Insurance & Banking Subcommittee — Meeting Packet (January 21, 2026)
Summary
Meeting packet for the Insurance & Banking Subcommittee for Wednesday, January 21, 2026, 10:00 AM to 12:15 PM at Morris Hall. The meeting notice lists HB 381 Office of Financial Regulation, HB 427 Public Adjuster Contracts, HB 767 Residential Property Insurance, HB 777, HB 893, HB 895 and HB 1399 Property Insurance Affiliates. The HB 381 bill analysis states that the bill creates cybersecurity requirements for mortgage and money services businesses and expands the scope of the Financial Technology Sandbox, with a possible indeterminate fiscal impact. The packet closes with the text of HB 1399, whose last pages set standards for when rates are deemed inadequate or unfairly discriminatory and which takes effect July 1, 2026 except as otherwise provided.
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“Insurance & Banking Subcommittee — Meeting Packet (January 21, 2026).”
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Insurance & Banking Subcommittee
Wednesday, January 21, 2026
10:00 AM - 12:15 PM
Morris Hall (17 HOB)
Meeting Packet
Daniel Perez Bradford Yeager
Speaker Chair
Committee Meeting Notice
HOUSE OF REPRESENTATIVES
Insurance & Banking Subcommittee
Start Date and Time: Wednesday, January 21, 2026 10:00 AM
End Date and Time: Wednesday, January 21, 2026 12:15 PM
Location: Morris Hall (17 HOB)
Duration: 2.25 hrs
Consideration of the following bill(s):
HB 381 Office of Financial Regulation by Barnaby
HB 427 Public Adjuster Contracts by Melo
HB 767 Residential Property Insurance by Benarroch
HB 777 Pub. Rec./Office of Financial Regulation by Barnaby
HB 893 Trust Fund Interest for Purposes Approved by Supreme Court by Koster
HB 895 Trustee Settlement and Discharge by Hodgers, Fabricio
HB 1399 Property Insurance Affiliates by Berfield
NOTICE FINALIZED on 01/16/2026 4:30PM by Young.Kimberly
01/16/2026 04:31:05PM Leagis ® Page 1 of 1
HB 381
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 381 COMPANION BILL: None
TITLE: Office of Financial Regulation LINKED BILLS: HB 777 Barnaby
SPONSOR(S): Barnaby RELATED BILLS: CS/SB 540 (Martin)
Committee References
Insurance & Banking Information Technology Budget & Commerce
Policy
SUMMARY
Effect of the Bill:
The bill creates cybersecurity requirements for mortgage and money services businesses. The bill excludes certain
investment advisers from registration requirements. The bill expands the scope of the Financial Technology
Sandbox. The bill modifies disciplinary actions and penalties for mortgage and money services businesses. The bill
relaxes minimum qualifications for certain directors and officers of financial institutions. The bill modifies credit
union member qualifications and meeting requirements and eliminates a fixed asset investment limit. The bill also
provides financial institutions and certain family trust companies with additional time to pay fees.
Fiscal or Economic Impact:
There may be an indeterminate fiscal impact on the state government and private sector.
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ANALYSIS
EFFECT OF THE BILL:
Cybersecurity requirements:
The bill requires mortgage and money services businesses to develop and maintain comprehensive cybersecurity
programs designed to protect nonpublic personal information of customers. (Sections 1 and 6).
The bill defines “nonpublic personal information” as:
Personally identifiable financial information; and
Any list, description, or other grouping of customers that is derived using any personally identifiable
financial information that is not publicly available, such as account numbers, including any list of
individuals' names and street addresses that is derived, in whole or in part, using personally identifiable
financial information that is not publicly available. (Sections 1 and 6).
Information security program requirements:
The bill requires each mortgage and money service business licensee to develop, implement, and maintain a
comprehensive written information security program1 that contains administrative, technical, and physical
safeguards for the protection of the licensee’s information system and nonpublic personal information. Each
licensee must ensure that the information security program meets all of the following criteria:
Be commensurate with the following measures:
o Size and complexity of the licensee.
o Nature and scope of the licensee’s activities.
1 The bill defines "information security program" as the administrative, technical, or physical safeguards used to access,
collect, distribute, process, protect, store, use, transmit, dispose of, or otherwise handle customer information. (Sections 1 and
6).
STORAGE NAME: h0381.IBS
DATE: 1/17/2026
1
HB 381
o Sensitivity of nonpublic personal information that is used by the licensee or that is in the licensee’s
possession, custody, or control.
Be designed to do all of the following:
o Protect the security and confidentiality of nonpublic personal information and the security of the
licensee’s information system.
o Protect against threats or hazards to the security or integrity of nonpublic personal information
and the licensee’s information system.
o Protect against unauthorized access to or the use of nonpublic personal information and minimize
the likelihood of harm to any customer.
Define and periodically reevaluate the retention schedule and the mechanism for the destruction of
nonpublic personal information if retention is no longer necessary for the licensee’s business operations or
required by law.
Regularly test and monitor systems and procedures for the detection of actual and attempted attacks on, or
intrusions into, the licensee’s information system.
Be monitored, evaluated, and adjusted to meet the following requirements:
o Determine whether the licensee’s program is consistent with relevant changes in technology.
o Confirm the licensee’s program accounts for the sensitivity of nonpublic personal information.
o Identify changes that may be necessary to the licensee’s information system.
o Eliminate any internal or external threats to nonpublic personal information.
o Amend the licensee’s program for any of the licensee’s changing business arrangements, such as
mergers and acquisitions, alliances and joint ventures, and outsourcing arrangements. (Sections 1
and 6).
Written response plan requirements:
The bill requires a mortgage or money services business licensee to establish a written incident response plan
designed to promptly respond to, and recover from, a cybersecurity event2 that includes:
The confidentiality, integrity, or availability of nonpublic personal information in the licensee’s possession;
The licensee’s information system; or
The continuing functionality of any aspect of the licensee’s operations. (Sections 1 and 6).
The written incident response plan must address all of the following:
The licensee’s internal process for responding to a cybersecurity event.
The licensee’s incident response plan goals.
The assignment of clear roles, responsibilities, and levels of decision making authority for the licensee’s
personnel that participate in the incident response plan.
External communications, internal communications, and information sharing related to a cybersecurity
event.
The identification of remediation requirements for weaknesses identified in information systems and
associated controls.
The documentation and reporting regarding cybersecurity events and related incident response activities.
The evaluation and revision of the incident response plan following a cybersecurity event.
The process by which any required notice must be given. (Sections 1 and 6).
The bill authorizes OFR to adopt rules allowing a mortgage or money services business compliant with the Federal
Trade Commission's Standards for Safeguarding Customer Information, 16 C.F.R. part 314, to be deemed in
compliance with the bill’s information security program and written response plan requirements. (Sections 1 and
6).
2 The bill defines "cybersecurity event" as an event resulting in unauthorized access to, or disruption or misuse of, an
information system, information stored on such information system, or customer information held in physical form. (Sections
1 and 6).
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HB 381
Cybersecurity investigation requirements:
The bill requires a mortgage or money services business licensee, or an outside vendor or third-party service
provider that the licensee has designated to act on its behalf, to conduct a prompt investigation of the
cybersecurity event if a cybersecurity event has or may have occurred. During the investigation, the licensee or
outside vendor or third-party service provider must, to the extent possible comply with the following minimum
requirements:
Confirm that a cybersecurity event has occurred.
Identify the date that the event first occurred.
Assess the nature and scope of the cybersecurity event.
Identify all nonpublic personal information that may have been compromised.
Perform or oversee reasonable measures to restore the security of any compromised information system in
order to prevent further unauthorized acquisition, release, or use of nonpublic personal information that is
in the licensee’s, outside vendor’s, or third-party service provider’s possession, custody, or control.
(Sections 1 and 6).
If a licensee learns that a cybersecurity event has occurred, or may have occurred, in an information system
maintained by a third-party service provider of the licensee, the licensee must complete an investigation or
confirm and document that the third-party service provider has completed an investigation that complies with the
requirements summarized above. A licensee must maintain all records and documentation related to the licensee’s
investigation of a cybersecurity event for a minimum of 5 years and must produce the records and documentation
to the Office of Financial Regulation (“OFR”) upon request. (Sections 1 and 6).
A mortgage or money services business that has fewer than twenty employees or independent contractors on its
workforce or fewer than five hundred customers during a calendar year, are not subject to the information
technology program and cybersecurity event investigation requirements created in the bill. A licensee that no
longer qualifies for such an exemption has 180 calendar days to comply with the requirements after the date of the
disqualification. Each licensee shall maintain a copy of the information security program for a minimum of 5 years
and must make it available to the office upon request or as part of an examination. (Sections 1 and 6).
Cybersecurity notice requirement:
The bill requires each mortgage or money services business licensee to provide notice as prescribed by the Florida
Financial Services Commission (“Commission”) rule to OFR of any security breach affecting 500 or more
individuals. Upon OFR’s request, each licensee must provide a quarterly update of a cybersecurity event
investigation until conclusion of the investigation. (Sections 1 and 6).
Investment adviser exemptions:
The bill revises the qualifications for being exempt from having to register as an investment advisor. Under the bill,
a person with fewer than six clients who are Florida residents during the preceding 12 months is exempt from
registering as an investment adviser if:
The person does not have a place of business in Florida; or
The person has a place of business in Florida and during the preceding 12 months, has no clients who are
not Florida residents. (Section 3).
The bill defines “place of business” as an office at which the person regularly provides investment advisory
services, solicits, meets with, or otherwise communicates with clients, as well as any locations the person holds out
to the general public as a location in which they do these things. (Section 3).
The bill also adds an exemption from registration as an investment advisor for family offices, as defined by
Securities and Exchange Commission Rule 202(a)(11)(G)-1(b) and (d) under the Investment Advisers Act of 1940.3
(Section 3).
3 17 C.F.R. 275.202(a)(11)(G)-1.
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HB 381
Financial technology sandbox:
The bill amends the type of products and services that qualify for participation in the Financial Technology
Sandbox (“Sandbox”) by removing the requirement that products and services be innovative and by expanding
eligibility to include products and services related to credit, banking, money transmission, and securities
transactions. (Section 4).
The bill amends the definition of “business entity” to remove the requirement that the business be domestic and to
specify that a “business entity” is any company, limited liability company, or trust that may be fictitiously named
and that does business in the state. (Section 4).
The bill broadens the scope of Florida laws that may be waived by participating in the Sandbox by repealing the
specific statutes that do not apply to a sandbox licensee and replacing it by providing OFR the authority to waive
any of the sections within the following chapters:
Chapter 516, Consumer Finance.
Chapter 517, Securities Transactions.
Chapter 520, Retail Installment Sales.
Chapter 537, Title Loans.
Part I or part II of chapter 560, General Provisions of Money Services Businesses or Payment Instruments
and Funds Transmission.
Chapter 655, Financial Institutions Generally.
Chapter 657, Credit Unions.
Chapter 658, Banks and Trust Companies.
Chapter 660, Trust Business.
Chapter 662, Family Trust Companies.
Chapter 663, International Banking. (Section 4).
The bill authorizes OFR to grant a sandbox applicant a waiver of general law on the following conditions:
The general law or rule does not currently authorize the financial product or service to be made available
to consumers.
The waiver is not broader than necessary to accomplish the specified purposes and standards, as
determined by OFR.
Any provision relating to the liability of an incorporator, director, or officer of the applicant is not eligible
for a waiver. (Section 4).
When deciding whether to approve a sandbox application, the bill removes the following requirements for OFR to
consider:
The potential risk to consumers and the methods used to protect them.
The company’s market analysis, financial projections or pro forma financial statements, and evidence of the
applicant’s financial viability.
Whether the applicant has the necessary personnel, adequate financial and technical expertise, and
sufficient testing, monitoring, and assessing the product or service. (Section 4).
The bill removes the limits on how many customers may receive a financial product or service participating in the
Sandbox, which were previously 15,000 or 25,000 under certain conditions. (Section 4).
The bill amends statutory construction to provide that approval of a sandbox license deems the licensee to possess
the appropriate license under any general law, rather than authorizing certain activity within limited chapters, and
provides that approval of the license does not confer a property right. (Section 4).
The bill specifies that the financial product or service covered by the license is not endorsed by the state and that
the state is not liable for losses or damages caused by such product or service. (Section 4).
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HB 381
Disciplinary actions for Money Services Businesses:
The bill provides that a money services business can be disciplined for actions committed by a party that was
affiliated with the money services business at the time of the act. (Section 5).
The bill adds the following to the list of actions that constitute grounds for discipline:
Having been convicted of, or entered a plea of guilty or nolo contendere to, federal crimes related to
money-laundering and the Bank Secrecy Act, regardless of adjudication.
Having been convicted of, or entered a plea of guilty or nolo contendere to, a violation of federal rules
promulgated by the Financial Crimes Enforcement Network (FinCEN) applicable to money services
businesses, regardless of adjudication.
Failing to provide notice of a security breach to the Florida Department of Legal Affairs and to affected
individuals. (Section 5).
The bill provides that OFR is not required to follow the requirements of Florida’s Administrative Procedure Act to
summarily suspend the license of a money services business, and repeals the requirement for OFR to hold a
proceeding to issue a final order for a summary suspension. (Section 5).
Instead, the bill requires OFR to issue an emergency suspension order if OFR finds that a licensee poses an
immediate, serious danger to the public health, safety, and welfare. (Section 5).
The bill also requires OFR to immediately suspend a license, without making further findings of immediate danger,
necessity, or procedural fairness, if any of the following occur:
The money services business fails to provide OFR with required records upon written request;
The money services business fails to maintain a federally insured depository account; or
If a control person of the business (directors, officers, partners, and certain shareholders) is criminally
charged with certain crimes. (Section 5).
Under current law, OFR is permitted, but not required to suspend a licensee upon making the aforesaid findings.4
Notice requirements for financial Institutions:
The bill requires financial institutions to take reasonable measures to protect and secure electronic data containing
personal information. (Section 7).
The bill requires financial institutions to notify OFR upon the occurrence or detection of a data breach of security5
affecting 500 or more people in which personal information may have been compromised, gathered, or distributed.
(Section 7).
The written notice must be provided no later than 30 days after a determination that a breach has occurred or
after the financial institution has reason to believe a breach occurred. The financial institution may receive an
additional 15 days to provide the notice if good cause for the delay is provided in writing to OFR within 30 days
after determination of the breach or after the institution has reason to believe that a breach occurred. (Section 7).
The written notice of the breach must contain:
A synopsis of the events surrounding the breach at the time notice is provided.
The number of individuals in this state who were or potentially have been affected by the breach.
Any services related to the breach being offered or scheduled to be offered, without charge, by the covered
entity to individuals, and instructions as to how to use such services.
4 S. 560.114, F.S.
5 The bill defines “Breach of security” or “breach” as the unauthorized access of data in electronic form containing personal
information. Good faith access of personal information by an employee or agent of the covered entity does not constitute a
breach of security, provided that the information is not used for a purpose unrelated to the business or subject to further
unauthorized use. S. 501.171, F.S.
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HB 381
A copy or explanation of the notice required to individuals, if applicable.
The name, address, telephone number, and e-mail address of the employee or agent of the covered entity
from whom additional information may be obtained about the breach.
Steps the institution has taken to rectify the breach.
If requested, a police report, incident report, or computer forensics report and copy of the policies in place
regarding breaches. (Section 7).
The bill defines “personal information” as:
An individual’s first name, or first initial, and last name, in combination with any of the following data for
that individual.
o A social security number.
o A driver license or identification card number, passport number, military identification number, or
other similar number issued on a government document.
o A financial account number or credit or debit card number, in combination with any required
security code, access code, or password that is necessary to permit access to the individual’s
financial account
o The individual’s biometric data.
Any information regarding the individual’s geolocation.
A username or e-mail address, in combination with a password or security question and answer that would
permit access to an online account. (Section 7).
The bill requires financial institutions to notify individuals whose personal information was accessed as a result of
a breach. (Section 7).
The bill also requires financial institutions to notify all consumer reporting agencies that maintain files on
consumers on a nationwide basis, if more than 1,000 individuals are affected by a security breach at a single time.
(Section 7).
Examination fee deadlines for financial institutions and family trusts:
The bill increases the timeframe that financial institutions and family trusts have to remit payment to OFR for
examination costs from 30 days to 45 days. (Sections 8 and 14).
Credit union requirements:
The bill changes the residency requirement for forming a credit union from requiring all members to be residents
of Florida to instead requiring only a majority to be residents. (Section 9).
The bill permits members to hold meetings virtually and without an in person quorum, subject to the credit union’s
bylaws. (Section 10).
The bill repeals the current law provision that limits the amount that credit unions can invest in fixed assets such
as real estate or equipment to 5%. Under the bill, credit unions are no longer subject to a limit. (Section 11).
Experience requirements for directors and officers of banks and trust companies:
The bill changes the requirement for CEOs, presidents, and directors of banks and trust companies to have had at
least 1 year of experience as an executive officer, regulator, or director of a financial institution from within the last
5 years to within the last 10 years. (Section 12).
The bill also requires OFR to consider the following factors when deciding whether to approve a proposed
president or chief executive officer (currently, OFR is only permitted to consider these factors when waiving the
experience requirement):
Adequacy of overall experience or expertise;
Likelihood of successful operation of the proposed state bank or trust company;
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HB 381
Adequacy of proposed capitalization;
Proposed capital structure;
Experience of other proposed officers and directors; and
Any other relevant information. (Section 12).
Effective date:
The bill provides an effective date of July 1, 2026. (Section 16).
RULEMAKING:
The bill grants OFR rulemaking authority to adopt rules to implement the bill’s cybersecurity requirements for
mortgage and money services businesses. The bill authorizes OFR to adopt rules allowing a mortgage or money
services business compliant with the Federal Trade Commission's Standards for Safeguarding Customer
Information, 16 C.F.R. part 314, to be deemed in compliance with the bill’s information security program
requirements. (Sections 1 and 6).
Lawmaking is a legislative power; however, the Legislature may delegate a portion of such power to executive
branch agencies to create rules that have the force of law. To exercise this delegated power, an agency must
have a grant of rulemaking authority and a law to implement.
FISCAL OR ECONOMIC IMPACT:
STATE GOVERNMENT:
There may be an indeterminate impact on state government, to the extent that OFR may incur costs to implement
the bill.
PRIVATE SECTOR:
There may be an indeterminate impact on the private sector, to the extent that the regulated businesses incur
compliance costs.
RELEVANT INFORMATION
SUBJECT OVERVIEW:
Office of Financial Regulation
OFR is responsible for all activities of the Financial Services Commission relating to the regulation of banks, credit
unions, other financial institutions, finance companies, and the securities industry.6 The Division of Consumer
Finance within OFR licenses and regulates various aspects of the non-depository financial services industries,
including mortgage and money services businesses.7
The Financial Services Commission (“Commission”) is an executive agency within the Department of Financial
Services and is composed of the Governor, the Attorney General, the Chief Financial Officer, and the Commissioner
of Agriculture.8
Cybersecurity requirements for mortgage and money services businesses:
6 S. 20.121(3)(a)(2), F.S.
7 The OFR, Division of Consumer Finance, https://flofr.gov/divisions-offices/division-of-consumerfinance (last visited Jan. 14,
2026).
8 S. 20.121(3), F.S.
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HB 381
Under Florida’s consumer protection laws, businesses must take reasonable measures to protect and secure
electronic data containing personal information.9 Businesses are also required to notify the Florida Department of
Legal Affairs of any data breaches affecting 500 or more individuals in Florida.10 However, current law does not
require OFR to be notified of such data breaches or provide OFR with authority to enforce any violation of the data
security provisions in the consumer protection laws.11
Financial institutions12 that are subject to the Federal Trade Commission’s (FTC) jurisdiction are regulated under
the Federal Standards for Safeguarding Customer Information (Safeguard Rules).13 Financial institutions subject to
the Safeguard Rules are required to develop, implement, and maintain a comprehensive written information
security program that must be tailored to the size and complexity of the institution’s system and activities, and
must meet other specified criteria.14 However, several of the Safeguard Rules do not apply to financial institutions
that maintain customer information for fewer than 5,000 customers.15
Investment adviser registration:
Under the Florida Securities and Investor Protection Act, investment advisers must register with OFR, unless
exempt.16 “Investment adviser” means a person, other than an associated person of an investment adviser or a
federal covered adviser,17 that receives compensation, directly or indirectly, and engages for all or part of the
person’s time, directly or indirectly, or through publications or writings, in the business of advising others as to the
value of securities or as to the advisability of investments in, purchasing of, or selling of securities.18
Under the federal Investment Advisers Act of 1940, states may not require the registration of an investment
adviser who:
does not have a place of business within the state; and
during the preceding 12 months, has had fewer than 6 clients who are residents of the state.19
Under current Florida law, persons are exempt from registering as an investment adviser if they have fewer than 6
clients who are residents of Florida, regardless of whether the person has a place of business in Florida or how
many clients they have who are not residents of Florida.20
The Investment Advisers Act of 1940 excludes “family offices” from the definition of investment adviser for
registration purposes.21 A family office is an entity that has no other clients other than “family clients,” is wholly
owned or controlled by family clients, and does not hold itself out to the public as an investment adviser.22 Family
clients include family members, certain key employees, family trusts, and charities funded by the family.23
9 S. 501.171(2), F.S.
10 S. 501.171(3), F.S.
11 S. 501.171(9)(a), F.S.
12 16 C.F.R. 314.2 defines “financial institution” as any institution the business of which is engaging in activity that is financial
in nature or incidental to such financial activities as described in section 4(k) of the Bank Holding Company Act of 1956, 12
U.S.C. 1843(k). An institution that is significantly engaged in financial activities, or significantly engaged in activities incidental
to such financial activities, is a financial institution.
13 16 C.F.R. 314.1(b).
14 16 C.F.R. 314.3, 16 C.F.R. 314.4.
15 16 C.F.R. 314.6.
16 S. 517.12, F.S.
17 S. 517.021(14), F.S.
18 S. 517.021(20)(a), F.S.
19 15 U.S.C. 80b-18a(d)
20 S. 517.021(2)(b), F.S.
21 17 C.F.R. 275.202(a)(11)(G)-1(a).
22 17 C.F.R. 275.202(a)(11)(G)-1(b).
23 17 C.F.R. 275.202(a)(11)(G)-1(d)(4).
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HB 381
Financial technology sandbox:
The “Financial Technology Sandbox” (“Sandbox”) aims to allow financial technology innovators to test new
products and services in a supervised, flexible regulatory Sandbox, using exceptions from specified general law and
waivers of the corresponding rule requirements under defined conditions.24
Before making an innovative financial product or service available to consumers in the Sandbox, a business entity
must file an application for licensure with OFR.25 The business entity must specify the general law or rule
requirements for which an exception or waiver is sought and the reasons why these requirements prevent the
innovative financial product or service from being made available to consumers.26
The application must also contain: 27
The nature of the innovative financial product or service;
The potential risk to consumers, and the methods that will be used to protect consumers and resolve
complaints during the sandbox period;
The business plan proposed by the applicant, including company information, market analysis, and
financial projections or pro forma financial statements, and evidence of the financial viability of the
applicant;
Whether the applicant has the necessary personnel, adequate financial and technical expertise, and a
sufficient plan to test, monitor, and assess the innovative financial product or service;
If any control person has pled no contest to, has been convicted or found guilty of, or is currently under
investigation for, fraud, a state or federal securities violation, any property based offense, or any crime
involving moral turpitude or dishonest dealing. A plea of no contest, a conviction, or a finding of guilt must
be reported regardless of adjudication;
A copy of the disclosures that will be provided to consumers;
The financial responsibility of any control person; and
Any other factor that OFR determines to be relevant.
Disciplinary actions for Money Services Businesses:
OFR regulates money services businesses under ch. 560, F.S. A “money service business” is defined as any person
located in or doing business in this state, from this state, or into this state from locations outside this state or
country who acts as a payment instrument seller, foreign currency exchanger, check casher, or money
transmitter.28
OFR has authority to discipline money services business for specified actions, such as failing to comply with the
provisions of ch. 560, F.S., certain fraud or misrepresentation conduct, and refusing to allow the examination or
inspection of books or files.29 Section 560.114, F.S., provides for the following disciplinary actions: 30
Issuing a cease and desist order;
Issuing a removal order; or
Denying, suspending, or revoking a license.31
24 S. 559.952, F.S.
25 S. 559.952(5)(b), F.S.
26 Id.
27 S. 559.952(5), F.S.
28 S. 560.103(23), F.S.
29 S. 560.114, F.S.
30 S. 120.60(6), F.S.
31 Id.
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HB 381
Under current law, OFR must issue emergency suspension orders in compliance with Florida’s Administrative
Procedure Act, which requires: 32
The agency to find an immediate serious danger to the public health, safety, or welfare that requires
emergency suspension, restriction, or limitation of a license;
The procedure to provide at least the same procedural protection as is given by other statutes, the State
Constitution, or the United States Constitution;
The agency to only take action that is necessary to protect the public interest under the emergency
procedure;
The agency to state in writing at the time of, or prior to, its action the specific facts and reasons for finding
an immediate danger to the public health, safety, or welfare and its reasons for concluding that the
procedure used is fair under the circumstances. (The agency’s findings of immediate danger, necessity, and
procedural fairness are judicially reviewable); and
An agency to promptly institute and act upon an administrative action if a summary suspension, restriction,
or limitation is ordered.
The federal Bank Secrecy Act33 establishes reporting, recordkeeping, and related requirements
for federal and state-chartered financial institutions to help detect and prevent money laundering.34
Specifically, the Bank Secrecy Act and other anti-money laundering regulations (BSA/AML) require financial
institutions to, among other things, keep records of cash purchases of negotiable instruments and file reports of
cash transactions exceeding $10,000 (daily aggregate amount).35
The Financial Crimes Enforcement Network (“FinCEN”), a bureau of the United States Department of Treasury is
responsible for safeguarding the financial system from illegal use, combatting money laundering and related
crimes, and promoting national security.36 Unless an exception applies, a money services business must register
with FinCEN.37
Notice requirements for financial institutions:
Financial institutions that are subject to the Federal Trade Commission’s (FTC) jurisdiction are regulated under the
Federal Standards for Safeguarding Customer Information (Safeguard Rules).38 A financial institution must notify
the FTC of a notification event that involves information of 5,000 or more consumers.39
Section 501.171, F.S., provides covered entities, governmental entities, and third-party agents are required to take
reasonable measures to protect and secure electronic data containing personal information.40 When the security of
a data system is breached, a covered entity must provide notice to the Department of Legal Affairs, affected
individuals, and credit reporting agencies in certain circumstances.41
Under current law, financial institutions are not required to notify OFR of a security breach.
32 S. 120.60, F.S.
33 31 U.S.C. 5311 et seq.
34 U.S. Treasury Financial Crimes Enforcement Network, FinCEN’s Legal Authorities,
https://www.fincen.gov/resources/fincens-legal-authorities (last visited Jan. 16, 2026).
35 Id.
36 31 U.S.C. §. 310.
37 31 C.F.R. §. 1022.380(a).
38 16 C.F.R. 314.1(b).
39 16 C.F.R. 314.4(j)(1).
40 S. 501.171(2), F.S.
41 S. 501.171(3), F.S., S. 501.171(4), F.S.,
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Examination fee deadlines for financial institutions and family trusts:
Under current law, OFR examines financial institutions at least every 18-months but is permitted to investigate
them more frequently based on risk factors.42
The institutions are required to pay a fee for the costs of OFR’s examination, including the salary and travel
expenses of staff attributable to the examination.43 Any costs a financial institution pays by mail must be
postmarked within 30 days after the date of receipt of the notice stating that such costs are due.44
Under current law, OFR is permitted to conduct an examination of a licensed family trust company at any time it
deems necessary.45 The family trust companies are required to pay a fee for the costs of OFR’s examination,
including the salary and travel expenses of staff attributable to the examination.46 Any costs mailed by a trust
company must be postmarked within 30 days after the receipt of a notice stating that the costs are due.47
A family trust company is a corporation or limited liability company that is exclusively owned by family members,
acts as a fiduciary to serve family members, and generally may not serve as a fiduciary for a person that is not a
family.48
Credit union requirements:
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).49 The Florida Financial Institutions
Codes apply to all state-chartered credit unions.50
Florida law provides that any person may be admitted to a credit union upon payment of any required fee,
payment of shares, and compliance with the credit union bylaws.51 State-chartered credit unions operate as
financial institutions except for exercising certain incidental powers authorized by law.52 An application must be
filed with OFR to organize a credit union.53
Any five or more residents of Florida who represent a limited field of membership may apply for permission to
organize a credit union.54 All members must be Florida residents. Members are required to notice and hold the
annual meeting and any special meetings of the members at the time, place, and in the manner provided in the
bylaws.55
42 S. 655.045, F.S.
43 Id.
44 Id.
45 S. 662.141, F.S.
46 Id.
47 Id.
48 S. 662.111(12), F.S.
49 The NCUA, Overview of the Charter Application Process, April 14, 2022, available at https://ncua.gov/regulation-
supervision/manuals-guides/federal-credit-union-charter-application-guide/overview-charter-application-process (last
visited Jan. 6, 2026).
50 S. 655.005(1)(k), F.S.
51 S. 657.023(1), F.S.
52 S. 657.031(3), F.S.
53 S. 657.005(1), F.S.
54 S. 657.005(2), F.S.
55 S. 657.024(1), F.S.
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Florida law regulates how credit unions may invest funds. There are no limits with respect to investing in some
assets, for instance United States Treasury bonds. However, Florida does have investment limits on other asset
classes including:56
Up to 5% of capital in fixed-assets such as real estate, improvements, furniture, fixtures, and equipment
used for business. Credit unions may exceed the 5% limit with OFR approval, if:
o The investment is necessary and appropriate for the credit union’s size and needs;
o The investment benefits members; and
o A plan exists to reduce the investment to statutory limits over time.
In 2015, the NCUA removed the federal regulation that restricted federal credit unions from investing more than
five percent aggregate in fixed-asset investments.57
Experience requirements for directors and officers of banks and trust companies:
A financial institution must have a federal or state charter to accept deposits. Banks are chartered and regulated as
national banks by the Office of the Comptroller of the Currency (OCC) within the U.S. Department of the Treasury
or as state banks by a state regulator.58 The Florida Financial Institutions Codes apply to all state-authorized or
state-chartered financial banks, trust companies, and related entities.59
OFR is required to make certain findings before approving an application to organize a bank or trust company.60
One such finding is that the proposed directors and officers must have sufficient financial institution experience,
ability, standing, and reputation to indicate a reasonable promise of successful operation.61
BILL HISTORY
STAFF
DIRECTOR/ ANALYSIS
COMMITTEE REFERENCE ACTION DATE POLICY CHIEF PREPARED BY
Insurance & Banking Brackett Highsmith
Subcommittee
Information Technology Budget &
Policy Subcommittee
Commerce Committee
56 S. 657.042, F.S.
57 The NCUA, Fixed-Asset Rule Provides Relief to More than 3,800 Federal Credit Unions, July 2015, available at
https://ncua.gov/newsroom/news/2015/fixed-asset-rule-provides-relief-more-3800-federal-credit-unions (last visited Jan.
13, 2026).
58 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 Jan. 6, 2026).
59 S. 655.005(1)(k), F.S.
60 S. 658.21, F.S.
61 S. 658.21(4)(a), F.S.
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1 A bill to be entitled
2 An act relating to the Office of Financial Regulation;
3 creating s. 494.00123, F.S.; providing definitions;
4 requiring loan originators, mortgage brokers, and
5 mortgage lenders to develop, implement, and maintain
6 comprehensive written information security programs
7 for the protection of information systems and
8 nonpublic personal information; providing requirements
9 for such programs; requiring loan originators,
10 mortgage brokers, and mortgage lenders to establish
11 written incident response plans for specified
12 purposes; providing requirements for such plans;
13 providing applicability; providing compliance
14 requirements under specified circumstances; requiring
15 loan originators, mortgage brokers, and mortgage
16 lenders to maintain copies of information security
17 programs for a specified timeframe and to make them
18 available to the Office of Financial Regulation under
19 certain circumstances; requiring loan originators,
20 mortgage brokers, and mortgage lenders and certain
21 entities to conduct investigations of cybersecurity
22 events under certain circumstances; providing
23 requirements for such investigations; providing
24 requirements for records and documentation
25 maintenance; providing requirements for notices of
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26 security breaches; providing construction; providing
27 rulemaking authority; amending s. 494.00255, F.S.;
28 providing additional acts that constitute a ground for
29 specified disciplinary actions against loan
30 originators and mortgage brokers; amending s. 517.021,
31 F.S.; revising the definition of the term "investment
32 adviser" and defining the term "place of business";
33 amending s. 559.952, F.S.; revising definitions;
34 removing the definition of the term "innovative";
35 revising the list of general law provisions that are
36 waived upon approval of a Financial Technology Sandbox
37 application; revising conditions under which a waiver
38 of a requirement may be granted; providing that
39 provisions applicable to the Financial Technology
40 Sandbox innovative financial products and services
41 apply to Financial Technology Sandbox financial
42 products and services; revising the criteria for the
43 office to consider when deciding whether to approve or
44 deny an application for licensure; authorizing, rather
45 than requiring, the office to specify the maximum
46 number of consumers authorized to receive financial
47 products and services from a Financial Technology
48 Sandbox applicant; removing provisions that limit the
49 number of such customers; revising construction;
50 amending s. 560.114, F.S.; specifying the entities
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51 that are subject to certain disciplinary actions and
52 penalties; revising the list of actions by money
53 services businesses which constitute grounds for
54 certain disciplinary actions and penalties; requiring,
55 rather than authorizing, the office to suspend
56 licenses of money services businesses under certain
57 circumstances; s. 560.1311, F.S.; providing
58 definitions; requiring money services businesses to
59 develop, implement, and maintain comprehensive written
60 information security programs for the protection of
61 information systems and nonpublic personal
62 information; providing requirements for such programs;
63 requiring money services businesses to establish
64 written incident response plans for specified
65 purposes; providing requirements for such plans;
66 providing applicability; providing compliance
67 requirements under specified circumstances; requiring
68 money services businesses to maintain copies of
69 information security programs for a specified
70 timeframe and to make them available to the office
71 under certain circumstances; requiring money services
72 businesses and certain entities to conduct
73 investigations of cybersecurity events under certain
74 circumstances; providing requirements for such
75 investigations; providing requirements for records and
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76 documentation maintenance; providing requirements for
77 notices of security breaches; providing construction;
78 providing rulemaking authority; creating s. 655.0171,
79 F.S.; providing definitions; requiring financial
80 institutions to take measures to protect and secure
81 certain data that contain personal information;
82 providing requirements for notices of security
83 breaches to the office, the Department of Legal
84 Affairs, certain individuals, and certain credit
85 reporting agencies; amending s. 655.045, F.S.;
86 revising the timeline for the mailing of payment for
87 salary and travel expenses of certain field staff;
88 amending s. 657.005, F.S.; revising requirements for
89 permission to organize credit unions; amending s.
90 657.024, F.S.; authorizing meetings of credit union
91 members to be held virtually and without quorums under
92 certain circumstances; amending s. 657.042, F.S.;
93 removing provisions that impose limitations on
94 investments in real estate and equipment for credit
95 unions; amending s. 658.21, F.S.; revising
96 requirements and factors for approving applications
97 for organizing banks and trust companies; amending s.
98 658.33, F.S.; revising requirements for directors of
99 certain banks and trust companies; amending s.
100 662.141, F.S.; revising the timeline for the mailing
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101 of payment for the salary and travel expenses of
102 certain field staff; amending s. 517.12, F.S.;
103 conforming a cross-reference; providing an effective
104 date.
105
106 Be It Enacted by the Legislature of the State of Florida:
107
108 Section 1. Section 494.00123, Florida Statutes, is created
109 to read:
110 494.00123 Information security programs; cybersecurity
111 event investigations.—
112 (1) DEFINITIONS.—As used in this section, the term:
113 (a) "Customer" means a person who seeks to obtain or who
114 obtains or has obtained a financial product or service from a
115 licensee.
116 (b) "Customer information" means any record containing
117 nonpublic personal information about a customer of a financial
118 transaction, whether on paper, electronic, or in other forms,
119 which is handled or maintained by or on behalf of the licensee
120 or its affiliates.
121 (c) "Cybersecurity event" means an event resulting in
122 unauthorized access to, or disruption or misuse of, an
123 information system, information stored on such information
124 system, or customer information held in physical form.
125 (d) "Financial product or service" means any product or
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126 service offered by a licensee under this chapter.
127 (e) "Information security program" means the
128 administrative, technical, or physical safeguards used to
129 access, collect, distribute, process, protect, store, use,
130 transmit, dispose of, or otherwise handle customer information.
131 (f) "Information system" means a discrete set of
132 electronic information resources organized for the collection,
133 processing, maintenance, use, sharing, dissemination, or
134 disposition of electronic information, as well as any
135 specialized system such as an industrial process control system,
136 telephone switching and private branch exchange system, or
137 environmental control system, which contain customer information
138 or which are connected to a system that contains customer
139 information.
140 (g) "Licensee" means a person licensed under this chapter.
141 (h)1. "Nonpublic personal information" means:
142 a. Personally identifiable financial information; and
143 b. Any list, description, or other grouping of customers
144 that is derived using any personally identifiable financial
145 information that is not publicly available, such as account
146 numbers, including any list of individuals' names and street
147 addresses that is derived, in whole or in part, using personally
148 identifiable financial information that is not publicly
149 available.
150 2. The term does not include:
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151 a. Publicly available information, except as included on a
152 list, description, or other grouping of customers described in
153 sub-subparagraph 1.b.;
154 b. Any list, description, or other grouping of consumers,
155 or any publicly available information pertaining to such list,
156 description, or other grouping of consumers, which is derived
157 without using any personally identifiable financial information
158 that is not publicly available; or
159 c. Any list of individuals' names and addresses that
160 contains only publicly available information, is not derived, in
161 whole or in part, using personally identifiable financial
162 information that is not publicly available, and is not disclosed
163 in a manner that indicates that any of the individuals on the
164 list is a customer of a licensee.
165 3. As used in this paragraph, the term:
166 a.(I) "Personally identifiable financial information"
167 means any information that:
168 (A) A customer provides to a licensee to obtain a
169 financial product or service, such as information that a
170 customer provides to a licensee on an application to obtain a
171 loan or other financial product or service;
172 (B) A licensee receives about a consumer that is obtained
173 during or as a result of any transaction involving a financial
174 product or service between the licensee and the customer, such
175 as information collected through an information-collecting
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176 device from a web server; or
177 (C) A licensee otherwise obtains about a customer in
178 connection with providing a financial product or service to the
179 customer, such as the fact that an individual is or has been one
180 of the licensee's customers or has obtained a financial product
181 or service from the licensee.
182 (II) The term "personally identifiable financial
183 information" does not include:
184 (A) A list of names and addresses of customers of an
185 entity that is not a financial institution; or
186 (B) Information that does not identify a customer, such as
187 blind data or aggregate information that does not contain
188 personal identifiers such as account numbers, names, or
189 addresses.
190 b.(I) "Publicly available information" means any
191 information that a licensee has a reasonable basis to believe is
192 lawfully made available to the general public from:
193 (A) Federal, state, or local government records, such as
194 government real estate records or security interest filings;
195 (B) Widely distributed media, such as information from a
196 telephone records repository or directory, a television or radio
197 program, a newspaper, a social media platform, or a website that
198 is available to the general public on an unrestricted basis. A
199 website is not restricted merely because an Internet service
200 provider or a site operator requires a fee or a password, so
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201 long as access is available to the general public; or
202 (C) Disclosures to the general public which are required
203 to be made by federal, state, or local law.
204 (II) As used in this sub-subparagraph, the term
205 "reasonable basis to believe is lawfully made available to the
206 general public" relating to any information means that the
207 person has taken steps to determine:
208 (A) That the information is of the type that is available
209 to the general public, such as information included on the
210 public record in the jurisdiction where the mortgage would be
211 recorded; and
212 (B) Whether an individual can direct that the information
213 not be made available to the general public and, if so, the
214 customer to whom the information relates has not done so, such
215 as when a telephone number is listed in a telephone directory
216 and the customer has informed the licensee that the telephone
217 number is not unlisted.
218 (i) "Third-party service provider" means a person, other
219 than a licensee, which contracts with a licensee to maintain,
220 process, or store nonpublic personal information, or is
221 otherwise permitted access to nonpublic personal information
222 through its provision of services to a licensee.
223 (2) INFORMATION SECURITY PROGRAM.—
224 (a) Each licensee shall develop, implement, and maintain a
225 comprehensive written information security program that contains
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226 administrative, technical, and physical safeguards for the
227 protection of the licensee's information system and nonpublic
228 personal information.
229 (b) Each licensee shall ensure that the information
230 security program meets all of the following criteria:
231 1. Be commensurate with the following measures:
232 a. Size and complexity of the licensee.
233 b. Nature and scope of the licensee's activities,
234 including the licensee's use of third-party service providers.
235 c. Sensitivity of nonpublic personal information that is
236 used by the licensee or that is in the licensee's possession,
237 custody, or control.
238 2. Be designed to do all of the following:
239 a. Protect the security and confidentiality of nonpublic
240 personal information and the security of the licensee's
241 information system.
242 b. Protect against threats or hazards to the security or
243 integrity of nonpublic personal information and the licensee's
244 information system.
245 c. Protect against unauthorized access to or the use of
246 nonpublic personal information and minimize the likelihood of
247 harm to any customer.
248 3. Define and periodically reevaluate the retention
249 schedule and the mechanism for the destruction of nonpublic
250 personal information if retention is no longer necessary for the
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251 licensee's business operations or is no longer required by
252 applicable law.
253 4. Regularly test and monitor systems and procedures for
254 the detection of actual and attempted attacks on, or intrusions
255 into, the licensee's information system.
256 5. Be monitored, evaluated, and adjusted, as necessary, to
257 meet all of the following requirements:
258 a. Determine whether the licensee's information security
259 program is consistent with relevant changes in technology.
260 b. Confirm the licensee's information security program
261 accounts for the sensitivity of nonpublic personal information.
262 c. Identify changes that may be necessary to the
263 licensee's information system.
264 d. Eliminate any internal or external threats to nonpublic
265 personal information.
266 e. Amend the licensee's information security program for
267 any of the licensee's changing business arrangements, including,
268 but not limited to, mergers and acquisitions, alliances and
269 joint ventures, and outsourcing arrangements.
270 (c)1. As part of a licensee's information security
271 program, the licensee shall establish a written incident
272 response plan designed to promptly respond to, and recover from,
273 a cybersecurity event that compromises:
274 a. The confidentiality, integrity, or availability of
275 nonpublic personal information in the licensee's possession;
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276 b. The licensee's information system; or
277 c. The continuing functionality of any aspect of the
278 licensee's operations.
279 2. The written incident response plan must address all of
280 the following:
281 a. The licensee's internal process for responding to a
282 cybersecurity event.
283 b. The goals of the licensee's incident response plan.
284 c. The assignment of clear roles, responsibilities, and
285 levels of decisionmaking authority for the licensee's personnel
286 that participate in the incident response plan.
287 d. External communications, internal communications, and
288 information sharing related to a cybersecurity event.
289 e. The identification of remediation requirements for
290 weaknesses identified in information systems and associated
291 controls.
292 f. The documentation and reporting regarding cybersecurity
293 events and related incident response activities.
294 g. The evaluation and revision of the incident response
295 plan, as appropriate, following a cybersecurity event.
296 h. The process by which notice must be given as required
297 under subsection (4) and s. 501.171(3) and (4).
298 (d)1. This section does not apply to a licensee that has
299 fewer than:
300 a. Twenty individuals on its workforce, including
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301 employees and independent contractors; or
302 b. Five hundred customers during a calendar year.
303 2. A licensee that no longer qualifies for exemption under
304 subparagraph 1. has 180 calendar days to comply with this
305 section after the date of the disqualification.
306 (e) Each licensee shall maintain a copy of the information
307 security program for a minimum of 5 years and shall make it
308 available to the office upon request or as part of an
309 examination.
310 (3) CYBERSECURITY EVENT INVESTIGATION.—
311 (a) If a licensee discovers that a cybersecurity event has
312 occurred or that a cybersecurity event may have occurred, the
313 licensee, or an outside vendor or third-party service provider
314 that the licensee has designated to act on its behalf, shall
315 conduct a prompt investigation of the cybersecurity event.
316 (b) During the investigation, the licensee, or the outside
317 vendor or third-party service provider that the licensee has
318 designated to act on its behalf, shall, at a minimum, determine
319 as much of the following as possible:
320 1. Confirm that a cybersecurity event has occurred.
321 2. Identify the date that the cybersecurity event first
322 occurred.
323 3. Assess the nature and scope of the cybersecurity event.
324 4. Identify all nonpublic personal information that may
325 have been compromised by the cybersecurity event.
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326 5. Perform or oversee reasonable measures to restore the
327 security of any compromised information system in order to
328 prevent further unauthorized acquisition, release, or use of
329 nonpublic personal information that is in the licensee's,
330 outside vendor's, or third-party service provider's possession,
331 custody, or control.
332 (c) If a licensee learns that a cybersecurity event has
333 occurred, or may have occurred, in an information system
334 maintained by a third-party service provider of the licensee,
335 the licensee shall complete an investigation in compliance with
336 this section or confirm and document that the third-party
337 service provider has completed an investigation in compliance
338 with this section.
339 (d) A licensee shall maintain all records and
340 documentation related to the licensee's investigation of a
341 cybersecurity event for a minimum of 5 years after the date of
342 the cybersecurity event and shall produce the records and
343 documentation to the office upon request.
344 (4) NOTICE TO OFFICE OF SECURITY BREACH.—
345 (a) Each licensee shall provide notice to the office of
346 any breach of security affecting 500 or more individuals in this
347 state at a time and in the manner prescribed by commission rule.
348 (b) Each licensee shall, upon the office's request,
349 provide a quarterly update of a cybersecurity event
350 investigation under subsection (3) until conclusion of the
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351 investigation.
352 (5) CONSTRUCTION.—This section may not be construed to
353 relieve a covered entity from complying with s. 501.171. To the
354 extent a licensee is a covered entity, as defined in s.
355 501.171(1), the licensee remains subject to s. 501.171.
356 (6) RULES.—The commission may adopt rules to administer
357 this section, including rules that allow a licensee that is in
358 full compliance with the Federal Trade Commission's Standards
359 for Safeguarding Customer Information, 16 C.F.R. part 314, to be
360 deemed in compliance with subsection (2).
361 Section 2. Paragraph (z) is added to subsection (1) of
362 section 494.00255, Florida Statutes, to read:
363 494.00255 Administrative penalties and fines; license
364 violations.—
365 (1) Each of the following acts constitutes a ground for
366 which the disciplinary actions specified in subsection (2) may
367 be taken against a person licensed or required to be licensed
368 under part II or part III of this chapter:
369 (z) Failure to comply with the notification requirements
370 in s. 501.171(3) and (4).
371 Section 3. Subsections (28) through (36) of section
372 517.021, Florida Statutes, are renumbered as subsections (29)
373 through (37), respectively, subsection (20) is amended, and a
374 new subsection (28) is added to that section, to read:
375 517.021 Definitions.—When used in this chapter, unless the
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376 context otherwise indicates, the following terms have the
377 following respective meanings:
378 (20)(a) "Investment adviser" means a person, other than an
379 associated person of an investment adviser or a federal covered
380 adviser, that receives compensation, directly or indirectly, and
381 engages for all or part of the person's time, directly or
382 indirectly, or through publications or writings, in the business
383 of advising others as to the value of securities or as to the
384 advisability of investments in, purchasing of, or selling of
385 securities.
386 (b) The term does not include any of the following:
387 1. A dealer or an associated person of a dealer whose
388 performance of services in paragraph (a) is solely incidental to
389 the conduct of the dealer's or associated person's business as a
390 dealer and who does not receive special compensation for those
391 services.
392 2. A licensed practicing attorney or certified public
393 accountant whose performance of such services is solely
394 incidental to the practice of the attorney's or accountant's
395 profession.
396 3. A bank authorized to do business in this state.
397 4. A bank holding company as defined in the Bank Holding
398 Company Act of 1956, as amended, authorized to do business in
399 this state.
400 5. A trust company having trust powers, as defined in s.
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401 658.12, which it is authorized to exercise in this state, which
402 trust company renders or performs investment advisory services
403 in a fiduciary capacity incidental to the exercise of its trust
404 powers.
405 6. A person that renders investment advice exclusively to
406 insurance or investment companies.
407 7. A person:
408 a. Without a place of business in this state if the person
409 has had that, during the preceding 12 months, has fewer than six
410 clients who are residents of this state.
411 b. With a place of business in this state if the person
412 has had, during the preceding 12 months, fewer than six clients
413 who are residents of this state and no clients who are not
414 residents of this state.
415
416 As used in this subparagraph, the term "client" has the same
417 meaning as provided in Securities and Exchange Commission Rule
418 222-2 275.222-2, 17 C.F.R. s. 275.222-2, as amended.
419 8. A federal covered adviser.
420 9. The United States, a state, or any political
421 subdivision of a state, or any agency, authority, or
422 instrumentality of any such entity; a business entity that is
423 wholly owned directly or indirectly by such a governmental
424 entity; or any officer, agent, or employee of any such
425 governmental or business entity who is acting within the scope
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426 of his or her official duties.
427 10. A family office as defined in Securities and Exchange
428 Commission Rule 202(a)(11)(G)-1(b) and (d) under the Investment
429 Advisers Act of 1940, 17 C.F.R. s. 275. 202(a)(11)(G)-1(b) and
430 (d), as amended, without giving regard to paragraph 1(a) or
431 paragraph 1(c) of that rule.
432 (28) "Place of business" of an investment adviser means an
433 office at which the investment adviser regularly provides
434 investment advisory services, solicits, meets with, or otherwise
435 communicates with clients; and any other location that is held
436 out to the general public as a location at which the investment
437 adviser provides investment advisory services, solicits, meets
438 with, or otherwise communicates with clients.
439 Section 4. Section 559.952, Florida Statutes, is amended
440 to read:
441 559.952 Financial Technology Sandbox.—
442 (1) SHORT TITLE.—This section may be cited as the
443 "Financial Technology Sandbox."
444 (2) CREATION OF THE FINANCIAL TECHNOLOGY SANDBOX.—There is
445 created the Financial Technology Sandbox within the Office of
446 Financial Regulation to allow financial technology innovators to
447 test new products and services in a supervised, flexible
448 regulatory sandbox using exceptions to specified general law and
449 waivers of specified provisions of general law and the
450 corresponding rule requirements under defined conditions. The
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451 creation of a supervised, flexible regulatory sandbox provides a
452 welcoming business environment for technology innovators and may
453 lead to significant business growth.
454 (3) DEFINITIONS.—As used in this section, the term:
455 (a) "Business entity" means any corporation, limited
456 liability company, or trust that may or may not be fictitiously
457 named and that does business in this state a domestic
458 corporation or other organized domestic entity with a physical
459 presence, other than that of a registered office or agent or
460 virtual mailbox, in this state.
461 (b) "Commission" means the Financial Services Commission.
462 (c) "Consumer" means a person in this state, whether a
463 natural person or a business organization, who purchases, uses,
464 receives, or enters into an agreement to purchase, use, or
465 receive a an innovative financial product or service made
466 available through the Financial Technology Sandbox.
467 (d) "Control person" means an individual, a partnership, a
468 corporation, a trust, or other organization that possesses the
469 power, directly or indirectly, to direct the management or
470 policies of a company, whether through ownership of securities,
471 by contract, or through other means. A person is presumed to
472 control a company if, with respect to a particular company, that
473 person:
474 1. Is a director, a general partner, or an officer
475 exercising executive responsibility or having similar status or
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476 functions;
477 2. Directly or indirectly may vote 10 percent or more of a
478 class of a voting security or sell or direct the sale of 10
479 percent or more of a class of voting securities; or
480 3. In the case of a partnership, may receive upon
481 dissolution or has contributed 10 percent or more of the
482 capital.
483 (e) "Corresponding rule requirements" means the commission
484 rules, or portions thereof, which implement the general laws
485 enumerated in paragraph (4)(a).
486 (f) "Financial product or service" means a product or
487 service related to a consumer finance loan, as defined in s.
488 516.01, or credit, banking services, money transmission, or
489 securities transactions a money transmitter or payment
490 instrument seller, as those terms are defined in s. 560.103,
491 including mediums of exchange that are in electronic or digital
492 form, which is subject to the general laws enumerated in
493 paragraph (4)(a) and corresponding rule requirements and which
494 is under the jurisdiction of the office.
495 (g) "Financial Technology Sandbox" means the program
496 created by this section which allows a licensee to make a an
497 innovative financial product or service available to consumers
498 during a sandbox period through waivers of exceptions to general
499 laws and waivers of corresponding rule requirements.
500 (h) "Innovative" means new or emerging technology, or new
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501 uses of existing technology, which provide a product, service,
502 business model, or delivery mechanism to the public and which
503 are not known to have a comparable offering in this state
504 outside the Financial Technology Sandbox.
505 (h)(i) "Licensee" means a business entity that has been
506 approved by the office to participate in the Financial
507 Technology Sandbox.
508 (i)(j) "Office" means, unless the context clearly
509 indicates otherwise, the Office of Financial Regulation.
510 (j)(k) "Sandbox period" means the initial 24-month period
511 in which the office has authorized a licensee to make a an
512 innovative financial product or service available to consumers,
513 and any extension granted pursuant to subsection (7).
514 (4) WAIVERS OF EXCEPTIONS TO GENERAL LAW AND CORRESPONDING
515 WAIVERS OF RULE REQUIREMENTS.—
516 (a) Notwithstanding any other law, upon approval of a
517 Financial Technology Sandbox application, the office may grant
518 an applicant during a sandbox period a waiver of a requirement,
519 or a portion thereof, imposed by a general law or rule in any
520 following chapter, or part thereof, if all of the conditions in
521 paragraph (b) are met following provisions and corresponding
522 rule requirements are not applicable to the licensee during the
523 sandbox period:
524 1. Chapter 516, Consumer Finance.
525 2. Chapter 517, Securities Transactions.
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526 3. Chapter 520, Retail Installment Sales.
527 4. Chapter 537, Title Loans.
528 5. Part I or part II of chapter 560, General Provisions of
529 Money Services Businesses or Payment Instruments and Funds
530 Transmission.
531 6. Chapter 655, Financial Institutions Generally.
532 7. Chapter 657, Credit Unions.
533 8. Chapter 658, Banks and Trust Companies.
534 9. Chapter 660, Trust Business.
535 10. Chapter 662, Family Trust Companies.
536 11. Chapter 663, International Banking.
537 1. Section 516.03(1), except for the application fee, the
538 investigation fee, the requirement to provide the social
539 security numbers of control persons, evidence of liquid assets
540 of at least $25,000 or documents satisfying the requirements of
541 s. 516.05(10), and the office's authority to investigate the
542 applicant's background. The office may prorate the license
543 renewal fee for an extension granted under subsection (7).
544 2. Section 516.05(1) and (2), except that the office shall
545 investigate the applicant's background.
546 3. Section 560.109, only to the extent that the section
547 requires the office to examine a licensee at least once every 5
548 years.
549 4. Section 560.118(2).
550 5. Section 560.125(1), only to the extent that the
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551 subsection would prohibit a licensee from engaging in the
552 business of a money transmitter or payment instrument seller
553 during the sandbox period.
554 6. Section 560.125(2), only to the extent that the
555 subsection would prohibit a licensee from appointing an
556 authorized vendor during the sandbox period. Any authorized
557 vendor of such a licensee during the sandbox period remains
558 liable to the holder or remitter.
559 7. Section 560.128.
560 8. Section 560.141, except for s. 560.141(1)(a)1., 3., 7.-
561 10. and (b), (c), and (d).
562 9. Section 560.142(1) and (2), except that the office may
563 prorate, but may not entirely eliminate, the license renewal
564 fees in s. 560.143 for an extension granted under subsection
565 (7).
566 10. Section 560.143(2), only to the extent necessary for
567 proration of the renewal fee under subparagraph 9.
568 11. Section 560.204(1), only to the extent that the
569 subsection would prohibit a licensee from engaging in, or
570 advertising that it engages in, the activity of a payment
571 instrument seller or money transmitter during the sandbox
572 period.
573 12. Section 560.205(2).
574 13. Section 560.208(2).
575 14. Section 560.209, only to the extent that the office
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576 may modify, but may not entirely eliminate, the net worth,
577 corporate surety bond, and collateral deposit amounts required
578 under that section. The modified amounts must be in such lower
579 amounts that the office determines to be commensurate with the
580 factors under paragraph (5)(c) and the maximum number of
581 consumers authorized to receive the financial product or service
582 under this section.
583 (b) The office may grant an applicant during a sandbox
584 period a waiver of a requirement, or a portion thereof, imposed
585 by a general law or rule in any chapter enumerated in paragraph
586 (a) if all of the following conditions are met: approve a
587 Financial Technology Sandbox application if one or more of the
588 general laws enumerated in paragraph (a) currently prevent the
589 innovative financial product or service from being made
590 available to consumers and if all other requirements of this
591 section are met.
592 1. The general law or rule does not currently authorize
593 the financial product or service to be made available to
594 consumers.
595 2. The waiver is not broader than necessary to accomplish
596 the purposes and standards specified in this section, as
597 determined by the office.
598 3. Any provision relating to the liability of an
599 incorporator, director, or officer of the applicant is not
600 eligible for a waiver.
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601 (c) A licensee may conduct business through electronic
602 means, including through the Internet or a software application.
603 (5) FINANCIAL TECHNOLOGY SANDBOX APPLICATION; STANDARDS
604 FOR APPROVAL.—
605 (a) Before filing an application for licensure under this
606 section, a substantially affected person may seek a declaratory
607 statement pursuant to s. 120.565 regarding the applicability of
608 a statute, a rule, or an agency order to the petitioner's
609 particular set of circumstances or a variance or waiver of a
610 rule pursuant to s. 120.542.
611 (b) Before making a an innovative financial product or
612 service available to consumers in the Financial Technology
613 Sandbox, a business entity must file with the office an
614 application for licensure under the Financial Technology
615 Sandbox. The commission shall, by rule, prescribe the form and
616 manner of the application and how the office will evaluate and
617 apply each of the factors specified in paragraph (c).
618 1. The application must specify each general law
619 enumerated in paragraph (4)(a) which currently prevents the
620 innovative financial product or service from being made
621 available to consumers and the reasons why those provisions of
622 general law prevent the innovative financial product or service
623 from being made available to consumers.
624 2. The application must contain sufficient information for
625 the office to evaluate the factors specified in paragraph (c).
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626 3. An application submitted on behalf of a business entity
627 must include evidence that the business entity has authorized
628 the person to submit the application on behalf of the business
629 entity intending to make a an innovative financial product or
630 service available to consumers.
631 4. The application must specify the maximum number of
632 consumers, which may not exceed the number of consumers
633 specified in paragraph (f), to whom the applicant proposes to
634 provide the innovative financial product or service.
635 5. The application must include a proposed draft of the
636 statement or statements meeting the requirements of paragraph
637 (6)(b) which the applicant proposes to provide to consumers.
638 (c) The office shall approve or deny in writing a
639 Financial Technology Sandbox application within 60 days after
640 receiving the completed application. The office and the
641 applicant may jointly agree to extend the time beyond 60 days.
642 Consistent with this section, the office may impose conditions
643 on any approval. In deciding whether to approve or deny an
644 application for licensure, the office must consider each of the
645 following:
646 1. The nature of the innovative financial product or
647 service proposed to be made available to consumers in the
648 Financial Technology Sandbox, including all relevant technical
649 details.
650 2. The potential risk to consumers and the methods that
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651 will be used to protect consumers and resolve complaints during
652 the sandbox period.
653 2.3. The business plan proposed by the applicant,
654 including company information, market analysis, and financial
655 projections or pro forma financial statements, and evidence of
656 the financial viability of the applicant.
657 4. Whether the applicant has the necessary personnel,
658 adequate financial and technical expertise, and a sufficient
659 plan to test, monitor, and assess the innovative financial
660 product or service.
661 3.5. Whether any control person of the applicant,
662 regardless of adjudication, has pled no contest to, has been
663 convicted or found guilty of, or is currently under
664 investigation for fraud, a state or federal securities
665 violation, a property-based offense, or a crime involving moral
666 turpitude or dishonest dealing, in which case the application to
667 the Financial Technology Sandbox must be denied.
668 4.6. A copy of the disclosures that will be provided to
669 consumers under paragraph (6)(b).
670 5.7. The financial responsibility of the applicant and any
671 control person, including whether the applicant or any control
672 person has a history of unpaid liens, unpaid judgments, or other
673 general history of nonpayment of legal debts, including, but not
674 limited to, having been the subject of a petition for bankruptcy
675 under the United States Bankruptcy Code within the past 7
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676 calendar years.
677 6.8. Any other factor that the office determines to be
678 relevant.
679 (d) The office may not approve an application if:
680 1. The applicant had a prior Financial Technology Sandbox
681 application that was approved and that related to a
682 substantially similar financial product or service;
683 2. Any control person of the applicant was substantially
684 involved in the development, operation, or management with
685 another Financial Technology Sandbox applicant whose application
686 was approved and whose application related to a substantially
687 similar financial product or service; or
688 3. The applicant or any control person has failed to
689 affirmatively demonstrate financial responsibility.
690 (e) Upon approval of an application, the office shall
691 notify the licensee of the specific that the licensee is exempt
692 from the provisions of general law enumerated in paragraph
693 (4)(a) and the corresponding rule requirements that are waived
694 during the sandbox period. The office shall post on its website
695 notice of the approval of the application, a summary of the
696 innovative financial product or service, and the contact
697 information of the licensee.
698 (f) The office, on a case-by-case basis, may shall specify
699 the maximum number of consumers authorized to receive a an
700 innovative financial product or service, after consultation with
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701 the Financial Technology Sandbox applicant. The office may not
702 authorize more than 15,000 consumers to receive the financial
703 product or service until the licensee has filed the first report
704 required under subsection (8). After the filing of that report,
705 if the licensee demonstrates adequate financial capitalization,
706 risk management processes, and management oversight, the office
707 may authorize up to 25,000 consumers to receive the financial
708 product or service.
709 (g) A licensee has a continuing obligation to promptly
710 inform the office of any material change to the information
711 provided under paragraph (b).
712 (h) The following information provided to and held by the
713 office in a Financial Technology Sandbox application under this
714 subsection is confidential and exempt from s. 119.07(1) and s.
715 24(a), Art. I of the State Constitution:
716 1. The reasons why a general law enumerated in paragraph
717 (4)(a) prevents the innovative financial product or service from
718 being made available to consumers.
719 2. The information provided for evaluation of the factors
720 specified in subparagraphs (c)1. and 2. 3.
721 3. The information provided for evaluation of whether the
722 applicant has a sufficient plan to test, monitor, and assess the
723 innovative financial product or service, under subparagraph
724 (c)4.
725
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726 However, the confidential and exempt information may be released
727 to appropriate state and federal agencies for the purposes of
728 investigation. Nothing in this paragraph shall be construed to
729 prevent the office from disclosing a summary of the innovative
730 financial product or service.
731 (6) OPERATION OF THE FINANCIAL TECHNOLOGY SANDBOX.—
732 (a) A licensee may make a an innovative financial product
733 or service available to consumers during the sandbox period.
734 (b)1. Before a consumer purchases, uses, receives, or
735 enters into an agreement to purchase, use, or receive a an
736 innovative financial product or service through the Financial
737 Technology Sandbox, the licensee must provide a written
738 statement of all of the following to the consumer:
739 a. The name and contact information of the licensee.
740 b. That the financial product or service has been
741 authorized to be made available to consumers for a temporary
742 period by the office, under the laws of this state.
743 c. That the state does not endorse the financial product
744 or service.
745 d. That the financial product or service is undergoing
746 testing, may not function as intended, and may entail financial
747 risk.
748 e. That the licensee is not immune from civil liability
749 for any losses or damages caused by the financial product or
750 service.
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751 f. The expected end date of the sandbox period.
752 g. The contact information for the office and notification
753 that suspected legal violations, complaints, or other comments
754 related to the financial product or service may be submitted to
755 the office.
756 h. Any other statements or disclosures required by rule of
757 the commission which are necessary to further the purposes of
758 this section.
759 2. The written statement under subparagraph 1. must
760 contain an acknowledgment from the consumer, which must be
761 retained for the duration of the sandbox period by the licensee.
762 (c) The office may enter into an agreement with a state,
763 federal, or foreign regulatory agency to allow licensees under
764 the Financial Technology Sandbox to make their products or
765 services available in other jurisdictions. The commission shall
766 adopt rules to implement this paragraph.
767 (d) The office may examine the records of a licensee at
768 any time, with or without prior notice.
769 (7) EXTENSION AND CONCLUSION OF SANDBOX PERIOD.—
770 (a) A licensee may apply for one extension of the initial
771 24-month sandbox period for 12 additional months for a purpose
772 specified in subparagraph (b)1. or subparagraph (b)2. A complete
773 application for an extension must be filed with the office at
774 least 90 days before the conclusion of the initial sandbox
775 period. The office shall approve or deny the application for
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776 extension in writing at least 35 days before the conclusion of
777 the initial sandbox period. In determining whether to approve or
778 deny an application for extension of the sandbox period, the
779 office must, at a minimum, consider the current status of the
780 factors previously considered under paragraph (5)(c).
781 (b) An application for an extension under paragraph (a)
782 must cite one of the following reasons as the basis for the
783 application and must provide all relevant supporting
784 information:
785 1. Amendments to general law or rules are necessary to
786 offer the innovative financial product or service in this state
787 permanently.
788 2. An application for a license that is required in order
789 to offer the innovative financial product or service in this
790 state permanently has been filed with the office and approval is
791 pending.
792 (c) At least 30 days before the conclusion of the initial
793 24-month sandbox period or the extension, whichever is later, a
794 licensee shall provide written notification to consumers
795 regarding the conclusion of the initial sandbox period or the
796 extension and may not make the financial product or service
797 available to any new consumers after the conclusion of the
798 initial sandbox period or the extension, whichever is later,
799 until legal authority outside of the Financial Technology
800 Sandbox exists for the licensee to make the financial product or
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801 service available to consumers. After the conclusion of the
802 sandbox period or the extension, whichever is later, the
803 business entity formerly licensed under the Financial Technology
804 Sandbox may:
805 1. Collect and receive money owed to the business entity
806 or pay money owed by the business entity, based on agreements
807 with consumers made before the conclusion of the sandbox period
808 or the extension.
809 2. Take necessary legal action.
810 3. Take other actions authorized by commission rule which
811 are not inconsistent with this section.
812 (8) REPORT.—A licensee shall submit a report to the office
813 twice a year as prescribed by commission rule. The report must,
814 at a minimum, include financial reports and the number of
815 consumers who have received the financial product or service.
816 (9) CONSTRUCTION.—A business entity whose Financial
817 Technology Sandbox application is approved under this section:
818 (a) Shall be deemed to possess an appropriate license
819 under any general law requiring state licensure or
820 authorization.
821 (b) Does not obtain a property right.
822 (c) Is not, nor is its financial product or service,
823 endorsed by this state, nor is this state subject to liability
824 for losses or damages caused by the financial product or
825 service.
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826 (a) Is licensed under chapter 516, chapter 560, or both
827 chapters 516 and 560, as applicable to the business entity's
828 activities.
829 (b) Is subject to any provision of chapter 516 or chapter
830 560 not specifically excepted under paragraph (4)(a), as
831 applicable to the business entity's activities, and must comply
832 with such provisions.
833 (c) May not engage in activities authorized under part III
834 of chapter 560, notwithstanding s. 560.204(2).
835 (10) VIOLATIONS AND PENALTIES.—
836 (a) A licensee who makes a an innovative financial product
837 or service available to consumers in the Financial Technology
838 Sandbox remains subject to:
839 1. Civil damages for acts and omissions arising from or
840 related to any innovative financial product or services provided
841 or made available by the licensee or relating to this section.
842 2. All criminal and consumer protection laws and any other
843 statute not specifically excepted under paragraph (4)(a).
844 (b)1. The office may, by order, revoke or suspend a
845 licensee's approval to participate in the Financial Technology
846 Sandbox if:
847 a. The licensee has violated or refused to comply with
848 this section, any statute not specifically excepted under
849 paragraph (4)(a), a rule of the commission that has not been
850 waived, an order of the office, or a condition placed by the
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851 office on the approval of the licensee's Financial Technology
852 Sandbox application;
853 b. A fact or condition exists that, if it had existed or
854 become known at the time that the Financial Technology Sandbox
855 application was pending, would have warranted denial of the
856 application or the imposition of material conditions;
857 c. A material error, false statement, misrepresentation,
858 or material omission was made in the Financial Technology
859 Sandbox application; or
860 d. After consultation with the licensee, the office
861 determines that continued testing of the innovative financial
862 product or service would:
863 (I) Be likely to harm consumers; or
864 (II) No longer serve the purposes of this section because
865 of the financial or operational failure of the financial product
866 or service.
867 2. Written notice of a revocation or suspension order made
868 under subparagraph 1. must be served using any means authorized
869 by law. If the notice relates to a suspension, the notice must
870 include any condition or remedial action that the licensee must
871 complete before the office lifts the suspension.
872 (c) The office may refer any suspected violation of law to
873 an appropriate state or federal agency for investigation,
874 prosecution, civil penalties, and other appropriate enforcement
875 action.
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876 (d) If service of process on a licensee is not feasible,
877 service on the office is deemed service on the licensee.
878 (11) RULES AND ORDERS.—
879 (a) The commission shall adopt rules to administer this
880 section before approving any application under this section.
881 (b) The office may issue all necessary orders to enforce
882 this section and may enforce these orders in accordance with
883 chapter 120 or in any court of competent jurisdiction. These
884 orders include, but are not limited to, orders for payment of
885 restitution for harm suffered by consumers as a result of a an
886 innovative financial product or service.
887 Section 5. Subsections (1) and (2) of section 560.114,
888 Florida Statutes, are amended to read:
889 560.114 Disciplinary actions; penalties.—
890 (1) The following actions by a money services business, an
891 authorized vendor, or a affiliated party that was affiliated at
892 the time of commission of the actions constitute grounds for the
893 issuance of a cease and desist order; the issuance of a removal
894 order; the denial, suspension, or revocation of a license; or
895 taking any other action within the authority of the office
896 pursuant to this chapter:
897 (a) Failure to comply with any provision of this chapter
898 or related rule or order, or any written agreement entered into
899 with the office.
900 (b) Fraud, misrepresentation, deceit, or gross negligence
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901 in any transaction by a money services business, regardless of
902 reliance thereon by, or damage to, a customer.
903 (c) Fraudulent misrepresentation, circumvention, or
904 concealment of any matter that must be stated or furnished to a
905 customer pursuant to this chapter, regardless of reliance
906 thereon by, or damage to, such customer.
907 (d) False, deceptive, or misleading advertising.
908 (e) Failure to maintain, preserve, keep available for
909 examination, and produce all books, accounts, files, or other
910 documents required by this chapter or related rules or orders,
911 by 31 C.F.R. ss. 1010.306, 1010.311, 1010.312, 1010.340,
912 1010.410, 1010.415, 1022.210, 1022.320, 1022.380, and 1022.410,
913 or by an agreement entered into with the office.
914 (f) Refusing to allow the examination or inspection of
915 books, accounts, files, or other documents by the office
916 pursuant to this chapter, or to comply with a subpoena issued by
917 the office.
918 (g) Failure to pay a judgment recovered in any court by a
919 claimant in an action arising out of a money transmission
920 transaction within 30 days after the judgment becomes final.
921 (h) Engaging in an act prohibited under s. 560.111 or s.
922 560.1115.
923 (i) Insolvency.
924 (j) Failure by a money services business to remove an
925 affiliated party after the office has issued and served upon the
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926 money services business a final order setting forth a finding
927 that the affiliated party has violated a provision of this
928 chapter.
929 (k) Making a material misstatement, misrepresentation, or
930 omission in an application for licensure, any amendment to such
931 application, or application for the appointment of an authorized
932 vendor.
933 (l) Committing any act that results in a license or its
934 equivalent, to practice any profession or occupation being
935 denied, suspended, revoked, or otherwise acted against by a
936 licensing authority in any jurisdiction.
937 (m) Being the subject of final agency action or its
938 equivalent, issued by an appropriate regulator, for engaging in
939 unlicensed activity as a money services business or deferred
940 presentment provider in any jurisdiction.
941 (n) Committing any act resulting in a license or its
942 equivalent to practice any profession or occupation being
943 denied, suspended, revoked, or otherwise acted against by a
944 licensing authority in any jurisdiction for a violation of 18
945 U.S.C. s. 1956, 18 U.S.C. s. 1957, 18 U.S.C. s. 1960, 31 U.S.C.
946 s. 5324, or any other law or rule of another state or of the
947 United States relating to a money services business, deferred
948 presentment provider, or usury that may cause the denial,
949 suspension, or revocation of a money services business or
950 deferred presentment provider license or its equivalent in such
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951 jurisdiction.
952 (o) Having been convicted of, or entered a plea of guilty
953 or nolo contendere to, any felony or crime punishable by
954 imprisonment of 1 year or more under the law of any state or the
955 United States which involves fraud, moral turpitude, or
956 dishonest dealing, regardless of adjudication.
957 (p) Having been convicted of, or entered a plea of guilty
958 or nolo contendere to, a crime under 18 U.S.C. s. 1956 or 31
959 U.S.C. s. 5318, s. 5322, or s. 5324, regardless of adjudication.
960 (q) Having been convicted of, or entered a plea of guilty
961 or nolo contendere to, misappropriation, conversion, or unlawful
962 withholding of moneys belonging to others, regardless of
963 adjudication.
964 (r) Having been convicted of, or entered a plea of guilty
965 or nolo contendere to, a violation of 31 C.F.R. chapter X, part
966 1022, regardless of adjudication.
967 (s)(r) Failure to inform the office in writing within 30
968 days after having pled guilty or nolo contendere to, or being
969 convicted of, any felony or crime punishable by imprisonment of
970 1 year or more under the law of any state or the United States,
971 or any crime involving fraud, moral turpitude, or dishonest
972 dealing.
973 (t)(s) Aiding, assisting, procuring, advising, or abetting
974 any person in violating a provision of this chapter or any order
975 or rule of the office or commission.
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976 (u)(t) Failure to pay any fee, charge, or cost imposed or
977 assessed under this chapter.
978 (v)(u) Failing to pay a fine assessed by the office within
979 30 days after the due date as stated in a final order.
980 (w)(v) Failure to pay any judgment entered by any court
981 within 30 days after the judgment becomes final.
982 (x)(w) Engaging or advertising engagement in the business
983 of a money services business or deferred presentment provider
984 without a license, unless exempted from licensure.
985 (y)(x) Payment to the office for a license or other fee,
986 charge, cost, or fine with a check or electronic transmission of
987 funds that is dishonored by the applicant's or licensee's
988 financial institution.
989 (z)(y) Violations of 31 C.F.R. ss. 1010.306, 1010.311,
990 1010.312, 1010.340, 1010.410, 1010.415, 1022.210, 1022.320,
991 1022.380, and 1022.410, and United States Treasury Interpretive
992 Release 2004-1.
993 (aa)(z) Any practice or conduct that creates the
994 likelihood of a material loss, insolvency, or dissipation of
995 assets of a money services business or otherwise materially
996 prejudices the interests of its customers.
997 (bb)(aa) Failure of a check casher to maintain a federally
998 insured depository account as required by s. 560.309.
999 (cc)(bb) Failure of a check casher to deposit into its own
1000 federally insured depository account any payment instrument
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1001 cashed as required by s. 560.309.
1002 (dd)(cc) Violating any provision of the Military Lending
1003 Act, 10 U.S.C. s. 987, or the regulations adopted under that act
1004 in 32 C.F.R. part 232, in connection with a deferred presentment
1005 transaction conducted under part IV of this chapter.
1006 (ee) Failure to comply with the notification requirements
1007 in s. 501.171(3) and (4).
1008 (2) Pursuant to s. 120.60(6), The office shall issue an
1009 emergency order suspending may summarily suspend the license of
1010 a money services business if the office finds that a licensee
1011 poses an immediate, serious danger to the public health, safety,
1012 and welfare. A proceeding in which the office seeks the issuance
1013 of a final order for the summary suspension of a licensee shall
1014 be conducted by the commissioner of the office, or his or her
1015 designee, who shall issue such order. The following acts are
1016 deemed by the Legislature to constitute an immediate and serious
1017 danger to the public health, safety, and welfare, and the office
1018 shall may immediately suspend the license of a money services
1019 business without making any further findings of immediate
1020 danger, necessity, and procedural fairness if:
1021 (a) The money services business fails to provide to the
1022 office, upon written request, any of the records required by s.
1023 560.123, s. 560.1235, s. 560.211, or s. 560.310 or any rule
1024 adopted under those sections. The suspension may be rescinded if
1025 the licensee submits the requested records to the office.
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1026 (b) The money services business fails to maintain a
1027 federally insured depository account as required by s.
1028 560.208(4) or s. 560.309.
1029 (c) A natural person required to be listed on the license
1030 application for a money services business pursuant to s.
1031 560.141(1)(a)3. is criminally charged with, or arrested for, a
1032 crime described in paragraph (1)(o), paragraph (1)(p), or
1033 paragraph(1)(q).
1034 Section 6. Section 560.1311, Florida Statutes, is created
1035 to read:
1036 560.1311 Information security programs; cybersecurity
1037 event investigations.—
1038 (1) DEFINITIONS.—As used in this section, the term:
1039 (a) "Customer" means a person who seeks to obtain or who
1040 obtains or has obtained a financial product or service from a
1041 licensee.
1042 (b) "Customer information" means any record containing
1043 nonpublic personal information about a customer of a financial
1044 transaction, whether on paper, electronic, or in other forms,
1045 which is handled or maintained by or on behalf of the licensee
1046 or its affiliates.
1047 (c) "Cybersecurity event" means an event resulting in
1048 unauthorized access to, or disruption or misuse of, an
1049 information system, information stored on such information
1050 system, or customer information held in physical form.
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1051 (d) "Financial product or service" means any product or
1052 service offered by a licensee under this chapter.
1053 (e) "Information security program" means the
1054 administrative, technical, or physical safeguards used to
1055 access, collect, distribute, process, protect, store, use,
1056 transmit, dispose of, or otherwise handle customer information.
1057 (f) "Information system" means a discrete set of
1058 electronic information resources organized for the collection,
1059 processing, maintenance, use, sharing, dissemination, or
1060 disposition of electronic information, as well as any
1061 specialized system such as an industrial process control system,
1062 telephone switching and private branch exchange system, or
1063 environmental control system, which contain customer information
1064 or which are connected to a system that contains customer
1065 information.
1066 (g)1. "Nonpublic personal information" means:
1067 a. Personally identifiable financial information; and
1068 b. Any list, description, or other grouping of customers
1069 that is derived using any personally identifiable financial
1070 information that is not publicly available, such as account
1071 numbers, including any list of individuals' names and street
1072 addresses that is derived, in whole or in part, using personally
1073 identifiable financial information that is not publicly
1074 available.
1075 2. The term does not include:
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1076 a. Publicly available information, except as included on a
1077 list, description, or other grouping of customers described in
1078 sub-subparagraph 1.b.;
1079 b. Any list, description, or other grouping of consumers,
1080 or any publicly available information pertaining to such list,
1081 description, or other grouping of consumers, which is derived
1082 without using any personally identifiable financial information
1083 that is not publicly available; or
1084 c. Any list of individuals' names and addresses that
1085 contains only publicly available information, is not derived, in
1086 whole or in part, using personally identifiable financial
1087 information that is not publicly available, and is not disclosed
1088 in a manner that indicates that any of the individuals on the
1089 list is a customer of a licensee.
1090 3. As used in this paragraph, the term:
1091 a.(I) "Personally identifiable financial information"
1092 means any information that:
1093 (A) A customer provides to a licensee to obtain a
1094 financial product or service, such as information that a
1095 customer provides to a licensee on an application to obtain a
1096 loan or other financial product or service;
1097 (B) A licensee receives about a consumer that is obtained
1098 during or as a result of any transaction involving a financial
1099 product or service between the licensee and the customer, such
1100 as information collected through an information-collecting
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1101 device from a web server; or
1102 (C) A licensee otherwise obtains about a customer in
1103 connection with providing a financial product or service to the
1104 customer, such as the fact that an individual is or has been one
1105 of the licensee's customers or has obtained a financial product
1106 or service from the licensee.
1107 (II) The term "personally identifiable financial
1108 information" does not include:
1109 (A) A list of names and addresses of customers of an
1110 entity that is not a financial institution; or
1111 (B) Information that does not identify a customer, such as
1112 blind data or aggregate information that does not contain
1113 personal identifiers such as account numbers, names, or
1114 addresses.
1115 b.(I) "Publicly available information" means any
1116 information that a licensee has a reasonable basis to believe is
1117 lawfully made available to the general public from:
1118 (A) Federal, state, or local government records, such as
1119 government real estate records or security interest filings;
1120 (B) Widely distributed media, such as information from a
1121 telephone records repository or directory, a television or radio
1122 program, a newspaper, a social media platform, or a website that
1123 is available to the general public on an unrestricted basis. A
1124 website is not restricted merely because an Internet service
1125 provider or a site operator requires a fee or a password, so
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1126 long as access is available to the general public; or
1127 (C) Disclosures to the general public which are required
1128 to be made by federal, state, or local law.
1129 (II) As used in this sub-subparagraph, the term
1130 "reasonable basis to believe is lawfully made available to the
1131 general public" relating to any information means that the
1132 person has taken steps to determine:
1133 (A) That the information is of the type that is available
1134 to the general public, such as information included on the
1135 public record in the jurisdiction where the mortgage would be
1136 recorded; and
1137 (B) Whether an individual can direct that the information
1138 not be made available to the general public and, if so, the
1139 customer to whom the information relates has not done so, such
1140 as when a telephone number is listed in a telephone directory
1141 and the customer has informed the licensee that the telephone
1142 number is not unlisted.
1143 (h) "Third-party service provider" means a person, other
1144 than a licensee, which contracts with a licensee to maintain,
1145 process, or store nonpublic personal information, or is
1146 otherwise permitted access to nonpublic personal information
1147 through its provision of services to a licensee.
1148 (2) INFORMATION SECURITY PROGRAM.—
1149 (a) Each licensee shall develop, implement, and maintain a
1150 comprehensive written information security program that contains
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1151 administrative, technical, and physical safeguards for the
1152 protection of the licensee's information system and nonpublic
1153 personal information.
1154 (b) Each licensee shall ensure that the information
1155 security program meets all of the following criteria:
1156 1. Be commensurate with the following measures:
1157 a. Size and complexity of the licensee.
1158 b. Nature and scope of the licensee's activities,
1159 including the licensee's use of third-party service providers.
1160 c. Sensitivity of nonpublic personal information that is
1161 used by the licensee or that is in the licensee's possession,
1162 custody, or control.
1163 2. Be designed to do all of the following:
1164 a. Protect the security and confidentiality of nonpublic
1165 personal information and the security of the licensee's
1166 information system.
1167 b. Protect against threats or hazards to the security or
1168 integrity of nonpublic personal information and the licensee's
1169 information system.
1170 c. Protect against unauthorized access to or the use of
1171 nonpublic personal information and minimize the likelihood of
1172 harm to any customer.
1173 3. Define and periodically reevaluate the retention
1174 schedule and the mechanism for the destruction of nonpublic
1175 personal information if retention is no longer necessary for the
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1176 licensee's business operations or is no longer required by
1177 applicable law.
1178 4. Regularly test and monitor systems and procedures for
1179 the detection of actual and attempted attacks on, or intrusions
1180 into, the licensee's information system.
1181 5. Be monitored, evaluated, and adjusted, as necessary, to
1182 meet all of the following requirements:
1183 a. Determine whether the licensee's information security
1184 program is consistent with relevant changes in technology.
1185 b. Confirm the licensee's information security program
1186 accounts for the sensitivity of nonpublic personal information.
1187 c. Identify changes that may be necessary to the
1188 licensee's information system.
1189 d. Eliminate any internal or external threats to nonpublic
1190 personal information.
1191 e. Amend the licensee's information security program for
1192 any of the licensee's changing business arrangements, including,
1193 but not limited to, mergers and acquisitions, alliances and
1194 joint ventures, and outsourcing arrangements.
1195 (c)1. As part of a licensee's information security
1196 program, the licensee shall establish a written incident
1197 response plan designed to promptly respond to, and recover from,
1198 a cybersecurity event that compromises:
1199 a. The confidentiality, integrity, or availability of
1200 nonpublic personal information in the licensee's possession;
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1201 b. The licensee's information system; or
1202 c. The continuing functionality of any aspect of the
1203 licensee's operations.
1204 2. The written incident response plan must address all of
1205 the following:
1206 a. The licensee's internal process for responding to a
1207 cybersecurity event.
1208 b. The goals of the licensee's incident response plan.
1209 c. The assignment of clear roles, responsibilities, and
1210 levels of decisionmaking authority for the licensee's personnel
1211 that participate in the incident response plan.
1212 d. External communications, internal communications, and
1213 information sharing related to a cybersecurity event.
1214 e. The identification of remediation requirements for
1215 weaknesses identified in information systems and associated
1216 controls.
1217 f. The documentation and reporting regarding cybersecurity
1218 events and related incident response activities.
1219 g. The evaluation and revision of the incident response
1220 plan, as appropriate, following a cybersecurity event.
1221 h. The process by which notice must be given as required
1222 under subsection (4) and s. 501.171(3) and (4).
1223 (d)1. This section does not apply to a licensee that has
1224 fewer than:
1225 a. Twenty individuals on its workforce, including
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1226 employees and independent contractors; or
1227 b. Five hundred customers during a calendar year.
1228 2. A licensee that no longer qualifies for exemption under
1229 subparagraph 1. has 180 calendar days to comply with this
1230 section after the date of the disqualification.
1231 (e) Each licensee shall maintain a copy of the information
1232 security program for a minimum of 5 years and shall make it
1233 available to the office upon request or as part of an
1234 examination.
1235 (3) CYBERSECURITY EVENT INVESTIGATION.—
1236 (a) If a licensee discovers that a cybersecurity event has
1237 occurred or that a cybersecurity event may have occurred, the
1238 licensee, or an outside vendor or third-party service provider
1239 that the licensee has designated to act on its behalf, shall
1240 conduct a prompt investigation of the cybersecurity event.
1241 (b) During the investigation, the licensee, or the outside
1242 vendor or third-party service provider that the licensee has
1243 designated to act on its behalf, shall, at a minimum, determine
1244 as much of the following as possible:
1245 1. Confirm that a cybersecurity event has occurred.
1246 2. Identify the date that the cybersecurity event first
1247 occurred.
1248 3. Assess the nature and scope of the cybersecurity event.
1249 4. Identify all nonpublic personal information that may
1250 have been compromised by the cybersecurity event.
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1251 5. Perform or oversee reasonable measures to restore the
1252 security of any compromised information system in order to
1253 prevent further unauthorized acquisition, release, or use of
1254 nonpublic personal information that is in the licensee's,
1255 outside vendor's, or third-party service provider's possession,
1256 custody, or control.
1257 (c) If a licensee learns that a cybersecurity event has
1258 occurred, or may have occurred, in an information system
1259 maintained by a third-party service provider of the licensee,
1260 the licensee shall complete an investigation in compliance with
1261 this section or confirm and document that the third-party
1262 service provider has completed an investigation in compliance
1263 with this section.
1264 (d) A licensee shall maintain all records and
1265 documentation related to the licensee's investigation of a
1266 cybersecurity event for a minimum of 5 years after the date of
1267 the cybersecurity event and shall produce the records and
1268 documentation to the office upon request.
1269 (4) NOTICE TO OFFICE OF SECURITY BREACH.—
1270 (a) Each licensee shall provide notice to the office of
1271 any breach of security affecting 500 or more individuals in this
1272 state at a time and in the manner prescribed by commission rule.
1273 (b) Each licensee shall, upon the office's request,
1274 provide a quarterly update of a cybersecurity event
1275 investigation under subsection (3) until conclusion of the
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1276 investigation.
1277 (5) CONSTRUCTION.—This section may not be construed to
1278 relieve a covered entity from complying with s. 501.171. To the
1279 extent a licensee is a covered entity, as defined in s.
1280 501.171(1), the licensee remains subject to s. 501.171.
1281 (6) RULES.—The commission may adopt rules to administer
1282 this section, including rules that allow a licensee that is in
1283 full compliance with the Federal Trade Commission's Standards
1284 for Safeguarding Customer Information, 16 C.F.R. part 314, to be
1285 deemed in compliance with subsection (2).
1286 Section 7. Section 655.0171, Florida Statutes, is created
1287 to read:
1288 655.0171 Requirements for customer data security and for
1289 notices of security breaches.—
1290 (1) DEFINITIONS.—As used in this section, the term:
1291 (a) "Breach of security" or "breach" means unauthorized
1292 access of data in electronic form containing personal
1293 information. Good faith access of personal information by an
1294 employee or agent of a financial institution does not constitute
1295 a breach of security, provided that the information is not used
1296 for a purpose unrelated to the business or subject to further
1297 unauthorized use. As used in this paragraph, the term "data in
1298 electronic form" means any data stored electronically or
1299 digitally on any computer system or other database and includes
1300 recordable tapes and other mass storage devices.
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1301 (b) "Department" means the Department of Legal Affairs.
1302 (c)1. "Personal information" means:
1303 a. An individual's first name, or first initial, and last
1304 name, in combination with any of the following data elements for
1305 that individual:
1306 (I) A social security number;
1307 (II) A driver license or identification card number,
1308 passport number, military identification number, or other
1309 similar number issued on a government document used to verify
1310 identity;
1311 (III) A financial account number or credit or debit card
1312 number, in combination with any required security code, access
1313 code, or password that is necessary to permit access to the
1314 individual's financial account;
1315 (IV) The individual's biometric data as defined in s.
1316 501.702; or
1317 (V) Any information regarding the individual's
1318 geolocation; or
1319 b. A username or e-mail address, in combination with a
1320 password or security question and answer that would permit
1321 access to an online account.
1322 2. The term does not include information about an
1323 individual which has been made publicly available by a federal,
1324 state, or local governmental entity. The term also does not
1325 include information that is encrypted, secured, or modified by
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1326 any other method or technology that removes elements that
1327 personally identify an individual or that otherwise renders the
1328 information unusable.
1329 (2) REQUIREMENTS FOR DATA SECURITY.—Each financial
1330 institution shall take reasonable measures to protect and secure
1331 data that are in electronic form and that contain personal
1332 information.
1333 (3) NOTICE TO OFFICE AND DEPARTMENT OF SECURITY BREACH.—
1334 (a)1. Each financial institution shall provide notice to
1335 the office of any breach of security affecting 500 or more
1336 individuals in this state. Such notice must be provided to the
1337 office as expeditiously as practicable, but no later than 30
1338 days after the determination of the breach or the determination
1339 of a reason to believe that a breach has occurred.
1340 2. The written notice to the office must include the items
1341 required under s. 501.171(3)(b).
1342 3. A financial institution must provide the following
1343 information to the office upon its request:
1344 a. A police report, incident report, or computer forensics
1345 report.
1346 b. A copy of the policies in place regarding breaches.
1347 4. Steps that have been taken to rectify the breach.
1348 5. A financial institution may provide the office with
1349 supplemental information regarding a breach at any time.
1350 (b) Each financial institution shall provide notice to the
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1351 department of any breach of security affecting 500 or more
1352 individuals in this state. Such notice must be provided to the
1353 department in accordance with s. 501.171.
1354 (4) NOTICE TO INDIVIDUALS OF SECURITY BREACH.—Each
1355 financial institution shall give notice to each individual in
1356 this state whose personal information was, or the financial
1357 institution reasonably believes to have been, accessed as a
1358 result of the breach in accordance with s. 501.171(4). The
1359 notice must be provided no later than 30 days after the
1360 determination of the breach or the determination of a reason to
1361 believe that a breach has occurred. A financial institution may
1362 receive 15 additional days to provide notice to individuals of a
1363 security breach as required in this subsection if good cause for
1364 delay is provided in writing to the office within 30 days after
1365 determination of the breach or determination of the reason to
1366 believe that a breach has occurred.
1367 (5) NOTICE TO CREDIT REPORTING AGENCIES.—If a financial
1368 institution discovers circumstances requiring notice pursuant to
1369 this section of more than 1,000 individuals at a single time,
1370 the financial institution shall also notify, without
1371 unreasonable delay, all consumer reporting agencies that compile
1372 and maintain files on consumers on a nationwide basis, as
1373 defined in the Fair Credit Reporting Act, 15 U.S.C. s. 1681a(p),
1374 of the timing, distribution, and content of the notices.
1375 Section 8. Paragraph (d) of subsection (1) of section
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1376 655.045, Florida Statutes, is amended to read:
1377 655.045 Examinations, reports, and internal audits;
1378 penalty.—
1379 (1) The office shall conduct an examination of the
1380 condition of each state financial institution at least every 18
1381 months. The office may conduct more frequent examinations based
1382 upon the risk profile of the financial institution, prior
1383 examination results, or significant changes in the institution
1384 or its operations. The office may use continuous, phase, or
1385 other flexible scheduling examination methods for very large or
1386 complex state financial institutions and financial institutions
1387 owned or controlled by a multi-financial institution holding
1388 company. The office shall consider examination guidelines from
1389 federal regulatory agencies in order to facilitate, coordinate,
1390 and standardize examination processes.
1391 (d) As used in this section, the term "costs" means the
1392 salary and travel expenses directly attributable to the field
1393 staff examining the state financial institution, subsidiary, or
1394 service corporation, and the travel expenses of any supervisory
1395 staff required as a result of examination findings. The mailing
1396 of any costs incurred under this subsection must be postmarked
1397 within 45 30 days after the date of receipt of a notice stating
1398 that such costs are due. The office may levy a late payment of
1399 up to $100 per day or part thereof that a payment is overdue,
1400 unless excused for good cause. However, for intentional late
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1401 payment of costs, the office may levy an administrative fine of
1402 up to $1,000 per day for each day the payment is overdue.
1403 Section 9. Subsection (2) of section 657.005, Florida
1404 Statutes, is amended to read:
1405 657.005 Application for authority to organize a credit
1406 union; investigation.—
1407 (2) Any five or more individuals, a majority of whom are
1408 residents of this state and all of whom who represent a limited
1409 field of membership, may apply to the office for permission to
1410 organize a credit union. The fact that individuals within the
1411 proposed limited field of membership have credit union services
1412 available to them through another limited field of membership
1413 shall not preclude the granting of a certificate of
1414 authorization to engage in the business of a credit union.
1415 Section 10. Subsection (1) of section 657.024, Florida
1416 Statutes, is amended to read:
1417 657.024 Membership meetings.—
1418 (1) The members shall receive timely notice of the annual
1419 meeting and any special meetings of the members, which shall be
1420 held at the time, place, and in the manner provided in the
1421 bylaws. The annual meeting and any special meetings of the
1422 members may be held virtually and without a quorum, subject to
1423 the bylaws.
1424 Section 11. Subsections (6) and (7) of section 657.042,
1425 Florida Statutes, are renumbered as subsections (5) and (6), and
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1426 paragraph (b) of subsection (3) and present subsection (5) of
1427 that section are amended to read:
1428 657.042 Investment powers and limitations.—A credit union
1429 may invest its funds subject to the following definitions,
1430 restrictions, and limitations:
1431 (3) INVESTMENT SUBJECT TO LIMITATION OF TWO PERCENT OF
1432 CAPITAL OF THE CREDIT UNION.—
1433 (b) Commercial paper and bonds of any corporation within
1434 the United States which have a fixed maturity, as provided in
1435 subsection (6) (7), except that the total investment in all such
1436 paper and bonds may not exceed 10 percent of the capital of the
1437 credit union.
1438 (5) INVESTMENTS IN REAL ESTATE AND EQUIPMENT FOR THE
1439 CREDIT UNION.—
1440 (a) Up to 5 percent of the capital of the credit union may
1441 be invested in real estate and improvements thereon, furniture,
1442 fixtures, and equipment utilized or to be utilized by the credit
1443 union for the transaction of business.
1444 (b) The limitations provided by this subsection may be
1445 exceeded with the prior written approval of the office. The
1446 office shall grant such approval if it is satisfied that:
1447 1. The proposed investment is necessary.
1448 2. The amount thereof is commensurate with the size and
1449 needs of the credit union.
1450 3. The investment will be beneficial to the members.
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1451 4. A reasonable plan is developed to reduce the investment
1452 to statutory limits.
1453 Section 12. Paragraphs (b) and (c) of subsection (4) of
1454 section 658.21, Florida Statutes, are amended to read:
1455 658.21 Approval of application; findings required.—The
1456 office shall approve the application if it finds that:
1457 (4)
1458 (b) At least two of the proposed directors who are not
1459 also proposed officers must have had within the 10 years before
1460 the date of the application at least 1 year of direct experience
1461 as an executive officer, regulator, or director of a financial
1462 institution as specified in the application within the 5 years
1463 before the date of the application. However, if the applicant
1464 demonstrates that at least one of the proposed directors has
1465 very substantial experience as an executive officer, director,
1466 or regulator of a financial institution more than 5 years before
1467 the date of the application, the office may modify the
1468 requirement and allow the applicant to have only one director
1469 who has direct financial institution experience within the last
1470 5 years.
1471 (c) The proposed president or chief executive officer must
1472 have had at least 1 year of direct experience as an executive
1473 officer, director, or regulator of a financial institution
1474 within the last 10 5 years. In making a decision, the office
1475 must also consider may waive this requirement after considering:
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1476 1. The adequacy of the overall experience and expertise of
1477 the proposed president or chief executive officer;
1478 2. The likelihood of successful operation of the proposed
1479 state bank or trust company pursuant to subsection (1);
1480 3. The adequacy of the proposed capitalization under
1481 subsection (2);
1482 4. The proposed capital structure under subsection (3);
1483 5. The experience of the other proposed officers and
1484 directors; and
1485 6. Any other relevant data or information.
1486 Section 13. Subsection (2) of section 658.33, Florida
1487 Statutes, is amended to read:
1488 658.33 Directors, number, qualifications; officers.—
1489 (2) Not less than a majority of the directors must, during
1490 their whole term of service, be citizens of the United States,
1491 and at least a majority of the directors must have resided in
1492 this state for at least 1 year preceding their election and must
1493 be residents therein during their continuance in office. In the
1494 case of a bank or trust company with total assets of less than
1495 $150 million, at least one, and in the case of a bank or trust
1496 company with total assets of $150 million or more, two of the
1497 directors who are not also officers of the bank or trust company
1498 must have had at least 1 year of direct experience as an
1499 executive officer, regulator, or director of a financial
1500 institution within the last 10 5 years.
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1501 Section 14. Subsection (4) of section 662.141, Florida
1502 Statutes, is amended to read:
1503 662.141 Examination, investigations, and fees.—The office
1504 may conduct an examination or investigation of a licensed family
1505 trust company at any time it deems necessary to determine
1506 whether the licensed family trust company or licensed family
1507 trust company-affiliated party thereof has violated or is about
1508 to violate any provision of this chapter, any applicable
1509 provision of the financial institutions codes, or any rule
1510 adopted by the commission pursuant to this chapter or the codes.
1511 The office may conduct an examination or investigation of a
1512 family trust company or foreign licensed family trust company at
1513 any time it deems necessary to determine whether the family
1514 trust company or foreign licensed family trust company has
1515 engaged in any act prohibited under s. 662.131 or s. 662.134
1516 and, if a family trust company or a foreign licensed family
1517 trust company has engaged in such act, to determine whether any
1518 applicable provision of the financial institutions codes has
1519 been violated.
1520 (4) For each examination of the books and records of a
1521 family trust company, licensed family trust company, or foreign
1522 licensed family trust company as authorized under this chapter,
1523 the trust company shall pay a fee for the costs of the
1524 examination by the office. As used in this section, the term
1525 "costs" means the salary and travel expenses of field staff
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1526 which are directly attributable to the examination of the trust
1527 company and the travel expenses of any supervisory and support
1528 staff required as a result of examination findings. The mailing
1529 of payment for costs incurred must be postmarked within 45 30
1530 days after the receipt of a notice stating that the costs are
1531 due. The office may levy a late payment of up to $100 per day or
1532 part thereof that a payment is overdue unless waived for good
1533 cause. However, if the late payment of costs is intentional, the
1534 office may levy an administrative fine of up to $1,000 per day
1535 for each day the payment is overdue.
1536 Section 15. Subsection (21) of section 517.12, Florida
1537 Statutes, is amended to read:
1538 517.12 Registration of dealers, associated persons,
1539 intermediaries, and investment advisers.—
1540 (21) The registration requirements of this section do not
1541 apply to any general lines insurance agent or life insurance
1542 agent licensed under chapter 626, with regard to the sale of a
1543 security as defined in s. 517.021(34)(g) s. 517.021(33)(g), if
1544 the individual is directly authorized by the issuer to offer or
1545 sell the security on behalf of the issuer and the issuer is a
1546 federally chartered savings bank subject to regulation by the
1547 Federal Deposit Insurance Corporation. Actions under this
1548 subsection constitute activity under the insurance agent's
1549 license for purposes of ss. 626.611 and 626.621.
1550 Section 16. This act shall take effect July 1, 2026.
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INSURANCE & BANKING SUBCOMMITTEE
HB 381 by Rep. Barnaby
Office of Financial Regulation
AMENDMENT SUMMARY
January 21, 2026
Amendment by Rep. Barnaby (strike-all):
• Removes the requirements to perform cybersecurity investigation for mortgage and
money services businesses, in order to maintain consistency with the Federal Trade
Commission Safeguard Rules.
• Removes the provisions related to the financial technology sandbox.
• Revises the definition of “family office” to have the same meaning as in Securities and
Exchange Commission rules.
• Provides that the rights and obligations of parties with respect to surrendered or
repossessed motor vehicles are exclusively governed Florida’s Uniform Commercial
Code.
• Provides that debit cards shall be treated the same as cash when used to pay off
deferred presentment transactions, meaning that debit cards shall immediately satisfy a
transaction.
• Provides that credit cards cannot be used to pay off deferred presentment transactions
(payday loans).
• Clarifies that licensees must comply with the Fair Debt Collections Practices Act only if
the licensee uses a third-party debt collector.
• Clarifies that when OFR issues an emergency suspension order against a money
services business licensee:
o The order must state the grounds on which the order is based along with other
information about the business’s rights.
o OFR must institute an administrative action within 20 days.
o A business may seek judicial review of the emergency suspension order.
COMMITTEE/SUBCOMMITTEE AMENDMENT
Bill No. HB 381 (2026)
Amendment No.
COMMITTEE/SUBCOMMITTEE ACTION
ADOPTED (Y/N)
ADOPTED AS AMENDED (Y/N)
ADOPTED W/O OBJECTION (Y/N)
FAILED TO ADOPT (Y/N)
WITHDRAWN (Y/N)
OTHER
1 Committee/Subcommittee hearing bill: Insurance & Banking
2 Subcommittee
3 Representative Barnaby offered the following:
4
5 Amendment (with title amendment)
6 Remove everything after the enacting clause and insert:
7 Section 1. Section 494.00123, Florida Statutes, is created
8 to read:
9 494.00123 Information security programs.—
10 (1) DEFINITIONS.—As used in this section, the term:
11 (a) "Customer" means a person who seeks to obtain or who
12 obtains or has obtained a financial product or service from a
13 licensee.
14 (b) "Customer information" means any record containing
15 nonpublic personal information about a customer of a financial
16 transaction, whether on paper, electronic, or in other forms,
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Amendment No.
17 which is handled or maintained by or on behalf of the licensee
18 or its affiliates.
19 (c) "Cybersecurity event" means an event resulting in
20 unauthorized access to, or disruption or misuse of, an
21 information system, information stored on such information
22 system, or customer information held in physical form.
23 (d) "Financial product or service" means any product or
24 service offered by a licensee under this chapter.
25 (e) "Information security program" means the
26 administrative, technical, or physical safeguards used to
27 access, collect, distribute, process, protect, store, use,
28 transmit, dispose of, or otherwise handle customer information.
29 (f) "Information system" means a discrete set of
30 electronic information resources organized for the collection,
31 processing, maintenance, use, sharing, dissemination, or
32 disposition of electronic information, as well as any
33 specialized system such as an industrial process control system,
34 telephone switching and private branch exchange system, or
35 environmental control system, which contain customer information
36 or which are connected to a system that contains customer
37 information.
38 (g) "Licensee" means a person licensed under this chapter.
39 (h)1. "Nonpublic personal information" means:
40 a. Personally identifiable financial information; and
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Amendment No.
41 b. Any list, description, or other grouping of customers
42 that is derived using any personally identifiable financial
43 information that is not publicly available, such as account
44 numbers, including any list of individuals' names and street
45 addresses that is derived, in whole or in part, using personally
46 identifiable financial information that is not publicly
47 available.
48 2. The term does not include:
49 a. Publicly available information, except as included on a
50 list, description, or other grouping of customers described in
51 sub-subparagraph 1.b.;
52 b. Any list, description, or other grouping of consumers,
53 or any publicly available information pertaining to such list,
54 description, or other grouping of consumers, which is derived
55 without using any personally identifiable financial information
56 that is not publicly available; or
57 c. Any list of individuals' names and addresses that
58 contains only publicly available information, is not derived, in
59 whole or in part, using personally identifiable financial
60 information that is not publicly available, and is not disclosed
61 in a manner that indicates that any of the individuals on the
62 list is a customer of a licensee.
63 3. As used in this paragraph, the term:
64 a.(I) "Personally identifiable financial information"
65 means any information that:
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Amendment No.
66 (A) A customer provides to a licensee to obtain a
67 financial product or service, such as information that a
68 customer provides to a licensee on an application to obtain a
69 loan or other financial product or service;
70 (B) A licensee receives about a consumer that is obtained
71 during or as a result of any transaction involving a financial
72 product or service between the licensee and the customer, such
73 as information collected through an information-collecting
74 device from a web server; or
75 (C) A licensee otherwise obtains about a customer in
76 connection with providing a financial product or service to the
77 customer, such as the fact that an individual is or has been one
78 of the licensee's customers or has obtained a financial product
79 or service from the licensee.
80 (II) The term "personally identifiable financial
81 information" does not include:
82 (A) A list of names and addresses of customers of an
83 entity that is not a financial institution; or
84 (B) Information that does not identify a customer, such as
85 blind data or aggregate information that does not contain
86 personal identifiers such as account numbers, names, or
87 addresses.
88 b.(I) "Publicly available information" means any
89 information that a licensee has a reasonable basis to believe is
90 lawfully made available to the general public from:
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Amendment No.
91 (A) Federal, state, or local government records, such as
92 government real estate records or security interest filings;
93 (B) Widely distributed media, such as information from a
94 telephone records repository or directory, a television or radio
95 program, a newspaper, a social media platform, or a website that
96 is available to the general public on an unrestricted basis. A
97 website is not restricted merely because an Internet service
98 provider or a site operator requires a fee or a password, so
99 long as access is available to the general public; or
100 (C) Disclosures to the general public which are required
101 to be made by federal, state, or local law.
102 (II) As used in this sub-subparagraph, the term
103 "reasonable basis to believe is lawfully made available to the
104 general public" relating to any information means that the
105 person has taken steps to determine:
106 (A) That the information is of the type that is available
107 to the general public, such as information included on the
108 public record in the jurisdiction where the mortgage would be
109 recorded; and
110 (B) Whether an individual can direct that the information
111 not be made available to the general public and, if so, the
112 customer to whom the information relates has not done so, such
113 as when a telephone number is listed in a telephone directory
114 and the customer has informed the licensee that the telephone
115 number is not unlisted.
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Amendment No.
116 (i) "Third-party service provider" means a person, other
117 than a licensee, which contracts with a licensee to maintain,
118 process, or store nonpublic personal information, or is
119 otherwise permitted access to nonpublic personal information
120 through its provision of services to a licensee.
121 (2) INFORMATION SECURITY PROGRAM.—
122 (a) Each licensee shall develop, implement, and maintain a
123 comprehensive written information security program that contains
124 administrative, technical, and physical safeguards for the
125 protection of the licensee's information system and nonpublic
126 personal information.
127 (b) Each licensee shall ensure that the information
128 security program meets all of the following criteria:
129 1. Be commensurate with the following measures:
130 a. Size and complexity of the licensee.
131 b. Nature and scope of the licensee's activities,
132 including the licensee's use of third-party service providers.
133 c. Sensitivity of nonpublic personal information that is
134 used by the licensee or that is in the licensee's possession,
135 custody, or control.
136 2. Be designed to do all of the following:
137 a. Protect the security and confidentiality of nonpublic
138 personal information and the security of the licensee's
139 information system.
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Amendment No.
140 b. Protect against threats or hazards to the security or
141 integrity of nonpublic personal information and the licensee's
142 information system.
143 c. Protect against unauthorized access to or the use of
144 nonpublic personal information and minimize the likelihood of
145 harm to any customer.
146 3. Define and periodically reevaluate the retention
147 schedule and the mechanism for the destruction of nonpublic
148 personal information if retention is no longer necessary for the
149 licensee's business operations or is no longer required by
150 applicable law.
151 4. Regularly test and monitor systems and procedures for
152 the detection of actual and attempted attacks on, or intrusions
153 into, the licensee's information system.
154 5. Be monitored, evaluated, and adjusted, as necessary, to
155 meet all of the following requirements:
156 a. Determine whether the licensee's information security
157 program is consistent with relevant changes in technology.
158 b. Confirm the licensee's information security program
159 accounts for the sensitivity of nonpublic personal information.
160 c. Identify changes that may be necessary to the
161 licensee's information system.
162 d. Mitigate any internal or external threats to nonpublic
163 personal information.
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Amendment No.
164 e. Amend the licensee's information security program for
165 any of the licensee's changing business arrangements, including,
166 but not limited to, mergers and acquisitions, alliances and
167 joint ventures, and outsourcing arrangements.
168 (c)1. As part of a licensee's information security
169 program, the licensee shall establish a written incident
170 response plan designed to promptly respond to, and recover from,
171 a cybersecurity event that compromises:
172 a. The confidentiality, integrity, or availability of
173 nonpublic personal information in the licensee's possession;
174 b. The licensee's information system; or
175 c. The continuing functionality of any aspect of the
176 licensee's operations.
177 2. The written incident response plan must address all of
178 the following:
179 a. The licensee's internal process for responding to a
180 cybersecurity event.
181 b. The goals of the licensee's incident response plan.
182 c. The assignment of clear roles, responsibilities, and
183 levels of decisionmaking authority for the licensee's personnel
184 that participate in the incident response plan.
185 d. External communications, internal communications, and
186 information sharing related to a cybersecurity event.
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187 e. The identification of remediation requirements for
188 weaknesses identified in information systems and associated
189 controls.
190 f. The documentation and reporting regarding cybersecurity
191 events and related incident response activities.
192 g. The evaluation and revision of the incident response
193 plan, as appropriate, following a cybersecurity event.
194 h. The process by which notice must be given as required
195 under subsection (4) and s. 501.171(3) and (4).
196 (d)1. This section does not apply to a licensee that has
197 fewer than:
198 a. Twenty individuals on its workforce, including
199 employees and independent contractors; or
200 b. Five hundred customers during a calendar year.
201 2. A licensee that no longer qualifies for exemption under
202 subparagraph 1. has 180 calendar days to comply with this
203 section after the date of the disqualification.
204 (e) Each licensee shall maintain a copy of the information
205 security program for a minimum of 5 years and shall make it
206 available to the office upon request or as part of an
207 examination.
208 (3) NOTICE TO OFFICE OF SECURITY BREACH.—
209 (a) Each licensee shall provide notice to the office of
210 any breach of security affecting 500 or more individuals in this
211 state at a time and in the manner prescribed by commission rule.
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Amendment No.
212 (4) CONSTRUCTION.—This section may not be construed to
213 relieve a covered entity from complying with s. 501.171. To the
214 extent a licensee is a covered entity, as defined in s.
215 501.171(1), the licensee remains subject to s. 501.171.
216 (5) RULES.—The commission must adopt rules to administer
217 this section, including rules that allow a licensee that is in
218 compliance with the Federal Trade Commission's Standards for
219 Safeguarding Customer Information, 16 C.F.R. part 314, to be
220 deemed in compliance with subsection (2).
221 Section 2. Paragraph (z) is added to subsection (1) of
222 section 494.00255, Florida Statutes, to read:
223 494.00255 Administrative penalties and fines; license
224 violations.—
225 (1) Each of the following acts constitutes a ground for
226 which the disciplinary actions specified in subsection (2) may
227 be taken against a person licensed or required to be licensed
228 under part II or part III of this chapter:
229 (z) Failure to comply with the notification requirements
230 in s. 501.171(3) and (4).
231 Section 3. Subsections (28) through (36) of section
232 517.021, Florida Statutes, are renumbered as subsections (29)
233 through (37), respectively, subsection (20) is amended, and a
234 new subsection (28) is added to that section, to read:
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Amendment No.
235 517.021 Definitions.—When used in this chapter, unless the
236 context otherwise indicates, the following terms have the
237 following respective meanings:
238 (20)(a) "Investment adviser" means a person, other than an
239 associated person of an investment adviser or a federal covered
240 adviser, that receives compensation, directly or indirectly, and
241 engages for all or part of the person's time, directly or
242 indirectly, or through publications or writings, in the business
243 of advising others as to the value of securities or as to the
244 advisability of investments in, purchasing of, or selling of
245 securities.
246 (b) The term does not include any of the following:
247 1. A dealer or an associated person of a dealer whose
248 performance of services in paragraph (a) is solely incidental to
249 the conduct of the dealer's or associated person's business as a
250 dealer and who does not receive special compensation for those
251 services.
252 2. A licensed practicing attorney or certified public
253 accountant whose performance of such services is solely
254 incidental to the practice of the attorney's or accountant's
255 profession.
256 3. A bank authorized to do business in this state.
257 4. A bank holding company as defined in the Bank Holding
258 Company Act of 1956, as amended, authorized to do business in
259 this state.
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Amendment No.
260 5. A trust company having trust powers, as defined in s.
261 658.12, which it is authorized to exercise in this state, which
262 trust company renders or performs investment advisory services
263 in a fiduciary capacity incidental to the exercise of its trust
264 powers.
265 6. A person that renders investment advice exclusively to
266 insurance or investment companies.
267 7. A person:
268 a. Without a place of business in this state if the person
269 has had that, during the preceding 12 months, has fewer than six
270 clients who are residents of this state.
271 b. With a place of business in this state if the person
272 has had, during the preceding 12 months, fewer than six clients
273 who are residents of this state and no clients who are not
274 residents of this state.
275
276 As used in this subparagraph, the term "client" has the same
277 meaning as provided in Securities and Exchange Commission Rule
278 222-2 275.222-2, 17 C.F.R. s. 275.222-2, as amended.
279 8. A federal covered adviser.
280 9. The United States, a state, or any political
281 subdivision of a state, or any agency, authority, or
282 instrumentality of any such entity; a business entity that is
283 wholly owned directly or indirectly by such a governmental
284 entity; or any officer, agent, or employee of any such
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285 governmental or business entity who is acting within the scope
286 of his or her official duties.
287 10. A family office as defined in Securities and Exchange
288 Commission Rule 202(a)(11)(G)-1(b) under the Investment Advisers
289 Act of 1940, 17 C.F.R. s. 275.202(a)(11)(G)-1(b), as amended. In
290 determining whether a person meets the definition of a family
291 office under this subparagraph, the terms “affiliated family
292 office,” “control,” “executive officer,” “family client,”
293 “family entity,” “family member,” “former family member,” “key
294 employee,” and “spousal equivalent” have the same meaning as in
295 Securities and Exchange Commission Rule 202(a)(11)(G)-1(d), 17
296 C.F.R. s. 275.202(a)(11)(G)-1(d).
297 (28) “Place of business” of an investment adviser means an
298 office at which the investment adviser regularly provides
299 investment advisory services to, solicits, meets with, or
300 otherwise communicates with clients; and any other location that
301 is held out to the general public as a location at which the
302 investment adviser provides investment advisory services to,
303 solicits, meets with, or otherwise communicates with clients.
304 Section 4. Paragraph (i) of subsection (9) of section
305 517.061, Florida Statutes, is amended to read:
306 517.061 Exempt transactions.—
307 Except as otherwise provided in subsection (11), the
308 exemptions provided herein from the registration requirements of
309 s. 517.07 are self-executing and do not require any filing with
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310 the office before being claimed. Any person who claims
311 entitlement to an exemption under this section bears the burden
312 of proving such entitlement in any proceeding brought under this
313 chapter. The registration provisions of s. 517.07 do not apply
314 to any of the following transactions; however, such transactions
315 are subject to s. 517.301:
316 (9) The offer or sale of securities to:
317 (i) A family office as defined in Securities and Exchange
318 Commission Rule 202(a)(11)(G)-1(b) 202(a)(11)(G)-1 under the
319 Investment Advisers Act of 1940, 17 C.F.R. s. 275.202(a)(11)(G)-
320 1(b) s. 275.202(a)(11)(G)-1, as amended, provided that:
321 1. The family office has assets under management in excess
322 of $5 million;
323 2. The family office is not formed for the specific purpose
324 41 of acquiring the securities offered; and
325 3. The prospective investment of the family office is
326 directed by a person who has knowledge and experience in
327 financial and business matters that the family office is capable
328 of evaluating the merits and risks of the prospective
329 investment.
330 In determining whether a person meets the definition of a
331 family office under this paragraph, the terms “affiliated family
332 office,” “control,” “executive officer,” “family client,”
333 “family entity,” “family member,” “former family member,” “key
334 employee,” and “spousal equivalent” have the same meaning as in
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335 Securities and Exchange Commission Rule 202(a)(11)(G)-1(d), 17
336 C.F.R. s. 275.202(a)(11)(G)-1(d).
337 Section 5. Subsections (1) and (2) of section 560.114,
338 Florida Statutes, are amended to read:
339 560.114 Disciplinary actions; penalties.—
340 (1) The following actions by a money services business, an
341 authorized vendor, or a affiliated party that was affiliated at
342 the time of commission of the actions constitute grounds for the
343 issuance of a cease and desist order; the issuance of a removal
344 order; the denial, suspension, or revocation of a license; or
345 taking any other action within the authority of the office
346 pursuant to this chapter:
347 (a) Failure to comply with any provision of this chapter
348 or related rule or order, or any written agreement entered into
349 with the office.
350 (b) Fraud, misrepresentation, deceit, or gross negligence
351 in any transaction by a money services business, regardless of
352 reliance thereon by, or damage to, a customer.
353 (c) Fraudulent misrepresentation, circumvention, or
354 concealment of any matter that must be stated or furnished to a
355 customer pursuant to this chapter, regardless of reliance
356 thereon by, or damage to, such customer.
357 (d) False, deceptive, or misleading advertising.
358 (e) Failure to maintain, preserve, keep available for
359 examination, and produce all books, accounts, files, or other
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360 documents required by this chapter or related rules or orders,
361 by 31 C.F.R. ss. 1010.306, 1010.311, 1010.312, 1010.340,
362 1010.410, 1010.415, 1022.210, 1022.320, 1022.380, and 1022.410,
363 or by an agreement entered into with the office.
364 (f) Refusing to allow the examination or inspection of
365 books, accounts, files, or other documents by the office
366 pursuant to this chapter, or to comply with a subpoena issued by
367 the office.
368 (g) Failure to pay a judgment recovered in any court by a
369 claimant in an action arising out of a money transmission
370 transaction within 30 days after the judgment becomes final.
371 (h) Engaging in an act prohibited under s. 560.111 or s.
372 560.1115.
373 (i) Insolvency.
374 (j) Failure by a money services business to remove an
375 affiliated party after the office has issued and served upon the
376 money services business a final order setting forth a finding
377 that the affiliated party has violated a provision of this
378 chapter.
379 (k) Making a material misstatement, misrepresentation, or
380 omission in an application for licensure, any amendment to such
381 application, or application for the appointment of an authorized
382 vendor.
383 (l) Committing any act that results in a license or its
384 equivalent, to practice any profession or occupation being
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385 denied, suspended, revoked, or otherwise acted against by a
386 licensing authority in any jurisdiction.
387 (m) Being the subject of final agency action or its
388 equivalent, issued by an appropriate regulator, for engaging in
389 unlicensed activity as a money services business or deferred
390 presentment provider in any jurisdiction.
391 (n) Committing any act resulting in a license or its
392 equivalent to practice any profession or occupation being
393 denied, suspended, revoked, or otherwise acted against by a
394 licensing authority in any jurisdiction for a violation of 18
395 U.S.C. s. 1956, 18 U.S.C. s. 1957, 18 U.S.C. s. 1960, 31 U.S.C.
396 s. 5324, or any other law or rule of another state or of the
397 United States relating to a money services business, deferred
398 presentment provider, or usury that may cause the denial,
399 suspension, or revocation of a money services business or
400 deferred presentment provider license or its equivalent in such
401 jurisdiction.
402 (o) Having been convicted of, or entered a plea of guilty
403 or nolo contendere to, any felony or crime punishable by
404 imprisonment of 1 year or more under the law of any state or the
405 United States which involves fraud, moral turpitude, or
406 dishonest dealing, regardless of adjudication.
407 (p) Having been convicted of, or entered a plea of guilty
408 or nolo contendere to, a crime under 18 U.S.C. s. 1956 or 31
409 U.S.C. s. 5318, s. 5322, or s. 5324, regardless of adjudication.
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410 (q) Having been convicted of, or entered a plea of guilty
411 or nolo contendere to, misappropriation, conversion, or unlawful
412 withholding of moneys belonging to others, regardless of
413 adjudication.
414 (r) Having been convicted of, or entered a plea of guilty
415 or nolo contendere to, a violation of 31 C.F.R. chapter X, part
416 1022, regardless of adjudication.
417 (s)(r) Failure to inform the office in writing within 30
418 days after having pled guilty or nolo contendere to, or being
419 convicted of, any felony or crime punishable by imprisonment of
420 1 year or more under the law of any state or the United States,
421 or any crime involving fraud, moral turpitude, or dishonest
422 dealing.
423 (t)(s) Aiding, assisting, procuring, advising, or abetting
424 any person in violating a provision of this chapter or any order
425 or rule of the office or commission.
426 (u)(t) Failure to pay any fee, charge, or cost imposed or
427 assessed under this chapter.
428 (v)(u) Failing to pay a fine assessed by the office within
429 30 days after the due date as stated in a final order.
430 (w)(v) Failure to pay any judgment entered by any court
431 within 30 days after the judgment becomes final.
432 (x)(w) Engaging or advertising engagement in the business
433 of a money services business or deferred presentment provider
434 without a license, unless exempted from licensure.
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435 (y)(x) Payment to the office for a license or other fee,
436 charge, cost, or fine with a check or electronic transmission of
437 funds that is dishonored by the applicant's or licensee's
438 financial institution.
439 (z)(y) Violations of 31 C.F.R. ss. 1010.306, 1010.311,
440 1010.312, 1010.340, 1010.410, 1010.415, 1022.210, 1022.320,
441 1022.380, and 1022.410, and United States Treasury Interpretive
442 Release 2004-1.
443 (aa)(z) Any practice or conduct that creates the
444 likelihood of a material loss, insolvency, or dissipation of
445 assets of a money services business or otherwise materially
446 prejudices the interests of its customers.
447 (bb)(aa) Failure of a check casher to maintain a federally
448 insured depository account as required by s. 560.309.
449 (cc)(bb) Failure of a check casher to deposit into its own
450 federally insured depository account any payment instrument
451 cashed as required by s. 560.309.
452 (dd)(cc) Violating any provision of the Military Lending
453 Act, 10 U.S.C. s. 987, or the regulations adopted under that act
454 in 32 C.F.R. part 232, in connection with a deferred presentment
455 transaction conducted under part IV of this chapter.
456 (ee) Failure to comply with the notification requirements
457 in s. 501.171(3) and (4).
458 (2) Pursuant to s. 120.60(6), The office shall issue an
459 emergency order suspending may summarily suspend the license of
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460 a money services business if the office finds that a licensee
461 poses an immediate, serious danger to the public health, safety,
462 and welfare as deemed by the Legislature. A proceeding in which
463 the office seeks the issuance of a final order for the summary
464 suspension of a licensee shall be conducted by the commissioner
465 of the office, or his or her designee, who shall issue such
466 order.
467 (a) An emergency order under this section may be issued
468 without prior notice and an opportunity to be heard. An
469 emergency order must:
470 1. state the grounds on which the order is based;
471 2. advise the licensee against whom the order is directed
472 that the order takes effect immediately, and, to the extent
473 applicable, require the licensee to immediately cease and desist
474 from the conduct or violation that is the subject of the order
475 or to take the affirmative action stated in the order as
476 necessary to correct a condition resulting from the conduct or
477 violation or as otherwise appropriate;
478 3. be delivered by personal delivery or sent by certified
479 mail, return receipt requested, to the licensee against whom the
480 order is directed at the licensee’s last known address; and
481 4. include a notice that the licensee subject to an
482 emergency suspension order may seek judicial review pursuant to
483 s. 120.68.
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484 (b) An emergency order is effective as soon as the licensee
485 against whom the order is directed has actual or constructive
486 knowledge of the issuance of the order.
487 (c) The office shall institute proceedings under ss.
488 120.569 and 120.57 within 20 days after issuance of an emergency
489 suspension order.
490 (d) A licensee subject to an emergency suspension order may
491 seek judicial review pursuant to s. 120.68.
492 (e)(2) The following acts are deemed by the Legislature to
493 constitute an immediate and serious danger to the public health,
494 safety, and welfare, and the office shall may immediately
495 suspend the license of a money services business without making
496 any further findings of immediate danger, necessity, and
497 procedural fairness if:
498 1.(a) The money services business fails to provide to the
499 office, upon written request, any of the records required by s.
500 560.123, s. 560.1235, s. 560.211, or s. 560.310 or any rule
501 adopted under those sections. The suspension may be rescinded if
502 the licensee submits the requested records to the office.
503 2.(b) The money services business fails to maintain a
504 federally insured depository account as required by s.
505 560.208(4) or s. 560.309.
506 3.(c) A natural person required to be listed on the
507 license application for a money services business pursuant to s.
508 560.141(1)(a)3. is criminally charged with, or arrested for, a
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Amendment No.
509 crime described in paragraph (1)(o), paragraph (1)(p), or
510 paragraph(1)(q).
511 Section 6. Section 520.135, Florida Statutes, is created
512 to read:
513 520.135 Surrendered or repossessed vehicles.—
514 The rights and obligations of parties with respect to a
515 surrendered or repossessed motor vehicle are exclusively
516 governed by part VI of chapter 679.
517 Section 7. Section 560.1311, Florida Statutes, is created
518 to read:
519 560.1311 Information security programs.—
520 (1) DEFINITIONS.—As used in this section, the term:
521 (a) "Customer" means a person who seeks to obtain or who
522 obtains or has obtained a financial product or service from a
523 licensee.
524 (b) "Customer information" means any record containing
525 nonpublic personal information about a customer of a financial
526 transaction, whether on paper, electronic, or in other forms,
527 which is handled or maintained by or on behalf of the licensee
528 or its affiliates.
529 (c) "Cybersecurity event" means an event resulting in
530 unauthorized access to, or disruption or misuse of, an
531 information system, information stored on such information
532 system, or customer information held in physical form.
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533 (d) "Financial product or service" means any product or
534 service offered by a licensee under this chapter.
535 (e) "Information security program" means the
536 administrative, technical, or physical safeguards used to
537 access, collect, distribute, process, protect, store, use,
538 transmit, dispose of, or otherwise handle customer information.
539 (f) "Information system" means a discrete set of
540 electronic information resources organized for the collection,
541 processing, maintenance, use, sharing, dissemination, or
542 disposition of electronic information, as well as any
543 specialized system such as an industrial process control system,
544 telephone switching and private branch exchange system, or
545 environmental control system, which contain customer information
546 or which are connected to a system that contains customer
547 information.
548 (g)1. "Nonpublic personal information" means:
549 a. Personally identifiable financial information; and
550 b. Any list, description, or other grouping of customers
551 that is derived using any personally identifiable financial
552 information that is not publicly available, such as account
553 numbers, including any list of individuals' names and street
554 addresses that is derived, in whole or in part, using personally
555 identifiable financial information that is not publicly
556 available.
557 2. The term does not include:
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558 a. Publicly available information, except as included on a
559 list, description, or other grouping of customers described in
560 sub-subparagraph 1.b.;
561 b. Any list, description, or other grouping of consumers,
562 or any publicly available information pertaining to such list,
563 description, or other grouping of consumers, which is derived
564 without using any personally identifiable financial information
565 that is not publicly available; or
566 c. Any list of individuals' names and addresses that
567 contains only publicly available information, is not derived, in
568 whole or in part, using personally identifiable financial
569 information that is not publicly available, and is not disclosed
570 in a manner that indicates that any of the individuals on the
571 list is a customer of a licensee.
572 3. As used in this paragraph, the term:
573 a.(I) "Personally identifiable financial information"
574 means any information that:
575 (A) A customer provides to a licensee to obtain a
576 financial product or service, such as information that a
577 customer provides to a licensee on an application to obtain a
578 loan or other financial product or service;
579 (B) A licensee receives about a consumer that is obtained
580 during or as a result of any transaction involving a financial
581 product or service between the licensee and the customer, such
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Amendment No.
582 as information collected through an information-collecting
583 device from a web server; or
584 (C) A licensee otherwise obtains about a customer in
585 connection with providing a financial product or service to the
586 customer, such as the fact that an individual is or has been one
587 of the licensee's customers or has obtained a financial product
588 or service from the licensee.
589 (II) The term "personally identifiable financial
590 information" does not include:
591 (A) A list of names and addresses of customers of an
592 entity that is not a financial institution; or
593 (B) Information that does not identify a customer, such as
594 blind data or aggregate information that does not contain
595 personal identifiers such as account numbers, names, or
596 addresses.
597 b.(I) "Publicly available information" means any
598 information that a licensee has a reasonable basis to believe is
599 lawfully made available to the general public from:
600 (A) Federal, state, or local government records, such as
601 government real estate records or security interest filings;
602 (B) Widely distributed media, such as information from a
603 telephone records repository or directory, a television or radio
604 program, a newspaper, a social media platform, or a website that
605 is available to the general public on an unrestricted basis. A
606 website is not restricted merely because an Internet service
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Amendment No.
607 provider or a site operator requires a fee or a password, so
608 long as access is available to the general public; or
609 (C) Disclosures to the general public which are required
610 to be made by federal, state, or local law.
611 (II) As used in this sub-subparagraph, the term
612 "reasonable basis to believe is lawfully made available to the
613 general public" relating to any information means that the
614 person has taken steps to determine:
615 (A) That the information is of the type that is available
616 to the general public, such as information included on the
617 public record in the jurisdiction where the mortgage would be
618 recorded; and
619 (B) Whether an individual can direct that the information
620 not be made available to the general public and, if so, the
621 customer to whom the information relates has not done so, such
622 as when a telephone number is listed in a telephone directory
623 and the customer has informed the licensee that the telephone
624 number is not unlisted.
625 (h) "Third-party service provider" means a person, other
626 than a licensee, which contracts with a licensee to maintain,
627 process, or store nonpublic personal information, or is
628 otherwise permitted access to nonpublic personal information
629 through its provision of services to a licensee.
630 (2) INFORMATION SECURITY PROGRAM.—
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Amendment No.
631 (a) Each licensee shall develop, implement, and maintain a
632 comprehensive written information security program that contains
633 administrative, technical, and physical safeguards for the
634 protection of the licensee's information system and nonpublic
635 personal information.
636 (b) Each licensee shall ensure that the information
637 security program meets all of the following criteria:
638 1. Be commensurate with the following measures:
639 a. Size and complexity of the licensee.
640 b. Nature and scope of the licensee's activities,
641 including the licensee's use of third-party service providers.
642 c. Sensitivity of nonpublic personal information that is
643 used by the licensee or that is in the licensee's possession,
644 custody, or control.
645 2. Be designed to do all of the following:
646 a. Protect the security and confidentiality of nonpublic
647 personal information and the security of the licensee's
648 information system.
649 b. Protect against threats or hazards to the security or
650 integrity of nonpublic personal information and the licensee's
651 information system.
652 c. Protect against unauthorized access to or the use of
653 nonpublic personal information and minimize the likelihood of
654 harm to any customer.
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655 3. Define and periodically reevaluate the retention
656 schedule and the mechanism for the destruction of nonpublic
657 personal information if retention is no longer necessary for the
658 licensee's business operations or is no longer required by
659 applicable law.
660 4. Regularly test and monitor systems and procedures for
661 the detection of actual and attempted attacks on, or intrusions
662 into, the licensee's information system.
663 5. Be monitored, evaluated, and adjusted, as necessary, to
664 meet all of the following requirements:
665 a. Determine whether the licensee's information security
666 program is consistent with relevant changes in technology.
667 b. Confirm the licensee's information security program
668 accounts for the sensitivity of nonpublic personal information.
669 c. Identify changes that may be necessary to the
670 licensee's information system.
671 d. Mitigate any internal or external threats to nonpublic
672 personal information.
673 e. Amend the licensee's information security program for
674 any of the licensee's changing business arrangements, including,
675 but not limited to, mergers and acquisitions, alliances and
676 joint ventures, and outsourcing arrangements.
677 (c)1. As part of a licensee's information security
678 program, the licensee shall establish a written incident
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Amendment No.
679 response plan designed to promptly respond to, and recover from,
680 a cybersecurity event that compromises:
681 a. The confidentiality, integrity, or availability of
682 nonpublic personal information in the licensee's possession;
683 b. The licensee's information system; or
684 c. The continuing functionality of any aspect of the
685 licensee's operations.
686 2. The written incident response plan must address all of
687 the following:
688 a. The licensee's internal process for responding to a
689 cybersecurity event.
690 b. The goals of the licensee's incident response plan.
691 c. The assignment of clear roles, responsibilities, and
692 levels of decisionmaking authority for the licensee's personnel
693 that participate in the incident response plan.
694 d. External communications, internal communications, and
695 information sharing related to a cybersecurity event.
696 e. The identification of remediation requirements for
697 weaknesses identified in information systems and associated
698 controls.
699 f. The documentation and reporting regarding cybersecurity
700 events and related incident response activities.
701 g. The evaluation and revision of the incident response
702 plan, as appropriate, following a cybersecurity event.
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703 h. The process by which notice must be given as required
704 under subsection (4) and s. 501.171(3) and (4).
705 (d)1. This section does not apply to a licensee that has
706 fewer than:
707 a. Twenty individuals on its workforce, including
708 employees and independent contractors; or
709 b. Five hundred customers during a calendar year.
710 2. A licensee that no longer qualifies for exemption under
711 subparagraph 1. has 180 calendar days to comply with this
712 section after the date of the disqualification.
713 (e) Each licensee shall maintain a copy of the information
714 security program for a minimum of 5 years and shall make it
715 available to the office upon request or as part of an
716 examination.
717 (3) NOTICE TO OFFICE OF SECURITY BREACH.—
718 (a) Each licensee shall provide notice to the office of
719 any breach of security affecting 500 or more individuals in this
720 state at a time and in the manner prescribed by commission rule.
721 (4) CONSTRUCTION.—This section may not be construed to
722 relieve a covered entity from complying with s. 501.171. To the
723 extent a licensee is a covered entity, as defined in s.
724 501.171(1), the licensee remains subject to s. 501.171.
725 (5) RULES.—The commission must adopt rules to administer
726 this section, including rules that allow a licensee that is in
727 full compliance with the Federal Trade Commission's Standards
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728 for Safeguarding Customer Information, 16 C.F.R. part 314, to be
729 deemed in compliance with subsection (2).
730 Section 8. Subsection (10) of section 560.309, Florida
731 Statutes, is amended to read:
732 (10) If a check is returned to a licensee from a payor
733 financial institution due to lack of funds, a closed account, or
734 a stop-payment order, the licensee may seek collection pursuant
735 to s. 68.065. In seeking collection, the licensee must comply
736 with the prohibitions against harassment or abuse, false or
737 misleading representations, and unfair practices in the Consumer
738 Collection Practices Act under part VI of chapter 559, including
739 s. 559.77. A licensee must also comply with the Fair Debt
740 Collections Practices Act, 15 U.S.C. ss. 1692d, 1692e, and 1692f
741 if the licensee is utilizing a third-party debt collector or any
742 name other than its own to collect such debts. A violation of
743 this subsection is a deceptive and unfair trade practice and
744 constitutes a violation of the Deceptive and Unfair Trade
745 Practices Act under part II of chapter 501. In addition, a
746 licensee must comply with the applicable provisions of the
747 Consumer Collection Practices Act under part VI of chapter 559,
748 including s. 559.77.
749 Section 9. Subsection (3) of section 560.405, Florida
750 Statutes, is amended to read:
751 (3) Notwithstanding subsection (1), in lieu of presentment,
752 a deferred presentment provider may allow the check to be
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753 redeemed at any time upon payment of the outstanding transaction
754 balance and earned fees. Redemption in cash or through a debit
755 card transaction shall be treated the same. However, payment may
756 not be made in the form of a personal check or through a credit
757 card transaction. Upon redemption, the deferred presentment
758 provider must return the drawer’s check and provide a signed,
759 dated receipt showing that the drawer’s check has been redeemed.
760 Section 10. Subsection (2) of section 560.406, Florida
761 Statutes, is amended to read:
762 (2) If a check is returned to a deferred presentment
763 provider from a payor financial institution due to insufficient
764 funds, a closed account, or a stop-payment order, the deferred
765 presentment provider may pursue all legally available civil
766 remedies to collect the check, including, but not limited to,
767 the imposition of all charges imposed on the deferred
768 presentment provider by the financial institution. In its
769 collection practices, a deferred presentment provider must
770 comply with the prohibitions against harassment or abuse, false
771 or misleading representations, and unfair practices that are
772 contained in the Consumer Collection Practices Act under part VI
773 of chapter 559, including s. 559.77. A deferred presentment
774 provider must also comply with the Fair Debt Collections
775 Practices Act, 15 U.S.C. ss. 1692d, 1692e, and 1692f if the
776 deferred present provider is utilizing a third-party debt
777 collector or any name other than its own to collect such debts.
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Bill No. HB 381 (2026)
Amendment No.
778 A violation of this act is a deceptive and unfair trade practice
779 and constitutes a violation of the Deceptive and Unfair Trade
780 Practices Act under part II of chapter 501. In addition, a
781 deferred presentment provider must comply with the applicable
782 provisions of the Consumer Collection Practices Act under part
783 VI of chapter 559, including s. 559.77.
784 Section 11. Section 655.0171, Florida Statutes, is created
785 to read:
786 655.0171 Requirements for customer data security and for
787 notices of security breaches.—
788 (1) DEFINITIONS.—As used in this section, the term:
789 (a) "Breach of security" or "breach" means unauthorized
790 access of data in electronic form containing personal
791 information. Good faith access of personal information by an
792 employee or agent of a financial institution does not constitute
793 a breach of security, provided that the information is not used
794 for a purpose unrelated to the business or subject to further
795 unauthorized use. As used in this paragraph, the term "data in
796 electronic form" means any data stored electronically or
797 digitally on any computer system or other database and includes
798 recordable tapes and other mass storage devices.
799 (b) "Department" means the Department of Legal Affairs.
800 (c)1. "Personal information" means:
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COMMITTEE/SUBCOMMITTEE AMENDMENT
Bill No. HB 381 (2026)
Amendment No.
801 a. An individual's first name, or first initial, and last
802 name, in combination with any of the following data elements for
803 that individual:
804 (I) A social security number;
805 (II) A driver license or identification card number,
806 passport number, military identification number, or other
807 similar number issued on a government document used to verify
808 identity;
809 (III) A financial account number or credit or debit card
810 number, in combination with any required security code, access
811 code, or password that is necessary to permit access to the
812 individual's financial account;
813 (IV) The individual's biometric data as defined in s.
814 501.702; or
815 (V) Any information regarding the individual's
816 geolocation; or
817 b. A username or e-mail address, in combination with a
818 password or security question and answer that would permit
819 access to an online account.
820 2. The term does not include information about an
821 individual which has been made publicly available by a federal,
822 state, or local governmental entity. The term also does not
823 include information that is encrypted, secured, or modified by
824 any other method or technology that removes elements that
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Bill No. HB 381 (2026)
Amendment No.
825 personally identify an individual or that otherwise renders the
826 information unusable.
827 (2) REQUIREMENTS FOR DATA SECURITY.—Each financial
828 institution shall take reasonable measures to protect and secure
829 data that are in electronic form and that contain personal
830 information.
831 (3) NOTICE TO OFFICE AND DEPARTMENT OF SECURITY BREACH.—
832 (a)1. Each financial institution shall provide notice to
833 the office of any breach of security affecting 500 or more
834 individuals in this state. Such notice must be provided to the
835 office as expeditiously as practicable, but no later than 30
836 days after the determination of the breach or the determination
837 of a reason to believe that a breach has occurred.
838 2. The written notice to the office must include the items
839 required under s. 501.171(3)(b).
840 3. A financial institution must provide the following
841 information to the office upon its request:
842 a. A police report, incident report, or computer forensics
843 report.
844 b. A copy of the policies in place regarding breaches.
845 4. Steps that have been taken to rectify the breach.
846 5. A financial institution may provide the office with
847 supplemental information regarding a breach at any time.
848 (b) Each financial institution shall provide notice to the
849 department of any breach of security affecting 500 or more
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COMMITTEE/SUBCOMMITTEE AMENDMENT
Bill No. HB 381 (2026)
Amendment No.
850 individuals in this state. Such notice must be provided to the
851 department in accordance with s. 501.171.
852 (4) NOTICE TO INDIVIDUALS OF SECURITY BREACH.—Each
853 financial institution shall give notice to each individual in
854 this state whose personal information was, or the financial
855 institution reasonably believes to have been, accessed as a
856 result of the breach in accordance with s. 501.171(4). The
857 notice must be provided no later than 30 days after the
858 determination of the breach or the determination of a reason to
859 believe that a breach has occurred. A financial institution may
860 receive 15 additional days to provide notice to individuals of a
861 security breach as required in this subsection if good cause for
862 delay is provided in writing to the office within 30 days after
863 determination of the breach or determination of the reason to
864 believe that a breach has occurred.
865 (5) NOTICE TO CREDIT REPORTING AGENCIES.—If a financial
866 institution discovers circumstances requiring notice pursuant to
867 this section of more than 1,000 individuals at a single time,
868 the financial institution shall also notify, without
869 unreasonable delay, all consumer reporting agencies that compile
870 and maintain files on consumers on a nationwide basis, as
871 defined in the Fair Credit Reporting Act, 15 U.S.C. s. 1681a(p),
872 of the timing, distribution, and content of the notices.
873 Section 12. Paragraph (d) of subsection (1) of section
874 655.045, Florida Statutes, is amended to read:
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Bill No. HB 381 (2026)
Amendment No.
875 655.045 Examinations, reports, and internal audits;
876 penalty.—
877 (1) The office shall conduct an examination of the
878 condition of each state financial institution at least every 18
879 months. The office may conduct more frequent examinations based
880 upon the risk profile of the financial institution, prior
881 examination results, or significant changes in the institution
882 or its operations. The office may use continuous, phase, or
883 other flexible scheduling examination methods for very large or
884 complex state financial institutions and financial institutions
885 owned or controlled by a multi-financial institution holding
886 company. The office shall consider examination guidelines from
887 federal regulatory agencies in order to facilitate, coordinate,
888 and standardize examination processes.
889 (d) As used in this section, the term "costs" means the
890 salary and travel expenses directly attributable to the field
891 staff examining the state financial institution, subsidiary, or
892 service corporation, and the travel expenses of any supervisory
893 staff required as a result of examination findings. The mailing
894 of any costs incurred under this subsection must be postmarked
895 within 45 30 days after the date of receipt of a notice stating
896 that such costs are due. The office may levy a late payment of
897 up to $100 per day or part thereof that a payment is overdue,
898 unless excused for good cause. However, for intentional late
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Bill No. HB 381 (2026)
Amendment No.
899 payment of costs, the office may levy an administrative fine of
900 up to $1,000 per day for each day the payment is overdue.
901 Section 13. Subsection (2) of section 657.005, Florida
902 Statutes, is amended to read:
903 657.005 Application for authority to organize a credit
904 union; investigation.—
905 (2) Any five or more individuals, a majority of whom are
906 residents of this state and all of whom who represent a limited
907 field of membership, may apply to the office for permission to
908 organize a credit union. The fact that individuals within the
909 proposed limited field of membership have credit union services
910 available to them through another limited field of membership
911 shall not preclude the granting of a certificate of
912 authorization to engage in the business of a credit union.
913 Section 14. Subsection (1) of section 657.024, Florida
914 Statutes, is amended to read:
915 657.024 Membership meetings.—
916 (1) The members shall receive timely notice of the annual
917 meeting and any special meetings of the members, which shall be
918 held at the time, place, and in the manner provided in the
919 bylaws. The annual meeting and any special meetings of the
920 members may be held virtually without an in-person quorum, and
921 virtual attendance may satisfy quorum requirements, subject to
922 the bylaws.
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COMMITTEE/SUBCOMMITTEE AMENDMENT
Bill No. HB 381 (2026)
Amendment No.
923 Section 15. Subsections (6) and (7) of section 657.042,
924 Florida Statutes, are renumbered as subsections (5) and (6), and
925 paragraph (b) of subsection (3) and present subsection (5) of
926 that section are amended to read:
927 657.042 Investment powers and limitations.—A credit union
928 may invest its funds subject to the following definitions,
929 restrictions, and limitations:
930 (3) INVESTMENT SUBJECT TO LIMITATION OF TWO PERCENT OF
931 CAPITAL OF THE CREDIT UNION.—
932 (b) Commercial paper and bonds of any corporation within
933 the United States which have a fixed maturity, as provided in
934 subsection (6) (7), except that the total investment in all such
935 paper and bonds may not exceed 10 percent of the capital of the
936 credit union.
937 (5) INVESTMENTS IN REAL ESTATE AND EQUIPMENT FOR THE
938 CREDIT UNION.—
939 (a) Up to 5 percent of the capital of the credit union may
940 be invested in real estate and improvements thereon, furniture,
941 fixtures, and equipment utilized or to be utilized by the credit
942 union for the transaction of business.
943 (b) The limitations provided by this subsection may be
944 exceeded with the prior written approval of the office. The
945 office shall grant such approval if it is satisfied that:
946 1. The proposed investment is necessary.
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Bill No. HB 381 (2026)
Amendment No.
947 2. The amount thereof is commensurate with the size and
948 needs of the credit union.
949 3. The investment will be beneficial to the members.
950 4. A reasonable plan is developed to reduce the investment
951 to statutory limits.
952 Section 16. Paragraphs (b) and (c) of subsection (4) of
953 section 658.21, Florida Statutes, are amended to read:
954 658.21 Approval of application; findings required.—The
955 office shall approve the application if it finds that:
956 (4)
957 (b) At least two of the proposed directors who are not
958 also proposed officers must have had within the 10 years before
959 the date of the application at least 1 year of direct experience
960 as an executive officer, regulator, or director of a financial
961 institution as specified in the application within the 5 years
962 before the date of the application. However, if the applicant
963 demonstrates that at least one of the proposed directors has
964 very substantial experience as an executive officer, director,
965 or regulator of a financial institution more than 5 years before
966 the date of the application, the office may modify the
967 requirement and allow the applicant to have only one director
968 who has direct financial institution experience within the last
969 5 years.
970 (c) The proposed president or chief executive officer must
971 have had at least 1 year of direct experience as an executive
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Bill No. HB 381 (2026)
Amendment No.
972 officer, director, or regulator of a financial institution
973 within the last 10 5 years. In making a decision, the office
974 must also consider may waive this requirement after considering:
975 1. The adequacy of the overall experience and expertise of
976 the proposed president or chief executive officer;
977 2. The likelihood of successful operation of the proposed
978 state bank or trust company pursuant to subsection (1);
979 3. The adequacy of the proposed capitalization under
980 subsection (2);
981 4. The proposed capital structure under subsection (3);
982 5. The experience of the other proposed officers and
983 directors; and
984 6. Any other relevant data or information.
985 Section 17. Subsection (2) of section 658.33, Florida
986 Statutes, is amended to read:
987 658.33 Directors, number, qualifications; officers.—
988 (2) Not less than a majority of the directors must, during
989 their whole term of service, be citizens of the United States,
990 and at least a majority of the directors must have resided in
991 this state for at least 1 year preceding their election and must
992 be residents therein during their continuance in office. In the
993 case of a bank or trust company with total assets of less than
994 $150 million, at least one, and in the case of a bank or trust
995 company with total assets of $150 million or more, two of the
996 directors who are not also officers of the bank or trust company
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Bill No. HB 381 (2026)
Amendment No.
997 must have had at least 1 year of direct experience as an
998 executive officer, regulator, or director of a financial
999 institution within the last 10 5 years.
1000 Section 18. Subsection (4) of section 662.141, Florida
1001 Statutes, is amended to read:
1002 662.141 Examination, investigations, and fees.—The office
1003 may conduct an examination or investigation of a licensed family
1004 trust company at any time it deems necessary to determine
1005 whether the licensed family trust company or licensed family
1006 trust company-affiliated party thereof has violated or is about
1007 to violate any provision of this chapter, any applicable
1008 provision of the financial institutions codes, or any rule
1009 adopted by the commission pursuant to this chapter or the codes.
1010 The office may conduct an examination or investigation of a
1011 family trust company or foreign licensed family trust company at
1012 any time it deems necessary to determine whether the family
1013 trust company or foreign licensed family trust company has
1014 engaged in any act prohibited under s. 662.131 or s. 662.134
1015 and, if a family trust company or a foreign licensed family
1016 trust company has engaged in such act, to determine whether any
1017 applicable provision of the financial institutions codes has
1018 been violated.
1019 (4) For each examination of the books and records of a
1020 family trust company, licensed family trust company, or foreign
1021 licensed family trust company as authorized under this chapter,
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Bill No. HB 381 (2026)
Amendment No.
1022 the trust company shall pay a fee for the costs of the
1023 examination by the office. As used in this section, the term
1024 "costs" means the salary and travel expenses of field staff
1025 which are directly attributable to the examination of the trust
1026 company and the travel expenses of any supervisory and support
1027 staff required as a result of examination findings. The mailing
1028 of payment for costs incurred must be postmarked within 45 30
1029 days after the receipt of a notice stating that the costs are
1030 due. The office may levy a late payment of up to $100 per day or
1031 part thereof that a payment is overdue unless waived for good
1032 cause. However, if the late payment of costs is intentional, the
1033 office may levy an administrative fine of up to $1,000 per day
1034 for each day the payment is overdue.
1035 Section 19. Subsection (21) of section 517.12, Florida
1036 Statutes, is amended to read:
1037 517.12 Registration of dealers, associated persons,
1038 intermediaries, and investment advisers.—
1039 (21) The registration requirements of this section do not
1040 apply to any general lines insurance agent or life insurance
1041 agent licensed under chapter 626, with regard to the sale of a
1042 security as defined in s. 517.021(34)(g) s. 517.021(33)(g), if
1043 the individual is directly authorized by the issuer to offer or
1044 sell the security on behalf of the issuer and the issuer is a
1045 federally chartered savings bank subject to regulation by the
1046 Federal Deposit Insurance Corporation. Actions under this
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COMMITTEE/SUBCOMMITTEE AMENDMENT
Bill No. HB 381 (2026)
Amendment No.
1047 subsection constitute activity under the insurance agent's
1048 license for purposes of ss. 626.611 and 626.621.
1049 Section 20. This act shall take effect July 1, 2026.
1050
1051
1052 -----------------------------------------------------
1053 T I T L E A M E N D M E N T
1054 Remove everything before the enacting clause and insert:
1055 An act relating to the Office of Financial Regulation;
1056 creating s. 494.00123, F.S.; providing definitions;
1057 requiring loan originators, mortgage brokers, and
1058 mortgage lenders to develop, implement, and maintain
1059 comprehensive written information security programs
1060 for the protection of information systems and
1061 nonpublic personal information; providing requirements
1062 for such programs; requiring loan originators,
1063 mortgage brokers, and mortgage lenders to establish
1064 written incident response plans for specified
1065 purposes; providing requirements for such plans;
1066 providing applicability; providing compliance
1067 requirements under specified circumstances; requiring
1068 loan originators, mortgage brokers, and mortgage
1069 lenders to maintain copies of information security
1070 programs for a specified timeframe and to make them
1071 available to the Office of Financial Regulation under
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COMMITTEE/SUBCOMMITTEE AMENDMENT
Bill No. HB 381 (2026)
Amendment No.
1072 certain circumstances; providing requirements for
1073 notices of security breaches; providing construction;
1074 providing rulemaking authority; amending s. 494.00255,
1075 F.S.; providing additional acts that constitute a
1076 ground for specified disciplinary actions against loan
1077 originators and mortgage brokers; amending s. 517.021,
1078 F.S.; revising the definition of the term "investment
1079 adviser” and defining terms; amending s. 517.061,
1080 F.S.; defining terms; amending s. 560.114, F.S.;
1081 specifying the entities that are subject to certain
1082 disciplinary actions and penalties; revising the list
1083 of actions by money services businesses which
1084 constitute grounds for certain disciplinary actions
1085 and penalties; requiring, rather than authorizing, the
1086 office to suspend licenses of money services
1087 businesses under certain circumstances; requiring an
1088 emergency order to state the grounds on which the
1089 order is based, provide notice that the order takes
1090 effect immediately, require the person to immediately
1091 cease and desist from the conduct or violation that is
1092 the subject of the order, be delivered by personal
1093 delivery or certified mail, provide the licensee with
1094 notice that they may seek judicial review; providing
1095 that an emergency order is effective when the licensee
1096 against whom the order is directed has actual or
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COMMITTEE/SUBCOMMITTEE AMENDMENT
Bill No. HB 381 (2026)
Amendment No.
1097 constructive knowledge; requiring the office to
1098 institute proceedings within 20 days after issuance of
1099 an emergency suspension order; providing that a
1100 licensee subject to an emergency suspension may seek
1101 judicial review; creating s. 520.135, F.S.; specifying
1102 that the rights and obligation of parties with respect
1103 to a surrendered or repossessed motor vehicle are
1104 exclusively governed by certain provisions; creating
1105 s. 560.1311, F.S.; providing definitions; requiring
1106 money services businesses to develop, implement, and
1107 maintain comprehensive written information security
1108 programs for the protection of information systems and
1109 nonpublic personal information; providing requirements
1110 for such programs; requiring money services businesses
1111 to establish written incident response plans for
1112 specified purposes; providing requirements for such
1113 plans; providing applicability; providing compliance
1114 requirements under specified circumstances; requiring
1115 money services businesses to maintain copies of
1116 information security programs for a specified
1117 timeframe and to make them available to the office
1118 under certain circumstances; providing requirements
1119 for notices of security breaches; providing
1120 construction; providing rulemaking authority; amending
1121 s. 560.309, F.S.; providing that licensees must comply
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COMMITTEE/SUBCOMMITTEE AMENDMENT
Bill No. HB 381 (2026)
Amendment No.
1122 with the Fair Debt Collections Practices Act only if
1123 the licensee meets certain criteria; amending s.
1124 560.405, F.S.; providing that a debit card transaction
1125 shall be treated the same as cash transactions and
1126 prohibiting redemption through a credit card
1127 transaction; amending s. 560.406, F.S.; providing that
1128 licensees must comply with the Fair Debt Collections
1129 Practices Act only if the licensee meets certain
1130 criteria; creating s. 655.0171, F.S.; providing
1131 definitions; requiring financial institutions to take
1132 measures to protect and secure certain data that
1133 contain personal information; providing requirements
1134 for notices of security breaches to the office, the
1135 Department of Legal Affairs, certain individuals, and
1136 certain credit reporting agencies; amending s.
1137 655.045, F.S.; revising the timeline for the mailing
1138 of payment for salary and travel expenses of certain
1139 field staff; amending s. 657.005, F.S.; revising
1140 requirements for permission to organize credit unions;
1141 amending s. 657.024, F.S.; authorizing meetings of
1142 credit union members to be held virtually without an
1143 in-person quorum and authorizing virtual attendance to
1144 satisfy quorum requirements under certain
1145 circumstances; amending s. 657.042, F.S.; removing
1146 provisions that impose limitations on investments in
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Bill No. HB 381 (2026)
Amendment No.
1147 real estate and equipment for credit unions; amending
1148 s. 658.21, F.S.; revising requirements and factors for
1149 approving applications for organizing banks and trust
1150 companies; amending s. 658.33, F.S.; revising
1151 requirements for directors of certain banks and trust
1152 companies; amending s. 662.141, F.S.; revising the
1153 timeline for the mailing of payment for the salary and
1154 travel expenses of certain field staff; amending s.
1155 517.12, F.S.; conforming a cross-reference; providing
1156 an effective date.
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HB 427
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 427 COMPANION BILL: SB 266 (Burton)
TITLE: Public Adjuster Contracts LINKED BILLS: None
SPONSOR(S): Melo RELATED BILLS: None
Committee References
Insurance & Banking Civil Justice & Claims Commerce
SUMMARY
Effect of the Bill:
The bill allows vulnerable adults and people who lack capacity to consent (as well as their legal representatives) to
cancel public adjuster contracts without penalty at any time. Additionally, the bill gives the Department of Financial
Services the authority to take disciplinary action against public adjusters who solicit or otherwise take advantage of
vulnerable adults.
Fiscal or Economic Impact:
None
JUMP TO SUMMARY ANALYSIS RELEVANT INFORMATION BILL HISTORY
ANALYSIS
EFFECT OF THE BILL:
The bill allows insureds1 who are vulnerable adults or who lack capacity to consent, as well as their legal
representatives, to cancel a contract for public adjuster services at any time without any penalties. (Sections 1 and
3).
The bill also grants the Department of Financial Services (DFS) the authority to deny, suspend, or revoke the
license of a public adjuster or public adjuster apprentice, as well as impose fines of up to $5,000 per act, for
soliciting vulnerable adults. This change clarifies current law, which prohibits public adjusters soliciting or
otherwise taking advantage of a person who is “vulnerable.”2 (Section 2).
The bill provides an effective date of July 1, 2026. (Section 4).
RELEVANT INFORMATION
SUBJECT OVERVIEW:
Public Adjusters
Under Florida law, a public adjuster is a person who is paid (whether by money, commission, or any other thing of
value) to help an insured with their insurance claim. This includes preparing, completing or filing a claim for an
insured. It also includes assisting an insured in negotiating or settling a claim for loss or damage covered by an
insurance policy. In addition, someone is considered a public adjuster if they advertise their availability to perform
these services.3 Florida law expressly excludes from the definition of “public adjuster” persons who only
1 For purposes of s. 626.854, F.S., the term “insured” includes “only the policyholder and any beneficiaries named or similarly
identified in the policy.”
2 S. 626.8698, F.S.
3 S. 626.854, F.S.
STORAGE NAME: h0427.IBS
DATE: 1/16/2026
1
HB 427
photograph or inventory damaged property as long as they do not engage in claim negotiation or settlement
activities.4
The definition does not apply to certain health care providers, licensed health insurance agents assisting with
health claims, or persons who file health claims without compensation. The public adjuster may not provide legal
advice or assist with negotiating or settling claims involving bodily injury, death, or noneconomic damages.5
A license issued by the Department of Financial Services is required to provide public adjuster services.6
Canceling a Public Adjuster Contract
An insured or claimant may cancel a public adjuster contract within 10 days of the contract being executed without
any penalty.7 If the contract was executed based on events related to a declared state of emergency by the
Governor, the insured may cancel the contract within 30 days after the date of the loss or within 10 days after the
contract was executed – whichever is longer.8
Public adjuster contracts are required to include a disclosure informing insureds of their right to cancel the
contract, the timeframe for cancelling without a penalty, and information about how to provide the notice of
cancellation to the public adjuster.9
Solicitation and Ethical Guidelines
Public adjusters may only solicit business Monday through Saturday between 8 a.m. and 8 p.m.10 Additionally,
current law prohibits loans or advances to clients or prospective clients, or gifts above $25 as inducements.11
Validity of Contracts when one Party Lacks the Capacity to Consent
When a person lacks the capacity to consent, contracts are either void or voidable depending on the specific
person’s circumstances. Absent a prior adjudication of incompetency, a contract entered into by a person who
could not understand in a reasonable manner the nature and consequences of the transaction is generally
voidable.12 This means that the contract remains in effect until a court determines that incapacity existed and the
party would like to cancel the contract.13 To determine lack of capacity under these circumstances, courts can
consider several factors, including: 14
medical and psychiatric history,
medical and psychiatric diagnoses and opinions,
behavior at the time of the transaction, and
the circumstances surrounding the execution of the contract.
Rescission (which means cancellation of the contract) is a remedy in these cases, and if the other party knew or
should have known about the incapacity restitution may also be available as a remedy.15
If a court had adjudicated a party incompetent prior to the execution of the contract, the contract is automatically
void. This is the case even if the other party had no knowledge about the prior adjudication.16
4 Id.
5 Id.
6 S. 626.112, F.S. and s. 626.854, F.S.
7 S. 626.854(7), F.S.
8 Id.
9 Id.
10 S. 626.854(5), F.S.
11 S. 626.854(10), F.S.
12 Robert W. Lee, Mental Illness and the Right to Contract, Florida Bar Journal, 48, Dec. 1998.
13 Id.
14 Id.
15 Id.
16 Id.
JUMP TO SUMMARY ANALYSIS RELEVANT INFORMATION BILL HISTORY
2
HB 427
Department of Financial Services
The Department of Financial Services (DFS) regulates public adjusters and has explicit authority under the Florida
Insurance Code to license public adjusters and take disciplinary action in the event of misconduct. DFS may deny,
suspend, or revoke a public adjuster or public adjuster apprentice’s license and impose administrative fines of up
to $5,000 per act for violations such as: 17
violating any provision of chapter 626, F.S.;
receiving payment or anything of value as a result of an unfair or deceptive practice;
receiving or accepting any kickbacks or other thing of value, entering into a split-fee agreements with
individuals who are not public adjusters, or being paid for services that have not been performed; or
violating any ethical rule adopted by the department.
DFS may also take disciplinary action against a public adjuster’s license for soliciting or otherwise taking
advantage of a person who is vulnerable, emotional, or otherwise upset as the result of trauma, accident, or a
similar event. However, the term “vulnerable” is not defined in the Florida Insurance Code.18
DFS may also take administrative action and impose fines against persons providing public adjuster services
without a license.19
Vulnerable adults
The Adult Protective Services program is located within the Department of Children and Families (DCF), and is
responsible for investigating allegations of abuse, neglect or exploitation, as provided in the Adult Protective
Services Act (Act).20
The Act defines a vulnerable adult as “a person 18 years of age or older whose ability to perform the normal
activities of daily living or to provide for his or her own care or protection is impaired due to a mental, emotional,
sensory, long-term physical, or developmental disability or dysfunction, or brain damage, or the infirmities of
aging.”21
The Act also defines the term “lacks capacity to consent” as having “a mental impairment that causes a vulnerable
adult to lack sufficient understanding or capacity to make or communicate responsible decisions concerning
person or property, including whether or not to accept protective services.”22
Any person who knows, or has reasonable cause to suspect, that a vulnerable adult is being abused, neglected, or
exploited, is required to report the situation to the central abuse hotline.23 DCF must start a protective
investigation within 24 hours of a person making the report.24 If a caregiver refuses to allow DCF to begin a
protective investigation or interferes with the investigation, the department can contact the appropriate law
enforcement agency for assistance.25 If DCF has reason to believe that the abuse, neglect, or exploitation is
perpetrated by a second party, the appropriate law enforcement agency and state attorney must be notified.26 The
department must submit a preliminary written report to the law enforcement agencies within 5 working days after
the oral report and complete the investigation within 60 days.27
17 S. 626.8698, F.S.
18 S. 626.8698(5), F.S.
19 S. 626.854(21), F.S.
20 See s. 415.101, F.S. (“Sections 415.101-415.113 may be cited as the Adult Protective Services Act.”)
21 S. 415.102(28), F.S.
22 S. 415.102(15), F.S.
23 S. 415.1034, F.S.
24 S. 415.103, F.S.
25 S. 415.104, F.S.
26 Id.
27 Id.
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HB 427
It is a second-degree misdemeanor28 for a person to knowingly and willfully fail to report a case of known or
suspected exploitation of a vulnerable adult or prevent another person from doing so.29
BILL HISTORY
STAFF
DIRECTOR/ ANALYSIS
COMMITTEE REFERENCE ACTION DATE POLICY CHIEF PREPARED BY
Insurance & Banking Brackett Miguez
Subcommittee
Civil Justice & Claims
Subcommittee
Commerce Committee
28 A second degree misdemeanor is punishable by not more than 60 days in county jail and a fine not exceeding $500. S.
775.082, F.S. and s. 775.083, F.S.
29 S. 415.111(1), F.S.
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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 427 2026
1 A bill to be entitled
2 An act relating to public adjuster contracts; amending
3 s. 626.854, F.S.; authorizing certain persons to
4 rescind a contract for public adjuster services;
5 amending s. 626.8698, F.S.; clarifying the acts that
6 may subject a public adjuster or public adjuster
7 apprentice to discipline; amending s. 626.8796, F.S.;
8 authorizing certain persons to rescind a contract for
9 public adjuster services; providing an effective date.
10
11 Be It Enacted by the Legislature of the State of Florida:
12
13 Section 1. Subsection (7) of section 626.854, Florida
14 Statutes, is amended to read:
15 626.854 "Public adjuster" defined; prohibitions.—The
16 Legislature finds that it is necessary for the protection of the
17 public to regulate public insurance adjusters and to prevent the
18 unauthorized practice of law.
19 (7)(a) An insured or a claimant may cancel a public
20 adjuster's contract to adjust a claim without penalty or
21 obligation within 10 days after the date on which the contract
22 is executed. If the contract was entered into based on events
23 that are the subject of a declaration of a state of emergency by
24 the Governor, an insured or a claimant may cancel the public
25 adjuster's contract to adjust a claim without penalty or
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HB 427 2026
26 obligation within 30 days after the date of loss or 10 days
27 after the date on which the contract is executed, whichever is
28 longer. The public adjuster's contract must contain the
29 following language in minimum 18-point bold type immediately
30 before the space reserved in the contract for the signature of
31 the insured or claimant:
32
33 "You, the insured, may cancel this contract for any
34 reason without penalty or obligation to you within 10
35 days after the date of this contract. If this contract
36 was entered into based on events that are the subject
37 of a declaration of a state of emergency by the
38 Governor, you may cancel this contract for any reason
39 without penalty or obligation to you within 30 days
40 after the date of loss or 10 days after the date on
41 which the contract is executed, whichever is longer.
42 You may also cancel the contract without penalty or
43 obligation to you if I, as your public adjuster, fail
44 to provide you and your insurer a copy of a written
45 estimate within 60 days of the execution of the
46 contract, unless the failure to provide the estimate
47 within 60 days is caused by factors beyond my control,
48 in accordance with s. 627.70131(5)(a)2., Florida
49 Statutes. The 60-day cancellation period for failure
50 to provide a written estimate shall cease on the date
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51 I have provided you with the written estimate."
52
53 The notice of cancellation must shall be provided to ...(name of
54 public adjuster)..., submitted in writing and sent by certified
55 mail, return receipt requested, or other form of mailing that
56 provides proof thereof, at the address specified in the
57 contract.
58 (b) Notwithstanding any other provision of this chapter,
59 an insured who is a vulnerable adult or who lacks capacity to
60 consent, as those terms are defined in s. 415.102, or the legal
61 representative of such insured persons, may rescind a contract
62 for public adjuster services to adjust a claim at any time
63 without penalty or further obligation.
64 Section 2. Section 626.8698, Florida Statutes, is amended
65 to read:
66 626.8698 Disciplinary guidelines for public adjusters and
67 public adjuster apprentices.—The department may deny, suspend,
68 or revoke the license of a public adjuster or public adjuster
69 apprentice, and administer a fine not to exceed $5,000 per act,
70 for any of the following acts:
71 (1) Violating any provision of this chapter or a rule or
72 order of the department.;
73 (2) Receiving payment or anything of value as a result of
74 an unfair or deceptive practice.;
75 (3) Receiving or accepting any fee, kickback, or other
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76 thing of value pursuant to any agreement or understanding, oral
77 or otherwise; entering into a split-fee arrangement with another
78 person who is not a public adjuster; or being otherwise paid or
79 accepting payment for services that have not been performed.;
80 (4) Violating s. 316.066 or s. 817.234.;
81 (5) Soliciting or otherwise taking advantage of a person
82 who is a vulnerable adult, as defined is s. 415.102, or who is
83 emotional, or otherwise upset as the result of a trauma,
84 accident, or other similar occurrence.; or
85 (6) Violating any ethical rule of the department.
86 Section 3. Subsection (4) of section 626.8796, Florida
87 Statutes, is amended to read:
88 626.8796 Public adjuster contracts; disclosure statement;
89 fraud statement.—
90 (4)(a) The insured may rescind the contract for public
91 adjuster services if the public adjuster has not submitted a
92 written estimate to the insurer within 60 days after executing
93 the contract, unless the failure to provide the written estimate
94 within 60 days is caused by factors beyond the public adjuster's
95 control.
96 (b) Notwithstanding any other provision of this chapter,
97 an insured who is a vulnerable adult or who lacks capacity to
98 consent, as those terms are defined in s. 415.102, or the legal
99 representative of such insured persons, may rescind a contract
100 for public adjuster services at any time without penalty or
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101 further obligation.
102 Section 4. This act shall take effect July 1, 2026.
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HB 767
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 767 COMPANION BILL: SB 832 (Avila)
TITLE: Residential Property Insurance LINKED BILLS: None
SPONSOR(S): Benarroch RELATED BILLS: None
Committee References
Insurance & Banking State Administration Budget Commerce
SUMMARY
Effect of the Bill:
The bill requires property insurers seeking a rate change to prepare a rate transparency report with information in
plain language that helps consumers have a better understanding of insurance. The report must be included with
any offer of coverage and upon policy renewal. It must include a graphic breakdown of the factors affecting the
insurance rate, including the cost of reinsurance, the cost of claims, and profits.
The bill requires the Office of Insurance Regulation (OIR) to create a resource center on its website to help
consumers understand insurance. It must include, among other things, information on the dynamics of the
insurance market, the claims process, consumer protection, disaster preparedness, and on the insurance coverage
choices available to consumers.
The bill provides that the statewide average requested rate change and final approved statewide average rate
change in a filing, as well as the county rating examples submitted to OIR through the rate collection system for the
purpose of displaying rates on its website, are not a trade secret.
The bill provides that when establishing the coverage amount or adjudicating a claim for a dwelling or other
structure under a homeowners’ insurance policy, an insurer may not include the value of the land on which the
dwelling or structure is located.
Fiscal or Economic Impact:
There may be an indeterminate fiscal impact on the private sector.
JUMP TO SUMMARY ANALYSIS RELEVANT INFORMATION BILL HISTORY
ANALYSIS
EFFECT OF THE BILL:
The bill requires insurers seeking a rate change for residential property coverage after October 1, 2026, to prepare
a rate transparency report. The Office of Insurance Regulation (OIR) may accept the rate transparency report.
However, if OIR finds that the report does not provide the information in concise and plain language that aids
consumers in their understanding of insurance or finds the report to be misleading, OIR must return the report to
the property insurer for modification. (Section 1).
OIR’s acceptance of the rate transparency report that accompanies a rate filing is not considered an approval of the
request for a rate change. (Section 1).
The report must follow a standard format set by the Financial Services Commission (FSC) and must include a
graphic breakdown of the factors that affect the insurer’s rate. The report must be included with any offer of
coverage and upon policy renewal to the insured. If the report has not been accepted for use or modified in
STORAGE NAME: h0767.IBS
DATE: 1/16/2026
1
HB 767
accordance with OIR’s direction, the report must indicate that it is preliminary and subject to modification by the
insurer. The report must include the following factors, which must add up to 100 percent:
the percentage of the total rate factor associated with the cost of reinsurance;
the percentage of the total rate factor associated with the cost of claims;
the percentage of the total rate factor associated with the defense containment and costs;
the percentage of the total rate factor associated with fees and commissions;
the percentage of the rate factor associated with profit and contingency of the insurer; and
any other categories deemed necessary by OIR or the FSC. (Section 1).
A rate transparency report must also include the following information:
any major adverse findings by OIR within the previous three calendar years;
whether the insurer uses affiliated entities to perform functions of the insurer;
contact information for the Division of Consumer Services within the Department of Financial Services
(DFS);
contact information for OIR;
the address for OIR’s website with public access to rate filing information;
any changes to the total insured value from the last policy period. (Section 1).
The bill requires OIR to define the terms in the transparency report in concise and plain language to help
consumers understand insurance better. (Section 1).
The bill requires OIR to create a resource center on its website to help consumers understand insurance. It must
include:
Reports, using graphic information whenever possible, outlining information about the state of the market
and the adverse and positive trends affecting it.
Tools that aid consumers in finding insurers, including a list of all insurers in the state and their contact
information.
Tools that aid consumers in selecting coverages beneficial to them including:
o educational materials that explain the types of coverage in residential property insurance coverage;
o the difference between replacement cost reimbursement and actual cash value reimbursement;
o a glossary of common terms used in insurance policies;
o a comparison of the coverage, terms, conditions, and exclusions contained in different homeowners’
and dwelling fire forms; and
o answers to commonly asked questions about residential property insurance coverage.
Information about available mitigation credits and discounts and the My Safe Florida Home Program.
Access to the rate transparency report, annual statements, market conduct information, and other
Information related to each insurer.
Information on the Citizens Property Insurance Corporation take-out process1, the clearinghouse2, and
general information as reported by OIR.
Information on the claims process, including:
o clear, step-by-step guidance on how to file a claim, what to expect during the claim process, and
timelines for resolution of a claim;
o the obligations of insurers and insureds related to claim reporting, claim handling, communications
regarding claims, claim investigations, claim decisions, and claim payments; and
o for each insurer with active policies in the state, the means by which to report a claim, including
telephone numbers, e-mail addresses, or website addresses the insured can use to report a claim.
1 The take-out process allows authorized private market property insurers to select Citizens’ policies for the purpose of
offering coverage. See s. 627.351, F.S.
2 The clearinghouse program is designed to confirm eligibility for coverage through Citizens. New and renewal personal lines
residential policies for Citizens are placed into the clearinghouse where participating private insurers can review and decide
to make offers of coverage before policies are placed or renewed with Citizens. See s. 627.3518, F.S.
JUMP TO SUMMARY ANALYSIS RELEVANT INFORMATION BILL HISTORY
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Information on consumer protection, including:
o the rights of insureds under Florida law related to coverage, coverage renewals, nonrenewals, and
cancellations, and mandated offers of coverage; and
o information on how to file a complaint with the Division of Consumer Services at DFS.
Information on news and updates relevant to consumers regarding the residential property insurance
market, including regulatory changes, information on insurers that enter or exit the market, and industry
trends.
Information on disaster preparedness directly related to insurance, prepared by OIR or the Division of
Emergency Management.
For any residential property rate filing: whether the insurer uses affiliated entities to perform
administrative, claims handling, or other functions of the insurer, and if so, the total percentage of direct
written premium paid to the affiliated entities by the insurer in the preceding calendar year. (Section 1).
The bill provides that the statewide average requested rate change and final approved statewide average rate
change within a filing is not a trade secret and is not subject to the public records exemption for trade secrets
provided in Florida’s public records law or in the Florida Insurance Code. Additionally, the bill provides that the
county rating examples submitted to OIR through the rate collection system for purpose of displaying rates on
OIR’s website is not a trade secret and thus not subject to the public records exemptions. (Section 1).
The bill provides that when establishing the coverage amount or adjusting a claim for a dwelling or other structure
under a homeowner’s insurance policy, an insurer may not include the value of the land on which such dwelling or
structure is located. This provision may not be construed to permit inclusion of the value of land for dwellings or
structures located on the shoreline, surrounded in whole or in part by a body of water, or on land formed or
altered by erosion or accretion. (Section 2).
The bill provides an effective date of July 1, 2026. (Section 4).
RULEMAKING:
The bill requires the Financial Services Commission to prescribe a format for the rate transparency report required
by the bill.
Lawmaking is a legislative power; however, the Legislature may delegate a portion of such power to executive
branch agencies to create rules that have the force of law. To exercise this delegated power, an agency must
have a grant of rulemaking authority and a law to implement.
FISCAL OR ECONOMIC IMPACT:
PRIVATE SECTOR:
There may be an indeterminate fiscal impact on the private sector to the extent that it requires insurers to print
the rate transparency report and issue it to consumers when coverage is offered and to insureds at the time of
renewing their policy.
RELEVANT INFORMATION
SUBJECT OVERVIEW:
CHOICES Website
JUMP TO SUMMARY ANALYSIS RELEVANT INFORMATION BILL HISTORY
3
HB 767
OIR has an existing rate comparison tool on its website entitled “CHOICES” that provides consumers with rate
information for various types of insurance. The CHOICES homeowner’s rate comparison tool provides sample
average rates for a variety of companies writing insurance in each county, in addition to rates for Citizens Property
Insurance Corporation.3
The rates provided in the CHOICES system are for illustrative purposes only. The website encourages consumers to
contact either an insurance agent or the insurance company for a premium quote based on individual
circumstances. Rates for insurers that submitted data as trade secret are not included.4
Department of Financial Services
The Department of Financial Services offers a variety of information and resources on its website to educate
consumers regarding insurance and financial topics. Information may be found on homeowner’s insurance,
automobile insurance, life insurance and annuities, health insurance, and long-term care insurance.5 The resources
include over 30 consumer guides on specific insurance topics, including:6
assignment of benefits;
automobile insurance;
filing an auto claim;
automobile mediation program;
homeowners’ insurance;
homeowner claims bill of rights;
post-disaster insurance claims;
premium discounts for hurricane loss mitigation;
residential property mediation program;
renters’ insurance;
settling a sinkhole claim;
sinkhole and catastrophic ground cover collapse;
Florida’s hurricane deductible;
what to expect after filing a homeowners’ claim;
the flood claim process; and
getting help with a property insurance claim.
These guides are available in both English and Spanish.7
Transparency in Rate Regulation
OIR is required to provide the following information with respect to any residential property rate filing on a
publicly accessible website:8
the overall rate change requested by the insurer;
the rate change approved by OIR along with all of the actuary’s assumptions and recommendations forming
the basis of OIR’s decision; and
certification by OIR’s actuary that, based on the actuary’s knowledge, his or her recommendations are
consisted with accepted actuarial principles.
3 Florida Office of Insurance Regulation, CHOICES Rate Comparison Tool, https://floir.com/consumers/choices-rate-
comparison-search (last visited Jan. 15, 2026).
4 Id.
5 Florida Department of Financial Services, About the Division, https://www.myfloridacfo.com/Division/Consumers/ (last
visited Jan. 15, 2026).
6 Florida Department of Financial Services, Consumer Guides,
https://www.myfloridacfo.com/division/consumers/understanding-insurance/guides (last visited Jan. 15, 2026).
7 Id.
8 S. 627.0621(2)(a), F.S.
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HB 767
OIR must provide on its website a means for any policyholder who may be affected by a proposed rate change to
send an e-mail to OIR regarding the proposed rate change.9 Any such e-mail must be accessible to the actuary
assigned to review the rate filing.10
Insurer Reporting of Property Insurance Data and other Information to OIR
Every insurer and insurer group doing business in Florida must file monthly reports with OIR.11 Every insurer and
insurer group doing business in Florida must file monthly reports with OIR:12
the total number of policies in force at the end of each month;
the total number of policies canceled;
the total number of policies nonrenewed;
the number of policies canceled due to hurricane risk;
the number of policies renewed due to hurricane risk;
the number of new policies written;
the total dollar value of structure exposure under policies that include wind coverage;
the number of policies that exclude wind coverage;
the number of claims opened each month;
the number of claims closed each month;
the number of claims pending each month; and
the number of claims in which either the insurer or insured invoked any form of alternative dispute
resolution, and specifying which form of alternative dispute resolution was used.
OIR must aggregate this data on a statewide basis and make it publicly available by publishing such on OIR’s
website within one month after each quarterly and annual filing.13 This information, when aggregated on a
statewide basis, is not a trade secret and is not subject to a public records exemption.14
Types of Coverage and Policy Forms
There are eight different homeowners’ policy forms.15 Policy forms represent the type of property insurance
needed for a homeowner, condo owner, or renter.16 These forms include:
HO-1 – these forms are the most basic type of home insurance, and it protects only against eleven specified
perils, such as fire, lightning, windstorms, and hail, but do not provide coverage for liability nor personal
property.
HO-2 – these policies cover all the common perils from HO-1, plus seven additional perils including falling
objects, certain sudden or accidental damage, and the weight of ice, snow, or sleet. These policies only
cover named perils, meaning that if a peril isn’t explicitly listed in the policy, it won’t be covered by the
insurer. Some of these policies provide coverage for personal property and personal liability.
HO-3 – this is the most common type of homeowners insurance, and it provides coverage for all perils
except those explicitly excluded. These policies also provide coverage for personal property and personal
liability coverage.
HO-4 – this policy form is for renters’ insurance.
HO-5 – this is known as the comprehensive form and provides the most coverage. Personal property losses
are repaid based on the replacement cost for the item, instead of the actual cash value. These policies tend
to have higher coverage limits and less restrictions on perils.
HO-6 – this policy form applies to condo owners.
9 S. 627.0621(2)(b), F.S.
10 Id.
11 S. 624.424(10)(a), F.S.
12 Id.
13 S. 624.424(10)(b), F.S.
14 Id.
15 Progressive, What are the different types of homeowners insurance policies?,
https://www.progressive.com/homeowners/faq/policy-types/ (last visited Jan. 15, 2026).
16 Id.
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HB 767
HO-7 – this policy form applies to mobile homes.
HO-8 – this policy form applies to older properties, typically built more than 40 years ago.
My Safe Florida Home Program
In 2006, the Legislature created the My Safe Florida Home Program (MSFH Program) within DFS, with the intent
that the MSFH Program provide licensed inspectors to perform inspections for owners of site-built, single-family,
residential properties and grants to eligible applicants, subject to the availability of funds.17
Grants are matched with $2 provided by the state for every $1 provided by the homeowner up to $10,000.18
Residential Property Insurance Mitigation Credits, Discounts, or other Rate Differentials
Residential property insurance rates must account for mitigation measures undertaken by policyholders to reduce
hurricane losses.19 Specifically, insurer rate filings must include actuarially reasonable discounts, credits, or other
rate differentials or appropriate reductions in deductibles to consumers who implement windstorm damage
mitigation techniques to their properties.20
Upon their filing by an insurer or rating organization, the OIR determines the discounts, credits, and other rate
differentials.21 Windstorm mitigation measures that must be evaluated for purposes of mitigation discounts include
fixtures or construction techniques that enhance roof strength, roof covering performance, roof-to-wall strength,
wall-to-floor-to-foundation strength, opening protection, and window, door, and skylight strength.22
An insurer is required to notify an applicant or policyholder of any personal lines residential property insurance
policy, at the time of the issuance of the policy and at each renewal, of the availability of each premium discount,
credit, other rate differential for properties on which fixtures or construction techniques demonstrated to reduce
the amount of loss in a windstorm can be or have been installed or implemented.23 The FSC is required to develop a
uniform mitigation verification inspection form to be used by all insurers when submitted by policyholders for the
purpose of factoring discounts for wind insurance.24
Trade Secret and Public Records Exemptions
Florida law defines “trade secret” as information that derives independent economic value from not being
generally known by other people who can obtain economic value from its disclosure or us and that is the subject of
efforts that are reasonable under the circumstances to maintain its secrecy.25
When insurers submit documents to OIR or DFS pursuant to the Florida Insurance Code, or as required by rule of
OIR, DFS, or the FSC, the insurer may file with OIR or DFS a notice of trade secret.26 If OIR or DFS receive a public
records request for a document marked as trade secret, OIR or DFS must notify the person that certified the
document as trade secret.27 The notice must inform the person that the company has 30 days following receipt of
the notice to file an action in circuit court to get a determination of whether the document contains trade secrets
and an order barring public disclosure of the document.28
17 S. 215.5586, F.S.
18 Id.
19 S. 627.062(2)(j), F.S.
20 S. 627.0629(1), F.S.
21 Id.
22 Id.
23 S. 627.711(1), F.S.
24 S. 627.711(2)(a), F.S.
25 S. 688.002(4), F.S.
26 S. 624.4213, F.S.
27 Id.
28 Id.
JUMP TO SUMMARY ANALYSIS RELEVANT INFORMATION BILL HISTORY
6
HB 767
BILL HISTORY
STAFF
DIRECTOR/ ANALYSIS
COMMITTEE REFERENCE ACTION DATE POLICY CHIEF PREPARED BY
Insurance & Banking Brackett Miguez
Subcommittee
State Administration Budget
Subcommittee
Commerce Committee
JUMP TO SUMMARY ANALYSIS RELEVANT INFORMATION BILL HISTORY
7
F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
HB 767 2026
1 A bill to be entitled
2 An act relating to residential property insurance;
3 amending s. 627.0621, F.S.; requiring that certain
4 rate filings with the Office of Insurance Regulation
5 from residential property insurers include rate
6 transparency reports; providing for the office to
7 accept such reports or to request that the insurer
8 make modifications; providing construction; providing
9 requirements for such reports; requiring insurers to
10 provide such reports to consumers; requiring that the
11 report indicate that it is preliminary and subject to
12 modification by the insurer at the direction of the
13 office under certain circumstances; requiring the
14 office to define terms used in such reports; requiring
15 the office to establish and maintain a comprehensive
16 resource center on its website; providing requirements
17 for the resource center; specifying that certain
18 information is not a trade secret and is not subject
19 to certain public records exemptions; amending s.
20 627.7011, F.S.; prohibiting an insurer from including
21 the value of certain land when establishing a
22 homeowner's policy coverage amount or adjusting
23 certain claims; providing construction; amending s.
24 627.7142, F.S.; conforming a cross-reference;
25 providing an effective date.
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26
27 Be It Enacted by the Legislature of the State of Florida:
28
29 Section 1. Present subsection (2) of section 627.0621,
30 Florida Statutes, is redesignated as subsection (3) and amended,
31 and a new subsection (2) is added to that section, to read:
32 627.0621 Transparency in rate regulation.—
33 (2) RATE TRANSPARENCY REPORT.—
34 (a) Beginning October 1, 2026, every rate filing
35 requesting a rate change for residential property coverage from
36 a property insurer must include a rate transparency report for
37 acceptance or, if necessary, modification by the insurer as
38 directed by the office. The office may accept the rate
39 transparency report for filing; or, if the office finds that the
40 report fails to provide the required information in concise,
41 plain language that aids consumers in their understanding of
42 insurance or that the report is misleading, the office must
43 return the report to the insurer with specific directions for
44 modification. The office's acceptance of the report for use or
45 direction for modification may not be deemed an approval
46 pursuant to s. 627.062. The report must be compiled in a uniform
47 format prescribed by the commission and must include a graphic
48 representation identifying a percentage breakdown of rating
49 factors anticipated by the company, book, or program affected by
50 the filing.
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51 (b) Along with an offer of coverage and upon renewal, an
52 insurer shall provide the corresponding copy of the rate
53 transparency report for the consumers' offered rate to aid
54 consumers in their understanding of insurance. If the report has
55 not been accepted for use or modified in accordance with the
56 office's direction, the report must indicate that it is
57 preliminary and subject to modification by the insurer at the
58 direction of the office.
59 (c) The rate transparency report must include the
60 following categories of the book or program at the cumulative
61 level:
62 1. The percentage of the total rate factor associated with
63 the cost of reinsurance.
64 2. The percentage of the total rate factor associated with
65 the cost of claims.
66 3. The percentage of the total rate factor associated with
67 the defense containment and costs.
68 4. The percentage of the total rate factor associated with
69 fees and commissions.
70 5. The percentage of the rate factor associated with
71 profit and contingency of the insurer.
72 6. Any other categories deemed necessary by the office or
73 commission.
74
75 An estimated percentage of the influence of each listed factor
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76 provided must equal 100 percent.
77 (d) The insurer shall provide the rate transparency report
78 to the office upon the filing of a rate change with the office.
79 (e) In addition to the categories required in paragraph
80 (c), the rate transparency report must also include the
81 following information:
82 1. All major adverse findings by the office for the
83 previous 3 calendar years.
84 2. Whether the insurer uses affiliated entities to perform
85 functions of the insurer.
86 3. Contact information, including a telephone number,
87 hours of service, and an e-mail address, for the Division of
88 Consumer Services of the department.
89 4. Contact information for the office.
90 5. Address for the website for public access to rate
91 filing and affiliate information outlined in subsection (3).
92 6. Any change in the total insured value from the last
93 policy period.
94 (f) The office shall define, in concise and plain
95 language, any term used in the rate transparency report to aid
96 consumers in their understanding of insurance.
97 (3)(2) WEBSITE FOR PUBLIC ACCESS TO RATE FILING
98 INFORMATION.—
99 (a) The office shall establish and maintain a
100 comprehensive resource center on its website which uses concise
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101 and plain language to aid consumers in their understanding of
102 insurance. The website must include substantive information on
103 the current and historical dynamics of the market, data
104 concerning the financial condition and market conduct of
105 insurance companies, and insurance options available to
106 consumers. At a minimum, the website must contain the following:
107 1. Reports, using graphic information whenever possible,
108 which outline information about the state of the market and
109 adverse and positive trends affecting it.
110 2. Tools that aid consumers in finding insurers,
111 including, but not limited to, a listing of all companies
112 actively doing business in this state which includes each
113 company's address, website, and all telephone numbers and e-mail
114 addresses to be used by insureds and applicants for coverage.
115 3. Tools that aid consumers in selecting the coverages
116 beneficial to them, including, but not limited to:
117 a. Educational materials that explain the types of
118 coverage in residential property insurance policies; the
119 difference between replacement cost reimbursement and actual
120 cash value reimbursement; a glossary of common terms used in
121 policies; and a comparison of the coverage, terms, conditions,
122 and exclusions contained in different homeowners' and dwelling
123 fire forms.
124 b. Answers to commonly asked questions about residential
125 property insurance coverage.
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126 4. Information about mitigation credits and the My Safe
127 Florida Home Program, as well as other credits and discounts
128 insurers may offer beyond wind mitigation.
129 5. Access to the rate transparency report, annual
130 statements, market conduct information, and other information
131 related to each insurer.
132 6. Information on the Citizens Property Insurance
133 Corporation take-out process, the clearinghouse, and general
134 information as reported by the office.
135 7. Information on the claims process, including, but not
136 limited to:
137 a. Clear, step-by-step guidance on how to file a claim,
138 what to expect during the claim process, and timelines for
139 resolution of a claim.
140 b. The obligations of insurers and insureds related to
141 claim reporting, claim handling, communications regarding
142 claims, claim investigations, claim decisions, and claim
143 payments.
144 c. For each insurer with active policies in this state,
145 the means by which to report a claim, including any telephone
146 numbers, e-mail addresses, or website addresses used for claim
147 reporting.
148 8. Information on consumer protection, including, but not
149 limited to:
150 a. The rights of insureds under Florida law related to
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151 coverage; coverage renewals, nonrenewals, and cancellations; and
152 mandated offers of coverage.
153 b. Information on how to file consumer complaints with the
154 Division of Consumer Services in the Department of Financial
155 Services.
156 9. Information on news and updates relevant to consumers
157 regarding this state's residential property insurance market,
158 including regulatory changes, information on insurers that enter
159 or exit the market, and industry trends.
160 10. Information on disaster preparedness directly related
161 to insurance, prepared by the office or by the Division of
162 Emergency Management.
163 11. With respect to any residential property rate filing,
164 the office shall provide the following information on a publicly
165 accessible Internet website:
166 a.1. The overall rate change requested by the insurer.
167 b.2. The rate change approved by the office along with all
168 of the actuary's assumptions and recommendations forming the
169 basis of the office's decision.
170 c.3. Certification by the office's actuary that, based on
171 the actuary's knowledge, his or her recommendations are
172 consistent with accepted actuarial principles.
173 d. Whether the insurer uses affiliated entities to perform
174 administrative, claims handling, or other functions of the
175 insurer and, if so, the total percentage of direct written
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176 premium paid to the affiliated entities by the insurer in the
177 preceding calendar year.
178 (b) For any rate filing, regardless of whether or not the
179 filing is subject to a public hearing, the office shall provide
180 on its website a means for any policyholder who may be affected
181 by a proposed rate change to send an e-mail regarding the
182 proposed rate change. Such e-mail must be accessible to the
183 actuary assigned to review the rate filing.
184 (c) The statewide average requested rate change and final
185 approved statewide average rate change within a filing is not a
186 trade secret as defined in s. 688.002 or s. 812.081(1) and is
187 not subject to the public records exemption for trade secrets
188 provided in s. 119.0715 or s. 624.4213.
189 (d) County rating examples submitted to the office through
190 the rate collection system for the purpose of displaying rates
191 on the office website are not a trade secret as defined in s.
192 688.002 or s. 812.081(1) and are not subject to the public
193 records exemption for trade secrets provided in s. 119.0715 or
194 s. 624.4213.
195 Section 2. Present subsections (5) and (6) of section
196 627.7011, Florida Statutes, are redesignated as subsections (6)
197 and (7), respectively, and a new subsection (5) is added to that
198 section, to read:
199 627.7011 Homeowners' policies; offer of replacement cost
200 coverage and law and ordinance coverage.—
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201 (5) When establishing the coverage amount or adjusting a
202 claim for a dwelling or other structure under a homeowner's
203 insurance policy, an insurer may not include the value of the
204 land on which such dwelling or structure is located. This
205 subsection may not be construed to permit inclusion of the value
206 of land for dwellings or structures located on the shoreline,
207 surrounded in whole or in part by a body of water, or on land
208 formed or altered by erosion or accretion.
209 Section 3. Section 627.7142, Florida Statutes, is amended
210 to read:
211 627.7142 Homeowner Claims Bill of Rights.—An insurer
212 issuing a personal lines residential property insurance policy
213 in this state must provide a Homeowner Claims Bill of Rights to
214 a policyholder within 14 days after receiving an initial
215 communication with respect to a claim. The purpose of the bill
216 of rights is to summarize, in simple, nontechnical terms,
217 existing Florida law regarding the rights of a personal lines
218 residential property insurance policyholder who files a claim of
219 loss. The Homeowner Claims Bill of Rights is specific to the
220 claims process and does not represent all of a policyholder's
221 rights under Florida law regarding the insurance policy. The
222 Homeowner Claims Bill of Rights does not create a civil cause of
223 action by any individual policyholder or class of policyholders
224 against an insurer or insurers. The failure of an insurer to
225 properly deliver the Homeowner Claims Bill of Rights is subject
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226 to administrative enforcement by the office but is not
227 admissible as evidence in a civil action against an insurer. The
228 Homeowner Claims Bill of Rights does not enlarge, modify, or
229 contravene statutory requirements, including, but not limited
230 to, ss. 626.854, 626.9541, 627.70131, 627.7015, and 627.7074,
231 and does not prohibit an insurer from exercising its right to
232 repair damaged property in compliance with the terms of an
233 applicable policy or ss. 627.7011(7)(e) and 627.702(7) ss.
234 627.7011(6)(e) and 627.702(7). The Homeowner Claims Bill of
235 Rights must state:
236
237 HOMEOWNER CLAIMS
238 BILL OF RIGHTS
239 This Bill of Rights is specific to the claims process
240 and does not represent all of your rights under
241 Florida law regarding your policy. There are also
242 exceptions to the stated timelines when conditions are
243 beyond your insurance company's control. This document
244 does not create a civil cause of action by an
245 individual policyholder, or a class of policyholders,
246 against an insurer or insurers and does not prohibit
247 an insurer from exercising its right to repair damaged
248 property in compliance with the terms of an applicable
249 policy.
250
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251 YOU HAVE THE RIGHT TO:
252 1. Receive from your insurance company an
253 acknowledgment of your reported claim within 7 days
254 after the time you communicated the claim.
255 2. Upon written request, receive from your insurance
256 company within 30 days after you have submitted a
257 complete proof-of-loss statement to your insurance
258 company, confirmation that your claim is covered in
259 full, partially covered, or denied, or receive a
260 written statement that your claim is being
261 investigated.
262 3. Receive from your insurance company a copy of any
263 detailed estimate of the amount of the loss within 7
264 days after the estimate is generated by the insurance
265 company's adjuster.
266 4. Within 60 days, subject to any dual interest noted
267 in the policy, receive full settlement payment for
268 your claim or payment of the undisputed portion of
269 your claim, or your insurance company's denial of your
270 claim.
271 5. Receive payment of interest, as provided in s.
272 627.70131, Florida Statutes, from your insurance
273 company, which begins accruing from the date your
274 claim is filed if your insurance company does not pay
275 full settlement of your initial, reopened, or
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276 supplemental claim or the undisputed portion of your
277 claim or does not deny your claim within 60 days after
278 your claim is filed. The interest, if applicable, must
279 be paid when your claim or the undisputed portion of
280 your claim is paid.
281 6. Free mediation of your disputed claim by the
282 Florida Department of Financial Services, Division of
283 Consumer Services, under most circumstances and
284 subject to certain restrictions.
285 7. Neutral evaluation of your disputed claim, if your
286 claim is for damage caused by a sinkhole and is
287 covered by your policy.
288 8. Contact the Florida Department of Financial
289 Services, Division of Consumer Services' toll-free
290 helpline for assistance with any insurance claim or
291 questions pertaining to the handling of your claim.
292 You can reach the Helpline by phone at ...(toll-free
293 phone number)..., or you can seek assistance online at
294 the Florida Department of Financial Services, Division
295 of Consumer Services' website at ...(website
296 address)....
297
298 YOU ARE ADVISED TO:
299 1. File all claims directly with your insurance
300 company.
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301 2. Contact your insurance company before entering
302 into any contract for repairs to confirm any managed
303 repair policy provisions or optional preferred
304 vendors.
305 3. Make and document emergency repairs that are
306 necessary to prevent further damage. Keep the damaged
307 property, if feasible, keep all receipts, and take
308 photographs or video of damage before and after any
309 repairs to provide to your insurer.
310 4. Carefully read any contract that requires you to
311 pay out-of-pocket expenses or a fee that is based on a
312 percentage of the insurance proceeds that you will
313 receive for repairing or replacing your property.
314 5. Confirm that the contractor you choose is licensed
315 to do business in Florida. You can verify a
316 contractor's license and check to see if there are any
317 complaints against him or her by calling the Florida
318 Department of Business and Professional Regulation.
319 You should also ask the contractor for references from
320 previous work.
321 6. Require all contractors to provide proof of
322 insurance before beginning repairs.
323 7. Take precautions if the damage requires you to
324 leave your home, including securing your property; and
325 turning off your gas, water, and electricity;, and
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326 contacting your insurance company; and providing
327 provide a phone number where you can be reached.
328 Section 4. This act shall take effect July 1, 2026.
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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 777 COMPANION BILL: None
TITLE: Pub. Rec./Office of Financial Regulation LINKED BILLS: HB 381 Barnaby
SPONSOR(S): Barnaby RELATED BILLS: SB 1440 (Martin)
Committee References
Insurance & Banking Government Operations Commerce
SUMMARY
Effect of the Bill:
The bill, which is linked to the passage of HB 381, makes confidential certain information related to mortgage
businesses, money services businesses, and financial institutions such as information relating to the cybersecurity
requirements proposed in HB 381, investigations conducted by OFR, and information contained in a financial
institution’s application for formation.
Fiscal or Economic Impact:
The bill may have an indeterminate impact on the private sector.
Extraordinary Vote Required for Passage:
The bill requires a two-thirds vote of the membership of both houses of the Legislature for final passage.
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ANALYSIS
EFFECT OF THE BILL:
Mortgage businesses and money services businesses:
The bill makes the following information confidential and exempt from Florida’s public records laws:
Information received by the Office of Financial Regulation (“OFR”) relating to the cybersecurity
requirements for mortgage businesses and money services businesses proposed in HB 381, including
information received relating to the written response plan, investigation and notice of a security breach.
(Section 1).
Information received by OFR as a result of an investigation of a mortgage business or money services
business by OFR or a law enforcement agency, until said investigation is complete. (Section 3).
The bill includes the constitutionally required public necessity statement, in which the bill notes that premature or
unrestricted release of information on cybersecurity events could compromise ongoing investigations, expose
system vulnerabilities, and hinder OFR’s ability to protect consumers and regulate mortgage and money services
businesses effectively. The bill states that disclosure of such information could place affected individuals at risk of
identity theft and financial fraud, and could also reveal trade secrets, proprietary data, and technical safeguards.
The bill also finds that protecting information on cybersecurity events ensures that entities cooperate fully with
STORAGE NAME: h0777.IBS
DATE: 1/19/2026
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regulators, encourages accurate reporting of security incidents, and maintains the overall integrity of the financial
and cybersecurity infrastructure of Florida. (Sections 2 and 4).
Financial Institutions:
The bill makes the following information confidential and exempt from Florida’s public records laws:
Information received by the OFR relating to notices of data security breaches by financial institutions, as
proposed in HB 381. (Section 5).
Information received by the OFR relating to investigations of financial institutions conducted by OFR or law
enforcement agencies, until said investigation is complete. (Section 5).
o The bill allows OFR to publish information that would otherwise be confidential during an active
investigation if publishing such information is in the furtherance of OFR’s official duties and
responsibilities or could help locate victims of a data breach or improper disposal of customer
records. The bill would also allow OFR to disclose otherwise confidential information to another
government entity in furtherance of its official duties. (Section 5).
The bill also makes certain information related to the investigation of a financial institution confidential even after
an investigation is complete, including:
information to which another public records exemption applies;
personal information;
computer forensic reports;
information that would reveal weaknesses in a financial institution’s data security; and
information that would disclose a financial institution’s propriety information such as trade secrets or
competitive interests. (Section 5).
The bill also provides that OFR may not publish this type of information in order to locate victims of a data breach
or improper disposal of customer records. (Section 5).
The bill includes the constitutionally required public necessity statement, in which the bill finds that notifications
of security breaches involving financial institutions are likely to result in an investigation and that premature
release of such information could frustrate, thwart or jeopardize the investigation and impair the ability of OFR to
effectively and efficiently administer the required notices. (Section 6).
The bill finds that it is a public necessity to continue to protect from public disclosure all information to which
another public record exemption applies once an investigation is completed, as release of such information would
undo the specific statutory exemption protecting that information. (Section 6).
The bill finds that an investigation of a data breach or improper disposal of records is likely to result in the
gathering of sensitive personal information of customers of financial institutions that could be used for identity
theft, and that release of such information could subject possible victims to further financial harm. (Section 6).
The bill finds that the release of a computer forensic report or other information that would reveal a financial
institution’s data security weaknesses could compromise the institution’s future security, could compromise the
security of other financial institutions, and could result in the identification of vulnerabilities and further breaches
of that system. (Section 6).
The bill further finds that notices received by OFR and information received during an investigation are likely to
contain proprietary information, including trade secrets, and the release of such information could result in the
identification of vulnerabilities and further breaches of that system. The bill finds that a trade secret derives
independent, economic value from being unknown to other persons and allowing public access could destroy their
value and could cause financial harm to the financial institution and give competitors an unfair advantage. (Section
6).
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Applications for Financial Institutions:
The bill makes information received by OFR relating to an application to form a financial institution confidential,
including:
personal financial information;1
driver license number, passport number, military identification number, or any other number or code
issued on a government document used to verify identity;
books and records of a current or proposed financial institution; and
the proposed financial institution’s proposed business plan. (Section 7).
The bill contains the constitutionally required public necessity statement, and finds that OFR may receive sensitive
information when reviewing applications for new financial institutions and that exemptions from public records
requirements are necessary to ensure OFR’s ability to administer its regulatory duties while preventing
unwarranted damage to the proposed financial institution or proposed officers or directors. (Section 8).
The bill finds that the release of such information could lead to identification of an individual involved in a new
financial institution and may subject the individual to retribution. The bill finds that public availability of the books
and records of a current or proposed financial institution presents an unnecessary risk of harm to the business
operations of such institution. The bill further finds that the public availability of a proposed financial institution’s
business plan may cause competitive harm to its future business operations and present an unfair competitive
advantage for existing financial institutions. (Section 8).
Sunset Provision
The bill’s exemptions for mortgage businesses, money services businesses, and financial institutions automatically
sunset on October 2, 2031, unless reviewed and saved from repeal.
Effective date:
The bill provides that it shall take effect on the same date that HB 381 or similar legislation takes effect. HB 381 has
an effective date of July 1, 2026.
FISCAL OR ECONOMIC IMPACT:
PRIVATE SECTOR:
The bill may have an indeterminate impact on the private sector, to the extent that the bill prevents the release of
information that if released, could have a financial impact on businesses or individuals.
RELEVANT INFORMATION
SUBJECT OVERVIEW:
Florida’s public records laws:
The Florida Constitution sets forth the state’s public policy regarding access to government records,
guaranteeing every person a right to inspect or copy any public record of the legislative, executive, and
judicial branches of government.2 The Legislature, however, may provide by general law for exemption3 from
public record requirements provided the exemption passes by two-thirds vote of each chamber, states with
1 “Personal financial information” is defined as: information relating to the existence, nature, source, or amount of a person’s
personal income, expenses, or debt; information relating to a person’s financial transactions of any kind; or information
relating to the existence, identification, nature, or value of a person’s assets, liabilities, or net worth. S. 655.057(13), F.S.
2 Art. I, s. 24(a), FLA. CONST.
3 A public record exemption means a provision of general law which provides that a specified record, or portion thereof, is
not subject to the access requirements of s. 119.07(1), F.S., or s. 24, Art. I of the State Constitution. See s. 119.011(8), F.S.
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specificity the public necessity justifying the exemption, and is no broader than necessary to meet its public
purpose.4
The Florida Statutes also address the public policy regarding access to government records, guaranteeing every
person a right to inspect and copy any state, county, or municipal record, unless the record is exempt.5
Furthermore, the Open Government Sunset Review Act6 provides that a public record exemption may be created,
revised, or maintained only if it serves an identifiable public purpose and the “Legislature finds that the purpose is
sufficiently compelling to override the strong public policy of open government and cannot be accomplished
without the exemption.”7
An identifiable public purpose is served if the exemption meets one of the following purposes: 8
Allow the state or its political subdivisions to effectively and efficiently administer a governmental
program, which administration would be significantly impaired without the exemption;
Protect sensitive personal information that, if released, would be defamatory or would jeopardize an
individual’s safety; however, only the identity of an individual may be exempted under this provision; or
Protect trade or business secrets.
Pursuant to the Open Government Sunset Review Act, a new public record exemption or substantial amendment of
an existing public record exemption is repealed on October 2nd of the fifth year following enactment, unless the
Legislature reenacts the exemption.9
Current public record exemptions related to financial institutions include:10
records and information relating to active investigations.
o The records remain confidential and exempt after the investigation is completed or ceases to be
active to the extent disclosure would jeopardize the integrity of another active investigation, impair
the safety and soundness of the financial institution, reveal personal financial information, reveal
the identity of a confidential source, defame or cause unwarranted damage to the good name or
reputation of an individual or jeopardize the safety of an individual, or reveal investigative
techniques or procedures.
reports of examinations, operations, or condition, including working papers, or portions thereof, prepared
by, or for the use of, OFR or any other state agency or federal agency responsible for the regulation or
supervision of financial institutions. However, this exemption provides for the following release of such
reports:
o The reports may be released to specified persons such as the financial institution under
examination (or its holding company) and certain proposed acquirers of a financial institution.
o The reports must be released within one year after the appointment of a liquidator, receiver, or
conservator to the financial institution, except that portions of the reports which identify specified
individuals such as depositors and stockholders remain confidential and exempt.
OFR’s informal enforcement actions to the extent that disclosure would jeopardize the integrity of another
active investigation, impair the safety and soundness of the financial institution, reveal personal financial
information, reveal the identity of a confidential source, defame or cause unwarranted damage to the good
name or reputation of an individual or jeopardize the safety of an individual, or reveal investigative
techniques or procedures.
trade secrets held by OFR in accordance with its statutory duties.
4 Art. I, s. 24(c), FLA. CONST.
5 See S. 119.01, F.S.
6 S. 119.15, F.S.
7 S. 119.15(6)(b), F.S.
8 Id.
9 S. 119.15(3), F.S.
10 S. 655.057, F.S.
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information received by OFR pursuant to an application for authority to organize a new state bank or new
state trust company such as personal financial information, a driver license or other forms of identification,
books and records of the proposed institution, and the proposed institution’s business plan.
lists of the members of a credit union or mutual association.
lists of shareholders of banks, trust companies, and stock associations.
Office of Financial Regulation:
OFR is responsible for all activities of the Financial Services Commission relating to the regulation of banks, credit
unions, other financial institutions, finance companies, and the securities industry. 11 The Division of Consumer
Finance within OFR licenses and regulates various aspects of the non-depository financial services industries,
including mortgage and money services businesses.12 The Division of Financial Institutions within OFR regulates
commercial banks, credit unions, family trust companies, international bank and trust company offices, and non-
deposit trust companies.13
Mortgage businesses:
Chapter 494, F.S. authorizes OFR to regulate the following mortgage businesses: loan originators, mortgage
brokers and branches, and mortgage lenders and branches.14
Money services businesses:
A “money service business” is defined as any person located in or doing business in this state, from this state, or
into this state from locations outside this state or country who acts as a payment instrument seller, foreign
currency exchanger, check casher, or money transmitter.15
Financial institutions:
“Financial institution” means a state or federal savings or thrift association, bank, savings bank, trust company,
international bank agency, international banking corporation, international branch, international representative
office, international administrative office, international trust entity, international trust company representative
office, qualified limited service affiliate, credit union, or corporations authorized by the Federal Reserve to conduct
international banking or finance.16
House Bill 381 requirements for mortgage and money services businesses:
House Bill 381 requires mortgage and money services businesses to develop and maintain comprehensive
cybersecurity programs designed to protect the nonpublic customer information.
The specific requirements for the cybersecurity program include:
Developing and maintaining an information security program with administrative, technical, and physical
safeguards to protect the business’s information system and nonpublic personal information of a customer.
Regularly testing and monitoring the program.
Establishing a written incident response plan designed to promptly respond to and recover from
cybersecurity events.
Investigating any actual or potential cybersecurity event.
Notifying OFR of any security breach affecting 500 or more individuals in Florida at a time.
11 S. 20.121(3)(a)(2), F.S.
12 Office of Financial Regulation, Division of Consumer Finance, https://flofr.gov/divisions-offices/division-of-
consumerfinance (last visited Jan. 15, 2026).
13 Office of Financial Regulation, Division of Financial Institutions, https://flofr.gov/divisions-offices/division-of-financial-
institutions (last visited Jan. 15, 2026).
14 Office of Financial Regulation, Division of Financial Institutions, https://flofr.gov/divisions-offices/division-of-financial-
institutions (last visited Jan. 15, 2026).
15 S. 560.103(23), F.S.
16 S. 655.005(1)(i), F.S.
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HB 381 provides that “nonpublic personal information” means
personally identifiable financial information17 and
Any list, description, or other grouping of customers which is derived using any personally identifiable
financial information that is not publicly available, such as account numbers, including any list of
individuals’ names and street addresses which is derived, in whole or in part, using personally identifiable
financial information that is not publicly available.
House Bill 381 requirements for financial institutions:
HB 381 requires financial institutions to take reasonable measures to protect and secure electronic data containing
personal information.
HB 381 also requires financial institutions to notify the Division of Financial Institutions upon the occurrence or
detection of a data breach in which personal information may have been compromised, gathered, or distributed if
500 or more people are affected.
HB 381 provides that “personal information” means:
an individual’s first name, or first initial, and last name, in combination with any of the following data for
that individual:
o A social security number;
o A driver license or identification card number, passport number, military identification number, or
other similar number issued on a government document;
o A financial account number or credit or debit card number, in combination with any required
security code, access code, or password that is necessary to permit access to the individual’s
financial account;
o The individual’s biometric data; or
Any information regarding the individual’s geolocation; or
A username or e-mail address, in combination with a password or security question and answer that would
permit access to an online account.
HB 381 also requires financial institutions to notify individuals whose personal information was accessed as a
result of the breach.
BILL HISTORY
STAFF
DIRECTOR/ ANALYSIS
COMMITTEE REFERENCE ACTION DATE POLICY CHIEF PREPARED BY
Insurance & Banking Brackett Highsmith
Subcommittee
Government Operations
Subcommittee
Commerce Committee
17 HB 381 defines “personally identifiable financial information” as information a business obtains about a customer,
prospective customer, or former customer relating to the obtainment of a financial product or service.
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6
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 777 2026
1 A bill to be entitled
2 An act relating to public records; amending s.
3 494.00125, F.S.; providing an exemption from public
4 records requirements for information received by the
5 Office of Financial Regulation pursuant to certain
6 cybersecurity event provisions relating to information
7 systems and customer information of loan originators,
8 mortgage brokers, and mortgage lenders and for
9 information received by the office as a result of
10 investigations and examinations of such cybersecurity
11 events; providing for future legislative review and
12 repeal of the exemption; providing a statement of
13 public necessity; amending s. 560.129, F.S.; providing
14 an exemption from public records requirements for
15 information received by the office pursuant to certain
16 cybersecurity events provisions relating to
17 information systems and customer information of money
18 services businesses and for information received by
19 the office as a result of investigations and
20 examinations of such cybersecurity events; providing
21 for future legislative review and repeal of the
22 exemption; providing a statement of public necessity;
23 amending s. 655.0171, F.S.; providing an exemption
24 from public records requirements for customer personal
25 information received by the office relating to
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26 breaches of security of financial institutions or
27 received by the office as a result of investigations
28 of such breaches under certain circumstances;
29 providing exceptions; providing definitions; providing
30 for future legislative review and repeal of the
31 exemption; providing a statement of public necessity;
32 amending s. 655.057, F.S.; providing an exemption from
33 public records requirements for certain information
34 received by the office pursuant to applications for
35 authority to organize new financial institutions and
36 for certain information relating to specified persons;
37 providing exceptions; defining the term "personal
38 identifying information"; providing for future
39 legislative review and repeal of the exemption;
40 providing a statement of public necessity; providing a
41 contingent effective date.
42
43 Be It Enacted by the Legislature of the State of Florida:
44
45 Section 1. Subsection (4) is added to section 494.00125,
46 Florida Statutes, to read:
47 494.00125 Public records exemptions.—
48 (4) INFORMATION SECURITY; CYBERSECURITY.—All information
49 received by the office pursuant to s. 494.00123, or received by
50 the office as result of an investigation by the office or a law
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51 enforcement agency of a cybersecurity event pursuant to s.
52 494.00123, is confidential and exempt from s. 119.07(1) and s.
53 24(a), Art. I of the State Constitution, until such time as the
54 investigation is completed or ceases to be active. The public
55 records exemption of the information received by the office
56 under this subsection shall be construed in conformity with s.
57 119.071(2)(c). This subsection is subject to the Open Government
58 Sunset Review Act in accordance with s. 119.15 and shall stand
59 repealed on October 2, 2031, unless reviewed and saved from
60 repeal through reenactment by the Legislature.
61 Section 2. (1) The Legislature finds that it is a public
62 necessity that information on cybersecurity events submitted to
63 or obtained by the Office of Financial Regulation pursuant to s.
64 494.00123, Florida Statutes, or as a result of an investigation
65 by the office which involve information security programs of
66 loan originators, mortgage brokers, and mortgage lenders and
67 nonpublic personal data of customers of such loan originators,
68 mortgage brokers, and mortgage lenders be made confidential and
69 exempt from public disclosure.
70 (2)(a) Premature or unrestricted release of information on
71 cybersecurity events, as defined in s. 494.00123(1), Florida
72 Statutes, could compromise ongoing investigations, expose system
73 vulnerabilities, and hinder the office's ability to protect
74 consumers and regulate financial institutions effectively.
75 Disclosure of such information could also place affected
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76 individuals at heightened risk of identity theft and financial
77 fraud while revealing trade secrets, proprietary data, and
78 technical safeguards that could be exploited by malicious
79 actors.
80 (b) Protecting information on cybersecurity events ensures
81 that entities cooperate fully with regulators, encourages
82 accurate reporting of security incidents, and maintains the
83 overall integrity of the financial and cybersecurity
84 infrastructure of this state.
85 (3) It is therefore a public necessity that all
86 information received by the office pursuant to s. 494.00123,
87 Florida Statutes, or through an investigation by the office or a
88 law enforcement agency of a cybersecurity event pursuant to s.
89 494.00123, Florida Statutes, be made confidential and exempt
90 from s. 119.07(1), Florida Statutes, and s. 24(a), Article I of
91 the State Constitution.
92 Section 3. Subsection (7) of section 560.129, Florida
93 Statutes, is renumbered as subsection (8), and a new subsection
94 (7) is added to that section to read:
95 560.129 Confidentiality.—
96 (7) All information received by the office pursuant to s.
97 560.1311 or as a result of an investigation by the office or a
98 law enforcement agency is confidential and exempt from s.
99 119.07(1) and s. 24(a), Art. I of the State Constitution, until
100 such time as the investigation is completed or ceases to be
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101 active. This exemption shall be construed in conformity with s.
102 119.071(2)(c). This subsection is subject to the Open Government
103 Sunset Review Act in accordance with s. 119.15 and shall stand
104 repealed on October 2, 2031, unless reviewed and saved from
105 repeal through reenactment by the Legislature.
106 Section 4. The Legislature finds that it is a public
107 necessity that information related to cybersecurity incidents,
108 data breaches, and information security programs submitted to or
109 obtained by the Office of Financial Regulation be made
110 confidential and exempt from public disclosure. Premature or
111 unrestricted release of such information could compromise
112 ongoing investigations, expose system vulnerabilities, and
113 hinder the office's ability to protect consumers and regulate
114 money services businesses effectively. Disclosure could also
115 place affected individuals at heightened risk of identity theft
116 and financial fraud while revealing trade secrets, proprietary
117 data, and technical safeguards that could be exploited by
118 malicious actors. Protecting this information ensures that
119 entities cooperate fully with regulators, encourages accurate
120 reporting of security incidents, and maintains the overall
121 integrity of this state's financial and cybersecurity
122 infrastructure.
123 Section 5. Subsection (6) is added to section 655.0171,
124 Florida Statutes, as created by HB 381, 2026 Regular Session, to
125 read:
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126 655.0171 Requirements for customer data security and for
127 notices of security breaches.—
128 (6) PUBLIC RECORDS EXEMPTION.—
129 (a) All information received by the office pursuant to a
130 notification required by this section, or received by the office
131 pursuant to an investigation by the office or a law enforcement
132 agency under this section, is confidential and exempt from s.
133 119.07(1) and s. 24(a), Art. I of the State Constitution, until
134 such time as the investigation is completed or ceases to be
135 active. This exemption shall be construed in conformity with s.
136 119.071(2)(c).
137 (b) During an active investigation, information made
138 confidential and exempt pursuant to paragraph (a) may be
139 disclosed by the office:
140 1. In the furtherance of its official duties and
141 responsibilities;
142 2. For print, publication, or broadcast if the office
143 determines that such release would assist in notifying the
144 public or locating or identifying a person that the office
145 believes to be a victim of a data breach or improper disposal of
146 customer records, except that information made confidential and
147 exempt by paragraph (c) may not be released pursuant to this
148 subparagraph; or
149 3. To another governmental entity in the furtherance of
150 its official duties and responsibilities.
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151 (c) Upon completion of an investigation or once an
152 investigation ceases to be active, the following information
153 received by the office remains confidential and exempt from s.
154 119.07(1) and s. 24(a), Art. I of the State Constitution:
155 1. All information to which another public records
156 exemption applies.
157 2. Personal information.
158 3. A computer forensic report.
159 4. Information that would otherwise reveal weaknesses in a
160 financial institution's data security.
161 5. Information that would disclose a financial
162 institution's proprietary information.
163 a. As used in this subparagraph, the term "proprietary
164 information" means information that:
165 (I) Is owned or controlled by the financial institution.
166 (II) Is intended to be private and is treated by the
167 financial institution as private because disclosure would harm
168 the financial institution or its business operations.
169 (III) Has not been disclosed except as required by law or
170 a private agreement that provides that the information will not
171 be released to the public.
172 (IV) Is not publicly available or otherwise readily
173 ascertainable through proper means from another source in the
174 same configuration as received by the office.
175 b. The term includes:
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176 (I) Trade secrets as defined in s. 688.002.
177 (II) Competitive interests, the disclosure of which would
178 impair the competitive business of the financial institution
179 that is the subject of the information.
180 (d) As used in this subsection, the term "customer
181 records" means any material, regardless of the physical form, on
182 which personal information is recorded or preserved by any
183 means, including, but not limited to, written or spoken words,
184 graphically depicted, printed, or electromagnetically
185 transmitted which are provided by an individual in this state to
186 a financial institution for the purpose of purchasing or leasing
187 a product or obtaining a service.
188 (e) This subsection is subject to the Open Government
189 Sunset Review Act in accordance with s. 119.15 and shall stand
190 repealed on October 2, 2031, unless reviewed and saved from
191 repeal through reenactment by the Legislature.
192 Section 6. The Legislature finds that it is a public
193 necessity that all information received by the Office of
194 Financial Regulation pursuant to a notification of a violation
195 of s. 655.0171, Florida Statutes, or received by the Department
196 of Legal Affairs pursuant to an investigation by the department
197 or a law enforcement agency relation to a violation of s.
198 655.0171, Florida Statutes, be made confidential and exempt from
199 s.119.07(1), Florida Statutes, and s. 24(a), Article I of the
200 State Constitution for the following reasons:
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201 (1) A notification of a violation of s. 655.0171, Florida
202 Statutes, is likely to result in an investigation. The premature
203 release of such information could frustrate or thwart the
204 investigation and impair the ability of the office to
205 effectively and efficiently administer s. 655.0171, Florida
206 Statutes. In addition, release of such information before
207 completion of an active investigation could jeopardize the
208 ongoing investigation.
209 (2) The Legislature finds that it is a public necessity to
210 continue to protect from public disclosure all information to
211 which another public record exemption applies once an
212 investigation is completed or ceases to be active. Release of
213 such information by the office would undo the specific statutory
214 exemption protecting that information.
215 (3) An investigation of a data breach or improper disposal
216 of customer records is likely to result in the gathering of
217 sensitive personal information, including social security
218 numbers, identification numbers, and personal financial
219 information of customers of financial institutions. Such
220 information could be used for the purpose of identity theft, and
221 release of such information could subject possible victims of
222 the data breach or improper disposal of customer records to
223 further financial harm.
224 (4) Release of a computer forensic report or other
225 information that would otherwise reveal weaknesses in a covered
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226 financial institution's data security could compromise the
227 future security of that financial institution, or other
228 financial institutions, if such information were available upon
229 conclusion of an investigation or once an investigation ceased
230 to be active. The release of such report or information could
231 compromise the security of current financial institutions and
232 make those financial institutions susceptible to future data
233 breaches. Release of such report or information could result in
234 the identification of vulnerabilities and further breaches of
235 that system.
236 (5) Notices received by the office and information
237 received during an investigation of a data breach are likely to
238 contain proprietary information, including trade secrets, about
239 the security of the breached system. The release of the
240 proprietary information could result in the identification of
241 vulnerabilities and further breaches of that system. In
242 addition, a trade secret derives independent, economic value,
243 actual or potential, from being generally unknown to, and not
244 readily ascertainable by, other persons. Allowing public access
245 to proprietary information, including a trade secret, through a
246 public records request could destroy the value of the
247 proprietary information and cause a financial loss to the
248 financial institution submitting the information. Release of
249 such information could give business competitors an unfair
250 advantage and weaken the position of the financial institution
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251 supplying the proprietary information in the marketplace.
252 Section 7. Subsections (6) through (14) of section
253 655.057, Florida Statutes, are renumbered as subsections (7)
254 through (15), respectively, and a new subsection (6) is added to
255 that section, to read:
256 655.057 Records; limited restrictions upon public access.—
257 (6)(a) The following information received by the office
258 pursuant to an application for authority to organize a new
259 financial institution is confidential and exempt from s.
260 119.07(1) and s. 24(a), Art. I of the State Constitution:
261 1. Personal financial information.
262 2. A driver license number, a passport number, a military
263 identification number, or any other number or code issued on a
264 government document used to verify identity.
265 3. Books and records of a current or proposed financial
266 institution.
267 4. The proposed financial institution's proposed business
268 plan.
269 (b) The personal identifying information of a proposed
270 officer or proposed director who is currently employed by, or
271 actively participates in the affairs of, another financial
272 institution received by the office pursuant to an application
273 for authority to organize a new financial institution under
274 chapters 655-667 is exempt from s. 119.07(1) and s. 24(a), Art.
275 I of the State Constitution until the application is approved
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276 and the charter is issued. As used in this paragraph, the term
277 "personal identifying information" means names, home addresses,
278 e-mail addresses, telephone numbers, names of relatives, work
279 experience, professional licensing and educational backgrounds,
280 and photographs.
281 (c) This subsection is subject to the Open Government
282 Sunset Review Act in accordance with s. 119.15 and is repealed
283 October 2, 2031, unless reviewed and saved from repeal through
284 reenactment by the Legislature.
285 Section 8. (1)(a) The Legislature finds that it is a
286 public necessity that information received by the Office of
287 Financial Regulation pursuant to an application for authority to
288 organize a new financial institution pursuant to the Financial
289 Institutions Codes, chapters 655-667, Florida Statutes, be made
290 confidential and exempt from s. 119.07(1), Florida Statutes, and
291 s. 24(a), Article I of the State Constitution to the extent that
292 disclosure would reveal:
293 1. Personal financial information;
294 2. A driver license number, a passport number, a military
295 identification number, or any other number or code issued on a
296 government document used to verify identity;
297 3. Books and records of a current or proposed financial
298 institution; or
299 4. A proposed financial institution's business plan and
300 any attached supporting documentation.
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301 (b) The Legislature further finds that it is a public
302 necessity that the personal identifying information of a
303 proposed officer or proposed director who is currently employed
304 by, or actively participates in the affairs of, another
305 financial institution be made confidential and exempt from s.
306 119.07(1), Florida Statutes, and s. 24(a), Article I of the
307 State Constitution for the duration of the application process,
308 until the application is approved and a charter is issued.
309 (2) The office may receive sensitive personal, financial,
310 and business information in conjunction with its duties related
311 to the review of applications for the organization or
312 establishment of new financial institutions. The exemptions from
313 public records requirements provided under subsection (1) are
314 necessary to ensure the office's ability to administer its
315 regulatory duties while preventing unwarranted damage to the
316 proposed financial institution or certain proposed officers or
317 proposed directors of financial institutions in this state. The
318 release of information that could lead to the identification of
319 an individual involved in the potential establishment of a new
320 financial institution may subject such individual to retribution
321 and jeopardize his or her current employment with, or
322 participation in the affairs of, another financial institution.
323 Thus, the public availability of such information has a chilling
324 effect on the establishment of new financial institutions.
325 Further, the public availability of the books and financial
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326 records of a current or proposed financial institution in this
327 state presents an unnecessary risk of harm to the business
328 operations of such institution. Finally, the public availability
329 of a proposed financial institution's business plan may cause
330 competitive harm to its future business operations and presents
331 an unfair competitive advantage for existing financial
332 institutions that are not required to release such information.
333 Section 9. This act shall take effect on the same date
334 that HB 381 or similar legislation takes effect, if such
335 legislation is adopted in the same legislative session or an
336 extension thereof and becomes a law.
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HB 893
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 893 COMPANION BILL: None
TITLE: Trust Fund Interest for Purposes Approved by LINKED BILLS: None
Supreme Court RELATED BILLS: SB 1000 (Grall)
SPONSOR(S): Koster
Committee References
Insurance & Banking Judiciary Commerce
SUMMARY
Effect of the Bill:
The bill expressly authorizes a financial institution to hold funds in an interest-bearing trust account of a lawyer or
law firm. The bill requires financial institutions to remit any interest and dividends earned on these accounts to
Florida Supreme Court authorized entities for the purposes of providing free legal services. The bill establishes
required interest rates for these accounts.
Fiscal or Economic Impact:
The bill may have an indeterminate impact on the private sector.
JUMP TO SUMMARY ANALYSIS RELEVANT INFORMATION BILL HISTORY
ANALYSIS
EFFECT OF THE BILL:
The bill expressly authorizes a financial institution to hold funds in an interest-bearing trust account of a lawyer or
law firm, commonly referred to as an “Interest on Trust Account” or “IOTA.” (Section 1).
The bill requires financial institutions to remit any interest or dividends earned on IOTAs to an entity established
by the Florida Supreme Court for the purpose of providing free legal services to low-income individuals or for
other purposes expressly authorized by the Supreme Court. (Section 1).
The bill requires financial institutions holding IOTAs to pay, net of all fees and charges assessed by the financial
institution, interest or dividends at the Wall Street Journal Prime rate in effect on the first business day of each
month, less 300 basis points, with a floor of 0.25 percent and a ceiling of 1.5 percent. (Section 1).
Effective date:
The bill provides an effective date of July 1, 2026. (Section 2).
FISCAL OR ECONOMIC IMPACT:
PRIVATE SECTOR:
The bill may have an indeterminate impact on the private sector. The bill’s limits on interest rates may encourage
more financial institutions to hold interest-bearing trust accounts of a lawyer or law-firm. Further, entities such as
the Funding Florida Legal Aid foundation may see a change in interest revenue as a result of the interest rate limits.
STORAGE NAME: h0893.IBS
DATE: 1/17/2026
1
HB 893
RELEVANT INFORMATION
SUBJECT OVERVIEW:
Financial Institution:
Under Florida’s financial institutions codes, a “financial institution” means a state or federal savings or thrift
association, bank, savings bank, trust company, international bank agency, international banking corporation,
international branch, international representative office, international administrative office, international trust
entity, international trust company representative office, qualified limited service affiliate, credit union, or an
agreement corporation operating pursuant to s. 25 of the Federal Reserve Act, 12 U.S.C. ss. 601 et seq. or Edge Act
corporation organized pursuant to s. 25(a) of the Federal Reserve Act, 12 U.S.C. ss. 611 et seq. 1
Regulation of lawyers:
The Florida Constitution grants the Florida Supreme Court the exclusive jurisdiction to regulate the admission of
persons to the practice of law and the discipline of persons admitted. 2
The Florida Supreme Court has established the “authority and responsibilities of The Florida Bar” through the
Rules Regulating the Florida Bar. 3 Chapter 5 of the Rules contains the “Rules Regulating Trust Accounts,” which all
attorneys who maintain trust accounts must abide by.
The IOTA program:
Under Rule 5-1.1(a)(1) of the Rules Regulating the Florida Bar, lawyers must hold in trust, separate from the
lawyer’s own property, funds and property of clients or third persons that are in the lawyer’s possession in
connection with representation. 4
Lawyer trust accounts generally contain funds such as retainer payments, discovery or litigation costs paid in
advance, filing fees, or settlement awards. Often the amount of money that a lawyer handles for a single client is
small or held for only a short period of time, and therefore cannot earn interest for the client in excess of the costs
incurred to collect said interest. 5 Traditionally, lawyers have placed these funds into pooled trust accounts
containing other nominal or short-term client funds. 6
In 1981, the Florida Supreme Court implemented the nation’s first IOTA program. 7 According to the American Bar
Association, these programs now exist in all 50 states, Washington D.C., Puerto Rico, and the U.S. Virgin Islands. 8
Under Rule 5-1.1(g)(2) of the Rules Regulating the Florida Bar, all nominal or short-term funds belonging to clients
or third persons that are placed in trust with any member of The Florida Bar in the state of Florida must be
deposited into one or more IOTA accounts, unless the funds may earn income for the client or third person in
excess of the costs incurred to secure the income. 9 Under the IOTA program, lawyers handling nominal or short-
term funds that cannot earn net income for clients place these funds into a single, pooled, interest-bearing trust
account. 10
1 S. 655.005(1)(i), F.S.
2 FLA. CONST. art. V, s. 15.
3 The Florida Bar, Rules Regulating the Florida Bar, https://www-media.floridabar.org/uploads/2025/12/2026_06-DEC-
RRTFB-12-5-2025.pdf (last visited Jan. 15, 2026).
4 R. Regulating Fla. Bar Rule 5-1.1(a)(1).
5 American Bar Association, Interest on Lawyers’ Trust Accounts,
https://www.americanbar.org/groups/interest_lawyers_trust_accounts/overview/ (last visited Jan. 15, 2026).
6 Id.
7 In re Interest on Trust Accounts, 356 So.2d 799 (Fla. 1978).
8 American Bar Association, Interest on Lawyers’ Trust Accounts,
https://www.americanbar.org/groups/interest_lawyers_trust_accounts/overview/ (last visited Jan. 15, 2026).
9 R. Regulating Fla. Bar Rule 5-1.1(g)(2).
10 American Bar Association, Interest on Lawyers’ Trust Accounts,
https://www.americanbar.org/groups/interest_lawyers_trust_accounts/overview/ (last visited Jan. 15, 2026).
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2
HB 893
Funding Florida Legal Aid:
In 1956, the Florida Bar created a non-profit organization, The Florida Bar Foundation, and subsequently changed
the name of the foundation to “Funding Florida Legal Aid” (“Foundation”) in 2023. 11 The principal support for the
Foundation is derived from the interest and dividends earned on IOTAs. 12
IOTA interest rates:
On March 16, 2023, the Florida Supreme Court adopted amendments to the Rules Regulating the Florida Bar,
including provisions regulating trust fund accounts. The 2023 amendments:
Expanded the definition of an interest or dividend-bearing account to include a business or consumer
deposit account, non-maturing deposit, an investment product, a daily financial institution repurchase
agreement or a money market account. 13
Required eligible institutions to maintain IOTA accounts that pay the highest interest rate or dividend
generally available from the institution to its non-IOTA business or consumer account customers when
IOTA accounts meet or exceed the same minimum balance qualifications. 14
Mandated that eligible institutions tie minimum interest rates for IOTA accounts to the Wall Street Journal
Prime Rate (indexed rate). 15
The Supreme Court’s 2023 amendments implemented the following formula for determining the required interest
rate for IOTAs:
When the Wall Street Journal Prime Rate (“indexed rate”) is between 325 and 499 basis points (3.25% and
4.99%), the minimum interest rate paid net of all fees and service charges (“yield”) must be no less than
300 basis points (3.00%) below the indexed rate in effect on the first business day of each month.
When the indexed rate is 500 basis points (5.00%) or above, the yield must be no less than 40% of the
indexed rate in effect on the first business day of each month. 16
Following the change in interest rate calculation, funds for the Foundation increased by over $200 million. 17
Wall Street Journal Prime Rate:
The Wall Street Journal Prime Rate is an index used by banks to set rates on consumer lending products. 18 To
establish this rate, the Wall Street Journal regularly surveys the 30 largest banks in the United States to determine
what interest rate they are charging their customers with the highest-rated credit for short-term loans. 19 When 75
percent of the 30 banks change their prime rate, the Wall Street Journal changes its rate. 20
11 FFLA, Funding Florida Legal Aid, Leadership and Funding for Justice in Florida, https://fundingfla.org/about-
ffla/fflaoverview/ (last visited Jan. 15, 2026).
12 Id.
13 R. Regulating Fla. Bar Rule 5-1.1(g)(1)(E).
14 R. Regulating Fla. Bar Rule 5-1.1(g)(5)(A).
15 R. Regulating Fla. Bar Rule 5-1.1(g)(5)(B).
16 Id.
17 FFLA, Financial Stewardship, https://fundingfla.org/about-ffla/ffla-finances/ (last visited Jan. 15, 2026).
18 Bankrate, Wall Street Journal Prime rate https://www.bankrate.com/rates/interest-rates/wall-street-prime-rate/ (last
visited Jan. 17, 2026).
19 Id.
20 Id.
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3
HB 893
BILL HISTORY
STAFF
DIRECTOR/ ANALYSIS
COMMITTEE REFERENCE ACTION DATE POLICY CHIEF PREPARED BY
Insurance & Banking Brackett Highsmith
Subcommittee
Judiciary Committee
Commerce Committee
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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 893 2026
1 A bill to be entitled
2 An act relating to trust fund interest for purposes
3 approved by the Supreme Court; creating s. 655.98,
4 F.S.; authorizing financial institutions to hold funds
5 in specified trust accounts used for specified
6 purposes expressly authorized by Supreme Court rule;
7 requiring certain entities to use interest and
8 dividends for specified purposes; requiring certain
9 financial institutions to pay specified interest or
10 dividends; providing an effective date.
11
12 Be It Enacted by the Legislature of the State of Florida:
13
14 Section 1. Section 655.98 Florida Statutes, is created to
15 read:
16 655.98 Lawyer or law firm trust account interest rates.—A
17 financial institution may hold funds in an interest-bearing
18 trust account of a lawyer or law firm in which the institution
19 remits interest or dividends on the balance of the deposited
20 funds to an entity established by the Supreme Court. Such entity
21 shall use the interest or dividends to provide or facilitate the
22 provision of free legal services to low-income individuals or
23 for such other purposes as may be expressly authorized by rule
24 of the Supreme Court. If the financial institution holds such an
25 account, it must pay, net of all fees and charges assessed by
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hb893-00
F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
HB 893 2026
26 the financial institution, interest or dividends at the Wall
27 Street Journal prime rate in effect on the first business day of
28 each month, less 300 basis points, with a floor of 0.25 percent
29 and a ceiling of 1.5 percent.
30 Section 2. This act shall take effect July 1, 2026.
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hb893-00
HB 895
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 895 COMPANION BILL: SB 786 (Berman)
TITLE: Trustee Settlement and Discharge LINKED BILLS: None
SPONSOR(S): Hodgers and Fabricio RELATED BILLS: None
Committee References
Civil Justice & Claims Insurance & Banking Judiciary
17 Y, 0 N
SUMMARY
Effect of the Bill:
HB 895 creates s. 736.10081, F.S., within the Florida Trust Code, to establish a summary procedure for trustee
liability and claims discharge in non-adversarial irrevocable trust administrations where the trustee has
substantially complied with certain trustee duties, thereby negating the need for judicial process to achieve such a
discharge. Under the bill, a trustee wishing to utilize the summary procedure must provide each qualified
beneficiary with a trust disclosure document, and receipt by the trustee of a timely written objection to the use of
the summary procedure would render the procedure inapplicable to the particular trust’s administration. However,
if the trustee does not receive a timely written objection, the trustee is discharged upon completion of specified
actions and is discharged from all liability and claims arising from any matter adequately disclosed in the trust
disclosure document with the same effect as if the court had entered a final order approving that act or omission.
Further, the bill:
Applies to all trusts that are irrevocable or become irrevocable on or after the bill’s effective date.
Provides an effective date of upon becoming a law.
Fiscal or Economic Impact:
The bill may have an indeterminate fiscal impact on the state court system and on the private sector.
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ANALYSIS
EFFECT OF THE BILL:
HB 895 creates s. 736.10081, F.S., within the Florida Trust Code, to establish a cost-effective summary procedure
for trustee liability discharge in non-adversarial irrevocable trust administrations where the trustee has
substantially complied with certain trustee duties. Once such a discharge is obtained, all claims or causes of action
against the trustee pertaining to matters properly disclosed in a trust disclosure document would generally be
barred. (Section 1)
Qualifying Trustees
Under the bill, a trustee who is in substantial compliance with the duty to inform and account may obtain a
settlement of his or her accounts and be discharged when either of the following occurs after six months from the
date of the trustee’s acceptance of the trusteeship:
The trust terminates.
A trustee resigns or is removed from the trust.
STORAGE NAME: h0895b.IBS
DATE: 1/16/2026
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In other words, qualifying trustees may initiate the summary procedure for trustee liability and claims discharge,
which procedure, when applied, eliminates the need to utilize the often costly, time-intensive processes to obtain
such a discharge available under current law. (Section 1)
Trust Disclosure Document Required
The bill requires a trustee seeking to use the summary procedure to send to the trust’s qualified beneficiaries and
any co-trustees, along with the immediate successor trustee if the trust is not terminating, a trust disclosure
document containing all of the following information:
The name, mailing address, telephone number, and e-mail address of the trustee seeking discharge.
A plan of distribution for the trust’s remaining assets, which includes all of the following:
o A schedule of the assets reasonably anticipated to be disbursed or distributed by the trustee.
o The amount of any debts, expenses, and taxes to be paid by the trustee.
o Any reasonable reserve to be held by the trustee.
If the trustee’s duty to account has not been waived, a trust accounting for the period for which an
accounting has not been previously provided to the trust’s qualified beneficiaries.
A statement that the trust has terminated or that the trustee has resigned or has been removed.
A notice with substantially the following language in at least 12-point type:
NOTICE: Any claim or cause of action you might have against the trustee
arising from any matter disclosed in a trust disclosure document may be
barred unless a written statement objecting is received by the trustee from
you within 60 days after your receipt of this trust disclosure document and
notice. If you have questions, please consult your attorney.
The trustee must also send the trust disclosure document to any other person who the trustee reasonably believes
would be affected by such document, and the document and any objections must generally be sent in compliance
with the notice requirements of s. 736.0109, F.S. However, under the bill, s. 736.0109(3), F.S., requiring written
authorization from the recipient before a document may be sent solely by posting to an electronic account or
website, along with the sending of a separate notice to the recipient whenever a notice is posted to the account or
website, does not apply. Practically speaking, this means that:
The trust disclosure document and any objections may be sent in any manner reasonably suitable under
the circumstances and likely to result in receipt of the notice or document; and
Notice or the sending of a document:
o Is complete when sent; and
o May be waived by the person to be notified or to whom the document is to be sent. (Section 1)
Objections and Discharge
The summary procedure created by the bill does not apply if the trustee receives a written objection within 60
days after sending the trust disclosure document; such an objection does not need to state the grounds for the
objection or be in any particular form. However, if the trustee does not receive a timely written objection, the
trustee is discharged upon completion of all distributions or transfers in accordance with the plan of distribution
and is discharged from all liability and claims arising from any matter adequately disclosed in the trust disclosure
document, including any claim that the trustee failed to inform and account, with the same effect as if the court had
entered a final order approving that act or omission; in other words, all claims and causes of action pertaining to
such matters are generally thereafter barred.
Further, under the bill:
A waiver of the right to object is treated as the expiration of the 60-day period without objection.
The summary process created by the bill is in addition to, and not a replacement of, rights of a trustee to
otherwise settle the trustee’s accounts. (Section 1)
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Application and Effective Date
The bill:
Applies to all trusts that are irrevocable or become irrevocable on or after the bill’s effective date. (Section
2)
The bill provides an effective date of upon becoming a law. (Section 3)
FISCAL OR ECONOMIC IMPACT:
STATE GOVERNMENT:
The bill may have an indeterminate fiscal impact on state government to the extent that it reduces the number of
trustees required to obtain a discharge through judicial process, thereby reducing the burden on the state court
system.
PRIVATE SECTOR:
The bill may have an indeterminate fiscal impact on the private sector to the extent that use of the summary
procedure created by the bill reduces the costs associated with trustee discharge.
RELEVANT INFORMATION
SUBJECT OVERVIEW:
Generally speaking, a trust is a relationship in which one party (the “settlor”)1 gives another party (the “trustee”)2
the right to hold title to the settlor’s assets for a third party’s benefit (the “beneficiary”).3 A trust may be created
and take effect during a settlor’s lifetime (“a living trust”) or may be created by a will or other disposition and take
effect when the settlor dies (“testamentary trust”).4 A trust may also be revocable (so that the terms may be
changed at any time before the settlor’s death) or irrevocable (so that the terms cannot be modified after the
trust’s creation absent a court order upon the consent of the beneficiaries or where the trust’s purposes have
become frustrated or illegal).5
Most Florida trusts are generally governed by the Florida Trust Code, codified in ch. 736, F.S. However, additional
provisions of Florida law may apply if the trust has special attributes, and, importantly, the terms of the trust
govern over Trust Code provisions unless the Trust Code provides otherwise.6
Notice Requirements
Notice to a person or the sending of a document under the Trust Code must be accomplished in a manner
reasonably suitable under the circumstances and likely to result in receipt of the notice document.7 Permissible
methods of notice or for sending a document include fist-class mail, personal delivery, delivery to the person’s last
known place of residence or business, a properly directed facsimile or other electronic message, including e-mail;
or posting on a secure electronic account or website in accordance with statutory requirements.8 Further:
1 “Settlor” means a person, including a testator, who creates or contributes property to a trust. S. 736.0103(18), F.S.
2 A settlor can designate a trustee, and successor trustees, in the trust document itself; however, where there is no designated trustee, or if
the designated trustee is unable or unwilling to accept the trusteeship, the qualified beneficiaries may select a trustee by unanimous
agreement, or else a court may appoint a trustee. S. 736.0704, F.S.
3 A “beneficiary” may have a present or future beneficial interest in a trust, which interest may be vested or contingent. S. 736.0103(4), F.S.
4 See “inter vivos trust” and “testamentary trust,” Black's Law Dictionary (11th ed. 2019); s. 736.0401, F.S.
5 Greg Depersio, Investopedia (Apr. 30, 2023), Revocable Trust v. Irrevocable Trust: What’s the Difference,
https://www.investopedia.com/ask/answers/071615/what-difference-between-revocable-trust-and-living-trust.asp (last visited Jan. 14,
2026).
6 Ss. 736.0102 and 736.0105, F.S.
7 S. 736.0109, F.S.
8 Under the Trust Code, a document that is sent solely by posting on an electronic account or website is not deemed sent unless the sender
complies with certain statutory requirements, including the signing of a written notice by the recipient and the sending of a separate notice
to the recipient when a document is posted on the electronic account or website. Id.
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Notice or a document which the Trust Code otherwise requires to be given or sent need not be provided to
a person whose identity or location is unknown to and not reasonably ascertainable by the trustee.9
Notice or the sending of a document under the Trust Code is complete when sent.10
Notice or the sending of a document may be waived by the person to be notified or to whom the document
is to be sent.11
Trust Creation
Under Florida law, a trust is created only if certain conditions are met. Specifically, to create a trust:
The settlor must have capacity to create a trust;12
The settlor must indicate an intent to create a trust;
The trust must have a definite beneficiary,13 or else be a charitable trust,14 a trust for the care of an animal,15
or a trust for a non-charitable purpose;16
The trustee must have duties to perform;17 and
The same person cannot be the sole trustee and sole beneficiary.18
Further, a trust may be created only to the extent that its purposes are lawful, not contrary to public policy, and
possible to achieve.19
Trustee Acceptance
Generally speaking, a person designated as trustee accepts the trusteeship:
By substantially complying with an acceptance method provided for in the trust’s terms; or
If the trust’s terms do not provide for an acceptance method, or if any method provided is not expressly
made exclusive, by accepting delivery of the trust property, exercising powers or performing duties as
trustee, or otherwise indicating trusteeship acceptance.20
However, a person designated as trustee who has not accepted the trusteeship may decline it, and a designated
trustee who does not accept the trusteeship within a reasonable time after knowing of the designation is deemed
to have declined the trusteeship.21 Further, a person designated as trustee may, without accepting the trusteeship:
Act to preserve the trust property if, within a reasonable time after acting, the person sends to the
beneficiaries a statement declining the trusteeship.22
Inspect or investigate trust property to determine potential liability under environmental or other law or
for any other purpose.23
9 Id.
10 Id.
11 Id.
12 The capacity required to create, amend, revoke, or add property to a trust, or to direct the actions of the trustee, is generally the same as
that required to make a will. In other words, the settlor must be at least 18 years of age and of sound mind, meaning that he or she
understands the nature and extent of the property placed in trust, the identities of the beneficiaries, and the effect of the disposition. Ss.
732.501 and 736.0601, F.S.
13 A beneficiary is “definite” if the beneficiary can be ascertained now or in the future, subject to any applicable rule against perpetuities. S.
736.0402(2), F.S.
14 A “charitable trust” is a trust created for charitable purposes, which may include poverty relief; the advancement of the arts, science,
education, or religion; or the promotion of health, governmental, or municipal purposes. S. 736.0405, F.S.
15 A trust may be created for the care of an animal alive during the settlor’s lifetime. Such a trust terminates on the animal’s death or, if the
trust was created to provide for the care of more than one qualifying animal, on the death of the last surviving animal. S. 736.0408, F.S.
16 A trust may be created for a non-charitable purpose without a definite or definitely ascertainable beneficiary. Such a trust may not be
enforced for more than 1,000 years. S. 736.0409, F.S.
17 S. 736.0801, F.S.
18 S. 736.0402(1), F.S.
19 S. 736.0404, F.S.
20 S. 736.0701, F.S.
21 Id.
22 Id.
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Trustee Duties
After accepting a trusteeship, the trustee must generally comply with the trustee duties set out in the trust
instrument. The Trust Code also confers a number of duties on trustees, intended to ensure that trustees put the
beneficiaries’ interests before their own interests and act fairly and in good faith to preserve and protect the trust’s
assets for the beneficiaries’ benefit. Specifically, a trustee’s duties under the Trust Code include:
Administering the trust in good faith – that is, managing and distributing trust assets24 – in accordance with
the trust’s terms and purposes and the beneficiaries’ interests, and with the Trust Code;25
Controlling and protecting trust property;26 and
Keeping clear, distinct, and accurate records.27
A trustee must also keep the trust’s beneficiaries reasonably informed of the trust and its administration, which, in
the case of an irrevocable trust, is generally accomplished through a trust accounting.28 Under the Trust Code, a
trust accounting must be a reasonably understandable report covering the time from the date of the last
accounting or, if none, from the date on which the trustee became accountable, that adequately discloses specified
information relating to trust assets and financials.29 The trustee must generally provide such a trust accounting to
each beneficiary at least annually and, generally speaking, upon trust termination or trustee discharge.30
Breach of Trust
Where a trustee violates a duty owed to a beneficiary, the trustee commits a breach of trust.31 To remedy a breach
of trust, a court may, among other things:
Compel the trustee to perform the trustee’s duties;
Enjoin the trustee from committing a breach of trust;
Compel the trustee to pay money or restore property;
Suspend or remove the trustee;
Reduce or deny compensation owed to the trustee; or
Void a trustee’s act.32
However, a court typically cannot remedy a breach of trust unless a beneficiary brings a breach of trust action
against the trustee within a specified time period after learning about the breach, which may occur when the
beneficiary receives a trust disclosure document; such a document is a trust accounting or any other written report
from the trustee or a trust director to the beneficiaries, the purpose of which is to adequately disclose a matter to
the trust’s beneficiaries to allow them to know or reasonably ascertain whether they have any kind of claim against
the trustee for breach of trust related to the matter.33 More specifically, under the statutory limitations period, a
beneficiary is barred from bringing a breach of trust action against a trustee with respect to a matter that was
adequately disclosed in a trust disclosure document unless the action is brought within six months after receipt of
such document or a limitation notice34 applicable to that document,35 whichever is received later.36 Further, a
23 Id.
24 The method by which a trustee distributes the trust’s assets is sometimes referred to as a “plan of distribution.” See generally ch. 736, F.S.
25 S. 736.0801, F.S.
26 S. 736.0809, F.S.
27 S. 736.0810, F.S.
28 S. 736.0813, F.S.
29 Id.
30 Id.
31 S. 736.1001, F.S.
32 Id.
33 S. 736.1008(4)(c), F.S.
34 A limitation notice is a written notice from the trustee or a trust director that a beneficiary’s breach of trust action based on a matter
adequately disclosed in a trust disclosure document may be barred if it is not brought within six months after receipt of the trust disclosure
document or the limitation notice. S. 736.1008(4)(a), F.S.
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trustee is not liable to a beneficiary for a breach of trust if the beneficiary consented to the conduct resulting in the
breach, released the trustee from liability for the breach, or ratified the transaction constituting the breach, unless:
The consent, release, or ratification was induced by the trustee’s improper conduct; or
At the time of the consent, release, or ratification, the beneficiary did not know of the beneficiary’s rights or
the material facts relating to the breach.37
A claim by a successor trustee or other person acting on behalf of the trust against a prior trustee is barred to the
same extent that the claim would be barred if brought by the beneficiary whose interests are represented by the
successor trustee or other person acting on behalf of the trust.38
Trustee Resignation or Removal
Trustee Resignation
A trustee may resign in accordance with the procedure set forth in the trust instrument and upon notice to the co-
trustees or, if none, to the successor trustee who has accepted the appointment, or, if none, to the person or
persons who have the authority to appoint a successor trustee. Notwithstanding any provision of the trust’s terms,
a trustee may also resign:
Upon at least 30 days’ notice to the beneficiaries, the grantor, if living, and all co-trustees; or
With court approval.39
Trustee Removal
The grantor, a co-trustee, or a beneficiary may ask the court to remove a trustee, or the court may remove a trustee
on its own initiative.40 In either instance, the court may remove a trustee if:
The trustee has committed a serious breach of trust;
The lack of cooperation among co-trustees substantially impairs the trust’s administration;
Due to the unfitness, unwillingness, or persistent failure of the trustee to administer the trust effectively,
the court determines that the trustee’s removal best serves the beneficiaries’ interests; or
Circumstances have changed substantially or all of the beneficiaries request removal; the court finds that
removal of the trustee best serves the beneficiaries’ interests and is not inconsistent with a material
purpose of the trust; and a suitable co-trustee or successor trustee is available.41
35 A limitation notice applies to a trust disclosure document when the notice is: contained as a part of the trust disclosure document or as
part of another trust disclosure document received within one year before the receipt of the latter trust disclosure document; accompanied
concurrently by the trust disclosure document or by another trust disclosure document that was received within one year of the latter trust
disclosure document; delivered separately within ten days after delivery of the trust disclosure document or another trust disclosure
document that was received within one year before receipt of the latter trust disclosure document; or received more than ten days after the
delivery of the trust disclosure document, but only if the limitation notice references the trust disclosure document and meets other
conditions. S. 736.10089(5), F.S.
36 S. 736.1008(4)(c), F.S.
37 S. 736.1012, F.S.
38 S. 736.10085, F.S.
39 S. 736.0705, F.S.
40 S. 736.0706, F.S.
41 Id.
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Trust Revocation or Termination
Trust Revocation
Unless a trust’s terms expressly provide that a trust is irrevocable, the grantor may generally revoke the trust:
By substantial compliance with a method for trust revocation provided in the trust’s terms; or
If the trust’s terms do not provide such a method:
o By a later will or codicil that expressly refers to the trust or specifically devises property that
would otherwise have passed according to the trust’s terms; or
o Any other method manifesting clear and convincing evidence of the grantor’s intent. 42
Trust Termination
An irrevocable trust created after January 1, 2001, may terminate without court involvement upon the unanimous
agreement of the trustee and all beneficiaries.43 Alternatively, an irrevocable trust may terminate by court order
upon the petition of the trustee or a beneficiary if:
The trust’s purposes have been fulfilled or have become illegal, impossible, wasteful, or impracticable to
fulfill;
Because of circumstances not anticipated by the settlor, compliance with the trust’s terms would defeat or
substantially impair the accomplishment of a material purpose of the trust; or
A material purpose of the trust no longer exists.44
Further, an irrevocable trust may terminate:
At the trustee’s initiative and without court involvement if the value of the trust’s assets falls below
$50,000 and is insufficient to justify the cost of trust administration.45
By court order if the trust was created or amended as the result of fraud, duress, mistake, or undue
influence.46
By operation of law if the trust’s legal and equitable interests merge – that is, when the sole trustee
becomes the sole beneficiary, absent a statutory exception.47
Trustee Discharge
Neither the trustee’s resignation or removal, nor the trust’s revocation or termination, alone discharges or affects
the resigning trustee’s liability for acts or omissions taken during the trusteeship; instead, a trustee generally
remains liable for such acts or omissions unless and until the trustee is discharged from such liability. Under
current law, a trustee may obtain such a discharge if the trust’s beneficiaries waive the provision of a final trust
accounting and provide the trustee with a liability release.48 Where the beneficiaries do not waive the final trust
accounting, however, a trustee must provide such accounting to the qualified beneficiaries and obtain from each a
written approval thereof.49 Alternatively, the trustee may file a lawsuit asking the court to approve the accounting,
which lawsuit the trustee must initiate by filing a complaint with the accounting attached thereto and serving
copies thereof on each beneficiary.50
Critics of the discharge procedure in current law allege that, in many instances, particularly in non-adversarial
irrevocable trust administrations where the trustee substantially complied with the duty to inform and account
42 S. 736.0602, F.S.
43 S. 736.0412, F.S.
44 S. 736.04113, F.S.
45 S. 736.0414, F.S.
46 S. 736.0406, F.S.
47 Axtell v. Coons, 89 So. 419 (Fla. 1921).
48 S.736.0813, F.S.
49 Id.
50 Id.
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during his or her trusteeship, the costs to the trust (and ultimately to the beneficiaries) associated with obtaining a
discharge absent a final accounting waiver and release outweigh the beneficiaries’ need for a full, final
accounting.51 However, it is the trustee that often insists upon following these discharge procedures where the
trustee does not receive a final accounting waiver and release in order to obtain as full and complete a discharge
from liability as possible.52
BILL HISTORY
STAFF
DIRECTOR/ ANALYSIS
COMMITTEE REFERENCE ACTION DATE POLICY CHIEF PREPARED BY
Civil Justice & Claims 17 Y, 0 N 1/14/2026 Jones Mawn
Subcommittee
Insurance & Banking Brackett Veigle
Subcommittee
Judiciary Committee
51 Real Property, Probate, and Trust Law Section of the Florida Bar, White Paper: Statutory Settlement of Accounts and Discharge of Trustee
(Jan. 2026).
52 Id.
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F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
HB 895 2026
1 A bill to be entitled
2 An act relating to trustee settlement and discharge;
3 creating s. 736.10081, F.S.; authorizing a trustee to
4 obtain a settlement of his or her accounts and be
5 discharged under certain circumstances; requiring a
6 trustee seeking settlement and discharge to send a
7 trust disclosure document to specified persons;
8 requiring that certain information be included in the
9 trust disclosure document; requiring that the trust
10 disclosure document and any objections be sent with a
11 certain notice; providing applicability; providing
12 that an objection need not state the grounds for the
13 objection; providing that a trustee is discharged upon
14 completion of distributions or transfers if no timely
15 written objections are received and is discharged from
16 all liability and claims arising out of any matter
17 disclosed in the trust disclosure document; providing
18 that a waiver of the right to object is treated as an
19 expiration of the timeframe to object; providing
20 construction; providing applicability; providing an
21 effective date.
22
23 Be It Enacted by the Legislature of the State of Florida:
24
25 Section 1. Section 736.10081, Florida Statutes, is created
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26 to read:
27 736.10081 Settlement and discharge of a trustee;
28 disclosure; objections.—
29 (1) A trustee who is in substantial compliance with the
30 duty to inform and account under s. 736.0813 may obtain a
31 settlement of his or her accounts and be discharged pursuant to
32 this section when either of the following occurs after 6 months
33 after the trustee's acceptance:
34 (a) The trust terminates.
35 (b) A trustee resigns or is removed from the trust.
36 (2) A trustee seeking settlement and discharge pursuant to
37 this section must send to the trust's qualified beneficiaries
38 and any cotrustee, and the immediate successor trustee if the
39 trust is not terminating, a trust disclosure document as defined
40 in s. 736.1008(4) which contains all of the following:
41 (a) The name, mailing address, telephone number, and e-
42 mail address of the trustee seeking discharge.
43 (b) A plan of distribution which includes all of the
44 following:
45 1. A schedule of the assets reasonably anticipated to be
46 disbursed or distributed by the trustee.
47 2. The amount of any debts, expenses, and taxes to be paid
48 by the trustee.
49 3. Any reasonable reserve to be held by the trustee.
50 (c) If the trustee's duty to account has not been waived,
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51 a trust accounting as defined in s. 736.1008(4) for the period
52 for which an accounting has not been previously provided to the
53 qualified beneficiaries of the trust.
54 (d) A statement that the trust has terminated or that the
55 trustee has resigned or has been removed.
56 (e) A notice with substantially the following language in
57 at least 12-point type:
58
59 "NOTICE: Any claim or cause of action you might have
60 against the trustee arising from any matter disclosed
61 in a trust disclosure document may be barred unless a
62 written statement objecting is received by the trustee
63 from you within 60 days after your receipt of this
64 trust disclosure document and notice. If you have
65 questions, please consult your attorney."
66
67 (3) The trustee shall also send the trust disclosure
68 document described in subsection (2) to any other person who the
69 trustee reasonably believes would be affected by the trust
70 disclosure document. The trust disclosure document and any
71 objections must be sent with the notice requirements of s.
72 736.0109, except that s. 736.0109(3) does not apply.
73 (4) This section does not apply if the trustee receives a
74 written objection within 60 days after sending the trust
75 disclosure document. An objection does not need to state the
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76 grounds for the objection or be in any particular form.
77 (5) If the trustee does not receive a timely written
78 objection, the trustee is discharged upon completion of all
79 distributions or transfers in accordance with the plan of
80 distribution and is discharged from all liability and claims
81 arising from any matter adequately disclosed in the trust
82 disclosure document, including any claim that the trustee failed
83 to inform and account pursuant to s. 736.0813, with the same
84 effect as if the court had entered a final order approving that
85 act or omission.
86 (6) A waiver of the right to object pursuant to this
87 section is treated as the expiration of the 60-day period
88 without objection.
89 (7) This section is in addition to, and not a replacement
90 of, rights of a trustee to otherwise settle the trustee's
91 accounts.
92 Section 2. This act applies to all trusts that are
93 irrevocable or become irrevocable on or after the effective date
94 of this act.
95 Section 3. This act shall take effect upon becoming a law.
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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 1399 COMPANION BILL: None
TITLE: Property Insurance Affiliates LINKED BILLS: None
SPONSOR(S): Berfield RELATED BILLS: None
Committee References
Insurance & Banking Commerce
SUMMARY
Effect of the Bill:
The bill increases regulatory oversight of financial transactions between property insurers and their affiliates.
Specifically, the bill requires:
Property insurers to submit documentation to the Office of Insurance Regulation (OIR) demonstrating that
all payments to affiliates are fair and reasonable. The bill also provides factors for OIR to determine
whether those transactions are fair and reasonable.
OIR to review and approve dividends and pledges of capitals or assets from property insurers to their
affiliates.
All agreements between property insurers and their affiliates to include a termination clause and provides
that they may not exceed three years without review and reapproval by OIR.
Property insurers to notify OIR at least 30 days before pledging capital or assets to an affiliate, and OIR may
prohibit those arrangements if not in the insurer’s best interest.
Affiliates of property insurers to register with OIR before doing business in the state.
The bill gives OIR the authority to:
Require affiliates to refund improper transfers back to property insurers.
Consider transactions between property insurers and affiliates as part of the rate review process.
Impose penalties for violations of the bill.
Fiscal or Economic Impact:
The bill may have an indeterminate fiscal impact on state government and the private sector.
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ANALYSIS
EFFECT OF THE BILL:
Affiliate Transactions
The bill creates a framework for the oversight of affiliates and their transactions with property insurers. (Section
1).
The bill defines the term “affiliate” as an entity that engages in the business of insurance that controls or is
controlled by an insurer through ownership of voting securities, shared management, or participation in
management. The definition also explicitly includes attorneys in fact and managing general agents (MGAs).
(Sections 1, 2, and 3).
The bill requires property insurers to submit documentation to the Office of Insurance Regulation (OIR)
demonstrating that all fees, commissions, or payments to affiliates are fair and reasonable. OIR must evaluate
whether the transactions are fair and reasonable based on the following factors:
the actual cost of each service being provided by the affiliate;
STORAGE NAME: h1399.IBS
DATE: 1/16/2026
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the relative financial condition of the property insurer and the affiliate;
the level of debt and how the debt is serviced;
the amount of the dividends paid by the property insurer and the affiliate and for what purpose;
whether the terms of the written contract benefit the property insurer and are in the best interest of the
policyholders or subscribers; and
any other information the office reasonably requires in making the determination. (Section 1).
The bill requires all contracts between property insurers and their affiliates to include a termination clause that
automatically ends the contract after three years. The contract may be extended, subject to approval by OIR.
(Section 1).
The bill grants OIR the authority to restrict fund transfers from all or specific property insurers to affiliates during
a declared state of emergency. Any order restricting transfer of funds between property insurers and their
affiliates may not exceed 60 days, but may be extended by OIR. (Section 1).
The bill provides that property insurers may not issue dividends to their affiliates without prior approval by OIR.
Dividends must be fair and reasonable, and they may not be made for the purpose of manipulating the property
insurer’s financial position. Additionally, a property insurer may only issue dividends if it is solvent. (Section 2).
The bill requires property insurers to provide notice to OIR at least 30 days before a pledge of capital or assets to
an affiliate for a loan or financial obligation. The bill grants OIR the authority to reject the pledge if not in the best
interest of the financial condition of the property insurer. (Section 2).
Registration
The bill creates a registration process for property insurance affiliates. Before transacting the business of
insurance in the state, an affiliate of a property insurer must register with OIR. As part of the application for
registration, the affiliate must submit the following information and documents to OIR:
a statement of duties the affiliate is expected to perform on behalf of the property insurer, and the lines of
insurance for which the applicant is to be authorized to act;
all basic organizational documents of the affiliate;
the names, addresses, official positions, and professional qualifications of the individuals employed or
retained by the affiliate who are responsible for managing the affairs of the property insurer;
an independent background report detailing the involvement of the individuals employed or retained by
the affiliate who are responsible for managing the affairs of the property insurer;
a self-disclosure of any administrative, civil, or criminal complaints related to the insurance laws of any
state. (Section 3).
Affiliates must renew the registration annually. OIR may not charge a fee for the registration or the renewal of the
registration. (Section 3).
The bill provides grounds for denial of a registration, as well as revocation, suspension, or nonrenewal of a
registration, as well as the imposition of fines of up to $10,000. These grounds include:
any cause for which OIR would have denied the application for registration if the office had known about it;
violation of any provision of the Florida Insurance Code;
using the affiliate registration to circumvent any of the requirements or prohibitions of the Florida
Insurance Code;
any of the individuals who are responsible for managing the affairs of the affiliate being found guilty or
pleading nolo contendere to a felony in this state or any other state relating to the business of insurance;
knowingly employing an individual in a managerial capacity or in a capacity dealing with the public who is
under an order of revocation by either OIR or the Department of Financial Services (DFS);
engaging in unfair methods of competition or in unfair or deceptive acts or practices while conducting
business under the affiliate registration;
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knowingly aiding, assisting, procuring, advising, or abetting any person in the violation of or in the attempt
to violate a provision of the Florida Insurance Code or any order of OIR, DFS, or the Financial Services
Commission (FSC);
receiving a fee, commission, or other financial consideration or payment that violates the requirements of
the bill;
failing to renew the registration annually; and
failing to refund to an insurer a fee, commission, or other financial consideration or payment as required by
the bill. (Section 3).
The bill makes it a first degree misdemeanor to do business as an affiliate without a registration for the first
offense. For a second or subsequent offense, acting as an affiliate without a registration is a third degree felony.
(Section 3).
The registration requirement for affiliates of property insurers goes into effect on January 1, 2027. (Section 3).
Rate Review
The bill requires OIR to consider the profits, revenues, and investment income of any affiliate which are
attributable to materially related to the insurer’s business in this state as part of property insurers’ rate filings.
Additionally, OIR may deem a property insurer’s filed rates excessive if they do not reflect the profits, revenues,
and investment income of any affiliate which are attributable or materially related to the insurer’s business in the
state. (Section 4).
Enforcement Authority
The bill grants OIR the authority to impose penalties for violations of the bill’s requirements, including
administrative fines of up to $10,000 for each violation, as well as suspension or revocation of the insurer’s license.
Additionally, if OIR determines that a payment or dividend made by a property insurer to an affiliate is not fair and
reasonable, the affiliate must refund the improper payment to the insurer. (Sections 1 and 2).
Except as otherwise provided, the bill provides an effective date of July 1, 2026. (Section 5).
RULEMAKING:
The bill requires OIR to adopt forms, processes, and rules necessary to implement OIR’s oversight of transactions,
dividends, and pledges of capital or assets between property insurers and their affiliates. (Sections 1 and 2). OIR is
also granted rulemaking authority to adopt forms, processes, and rules for affiliates to obtain and renew their
registration and for the regulation, investigation, and discipline of affiliates. (Section 3).
Lawmaking is a legislative power; however, the Legislature may delegate a portion of such power to executive
branch agencies to create rules that have the force of law. To exercise this delegated power, an agency must
have a grant of rulemaking authority and a law to implement.
FISCAL OR ECONOMIC IMPACT:
STATE GOVERNMENT:
There is an indeterminate fiscal impact to state government. To the extent that the bill requires OIR to oversee
financial transactions between property insurers and their affiliates to ensure they are fair and reasonable, review
contract renewals, proposed dividends, and process applications for registrations there may be an indeterminate
fiscal impact to the office.
PRIVATE SECTOR:
There may be an indeterminate fiscal impact to property insurers, who have affiliates, to ensure compliance with
the provisions of the bill.
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RELEVANT INFORMATION
SUBJECT OVERVIEW:
Affiliates
Affiliates are defined in the Florida Insurance code as entities that exercise control over or are directly or indirectly
controlled by the insurer through:1
equity ownership of voting securities;
common managerial control; or
collusive participation by the management of the insurer and affiliate in the management of the insurer or
the affiliate.
Payments to Affiliates
Each insurer doing business in Florida that pays a fee, commission, or other financial consideration or payment to
any affiliate is required to provide, upon request, any information OIR deems necessary. The fee, commission, or
other financial consideration or payment to any affiliate must be fair and reasonable.2
In determining whether the fee, commission, or other financial consideration or payment is fair and reasonable,
current law does not dictate which factors OIR must consider and only explicitly lists the actual cost of the service
being provided.3
Affiliate Fee Analysis Draft Report
In February of 2025, the Tampa Bay Times published a draft report commissioned by OIR analyzing fees paid by
insurers to their affiliates during the 2017-2019 period.4 The draft report claimed that while the 53 insurers
assessed reported $61 million in net income, their affiliates reported $14 billion in income.5
The draft report included the following observations and recommendations: 6
Requiring all managing general agent (MGA) agreements to be reviewed and updated. This
recommendation stemmed from some agreements being more than a decade old and not including the
appropriate language to address data security, access, ownership, and control – particularly in the event of
regulatory proceedings. Additionally, some of the reviewed contracts included premium-based
compensation rates exceeding 25%, and the parties had not revisited or reviewed those provisions since
the contracts were signed.
Requiring insurers to provide documentation and financial projections that demonstrate that the proposed
fees in the agreement are fair and reasonable to the insurer.
The report flagged fee forgiveness and capital contributions and noted that while the MGA model in Florida
is a common way for insurers to attract capital, it can also be used to circumvent insurer dividend
requirements.
The report noted that several insurers did not provide all the information necessary to assess whether fees
paid to MGAs and other affiliates were reasonable, therefore it recommended to OIR conducting limited
scope examinations to review these transactions.
1 S. 624.10(1), F.S.
2 S. 624.424(13), F.S.
3 Id.
4 Lawrence Mower, Florida Insurance Companies Steered Money to Investors while Claiming Losses, Study Says, Tampa Bay
Times, (Feb. 22, 2025), https://www.tampabay.com/news/florida-politics/2025/02/22/florida-insurance-profits-desantis-
regulation-investors-crisis/ (last visited Jan. 9, 2026).
5 Jan Moenck, Affiliated Fee Analysis Executive Summary, (Mar. 31, 2022),
https://www.documentcloud.org/documents/25540452-affiliated-fee-analysis-executive-summary/ (last visited Jan. 9,
2026), at 4.
6 Id. at 5-6.
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The draft report used guidance from OIR rules in the Florida Administrative Code and from the National
Association of Insurance Commissioners (NAIC) Financial Analysis Handbook to assess the fairness and
reasonableness of fees paid by insurers to affiliates, but noted that Florida “does not have specific statutory
guidance” defining the “fair and reasonable” standard for payments to affiliates.7
Managing General Agents (MGAs)
An MGA is a specialized type of insurance affiliate that has underwriting authority from an insurer.8 MGAs can
perform certain functions that insurers typically handle, including binding coverage, underwriting and pricing,
agent appointments, and claims adjusting and settlement.9 An MGA may be an affiliate of an insurer.
A currently effective producer license and an MGA appointment is required to perform MGA services.10 Insurers
are required to notify DFS and OIR in writing within 30 days of appointing or terminating an MGA.11 This notice
must include:12
a statement of duties the MGA applicant is expected to perform for the insurer;
the lines of insurance for which the MGA applicant will be authorized to act; and
any other information DFS or OIR may request from the insurer.
Insurers are required to review their books and records quarterly to determine if any of their producers have
become a managing general agent.13
OIR is responsible for examining the affairs, transactions, accounts, records, and assets of each insurer that holds a
certificate of authority to transact insurance business in Florida.14 OIR’s examination authority extends to MGAs.15
As part of the examination process, all persons being examined must make available to OIR the accounts, records,
documents, files, information, assets, and matters in their possession or control that relate to the subject of the
examination.16
As part of an examination, OIR reviews contracts between insurers and MGAs, so that it can determine how much
an insurer is paying its MGA and what services the insurer is receiving for the fee it pays. The scope of the
examination of an insurer’s affiliates in a holding company system is limited to information reasonably necessary
to ascertain an insurer’s financial condition.
Attorneys in Fact
A reciprocal insurance exchange is an insurance enterprise where subscribers enter into direct agreements with
each other, pledging to contribute proportionally to cover losses experienced by fellow members.17 The customers,
known as subscribers, sign an agreement authorizing an agent to act as their attorney in fact for the purpose of
insurance.18 The attorney in fact is usually a management company, and they are authorized to sign contracts on
behalf of all subscribers.19
7 Id. at 1-2.
8 S. 626.015(16)(a), F.S., see also, International Risk Management Institute, https://www.irmi.com/term/insurance-
definitions/managinggeneral-agent (last visited Jan. 9, 2026).
9 See supra note 2.
10 S. 626.112(5), F.S.
11 S. 626.7454(5), F.S.
12 Id.
13 S. 626.7454(6), F.S.
14 S. 624.316(1)(a), F.S.
15 Id. S. 626.7452, F.S.
16 S. 624.318(2), F.S.
17 Andrew Verstein, Enterprise Without Entities, 116 MICH. L. REV. 247, 249 (2017),
https://repository.law.umich.edu/cgi/viewcontent.cgi?params=/context/mlr/article/1672/&path_info=Enterprise_Without_
Entities_revised_first_page.pdf.
18 Id. at 264.
19 Id. at 251.
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Office of Insurance Regulation
The Office of Insurance Regulation (OIR) regulates all activities relating to insurers and other risk bearing entities,
including licensing, rates, policy forms, marked conduct, claims, issuance of certificates of authority, solvency,
viatical settlements, premium financing, and administrative supervision.20 OIR is responsible for examining the
affairs, transactions, accounts, records, and assets of each authorized insurer in the state.21
As part of that process, insurers must make available all records relating to the subject of the examination.22 OIR is
also authorized to carry out market conduct examinations to determine compliance with the Florida Insurance
Code.23
BILL HISTORY
STAFF
DIRECTOR/ ANALYSIS
COMMITTEE REFERENCE ACTION DATE POLICY CHIEF PREPARED BY
Insurance & Banking Brackett Miguez
Subcommittee
Commerce Committee
20 S. 20.121(3)(a), F.S.
21 S. 624.316(1)(a), F.S.
22 S. 624.318(2), F.S.
23 S. 624.3161, F.S.
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F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
HB 1399 2026
1 A bill to be entitled
2 An act relating to property insurance affiliates;
3 creating s. 624.44101, F.S.; providing applicability;
4 defining the term "affiliate"; requiring certain
5 property insurers to provide to the Office of
6 Insurance Regulation documentation demonstrating that
7 financial considerations and payments to affiliates
8 are fair and reasonable; requiring the office to
9 consider certain factors to determine whether such
10 considerations and payments are fair and reasonable;
11 requiring property insurers to submit, and the office
12 to review, audited financial statements; requiring
13 contracts between property insurers and affiliates to
14 contain certain provisions; authorizing the office to
15 issue orders restricting fund transfers from property
16 insurers to affiliates under specified circumstances;
17 providing penalties; requiring affiliates to make
18 certain refunds under certain circumstances; requiring
19 the office to adopt forms, processes, and rules;
20 creating s. 624.44102, F.S.; providing applicability;
21 providing a definition; providing authority of the
22 office over affiliate dividends; providing
23 restrictions on and prohibitions against dividends
24 paid by property insurers to affiliates under certain
25 circumstances; requiring property insurers to provide
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26 notice before pledges of capital and assets to
27 affiliates for loans and financial obligations;
28 providing penalties; requiring affiliates to make
29 certain refunds under certain circumstances; requiring
30 the office to adopt forms, processes, and rules;
31 creating s. 624.44103, F.S.; providing applicability;
32 providing a definition; requiring affiliates to
33 register with the office; specifying requirements to
34 obtain registration; requiring annual renewal;
35 providing administrative penalties; providing criminal
36 penalties; requiring the office to adopt forms,
37 processes, and rules; amending s. 627.062, F.S.;
38 revising factors and standards for the office
39 determination whether a property insurance rate filing
40 is excessive; providing effective dates.
41
42 Be It Enacted by the Legislature of the State of Florida:
43
44 Section 1. Section 624.44101, Florida Statutes, is created
45 to read:
46 624.44101 Oversight of affiliate transactions.—
47 (1) This section applies to insurers that issue property
48 insurance policies and their affiliates.
49 (2)(a) As used in this section, the term "affiliate" means
50 an entity that engages in the business of insurance and that
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51 exercises control over or is directly or indirectly controlled
52 by the insurer through:
53 1. Equity ownership of voting securities;
54 2. Common managerial control as defined in s. 624.10; or
55 3. Participation by the management of the insurer and the
56 affiliate in the management of the insurer or the affiliate.
57 (b) The term also includes an attorney in fact as defined
58 in s. 629.011 and a managing general agent as defined in s.
59 626.015.
60 (3)(a) Each property insurer doing business in this state
61 which pays, directly or indirectly, a fee, commission, or other
62 financial consideration or payment to any affiliate must provide
63 to the office documentation demonstrating that such fee,
64 commission, or other financial consideration or payment is fair
65 and reasonable. The office must determine whether the fee,
66 commission, or other financial consideration or payment is fair
67 and reasonable by considering the following factors:
68 1. The actual cost of each service provided by the
69 affiliate.
70 2. The relative financial condition of the property
71 insurer and the affiliate.
72 3. The level of debt and how that debt is serviced.
73 4. The amount of the dividends paid by the property
74 insurer and the affiliates and for what purpose.
75 5. Whether the terms of the written contract benefit the
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76 property insurer and are in the best interest of the
77 policyholders or subscribers.
78 6. Any other information as the office reasonably requires
79 in making the determination.
80 (b) For any contract with an affiliate executed on or
81 after July 1, 2026, the property insurer must annually provide
82 audited financial statements to the office which demonstrate any
83 fee, commission, or other financial consideration or payment
84 from the property insurer to the affiliate is fair and
85 reasonable. The office must review audited financial statements
86 to determine if the fee, commission, or other financial
87 consideration or payment to the affiliate is fair and
88 reasonable.
89 (c) Any contract between a property insurer and an
90 affiliate executed on or after July 1, 2026, must include a
91 termination clause that automatically terminates the contract
92 after 3 years. An agreement between a property insurer and an
93 affiliate may include provisions for extension, but such
94 extension must be approved by the office before becoming
95 effective. Any extension may not remain in effect for longer
96 than 3 years without a review pursuant to paragraph (a) and
97 approval by the office. If the agreement provides for extension,
98 the agreement must clearly state that the extension is subject
99 to approval by the office at least every 3 years.
100 (4)(a) During a state of emergency declared by the
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101 Governor pursuant to chapter 252, the office may issue orders
102 restricting fund transfers from a property insurer to an
103 affiliate.
104 (b) Orders under paragraph (a) may apply to all or
105 specified property insurers and may not exceed 60 days unless
106 extended by the office.
107 (5) The office may impose penalties on a property insurer
108 for violations of this section, including administrative fines
109 of up to $10,000 for each violation, as well as suspension or
110 revocation of the property insurer's license or authority to do
111 business in this state.
112 (6) In addition to any penalties imposed by the office
113 under subsection (5), the affiliate must refund the property
114 insurer any fee, commission, or other financial consideration or
115 payment that is determined by the office not to be fair and
116 reasonable.
117 (7) The office shall adopt forms, processes, and rules
118 necessary to implement this section.
119 Section 2. Section 624.44102, Florida Statutes, is created
120 to read:
121 624.44102 Authority over affiliate dividends and loans.—
122 (1) This section applies to insurers that issue property
123 insurance policies and their affiliates.
124 (2) As used in this section, the term "affiliate" has the
125 same meaning as in s. 624.44101(2).
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126 (3) The office has oversight and regulatory authority over
127 the issuance of dividends paid to an affiliate.
128 (4) There may be no declaration or distribution of
129 dividends paid to an affiliate without prior approval of the
130 office. The office shall make a determination within 7 days
131 after a property insurer submits all documents required by the
132 office.
133 (5) Dividends may not be made for the purpose of
134 manipulating the property insurer's financial position, and they
135 may be made only if the property insurer is solvent.
136 (6) Dividends must be fair and reasonable as determined by
137 the office in accordance with s. 624.44101(3)(a).
138 (7) A property insurer must provide notice to the office
139 at least 30 days before a pledge of capital or assets to any
140 affiliate for a loan or financial obligation. Such notice must
141 include a description of the collateral, the nature of the
142 obligation, and the parties involved. The office may reject and
143 prohibit the pledge if the office determines that such financial
144 arrangement is not in the best interest of the financial
145 condition of the property insurer.
146 (8) The office may impose penalties on a property insurer
147 for any unauthorized dividend, distribution, or pledge of
148 capital or assets, including administrative fines of up to
149 $10,000 for each violation, as well as suspension or revocation
150 of the property insurer's license or authority to do business in
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151 this state.
152 (9) In addition to any penalties imposed by the office
153 under subsection (8), the affiliate must refund the property
154 insurer any payment that is determined by the office to violate
155 this section.
156 (10) The office shall adopt forms, processes, and rules
157 necessary to approve dividends and pledges of capital or assets
158 from property insurers to affiliates.
159 Section 3. Effective January 1, 2027, section 624.44103,
160 Florida Statutes, is created to read:
161 624.44103 Affiliate registration.—
162 (1) This section applies to insurers that issue property
163 insurance policies and their affiliates.
164 (2) As used in this section, the term "affiliate" has the
165 same meaning as in s. 624.44101(2).
166 (3) Before doing business in this state, an affiliate must
167 obtain registration from the office.
168 (4) To obtain registration, the affiliate must file with
169 the office an application for registration upon a form to be
170 adopted by the commission and furnished by the office. The
171 office may not require an applicant to pay a fee for the
172 registration or for filing an application for such registration.
173 The application must include the following information and
174 documents:
175 (a) A statement of duties the applicant is expected to
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176 perform on behalf of the property insurer, and the lines of
177 insurance for which the applicant is to be authorized to act.
178 (b) All basic organizational documents of the affiliate,
179 such as the articles of incorporation, articles of association,
180 partnership agreement, trade name certificate, trust agreement,
181 shareholder agreement, or other applicable documents, and all
182 amendments to those documents.
183 (c) The names, addresses, official positions, and
184 professional qualifications of the individuals employed or
185 retained by the affiliate who are responsible for the conduct of
186 the affairs of the affiliate, including all members of the board
187 of directors, board of trustees, executive committee, or other
188 governing board or committee, and the principal officers in the
189 case of a corporation or the partners or members in the case of
190 a partnership or association of the affiliate.
191 (d) An independent background report as prescribed by the
192 office detailing the involvement of the individuals employed or
193 retained by the affiliate who are responsible for the conduct of
194 the affairs of the affiliate, including all members of the board
195 of directors, board of trustees, executive committee, or other
196 governing board or committee, and the principal officers in the
197 case of a corporation or the partners or members in the case of
198 a partnership or association of the affiliate.
199 (e) A self-disclosure of any administrative, civil, or
200 criminal complaints, settlements, or discipline of the affiliate
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201 which relate to a violation of the insurance code or the
202 insurance laws of any other state.
203 (5) Affiliate registrations must be renewed annually. The
204 office may not require an affiliate to pay a fee for the renewal
205 or pay a fee to file an application for such renewal.
206 (6) The office may, in its discretion, deny an application
207 for, suspend, revoke, or refuse to renew an affiliate's
208 registration; impose an administrative fine of up to $10,000
209 against an affiliate; and suspend or revoke the eligibility of
210 an affiliate for registration, if the office finds any of the
211 following applicable grounds:
212 (a) Any cause for which issuance of the registration could
213 have been refused had it then existed and been known to the
214 office.
215 (b) Violation of any provision of the insurance code or
216 any other law applicable to the business of insurance in the
217 course of doing business as an affiliate in this state.
218 (c) The registration is used, or to be used, to circumvent
219 any of the requirements or prohibitions of the insurance code.
220 (d) Any of the individuals employed or retained by the
221 affiliate who are responsible for the conduct of the affairs of
222 the affiliate have been found guilty of, or having pleaded
223 guilty or nolo contendere to, a felony in this state or any
224 other state relating to the business of insurance or an
225 insurance agency, without regard to whether a judgment of
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226 conviction has been entered by the court having jurisdiction of
227 such cases.
228 (e) Knowingly employing any individual in a managerial
229 capacity or in a capacity dealing with the public who is under
230 an order of revocation by the office or the department.
231 (f) In the conduct of business under the registration,
232 engaging in unfair methods of competition or in unfair or
233 deceptive acts or practices, prohibited under part IX of chapter
234 626.
235 (g) Knowingly aiding, assisting, procuring, advising, or
236 abetting any person in the violation of or in the attempt to
237 violate a provision of the insurance code or any other order or
238 rule of the department, commission, or office.
239 (h) Receiving a fee, commission, or other financial
240 consideration or payment that violates the requirements of s.
241 624.44101 or s. 624.44102.
242 (i) Receiving any dividend or pledges of capital assets
243 for a loan or financial obligation in violation of s. 624.44101
244 or s. 624.44102.
245 (j) Failing to annually renew a registration.
246 (k) Failing to refund a fee, commission, or other
247 financial consideration or payment to a property insurer under
248 s. 624.44101(6) or s. 624.44102(9).
249 (7) A person who does business as an affiliate in this
250 state without a current registration from the office commits a
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251 misdemeanor of the first degree, punishable as provided in s.
252 775.082 or s. 775.083, for the first offense, and, for a second
253 or subsequent offense, commits a felony of the third degree,
254 punishable as provided in s. 775.082 or s. 775.083.
255 (8) The office shall adopt forms, processes, and rules
256 necessary for affiliates to obtain and renew their registration
257 and for the regulation, investigation, and discipline of
258 affiliates.
259 Section 4. Paragraphs (b) and (e) of subsection (2) of
260 section 627.062, Florida Statutes, are amended to read:
261 627.062 Rate standards.—
262 (2) As to all such classes of insurance:
263 (b) Upon receiving a rate filing, the office shall review
264 the filing to determine if a rate is excessive, inadequate, or
265 unfairly discriminatory. In making that determination, the
266 office shall, in accordance with generally accepted and
267 reasonable actuarial techniques, consider the following factors:
268 1. Past and prospective loss experience within and without
269 this state.
270 2. Past and prospective expenses.
271 3. The degree of competition among insurers for the risk
272 insured.
273 4. Investment income reasonably expected by the insurer,
274 consistent with the insurer's investment practices, from
275 investable premiums anticipated in the filing, plus any other
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276 expected income from currently invested assets representing the
277 amount expected on unearned premium reserves and loss reserves.
278 The commission may adopt rules using reasonable techniques of
279 actuarial science and economics to specify the manner in which
280 insurers calculate investment income attributable to classes of
281 insurance written in this state and the manner in which
282 investment income is used to calculate insurance rates. Such
283 manner must contemplate allowances for an underwriting profit
284 factor and full consideration of investment income that produces
285 a reasonable rate of return; however, investment income from
286 invested surplus may not be considered.
287 5. The reasonableness of the judgment reflected in the
288 filing.
289 6. Dividends, savings, or unabsorbed premium deposits
290 allowed or returned to policyholders, members, or subscribers in
291 this state.
292 7. The adequacy of loss reserves.
293 8. The cost of reinsurance. The office may not disapprove
294 a rate as excessive solely due to the insurer having obtained
295 catastrophic reinsurance to cover the insurer's estimated 250-
296 year probable maximum loss or any lower level of loss.
297 9. Trend factors, including trends in actual losses per
298 insured unit for the insurer making the filing.
299 10. Conflagration and catastrophe hazards, if applicable.
300 11. Projected hurricane losses, if applicable, which must
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301 be estimated using a model or method found to be acceptable or
302 reliable by the Florida Commission on Hurricane Loss Projection
303 Methodology, and as further provided in s. 627.0628.
304 12. Projected flood losses for personal residential
305 property insurance, if applicable, which may be estimated using
306 a model or method, or a straight average of model results or
307 output ranges, independently found to be acceptable or reliable
308 by the Florida Commission on Hurricane Loss Projection
309 Methodology and as further provided in s. 627.0628.
310 13. A reasonable margin for underwriting profit and
311 contingencies.
312 14. The cost of medical services, if applicable.
313 15. For property insurance filings, the profits, revenues,
314 and investment income of any affiliate, as defined in s.
315 624.44101(2), which are attributable or materially related to
316 the insurer's business in this state.
317 16.15. Other relevant factors that affect the frequency or
318 severity of claims or expenses.
319 (e) After consideration of the rate factors provided in
320 paragraphs (b), (c), and (d), the office may find a rate to be
321 excessive, inadequate, or unfairly discriminatory based upon the
322 following standards:
323 1. Rates shall be deemed excessive if they are likely to
324 produce a profit from Florida business which is unreasonably
325 high in relation to the risk involved in the class of business
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326 or if expenses are unreasonably high in relation to services
327 rendered.
328 2. Rates shall be deemed excessive if, among other things,
329 the rate structure established by a stock insurance company
330 provides for replenishment of surpluses from premiums, if the
331 replenishment is attributable to investment losses.
332 3. For property insurance filings, rates may be deemed
333 excessive if they do not reflect the profits, revenues, and
334 investment income of any affiliate, as defined in s.
335 624.44101(2), which are attributable or materially related to
336 the insurer's business in this state.
337 4.3. Rates shall be deemed inadequate if they are clearly
338 insufficient, together with the investment income attributable
339 to them, to sustain projected losses and expenses in the class
340 of business to which they apply.
341 5.4. A rating plan, including discounts, credits, or
342 surcharges, shall be deemed unfairly discriminatory if it fails
343 to clearly and equitably reflect consideration of the
344 policyholder's participation in a risk management program
345 adopted pursuant to s. 627.0625.
346 6.5. A rate shall be deemed inadequate as to the premium
347 charged to a risk or group of risks if discounts or credits are
348 allowed which exceed a reasonable reflection of expense savings
349 and reasonably expected loss experience from the risk or group
350 of risks.
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351 7.6. A rate shall be deemed unfairly discriminatory as to
352 a risk or group of risks if the application of premium
353 discounts, credits, or surcharges among such risks does not bear
354 a reasonable relationship to the expected loss and expense
355 experience among the various risks.
356
357 The provisions of this subsection do not apply to workers'
358 compensation, employer's liability insurance, and motor vehicle
359 insurance.
360 Section 5. Except as otherwise expressly provided in this
361 act, this act shall take effect July 1, 2026.
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