Meeting Packet — Florida House Commerce Committee, Insurance & Banking Subcommittee (March 20, 2025)
Summary
A meeting packet for the Insurance & Banking Subcommittee of the Florida House of Representatives Commerce Committee, meeting Thursday, March 20, 2025 in Morris Hall. The agenda lists HB 999 Gold and Silver Specie as Legal Tender by Bankson, HB 1231 Insurance Claims Payments to Physicians by Black, HB 1549 Financial Institutions by Maggard, HB 1551 Attorney Fee Awards in Insurance Actions by Cassel and HM 4063 Framework for a Sovereign Wealth Fund by Anderson. The HB 999 bill analysis states that the bill recognizes gold and silver coins ("specie") as legal tender in Florida, with an effective date of July 1, 2025. The packet also includes the text of HM 4063, a memorial urging Congress to establish a framework for a sovereign wealth fund.
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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“Meeting Packet — Florida House Commerce Committee, Insurance & Banking Subcommittee (March 20, 2025).”
Archived at Pandemic Darlings, https://pandemicdarlings.com/source-documents/2025-03-20-3289-insurance-banking-subcommittee-meeting-packets-fn-ibs-f3f302ffd5/
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Insurance & Banking Subcommittee
Thursday, March 20, 2025
2:00 PM - 5:00 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 20, 2025
2:00 pm – 5:00 pm
Morris Hall (17 HOB)
I. Call to Order
II. Roll Call
III. Welcome and Opening Remarks
IV. Consideration of the following bill(s):
HB 999 Gold and Silver Specie as Legal Tender by Bankson
HB 1231 Insurance Claims Payments to Physicians by Black
HB 1549 Financial Institutions by Maggard
HB 1551 Attorney Fee Awards in Insurance Actions by Cassel
HM 4063 Framework for a Sovereign Wealth Fund by Anderson
V. Closing Remarks
VI. Adjournment
214 House Office Building, 402 South Monroe Street, Tallahassee, Fl 32399-1300
(850) 717-4870
HB 999
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 999 COMPANION BILL: SB 132 (Rodriguez)
TITLE: Gold and Silver Specie as Legal Tender LINKED BILLS: None
SPONSOR(S): Bankson RELATED BILLS: None
Committee References
Insurance & Banking Ways & Means Commerce
SUMMARY
Effect of the Bill:
The bill recognizes gold and silver coins ("specie") as legal tender in Florida and establishes a regulatory
framework for their use in transactions. The bill exempts specie from personal property taxation and state tax
liability while allowing, but not requiring, government entities to accept it for payments. Additionally, the bill
includes privacy protections for users of precious metals-backed electronic payment systems and directs the Office
of Financial Regulation to set rules on security, insurance, and fraud prevention.
Fiscal or Economic Impact:
None
JUMP TO SUMMARY ANALYSIS RELEVANT INFORMATION BILL HISTORY
ANALYSIS
EFFECT OF THE BILL:
The bill recognizes gold and silver coins ("specie") as legal tender in Florida and establishes a regulatory
framework for the use of specie in transactions and payments. Additionally, the bill defines terms, including
"bullion," "bullion depository," "precious metals-backed electronic payment system," and "specie legal tender," and
sets requirements for bullion depositories, including accreditation by the London Bullion Market Association and
maintaining vault facilities in Florida. (Section 1).
The bill provides that specie legal tender is lawful money for the payment of debts, taxes, and fees if the
government entity consents and is capable of accepting such payments. It also prohibits taxing or regulating specie
as personal property, and prevents state tax liability for the purchase, sale, exchange, or conversion of specie.
However, acceptance of specie in transactions cannot be compelled unless otherwise required by the State
Constitution, law, or contract. (Section 1).
Further, the bill creates privacy protections for account holders using precious metals-backed electronic payment
systems, restricting the disclosure of personal and transactional data except with consent or under court order
with proper notice. (Section 1).
The bill directs the Office of Financial Regulation (OFR) to adopt rules relating to vendor payment options,
insurance of bullion deposits, physical storage requirements, security measures, allocation of account fees, and
fraud prevention. (Section 1).
The effective date of the bill is July 1, 2025. (Section 2).
STORAGE NAME: h0999.IBS
DATE: 3/19/2025
1
RULEMAKING:
The bill requires the OFR to adopt rules to implement provisions related to the operation of vendors and bullion
depositories, including provisions for insurance of deposits and security measures for the storage of bullion and
specie.1
Lawmaking is a legislative power; however, the Legislature may delegate a portion of such power to executive
branch agencies to create rules that have the force of law. To exercise this delegated power, an agency must
have a grant of rulemaking authority and a law to implement.
RELEVANT INFORMATION
SUBJECT OVERVIEW:
Legal Tender and Specie under Federal and State Law
Under Article I, Section 10, Clause 1 of the United States Constitution, states are prohibited from coining money but
are expressly authorized to "make gold and silver coin a tender in payment of debts."2 This provision authorizes
states to recognize gold and silver coin as legal tender for the payment of debts and taxes but prohibits states from
creating or issuing their own currencies or recognizing other forms of money as tender.3 In contrast, Article I,
Section 8, Clause 5 of the U.S. Constitution grants Congress the exclusive power to coin money and regulate its
value.4 However, Congress has not preempted state authority to recognize specie as legal tender for state and
private transactions.
Under 31 U.S.C. § 5103, only United States coins and currency (including Federal Reserve notes) are recognized as
legal tender for the payment of debts, public charges, taxes, and dues. Foreign gold or silver coins are not legal
tender for debts under federal law, though they may be lawfully bought, sold, and owned as commodities or
investment assets.5 However, a state may choose to recognize gold and silver coins as legal tender within its
jurisdiction, though such coins would not have national legal tender status.
Tax Treatment of Specie and Bullion
Federal Taxation
At the federal level, gold and silver coins and bullion are classified as "collectibles" under 26 U.S.C. § 408(m), and
gains from their sale are subject to a maximum long-term capital gains tax rate of 28%.6 The Internal Revenue Code
defines "collectible" to include "any metal or gem" and "any coin" not specifically exempted.7
Florida Taxation
Florida provides a limited sales tax exemption for sales of U.S. coins and currency and for foreign currency
transactions exceeding $500. 8 Additionally, Florida provides a limited sales tax exemption on the sale of gold,
silver, or platinum bullion, or any combination thereof, in a single transaction, is exempt when the total sales price
of such bullion exceeds $500.9 Depending on the form of the bullion and the nature of the transaction, sales of
bullion may be subject to state sales tax as tangible personal property.10 Florida law also does not provide a state-
level exemption for capital gains derived from the sale of gold and silver, as Florida does not impose a state income
tax11, and no specific exemption has been created for gains from precious metals. In addition, Florida law does not
1 The Office of Financial Regulation, Agency Analysis of 2025 HB 999, p. 2 (March 13, 2025).
2 U.S. Const. art. 1. § 10. Cl. 1.
3 Id.
4 U.S. Const. art. 1. § 8. Cl. 5.
5 31 U.S.C. § 5103
6 “Form S-3” Securities and Exchange Commission, 27. Feb. 2025, P. 42,
https://www.sec.gov/Archives/edgar/data/1690437/000149315225008435/forms-3.htm
7 26 U.S.C. § 408(m)(2)(A)–(D).
8 s. 212.05(1)(j), F.S.
9 s. 212.08(7)(ww), F.S.
10 s. 212.05(1)(a)1.a., F.S.
11 Art. VII, s. 5(a), Fla. Const.
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2
explicitly address whether precious metals should be classified as tangible personal property subject to ad valorem
taxation, although the statutory definition of tangible personal property includes "all goods, chattels, and other
articles of value... capable of manual possession.”12
Other States' Treatment of Specie and Bullion
Several states have adopted laws to recognize gold and silver as legal tender or to remove various tax barriers to
facilitate their use in commerce. These laws vary in scope and effect, ranging from simple tax exemptions to the
establishment of state-run bullion depositories.
Utah was the first state to recognize U.S.-minted gold and silver coins as legal tender through its Legal
Tender Act of 2011. Utah law also provides a tax exemption for capital gains derived from the sale or
exchange of gold and silver coins that are recognized as legal tender. In addition, Utah permits private firms
to operate accounts backed by physical precious metals, which allows individuals to conduct transactions
denominated in gold and silver.13
Texas has established a state-operated bullion depository, known as the Texas Bullion Depository, to
securely store precious metals for individuals, businesses, and governmental entities. The depository
provides secure storage and the ability for account holders to deposit and withdraw physical bullion.
Although Texas law enables secure in-state storage of precious metals, it does not authorize gold and silver
as official legal tender for payment of state taxes or other obligations.14
Wyoming enacted legislation in 2018 declaring gold and silver legal tender and exempting the sale of these
metals from state sales and use taxes. Wyoming law also prohibits the treatment of specie as taxable
tangible personal property, effectively removing several barriers to the private holding and use of gold and
silver for commerce.15
Arizona has removed state capital gains taxes on sales of precious metals and has authorized gold and
silver coins as legal tender for private transactions. Like Wyoming, Arizona's approach focuses on tax
treatment rather than establishing state-operated depositories or payment systems.16
Other states, such as Oklahoma, Louisiana, Kansas, and Indiana, have adopted various forms of tax exemptions
related to the sale or exchange of gold and silver bullion, though these laws do not necessarily recognize precious
metals as legal tender or create infrastructure to support their use as a medium of exchange.17
While these states have taken steps to encourage the use of gold and silver by removing tax barriers and
recognizing their status as lawful money in specific contexts, no state currently operates a fully integrated,
government-supported electronic payment system backed by physical precious metals that is recognized for
payment of all state taxes, fees, or other obligations. Most existing laws focus on facilitating private holding and
exchange of gold and silver, and on removing disincentives such as sales and capital gains taxes, rather than
creating comprehensive alternative currency systems.18
Precious Metals-Backed Electronic Payment Systems
Precious metals-backed electronic payment systems are digital platforms that allow users to store and transact
using units backed by physical precious metals, primarily gold and silver.19 These systems typically allow users to
12 s. 192.001(11)(d), F.S.
13 Utah Code §§ 59-1-1501 et seq.; H.B. 317 (2011). See also Bullion Feasibility Study: An Exploratory Review of Key Policy Considerations for
Implementing Gold and Silver Bullion as Legal Tender in the State of Florida, prepared for the Florida Department of Financial Services by
Guidehouse Inc., p. 122. February 28, 2025.
14 Tex. Gov’t Code § 2116; S.B. 483 (2015). See also Bullion Feasibility Study: An Exploratory Review of Key Policy Considerations for
Implementing Gold and Silver Bullion as Legal Tender in the State of Florida, prepared for the Florida Department of Financial Services by
Guidehouse Inc., p. 116. February 28, 2025.
15 Wyo. Stat. §§ 34-29-101 to 34-29-103; SF111 (2018). See also Bullion Feasibility Study: An Exploratory Review of Key Policy Considerations
for Implementing Gold and Silver Bullion as Legal Tender in the State of Florida, prepared for the Florida Department of Financial Services by
Guidehouse Inc., p. 128. February 28, 2025.
16 Ariz. Rev. Stat. § 43-1027. See also Bullion Feasibility Study: An Exploratory Review of Key Policy Considerations for Implementing Gold and
Silver Bullion as Legal Tender in the State of Florida, prepared for the Florida Department of Financial Services by Guidehouse Inc., p. 102.
February 28, 2025.
17 Id.
18 Id. at 14, 20, 22-23.
19 See generally H.B. 306, 65th Leg., Gen. Sess. (Utah 2025), https://le.utah.gov/Session/2025/bills/introduced/HB0306.pdf; Christian
Bender, A Gold Standard for the Internet? An Introductory Assessment, 11 Electronic Markets p. 123 (2001),
JUMP TO SUMMARY ANALYSIS RELEVANT INFORMATION BILL HISTORY
3
maintain accounts denominated in gold or silver, and to spend from those accounts using debit cards or mobile
applications.20
Such systems rely on physical bullion stored in secure vaults, often accredited by international organizations that
set industry standards. Users may conduct transactions based on their bullion holdings and may redeem their
digital balances for physical delivery of gold or silver.21 While these systems offer an alternative to traditional fiat
currency (government-issued currency that is not backed by a physical commodity) transactions, they are typically
not insured by the Federal Deposit Insurance Corporation and are subject to various state and federal regulatory
requirements, including anti-money laundering, cybersecurity, and fraud prevention measures.22
RECENT LEGISLATION:
YEAR BILL # HOUSE SPONSOR(S) SENATE SPONSOR OTHER INFORMATION
2024 697 Bankson and LaMarca Martin The bill died in the State
Affairs Committee.
BILL HISTORY
STAFF
DIRECTOR/ ANALYSIS
COMMITTEE REFERENCE ACTION DATE POLICY CHIEF PREPARED BY
Insurance & Banking Hamon Herrera
Subcommittee
Ways & Means Committee
Commerce Committee
https://electronicmarkets.org/fileadmin/user_upload/doc/Issues/Volume_11/Issue_02/V11I2_A_Gold_Standard_for_the_Internet-
_An_Introductory_Assessment.pdf.
20 Bender, supra note 1, at 122.
21 See generally London Bullion Market Ass’n, LBMA Launches Digital Database for Gold Bars to Improve Transparency, Reuters (Jan. 29,
2025), https://www.reuters.com/markets/commodities/london-bullion-association-launches-digital-database-gold-bars-2025-01-29;
Digital Gold: Understanding Cryptocurrency Backed by Physical Gold, BlockApps (2023), https://blockapps.net/blog/digital-gold-
understanding-cryptocurrency-backed-by-physical-gold.
22 Lael Brainard, Governor, Bd. of Governors of the Fed. Rsrv. Sys., The Digitalization of Payments and Currency: Some Issues for Consideration
(Feb. 5, 2020), https://www.federalreserve.gov/newsevents/speech/brainard20200205a.htm.
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4
F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
HB 999 2025
1 A bill to be entitled
2 An act relating to gold and silver specie as legal
3 tender; creating s. 215.986, F.S; defining terms;
4 specifying that specie legal tender is legal tender;
5 prohibiting specie or specie legal tender from being
6 characterized as personal property for taxation and
7 regulatory purposes under state law; specifying that
8 purchases and sales of specie do not give rise to
9 state tax liability; providing that exchanges or
10 conversions of one type or form of legal tender for
11 another type or form of legal tender do not give rise
12 to state tax liability; prohibiting persons from
13 compelling others to tender or accept specie as legal
14 tender; authorizing governmental entities to recognize
15 specie legal tender for certain payments; requiring
16 the Chief Financial Officer to adopt rules; providing
17 an effective date.
18
19 Be It Enacted by the Legislature of the State of Florida:
20
21 Section 1. Section 215.986, Florida Statutes, is created
22 to read:
23 215.986 Specie as legal tender; prohibitions; tax
24 liabilities; payment of debts.—
25 (1) As used in this section, the term:
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HB 999 2025
26 (a) "Bullion" means refined gold or silver in any shape or
27 form, as adopted by rule by the Chief Financial Officer, which
28 is valued primarily based on the content of the gold or silver
29 and not on its form and function.
30 (b) "Bullion depository" means an entity providing vault
31 facilities within this state for the storage of bullion which:
32 1. Is accredited by the London Bullion Market Association
33 (LBMA) for storage of gold or silver;
34 2. Complies with the prescribed LBMA best practice
35 guidelines for the storage of bullion;
36 3. Has a contractual relationship to provide vault
37 services to hold and receive deposits of specie legal tender for
38 an authorized precious metals-backed electronic payment system
39 vendor;
40 4. Maintains an office in this state, with a Florida
41 address listed in its articles of incorporation or bylaws, or a
42 Florida address redesignated in a relocation application filed
43 with the office of the Chief Financial Officer; and
44 5. Receives deposits, allows access to deposits, permits
45 the withdraw or transfer of bullion and specie, and serves as
46 the custodian, guardian, and administrator for such purposes of
47 any bullion and specie transferred by any state or citizen
48 thereof consistent with the contract with the precious metals-
49 backed electronic payment system vendor.
50 (c) "Legal tender" means a recognized medium of exchange
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HB 999 2025
51 that is authorized by the United States Congress or by any state
52 pursuant to s. 8 or s. 10, Art. I of the United States
53 Constitution, respectively, for the payment of debts, public
54 charges, taxes, or dues.
55 (d) "Precious metal" means gold or silver.
56 (e) "Precious metals-backed electronic payment system"
57 means an electronic payment system that:
58 1. Uses physical gold or silver held in vault facilities
59 located within this state as backing for electronic
60 transactions;
61 2. Allows for the redemption of physical gold or silver by
62 system participants;
63 3. Enables the account holder to make payments to a
64 participating vendor; and
65 4. Is a Florida state-chartered bank under license by the
66 state to provide bullion deposit accounts that:
67 a. Allow account holders to buy, sell, save, or spend
68 physical gold or silver as a form of currency; and
69 b. Are not insured by, or subject to the regulations of,
70 the Federal Deposit Insurance Corporation.
71 (f) "Specie" means coin having bullion.
72 (g) "Specie legal tender" means:
73 1. Specie issued by the Federal Government at any time; or
74 2. Any other specie recognized by this state or any other
75 state pursuant to s. 10, Art. I of the United States
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HB 999 2025
76 Constitution.
77 (h) "System participant" means an individual or entity
78 that:
79 1. Maintains an account with a precious metals-backed
80 electronic payment system vendor;
81 2. Conducts transactions using the precious metals-backed
82 electronic payment system; or
83 3. Holds redemption rights for precious metals within the
84 precious metals-backed electronic payment system.
85 (i) "Transactional gold and silver" means a representation
86 of physical gold, silver, specie, or bullion which may be
87 transferred via electronic or written instruction through a
88 transaction by the owner of such currency and which is fully
89 redeemable as physical gold, silver, specie, or bullion. Such
90 representation must reflect the exact units of physical gold,
91 silver, specie, or bullion in its fractional troy ounce
92 measurement or grams.
93 (2)(a) Specie legal tender is legal tender.
94 (b) Specie or specie legal tender may not be characterized
95 as personal property for taxation or regulatory purposes.
96 (c) The purchase or sale of any type or form of specie
97 does not give rise to any state tax liability.
98 (d) The exchange or conversion of one type or form of
99 legal tender for another type or form of legal tender does not
100 give rise to any state tax liability.
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HB 999 2025
101 (e) Unless specifically provided by the State Constitution
102 or general law or by contract, a person may not compel another
103 person to tender specie or to accept specie as legal tender.
104 (f) Specie legal tender may be recognized to pay private
105 debts, taxes, and fees levied by the state or local government
106 or any subdivision thereof if the governmental entity consents
107 to payment with gold or silver and possesses the regulatory
108 authority and technical ability to accept gold or silver
109 payments.
110 (g) Information, including, but not limited to, the
111 identity of an account holder, an account balance, an account
112 transaction, or related data maintained by a vendor providing
113 precious metals-backed electronic payment system services, a
114 bullion depository, or any of their subcontractors or agents,
115 shall be released only with the account holder's consent, or in
116 any civil or criminal action, unless otherwise prohibited by
117 law, upon the issuance of a subpoena from a court of competent
118 jurisdiction with proper notice to the account holder or the
119 account holder's legal representative by the party seeking such
120 records, with an opportunity for a hearing upon request before
121 the court. Any records obtained in violation of this paragraph
122 are inadmissible in any proceeding if a timely objection is
123 made.
124 (3) The Office of Financial Regulation shall adopt rules
125 regarding:
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126 (a) The ability of a vendor to elect payment for goods or
127 services from a system participant to be in either bullion or
128 dollars at no additional cost to the vendor;
129 (b) The provision that depositors in a bullion depository
130 shall be insured for 100 percent of their deposit against all
131 risks through a non-governmental operated insurer;
132 (c) The provision that physical specie sufficient to cover
133 deposits is held by a bullion depository within this state;
134 (d) The security of the specie, bullion, and transactional
135 gold and silver;
136 (e) The provision that all account costs, conversion fees,
137 or other costs associated with a transactional gold or silver
138 account remain with the system participant, the provider of the
139 precious metals-backed electronic payment system, and the
140 bullion depository, as agreed to between them pursuant to their
141 contract; and
142 (f) Fraud prevention.
143 Section 2. This act shall take effect July 1, 2025.
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hb999-00
HB 1231
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 1231 COMPANION BILL: SB 1526 (Harrell)
TITLE: Insurance Claims Payments to Physicians LINKED BILLS: None
SPONSOR(S): Black RELATED BILLS: None
Committee References
Insurance & Banking Health Care Facilities & Systems Commerce
SUMMARY
Effect of the Bill:
The bill adds allopathic physicians licensed under ch. 458 and osteopathic physicians licensed under ch. 459 to an
existing regulatory framework that currently applies only to dental providers. The expansion extends specific
protections regarding payment methods, notification requirements, claim denials, and enforcement mechanisms to
physician practices without altering the substance of these regulations.
The rules apply to insurance companies, including health maintenance organizations (HMOs). The rules prohibit
insurers from requiring doctors to accept only credit card payments. The rules also require insurers to notify
physicians about changes in electronic payment methods, allow insurers to deny claims during periods when
patients have not paid their premiums, and establish clear rules for when certain claims can be denied.
The bill is applicable to all contracts delivered, issued, or renewed between allopathic physicians and osteopathic
physicians, and a health insurer or HMO on or after January 1, 2026.
Fiscal or Economic Impact:
None
JUMP TO SUMMARY ANALYSIS RELEVANT INFORMATION BILL HISTORY
ANALYSIS
EFFECT OF THE BILL:
Payment Method Regulations
Under current law, health insurers are prohibited from mandating credit card payments as the sole means of
reimbursement for dental services. The bill expands this prohibition to include physician services, ensuring that
physicians cannot be forced to accept only credit card payments, which typically involve transaction fees that
reduce provider compensation. This provision preserves payment method flexibility for physicians and protects
their revenue streams from mandatory transaction fees. (Sections 1 and 2).
Electronic Fund Transfer Notifications
Under current law, insurers must provide notice to dental providers when initiating or changing payment methods
or fees for electronic fund transfers. The bill entitles physicians to the same notification requirements. This allows
physicians to prepare for and adapt to changes in how they receive payments, potentially affecting their practice's
cash flow and accounting procedures. (Sections 1 and 2).
Premium Non-Payment Grace Period Claims
STORAGE NAME: h1231.IBS
DATE: 3/18/2025
1
Under current law, insurers may deny claims if dental services were provided during a premium non-payment
grace period, provided the insurer informed the provider of this circumstance in response to an eligible inquiry.
The bill extends this provision to physician services. Physicians would have the same ability to verify patient
eligibility and foresee potential claim denial risks before providing services during grace periods, potentially
reducing uncompensated care. (Sections 1 and 2).
Prior Authorization Claim Denial Criteria
Current law provides specific criteria for when dental claims can be denied under prior authorizations. The bill
applies the same criteria to physician claims. The criteria provide that an insurer may not deny a claim submitted
for procedures specifically included in a prior authorization, unless at least one of the following is satisfied:
Benefit limitations were reached subsequent to the issuance of the prior authorization;
Inadequate documentation was submitted to support the originally authorized claim;
Changes in the patient's condition or provision of new procedures post-authorization rendered the prior
authorized procedure medically unnecessary;
Changes in the patient's condition or provision of new procedures would have required disapproval under
the terms and conditions of the patient's plan at the time of prior authorization;
Services were provided during the grace period established under an applicable federal or state law or
regulation, and the dental insurer notified the provider that the patient was in the grace period when the
provider requested eligibility or enrollment verification from the dental insurer, if such a request was
made; or
Responsibility for the claim belonged to another payor for payment, prior payment was already made to
the dentist for the procedures in question, request was a fraudulent claim submission, or patient shown as
ineligible at the time of service.
(Sections 1 and 2).
Regulatory Enforcement
The Office of Insurance Regulation (OIR) is mandated to enforce claims payment provisions. (Sections 1 and 2).
Compliance
The bill is applicable to all contracts delivered, issued, or renewed between allopathic physicians licensed under ch.
458 and osteopathic physicians licensed under ch. 459 and a health insurer or HMO on or after January 1, 2026.
(Sections 1 and 2).
RELEVANT INFORMATION
SUBJECT OVERVIEW:
Health Insurance
Health insurance is the insurance of human beings against bodily injury or disablement by accident or sickness,
including the expenses associated with such injury, disablement, or sickness.1 Individuals purchase health
insurance coverage with the purpose of managing anticipated expenses related to health or protecting themselves
from unexpected medical bills or large health care costs. Many individuals access health care coverage as a benefit
of employment where the employer may contribute towards the cost of the employee’s coverage while others may
purchase coverage directly from an insurance company or from places like the Affordable Care Act’s marketplace.2
Health insurance may be purchased on an individual basis or for an entire family.
1 S. 624.603, F.S.
2 See Healthcare.gov, How to apply and enroll, Apply for Health Insurance | HealthCare.gov (last visited March 17, 2025).
JUMP TO SUMMARY ANALYSIS RELEVANT INFORMATION BILL HISTORY
2
Managed care is the most common delivery system for medical care today by health insurers.3 Managed care
systems combine the delivery and financing of health care services by limiting the choice of doctors and hospitals.4
In return for this limited choice, however, medical care is usually less costly to the patient due to lower out of
pocket costs and the managed care network’s ability to control the cost and utilization of health care services.
Some common forms of managed care are preferred provider organizations (PPO),5 exclusive provider
organizations (EPOs),6 and health maintenance organizations (HMO).7 For services to be covered at the lowest out
of pocket cost to the insured, the insured must utilize the managed care plan’s network of providers, except in
cases of an emergency. Different managed care companies have a variety of network and out of pocket cost
arrangements based on an individual’s or family’s needs.
Office of Insurance Regulation
The Office of Insurance Regulation (OIR) regulates specified insurance products, insurers and other risk bearing
entities in Florida, as well as licensing, rates, policy forms, market conduct, claims, issuances of certificates of
authority, solvency, viatical statements, premium financing, and administrative supervision, as provided under the
Florida Insurance Code.8 The OIR is also authorized to conduct market conduct examinations to determine
compliance with applicable provisions of the Insurance Code.9 For managed care entities to receive a license from
OIR, the entity must meet financial guidelines, benefits, and policy standards as established under ch. 690.154,
F.A.C.
The Agency for Health Care Administration
The Agency for Health Care Administration (AHCA) is the chief health policy and planning entity for the state, and
regulates the quality of care provided by managed care organizations under ch. 408, F.S.10
Health Maintenance Organizations
Health Maintenance Organizations (HMOs) operate within a regulatory framework dually overseen by the OIR and
AHCA. To offer a commercial health insurance plan in Florida, an HMO must obtain a license from the OIR11 and a
Certificate of Authority from AHCA. An HMO is also required to become accredited by one of the state’s approved
organizations: National Committee for Quality Assurance, National Association for Ambulatory Health Care, and
American Accreditation HealthCare Commission.12 Certificates of authority are granted by AHCA, if found to be
compliant with the certification process, on a county by county basis or for a portion of a county.13
Most managed care enrollment in Florida is through an HMO. For the last quarterly submission to AHCA in
September 2024, Florida HMOs reported over 8.2 million enrollees as shown in the table below.14
Group Type Q3 2024
Small Group 168,194
Large Group 419,937
Individual 2,040,499
3 Florida Department of Financial Services, Health Insurance and Health Maintenance Organizations, A Guide for Consumers,
available at: health-insurance-guide.pdf (last visited March 17, 2025).
4 Id.
5 S. 627.6471, F.S.
6 S. 627.6472, F.S.
7 Part I of ch. 641, F.S.
8 S. 20.121(3)(a), F.S.
9 See S. 624.3161, F.S. The Code is comprised of chs. 624-632, 634-636, 641, 642, 647, 648, and 651, F.S.
10 AHCA, About the Agency for Health Care Administration, https://ahca.myflorida.com/about-the-agency-for-health-care-
administration (last visited March 17, 2025).
11 S. 641.21(1), F.S.
12 Agency for Health Care Administration, Health Care Provider Certi (last visited March 17, 2025).
13 Id.
14 Florida Office of Insurance Regulation, Managed Care Report: Quarterly Data Summary as of September 30, 2024, managed-
care-report-2024-q3-11dec2024.pdf (last visited March 17, 2025).
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3
Other 11,139
Healthy Kids 146,775
Medicaid 3,093,498
Medicare 1,798,581
Federal Employees 4,185
GRAND TOTAL 7,682,808
These plans provide comprehensive healthcare services to members for a fixed monthly premium.15 Members
typically select a primary care physician from within the HMO's network, who serves as the main point of contact
for all healthcare needs and referrals to specialists.16 HMOs maintain networks of healthcare providers, including
primary care physicians, specialists, hospitals, and other healthcare facilities.17 Members are generally required to
receive care from within the HMO's network, with exceptions for emergencies or authorized out-of-network care,
for services to be covered.18
Florida law, under ch. 641, F.S., provides various consumer protections, including guaranteed access to emergency
services, coverage for essential health benefits19 mandated by the Act,20 and the right to appeal coverage decisions
made by the HMO.21
Health Insurance Contracts
All health insurance policies issued in the state of Florida, with the exception of certain self-insured policies,22 must
meet certain requirements that are detailed throughout the Florida Insurance Code. At a minimum, insurance
policies must specify premium rates, services covered, and effective dates. Insurers must document the time when
a policy takes effect and the period during which the policy remains in effect.23
Non-Payment of Premiums
Responsibilities of insured patients are also reflected in insurance contracts. Contracts set premium payment
schedules and require that payments must be made in a timely fashion. In cases where this requirement is not met,
any health insurer or HMO may cancel coverage for nonpayment of premiums after a statutory grace period.24
Before cancellation can occur, however, covered patients are protected by grace periods that extend the time frame
in which premium payments may be submitted. A grace period is a period of time following the due date of a
premium payment in which the insurance policy remains in force, even if the premium payment has not been
made. The grace periods for policies or contracts issued in Florida are set in the Insurance Code,25 and vary based
on the premium payment schedule.
15 Medicare, What’s an HMO? https://www.medicare.gov/health-drug-plans/health-plans (last visited March 17, 2025).
16 Id.
17 S. 641.19(12), F.S.
18 Medicare, What’s an HMO?, https://www.medicare.gov/health-drug-plans/health-plans (last visited March 17, 2025).
19 Under the Patient Protection and Affordable Care Act, all non-grandfathered plans in the non-group and small group private
health insurance markets must offer a core package of health insurance services known as the essential health benefits (EHB).
See Essential Health Benefits, Healthcare.gov, Find out what Marketplace health insurance plans cover | HealthCare.gov (last
visited March 17, 2025).
20 Patient Protection and Affordable Care Act, (March 23, 2010), P.L. 111-141, as amended.
21 Consumer Services, Health Insurance & HMO Overview, https://www.myfloridacfo.com/division/consumers/understanding-
insurance/health-insurance-and-hmo-overview (last visited March 17, 2025).
22 The Employment Retirement Security Act of 1974 (ERISA). 29 U.S.C. ch. 18 § 1001 et seq. ERISA regulates certain self-
insured plans, which represent approximately 50 percent of the insureds in Florida.
23 S. 627.413(1)(d), F.S.
24 SS. 627.6043(1) and 641.3108(2), F.S.
25 SS. 627.608 and 641.31(15), F.S.; The grace period of an individual policy must be a minimum of 7 days for weekly premium;
10 days for a monthly premium; and 31 days for all other periods. The grace period of an HMO contract must be at least 10
days. For group policies, if cancellation is due to nonpayment of premium, the insurer may not retroactively cancel the policy
to a date prior to the date that notice of cancellation was provided to the policyholder unless the insurer mails notice of
cancellation to the policyholder prior to 45 days after the date the premium was due. Such notice must be mailed to the
JUMP TO SUMMARY ANALYSIS RELEVANT INFORMATION BILL HISTORY
4
Pursuant to ss. 627.608 and 641.31, F.S., insurance policies and health maintenance contracts stay in force during
grace periods. If the insurer or HMO does not receive the full payment of the premium by the end of the grace
period, coverage terminates as of the grace period start date and the insurer or HMO may deny any medical claims
incurred during the grace period. When a claim is denied at a later date, it is referred to as a retroactive denial.
The Insurance Code is silent on whether the insurer or HMO may advise a health care provider that a patient has
not paid the applicable premium, and that the policy or health maintenance contract may be terminated in the
future, possibly resulting in a retroactive claim denial.
Prompt Payment
Current law governs prompt payment of provider claims submitted to insurers and HMOs, including Medicaid
managed care plans, under ss. 627.6131 and 641.3155, F.S., respectively. These provisions detail the rights and
responsibilities of insurers, HMOs, and providers for the payment of medical claims. The statutes provide a process
and timeline for providers to pay, deny, or contest the claim, and also prohibit an insurer or HMO from
retroactively denying a claim because of the ineligibility of an insured or subscriber more than one year after the
date the claim is paid.26
Federal Patient Protection and Affordable Care Act
The Act introduced a set of claims-related requirements for insurers offering plans through the federally-facilitated
and state-based insurance exchanges. The Act guarantees access to coverage and mandates certain essential health
benefits, among other directives.27To address affordability issues, federal premium tax credits and cost-sharing
subsidies are available to assist eligible low and moderate-income individuals to purchase qualified health plans on
a state or federal exchange.28
According to the 2023 Market Report by the Florida Health Insurance Advisory Board, total enrollment in Florida’s
commercial health insurance market is 4,671,680 individuals which represents an increase of over eight percent
from the prior year.29 The largest group in this market has individual coverage, over 2.9 million Floridians, an
increase of 16 percent over 2022, and the vast majority of this coverage has been purchased through the ACA
marketplace.30 For the 2024 Open Enrollment period, Florida’s total number of ACA marketplace plan selections
from new and continuing consumers was 4,211,902 plan selections, the highest number of selection among all
states, federal or state based exchanges.31
Non-Payment of Premiums – Federal Law
policyholder's last address as shown by the records of the insurer and may provide for a retroactive date of cancellation no
earlier than midnight of the date that the premium was due.
26 SS. 627.6131(11) and 641.3155(10), F.S.
27 The Patient Protection and Affordable Care Act (Pub. Law No. 111-148) was enacted on March 23, 2010. The Health Care
and Education Reconciliation Act of 2010 (Pub. Law No. 111-152), which amended several provisions of the PPACA, was
enacted on March 30, 2010. Together these two Acts are known as PPACA.
28 In general, individuals and families may be eligible for the premium tax credit if their household income for the year is at
least 100 percent but no more than 400 percent of the federal poverty line (FPL) for their family size. For residents of one of
the 48 contiguous states or Washington D.C., 100 percent of the FPL for a family of four is $32,150; at 400 percent of the FPL
for a family of four is $128,600. See U.S. Department of Health and Human Services, Office of the Assistant Secretary for
Planning and Evaluation, HHS Poverty Guidelines for 2025, available at: detailed-guidelines-2025.pdf (last visited March 17,
2025).
29 Florida Health Insurance Advisory Board, 2023 Market Report, fhiab-2023-market-report---adopted-(12-15-23).pdf (last
visited March 17, 2025).
30 Id.
31 Centers for Medicare and Medicaid Services, Marketplace 2024 Open Enrollment Period Report: Final National Snapshot
(January 24, 2024), available at Marketplace 2024 Open Enrollment Period Report: Final National Snapshot | CMS (last visited
March 17, 2025).
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5
All qualified health plans (QHPs)32 in the ACA marketplace are required to establish standard policies for the
termination of enrollees due to the non-payment of premiums. The policy must be applied uniformly to enrollees
in similar situations.33 If an enrollee is delinquent with a premium payment, the QHP must notify the enrollee of the
delinquency promptly and without undue delay, within 10 business days of the date from which the insurer should
have discovered the delinquency.34
Individual health insurance plans purchased via the exchanges with a federal premium tax credit are not subject to
the grace periods in Florida law. Instead, the Act requires insurers and HMOs to provide subscribers in these plans,
a grace period of at least three consecutive months before cancelling the policy or contract if the enrollee
previously paid at least a binder payment or the first month’s premium payment.35 The binder payment is due no
earlier than the coverage effective date and no later than 30 calendar days from the coverage effective date.36
During the first month of the grace period, the insurer must pay all appropriate claims for services provided.37
During the grace period, the insurer must also notify the Department of Health and Human Services (HHS) of the
non-payment and notify providers of the possibility for denied claims when an enrollee is in the second and third
months of a grace period.38 For the second and third months, an insurer may pend claims and then must notify
affected providers that an enrollee has lapsed in his or her payment of premiums and there is a possibility the
insurer may deny the payment of claims incurred during the second and third months.39
Payment Methods for Health Care Claims
In March 2022, HHS issued guidance for covered entities40 on the payment of health care claims by health plans
through the use of virtual credit cards (VCC) and whether these transactions met the federal regulatory standards
for electronic transactions. In model legislation, the National Council of Insurance Legislators has defined VCCs as
an online credit card payment where no physical card is present and the number expires upon use at a credit card
terminal or internet portal.41 Instead of sending a paper check or an electronic payment transmission, some health
plans have paid providers by sending these single use credit cards requiring the provider to then manually enter
VCC numbers in order to receive payment. A transaction fee is incurred for each payment processed. For ACH
transaction, the fee per item is based on volume, and can average in 2024 around $0.35.42 For transactions by VCC,
fees have been quoted as high as five percent.43 HHS guidance concluded that payment by VCC was permitted;
however, to meet the standards, the health plans must maintain certain privacy and confidentiality and transaction
standards, including a one-to-one relationship between each electronic remittance advice (ERA) and electronic
32 A “qualified health plan” is a plan that has been certified to meet the minimum standards of participation under 45 CFR
§156.200 and is recognized as a QHP by the exchanges through which the plan is offered. Those standards include compliance
with Exchange process and procedures, benefit design standards, licensure compliance in state where products are sold, in
good standing in states where licensed products are sold, implementation of a quality improvement strategy or strategies
consistent with the Act’s goals, payment of applicable user fees, and compliance with reinsurance, risk corridors, and risk
adjustment requirements.
33 45 CFR §156.270(c).
34 45 CFR §156.270 (f).
35 45 CFR §156.270(d).
36 Centers for Medicare and Medicaid Services, Health Plan Coverage Effectuation Webinar Training: Payment, Grace Periods,
and Terminations (Navigator Training materials – January 2024), available at Health Plan Coverage
Effectuation_Webinar_Jan_2024 (last visited March 17, 2025).
37 45 CFR §156.270(d)(1).
38 45 CFR §156.270(d)
39 45 CFR §156.270(d)(3).
40 A “covered entity” is defined at 45 CFR §160.103, as a health plan, a health plan clearinghouse, or a health care provider who
transmits any healthy information in electronic form in connection with a transaction.
41 National Council of Insurance Legislators, NCOIL Adopts Transparency in Dental Benefits Contracting Model Act (December 27,
2020), available at Transparency-in-Dental-Benefits-2020_final.pdf (last visited March 17, 2025).
42 The Federal Reserve, FedACH Services 2024 Fee Schedule, available at FedACH Services 2024 Fee Schedule (last visited March
17, 2025).
43 Cezary Podkul, The Hidden Fee Costing Doctors Millions Every Year, ProPublica (August 14, 2023), available at
https://www.propublica.org/article/the-hidden-fee-costing-doctors-millions-every-year (last visited March 17, 2025).
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6
funds transfer (EFT).44 Once a plan submits a payment using the required standard with the specifications, any
intermediaries acting on behalf of the health plan, including health care clearinghouses, financial institutions, and
payment vendors, cannot alter, amend, or omit any information.45
Federal regulations also require that if a health plan pays providers via a VCC, the provider must be able to
continue to request payments via EFT through the Automated Clearinghouse (ACH) Network using regulatory and
ERA transaction standards, and the health plan is required to comply with those requests.46 When a provider
makes this request, the health plan must comply, regardless of whether the provider is in the plan’s network or not
or otherwise not affiliated with the plan.47
Many VCC vendors offer additional or value-added services directly or through business associates to dental
providers for additional fees above the transaction fees. These additional items may include services such as
assistance with re-associating the EFT file with the ERA file for reconciliation or other purposes, customer service
functions, hotline numbers, special reporting or output files, billing services, and eligibility verification processes.
Federal regulations prohibit a health plan from requiring a provider to agree to any value-added services as a
condition of payment or inclusion of the required reassociation services using the HHS adopted EFT and ERA
standards.48
If the provider has made a request to a health plan to conduct transactions via EFT and ERA using the adopted
standards, and the provider believes that the health plan has not used or complied with those standards or
operating rules, or the insurer has required the provider to pay for additional services declined by the provider as
a condition of claims payment, the provider may file a complaint against the health plan with the federal Centers
for Medicare and Medicaid Services.49
Regulation of Physician Practices in Florida
The Division of Medical Quality Assurance (MQA), within the Department of Health (DOH), has general regulatory
authority over health care practitioners.50 The MQA works in conjunction with 22 boards and four councils to
license and regulate 364 health care professions, including Medical Doctors (allopathic physicians) and Doctors of
Osteopathic Medicine (osteopathic physicians).51 Each profession is regulated by an individual practice act and by
ch. 456, F.S., which provides general regulatory and licensure authority for the MQA.52
Allopathic Physician Licensure (ch. 458, F.S.)
Chapter 458, F.S., provides for the licensure and regulation of the practice of medicine by the Florida Board of
Medicine (allopathic board) in conjunction with DOH. The chapter imposes requirements for licensure examination
and licensure by endorsement.
Allopathic Licensure Requirements
44 Department of Health and Human Services, Go to Guidance: Guidance on health plans’ payment of health care claims using
Virtual Credit Cards (VCCs) and adopted HIPAA standards for Health Care Electronic Funds Transfer (EFT) and Remittance Advice
(ERA) transactions; 45 CFR §§162.1601 and 162.1602(d), available at Virtual Credit Cards (VCCs) and Electronic Funds
Transfers (EFT) Guidance Letter (last visited March 17, 2025).
45 Id.
46 Id. and 45 CFR §162.925(a)(1).
47 Department of Health and Human Services, Go to Guidance: Guidance on health plans’ payment of health care claims using
Virtual Credit Cards (VCCs) and adopted HIPAA standards for Health Care Electronic Funds Transfer (EFT) and Remittance Advice
(ERA) transactions; 45 CFR §§162.1601 and 162.1602(d), available at Virtual Credit Cards (VCCs) and Electronic Funds
Transfers (EFT) Guidance Letter (last visited March 17, 2025).
48 Id.
49 Id.
50 Pursuant to s. 456.001(4), F.S., health care practitioners are defined to include physicians among other providers.
51 Florida Department of Health, Division of Medical Quality Assurance, Annual Report and Long-Range Plan, Fiscal Year 2022-
2023, p. 4, https://www.floridahealth.gov/licensing-and-regulation/reports-and-
publications/_documents/2024.04.15.MQA_AR-FINAL-Tbl-10-REVISED.pdf (last visited March 18, 2025).
52 S. 456.001(4), F.S.
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7
An individual seeking to be licensed by examination as an allopathic physician must, among other things:
Complete 2 years of post-secondary education which includes, at a minimum, courses in fields such as
anatomy, biology, and chemistry prior to entering medical school;
Meet one of the following medical education and postgraduate training requirements:
o Graduate from an allopathic medical school recognized and approved by an accrediting agency
recognized by the U.S. Office of Education or recognized by an appropriate governmental body of a
U.S. territorial jurisdiction, and have completed at least one year of approved residency training;
o Graduate from an allopathic foreign medical school registered with the World Health Organization
and certified pursuant to statute as meeting the standards required to accredit U.S. medical schools,
and have completed at least one year of approved residency training; or
o Graduate from an allopathic foreign medical school that has not been certified pursuant to statute;
have an active, valid certificate issued by the Educational Commission for Foreign Medical
Graduates (ECFMG),53 have passed that commission’s examination; and have completed an
approved residency or fellowship of at least 2 years in one specialty area; and
Obtain a passing score on:
o The United States Medical Licensing Examination (USMLE);
o A combination of the USMLE, the examination of the Federation of State Medical Boards of the
United States, Inc. (FLEX), or the examination of the National Board of Medical Examiners up to the
year 2000; or
o The Special Purpose Examination of the Federation of State Medical Boards of the United States
(SPEX), if the applicant was licensed on the basis of a state board examination, is currently licensed
in at least one other jurisdiction of the United States or Canada, and has practiced for a period of at
least 10 years.54
An individual who holds an active license to practice medicine in another jurisdiction may seek licensure by
endorsement to practice medicine in Florida.55 The applicant must meet the same requirements for licensure by
examination. To qualify for licensure by endorsement, the applicant must also submit evidence of the licensed
active practice of medicine in another jurisdiction for at least 2 of the preceding 4 years, or evidence of successful
completion of either a board-approved postgraduate training program within 2 years preceding filing of an
application or a board-approved clinical competency examination within the year preceding the filing of an
application for licensure.
Osteopathic Physician Licensure (ch. 459, F.S.)
Chapter 459, F.S., provides for the licensure and regulation of the practice of medicine by the Florida Board of
Osteopathic Medicine (osteopathic board) in conjunction with DOH. The chapter imposes requirements for
licensure by examination and licensure by endorsement.
Osteopathic Licensure Requirements
An individual seeking to be licensed as an osteopathic physician must, among other things:56
Graduate from a medical college recognized and approved by the American Osteopathic Association;
Successfully complete a resident internship of at least 12 months in a hospital approved by the Board of
Trustees of the American Osteopathic Association or any other internship approved by the osteopathic
board; and
53 A graduate of a foreign medical school does not need to present an ECFMG certification or pass its exam if the graduate
received his or bachelor’s degree from an accredited U.S. college or university, studied at a medical school recognized by the
World Health Organization, and has completed all but the internship or social service requirements, has passed parts I and II
of the National Board Medical Examiners licensing examination or the ECFMG equivalent examination. Section 458.311, F.S.
54 S. 458.311(1), F.S.
55 S. 458.313, F.S.
56 S. 459.0055(1), F.S.
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8
Obtain a passing score, as established by rule of the osteopathic board, on the examination conducted by
the National Board of Osteopathic Medical Examiners or other examination approved by the osteopathic
board, no more than five years prior to applying for licensure.57
If an applicant for a license to practice osteopathic medicine is licensed in another state, the applicant must have
actively practiced osteopathic medicine within the two years prior to applying for licensure in this state.
BILL HISTORY
STAFF
DIRECTOR/ ANALYSIS
COMMITTEE REFERENCE ACTION DATE POLICY CHIEF PREPARED BY
Insurance & Banking Hamon Schenk
Subcommittee
Health Care Facilities & Systems
Subcommittee
Commerce Committee
57 However, if an applicant has been actively licensed in another state, the initial licensure in the other state must have
occurred no more than five years after the applicant obtained the passing score on the licensure examination.
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9
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 1231 2025
1 A bill to be entitled
2 An act relating to insurance claims payments to
3 physicians; amending ss. 627.6131 and 641.315, F.S.;
4 prohibiting contracts between certain physicians and
5 health insurers and health maintenance organizations,
6 respectively, from specifying credit card payments to
7 physicians as the only acceptable method for payments;
8 authorizing use of electronic funds transfers by
9 health insurers and health maintenance organizations,
10 respectively, for payments to physicians under certain
11 circumstances; providing notification requirements;
12 prohibiting health insurers and health maintenance
13 organizations, respectively, from charging fees for
14 automated clearinghouse transfers as claims payments
15 to physicians; providing an exception; providing
16 applicability; prohibiting health insurers and health
17 maintenance organizations, respectively, from denying
18 claims subsequently submitted by physicians for
19 procedures that were included in prior authorizations;
20 providing exceptions; providing applicability;
21 providing an effective date.
22
23 Be It Enacted by the Legislature of the State of Florida:
24
25 Section 1. Subsections (20) and (21) of section 627.6131,
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26 Florida Statutes, are amended to read:
27 627.6131 Payment of claims.—
28 (20)(a) A contract between a health insurer and a dentist
29 licensed under chapter 466 or a physician licensed under chapter
30 458 or chapter 459 for the provision of services to an insured
31 may not specify credit card payment as the only acceptable
32 method for payments from the health insurer to the dentist or
33 physician.
34 (b) When a health insurer employs the method of claims
35 payment to a dentist or physician through electronic funds
36 transfer, including, but not limited to, virtual credit card
37 payment, the health insurer shall notify the dentist or
38 physician as provided in this paragraph and obtain the dentist's
39 or physician's consent before employing the electronic funds
40 transfer. The dentist's or physician's consent described in this
41 paragraph applies to the dentist's or physician's entire
42 practice. For the purpose of this paragraph, the dentist's or
43 physician's consent, which may be given through e-mail, must
44 bear the signature of the dentist or physician. Such signature
45 includes an electronic or digital signature if the form of
46 signature is recognized as a valid signature under applicable
47 federal law or state contract law or an act that demonstrates
48 express consent, including, but not limited to, checking a box
49 indicating consent. The health insurer or the dentist or
50 physician may not require that a dentist's or physician's
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51 consent as described in this paragraph be made on a patient-by-
52 patient basis. The notification provided by the health insurer
53 to the dentist or physician must include all of the following:
54 1. The fees, if any, associated with the electronic funds
55 transfer.
56 2. The available methods of payment of claims by the
57 health insurer, with clear instructions to the dentist or
58 physician on how to select an alternative payment method.
59 (c) A health insurer that pays a claim to a dentist or
60 physician through automated clearinghouse transfer may not
61 charge a fee solely to transmit the payment to the dentist or
62 physician unless the dentist or physician has consented to the
63 fee.
64 (d) This subsection applies to all contracts:
65 1. Between a health insurer and a dentist which are
66 delivered, issued, or renewed on or after January 1, 2025.
67 2. Between a health insurer and a physician which are
68 delivered, issued, or renewed on or after January 1, 2026.
69 (e) The office has all rights and powers to enforce this
70 subsection as provided by s. 624.307.
71 (f) The commission may adopt rules to implement this
72 subsection.
73 (21)(a) A health insurer may not deny any claim
74 subsequently submitted by a dentist licensed under chapter 466
75 or a physician licensed under chapter 458 or chapter 459 for
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76 procedures specifically included in a prior authorization unless
77 at least one of the following circumstances applies for each
78 procedure denied:
79 1. Benefit limitations, such as annual maximums and
80 frequency limitations not applicable at the time of the prior
81 authorization, are reached subsequent to issuance of the prior
82 authorization.
83 2. The documentation provided by the person submitting the
84 claim fails to support the claim as originally authorized.
85 3. Subsequent to the issuance of the prior authorization,
86 new procedures are provided to the patient or a change in the
87 condition of the patient occurs such that the prior authorized
88 procedure would no longer be considered medically necessary,
89 based on the prevailing standard of care.
90 4. Subsequent to the issuance of the prior authorization,
91 new procedures are provided to the patient or a change in the
92 patient's condition occurs such that the prior authorized
93 procedure would at that time have required disapproval pursuant
94 to the terms and conditions for coverage under the patient's
95 plan in effect at the time the prior authorization was issued.
96 5. The denial of the claim was due to one of the
97 following:
98 a. Another payor is responsible for payment.
99 b. The dentist or physician has already been paid for the
100 procedures identified in the claim.
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101 c. The claim was submitted fraudulently, or the prior
102 authorization was based in whole or material part on erroneous
103 information provided to the health insurer by the dentist or
104 physician, patient, or other person not related to the insurer.
105 d. The person receiving the procedure was not eligible to
106 receive the procedure on the date of service.
107 e. The services were provided during the grace period
108 established under s. 627.608 or applicable federal regulations,
109 and the dental insurer notified the dentist or physician
110 provider that the patient was in the grace period when the
111 dentist or physician provider requested eligibility or
112 enrollment verification from the dental insurer, if such request
113 was made.
114 (b) This subsection applies to all contracts:
115 1. Between a health insurer and a dentist which are
116 delivered, issued, or renewed on or after January 1, 2025.
117 2. Between a health insurer and a physician which are
118 delivered, issued, or renewed on or after January 1, 2026.
119 (c) The office has all rights and powers to enforce this
120 subsection as provided by s. 624.307.
121 (d) The commission may adopt rules to implement this
122 subsection.
123 Section 2. Subsections (13) and (14) of section 641.315,
124 Florida Statutes, are amended to read:
125 641.315 Provider contracts.—
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126 (13)(a) A contract between a health maintenance
127 organization and a dentist licensed under chapter 466 or a
128 physician licensed under chapter 458 or chapter 459 for the
129 provision of services to a subscriber of the health maintenance
130 organization may not specify credit card payment as the only
131 acceptable method for payments from the health maintenance
132 organization to the dentist or physician.
133 (b) When a health maintenance organization employs the
134 method of claims payment to a dentist or physician through
135 electronic funds transfer, including, but not limited to,
136 virtual credit card payment, the health maintenance organization
137 shall notify the dentist or physician as provided in this
138 paragraph and obtain the dentist's or physician's consent before
139 employing the electronic funds transfer. The dentist's or
140 physician's consent described in this paragraph applies to the
141 dentist's or physician's entire practice. For the purpose of
142 this paragraph, the dentist's or physician's consent, which may
143 be given through e-mail, must bear the signature of the dentist
144 or physician. Such signature includes an electronic or digital
145 signature if the form of signature is recognized as a valid
146 signature under applicable federal law or state contract law or
147 an act that demonstrates express consent, including, but not
148 limited to, checking a box indicating consent. The health
149 maintenance organization or the dentist or physician may not
150 require that a dentist's or physician's consent as described in
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151 this paragraph be made on a patient-by-patient basis. The
152 notification provided by the health maintenance organization to
153 the dentist or physician must include all of the following:
154 1. The fees, if any, that are associated with the
155 electronic funds transfer.
156 2. The available methods of payment of claims by the
157 health maintenance organization, with clear instructions to the
158 dentist or physician on how to select an alternative payment
159 method.
160 (c) A health maintenance organization that pays a claim to
161 a dentist or physician through automated clearing house transfer
162 may not charge a fee solely to transmit the payment to the
163 dentist or physician unless the dentist or physician has
164 consented to the fee.
165 (d) This subsection applies to all contracts:
166 1. Between a health maintenance organization and a dentist
167 which are delivered, issued, or renewed on or after January 1,
168 2025.
169 2. Between a health maintenance organization and a
170 physician which are delivered, issued, or renewed on or after
171 January 1, 2026.
172 (e) The office has all rights and powers to enforce this
173 subsection as provided by s. 624.307.
174 (f) The commission may adopt rules to implement this
175 subsection.
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176 (14)(a) A health maintenance organization may not deny any
177 claim subsequently submitted by a dentist licensed under chapter
178 466 or a physician licensed under chapter 458 or chapter 459 for
179 procedures specifically included in a prior authorization unless
180 at least one of the following circumstances applies for each
181 procedure denied:
182 1. Benefit limitations, such as annual maximums and
183 frequency limitations not applicable at the time of the prior
184 authorization, are reached subsequent to issuance of the prior
185 authorization.
186 2. The documentation provided by the person submitting the
187 claim fails to support the claim as originally authorized.
188 3. Subsequent to the issuance of the prior authorization,
189 new procedures are provided to the patient or a change in the
190 condition of the patient occurs such that the prior authorized
191 procedure would no longer be considered medically necessary,
192 based on the prevailing standard of care.
193 4. Subsequent to the issuance of the prior authorization,
194 new procedures are provided to the patient or a change in the
195 patient's condition occurs such that the prior authorized
196 procedure would at that time have required disapproval pursuant
197 to the terms and conditions for coverage under the patient's
198 plan in effect at the time the prior authorization was issued.
199 5. The denial of the claim was due to one of the
200 following:
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201 a. Another payor is responsible for payment.
202 b. The dentist or physician has already been paid for the
203 procedures identified in the claim.
204 c. The claim was submitted fraudulently, or the prior
205 authorization was based in whole or material part on erroneous
206 information provided to the health maintenance organization by
207 the dentist or physician, patient, or other person not related
208 to the organization.
209 d. The person receiving the procedure was not eligible to
210 receive the procedure on the date of service.
211 e. The services were provided during the grace period
212 established under s. 627.608 or applicable federal regulations,
213 and the dental insurer notified the dentist or physician
214 provider that the patient was in the grace period when the
215 dentist or physician provider requested eligibility or
216 enrollment verification from the dental insurer, if such request
217 was made.
218 (b) This subsection applies to all contracts:
219 1. Between a health maintenance organization and a dentist
220 which are delivered, issued, or renewed on or after January 1,
221 2025.
222 2. Between a health maintenance organization and a
223 physician which are delivered, issued, or renewed on or after
224 January 1, 2026.
225 (c) The office has all rights and powers to enforce this
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226 subsection as provided by s. 624.307.
227 (d) The commission may adopt rules to implement this
228 subsection.
229 Section 3. This act shall take effect July 1, 2025.
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HB 1549
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 1549 COMPANION BILL: SB 1612 (Grall)
TITLE: Financial Institutions LINKED BILLS: None
SPONSOR(S): Maggard RELATED BILLS: None
Committee References
Insurance & Banking Commerce
SUMMARY
Effect of the Bill:
The bill provides various amendments to the financial institutions code. The bill:
Amends the due dates by which time a financial institution must pay semiannual assessments and specifies
the method and timing of when the semiannual assessments must be made.
Authorizes the Office of Financial Regulation (OFR) to issue a certificate of acquisition to an acquiring
financial institution after specified circumstances are met.
Repeals the provision prohibiting credit unions from investing more than five percent of the capital of the
credit union in specified fixed assets.
Repeals the requirement for credit unions to maintain a regular reserve and modifies the definition of the
term “equity” to remove reference to “regular reserve.”
Removes a timeframe for certain requirements by directors of a proposed new bank or trust company.
Modifies the period in which a proposed bank or trust company must open and conduct a general
commercial bank or trust company business.
Fiscal or Economic Impact:
None
JUMP TO SUMMARY ANALYSIS RELEVANT INFORMATION BILL HISTORY
ANALYSIS
EFFECT OF THE BILL:
State Financial Institution Assessments:
The bill requires state financial institutions to pay a semiannual assessment based on total assets as of the last
business day in December and June. The assessment must be received by the Office of Financial Regulation (OFR)
via mail, wire transfer, automated clearinghouse, or other approved electronic means by March 31 and September
30. (Section 1).
Certificates for Acquisition or Assumption Transactions:
The bill authorizes the OFR to issue a certificate confirming that an acquisition, assumption, or sale transaction
between financial institutions has been completed once the acquiring institution submits the necessary evidence.
(Section 2).
Definition of "Equity" for Credit Unions:
The bill repeals the requirement for credit unions to maintain a regular reserve and modifies the definition of the
term “equity” to remove reference to “regular reserve.” (Section 3 & 5).
Credit Union Investment Powers:
The bill repeals the provision that provides a credit union may invest only up to five percent of the credit union’s
STORAGE NAME: h1549.IBS
DATE: 3/18/2025
1
capital in real estate and improvements, furniture, fixtures, and equipment utilized by the credit union for the
transaction of business. (Section 4).
Stock Subscription:
The bill requires that at least 30 days before opening, the directors of a proposed bank or trust company must have
completed the stock offering and filed with the office a final list of subscribers to all capital stock. (Section 6).
Opening of Banks/Trust Companies:
The bill requires a bank or trust company corporation to open and conduct a general commercial bank or trust
business within 18 months after the issuance of a final order of approval by the office. (Section 7).
The effective date of the bill is July 1, 2025. (Section 8).
RELEVANT INFORMATION
SUBJECT OVERVIEW:
Financial Institutions
A financial institution must hold a federal or state charter to accept deposits. Banks are chartered either as national
banks by the Office of the Comptroller of the Currency (OCC) under the U.S. Department of the Treasury or as state
banks by a state regulator.1
In Florida, the Florida Financial Institutions Codes govern all state-authorized and state-chartered banks, trust
companies, and related entities.2 The OFR licenses and regulates 196 financial entities, including 57 state-chartered
banks.3 There are also 30 federally-chartered banks operating in Florida.4
Banks and Trust Companies
Federal Law – Creation and Opening of a New Bank or Trust Company
Federally chartered banks, whether public or private, must meet stringent regulatory requirements to obtain a
charter5. The OCC follows a two-phase approval process:
Preliminary Approval: Expires if the proposed bank:
o Fails to raise required capital within 12 months, or
o Does not commence business within 18 months, unless an extension is granted.6
Final Approval: Granted after completion of all organization requirements, authorizing the bank to begin
operations.7
Federal law prohibits offering national bank-issued securities without registration unless an exemption (e.g., for
nonpublic offerings) applies.8
Florida Law – Creation and Opening of a New Bank or Trust Company
State law requires that directors of a proposed bank or trust company:
Complete a stock offering and file a list of subscribers with the OFR within six months of corporate
existence and at least 30 days prior to opening.9
1 Congressional Research Service, Introduction to Financial Services: Banking, p. 1, January 5, 2023, available at:
https://crsreports.congress.gov/product/pdf/IF/IF10035 (last visited March 15, 2025).
2 S. 655.005(1)(k), F.S., states that the Financial Institutions Codes includes: Ch. 655, financial institutions generally; Ch. 657, credit unions;
Ch. 658, banks and trust companies; Ch. 660, trust business; Ch. 662, family trust companies; Ch. 663, international banking; Ch. 665, relating
to associations; and Ch. 667, savings banks.
3 The OFR, Fast Facts (2025 ed.), available at: fast-facts.pdf (last visited March 15, 2025) (hereinafter cited as “2025 OFR Fast Facts”).
4 The OCC, National Banks Active As of 2/28/2025, February 28, 2025, available at national-by-state.pdf (March 15, 2025).
5 See 12 CFR 16; Office of the Comptroller of the Currency, Comptroller’s Licensing Manual Charters, p. 4, December 2021, available at
charters.pdf (last visited March 11, 2025) (hereinafter cited as “OCC Licensing Manual for Charters”).
6 12 CFR 5.20(i)(6)(iv)
7 OCC Licensing Manual for Charters at p. 3.
8 12 CFR 16.7
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2
Provide additional information as reasonably required by OFR, including financial and biographical details
of subscribers.10
Undergo OFR's review and character and financial investigations.
A bank or trust company must begin operations within 12 months of corporate existence, notify OFR of its
intended opening date, and comply with any OFR orders.11 OFR must also conduct a pre-opening examination and
issue a certificate of authorization if all requirements are satisfied.12 However, the OFR reports “[t]he 6-month time
requirement has been a problem for recent bank start-ups and is more restrictive than [the 12-month
requirement] federally.”13
Financial Institution Assessments
Financial institutions must pay semiannual assessments based on total assets as of the last business day of June
and December14, covering the next six months.15
Assessments are due by January 31 and July 31 and can be submitted by mail, wire transfer, automated
clearinghouse, or other OFR-approved electronic means.
Late penalties may be assessed up to $100 per day, and intentional late payments may incur administrative
fines up to $1,000 per day, unless excused for good cause.16
Certificate of Acquisition
Florida law allows a financial institution to acquire 50 percent or more of the assets, liabilities, or a combination of
both of any financial institution subject to the OFR approval and other specified conditions. For instance, both
financial institutions must adopt a plan for the acquisition, assumption, or sale which must contain specified
information.17 The OFR is required to approve or disapprove of the plan and, following adoption of the plan by the
transferring financial institution, must certify in writing that the plan has been approved.18 The transferring
financial institution may abandon the transaction despite the members’ or stockholders’ approval and the OFR’s
certification of the plan.19 Unlike the OFR’s authority to issue a Certificate of Merger when two credit unions
merge,20 the OFR does not have authority to issue a Certificate of Acquisition when a financial institution purchases
or wholly acquires another financial institution.21
Credit Unions
A credit union must have a federal or state charter to operate in Florida. Credit unions are chartered and regulated
as a national credit union by the National Credit Union Association (NCUA).22 Such membership is limited to a
group or groups with a common bond of occupation or association within a defined community. Deposits into a
federal credit union allow members to become owners of the credit union, run to become a credit union official,
and vote on certain matters.23
The Florida Financial Institutions Codes apply to all state-chartered credit unions.24 There are approximately 138
credit unions in Florida25 with 67 of them being state-chartered.26 Florida law provides that any person may be
9 S. 658.235(1), F.S.
10 S. 658.25(2), F.S.
11 S. 658.25(1), F.S.
12 S. 658.25(3), F.S.
13 The OFR, Agency Analysis of 2025 for HB 1459, p. 3 March 11, 2025. (hereinafter cited as “2025 OFR Agency Analysis for HB 1549”).
14 S. 655.047(1), F.S.
15 S. 655.047(3), F.S.
16 S. 655.047(2), F.S.
17 S. 655.414(2), F.S.
18 S. 655.414(4) and (5), F.S.
19 Id.
20 S. 657.065, F.S.
21 S. 655.414(5), F.S.
22 National Credit Union Administration, Overview of the Charter Application Process, April 14, 2022, available at Overview of the Charter
Application Process | NCUA (last visited March 15, 2025).
23 National Credit Union Administration, Overview of Federal Credit Unions, April 14, 2022, available at Overview of Federal Credit Unions |
NCUA (last visited March 15, 2025).
24 S. 655.005(1)(k), F.S., states that the Financial Institutions Codes includes ch. 657, credit unions.
25 National Credit Union Service Organization, Florida Credit Unions, available at Florida Credit Unions (last visited March 15, 2025).
26 2025 OFR Fast Facts at p. 4.
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3
admitted to a credit union upon payment of any required fee, payment of shares, and compliance with the credit
union bylaws.27 State-chartered credit unions operate as financial institutions except for exercising certain
incidental powers authorized by law.28
Investments
Florida law regulates how credit unions may invest funds. There are no limits with respect to investing in certain
assets, for instance United States Treasury bonds. Examples of other classes of assets that are subject to investment
limits include up to: 29
25% of capital in shares or deposits of a single corporate credit union or insured depository.30
1% of capital in corporate obligations of affiliates or subsidiaries.31
5% of capital in real estate, improvements, furniture, fixtures, and equipment used for business.32
Credit unions may exceed the 5% limit with OFR approval, if:
The investment is necessary and appropriate for the credit union’s size and needs.33
The investment benefits members.34
A plan exists to reduce the investment to statutory limits over time.35
In 2015, the NCUA removed the federal regulation that restricted federal credit unions from investing more than
five percent aggregate in fixed-asset investments.36
Reserve Accounts
Florida law requires credit unions to maintain the following reserve accounts:
Allowance for loan and lease losses;
Regular reserve to meet losses which must not be decreased unless the OFR approves the decrease or as
provided by rule of the commission;37
Allowance for investment losses; and
Special reserves to protect members against losses from risk assets or extended credit when required by
rule or other specified circumstances.38
In 2022, the NCUA amended federal regulations and removed the requirement for federal credit unions to maintain
a regular reserve account.39
OTHER RESOURCES:
Florida Credit Unions
Overview of the Charter Application Process | NCUA
Fixed-Asset Rule Provides Relief to More than 3,800 Federal Credit Unions | NCUA
27 S. 657.023(1), F.S.
28 S. 657.031(3), F.S.
29 S. 657.042, F.S.
30 S. 657.042(2)(a), F.S.
31 S. 657.042(4)(a), F.S.
32 S. 657.042(5)(a), F.S.
33 S. 657.042(5)(b)(1), F.S.
34 S. 657.042(5)(b)(3), F.S.
35 S. 657.042(5)(b)(4), F.S.
36 The NCUA, Fixed-Asset Rule Provides Relief to More than 3,800 Federal Credit Unions, July 2015, available at Fixed-Asset Rule Provides
Relief to More than 3,800 Federal Credit Unions | NCUA (last visited March 15, 2025).
37 Section 657.043(2), F.S.
38 Section 657.043, F.S.
39 The NCUA, Risk-Based Capital Frequently Asked Questions: Is Prompt Corrective Action (PCA) for Credit Unions Changing with the Revised
Capital Adequacy Standards?, April 14, 2022, available at Risk-Based Capital Frequently Asked Questions | NCUA (last visited March 15,
2025).
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4
BILL HISTORY
STAFF
DIRECTOR/ ANALYSIS
COMMITTEE REFERENCE ACTION DATE POLICY CHIEF PREPARED BY
Insurance & Banking Hamon Herrera
Subcommittee
Commerce Committee
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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 1549 2025
1 A bill to be entitled
2 An act relating to financial institutions; amending s.
3 655.047, F.S.; requiring state financial institutions
4 to pay a semiannual assessment for specified time
5 periods; requiring that the semiannual assessment be
6 received by the Office of Financial Regulation in a
7 specified manner and by specified dates; amending s.
8 655.414, F.S.; authorizing the office to issue a
9 specified certificate under certain circumstances;
10 amending s. 657.002, F.S.; revising the definition of
11 the term "equity"; amending s. 657.042, F.S.; revising
12 the investment powers of a credit union; amending s.
13 657.043, F.S.; conforming provisions to changes made
14 by the act; amending s. 658.235, F.S.; revising the
15 timeframe for certain requirements by the directors of
16 a proposed bank or trust company; amending s. 658.25,
17 F.S.; revising the timeframe within which a bank or
18 trust company corporation is required to open and
19 conduct specified business; providing an effective
20 date.
21
22 Be It Enacted by the Legislature of the State of Florida:
23
24 Section 1. Section 655.047, Florida Statutes, is amended
25 to read:
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26 655.047 Assessments; financial institutions.—
27 (1) Each state financial institution shall pay to the
28 office a semiannual assessment for the 6-month periods beginning
29 January 1 and July 1. Assessments must be based on the total
30 assets as shown on the statement of condition of the financial
31 institution on the last business day in December and the last
32 business day in June of each year.
33 (2) If mailed, The semiannual assessment must be received
34 by the office by mail, wire transfer, automated clearinghouse,
35 or other electronic means approved by the office on or before
36 March January 31 and September 30 July 31 of each year following
37 the semiannual assessment period. If transmitted through a wire
38 transfer, an automated clearinghouse, or other electronic means
39 approved by the office, the semiannual assessment must be
40 transmitted to the office on or before January 31 and July 31 of
41 each year. The office may levy a late payment penalty of up to
42 $100 per day or part thereof that a semiannual assessment
43 payment is overdue, unless it is excused for good cause.
44 However, for intentional late payment of a semiannual
45 assessment, the office shall levy an administrative fine of up
46 to $1,000 a day for each day the semiannual assessment is
47 overdue.
48 (3) The assessments required by this section cover the 6-
49 month period following the first day of the month in which they
50 are due. The office may prorate the amount of the semiannual
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51 assessment; however, no portion of a semiannual assessment is
52 refundable.
53 Section 2. Subsection (5) of section 655.414, Florida
54 Statutes, is amended to read:
55 655.414 Acquisition of assets; assumption of liabilities.—
56 With prior approval of the office, and upon such conditions as
57 the commission prescribes by rule, a financial institution may
58 acquire 50 percent or more of the assets of, liabilities of, or
59 a combination of assets and liabilities of any other financial
60 institution in accordance with the procedures and subject to the
61 following conditions and limitations:
62 (5) ADOPTED PLAN; APPROVAL CERTIFICATION CERTIFICATE;
63 ABANDONMENT; CERTIFICATE OF ACQUISITION, ASSUMPTION, OR SALE.—
64 (a) If the plan is adopted by the members or stockholders
65 of the transferring financial institution, the president or vice
66 president and the cashier, manager, or corporate secretary of
67 such institution shall submit the adopted plan to the office,
68 together with a certified copy of the resolution of the members
69 or stockholders approving it.
70 (b) Upon receipt of the certified copies and evidence that
71 the participating financial institutions have complied with all
72 applicable state and federal law and rules, the office shall
73 certify, in writing, to the participants that the plan has been
74 approved.
75 (c) Notwithstanding approval of the members or
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76 stockholders or certification by the office, the board of
77 directors of the transferring financial institution may abandon
78 the such a transaction without further action or approval by the
79 members or stockholders, subject to the rights of third parties
80 under any contracts relating thereto.
81 (d) After the acquiring financial institution completes
82 the plan and submits a request with any evidence required by the
83 office to confirm the transaction's completion, the office may
84 issue a certificate to the acquiring financial institution
85 confirming that the acquisition, assumption, or sale transaction
86 has been completed.
87 Section 3. Subsection (6) of section 657.002, Florida
88 Statutes, is amended to read:
89 657.002 Definitions.—As used in this chapter:
90 (6) "Equity" means undivided earnings, regular reserves,
91 and other reserves.
92 Section 4. Subsections (6) and (7) of section 657.042,
93 Florida Statutes, are renumbered as subsections (5) and (6),
94 respectively, and paragraph (b) of subsection (3) and present
95 subsection (5) of that section are amended, to read:
96 657.042 Investment powers and limitations.—A credit union
97 may invest its funds subject to the following definitions,
98 restrictions, and limitations:
99 (3) INVESTMENT SUBJECT TO LIMITATION OF TWO PERCENT OF
100 CAPITAL OF THE CREDIT UNION.—
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101 (b) Commercial paper and bonds of any corporation within
102 the United States which have a fixed maturity, as provided in
103 subsection (6) (7), except that the total investment in all such
104 paper and bonds may not exceed 10 percent of the capital of the
105 credit union.
106 (5) INVESTMENTS IN REAL ESTATE AND EQUIPMENT FOR THE
107 CREDIT UNION.—
108 (a) Up to 5 percent of the capital of the credit union may
109 be invested in real estate and improvements thereon, furniture,
110 fixtures, and equipment utilized or to be utilized by the credit
111 union for the transaction of business.
112 (b) The limitations provided by this subsection may be
113 exceeded with the prior written approval of the office. The
114 office shall grant such approval if it is satisfied that:
115 1. The proposed investment is necessary.
116 2. The amount thereof is commensurate with the size and
117 needs of the credit union.
118 3. The investment will be beneficial to the members.
119 4. A reasonable plan is developed to reduce the investment
120 to statutory limits.
121 Section 5. Subsections (3), (4), and (5) of section
122 657.043, Florida Statutes, are renumbered as subsections (2),
123 (3), and (4), respectively, and subsection (2) and present
124 subsection (4) of that section are amended, to read:
125 657.043 Reserves.—
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126 (2) REGULAR RESERVE.—The regular reserve shall belong to
127 the credit union and shall be used to meet losses. The regular
128 reserve may not be decreased without the prior written approval
129 of the office or as provided by rule of the commission.
130 (3)(4) SPECIAL RESERVES.—In addition to such regular
131 reserve, Special reserves shall be established:
132 (a) To protect members against losses resulting from
133 credit extended or from risk assets when required by rule, or
134 when found by the office, in any special case, to be necessary
135 for that purpose; or
136 (b) As authorized by the board of directors.
137 Section 6. Subsection (1) of section 658.235, Florida
138 Statutes, is amended to read:
139 658.235 Subscriptions for stock; approval of major
140 shareholders.—
141 (1) Within 6 months after commencement of corporate
142 existence, and At least 30 days before prior to opening, the
143 directors shall have completed the stock offering and shall file
144 with the office a final list of subscribers to all of the
145 capital stock of the proposed bank or trust company showing the
146 name and residence of each subscriber and the amount of stock of
147 every class subscribed for by each.
148 Section 7. Subsection (1) of section 658.25, Florida
149 Statutes, is amended to read:
150 658.25 Opening for business.—
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151 (1) A bank or trust company corporation shall open and
152 conduct a general commercial bank or trust business within 18
153 months after the issuance of a final order of approval by the
154 office no later than 12 months after the commencement of its
155 corporate existence.
156 Section 8. This act shall take effect July 1, 2025.
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INSURANCE & BANKING SUBCOMMITTEE
HB 1549 by Rep. Maggard
Financial Institutions
AMENDMENT SUMMARY
March 19, 2025
Amendment 1 by Rep. Maggard (Line 92): The amendment reinstates the 5% cap on credit
union investments in real estate, furniture, fixtures, and equipment, reversing the bill’s removal
of this limit. Additionally, the amendment modifies the provision governing elected officers,
directors, and committee members to clarify that while they may not be compensated for their
service (current law), they may be reimbursed for necessary expenses incidental to performing
official business for the credit union.
COMMITTEE/SUBCOMMITTEE AMENDMENT
Bill No. HB 1549 (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 Maggard offered the following:
4
5 Amendment (with title amendment)
6 Remove lines 92-120 and insert:
7 Section 4. Subsection (2) of section 657.028, Florida
8 Statutes, is amended to read;
9 657.028 Activities of directors, officers, committee
10 members, employees, and agents.—
11 (2) An elected officer, director, or committee member,
12 other than the chief executive officer, may not be compensated
13 for her or his service to the credit union but an elected
14 officer, director, or committee member may be reimbursed for
15 necessary expenses incidental to performing official business
16 for the credit union as such.
131563 - h1549-line92.docx
Published On: 3/19/2025 5:06:34 PM
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COMMITTEE/SUBCOMMITTEE AMENDMENT
Bill No. HB 1549 (2025)
Amendment No. 1
17
18
19 -----------------------------------------------------
20 T I T L E A M E N D M E N T
21 Remove lines 11-13 and insert:
22 the term "equity"; amending s. 657.028, F.S.;
23 authorizing an elected officer, director, or committee
24 member of a credit union to be reimbursed for certain
25 expenses; amending s. 657.043, F.S.; conforming
26 provision to changes made
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Published On: 3/19/2025 5:06:34 PM
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HB 1551
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 1551 COMPANION BILL: SB 426 (Martin)
TITLE: Attorney Fee Awards in Insurance Actions LINKED BILLS: None
SPONSOR(S): Cassel RELATED BILLS: None
Committee References
Civil Justice & Claims Insurance & Banking Judiciary
16 Y, 1 N
SUMMARY
Effect of the Bill:
HB 1551 requires a court to award prevailing party attorney fees in certain insurance lawsuits and specifies that,
where such fees are awardable, the offer of judgment statute does not apply. The bill also ensures that the two-way
attorney fee statute applies, or does not apply, to the various types of insurance disputes in the same manner as the
one-way attorney fee statute did before its limitation and eventual repeal.
Fiscal or Economic Impact:
The bill may have a fiscal impact on the state court system. The bill may also have an economic impact on the
private sector.
JUMP TO SUMMARY ANALYSIS RELEVANT INFORMATION BILL HISTORY
ANALYSIS
EFFECT OF THE BILL:
Attorney Fee Awards
The bill provides for the award of “two-way,” prevailing party attorney fees in most insurance disputes.
Specifically, the bill creates s. 627.4275, F.S., to require a court to award attorney fees to the prevailing party in any
civil action brought against an insurer by a named or omnibus insured or the named beneficiary under an
insurance policy executed by the insurer. (Section 4) Similarly, the bill creates s. 626.9375, F.S., to require a court
to award attorney fees to the prevailing party in any civil action brought against a surplus lines insurer by a named
or omnibus insured or the named beneficiary under an insurance policy executed by the insurer. (Section 3)
The bill provides that the insured or named beneficiary is the “prevailing party” when such person obtains a
judgment greater than the highest written, good faith settlement offer previously tendered by the insurer;
conversely, the bill provides that the insurer is the “prevailing party” when the insured or named beneficiary does
not obtain a judgment greater than the highest written, good faith settlement offer previously tendered by the
insurer. For purposes of determining who is the prevailing party, the bill defines “judgment” to include any
reasonable attorney fees, taxable costs, and prejudgment interest that the insured had incurred when the highest
written, good faith settlement offer previously tendered by the insurer was made, and provides that any settlement
offer tendered by an insurer which is not left open for at least five business days is not made in good faith. The
definitions of “prevailing party,” as it relates to an insured, and the definition of “judgment” incorporated into the
bill generally mirror the definitions of those terms which the courts used to apply when interpreting the now-
repealed one-way attorney fee statute. (Sections 3 and 4)
Finally, the bill specifies that s. 627.4275, F.S., applies, or does not apply, to specific insurance disputes in the same
manner in which Florida law used to apply the now-repealed one-way attorney fee statutes. Significantly, under
the bill:
The provision applies to suits brought against a surety insurer under a payment or performance bond
written by the insurer. (Section 11)
STORAGE NAME: h1551b.IBS
DATE: 3/18/2025
1
The provision applies in an uninsured motorist coverage dispute only if there is a dispute over whether the
policy provided coverage for an uninsured motorist proven to be liable for the accident. (Section 9)
The provision applies, but only in a limited manner, with respect to the Florida Motor Vehicle No-Fault
Law. (Section 10)
The provision applies to claims brought against the Florida Insurance Guaranty Association only if the
association denied a covered claim or a portion thereof. (Section 13)
The provision applies to claims brought against the Florida Workers’ Compensation Insurance Guaranty
Association only if the association denies a covered claim or a portion thereof. (Section 14)
Offer of Judgment
The bill amends s. 624.1552, F.S., to provide that, where prevailing party attorney fees are awardable under either
newly-created s. 627.4275, F.S., or newly-created s. 626.9375, F.S., the offer of judgment statute does not apply.
Practically speaking, this makes the two-way, prevailing party attorney fee statutes the sole mechanism by which
attorney fees may be awarded in most suits brought by an insured against insurers in this state, absent the award
of attorney fees as a sanction under s. 57.105, F.S. or a controlling contract provision. (Section 2)
Actions for Declaratory Relief
The bill repeals s. 86.121, F.S., relating to attorney fee awards in actions for declaratory relief to determine
insurance coverage after total coverage denial of a claim. Practically speaking, this means that attorney fee awards
for such an action would be governed by either newly-created s. 627.4275, F.S., or newly-created s. 626.9375, F.S.,
as applicable, absent a controlling contract provision. (Section 1)
Applicability and Effective Date
The bill provides an effective date of upon becoming a law. (Section 18) The bill also specifies that the changes
made by the bill apply to an insurance policy or contract issued on or after the bill’s effective date and may not be
construed to impair or limit any right under an insurance policy or contract issued before the bill’s effective date.
(Section 16) Finally, the bill directs the Division of Law Revision to replace the phrase “the effective date of this act”
with the date the bill becomes a law. (Section 17)
FISCAL OR ECONOMIC IMPACT:
STATE GOVERNMENT:
The bill may have a fiscal impact on the state court system. Whether such an impact is positive or negative will
depend on whether the bill increases or reduces the number of lawsuits filed against insurers in this state.
PRIVATE SECTOR:
The bill may have an economic impact on the private sector. Specifically, the bill may have a positive economic
impact on the private sector to the extent that it incentivizes insurers to expediently and fairly resolve insurance
disputes and insureds to accept fair settlement offers tendered by their insurers. The bill may also incentivize
attorneys to take insurance lawsuits which they might not otherwise have taken due to the financial constraints of
the insured. However, the bill may have a negative economic impact on the private sector to the extent that it
results in an increase in insurance premiums.
RELEVANT INFORMATION
SUBJECT OVERVIEW:
Attorney Fee Awards
JUMP TO SUMMARY ANALYSIS RELEVANT INFORMATION BILL HISTORY
2
When it comes to the payment of attorney fees following civil litigation, the traditional “English rule” entitled a
prevailing party in civil litigation to an attorney fees award as a matter of right. However, Florida, and a majority of
other United States jurisdictions, have since adopted what is now known as the “American rule,” under which each
party bears its own attorney fees unless a “fee-shifting statute” or contract provision provides an entitlement to an
attorney fees award. In Florida, several such fee-shifting statutes entitle the prevailing party or, in some instances,
a particular prevailing plaintiff, to have his or her fees paid by the other party.1
Before 2022, s. 627.428, F.S., commonly known as Florida’s “one-way attorney fee statute,” generally provided that,
when an insured or named beneficiary under an insurance policy prevailed in a legal action against the insurer, the
insurer must pay the insured’s attorney fees; a related statute, s. 626.9373, F.S., contained a similar one-way
attorney fee provision applicable to insurance disputes involving a surplus lines insurer. In interpreting these
sections, the Florida Supreme Court held that an insured was the prevailing party only when the insured
“obtain[ed] a judgment greater than any offer of settlement previously tendered by the insurer.”2 Further, the
Court held that the term “judgment” included the insured's damages plus any attorney fees, taxable costs, and
prejudgment interest incurred before the insurer's offer.3
Generally speaking, the one-way attorney fee statutes were designed to incentivize insurers to deal fairly with
insureds in resolving insurance disputes. However, several statutory provisions limited the application of s.
627.428, F.S., to certain types of insurance disputes; such provisions included language specifying that:
The statutes applied to suits brought against a surety insurer under a payment or performance bond
written by the insurer.4
The statutes applied in an uninsured motorist coverage dispute only if there was a dispute over whether
the policy provided coverage for an uninsured motorist proven to be liable for the accident.5
The statutes applied, but only in a limited manner, with respect to the Florida Motor Vehicle No-Fault Law.6
The statutes applied to claims brought against the Florida Insurance Guaranty Association only if the
association denied a covered claim or a portion thereof.7
The statutes applied to claims brought against the Florida Workers’ Compensation Insurance Guaranty
Association only if the association denied a covered claim or a portion thereof.8
Further, in 2022, the Florida Legislature eliminated the application of the one-way attorney fee statutes to lawsuits
arising under a residential or commercial property insurance policy.9 In 2023, the Florida Legislature eliminated
the one-way attorney fee statutes entirely, repealing ss. 627.428 and 626.9373, F.S.10
Thus, under current law, each party to an insurance lawsuit generally must pay the party’s own attorney fees,
regardless of whether or not the party prevails, absent the application of the offer of judgment statute in s. 768.79,
F.S., fees awarded as a sanction under s. 57.105, F.S.,11 or another controlling statute or contract provision
providing otherwise.
Offer of Judgment
1 See, e.g., s. 400.023, F.S. (nursing home resident); s. 440.34, F.S. (claimant in a workers’ compensation case in certain situations); s.
501.2105, F.S. (plaintiff in specified FDUTPA actions); s. 790.33, F.S. (plaintiff in a suit to enforce his or her firearm rights).
2 State Farm Mut. Auto. Ins. Co. v. Nichols, 932 So. 2d 1067 (Fla. 2006).
3 Id. at 1074.
4 S. 627.756, F.S. (2022).
5 S. 627.727(8), F.S. (2022).
6 S. 627.736(8), F.S. (2022).
7 S. 631.70, F.S. (2022).
8 S. 631.926, F.S. (2022).
9 In 2021, the Florida Legislature had created specific one-way attorney fee provisions for residential and commercial property insurance
lawsuits that based the entitlement to a fee award on the difference between the judgment obtained and the pre-suit settlement offer; these
provisions were eliminated as part of the 2022 reforms. Ch. 2021-77, L.O.F.; ch. 2022-271, L.O.F.
10 Ch. 2023-15, L.O.F.
11 Generally speaking, under this provision, a court may award attorney fees to the prevailing party in a civil proceeding when the court finds
that the losing party, or the losing party’s attorney, knew or should have known that a claim or defense when initially presented to the court
or at an time before trial: a) was not supported by the material facts necessary to establish the claim or defense; or b) would not be
supported by the application of then-existing law to those material facts. The court may also award attorney fees to a moving party that
proves, by a preponderance of the evidence, that any action taken by the opposing party was taken for the purpose of unreasonable delay.
JUMP TO SUMMARY ANALYSIS RELEVANT INFORMATION BILL HISTORY
3
Florida’s “offer of judgment” statute, codified in s. 768.79, F.S., provides attorney fee incentives to encourage swift
settlement and decrease litigation. Specifically, under this statute, if a defendant in a civil action for damages makes
an offer of judgment and the plaintiff does not accept such offer within 30 days, the plaintiff must pay the
defendant’s reasonable costs and attorney fees incurred from the date the defendant made the offer if the
judgment is one of no liability or the judgment obtained by the plaintiff is at least 25 percent less than the offer. On
the other hand, if the plaintiff files a demand for judgment and the defendant does not accept such demand within
30 days, the defendant must pay the plaintiff’s reasonable costs and attorney fees incurred from the date the
plaintiff made the demand if the plaintiff recovers a judgment in an amount at least 25 percent greater than the
demand.
Further, s. 624.1552, F.S., expressly provides that the offer of judgment statute applies to any civil action involving
an insurance contract. This clarification was made in 2023 in conjunction with the repeal of Florida’s one-way
attorney fee statutes.12
Actions for Declaratory Relief
In conjunction with the 2023 repeal of Florida’s one-way attorney fee statutes, the Florida Legislature enacted s.
86.121, F.S., to provide that, in an action brought for declaratory relief in state or federal court to determine
insurance coverage after the insurer has made a total coverage denial of a claim, either party is entitled to the
summary procedure provided in s. 51.011, F.S.,13 and the court shall advance the cause on the calendar.14 Further,
this section directs the court to award reasonable attorney fees to the named insured, omnibus insured, or named
beneficiary under a policy issued by the insurer upon rendition of a declaratory judgment in favor of the named
insured, omnibus insured, or named beneficiary; however, such fees are limited to those incurred in the action
brought under this chapter for declaratory relief to determine insurance coverage, and this section does not apply
to any action arising under a residential or commercial property insurance policy.
RECENT LEGISLATION:
YEAR BILL # HOUSE SPONSOR(S) SENATE SPONSOR OTHER INFORMATION
2023 CS/CS/HB 837 Gregory and Fabricio Hutson Took effect on March 24, 2023.
2022A SB 2-A Leek and Rommel Boyd Took effect on December 16,
2022, except as otherwise
expressly provided.
2021 CS/CS/CS SB 76 Rommel Boyd Took effect on July 1, 2021.
12 Supra, note 9.
13 Generally speaking, the summary procedure provides for expedited pleading, discovery, trial, and appeal deadlines.
14 Supra, note 9.
JUMP TO SUMMARY ANALYSIS RELEVANT INFORMATION BILL HISTORY
4
BILL HISTORY
STAFF
DIRECTOR/ ANALYSIS
COMMITTEE REFERENCE ACTION DATE POLICY CHIEF PREPARED BY
Civil Justice & Claims 16 Y, 1 N 3/13/2025 Jones Mawn
Subcommittee
Insurance & Banking Hamon Herrera
Subcommittee
Judiciary 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 1551 2025
1 A bill to be entitled
2 An act relating to attorney fee awards in insurance
3 actions; repealing s. 86.121, F.S., relating to
4 attorney fees in specified actions for declaratory
5 relief to determine insurance coverage after total
6 coverage denial of claims; amending s. 624.1552, F.S.;
7 revising the applicability of the offer of judgment
8 and demand for judgment provisions to civil actions
9 involving an insurance contract; creating s. 626.9375,
10 F.S.; requiring the award of prevailing party attorney
11 fees in certain civil actions brought against surplus
12 lines insurers; providing guidelines to determine
13 prevailing parties; defining the term "judgment";
14 providing a specified circumstance under which a
15 settlement offer is not a good faith settlement offer;
16 specifying the applicability of the offer of judgment
17 and demand for judgment provisions if prevailing party
18 attorney fees apply; creating s. 627.4275, F.S.;
19 requiring the award of prevailing party attorney fees
20 in certain civil actions brought against insurers;
21 providing guidelines to determine prevailing parties;
22 defining the term "judgment"; providing a specified
23 circumstance under which a settlement offer is not a
24 good faith settlement offer; specifying the
25 applicability of the offer of judgment and demand for
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26 judgment provisions if prevailing party attorney fees
27 apply; amending ss. 624.123, 624.488, 627.062,
28 627.401, 627.727, and 627.736, F.S.; providing for the
29 applicability of the prevailing party attorney fee
30 provision to specified insurers, insurance policies or
31 coverage types, and rate standards; amending s.
32 627.756, F.S.; providing for the applicability of the
33 prevailing party attorney fee provision to suits
34 brought by certain entities against surety insurers
35 under certain circumstances; providing that such
36 entities are deemed insureds or beneficiaries for
37 specified purposes; amending ss. 628.6016 and 632.638,
38 F.S.; providing for the applicability of the
39 prevailing party attorney fee provision to assessable
40 mutual insurers and fraternal benefit societies,
41 respectively; creating ss. 631.696 and 631.9245, F.S.;
42 providing for the applicability of the prevailing
43 party attorney fee provision to claims presented to
44 specified guaranty associations; providing general
45 applicability and construction; providing a directive
46 to the Division of Law Revision; providing an
47 effective date.
48
49 Be It Enacted by the Legislature of the State of Florida:
50
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51 Section 1. Section 86.121, Florida Statutes, is repealed.
52 Section 2. Section 624.1552, Florida Statutes, is amended
53 to read:
54 624.1552 Civil actions involving an insurance contract;
55 applicability of offer of judgment provisions.—Section 768.79
56 applies The provisions of s. 768.79 apply to any civil action
57 involving an insurance contract, except a civil action to which
58 s. 626.9375 or s. 627.4275 applies.
59 Section 3. Section 626.9375, Florida Statutes, is created
60 to read:
61 626.9375 Attorney fees.—
62 (1) Except as otherwise provided by law, in any civil
63 action brought against a surplus lines insurer by a named or
64 omnibus insured or the named beneficiary under an insurance
65 policy or contract executed by the insurer, the court shall
66 award reasonable attorney fees to the prevailing party. For
67 purposes of this subsection:
68 (a) The insured or named beneficiary is the prevailing
69 party when such person obtains a judgment greater than the
70 highest written, good faith settlement offer previously tendered
71 by the insurer.
72 (b) The insurer is the prevailing party when the insured
73 or named beneficiary does not obtain a judgment greater than the
74 highest written, good faith settlement offer previously tendered
75 by the insurer.
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76 (c) The term "judgment" includes damages and any
77 reasonable attorney fees, taxable costs, and prejudgment
78 interest that the insured had incurred when the highest written,
79 good faith settlement offer previously tendered by the insurer
80 was made.
81 (d) A settlement offer tendered by the insurer which is
82 not kept open for at least 5 business days is not a good faith
83 settlement offer.
84 (2) If subsection (1) applies to a civil action involving
85 an insurance policy or contract, s. 768.79 does not apply.
86 Section 4. Section 627.4275, Florida Statutes, is created
87 to read:
88 627.4275 Attorney fees.—
89 (1) Except as otherwise provided by law, in any civil
90 action brought against an insurer by a named or omnibus insured
91 or the named beneficiary under an insurance policy or contract
92 executed by the insurer, the court shall award reasonable
93 attorney fees to the prevailing party. For purposes of this
94 subsection:
95 (a) The insured or named beneficiary is the prevailing
96 party when such person obtains a judgment greater than the
97 highest written, good faith settlement offer previously tendered
98 by the insurer.
99 (b) The insurer is the prevailing party when the insured
100 or named beneficiary does not obtain a judgment greater than the
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101 highest written, good faith settlement offer previously tendered
102 by the insurer.
103 (c) The term "judgment" includes damages and any
104 reasonable attorney fees, taxable costs, and prejudgment
105 interest that the insured had incurred when the highest written,
106 good faith settlement offer previously tendered by the insurer
107 was made.
108 (d) A settlement offer tendered by the insurer which is
109 not kept open for at least 5 business days is not a good faith
110 settlement offer.
111 (2) If subsection (1) applies to a civil action involving
112 an insurance policy or contract, s. 768.79 does not apply.
113 Section 5. Subsection (4) of section 624.123, Florida
114 Statutes, is amended to read:
115 624.123 Certain international health insurance policies;
116 exemption from code.—
117 (4) Any international health insurance policy or
118 application solicited, provided, entered into, issued, or
119 delivered pursuant to this subsection is exempt from all
120 provisions of the insurance code, except that such policy,
121 contract, or agreement is subject to the provisions of ss.
122 624.155, 624.316, 624.3161, 626.951, 626.9511, 626.9521,
123 626.9541, 626.9551, 626.9561, 626.9571, 626.9581, 626.9591,
124 626.9601, 627.413, 627.4145, 627.4275, and 627.6043.
125 Section 6. Subsection (4) of section 624.488, Florida
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126 Statutes, is amended to read:
127 624.488 Applicability of related laws.—In addition to
128 other provisions of the code cited in ss. 624.460-624.488:
129 (4) Sections 627.291, 627.413, 627.4132, 627.416, 627.418,
130 627.420, 627.421, 627.425, 627.426, 627.4265, 627.427, 627.4275,
131 627.702, and 627.706; part XI of chapter 627; ss. 627.912,
132 627.913, and 627.918;
133
134 apply to self-insurance funds. Only those sections of the code
135 that are expressly and specifically cited in ss. 624.460-624.489
136 apply to self-insurance funds.
137 Section 7. Paragraph (b) of subsection (3) of section
138 627.062, Florida Statutes, is amended to read:
139 627.062 Rate standards.—
140 (3)
141 (b) Individual risk rates and modifications to existing
142 approved forms are not subject to this part or part II, except
143 for paragraph (a) and ss. 627.402, 627.403, 627.4035, 627.404,
144 627.405, 627.406, 627.407, 627.4085, 627.409, 627.4132,
145 627.4133, 627.415, 627.416, 627.417, 627.419, 627.425, 627.426,
146 627.4265, and 627.427, and 627.4275, but are subject to all
147 other applicable provisions of this code and rules adopted
148 thereunder.
149 Section 8. Subsections (3), (4), and (5) of section
150 627.401, Florida Statutes, are amended to read:
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151 627.401 Scope of this part.—No provision of this part of
152 this chapter applies to:
153 (3) Wet marine and transportation insurance, except ss.
154 627.409, and 627.420, and 627.4275.
155 (4) Title insurance, except ss. 627.406, 627.415, 627.416,
156 627.419, and 627.427, and 627.4275.
157 (5) Credit life or credit disability insurance, except ss.
158 627.419(5) and 627.4275 s. 627.419(5).
159 Section 9. Subsection (10) is added to section 627.727,
160 Florida Statutes, to read:
161 627.727 Motor vehicle insurance; uninsured and
162 underinsured vehicle coverage; insolvent insurer protection.—
163 (10) Section 627.4275 does not apply to any action brought
164 pursuant to this section against the uninsured motorist insurer
165 unless there is a dispute over whether the policy provides
166 coverage for an uninsured motorist proven to be liable for the
167 accident.
168 Section 10. Subsection (8) of section 627.736, Florida
169 Statutes, is amended to read:
170 627.736 Required personal injury protection benefits;
171 exclusions; priority; claims.—
172 (8) APPLICABILITY OF PROVISION REGULATING ATTORNEY FEES.—
173 With respect to any dispute under the provisions of ss. 627.730-
174 627.7405 between the insured and the insurer, or between an
175 assignee of an insured's rights and the insurer, ss. 627.4275
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176 and 768.79 the provisions of s. 768.79 apply, except as provided
177 in subsections (10) and (15), and except that any attorney fees
178 recovered must:
179 (a) Comply with prevailing professional standards;
180 (b) Not overstate or inflate the number of hours
181 reasonably necessary for a case of comparable skill or
182 complexity; and
183 (c) Represent legal services that are reasonable and
184 necessary to achieve the result obtained.
185
186 Upon request by either party, a judge must make written
187 findings, substantiated by evidence presented at trial or any
188 hearings associated therewith, that any award of attorney fees
189 complies with this subsection. Attorney fees recovered under ss.
190 627.730-627.7405 must be calculated without regard to a
191 contingency risk multiplier.
192 Section 11. Subsection (1) of section 627.756, Florida
193 Statutes, is amended to read:
194 627.756 Bonds for construction contracts; attorney fees in
195 case of suit.—
196 (1) Section 627.4275 applies to In a suit brought by an
197 owner, a contractor, a subcontractor, a laborer, or a
198 materialman against a surety insurer under payment or
199 performance bonds written by the insurer under the laws of this
200 state to indemnify against pecuniary loss by breach of a
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201 building or construction contract, upon the rendition of a
202 judgment or decree by any of the courts of this state against
203 the surety insurer and in favor of the owner, contractor,
204 subcontractor, laborer, or materialman, the trial court or, in
205 the event of an appeal in which the owner, contractor,
206 subcontractor, laborer, or materialman prevails, the appellate
207 court, shall adjudge or decree against the surety insurer and in
208 favor of the owner, contractor, subcontractor, laborer, or
209 materialman a reasonable sum as fees or compensation for the
210 attorney prosecuting the suit in which the recovery is had.
211 Owners, contractors, subcontractors, laborers, and materialmen
212 are deemed to be insureds or beneficiaries for the purposes of
213 this section.
214 Section 12. Subsection (4) of section 628.6016, Florida
215 Statutes, is amended to read:
216 628.6016 Applicability of related laws.—In addition to
217 other provisions of the code cited in ss. 628.6011-628.6018:
218 (4) Sections 627.291, 627.413, 627.4132, 627.416, 627.418,
219 627.420, 627.421, 627.425-627.427, 627.4275, 627.702, and
220 627.706; part XI of chapter 627; ss. 627.912, 627.913, and
221 627.918; and
222
223 apply to assessable mutual insurers; however, ss. 628.255,
224 628.411, and 628.421 do not apply. No section of the code not
225 expressly and specifically cited in ss. 628.6011-628.6018
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226 applies to assessable mutual insurers. The term "assessable
227 mutual insurer" shall be substituted for the term "commercial
228 self-insurer" as appropriate.
229 Section 13. Section 631.696, Florida Statutes, is created
230 to read:
231 631.696 Attorney fees.—Section 627.4275 does not apply to
232 any claim presented to the association under this part, unless
233 the association denies, by affirmative action other than delay,
234 a covered claim or a portion thereof.
235 Section 14. Section 631.9245, Florida Statutes, is created
236 to read:
237 631.9245 Attorney fees.—Section 627.4275 does not apply to
238 any claim presented to the corporation under this part, unless
239 the corporation denies, by affirmative action other than delay,
240 a covered claim or a portion thereof.
241 Section 15. Subsections (11), (12), and (13) of section
242 632.638, Florida Statutes, are renumbered as subsections (12),
243 (13), and (14), respectively, and a new subsection (11) is added
244 to that section, to read:
245 632.638 Applicability of other code provisions.—In
246 addition to other provisions contained or referred to in this
247 chapter, the following chapters and provisions of this code
248 apply to fraternal benefit societies, to the extent applicable
249 and not in conflict with the express provisions of this chapter
250 and the reasonable implications thereof:
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251 (11) Section 627.4275;
252 Section 16. This act applies to an insurance policy or
253 contract issued on or after the effective date of this act and
254 may not be construed to impair or limit any right under an
255 insurance policy or contract issued before the effective date of
256 this act.
257 Section 17. The Division of Law Revision is directed to
258 replace the phrase "the effective date of this act" wherever it
259 occurs in this act with the date this act becomes a law.
260 Section 18. This act shall take effect upon becoming a
261 law.
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hb1551-00
HM 4063
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 #: HM 4063 COMPANION BILL: SM 1488 (Avila)
TITLE: Framework for a Sovereign Wealth Fund LINKED BILLS: None
SPONSOR(S): Anderson RELATED BILLS: None
Committee References
Insurance & Banking Commerce
SUMMARY
Effect of the Bill:
Urges the Congress of the United States to establish a framework for a sovereign wealth fund by enacting legislation
necessary for establishing such a framework.
Fiscal or Economic Impact:
None
JUMP TO SUMMARY ANALYSIS RELEVANT INFORMATION BILL HISTORY
ANALYSIS
EFFECT OF THE BILL:
Urges the Congress of the United States to establish a framework for a sovereign wealth fund by enacting
legislation necessary for establishing such a framework.
RELEVANT INFORMATION
SUBJECT OVERVIEW:
On February 3, 2025, President Trump signed an executive order (EO 14196) directing the Treasury and
Commerce Secretaries to develop a plan for the establishment of a sovereign wealth fund (SWF). An SWF is a
government-owned investment fund that invests in financial assets and real estate to generate a profit for its
citizens. SWFs are funded by a variety of sources, including surplus reserves from natural resources, trade
surpluses, bank reserves, privatization money, and governmental transfer payments.
Several U.S. states (11) have created SWFs to finance certain services – typically public education – or to provide
general revenue to the state government and/or its citizens. For example, the Alaska Permanent Fund (APF)
distributes the money it makes from the state’s nonrenewable resources to the state’s residents as annual
dividends. The APF divides its fund deposits into two parts: the principal (non-spendable) and the earnings reserve
account (spendable), which are commingled and invested under the same asset allocation.
STORAGE NAME: h4063.IBS
DATE: 3/18/2025
1
BILL HISTORY
STAFF
DIRECTOR/ ANALYSIS
COMMITTEE REFERENCE ACTION DATE POLICY CHIEF PREPARED BY
Insurance & Banking Hamon Schenk
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
R E P R E S E N T A T I V E S
HM 4063 2025
1 House Memorial
2 A memorial to the Congress of the United States,
3 urging Congress to establish a framework for a
4 sovereign wealth fund for the United States.
5
6 WHEREAS, on February 3, 2025, President Donald J. Trump
7 issued an executive order that directs the Secretary of the
8 United States Department of the Treasury and the Secretary of
9 the United States Department of Commerce to develop a plan
10 within 90 days for the creation of a sovereign wealth fund, and
11 WHEREAS, while the secretaries are developing the plan,
12 Congress should be proactive and establish the framework for the
13 sovereign wealth fund, and
14 WHEREAS, if Congress establishes the framework, the
15 sovereign wealth fund can be more efficiently implemented, and
16 WHEREAS, the sovereign wealth fund can be used to promote
17 fiscal sustainability, lessen the burden of taxes on families
18 and small business, establish long-term economic security, fund
19 critical projects, and promote the United States' economic and
20 strategic leadership internationally, NOW, THEREFORE,
21
22 Be It Resolved by the Legislature of the State of Florida:
23
24 That the Congress of the United States is urged to
25 establish a framework for a sovereign wealth fund.
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hm4063-00
F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
R E P R E S E N T A T I V E S
HM 4063 2025
26 BE IT FURTHER RESOLVED that the Legislature urges Congress
27 to enact any legislation necessary to establish the framework
28 for the sovereign wealth fund.
29 BE IT FURTHER RESOLVED that the Secretary of State is
30 directed to dispatch copies of this memorial to the President of
31 the United States, to the President of the United States Senate,
32 to the Speaker of the United States House of Representatives,
33 and to each member of the Florida delegation to the Congress of
34 the United States.
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hm4063-00
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