeting the minimum coverage amounts required for a limousine under
627.730-627.7405, F.S.11
Uninsured and underinsured vehicle coverage as required by section 627.727, F.S.12
BILL HISTORY
STAFF
DIRECTOR/ ANALYSIS
COMMITTEE REFERENCE ACTION DATE POLICY CHIEF PREPARED BY
Insurance & Banking Lloyd Schenk
Subcommittee
Commerce Committee
7 Section 627.748(7)(b), F.S.
8 Sections 627.730-627.7405, F.S., are the “Florida Motor Vehicle No-Fault Law.” The law requires Florida motor vehicle
owners to maintain Personal Injury Protection (PIP) insurance coverage.
9 Section 627.727, F.S., provides uninsured and underinsured vehicle coverage requirements for all motor vehicle liability
policies issued in Florida..
10 Section 627.748(7)(c), F.S.
11 Supra note 8.
12 Supra note 9.
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3
F L O R I 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 315 2025
1 A bill to be entitled
2 An act relating to transportation network company and
3 driver insurance requirements; amending s. 627.748,
4 F.S.; revising automobile insurance requirements for
5 transportation network companies and drivers;
6 providing an effective date.
7
8 Be It Enacted by the Legislature of the State of Florida:
9
10 Section 1. Paragraphs (b) and (c) of subsection (7) of
11 section 627.748, Florida Statutes, are amended to read:
12 627.748 Transportation network companies.—
13 (7) TRANSPORTATION NETWORK COMPANY AND TNC DRIVER
14 INSURANCE REQUIREMENTS.—
15 (b) The following automobile insurance requirements apply
16 while a participating TNC driver is logged on to the digital
17 network but is not engaged in a prearranged ride or while a
18 participating TNC driver is engaged in a prearranged ride but a
19 rider does not occupy the TNC vehicle:
20 1. Automobile insurance that provides:
21 a. A primary automobile liability coverage of at least
22 $50,000 for death and bodily injury per person, $100,000 for
23 death and bodily injury per incident, and $25,000 for property
24 damage;
25 b. Personal injury protection benefits that meet the
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26 minimum coverage amounts required under ss. 627.730-627.7405;
27 and
28 c. Uninsured and underinsured vehicle coverage as required
29 by s. 627.727.
30 2. The coverage requirements of this paragraph may be
31 satisfied by any of the following:
32 a. Automobile insurance maintained by the TNC driver or
33 the TNC vehicle owner;
34 b. Automobile insurance maintained by the TNC; or
35 c. A combination of sub-subparagraphs a. and b.
36 (c) The following automobile insurance requirements apply
37 while a TNC driver is engaged in a prearranged ride and a rider
38 occupies the TNC vehicle:
39 1. Automobile insurance that provides:
40 a. A primary automobile liability coverage of at least $1
41 million for death, bodily injury, and property damage;
42 b. Personal injury protection benefits that meet the
43 minimum coverage amounts required of a limousine under ss.
44 627.730-627.7405; and
45 c. Uninsured and underinsured vehicle coverage as required
46 by s. 627.727.
47 2. The coverage requirements of this paragraph may be
48 satisfied by any of the following:
49 a. Automobile insurance maintained by the TNC driver or
50 the TNC vehicle owner;
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51 b. Automobile insurance maintained by the TNC; or
52 c. A combination of sub-subparagraphs a. and b.
53 Section 2. This act shall take effect July 1, 2025.
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hb315-00
HB 367
FLORIDA HOUSE OF REPRESENTATIVES
BILL ANALYSIS
This bill analysis was prepared by nonpartisan committee staff and does not constitute an official statement of legislative intent.
BILL #: HB 367 COMPANION BILL: SB 282 (Truenow)
TITLE: Home and Service Warranty Association LINKED BILLS: None
Financial Requirements RELATED BILLS: None
SPONSOR(S): Conerly
Committee References
Insurance & Banking Commerce
SUMMARY
Effect of the Bill:
The bill allows both home warranty associations and service warranty associations to satisfy financial
requirements using one or more contractual liability insurance policies from multiple insurers rather than only
permitting a single contractual liability policy. Additionally, the bill reduces the amount of information a service
warranty association must file to document its eligibility for an exemption from reserve or contracting
requirements.
Fiscal or Economic Impact:
None
JUMP TO SUMMARY ANALYSIS RELEVANT INFORMATION BILL HISTORY
ANALYSIS
EFFECT OF THE BILL:
The bill allows home warranty associations and service warranty associations to satisfy financial requirements
using one or more contractual liability insurance policies from multiple insurers. (Section 1 and 2).
Additionally, the bill allows a service warranty association to document its parent company's required net worth
by submitting one of the following, rather than both:
Audited financial statements, or
SEC filings (or equivalent forms from a recognized stock exchange). (Section 2).
The effective date of the bill is January 1, 2026. (Section 3).
RELEVANT INFORMATION
SUBJECT OVERVIEW:
A warranty is an assurance that a manufacturer or seller makes about the condition of its product.1 A warranty
means that a manufacturer or seller will replace or repair the product under certain instances. A warranty can be
either express or implied.2
1 s. 681.102(22), F.S.
2 45 Fla. Jur 2d Sales and Exchanges of Goods § 156.
STORAGE NAME: h0367.IBS
DATE: 3/4/2025
1
An express warranty is a verbal or written assurance for the product.3 On the other hand, an implied warranty is an
unstated assurance that the product is made for its intended purpose.4 An implied warranty is in addition to an
express warranty. However, an implied warranty may be negated or limited by an express warranty. There is no
implied warranty if a seller states that the product is “as is”, “with all faults”, or similar language.5
The Office of Insurance Regulation (OIR)
Warranty associations and companies in Florida, including those associations selling home and service warranties,
and those companies selling motor vehicle service agreements, are regulated by the Office of Insurance Regulation
(OIR).6 OIR regulates the insurance industry in Florida. OIR is responsible for the regulation of all activities in the
state concerning insurers and other risk bearing entities, including licensing, rates, policy forms, market conduct,
claims, issuance of certificates of authority, solvency, viatical settlements, premium financing, and administrative
supervision.7
While warranties are not considered traditional insurance products, OIR regulates warranty associations and
companies similarly to the way in which it regulates insurers.8 Home and service warranty associations must be
licensed by OIR9 and must maintain certain minimum financial standards in order to do warranty business in
Florida.10
Home Warranties
A home warranty is a contract or agreement between the homeowner and the issuing company, safeguarding the
homeowner from expenses related to the repair or replacement of structural components or appliances in the
home.11 This protection extends to issues caused by normal wear and tear or defects in these components or
appliances.12
Home warranty contracts or agreements can be drafted by a Home Warranty Association licensed under s.
634.303, F.S., or by an authorized insurance company permitted to offer coverage in this category.13
Service Warranty
A Service Warranty is a warranty, guarantee, extended warranty, or maintenance service contract lasting one year
or more that covers the cost of repair, replacement, or maintenance of a consumer product in exchange for a
premium payment.14
A service warranty contract may be issued by a licensed Service Warranty Association, as authorized under S.
634.403, F.S., or by an insurance company authorized to provide this type of coverage.15
3 “An express warranty is created by an affirmation of fact or promise made by the seller to the buyer that relates to the goods, by any
description of the goods that is made part of the basis of the bargain, or by any sample or model that is made part of the basis of the bargain.”
S. 672.313, F.S.
4 S. 672.314, F.S.
5 S. 672.316, F.S.
6 See ch. 634, F.S.
7 Florida Office of Insurance Regulation, Organization and Operation, https://floir.com/about-us/organization-and-
operation#:~:text=The%20Florida%20um%20financing%2C%20and%20administrative (last visited Feb. 28, 2025). See also s. 624.308, F.S.,
and R. 69O, et seq., F.A.C.]
8 See ch. 634, F.S.
9 Ss. 634.303 and 634.403, F.S. Neither the Florida Insurance Code nor this section grants permission for any home warranty association to
conduct insurance business beyond what is specifically defined as home warranty or to participate in any other form of insurance. Any
engagement in alternative insurance types requires explicit authorization through a certificate of authority issued by the office under the
provisions of the Florida Insurance Code. S. 634.325, F.S.
10 Ss. s. 634.3077, F.S. and 634.406, F.S.
11 S. 634.301(2), F.S.
12 Id.
13 S. 634.303, F.S.
14 S. 634.401, F.S.
15 Consumer Services, Service Warranty Overview, https://myfloridacfo.com/division/consumers/understanding-insurance/service-
warranty-overview, (Last visited Feb. 18, 2025).
JUMP TO SUMMARY ANALYSIS RELEVANT INFORMATION BILL HISTORY
2
Service warranty rates are not regulated or approved by the Florida Office of Insurance Regulation (OIR).16 As
required by s. 634.414, F.S., every service agreement sold in Florida must include a written disclosure informing
consumers that the rate charged is not subject to OIR regulation.17 This disclosure may be included in the service
agreement itself or provided separately at the time of purchase.18
How Home and Service Warranty Associations Work in Florida
In Florida, companies that sell home warranties and service warranties are regulated under Ch. 634, and are
commonly referred to as warranty associations. These businesses collect fees from customers in exchange for
providing coverage and must comply with financial regulations to ensure they can pay claims when required.
To meet Florida’s financial requirements, warranty associations have two options:
1. Maintain an Unearned Premium Reserve
o A portion of the money collected from customers must be set aside in a reserve fund to cover future
claims.19
2. Purchase Contractual Liability Insurance (CLI)
o Instead of maintaining a reserve, a warranty association can purchase a CLI from an insurer.20
o CLI guarantees that if the warranty association is unable to fulfill its obligations (due to insolvency,
bankruptcy, or other financial issues), the insurer will cover the claims.21
o CLI must be obtained from an insurer authorized to do business in Florida or approved by the OIR
as financially capable of covering obligations.22
Financial Requirements for Home and Service Warranty Associations
To ensure warranty associations remain financially stable and capable of meeting their obligations to consumers,
Florida law imposes additional financial requirements.
Premium-to-Net-Assets Ratio
Warranty associations cannot have gross written premiums that exceed seven times their available assets
(a 7-to-1 ratio).23
If a company exceeds this limit, it must meet stricter financial conditions, such as maintaining higher net
assets or purchasing CLI from an insurer with significant financial reserves.24
Net Worth Requirements
Some warranty associations must maintain a minimum level of net assets to demonstrate financial
stability.25
Companies exceeding the 7-to-1 ratio must hold at least $750,000 in net assets and secure CLI from an
insurer with a policyholder surplus of at least $100 million or $200 million, depending on circumstances.26
Exemptions for Large Companies
Warranty associations (or their parent companies) with a net worth of at least $100 million may be exempt
from maintaining an unearned premium reserve or purchasing CLI.27
These companies must submit audited financial statements and regular financial reports to regulators to
prove they meet the exemption criteria.28
16 Id.
17 Id.
18 Id.
19 S. 634.3077(1), F.S., and S. 634.406(3), F.S.
20 S. 634.406(3), F.S.
21 S. 634.406(3)(a), F.S.
22 S. 634.406(3), F.S.
23 S. 634.406(4), F.S.
24 S. 634.406(4)(b), F.S.
25 S. 634.406(6)(a), F.S.
26 S. 634.406(6)(b), F.S.
27 S. 634.406(7)(a), F.S.
28 S. 634.406(7)(a)(1), F.S.
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3
BILL HISTORY
STAFF
DIRECTOR/ ANALYSIS
COMMITTEE REFERENCE ACTION DATE POLICY CHIEF PREPARED BY
Insurance & Banking Lloyd Herrera
Subcommittee
Commerce Committee
JUMP TO SUMMARY ANALYSIS RELEVANT INFORMATION BILL HISTORY
4
F L O R I 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 367 2025
1 A bill to be entitled
2 An act relating to home and service warranty
3 association financial requirements; amending s.
4 634.3077, F.S.; making technical changes; amending s.
5 634.406, F.S.; revising the circumstances under which
6 certain service warranty associations are not required
7 to establish unearned premium reserves or to maintain
8 contractual liability insurance and are authorized to
9 allow their premiums to exceed specified ratios;
10 providing an effective date.
11
12 Be It Enacted by the Legislature of the State of Florida:
13
14 Section 1. Subsection (3) of section 634.3077, Florida
15 Statutes, is amended to read:
16 634.3077 Financial requirements.—
17 (3) An association may not be required to set up an
18 unearned premium reserve if it has purchased contractual
19 liability insurance which demonstrates to the satisfaction of
20 the office that 100 percent of its claim exposure is covered by
21 such insurance. Such contractual liability insurance shall be
22 obtained from an insurer or insurers that hold a certificate of
23 authority to do business within the state or from an insurer or
24 insurers approved by the office as financially capable of
25 meeting the obligations incurred pursuant to the policy or
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26 policies. For purposes of this subsection, the contractual
27 liability policy or policies shall contain the following
28 provisions:
29 (a) In the event that the home warranty association is
30 unable to fulfill its obligation under its contracts issued in
31 this state for any reason, including insolvency, bankruptcy, or
32 dissolution, the contractual liability insurer or insurers will
33 pay losses and unearned premiums under such plans directly to
34 persons making claims under such contracts.
35 (b) The insurer or insurers issuing the policy or policies
36 shall assume full responsibility for the administration of
37 claims in the event of the inability of the association to do
38 so.
39 (c) The policy or policies may not be canceled or not
40 renewed by the insurer or insurers or the association unless 60
41 days' written notice thereof has been given to the office by the
42 insurer or insurers before the date of such cancellation or
43 nonrenewal.
44 (d) The contractual liability insurance policy or policies
45 shall insure all home warranty contracts that were issued while
46 the policy or policies were was in effect whether or not the
47 premium has been remitted to the insurer or insurers.
48 Section 2. Subsections (3) and (4), paragraphs (b) and (c)
49 of subsection (6), and paragraph (a) of subsection (7) of
50 section 634.406, Florida Statutes, are amended to read:
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51 634.406 Financial requirements.—
52 (3) An association will not be required to establish an
53 unearned premium reserve if it has purchased contractual
54 liability insurance which demonstrates to the satisfaction of
55 the office that 100 percent of its claim exposure is covered by
56 such policy or policies. The contractual liability insurance
57 shall be obtained from an insurer or insurers that hold holds a
58 certificate of authority to do business within the state. For
59 the purposes of this subsection, the contractual liability
60 policy or policies shall contain the following provisions:
61 (a) In the event that the service warranty association
62 does not fulfill its obligation under contracts issued in this
63 state for any reason, including insolvency, bankruptcy, or
64 dissolution, the contractual liability insurer or insurers will
65 pay losses and unearned premium refunds under such plans
66 directly to the person making a claim under the contract.
67 (b) The insurer or insurers issuing the contractual
68 liability policy or policies shall assume full responsibility
69 for the administration of claims in the event of the inability
70 of the association to do so.
71 (c) The policy or policies may not be canceled or not
72 renewed by either the insurer or insurers or the association
73 unless 60 days' written notice thereof has been given to the
74 office by the insurer or insurers before the date of such
75 cancellation or nonrenewal.
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76 (d) The contractual liability insurance policy or policies
77 shall insure all service warranty contracts which were issued
78 while the policy or policies were was in effect whether or not
79 the premium has been remitted to the insurer or insurers.
80 (e) In the event the issuer or issuers of the contractual
81 liability policy or policies are is fulfilling the service
82 warranty covered by policy or policies and in the event the
83 service warranty holder cancels the service warranty, it is the
84 responsibility of the contractual liability policy issuer or
85 issuers to effectuate a full refund of unearned premium to the
86 consumer. This refund shall be subject to the cancellation fee
87 provisions of s. 634.414. The salesperson or agent shall refund
88 to the contractual liability policy issuer or issuers the
89 unearned pro rata commission.
90 (f) An association may not utilize both the unearned
91 premium reserve and contractual liability insurance
92 simultaneously. However, an association shall be allowed to have
93 contractual liability coverage on service warranties previously
94 sold and sell new service warranties covered by the unearned
95 premium reserve, and the converse of this shall also be allowed.
96 An association must be able to distinguish how each individual
97 service warranty is covered.
98 (4) No warrantor may allow its gross written premiums in
99 force to exceed a 7-to-1 ratio to net assets; however, a company
100 may exceed this requirement if:
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101 (a) The company:
102 1.(a) Holds licenses issued pursuant to the provisions of
103 part I and this part;, and
104 2.(b) Maintains net assets of at least $2.5 million;, and
105 3.(c) Utilizes contractual liability insurance which
106 reimburses the service warranty association for 100 percent of
107 its paid claims;, and
108 (b)(d) The insurer or insurers issuing the contractual
109 liability insurance policy or policies maintain maintains a
110 policyholder surplus of at least $100 million and are is rated
111 "A" or higher by A.M. Best Company.
112 (6) An association that holds a license under this part
113 may allow its premiums for service warranties written under this
114 part to exceed the ratio to net assets limitations of this
115 section if the association meets all of the following:
116 (b) Uses a contractual liability insurance policy or
117 policies approved by the office that:
118 1. Reimburse Reimburses the service warranty association
119 for 100 percent of their its claims liability and are is issued
120 by an insurer or insurers that maintain maintains a policyholder
121 surplus of at least $100 million; or
122 2. Comply Complies with subsection (3) and are is issued
123 by an insurer or insurers that maintain maintains a policyholder
124 surplus of at least $200 million.
125 (c) The insurer or insurers issuing the contractual
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HB 367 2025
126 liability insurance policy or policies:
127 1. Are Is rated "A" or higher by A.M. Best Company or an
128 equivalent rating by another national rating service acceptable
129 to the office.
130 2. In conjunction with the warranty association's filing
131 of the quarterly and annual reports, provide provides, on a form
132 prescribed by the commission, a statement certifying the gross
133 written premiums in force reported by the warranty association
134 and a statement that all of the warranty association's gross
135 written premium in force is covered under the contractual
136 liability policy or policies, regardless of whether it has been
137 reported.
138 (7) Notwithstanding s. 634.401(13)(c), an association
139 licensed under this part and holding no other license under part
140 I or part II of this chapter is not required to establish an
141 unearned premium reserve or maintain contractual liability
142 insurance and may allow its premiums to exceed the ratio to net
143 assets limitation of this section if the association complies
144 with one of the following:
145 (a) The association or, if the association is a direct or
146 indirect wholly owned subsidiary of a parent corporation, its
147 parent corporation has, and maintains at all times, a minimum
148 net worth of at least $100 million and provides the office with
149 one of the following:
150 1. A copy of the association's annual audited financial
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HB 367 2025
151 statements or the audited consolidated financial statements of
152 the association's parent corporation, prepared by an independent
153 certified public accountant in accordance with generally
154 accepted accounting principles, which clearly demonstrate the
155 net worth of the association or its parent corporation to be
156 $100 million and a quarterly written certification to the office
157 that such entity continues to maintain the net worth required
158 under this paragraph.
159 2. The association's, or its parent corporation's, Form
160 10-K, Form 10-Q, or Form 20-F as filed with the United States
161 Securities and Exchange Commission or such other documents
162 required to be filed with a recognized stock exchange, which
163 shall be provided on a quarterly and annual basis within 10 days
164 after the last date each such report must be filed with the
165 Securities and Exchange Commission, the National Association of
166 Security Dealers Automated Quotation system, or other recognized
167 stock exchange.
168
169 Failure to timely file the documents required under this
170 paragraph may, at the discretion of the office, subject the
171 association to suspension or revocation of its license under
172 this part.
173 Section 3. This act shall take effect July 1, 2025.
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hb367-00
INSURANCE & BANKING SUBCOMMITTEE
HB 367 by Rep. Conerly
Home and Service Warranty Association Financial Requirements
AMENDMENT SUMMARY
March 4, 2025
Amendment 1 by Rep. Grow (Line 138): The amendment adds a new provision requiring that
contracts covering accidental damage from handling must be backed by contractual liability
insurance, unless issued by an association exempt from the applicable financial requirements.
COMMITTEE/SUBCOMMITTEE AMENDMENT
Bill No. HB 367 (2025)
Amendment No. 1
COMMITTEE/SUBCOMMITTEE ACTION
ADOPTED (Y/N)
ADOPTED AS AMENDED (Y/N)
ADOPTED W/O OBJECTION (Y/N)
FAILED TO ADOPT (Y/N)
WITHDRAWN (Y/N)
OTHER
1 Committee/Subcommittee hearing bill: Insurance & Banking
2 Subcommittee
3 Representative Conerly offered the following:
4
5 Amendment
6 Remove lines 138-172 and insert:
7 (7) An association licensed under this part and holding no other
8 license under part I or part II of this chapter is not required
9 to establish an unearned premium reserve or maintain contractual
10 liability insurance and may allow its premiums to exceed the
11 ratio to net assets limitation of this section if the
12 association complies with the following:
13 (a) The association or, if the association is a direct or
14 indirect wholly owned subsidiary of a parent corporation, its
15 parent corporation has, and maintains at all times, a minimum
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Page 1 of 3
COMMITTEE/SUBCOMMITTEE AMENDMENT
Bill No. HB 367 (2025)
Amendment No. 1
16 net worth of at least $100 million and provides the office with
17 one of the following:
18 1. A copy of the association's annual audited financial
19 statements or the audited consolidated financial statements of
20 the association's parent corporation, prepared by an independent
21 certified public accountant in accordance with generally
22 accepted accounting principles, which clearly demonstrate the
23 net worth of the association or its parent corporation to be
24 $100 million and a quarterly written certification to the office
25 that such entity continues to maintain the net worth required
26 under this paragraph.
27 2. The association's, or its parent corporation's, Form
28 10-K, Form 10-Q, or Form 20-F as filed with the United States
29 Securities and Exchange Commission or such other documents
30 required to be filed with a recognized stock exchange, which
31 shall be provided on a quarterly and annual basis within 10 days
32 after the last date each such report must be filed with the
33 Securities and Exchange Commission, the National Association of
34 Security Dealers Automated Quotation system, or other recognized
35 stock exchange.
36
37 Failure to timely file the documents required under this
38 paragraph may, at the discretion of the office, subject the
39 association to suspension or revocation of its license under
40 this part.
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COMMITTEE/SUBCOMMITTEE AMENDMENT
Bill No. HB 367 (2025)
Amendment No. 1
41 Section 3. Subsection (5) is added to section 634.414,
42 Florida Statutes, to read:
43 634.414 Forms; required provisions.—
44 (5) All contracts that include coverage for accidental
45 damage from handling must be covered by the contractual
46 liability policy referred to in s. 634.406(3), unless issued by
47 an association not required to establish an unearned premium
48 reserve or maintain contractual liability insurance under the
49 provisions of s. 634.406(7).
50
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HB 379
FLORIDA HOUSE OF REPRESENTATIVES
BILL ANALYSIS
This bill analysis was prepared by nonpartisan committee staff and does not constitute an official statement of legislative intent.
BILL #: HB 379 COMPANION BILL: SB 988 (Truenow)
TITLE: Securities LINKED BILLS: None
SPONSOR(S): Barnaby RELATED BILLS: None
Committee References
Insurance & Banking Commerce
SUMMARY
Effect of the Bill:
The Florida Securities and Investor Protection Act (the Act) governs the registration and examination of firms,
branches, and individuals offering investment services in the state. The Office of Financial Regulation Division of
Securities (OFR) is responsible for administering and enforcing compliance with the Act.
The bill makes many changes throughout the Act. In general, the bill:
Expands the list of securities transactions that are exempt from registration;
Requires the Financial Services Commission to consider certain factors when designating a foreign
securities exchange or foreign securities market by rule;
Amends the Florida Invest Local Exemption to require an issuer to file a written consent to service of
process with OFR prior to commencing an offer;
Removes the requirement for OFR to find that an issuer’s enterprise or business is not based on unsound
business principles in order to approve the issuer’s application for registration;
Limits the application of the Act’s disqualification provision as it relates to S.E.C. Rule 506(d);
Specifies certain persons that must submit fingerprints to the Department of Law Enforcement; and
Clarifies certain eligibility and application requirements for persons seeking payment from the Securities
Guaranty Fund.
Fiscal or Economic Impact:
The bill has an indeterminate impact on the private sector and an indeterminate impact on state government.
JUMP TO SUMMARY ANALYSIS RELEVANT INFORMATION BILL HISTORY
ANALYSIS
EFFECT OF THE BILL:
The bill makes many changes throughout the Florida Securities and Investor Protection Act (Act), which is codified
in chapter 517, F.S.
Definitions
The bill creates definitions for the following terms, as such terms are used in the Act:
“Branch manager” means a natural person who administers or supervises the affairs or operations of a
branch office.
STORAGE NAME: h0379.IBS
DATE: 3/4/2025
1
“Corporation” has the same meaning as the terms “corporation,” “domestic corporation,” and “foreign
corporation” are defined under the Florida Business Corporation Act.1
“Director” means a person appointed or elected to sit on a board that manages the affairs of a corporation
or other organization by electing or exercising control over its officers.
“Limited liability company” has the same meaning as the terms “limited liability company” or “foreign
limited liability company” are defined under the Florida Revised Limited Liability Company Act.2
“Limited liability company manager” or “limited liability managing member” means a person who is
responsible alone or in concert with others for performing the management functions of a limited liability
company.
“Trust” has the same meaning as defined under the Florida Probate Code.3 (Section 1.)
The bill amends the definition of “intermediary” to mean a person that facilitates through its website the offer or
sale of securities of an issuer with a principal place of business in this state. (Section 1.)
Exempt Transactions
The bill expands the list of securities transactions that are currently exempt from registration under the Act. Under
the bill, the offer or sale of securities to the following individuals are exempt:
A savings and loan association, building and loan association, cooperative bank, homestead association, or
credit union, which is supervised and examined by a state or federal authority having supervision over any
such institution.
A federal covered adviser, investment adviser registered pursuant to the laws of a state, exempt reporting
adviser or private fund adviser as those terms are defined in s. 517.12(23)(a)2. and 3., F.S.,4 respectively,
investment adviser relying on the exemption from registering with the Securities and Exchange
Commission under s. 203(l) or (m) of the Investment Advisers Act of 1940, as amended, business
development company as defined in s. 2(a)(48) of the Investment Company Act of 1940, as amended, or
business development company as defined in s. 202(a)(22) of the Investment Advisers Act of 1940, as
amended.
A small business investment company licensed by the Small Business Administration under s. 301(c) of the
Small Business Investment Act of 1958, as amended, or rural business investment company as defined in s.
384A of the Consolidated Farm and Rural Development Act.
A plan established and maintained by a state, a political subdivision thereof, or any agency or
instrumentality of a state or a political subdivision, for the benefit of its employees, if such plan has total
assets in excess of $5 million, an employee benefit plan within the meaning of the Employee Retirement
Income Security Act of 1974 if the investment decision is made by a plan fiduciary, as described in s. 3(21)
1 “Corporation” or “domestic corporation” means a corporation for profit, which is not a foreign corporation, incorporated
under chapter 607, F.S., the Florida Business Corporation Act. S. 607.01401(13), F.S. “Foreign corporation” means an entity
incorporated or organized under laws other than the laws of Florida which would be a corporation for profit if incorporated
under the laws of Florida. S. 607.01401(36), F.S.
2 “Limited liability company,” except in the phrase “foreign limited liability company,” means an entity formed or existing
under chapter 605, F.S., the Florida Revised Limited Liability Company Act, or an entity that becomes subject to chapter 605
pursuant to ss. 605.1001-605.1072, F.S. S. 605.0102(36), F.S. “Foreign limited liability company” means an unincorporated
entity that was formed in a jurisdiction other than Florida and is denominated by that law as a limited liability company. S.
605.0102(26), F.S.
3 “Trust” means an express trust, private or charitable, with additions to it, wherever and however created. It also includes a
trust created or determined by a judgment or decree under which the trust is to be administered in the manner of an express
trust. “Trust” excludes other constructive trusts, and it excludes resulting trusts; conservatorships; custodial arrangements
pursuant to the Florida Uniform Transfers to Minors Act; business trusts providing for certificates to be issued to
beneficiaries; common trust funds; land trusts under s. 689.071, F.S., except to the extent provided in s. 689.071(7), F.S.; trusts
created by the form of the account or by the deposit agreement at a financial institution; voting trusts; security arrangements;
liquidation trusts; trusts for the primary purpose of paying debts, dividends, interest, salaries, wages, profits, pensions, or
employee benefits of any kind; and any arrangement under which a person is nominee or escrowee for another. S.
731.201(38), F.S.
4 The bill renumbers current subsection (22) in s. 517.12, F.S. to (23). Under s. 517.12(22)(a)2., “exempt reporting adviser” has
the same meaning as in the Glossary of Terms to Form ADV, the uniform application for investment adviser registration, 17
C.F.R. s. 279.1. Under s. 517.12(22)(a)3., “private fund adviser” means an investment adviser who provides advice to solely one
or more qualifying private funds.
JUMP TO SUMMARY ANALYSIS RELEVANT INFORMATION BILL HISTORY
2
of such act, which is a bank, savings and loan association, insurance company, or federal covered adviser, or
if the employee benefit plan has total assets in excess of $5 million or, if a self-directed plan, with
investment decisions made solely by persons that are accredited investors. (Section 2.)
The bill also exempts the offer or sale of securities to the following entities:
An organization described in s. 501(c)(3) of the Internal Revenue Code, corporation, Massachusetts trust or
similar business trust, partnership, or limited liability company, not formed for the specific purpose of
acquiring the securities offered, with total assets in excess of $5 million.
A trust, with total assets in excess of $5 million, not formed for the specific purpose of acquiring the
securities offered, whose purchase is directed by a sophisticated person as described in Securities and
Exchange Commission Rule 506(b)(2)(ii),5 as amended.
An entity of a type not listed above which owns investments as defined in Securities and Exchange
Commission Rule 2a51-1(b),6 as amended, in excess of $5 million and is not formed for the specific purpose
of acquiring the securities offered.
A family office as defined in Securities and Exchange Commission Rule 202(a)(11)(G)-1 under the
Investment Advisers Act of 1940,7 as amended, provided that:
o The family office has assets under management in excess of $5 million;
o The family office is not formed for the specific purpose of acquiring the securities offered; and
o The prospective investment of the family office is directed by a person who has knowledge and
experience in financial and business matters that the family office is capable of evaluating the
merits and risks of the prospective investment.
An entity in which all of the equity owners are one of the types of entities described above or is a bank,
trust company, savings institution, insurance company, dealer, investment company as defined in the
Investment Company Act of 1940, as amended, pension or profit-sharing trust, or qualified institutional
buyer, whether any of such entities is acting in its individual or fiduciary capacity. (Section 2.)
The bill amends the requirements for an issuer claiming the exemption identified in subsection (11) of the Florida
statute that lists the Act’s exempt transactions.8 The bill requires that the issuer, within 15 days after the first sale
in Florida, file with OFR an irrevocable written consent to service of civil process, similar to that provided in s.
517.101, F.S., in addition to the materials currently required to be filed with OFR under subsection (11) of such
statute.9 (Section 2.)
Foreign Securities Exchange
The bill clarifies that the conditions to claim the Act’s exemption relating to foreign securities markets must be met
at the time of the transaction that is the subject of the claimed exemption. (Section 2.)
The bill also removes the Act’s designation of Canada, together with its provinces and territories, as a foreign
jurisdiction, and also removes the Act’s designation of the Toronto Stock Exchange, Inc., as a foreign securities
exchange. Going forward, foreign securities markets and foreign securities exchanges will be designated by rule of
the Financial Services Commission (Commission). (Section 2.)
Moreover, under the bill, the Commission must consider certain factors when designating a foreign securities
exchange or foreign securities market under the Act. The factors to consider include the foreign securities market’s
or foreign security exchange’s:
Organization under foreign law.
Association with a generally recognized community of dealers, financial institutions, or other professional
intermediaries with an established operating history.
Oversight by a governmental or self-regulatory body.
5 17 C.F.R. s. 230.506(b)(2)(ii).
6 17 C.F.R s. 270.2a51-1(b).
7 17 C.F.R. s. 275.202(a)(11)(G)-1
8 See s. 517.061, F.S.
9 The other materials to be filed include a notice of transaction and a copy of the general announcement of the sale. S.
517.061(11)(f), F.S.
JUMP TO SUMMARY ANALYSIS RELEVANT INFORMATION BILL HISTORY
3
Oversight standards set by general law.
Reporting of securities transactions on a regular basis to a governmental or self-regulatory body.
A system for exchange of price quotations through common communications media.
An organized clearance and settlement system.
Listing in Securities and Exchange Commission Regulation S Rule 902, 17 C.F.R. s. 230.902, as amended.
(Section 2.)
Florida Invest Local Exemption
The bill requires that an issuer making an offering under the Florida Invest Local Exemption must file with OFR, in
addition to the disclosure statement required by the exemption, a notice of transaction on a form prescribed by
Commission rule, and an irrevocable written consent to service of civil process, similar to that provided in s.
517.101, F.S. (Section 3.)
“Bad Actor” Disqualification
The bill limits the application of the Act’s disqualification provision to only certain persons and entities subject to
SEC Rule 506(d).10 Under the bill, a registration exemption provided by the Act is not available to an issuer if, at the
time the issuer makes an offer for the sale of a security, any of the following entities would be disqualified under SEC
Rule 506(d):
The issuer;
A predecessor of the issuer;
An affiliated issuer;
A director, executive officer, or other officer of the issuer participating in the offering;
A general partner or managing member of the issuer;
A beneficial owner of 20 percent or more of the issuer’s outstanding voting equity securities, calculated on
the basis of voting power; or
A promoter connected with the issuer in any capacity at the time of the sale. (Section 5.)
For the avoidance of doubt, the bill clarifies that the disqualification under SEC Rule 506(d) does not apply to any
other person or entity listed in such Rule other than those expressly listed in the bill. (Section 5.)
Registration Requirements
The bill eliminates the requirement that OFR find, in order to approve a security for registration under the Act, that
the enterprise or business of the security’s issuer is not based upon unsound business principles. The bill does not
remove any of the other findings that OFR must make in order to register a security under the Act. (Section 7.)
Requirements to Submit Fingerprints
The bill significantly revises the Act’s current requirements for submitting fingerprints to the Department of Law
Enforcement (DLE). Under the bill, the following persons must submit a full set of fingerprints to DLE or to a
vendor, entity, or agency authorized under s. 943.053(13), F.S., for live-scan processing in accordance with rules
adopted by the Commission:
A natural person filing with OFR an application for registration as an associated person or intermediary;
A natural person who holds the title of president, treasurer, chief executive officer, chief financial officer,
chief operations officer, chief legal officer, or chief compliance officer for an applicant that is a dealer,
investment adviser, or intermediary;
A natural person who is a director of an applicant that is a dealer, investment adviser, or intermediary.
A natural person who is a trustee of a trust that owns 5 percent or more of a class of a voting security of an
applicant that is a dealer, investment adviser, or intermediary, or that has the right to receive upon
dissolution, or has contributed, 5 percent or more of the capital of an applicant that is a dealer, investment
adviser, or intermediary.
A natural person who is a direct owner of an applicant that is a dealer, investment adviser, or intermediary.
Each natural person who is a shareholder of a corporation that is a direct owner of an applicant that is a
dealer, investment adviser, or intermediary, who beneficially owns, has the right to vote, or has the power
to sell or direct the sale of, 25 percent or more of a class of a voting security of such corporation. For
10 17 C.F.R. s. 230.506(d).
JUMP TO SUMMARY ANALYSIS RELEVANT INFORMATION BILL HISTORY
4
purposes of the requirements for these natural persons, a shareholder beneficially owns the securities if
the securities are:
o Owned by the shareholder's child, stepchild, grandchild, parent, stepparent, grandparent, spouse,
sibling, mother-in-law, father-in-law, son-in-law, daughter-in-law, brother-in-law, or sister-in-law
sharing the same residence; or
o Securities that the shareholder has the right to acquire, within 60 days, through the exercise of any
option, warrant, or right to purchase the securities.
Each natural person who is a general partner of, and each natural person who is a limited partner or special
partner of, a partnership that is a direct owner of an applicant that is a dealer, investment adviser, or
intermediary, who has the right to receive upon dissolution, or has contributed, 25 percent or more of such
partnership's capital.
Each natural person who is a member of a limited liability company that is an applicant that is a dealer,
investment adviser, or intermediary, who has the right to receive upon dissolution, or has contributed, 25
percent or more of such limited liability company's capital, and, if such limited liability company is
managed by elected managers, each elected manager. (Section 8.)
For purposes of the bill’s requirements relating to fingerprinting for the above individuals, the term “direct owner”
means:
A shareholder who owns 5 percent or more of a class of voting securities of an applicant that is a dealer,
investment adviser, or intermediary, and includes any person who owns, beneficially owns, has the right to
vote, or has the power to sell or direct the sale of, 5 percent or more of a class of a voting security of the
applicant. For purposes of this language, a person beneficially owns the securities if the securities are:
o Owned by the shareholder's child, stepchild, grandchild, parent, stepparent, grandparent, spouse,
sibling, mother-in-law, father-in-law, son-in-law, daughter-in-law, brother-in-law, or sister-in-law
sharing the same residence; or
o Securities that the shareholder has the right to acquire, within 60 days, through the exercise of any
option, warrant, or right to purchase the securities.
Each general partner and each limited partner or special partner of an applicant that is a dealer, investment
adviser, or intermediary, and who has the right to receive upon dissolution, or has contributed, 5 percent
or more of the capital of a dealer or investment adviser applicant.
A member who has the right to receive upon dissolution, or has contributed, 5 percent or more of the
capital of an applicant that is a dealer, investment adviser, or intermediary, and all elected managers of an
applicant that is a dealer, investment adviser, or intermediary. (Section 8.)
Under the bill, a vendor, entity, or agency authorized under s. 943.053(13), F.S., to submit fingerprints
electronically to the DLE must submit the fingerprints to DLE for state processing, and DLE must then forward the
fingerprints to the Federal Bureau of Investigation (FBI) for national processing. The bill requires that the fees for
state and federal fingerprint processing must be borne by the person subject to the criminal history record check.
(Section 8.)
The bill requires OFR to review the results of the state and federal criminal history record checks and determine
whether the applicant is disqualified from registration. Under the bill, the Commission may waive by rule the bill’s
requirement that the persons listed in the bill submit fingerprints or the bill’s requirement that such fingerprints
be processed by DLE or the FBI. (Section 8.)
Exemption from Registration for Certain M&A Brokers
The bill essentially adopts the changes adopted by the North American Securities Administrators Association
(NASAA) in May of 2024 to the NASAA’s Model Rule Exempting Certain Merger & Acquisition Brokers (M&A
Brokers) from Registration (Model Rule). Specifically, the bill adopts the Model Rule’s definition of “business
combination related shell company,” which defines the term as a shell company that is formed by an entity that is
not a shell company solely for the purpose of:
Changing the corporate domicile of the entity solely within the United States; or
Completing a business combination transaction, as defined in 17 C.F.R. s. 230.165(f), among one or more
entities other than the company itself, none of which is a shell company. (Section 8.)
JUMP TO SUMMARY ANALYSIS RELEVANT INFORMATION BILL HISTORY
5
The bill requires that an M&A broker, for purposes of the Act’s exemption, must receive additional written
assurances, prior to the completion of a securities transaction, from any person that, after the transaction is
completed, will be active in the management of the eligible privately held company or the business conducted with
the assets of such company. (Section 8.)
The bill also provides that an M&A broker engaged in a transaction exempt under s. 517.061(7) is exempt from
registration unless the M&A broker:
Directly or indirectly, in connection with the transfer of ownership of an eligible privately held company,
receives, holds, transmits, or has custody of the funds or securities to be exchanged by the parties to the
transaction;
Engages on behalf of an issuer in a public offering of any class of securities which is registered, or which is
required to be registered, with the SEC under the Securities Exchange Act of 1934, or with OFR under s.
517.07; or for which the issuer files, or is required to file, periodic information, documents, and reports
under s. 15(d) of the Securities Exchange Act of 1934;
Engages on behalf of any party in a transaction involving a shell company, other than a business
combination related shell company;
Directly, or indirectly through any of its affiliates, provides financing related to the transfer of ownership of
an eligible privately held company;
Assists any party to obtain financing from an unaffiliated third party without:
o Complying with all other applicable laws in connection with such assistance; and
o Disclosing any compensation in writing to the party;
Represents both the buyer and the seller in the same transaction without providing clear written
disclosure as to the parties the broker represents and obtaining written consent from both parties to the
joint representation;
Facilitates a transaction with a group of buyers formed with the assistance of the M&A broker to acquire
the eligible privately held company;
Engages in a transaction involving the transfer of ownership of an eligible privately held company to a
passive buyer or group of passive buyers;
Binds a party to a transfer of ownership of an eligible privately held company; or
Is subject to, or an officer, director, member, manager, partner, or employee of the broker is subject to, the
certain disciplinary actions. (Section 8.)
Securities Guaranty Fund
The bill creates a definition for the term “restitution order,” as such term is used in the Act’s provisions relating to
the Securities Guaranty Fund. The bill defines the term as a court order awarding a specified monetary amount to a
named aggrieved party for a violation of ss. 517.07, or 517.301, F.S., to be paid by a named violator. (Section 9.)
The bill revises the conditions that a person must meet to be eligible for payment from the Securities Guaranty
Fund to cover instances involving restitution orders. The bill also revises the minimum information that is
required to be included on an application for payment from the Securities Guaranty Fund to cover instances
involving restitution orders. (Section 9.)
RULEMAKING:
The bill removes the Act’s designation of specific foreign securities exchanges and foreign securities markets and,
in its place, requires the Commission to designate such foreign exchanges and markets by rule and requires the
Commission to consider certain factors when making such designation. The bill also allows the Commission to
modify the dollar figures for the eligibility of a privately held company, for purposes of the Act’s exemption related
to merger and acquisition brokers, by rule.
New rules will need to be adopted to implement the above-referenced changes made by the bill.11
11 Supra, note 54, at p. 11.
JUMP TO SUMMARY ANALYSIS RELEVANT INFORMATION BILL HISTORY
6
Lawmaking is a legislative power; however, the Legislature may delegate a portion of such power to executive
branch agencies to create rules that have the force of law. To exercise this delegated power, an agency must
have a grant of rulemaking authority and a law to implement.
FISCAL OR ECONOMIC IMPACT:
STATE GOVERNMENT:
The revenue collected for the state portion of a state and national criminal history record check is $24, which goes
into the Department of Law Enforcement’s Operating Trust Fund.12 The impact of the bill’s provisions relating to
the Act’s fingerprinting requirements is unknown at this time.13
PRIVATE SECTOR:
The bill has a minimal positive impact on the private sector, as the bill modernizes Florida’s securities laws to align
with recent developments in federal securities laws and model securities laws for states.
RELEVANT INFORMATION
SUBJECT OVERVIEW:
Federal Securities Laws
There are several major federal securities laws that govern securities offerings in the United States. The Securities
Exchange Act of 1933 (the 1933 Act) generally requires that investors receive financial and other significant
information concerning securities being offered for public sale, and prohibits deceit, misrepresentations, and other
fraud in the sale of securities.14
With the Securities Exchange Act of 1934 (1934 Act), Congress created the Securities and Exchange Commission
(SEC).15 The SEC’s authority under the 1934 Act includes, but is not limited to, the power to register, regulate, and
oversee brokerage firms, transfer agents, clearing agencies, and the nation's securities self-regulatory
organizations (SROs).16 The various securities exchanges, such as the New York Stock Exchange, the NASDAQ Stock
Market, and the Chicago Board of Options are SROs.17 The Financial Industry Regulatory Authority (FINRA) is also
an SRO.18
Other federal securities laws include the Trust Indenture Act of 1939, Investment Company Act of 1940,
Investment Advisers Act of 1940, Sarbanes-Oxley Act of 2002, Dodd-Frank Wall Street Reform and Consumer
Protection Act of 2010, and Jumpstart Our Business Startups Act of 2012.19
Florida’s Securities Laws
In addition to the federal securities laws, every state has its own set of securities laws, which are commonly
referred to as "Blue Sky Laws.”20 Like the federal securities laws, Blue Sky Laws are designed to protect investors
against fraudulent sales practices and activities.21 Chapter 517, F.S., codifies the Florida Securities and Investor
12 Florida Department of Law Enforcement, Agency Analysis of 2025 HB 379, p. 3 (Feb. 7, 2025).
13 Id.
14 U.S. Securities and Exchange Commission, Statutes and Regulations, https://www.sec.gov/rules-regulations/statutes-
regulations#secact1933 (last visited Feb. 28, 2025).
15 Id.
16 Id.
17 Id.
18 Id.
19 For further information on the various federal securities laws, see https://www.sec.gov/rules-regulations/statutes-
regulations#secact1933 (last visited Feb. 28, 2025).
20 U.S. Securities and Exchange Commission, Blue Sky Laws, https://www.investor.gov/introduction-investing/investing-
basics/glossary/blue-sky-laws (last visited Feb. 28, 2025).
21 Id.
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Protection Act (Act), which governs the registration and examination of firms, branches, and individuals offering
investment services in the state.22
The Act prohibits dealers and associated persons from offering or selling securities in Florida unless registered
with the Office of Financial Regulation (OFR) or specifically exempted.23 Additionally, all securities in Florida must
be registered with OFR unless they meet one of the exemptions under the Act,24 or are federally covered (i.e., under
the exclusive jurisdiction of the SEC).25
Failure to meet the precise requirements of the Act’s exemptions can subject the violator to civil, criminal, and
administrative liability for the sale of unregistered securities, which is a third-degree felony.26 Civil remedies under
the Act include rescission and damages.27
Office of Financial Regulation: Division of Securities
The Division of Securities (Division), housed within the Office of Financial Regulation (OFR),28 is responsible for
administering and enforcing compliance with the Act.29 The Division carries out its duties through its two bureaus.
The Bureau of Registration registers securities firms and their employees to conduct business in, to, or from the
state.30 The Bureau of Enforcement receives and processes consumer complaints regarding securities industry
activities and participants, conducts examinations of securities firms and their employees, and develops
enforcement actions brought by OFR for violations of the Act.31
As of June 30, 2023, the Division had total active registrants in the following areas:
Dealers and investment adviser firms: 10,701
Branch offices: 11,667
Individual associated persons: 373,710
Crowdfunding intermediaries: 232
Exempt Transactions
Certain securities transactions are exempt from the registration requirements of the Act.33 Other than one
exception,34 the exemptions are self-executing and do not require any filing with OFR before being claimed.35
Any person who claims an exemption bears the burden of proving they are entitled to the exemption in any
proceeding brought under the Act.36 Further, although the Act’s registration requirements do not apply to
transactions that are explicitly exempt, such transactions are subject to the Act’s anti-fraud provisions.37
Foreign Securities Exchanges
22 Id.
23 See s. 517.12, F.S.
24 See ss. 517.051 and 517.061, F.S.
25 S. 517.07, F.S. If a security is registered with the SEC, s. 517.082, F.S., requires the broker or issuer to notify OFR that the
security is registered with the SEC.
26 S. 517.302(1), F.S.
27 S. 517.211, F.S.
28 The Financial Services Commission, comprised of the Governor and the Cabinet, serves as OFR’s agency head for purposes of
rulemaking and appoints OFR’s Commissioner, who serves as the agency head for purposes of final agency action for all areas
within OFR’s regulatory authority. S. 20.121(3), F.S.
29 Office of Financial Regulation, Long Range Program Plan, Sep. 2023, at p. 22,
http://floridafiscalportal.state.fl.us/Document.aspx?ID=28240&DocType=PDF (last visited Feb. 28, 2025).
30 Id.
31 Id.
32 Id. Florida ranks third in the nation in the number of registered dealers, investment advisers, and their registered associated
persons, and fourth in the number of registered branch offices.
33 For a list of exempt transactions, see s. 517.061, F.S.
34 S. 517.061(11), F.S., is the exception.
35 S. 517.061, F.S.
36 Id.
37 See s. 517.301, F.S.
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The Act’s registration requirements do not apply to a nonissuer transaction in an outstanding security effected by
or through a dealer registered or exempt from registration under the Act if all of the following are true:
The issuer is a reporting issuer in a foreign jurisdiction identified by statute or by commission rule, and the
issuer has been subject to continuous reporting requirements in such foreign jurisdiction for not less than
180 days before the transaction; and
The security is listed on the securities exchange designated by statute or by commission rule, is a security
of the same issuer which is of senior or substantially equal rank to the listed security, or is a warrant or
right to purchase or subscribe to any such security.38
For purposes of this exemption, the Act designates Canada, together with its provinces and territories, as a foreign
jurisdiction, and the Toronto Stock Exchange, Inc., as a securities exchange.39 If, after an administrative hearing,
OFR finds that revocation of a statutory designation is necessary or appropriate in furtherance of the public
interest and for the protection of investors, OFR may revoke the designation of a securities exchange.40
Florida Invest Local Exemption
In 2024, the Florida Invest Local Exemption (FIL Exemption), based in part on Georgia’s “Invest Georgia
Exemption,”41 was created under the Act.42 The FIL Exemption exempts the offer and sale of securities from the
Act’s registration requirements when such securities are part of an intrastate offering that meets certain
requirements.43 An offering under the FIL exemption is limited to $500,000, and any one investor may not invest
more than $10,000 unless the investor is accredited, a specified employee, or a 10% or more shareholder.44
Under the FIL Exemption, an offer or sale of security by an issuer is exempt from the Act’s registration
requirements if the following conditions are met:
The issuer must be a for-profit business entity registered with the Department of State with its principal
place of business in this state.45
The issuer is not, before or as a result of the offering:
o An investment company;
o Subject to the reporting requirements of the 1934 Act;
o A business entity with an undefined business plan, that lacks a business plan, that lacks a stated
investment goal for the funds being raised, or that plans to engage in a merger or acquisition with
an unspecified business entity; or
o Disqualified pursuant to s. 517.0616, F.S.46
Further, the transaction must meet the requirements of the federal exemption for intrastate offerings in s.
3(a)(11) of the 1933 Act and SEC Rule 147 or SEC Rule 147A.47
An issuer making an offering under the FIL Exemption must file a notice of the offering and a copy of the disclosure
statement with OFR, on a form prescribed by Commission rule, no less than 5 days before the offering
commences.48 If there are any material changes to the submitted information, the issuer must, within 3 days after
such material change, file an amended notice with OFR.49
Disqualification of “Bad Actors” Under SEC Rule 506(d)
38 S. 517.061(20), F.S.
39 Id.
40 Id.
41 For more information on the Georgia Invest Local Exemption, see Georgia Secretary of State Securities Division, Invest
Georgia Exemption, https://sos.ga.gov/sites/default/files/2023-05/IGE%20pamplet-web.pdf (last visited Mar. 1, 2025).
42 See ch. 2024-168, Laws of Fla.
43 See s. 517.0612, F.S.
44 Ss. 517.0612(5), (6)(a), F.S.
45 S. 517.0612(4), F.S.
46 S. 517.0612(4)(a)-(d), F.S.
47 S. 517.0612(3), F.S.
48 S. 517.0612(10), F.S.
49 Id.
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A registration exemption provided by the Act is not available to an issuer if the issuer would be disqualified under
SEC Rule 506(d)50 at the time the issuer makes an offer for the sale of a security.51 Under the SEC Rule 506(d) “bad
actor” disqualification, an offering is disqualified from relying on the exemptions in Rule 506(b) and 506(c) of
Regulation D if the issuer or any other person covered by Rule 506(d) has a relevant criminal conviction,
regulatory or court order, or other disqualifying event.52
The persons covered by SEC Rule 506(d) includes:
The issuer, including its predecessors and affiliated issuers;
Directors, general partners, and managing members of the issuer;
Executive officers of the issuer, and other officers of the issuers that participate in the offering;
20 percent beneficial owners of the issuer, calculated on the basis of total voting power;
Promoters connected to the issuer;
For pooled investment fund issuers, the fund’s investment manager and its principals; and
Persons compensated for soliciting investors, including their directors, general partners and managing
members.53
In 2024, industry members expressed concern that the inclusion of current s. 517.061(9), F.S., in the Act’s
disqualification provision would prohibit certain transactions with institutional investors in Florida, including
offerings pursuant to Rule 144A under the Securities Act of 1933.54
Registration Requirements
Under the Act, OFR must record the registration of a security in OFR’s register of securities if, upon examination of
an application, it finds that all of the following requirements are met:
The application is complete;
The fee to register55 has been paid;
The sale of the security would not be fraudulent and would not work or tend to work a fraud upon the
purchaser;
The terms of the sale of such securities would be fair, just, and equitable; and
The enterprise or business of the issuer is not based upon unsound business principles.56
Requirements to Submit Fingerprints
The Act specifies certain information that the Commission or OFR may require for an applicant seeking
registration,57 and requires any direct owners, principals, or indirect owners of an applicant that are required to be
reported on the application for registration to submit fingerprints for live-scan processing.58
In December 2023, the FBI communicated to OFR’s liaison at DLE that the Act’s fingerprinting requirements were
insufficient for the FBI to continue providing fingerprint services to OFR.59 The FBI cited Pub. L. 92-544, 86 Stat.
50 17 C.F.R. § 230.506(d).
51 S. 517.0616, F.S.
52 U.S. Securities and Exchange Commission, Disqualification of Felons and Other "Bad Actors" from Rule 506 Offerings and
Related Disclosure Requirements, Sep. 2013, https://www.sec.gov/resources-small-businesses/small-business-compliance-
guides/disqualification-felons-other-bad-actors-rule-506-offerings-related-disclosure-requirements#P9_40 (last visited Mar.
1, 2025).
53 Id. See also 17 C.F.R. § 230.506(d)(1).
54 Office of Financial Regulation, Agency Analysis of 2025 House Bill 379, at p. 3 (Feb. 12, 2025).
55 An issuer filing an application under the Act must, at the time of filing, pay OFR a nonreturnable fee of $1,000 per application
for each offering that exceeds the amount provided in s. 3(b) of the Securities Act of 1933, as amended, or $200 per application
for each offering that does not exceed the amount provided in s. 3(b) of the Securities Act of 1933, as amended. S. 517.081(8),
F.S.
56 S. 517.081(9)(a), F.S.
57 See s. 517.12(6)(a)-(d), F.S.
58 S. 517.12(6), F.S.
59 Supra, note 54, at p. 5.
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1115 (1972) and indicated the categories of individuals subject to the Act’s fingerprinting requirements were
unclear and overly broad and that additional definitions were needed.60
Exemption for Certain M&A Brokers from Registration
The Act provides an exemption from registration requirements for certain merger and acquisition (M&A)
brokers.61,62 The Act’s exemption is based off of a model rule promulgated by the North American Securities
Administrators Association’s (NASAA).63 The NASAA is a voluntary, international, association whose membership
consists of 67 state, provincial, and territorial securities administrators.64 Formed in 1919, NASAA is the oldest
international organization devoted to investor protection.65 NASAA advocates on behalf of state securities agencies
in the United States that are responsible for capital formation and investor protection.66 NASAA also coordinates
training and education seminars for securities agency staff67 and creates model rules for implementation amongst
its members.68
NASAA adopted the NASAA Model Rule Exempting Certain M&A Brokers from Registration (Model Rule) in
September of 2015.69 The Model Rule was subsequently incorporated into the Act in July of 2016.70 NASAA
amended the Model Rule in May of 2024, to update the Model Rule in light of certain amendments that were made
to subsection 15(b)(13) of the Securities and Exchange Act of 1934.71
Under the Act’s exemption, prior to the completion of any securities transaction, an M&A broker must receive
written assurances from the control person with the largest percentage of ownership for both the buyer and seller
engaged in the transaction that, after the transaction is completed, will be a control person of an eligible privately
held company.72
Currently, an M&A broker engaged in a transaction exempt from s. 517.061(7), F.S., is exempt from registration
under the Act unless the M&A broker:
Directly or indirectly, in connection with the transfer of ownership of an eligible privately held company,
receives, holds, transmits, or has custody of the funds or securities to be exchanged by the parties to the
transaction;
Engages on behalf of an issuer in a public offering of any class of securities which is registered, or which is
required to be registered, with the SEC under the Securities Exchange Act of 1934, or with OFR under s.
517.07; or for which the issuer files, or is required to file, periodic information, documents, and reports
under s. 15(d) of the Securities Exchange Act of 1934;
Engages on behalf of any party in a transaction involving a public shell company;
Is subject to a suspension or revocation of registration under s. 15(b)(4) of the Securities Exchange Act of
1934;
60 Id.
61 For purposes of this exemption, a broker is considered an M&A broker if he or she, or any person associated with him or her,
engages in the business of effecting securities transactions solely in connection with the transfer of ownership of an eligible
privately held company, regardless of whether the broker acts on behalf of a seller or buyer, through the purchase, sale,
exchange, issuance, repurchase, or redemption of, or a business combination involving, securities or assets of the eligible
privately held company. S. 517.12(21)(a)4., F.S.
62 See s. 517.12(21), F.S. for the Act’s exemption for M&A brokers.
63 See North American Securities Administrators Association, Model Rule Exempting Certain Merger & Acquisition Brokers From
Registration, https://www.nasaa.org/wp-content/uploads/2024/05/Model-Rule-Exempting-Certain-Merger-and-Acquisition-
Brokers-From-Registration-_5-6-2024.pdf (last visited Mar. 1, 2025).
64 NASAA, Welcome to NASAA, https://www.nasaa.org/about/ (last visited Mar. 1, 2025).
65 Id.
66 Id.
67 Id.
68 See, e.g., NASAA, NASAA Model Rule on Investment Adviser Representative Continuing Education (Model Rule 2002-411(h) or
1956-204(B)(6)-CE), https://www.nasaa.org/wp-content/uploads/2020/10/NASAA-IAR-CE-Model-Rule.pdf (last visited Mar.
1, 2025).
69 Supra note 63, at p. 1.
70 Supra note 54, at p. 6. See also, ch. 2016-111, Laws of Fla.
71 Supra note 54, at p. 6.
72 S. 517.12(21)(b), F.S.
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Is subject to a statutory disqualification described in s. 3(a)(39) of the Securities Exchange Act of 1934;
Is subject to a disqualification under the SEC Rule 506(d); or
Is subject to a final order described in s. 15(b)(4)(H) of the Securities Exchange Act of 1934.73
Securities Guaranty Fund
The Securities Guaranty Fund (Fund) was established for the purpose of providing monetary relief to victims of
securities violations under the Act, specifically to those who are entitled to monetary damages or restitution and
cannot recover the full amount of such monetary damages or restitution from the wrongdoer.74 The Fund is funded
by a percentage of revenues received as assessment fees by OFR.75
Under the Act, a person must meet the following conditions to be eligible for payment from the Fund:
The person holds an unsatisfied final judgement in which a wrongdoer was found to have violated ss.
517.07 or 517.301, F.S.;
The person has applied any amounts recovered from the judgment debtor or from any other source to the
damages awarded by the court or arbitrator; and
The person is a natural person who was a resident of Florida, or is a business entity that was domiciled in
Florida, at the time of the violation giving rise to the claim.76
Additionally, the Act requires an eligible person, or receiver on behalf of an eligible person, seeking payment from
the Fund to file a written application with OFR on a form that the Commission may prescribe by rule.77 The
application must be filed with OFR within one year after the date of the final judgement, the date on which the
restitution order became ripe for execution, or the date of any appealable decision thereon.
The application for payment from the Fund must contain, at a minimum, the following information:
The eligible person’s and, if applicable, the receiver’s full names, addresses, and contact information.
The person ordered to pay restitution.
If the eligible person is a business entity, the eligible person’s type and place of organization and, as
applicable, a copy, as amended, of its articles of incorporation, articles of organization, trust agreement, or
partnership agreement.
Any final judgment and a copy thereof.
Any restitution order pursuant to s. 517.191(3), F.S., and a copy thereof.
An affidavit from the eligible person stating either one of the following:
o That the eligible person has made all reasonable searches and inquiries to ascertain whether the
judgment debtor possesses real or personal property or other assets subject to being sold or
applied in satisfaction of the final judgment and, by the eligible person’s search, that the eligible
person has not discovered any property or assets.
o That the eligible person has taken necessary action on the property and assets of the wrongdoers
but the final judgment remains unsatisfied.
If the application is filed by the receiver, an affidavit from the receiver stating the amount of restitution
owed to the eligible person on whose behalf the claim is filed; the amount of any money, property, or assets
paid to the eligible person on whose behalf the claim is filed by the person over whom the receiver is
appointed; and the amount of any unsatisfied portion of any eligible person’s order of restitution.
The eligible person’s residence or domicile at the time of the violation of ss. 517.07 or 517.301, F.S., which
resulted in the eligible person’s monetary damages.
The amount of any unsatisfied portion of the eligible person’s final judgment.
73 S. 517.12(21)(c), F.S.
74 S. 517.131(2), F.S.
75 S. 517.131(1)(a), F.S. A maximum of 20% of all revenues received as assessment fees pursuant to ss. 517.12(9) and (10), F.S.,
for dealers and investment advisers (or s. 517.1201, F.S., for federal covered advisers), and a maximum of 10% of all revenues
received as assessment fees pursuant to ss. 517.12(9) and (10), F.S., for associated persons must be part of the regular
registration fee and must be transferred to the Fund.
76 S. 517.131(3), F.S.
77 S. 517.131(5), F.S.
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Whether an appeal or motion to vacate an arbitration award has been filed.78
RECENT LEGISLATION:
YEAR BILL # HOUSE SPONSOR(S) SENATE SPONSOR OTHER INFORMATION
2024 CS/CS/HB 311 Barnaby Brodeur The 2024 legislation that made
significant substantive
changes throughout the Act.
2023 CS/CS/HB 253 Barnaby Gruters The 2023 legislation that made
technical amendments
throughout the Act.
BILL HISTORY
STAFF
DIRECTOR/ ANALYSIS
COMMITTEE REFERENCE ACTION DATE POLICY CHIEF PREPARED BY
Insurance & Banking Lloyd Fletcher
Subcommittee
Commerce Committee
78 Id.
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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 379 2025
1 A bill to be entitled
2 An act relating to securities; amending s. 517.021,
3 F.S.; providing and revising definitions; amending s.
4 517.061, F.S.; revising the circumstances under which
5 securities transactions are exempt from registration
6 requirements; amending s. 517.0612, F.S.; revising the
7 filing requirements for securities issuers under the
8 Florida Invest Local Exemption law; amending s.
9 517.0614, F.S.; revising circumstances under which
10 securities offers and sales are not subject to
11 integration with other offerings; amending s.
12 517.0616, F.S.; revising the registration exemptions
13 that are available to specified issuers under certain
14 circumstances; providing applicability of certain
15 disqualification provisions under a specified
16 Securities and Exchange Commission rule; amending s.
17 517.075, F.S.; making a technical change; amending s.
18 517.081, F.S.; revising the requirements for
19 securities registration applications; amending s.
20 517.12, F.S.; revising the list of persons who must
21 submit fingerprints for live-scan processing for
22 registration applications; providing fees for
23 fingerprint processing; providing and revising
24 definitions; revising the written assurances
25 requirements that merger and acquisition brokers must
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26 receive from certain control persons under specified
27 circumstances; revising the circumstances under which
28 merger and acquisition brokers are not exempt from
29 specified securities registration; amending s.
30 517.131, F.S.; providing a definition; revising the
31 circumstances under which a person is eligible for
32 payment from the Securities Guaranty Fund; revising
33 the requirements for applications for payment from the
34 fund; amending s. 517.301, F.S.; specifying a
35 prohibition against certain misrepresentations in
36 issuing and selling securities; amending ss. 517.211
37 and 517.315, F.S.; conforming cross-references;
38 providing an effective date.
39
40 Be It Enacted by the Legislature of the State of Florida:
41
42 Section 1. Subsections (6) through (9), (10), (11) through
43 (17), (18) through (25), (26), and (27) of section 517.021,
44 Florida Statutes, are renumbered as subsections (7) through
45 (10), (12), (14) through (20), (23) through (30), (32), and
46 (33), respectively, present subsections (11) and (15) are
47 amended, and new subsections (6), (11), (13), (21), (22), and
48 (31) are added to that section, to read:
49 517.021 Definitions.—When used in this chapter, unless the
50 context otherwise indicates, the following terms have the
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51 following respective meanings:
52 (6) "Branch manager" means a natural person who
53 administers or supervises the affairs or operations of a branch
54 office.
55 (11) "Corporation" has the same meaning as "corporation" or
56 "domestic corporation" in s. 607.01401 or "foreign corporation"
57 in s. 607.01401.
58 (13) "Director" means a person appointed or elected to sit
59 on a board that manages the affairs of a corporation or other
60 organization by electing or exercising control over its
61 officers.
62 (14)(11) "Federal covered adviser" means a person that is
63 registered or required to be registered under s. 203 of the
64 Investment Advisers Act of 1940, as amended. The term does not
65 include any person that is excluded from the definition of
66 investment adviser under subparagraphs (19)(b)1.-7. (16)(b)1.-7.
67 and 9.
68 (18)(15) "Intermediary" means a natural person that
69 residing in this state or a corporation, trust, partnership,
70 limited liability company, association, or other legal entity
71 registered with the Secretary of State to do business in this
72 state, which facilitates through its website the offer or sale
73 of securities of an issuer with a principal place of business in
74 this state.
75 (21) "Limited liability company" has the same meaning as
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76 "limited liability company" or "foreign limited liability
77 company," as those terms are defined in s. 605.0102.
78 (22) "Limited liability company manager" or "limited
79 liability managing member" means a person who is responsible
80 alone or in concert with others for performing the management
81 functions of a limited liability company.
82 (31) "Trust" has the same meaning as in s. 731.201.
83 Section 2. Subsections (7) and (9), paragraph (f) of
84 subsection (11), and subsections (18), (19), and (20) of section
85 517.061, Florida Statutes, are amended to read:
86 517.061 Exempt transactions.—Except as otherwise provided
87 in subsection (11), the exemptions provided herein from the
88 registration requirements of s. 517.07 are self-executing and do
89 not require any filing with the office before being claimed. Any
90 person who claims entitlement to an exemption under this section
91 bears the burden of proving such entitlement in any proceeding
92 brought under this chapter. The registration provisions of s.
93 517.07 do not apply to any of the following transactions;
94 however, such transactions are subject to s. 517.301:
95 (7) The offer or sale of securities, solely in connection
96 with the transfer of ownership of an eligible privately held
97 company, through a merger and acquisition broker in accordance
98 with s. 517.12(22) s. 517.12(21).
99 (9) The offer or sale of securities to:
100 (a) A bank, trust company, savings institution, insurance
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101 company, dealer, investment company as defined in the Investment
102 Company Act of 1940, 15 U.S.C. s. 80a-3, as amended, pension or
103 profit-sharing trust, or qualified institutional buyer, whether
104 any of such entities is acting in its individual or fiduciary
105 capacity.
106 (b) A savings and loan association, building and loan
107 association, cooperative bank, homestead association, or credit
108 union, which is supervised and examined by a state or federal
109 authority having supervision over any such institution.
110 (c) A federal covered adviser, investment adviser
111 registered pursuant to the laws of a state, exempt reporting
112 adviser or private fund adviser as those terms are defined in s.
113 517.12(23)(a)2. and 3., respectively, investment adviser relying
114 on the exemption from registering with the Securities and
115 Exchange Commission under s. 203(l) or (m) of the Investment
116 Advisers Act of 1940, as amended, business development company
117 as defined in s. 2(a)(48) of the Investment Company Act of 1940,
118 as amended, or business development company as defined in s.
119 202(a)(22) of the Investment Advisers Act of 1940, as amended.
120 (d) A small business investment company licensed by the
121 Small Business Administration under s. 301(c) of the Small
122 Business Investment Act of 1958, as amended, or rural business
123 investment company as defined in s. 384A of the Consolidated
124 Farm and Rural Development Act.
125 (e) A plan established and maintained by a state, a
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126 political subdivision thereof, or any agency or instrumentality
127 of a state or a political subdivision, for the benefit of its
128 employees, if such plan has total assets in excess of $5
129 million, an employee benefit plan within the meaning of the
130 Employee Retirement Income Security Act of 1974 if the
131 investment decision is made by a plan fiduciary, as described in
132 s. 3(21) of such act, which is a bank, savings and loan
133 association, insurance company, or federal covered adviser, or
134 if the employee benefit plan has total assets in excess of $5
135 million or, if a self-directed plan, with investment decisions
136 made solely by persons that are accredited investors.
137 (f) An organization described in s. 501(c)(3) of the
138 Internal Revenue Code, corporation, Massachusetts trust or
139 similar business trust, partnership, or limited liability
140 company, not formed for the specific purpose of acquiring the
141 securities offered, with total assets in excess of $5 million.
142 (g) A trust, with total assets in excess of $5 million,
143 not formed for the specific purpose of acquiring the securities
144 offered, whose purchase is directed by a sophisticated person as
145 described in Securities and Exchange Commission Rule
146 506(b)(2)(ii), 17 C.F.R. s. 230.506(b)(2)(ii), as amended.
147 (h) An entity of a type not listed in paragraphs (a)-(g)
148 or paragraph (j) which owns investments as defined in Securities
149 and Exchange Commission Rule 2a51-1(b), 17 C.F.R s. 270.2a51-
150 1(b), as amended, in excess of $5 million and is not formed for
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151 the specific purpose of acquiring the securities offered.
152 (i) A family office as defined in Securities and Exchange
153 Commission Rule 202(a)(11)(G)-1 under the Investment Advisers
154 Act of 1940, 17 C.F.R. s. 275.202(a)(11)(G)-1, as amended,
155 provided that:
156 1. The family office has assets under management in excess
157 of $5 million;
158 2. The family office is not formed for the specific
159 purpose of acquiring the securities offered; and
160 3. The prospective investment of the family office is
161 directed by a person who has knowledge and experience in
162 financial and business matters that the family office is capable
163 of evaluating the merits and risks of the prospective
164 investment.
165 (j) An entity in which all of the equity owners are
166 described in paragraphs (a)-(i).
167 (11) Offers or sales of securities by an issuer in a
168 transaction that meets all of the following conditions:
169 (f) The issuer files with the office a notice of
170 transaction on a form prescribed by commission rule, an
171 irrevocable written, a consent to service of civil process
172 similar to that provided in s. 517.101, and a copy of the
173 general announcement within 15 days after the first sale is made
174 in this state. The commission may adopt by rule procedures for
175 filing documents by electronic means.
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176 (18) Any nonissuer transaction by a registered dealer, and
177 any resale transaction by a sponsor of a unit investment trust
178 registered under the Investment Company Act of 1940, as amended,
179 in a security of a class that has been outstanding in the hands
180 of the public for at least 90 days; provided that, at the time
181 of the transaction, the following conditions in paragraphs (a),
182 (b), and (c) and either paragraph (d) or paragraph (e) are met:
183 (a) The issuer of the security is actually engaged in
184 business and is not in the organizational stage or in bankruptcy
185 or receivership and is not a blank check, blind pool, or shell
186 company whose primary plan of business is to engage in a merger
187 or combination of the business with, or an acquisition of, an
188 unidentified person.
189 (b) The security is sold at a price reasonably related to
190 the current market price of the security.
191 (c) The security does not constitute the whole or part of
192 an unsold allotment to, or a subscription or participation by,
193 the dealer as an underwriter of the security.
194 (d) The security is listed in a nationally recognized
195 securities manual designated by rule of the commission or a
196 document filed with and publicly viewable through the Securities
197 and Exchange Commission electronic data gathering and retrieval
198 system and contains:
199 1. A description of the business and operations of the
200 issuer.;
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201 2. The names of the issuer's officers and directors, if
202 any, or, in the case of an issuer not domiciled in the United
203 States, the corporate equivalents of such persons in the
204 issuer's country of domicile.;
205 3. An audited balance sheet of the issuer as of a date
206 within 18 months before such transaction or, in the case of a
207 reorganization or merger in which parties to the reorganization
208 or merger had such audited balance sheet, a pro forma balance
209 sheet.; and
210 4. An audited income statement for each of the issuer's
211 immediately preceding 2 fiscal years, or for the period of
212 existence of the issuer, if in existence for less than 2 years
213 or, in the case of a reorganization or merger in which the
214 parties to the reorganization or merger had such audited income
215 statement, a pro forma income statement.
216 (e)1. The issuer of the security has a class of equity
217 securities listed on a national securities exchange registered
218 under the Securities Exchange Act of 1934, as amended;
219 2. The class of security is quoted, offered, purchased, or
220 sold through an alternative trading system registered under
221 Securities and Exchange Commission Regulation ATS, 17 C.F.R. s.
222 242.301, as amended, and the issuer of the security has made
223 current information publicly available in accordance with
224 Securities and Exchange Commission Rule 15c2-11, 17 C.F.R. s.
225 240.15c2-11, as amended;
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226 3. The issuer of the security is a unit investment trust
227 registered under the Investment Company Act of 1940, as amended;
228 4. The issuer of the security has been engaged in
229 continuous business, including predecessors, for at least 3
230 years; or
231 5. The issuer of the security has total assets of at least
232 $2 million based on an audited balance sheet as of a date within
233 18 months before such transaction or, in the case of a
234 reorganization or merger in which parties to the reorganization
235 or merger had such audited balance sheet, a pro forma balance
236 sheet.
237 (19) The offer or sale of any security effected by or
238 through a person in compliance with s. 517.12(17) s. 517.12(16).
239 (20)(a) A nonissuer transaction in an outstanding security
240 by or through a dealer registered or exempt from registration
241 under this chapter, if, at the time of the transaction, all of
242 the following conditions are met true:
243 1.(a) The issuer is a reporting issuer in a foreign
244 jurisdiction designated by this subsection or by commission
245 rule, and the issuer has been subject to continuous reporting
246 requirements in such foreign jurisdiction for not less than 180
247 days before the transaction.
248 2.(b) The security is listed on a foreign securities
249 exchange or foreign securities market the securities exchange
250 designated by this subsection or by commission rule, is a
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251 security of the same issuer which is of senior or substantially
252 equal rank to the listed security, or is a warrant or right to
253 purchase or subscribe to any such security.
254 (b) The commission shall consider all of the following in
255 designating a foreign securities exchange or foreign securities
256 market for purposes of this subsection:
257 1. Organization under foreign law.
258 2. Association with a generally recognized community of
259 dealers, financial institutions, or other professional
260 intermediaries with an established operating history.
261 3. Oversight by a governmental or self-regulatory body.
262 4. Oversight standards set by general law.
263 5. Reporting of securities transactions on a regular basis
264 to a governmental or self-regulatory body.
265 6. A system for exchange of price quotations through
266 common communications media.
267 7. An organized clearance and settlement system.
268 8. Listing in Securities and Exchange Commission
269 Regulation S Rule 902, 17 C.F.R. s. 230.902, as amended.
270
271 For purposes of this subsection, Canada, together with its
272 provinces and territories, is designated as a foreign
273 jurisdiction, and Toronto Stock Exchange, Inc., is designated as
274 a securities exchange. If, after an administrative hearing in
275 compliance with ss. 120.569 and 120.57, the office finds that
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276 revocation is necessary or appropriate in furtherance of the
277 public interest and for the protection of investors, it may
278 revoke the designation of a foreign securities exchange or
279 foreign securities market under this subsection.
280 Section 3. Subsection (10) of section 517.0612, Florida
281 Statutes, is amended to read:
282 517.0612 Florida Invest Local Exemption.—
283 (10) The issuer must file with the office a notice of
284 transaction on a form prescribed by commission rule, an
285 irrevocable written consent to service of civil process similar
286 to that provided in s. 517.101, and a copy of the disclosure
287 statement described in subsection (8) at least the offering with
288 the office, in writing or in electronic form, in a format
289 prescribed by commission rule, no less than 5 business days
290 before the offering commences, along with the disclosure
291 statement described in subsection (8). If there are any material
292 changes to the information previously submitted, the issuer
293 must, within 3 business days after such material change, file an
294 amended notice.
295 Section 4. Paragraph (b) of subsection (2) of section
296 517.0614, Florida Statutes, is amended to read:
297 517.0614 Integration of offerings.—
298 (2) The integration analysis required by subsection (1) is
299 not required if any of the following nonexclusive safe harbors
300 apply:
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301 (b) Offers and sales made in compliance with any of the
302 following provisions are not subject to integration with other
303 offerings:
304 1. Section 517.051 or s. 517.061, except s. 517.061(10) or
305 (11) s. 517.061(9), (10), or (11).
306 2. Section 517.0611 or s. 517.0612.
307 Section 5. Section 517.0616, Florida Statutes, is amended
308 to read:
309 517.0616 Disqualification.—
310 (1) A registration exemption under s. 517.061(11) s.
311 517.061(9), (10), and (11), s. 517.0611, or s. 517.0612 is not
312 available to an issuer if, at the time the issuer makes an offer
313 for the sale of a security, the issuer; a predecessor of the
314 issuer; an affiliated issuer; a director, executive officer, or
315 other officer of the issuer participating in the offering; a
316 general partner or managing member of the issuer; a beneficial
317 owner of 20 percent or more of the issuer's outstanding voting
318 equity securities, calculated on the basis of voting power; or a
319 promoter connected with the issuer in any capacity at the time
320 of such sale that would be disqualified under Securities and
321 Exchange Commission Rule 506(d), 17 C.F.R. s. 230.506(d), as
322 amended, at the time the issuer makes an offer for the sale of a
323 security.
324 (2) The disqualification under Securities and Exchange
325 Commission Rule 506(d), 17 C.F.R. s. 230.506(d), as amended,
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326 does not apply to any other person or entity listed in such
327 rule.
328 Section 6. Subsection (2) of section 517.075, Florida
329 Statutes, is amended to read:
330 517.075 Cuba, prospectus disclosure of doing business
331 with, required.—
332 (2) Any disclosure required by subsection (1) must
333 include:
334 (a) The name of such person, affiliate, or government with
335 which the issuer does business and the nature of that business.;
336 (b) A statement that the information is accurate as of the
337 date the securities were effective with the United States
338 Securities and Exchange Commission or with the office, whichever
339 date is later.; and
340 (c) A statement that current information concerning the
341 issuer's business dealings with the government of Cuba or with
342 any person or affiliate located in Cuba may be obtained from the
343 office, which statement must include the address and phone
344 number of the office.
345 Section 7. Subsection (5) and paragraph (a) of subsection
346 (9) of section 517.081, Florida Statutes, are amended to read:
347 517.081 Registration procedure.—
348 (5) All of The following issuers are not eligible to
349 submit a simplified offering circular:
350 (a) An issuer that is subject to any of the
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351 disqualifications described in Securities and Exchange
352 Commission Rule 262, 17 C.F.R. s. 230.262, as amended, or that
353 has been or is engaged or is about to engage in an activity that
354 would be grounds for denial, revocation, or suspension under s.
355 517.111. For purposes of this paragraph, an issuer includes an
356 issuer's director, officer, general partner, manager or managing
357 member, trustee, or a person owning at least 10 percent of the
358 ownership interests of the issuer; a promoter or selling agent
359 of the securities to be offered; or any officer, director,
360 partner, or manager or managing member of such selling agent.
361 (b) An issuer that is a development-stage company that
362 either has no specific business plan or purpose or has indicated
363 that its business plan is to merge with an unidentified business
364 entity or entities.
365 (c) An issuer of offerings in which the specific business
366 or properties cannot be described.
367 (d) An issuer that the office determines is ineligible
368 because the simplified circular does not provide full and fair
369 disclosure of material information for the type of offering to
370 be registered by the issuer.
371 (9)(a) The office shall record the registration of a
372 security in the register of securities if, upon examination of
373 an application, it finds that all of the following requirements
374 are met:
375 1. The application is complete.
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376 2. The fee imposed in subsection (8) has been paid.
377 3. The sale of the security would not be fraudulent and
378 would not work or tend to work a fraud upon the purchaser.
379 4. The terms of the sale of such securities would be fair,
380 just, and equitable.
381 5. The enterprise or business of the issuer is not based
382 upon unsound business principles.
383 Section 8. Subsections (7) through (22) of section 517.12,
384 Florida Statutes, are renumbered as subsections (8) through
385 (23), respectively, subsection (6), present subsection (10),
386 paragraph (b) of present subsection (14), and present
387 subsections (19), (20), and (21) are amended, and a new
388 subsection (7) is added to that section, to read:
389 517.12 Registration of dealers, associated persons,
390 intermediaries, and investment advisers.—
391 (6) The application must also contain such information as
392 the commission or office may require about the applicant; any
393 member, principal, or director of the applicant or any person
394 having a similar status or performing similar functions; any
395 person directly or indirectly controlling the applicant; or any
396 employee of a dealer or of an investment adviser rendering
397 investment advisory services. Each applicant and any direct
398 owners, principals, or indirect owners that are required to be
399 reported on Form BD or Form ADV pursuant to subsection (14)
400 shall submit fingerprints for live-scan processing in accordance
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401 with rules adopted by the commission. The fingerprints may be
402 submitted through a third-party vendor authorized by the
403 Department of Law Enforcement to provide live-scan
404 fingerprinting. The costs of fingerprint processing shall be
405 borne by the person subject to the background check. The
406 Department of Law Enforcement shall conduct a state criminal
407 history background check, and a federal criminal history
408 background check must be conducted through the Federal Bureau of
409 Investigation. The office shall review the results of the state
410 and federal criminal history background checks and determine
411 whether the applicant meets licensure requirements. The
412 commission may waive, by rule, the requirement that applicants,
413 including any direct owners, principals, or indirect owners that
414 are required to be reported on Form BD or Form ADV pursuant to
415 subsection (14), submit fingerprints or the requirement that
416 such fingerprints be processed by the Department of Law
417 Enforcement or the Federal Bureau of Investigation. The
418 commission or office may require information about any such
419 applicant or person concerning such matters as:
420 (a) The applicant's or person's full name, and any other
421 names by which the applicant or person may have been known, and
422 the applicant's or person's age, social security number,
423 photograph, qualifications, and educational and business
424 history.
425 (b) Any injunction or administrative order by a state or
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426 federal agency, national securities exchange, or national
427 securities association involving a security or any aspect of a
428 dealer's or investment adviser's regulated business and any
429 injunction or administrative order by a state or federal agency
430 regulating banking, insurance, finance, or small loan companies,
431 real estate, mortgage brokers, or other related or similar
432 industries, which injunctions or administrative orders relate to
433 such person.
434 (c) The applicant's or person's conviction of, or plea of
435 nolo contendere to, a criminal offense or the applicant's or
436 person's commission of any acts which would be grounds for
437 refusal of an application under s. 517.161.
438 (d) The names and addresses of other persons of whom the
439 office may inquire as to the applicant's or person's character,
440 reputation, and financial responsibility.
441 (7)(a)1. The following persons must submit a full set of
442 fingerprints to the Department of Law Enforcement or to a
443 vendor, entity, or agency authorized under s. 943.053(13) for
444 live-scan processing in accordance with rules adopted by the
445 commission.
446 a. A natural person filing with the office an application
447 for registration as an associated person.
448 b. A natural person who holds the title of president,
449 treasurer, chief executive officer, chief financial officer,
450 chief operations officer, chief legal officer, or chief
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451 compliance officer for a dealer or investment adviser applicant.
452 c. A natural person who is a director of a dealer or
453 investment adviser applicant.
454 d. A natural person who is a trustee of a trust that owns
455 5 percent or more of a class of a voting security of a dealer or
456 investment adviser applicant, or that has the right to receive
457 upon dissolution, or has contributed, 5 percent or more of the
458 capital of a dealer or investment adviser applicant.
459 e. A natural person who is a direct owner of a dealer or
460 investment adviser applicant.
461 f. Each natural person who is a shareholder of a
462 corporation that is a direct owner of a dealer or investment
463 adviser applicant who beneficially owns, has the right to vote,
464 or has the power to sell or direct the sale of, 25 percent or
465 more of a class of a voting security of such corporation. For
466 purposes of this sub-subparagraph, a shareholder beneficially
467 owns any securities:
468 (I) Owned by the shareholder's child, stepchild,
469 grandchild, parent, stepparent, grandparent, spouse, sibling,
470 mother-in-law, father-in-law, son-in-law, daughter-in-law,
471 brother-in-law, or sister-in-law sharing the same residence; or
472 (II) That the shareholder has the right to acquire, within
473 60 days, through the exercise of any option, warrant, or right
474 to purchase the securities.
475 g. Each natural person who is a general partner of, and
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476 each natural person who is a limited partner or special partner
477 of, a partnership that is a direct owner of a dealer or
478 investment adviser applicant who has the right to receive upon
479 dissolution, or has contributed, 25 percent or more of such
480 partnership's capital.
481 h. Each natural person who is a member of a limited
482 liability company that is a direct owner of a dealer or
483 investment adviser applicant who has the right to receive upon
484 dissolution, or has contributed, 25 percent or more of such
485 limited liability company's capital, and, if such limited
486 liability company is managed by elected managers, each elected
487 manager.
488 2. For purposes of this paragraph, the term "direct owner"
489 means:
490 a. A shareholder who owns 5 percent or more of a class of
491 voting securities of a dealer or investment adviser applicant,
492 and includes any person who owns, beneficially owns, has the
493 right to vote, or has the power to sell or direct the sale of, 5
494 percent or more of a class of a voting security of the dealer or
495 investment adviser applicant. For purposes of this sub-
496 subparagraph, a person beneficially owns any securities:
497 (I) Owned by the shareholder's child, stepchild,
498 grandchild, parent, stepparent, grandparent, spouse, sibling,
499 mother-in-law, father-in-law, son-in-law, daughter-in-law,
500 brother-in-law, or sister-in-law sharing the same residence; or
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501 (II) That the shareholder has the right to acquire, within
502 60 days, through the exercise of any option, warrant, or right
503 to purchase the securities.
504 b. Each general partner and each limited partner or
505 special partner of a dealer or investment adviser applicant who
506 has the right to receive upon dissolution, or has contributed, 5
507 percent or more of the capital of a dealer or investment adviser
508 applicant.
509 c. A member who has the right to receive upon dissolution,
510 or has contributed, 5 percent or more of the capital of a dealer
511 or investment adviser applicant, and all elected managers of a
512 dealer or investment adviser applicant.
513 (b) A vendor, entity, or agency authorized under s.
514 943.053(13) to submit fingerprints electronically to the
515 Department of Law Enforcement shall submit the fingerprints to
516 the department for state processing, and the department shall
517 forward the fingerprints to the Federal Bureau of Investigation
518 for national processing.
519 (c) Fees for state and federal fingerprint processing
520 shall be borne by the person subject to the criminal history
521 record check. The state cost for fingerprint processing shall be
522 as provided in s. 943.053(3)(e).
523 (d) The office shall review the results of the state and
524 federal criminal history record checks and determine whether the
525 applicant is disqualified from registration. The commission may
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526 waive by rule the requirement that the persons listed in this
527 subsection submit fingerprints or the requirement that such
528 fingerprints be processed by the Department of Law Enforcement
529 or the Federal Bureau of Investigation.
530 (11)(a)(10)(a) If the office finds that the applicant has
531 complied with the applicable registration provisions of this
532 chapter and the rules made pursuant hereto, it shall register
533 the applicant unless the applicant is otherwise disqualified for
534 registration pursuant to law. The registration of each dealer,
535 investment adviser, and associated person expires on December 31
536 of the year the registration became effective unless the
537 registrant has renewed its registration on or before that date.
538 Registration may be renewed by furnishing such information as
539 the commission may require, together with payment of the fee
540 required in paragraph (10)(a) (9)(a) for dealers, investment
541 advisers, or associated persons and the payment of any amount
542 lawfully due and owing to the office pursuant to any order of
543 the office or pursuant to any agreement with the office. Any
544 dealer, investment adviser, or associated person who has not
545 renewed a registration by the time the current registration
546 expires may request reinstatement of such registration by filing
547 with the office, on or before January 31 of the year following
548 the year of expiration, such information as may be required by
549 the commission, together with payment of the fee required in
550 paragraph (10)(a) (9)(a) for dealers, investment advisers, or
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551 associated persons and a late fee equal to the amount of such
552 fee. Any reinstatement of registration granted by the office
553 during the month of January shall be deemed effective
554 retroactive to January 1 of that year.
555 (b) The office shall waive the $50 assessment fee for an
556 associated person required by paragraph (10)(a) (9)(a) for a
557 registrant renewing his or her registration who:
558 1. Is an active duty member of the United States Armed
559 Forces or the spouse of such member;
560 2. Is or was a member of the United States Armed Forces
561 and served on active duty within the 2 years preceding the
562 expiration date of the registration pursuant to paragraph (a).
563 To qualify for the fee waiver, a registrant who is a former
564 member of the United States Armed Forces who served on active
565 duty within the 2 years preceding the expiration date of the
566 registration must have received an honorable discharge upon
567 separation or discharge from the United States Armed Forces; or
568 3. Is the surviving spouse of a member of the United
569 States Armed Forces if the member was serving on active duty at
570 the time of death and died within the 2 years preceding the
571 surviving spouse's registration expiration date pursuant to
572 paragraph (a).
573
574 A registrant seeking such fee waiver must submit proof, in a
575 form prescribed by commission rule, that the registrant meets
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576 one of the qualifications in this paragraph.
577 (15)(14)
578 (b) In lieu of filing with the office the applications
579 specified in subsection (5), the fees required by subsection
580 (10) (9), the renewals required by subsection (11) (10), and the
581 termination notices required by subsection (12) (11), the
582 commission may by rule establish procedures for the deposit of
583 such fees and documents with the Central Registration Depository
584 or the Investment Adviser Registration Depository of the
585 Financial Industry Regulatory Authority, as developed under
586 contract with the North American Securities Administrators
587 Association, Inc.
588 (20)(19) An intermediary may not engage in business in
589 this state unless the intermediary is registered as a dealer or
590 as an intermediary with the office pursuant to this section to
591 facilitate the offer or sale of securities in accordance with s.
592 517.0611. An intermediary, in order to obtain registration, must
593 file with the office a written application on a form prescribed
594 by commission rule and pay a registration fee of $200. The fees
595 under this subsection shall be deposited into the Regulatory
596 Trust Fund of the office. The commission may establish by rule
597 procedures for depositing fees and filing documents by
598 electronic means if such procedures provide the office with the
599 information and data required by this section. Each intermediary
600 must also file an irrevocable written consent to service of
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601 civil process, as provided in s. 517.101.
602 (a) The application must contain such information as the
603 commission or office may require concerning:
604 1. The name of the applicant and address of its principal
605 office and each office in this state.
606 2. The applicant's form and place of organization; and, if
607 the applicant is:
608 a. A corporation, a copy of its articles of incorporation
609 and amendments to the articles of incorporation;
610 b. A limited liability company, a copy of its articles of
611 organization and amendments to the articles and a copy of the
612 company's operating agreement as may be amended; or
613 c. A partnership, a copy of the partnership agreement.
614 3. The website address where securities of the issuer will
615 be offered.
616 4. Contact information.
617 (b) The application must also contain such information as
618 the commission may require by rule about the applicant; any
619 member, principal, or director of the applicant or any person
620 having a similar status or performing similar functions; or any
621 persons directly or indirectly controlling the applicant. Each
622 applicant and any direct owners, principals, or indirect owners
623 that are required to be reported on a form adopted by commission
624 rule shall submit fingerprints for live-scan processing in
625 accordance with rules adopted by the commission. The
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626 fingerprints may be submitted through a third-party vendor
627 authorized by the Department of Law Enforcement to provide live-
628 scan fingerprinting. The costs of fingerprint processing shall
629 be borne by the person subject to the background check. The
630 Department of Law Enforcement shall conduct a state criminal
631 history background check, and a federal criminal history
632 background check must be conducted through the Federal Bureau of
633 Investigation. The office shall review the results of the state
634 and federal criminal history background checks and determine
635 whether the applicant meets registration requirements. The
636 commission may waive, by rule, the requirement that applicants,
637 including any direct owners, principals, or indirect owners,
638 which are required to be reported on a form adopted by
639 commission rule, submit fingerprints or the requirement that
640 such fingerprints be processed by the Department of Law
641 Enforcement or the Federal Bureau of Investigation. The
642 commission, by rule, or the office may require information about
643 any applicant or person, including:
644 1. The applicant's or person's full name and any other
645 names by which the applicant or person may have been known and
646 the applicant's or person's age, social security number,
647 photograph, qualifications, and educational and business
648 history.
649 2. Any injunction or administrative order by a state or
650 federal agency, national securities exchange, or national
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651 securities association involving a security or any aspect of an
652 intermediary's regulated business and any injunction or
653 administrative order by a state or federal agency regulating
654 banking, insurance, finance, real estate, mortgage brokers, or
655 other related or similar industries, which relate to such
656 person.
657 3. The applicant's or person's conviction of, or plea of
658 nolo contendere to, a criminal offense or the applicant's or
659 person's commission of any acts that would be grounds for
660 refusal of an application under s. 517.161.
661 (c)1. The following natural persons must submit a full set
662 of fingerprints to the Department of Law Enforcement or to a
663 vendor, entity, or agency authorized under s. 943.053(13) for
664 live-scan processing in accordance with rules adopted by the
665 commission:
666 a. A person filing with the office an application for
667 registration as an intermediary.
668 b. A person who holds the title of president, treasurer,
669 chief executive officer, chief financial officer, chief
670 operations officer, chief legal officer, or chief compliance
671 officer for an intermediary applicant.
672 c. A person who is a member of the intermediary
673 applicant's board of directors.
674 d. A person who is a trustee of a trust that owns 5
675 percent or more of a class of a voting security of the
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676 intermediary applicant, or that has the right to receive upon
677 dissolution or has contributed 5 percent or more of the
678 intermediary applicant's capital.
679 e. A person who is a direct owner of an intermediary
680 applicant.
681 f. Each person who is a shareholder of a corporation that
682 is a direct owner of an intermediary applicant who beneficially
683 owns, has the right to vote, or has the power to sell or direct
684 the sale of, 25 percent or more of a class of a voting security
685 of such corporation. For purposes of this sub-subparagraph, a
686 shareholder beneficially owns any securities:
687 (I) Owned by the shareholder's child, stepchild,
688 grandchild, parent, stepparent, grandparent, spouse, sibling,
689 mother-in-law, father-in-law, son-in-law, daughter-in-law,
690 brother-in-law, or sister-in-law sharing the same residence; or
691 (II) That the shareholder has the right to acquire, within
692 60 days, through the exercise of any option, warrant, or right
693 to purchase the securities.
694 g. Each person who is a general partner and each natural
695 person who is a limited partner or special partner of a
696 partnership that is a direct owner of an intermediary applicant
697 who has the right to receive upon dissolution, or have
698 contributed, 25 percent or more of such partnership's capital.
699 h. Each person who is a member of a limited liability
700 company that is a direct owner of an intermediary applicant who
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701 has the right to receive upon dissolution, or has contributed,
702 25 percent or more of such limited liability company's capital,
703 and, if such limited liability company is managed by elected
704 managers, each elected manager.
705 2. For purposes of this paragraph, the term "direct owner"
706 means:
707 a. A shareholder who owns 5 percent or more of a class of
708 voting securities of an intermediary applicant, and includes any
709 person who owns, beneficially owns, has the right to vote, or
710 has the power to sell or direct the sale of, 5 percent or more
711 of a class of a voting security of the intermediary applicant.
712 For purposes of this sub-sub-subparagraph, a person beneficially
713 owns any securities:
714 (I) Owned by the shareholder's child, stepchild,
715 grandchild, parent, stepparent, grandparent, spouse, sibling,
716 mother-in-law, father-in-law, son-in-law, daughter-in-law,
717 brother-in-law, or sister-in-law sharing the same residence; or
718 (II) That the shareholder has the right to acquire, within
719 60 days, through the exercise of any option, warrant, or right
720 to purchase the securities.
721 b. Each general partner and each limited partner or
722 special partner of an intermediary applicant who has the right
723 to receive upon dissolution, or has contributed, 5 percent or
724 more of the intermediary applicant's capital.
725 c. A member who has the right to receive upon dissolution,
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726 or has contributed, 5 percent or more of the intermediary
727 applicant's capital, and, if managed by elected managers, each
728 elected manager.
729 (d) The vendor, entity, or agency authorized under s.
730 943.053(13) to submit fingerprints electronically to the
731 Department of Law Enforcement shall submit the fingerprints to
732 the department for state processing, and the department shall
733 forward the fingerprints to the Federal Bureau of Investigation
734 for national processing.
735 (e) Fees for state and federal fingerprint processing
736 shall be borne by the person subject to the criminal history
737 record check. The state cost for fingerprint processing shall be
738 as provided in s. 943.053(3)(e).
739 (f) The office shall review the results of the state and
740 federal criminal history record checks and determine whether the
741 applicant is disqualified from registration. The commission may
742 waive by rule the requirement that applicants, including any
743 persons listed in sub-subparagraphs (c)1.b.-g., submit
744 fingerprints or the requirement that such fingerprints be
745 processed by the Department of Law Enforcement or the Federal
746 Bureau of Investigation.
747 (g)(c) The application must be amended within 30 days if
748 any information contained in the form becomes inaccurate for any
749 reason.
750 (h)(d) An intermediary or persons affiliated with the
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751 intermediary are not subject to any disqualification described
752 in s. 517.1611 or Securities and Exchange Commission Rule
753 506(d), 17 C.F.R. 230.506(d), adopted pursuant to the Securities
754 Act of 1933, as amended. Each director, officer, manager or
755 managing member, control person of the issuer, any person
756 occupying a similar status or performing a similar function, and
757 each person holding more than 20 percent of the ownership
758 interests of the intermediary is subject to this requirement.
759 (i)(e) If the office finds that the applicant has complied
760 with the applicable registration provisions of this chapter and
761 the rules adopted thereunder, it shall register the applicant.
762 The registration of each intermediary expires on December 31 of
763 the year the registration became effective unless the registrant
764 renews his or her registration on or before that date.
765 Registration may be renewed by furnishing such information as
766 the commission may require by rule, together with payment of a
767 $200 fee and the payment of any amount due to the office
768 pursuant to any order of the office or pursuant to any agreement
769 with the office. An intermediary who has not renewed a
770 registration by the time that the current registration expires
771 may request reinstatement of such registration by filing with
772 the office, on or before January 31 of the year following the
773 year of expiration, such information as required by the
774 commission, together with payment of the $200 fee and a late fee
775 of $200. Any reinstatement of registration granted by the office
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776 during the month of January is deemed effective retroactive to
777 January 1 of that year.
778 (21)(20) The registration requirements of this section do
779 not apply to any general lines insurance agent or life insurance
780 agent licensed under chapter 626, with regard to the sale of a
781 security as defined in s. 517.021(30)(g) s. 517.021(25)(g), if
782 the individual is directly authorized by the issuer to offer or
783 sell the security on behalf of the issuer and the issuer is a
784 federally chartered savings bank subject to regulation by the
785 Federal Deposit Insurance Corporation. Actions under this
786 subsection constitute activity under the insurance agent's
787 license for purposes of ss. 626.611 and 626.621.
788 (22)(a)(21)(a) As used in this subsection, the term:
789 1. "Broker" has the same meaning as "dealer" as defined in
790 s. 517.021.
791 2. "Business combination related shell company" means a
792 shell company that is formed by an entity that is not a shell
793 company solely for the purpose of:
794 a. Changing the corporate domicile of the entity solely
795 within the United States; or
796 b. Completing a business combination transaction, as
797 defined in 17 C.F.R. s. 230.165(f), among one or more entities
798 other than the company itself, none of which is a shell company.
799 3.2. "Control person" means a person an individual or
800 entity that possesses the power, directly or indirectly, to
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801 direct the management or policies of a company through ownership
802 of securities, by contract, or otherwise. A person is presumed
803 to be a control person of a company if, upon completion of a
804 transaction, the buyer or group of buyers with respect to a
805 particular company, the person:
806 a. Is a director, a general partner, a member, or a
807 manager of a limited liability company, or is an officer who
808 exercises executive responsibility or has a similar status or
809 function;
810 a.b. Has the power to vote 25 20 percent or more of a
811 class of voting securities or has the power to sell or direct
812 the sale of 25 20 percent or more of a class of voting
813 securities; or
814 b.c. In the case of a partnership or limited liability
815 company, may receive upon dissolution, or has contributed, 25 20
816 percent or more of the capital.
817 4.3. "Eligible privately held company" means a privately
818 held company that meets all of the following conditions:
819 a. The company does not have any class of securities which
820 is registered, or which is required to be registered, with the
821 United States Securities and Exchange Commission under the
822 Securities Exchange Act of 1934, 15 U.S.C. ss. 78a et seq., as
823 amended, or with the office under s. 517.07, or for which the
824 company files, or is required to file, summary and periodic
825 information, documents, and reports under s. 15(d) of the
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826 Securities Exchange Act of 1934, 15 U.S.C. s. 78o(d), as
827 amended.
828 b. In the fiscal year immediately preceding the fiscal
829 year during which the merger and acquisition broker begins to
830 provide services for the securities transaction, the company, in
831 accordance with its historical financial accounting records, has
832 earnings before interest, taxes, depreciation, and amortization
833 of less than $25 million or has gross revenues of less than $250
834 million. On July 1, 2021, and every 5 years thereafter, each
835 dollar amount in this sub-subparagraph shall be adjusted by
836 dividing the annual value of the Employment Cost Index for wages
837 and salaries for private industry workers, or any successor
838 index, as published by the Bureau of Labor Statistics, for the
839 calendar year preceding the calendar year in which the
840 adjustment is being made, by the annual value of such index or
841 successor index for the calendar year ending December 31, 2020
842 2012, and multiplying such dollar amount by the quotient
843 obtained. Each dollar amount determined under this sub-
844 subparagraph shall be rounded to the nearest multiple of
845 $100,000. The commission may by rule modify the dollar figures
846 if the commission determines that such a modification is
847 necessary or appropriate in the public interest or for the
848 protection of investors.
849 5.4. "Merger and acquisition broker" means a any broker
850 and any person associated with a broker engaged in the business
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851 of effecting securities transactions solely in connection with
852 the transfer of ownership of an eligible privately held company,
853 regardless of whether the that broker acts on behalf of a seller
854 or buyer, through the purchase, sale, exchange, issuance,
855 repurchase, or redemption of, or a business combination
856 involving, securities or assets of the eligible privately held
857 company.
858 6.5. "Public Shell company" means a company that at the
859 time of a transaction with an eligible privately held company:
860 a. Has any class of securities which is registered, or
861 which is required to be registered, with the United States
862 Securities and Exchange Commission under the Securities Exchange
863 Act of 1934, 15 U.S.C. ss. 78a et seq., or with the office under
864 s. 517.07, or for which the company files, or is required to
865 file, summary and periodic information, documents, and reports
866 under s. 15(d) of the Securities Exchange Act of 1934, 15 U.S.C.
867 s. 78o(d);
868 a.b. Has nominal or no operations.; and
869 b.c. Has nominal assets or no assets, assets consisting
870 solely of cash and cash equivalents, or assets consisting of any
871 amount of cash and cash equivalents and nominal other assets.
872 (b) Prior to the completion of any securities transaction
873 described in s. 517.061(7), a merger and acquisition broker must
874 receive written assurances from the control person with the
875 largest percentage of ownership for both the buyer and seller
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876 engaged in the transaction that:
877 1. After the transaction is completed, any person who
878 acquires securities or assets of the eligible privately held
879 company, acting alone or in concert, will be a control person of
880 the eligible privately held company or will be a control person
881 for the business conducted with the assets of the eligible
882 privately held company.; and
883 2. After the transaction is completed, any person who
884 acquires securities or assets of the eligible privately held
885 company, acting alone or in concert, will be active in the
886 management of the eligible privately held company or the
887 business conducted with the assets of the eligible privately
888 held company, and active in the management of the assets of the
889 eligible privately held company, by engaging in acts and
890 activities that include, but are not limited to, the following:
891 a. Electing executive officers.
892 b. Approving the annual budget.
893 c. Serving as an executive or other executive manager.
894 d. Carrying out such other activities as the commission
895 may by rule determine to be in the public interest.
896 3.2. If any person is offered securities in exchange for
897 securities or assets of the eligible privately held company,
898 such person will, before becoming legally bound to complete the
899 transaction, receive or be given reasonable access to the most
900 recent year-end financial statements of the issuer of the
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901 securities offered in exchange. The most recent year-end
902 financial statements shall be customarily prepared by the
903 issuer's management in the normal course of operations. If the
904 financial statements of the issuer are audited, reviewed, or
905 compiled, the most recent year-end financial statements must
906 include any related statement by the independent certified
907 public accountant; a balance sheet dated not more than 120 days
908 before the date of the exchange offer; and information
909 pertaining to the management, business, results of operations
910 for the period covered by the foregoing financial statements,
911 and material loss contingencies of the issuer.
912 (c) A merger and acquisition broker engaged in a
913 transaction exempt under s. 517.061(7) is exempt from
914 registration under this section unless the merger and
915 acquisition broker:
916 1. Directly or indirectly, in connection with the transfer
917 of ownership of an eligible privately held company, receives,
918 holds, transmits, or has custody of the funds or securities to
919 be exchanged by the parties to the transaction;
920 2. Engages on behalf of an issuer in a public offering of
921 any class of securities which is registered, or which is
922 required to be registered, with the United States Securities and
923 Exchange Commission under the Securities Exchange Act of 1934,
924 15 U.S.C. ss. 78a et seq., as amended, or with the office under
925 s. 517.07; or for which the issuer files, or is required to
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926 file, periodic information, documents, and reports under s.
927 15(d) of the Securities Exchange Act of 1934, 15 U.S.C. s.
928 78o(d), as amended;
929 3. Engages on behalf of any party in a transaction
930 involving a public shell company, other than a business
931 combination related shell company;
932 4. Directly, or indirectly through any of its affiliates,
933 provides financing related to the transfer of ownership of an
934 eligible privately held company;
935 5. Assists any party to obtain financing from an
936 unaffiliated third party without:
937 a. Complying with all other applicable laws in connection
938 with such assistance, including, if applicable, Regulation T
939 under 12 C.F.R. ss. 220 et seq., as amended; and
940 b. Disclosing any compensation in writing to the party;
941 6. Represents both the buyer and the seller in the same
942 transaction without providing clear written disclosure as to the
943 parties the broker represents and obtaining written consent from
944 both parties to the joint representation;
945 7. Facilitates a transaction with a group of buyers formed
946 with the assistance of the Merger and Acquisition Broker to
947 acquire the eligible privately held company;
948 8. Engages in a transaction involving the transfer of
949 ownership of an eligible privately held company to a passive
950 buyer or group of passive buyers;
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951 9. Binds a party to a transfer of ownership of an eligible
952 privately held company; or
953 10. Is subject to, or an officer, director, member,
954 manager, partner, or employee of the broker is subject to, the
955 following disciplinary actions:
956 a. Has been barred from association with a broker or
957 dealer by the Securities and Exchange Commission, any state, or
958 any self-regulatory organization; or
959 b. Is suspended from association with a broker or dealer.
960 4. Is subject to a suspension or revocation of
961 registration under s. 15(b)(4) of the Securities Exchange Act of
962 1934, 15 U.S.C. s. 78o(b)(4);
963 5. Is subject to a statutory disqualification described in
964 s. 3(a)(39) of the Securities Exchange Act of 1934, 15 U.S.C. s.
965 78c(a)(39);
966 6. Is subject to a disqualification under the United
967 States Securities and Exchange Commission Rule 506(d), 17 C.F.R.
968 s. 230.506(d); or
969 7. Is subject to a final order described in s. 15(b)(4)(H)
970 of the Securities Exchange Act of 1934, 15 U.S.C. s.
971 78o(b)(4)(H).
972 Section 9. Subsection (1), paragraph (a) of subsection
973 (2), and subsections (3) and (5) of section 517.131, Florida
974 Statutes, are amended to read:
975 517.131 Securities Guaranty Fund.—
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976 (1) As used in this section, the term:
977 (a) "Final judgment" includes an arbitration award
978 confirmed by a court of competent jurisdiction.
979 (b) "Restitution order" means a court order awarding a
980 specified monetary amount to a named aggrieved person for a
981 violation of s. 517.07 or s. 517.301 to be paid by a named
982 violator.
983 (2)(a) The Chief Financial Officer shall establish a
984 Securities Guaranty Fund to provide monetary relief to victims
985 of securities violations under this chapter who are entitled to
986 monetary damages or restitution and cannot recover the full
987 amount of such monetary damages or restitution from the
988 wrongdoer. An amount not exceeding 20 percent of all revenues
989 received as assessment fees pursuant to s. 517.12(10) and (11)
990 s. 517.12(9) and (10) for dealers and investment advisers or s.
991 517.1201 for federal covered advisers and an amount not
992 exceeding 10 percent of all revenues received as assessment fees
993 pursuant to s. 517.12(10) and (11) s. 517.12(9) and (10) for
994 associated persons must be part of the regular registration
995 license fee and must be transferred to or deposited in the
996 Securities Guaranty Fund.
997 (3) A person is eligible for payment from the Securities
998 Guaranty Fund if the person:
999 (a)1. Is a judgment creditor in Holds an unsatisfied final
1000 judgment or a named beneficiary or victim in an unsatisfied
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1001 restitution order entered on or after October 1, 2024, in which
1002 a wrongdoer was found to have violated s. 517.07 or s. 517.301;
1003 2. Has applied any amount recovered from the judgment
1004 debtor, a person ordered to pay restitution, or any other source
1005 to the damages awarded in a final judgment or restitution order
1006 by the court or arbitrator; and
1007 3. Is a natural person who was a resident of this state,
1008 or is a business entity that was domiciled in this state, at the
1009 time of the violation of s. 517.07 or s. 517.301; or
1010 (b) Is a receiver appointed pursuant to s. 517.191(2) by a
1011 court of competent jurisdiction for a wrongdoer ordered to pay
1012 restitution under s. 517.191(3) as a result of a violation of s.
1013 517.07 or s. 517.301 which has requested payment from the
1014 Securities Guaranty Fund on behalf of a person eligible for
1015 payment under paragraph (a).
1016
1017 If a person holds an unsatisfied final judgment or restitution
1018 order entered before October 1, 2024, in which a wrongdoer was
1019 found to have violated s. 517.07 or s. 517.301, such person's
1020 claim for payment from the Securities Guaranty Fund shall be
1021 governed by the terms of this section and s. 517.141 which were
1022 effective on the date of such final judgment or restitution
1023 order.
1024 (5) An eligible person, or a receiver on behalf of the
1025 eligible person, seeking payment from the Securities Guaranty
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1026 Fund must file with the office a written application on a form
1027 that the commission may prescribe by rule. The commission may
1028 adopt by rule procedures for filing documents by electronic
1029 means, provided that such procedures provide the office with the
1030 information and data required by this section. The application
1031 must be filed with the office within 1 year after the date of
1032 the final judgment, the date on which a restitution order has
1033 been ripe for execution, or the date of any appellate decision
1034 thereon, and, at minimum, must contain all of the following
1035 information:
1036 (a) The eligible person's and, if applicable, the
1037 receiver's full names, addresses, and contact information.
1038 (b) The name of the judgment debtor or person ordered to
1039 pay restitution.
1040 (c) If the eligible person is a business entity, the
1041 eligible person's type and place of organization and, as
1042 applicable, a copy, as amended, of its articles of
1043 incorporation, articles of organization, trust agreement, or
1044 partnership agreement.
1045 (d) A copy of any final judgment or and a copy thereof.
1046 (e) Any restitution order pursuant to s. 517.191(3), and a
1047 copy thereof.
1048 (e)(f) An affidavit from the eligible person stating
1049 either one of the following:
1050 1. That the eligible person has made all reasonable
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1051 searches and inquiries to ascertain whether the judgment debtor
1052 or person ordered to pay restitution possesses real or personal
1053 property or other assets subject to being sold or applied in
1054 satisfaction of the final judgment or restitution order and, by
1055 the eligible person's search, that the eligible person has not
1056 discovered any property or assets.
1057 2. That the eligible person has taken necessary action on
1058 the property and assets of the wrongdoers but the final judgment
1059 or restitution order remains unsatisfied.
1060 (f)(g) If the application is filed by the receiver, an
1061 affidavit from the receiver stating the amount of restitution
1062 owed to the eligible person on whose behalf the claim is filed;
1063 the amount of any money, property, or assets paid to the
1064 eligible person on whose behalf the claim is filed by the person
1065 over whom the receiver is appointed; and the amount of any
1066 unsatisfied portion of any eligible person's restitution order
1067 of restitution.
1068 (g)(h) The eligible person's residence or domicile at the
1069 time of the violation of s. 517.07 or s. 517.301 which resulted
1070 in the eligible person's monetary damages.
1071 (h)(i) The amount of any unsatisfied portion of the
1072 eligible person's final judgment or restitution order.
1073 (i)(j) Whether an appeal or motion to vacate an
1074 arbitration award has been filed.
1075 Section 10. Subsection (3) of section 517.301, Florida
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1076 Statutes, is amended to read:
1077 517.301 Fraudulent transactions; falsification or
1078 concealment of facts.—
1079 (3) It is unlawful for a person in issuing or selling a
1080 security within this state, including a security exempted under
1081 s. 517.051 and including a transaction exempted under s.
1082 517.061, s. 517.0611, or s. 517.0612, to misrepresent that such
1083 security or person business entity has been guaranteed,
1084 sponsored, recommended, or approved by the state or an agency or
1085 officer of the state or by the United States or an agency or
1086 officer of the United States.
1087 Section 11. Subsection (1) of section 517.211, Florida
1088 Statutes, is amended to read:
1089 517.211 Private remedies available in cases of unlawful
1090 sale.—
1091 (1) Every sale made in violation of either s. 517.07 or s.
1092 517.12(1), (3), (4), (9), (11), (13), (16), or (18) s.
1093 517.12(1), (3), (4), (8), (10), (12), (15), or (17) may be
1094 rescinded at the election of the purchaser; however, a sale made
1095 in violation of the provisions of s. 517.1202(3) relating to a
1096 renewal of a branch office notification or in violation of the
1097 provisions of s. 517.12(13) s. 517.12(12) relating to filing a
1098 change of address amendment is not subject to this section. Each
1099 person making the sale and every director, officer, partner, or
1100 agent of or for the seller, if the director, officer, partner,
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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 379 2025
1101 or agent has personally participated or aided in making the
1102 sale, is jointly and severally liable to the purchaser in an
1103 action for rescission, if the purchaser still owns the security,
1104 or for damages, if the purchaser has sold the security. No
1105 purchaser otherwise entitled will have the benefit of this
1106 subsection who has refused or failed, within 30 days after
1107 receipt, to accept an offer made in writing by the seller, if
1108 the purchaser has not sold the security, to take back the
1109 security in question and to refund the full amount paid by the
1110 purchaser or, if the purchaser has sold the security, to pay the
1111 purchaser an amount equal to the difference between the amount
1112 paid for the security and the amount received by the purchaser
1113 on the sale of the security, together, in either case, with
1114 interest on the full amount paid for the security by the
1115 purchaser at the legal rate, pursuant to s. 55.03, for the
1116 period from the date of payment by the purchaser to the date of
1117 repayment, less the amount of any income received by the
1118 purchaser on the security.
1119 Section 12. Subsection (2) of section 517.315, Florida
1120 Statutes, is amended to read:
1121 517.315 Fees.—All fees of any nature collected by the
1122 office pursuant to this chapter shall be disbursed as follows:
1123 (2) After the transfer required in subsection (1), the
1124 office shall transfer the $50 assessment fee collected from each
1125 associated person under s. 517.12(10) and (11) s. 517.12(9) and
Page 45 of 46
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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 379 2025
1126 (10) and 30.44 percent of the $100 assessment fee paid by
1127 dealers and investment advisers for each office in the state
1128 under s. 517.12(10) and (11) s. 517.12(9) and (10) to the
1129 Regulatory Trust Fund.
1130 Section 13. This act shall take effect upon becoming a
1131 law.
Page 46 of 46
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hb379-00
INSURANCE & BANKING SUBCOMMITTEE
HB 379 by Rep. Barnaby
Relating to Securities
AMENDMENT SUMMARY
March 4, 2025
Amendment 1 by Rep. Barnaby (Line 42): The amendment revises the definition for the term
“corporation;” and creates definitions for the terms “general partner,” “limited partner,”
“partnership,” and “shareholder.”
Amendment 2 by Rep. Barnaby (Line 441): Regarding dealers and investment advisers, the
amendment clarifies the individuals who must submit fingerprints for live-scan processing for
registration applications. This clarification addresses concerns raised by the Florida Department
of Law Enforcement (FDLE).
Amendment 3 by Rep. Barnaby (Line 666): Regarding intermediaries, the amendment
clarifies the individuals who must submit fingerprints for live-scan processing for registration
applications. This clarification addresses concerns raised by FDLE.
COMMITTEE/SUBCOMMITTEE AMENDMENT
Bill No. HB 379 (2025)
Amendment No. 1
COMMITTEE/SUBCOMMITTEE ACTION
ADOPTED (Y/N)
ADOPTED AS AMENDED (Y/N)
ADOPTED W/O OBJECTION (Y/N)
FAILED TO ADOPT (Y/N)
WITHDRAWN (Y/N)
OTHER
1 Committee/Subcommittee hearing bill: Insurance & Banking
2 Subcommittee
3 Representative Barnaby offered the following:
4
5 Amendment
6 Remove lines 42-82 and insert:
7 Section 1. Subsections (6) through (9), (10), (11), (12),
8 (13) through (17), (18), (19), (20) through (25), (26), and (27)
9 of section 517.021, Florida Statutes, are renumbered as
10 subsections (7) through (10), (12), (14), (15), (17) through
11 (21), (25), (26), (28), (28) through (33), (36), and (37),
12 respectively, present subsections (11) and (15) are amended, and
13 new subsections (6), (11), (13), (16), (21), (22), (23), (26),
14 (31) and (33) are added to that section, to read:
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COMMITTEE/SUBCOMMITTEE AMENDMENT
Bill No. HB 379 (2025)
Amendment No. 1
15 517.021 Definitions.—When used in this chapter, unless the
16 context otherwise indicates, the following terms have the
17 following respective meanings:
18 (6) "Branch manager" means a natural person who
19 administers or supervises the affairs or operations of a branch
20 office.
21 (11) "Corporation" has the same meaning as "corporation,"
22 "domestic corporation," "foreign corporation," "nonprofit
23 corporation," or "foreign nonprofit corporation" in s.
24 607.01401.
25 (13) "Director" means a person appointed or elected to sit
26 on a board that manages the affairs of a corporation or other
27 organization by electing or exercising control over its
28 officers.
29 (14)(11) "Federal covered adviser" means a person that is
30 registered or required to be registered under s. 203 of the
31 Investment Advisers Act of 1940, as amended. The term does not
32 include any person that is excluded from the definition of
33 investment adviser under subparagraphs (19)(b)1.-7. (16)(b)1.-7.
34 and 9.
35 (16) "General partner" means a co-owner or manager of a
36 partnership who has unlimited liability for the partnership's
37 debts including a "general partner" as that term is defined in
38 s. 620.1102.
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COMMITTEE/SUBCOMMITTEE AMENDMENT
Bill No. HB 379 (2025)
Amendment No. 1
39 (19)(15) "Intermediary" means a natural person that
40 residing in this state or a corporation, trust, partnership,
41 limited liability company, association, or other legal entity
42 registered with the Secretary of State to do business in this
43 state, which facilitates through its website the offer or sale
44 of securities of an issuer with a principal place of business in
45 this state.
46 (22) "Limited liability company" has the same meaning as
47 "limited liability company" or "foreign limited liability
48 company," as those terms are defined in s. 605.0102.
49 (23) "Limited liability company manager" or "limited
50 liability managing member" means a person who is responsible
51 alone or in concert with others for performing the management
52 functions of a limited liability company.
53 (24) "Limited partner" means a co-owner of a partnership
54 who has limited liability for the partnership's debts including
55 a "limited partner" as that term is defined in s. 620.1102.
56 (27) "Partnership" means two or more persons carrying on
57 as co-owners of a business and including a "limited
58 partnership," "limited liability limited partnership," "foreign
59 limited partnership," or "foreign limited liability limited
60 partnership," as those terms are defined in s. 620.1102.
61 (34) "Shareholder" means a person who owns at least one
62 share of a corporation and whose ownership is reflected in the
63 records of the corporation.
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COMMITTEE/SUBCOMMITTEE AMENDMENT
Bill No. HB 379 (2025)
Amendment No. 1
64 (35) "Trust" has the same meaning as in s. 731.201.
65
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COMMITTEE/SUBCOMMITTEE AMENDMENT
Bill No. HB 379 (2025)
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: Insurance & Banking
2 Subcommittee
3 Representative Barnaby offered the following:
4
5 Amendment
6 Remove lines 441-512 and insert:
7 (7)(a)1. The following natural persons must submit a full
8 set of fingerprints to the Department of Law Enforcement or to a
9 vendor, entity, or agency authorized under s. 943.053(13) for
10 live-scan processing in accordance with rules adopted by the
11 commission.
12 a. A natural person filing with the office an application
13 for registration as an associated person.
14 b. A natural person who holds the title of president,
15 treasurer, chief executive officer, chief financial officer,
16 chief operations officer, chief legal officer, chief compliance
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COMMITTEE/SUBCOMMITTEE AMENDMENT
Bill No. HB 379 (2025)
Amendment No. 2
17 officer, or director for a dealer or investment adviser
18 applicant.
19 c. A natural person who is a 5 percent or more owner of a
20 dealer or investment adviser applicant.
21 d. With respect to each 5 percent or more owner of a
22 dealer or investment adviser applicant that is a corporation,
23 partnership, trust, or limited liability company, each natural
24 person who is a 25 percent or more owner or trustee of such
25 entity, and each natural person who is a 25 percent or more
26 owner or trustee at each level up the chain of ownership up to,
27 but not including, an entity subject to sections 12 or 15(d) of
28 the Securities Exchange Act of 1934, as amended.
29 2. For purposes of this subsection, the term "owner"
30 means:
31 a. A shareholder who owns a percentage of a class of
32 voting securities of a dealer or investment adviser applicant,
33 and includes any person who owns, beneficially owns, has the
34 right to vote, or has the power to sell or direct the sale of,
35 the percentage of a class of a voting security of the dealer or
36 investment adviser applicant specified in sub-subparagraph c. or
37 d. above. For purposes of this sub-subparagraph, a person
38 beneficially owns any securities:
39 (I) Owned by the shareholder's child, stepchild,
40 grandchild, parent, stepparent, grandparent, spouse, sibling,
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COMMITTEE/SUBCOMMITTEE AMENDMENT
Bill No. HB 379 (2025)
Amendment No. 2
41 mother-in-law, father-in-law, son-in-law, daughter-in-law,
42 brother-in-law, or sister-in-law, sharing the same residence; or
43 (II) That the shareholder has the right to acquire, within
44 60 days, through the exercise of any option, warrant, or right
45 to purchase the securities.
46 b. A general partner of a partnership, and a limited
47 partner of a partnership who has the right to receive upon
48 dissolution, or has contributed, a percentage of the capital of
49 a dealer or investment adviser applicant.
50 c. A trustee of a trust that owns a percentage of a class
51 of a voting security of a dealer or investment adviser
52 applicant, or that has the right to receive upon dissolution, or
53 has contributed, a percentage of the capital of a dealer or
54 investment adviser applicant.
55 d. A member of a limited liability company who has the
56 right to receive upon dissolution, or has contributed, a
57 percentage of the capital of a dealer or investment adviser
58 applicant, and all limited liability company managers of a
59 dealer or investment adviser applicant.
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COMMITTEE/SUBCOMMITTEE AMENDMENT
Bill No. HB 379 (2025)
Amendment No. 3
COMMITTEE/SUBCOMMITTEE ACTION
ADOPTED (Y/N)
ADOPTED AS AMENDED (Y/N)
ADOPTED W/O OBJECTION (Y/N)
FAILED TO ADOPT (Y/N)
WITHDRAWN (Y/N)
OTHER
1 Committee/Subcommittee hearing bill: Insurance & Banking
2 Subcommittee
3 Representative Barnaby offered the following:
4
5 Amendment
6 Remove lines 666-743 and insert:
7 a. A natural person filing with the office an application
8 for registration as an intermediary.
9 b. A natural person who holds the title of president,
10 treasurer, chief executive officer, chief financial officer,
11 chief operations officer, chief legal officer, chief compliance
12 officer, or director for an intermediary applicant.
13 c. A natural person who is a 5 percent or more owner of an
14 intermediary applicant.
15 d. With respect to each 5 percent or more owner of an
16 intermediary applicant that is a corporation, partnership,
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COMMITTEE/SUBCOMMITTEE AMENDMENT
Bill No. HB 379 (2025)
Amendment No. 3
17 trust, or limited liability company, each natural person who is
18 a 25 percent or more owner or trustee of such entity, and each
19 natural person who is a 25 percent or more owner or trustee at
20 each level up the chain of ownership up to, but not including an
21 entity subject to sections 12 or 15(d) of the Securities
22 Exchange Act of 1934, as amended.
23 2. For purposes of this subsection, the term "owner"
24 means:
25 a. A shareholder who owns a percentage of a class of
26 voting securities of an intermediary applicant, and includes any
27 person who owns, beneficially owns, has the right to vote, or
28 has the power to sell or direct the sale of, the percentage of a
29 class of a voting security of the intermediary applicant
30 specified in sub-subparagraph c. or d. above. For purposes of
31 this sub-subparagraph, a person beneficially owns any
32 securities:
33 (I) Owned by the shareholder's child, stepchild,
34 grandchild, parent, stepparent, grandparent, spouse, sibling,
35 mother-in-law, father-in-law, son-in-law, daughter-in-law,
36 brother-in-law, or sister-in-law, sharing the same residence; or
37 (II) That the shareholder has the right to acquire, within
38 60 days, through the exercise of any option, warrant, or right
39 to purchase the securities.
40 b. A general partner of a partnership, and a limited
41 partner of a partnership who has the right to receive upon
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COMMITTEE/SUBCOMMITTEE AMENDMENT
Bill No. HB 379 (2025)
Amendment No. 3
42 dissolution, or has contributed, a percentage of the capital of
43 an intermediary applicant.
44 c. A trustee of a trust that owns a percentage of a class
45 of a voting security of an intermediary applicant, or that has
46 the right to receive upon dissolution, or has contributed, a
47 percentage of the capital of an intermediary applicant.
48 d. A member of a limited liability company who has the
49 right to receive upon dissolution, or has contributed, a
50 percentage of the capital of an intermediary applicant, and, all
51 limited liability company managers of an intermediary applicant.
52 (d) The vendor, entity, or agency authorized under s.
53 943.053(13) to submit fingerprints electronically to the
54 Department of Law Enforcement shall submit the fingerprints to
55 the department for state processing, and the department shall
56 forward the fingerprints to the Federal Bureau of Investigation
57 for national processing.
58 (e) Fees for state and federal fingerprint processing
59 shall be borne by the person subject to the criminal history
60 record check. The state cost for fingerprint processing shall be
61 as provided in s. 943.053(3)(e).
62 (f) The office shall review the results of the state and
63 federal criminal history record checks and determine whether the
64 applicant is disqualified from registration. The commission may
65 waive by rule the requirement that applicants, including any
66 persons listed in sub-subparagraphs (c)1.a.-d., submit
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HB 497
FLORIDA HOUSE OF REPRESENTATIVES
BILL ANALYSIS
This bill analysis was prepared by nonpartisan committee staff and does not constitute an official statement of legislative intent.
BILL #: HB 497 COMPANION BILL: SB 480 (DiCeglie)
TITLE: Health Coverage by Nonprofit Agricultural LINKED BILLS: None
Organizations RELATED BILLS: None
SPONSOR(S): Grow
Committee References
Insurance & Banking Health Care Facilities & Systems Commerce
SUMMARY
Effect of the Bill:
The bill renames Chapter 632, from "Fraternal Benefit Societies" to "Fraternal Benefit Societies and Nonprofit
Agricultural Organizations" and reorganizes its provisions into two parts.
The bill designates existing sections as Part I, titled "Fraternal Benefit Societies," and creates Part II, titled
"Nonprofit Agricultural Organizations."
The bill exempts the health coverage provided by a nonprofit agricultural organization from the regulation of
insurance and insolvency guaranties provided by law to the consumers of such organizations under the Florida
Insurance Code.
Fiscal or Economic Impact:
The bill may have a negative fiscal impact on state government revenues. It has no fiscal impact on state
government expenses or local government revenues or expenses. It may have a positive economic impact on the
private sector.
JUMP TO SUMMARY ANALYSIS RELEVANT INFORMATION BILL HISTORY
ANALYSIS
EFFECT OF THE BILL:
The bill renames Chapter 632, from "Fraternal Benefit Societies" to "Fraternal Benefit Societies and Nonprofit
Agricultural Organizations" and reorganizes its provisions into two parts. (Section 1).
The bill designates existing sections as Part I, titled "Fraternal Benefit Societies," and creates Part II, titled
"Nonprofit Agricultural Organizations." (Sections 2 and 3).
The bill exempts the health coverage provided by a nonprofit agricultural organization from the regulation of
insurance and insolvency guaranties provided by law to the consumers of such organizations under the Florida
Insurance Code. (Section 4-6).
The bill takes effect on July 1, 2025. (Section 7).
FISCAL OR ECONOMIC IMPACT:
STATE GOVERNMENT:
Insurance premium tax revenues may be reduced to the extent that purchasers of health coverage shift their
business from health insurance to the exempt health coverage proposed by the bill.
STORAGE NAME: h0497.IBS
DATE: 3/4/2025
1
PRIVATE SECTOR:
Members of eligible nonprofit agricultural organizations may realize savings on health coverage to the extent that
health coverage products offered by such organizations are priced lower that insurance products that they may
already purchase.
RELEVANT INFORMATION
SUBJECT OVERVIEW:
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 or protecting themselves
from unexpected medical bills or large health care costs. Managed care is the most common delivery system for
medical care today by health insurers.2 Managed care systems combine the delivery and financing of health care
services by limiting the choice of doctors and hospitals.3 In return for this limited choice, however, medical care is
less costly due to the managed care network’s ability to control health care services. Some common forms of
managed care are preferred provider organizations4 (PPO) and health maintenance organizations5 (HMO).
Office of Insurance Regulation
The Office of Insurance Regulation (OIR) regulates specified insurance products, insurers and other risk bearing
entities in Florida.6 The Financial Services Commission (FSC), composed of the Governor, the Attorney General, the
Chief Financial Officer, and the Commissioner of Agriculture, serves as the OIR agency head for purposes of
rulemaking. Further, the FSC appoints the OIR Commissioner.
As part of their regulatory oversight, the OIR may suspend or revoke an insurer’s certificate of authority under
certain conditions.7 The OIR is responsible for examining the affairs, transactions, accounts, records, and assets of
each insurer that holds a certificate of authority to transact insurance business in Florida.8 As part of the
examination process, all persons being examined must make available to the OIR the accounts, records, documents,
files, information, assets, and matters in their possession or control that relate to the subject of the examination.9
The OIR is also authorized to conduct market conduct examinations to determine compliance with applicable
provisions of the Insurance Code (FIC).10
Health Maintenance Organizations
Health Maintenance Organizations (HMOs) in Florida operate within a regulatory framework overseen by OIR. To
offer health insurance plans in Florida, HMOs must obtain a license from the OIR.11 Managed care plans are the
primary offerings of HMOs in Florida. These plans provide comprehensive healthcare services to members for a
fixed monthly premium.12 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.13
1 S. 624.603, F.S.
2 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 Feb. 26, 2025).
3 Id.
4 S. 627.6471, F.S.
5 Part I of ch. 641, F.S.
6 S. 20.121(3)(a), F.S.
7 S. 624.418, F.S.
8 s. 624.316(1)(a), F.S.
9 S. 624.318(2), F.S.
10 See S. 624.3161, F.S. The Code is comprised of chs. 624-632, 634-636, 641, 642, 648, and 651, F.S. S. 624.01, F.S.
11 S. 641.21(1), F.S.
12 Medicare, What’s an HMO? https://www.medicare.gov/health-drug-plans/health-plans/. (last visited Feb. 26, 2025).
13 Id.
JUMP TO SUMMARY ANALYSIS RELEVANT INFORMATION BILL HISTORY
2
HMOs maintain networks of healthcare providers, including primary care physicians, specialists, hospitals, and
other healthcare facilities.14 Members are generally required to receive care from within the HMO's network, with
exceptions for emergencies or authorized out-of-network care.15
Florida law provides various consumer protections for individuals enrolled in HMO plans, including guaranteed
access to emergency services, coverage for essential health benefits mandated by the Affordable Care Act, and the
right to appeal coverage decisions made by the HMO.16
Association Health Plans (AHPs)
An association health plan (AHP) is a group purchasing arrangement in which members of a trade group or
professional association jointly obtain health insurance for employees. These arrangements differ from traditional
group insurance by their unique structure, since they involve the purchase of insurance products across multiple
employers.
On June 21, 2018, the Employee Benefits Security Administration within the federal Department of Labor (DOL)
issued a final rule amending the parameters for association health plans (AHPs),17 consistent with the directives of
a 2017 Presidential Executive Order.18 The revised regulations were intended to give an employer greater
flexibility to participate in an AHP. The new federal rule, among other things, permitted establishing an AHP for the
explicit purpose of providing health coverage, so long as the association has another legitimate purpose for
members and allowed the self-employed and sole proprietors to participate in an AHP.19 Overall, the federal rule
was designed to offer an expanded pathway for the establishment of an AHP.
In July 2018, eleven states20 and the District of Columbia sued the DOL, alleging the final rule, and particularly the
rule’s provisions on bona fide association and working owner provisions, conflicted with the text and purpose of
Employee Retirement Income Security Act (ERISA) and Patient Portability and Affordable Care Act (PPACA), and
exceeded DOL’s statutory authority.21 On March 28, 2019, the U.S. District Court for the District of Columbia agreed
with the states, finding that the DOL unreasonably expanded ERISA’s definition of “employers” as an end run
around the requirements of PPACA.22 The court struck down the portions of the DOL’s AHP rule that expanded the
ability of small businesses and owners to buy health insurance on the large group market that was not subject to
PPACA requirements that apply to the small group market.23
State Regulation of AHPs
The regulatory oversight of health insurance is generally reserved to the states, except when explicitly preempted
by federal law. In Florida, OIR is responsible for all activities concerning insurers and other risk bearing entities,
including licensing, rates, policy forms, market conduct, claims, issuing certificates of authority, solvency, viatical
settlements, premium financing, and administrative supervision, as provided under the FIC.24
All health insurance policies issued in Florida, with the exception of certain self-insured policies,25 must meet
certain requirements that are detailed throughout the FIC. Ch. 627, F.S., sets parameters and requirements for
health insurance policies and ch. 641, F.S., provides requirements for health plans issued by HMOs. At a minimum,
14 S. 641.19(12), F.S.
15 Medicare, What’s an HMO?, https://www.medicare.gov/health-drug-plans/health-plans/. (last visited Feb. 26, 2025).
16 Consumer Services, Health Insurance & HMO Overview, https://www.myfloridacfo.com/division/consumers/understanding-
insurance/health-insurance-and-hmo-overview (last visited Feb. 26, 2025).
17 Definition of “Employer” Under Section 3(5) of ERISA-Association Health Plans, 83 FR 28912. June 21, 2018.
18 Promoting Healthcare Choice and Competition Across the United States, 82 FR 48385. October 21, 2017.
19 Milliman, Inc., “Association health plans after the final rule”, August 22, 2018, available at
http://www.milliman.com/insight/2018/Association-health-plans-after-the-final-rule/ (last viewed on Feb. 26, 2025).
20 California, Delaware, Kentucky, Maryland, Massachusetts, New Jersey, New York, Oregon, Pennsylvania, Virginia, and Washington.
21 State of New York, et al. v. U.S. Department of Labor, et al., No. 1:18-cv-01747 (D.D.C. Mar. 28, 2019).
22 Id.
23 Id.
24 s. 20.121(3)(a)(1), F.S. The OIR’s commissioner is the agency head for purposes of final agency action, and its rulemaking body is the
Financial Services Commission (the Governor and the Cabinet).
25 29 U.S.C. 18 § 1001 et seq. ERISA regulates certain self-insured plans, which represent approximately 50 percent of the insureds in Florida.
These plans cannot be regulated by state law.
JUMP TO SUMMARY ANALYSIS RELEVANT INFORMATION BILL HISTORY
3
insurance policies must specify premium rates, services covered, and effective dates. Insurers must document the
time when a policy takes effect and the period during which the policy remains in effect.26
Florida Life and Health Insurance Guaranty Association
A guaranty association is typically a nonprofit corporation established by law to safeguard policyholders against
financial losses and delays in claim payment and settlement resulting from the insolvency of an insurance
company. In the event of an insolvency of a member, the guaranty association takes over the servicing of claims on
eligible policies. Authorized insurers in Florida are typically required to participate in the applicable guaranty
association for the relevant line of insurance as a condition of eligibility to transact insurance in the state.
Section 631.715, F.S., establishes the Florida Life and Health Insurance Guaranty Association (FLHIGA). Every
insurer licensed to sell direct life insurance policies, health insurance policies, annuity contracts, and supplemental
contracts in the state must participate in FLHIGA as a requirement for conducting business in Florida.27 FLHIGA
functions as a nonprofit corporation, governed by a Board of Directors consisting of nine to eleven members
appointed by member insurers.28
Farm Bureau Health Plan
In a number of states, Farm Bureau Plans (FBPs) have been provided an exemption from regulation by the state’s
insurance regulatory authority to provide health coverage that is not regulated as an insurance product. The FBPs
operate as healthcare options provided by a state's Farm Bureau to its members, typically catering to individuals
and families within rural communities, including farmers and agricultural workers. To access FBPs, individuals
must join their state's Farm Bureau organization. Membership often entails paying dues to support the Farm
Bureau's advocacy and community initiatives. FBPs operate under a unique exemption from state insurance
regulations, distinguishing them from traditional health insurance offerings. This exemption allows FBPs to be
considered separately from standard health insurance products.
Unlike typical health insurance, FBPs, which predate the Affordable Care Act (ACA), utilize medical underwriting
and are not subject to state or federal insurance mandates. Consequently, they can decline applicants based on
medical history or impose waiting periods for pre-existing conditions without having to comply with essential
health benefit requirements or maximum out-of-pocket limits mandated for ACA-compliant plans. While FBPs
aren't classified as insurance, they still provide comprehensive benefits. In every state with FBPs, they typically
offer options for comprehensive coverage at reasonable monthly costs, including free or low-cost preventative
care, prescription drug coverage, telehealth services, dental and vision care options, and health savings accounts
for qualified High Deductible Health Plans, with most plans having no annual or lifetime limits. Unlike individual
market plans, participants can enroll in FBPs at any time. 29
OTHER RESOURCES:
Health Insurance and Health Maintenance Organizations Consumer Guide
Health Insurance & HMO Overview
Association Health Plans After the Final Rule
Farm Bureau Health Coverage Plans
26 S. 627.413(1)(d), F.S.
27 s. 631.716(1), F.S.
28 Id.
29 The states are Tennessee, Iowa, Kansas, Indiana, and Texas. The Foundation for Government Accountability, Farm Bureau Health
Coverage Plans, https://thefga.org/wp-content/uploads/2021/01/Farm-Bureau-Plans-FAQ.pdf (last visited Feb. 26, 2025).
JUMP TO SUMMARY ANALYSIS RELEVANT INFORMATION BILL HISTORY
4
BILL HISTORY
STAFF
DIRECTOR/ ANALYSIS
COMMITTEE REFERENCE ACTION DATE POLICY CHIEF PREPARED BY
Insurance & Banking Lloyd Herrera
Subcommittee
Health Care Facilities & Systems
Subcommittee
Commerce Committee
JUMP TO SUMMARY ANALYSIS RELEVANT INFORMATION BILL HISTORY
5
F L O R I 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 497 2025
1 A bill to be entitled
2 An act relating to health coverage by nonprofit
3 agricultural organizations; revising the title of ch.
4 632, F.S.; designating part I of ch. 632, F.S.,
5 entitled "Fraternal Benefit Societies"; creating part
6 II of ch. 632, F.S.; entitled "Nonprofit Agricultural
7 Organizations"; creating s. 632.701, F.S.; providing a
8 short title; defining the term "nonprofit agricultural
9 organization"; authorizing nonprofit agricultural
10 organizations to offer health coverage to their
11 members; providing that such health coverage is not
12 insurance for purposes of the Florida Insurance Code;
13 amending ss. 624.01 and 624,12, F.S.; conforming
14 provisions to changes made by the act; providing an
15 effective date.
16
17 Be It Enacted by the Legislature of the State of Florida:
18
19 Section 1. Chapter 632, Florida Statutes, entitled
20 "Fraternal Benefit Societies," is retitled "Fraternal Benefit
21 Societies and Nonprofit Agricultural Organizations."
22 Section 2. Sections 632.601 through 632.638, Florida
23 Statutes, are designated as part I of chapter 632, Florida
24 Statutes, and entitled "Fraternal Benefit Societies."
25 Section 3. Part II of chapter 632, Florida Statutes,
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HB 497 2025
26 consisting of section 632.701, Florida Statutes, is created and
27 entitled "Nonprofit Agricultural Organizations."
28 Section 4. Section 632.701, Florida Statutes, is created
29 to read:
30 632.701 Health coverage by nonprofit agricultural
31 organizations.—
32 (1) This section may be cited as the "Nonprofit
33 Agricultural Organization Health Coverage Act of 2025."
34 (2) As used in this section, the term "nonprofit
35 agricultural organization" means an organization that:
36 (a) Is domiciled in this state.
37 (b) Is exempt from federal income tax under s. 501(c)(5)
38 of the Internal Revenue Code.
39 (c) Was created primarily to promote programs for the
40 development of rural communities and the economic stability and
41 sustainability of farmers in this state.
42 (d) Exists to serve its members beyond only offering
43 health coverage.
44 (e) Collects annual dues from its members.
45 (f) Was in existence before 1945.
46 (g) Is composed of members from more than half of the
47 counties in this state.
48 (3) A nonprofit agricultural organization may offer health
49 coverage to its members.
50 (4) Notwithstanding any law to the contrary, the health
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HB 497 2025
51 coverage provided by a nonprofit agricultural organization under
52 subsection (3) is not insurance for purposes of the Florida
53 Insurance Code.
54 Section 5. Section 624.01, Florida Statutes, is amended to
55 read:
56 624.01 Short title.—Chapters 624-632, 634, 635, 636, 641,
57 642, 648, and 651, except for part II of chapter 632, constitute
58 the "Florida Insurance Code."
59 Section 6. Section 624.12, Florida Statutes, is amended to
60 read:
61 624.12 Application of code as to fraternal benefit
62 societies and nonprofit agricultural organizations.—No provision
63 of this code shall apply with respect to:
64 (1) Fraternal benefit societies (as defined identified in
65 s. 632.601 chapter 632), except as stated in part I of chapter
66 632.
67 (2) Nonprofit agricultural organizations as defined in s.
68 632.701.
69 Section 7. This act shall take effect July 1, 2025.
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INSURANCE & BANKING SUBCOMMITTEE
HB 497 by Rep. Grow
Health Coverage by Nonprofit Agricultural Organizations
AMENDMENT SUMMARY
March 4, 2025
Amendment 1 by Rep. Grow (Strike-all): The amendment replaces all existing provisions with
a new framework for nonprofit agricultural organizations to offer medical benefit plans rather
than general health coverage. The amendment:
• Establishes a new statute (s. 624.4032, F.S.) to regulate nonprofit agricultural
organization medical benefit plans modeled after the Church Benefit Plan Statute.
• Modifies the organization’s definition, now requiring 501(c)(3) tax-exempt status instead
of 501(c)(5).
• Requires a disclaimer on applications and marketing materials, informing consumers
that the plan is not insurance, not subject to state insurance regulations or consumer
protections.
• Prohibits marketing through licensed insurance agents to differentiate these plans from
regulated insurance products.
• Mandates annual financial audits by an independent CPA, ensuring transparency and
public access to financial information which must be provided on request.
COMMITTEE/SUBCOMMITTEE AMENDMENT
Bill No. HB 497 (2025)
Amendment No. 1
COMMITTEE/SUBCOMMITTEE ACTION
ADOPTED (Y/N)
ADOPTED AS AMENDED (Y/N)
ADOPTED W/O OBJECTION (Y/N)
FAILED TO ADOPT (Y/N)
WITHDRAWN (Y/N)
OTHER
1 Committee/Subcommittee hearing bill: Insurance & Banking
2 Subcommittee
3 Representative Grow offered the following:
4
5 Amendment
6 Remove everything after the enacting clause and insert:
7 Section 1. Section 624.4032, Florida Statutes, is created
8 to read:
9 624.4032 Nonprofit agricultural organization medical
10 benefit plans. —
11 (1) The purpose of this section is to authorize nonprofit
12 agricultural organizations to offer medical benefit plans to
13 their members.
14 (2) For purposes of this section, the term "nonprofit
15 agricultural organization" means an organization that meets all
16 of the following criteria:
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COMMITTEE/SUBCOMMITTEE AMENDMENT
Bill No. HB 497 (2025)
Amendment No. 1
17 (a) Is domiciled in this state.
18 (b) Is exempt from federal income tax under s. 501(c)(3)
19 of the Internal Revenue Code.
20 (c) Was created primarily to promote programs for the
21 development of rural communities and the economic stability and
22 sustainability of farmers in this state.
23 (d) Exists to serve its members beyond only offering
24 medical expense plans.
25 (e) Collects annual dues from its members.
26 (f) Was in existence before 1945.
27 (g) Is composed of members who, collectively, are
28 residents of the majority of counties in this state.
29 (3) A nonprofit agricultural organization:
30 (a) May offer medical benefit plans to members of such
31 nonprofit agricultural organization. Such plans are not
32 insurance for purposes of the Florida Insurance Code.
33 (b) Shall provide a written disclaimer on or accompanying
34 all applications and marketing materials for a medical benefit
35 plan, regardless of whether such applications and marketing
36 materials are distributed by or on behalf of the nonprofit
37 agricultural organization. The disclaimer must read in
38 substance: "Notice: This medical benefit plan is not an
39 insurance policy or health maintenance organization contract and
40 is not subject to the regulatory requirements and consumer
41 protections that apply to health insurance policies or health
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COMMITTEE/SUBCOMMITTEE AMENDMENT
Bill No. HB 497 (2025)
Amendment No. 1
42 maintenance organization contracts under the Florida Insurance
43 Code. The nonprofit agricultural organization offering this
44 medical benefit plan is not an authorized insurer or authorized
45 health maintenance organization in Florida and the nonprofit
46 agricultural organization is not subject to the regulatory
47 requirements or consumer protections of the Florida Insurance
48 Code." The disclaimer must be in contrasting color and at least
49 12-point type.
50 (c) May not market or sell medical benefit plans through
51 agents licensed by the department.
52 (d) Must conduct an annual financial audit that is
53 performed by an independent certified public accountant in
54 accordance with generally accepted accounting principles and
55 that is made available to the public by providing a copy upon
56 request or by posting on the nonprofit agricultural
57 organization's website.
58
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HB 655
FLORIDA HOUSE OF REPRESENTATIVES
BILL ANALYSIS
This bill analysis was prepared by nonpartisan committee staff and does not constitute an official statement of legislative intent.
BILL #: HB 655 COMPANION BILL: SB 1226 (DiCeglie)
TITLE: Pet Insurance and Wellness Programs LINKED BILLS: None
SPONSOR(S): Tuck RELATED BILLS: None
Committee References
Insurance & Banking Commerce
SUMMARY
Effect of the Bill:
The bill creates necessary regulatory statutes to facilitate the production of pet insurance policies for sale within
the state, encompassing various aspects such as defining pet insurance, establishing disclosure requirements, and
regulating the marketing and sales practices of wellness programs. It expands the definition of property insurance
to include coverage for pets, covering accidents and illnesses explicitly. Additionally, the bill imposes training
requirements for agents and brokers involved in selling pet insurance policies and outlines enforcement measures,
including penalties for violations under the Florida Insurance Code.
Fiscal or Economic Impact:
The bill may have an indeterminate fiscal impact on the private sector and state government expenditures.
JUMP TO SUMMARY ANALYSIS RELEVANT INFORMATION BILL HISTORY
ANALYSIS
EFFECT OF THE BILL:
Expansion of Property Insurance Definition to Include Pet Coverage
This bill amends the definition of "property insurance" to explicitly include pet insurance coverage for accidents
and for illnesses or diseases of pets. It clarifies that property insurance may contain a provision for accidental
death or injury as part of a multiple peril homeowner’s policy, which is considered incidental to the property
insurance and is not subject to the provisions of the code applicable to life or health insurance. (Section 1).
Regulation of Sales Practices for Pet Wellness Programs
The bill defines unfair methods of competition and unfair or deceptive acts or practices related to the sales
practices for pet wellness programs. It prohibits pet insurance agents from marketing a wellness program as pet
insurance. If a wellness program is sold by a pet insurance agent, several conditions must be met, including:
The purchase of the wellness program cannot be a prerequisite to the purchase of pet insurance.
The costs of the wellness program must be separate and identifiable from any pet insurance policy sold by
the agent.
The terms and conditions of the wellness program must be distinct from any pet insurance policy sold by the
agent.
The products or coverages available through the wellness program cannot duplicate those available through
the pet insurance policy.
The advertising of the wellness program must not be misleading. (Section 2).
STORAGE NAME: h0655.IBS
DATE: 3/4/2025
1
Pet Insurance Definitions and Usage
The bill creates necessary regulatory statutes to facilitate the production of pet insurance policies for sale within
the state. The bill applies to policies issued to residents of the state, those sold or offered within the state's
boundaries, as well as policies delivered or issued for delivery in the state.
The bill defines pet insurance as coverage designed for accidents and illnesses or diseases of pets, facilitating
reimbursement for expenses linked to veterinary medical advice, diagnosis, care, or treatment, encompassing
prescribed medications. Additionally, it introduces definitions for various terms, including chronic conditions,
congenital anomaly or disorder, hereditary disorder, orthopedic condition, pet insurance policy, preexisting
condition, renewal, veterinarian, waiting period, and wellness program.
The bill mandates that if pet insurers incorporate the defined terms within a pet insurance policy, they must
adhere to the provided definition verbatim. Additionally, the pet insurer is required to ensure accessibility of these
definitions to policyholders. (Section 3).
Disclosure Requirements for Pet Insurance Policies
The bill requires pet insurers to disclose coverage exclusions for chronic conditions, congenital anomalies,
hereditary disorders, and preexisting conditions, along with any other applicable exclusions. Additionally, they
must disclose policy provisions limiting coverage, changes in coverage or premiums, and differentiate between the
underwriting company and the marketed brand.
Pet insurers must allow a 30-day review period for policyholders to return policies for a refund if unsatisfied,
provided no claims have been filed. They must also disclose the basis for determining claim payments, including
benefit schedules and fee limitations, and any required medical examinations before policy purchase.
Further, the bill requires pet insurers to clearly disclose waiting periods and their requirements to applicants. Pet
insurers must provide a summary of policy provisions and written disclosures including contact details for
regulatory offices and the insurer or agent. These disclosures are in addition to any other disclosures required by
law or regulation. (Section 3).
Preexisting Conditions, Waiting Periods, and Policy Renewals
The bill allows pet insurers to issue policies excluding coverage for preexisting conditions, provided that
appropriate disclosure is made to the applicant or policyholder, with the burden of proving the applicability of the
exclusion resting on the insurer. Additionally, pet insurers are permitted to impose waiting periods before the
effective date of a new policy, not exceeding 30 days for certain conditions,1 with provisions for waiving the
waiting period upon completion of a medical examination, the costs of which are typically paid by the policyholder.
These waiting periods and their requirements must be clearly disclosed to applicants before policy purchase.
The bill prohibits pet insurers from requiring medical examinations for policy renewals and mandates compliance
with the Florida Insurance Code for additional benefits included in policies. Furthermore, it ensures that an
applicant's eligibility for pet insurance is not tied to participation in a wellness program. (Section 3).
Marketing and Sales of Wellness Programs
The bill prohibits pet insurers and their agents from misrepresenting wellness programs as pet insurance. It
mandates that if wellness programs are offered alongside pet insurance, they must be separate and not required
for pet insurance purchase. Additionally, the costs, terms, and products of wellness programs must be distinct from
pet insurance. Clear disclosures must be provided to applicants and policyholders regarding the nature of wellness
programs, and wellness benefits within pet insurance policies are recognized as insurance. (Section 3).
1 "Certain conditions" referenced in this sentence include illnesses, diseases, or orthopedic conditions not resulting from an accident, as
specified within the context of the bill
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2
Agent and Broker Training Requirements
The bill requires specific training for agents and brokers involved in selling pet insurance policies. Agents and
brokers must obtain appropriate licensing and complete specified training before engaging in the sale, solicitation,
or negotiation of pet insurance policies. Pet insurers are responsible for ensuring that their agents and brokers
receive training on preexisting conditions, waiting periods, and the distinctions between pet insurance and
wellness programs. Additionally, training must cover chronic conditions, congenital anomalies, hereditary
disorders, and administrative aspects of pet insurance policies. Satisfaction of training requirements from other
states with substantially similar provisions is recognized as meeting the training standards in the state. (Section 3).
Enforcement, Applicability, and Rulemaking Authority
A violation of the bill’s requirements will be a violation of the Florida Insurance Code. Additionally, it clarifies that
while all other relevant insurance laws apply to pet insurance, the specific regulations outlined in this bill take
precedence over any conflicting general provisions. The bill does not restrict the types of exclusions pet insurers
can employ in their policies nor does it mandate the inclusion of any specific limitations or exclusions.
Furthermore, the bill grants the commission the authority to adopt rules and regulations essential for the effective
administration of this section. (Section 3).
The bill provides an effective date of January 1, 2026. (Section 4).
RULEMAKING:
Sufficient rulemaking authority for the FSC and OIR to administer the bill’s provisions is provided.
Lawmaking is a legislative power; however, the Legislature may delegate a portion of such power to executive
branch agencies to create rules that have the force of law. To exercise this delegated power, an agency must
have a grant of rulemaking authority and a law to implement.
FISCAL OR ECONOMIC IMPACT:
STATE GOVERNMENT:
The bill necessitates the incorporation of pet insurance into the information technology systems of OIR, resulting in
a one-time impact. However, OIR existing resources have the capacity to absorb this impact.2
PRIVATE SECTOR:
The bill may positively impact the private sector if the regulatory efficiency it establishes results in lower
production costs for pet insurance providers.
RELEVANT INFORMATION
SUBJECT OVERVIEW:
National Association of Insurance Commissioners
The National Association of Insurance Commissioners (NAIC) serves as the insurance standard-setting and
regulatory support body in the United States.3 Comprised of insurance regulators from all 50 states, the District of
2 Email from Kevin James, Deputy Legislative Affairs Director, Department of Management Services, HB 1465 Bill Analysis (Jan. 25, 2024).
The bill analysis has not yet been received; however, DMS provided similar information in its analysis of last year’s legislation, and this
section of the bill remains identical to last year’s version.
JUMP TO SUMMARY ANALYSIS RELEVANT INFORMATION BILL HISTORY
3
Columbia, and five U.S. territories, the NAIC aids state regulators in fulfilling their public service mandate.4 It
achieves this by setting standards and regulatory best practices, facilitating the exchange of information, offering
regulatory support services, and educating consumers, industry professionals, and government stakeholders on
the state-based insurance regulatory framework of the United States.5
Office of Insurance Regulation
The Office of Insurance Regulation (OIR) regulates specified insurance products, insurers, and other risk bearing
entities in Florida.6 The Financial Services Commission (FSC), composed of the Governor, the Attorney General, the
Chief Financial Officer, and the Commissioner of Agriculture, serves as agency head of the OIR for purposes of
rulemaking. Further, the FSC appoints the OIR commissioner.
As part of their regulatory oversight, the OIR may suspend or revoke an insurer’s certificate of authority under
certain conditions.7 The OIR is responsible for examining the affairs, transactions, accounts, records, and assets of
each insurer that holds a certificate of authority to transact insurance business in Florida.8 As part of the
examination process, all persons being examined must make available to the OIR the accounts, records, documents,
files, information, assets, and matters in their possession or control that relate to the subject of the examination.9
The OIR is also authorized to conduct market conduct examinations to determine compliance with applicable
provisions of the Insurance Code.10
Current Situation - Pet Insurance
Pet insurance offers coverage for accidents and illnesses primarily for household pets, notably dogs and cats.11
While classified and regulated as Property and Casualty (P/C) insurance12, it parallels human health insurance in
providing annual coverage subject to predetermined rates and conditions.13 Originating in the U.S. in 1980, pet
insurance has experienced significant expansion since its inception.14
The North American Pet Health Insurance Association (NAPHIA) serves as the leading advocacy group,
representing over 99 percent of the U.S. and Canada pet health insurance industry.15 Notably, in 2017, NAPHIA
members witnessed growth, with total premium volume reaching approximately $1.03 billion in the U.S., marking
a substantial 23.2 percent increase from the previous year.16 In the U.S. and its territories, direct written premiums
amounted to roughly $640 billion.17 Despite the rapid growth, pet insurance still represents a small percentage of
the total P/C market.18
Pet insurance policies typically cover various veterinary expenses, including19:
Accidents: coverage for injuries resulting from accidents, such as broken bones or ingesting foreign objects.
3 NAIC, Our Story, https://content.naic.org/about (last visited Feb. 28, 2025).
4 Id.
5 Id.
6 S. 20.121(3)(a), F.S.
7 S. 624.418, F.S.
8 S. 624.316(1)(a), F.S.
9 S. 624.318(2), F.S.
10 The Code is comprised of chs. 624-632, 634-636, 641, 642, 648, and 651, F.S. See S. 624.3161, F.S.
11 National Association of Insurance Commissioners, A Regulator’s Guide to Pet Insurance, p. 3 https://content.naic.org/sites/default/files
(last visited Feb. 28, 2025).
12 Casualty insurance is a broad category of insurance coverage for individuals, employers, and businesses against loss of property, damage,
or other liabilities. Casualty insurance includes vehicle insurance, liability insurance, and theft insurance. Liability losses are losses that
occur as a result of the insured’s interactions with others or their property. See Investopedia, Casualty Insurance: Definition, Types, and
Examples, https://www.investopedia.com/terms/c/casualtyinsurance.asp (last visited Feb. 28, 2025).
13 Id.
14 Id.
15 Id.
16 Id at 4.
17 Id.
18 Id.
19 Forbes, What Does Pet Insurance Cover?, https://www.forbes.com/advisor/pet-insurance/what-does-pet-insurance-cover/ (last visited
March 3, 2025).
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4
Illnesses: coverage for treatments related to illnesses such as cancer, diabetes, or infections.
Routine Care: some policies offer optional coverage for routine care, including vaccinations, wellness
exams, and dental cleanings.
Hereditary and Congenital Conditions: certain policies may cover hereditary and congenital conditions,
although these often have specific limitations and waiting periods.
In 2017, a survey by the American Pet Products Association revealed that approximately 68 percent of U.S.
households, totaling around 84.65 million families, had at least one pet, including dogs, cats, or other animals.20 Of
these households, about 60 million owned at least one dog, and 47 million had at least one cat.21 Despite this large
number of pet owners, there's considerable room for growth in the pet insurance sector.22 However, only about 1.5
million dogs and 300,000 cats were insured in 2017, representing less than 2 percent of dogs and less than 0.5
percent of cats owned in the country.23 In the U.S., there are roughly 90 million household dogs and 95 million
household cats, indicating a substantial potential market for pet insurance coverage.24
Pet insurance coverage in the U.S. has seen consistent annual growth rates of 15 percent to 20 percent over the
past five years.25 The distribution of pet insurance is notably concentrated in larger urban areas, with California
and New York emerging as the primary markets.26 For a visual representation of the distribution of pets and Gross
Written Premiums (GWP) by state, please refer to the chart below.27 According to data from NAPHIA members, the
total premium volume in the U.S. reached approximately $3.9 billion by the end of 2023, with a slight slowdown in
growth observed in 2023.28
As companion animals live longer, veterinary care costs are rising, prompting more pet owners to consider
insurance for managing expenses related to preventive care, illnesses, and emergencies. In 2023, the North
20 National Association of Insurance Commissioners, A Regulator’s Guide to Pet Insurance, p. 4
https://content.naic.org/sites/default/files/publication-pin-op-pet-insurance.pdf (last visited Feb. 28, 2025).
21 Id.
22 Id.
23 Id.
24 Id.
25 Id. at 7.
26 Id.
27 NAPHIA, State of the Industry Report 2023 Highlights, p. 24, NAPHIA-SOI2024-Report-Highlights_Public-May16.pdf (last visited Feb. 28,
2025).
28 Id. at 10.
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5
American pet insurance industry surpassed $4 billion in premiums, with over 6.25 million pets insured—a 20.9%
increase from 2022.29 Data from NAPHIA indicates the average annual premium for pet insurance varies based on
the type of plan.30 In 2023, for dogs, Accident & Illness plans averaged $675.61, while Embedded Wellness plans
cost $1,263.39.31 For cats, the costs were $383.30 for Accident & Illness plans and $625.99 for Embedded Wellness.
Accident Only policies remain the most affordable, averaging $204.16 for dogs and $116.11 for cats.32
Development of Regulatory Standards for the Pet Insurance Industry
In April 2019, the Pet Insurance Working Group was tasked with reviewing NAIC’s "A Regulator's Guide to Pet
Insurance" to determine if a model law or guideline was necessary to establish appropriate regulatory standards
for the pet insurance industry.33 Subsequently, a request for Model Law development related to pet insurance was
adopted during the NAIC 2019 Spring National Meeting, addressing various aspects such as definitions,
disclosures, violations, producer licensing, preexisting conditions, reimbursement benefits, and regulations.34
During the NAIC's Summer 2022 National Meeting in members voted to adopt the Pet Insurance Model Act, which
includes key provisions concerning pet wellness programs, preexisting conditions, consumer protections, and
training for insurance producers.35 Currently, California, Delaware, Louisiana, Maine, Maryland, Nebraska, New
Hampshire, the Northern Mariana Islands, Vermont, and Washington have adopted a substantially similar version
of the NAIC model.36
Current Situation – Florida
Currently, several companies offer pet insurance in Florida; however, Florida law does not separately regulate pet
insurance. Below are companies that provide pet insurance:37
Average Monthly Maximum Annual
Companies Waiting Periods
Cost Limits
14 days for
illnesses
Two days for
$54 for dogs
injuries $5,000 - Unlimited
Pets Best $22 for cats
Six months for
orthopedic
conditions
14 days for
Spot Pet $73 for dogs illnesses
$2,500 - Unlimited
Insurance $36 for cats 14 days for
injuries
48 hours for
accidents
$52 for dogs 14 days for
Embrace $5,000 - $30,000
$37 for cats illnesses
Six months for
orthopedic
29 NAPHIA, North American Pet Health Insurance Industry Continued Exceptional Growth Rate In 2023, https://naphia.org/news/soi-
report-2024/ (Last visited Feb. 28, 2024).
30 Id. at 20.
31 Id.
32 Id.
33 NAIC, Pet Insurance, https://content.naic.org/cipr-topics/pet-insurance (last visited March 3, 2025).
34 Id.
35 Id.
36 NAIC, Pet Insurance Model Act, https://content.naic.org/sites/default/files/model-law-state-page-633_0.pdf (last visited March 3, 2025).
37 Market Watch, The Best Pet Insurance Companies in Florida (2024), https://www.marketwatch.com/guides/pet-insurance/pet-insurance-
florida/ (last visited March 3, 2025).
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6
conditions
14 days for
ASPCA Pet
$54 for dogs illnesses
Health $3,000 - $10,000
$24 for cats 14 days for
Insurance
accidents
RECENT LEGISLATION:
YEAR BILL # HOUSE SPONSOR(S) SENATE SPONSOR OTHER INFORMATION
2024 CS/CS/HB 1465 Tuck DiCeglie The bill died in the Senate
Fiscal Policy Committee.
OTHER RESOURCES:
Pet Insurance Model Act
BILL HISTORY
STAFF
DIRECTOR/ ANALYSIS
COMMITTEE REFERENCE ACTION DATE POLICY CHIEF PREPARED BY
Insurance & Banking Lloyd Herrera
Subcommittee
Commerce Committee
JUMP TO SUMMARY ANALYSIS RELEVANT INFORMATION BILL HISTORY
7
F L O R I 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 655 2025
1 A bill to be entitled
2 An act relating to pet insurance and wellness
3 programs; amending s. 624.604, F.S.; revising the
4 definition of the term "property insurance" to include
5 a pet insurance option; amending s. 626.9541, F.S.;
6 providing that certain practices relating to pet
7 wellness programs are unfair methods of competition
8 and unfair or deceptive acts or practices; creating s.
9 627.71545, F.S.; providing a short title; providing
10 purpose; providing applicability; providing
11 construction; providing definitions; requiring pet
12 insurers that use such defined terms in their pet
13 insurance policies to use and include the statutory
14 definitions in their policies; requiring pet insurers
15 to also make such definitions available on their
16 websites or their program administrators' websites;
17 requiring pet insurers to make certain disclosures to
18 pet insurance applicants and policyholders; requiring
19 pet insurers to provide a summary of their bases or
20 formulas for determination of claim payments under a
21 pet insurance policy on their websites or their
22 program administrators' websites; requiring pet
23 insurers to disclose certain requirements for required
24 medical examinations of a pet by a veterinarian;
25 requiring pet insurers to create a document with a
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HB 655 2025
26 summary of certain disclosures, to post such document
27 on their websites or their program administrators'
28 websites, and, upon issuance or delivery of a policy
29 to a policyholder, to provide such document to the
30 policyholder; requiring additional written
31 disclosures; providing that certain required
32 disclosures are in addition to disclosures required by
33 the Florida Insurance Code or the Financial Services
34 Commission rules; authorizing pet insurance applicants
35 and policyholders to examine and return insurance
36 policies and riders under certain circumstances;
37 requiring that premiums be refunded under certain
38 circumstances; requiring that pet insurance policies
39 and riders have a specified notice printed on or
40 attached to the first page; authorizing pet insurers
41 to issue policies that exclude coverage on the basis
42 of preexisting conditions with appropriate written
43 disclosure to the applicant or policyholder; providing
44 that the pet insurer has a specified burden of proof
45 with regard to such exclusions; authorizing pet
46 insurers to issue new policies that impose a waiting
47 period of up to a specified period of time for
48 specified illnesses, diseases, or conditions;
49 prohibiting pet insurers from issuing policies
50 imposing a waiting period for accidents; requiring pet
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51 insurers who issue a policy that imposes a waiting
52 period to include a provision allowing for waiver of
53 the waiting period upon completion of a medical
54 examination of the covered pet by a veterinarian;
55 authorizing pet insurers to require an examination to
56 be conducted by a veterinarian after the purchase of
57 the policy; providing requirements and authorizations
58 relating to such examination; prohibiting a pet
59 insurer from requiring a medical examination of the
60 covered pet to renew a policy; requiring that certain
61 benefits comply with certain provisions of the Florida
62 Insurance Code; prohibiting insurance applicants'
63 eligibility from being based on participation or lack
64 of participation in wellness programs; requiring pet
65 insurers to ensure that their agents are trained on
66 specified topics; providing rulemaking authority;
67 providing an effective date.
68
69 Be It Enacted by the Legislature of the State of Florida:
70
71 Section 1. Section 624.604, Florida Statutes, is amended
72 to read:
73 624.604 "Property insurance" defined.—"Property insurance"
74 is insurance on real or personal property of every kind and of
75 every interest therein, whether on land, water, or in the air,
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76 against loss or damage from any and all hazard or cause, and
77 against loss consequential upon such loss or damage, other than
78 noncontractual legal liability for any such loss or damage.
79 Property insurance may include pet insurance that provides
80 coverage for accidents and for illnesses of pets. Property
81 insurance may contain a provision for accidental death or injury
82 as part of a multiple peril homeowner's policy. Such insurance,
83 which is incidental to the property insurance, is not subject to
84 the provisions of this code applicable to life or health
85 insurance. Property insurance does not include title insurance,
86 as defined in s. 624.608.
87 Section 2. Paragraph (hh) is added to subsection (1) of
88 section 626.9541, Florida Statutes, to read:
89 626.9541 Unfair methods of competition and unfair or
90 deceptive acts or practices defined.—
91 (1) UNFAIR METHODS OF COMPETITION AND UNFAIR OR DECEPTIVE
92 ACTS.—The following are defined as unfair methods of competition
93 and unfair or deceptive acts or practices:
94 (hh) Sales practices for pet wellness programs.—
95 1. A pet insurance agent may not market a wellness program
96 as pet insurance.
97 2. If a wellness program is sold by a pet insurance agent:
98 a. The purchase of the wellness program may not be a
99 prerequisite to the purchase of pet insurance;
100 b. The costs of the wellness program must be separate and
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101 identifiable from any pet insurance policy sold by the pet
102 insurance agent;
103 c. The terms and conditions of the wellness program must
104 be separate from any pet insurance policy sold by the agent;
105 d. The products or coverages available through the
106 wellness program may not duplicate the products or coverages
107 available through the pet insurance policy; and
108 e. The advertising of the wellness program must not be
109 misleading.
110 Section 3. Section 627.71545, Florida Statutes, is created
111 to read:
112 627.71545 Pet insurance; noninsurance wellness programs.—
113 (1) This section may be cited as the "Pet Insurance Act."
114 (2) The purpose of this section is to promote the public
115 welfare by creating a comprehensive regulatory framework within
116 which pet insurance may be sold in this state.
117 (3) This section applies to all of the following:
118 (a) Pet insurance policies that are issued to any resident
119 of this state or that are sold, solicited, negotiated, or
120 offered in this state.
121 (b) Pet insurance policies or certificates that are
122 delivered or issued for delivery in this state.
123 (4)(a) This section may not be construed to prohibit or
124 limit the types of exclusions pet insurers may use in their
125 policies or to require pet insurers to include in such policies
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126 any of the limitations or exclusions specified in subsection
127 (9).
128 (b) All other applicable provisions of the Florida
129 Insurance Code apply to pet insurance, except that this section
130 supersedes any general provisions of the Florida Insurance Code
131 which otherwise apply to pet insurance.
132 (5)(a) As used in this section, the term:
133 1. "Chronic condition" means a condition that can be
134 treated or managed, but not cured.
135 2. "Congenital anomaly or disorder" means a condition that
136 is present from birth, whether inherited or caused by the
137 environment, and that may cause or contribute to illness or
138 disease.
139 3. "Hereditary disorder" means an abnormality that is
140 genetically transmitted from parent to offspring and may cause
141 illness or disease.
142 4. "Orthopedic conditions" means a condition that affects
143 the bones, skeletal muscle, cartilage, tendons, ligaments, or
144 joints. The term includes, but is not limited to, elbow
145 dysplasia, hip dysplasia, intervertebral disc degeneration,
146 patellar luxation, and cranial cruciate ligament rupture, but
147 does not include any cancer or any metabolic, hematopoietic, or
148 autoimmune disease.
149 5. "Pet insurance" means an insurance policy that provides
150 coverage for accidents and for illnesses and diseases of pets.
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151 Such insurance reimburses a policyholder for expenses associated
152 with medical advice, diagnosis, care, or treatment provided by a
153 veterinarian, including, but not limited to, the cost of drugs
154 prescribed by the veterinarian.
155 6. "Pet insurance policy" or "policy" includes pet
156 insurance certificates.
157 7. "Preexisting condition" means a condition for which any
158 of the following is true before the effective date of or during
159 a waiting period applicable to a pet insurance policy:
160 a. A veterinarian provided medical advice.
161 b. The pet received previous treatment.
162 c. Based on information from verifiable sources, the pet
163 had signs or symptoms directly related to the condition for
164 which a claim is being made.
165
166 A condition for which coverage is afforded on a policy is not
167 deemed to be a preexisting condition on any renewal of the
168 policy.
169 8. "Renewal" means the issuance and delivery at the end of
170 an insurance policy period of a policy that supersedes the
171 policy previously issued and delivered by the same pet insurer
172 or affiliated pet insurer and that provides types and limits of
173 coverage substantially similar to those contained in the policy
174 being superseded.
175 9. "Veterinarian" means a health care practitioner who is
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176 licensed to engage in the practice of veterinary medicine in
177 this state under chapter 474.
178 10. "Waiting period" means the period of time specified in
179 a pet insurance policy which is required to run before some or
180 all of the coverage in the policy may begin. This period may not
181 be applied to renewals of existing coverage.
182 11. "Wellness program" means a subscription or
183 reimbursement-based program that is separate from an insurance
184 policy and that provides goods and services to promote the
185 general health, safety, or well-being of the covered pet. If the
186 subscription or program includes language such as "undertakes to
187 indemnify another," "pays a specified amount upon determinable
188 contingencies," or "provides coverage for a fortuitous event,"
189 the subscription or program is transacting in the business of
190 insurance and is subject to the Florida Insurance Code. This
191 definition is not intended to classify a contract directly
192 between a service provider and a pet owner which involves only
193 the two parties as being the business of insurance, unless other
194 indications of insurance also exist.
195 (b) If a pet insurer uses any of the terms defined in
196 paragraph (a) in a pet insurance policy, the pet insurer must
197 use the definition of each term as provided in paragraph (a) and
198 must include each such definition in the policy. The pet insurer
199 must also make such definitions available through a clear and
200 conspicuous link on the main page of the website of the pet
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201 insurer or the pet insurer's program administrator.
202 (6)(a) A pet insurer transacting pet insurance must
203 disclose the following to pet insurance applicants and
204 policyholders:
205 1. Whether the policy excludes coverage due to any of the
206 following:
207 a. A chronic condition;
208 b. A congenital anomaly or disorder;
209 c. A hereditary disorder; or
210 d. A preexisting condition.
211 2. If the policy includes any other exclusions not listed
212 in subparagraph 1., the following information in a statement in
213 the disclosure: "Other exclusions may apply. Please refer to the
214 exclusions section of the policy for more information."
215 3. Any policy provision that limits coverage through a
216 waiting period, a deductible, a coinsurance payment, or an
217 annual or lifetime policy limit. Waiting periods and applicable
218 requirements must be clearly and prominently disclosed to
219 applicants before the policy purchase.
220 4. Whether the pet insurer reduces coverage or increases
221 premium based on the policyholder's claims history, the age of
222 the covered pet, or a change in the geographic location of the
223 policyholder.
224 5. Whether the underwriting company differs from the brand
225 name used to market and sell the pet insurance.
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226 (b) Before issuing a pet insurance policy, a pet insurer
227 shall, through a clear and conspicuous link on the main page of
228 the pet insurer's or the pet insurer's program administrator's
229 website, provide a summary description of the basis or formula
230 for the pet insurer's determination of claim payments under the
231 policy.
232 1. A pet insurer that uses a benefit schedule to determine
233 claim payments under a pet insurance policy must clearly
234 disclose both of the following:
235 a. The applicable benefit schedule in the policy.
236 b. All benefit schedules used by the pet insurer under its
237 pet insurance policies through a clear and conspicuous link on
238 the main page of the pet insurer's or pet insurer's program
239 administrator's website.
240 2. A pet insurer that determines claim payments under a
241 pet insurance policy based on usual and customary fees, or any
242 other reimbursement limitation based on prevailing veterinary
243 service provider charges, shall do both of the following:
244 a. Include a usual and customary fee limitation provision
245 in the policy which clearly describes the pet insurer's basis or
246 formula for determining usual and customary fees and the manner
247 in which that basis or formula is applied in calculating claim
248 payments.
249 b. Disclose the pet insurer's basis for determining usual
250 and customary fees through a clear and conspicuous link on the
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251 main page of the pet insurer's or pet insurer's program
252 administrator's website.
253 (c) If any medical examination of the pet by a
254 veterinarian is required to effectuate coverage, the pet insurer
255 must clearly and conspicuously disclose any requirement for the
256 examination before the policy is purchased and must disclose
257 that examination documentation may result in a preexisting
258 condition exclusion.
259 (d) A pet insurer shall create a summary of all policy
260 disclosures required in paragraphs (a), (b), and (c) in a
261 separate document entitled "Insurer Disclosure of Important
262 Policy Provisions." The pet insurer shall post the document
263 through a clear and conspicuous link on the main page of the pet
264 insurer's or pet insurer's program administrator's website.
265 (e) At the time a pet insurance policy is issued or
266 delivered to a policyholder, the pet insurer shall provide the
267 policyholder with a copy of the Insurer Disclosure of Important
268 Policy Provisions document required under paragraph (d), in at
269 least 12-point type. At such time, the pet insurer shall also
270 include a written disclosure with all of the following:
271 1. Contact information for the Division of Consumer
272 Services of the department, including a link and toll-free
273 telephone number, for consumers to submit inquiries and
274 complaints relating to pet insurance products regulated by the
275 department or office.
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276 2. The address and customer service telephone number of
277 the pet insurance agent.
278 (f) The disclosures required in this subsection are in
279 addition to any other disclosures required by the Florida
280 Insurance Code or rules prescribed by the commission.
281 (7) Unless the policyholder has filed a claim under the
282 pet insurance policy, a pet insurance applicant or policyholder
283 may examine and return the policy or rider to the pet insurer or
284 pet insurance agent or broker within 30 days after the applicant
285 or policyholder obtains the receipt and is entitled to the
286 premium refunded if, after examining the policy or rider, he or
287 she is not satisfied for any reason.
288 (8) A pet insurance policy and rider must have a notice
289 prominently printed on or attached to the first page which
290 includes specific instructions to accomplish a return, in type
291 at least as large as any type appearing on the policy or rider
292 contract and in substantially the following language:
293
294 You have 30 days after the date you receive this
295 policy, certificate, or rider to review and return it
296 to the company if you decide not to keep it. You do
297 not have to tell the company why you are returning it.
298 If you decide not to keep policy, certificate, or
299 rider, simply return it to the company at the
300 company's administrative office, or to the insurance
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301 agent or broker from whom you bought it, as long as
302 you have not filed a claim. You must return the
303 policy, certificate, or rider within 30 days after the
304 day you first receive it in order to receive a refund.
305 The company must refund the full amount of any premium
306 paid within 30 days after it receives the returned
307 policy, certificate, or rider. The premium refund will
308 be sent directly to the person who paid it. The
309 policy, certificate, or rider will be void as if it
310 had never been issued.
311
312 (9)(a) A pet insurer may issue a policy that excludes
313 coverage on the basis of one or more preexisting conditions with
314 appropriate written disclosure to the applicant or policyholder.
315 The pet insurer has the burden of proving that the preexisting
316 condition exclusion applies to the condition for which a claim
317 is being made.
318 (b)1. A pet insurer may issue a new policy imposing a
319 waiting period that does not exceed 30 days after effectuation
320 of coverage for illnesses or diseases or for orthopedic
321 conditions not resulting from an accident. A pet insurer may not
322 issue a policy imposing a waiting period for accidents.
323 2. A pet insurer issuing a policy that imposes a waiting
324 period must include a provision in its contract which allows the
325 waiting period to be waived upon completion of a medical
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326 examination of the pet by a veterinarian. The pet insurer may
327 require the examination to be conducted by a veterinarian after
328 the purchase of the policy.
329 a. A medical examination required under this subparagraph
330 must be paid for by the policyholder, unless the policy
331 specifies that the pet insurer will pay for the examination.
332 b. A pet insurer may specify requirements for the
333 examination and require documentation that the requirements have
334 been satisfied, provided that the specifications do not
335 unreasonably restrict the ability of the applicant or
336 policyholder to waive the waiting period.
337 (c) A pet insurer may not require a medical examination of
338 the covered pet for the policyholder to renew a policy.
339 (d) If a pet insurer includes any prescriptive, wellness,
340 or noninsurance benefit in the policy form, the benefit is made
341 part of the policy contract and must comply with all of the
342 applicable provisions of the Florida Insurance Code.
343 (e) An applicant's eligibility to purchase a pet insurance
344 policy may not be based on his or her participation, or lack of
345 participation, in a separate wellness program.
346 (10)(a) A pet insurer must ensure that its agents are
347 trained on the topics specified in paragraph (b) and that its
348 agents have been appropriately trained on the coverages and
349 conditions of its pet insurance products.
350 (b) The training required under this subsection must
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351 include information on all of the following topics:
352 1. Preexisting conditions and waiting periods.
353 2. The differences between pet insurance and noninsurance
354 wellness programs.
355 3. Chronic conditions, congenital anomalies or disorders,
356 and hereditary disorders and the way pet insurance policies
357 address those conditions or disorders.
358 4. Rating, underwriting, renewal, and other related
359 administrative topics.
360 (11) The commission may adopt rules necessary to
361 administer this section.
362 Section 4. This act shall take effect January 1, 2026.
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HB 7003
FLORIDA HOUSE OF REPRESENTATIVES
BILL ANALYSIS
This bill analysis was prepared by nonpartisan committee staff and does not constitute an official statement of legislative intent.
BILL #: HB 7003 PCB GOS 25-03 COMPANION BILL: None
TITLE: OGSR/Financial Technology Sandbox LINKED BILLS: None
Applications/OFR RELATED BILLS: None
SPONSOR(S): Sapp
Committee References
Orig. Comm.: Government Insurance & Banking State Affairs
Operations
5 Y, 0 N
SUMMARY
Effect of the Bill:
The bill saves from repeal the public record exemption for specified sensitive business information held by the
Office of Financial Regulation to evaluate a Financial Technology Sandbox application. The public record exemption
will repeal on October 2, 2025, if the bill does not become a law.
Fiscal or Economic Impact:
None.
JUMP TO SUMMARY ANALYSIS RELEVANT INFORMATION BILL HISTORY
ANALYSIS
EFFECT OF THE BILL:
The bill removes the scheduled repeal date, created pursuant to the Open Government Sunset Review Act, for the
public record exemption for specified sensitive business information provided to and held by the Office of Financial
Regulation to evaluate an application to participate in the Financial Technology Sandbox. The public record
exemption will repeal on October 2, 2025, if the bill does not become a law. (Section 1)
The effective date of the bill is October 1, 2025. (Section 2)
RELEVANT INFORMATION
SUBJECT OVERVIEW:
Open Government Sunset Review Act
The Open Government Sunset Review Act (OGSR Act)1 sets forth a legislative review process for newly created or
substantially amended public record or public meeting exemptions. It requires an automatic repeal of the
exemption on October 2nd of the fifth year after creation or substantial amendment, unless the Legislature reenacts
the exemption.2
The OGSR Act provides that a public record or public meeting exemption may be created or maintained only if it
serves an identifiable public purpose. In addition, it may be no broader than is necessary to meet 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.
1
S. 119.15, F.S.
2 S. 119.15(3), F.S.
STORAGE NAME: h7003.IBS
DATE: 3/4/2025
1
Protect trade or business secrets.3
If, and only if, in reenacting an exemption that will repeal, the exemption is expanded, then a public necessity
statement and a two-thirds vote for passage are required. If the exemption is reenacted with grammatical or
stylistic changes that do not expand the exemption, if the exemption is narrowed, or if an exception to the
exemption is created, then a public necessity statement and a two-thirds vote are not required.4
Financial Technology Sandbox
The Financial Technology Sandbox was created within the Office of Financial Regulation (OFR) to allow financial
technology innovators to test new products and services in a supervised, flexible regulatory sandbox using
exceptions to specified general law and waivers of the corresponding rule requirements under defined conditions.
The intent of the creation of the regulatory sandbox is to provide a welcoming business environment for
technology innovators.5
Before making an innovative financial product or service6 available in the Financial Technology Sandbox, a
business entity must file an application for licensure with OFR.7 In the application, the applicant must:8
Specify each general law enumerated in the Financial Technology Sandbox law that prevents the innovative
financial product or service from being made available to consumers and the reasons why those provisions
of general law prevent the innovative financial product or service from being made available to consumers.
Submit sufficient information for the OFR to evaluate the following factors and any other factors that the
OFR determines to be relevant, including:9
o The nature of the innovative financial product or service proposed to be made available to
consumers in the Financial Technology Sandbox, including all relevant technical details.
o The potential risk to consumers and the methods that will be used to protect consumers and
resolve complaints during the sandbox period.
o The business plan proposed by the applicant, including company information, market analysis, and
financial projections or pro forma financial statements, and evidence of the financial viability of the
applicant.
o Whether the applicant has the necessary personnel, adequate financial and technical expertise, and
a sufficient plan to test, monitor, and assess the innovative financial product or service.
o Whether any control person of the applicant, regardless of adjudication, has pled no contest to, has
been convicted or found guilty of, or is currently under investigation for fraud, a state or federal
securities violation, a property-based offense, or a crime involving moral turpitude or dishonest
dealing.
o A copy of specified consumer disclosures that will be provided to consumers.
o The financial responsibility of the applicant and any control person, including whether the
applicant or any control person has a history of unpaid liens, unpaid judgments, or other general
history of nonpayment of legal debts.
Include evidence that the business entity has authorized the person to submit the application on behalf of
the business entity intending to make an innovative financial product or service available to consumers.
Specify the maximum number of consumers to whom the applicant proposes to provide the innovative
financial product or service.
Include a proposed draft of the statement or statements which the applicant proposes to provide to
consumers.
3 S. 119.15(6)(b), F.S.
4 Art. I, s. 24(c), FLA. CONST.
5 S. 559.952(2), F.S.
6 S. 559.952(3)(f), F.S. defines the term “financial product or service” as a product or service related to a consumer finance
loan, or a money transmitter or payment instrument seller, including mediums of exchange that are in electronic or digital
form, which is subject to the general laws enumerated in the Financial Technology Sandbox law and corresponding rule
requirements and which is under the jurisdiction of the OFR.
7 S. 559.952(5)(b), F.S.
8 Id.
9 S. 559.952(5)(c), F.S.
JUMP TO SUMMARY ANALYSIS RELEVANT INFORMATION BILL HISTORY
2
OFR must approve or deny the Financial Technology Sandbox application within 60 days after receiving a
completed application.10 Agency rule provides further detail on the application form, fees, and evaluation process.11
Public Record Exemption under Review
In 2020, the Legislature created a public record exemption that holds confidential and exempt12 the following
information provided to and held by the OFR in a Financial Technology Sandbox application:13
Reasons why general laws enumerated in the Financial Technology Sandbox law14 prevent the innovative
financial product or service from being made available to consumers.15
Information provided for evaluation of the nature of the innovative financial product or service proposed
to be made available to consumers in the Financial Technology Sandbox, including all relevant technical
details.16
Information provided for the evaluation of the business plan proposed by the applicant that includes
company information, market analysis, and financial projections or pro forma financial statements, and
evidence of the financial viability of the applicant.17
Information provided for evaluation of whether the applicant has a sufficient plan to test, monitor, and
assess the innovative financial product or service. 18 Such information includes whether the applicant has
the necessary personnel and adequate financial and technical expertise.19
The confidential and exempt information may be released to the appropriate state and federal agencies for
purposes of an investigation. The exemption of the aforementioned information cannot be construed to prevent
OFR from disclosing a summary of the innovative product or service.20
The 2020 public necessity statement21 provided that:
[T]he disclosure of such information could adversely affect the business interests of
the Financial Technology Sandbox applicant and could injure the applicant in the
marketplace if the information is made available to competitors [and the]
divulgence of [such sensitive] information would destroy its value to the business
entity potentially causing a financial loss.22
Pursuant to the OGSR Act, the exemption will repeal on October 2, 2025, unless reenacted by the Legislature.23
10 S. 559.952(5)(c), F.S.
11 R. 69V-559.102, F.A.C.; see also r. 69V-559.1012, F.A.C and r. 69V-559.1021, F.A.C.
12 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 persons or entities specifically designated in statute. See Op. Att’y Gen. Fla. 04- 09 (2004).
13 S. 559.952(5)(h), F.S.
14 S. 559.952(4)(a), F.S., provides that upon approval of a Financial Technology Sandbox application, certain enumerated
provisions in general law and corresponding rule requirements are not applicable to the licensee during the sandbox period.
Sandbox period is the initial 24-month period in which the office has authorized a licensee to make an innovative financial
product or service available to consumers, and any granted extension.
15 S. 559.952(5)(h)1.a, F.S.
16 S. 559.952(5)(h)1.b, F.S.
17 Id.
18 S. 559.952(5)(h)1.c, F.S.
19 S. 559.952(5)(c)4, F.S.
20 S. 559.952(5)(h), F.S.
21 Art. I, s. 24(c), FLA. CONST., requires each public record exemption to “state with specificity the public necessity justifying
exemption.”
22 Ch. 2020-162, L.O.F.
23 S. 559.952(5)(h)2, F.S.
JUMP TO SUMMARY ANALYSIS RELEVANT INFORMATION BILL HISTORY
3
During the 2024 interim, House and Senate committee staff met jointly with staff from the OFR to discuss the
public record exemption under review. OFR staff indicated that they had no issue interpreting or applying the
exemption and were unaware of any litigation concerning the exemption. OFR staff recommended reenacting the
exemption as is.
BILL HISTORY
STAFF
DIRECTOR/ ANALYSIS
COMMITTEE REFERENCE ACTION DATE POLICY CHIEF PREPARED BY
Orig. Comm.: Government 5 Y, 0 N 2/18/2025 Toliver Villa
Operations Subcommittee
Insurance & Banking Lloyd Schenk
Subcommittee
State Affairs Committee
JUMP TO SUMMARY ANALYSIS RELEVANT INFORMATION BILL HISTORY
4
F L O R I 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 7003 2025
1 A bill to be entitled
2 An act relating to a review under the Open Government
3 Sunset Review Act; amending s. 559.952, F.S., which
4 provides an exemption from public record requirements
5 for certain information held by the Office of
6 Financial Regulation in Financial Technology Sandbox
7 applications; removing the scheduled repeal of the
8 exemption; providing an effective date.
9
10 Be It Enacted by the Legislature of the State of Florida:
11
12 Section 1. Paragraph (h) of subsection (5) of section
13 559.952, Florida Statutes, is amended to read:
14 559.952 Financial Technology Sandbox.—
15 (5) FINANCIAL TECHNOLOGY SANDBOX APPLICATION; STANDARDS
16 FOR APPROVAL.—
17 (h)1. The following information provided to and held by
18 the office in a Financial Technology Sandbox application under
19 this subsection is confidential and exempt from s. 119.07(1) and
20 s. 24(a), Art. I of the State Constitution:
21 1.a. The reasons why a general law enumerated in paragraph
22 (4)(a) prevents the innovative financial product or service from
23 being made available to consumers.
24 2.b. The information provided for evaluation of the
25 factors specified in subparagraphs (c)1. and 3.
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26 3.c. The information provided for evaluation of whether
27 the applicant has a sufficient plan to test, monitor, and assess
28 the innovative financial product or service, under subparagraph
29 (c)4.
30
31 However, the confidential and exempt information may be released
32 to appropriate state and federal agencies for the purposes of
33 investigation. Nothing in this paragraph shall be construed to
34 prevent the office from disclosing a summary of the innovative
35 financial product or service.
36 2. This paragraph is subject to the Open Government Sunset
37 Review Act in accordance with s. 119.15 and shall stand repealed
38 on October 2, 2025, unless reviewed and saved from repeal
39 through reenactment by the Legislature.
40 Section 2. This act shall take effect October 1, 2025.
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hb7003-00
PCS for HB 147
FLORIDA HOUSE OF REPRESENTATIVES
BILL ANALYSIS
This bill analysis was prepared by nonpartisan committee staff and does not constitute an official statement of legislative intent.
BILL #: PCS for HB 147 COMPANION BILL: None
TITLE: Prohibited Practices in Consumer Debt Collection LINKED BILLS: None
SPONSOR(S): Insurance & Banking Subcommittee RELATED BILLS: None
Committee References
Orig. Comm.: Insurance & Banking
SUMMARY
Effect of the Bill:
The bill provides that prohibited debt collection practices apply unless otherwise authorized by law. Additionally,
the bill creates an exception to the prohibition on contacting a debtor between the hours of 9:00 p.m. and 8:00 a.m.
The bill permits emails to be sent and received during those hours. The bill also removes referenced examples of
telephone communications, so that the time of the communication is measured for the purpose of the violation and
not the form of communication.
Fiscal or Economic Impact:
None
JUMP TO SUMMARY ANALYSIS RELEVANT INFORMATION BILL HISTORY
ANALYSIS
EFFECT OF THE BILL:
The bill provides that prohibited debt collection practices apply unless otherwise authorized by law. Additionally,
the bill creates an exception to the prohibition on contacting a debtor between the hours of 9:00 p.m. and 8:00 a.m.
The bill permits emails to be sent and received during those hours. The bill also removes referenced examples of
telephone communications, so that the time of the communication is measured for the purpose of the violation and
not the form of the communication.
The bill reenacts the following statutes for the purpose of incorporating the bill’s amendment to section 559.72,
F.S.:
Subsection (2) of section 559.565, F.S.
Subsection (2) of section 559.725, F.S.
Subsections (1) and (2) of section 559.77, F.S.
Paragraph (o) of subsection (1) of section 648.44, F.S.
Paragraph (b) of subsection (2) of section 817.7001, F.S.
The bill is effective upon becoming law.
FISCAL OR ECONOMIC IMPACT:
PRIVATE SECTOR:
Creditors may see increased collections to the extent that the permitted emails are effective at facilitating
collection activity.
STORAGE NAME: PCS0147.IBS
DATE: 3/4/2025
1
RELEVANT INFORMATION
SUBJECT OVERVIEW:
The Florida Consumer Collection Practices Act (FCCPA)
The FCCPA prohibits certain practices by any person attempting to collect a debt.1 It serves as Florida’s
counterpart to the federal Fair Debt Collection Practices Act (FDCPA) and aims to eliminate abusive and harassing
debt collection tactics.2 Under the FCCPA, debt collectors3 are prohibited from using or threatening violence4, using
profane or vulgar language5, or attempting to enforce an illegitimate debt.6
Among the list of prohibited practices, collectors may not communicate with a debtor between 9 p.m. and 8 a.m. in
the debtor’s time zone without the debtor’s prior consent.7 However, the current version of the statute does not
specify the types of communication restricted during these hours. Although it does provide two situations in which
the presumed time of a telephone call may be calculated in reference to the time zone of the caller and the
recipient. Since these only reference telephone calls and not all types communications, it may be unclear how this
applies to other types of communication or if it limits the application only to telephone calls.
The Fair Debt Collection Practices Act
The FDCPA8 was enacted in March 1978 to eliminate abusive, deceptive, and unfair debt collection practices.9
Under 12 C.F.R. § 1006.06(b)(1)(i), a debt collector may not communicate or attempt to communicate with a
consumer about a debt at an unusual or inconvenient time unless the consumer provides prior consent or the
communication is permitted by a court. In the absence of specific knowledge to the contrary, the law presumes that
contacting a consumer before 8:00 a.m. or after 9:00 p.m. local time is inconvenient.10 While email11 and text
communications12 are permitted under the FDCPA, debt collectors must provide consumers with a reasonable and
simple method to opt out of such communications.13
Recent Litigation
The U.S. District Court for the Southern District of Florida recently addressed the meaning of “communicate with” a
consumer under the FCCPA.14 In this case, the plaintiff sued a debt collector for sending an email at 8:23 p.m.,
which was delivered to her at 10:14 p.m. and remained unread until 11:44 a.m. the following day.15 The plaintiff
argued that this constituted a violation of s. 559.72(17), F.S., which prohibits communication with a debtor
between 9 p.m. and 8 a.m.16
1 “Debt collector” means any person who uses any instrumentality of commerce within this state, whether initiated from
within or outside this state, in any business the principal purpose of which is the collection of debts, or who regularly collects
or attempts to collect, directly or indirectly, debts owed or due or asserted to be owed or due another. The term “debt
collector” includes any creditor who, in the process of collecting her or his own debts, uses any name other than her or his own
which would indicate that a third person is collecting or attempting to collect such debts. S. 559.55(7), F.S.
2 The Consumer Prot. Law Comm. of the Florida Bar, The Consumer Law Bench Book, p. 46, available at
https://www.floridabar.org/about/cmtes/cmte-cm410/cplc-bench-manual/ (last visited Feb. 12, 2025).
3 “Debt” or “consumer debt” means any obligation or alleged obligation of a consumer to pay money arising out of a
transaction in which the money, property, insurance, or services which are the subject of the transaction are primarily for
personal, family, or household purposes, whether or not such obligation has been reduced to judgement. S. 559.55(6), F.S.
4 S. 559.72(2), F.S.
5 S. 559.72(8), F.S.
6 S. 559.72(9), F.S.
7 S. 559.72(17), F.S.
8 15 U.S.C. § 1692 et seq.
9 The Fed. Rsrv., Consumer Compliance Handbook, available at
https://www.federalreserve.gov/boarddocs/supmanual/cch/fairdebt.pdf, (last visited Feb. 12, 2025).
10 12 C.F.R. § 1006.06(b)(1)(i).
11 12 C.F.R. § 1006.06(d)(4).
12 12 C.F.R. § 1006.06(d)(5).
13 12 C.F.R. § 1006.06(d)(4)(ii)(4).
14 Quinn-Davis v. TrueAccord Corp., Case No. 1:23-cv-23590-LEIBOWITZ/REID (S.D. Fla. Nov. 20, 2024).
15 Id.
16 Id. at 2
JUMP TO SUMMARY ANALYSIS RELEVANT INFORMATION BILL HISTORY
2
With no binding precedent on point, the court ruled that an email does not constitute communication “with” a
consumer until the consumer either reads or at least receives the message.17 Under this Court’s interpretation, the
debt collector did not “communicate” with the plaintiff until 11:44 a.m., when she actually read the email.18 As a
result, the court granted the defendant’s motion for summary judgment.19
Since this case addressed a previously unresolved legal question, future Florida courts or other federal district
courts may interpret the issue differently. Notably, the court’s ruling also diverges from the Consumer Financial
Protection Bureau’s interpretation under the FDCPA, which takes a broader view of what it means to
“communicate with” a debtor.20
BILL HISTORY
STAFF
DIRECTOR/ ANALYSIS
COMMITTEE REFERENCE ACTION DATE POLICY CHIEF PREPARED BY
Orig. Comm.: Insurance & Banking Lloyd Schenk
Subcommittee
17 Id.
18 Id. at 7.
19 Id. at 9.
20 Id. at 5. (“The CFPB interprets ‘communicate with’ under the FDCPA to mean that a debt collector communicates with a
customer when the debt collector ‘sends’ an electronic communication.”).
JUMP TO SUMMARY ANALYSIS RELEVANT INFORMATION BILL HISTORY
3
F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
PCS for HB 147 2025
1 A bill to be entitled
2 An act relating to prohibited practices in consumer
3 debt collection; amending s. 559.72, F.S.; revising
4 prohibited practices for a person attempting to
5 collect consumer debt; making a technical change;
6 reenacting ss. 559.565(2), 559.725(2), 559.77(1) and
7 (2), 648.44(1)(o), and 817.7001(2)(b), F.S., relating
8 to enforcement action against out-of-state consumer
9 debt collector, consumer complaints and administrative
10 duties, civil remedies, prohibitions and penalties,
11 and definitions, respectively, to incorporate the
12 amendment made to s. 559.72, F.S., in references
13 thereto; providing an effective date.
14
15 Be It Enacted by the Legislature of the State of Florida:
16
17 Section 1. Section 559.72, Florida Statutes, is amended to
18 read:
19 559.72 Prohibited practices generally.—Unless otherwise
20 authorized by law, in collecting consumer debts, a no person may
21 not shall:
22 (1) Simulate in any manner a law enforcement officer or a
23 representative of any governmental agency.
24 (2) Use or threaten force or violence.
25 (3) Tell a debtor who disputes a consumer debt that she or
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26 he or any person employing her or him will disclose to another,
27 orally or in writing, directly or indirectly, information
28 affecting the debtor's reputation for credit worthiness without
29 also informing the debtor that the existence of the dispute will
30 also be disclosed as required by subsection (6).
31 (4) Communicate or threaten to communicate with a debtor's
32 employer before obtaining final judgment against the debtor,
33 unless the debtor gives her or his permission in writing to
34 contact her or his employer or acknowledges in writing the
35 existence of the debt after the debt has been placed for
36 collection. However, this does not prohibit a person from
37 telling the debtor that her or his employer will be contacted if
38 a final judgment is obtained.
39 (5) Disclose to a person other than the debtor or her or
40 his family information affecting the debtor's reputation,
41 whether or not for credit worthiness, with knowledge or reason
42 to know that the other person does not have a legitimate
43 business need for the information or that the information is
44 false.
45 (6) Disclose information concerning the existence of a
46 debt known to be reasonably disputed by the debtor without
47 disclosing that fact. If a disclosure is made before such
48 dispute has been asserted and written notice is received from
49 the debtor that any part of the debt is disputed, and if such
50 dispute is reasonable, the person who made the original
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51 disclosure must reveal upon the request of the debtor within 30
52 days the details of the dispute to each person to whom
53 disclosure of the debt without notice of the dispute was made
54 within the preceding 90 days.
55 (7) Willfully communicate with the debtor or any member of
56 her or his family with such frequency as can reasonably be
57 expected to harass the debtor or her or his family, or willfully
58 engage in other conduct which can reasonably be expected to
59 abuse or harass the debtor or any member of her or his family.
60 (8) Use profane, obscene, vulgar, or willfully abusive
61 language in communicating with the debtor or any member of her
62 or his family.
63 (9) Claim, attempt, or threaten to enforce a debt when
64 such person knows that the debt is not legitimate, or assert the
65 existence of some other legal right when such person knows that
66 the right does not exist.
67 (10) Use a communication that simulates in any manner
68 legal or judicial process or that gives the appearance of being
69 authorized, issued, or approved by a government, governmental
70 agency, or attorney at law, when it is not.
71 (11) Communicate with a debtor under the guise of an
72 attorney by using the stationery of an attorney or forms or
73 instruments that only attorneys are authorized to prepare.
74 (12) Orally communicate with a debtor in a manner that
75 gives the false impression or appearance that such person is or
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76 is associated with an attorney.
77 (13) Advertise or threaten to advertise for sale any debt
78 as a means to enforce payment except under court order or when
79 acting as an assignee for the benefit of a creditor.
80 (14) Publish or post, threaten to publish or post, or
81 cause to be published or posted before the general public
82 individual names or any list of names of debtors, commonly known
83 as a deadbeat list, for the purpose of enforcing or attempting
84 to enforce collection of consumer debts.
85 (15) Refuse to provide adequate identification of herself
86 or himself or her or his employer or other entity whom she or he
87 represents if requested to do so by a debtor from whom she or he
88 is collecting or attempting to collect a consumer debt.
89 (16) Mail any communication to a debtor in an envelope or
90 postcard with words typed, written, or printed on the outside of
91 the envelope or postcard calculated to embarrass the debtor. An
92 example of this would be an envelope addressed to "Deadbeat,
93 Jane Doe" or "Deadbeat, John Doe."
94 (17) Communicate with the debtor, except by email, via a
95 communication sent and received, as provided in s. 668.50(15),
96 between the hours of 9 p.m. and 8 a.m. in the debtor's time zone
97 without the prior consent of the debtor.
98 (a) The person may presume that the time a telephone call
99 communication is received conforms to the local time zone
100 assigned to the record address area code of the debtor number
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101 called, unless the person reasonably believes that the debtor's
102 telephone is located in a different time zone.
103 (b) If, such as with toll-free numbers, an area code is
104 not assigned to a specific geographic area, the person may
105 presume that the time a telephone call is received conforms to
106 the local time zone of the debtor's last known place of
107 residence, unless the person reasonably believes that the
108 debtor's telephone is located in a different time zone.
109 (18) Communicate with a debtor if the person knows that
110 the debtor is represented by an attorney with respect to such
111 debt and has knowledge of, or can readily ascertain, such
112 attorney's name and address, unless the debtor's attorney fails
113 to respond within 30 days to a communication from the person,
114 unless the debtor's attorney consents to a direct communication
115 with the debtor, or unless the debtor initiates the
116 communication.
117 (19) Cause a debtor to be charged for communications by
118 concealing the true purpose of the communication, including
119 collect telephone calls and telegram fees.
120 Section 2. For the purpose of incorporating the amendment
121 made by this act to section 559.72, Florida Statutes, in a
122 reference thereto, subsection (2) of section 559.565, Florida
123 Statutes, is reenacted to read:
124 559.565 Enforcement action against out-of-state consumer
125 debt collector.—The remedies of this section are cumulative to
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126 other sanctions and enforcement provisions of this part for any
127 violation by an out-of-state consumer debt collector, as defined
128 in s. 559.55(11).
129 (2) A person, whether or not exempt from registration
130 under this part, who violates s. 559.72 is subject to sanctions
131 the same as any other consumer debt collector, including
132 imposition of an administrative fine. The registration of a duly
133 registered out-of-state consumer debt collector is subject to
134 revocation or suspension in the same manner as the registration
135 of any other registrant under this part.
136 Section 3. For the purpose of incorporating the amendment
137 made by this act to section 559.72, Florida Statutes, in a
138 reference thereto, subsection (2) of section 559.725, Florida
139 Statutes, is reenacted to read:
140 559.725 Consumer complaints; administrative duties.—
141 (2) The office shall inform and furnish relevant
142 information to the appropriate regulatory body of the state or
143 the Federal Government, or The Florida Bar in the case of
144 attorneys, if a person has been named in a consumer complaint
145 pursuant to subsection (3) alleging violations of s. 559.72. The
146 Attorney General may take action against any person in violation
147 of this part.
148 Section 4. For the purpose of incorporating the amendment
149 made by this act to section 559.72, Florida Statutes, in
150 references thereto, subsections (1) and (2) of section 559.77,
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151 Florida Statutes, are reenacted to read:
152 559.77 Civil remedies.—
153 (1) A debtor may bring a civil action against a person
154 violating the provisions of s. 559.72 in the county in which the
155 alleged violator resides or has his or her principal place of
156 business or in the county where the alleged violation occurred.
157 (2) Any person who fails to comply with any provision of
158 s. 559.72 is liable for actual damages and for additional
159 statutory damages as the court may allow, but not exceeding
160 $1,000, together with court costs and reasonable attorney's fees
161 incurred by the plaintiff. In determining the defendant's
162 liability for any additional statutory damages, the court shall
163 consider the nature of the defendant's noncompliance with s.
164 559.72, the frequency and persistence of the noncompliance, and
165 the extent to which the noncompliance was intentional. In a
166 class action lawsuit brought under this section, the court may
167 award additional statutory damages of up to $1,000 for each
168 named plaintiff and an aggregate award of additional statutory
169 damages up to the lesser of $500,000 or 1 percent of the
170 defendant's net worth for all remaining class members; however,
171 the aggregate award may not provide an individual class member
172 with additional statutory damages in excess of $1,000. The court
173 may award punitive damages and may provide such equitable relief
174 as it deems necessary or proper, including enjoining the
175 defendant from further violations of this part. If the court
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176 finds that the suit fails to raise a justiciable issue of law or
177 fact, the plaintiff is liable for court costs and reasonable
178 attorney's fees incurred by the defendant.
179 Section 5. For the purpose of incorporating the amendment
180 made by this act to section 559.72, Florida Statutes, in a
181 reference thereto, paragraph (o) of subsection (1) of section
182 648.44, Florida Statutes, is reenacted to read:
183 648.44 Prohibitions; penalty.—
184 (1) A bail bond agent or bail bond agency may not:
185 (o) Attempt to collect, through threat or coercion,
186 amounts due for the payment of any indebtedness related to the
187 issuance of a bail bond in violation of s. 559.72.
188 Section 6. For the purpose of incorporating the amendment
189 made by this act to section 559.72, Florida Statutes, in a
190 reference thereto, paragraph (b) of subsection (2) of section
191 817.7001, Florida Statutes, is reenacted to read:
192 817.7001 Definitions.—As used in this part:
193 (2)
194 (b) "Credit service organization" does not include:
195 1. Any person authorized to make loans or extensions of
196 credit under the laws of this state or the United States who is
197 subject to regulation and supervision by this state or the
198 United States or a lender approved by the United States
199 Secretary of Housing and Urban Development for participation in
200 any mortgage insurance program under the National Housing Act;
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201 2. Any bank, savings bank, or savings and loan association
202 whose deposits or accounts are eligible for insurance by the
203 Federal Deposit Insurance Corporation or the Federal Savings and
204 Loan Insurance Corporation, or a subsidiary of such bank,
205 savings bank, or savings and loan association;
206 3. Any credit union, federal credit union, or out-of-state
207 credit union doing business in this state;
208 4. Any nonprofit organization exempt from taxation under
209 s. 501(c)(3) of the Internal Revenue Code;
210 5. Any person licensed as a real estate broker by this
211 state if the person is acting within the course and scope of
212 that license;
213 6. Any person collecting consumer claims pursuant to s.
214 559.72;
215 7. Any person licensed to practice law in this state if
216 the person renders services within the course and scope of his
217 or her practice as an attorney and does not engage in the credit
218 service business on a regular and continuing basis;
219 8. Any broker-dealer registered with the Securities and
220 Exchange Commission or the Commodity Futures Trading Commission
221 if the broker-dealer is acting within the course and scope of
222 that regulation; or
223 9. Any consumer reporting agency as defined in the Federal
224 Fair Credit Reporting Act, 15 U.S.C. ss. 1681-1681t.
225 Section 7. This act shall take effect upon becoming law.
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