Meeting Packet — Insurance & Banking Subcommittee, Florida House of Representatives (March 13, 2025)
Summary
Meeting packet for the Insurance & Banking Subcommittee of the Florida House of Representatives Commerce Committee, for Thursday, March 13, 2025, 1:00 PM - 4:00 PM in Morris Hall. The agenda lists CS/HB 97 on service of process in proceedings for protection of vulnerable adults, HB 319 on virtual currency kiosk businesses, CS/HB 385 on trusts, HB 839 and HB 1097. The bill analysis for CS/HB 97 states that the bill authorizes substituted service of process on an unascertainable respondent in a proceeding for an injunction against the exploitation of a vulnerable adult, with an effective date of July 1, 2025.
Summary drafted by a model from the document's text below and checked by script against that text before publication. It is a navigation aid, not a reading of what the document proves. Where AI is used
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Insurance & Banking Subcommittee
Thursday, March 13, 2025
1:00 PM - 4:00 PM
Morris Hall (17 HOB)
Meeting Packet
Daniel Perez Bradford Yeager
Speaker Chair
The Florida House of Representatives
Commerce Committee
Insurance & Banking Subcommittee
Daniel Perez Bradford Yeager
Speaker Chair
Meeting Agenda
Thursday, March 13, 2025
1:00 pm – 4:00 pm
Morris Hall (17 HOB)
I. Call to Order
II. Roll Call
III. Welcome and Opening Remarks
IV. Consideration of the following bill(s):
• CS/HB 97 Service of Process in Proceedings for Protection of Vulnerable Adults
by Civil Justice & Claims Subcommittee, Steele, Berfield
• HB 319 Virtual Currency Kiosk Businesses by Fabricio
• CS/HB 385 Trusts by Civil Justice & Claims Subcommittee, Oliver
• HB 839 Insurance Overpayment Claims Submitted to Psychologists by Booth
• HB 1097 Insurance Research by Canady
V. Closing Remarks
VI. Adjournment
214 House Office Building, 402 South Monroe Street, Tallahassee, Fl 32399-1300
(850) 717-4870
CS/HB 97
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 #: CS/HB 97 COMPANION BILL: SB 106 (Martin)
TITLE: Service of Process in Proceedings for Protection LINKED BILLS: None
of Vulnerable Adults RELATED BILLS: None
SPONSOR(S): Civil Justice Subcommittee; Steele
Committee References
Civil Justice & Claims Insurance & Banking Judiciary
18 Y, 0 N, As CS
SUMMARY
Effect of the Bill:
In an effort to enhance protections to vulnerable adults from fraudulent transfers, CS/HB 97 authorizes service of
process in a proceeding for an injunction for the protection against the exploitation of a vulnerable adult to be
made by substituted service when a respondent who is “unascertainable” has communicated with the vulnerable
adult by means that makes the respondent untraceable. The bill creates a mechanism by which a petitioner may file
a sworn affidavit with the court alleging that the respondent is an “unascertainable respondent” and providing
details on how the respondent communicated with the vulnerable adult, the facts leading the petitioner to believe a
transfer of funds is in response to a fraudulent request, and all identifying information known about the
respondent. Upon acceptance of the affidavit by the court and the issuance of a temporary injunction for the
protection of the vulnerable adult, the petitioner must “serve” the unascertainable respondent with notice of the
injunction using the same manner of communication that the respondent used to contact the vulnerable adult. The
petitioner must provide proof of such substituted service, including screenshots, to the court.
Under the bill, a plaintiff may use substituted service to serve an unascertainable respondent in a case involving the
exploitation of a vulnerable adult. Upon order by the court to return funds to the vulnerable adult, a 30-day freeze
on any proposed transfer of funds or property is initiated. The bill has an effective date of July 1, 2025.
Fiscal or Economic Impact:
The bill may have an indeterminate insignificant fiscal impact on state government and may have a positive fiscal
impact on the private sector.
JUMP TO SUMMARY ANALYSIS RELEVANT INFORMATION BILL HISTORY
ANALYSIS
EFFECT OF THE BILL:
CS/HB 97 amends s. 825.1035, F.S., to provide for substituted service of process on an unascertainable respondent
in a case involving an injunction for protection against the exploitation of a vulnerable adult.1 The bill works in
conjunction with existing law and fraud detection services within financial institutions to provide enhanced
protection to vulnerable adults. The bill defines an “unascertainable respondent” as a person whose identity
cannot be ascertained or whose identity is unknown, and who has communicated with the vulnerable adult
through any means that make tracing the person’s identity impractical. (Section 1).
To be able to use substituted service against such an unascertainable respondent, the petitioner must file a sworn
affidavit with the court. The affidavit must include:
1 A “vulnerable adult” means a person 18 years of age or older whose ability to perform the normal activities of daily living or ability to
provide for his or her own care or protection is impaired due to a mental, emotional, sensory, long-term physical, or developmental
disability or dysfunction, or brain damage, or the infirmities of aging. See s. 825.101(16), F.S.; s. 415.102(28), F.S. For the purposes of the
injunction process under s. 825.1035, F.S., the term “vulnerable adult” also includes any person age 65 or older, regardless of infirmity.
STORAGE NAME: h0097b.IBS
DATE: 3/12/2025
1
The facts leading the petitioner to believe that the respondent qualifies as an “unascertainable respondent”;
Information regarding how the vulnerable adult and the respondent have been in contact;
All identifying information for the unascertainable respondent known to the petitioner or the vulnerable
adult;2
The facts leading the petitioner to believe that a proposed or initiated transfer of funds or property by the
vulnerable adult is a response to a fraudulent request by the unascertainable respondent; and
A description of the petitioner’s attempts to identify the unascertainable respondent, including, but not
limited to, attempts to contact the respondent through the same method of communication the respondent
used to communicate with the vulnerable adult. (Section 1).
Upon the filing of the sworn affidavit, the court must enter an order requiring the petitioner to serve the
unascertainable respondent through the same means of communication that the respondent used to contact the
vulnerable adult. Such attempt to serve the unascertainable respondent must be done within two business days
after the date the court issued the temporary injunction order. Once the court has issued a temporary injunction or
set the matter for a final hearing, the petitioner must “serve” the unascertainable respondent with notice of the
injunction. For substitute service to be effectuated, the petitioner must file proof with the court that he or she has
attempted to serve the unascertainable respondent through the same means of communication that the
unascertainable respondent used to contact the vulnerable adult. Such proof includes, but is not limited to, a sworn
affidavit with screenshots of the attempted service and communication to the unascertainable respondent. (Section
1).
Once substituted service has been properly effectuated, the court may enjoin the transfer of any funds or property
in dispute. If a legitimate respondent appears before the court, the court may dissolve the injunction and allow the
proposed transfer of funds or property to proceed or may enter an order requiring the funds or property to be
returned to the vulnerable adult. Upon such order by the court, the funds or property in question must be held for
30 days before it may be distributed back to the vulnerable adult or his or her guardian. As such, the ability to use
substituted service to serve an unascertainable respondent provides potentially exploited vulnerable adults a legal
avenue by which to proceed to attempt to retrieve the funds or property that was fraudulently taken from them.
(Section 1).
The bill specifies that s. 825.1035(8), F.S., shall be construed for the benefit and protection of a vulnerable adult.
(Section 1).
The bill has an effective date of July 1, 2025. (Section 2).
FISCAL OR ECONOMIC IMPACT:
STATE GOVERNMENT:
The bill may have an indeterminate insignificant fiscal impact on state government by increasing court filings due
to the ability to effectuate service on previously untraceable respondents.
PRIVATE SECTOR:
The bill may simplify the process for effectuating service on an unascertainable respondent, providing an
opportunity for an injunction to be issued to protect certain assets or property from being transferred to a
fraudulent respondent.
RELEVANT INFORMATION
SUBJECT OVERVIEW:
Service of Process
2 All information known to the petitioner or the vulnerable adults includes, but is not limited to, pseudonyms, tax identification numbers, e-
mail addresses, telephone or cellular numbers, software application programs used, social media usernames and handles, or other similar
information.
JUMP TO SUMMARY ANALYSIS RELEVANT INFORMATION BILL HISTORY
2
“Process” is used by a court or administrative body to acquire or exercise jurisdiction over a person or property.3
There are three primary types of process: original, mesne, and final process. Original process includes an original
writ or summons issued by the court as the first step in a lawsuit and includes a notice to the party being served
regarding the time and date to appear before the court. Mesne process is an intermediate process issued between
the original process and the final judgment. Final process is a writ of execution pursuant to a final judgment issued
in the subject legal proceeding.
Generally, service of process is made by:
Delivering a copy of the process to the person to be served; or
Leaving the process at the person’s usual place of abode4 with any person residing there who is fifteen
years of age or older and informing that person of the contents of the process.5
Service of Process on Business Entities
Chapter 48 of the Florida Statutes prescribes how service of process must be made on a variety of business entities
such as partnerships, corporations, limited liability companies, and limited partnerships. For example, for service
on a partnership, process must be served on any partner of the partnership and is valid as service on the
partnership as if it was actually served on each partner.6 If a partner is not available, he or she may designate any
employee or agent to accept service. If, after one attempt to serve a partner or his or her designated employee or
agent, such service is not achieved, service may be made on a person in charge of the partnership during regular
business hours. For service on a corporation, process must be served on the designated registered agent. Section
48.061, F.S., provides a detailed hierarchical chain of acceptable contacts upon which service may be made if the
previous contact in the hierarchy is unavailable or unable to be served.
Substituted Service
The Florida Secretary of State, as head of the Florida Department of State, is involved in many aspects of service of
process. In some scenarios involving nonresident business entities, Florida law allows service of process through
substituted service on the Florida Secretary of State when a party is unable to personally serve the individual or
the business entity’s representative.7
Substituted service on the Secretary of State is effectuated by electronic or physical delivery addressed to the
Secretary of State. A copy of the process must be sent to the individual or entity at the last known address by
certified or registered mail, by use of a commercial firm regularly engaged in the business of document or package
delivery, or by electronic transmission.8 Court decisions interpreting the statute requires that a party using
substituted service on the Secretary of State make an honest and conscientious effort, in addition to the mailing, to
provide the defendant with actual notice of the lawsuit,9 which may be noticed through a known email.10
Exploitation of a Vulnerable Adult
Section 825.103, F.S., prohibits specified exploitation of elderly persons or disabled adults and provides criminal
penalties for a violation. Under s. 825.101(4), F.S., an elderly person is defined as a person 60 years of age or older
who is suffering from the infirmities of aging as manifested by advanced age or organic brain damage, or other
physical, mental, or emotional dysfunction, to the extent that the ability of the person to provide adequately for the
person’s own care or protection is impaired. A disabled adult is defined as a person 18 years of age or older who
3 Black’s Law Dictionary 837 (6th ed. 1995).
4 “Usual place of abode” means the place where the party actually lives at the time of service of process. Shurman v. Atlantic Mortg. & Inv.
Corp., 795 So. 2d 952 (Fla. 2001).
5 S. 48.031(1)(a), F.S.
6 S. 48.061(1), F.S.
7 S. 48.161, F.S.; s. 48.181, F.S.
8 S. 48.161, F.S.
9 All Mobile Video v. Whitener, 773 So. 2d 587, 589-90 (Fla. 1st DCA 2000) (plaintiff knew telephone and fax number of defendant company
but did not call or fax for new address when mailed copy of process was returned).
10 Crystal Springs Partners, Ltd. v. Michael R. Band, P.A., 132 So. 3d 1230 (Fla 3rd DCA 2014) (law firm plaintiff knew former client’s email
address and should have emailed copy of process in addition to mailing).
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3
suffers from a condition of physical or mental incapacitation due to a developmental disability, organic brain
damage, or mental illness, or who has one or more physical or mental limitations that restrict the person’s ability
to perform the normal activities of daily living.11
Under s. 825.103, F.S., exploitation of an elderly person or disabled adult (“EPDA”) is a crime that means:
Knowingly obtaining or using, or endeavoring to obtain or use, an EPDA’s funds, assets, or property with
the intent to temporarily or permanently deprive the EPDA of the use, benefit, or possession of the funds,
assets, or property, or to benefit someone other than the EPDA, by a person who:
o Stands in a position of trust and confidence with the EPDA; or
o Has a business relationship with the EPDA.12
Obtaining or using, or endeavoring to obtain or use, or conspiring with another to obtain or use an
EPDA’s funds, assets, or property with the intent to temporarily or permanently deprive the EPDA of the
use, benefit, or possession of the funds, assets, or property, or to benefit someone other than the EPDA,
by a person who knows or reasonably should know that the EPDA lacks the capacity13 to consent.14
Breach of a fiduciary duty to an EPDA by the person’s guardian, trustee, or agent under a power of
attorney which results in an unauthorized appropriation, sale, transfer of property, kickback,15 or receipt
of an improper benefit.16 An unauthorized appropriation occurs when the EPDA does not receive the
reasonably equivalent financial value in goods or services, or when the fiduciary violates a specified
duty.17
Misappropriating, misusing, or transferring without authorization money belonging to an EPDA from an
account18 in which the EPDA placed the funds, owned the funds, and was the sole contributor or payee of
the funds before the misappropriation, misuse, or unauthorized transfer.19
Intentionally or negligently failing to effectively use an EPDA’s income and assets for the necessities
required for that person’s support and maintenance, by a caregiver or a person who stands in a position
of trust and confidence with the EPDA.20
Knowingly obtaining or using, endeavoring to obtain or use, or conspiring with another to obtain or use
an EPDA’s funds, assets, property, or estate through intentional modification, alteration, or fraudulent
creation of a plan of distribution or disbursement expressed in a will, trust agreement, or other
testamentary devise of the EPDA without:
o A court order which authorizes the modification or alteration;
o A written instrument executed by the EPDA, sworn to and witnessed by two persons who would
be competent as witnesses to a will, which authorizes the modification or alteration; or
o Action of an agent under a valid power of attorney which authorizes the modification or
alteration.21
Fraud Detection Services
Financial institutions such as banks employ software, programming, and security measures to detect fraudulent
activity within their accounts. A bank may flag a transaction for potential fraud based on geolocation information,
11 S. 825.101(3), F.S.
12 S. 825.103(1)(a), F.S.
13 “Lacks capacity to consent” means an impairment by reason of mental illness, developmental disability, organic brain disorder, physical
illness or disability, chronic use of drugs, chronic intoxication, short-term memory loss, or other cause, that causes an elderly person or
disabled adult to lack sufficient understanding or capacity to make or communicate reasonable decisions concerning the elderly person’s or
disabled adult’s person or property. S. 825.101(10), F.S.
14 S. 825.103(1)(b), F.S.
15 “Kickback” means a remuneration or payment, by or on behalf of a provider of health care services or items, to any person as an incentive
or inducement to refer patients for past or future services or items, when the payment is not tax deductible as an ordinary and necessary
expense. S. 456.054(1), F.S.
16 “Improper benefit” means any remuneration or payment, by or on behalf of any service provider or merchant of goods, to any person as an
incentive or inducement to refer customers or patrons for past or future services or goods. S. 825.101(8), F.S.
17 S. 825.103(1)(c), F.S.
18 This type of exploitation only applies to the following types of accounts: personal accounts; joint accounts created with the intent that only
the elderly person or disabled adult enjoys all rights, interests, and claims to monies deposited into such account; or convenience accounts
created in accordance with s. 655.80, F.S. S. 825.103(d)(1.-3.), F.S.
19 S. 825.103(1)(d), F.S.
20 S. 825.103(1)(e), F.S.
21 S. 825.103(1)(f), F.S.
JUMP TO SUMMARY ANALYSIS RELEVANT INFORMATION BILL HISTORY
4
pattern recognition, behavioral analysis, machine learning and artificial intelligence, data analytics, real-time
monitoring, and more.22 When a bank is alerted to possible fraudulent activity or a fraudulent transfer it often
pauses the transaction and alerts the account holder of suspected fraud. The account holder, generally, can
approve the transaction as legitimate or contest it as fraudulent, preventing the assets from being transferred.
The injunction process provided in s. 825.1035, F.S., may come into play once an account holder has been made
aware that fraudulent activity has been detected. In the situation of a vulnerable adult who has been notified that
potentially fraudulent activity has occurred, the vulnerable adult or certain persons acting on his or her behalf,
may file in injunction with the court to request the court freeze the fraudulent transaction of assets or property.23
With the increased use of technology in every facet of daily life, fraudulent scams that target elderly and vulnerable
individuals are a common concern. Some common fraudulent scams targeting these populations include:
Government impersonation scams, in which scammers call unsuspecting older adults and pretend to be
from the Internal Revenue Service, Social Security Administration, or Medicare. They may say the older
adult has unpaid taxes and threaten arrest if they do not pay immediately. Alternatively, the scammers may
say Social Security or Medicare benefits will be cut off if the older adult does not provide personal
identifying information, which can later be used to commit identity theft.24
Sweepstakes scams, in which scammers call an older adult to say he or she has won a lottery or prize of
some kind. If the older adult wants to claim his or her winnings, the older adult must send money, cash, or
gift cards to cover supposed taxes and processing fees, or the older adult must send his or her bank account
information to receive the alleged winnings.25
Computer tech support scams, which prey on older people’s lack of knowledge about computers and
cybersecurity. A pop-up message or blank screen usually appears on a computer or phone, telling the user
his or her device is damaged and needs fixing. When the older person calls the support number for help, the
scammer may either request remote access to the older person’s computer and/or demand he or she pay a
fee to have it repaired.26
“Grandparent” scams, in which a scammer calls a would-be grandparent and says something along the lines
of: “Hi, Grandma, do you know who this is?” When the unaware grandparent guesses the name of the
grandchild the scammer most sounds like, the scammer is able to instantly secure the older person’s trust.
The fake grandchild then asks for money to solve some urgent financial problem (such as overdue rent, car
repairs, or jail bond).27
In 2023, the FBI received over 101,068 complaints of fraud reported by adults over the age of 60 resulting in a total
loss of $3,427,717,654. The average financial loss in 2023 per complaint was $33,915.28
Injunction for Protection of a Vulnerable Adult
Temporary Ex-Parte Injunction
Under s. 825.1035, F.S., a vulnerable adult in imminent danger of being exploited may file a petition29 for an
injunction for protection against exploitation. There is no requirement for any exploitation to have already
occurred before the vulnerable adult may petition for an injunction.30 A court may grant a temporary injunction ex
22 See https://www.transunion.com/business-needs/fraud-prevention/banking-fraud-
detection#:~:text=Banks%20use%20geolocation%20data%20from,may%20be%20flagged%20for%20review (last visited on Feb. 5, 2025).
23 S. 825.1035(2), F.S.
24 National Council on Aging, Get the Facts on Elder Abuse, https://www.ncoa.org/article/get-the-facts-on-elder-abuse (last visited Feb. 5,
2025).
25 Id.
26 Id.
27 Id.
28 Federal Bureau of Investigation Internet Crime Complaint Center, 2023 Elder Fraud Report,
https://www.ic3.gov/AnnualReport/Reports/2023_IC3ElderFraudReport.pdf (last visited Feb. 5, 2025).
29 Additionally, the guardian of a vulnerable adult, a person or organization acting on behalf of and with the consent of the vulnerable adult
or his or her guardian, an agent acting under power of attorney, or a person simultaneously filing a petition for determination of incapacity
and appointment of an emergency temporary guardian with respect to the vulnerable adult may file a petition for injunction for protection
from exploitation. See s. 825.1035(2)(a), F.S.
30 S. 825.1035(2)(e), F.S.
JUMP TO SUMMARY ANALYSIS RELEVANT INFORMATION BILL HISTORY
5
parte, pending a full hearing on the petition, upon making specified findings including that an immediate and
present danger of exploitation of the vulnerable adult exists.31 A temporary ex parte injunction may be effective for
up to 15 days, unless good cause is shown to extend the injunction, in which case, the temporary injunction may be
extended one time for an additional 30 days. Such a temporary injunction may:
Prohibit the respondent from having any direct or indirect contact with the vulnerable adult;
Restrain the respondent from committing any acts of exploitation against the vulnerable adult;32
Freeze the assets or credit lines of the vulnerable adult;
Award the temporary exclusive use and possession of the dwelling that the vulnerable adult and the
respondent share to the vulnerable adult, or bar the respondent from the vulnerable adult’s residence; and
Include other allowable terms the court deems necessary to protect the vulnerable adult or his or her
assets, including orders and directives to law enforcement agencies and other entities.33
In determining whether reasonable cause exists to believe that the vulnerable adult is, or is in imminent danger of
becoming, a victim of exploitation, the court must consider the following factors:
The existence of a verifiable order of protection issued previously or from another jurisdiction.
Any history of exploitation by the respondent upon the vulnerable adult in the petition or any other
vulnerable adult.
Any history of the vulnerable adult being previously exploited or unduly influenced.
The capacity of the vulnerable adult to make decisions related to his or her finances and property.
Susceptibility of the vulnerable adult to undue influence.
Any criminal history of the respondent or previous probable cause findings by the adult protective services
program, if known.34
A court may grant a temporary injunction in the ex parte proceeding if it finds that:35
An immediate and present danger of exploitation of the vulnerable adult exists.
There is a likelihood of irreparable harm and non-availability of an adequate remedy at law.
There is a substantial likelihood of success on the merits.
The threatened injury to the vulnerable adult outweighs possible harm to the respondent.
Granting the injunction will not disserve the public interest.
Such injunction provides for the vulnerable adult’s physical or financial safety.36
Permanent Injunction and Relief
After a final hearing, a court may grant any additional relief the court deems appropriate, including:
Ordering the respondent to participate in treatment, intervention, or counseling services to be paid for by
the respondent;
Directing the vulnerable adult’s frozen assets to be returned to the vulnerable adult or the credit line to be
unfrozen;
Entering a final cost judgment against the respondent and in favor of the petitioner for all taxable costs and
entering a final cost judgment against the respondent and in favor of the clerk of the circuit court for all the
clerk’s filing fees and service charges that were waived; and
Ordering other relief as necessary to protect the victim.
Who Can Be a Petitioner?
Pursuant to s. 825.1035(2), F.S., a cause of action for an injunction for the protection of a vulnerable adult may be
brought by:
31 S. 825.1035(5)(a)1., F.S.
32 The terms of an injunction restraining the respondent remain in effect until the injunction is modified or dissolved. S. 825.1035(8)(c), F.S.
33 See ss. 825.1035(3)(a)22., F.S., 825.1035(5)(a)2., F.S., and 825.1035(8)(a)2., F.S.
34 S. 825.1035(6), F.S.
35 The findings required for a temporary injunction and continuing an injunction after a full hearing on the petition are the same with the
exception of probable cause findings that exploitation occurred if the temporary injunction froze the vulnerable adult’s assets. See s.
825.1035(5)(a)1., F.S., and s. 825.1035(8)(a)1., F.S.
36 S. 825.1035(5)(a)1., F.S.
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6
A vulnerable adult in imminent danger of being exploited;
The guardian of a vulnerable adult in imminent danger of being exploited;
A person or organization acting on behalf of the vulnerable adult with the consent of the vulnerable adult
or of his or her guardian;
An agent under a valid durable power of attorney with the authority specifically granted in the power of
attorney; or
A person who simultaneously files a petition for determination of incapacity and appointment of an
emergency temporary guardian with respect to the vulnerable adult.
RECENT LEGISLATION:
YEAR BILL # HOUSE SPONSOR(S) SENATE SPONSOR OTHER INFORMATION
2024 CS/CS/HB 515 Silvers, Beltran Rouson The bill became law on
January 1, 2025.
2023 CS/HB 603 LaMarca Garcia The bill became law on
October 1, 2023.
OTHER RESOURCES:
U.S. Department of Justice, Elder Justice Initiative: Financial Exploitation
Consumer Financial Protection Bureau: Reporting Elder Financial Abuse
National Elder Fraud Hotline: General Information About Financial Scams and Abuse Targeting Older People
National Council on Aging: Get the Facts on Elder Abuse
FBI Internet Crime Complaint Center: 2023 Elder Crime Report
BILL HISTORY
STAFF
DIRECTOR/ ANALYSIS
COMMITTEE REFERENCE ACTION DATE POLICY CHIEF PREPARED BY
Civil Justice & Claims 18 Y, 0 N, As CS 3/5/2025 Jones Mathews
Subcommittee
THE CHANGES ADOPTED BY THE The amendment clarified that service on an unascertainable respondent may
COMMITTEE: be used as outlined by the bill after the court has entered a temporary
injunction for the protection of a vulnerable adult or, alternatively, sets the
matter for a final hearing. Further, the amendment clarified that the 30-day
hold of any proposed transfer of funds or property begins to run on the date
the final order is entered.
Insurance & Banking Lloyd Herrera
Subcommittee
Judiciary Committee
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THIS BILL ANALYSIS HAS BEEN UPDATED TO INCORPORATE ALL OF THE CHANGES DESCRIBED ABOVE.
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F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
CS/HB 97 2025
1 A bill to be entitled
2 An act relating to service of process in proceedings
3 for protection of vulnerable adults; amending s.
4 825.1035, F.S.; authorizing the use of substitute
5 service on unascertainable respondents; defining the
6 term "unascertainable respondent"; requiring a
7 petitioner to file with the court a sworn affidavit to
8 effectuate substitute service; providing requirements
9 for the affidavit; requiring the court to enter an
10 order providing for specified service when a
11 petitioner files the sworn affidavit; requiring the
12 petitioner to file with the court proof that the
13 petitioner attempted to serve the unascertainable
14 respondent; requiring that any proposed transfer of
15 funds or property in dispute be held for a specified
16 time period after the entry of a final order of
17 injunction; providing construction; providing an
18 effective date.
19
20 Be It Enacted by the Legislature of the State of Florida:
21
22 Section 1. Subsections (8) through (14) of section
23 825.1035, Florida Statutes, are renumbered as subsections (9)
24 through (15), respectively, subsection (7) is amended, and a new
25 subsection (8) is added to that section, to read:
Page 1 of 4
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hb97-01-c1
F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
CS/HB 97 2025
26 825.1035 Injunction for protection against exploitation of
27 a vulnerable adult.—
28 (7) NOTICE OF PETITION AND INJUNCTION.—
29 (a) Except as provided in subsection (8), the respondent
30 must shall be personally served, pursuant to chapter 48, with a
31 copy of the petition, notice of hearing, and temporary
32 injunction, if any, before the final hearing.
33 (b) If the petitioner is acting in a representative
34 capacity, the vulnerable adult must shall also be served with a
35 copy of the petition, notice of hearing, and temporary
36 injunction, if any, before the final hearing.
37 (c) If any assets or lines of credit are ordered to be
38 frozen, the depository or financial institution must be served
39 as provided in s. 655.0201.
40 (8) SUBSTITUTE SERVICE ON UNASCERTAINABLE RESPONDENT.—
41 (a) In lieu of service pursuant to chapter 48 as required
42 pursuant to subsection (7), substitute service in accordance
43 with this subsection may be made on an unascertainable
44 respondent. As used in this subsection, the term
45 "unascertainable respondent" means a person whose identity
46 cannot be ascertained or whose identity is unknown, and who has
47 communicated with the vulnerable adult through any means that
48 make tracing the person's identity impractical.
49 (b) To effectuate substitute service pursuant to this
50 subsection, a petitioner must file with the court a sworn
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51 affidavit based on the petitioner's information and belief. The
52 affidavit must include:
53 1. The facts leading the petitioner to believe that the
54 respondent is an unascertainable respondent;
55 2. Information regarding how the unascertainable
56 respondent and the vulnerable adult have been in contact;
57 3. All identifying information for the unascertainable
58 respondent which is known to the petitioner or the vulnerable
59 adult, including, but not limited to, pseudonyms, tax
60 identification numbers, e-mail addresses, telephone or cellular
61 numbers, software application programs used, social media
62 usernames and handles, or other similar information;
63 4. The facts leading the petitioner to believe that a
64 proposed or initiated transfer of funds or property by the
65 vulnerable adult is a response to a fraudulent request by the
66 unascertainable respondent; and
67 5. A description of the petitioner's attempts to identify
68 the unascertainable respondent, including, but not limited to,
69 using the same method of communication that the unascertainable
70 respondent used to communicate with the vulnerable adult.
71 (c) When a petitioner files the sworn affidavit required
72 under paragraph (b), the court must enter an order requiring the
73 petitioner to serve the unascertainable respondent, through the
74 same means of communication that the unascertainable respondent
75 used to communicate with the vulnerable adult, within 2 business
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76 days after the date the court issues the temporary injunction
77 order or sets a final hearing.
78 (d) The petitioner must file with the court proof,
79 including, but not limited to, a sworn affidavit with
80 screenshots, that the petitioner has attempted to serve the
81 unascertainable respondent in accordance with paragraph (c).
82 This constitutes substitute service on the unascertainable
83 respondent.
84 (e) In accordance with a written final order of
85 injunction, when using substitute service as provided in this
86 subsection, any proposed transfer of funds or property in
87 dispute must be held for 30 days, beginning on the date the
88 final order of injunction was issued, before such funds or
89 property may be distributed for the benefit of the vulnerable
90 adult.
91 (f) This subsection shall be construed for the benefit and
92 protection of a vulnerable adult.
93 Section 2. This act shall take effect July 1, 2025.
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HB 319
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 319 COMPANION BILL: None
TITLE: Virtual Currency Kiosk Businesses LINKED BILLS: None
SPONSOR(S): Fabricio RELATED BILLS: SB 292 (Burton)
Committee References
Insurance & Banking Commerce
SUMMARY
Effect of the Bill:
The bill establishes a regulatory framework for virtual currency kiosk businesses, and provides protections for
users of the kiosks by requiring such businesses to register with the Office of Financial Regulation (OFR), requiring
certain disclosures, restricting the name under which such business may transact, and providing penalties for
specified violations. The legislative intent of the bill is to reduce unlawful and fraudulent activities. The bill
provides the OFR is responsible for supervising virtual currency kiosk businesses, and authorizes the Financial
Services Commission (Commission) to adopt rules to regulate them.
Fiscal or Economic Impact:
The bill has an indeterminate impact on the private sector and a minimal impact on the state government.
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ANALYSIS
EFFECT OF THE BILL:
The bill provides for OFR regulation of virtual currency kiosk businesses. (Section 2).
Definitions
The bill creates definitions for the following terms, as used in Chapter 560, F.S., Money Services Businesses:
"Virtual currency kiosk" means an electronic terminal that acts as a mechanical agent of the owner-
operator, enabling the owner-operator to facilitate the exchange of virtual currency for fiat currency or
other virtual currency for a customer.
"Owner-operator" means a registrant or a licensed money services business.
"Virtual currency kiosk business" or "registrant" means a corporation, limited liability company, limited
liability partnership, or foreign entity qualified to do business in this state which operates a virtual
currency kiosk and which is not a money transmitter as defined in this section.
"Virtual currency kiosk transaction" means the process in which a customer uses a virtual currency kiosk
to exchange virtual currency for fiat currency or other virtual currency. A transaction begins at the point at
which the customer is able to initiate a transaction after the customer is given the option to select the type
of transaction or account, and does not include any of the screens that display the required terms and
conditions, disclaimers, or attestations.
"Blockchain analytics" means the process of examining, monitoring, and gathering insights from the data
and transaction patterns on a blockchain network. The primary aims of blockchain analytics are to
understand and monitor the network's health, track transaction flows, and identify potential security
threats, including illicit activity, in order to extract actionable insights.
"Wallet" means hardware or software that enables customers to store and use virtual currency.
STORAGE NAME: h0319.IBS
DATE: 3/12/2025
1
The bill expands the current definition of “control person” to include virtual currency businesses instead of only
money services businesses. (Section 1).
Registration Requirement
The bill prohibits a virtual currency kiosk (VCK) business from operating in Florida without first registering, or
renewing its registration, with the OFR. A money transmitter licensed as a money services business (MSB) is
exempt from registering as a VCK business. An entity that acts as an intermediary in specified circumstances and or
otherwise meets the definition of a money transmitter must be licensed as a money services business. For an
applicant to register a VCK business, the applicant must submit specified information relating to the proposed
applicant and business, attest to specified information relating to blockchain analytics, and within a specified time,
any supplemental information required by the OFR. A VCK business operating in Florida on or before January 1,
2026, must submit a registration application to the OFR within 30 days after that date. The bill requires the
registrant to report on a form created by the Commission any information contained in an initial application form
or an amendment thereto within 30 days after the change is effective. (Section 6).
The bill provides that registration for any VCK business is not transferable or assignable. (Section 5).
Renewal of Registration
The bill directs registrants to renew their registration annually on or before December 31st of the year preceding
the expiration date of the registration, and the registrant must submit a renewal application that contains specific
information. The bill provides specific instructions on the manner in which a registrant renews an inactive
registration, and that failure to renew an inactive registration would result in the registration becoming null and
void. If the registration is null and void, the VCK business must submit a new application and a certification of
registration must be issued by OFC before the VCK business may conduct business in Florida. (Section 6).
Mandatory Denial of Application
The bill mandates that OFR deny an initial registration application if a control person of a registrant or prospective
registrant has engaged in any unlawful business practice, or been convicted or found guilty of, or pled guilty or
nolo contendere to, regardless of adjudication, a crime involving dishonest dealing, fraud, acts of moral turpitude,
or other acts that reflect an inability to engage lawfully in the business of a registered VCK business.
The bill requires OFR to deny a renewal application if the registrant fails to provide certain evidence of compliance
with disclosure requirements and the conduct of business upon request of OFR.
The bill provides that any false statements made by a VCK business with respect to the name of the name of the
business or its business address or location in any application for registration renders the registration void.
(Section 6).
Disclosures, Attestations, and Confirmations
The bill requires that owner-operators must:
Display a disclosure warning to consumers about potential dishonest schemes and requiring the customer
to acknowledge that they have read the disclosure.
Display a disclosure that funds lost due to user error or fraud may not be recoverable.
Confirm whether the customer is using the kiosk to send virtual currency to a wallet owned by someone
else and, if so, terminate the transaction unless the owner-operator is a licensed money transmitter.
Display a disclosure of a toll-free telephone number the kiosk user may call to learn about the risks of the
transaction; and
Require an attestation to specified information, without which the transaction must be terminated. (Section
7).
Conduct of Business
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An owner-operator may transact business only under the legal name by which it is registered, except under
specified circumstances. An owner-operator must maintain clearly documented policies, processes, and
procedures regarding how blockchain analytics activity integrates into their compliance controls, and must apply
such blockchain analytics to prevent transfers to wallet addresses linked to known criminal activity. (Section 8).
Penalties
The bill provides that the following constitute third-degree felonies:
Operating or soliciting business as a VCK business without the proper registration unless the business is
licensed as an MSB.
A person who registers or attempts to register as a virtual currency kiosk business by means of fraud,
misrepresentation, or concealment.
Failure to comply with the required disclosures, attestations, and confirmations for a VCK.
The bill provides that the following constitute second-degree misdemeanors:
Operating under any name other than that designated in the registration (unless written notification is
given to the OFR),
Assigning or attempting to assign a registration, and
Operating a VCK without using the required blockchain analytics.
The bill allows a court to invalidate a VCK registration that has failed to comply with the required disclosures,
attestations, and confirmations, or has committed one of the crimes provided for by the bill.1 (Section 9).
Collection of Fees
The bill does not provide authorization for the collection of fees for initial registration applications, the renewal of
registrations, or the reactivation of inactive registrations.2 (Section 6).
Legislative Intent
The legislative intent of the bill is to reduce unlawful and fraudulent activities by requiring VCK businesses to
register with the state and by requiring such businesses and money transmitter licensees to regularly and
consistently disclose to all customers of VCK certain specified risks relating to VCK transactions. (Section 4).
FISCAL OR ECONOMIC IMPACT:
STATE GOVERNMENT:
The OFR states that there is “no incoming revenue as there are no registration fees included in the bill.”3 OFR has
funding in the current budget to comply with the promulgation of new rules and implementing changes to the
OFR’s technology systems. 4
PRIVATE SECTOR:
There is an indeterminate impact on the private sector. This bill may reduce the financial losses associated with
VCK scams. However, VCK businesses may incur additional expenditures to comply with the bill provisions.
1 Criminal courts do not have jurisdiction to enforce administrative penalties such as invalidating a registration. See also,
Florida Office of Financial Regulation, Agency Analysis of 2025 House Bill 319, p. 5 (Mar. 7, 2025).
2 Florida Office of Financial Regulation, Agency Analysis of 2025 House Bill 319, p. 5 (Mar. 7, 2025).
3 Id., at 4.
4 Id., at 5.
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3
RELEVANT INFORMATION
SUBJECT OVERVIEW:
Virtual Currency
Virtual currency is a digital representation of value that functions as a medium of exchange, a unit of account,
and/or a store of value.5 In some environments, it operates like “real” currency6 (i.e., the coin and paper money of
the United States or of any other country that is designated as legal tender, circulates, and is customarily used and
accepted as a medium of exchange in the country of issuance).7 Virtual currency that has an equivalent value in real
currency, or that acts as a substitute for real currency, is referred to as “convertible” virtual currency.8 Bitcoin is
one example of a convertible virtual currency, as it can be digitally traded between users and can be purchased for,
or exchanged into, U.S. dollars, Euros, and other real or virtual currencies.9
Virtual currencies generally consist of computers operating the network software (nodes) that enable, validate,
and store transaction records on a distributed digital ledger (a blockchain).10 To transfer an asset on a blockchain,
a person enters an alphanumeric code known only to the transferor (a private key) into a cryptographic hash
function enabled by the network software, which allows the transferor to request that the network software
validate a new entry on the ledger showing that control of an asset has been assigned to the recipient.11 Once the
network software has validated this transfer, the ledger is altered and the recipient may transfer the asset to
another recipient using their own private key.12 Ledger entries are cryptographically secured, and accounts are
identified on a blockchain by alphanumeric ‘‘public keys’’—not by the owner’s name.13
Some persons use the services of a third-party to acquire or transact in virtual currency.14 For example, certain
third-parties provide custody services for their customers’ virtual currency in so called ‘‘hosted wallets.’’ 15 In such
arrangements, the third-party wallet host may execute transactions on a blockchain on behalf of a customer using a
private key controlled by the third-party wallet host.16 Other persons do not use the services of such a third-party,
in which case they use the private key controlling their virtual currency to transact directly on a blockchain.17 Such
persons may store the private key in a software program or written record, often referred to as an ‘‘unhosted
wallet.’’18
Virtual currency networks present opportunities as well as risks.19 The G7 Finance Ministers and Central Bank
Governors recently noted that ‘‘[t]he widespread adoption of digital payments . . . has the potential to address
frictions in existing payment systems by improving access to financial services, reducing inefficiencies, and
5 IRS, Virtual Currencies: What is virtual currency?, https://www.irs.gov/filing/digital-assets (last visited Mar. 12, 2025).
6 Often referred to as “fiat” currency.
7 IRS, supra note 5.
8 Id.
9 Id.
10 FinCEN, Notice of Proposed Rulemaking: Requirements for Certain Transactions Involving Convertible Virtual Currency or
Digital Assets, https://www.govinfo.gov/content/pkg/FR-2020-12-23/pdf/2020-28437.pdf (last visited Mar. 7, 2025).
11 Id.
12 Id.
13 Id.
14 Id.
15 Id.
16 Id.
17 Id.
18 Id.
19 Id.
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4
lowering costs.’’20 At the same time, however, virtual currencies are used in illicit financial activity that presents
substantial national security concerns.21
Virtual Currency pKiosks
A virtual currency kiosk (VCK), also known as a cryptocurrency kiosk, is a physical machine that enables customers
to exchange virtual currencies for fiat currency or other virtual currencies.22 As of 2022, there were over
30,000 virtual currency kiosks in the United States.23 Consumers are typically charged fees between nine percent
and 12 percent of the value of the transaction but such fees may range from four percent to greater than 20 percent
of the value of a transaction.24
A VCK business may be unidirectional, only allowing the sale of virtual currency, or bidirectional, allowing for both
the sale and purchase of virtual currency.25 To purchase virtual currency from a kiosk, a consumer may store the
purchased virtual currency in their own wallet or send the currency to a third party’s wallet if the purchaser has a
quick response (QR) code to that person’s wallet.26 To sell virtual currency from a kiosk, a user deposits virtual
currency into the machine’s wallet, which is usually done by use of a QR code displayed on the kiosk’s screen, and
the kiosk dispenses cash when the transaction is completed.27
State Regulation
The Office of Financial Regulation (OFR) regulates banks, credit unions, other financial institutions, finance
companies, and the securities industry.28 The Division of Consumer Finance within OFR licenses and regulates
various aspects of the non-depository financial services industries, including MSBs regulated under ch. 560, F.S. A
money services business is, “any person located in or doing business in this state, from this state, or into this state
from locations outside this state or country who acts as a payment instrument seller, foreign currency exchanger,
check casher, or money transmitter.”29 Money transmitters may include virtual currency kiosks. However, virtual
currency kiosks do not have to be licensed if they only provide peer to peer transactions.30 Virtual currency kiosks
do not currently have to be registered.31
OFR can conduct examinations and investigations to determine whether a person has violated the MSB
provisions.32
Since January 2020, scammers have stolen over $21 million from Floridians using virtual currency kiosks. 33
Federal Regulation
Financial Crimes Enforcement Network (“FinCEN”), a bureau of the United States Department of Treasury34 is
responsible for safeguarding the financial system from illegal use, combatting money laundering and related
20 Id. (citing the G7 Finance Ministers and Central Bank Governors’ Statement on Digital Payments on Oct. 13, 2020).
21 FinCEN Notice of Proposed Rulemaking, supra note 6.
22 National Association of Attorneys General, Your Bitcoin on Every Block: An Introduction to Cryptocurrency Kiosks,
May 4, 2022, https://www.naag.org/attorney-general-journal/your-bitcoin-on-every-block-an-introduction-to-cryptocurrency-
kiosks/ (last visited Mar. 7, 2025).
23 McDonnell, S., United States: US GAO Urges New Virtual Currency Regulations to Counter Human Trafficking and Drug Cartels,
Jan. 2022, available at US GAO Urges New Virtual Currency Regulations To Counter Human Trafficking And Drug Cartels - Fin
Tech - United States (mondaq.com) (last visited Mar. 7, 2025).
24 Supra note at 19.
25 Id.
26 Id.
27 Id.
28 S. 20.121(3)(a)2., F.S.
29 S. 560.103(24), F.S.
30 Email from Ash Mason, Legislative & Cabinet Affairs Director, Office of Financial Regulation, RE: [EXT] HB 319 Virtual
Currency Kiosk Businesses (Mar. 5, 2025).
31 Florida Office of Financial Regulation, Agency Analysis of 2025 House Bill 319, p. 1 (Mar. 7, 2025).
32 S. 560.109, F.S.
33 RE: [EXT] HB 319 Virtual Currency Kiosk Businesses, supra note at 30.
34 31 C.F.R. s. 1010.100(s).
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crimes, and promoting national security.35 Unless an exception applies, a MSB36must register with FinCEN.37 An
MSB registration period is a two-calendar-year period.38 Any person who fails to comply with the registration
requirements is liable for a civil penalty of $5,000 for each violation.39 A MSB must develop, implement, and
maintain an anti-money laundering program, which includes, amongst other things, verifying customer
identification.40 A MSB must also comply with anti-money laundering reporting requirements, such as reporting
certain payment transactions by, through, or to the MSB which involves a transaction more than $10,000.41
FinCEN has issued guidance that, unless an exception applies, an administrator42 or exchanger43 that: (a) accepts or
transmits, or (b) buys or sells, virtual currency44 is a money transmitter that is subject to money services business
registration, reporting, and recordkeeping requirements.45 Therefore, FinCEN treats VCK operators as MSBs,
subject to registration regulations.46 Notwithstanding this requirement, the United States Government
Accountability Office (“GAO”) reports that only 164 of the estimated 297 kiosk operators in the United States were
registered, which has contributed to federal agencies, such as FinCEN, facing challenges in identifying VCK
locations.47
BILL HISTORY
STAFF
DIRECTOR/ ANALYSIS
COMMITTEE REFERENCE ACTION DATE POLICY CHIEF PREPARED BY
Insurance & Banking Lloyd Fletcher
Subcommittee
Commerce Committee
35 The U.S. Treasury Financial Crimes Enforcement Network, Financial Crimes Enforcement Network: Mission, available at
Mission | FinCEN.gov (last visited Mar. 7, 2025).
36 “Money services business” is defined as a person wherever located doing business, whether or not on a regular basis or as
an organized or licensed business concern, wholly or in substantial part within the United States, in one or more of the
capacities specified under federal law. 31 C.F.R. s. 1010.100(ff).
37 31 C.F.R. s. 1022.380(a).
38 31 C.F.R. s. 1022.380(b).
39 31 C.F.R. s. 1022.380(e) (providing that each day a violation continues constitutes a separate violation).
40 31 C.F.R. s. 1022.210.
41 31 C.F.R. s. 1010.311.
42 “Administrator” is defined as a person engaged as a business in issuing (putting into circulation) a virtual currency, and who
has the authority to redeem (to withdraw from circulation) such virtual currency. The U. S. Treasury FinCEN, Application of
FinCEN’s Regulations to Persons Administering, Exchanging, or Using Virtual Currencies, Mar. 18, 2013, available at Application
of FinCEN's Regulations to Persons Administering, Exchanging, or Using Virtual Currencies | FinCEN.gov (last visited Mar. 7,
2025).
43 “Exchanger” is defined as a person engaged as a business in the exchange of virtual currency for real currency, funds, or
other virtual currency. Id.
44 “Virtual Currency” is defined as a medium of exchange that operates like a currency in some environments, but does not
have all of attributes of real currency. “Convertible” virtual currency has an equivalent value in real currency, or acts as a
substitute for real currency. Id.
45 FinCEN Guidance on Persons Administering, Exchanging, or Using Virtual Currency. “Money transmitter” is defined as a
person who provides money transmitter services, which means the acceptance of currency, funds, or other value that
substitutes for currency from one person and the transmission of currency, funds, or other value that substitutes for currency
to another location or person by any means. “Any means” includes, but is not limited to, a financial agency or institution, a
Federal Reserve Bank, an electronic funds transfer network, or an informal value transfer system.
31 C.F.R. s. 1010.100(ff)(5)(A).
46 Id.
47 The GAO, Virtual Currencies Additional Information Could Improve Federal Agency Efforts to Counter Human and Drug
Trafficking [Reissued with Revisions Feb. 7, 2022], GAO-22-105462, Published: Dec. 8, 2021, Publicly Released: Jan. 10, 2022,
available at https://www.gao.gov/products/gao-22-105462 (last visited Mar. 7, 2025).
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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 319 2025
1 A bill to be entitled
2 An act relating to virtual currency kiosk businesses;
3 amending s. 560.103, F.S.; defining terms and revising
4 the definition of the term "control person"; amending
5 s. 560.105, F.S.; requiring the Office of Financial
6 Regulation of the Financial Services Commission to
7 supervise virtual currency kiosk businesses; requiring
8 that rules adopted to regulate virtual currency kiosk
9 businesses be responsive to certain changes; creating
10 part V of ch. 560, F.S., entitled "Virtual Currency
11 Kiosk Businesses"; creating s. 560.501, F.S.;
12 providing legislative intent; creating s. 560.502,
13 F.S.; prohibiting a virtual currency kiosk business
14 from operating without registering or renewing its
15 registration in accordance with certain provisions;
16 requiring the office to make certain notifications;
17 specifying that certain money transmitters are exempt
18 from registration but are subject to certain
19 provisions; requiring that certain entities that
20 perform or prevent certain actions be licensed as
21 money services businesses; providing criminal
22 penalties for certain entities that operate or solicit
23 business as a virtual currency kiosk business under
24 certain circumstances; providing criminal penalties
25 for persons who register or attempt to register as a
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26 virtual currency kiosk business by certain means;
27 providing that a virtual currency kiosk business
28 registration is not transferable or assignable;
29 creating s. 560.503, F.S.; specifying application
30 requirements for registering as a virtual currency
31 kiosk business; requiring certain virtual currency
32 kiosk businesses to submit an application within a
33 specified timeframe; requiring a registrant to report
34 certain changes in information within a specified
35 timeframe; requiring a registrant to renew its
36 registration within a specified timeframe; specifying
37 requirements for a registrant to renew its
38 registration; requiring that the registration of a
39 virtual currency kiosk business be made inactive if
40 such business does not renew its registration by a
41 certain date; specifying requirements for a virtual
42 currency kiosk business to renew an inactive
43 registration; providing that a registration becomes
44 null and void under certain circumstances; providing
45 requirements if a registration becomes null and void;
46 requiring the office to deny certain applications
47 under certain circumstances; providing that certain
48 false statements made by a virtual currency kiosk
49 business render its registration void; authorizing the
50 commission to adopt rules; creating s. 560.504, F.S.;
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51 specifying requirements for specified disclosures and
52 attestations displayed by a virtual currency kiosk;
53 authorizing the commission to adopt rules; creating s.
54 560.505, F.S.; requiring an owner-operator to transact
55 business under the legal name by which it is
56 registered; providing exceptions; requiring an owner-
57 operator to maintain certain policies, processes, and
58 procedures; requiring an owner-operator to use
59 blockchain analytics; creating s. 506.506, F.S.;
60 providing criminal penalties; authorizing a court to
61 invalidate the registration of a registrant under
62 certain circumstances; providing effective dates.
63
64 Be It Enacted by the Legislature of the State of Florida:
65
66 Section 1. Present subsections (4) through (28) and (29)
67 through (36) of section 560.103, Florida Statutes, are
68 redesignated as subsections (5) through (29) and (31) through
69 (38), respectively, new subsections (4) and (30) and subsections
70 (39) through (42) are added to that section, and present
71 subsection (10) of that section is amended, to read:
72 560.103 Definitions.—As used in this chapter, the term:
73 (4) "Blockchain analytics" means the process of examining,
74 monitoring, and gathering insights from the data and transaction
75 patterns on a blockchain network. The primary aims of blockchain
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76 analytics are to understand and monitor the network's health,
77 track transaction flows, and identify potential security
78 threats, including illicit activity, in order to extract
79 actionable insights.
80 (11)(10) "Control person" means, with respect to a money
81 services business or virtual currency kiosk business, any of the
82 following:
83 (a) A person who holds the title of president, treasurer,
84 chief executive officer, chief financial officer, chief
85 operations officer, chief legal officer, or compliance officer
86 for a money services business or virtual currency kiosk
87 business.
88 (b) A person who holds any of the officer, general
89 partner, manager, or managing member positions named in the
90 money services business's or virtual currency kiosk business's
91 governing documents. As used in this paragraph, the term
92 "governing documents" includes bylaws, articles of incorporation
93 or organization, partnership agreements, shareholder agreements,
94 and management or operating agreements.
95 (c) A director of the money services business's or virtual
96 currency kiosk business's board of directors.
97 (d) A shareholder in whose name shares are registered in
98 the records of a corporation for profit, whether incorporated
99 under the laws of this state or organized under the laws of any
100 other jurisdiction and existing in that legal form, who owns 25
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101 percent or more of a class of the company's equity securities.
102 (e) A general partner or a limited partner, as those terms
103 are defined in s. 620.1102, who has a 25 percent or more
104 transferable interest, as defined in s. 620.1102, of a limited
105 partnership, limited liability limited partnership, foreign
106 limited partnership, or foreign limited liability limited
107 partnership, as those terms are defined in s. 620.1102.
108 (f) A member, who is a person that owns a membership
109 interest in a limited liability company or a foreign limited
110 liability company, as those terms are defined in s. 605.0102(36)
111 and (26), respectively, that holds a 25 percent or more
112 membership interest in such company. As used in this subsection,
113 the term "membership interest" means a member's right to receive
114 distributions or other rights, such as voting rights or
115 management rights, under the articles of organization.
116 (g) A natural person who indirectly owns 25 percent or
117 more of the shares or stock interest, transferable interest as
118 defined in s. 620.1102, or membership interest as defined in
119 paragraph (f), of any legal entities referred to in paragraphs
120 (d)-(f).
121 (30) "Owner-operator" means a registrant or a licensed
122 money services business.
123 (39) "Virtual currency kiosk" means an electronic terminal
124 that acts as a mechanical agent of the owner-operator, enabling
125 the owner-operator to facilitate the exchange of virtual
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126 currency for fiat currency or other virtual currency for a
127 customer.
128 (40) "Virtual currency kiosk business" or "registrant"
129 means a corporation, limited liability company, limited
130 liability partnership, or foreign entity qualified to do
131 business in this state which operates a virtual currency kiosk
132 and which is not a money transmitter as defined in this section.
133 (41) "Virtual currency kiosk transaction" means the
134 process in which a customer uses a virtual currency kiosk to
135 exchange virtual currency for fiat currency or other virtual
136 currency. A transaction begins at the point at which the
137 customer is able to initiate a transaction after the customer is
138 given the option to select the type of transaction or account,
139 and does not include any of the screens that display the
140 required terms and conditions, disclaimers, or attestations.
141 (42) "Wallet" means hardware or software that enables
142 customers to store and use virtual currency.
143 Section 2. Paragraph (a) of subsection (1) and paragraph
144 (b) of subsection (2) of section 560.105, Florida Statutes, are
145 amended to read:
146 560.105 Supervisory powers; rulemaking.—
147 (1) The office shall:
148 (a) Supervise all money services businesses and their
149 authorized vendors and virtual currency kiosk businesses.
150 (2) The commission may adopt rules pursuant to ss.
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151 120.536(1) and 120.54 to administer this chapter.
152 (b) Rules adopted to regulate money services businesses,
153 including deferred presentment providers and virtual currency
154 kiosk businesses, must be responsive to changes in economic
155 conditions, technology, and industry practices.
156 Section 3. Part V of chapter 560, Florida Statutes,
157 consisting of ss. 560.501-560.506, Florida Statutes, is created
158 and entitled "Virtual Currency Kiosk Businesses."
159 Section 4. Section 560.501, Florida Statutes, is created
160 to read:
161 560.501 Legislative intent.—The Legislature intends to
162 reduce unlawful and fraudulent activities by requiring virtual
163 currency kiosk businesses to register with the state and by
164 requiring such businesses and money transmitter licensees to
165 regularly and consistently disclose to all customers of virtual
166 currency kiosks certain specified risks relating to virtual
167 currency kiosk transactions.
168 Section 5. Effective March 1, 2026, section 560.502,
169 Florida Statutes, is created to read:
170 560.502 Registration required; exemptions; penalties.—
171 (1) A virtual currency kiosk business in this state may
172 not operate without first registering, or renewing its
173 registration, in accordance with s. 560.503. The office shall
174 give written notice, in person or by mail, to each applicant
175 that the agency has granted or denied the application for
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176 registration.
177 (2) A money transmitter licensed as a money services
178 business pursuant to s. 560.141 is exempt from registration as a
179 virtual currency kiosk business but is subject to ss. 560.504,
180 560.505, and 560.506.
181 (3) An entity, in the course of its business, may not act
182 as an intermediary with the ability to unilaterally execute or
183 indefinitely prevent a virtual currency kiosk transaction, or
184 otherwise meet the definition of a money transmitter as defined
185 in s. 560.103, without being licensed as a money services
186 business pursuant to part II of this chapter.
187 (4) Unless licensed as a money services business pursuant
188 to part II of this chapter, an entity that operates or solicits
189 business as a virtual currency kiosk business without first
190 being registered with the office or without maintaining its
191 registration commits a felony of the third degree, punishable as
192 provided in s. 775.082, s. 775.083, or s. 775.084.
193 (5) A person who registers or attempts to register as a
194 virtual currency kiosk business by means of fraud,
195 misrepresentation, or concealment commits a felony of the third
196 degree, punishable as provided in s. 775.082, s. 775.083, or s.
197 775.084.
198 (6) A virtual currency kiosk business registration issued
199 under this part is not transferable or assignable.
200 Section 6. Section 560.503, Florida Statutes, is created
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201 to read:
202 560.503 Registration applications.—
203 (1) To apply to be registered as a virtual currency kiosk
204 business under this part, the applicant must submit all of the
205 following to the office:
206 (a) A completed registration application on forms
207 prescribed by rule of the commission. The application must
208 include the following information:
209 1. The legal name, including any fictitious or trade names
210 used by the applicant in the conduct of its business, and the
211 physical and mailing address of the applicant.
212 2. The date of the applicant's formation and the state in
213 which the applicant was formed, if applicable.
214 3. The name, social security number, alien identification
215 or taxpayer identification number, business and residence
216 addresses, and employment history for the past 5 years for each
217 control person as defined in 560.103.
218 4. A description of the organizational structure of the
219 applicant, including the identity of any parent or subsidiary of
220 the applicant, and the disclosure of whether any parent or
221 subsidiary is publicly traded.
222 5. The name of the registered agent in this state for
223 service of process.
224 6. The physical address of the location of each virtual
225 currency kiosk through which the applicant proposes to conduct
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226 or is conducting business in this state.
227 7. An attestation that the applicant has developed clearly
228 documented policies, processes, and procedures regarding the use
229 of blockchain analytics to prevent transfers to wallet addresses
230 linked to known criminal activity, including the manner in which
231 such blockchain analytics activity will integrate into its
232 compliance controls, and that the applicant will maintain and
233 comply with such blockchain analytics policies, processes, and
234 procedures.
235 8. Any other information as required by this chapter or
236 commission rule.
237 (b) Any information needed to resolve any deficiencies
238 found in the application within a time period prescribed by
239 rule.
240 (2) A virtual currency kiosk business operating in this
241 state on or before January 1, 2026, must submit a registration
242 application to the office within 30 days after that date.
243 (3) A registrant shall report, on a form prescribed by
244 rule of the commission, any change in the information contained
245 in an initial application form or an amendment thereto within 30
246 days after the change is effective.
247 (4) A registrant must renew its registration annually on
248 or before December 31 of the year preceding the expiration date
249 of the registration. To renew such registration, the registrant
250 must submit a renewal application that provides:
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251 (a) The information required in paragraph (1)(a) if there
252 are changes in the application information, or an affidavit
253 signed by the registrant that the information remains the same
254 as the prior year.
255 (b) Upon request by the office, evidence that the
256 registrant has been operating in compliance with ss. 560.504 and
257 560.505. Such evidence may be prescribed by rule by the
258 commission and may include, but need not be limited to, all of
259 the following:
260 1. Current disclosures presented to customers during the
261 transaction process.
262 2. Current use of blockchain analytics to prevent
263 transfers to wallet addresses linked to known criminal activity.
264 (5) The registration of a virtual currency kiosk business
265 that does not renew its registration by December 31 of the year
266 of expiration must be made inactive for 60 days. A virtual
267 currency kiosk business may not conduct business while its
268 registration is inactive.
269 (6) To renew an inactive registration, a virtual currency
270 kiosk business must, within 60 days after the registration
271 becomes inactive, submit all of the following:
272 (a) The information required in paragraph (1)(a) if there
273 are changes in the application information or an affidavit
274 signed by the registrant that the information remains the same
275 as the prior year.
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276 (b) Evidence that the registrant was operating in
277 compliance with ss. 560.504 and 560.505. Such evidence may be
278 prescribed by rule by the commission and may include, but need
279 not be limited to, all of the following:
280 1. Current disclosures presented to customers during the
281 transaction process.
282 2. Current use of blockchain analytics to prevent
283 transfers to wallet addresses linked to known criminal activity.
284
285 Any renewal registration made pursuant to this subsection
286 becomes effective upon the date the office approves the
287 application for registration. The office shall approve the
288 renewal registration within a timeframe prescribed by rule.
289 (7) Failure to submit an application to renew a virtual
290 currency kiosk business's registration within 60 days after the
291 registration becomes inactive shall result in the registration
292 becoming null and void. If the registration is null and void, a
293 new application to register the virtual currency kiosk business
294 pursuant to subsection (1) must be submitted to the office and a
295 certification of registration must be issued by the office
296 before the virtual currency kiosk business may conduct business
297 in this state.
298 (8) If a control person of a registrant or prospective
299 registrant has engaged in any unlawful business practice, or
300 been convicted or found guilty of, or pled guilty or nolo
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301 contendere to, regardless of adjudication, a crime involving
302 dishonest dealing, fraud, acts of moral turpitude, or other acts
303 that reflect an inability to engage lawfully in the business of
304 a registered virtual currency kiosk business, the office must
305 deny the prospective registrant's initial registration
306 application or the registrant's renewal application.
307 (9) The office shall deny the application of a virtual
308 currency kiosk business that submits a renewal application and
309 fails to provide evidence of compliance upon request pursuant to
310 paragraph (4)(b) or as required in paragraph (6)(b).
311 (10) Any false statement made by a virtual currency kiosk
312 business with respect to the name of the business or its
313 business address or location in any application for registration
314 under this section renders the registration void. A void
315 registration may not be construed as creating a defense to any
316 prosecution for violation of this chapter.
317 (11) The commission may adopt rules to administer this
318 section.
319 Section 7. Section 560.504, Florida Statutes, is created
320 to read:
321 560.504 Disclosures.—
322 (1) Disclosures or attestations required by this section
323 and displayed by a virtual currency kiosk must meet all of the
324 following requirements:
325 (a) Be full and complete.
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326 (b) Contain no material misrepresentations.
327 (c) Be readily understandable and in the language in which
328 the virtual currency kiosk transaction is conducted.
329 (d) Be displayed in at least 14-point type.
330 (2) Before authorizing a customer to initiate a virtual
331 currency kiosk transaction, the owner-operator shall ensure that
332 the virtual currency kiosk displays the disclosures in this
333 section on two separate screens.
334 (a) The first disclosure must be in substantially the
335 following form:
336
337 WARNING: CONSUMER FRAUD OFTEN STARTS WITH CONTACT FROM
338 A STRANGER WHO IS INITIATING A DISHONEST SCHEME.
339
340 I UNDERSTAND THAT DISHONEST SCHEMES MAY APPEAR IN MANY
341 FORMS, INCLUDING, BUT NOT LIMITED TO:
342 1. Claims of a frozen bank account or credit card.
343 2. Fraudulent bank transactions.
344 3. Claims of identity theft or job offerings in
345 exchange for payments.
346 4. Requests for payments to government agencies or
347 companies.
348 5. Requests for disaster relief donations or loans.
349 6. Offers to purchase tickets for lotteries,
350 sweepstakes, or drawings for vehicles.
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351 7. Prompts to click on desktop pop-ups, such as virus
352 warnings or communication from alleged familiar
353 merchants.
354 8. Communication from someone impersonating a
355 representative of your bank or a law enforcement
356 officer.
357 9. Requests from persons who are impersonating
358 relatives or friends in need or promoting investment
359 or romance scams.
360
361 PROTECT YOURSELF FROM FRAUD. NEVER SEND MONEY TO
362 SOMEONE YOU DON'T KNOW.
363
364 (b) The second disclosure must be in substantially the
365 following form:
366
367 WARNING: FUNDS LOST DUE TO USER ERROR OR FRAUD MAY NOT
368 BE RECOVERABLE. TRANSACTIONS CONDUCTED ON THIS VIRTUAL
369 CURRENCY KIOSK ARE IRREVERSIBLE. I UNDERSTAND THESE
370 RISKS AND WISH TO CONTINUE WITH CONDUCTING MY VIRTUAL
371 CURRENCY KIOSK TRANSACTION.
372
373 PROTECT YOURSELF FROM FRAUD. NEVER SEND MONEY TO
374 SOMEONE YOU DON'T KNOW.
375
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376 (3)(a) After the disclosures provided in subsection (2)
377 are acknowledged by the customer, the virtual currency kiosk
378 business shall ensure that the virtual currency kiosk displays
379 on a pop-up window the following question to the customer: "ARE
380 YOU USING THIS KIOSK TO SEND VIRTUAL CURRENCY TO A WALLET OWNED
381 BY SOMEONE ELSE?"
382 (b) The virtual currency kiosk business shall require the
383 customer to respond to the question in paragraph (a) with a "no"
384 response before the customer can proceed to the attestation
385 required in subsection (4).
386 (c) The virtual currency kiosk business shall ensure that
387 the virtual currency kiosk terminates a customer's virtual
388 currency kiosk transaction if the customer provides a "yes"
389 response to the question in paragraph (a).
390 (4) After the disclosures provided in subsection (2) and,
391 with respect to virtual currency kiosk businesses, an answer of
392 "no" to the question provided in paragraph (3)(a), the owner-
393 operator must ensure that the virtual currency kiosk displays,
394 on a screen by itself, a toll-free number for the customer to
395 contact regarding the risk of engaging in virtual currency
396 transactions and the following attestation in substantially the
397 following form:
398
399 I ATTEST THAT I HAVE BEEN GIVEN A TOLL-FREE NUMBER AND
400 THAT I HAVE HAD AN OPPORTUNITY TO CALL THE NUMBER TO
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401 SPEAK WITH SOMEONE REGARDING THE RISKS OF ENGAGING IN
402 VIRTUAL CURRENCY KIOSK TRANSACTIONS. I FURTHER ATTEST
403 THAT I UNDERSTAND THAT I MAY BE SOLELY RESPONSIBLE FOR
404 LOSS OF FUNDS DUE TO USER ERROR OR FRAUD.
405
406 (a) If a customer makes the attestation in this
407 subsection, the virtual currency kiosk may allow the customer to
408 proceed with the virtual currency kiosk transaction.
409 (b) If the customer does not make the attestation in this
410 subsection, the owner-operator must ensure that the virtual
411 currency kiosk terminates the customer's virtual currency kiosk
412 transaction.
413 (5) The commission may adopt rules to administer this
414 section and to ensure that virtual currency kiosk disclosures
415 are responsive to consumer fraud and emerging technology.
416 Section 8. Section 560.505, Florida Statutes, is created
417 to read:
418 560.505 Conduct of business.—
419 (1) An owner-operator may transact business under this
420 part only under the legal name by which such business is
421 registered. The use of a fictitious name is allowed if the
422 fictitious name has been registered with the Department of State
423 and disclosed to the office as part of an initial registration
424 or license application, or subsequent amendment to the
425 application, before its use.
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426 (2) An owner-operator must maintain clearly documented
427 policies, processes, and procedures with regard to the manner in
428 which the blockchain analytics activity integrates into their
429 compliance controls. An owner-operator must use blockchain
430 analytics to prevent transfers to wallet addresses linked to
431 known criminal activity.
432 Section 9. Section 560.506, Florida Statutes, is created
433 to read:
434 560.506 Penalties.—
435 (1) An owner-operator of a virtual currency kiosk which
436 violates s. 560.504 commits a felony of the third degree,
437 punishable as provided in s. 775.082, s. 775.083, or s. 775.084.
438 (2) Each of the following violations constitutes a
439 misdemeanor of the second degree, punishable as provided in s.
440 775.082 or s. 775.083:
441 (a) Operating a virtual currency kiosk under any name
442 other than that designated in the registration, unless written
443 notification is given to the office.
444 (b) Assigning or attempting to assign a virtual currency
445 kiosk business registration issued under this part.
446 (c) Operating a virtual currency kiosk without the use of
447 blockchain analytics as required under s. 560.505.
448 (3) In addition to the criminal penalties provided in this
449 section, a court may invalidate the registration of any
450 registrant under this part who has been found guilty of conduct
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451 punishable under subsection (1) or subsection (2).
452 Section 10. Except as otherwise expressly provided in this
453 act, this act shall take effect January 1, 2026.
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CS/HB 385
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 #: CS/HB 385 COMPANION BILL: CS/SB 262 (Berman)
TITLE: Trusts LINKED BILLS: None
SPONSOR(S): Civil Justice Subcommittee; Oliver RELATED BILLS: None
Committee References
Civil Justice & Claims Insurance & Banking Judiciary
18 Y, 0 N, As CS
SUMMARY
Effect of the Bill:
HB 385 modifies various provisions in the Florida Trust Code, including provisions relating to trust decanting,
which refers to the process of transferring, or “decanting,” trust assets from one trust to a new, second trust.
Specifically, the bill clarifies that an authorized trustee decanting trust assets from an original trust into a new,
second trust is not the settlor of the second trust; specifies whose intent may be considered when determining
settlor intent with respect to a second trust; provides an option to expressly structure a decanting as a modification
of the original trust; and clarifies that a decanting notice is not a trust disclosure document that would trigger a
specified limitations period for bringing breach of fiduciary duty claims against the trustee. The bill also:
Expressly prohibits a successor trustee from bringing a claim against a former trustee if the beneficiary is
barred from personally bringing such a claim.
Incorporates the concept of ademption by satisfaction, already found in the Florida Probate Code, into the
Trust Code in the context of a revocable trust that later becomes irrevocable upon the settlor’s death.
Modifies the definition of “community property,” clarifies the definition of “community property trust,” and
specifies how a transfer of homestead property into such a trust is to be treated for property tax
assessment purposes.
Fiscal or Economic Impact:
The bill may have an indeterminate economic impact on the private sector.
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ANALYSIS
EFFECT OF THE BILL:
Trust Decanting
Authorized Trustee
The bill amends the definition of “authorized trustee” in s. 736.04117, F.S., to clarify that, for the purposes of that
section, an authorized trustee will not be considered the settlor of a second trust, even if the authorized trustee
created the trust instrument governing the second trust or decanted assets from the first trust to the second trust.
Practically speaking, this will ensure that the authorized trustee of the first trust can also be the authorized trustee
of the second trust, as, under Florida law, an authorized trustee generally may not also be the settlor. (Section 1)
The bill further amends this section to clarify that, in determining settlor intent with respect to a second trust or a
first trust modification, the intent of the first trust’s settlor, the second trust’s settlor, or the authorized trustee may
be considered. This clarification is meant to conform this section to the intent of the Uniform Trust Decanting Act,
from which this provision originated. (Section 1)
Decanting Power
STORAGE NAME: h0385b.IBS
DATE: 3/12/2025
1
The bill amends s. 736.04117(2), (3), and (4), F.S., to provide an additional method by which an authorized trustee
may exercise its power (whether absolute or limited) to distribute trust principal to or for the benefit of one or
more beneficiaries. Specifically, in addition to exercising this power by a traditional decanting, as authorized under
current law, the bill would also allow an authorized trustee to exercise this power by expressly structuring a
decanting as a modification of the first trust’s terms. Practically speaking, expressly structuring a decanting as a
modification may eliminate the need to retitle assets, simplify tax consequences (such as by possibly eliminating
the need to obtain a new Employer Identification Number or redo Subchapter S elections), and may also avoid a
termination in the context of a supplemental needs trust under Social Security Administration rules (thereby
preserving the eligibility of a beneficiary with a disability to certain government benefits). (Section 1)
Decanting Notice
The bill amends s. 36.04117(8)(d), F.S., to provide that the authorized trustee’s decanting notice is not a trust
disclosure document as defined in s. 736.1008(4), F.S. The bill also provides that, with respect to the authorized
trustee’s power to invade principal, a trust disclosure document will not commence the six-month limitations
period in which a beneficiary may bring a breach of trust action against the authorized trustee unless such
document is given to the beneficiaries after the effective date of the authorized trustee’s exercise of such power.
Practically speaking, these changes provide clarity for beneficiaries as to when the limitations period for breach of
trust related to a decanting begins to run. (Section 1)
Application
The bill creates s. 736.04117(12), F.S., to clarify that s. 736.04117, F.S., applies to all trusts governed by Florida law
or that have a principal place of administration in Florida. (Section 1)
Claims Against Former Trustees
The bill creates s. 736.10085, F.S., to limit claims which may be brought against former trustees. Specifically, the
bill provides that an action or claim by a successor trustee or other person acting on behalf of the trust against a
former trustee is barred to the same extent that the action or claim would be barred if brought by the beneficiary
whose interests the successor trustee or other person acting on behalf of the trust represents. (Section 3) The bill
also amends s. 736.08125, F.S., to make a conforming change related to this limitation. (Section 2)
Ademption by Satisfaction
The bill creates s. 736.1110, F.S., to contemplate ademption by satisfaction with respect to property that is devised
to or from a revocable trust, mirroring this provision to similar language in the Florida Probate Code (governing
ademption by satisfaction where property is devised by a will). Specifically, the bill provides that property devised
to or from a revocable trust which a settlor gave to someone during the settlor’s lifetime is to be treated as a
satisfaction of a devise to that person upon the settlor’s death if any of the following circumstances apply:
The trust instrument provides for the deduction of the lifetime gift or distribution;
The settlor or the trustee declares in a contemporaneous writing that the gift or distribution is to be
deducted from the devise or is in satisfaction thereof; or
The devisee acknowledges in writing that the gift or distribution is in satisfaction of the devise. (Section 4)
Further, the bill specifies that:
For purposes of partial satisfaction, property distributed or given during the settlor’s lifetime will be
valued at the time the devisee came into possession or enjoyment of the property or at the time of the
settlor’s death, whichever occurs first.
These changes apply to revocable trusts that become irrevocable (due to the settlor’s death) on or after
July 1, 2025. (Section 4)
Community Property Trusts
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2
The bill creates s. 736.151, F.S., to clarify that a transfer of homestead property by one or both of the settlor
spouses to a community property trust will not be treated as a change of ownership for purposes of reassessing the
property. Instead, the bill provides that such a transfer qualifies as a transfer of legal or equitable title between
spouses as described in s. 193.155(3)(a)2., F.S. Practically speaking, this will ensure that the property appraiser’s
future assessments of the home’s value for property tax purposes remain tied to the original assessment done the
first year the home received the homestead exemption after purchase by one or both of the settlor spouses; this
will likely keep the property taxes assessed on the home lower than they would be if the property’s value was
reassessed after the transfer to the trust. (Section 6)
The bill also modifies the definition of “community property” in s. 736.1502, F.S., to provide that the property
owned by a community property trust and the appreciation of income from such property “are” community
property for purposes of general law, rather than “deemed to be” as provided in current law. Further, the bill
modifies the definition of “community property trust” in s. 736.1502, F.S., which Florida law originally tied to the
trust’s creation date, to clarify that an express trust that complies with s. 736.1503, F.S., and that is created,
amended, restated, or modified on or after July 1, 2021, remains a community property trust. Practically speaking,
this clarification expressly accounts for the reality that a married couple who moves to Florida may already have
created a community property trust before their move, which trust they may want to amend or restate so that the
trust qualifies as a Florida community property trust governable under the Florida Trust Code. (Section 5)
Miscellaneous Provisions
The bill:
Provides that the amendments made by the bill to ss. 736.04117, 736.151 and 736.1502, F.S., are remedial
and apply to all trusts created before, on, or after the bill’s effective date. (Section 7)
Provides an effective date of upon becoming a law. (Section 8)
FISCAL OR ECONOMIC IMPACT:
PRIVATE SECTOR:
The bill may have an indeterminate impact on the private sector. To the extent the bill reduces trust and
homestead property tax implications, or preserves existing community property trusts, the bill may have a positive
economic impact on the private sector.
RELEVANT INFORMATION
SUBJECT OVERVIEW:
Trust Overview
Generally speaking, a trust is a relationship in which one party (the “settlor”)1 gives another party (the “trustee”)2
the right to hold title to the settlor’s assets for a third party’s benefit (the “beneficiary”).3 A trust may be created
and take effect during a settlor’s lifetime (“a living trust”) or may be created by a will or other disposition and take
effect when the settlor dies (“testamentary trust”).4 A trust may also be revocable (so that the terms may be
changed at any time before the settlor’s death) or irrevocable (so that the terms cannot be modified after the
trust’s creation absent a court order upon the consent of the beneficiaries or where the trust’s purposes have
become frustrated or illegal).5
1 “Settlor” means a person, including a testator, who creates or contributes property to a trust. S. 736.0103(18), F.S.
2 A settlor can designate a trustee, and successor trustees, in the trust document itself; however, where there is no designated trustee, or if
the designated trustee is unable or unwilling to accept the trusteeship, the qualified beneficiaries may select a trustee by unanimous
agreement, or else a court may appoint a trustee. S. 736.0704, F.S.
3 A “beneficiary” may have a present or future beneficial interest in a trust, which interest may be vested or contingent. S. 736.0103(4), F.S.
4 See “inter vivos trust” and “testamentary trust,” Black's Law Dictionary (11th ed. 2019); s. 736.0401, F.S.
5 Greg Depersio, Investopedia (Apr. 30, 2023), Revocable Trust v. Irrevocable Trust: What’s the Difference,
https://www.investopedia.com/ask/answers/071615/what-difference-between-revocable-trust-and-living-trust.asp (last visited Mar. 5,
2025).
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3
General Trust Provisions
Most trusts are generally governed by the Florida Trust Code, codified in chapter 736, F.S. However, additional
provisions of Florida law may apply if the trust has special attributes, and, importantly, the terms of the trust
govern over Trust Code provisions unless the Trust Code provides otherwise.6
Trusts Governed by Florida Law
A trust is generally governed by the law of the jurisdiction designated in the trust’s terms, provided there is a
sufficient nexus to the designated jurisdiction at the time of the trust’s creation or during the trust’s
administration; a sufficient nexus may include, but is not limited to, the location of real property held by the trust
or the residence or location of an office of the settlor, a trustee, or any beneficiary.7 However, where there is no
controlling designation in the trust’s terms, a trust is governed by the law of the jurisdiction where the settlor
resides at the time of the trust’s creation.8
Under Florida law, a trust is created only if certain conditions are met. Specifically, to create a trust:
The settlor must have capacity to create a trust;9
The settlor must indicate an intent to create a trust;
The trust must have a definite beneficiary,10 or else be a charitable trust,11 a trust for the care of an animal,12
or a trust for a non-charitable purpose;13
The trustee must have duties to perform;14 and
The same person cannot be the sole trustee and sole beneficiary.15
Further, a trust may be created only to the extent that its purposes are lawful, not contrary to public policy, and
possible to achieve.16
Principal Place of Administration
A trust’s principal place of administration may be designated in the trust instrument or, where no such designation
is validly made, determined by operation of law. For a designation of the principal place of administration to be
valid, there must be a sufficient connection with the designated jurisdiction, which connection may be established
when:
A trustee’s principal place of business or residence is located in the designated jurisdiction; or
All or part of the administration occurs in the designated jurisdiction.17
Where the trust instrument lacks a valid designation:
The principal place of administration is:
6 Ss. 736.0102 and 736.0105, F.S.
7 S. 736.0107, F.S.
8 Id.
9 The capacity required to create, amend, revoke, or add property to a trust, or to direct the actions of the trustee, is generally the same as
that required to make a will. In other words, the settlor must be at least 18 years of age and of sound mind, meaning that he or she
understands the nature and extent of the property placed in trust, the identities of the beneficiaries, and the effect of the disposition. Ss.
732.501 and 736.0601, F.S.
10 A beneficiary is “definite” if the beneficiary can be ascertained now or in the future, subject to any applicable rule against perpetuities. S.
736.0402(2), F.S.
11 A “charitable trust” is a trust created for charitable purposes, which may include poverty relief; the advancement of the arts, science,
education, or religion; or the promotion of health, governmental, or municipal purposes. S. 736.0405, F.S.
12 A trust may be created for the care of an animal alive during the settlor’s lifetime. Such a trust terminates on the animal’s death or, if the
trust was created to provide for the care of more than one qualifying animal, on the death of the last surviving animal. S. 736.0408, F.S.
13 A trust may be created for a non-charitable purpose without a definite or definitely ascertainable beneficiary. Such a trust may not be
enforced for more than 1,000 years. S. 736.0409, F.S.
14 Trustees must generally comply with the duties set out in the trust instrument. The Florida Trust Code also confers a number of duties on
trustees, intended to ensure that trustees put the beneficiaries’ interests before their own interests and act fairly and in good faith to
preserve and protect the trust’s assets for the beneficiaries’ benefit. S. 736.0801, F.S.
15 S. 736.0402(1), F.S.
16 S. 736.0404, F.S.
17 S. 736.0108(1), F.S.
JUMP TO SUMMARY ANALYSIS RELEVANT INFORMATION BILL HISTORY
4
o The trustee’s usual place of business where the trust’s records are kept; or
o If the trustee has no place of business, the trustee’s residence.18
In the case of co-trustees, the principal place of administration is:
o The usual place of business of the corporate trustee, if there is only one such trustee;
o The usual place of business or residence of the individual trustee who is a professional fiduciary, if
there is only one such person and no corporate trustee; or
o The usual place of business or residence of any of the co-trustees as agreed on by the co-trustees.19
Trustee Duties and Disclosure Document
The Trust Code imposes several affirmative duties upon a trustee. These include a duty:
To administer the trust in good faith, in accordance with its terms and purposes and the beneficiaries’
interests, and with the Trust Code;20
To control and protect trust property;21
To keep clear, distinct, and accurate records;22 and
To keep the trust’s qualified beneficiaries reasonably informed of the trust and its administration,
sometimes accomplished through a trust accounting.23
Where a trustee violates a duty owed to a beneficiary, the trustee commits a breach of trust.24 To remedy a breach
of trust, a court may, among other things:
Compel the trustee to perform the trustee’s duties;
Enjoin the trustee from committing a breach of trust;
Compel the trustee to pay money or restore property;
Suspend or remove the trustee;
Reduce or deny compensation owed to the trustee; or
Void a trustee’s act.25
However, a court typically cannot remedy a breach of trust unless a beneficiary brings a breach of trust action
against the trustee within a specified time period after learning about the breach, which may occur when the
beneficiary receives a trust disclosure document; such a document is a trust accounting or any other written report
from the trustee or a trust director to the beneficiaries, the purpose of which is to adequately disclose a matter to
the trust’s beneficiaries to allow them to know or reasonably ascertain whether they have any kind of claim against
the trustee for breach of trust related to the matter26 More specifically, under the statutory limitations period, a
beneficiary is barred from bringing a breach of trust action against a trustee with respect to a matter that was
adequately disclosed in a trust disclosure document unless the action is brought within six months after receipt of
such document or a limitation notice27 applicable to that document,28 whichever is received later.29
18 S. 736.0108(2), F.S.
19 Id.
20 S. 736.0801, F.S.
21 S. 736.0809, F.S.
22 S. 736.0810, F.S.
23 A trust accounting must be a reasonably understandable report covering the time from the date of the last accounting or, if none, from the
date on which the trustee became accountable, that adequately discloses specified information relating to trust assets and financials. S.
736.0813, F.S.
24 S. 736.1001, F.S.
25 Id.
26 S. 736.1008(4)(c), F.S.
27 A limitation notice is a written notice from the trustee or a trust director that a beneficiary’s breach of trust action based on a matter
adequately disclosed in a trust disclosure document may be barred if it is not brought within six months after receipt of the trust disclosure
document or the limitation notice. S. 736.1008(4)(a), F.S.
28 A limitation notice applies to a trust disclosure document when the notice is: contained as a part of the trust disclosure document or as
part of another trust disclosure document received within one year before the receipt of the latter trust disclosure document; accompanied
concurrently by the trust disclosure document or by another trust disclosure document that was received within one year of the latter trust
disclosure document; delivered separately within ten days after delivery of the trust disclosure document or another trust disclosure
document that was received within one year before receipt of the latter trust disclosure document; or received more than ten days after the
delivery of the trust disclosure document, but only if the limitation notice references the trust disclosure document and meets other
conditions. S. 736.10089(5), F.S.
29 S. 736.1008(4)(c), F.S.
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5
Trust Decanting
Florida law allows a trust to authorize a trustee (who is not a settlor or a beneficiary) to invade a trust’s principal
and shift it from one trust (“first trust”) to another trust (“second trust”) in certain circumstances.30 This process,
often called “decanting,” provides unique opportunities to remedy problems in trust administration or address
changes in circumstances or law; more specifically, it can be useful to achieve certain tax objectives, change trust
situs, expand or limit trust powers, provide better asset protection, correct drafting errors, and more.31
Florida law has recognized a trustee’s common law authority to decant since 1940, and the Legislature codified
this authority into the Florida Trust Code in 2007, as s. 736.04117, F.S.32 The legislature then amended this
provision in 2018 to better align Florida’s decanting laws to those of other states and the 2015 Uniform Trust
Decanting Act;33 the result of this modification is a broader opportunity to decant Florida trusts and affect changes
in trust administration.
Authorized Trustee
Under Florida law, an “authorized trustee” is any trustee, other than the settlor or a beneficiary, authorized by a
trust instrument to decant trust principal from one trust to a second trust.34 Sometimes, however, an authorized
trustee exercising his or her decanting power may execute the trust instrument that creates the second trust or
place assets into the second trust (typically roles of the settlor); in such instances, confusion may arise as to
whether the authorized trustee is the settlor of the second trust and, therefore, whether, he or she may be the
authorized trustee of the second trust.
Decanting Power
Section 736.04117(2), F.S., generally provides that an authorized trustee given absolute power35 under the trust’s
terms to distribute trust principal to or for the benefit of one or more beneficiaries may exercise such power by
decanting, subject to certain limitations. Specifically, the authorized trustee may, as to the second trust:
Eliminate beneficiaries, if no vested interest is thereby reduced, but may not add new beneficiaries;
Omit most, but not all, powers of appointment granted in the first trust, modify existing powers of
appointment, and create new powers of appointment; and
Extend the trust’s term past the first trust’s term, if doing so does not violate the rule against perpetuities.
Such decanting is permissible whether the second trust was created under the same trust instrument as the first
trust or a different trust instrument, including a trust instrument created for the purpose of exercising the power
granted by this section.
30 S. 736.04117(1)(b), F.S.
31 Amy J. Fanzlaw, New Opportunities to Decant in Florida: Part I: Recent Changes to the Trust Decanting Statute, 93 Fla. Bar Journal 31
(Sept./Oct. 2019), https://www.floridabar.org/the-florida-bar-journal/new-opportunities-to-decant-in-florida-part-irecent-changes-to-the-
trust-decanting-statute/ (“Think of the process of decanting wine: Wine is poured form a bottle to a decanter to allow it to breathe and
mature. While the wine decanter or vessel changes, the wine itself – the trust corpus – remains the same, conforming and molding itself
according to the parameters of the new decanter. This is the same for trust decanting.”)(last visited Mar. 5, 2025).
32 Phipps v. Palm Beach Trust Co., 196 So. 299 (Fla. 1940); Id.
33 The Uniform Trust Decanting Act, produced by the Uniform Law Commission in 2015, is designed to standardize trust decanting laws
amongst the several states and jurisdictions of the United States; its purpose is to allow a trust to adopt to unforeseen circumstances while
still effectuating the settlor’s original intent. 18 states have enacted the Act in its original form; one state has adopted a substantially similar
version of the Act; and one state has introduced the Act for consideration in the 2025 legislative session. Florida’s decanting statute predates
the Act. Uniform Law Commission, Uniform Trust Decanting Act, https://www.uniformlaws.org/committees/community-
home?communitykey=5b248bac-9251-47fb-bad8-57a23f3df540 (last visited Mar. 5, 2025).
34 S. 736.04117(1)(b), F.S.
35 “Absolute power” means a power to invade trust principal that is not limited to specific or ascertainable purposes, such as health,
education, maintenance, and support, regardless of whether the term “absolute” is used. A power to invade principal for purposes such as
best interests, welfare, comfort, or happiness constitutes an absolute power not limited to specific or ascertainable purposes. S.
736.04117(1)(a), F.S.
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6
Similarly, s. 736.04117(3), F.S., generally allows an authorized trustee given limited powers to distribute trust
principal to decant, albeit in a more limited manner. Specifically, an authorized trustee with limited power may not,
as to the second trust, eliminate any beneficiaries; instead each beneficiary of the first trust must have a
“substantially similar”36 interest in the second trust during the first trust’s term. However, the second trust’s term
may still extend beyond the first trust’s term, and the second trust’s instrument may, with respect to any property
subject to the extended time period, conceivably change the potential beneficiaries of the second trust by:
Including language giving the authorized trustee the absolute power to invade the second trust’s principal
during the extended time period; or
Creating powers of appointment in those individuals who were beneficiaries under the first trust and
expanding the class of permitted appointees of any powers of appointment existing in the first trust.
Finally, s. 736.04117(4), F.S., generally allows an authorized trustee with power (whether absolute or limited)
under the first trust to distribute trust principal to or for the benefit of a beneficiary with a disability37 to exercise
such power by decanting to a supplemental needs trust,38 subject to certain limitations. Specifically:
The supplemental needs trust must benefit the beneficiary with the disability;
The beneficiaries of the second trust may include only beneficiaries of the first trust, and must grant each
beneficiary of the first trust, other than the disabled beneficiary, beneficial interests in the second trust
which are substantially similar to their respective interests under the first trust; and
The authorized trustee must determine that such decanting will further the first trust’s purposes.
However, trust decanting, as currently contemplated in Florida law, may have tax consequences (including the
need to obtain a new Employer Identification Number39 or to redo Subchapter S elections40) and may require the
retitling of certain assets to the second trust; further, the decanting may be treated as a termination for the
purposes of a supplemental needs trust under Social Security Administration rules, which would impact the
eligibility of a beneficiary with a disability for certain government benefits. To try to avoid these issues, an
authorized trustee could consider structuring the decanting as a modification of the first trust, but such a
structuring is not expressly authorized under current Florida law.
Decanting Notice
Section 736.04117(8), F.S., generally requires the authorized trustee to provide written notification of the manner
in which he or she intends to exercise his or her power to invade principal to all of the following parties at least 60
days before the effective date of the authorized trustee’s exercise of such power:
All qualified beneficiaries of the first trust.
To the settlor of the first trust, if the settlor is not treated as the owner of first trust for tax purposes;
All trustees of the first trust; and
Any person who has the power to remove or replace the authorized trustee of the first trust.41
36 “Substantially similar” means no material change in a beneficiary’s beneficial interest or in the power to make distributions and that the
power to make a distribution under a second trust for the benefit of a beneficiary who is an individual is substantially similar to the power
under the first trust to make a distribution directly to the beneficiary. S. 736.04117(1)(i), F.S.
37 “Beneficiary with a disability” means a beneficiary of the first trust who the authorized trustee believes may qualify for government
benefits based on disability, regardless of whether the beneficiary currently receives those benefits or has been adjudicated incapacitated. S.
736.04117(1)(c), F.S.
38 “Supplemental needs trust” means a trust that the authorized trustee believes would not be considered a resource for purposes of
determining whether the beneficiary who has a disability is eligible for government benefits. “Government benefits,” in turn, means financial
aid or services from any state, federal, or other public agency. S. 736.04117(1)(e) and (j), F.S.
39 An “Employer Identification Number” is a federal tax ID number for businesses, tax-exempt organizations, and other entities. Internal
Revenue Service, Employer Identification Number, https://www.irs.gov/businesses/employer-identification-number (last visited Mar. 5,
2025).
40 A “Subchapter S election” is an election by a corporation to pass corporate income, losses, deductions, and credits through to its
shareholders for federal tax purposes. Shareholders of so-called “S Corporations” report the flow-through of income and losses on their
personal tax returns and are assed taxes thereon at their individual income tax rates, allowing the corporation to avoid double taxation on
the corporate income. Internal Revenue Service, S Corporations, https://www.irs.gov/businesses/small-businesses-self-employed/s-
corporations (last visited Mar. 5, 2025).
41 If all those required to be noticed waive the notice period as provided by law, the authorized trustee’s power to invade principal must be
exercised immediately.
JUMP TO SUMMARY ANALYSIS RELEVANT INFORMATION BILL HISTORY
7
The authorized trustee’s obligation to provide such a notice is satisfied when he or she provides to the required
parties copies of the proposed instrument exercising the power, the trust instrument of the first trust, and the
proposed trust instrument of the second trust. Further, such notice does not limit any beneficiary’s right to object
to the exercise of the authorized trustee’s power to invade principal except as otherwise provided in the Florida
Trust Code. However, confusion exists as to whether the decanting notice is a trust disclosure document that would
trigger the six-month limitations period for breach of trust claims related to matters disclosed in the notice.
Claims Against Former Trustees
Section 736.08125, F.S., generally protects a successor trustee from being held personally liable for certain actions
taken by a former trustee in certain situations. Specifically, this section provides that a successor trustee is not
personally liable for actions taken by a former trustee, nor does any successor trustee have a duty to institute any
proceeding against a former trustee, for any of the former trustee’s actions as trustee under any of the following
circumstances:
As to a successor trustee who succeeds a trustee who was also the settlor of a trust that was revocable
during the time that the settlor serves as trustee;
As to any beneficiary who has waived any required accounting, but only as to the periods included in the
waiver;
As to any beneficiary who has released the successor trustee from the duty to institute any proceeding or
file any claim;
As to any person who is not an eligible beneficiary; or
As to any beneficiary:
o If a super-majority of the eligible beneficiaries has released the successor trustee;
o If the eligible beneficiary has not delivered a written request to the successor trustee to institute an
action or file a claim against the former trustee within six months after the date the successor
trustee accepted the trusteeship, if the successor trustee notified the beneficiary in writing of such
acceptance; or
o For any action or claim that the eligible beneficiary is barred from bringing against the former
trustee.
However, this section clarifies that nothing therein affects the former trustee’s liability or a successor trustee’s or
beneficiary’s right to pursue an action or claim against the former trustee. Taking this together, Florida law
currently reads to suggest that, where a beneficiary is barred from bringing an action or claim against a former
trustee, the successor trustee might still be able to do so in his or her discretion.
Ademption by Satisfaction
Section 732.609, F.S., under the Florida Probate Code,42 addresses ademption by satisfaction in the case of a will43 –
that is, what happens when property that is to be devised by a testator’s44 will is no longer a part of the testator’s
estate45 at the time of his or her death because it was given to someone during the testator’s lifetime. Specifically,
this section provides that property that a testator gave to someone in the testator’s lifetime is treated as a
satisfaction of a devise to that person only if:
The will provides for deduction of the lifetime gift;
The testator declares in a contemporaneous writing that the gift is to be deducted from the devise or is in
satisfaction thereof; or
The devisee acknowledges in writing that the gift is in satisfaction of the devise.
42 The Probate Code is codified in the following chapters of Florida law: ch. 731, F.S.; ch. 732, F.S.; ch. 733, F.S.; ch. 734, F.S.; and ch. 735, F.S.
43 “Will” means a testamentary instrument executed by a person in the manner prescribed in the Florida Probate Code, which disposes of the
person’s property on or after his or her death. S. 731.201(40), F.S.
44 “Testator” means a person who has died and left a will. Legal Information Institute, Testator, https://www.law.cornell.edu/wex/testator
(last visited Mar. 5, 2025).
45 “Estate” means the property of a decedent that is the subject of administration, which, in turn, is the legal process that ensures the orderly
distribution of a decedent’s assets and the settlement of his or her debts. S. 731.201(14), F.S.
JUMP TO SUMMARY ANALYSIS RELEVANT INFORMATION BILL HISTORY
8
Under this section, property given during the testator’s lifetime is valued at the time the devisee came into
possession or enjoyment of the property or at the time of the testator’s death, whichever occurs first.
In some instances, a person considering how best to distribute his or her property upon his or her death may
choose to place the property into a revocable trust in lieu of devising it by will; however, the Florida Trust Code
does not currently contemplate the concept of ademption by satisfaction in the case of a revocable trust. In other
words, the Trust Code does not address what happens when property that is to be devised to or from a revocable
trust is not part of the trust’s assets when the trust becomes irrevocable (that is, when the settlor dies) because it
was given to someone during the settlor’s lifetime.
Community Property Trusts
Generally speaking, Florida is a “common law property” state, meaning that assets and debts acquired during
marriage are, with few exceptions, subject to equitable (though not necessarily equal) distribution by the courts
upon a dissolution of the marriage. This is in contrast to “community property” states, where assets and debts
acquired during marriage are, with few exceptions, owned (or owed) equally by both spouses and divided equally
by the courts upon a dissolution of the marriage. However, since 2021, Part XV of the Florida Trust Code has
allowed married persons to transfer property to a “community property trust,” essentially establishing
“community property” in Florida, the benefit of which may be significant income tax savings for a settlor spouse
upon the other settlor spouse’s death.46
Under s. 736.1502(1), FS., “community property” means the property and the appreciation of income from the
property owned by a qualified trustee of a community property trust during the settlor spouses’ marriage, which
property and the appreciation of income is “deemed to be” community property for the purposes of general law.
Further, under s. 736.1502(2), F.S., of this Part, “community property trust” means an express trust,47 “created” on
or after July 1, 2021, that complies with s. 736.1503, F.S.; this section in turn provides that an arrangement is a
community property trust if one or both of the settlor spouses transfers property to a trust that:
Expressly declares that the trust is a community property trust;
Has at least one trustee who is a qualified trustee;
Is signed by both settlor spouses consistent with the formalities required for trust execution; and
Contains statutorily-specified language at the beginning of the community property trust agreement
relating to the arrangement’s consequences.
Property that may be transferred to a community property trust includes homestead property;48 however,
confusion exists as to whether such a transfer is considered a change of ownership49 for property tax appraisal
purposes, or instead a transfer of legal or equitable ownership between spouses. Whether such a transfer is a
change of ownership matters, as current Florida law provides a tax benefit (known as the “Save Our Homes”
benefit”) that limits the rate at which a property tax assessment on homestead property may increase per year
following the first assessment after a home receives a homestead exemption upon a change of ownership;
currently, that annual increase is limited to three percent of the previous years’ value or the percent change in the
Consumer Price Index,50 whichever is less.51 However, a change of ownership would trigger a new property tax
assessment, the assessed value of which would then serve as the baseline for the Save Our Homes benefit;
practically speaking, property taxes on the home may increase as a result.52
46 There are also ramifications for how courts distribute property during a dissolution of marriage proceeding, not discussed here.
47 An “express trust” is a trust created with the settlor’s express intent, usually declared in writing. Byrne Realty Co. v. South Florida Farms
Co., 89 So. 318 (Fla. 1921).
48 Under Florida law, when someone owns property that is his or her permanent residence, and where such property is no more than half an
acre within a municipality or 160 acres within an unincorporated area of a county, the property owner may be eligible to receive a
homestead exemption that would decrease the property’s taxable value by up to $50,000. Property that qualifies for such an exemption is
known as “homestead property.” Art. VII, s. 6, Fla. Const.; s. 196.031, F.S.
49 “Change of ownership” means any sale, foreclosure, or transfer of legal title or beneficial title in equity to any person, absent an exception;
such exceptions include the transfer of legal or equitable title between spouses. S. 193.155, F.S.
50 The Consumer Price Index is a measure of the average change over time in the prices paid by urban consumers for a market basket of
consumer goods and services. U.S. Bureau of Labor Statistics, Consumer Price Index, https://www.bls.gov/cpi/ (last visited Mar. 5, 2025).
51 S. 193.155, F.S.; Florida Department of Revenue, Save Our Homes Assessment Limitation and Portability Transfer,
https://floridarevenue.com/property/Documents/pt112.pdf (last visited Mar. 5, 2025).
52 Id.
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Further, confusion exists as to whether an existing community property trust formed under the laws of a foreign
state but then amended or restated to qualify as a Florida community property trust is “created” on or after July 1,
2021, as the current definition of “community property trust” contemplates. This confusion may impact married
couples with existing community property trusts who wish to relocate to Florida and receive the benefits of a
Florida community property trust.
Retroactivity
In determining whether a law may be applied retroactively, courts first determine whether the law is procedural,
remedial, or substantive in nature.53 A purely procedural or remedial law may apply retroactively without
offending the Constitution, but a substantive law generally may not apply retroactively absent clear legislative
intent to the contrary.54 However, even where the Legislature has expressly stated that a law will have retroactive
application, a court may reject that application if the law impairs a vested right, creates a new obligation, or
imposes a new penalty.55 Further, where a law is designed to serve a remedial purpose, a court may decide not to
apply the law retroactively where doing so “would attach new legal consequences to events completed before its
enactment.”56
BILL HISTORY
STAFF
DIRECTOR/ ANALYSIS
COMMITTEE REFERENCE ACTION DATE POLICY CHIEF PREPARED BY
Civil Justice & Claims 18 Y, 0 N, As CS 3/5/2025 Jones Mawn
Subcommittee
THE CHANGES ADOPTED BY THE Made technical changes which conformed the House Bill to the Senate Bill.
COMMITTEE:
Insurance & Banking Lloyd Herrera
Subcommittee
Judiciary Committee
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THIS BILL ANALYSIS HAS BEEN UPDATED TO INCORPORATE ALL OF THE CHANGES DESCRIBED ABOVE.
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53 A procedural law merely establishes the means and methods for applying or enforcing existing duties or rights. A remedial law confers or
changes a remedy, i.e., the means employed in enforcing an existing right or in redressing an injury. A substantive law creates, alters, or
impairs existing substantive rights. Windom v. State, 656 So. 2d 432 (Fla. 1995); St. John’s Village I, Ltd. v. Dept. of State, 497 So. 2d 990 (Fla.
5th DCA 1986); McMillen v. State Dept. of Revenue, 74 So. 2d 1234 (Fla. 1st DCA 1999).
54 State Farm Mutual Automobile Ins. Co. v. Laforet, 658 So. 2d 55 (Fla. 1995).
55 Menendez v. Progressive Exp. Ins. Co., Inc., 35 So. 3d 873 (Fla. 2010).
56 L. Ross, Inc. v. R.W. Roberts Const. Co., 481 So. 2d 484 (Fla. 1986).
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10
F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
CS/HB 385 2025
1 A bill to be entitled
2 An act relating to trusts; amending s. 736.04117,
3 F.S.; revising the definition of the term "authorized
4 trustee"; revising how an authorized trustee may
5 exercise the power to invade principal as an
6 authorized trustee administering a trust; providing
7 that notice of such exercise by an authorized trustee
8 is not a trust disclosure document; providing that a
9 trust disclosure document may not commence a
10 limitations period unless such trust disclosure
11 document is provided after the effective date of the
12 exercise of the power to invade principal by an
13 authorized trustee; providing applicability; amending
14 s. 736.08125, F.S.; providing an exception with regard
15 to protection of successor trustees; creating s.
16 736.10085, F.S.; barring certain actions initiated by
17 specified parties against prior trustees; creating s.
18 736.1110, F.S.; providing that property devised to or
19 from a revocable trust which is devised, given, or
20 distributed to a donee by a settlor during the
21 settlor's lifetime is treated as a satisfaction of
22 devise to that donee if certain criteria are met;
23 providing that property distributed or given to a
24 devisee during a settlor's lifetime is to be valued at
25 the time the devisee came into possession or enjoyment
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26 of the property, or at the time of the death of the
27 settlor, whichever occurs first; providing
28 applicability; amending s. 736.1502, F.S.; revising
29 the definitions of the terms "community property" and
30 "community property trust"; amending s. 736.151, F.S.;
31 providing that homestead property transferred by one
32 or both settlor spouses to a community property trust
33 will not be treated as a change of ownership for the
34 purposes of reassessing the property; providing that
35 such transfer qualifies as a change or transfer of
36 legal or equitable title between spouses; providing
37 construction and retroactive application; providing an
38 effective date.
39
40 Be It Enacted by the Legislature of the State of Florida:
41
42 Section 1. Paragraph (b) of subsection (1), paragraph (a)
43 of subsection (2), subsection (3), paragraph (a) of subsection
44 (4), and paragraph (d) of subsection (8) of section 736.04117,
45 Florida Statutes, are amended, and subsection (12) is added to
46 that section, to read:
47 736.04117 Trustee's power to invade principal in trust.—
48 (1) DEFINITIONS.—As used in this section, the term:
49 (b) "Authorized trustee" means a trustee, other than the
50 settlor or a beneficiary, who has the power to invade the
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51 principal of a trust. For the purposes of this section, an
52 authorized trustee will not be considered a settlor of a second
53 trust, even if the authorized trustee created the trust
54 instrument governing the second trust or made a distribution of
55 assets from the first trust to the second trust. In determining
56 settlor intent with respect to a second trust or a modification
57 of the first trust, the intent of a settlor of the first trust,
58 a settlor of the second trust, or the authorized trustee may be
59 considered.
60 (2) DISTRIBUTION FROM FIRST TRUST TO SECOND TRUST WHEN
61 AUTHORIZED TRUSTEE HAS ABSOLUTE POWER TO INVADE.—
62 (a) Unless a trust instrument expressly provides
63 otherwise, an authorized trustee who has absolute power under
64 the terms of the trust to invade its principal, referred to in
65 this section as the "first trust," to make current distributions
66 to or for the benefit of one or more beneficiaries may instead
67 exercise such power by modifying the terms of the first trust or
68 by appointing all or part of the principal of the trust subject
69 to such power in favor of a trustee of one or more other trusts,
70 whether created under the same trust instrument as the first
71 trust or a different trust instrument, including a trust
72 instrument created for the purposes of exercising the power
73 granted by this section, each referred to in this section as the
74 "second trust," for the current benefit of one or more of such
75 beneficiaries only if:
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76 1. The beneficiaries of the second trust include only
77 beneficiaries of the first trust; and
78 2. The second trust does not reduce any vested interest.
79 (3) DISTRIBUTION FROM FIRST TRUST TO SECOND TRUST WHEN
80 AUTHORIZED TRUSTEE DOES NOT HAVE ABSOLUTE POWER TO INVADE.—
81 Unless the trust instrument expressly provides otherwise, an
82 authorized trustee who has a power, other than an absolute
83 power, under the terms of a first trust to invade principal to
84 make current distributions to or for the benefit of one or more
85 beneficiaries may instead exercise such power by modifying the
86 terms of the first trust or by appointing all or part of the
87 principal of the first trust subject to such power in favor of a
88 trustee of one or more second trusts. If the authorized trustee
89 exercises such power:
90 (a) The second trusts, in the aggregate, must shall grant
91 each beneficiary of the first trust beneficial interests in the
92 second trusts which are substantially similar to the beneficial
93 interests of the beneficiary in the first trust.
94 (b) If the first trust grants a power of appointment to a
95 beneficiary of the first trust, the second trust must shall
96 grant such power of appointment in the second trust to such
97 beneficiary, and the class of permissible appointees must shall
98 be the same as in the first trust.
99 (c) If the first trust does not grant a power of
100 appointment to a beneficiary of the first trust, the second
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101 trust may not grant a power of appointment in the second trust
102 to such beneficiary.
103 (d) Notwithstanding paragraphs (a), (b), and (c), the term
104 of the second trust may extend beyond the term of the first
105 trust, and, for any period after the first trust would have
106 otherwise terminated, in whole or in part, under the provisions
107 of the first trust, the trust instrument of the second trust
108 may, with respect to property subject to such extended term:
109 1. Include language providing the trustee with the
110 absolute power to invade the principal of the second trust
111 during such extended term; and
112 2. Create a power of appointment, if the power holder is a
113 current beneficiary of the first trust, or expand the class of
114 permissible appointees in favor of which a power of appointment
115 may be exercised.
116 (4) DISTRIBUTION FROM FIRST TRUST TO SUPPLEMENTAL NEEDS
117 TRUST.—
118 (a) Notwithstanding subsections (2) and (3), unless the
119 trust instrument expressly provides otherwise, an authorized
120 trustee who has the power under the terms of a first trust to
121 invade the principal of the first trust to make current
122 distributions to or for the benefit of a beneficiary with a
123 disability may instead exercise such power by modifying the
124 terms of the first trust or by appointing all or part of the
125 principal of the first trust in favor of a trustee of a second
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126 trust that is a supplemental needs trust if:
127 1. The supplemental needs trust benefits the beneficiary
128 with a disability;
129 2. The beneficiaries of the second trust include only
130 beneficiaries of the first trust; and
131 3. The authorized trustee determines that the exercise of
132 such power will further the purposes of the first trust.
133 (8) NOTICE.—
134 (d) The authorized trustee's notice under this subsection
135 is not a trust disclosure document as defined in s. 736.1008(4)
136 and does not limit the right of any beneficiary to object to the
137 exercise of the authorized trustee's power to invade principal
138 except as otherwise provided in other applicable provisions of
139 this code. With respect to the exercise of the authorized
140 trustee's power to invade principal, such trust disclosure
141 document will not commence a limitations period unless the trust
142 disclosure document is provided after the effective date of the
143 exercise of such power to invade principal by the authorized
144 trustee.
145 (12) APPLICATION.—This section applies to all trusts that
146 are governed by the laws of this state or that have a principal
147 place of administration within this state.
148 Section 2. Subsection (3) of section 736.08125, Florida
149 Statutes, is amended to read:
150 736.08125 Protection of successor trustees.—
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151 (3) Except as provided in s. 736.10085, nothing in this
152 section does not affect affects any liability of the prior
153 trustee or the right of the successor trustee or any beneficiary
154 to pursue an action or claim against the prior trustee.
155 Section 3. Section 736.10085, Florida Statutes, is created
156 to read:
157 736.10085 Claims against former trustees.—An action or
158 claim by a successor trustee or other person acting on behalf of
159 the trust against a prior trustee is barred to the same extent
160 that the action or claim would be barred if brought by the
161 beneficiary whose interests are represented by the successor
162 trustee or other person acting on behalf of the trust.
163 Section 4. Section 736.1110, Florida Statutes, is created
164 to read:
165 736.1110 Ademption by satisfaction.—
166 (1) Property devised to or from a revocable trust which a
167 settlor gave to a donee during the settlor's lifetime or which
168 is distributed from a revocable trust to a donee during the
169 settlor's lifetime is to be treated as a satisfaction of a
170 devise to that donee, in whole or in part, upon the settlor's
171 death, if any of the following circumstances applies:
172 (a) The trust instrument provides for the deduction of the
173 lifetime gift or distribution.
174 (b) The settlor or the trustee of the revocable trust
175 declares in a contemporaneous writing that the gift or
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176 distribution is to be deducted from the devise or is in
177 satisfaction of the devise.
178 (c) The devisee acknowledges in writing that the gift or
179 distribution is in satisfaction of the devise.
180 (2) For purposes of part satisfaction, property
181 distributed or given during the settlor's lifetime is valued at
182 the time the devisee came into possession or enjoyment of the
183 property or at the time of the death of the settlor, whichever
184 occurs first.
185 (3) This section applies to revocable trusts that become
186 irrevocable on or after July 1, 2025.
187 Section 5. Subsections (1) and (2) of section 736.1502,
188 Florida Statutes, are amended to read:
189 736.1502 Definitions.—Unless the context otherwise
190 requires, as used in this part:
191 (1) "Community property" means the property and the
192 appreciation of and income from the property owned by a
193 qualified trustee of a community property trust during the
194 marriage of the settlor spouses. The property owned by a
195 community property trust pursuant to this part and the
196 appreciation of and income from such property are shall be
197 deemed to be community property for purposes of general law.
198 (2) "Community property trust" means an express trust that
199 complies with s. 736.1503 and is created, amended, restated, or
200 modified on or after July 1, 2021.
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201 Section 6. Subsection (3) is added to section 736.151,
202 Florida Statutes, to read:
203 736.151 Homestead property.—
204 (3) A transfer of homestead property by one or both of the
205 settlor spouses to a community property trust will not be
206 treated as a change of ownership for purposes of reassessing the
207 property and instead qualifies as a change or transfer of legal
208 or equitable title between spouses as described in s.
209 193.155(3)(a)2.
210 Section 7. The amendments made by this act to ss.
211 736.04117, 736.1502, and 736.151, Florida Statutes, are remedial
212 and apply to trusts created before, on, or after the effective
213 date of this act.
214 Section 8. This act shall take effect upon becoming a law.
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INSURANCE & BANKING SUBCOMMITTEE
HB 385 by Rep. Oliver
Trusts
AMENDMENT SUMMARY
March 12, 2025
Amendment 1 by Rep. Oliver (Line 58): The amendment makes technical changes to conform
with the Senate version.
COMMITTEE/SUBCOMMITTEE AMENDMENT
Bill No. HB 385 (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: Civil Justice & Claims
2 Subcommittee
3 Representative Oliver offered the following:
4
5 Amendment (with title amendment)
6 Remove lines 146-222 and insert:
7 (12) APPLICATION.—This section applies to all trusts that
8 are governed by the laws of this state or that have a principal
9 place of administration within this state.
10 Section 2. Subsection (3) of section 736.08125, Florida
11 Statutes, is amended to read:
12 736.08125 Protection of successor trustees.—
13 (3) Except as provided in s. 736.10085, nothing in this
14 section does not affect affects any liability of the prior
15 trustee or the right of the successor trustee or any beneficiary
16 to pursue an action or claim against the prior trustee.
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Page 1 of 4
COMMITTEE/SUBCOMMITTEE AMENDMENT
Bill No. HB 385 (2025)
Amendment No. 1
17 Section 3. Section 736.10085, Florida Statutes, is created
18 to read:
19 736.10085 Claims against former trustees.—An action or
20 claim by a successor trustee or other person acting on behalf of
21 the trust against a prior trustee is barred to the same extent
22 that the action or claim would be barred if brought by the
23 beneficiary whose interests are represented by the successor
24 trustee or other person acting on behalf of the trust.
25 Section 4. Section 736.1110, Florida Statutes, is created
26 to read:
27 736.1110 Ademption by satisfaction.—
28 (1) Property devised to or from a revocable trust which a
29 settlor gave to a donee during the settlor's lifetime or which
30 is distributed from a revocable trust to a donee during the
31 settlor's lifetime is to be treated as a satisfaction of a
32 devise to that donee, in whole or in part, upon the settlor's
33 death, if any of the following circumstances applies:
34 (a) The trust instrument provides for the deduction of the
35 lifetime gift or distribution.
36 (b) The settlor or the trustee of the revocable trust
37 declares in a contemporaneous writing that the gift or
38 distribution is to be deducted from the devise or is in
39 satisfaction of the devise.
40 (c) The devisee acknowledges in writing that the gift or
41 distribution is in satisfaction of the devise.
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COMMITTEE/SUBCOMMITTEE AMENDMENT
Bill No. HB 385 (2025)
Amendment No. 1
42 (2) For purposes of part satisfaction, property
43 distributed or given during the settlor's lifetime is valued at
44 the time the devisee came into possession or enjoyment of the
45 property or at the time of the death of the settlor, whichever
46 occurs first.
47 (3) This section applies to revocable trusts that become
48 irrevocable on or after July 1, 2025.
49 Section 5. Subsections (1) and (2) of section 736.1502,
50 Florida Statutes, are amended to read:
51 736.1502 Definitions.—Unless the context otherwise
52 requires, as used in this part:
53 (1) "Community property" means the property and the
54 appreciation of and income from the property owned by a
55 qualified trustee of a community property trust during the
56 marriage of the settlor spouses. The property owned by a
57 community property trust pursuant to this part and the
58 appreciation of and income from such property are shall be
59 deemed to be community property for purposes of general law.
60 (2) "Community property trust" means an express trust that
61 complies with s. 736.1503 and is created, amended, restated, or
62 modified on or after July 1, 2021.
63 Section 6. Subsection (3) is added to section 736.151,
64 Florida Statutes, to read:
65 736.151 Homestead property.—
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COMMITTEE/SUBCOMMITTEE AMENDMENT
Bill No. HB 385 (2025)
Amendment No. 1
66 (3) A transfer of homestead property by one or both of the
67 settlor spouses to a community property trust will not be
68 treated as a change of ownership for purposes of reassessing the
69 property and instead qualifies as a change or transfer of legal
70 or equitable title between spouses as described in s.
71 193.155(3)(a)2.
72 Section 7. The amendments made by this act to ss.
73 736.04117, 736.1502, and 736.151, Florida Statutes, are remedial
74 and apply to trusts created before, on, or after the effective
75 date of this act.
76
77 -----------------------------------------------------
78 T I T L E A M E N D M E N T
79 Remove lines 37-39 and insert:
80 construction and retroactive application; providing an
81 effective date.
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HB 839
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 839 COMPANION BILL: None
TITLE: Insurance Overpayment Claims Submitted to LINKED BILLS: None
Psychologists RELATED BILLS: SB 944 (Davis)
SPONSOR(S): Booth
Committee References
Insurance & Banking Health Care Facilities & Systems Commerce
SUMMARY
Effect of the Bill:
By default, under Florida law, health insurers have 30 months after rendering payment to a provider to submit a
claim for overpayment. The bill reduces the 30-month period to 12 months for overpayment claims submitted to
licensed psychologists provided on or after January 1, 2026.
The bill adds licensed psychologists to a list of providers that already enjoy the shortened overpayment claim
window under Florida law. Existing law applies the 12-month period for overpayment claims to several licensed
providers (chiropractors, podiatrists, osteopaths, certain physicians and dental surgeons).
Fiscal or Economic Impact:
Insurers may recover less from overpaid claims to psychologists due to the reduced overpayment claim period. The
effect on premiums is indeterminate.
JUMP TO SUMMARY ANALYSIS RELEVANT INFORMATION BILL HISTORY
ANALYSIS
EFFECT OF THE BILL:
The bill adds psychiatrists licensed under ch. 490, F.S., to a list of licensed providers that enjoy a reduced time
period for insurers to submit claims for overpayment. Under the reduced time period, claims for overpayment
must be submitted to the provider within 12 months, rather than the standard 30-month period.
The changes in the bill apply to claims for services provided on or after January 1, 2026.
FISCAL OR ECONOMIC IMPACT:
PRIVATE SECTOR:
Insurers may recover less from overpaid claims to psychologists due to the reduced overpayment claim period.
The effect on premiums is indeterminate.
RELEVANT INFORMATION
SUBJECT OVERVIEW:
Health Insurer Review of Claims Overpayment
Subsection (6) of s. 627.6131, F.S., contains the process by which a health insurer may make a claim for
overpayment against a provider to whom it rendered payment. The insurer must send a written or electronic
statement specifying the basis for the retroactive denial or payment adjustment to the provider of the specific
STORAGE NAME: h0839.IBS
DATE: 3/12/2025
1
provider claim(s) for which the overpayment is submitted. Often, overpayment claims are the result of a
retroactive review or audit of coverage decisions and payment levels.
If the overpayment is not related to fraud, the health insurer must submit its claim for overpayment within 30
months after the insurer paid the claim. After receiving the claim for overpayment, the provider has 40 days in
which to pay, deny, or contest the claim. A contested claim for overpayment must be paid or denied by the provider
within 120 days after receipt. If, after 140 days, the provider has not paid or denied the overpayment claim, an
uncontestable obligation is placed on the provider to pay the insurer’s claim. A provider that chooses to deny or
contest an insurer’s claim must notify the insurer in writing of the provider’s decision within 35 days after the
provider received the claim for overpayment. If the claim is contested, the provider must request additional
information, which the insurer has 35 days to give the provider after receiving the request. After receiving the
additional information, the provider has 45 days to pay or deny the claim.
Subsection (18) of s. 627.6131, F.S., provides an exception. Claims for overpayment must be submitted within 12
months, rather than the usual 30-month period, to certain providers. Specifically, the exception applies to
overpayment claims submitted to physicians licensed under ch. 458, F.S., osteopaths licensed under ch. 459, F.S.,
chiropractors licensed under ch. 460, F.S., podiatrists licensed under ch. 461, F.S., and (for oral surgery only) dental
surgeons licensed under ch. 466, F.S.
BILL HISTORY
STAFF
DIRECTOR/ ANALYSIS
COMMITTEE REFERENCE ACTION DATE POLICY CHIEF PREPARED BY
IInsurance & Banking Lloyd Schenk
Subcommittee
Health Care Facilities & Systems
Subcommittee
Commerce Committee
JUMP TO SUMMARY ANALYSIS RELEVANT INFORMATION BILL HISTORY
2
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 839 2025
1 A bill to be entitled
2 An act relating to insurance overpayment claims
3 submitted to psychologists; amending s. 627.6131,
4 F.S.; requiring insurance overpayment claims submitted
5 to psychologists to be submitted within a specified
6 timeframe; providing applicability; providing an
7 effective date.
8
9 Be It Enacted by the Legislature of the State of Florida:
10
11 Section 1. Subsection (18) of section 627.6131, Florida
12 Statutes, is amended to read:
13 627.6131 Payment of claims.—
14 (18) Notwithstanding the 30-month period provided in
15 subsection (6), all claims for overpayment submitted to a
16 provider licensed under chapter 458, chapter 459, chapter 460,
17 chapter 461, or chapter 466, or chapter 490 must be submitted to
18 the provider within 12 months after the health insurer's payment
19 of the claim. A claim for overpayment may not be permitted
20 beyond 12 months after the health insurer's payment of a claim,
21 except that claims for overpayment may be sought beyond that
22 time from providers convicted of fraud pursuant to s. 817.234.
23 Section 2. The amendments made by this act to s.
24 627.6131(18), Florida Statutes, apply to claims for services
25 provided on or after January 1, 2026.
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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 839 2025
26 Section 3. This act shall take effect July 1, 2025.
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hb839-00
INSURANCE & BANKING SUBCOMMITTEE
HB 839 by Rep. Booth
Insurance Overpayment Claims Submitted to Psychologists
AMENDMENT SUMMARY
March 13, 2025
Amendment 1 by Rep. Booth (Lines 23-25): The amendment applies the same change to
health maintenance organizations (HMOs) as the original bill provided for health insurers.
COMMITTEE/SUBCOMMITTEE AMENDMENT
Bill No. HB 839 (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 Booth offered the following:
4
5 Amendment (with title amendment)
6 Remove lines 23-25 and insert:
7 Section 2. Subsection (16) of section 641.3155, Florida
8 Statutes, is amended to read:
9 641.3155 Prompt payment of claims.—
10 (16) Notwithstanding the 30-month period provided in
11 subsection (5), all claims for overpayment submitted to a
12 provider licensed under chapter 458, chapter 459, chapter 460,
13 chapter 461, or chapter 466, or chapter 490 must be submitted to
14 the provider within 12 months after the health maintenance
15 organization's payment of the claim. A claim for overpayment may
16 not be permitted beyond 12 months after the health maintenance
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Page 1 of 2
COMMITTEE/SUBCOMMITTEE AMENDMENT
Bill No. HB 839 (2025)
Amendment No. 1
17 organization's payment of a claim, except that claims for
18 overpayment may be sought beyond that time from providers
19 convicted of fraud pursuant to s. 817.234.
20 Section 3. The amendments made by this act to ss.
21 627.6131(18) and 641.3155(16), Florida Statutes, apply to claims
22 for services provided on or after January 1, 2026.
23
24
25 -----------------------------------------------------
26 T I T L E A M E N D M E N T
27 Remove lines 3-4 and insert:
28 submitted to psychologists; amending ss. 627.6131 and
29 641.3155, F.S.; requiring that insurance overpayment
30 claims submitted
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HB 1097
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 1097 COMPANION BILL: None
TITLE: Insurance Research LINKED BILLS: None
SPONSOR(S): Canady RELATED BILLS: SB 1140 (Trumbull)
Committee References
Insurance & Banking Budget Commerce
SUMMARY
Effect of the Bill:
The bill renames the existing “Florida Catastrophic Storm Risk Management Center” to the “Florida Center for
Excellence in Insurance and Risk Management” (Center) located at Florida State University. The bill expands the
purpose, duties, and interests of the Center. The bill requires the Center to collaborate with the Office of Insurance
Regulation (OIR) on a variety of tasks.
The bill transfers all of the duties, powers, functions, funds, existing contracts, and other issues associated with or
related to the public hurricane loss production model from Florida International University to Florida State
University.
The bill provides recurring and nonrecurring funds to Florida State University to establish and maintain the Center.
Fiscal or Economic Impact:
See Section on Fiscal or Economic Impact.
JUMP TO SUMMARY ANALYSIS RELEVANT INFORMATION BILL HISTORY
ANALYSIS
EFFECT OF THE BILL:
The bill renames Florida State University’s Florida Catastrophic Storm Risk Management Center to the Florida
Center for Excellence in Insurance and Risk Management (Center). The bill expands the scope of the Center from
catastrophic storms to broadening its purpose to insurance and risk management.
The bill changes the purpose of the Center:
to develop, conduct, and evaluate accurate and timely research issues related to Florida’s insurance market
and risk management;
to assist the Legislature in developing and evaluating evidence-based policy options and making
recommendations related to insurance and risk management in Florida;
to identify emerging issues in the insurance market; and
to provide insight regarding accessibility and affordability of insurance products.
The bill does not change the Center’s purpose to assist in identifying and developing education and research grant
funding opportunities among higher education institution in this state and the private sector.
The bill aligns the Center’s purpose consistent with this change. The Center is to conduct research responsive to
inquiries from the President of the Senate and the Speaker. The bill permits the Center to conduct research upon
the request of OIR. (Section 1).
The Center and OIR
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1
Conducting Research
The bill requires the Center to cooperate with the OIR on conducting research. The bill provides that areas of
research may include:
storm forecasting and loss modeling;
Florida’s insurance-related consumer protections;
insurer claims-handling and adjudication practices in this state in comparison with insurer practices in
other states;
cost factors in the reinsurance, catastrophe bond, and insurance-linked securities markets;
the Florida Hurricane Catastrophe Fund;
the effectiveness of the My Safe Florida Home Program;
risk management strategies, particularly for catastrophic risk; or
health insurance, life insurance, workers' compensation, motor vehicle insurance, or any other type of
insurance sold within this state. (Section 1).
Producing Report
The bill requires the Center to collaborate with OIR to create and to produce a report examining the property
insurance market in Florida by forecasting what the market will look like in 1 year, 5 years, 10 years, and 20 years.
The report must include recommendations on improving the availability and affordability of property insurance,
and this state’s preparation and response to catastrophic events. (Section 1).
The bill requires the Center to publish the initial report on or before January 1, 2026, and update the report at least
every 2 years. (Section 1).
Developing a Program to Encourage Students to Work for Public Sector
The bill requires the Center to collaborate with OIR and the Actuarial Science Program of the FSU Department of
Mathematics to develop a program to encourage actuarial science students to work in the public sector in the field
of risk management insurance. (Section 1).
The Florida Public Hurricane Loss Model
The bill mandates OIR to contract with the Center to manage the public hurricane loss model, and the Center to
work with other entities and universities, including Florida International University (FIU), to develop the public
model. The bill removes FIU as the lead institution for developing and operating the public model, and replaces
parts in the statutes to reflect FSU’s Center instead of FIU. (Section 2).
The bill transfers1 all powers, duties, functions, records, offices, personnel, associated administrative support
positions, property, pending issues, existing contracts, administrative authority, administrative rules, and
unexpended balances of appropriations, allocations, and any other funds relating to the public hurricane loss
projection model from FIU to FSU. (Section 3).
Annual Report on Hurricane Loss data and Associated Exposure Data
The bill requires the FSU Center instead of FIU to annually publish a report summarizing the hurricane loss data
and associated exposure data connected2 to and collected from residential property insurers and licensed rating
and advisory organizations. The bill directs the FSU Center to annually submit such report on or before October 1st
to the Governor, the President of the Senate, and the Speaker of the House of Representatives. (Section 4).
1The bill states that such transfer is a type two transfer, as defined in s. 20.06(2), F.S. A type two transfer allows the state to
move a program and functions of an existing agency to another agency.
2 S. 627.06292(2) defines “loss data and associated exposure data” as the type, age, wind mitigation features, and location of
each property insured; the amount and type of coverage written on each of those properties; the amount, date, and type of
damage paid for by the insurer on each property; and the amount of any reserves held by an insurer for future payments or
expenses on damages associated with the date or dates of occurrence of hurricanes.
JUMP TO SUMMARY ANALYSIS RELEVANT INFORMATION BILL HISTORY
2
FISCAL OR ECONOMIC IMPACT:
STATE GOVERNMENT:
For the 2025-2026 fiscal year, the bill appropriates $5 million in recurring funds and $1.5 million in nonrecurring
funds from the General Revenue Fund to FSU to establish and maintain the Center.
The bill has a positive fiscal impact on FSU by providing funds in order to establish and maintain the Center. In
addition, the bill may have a positive fiscal impact on FSU because more students may enroll at FSU due to the
Center’s partnership with the State. There may be a negative fiscal impact on FIU because the bill transfers the
public model to the FSU Center which will result in a loss of funds.
RELEVANT INFORMATION
SUBJECT OVERVIEW:
Office of Insurance Regulation
The Office of Insurance Regulation (OIR) regulates specified insurance products, insurers, and other risk bearing
entities in Florida.3 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.4 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.5 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.6
The OIR is also authorized to conduct market conduct examinations to determine compliance with applicable
provisions of the Insurance Code.7
Florida Catastrophic Storm Risk Management Center
In 2007, the Florida Legislature created the Florida Catastrophic Storm Management Center. The Florida
Catastrophic Storm Management Center is housed within the Department of Risk Management in the College of
Business located at FSU.8 The Florida Catastrophic Storm Management Center’s primary focus is to support the
state’s ability to prepare for, respond to, and recover from catastrophic storms. The support the Florida
Catastrophic Storm Management Center provides includes:9
Coordinating and disseminating research efforts that are expected to have an immediate impact on policy
and practices related to catastrophic storm preparedness.
Coordinating and disseminating information related to catastrophic storm risk management, including but
not limited to research and information that benefits business, consumers and public policy makers.
Facilitating Florida’s preparedness and responsiveness to catastrophic storms and collaborating with other
public and private institutions.
Creating and promoting studies that enhance the educational options available to risk management and
insurance students.
Publishing and disseminating findings primarily related to risk management.
3 S. 20.121(3)(a), F.S.
4 S. 624.418, F.S.
5 S. 624.316(1)(a), F.S.
6 S. 624.318(2), F.S.
7 The Code is comprised of chs. 624-632, 634-636, 641, 642, 648, and 651, F.S. See S. 624.3161, F.S.
8 S. 1004.647, F.S.
9 Id.
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3
Organizing and sponsoring conferences, symposiums, and workshops to educate consumers and
policymakers.
The Florida Public Hurricane Loss Model
In 2000, the Florida Legislature authorized the creation of a public hurricane loss projection model (public model)
and the OIR contracted with FIU to develop the model in 2001.10 In March 2006 the public model was activated and
in August 2007 it was first found acceptable by the Florida Commission on Hurricane Loss Projection Methodology.
The public model was built to assess hurricane risk and predict annual expected insured residential losses in
Florida for an insurance company, zip code, county, or for the entire state. The OIR uses the public model as an
independent tool to facilitate its review of the reasonableness of property insurance rates proposed by insurers.
Without the public model, the OIR’s basis for rate determinations would be each insurer’s own selected private
model and corresponding loss data and the OIR would not have a way to corroborate the accuracy of this data. The
FIU is the lead institution for developing and operating the public model, but it collaborates with several other
public and private Florida universities (including FSU, the Florida Institute of Technology, the University of Florida,
and the University of Miami), University of Missouri-Kansas City, and the U.S. National Oceanic and Atmospheric
Administration.11
Annual Report on Hurricane Loss data and Associated Exposure Data
Currently, FIU is required to annually publish a report summarizing the hurricane loss data and associated
exposure data connected to and collected from residential property insurers and licensed rating and advisory
organizations. FIU must annually submit such report on or before October 1st to the Governor, the President of the
Senate, and the Speaker of the House of Representatives. The report must include a summary of the data supplied
by residential property insurers and licensed rating and advisory organizations from September 1 of the prior year
to August 31st of the current year, and must include certain information.12
FIU International Hurricane Research Center
FIU has a specific center that focuses on minimizing hurricane damage and loss of life. The International Hurricane
Center studies include: 13
household mitigation and evacuation;
storm hazard and vulnerability mapping, long-term community recovery; and
economic loss modeling.
Previously, the National Science Foundation (NSF), the Federal Emergency Agency (FEMA), OIR, and the Florida
Division of Emergency Management (DEM) have assisted with these studies. 14 The International Hurricane Center
has four research laboratories15 focused on different aspects of hurricane damage and resiliency.
OTHER RESOURCES:
FIU Hurricane Research Center
Florida Public Hurricane Loss Model
10 Summary information on the Florida Public Hurricane Loss Projection Model obtained from Office of Program Policy
Analysis and Government Accountability. Report No. 11-25: Steps Could Be Taken to Reduce the Public Hurricane Loss
Projection Model’s Reliance on State Funding (December 2011). Available at:
http://www.oppaga.state.fl.us/MonitorDocs/Reports/pdf/1125rpt.pdf.
11 What Is the FPHLM? Florida Public Hurricane Loss Model, Florida International University International Hurricane Research
Center, https://fphlm.cs.fiu.edu/ (last visited Mar. 6, 2025).
12 S. 627.06292(3), F.S.
13 History, International Hurricane Research Center, Florida International University, www.ihrc.fiu.edu/about/history/ (last
visited Mar. 7, 2025).
14 Id.
15 The four research laboratories include the laboratory for coastal research, laboratory for insurance, financial and economic
research, laboratory for social science research, and laboratory for wind engineering research.
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
Budget Committee
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 1097 2025
1 A bill to be entitled
2 An act relating to insurance research; amending s.
3 1004.647, F.S.; renaming the Florida Catastrophic
4 Storm Risk Management Center to the Florida Center for
5 Excellence in Insurance and Risk Management; revising
6 the purpose of the center; revising the duties of the
7 center; providing areas of interest for research;
8 requiring the center to collaborate with the Office of
9 Insurance Regulation to produce an annual report
10 analyzing the property insurance market in this state;
11 requiring that the report be published by a specified
12 date and updated at least biennially; requiring the
13 center to develop a program with the office and the
14 Actuarial Science Program at the Florida State
15 University for a specified purpose; requiring the
16 center to use the public hurricane loss projection
17 model when necessary; requiring the center to conduct
18 research in response to inquiries from the
19 Legislature; authorizing the center to conduct
20 research in response to requests from the office;
21 amending s. 627.06281, F.S.; requiring the office to
22 contract with the center to manage the public
23 hurricane loss projection model; requiring the center
24 to update the model; providing that certain fees
25 charged for access and use of the model do not apply
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26 to the Florida Center for Excellence in Insurance and
27 Risk Management; providing for a type two transfer of
28 the public hurricane loss projection model from
29 Florida International University to Florida State
30 University; amending s. 627.06292, F.S.; making
31 conforming changes; providing appropriations;
32 providing an effective date.
33
34 Be It Enacted by the Legislature of the State of Florida:
35
36 Section 1. Section 1004.647, Florida Statutes, is amended
37 to read:
38 1004.647 Florida Center for Excellence in Insurance and
39 Catastrophic Storm Risk Management Center.—The Florida Center
40 for Excellence in Insurance and Catastrophic Storm Risk
41 Management Center is created at the Florida State University,
42 College of Business, Department of Risk Management. The purpose
43 of the center is to develop, conduct, evaluate, promote, and
44 disseminate accurate and timely research on issues related to
45 this state's insurance market and risk management, to assist the
46 Legislature in developing and evaluating evidence-based policy
47 options and making recommendations related to insurance and risk
48 management in this state, to identify emerging issues in the
49 insurance market, to provide insight regarding accessibility and
50 affordability of insurance products, catastrophic storm loss and
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51 to assist in identifying and developing education and research
52 grant funding opportunities among higher education institutions
53 in this state and the private sector. The purpose of the
54 activities of the center is to support the state's ability to
55 prepare for, respond to, and recover from catastrophic storms.
56 The center shall do all of the following:
57 (1) Conduct, coordinate, and disseminate research efforts
58 and information that would benefit businesses, consumers, and
59 public policy makers or that are expected to have an immediate
60 impact on policy and practices related to this state's insurance
61 markets or catastrophic event storm preparedness. The center
62 shall cooperate with the Office of Insurance Regulation in
63 conducting research. Areas of research may include:
64 (a) Storm forecasting and loss modeling;
65 (b) This state's insurance-related consumer protections;
66 (c) Insurer claims-handling and adjudication practices in
67 this state in comparison with insurer practices in other states;
68 (d) Cost factors in the reinsurance, catastrophe bond, and
69 insurance-linked securities markets;
70 (e) The resilience of building construction and mitigation
71 techniques;
72 (f) The Florida Hurricane Catastrophe Fund;
73 (g) The effectiveness of the My Safe Florida Home Program;
74 (h) Risk management strategies, particularly for
75 catastrophic risk; or
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76 (i) Health insurance, life insurance, workers'
77 compensation, motor vehicle insurance, or any other type of
78 insurance sold within this state.
79 (2) Collaborate with the Office of Insurance Regulation to
80 create a report analyzing the property insurance market in this
81 state, projecting the outlook for the property insurance market
82 over 1 year, 5 years, 10 years, and 20 years. The report must
83 include recommendations for improving the availability and
84 affordability of property insurance in this state and for
85 facilitating this state's preparedness for and responsiveness to
86 catastrophic events. The center shall work with the Office of
87 Insurance Regulation to produce the report. The office shall
88 cooperate with the center in providing data necessary to
89 complete the report. The center shall publish the initial report
90 on or before January 1, 2026, and update the report at least
91 once every 2 years. Coordinate and disseminate information
92 related to catastrophic storm risk management, including, but
93 not limited to, research and information that would benefit
94 businesses, consumers, and public policy makers. Areas of
95 interest may include storm forecasting, loss modeling, building
96 construction and mitigation, and risk management strategies.
97 Through its efforts, the center shall facilitate Florida's
98 preparedness for and responsiveness to catastrophic storms and
99 collaborate with other public and private institutions.
100 (3) Create and promote studies and opportunities that
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101 enhance the educational options available to risk management and
102 insurance students.
103 (4) Develop a program in collaboration with the Office of
104 Insurance Regulation and the Actuarial Science Program of the
105 Department of Mathematics at Florida State University to
106 encourage actuarial science students to practice in the public
107 sector in the fields of risk management and insurance.
108 (5) Publish and disseminate findings.
109 (6)(5) Organize and sponsor conferences, symposia, and
110 workshops to educate consumers and policymakers.
111 (7) Use the public hurricane loss projection model under
112 s. 627.06281 when needed to meet the center's obligations under
113 this section.
114 (8) Conduct research responsive to joint or individual
115 inquiries from the President of the Senate and the Speaker of
116 the House of Representatives regarding insurance or risk
117 management. The center may also conduct research responsive to
118 requests made by the Office of Insurance Regulation.
119 Section 2. Section 627.06281, Florida Statutes, is amended
120 to read:
121 627.06281 Public hurricane loss projection model;
122 reporting of data by insurers.—
123 (1) The Office of Insurance Regulation shall contract with
124 the Florida Center for Excellence in Insurance and Risk
125 Management to manage the public hurricane loss projection model
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126 developed under this section. The center shall cooperate with
127 other entities and universities, including Florida International
128 University, to develop and maintain the public model. The center
129 shall constantly evaluate and update the public model so that it
130 will have the same functionalities as other models approved by
131 the Florida Commission on Hurricane Loss Projection Methodology.
132 The center may use the public model, including all assumptions
133 and factors and all detailed loss results, for the purpose of
134 meeting its obligations under s. 1004.647. Within 30 days after
135 a written request for loss data and associated exposure data by
136 the office or the center Florida International University center
137 established to study mitigation, residential property insurers
138 and licensed rating and advisory organizations that compile
139 residential property insurance loss data shall provide loss data
140 and associated exposure data for residential property insurance
141 policies to the office or the Florida International University
142 center established to study mitigation, as directed by the
143 office, for the purposes of developing, maintaining, and
144 updating the a public model for hurricane loss projections. The
145 loss data and associated exposure data provided must shall be in
146 writing.
147 (2) The public model must be submitted to the Florida
148 Commission on Hurricane Loss Projection Methodology for review
149 under s. 627.0628 by March 1, 2007. The office may continue to
150 use the public model for its review of rate filings pursuant to
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151 ss. 627.062 and 627.351 until such time as the Florida
152 Commission on Hurricane Loss Projection Methodology determines
153 that the public model is not accurate or reliable pursuant to
154 the same process and standards as the commission uses for the
155 review of other hurricane loss projection models.
156 (3)(a) A residential property insurer may have access to
157 and use the public hurricane loss projection model, including
158 all assumptions and factors and all detailed loss results, for
159 the purpose of calculating rate indications in a rate filing and
160 for analytical purposes, including any analysis or evaluation of
161 the public model required under actuarial standards of practice.
162 (b) The fees charged for private sector access and use of
163 the public model must shall be the reasonable costs associated
164 with the operation and maintenance of the public model by the
165 office. Such fees do not apply to access and use of the public
166 model by the office or the Florida Center for Excellence in
167 Insurance and Risk Management.
168 Section 3. All powers, duties, functions, records,
169 offices, personnel, associated administrative support positions,
170 property, pending issues, existing contracts, administrative
171 authority, administrative rules, and unexpended balances of
172 appropriations, allocations, and any other funds relating to the
173 public hurricane loss projection model are transferred by a type
174 two transfer, as defined in s. 20.06(2), Florida Statutes, from
175 Florida International University to Florida State University.
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176 Section 4. Subsection (3) of section 627.06292, Florida
177 Statutes, is amended to read:
178 627.06292 Reports of hurricane loss data and associated
179 exposure data; public records exemption.—
180 (3) Each year, on October 1, the Florida State
181 International University center that develops, maintains, and
182 updates the public model for hurricane loss projections shall
183 publish a report summarizing loss data and associated exposure
184 data collected from residential property insurers and licensed
185 rating and advisory organizations. The Florida State
186 International University center shall submit the report
187 annually, on or before October 1, to the Governor, the President
188 of the Senate, and the Speaker of the House of Representatives.
189 (a) Such report must include a summary of the data
190 supplied by residential property insurers and licensed rating
191 and advisory organizations from September 1 of the prior year to
192 August 31 of the current year, and must include the following
193 information:
194 1. The total amount of insurance written by county.
195 2. The number of property insurance policies by county.
196 3. The number of property insurance policies by county and
197 by construction type.
198 4. The number of property insurance policies by county and
199 by decade of construction.
200 5. The number of property insurance policies by county and
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201 by deductible amount.
202 6. The number of property insurance policies by county and
203 by wind mitigation features when the information is supplied by
204 the residential property insurer or licensed rating and advisory
205 organization.
206 7. The total amount of hurricane losses by county and by
207 decade of construction.
208 8. The total amount of hurricane losses by county and by
209 deductible amount.
210 9. The total amount of hurricane losses by county and by
211 wind mitigation features when the information is supplied by the
212 residential property insurer or licensed rating and advisory
213 organization.
214 (b) Separate compilations of the data obtained shall be
215 presented in order to use the public model for calculating rate
216 indications and to update, validate, or calibrate the public
217 model. Additional detail and a description of the operation and
218 maintenance of the public model may be included in the report.
219 (c) The report may not contain any information that
220 identifies a specific insurer or policyholder.
221 Section 5. For the 2025-2026 fiscal year, the sum of $5
222 million in recurring funds and the sum of $1.5 million in
223 nonrecurring funds is appropriated from the General Revenue Fund
224 to the Florida State University for the purpose of establishing
225 and maintaining the Center for Excellence in Insurance and Risk
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226 Management.
227 Section 6. This act shall take effect July 1, 2025.
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